Energy Tax Credit Bill Stalled in Senate

U.S. Senate Committee on Finance Chairman Max Baucus (D-Mont.) vowed on Tuesday that Senate legislation to extend renewable energy tax credits will reappear soon despite a failed procedural vote earlier in the day.

Chairman Baucus did not say how lawmakers will settle ongoing disputes over paying for the costs of the measure. House Democratic leaders warned the Senate on Thursday they will not approve any tax extension bills this year if those measures are not fully paid for.

The bill includes incentives for energy-efficient buildings; plug-in hybrids; coal projects that control carbon dioxide emissions; and other technologies. The energy provisions are part of a broader tax measure that also extends other incentives, such as the research and development tax credit.

The measure failed to reach the 60 votes needed to end a filibuster on proceeding to formal debate. The 50-44 vote was the latest setback for renewable energy advocates who say investment in wind, solar, and other power sources will falter if Congress does not act fast to extend incentives that expire at year's end.

The renewable energy incentives themselves have broad support, but their extension has been bogged down over disputes about how—-and whether—-to offset the costs of tax break extensions.

Contact Deidra Ciriello or Robert Sullivan.

Energy Ministers: Efficiency, Technology Keys to Combating Climate Change

Emphasizing their resolve to mid- to long-term solutions, the world's 11 largest energy-consuming nations on Sunday announced a new effort to tame rising oil prices and mitigate the effects of climate change.

Japanese Minister of Economy, Trade and Industry Akira Amari, chairing a meeting of energy ministers from the Group of Eight* countries, said the countries agreed to establish the International Partnership for Energy Efficiency Cooperation (IPEEC) to enhance efficiency through international cooperation and sharing of best practices. 

Minister Amari also said that representatives of the attending countries, which account for 65 percent of global energy consumption and carbon dioxide emissions, expressed confidence that high oil prices, energy security, and climate change can all be managed with energy conservation, the use of alternative and renewable energies, and new technologies.

Energy ministers also affirmed the importance of renewable energy sources and the promotion of nuclear power, carbon capture and storage, and other new and existing technologies.

Contact Andy O'Hare.

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*  The Group of Eight is comprised formally of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States, but also includes China, India, Korea, and the European Community.

Debate Continues on Federal Regulations for Coal Combustion Waste  

During a House Energy and Mineral Resources Subcommittee hearing on Tuesday, scientists, government officials, and industry stakeholders debated whether the federal government should be involved in regulating coal combustion waste from power plants.

Growing concerns about the health and environmental effects of byproducts such as bottom ash, boiler slag, and fly ash could lead to increased government regulation.  Power companies produce more than 125 million tons of coal combustion products each year, of which some 43 percent of the waste is recycled.

The regulation debate has ignited because of a 2006 report by the National Research Council that found gaps and inadequacies in state regulatory programs and recommended the creation of enforceable federal standards.

A draft risk assessment by the U.S. Environmental Protection Agency published in 2007 drew more attention to the issue when it revealed the presence of toxins such as arsenic, boron, cadmium, chromium, lead, mercury, selenium, and thallium in coal combustion waste, which could increase communities' risk of cancer if they leach into groundwater.

The agency has been working on regulations that would levy additional controls on coal combustion waste since 2000 but has not finalized a proposal.

Contact Deidra Ciriello.

House Approves Amtrak Reauthorization Bill

The U.S. House of Representatives on Wednesday approved a $14.9 billion Amtrak reauthorization bill (H.R. 6003) by a vote of 311 to 104, enough votes to override a veto threat by President Bush.

The legislation had the support of House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.) and Ranking Member John Mica (R-Fla.).  Though a harsh critic of Amtrak, Ranking Member Mica said the bill is a “historic step toward the realization of high-speed passenger rail in this country”.

The legislation authorizes $1.75 billion ($350 million per year) for grants to states and/or Amtrak to finance the construction and equipment for 11 authorized high-speed rail corridors. The federal share of the grants is up to 80 percent. As proposed, the Secretary of Transportation would award these grants on a competitive basis for projects based on economic performance, expected ridership, and other factors.

The Senate passed its Amtrak reauthorization bill (S. 294) on October 30, 2007.  House and Senate conferees now will have to resolve differences between the two bills.  The Senate bill does not authorize high-speed rail corridors.

Contact David Hubbard.

Legislation Aims at Funding Carbon Sequestration Projects

U.S. House Energy & Commerce Subcommittee on Energy and Air Quality Chairman Rick Boucher
(D-Va.) yesterday introduced legislation that would establish a $1 billion per year fund to finance carbon sequestration and storage (CCS) projects at coal-fired power plants. 

The bill would create a Carbon Storage Research Corporation that would collect fees from fossil-fuel generated utility consumers averaging about $10-$12 per household total on an annual basis. 

The goals of the legislation are to spur the availability of CCS technology to utilities so they can continue to use coal after a mandatory cap-an- trade program is enacted and also prevent fuel switching. 

The bill has 14 co-sponsors, including Energy and Commerce Committee Ranking Member Joe Barton (R-Texas).  

The legislation will be referred to both the Energy and Commerce and Science and Technology Committees to expedite its progress to the House floor.

Contact Jessica Hogle.

Banking Committee Chair Revamps
National Infrastructure Bank Initiative

U.S. Senate Banking Committee Chairman Chris Dodd (D-Ct.) held a hearing yesterday on legislation to create an independent national bank to identify and fund significant national and regional infrastructure projects.  The bill is known as the National Infrastructure Bank Act, S. 1926

The bank would finance these projects on a sliding scale by issuing loan subsidies and bonds, the latter of which would be capped initially at $60 billion. 

New York City Mayor Michael Bloomberg (R) and Atlanta Mayor Shirley Franklin (D) both testified about the staggering costs associated with addressing infrastructure needs, as well as the limited role the federal government plays in assisting cities in addressing those needs.  Also testifying were Mayor John Peyton (R), of Jacksonville, Fla., and Mayor Mark Funkhouser, Ph.D. (D), of Kansas City, Mo.

The bill should be marked up in early July. Even if the bill does not advance in the 110th Congress, Presidential Candidate and Senator Barack Obama (D-Ill.) has endorsed a similar concept that he would push if he were elected. 

Contact Jessica Hogle or Robert Sullivan.

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