8-27-10 NEPPA e-Report
Congress adjourned earlier this month, with the Senate scheduled to return to session on September 13 and the House on September 14.
September will be an active month, as Members scramble to complete business in three to four weeks before adjourning again for the mid-term elections in November. Democratic leadership has indicated they will call back Members for a “lame-duck” session after the elections, to complete any unfinished business. What that session looks like, however, will remain to be seen, pending the outcome of the elections.
On August 3, Senate Majority Leader Harry Reid (D-NV) announced his decision to pull S. 3663, his scaled back energy effort, tagged as the “oil spill-plus” bill from the Senate floor, and revisit it in September. Earlier, Reid had announced he was going to allow a vote on his bill S. 3663 and S. 3643, the Republican alternative, before adjourning for the August recess, neither of which was expected to receive 60 votes needed. Neither bill, S. 3663 nor S. 3643, contains provisions to address climate change or a renewable electricity standard (RES).
One reason Reid pulled the bills from consideration was because he did not have the support for his bill from several moderate, Democratic Senators, including Mary Landrieu (LA) and Mark Begich (AK). Over the recess, they have continued to work on a compromise oil spill bill, which they hope may be considered in September in lieu of S. 3663.
Reid also gave Sen. Jay Rockefeller (D-WV) the go-ahead to try to add his bill, S. 3072, to the oil spill legislation in September. Rockefeller’s bill would delay for two years the Environmental Protection Agency’s (EPA) ability to regulate stationary sources of greenhouse gases. At this time, it is unclear whether Rockefeller has the votes. If he does, the President has vowed to veto the Rockefeller delay (if it survives House/Senate conference, which is unlikely). Moreover, passage of any oil-spill bill in September, unless it can garner bipartisan support, will be difficult at best given the upcoming mid-term election.
To further complicate, Democratic Sens. Tom Carper (DE) and Bob Casey (PA) recently said that if Rockefeller moves forward with his effort, they would consider offering a “counter” amendment, very similar to EPA’s “tailoring” rule, which would exempt “small sources” from EPA climate rules while allowing the agency to regulate the largest polluters. Specifics have not been released.
While September’s legislative calendar will be very busy, given the partisanship and short time frame, it is unclear if any significant legislation will pass.
On August 10, in a third attempt to advance climate-related energy legislation in the Senate, Sen. John Kerry (D-MA), a senior member of the Senate Finance Committee, unveiled an “energy jobs” tax incentives bill, titled the “Clean Energy Technology Leadership Act of 2010. As a reminder, Sen. Kerry first cosponsored a climate change bill with Sen. Barbara Boxer (D-CA), then later advanced one with Sen. Joe Lieberman (I-CT), and has continued to push for enough support to advance in the Senate this year.
Kerry’s newest energy-related bill does not mention climate or include a price on carbon but, instead, deals directly with incentivizing green energy investment and creating related manufacturing jobs. The bill provides tax incentives and credits for energy manufacturing, renewable energy development, biofuels, energy efficiency programs, and transportation.
Of interest to NEPPA, on renewables, the bill includes an additional $3.5 billion in Clean Renewable Energy Bonds (CREBs) and modifies the program to apply only to public power and rural electric cooperatives, with funding split 60/40 between the two sectors.
In addition, the bill “codifies” the 1603 Treasury Grant Program (TGP) for two years and expands it to public power and electric coops. It is not a straight extension of the TGP, but instead, for private developers, is described as an “elective payment option,” which is, essentially, a refundable tax credit.
The bill also extends the energy efficiency home credit and commercial building deduction, and provides credits to promote natural gas vehicle transportation. Finally, the bill uncaps (though the end of 2014) the Section 48C investment tax credit for domestic manufacturing of solar energy property, fuel cell power plants, and advanced energy storage systems, including batteries for advanced vehicles.
In his introductory statement, Kerry indicated that bill was a placeholder for “something bigger down the road.” It is unclear if there will be enough time or political will to advance an energy incentives measure through both chambers of Congress in September.
On August 4, 32 Democratic and Independent Senators sent a letter to Majority Leader Reid (D-NV) calling for inclusion of the “strongest possible” renewable energy standard (RES) provision in an energy bill, mentioning target levels of 20% by 2020 and 25% by 2025. The letter urges Reid not to “weaken the RES by including non-renewable energy sources.” Some Republican Senators, such as Sen. Richard Lugar (R-ID), are advocating for allowing non- or low-emitting resources such as nuclear and clean-coal with carbon sequestration technology to be eligible for an energy standard.
“Without a national commitment to renewable energy, we miss an important opportunity to grow our manufacturing sector and create jobs while moving toward a cleaner energy future,” the letter says.
As mentioned above, on August 3, Reid announced his decision to pull S. 3663, the “oil spill-plus” energy bill from the Senate floor and revisit it in September. Prior to adjourning, Reid appeared to be leaving the door open to possibly expanding the scope of his energy bill to include an RES provision.
From the Northeast, Sens. Jeanne Shaheen (D-NH), Bernie Sanders (I-VT), John Kerry (D-MA), Chris Dodd (D-CT), and Patrick Leahy (D-VT) signed the letter.
