Ecominds-a Mailing List: 1 Sky conference call with Waxman and Markey, Climate bill authors

[Ralph Wyman (rwmuusja]

EcoMinds friends,

 

I was able to learn of this call at the EcoMinds meeting last night and
dialed in. (Notes from last night's meeting coming soon).  This is a fairly
detailed set of information.  1 Sky and the principle authors really
emphasized that this bill needs to pass this year.  They do not believe that
a better bill can be crafted next year - they talked about this being a
singular confluence of moments that (if one recalls back to Carter or
Clinton) we see about once each 15 years to get major legislation passed.
They urged immediate and strong support from grassroots forces.

 

I am inclined to agree.  I know this bill is not without controversy, and
not without shortcomings.  They made a pretty persuasive case that
withholding support in hopes of a better bill will not yield positive
results, and could seriously undermine the international climate
negotiations in Copenhagen this fall.

 

For 1 sky info on the call, check here:
http://www.1sky.org/blog/2009/06/join-reps-waxman-and-markey-for-a-nationwid
e-call-on-wednesday

I'm not sure when/where the audio will go up.  But if you can't spend an
hour listening to the podcast, please take a look at my dashed together
notes! 

 

- Ralph

 

 

June 10, 2009 

1 Sky conference call with Reps Waxman and Markey, on their American Clean
Energy and Security Act

(600 phone lines, full call. More than 225 Qs submitted by e-mail.  Call has
been recorded and will be posted online).

 

Waxman - Markey call. (notes by Ralph Wyman - tried to get essence of
issues, not direct quotes).

 

Waxman: ACES sets strong goals and gets support from environmentalist and
industry.

20% renewable electricity by 2020.  National standard provides certainty for
investment.

Invests in electric vehicles, mandates energy savings standards (30% more
eff. for buildings, for example).

Key driver is cap on GHG - covers 85% of emissions, cap mandates lower 17 %
by 2020.  Should produce 28-35% below 2005 by 2020 when cap is combined with
RES, deforestation protection, int'l mitigation.

Protect consumers from energy price increases.  Less than 43 cents per day
is expected utility impact.

Limits are achievable, based on C.A.P. - roundtable w/ business and
industry.

Protects energy intensive industries (not sure what this means).

Pay-Go requirements met in Fed budget impact.

 

Markey: those who seek to defeat ACES start with attack on whether GW is
real.  One Republican called green jobs "sub prime" jobs.  Another called
them papier mache jobs.  Need voices to counter.  Another Repub made claim
TODAY that if you don't have enough CO2 in your body you'll pass out.

Republicans calling for coal to liquids and oil shale.  Markey - that's like
going from 1 pack of Camels to two per day!  

Once in a generation opportunity, HAS TO PASS THIS YEAR.

 

Q&A:

Q: RES (renewable energy standard)  - promote renewable.  Why fund carbon
capture?  A: not included as renewable generating technologies.  What we do
is remove new coal or nuclear generation.  Cap/carbon price helps solar.
RES helps solar and wind. Upwards of 20 states don't have RES at all.

Renewable does not include nuclear.  Baseline for calc 20% renew plus
efficiency does not factor nuclear.  Under total cap, reductions have to be
made.  If a utility burns coal, they are not told to stop coal, but they
have to keep reducing carbon emissions.  Offsets may help them do it.
Nuclear counts for staying under cap, but not for 20% RES.  Goal is to keep
pressing down on carbon emissions.

Hope to be in leadership in technology.  Goal - engage in Copenhagen, get
other countries to join us.  Potential for export of technologies.

 

Large cluster of Qs about coal: doesn't allowing carbon sequestration
support coal mining, esp. mountaintop removal?  A: tough on coal.  Requires
producers to stay under cap.  Do want to develop carbon seq. because coal is
plentiful.  Want some utilities to move away from coal.  Once renewable
market is in place, scale will lower costs.  Efficiency measures will also
cut into coal power.

Likely that 20,000 new megawatts of new wind, plus solar, installed per year
by 2020.  Does acknowledge that coal is part of our energy future. Coal is
domestic.  One goal of W-M is reducing imports of energy.

Even if we stop burning coal, China, India, Russia will not stop burning
coal, so we need to solve carbon sequestration we have to assume resp to
research and devel the tech and then export to China, india Russia and
others.

 

Q: recent wind energy poll, 75% of Americans favored 25% by 2025.  71% in
south.  63% of republicans.

A: 20% by 2020 will put in place movement that will make 25 by 25 possible.
This is min. national standard, no restriction on states that are higher.
Floor not ceiling.

 

Q: Pre-emption.  When fed. Law sets new ceiling.  Anything that prevents
more stringent standards State/local.  A: No, but there is an exception.
For a limited time, one exception: 6 years 2012-2017, states should not be
running cap and trade systems on chemicals in the national program.

Everywhere else, strong language protecting states to enact tougher
individual sources laws.  States get $90 Bn for efficiency and renewable.

 

Q: Targets.  None of the 2020 targets from industrial nations doesn't meet
450 ppm, much less 350 ppm.  If this is much as we can get from congress in
2009, will you offer a new bill strengthening the targets.

A: will revise if science indicates.  We want to follow the science.  People
think that 2020 is it, but not.  28-33% below 2005 levels is broader goal of
W-M.

Prior to Obama, admin had only aspirational goals, nothing firm.  Even after
EPA & Supreme Ct rules, nothing happened.  We are far behind.  We have to
start where we are.  Bill we are passing is going to be a strong bill given
the late historical start.  Will follow IPCC and UN, will not let issue go
unattended in Energy & Commerce committee.

Comment from Waxman: going to floor in two weeks.  We've got to pass the
bill.  Senate has been doing nothing since their unhappy experience last
year.  For those listening - get active now, don't just look for problems.
Start working membs on both sides of aisle.  Joe Barton didn't see science.
Republicans on floor need pressure.  Obama setting as one of his top 3
issues has moved this to possible.

 

Q: how can individual citizens to prevent further weakening?  A: (W)Have to
press Senate for improvements.  Waxman thinks bill is strong, meets goals.
Have to make it through hurdles - hurdles take years, we don't have years.
Tipping point is near, irresponsible to wait.  (M)These opportunities arrive
every 15 years or so.  People agree on magnitude and solutions now.  Look
back to 77 and 94, thought we could re-work, but they died.  Have to org NOW
to move now.  Next year may fall - senate won't act w/o House.  Obama goes
to Copenhagen empty handed w/o House action in next 2 weeks.

 

Waxman, Markey has to depart call - final urge to all on call: take the time
to weigh in!

Staff staying on call:

 

Q: Offsets.  If offsets avail in bill levels, this will undermine tech
changes and green energy transformation.  Will support effort to limit
offsets?  A: Critical is Cap in achieving, quality offsets will not
undermine cap.  50 pages of regs on cap.  After 2017, 5 offsets for each 4
units of emissions, retires offsets over time.  Req that all international
offsets must have intl, mutual agreement of offset quality.  

 

Q: Allocations.  How the money created by cap will be spent. 85% free
permits will not protect against utils raising prices. (garbles)?

A: We do not give 85% of permits to polluting industries.  Matters less if
auctioned or given, matters who gets them.  States get allowances - those
are not going to polluters, but to incent reductions.  Even allowances given
to utils are given to local distribution companies, which are regulated by
utility boards/states.  Should 100% be auctioned to give strong price
signal.  Economists like this, but worry is that if 100% at day one could
see huge price increases, esp in Midwest.  Huge price shock would undermine
the program.  Start with allowances going to local to ease trans.  Auctions
rise in later years as do funds back to consumers.

 

Q: EPA.  Is it better not to have a bill than to strip EPA via this bill?
How does this bill interact with EPA?

A: Solving this has to be global solution.  Can't go to Copenhagen with us
dealing with GA via EPA.  Need to have overall limits, not piecemeal as EPA
would regulate.  EPA's authorities to regulate individual power plants
doesn't establish economy wide cap.  This is a very tough area to achieve
without political compromises.

Q: Green jobs.  Concern that need more opportunity, access to green jobs.
Will W-M support the Green Jobs Act?

A: bill auth $500 mil extension of funding to Green Jobs Act.  Jobs target
outside committee, can be addressed in other committees or floor.

Q: Copenhagen.  Developing nations view funding as inadequate.  Can funding
be increased?  A: Strong advocacy could still help.  Bill has int'l adapt
and tech transfer support, deforestation stoppage.  As bill heads to floor,
some complaints that allowances should be domestic not Int'l.  This is why
public support so important.  Otherwise raid on public purposes of bill at
risk.

 

Q: How market for derivatives (of allowances?) work?  A: Agree that strong
oversight of markets is needed.  Bill includes strong and transparent open
market with regulations.  4 rules in place, including closing "Enron loop" -
all exchange traded.  Default limits in place.  A lot in bill on regulation
of markets.

 

Q: This bill could lock us into high carbon path through 2020 - emissions
must peak within 6 years?

A: Everything in this bill - from RES to housing efficiency, to HCFC to many
others, sends irrefutable message that carbon must come down.  Just the mere
specter of EPA in the past 2 years caused utils to cancel coal plants.  If
this bill passes, we are NOT signaling we want a high carbon future.

 

FAILURE TO PASS WILL SEND SIGNAL OF HIGH CARBON FUTURE!