House Energy Committee Holds Climate Hearing

The U.S. House Energy & Commerce Subcommittee on Energy and Air Quality, chaired by Representative Rick Boucher (D-Va.), held a hearing yesterday on the strengths and weaknesses of regulating greenhouse gas emissions using existing Clean Air Act authorities. The hearing was held following the Supreme Court’s recent decision in Mass. v. EPA, which established that carbon dioxide and greenhouse gases should be regulated under the Clean Air Act.

The U.S. Environmental Protection Agency (EPA) recently announced that it will ask for public comment on how to regulate greenhouse gases in light of this decision, a move that the Select Panel on Global Warming and Energy Independence Rep. Edward Markey (D-Mass.) and other environmental proponents in Congress are calling a delaying tactic. 

At the hearing, U.S. House Energy and Commerce Committee Chair John Dingell (D-Mich.) argued that the Supreme Court made a political decision and a mistake in Mass. v. EPA. Because the decisions involved in developing a cap-and-trade program are inherently political, it is up to Congress, not the EPA, to craft this legislation. 

Chairman Dingell later said he hoped to pass legislation this year that would reduce greenhouse gas emissions 60 percent to 80 percent by 2050. The Committee will not, however, overturn the Supreme Court’s decision, even though Ranking Member Joe Barton (R-Texas) said the committee never intended for the Clean Air Act to regulate greenhouse gases. Congressman Dingell also presented concerns that the regulation of greenhouse gases under the Clean Air Act would also lead to a large increase in sources subject to new source review requirements.

Congressman Henry Waxman (D-Calif.) would like the EPA to begin regulating greenhouse gases now, and to block any construction of new coal-fired power plants, but also indicated that the Clean Air Act would need to be supplemented by further legislation. 

Contact Jessica Hogle or David Hubbard.

Senate Passes Bill with Tax Credit Extensions

The U.S. Senate voted yesterday to include roughly $6 billion worth of renewable energy and efficiency tax credits in a major housing bill the chamber passed shortly thereafter. It remains unclear how or when a deal with the House may emerge, however.

The amendment, sponsored by Senators Maria Cantwell (D-Wash.) and John Ensign (R-Nev.), extends credits for wind, solar, and other renewable energy projects that are set to expire at the end of 2008.
The Cantwell-Ensign plan was included in a bill aimed at addressing the sub-prime mortgage crisis.  (See related story, “Housing Stimulus Measure Passes Senate.”)

The White House yesterday attacked several provisions in the Senate plan, and the House is crafting its own housing bill. The bill includes a one-year extension of the renewable power production tax credit that wind developers call essential to continued growth and an eight-year extension of the solar investment tax credit. It also provides one- or two-year extensions of credits for efficient homes and buildings. The measure does not include revenue-raising provisions to offset the costs, which sets up a potential collision with House Democrats who want to adhere to pay-as-you-go rules.

Senator Cantwell said continued wrangling over offsets would jeopardize renewable energy projects by creating uncertainty about the tax credits. Investment in wind power projects has plunged in the past when lawmakers have allowed the production tax credit to lapse. She argued that passage of the current plan would provide breathing room to work on revenue sources to support longer-term extension of renewable energy and efficiency incentives.

Contact Deidra Ciriello.

Air Pollutant Rule Challenged in Federal Court

An attorney for the Natural Resources Defense Council (NRDC) argued before a federal appeals court (Natural Resources Defense Council v. EPA, D.C. Cir., No. 07-1053, oral arguments 4/10/08) that the U.S. Environmental Protection Agency (EPA) violated the Clean Air Act by failing to adequately protect the public from cancer risk.

At issue was whether Section 112(f)(2)(A) of the Clean Air Act requires that EPA reduce lifetime cancer risk for people living near chemical plants to one in a million—disregarding cost to industry—even if it means making a second regulatory effort aimed at eliminating "residual risk." 

NRDC argued the Hazardous Organic National Emissions Standards for Hazardous Air Pollutants  (HON NESHAP) Rule was too lenient because it failed to follow Congressional instructions that EPA require use of advanced technology to protect more people from cancer risks due to exposure to chemical plants.

EPA argued that the agency acted appropriately by attempting to follow the statute and asserted that the agency had undertaken rulemaking aimed at protecting people who live near chemical plants from cancer, although not to the one-in-a-million level the NRDC said the statute required. The court did not indicate when it would rule in the case.

The Louisiana Environmental Action Network was also a petitioner in the case. The American Chemistry Council was an intervener in the case.

Housing Stimulus Measure Passes Senate

The U.S. Senate yesterday voted 84-12 to pass H.R. 3221, The Foreclosure Prevention Act of 2008.

The measure, totaling close to $11 billion, would permit businesses to write off recent losses incurred in 2008 and 2009 on their tax returns from as far back as 2004 so they could claim greater refunds.

The bill also allows the cap on mortgage revenue bonds to increase by $10 billion for housing finance agencies to refinance mortgages for first-time homebuyers and sub-prime loans.

Property owners who do not itemize on returns would be allowed to claim a deduction for their property taxes of $500 and $1,000.  Purchasers of foreclosed homes would receive a tax credit of $7,000 spread out over two years. Also, the Federal Housing Administration (FHA) loan limit would be permanently increased to $550,000 and the FHA down-payment requirement would be increased to 3.5% 

The bill would provide $4 billion in Community Development Block Grant Funds to purchase and rehabilitate foreclosed homes, as well as $150 million for housing counselors for families at risk of losing their homes and another $30 million for legal assistance provided by the Neighborhood Reinvestment Corp. for at-risk homeowners.

The Senate also adopted an amendment that included renewable energy and efficiency tax credits. See related story, Senate Passes Bill with Tax Credit Extensions. The package is expected to face opposition in U.S. House.

Contact Robert Sullivan.

Highway Bill Corrections Slated for Senate

U.S. Senate Majority Leader Harry Reid (D-Nev.) yesterday moved that the Senate consider a bill to amend the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, or SAFETEA-LU (H.R. 1195). The bill would make technical corrections and other changes to surface transportation law (P.L. 109-59).

The Majority Leader also filed a cloture motion, a procedure which would effectively block debate on the motion to proceed. The Senate is scheduled to begin debating the cloture motion Monday, and then vote on the cloture motion later that day. The Senate is likely to invoke cloture, so it's likely the legislation will be considered by the Senate next week.

If the Senate eventually passes a version the corrections bill that is acceptable to U.S. House Transportation and Infrastructure Committee leaders, the plan is for the House to take up the bill and agree to the Senate version under the expedited "suspension of the rules" procedure. This would avoid a House-Senate conference committee and result in the bill being sent to the President quickly. (Source: Transportation Weekly.)

Contact Leif Wathne.

Subcommittee Hears Testimony on Clean Water Restoration Act

The U.S. Senate Committee on Environment and Public Works on Wednesday held a hearing to discuss S. 1870, The Clean Water Restoration Act of 2007.  The bill, sponsored by Senator Russell Feingold (D-Wisc.), would amend the Clean Water Act to expand the jurisdiction the federal government has over U.S. waters.

Ranking Member James Inhofe (R-Okla.), in his opening statement, said the legislation would “expand federal jurisdiction authority in a way that pushes the outer limits of Congress’ Constitutional role” because of a provision that would replace the term “navigable waters” with “waters of the United States.” Senator Inhofe suggested the provision would preempt the Commerce Clause and make all waters, regardless of size, depth or what occurred in those waters, to be federally regulated.

The committee heard testimony from representatives of the National Association of Counties and the National Cattlemen’s Beef Association who stated their opposition to the bill. Both associations conveyed their disagreement by citing the measure’s potential for “far-reaching and unintended consequences” as well as a lack of a provision to ensure more clean water.

Testimony from the New York State Department of Environmental Conservation, the Arizona Department of Environmental Quality, and former Environmental Protection Agency Administrator, Carol M. Browner of The Albright Group, LLC, hinged on the notion that the original legislative intent of the term “navigable waters” is more broad than currently interpreted and should be clarified to mean all waters of the United States.

The House Transportation and Infrastructure Committee is holding a hearing next week to examine the House version of the Clean Water Restoration Act, H.R. 2421.

Contact Robert Sullivan.

Register Today for Annual Legislative Briefing, Fly-In

This is a reminder that the Transportation Construction Coalition's "Transportation at the Cross Roads" legislative briefing and fly-in is scheduled for May 20-21 at the Hyatt Regency Capitol Hill, Washington, D.C.

The event will begin with a legislative briefing on Tuesday (May 20) from 2:30 to 5:30 p.m., followed by a Capitol Hill reception from 6:00 to 7:00 p.m. The second day will begin with a breakfast program from 7:00 to 8:00 a.m. Immediately afterward, participants are urged to visit with their Representatives and Senators to discuss key issues.

The North American Concrete Alliance partners, including the American Concrete Pavement Association, National Ready Mixed Concrete Association, and Portland Cement Association, are urging members and affiliates to participate in the briefing, as well as to call on elected federal officials to urge both increased funding and durable solutions to some of the greatest challenges to transportation construction.

ACPA, NRMCA, and PCA members are urged to register directly online at http://www.BlueSkyz.com/tcc2008. As the event draws nearer, position papers and other materials will be available to help members and affiliates communicate key issues with elected officials.

Contact Kerri Leininger.

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