Ways and Means Schedules Climate Hearing

Ways and Means Committee Chair Charles Rangel (D-N.Y.) said on Wednesday that he plans to help write global warming legislation that can be signed by President Obama, underscoring the broad interest on the climate issue among powerful Democratic committee leaders on Capitol Hill. Rangel also announced plans for a hearing next Wednesday on the scientific objectives of a climate bill.

Rangel's interest in the climate bill raises questions about how he will work with House Energy and Commerce Chair Henry Waxman (D-Calif.), who has outlined his own plans for a mark-up on comprehensive climate and energy legislation before the Memorial Day recess. Waxman prefers addressing climate change through a cap-and-trade policy, though he has said he is open to other suggestions, including a carbon tax.

Rangel said he had not taken a position on whether he would prefer a carbon tax or cap-and-trade legislation. The Ways and Means Committee has been given primary jurisdiction on carbon tax proposals, as well as some cap-and-trade bills.

Contact Deidra Ciriello.

EPA to Reconsider Carbon Dioxide Memo, Saying Gas Is Not a Regulated Pollutant

U.S. Environmental Protection Agency (EPA) Administrator Lisa Jackson said the agency will reconsider a memorandum issued by her predecessor, Stephen Johnson, saying that power plants and other industrial sources are not required under the Clean Air Act to control carbon dioxide emissions.

Johnson issued a memorandum on December 18, 2008, stating that carbon dioxide is not a regulated pollutant under the Clean Air Act, and therefore, EPA, states, and other permitting authorities are not required to consider carbon dioxide emissions in permits issued under the PSD program.

According to a February 17 statement, the EPA “will vigorously review the Johnson memo to ensure that it is consistent with the Obama Administration's climate change strategy and interpretation of the Clean Air Act.” The agency said it will seek public comment on the memo and on its potential impact on communities.

Contact Deidra Ciriello.

Western Trading Plan Would Harm Regional Economy

A study released on February 18 said a regional carbon cap-and-trade program would wreak economic havoc in the Western states, weaken the region's power grid, and do little to reduce higher temperatures linked to global warming. Commissioned by the Western Business Roundtable, the report paints a bleak picture for consumers and businesses should the seven states and four Canadian provinces that make up the Western Climate Initiative (WCI) adopt a multi-sector trading program.

As currently proposed, according to the report, the program would increase energy costs, retard job creation during the next 10 years, “chase away tens of billions of dollars in high technology investment, and prolong the current recession in the region.” WCI is scheduled to release a final work plan for the program this month.

The WCI plan assumes no new natural gas, coal, or nuclear energy plants through 2020, the report says. All new growth in demand would have to be met through wind farms and solar facilities, which would provide only intermittent power generation and require through energy efficiency efforts to reduce demand, the study said.

Contact Andy O'Hare.

Reid Says Energy Bill Headed to the Floor Before Spring Recess

Senate Majority Leader Harry Reid (D-Nev.) said this week that the Senate would turn to energy legislation when lawmakers return from the Presidents Day recess next week, while climate legislation is on a slower track. Reid said the Senate would act on a bill that includes a national renewable electricity standard during the six-week work period that starts Monday. The measure will not be packaged with legislation to create curbs on nationwide greenhouse gas emissions.

The Senate appears to be taking a different path from the House, where Energy and Commerce Chair Henry Waxman (D-Calif.) recently said he is leaning toward packaging a national renewables standard with a cap-and-trade program for greenhouse gases, as part of a comprehensive energy and climate measure.

Contact Deidra Ciriello.

Omnibus Next Week

The House plans to take up the omnibus legislation next week that combines combine nine appropriation bills that were not passed in the 110th Congress into one bill.  The Senate plans to bring up the omnibus bill the following week. 

Failure to pass the legislation by March 6, the day the Continuing Resolution expires, with no other stop-gap provisions, could mean shutting the federal government, with the exception of the Departments of Homeland Security, Defense and Veterans Affairs.

Contact John Sullivan.

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