Committee Hosts Capitol Hill Seminar on Climate Change Legislation in the 108th Congress

Kyle Danish

On May 16, 2003, the Committee hosted a seminar on Capitol Hill regarding pending climate change legislation. The two speakers were Tim Profeta, a legislative aide to Sen. Joseph Lieberman, D-Conn., and Marty Spitzer, professional staff on the House Science Committee, which is chaired by Rep. Sherwood Boehlert, R-N.Y. Spitzer also is the Climate Change and Sustainable Development Committee’s vice-chair for Membership. The moderator was Dale Louda, manager of Federal Affairs for PPL, and one of the Climate Change and Sustainable Development Committee’s two vice-chairs for Alternative Programs.

Coming from the Senate and the House of Representatives respectively, Profeta and Spitzer reviewed various bills directly or indirectly affecting U.S. climate change policies, including: the Lieberman-McCain Climate Stewardship Act (S.139), the Senate and House versions of the energy bill, and the Clear Skies Act (S. 485, H.R. 499) and alternative multi-pollutant bills.

In introducing the program, Dale Louda asserted that climate change has become an issue that no U.S. power company or other major manufacturer can ignore. He explained that, at PPL, climate change is not “just” an environmental issue. Rather, the possibility of a future greenhouse gas (GHG) regulatory program is a central element of the company’s planning exercises. Louda noted the many state and shareholder initiatives emerging on the climate change issue.

Lieberman-McCain Bill
Tim Profeta focused his remarks on the Lieberman-McCain bill. Sen. McCain has stated that he plans to introduce the Lieberman-McCain bill as an amendment to the version of the energy bill currently under consideration in the Senate.

Sens. Lieberman and McCain have proposed a comprehensive, economy-wide GHG regulatory program. The Lieberman-McCain bill would reduce annual GHG emissions from the electricity generation, industrial, commercial and transportation sectors to year-2000 levels by 2010, and to year-1990 levels by 2016. The bill would allow regulated firms to meet their obligations through flexibility mechanisms, including a “cap-and-trade” program.

Profeta explained that the aim of the senators is to do something credible in the United States on climate change. He asserted that the senators are motivated by a sense of national embarrassment that the rest of the world is taking action while the Bush administration is proposing only half-measures to address the issue. Profeta emphasized that the current bill is intended only as a first iteration and that it is likely to go through many revisions.

Profeta offered several reasons to take action on climate change. First, he argued that there is a need to induce technological innovation. A market-based program, such as a cap-and-trade system, cost-effectively encourages the development and deployment of new technologies. He also asserted that there is a need for certainty. Profeta explained that capital-intensive manufacturers and energy companies make 30-year investments; continued uncertainty about the timing and stringency of a future U.S. climate regulatory program is impairing investments. Finally, he asserted that there is a need for U.S. leadership on the issue of climate change.

Overview of Legislation in the House
Marty Spitzer spoke after Tim Profeta and addressed climate change-related legislation under consideration in the House of Representatives. The Republican Representative who chairs the House Science Committee, Sherwood Boehlert, tends to vote with the Democrats on environmental issues.

Spitzer explained that any kind of climate change legislation is difficult to get through the House of Representatives at this time. On the other hand, he noted several trends that are changing the political landscape on the climate change issue. He cited recent shareholder initiatives targeted at utilities such as American Electric Power, TXU, and Cinergy. He also noted the many emerging state voluntary and regulatory programs aimed at climate change.

Spitzer acknowledged that while almost every aspect of the House energy bill at least indirectly affects climate change, the term “climate change” does not appear in the bill. Accordingly, the House will be in a position of reacting to whatever the Senate comes up with on the issue.

Clear Skies Act and Alternatives
Spitzer also addressed the Bush administration’s “Clear Skies Act” and other bills proposing “multi-pollutant” regulations for electric utilities. He noted that action on the Clear Skies Act in the Senate continues to be delayed and likely will occur only after action on the energy bill. Spitzer explained that Rep. Boehlert strongly believes that any multi-pollutant legislation affecting utilities should incorporate controls on carbon dioxide. (Rep. Boehlert finds little agreement with his fellow House Republicans on this position.) Rep. Boehlert is troubled by many aspects of the Clear Skies Act including: (1) the lack of carbon dioxide controls; (2) the weakness of the controls on other pollutants; and (3) the included amendments to other sections of the Clean Air Act, including the New Source Review program. Rep. Boehlert and others have introduced an alternative to Clear Skies – the “Clean Smokestacks Act of 2003” (H.R. 2042) – which would cap utility carbon dioxide emissions. (The Senate version of the Clean Smokestacks Act – S. 556 – has been proposed by Sen. Jeffords, Ind-Vt.).

Other Bush Administration Proposals
Spitzer also addressed the Bush administration’s proposed programs on climate change science and climate change technologies, over which the House Science Committee has oversight authority. Spitzer praised many of the process-related aspects of the administration’s climate change science program, but explained that Rep. Boehlert and other committee members are concerned that the program is focused too strongly on issues that already have been resolved. Spitzer cited a recent review of the program by the National Academy of Sciences, which came to similar conclusions. With regard to the administration’s climate technology program, Spitzer asserted that the program has had a slow start. Spitzer noted that the administration has promised a report on the program for next month.

Finally, Spitzer asserted that the Science Committee has many questions about the administration’s proposed reforms to the “1605(b)” voluntary greenhouse gas reporting and inventory program. Spitzer explained that many members believe that more should be done through legislation to address the shortcomings of the current 1605(b) system.

Kyle Danish is an attorney with the Washington, D.C. office of Van Ness Feldman, P.C. In August 2003, he will complete a two-year term as the co-chair of the Section’s Climate Change and Sustainable Development Committee.