Hearing Addresses International Aspects of Climate Change Bill

The U.S. Senate Committee on Finance held a hearing yesterday to discuss the international trade provisions of America’s Climate Security Act (S.2191), sponsored by Senators Joe Lieberman (I/D-Conn.) and John Warner (R-Va.).  This is the first of several Finance Committee hearings on the bill.  The next hearing will address cost containment measures. 

Committee Chairman Max Baucus (D-Mont.), Ranking Member Chuck Grassley (R-Iowa), Energy & Natural Resources Committee Chairman Jeff Bingaman (D-N.M.), and Senator Ken Salazar (D-Colo.) were present at the hearing.

Senator Arlen Specter (R-Pa.) was the first witness.  He argued the international provisions in both S.2191 and the Bingaman Specter Low Carbon Economy Act (S.1766) provide a good framework to address the competitiveness or “leakage” issue.  Even so, more work needs to be done to ensure that domestic manufacturing is not at a competitive disadvantage to imported goods, he said, adding this   would harm the economy and actually increase global emissions. 

Subsequent witnesses included Abe Breehey, Assistant Director of Government Affairs for the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers; Ruksana Mirza, General Counsel of Holcim (US); Jennifer Haverkamp, Senior Counsel of Environmental Defense; and Kjell Olav Kristiansen, Director of Point Carbon North America.  They all addressed more specific concerns and solutions to enhance these proposed frameworks. 

Ideas included linking the U.S. market to international trading schemes; allowing the use of international offsets; narrowing the time span between domestic and international compliance upon enactment; and increasing the scope of the current cap-and-trade proposal to include both instillations for the production and importation of energy intensive products.
  
Contact Jessica Hogle, David Hubbard, or Andy O'Hare.

House Clears Bill to Extend Aviation Taxes

The U.S. House of Representatives this week approved legislation (H.R. 5270) to extend the taxes that fund the Airport and Airways Trust Fund. 

The bill, approved by voice vote, extends taxes through June 30, providing more time for lawmakers to reach agreement on a long-term reauthorization of aviation programs.  The current short-term extension approved late last year extends programs through February 29.

While the House passed a four-year aviation reauthorization bill (H.R. 2881) last September, the Senate Commerce, Science and Transportation and Finance Committee continue to reconcile differences over funding aviation programs.  The timetable remains unclear for Senate floor consideration of the Commerce Committee-approved reauthorization bill (S. 1300).  

Contact David Hubbard or Gary Mitchell.

Proposed Legislation Targets Mercury

Legislation introduced yesterday would require 90 percent mercury reduction emissions from coal-fired power plants.

The bill, introduced by Senator Tom Carper (D-Del.) would require the Environmental Protection Agency (EPA) to implement these emission reductions by October 1.  The bill has eight co-sponsors, including two Republicans.

The bill follows a February decision by the Eighth Circuit Court of Appeals that vacated EPA’s Clean Air Mercury Rule, issued in 2005.   The rule established an emissions trading system to reduce mercury emissions from power plants by 70 percent over 20 years.

Carper is also sponsor of the Clean Air Planning Act (S. 1177), which calls for 68 percent reduction of nitrogen oxides, 82 percent of sulfur dioxide, and 90 percent of mercury by 2015.

Contact Tyrone Wilson.

The President on Wednesday signed the Economic Stimulus Act of 2008 (H.R. 5140).

The $168 billion bill issues rebate checks to 250,000 disabled veterans and their widows; 20 million seniors receiving social security; and taxpaying, middle-class Americans.

The rebate checks range from $300-$600 for an individual,  up to $1,200 for a married couple; and $300 per child, with no limit on the number of children.

The rebates start at the $3,000 income level and are phased-out for those with incomes above $75,000 for a single taxpayer and $150,000 for joint-filing married couples.

The bill also allows for a 50 percent bonus depreciation for businesses that buy major equipment. As well, it would increase the amount of equipment costs a small business could deduct, up to $250,000. However, this write-off phases out, dollar-for-dollar, when a company’s total capital spending exceeds $800,000.  

The Fannie Mae and Freddie Mac conforming loan limits would also be increased to as much as $729,750.

Senate Majority Leader Harry Reid (D-Nev.) this week drafted a second stimulus package, exclusively targeting the housing market.  Reid’s bill would provide $200 million in funding for housing counselors to reach out to families at risk of losing their homes and $4 billion in Community Development Block Grants for cities to fund the recovery of forecloses.

The bill would allow the cap on mortgage revenue bonds to increase by $10 billion for housing finance agencies to refinance troubled home loans and to allow companies to write-off recently incurred losses over a longer time frame.

The housing stimulus package could be brought to the floor for consideration as early as February 25.

Contact Robert Sullivan.

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