Article by Kyle Danish, Shelley Fidler, Kevin Gallagher, Megan Ceronsky and Tomás Carbonell

Commentary

In a letter to Sen. Debbie Stabenow (D-MI), EPA Administrator Lisa Jackson provided assurances that EPA GHG regulations will accommodate biofuels . . . Majority Leader Reid and Sen. Rockefeller (D-WV) have not settled on a date for a vote on Rockefeller's bill to delay EPA regulation of stationary source GHG emissions for two years . . . House Republicans are still working out who will take chairmanship of the Energy and Commerce Committee. A bid by the likely incoming chairman of the Natural Resources Committee, Rep. Doc Hastings (R-WA), to move the "Energy" jurisdiction from Commerce to Natural Resources was not well received . . . Ninety-one nations support working toward controlling HFC's under the Montreal Protocol . . . The Canadian national legislature rejected a national emissions cap, but officials from Ontario, Quebec, and British Columbia claimed that they are on track to have WCI-linkage-ready cap-and-trade programs by 2012 . . . Please note that, due to the Thanksgiving holiday, the Climate Update will not be distributed next week. We will return with a new update on December 6.

Executive Branch

  • Jackson: EPA to Avoid Discouraging Biomass Through CAA Regulations. In a letter to Sen. Debbie Stabenow (D-MI), Environmental Protection Agency (EPA) Administrator Lisa Jackson promised that, where possible, the agency will exercise its legal powers in a manner that ensures that greenhouse gas (GHG) regulations promulgated under the Clean Air Act (CAA) do not discourage the use of biomass fuels. Jackson's letter responds to concerns raised by Sen. Stabenow regarding whether GHG emissions deriving from the use of biomass fuels would be subject to Prevention of Significant Deterioration (PSD) permitting under the CAA. The letter notes that the agency's recently-released guidance on the determination of "best available control technology" (BACT) requirements for GHG PSD permits will allow permitting authorities to take into account the environmental benefits of biomass when evaluating BACT. In addition, the letter states that EPA is considering whether it has legal authority to "discount" biomass-related GHG emissions for purposes of determining whether a facility's emissions are high enough to trigger applicability of PSD requirements in the first instance. Jackson said that if the agency determines it has this authority, it will undertake a notice-and-comment rulemaking to "establish the necessary accounting system."
  • EPA Finds Continued Improvement in Efficiency, GHG Performance of New Vehicles. A new report issued by EPA concludes that the CO2 emissions of new vehicles sold in the U.S. fell—representing a fifth straight year of annual improvement. Model year (MY) 2009 vehicles emitted an average of 397 grams of CO2 per mile driven, down 6.4% from MY2008 and 14% from MY2004. The fuel economy of MY2009 vehicles also increased to 22.4 miles per gallon, an increase of 1.4 miles per gallon relative to MY2008. The report attributes the improvements in vehicle performance to recession-induced changes in buying patterns as well as the government's "Cash for Clunkers" program. Because EPA has only collected preliminary data on vehicle sales for MY2010, the report's findings focus on MY2009 vehicles. The report is available at http://www.epa.gov/otaq/fetrends.htm#summary.
  • GSA Pilot Program Incentivizes Disclosure of GHG Emissions. The General Services Administration (GSA), which procures some 12 million products each year on behalf of the Federal government, announced a program called the GreenGov Supply Chain Partnership to encourage suppliers to voluntarily monitor and disclose their GHG emissions. GSA will work with businesses in the partnership to develop a set of phased-in contracting incentives for companies that report GHG emissions. The initiative also includes a Small Business Pilot to provide technical assistance for small business participants in the program; fifty-eight small businesses have agreed to join the program thus far.
  • Lew Confirmed As OMB Director. Jacob Lew has been confirmed to serve as Director of the White House Office of Management and Budget (OMB). Lew, known as Jack, was a member of Van Ness Feldman from 1988 to 1993.

Congress

  • Former Congressman Calls on Republicans to Address Climate Change. Republican Sherwood Boehlert, who represented New York's 24th District in Congress from 1983 to 2007, wrote an op-ed published in The Washington Post calling on Republicans in Congress to acknowledge the scientific consensus on climate change and engage in the debate on policy responses. Rep. Boehlert noted that Ronald Reagan had "embraced scientific understanding of the environment" and "found ways to address" environmental problems. He also wrote: "We shouldn't stand by while the reputations of scientists are dragged through the mud in order to win a political argument. And no member of any party should look the other way when the basic operating parameters of scientific inquiry—the need to question, express doubt, replicate research and encourage curiosity—are exploited for the sake of political expediency." The op-ed is available at http://www.washingtonpost.com/wp-dyn/content/article/2010/11/18/AR2010111805451.html?referrer=emailarticlepg.
  • House Democrats Hold Climate Science Hearing. The House Science and Technology Committee Democrats held a hearing on the science of climate change. National Academy of Sciences President Ralph Cicerone testified that there are "multiple lines of evidence" that indicate that anthropogenic GHG emissions are warming the planet, creating a substantial potential for "sudden, abrupt changes." Rep. Ralph Hall (R-TX), the current ranking minority member and likely Chair of the Committee in the 112th Congress, said "reasonable people have serious questions about our knowledge of the state of the science, the evidence, and what constitutes a proportional response." Rep. Bob Inglis (R-SC), who was defeated by a more conservative opponent in the Republican primary this year, warned that China "is pressing the fast-forward button" working on climate issues and related technologies, and planned to "sell to us, and the rest of the world, the technology that'll lead the 21st century." Rep. Inglis also criticized his colleagues' willingness to listen to climate skeptics, saying: "There are people who make a lot of money on talk radio and talk TV saying a lot of things. They slept at a Holiday Inn Express last night, and they're experts on climate change. They substitute their judgment for people who have PhD's and work tirelessly" on climate change science. He also encouraged climate scientists to see upcoming Congressional hearings as "fabulous opportunities to teach."
  • Murkowski Declares Victory; Committee Leadership Spot Undecided. Sen. Lisa Murkowski (R-AK) declared victory in her historic write-in candidacy for Senate. Sen. Murkowski leads by approximately 10,400 votes, although Joe Miller, the Republican candidate, has challenged 8,153 of those ballots. Sen. Murkowski said she intends to retain the ranking minority member spot on the Energy and Natural Resources Committee. Sen. Richard Burr (R-NC), however, has not ruled out challenging Sen. Murkowski for the position. The Republican leadership in the Senate could decide to take the spot from Sen. Murkowski because she ran against the candidate selected in the Republican primary.
  • House Selects Leaders. House Republicans elected John Boehner (OH) to be Speaker of the House for the 112th Congress and Minority Whip Eric Cantor (VA) as the new majority leader. Rep. Kevin McCarthy (CA) will serve as majority whip and Rep. Jeb Hensarling (TX) will chair the Republican Conference in the new Congress. House Democrats voted 150-43 to elect Nancy Pelosi (CA) Minority Leader. Rep. John Larson (CT) was re-elected as chair of the Democratic Caucus, and Rep. Xavier Becerra (CA) was elected vice chairman. Current Majority Leader Steny Hoyer (MD) was elected minority whip and Rep. James Clyburn (SC), current majority whip, was elected to the newly-created role of assistant leader. Rep. Pelosi named Rep. Steve Israel (NY) to chair the Democratic Congressional Campaign Committee. Rep. Ed Whitfield (R-KY) told reporters that the House committee chair appointments are likely to be resolved on December 2nd.
  • As in House, Senate Leadership Has Familiar Look. In the Senate, Senators Harry Reid (D-NV) and Mitch McConnell (KY) will retain their positions as majority and minority leader. Majority Whip Dick Durbin (IL) and Conference Secretary Patty Murray (WA) were both re-elected to those positions. Sen. Daniel Inouye (HI) will serve as president pro tempore. Sen. Charles Schumer (NY) was re-elected as vice chairman of the Democratic Conference and will also serve as co-chairman of the Democratic Policy Committee with Sen. Debbie Stabenow (MI). Sen. Mark Begich (AK) will chair the Steering and Outreach Committee. Majority Leader Reid has not yet identified a chairman for the Democratic Senatorial Campaign Committee. Minority Leader McConnell's leadership team is unchanged: Sen. Jon Kyle (AZ) will be minority whip; Sen. Lamar Alexander (TN) will be Republican Conference chairman; Sen. John Thune (SD) will be Republican Policy Committee chairman; Sen. John Barrasso (WY) will be vice chairman of the Republican Conference; and Sen. John Cornyn (TX) will serve as chair of the National Republican Senatorial Committee.
  • Reid Promises No Cap-and-Trade Bill Next Congress; No Promise on Rockefeller Vote. Senator-elect Joe Manchin (D-WV) announced that Sen. Majority Leader Harry Reid (D-NV) had promised him that no cap-and-trade legislation will be considered in the next Congress. Senator-elect Manchin gained notoriety by filming a campaign ad in which he appears to shoot a copy of a "cap-and-trade bill" with a rifle. Maj. Leader Reid also met with Sen. Jay Rockefeller (D-WV) to discuss Sen. Rockefeller's bill to delay EPA regulation of GHGs under the Clean Air Act by two years. Sen. Rockefeller said that Maj. Leader Reid did not promise a vote during the lame duck session. Sen. Rockefeller blamed Republicans, saying that obstructionism on other pieces of legislation would clog the Senate calendar. Sen. Rockefeller suggested that he might not re-introduce the legislation in 2011, as "the House could ruin it. They could completely eliminate the whole agency, and I don't want that." Sen. Joe Lieberman (I-CT) told reporters that Democrats should sit down with Republicans interested in energy independence and try to find common ground.
  • Hastings Wants Energy in Natural Resources Committee; Energy and Commerce Leadership Battle Continues. Rep. Doc Hasting (R-WA), the likely incoming chairman of the House Natural Resources Committee, submitted a formal request to the Republican conference that the "energy" portfolio be moved from the Energy and Commerce Committee to the Natural Resources Committee to "level the power" of committees and create opportunities for more members. Energy and Commerce Committee members opposed the proposal. Rep. Joe Barton (R-TX), currently serving as ranking member of the Energy and Commerce Committee, continued his campaign for a waiver of the Republican term limit rules which limit committee leadership positions to three terms and would preclude him becoming chairman for the 112th Congress. Rep. Fred Upton (R-MI), who is also seeking the chairmanship, said he did not believe that the freshmen Republicans would support the waiver request. Rep. Upton published a "pledge" outlining what he would achieve as chair, which includes a promise to "exert tireless oversight of the EPA and stop implementation of a carbon regulation scheme and other job-killing regulations." The pledge is available at http://dailycaller.com/2010/11/18/my-pledge-for-energy-and-commerce/. Republican Reps. John Shimkus (IL) and Cliff Stearns (FL) are also seeking the chair, but have said that they support Rep. Barton's waiver request.

Judicial

  • D.C. Circuit Consolidates Challenges to Two EPA GHG Rulemakings. The United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) decided to consolidate pending challenges to two of the agency's GHG rulemakings: the June 2010 "Tailoring Rule," which phases in PSD requirements for GHG sources beginning January 2, 2011, and the March 2010 "Timing Rule," which determined the date upon which GHGs will become regulated pollutants under the Clean Air Act. This decision, which is consistent with a proposal filed by the U.S. Government in these proceedings earlier this fall, means that challenges to the two rules will be heard by the same three-judge panel in a single docket. In its order, the court deferred a decision on whether to assign these two cases, as well as pending challenges to EPA's vehicle GHG standards and its December 2009 finding that GHGs endanger the public health and welfare, to a single panel of appellate judges for purposes of oral argument on the merits. Some groups of industry petitioners have sought "coordination" of all of the above GHG-related challenges to EPA rulemakings and decisions, under which all of these challenges would be heard and managed by a single appellate panel. Several motions to stay all or part of the four challenged EPA actions are still pending before the D.C. Circuit.

States and Cities

  • Governors' Summit Produces Two New Agreements for CA Gov. Schwarzenegger. While hosting the Governors' Global Climate Summit in Davis, CA, California Governor Arnold Schwarzenegger (R) signed two new agreements aimed at reducing GHG emissions at the sub-national level. The first agreement is the "R20 Charter", signed by Gov. Schwarzenegger, President Jean Paul Huchon of the French region Île-de-France, Governor Emmanuel Uduaghan of Nigeria's Delta State, and Assembly of European Regions President Michele Sabban. The "R20" will be a group of regions of climate action that will share best practices and technologies, while promoting the formation of public-private partnerships to develop clean energy projects. The second agreement, a memorandum of understanding (MOU) between California and state governments in Brazil and Mexico, establishes a sub-national Reducing Emissions from Deforestation and Forest Degradation (REDD) working group that will develop recommendations for bringing sub-national REDD programs into California's cap-and-trade program. The text of the MOU is available at http://gov.ca.gov/pdf/gov/REDD-MOU-GGCS3.pdf. The summit was more lightly attended than in previous years.

Industry and NGOs

  • Investor Coalitions Call for Aggressive International Action on Climate Change. A group of 259 investors and asset managers holding over $15 trillion in assets issued a joint statement calling for a variety of domestic and international actions to address climate change. The statement argues that climate change presents risks "to regional and global economies and to individual assets," and that the transition to a low-carbon economy could create "large potential economic opportunities." The statement urges the adoption of a global climate change agreement with "ambitious" GHG reduction commitments designed to limit global temperature increases, and "market mechanisms that put a price on carbon." The statement also calls on negotiators at the upcoming climate change summit in Cancún, Mexico, to achieve "forward movement" on a variety of issues, including funding for developing country adaptation and mitigation efforts; implementation of projects to reduce emissions from deforestation and forest degradation; robust GHG measurement, reporting, and verification protocols; and a commitment to achieve a legally-binding treaty at next year's climate change summit in Durban, South Africa. The statement was sponsored by Ceres, the Institutional Investors Group on Climate Change, the Investor Group on Climate Change Australia / New Zealand, the United Nations Environment Programme Finance Initiative, and Principles for Responsible Investment. The statement is available at http://www.ceres.org/Page.aspx?pid=1293.
  • Joint CAP / CGC Report Outlines Clean Energy Agenda. A joint report issued by the Center for American Progress (CAP) and the Coalition for Green Capital (CGC) sets forth a clean energy policy agenda that the organizations hope will be considered in the next Congress. The report proposes the creation of an independent Energy Independence Trust, which will be authorized to borrow from the U.S. Treasury in order to finance investments in clean energy and energy efficiency; the establishment of new tax incentives for capital investment in clean energy projects, including a 10-year period in which 100% of capital expenditures on renewable energy projects could be deducted in the year they are made; and the creation of a national clean energy standard to require a minimum percentage of U.S. electricity demand to be met with low-carbon sources including renewable energy, energy efficiency, nuclear power, and coal-fired power with carbon capture and sequestration. The report also urges the Federal government to encourage the development of regional clean energy plans and work with states to develop planning measures and investment strategies for promoting energy efficiency. The report emphasizes that few of these proposals would require direct government expenditures, instead relying on a mixture of regulatory incentives and tax reductions that the authors believe can attract bipartisan support. The report is available online here.
  • Scientists Call on Scientific Community to Improve Communication on Climate Change Risks. A group of ten leading climate scientists and communication experts have issued an open letter in the prestigious journal Science, calling on the scientific community to launch an organized, independent and nonpartisan initiative to provide the public and decision-makers with "critical information" on climate change risks; "address misperceptions"; and "counter misinformation and deception." Rather than advocate for particular policy outcomes, the authors propose that the initiative—dubbed "Climate Engage"—aim to promote improved understanding of climate change risks and potential solutions, and "more informed decision-making" on addressing climate change risks. The letter calls for the initiative to include communications professionals and decision scientists in addition to climate scientists, and envisions collaborations with other "communities of experts" including clergy, business and financial leaders, and insurers. The letter urges philanthropic foundations to fund the initiative. The letter is available at http://www.climateengage.org/.

Studies and Reports

  • Researchers Find Conflict Between Climate Change and Belief in "Just World" May Fuel Skepticism. Research that will be published in the January edition of Psychological Science indicates that individuals who hold "just world" beliefs may deny or discount the science of climate change because it threatens their belief that the world is just, orderly, and stable. Conservatives are more likely to hold these beliefs, according to co-author Robb Willer. The researchers suggest that less dire messaging, such as emphasizing viable solutions, will be more effective at prompting behavioral and belief changes in such individuals. The study is available at http://willer.berkeley.edu/.
  • Study Suggests CO2 Storage Could Risk Aquifers. A laboratory study suggests that if small quantities of CO2 stored in deep sequestration sites leak into freshwater aquifers, the resulting increase in aquifer acidity will leach metals from surrounding rocks. If the rocks of the aquifer contain high levels of metals such as uranium and barium, these could reach dangerous concentrations in the water. The researchers conclude that CO2 sequestration sites will have to be carefully selected to avoid human health risks. The research was published in Environmental Science and Technology, and the abstract is available at http://pubs.acs.org/doi/abs/10.1021/es102235w.

International

  • Major Economies Forum Focuses on Key Issues Prior to Cancun. Representatives of the 17 members of the Major Economies Forum on Energy and Climate met near Washington, D.C. with the goal of laying a foundation for agreement when climate change negotiations begin under the United Nations Framework Convention on Climate Change (UNFCCC) later this month. The meeting focused on addressing major substantive issues that have prevented the conclusion of a legally binding treaty, including adaptation financing for developing nations; monitoring, reporting and verification of GHG emissions; and clean technology financing. The UNFCCC negotiations are being held in Cancun, Mexico from November 29-December 10.
  • African Nations to Seek $40B in Climate Financing at Cancun Climate Talks. Speaking at a meeting of the Committee of African Heads of State and Government on Climate Change, Ethiopian Prime Minister Meles Zenawi said that African nations will present a common position at the international climate change negotiations in Cancun, Mexico later this month. Included among the African nations' demands will be a request for $40 billion of the $100 billion in climate change financing that developed nations pledged under the Copenhagen Accord to provide to developing nations. Mr. Zenawi will be the lead negotiator for the African nations.
  • Ninety-One Nations Agree on Intent to Address HFCs Under the Montreal Protocol. At the conclusion of the Conference of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol), 91 nations signed a declaration of their intent to pursue further action on reducing the use of hydrofluorocarbons (HFC) under the Protocol. HFCs, which are commonly used for refrigeration and air conditioning purposes, are potent GHGs that have a global warming potential several thousand times higher than CO2. Although two amendments to add HFCs to the protocol were rejected at the meeting, the declaration signals increasing support for their inclusion. Based on the high levels of support for the declaration, it is expected that the Protocol will be amended to incorporate HFCs in the next few years, although several major developing nations—including Brazil, China and India—remain opposed to such an amendment.
  • G20 Reaffirm Pledge to End Fossil Fuel Subsidies By 2020. Meeting in Seoul, South Korea, the G20 nations reaffirmed their commitment to eliminate fossil fuel subsidies by 2020. The G20 originally established the goal at the 2009 meeting in Pittsburgh, Pennsylvania. Achievement of the 2020 goal is expected to result in a 10 percent reduction in global GHG emissions compared to a business-as-usual scenario. Additional information is available at http://www.whitehouse.gov/the-press-office/2010/11/12/g-20-fact-sheet-energy-issues.
  • Canadian Senate Rejects Climate Change Bill; Provinces Say They Are on Track for WCI. The Canadian Senate defeated by a vote of 43-32 a climate change bill that would have set stringent national GHG emission reduction targets. The bill, called the Climate Change Accountability Act (Act), had previously passed out of the Canadian legislature's lower chamber—the House of Commons—in May. The Act would set GHG emissions targets at 25 percent below 1990 levels by 2020 and 80 percent below by 2050. The Act was introduced by the opposition National Democratic Party and was defeated largely by senators from the Conservative party. Notwithstanding the failure of the national program, environmental agency officials from three Canadian provinces—Ontario, Québec, and British Columbia—seem to be on track to develop cap-and-trade programs that would allow for linkage with the Western Climate Initiative (WCI) by 2012. The officials reported their progress in a WCI stakeholder conference call held this past week.

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