Politics

Scientists Revive Debate in Canada

An open letter published in Canadas National Post on June 4 urges Paul Martin, MP, Canadas Prime Minister in waiting, to undertake comprehensive scientific consultations on the Kyoto Protocol when he takes office following Jean Chretiens likely retirement. The letter was inspired by reports that Martin felt that Canadian ratification of Kyoto proceeded without adequate consultation with the provinces.

The letter was signed by 35 scientists, of whom 16 are Canadian. Tim Ball, for 28 years professor of climatology at the University of Winnipeg and one of Canadas first climate scientists, coordinated the letter. Also among the signatories was Freeman Dyson, emeritus professor of physics at the Institute for Advanced Studies at Princeton, who has expressed strong skepticism about climate modeling.

The letter criticized Prime Minister Chretien for acting to ratify the protocol on the basis of a “gut feeling.” It provoked a reply from the Minister of the Environment, David Anderson, published in the National Post on June 9. Anderson called the signatories “dead wrong.” He argued for Chretiens “gut feeling” on the basis that there will never be absolute scientific certainty on climate change and so leaders need to act in order to avoid “analysis paralysis.”

Dr. Ball replied, “The real threat in all this is Mr. Andersons dogged determination to take draconian action on climate change without a proper assessment of the relevant science.”

The letter has been posted at www.sepp.org.

Administration Aids State AGs Lawsuit

On June 4, the attorneys general of Massachusetts, Maine and Connecticut filed suit against the Environmental Protection Agency for refusing to initiate a process for regulating carbon dioxide emissions.

Their suit, naming outgoing EPA Administrator Christine Todd Whitman as defendant, seeks to force the agency to apply National Ambient Air Quality Standards (NAAQS) to CO2 despite the fact that the Clean Air Act does not authorize regulation of CO2 or any climate-related programs.

According to Greenwire (June 4), the plaintiffs base much of their case on the idea that the EPA has “made clear its understanding of the possible scenarios that could result from unchecked carbon dioxide emissions. Specifically, the AGs point to the administration-approved Climate Action Report released last June that said recent climate changes are likely due mostly to human activities and that predicted increases in temperature and weather variability could have serious negative ramifications, including major ecosystem transformations, diminishing water supplies, a 4-inch to 35-inch rise in sea levels and increased outbreaks of insect-borne diseases.”

Climate Action Report 2002 (actually issued in May) and the National Assessment on Climate Change have theoretically been disowned by the current administration, with the President stating that it was “put out by the bureaucracy.” However, various agencies continue to disseminate the documents on their web sites.

Christopher C. Horner, acting on behalf of the Competitive Enterprise Institute, has petitioned under the Federal Data Quality Act to have the document removed from further dissemination, but is meeting resistance from the White House Office of Science and Technology Policy (see article in the DATE issue). The State Attorneys General lawsuit illustrates exactly how this obstinacy is creating problems for the administration itself.

State Legislative Update: New York, Illinois, Oregon, and New Jersey

Legislative activity continues in many States aimed at curbing CO2 emissions. Activity is currently at its most intense in Illinois, Oregon, New York and New Jersey.

In Illinois, HB 2563 aims at directing marine and rail terminals to operate so that trucks do not idle with their engines running for more than 30 minutes, on pain of a $250 fine. The bill is currently with the House Committee on Rules. SB 0143 would create a renewable energy portfolio standard law. It is currently before the Senate Committee on Rules.

In New Jersey, AB 2095 would increase fines for non-compliance with the renewable portfolio standard up to $10,000 to $100,000. AB 3238 would make the adoption of an emissions portfolio standard for power generators mandatory. Current law already requires power generators to track emissions in lbs per MWh of SO2, CO2 and NOx. The bill is currently before the Committee on the Environment. AB 3491 would prohibit diesel trucks from idling at marine terminals, and is currently before the Committee on Transportation.

In New York, AB 04082 would adopt Californias vehicle greenhouse gas regulations by 2009. It has been through the Committees on Environmental Conservation and Codes and was amended in the Assembly during May. AB 05933 would set performance standards for NOx, SO2, CO2 and Hg, and has passed the Assembly. It is currently before the Senate Committee on Environmental Conservation.

Also in New York, AB 06428 would set an emissions standard for NOx, SO2, Hg and CO2 based on lbs per MWh generated. It would make a CO2 emissions cap permanent by 2007 that is seven percent less than 1990 levels and also establish a credit trading program. The bill passed the Assembly in March and is currently before the Senate Committee on Energy and Telecommunications. SB 00899 would set a clean energy requirement that 1.5 percent of each utilitys electricity supply comes from renewables, increasing by 0.5 percent each year until the requirement reaches six percent, after which it would increase by one percent annually until the requirement stands at ten percent. This bill is also currently before the Senate Committee on Energy and Telecommunications.

In Oregon, HB 2788 would impose a tax on each fuel supplier and utility based on the amount of carbon in fuels sold to consumers or used to produce electricity. It would also create a renewable energy resources account fund for development of renewable energy resources. The bill was introduced in March.

Mercury Numbers Look Shaky

On June 5, the Senate Subcommittee on Clean Air, Climate Change and Nuclear Safety held a hearing on the Clear Skies Act, S.485, that focused on mercury. Reducing mercury emissions has been seen as a potential indirect means of reducing carbon dioxide emissions because it could force utilities to close coal-fired power plants.

Incidental mercury reductions, which the EPA initially anticipated would produce a decrease of 22 tons by 2010, will actually result in a reduction of only 2 to 14 tons from its current level of 48 tons per year according to Dr. Randall Kroszner, acting chairman of the Council of Economic Advisors.

According to Dr. Larry S. Monroe of the Electric Power Research Institute, the Clear Skies Acts mercury reduction scheme would reduce the fraction of the population above the reference dose for mercury by only 0.064%, at an estimated cost of 6 billion dollars.

Dr. Richard Bucher, on behalf of W.L. Gore and Associates, the makers of GORE-TEX fabrics, reported a breakthrough by his company in using their synthetics to capture mercury at rates higher than any commercially available products. According to Bucher, “Coal burning trial results . . . indicate mercury capture rates consistently in excess of 90%.” However, the technology is still in the testing stage and may not be available to power suppliers for years.

Energy Bill Prompts Rash of Proposals

The Senate energy bill, S. 14, when published in draft form contained a climate change title. Three specific provisions raised alarm bells for many the requirement for a national strategy to “stabilize and over time reduce net U.S. emissions of greenhouse gases,” including annual reports; a revival of the Clinton-Gore Administrations White House climate czar and office; and a program to award credits for early action in reducing emissions.

Following protests against the title, such as a letter to Sen. Pete Domenici (R.N.M.), Chairman of the Committee on Energy and Natural Resources and sponsor of the bill, signed by representatives of 21 nonprofit organizations including members of the Cooler Heads Coalition, the title was dropped from the draft bill. Nor does the bill contain any reference to a higher CAFE standard, a Renewable Portfolio Standard for utilities, or an expanded ethanol mandate.

These omissions have led to a rash of proposed amendments. The Environment and Public Works committee has passed out an ethanol mandate similar to last year’s 5 billion gallon per year mandate with some slight improvements. The mandate will ban the current most popular additive MTBE, which has been accused of contaminating groundwater. Ethanol, however, has environmental problems of its own, as more emissions are generated in the production of the added ethanol than in the burning of the gasoline it replaces. Sens. Schumer, Clinton, Feinstein, and Boxer have signaled that they will again try to defeat the ethanol mandate, but are unlikely to succeed.

The Senate is scheduled to resume floor debate on the bill on Monday 2 June and will continue debate throughout the week. Several Senators are likely to propose amendments reinstating climate change provisions to the bill. It is probable that the Energy and Natural Resources Committees ranking Democrat, Sen. Jeff Bingaman (D.N.M.), will offer language similar to that approved in Titles X, XI and XIII in last years Energy bill sponsored by Sen. Tom Daschle (D.S.D.).

Other possibilities include climate change proposals sponsored by Sens. McCain, Lieberman, Jeffords, Carper, Gregg and possibly others. Any proposal to raise Corporate Average Fuel Economy Standards for automobiles is likely to be defeated following last years lopsided vote against them.

Further developments will be featured in the next newsletter.

Christy Testifies to House Resources Committee

The House Resources Committee held a field hearing in Saint Clairsville, Ohio on May 13 on the potential economic effects of Kyoto-style policies on coal-dependent communities. A bleak future for Ohios coal communities if CO2 emissions are limited was described in testimony by Robert Murray, a major independent coal producer, Eugene Trisko, representing the United Mine Workers of America, Gary Obloy of the Community Action Commission of Belmont County, and others.

Dr. John Christy, Professor of Atmospheric Science and Director of the Earth System Science Center at the University of Alabama in Huntsville, described the shaky scientific basis for global warming alarmism. He then widened the discussion of the negative social and economic effects of energy-rationing policies by drawing on his experiences as a missionary in east Africa.

Christy expanded on his comments in a May 22 letter to the chairman of the Resources Committee, Rep. Richard Pombo (R.Calif.), in which he wrote:

“I’ve always believed that establishing a series of coal-fired power plants in countries such as Kenya (with simple electrification to the villages) would be the best advancement for the African people and the African environment.

“An electric light bulb, a microwave oven and a small heater in each home would make a dramatic difference in the overall standard of living. No longer would a major portion of time be spent on gathering inefficient and toxic fuel. The serious health problems of hauling heavy loads and lung poisoning would be much reduced.

“Women would be freed to engage in activities of greater productivity and advancement. Light on demand would allow for more learning to take place and other activities to be completed. Electricity would also foster a more efficient transfer of important information from radio or television. And finally, the preservation of some of the most beautiful and diverse habitats on the planet would be possible if wood were eliminated as a source of energy.

“Providing energy from sources other than biomass (wood and dung), such as coal-produced electricity, would bring longer and better lives to the people of the developing world and greater opportunity for the preservation of their natural ecosystems.

“Let me assure you, notwithstanding the views of extreme environmentalists, that Africans do indeed want a higher standard of living. They want to live longer and healthier with less burden bearing and with more opportunities to advance.

“New sources of affordable, accessible energy would set them down the road of achieving such aspirations. These experiences made it clear to me that affordable, accessible energy was desperately needed in African countries.

“As in Africa, ideas for limiting energy use…create the greatest hardships for the poorest among us. As I mentioned in the Hearing, enacting any of these noble-sounding initiatives to deal with climate change through increased energy costs, might make a wealthy urbanite or politician feel good about themselves, but they would not improve the environment and would most certainly degrade the lives of those who need help now.”

Russia Cools on Kyoto

Following Americas decision not to move forward with the Kyoto Protocol, environmentalist attention has switched to Russia, as the protocol cannot become international law without Russian ratification. Russia had been expected to ratify the protocol this year as its ailing economy had already met emissions targets thanks to the forced closure of so many emissions sources.

However, following several years of strong economic growth, moves to ratify the protocol have slowed. German Gref, Minister for Economic Development and Trade, has been accused by the World Wildlife Fund of blocking ratification by failing to move the process forward. Speaking at the G8 meeting at the end of April, the junior Minister for Natural Resources, Irina Ossokina told Agence France Presse, “I would like to underline that we at the Ministry of Natural Resources are wholly and truly for the ratification of the Kyoto Protocol but unfortunately we have a difference of opinion within the country We were hoping to ratify this summer but we were having difficulties with our economic advisors.”

Meanwhile, Russian scientists are playing a large role in organizing a major International Conference on Climate Changes, scheduled to take place in Moscow this fall. The chair of the conference, Yuriy Izrael, told Russian reporters, “We are looking forward to serious, interesting discussions We are not going to create new contradictions but … find out what is really going on on this planet – warming or cooling.”

Izrael went on to say, “The most important issue, whether [ratifying the Kyoto Protocol] will bring about an improvement of the climate or its stabilization, or its worsening, is not clear.” (AFP, April 27, St Petersburg Times, 13 May).

Menendez Amendment Threatens State Department Bill

On May 7, the House International Relations Committee approved an amendment to the State Department reauthorization bill that says the United States should “demonstrate international leadership” in climate change issues. The resolution, added to H.R. 1950 during a markup session and proposed by Rep. Robert Menendez (D-N.J.), contains language similar to that added to the Senate version of the bill by the Foreign Relations Committee Chairman on April 9.

The amendment was approved by the committee by 21 votes to 18, with Republicans Jim Leach (Iowa) and Chris Smith (N.J.) voting in favor alongside 19 committee Democrats (two Democrats missed the vote). Six Republican members of the committee were not present for the vote. They were: Elton Gallegly (Calif.), Ileana Ros-Lehtinen (Fla.), Amory Houghton (N.Y.), Nick Smith (Mich.), Jo Ann Davis (Va.) and Katherine Harris (Fla.).

The amendment commits Congress to agreeing that “manmade greenhouse gases are contributing to global climate change” and accepts the conclusion of the IPCC that “most of the warming observed over the past 50 years is attributable to human activities.” Menendezs amendment also expresses concern over rising sea levels, changes in crop yields, and the spread of tropical infectious diseases.

Although Rep. Menendez said that he was “not here to advocate the Kyoto Protocol,” the amendment advocates Kyoto-style energy rationing mechanisms and urges the United States to rejoin the Kyoto negotiations in order to negotiate a second protocol.

The committee passed a similar amendment proposed by Rep. Menendez during the last Congress. It was removed during the conference stage owing to the efforts of then-House Majority Whip Tom DeLay (R-Texas). Fears that the House leadership might not send the bill to the floor if it contains the language were reflected by Committee Chairman Henry Hyde (R-Ill.), who said that he felt the amendment was unnecessary, given the administrations commitment to spend $1.7 billion on climate research this year.

The committee voted for the amendment despite a strong effort mounted by opponents. A joint letter criticizing the amendment was sent to the committee members by 33 non-profit groups. Signers included 12 members of the Cooler Heads Coalition: Competitive Enterprise Institute, Americans for Tax Reform, Citizens for a Sound Economy, Frontiers of Freedom, American Legislative Exchange Council, 60 Plus Association, National Center for Public Policy Research, Center for Security Policy, Small Business Survival Committee, American Policy Center, Heartland Institute, and Committee for a Constructive Tomorrow.

Another joint letter from trade associations was organized by the National Association of Manufacturers. A detailed and exhaustively footnoted refutation of the amendments was produced and circulated by the Center for Science and Public Policy and CEI. (Greenwire, May 8, 2003)

Competing Lobbies Argue Over CO2 Caps in Senate

As the Senate begins debate on the energy bill, S. 14, a coalition of nine energy companies is supporting a bipartisan plan to reduce air emissions from electric utilities in preference to the competing Clear Skies plan supported by the Bush administration.

The Clean Energy Group (CEG), consisting of Conectiv, Consolidated Edison, Entergy Corp., Exelon Corp., KeySpan, PG&E National Energy Group, Public Service Enterprise Group Inc., and Sempra Energy, dissents from the Bush administration’s suggestion that mandating carbon dioxide (CO2) controls from power plants is too costly and will wreak economic havoc.

CEG argues that the Clean Air Planning Act (CAPA), introduced by Sens. Tom Carper (D-DE) and Judd Gregg (R-NH), reduces pollution far more than the administration’s Clear Skies legislation, including CO2 reductions omitted by Clear Skies, at only slightly greater cost $66.7 billion as against $65.4 billion over twenty years from 2005 to 2025. The Carper-Gregg Bill presents tougher standards and shorter timetables than Clear Skies. The EPA is preparing its own comparison of Clear Skies and the Carper bill, following Carpers request for an agency comparison at an April 8 Senate committee hearing.

The group also argues that the even stricter bill introduced by Sen. James Jeffords (I-Vt.) with the support of environmental groups is far more costly than the Carper bill. A 2001 EPA analysis of an earlier Jeffords proposal to reach those same emission targets by 2007 concluded that overall costs would be between $13 billion and $30 billion annually.

Some voices in the Senate suggest the CEG analysis is tainted as the group includes members of the nuclear industry. The Carper bill would allow the nuclear industry to sell emission credits to coal-powered utilities at a profit, because the industry does not emit CO2. One lobbyist backing the Clear Skies plan says the Carper plan would provide “free money” to the nuclear industry.

House Committee Will Take Up Sense of Congress Language on Climate

The House International Relations Committee is scheduled to take up the State Department Authorization bill (which has not yet been given a number) on May 7. Committee staff expect that Rep. Robert Menendez (D-N. J.) will offer sense of Congress on climate change language similar to that voted out of the Senate Foreign Relations Committee on April 9.

Last year, a similar amendment offered by Menendez was approved on a 23-20 vote. Republican Representative Chris Smith of New Jersey joined committee Democrats in voting for the amendment. Four Republicans missed the vote. The amendment was dropped in the House-Senate conference report on the bill.

This year, Menendezs amendment faces a more organized opposition. Chairman Henry Hydes (R-Ill.) committee staff are canvassing Republican members. The House majority leadership are united in opposing the amendment. A joint letter opposing the amendment from several trade associations led by the National Association of Manufacturers has been sent to committee members. Another joint letter from non-profit groups is being circulated by the Competitive Enterprise Institute for signatures.

The Senate has scheduled consideration of its State Department authorization bill, S. 925, for May 6. It is not known whether there will be an attempt to strip or replace the climate language. Among other things, the climate section calls on the administration to negotiate a new international treaty with binding commitments to reduce greenhouse gas emissions. For a more complete account of the Senate version, see the April 16 issue.

Senate Energy Bill Goes to Floor Without Climate Title

The Senate Energy and Natural Resources Committee completed work on comprehensive energy legislation on April 30 and sent the bill to the floor. The bill, S. 14, does not contain any climate policy provisions. Senator Jeff Bingamans (R-N.M.) amendment to add a renewable portfolio standard for electric utilities was also defeated.

The Senate could begin floor debate on the bill as early as next week, although it is expected that there will be several weeks of intermittent debate before a final vote. Numerous amendments on climate policy may be offered. These include Titles 10, 11, and 13 from last years Senate energy bill; the McCain-Lieberman bill to cap greenhouse gas emissions, S. 139; and Senator Tom Carpers (D-Del.) Clean Air Planning Act, S. 843.

White House Denies Petition Using Data Quality Act

The White House Office on Science and Technology Policy on April 21 denied a petition to have the National Assessment on Climate Change corrected to comply with the Federal Data Quality Act.

OSTP legal counsel, in replying to the petition filed by Christopher C. Horner on behalf of the Competitive Enterprise Institute, claims that the National Assessment was produced by a federal advisory committee and is therefore exempted by the Federal Advisory Committee Act from meeting the Data Quality Acts requirements.

“Only a few problems stand between this claim and reality,” Horner commented.

“First, the statute authorizing the National Assessment expressly states that it will be produced by OSTP. Second, the National Assessments text acknowledges that it was produced by OSTP. Third, on numerous occasions the federal advisory committee charged with assisting OSTP acknowledges that the National Assessment itself will be a product of OSTP,” Horner continued.

“Furthermore, neither OSTPs guidelines nor the White House Office of Management and Budgets FDQA guidelines provide any exemption for FACA products,” said Horner, who is preparing an appeal on behalf of CEI.

The petition and the White Houses denial may be found at www.cei.org.

Climate Title Stripped from Senate Energy Bill

Senator Pete Domenici (R-N.M.), chairman of the Energy and Natural Resources Committee, decided to drop his draft climate title when it came time to mark it up on April 10. He noted during the committee meeting that he had discovered that no consensus existed among members of the committee on what climate policies should be included in his comprehensive energy legislation. However, he pledged to work toward a constructive compromise before the bill reached the Senate floor.

Senator Jeff Bingaman (D-N.M.), the ranking Democratic member, announced that he had prepared two amendments, but would delay offering them until late April when committee mark-up is scheduled to resume. These amendments are a new version of the Byrd-Stevens bill that was included in last years Senate energy bill and proposals to improve greenhouse gas emissions monitoring and reporting. Senator Ron Wyden (D-Oreg.) also said that he had an amendment, based on the Craig-Wyden carbon sequestration bill, that he planned to offer.

The draft climate title, which was released for comment on March 26, aroused opposition from several committee Republicans and from conservative and free market public interest groups. Title XI would have created a White House Office of Climate Policy and climate czar, required the executive branch to produce a national strategy that “will stabilize and ultimately reduce net U. S. emissions of greenhouse gases” plus annual progress reports; and created a system to award credits for voluntary actions to cut emissions.

A joint letter criticizing the climate title was sent to Chairman Domenici on April 4. It was signed by leaders of 21 non-profit groups, including the Competitive Enterprise Institute, Coalitions for America, Americans for Tax Reform, 60 Plus Association, American Conservative Union, National Taxpayers Union, Christian Coalition, National Center for Public Policy Research, Small Business Survival Committee, American Policy Center, and Frontiers of Freedom. The letter states that the climate title would “in our view create the institutional and legal framework and the political incentives necessary eventually to force Kyoto-style energy rationing on the American people.” The text may be found online at http://www.cei.org/gencon/003,03434.cfm.

Foreign Relations Committee Speaks on Climate Change

On April 9, the Senate Foreign Relations Committee passed by voice vote a sense of the Senate resolution on climate change as part of the State Department re-authorization legislation. Senator Joe Bidens (D-Del.) amendment includes a finding that there is growing evidence that “increases in atmospheric concentrations of man-made greenhouse gases are contributing to global climate change.” The resolution enumerates several other irrelevant and false findings before stating that the U.S. should reduce the risks of climate change by:

(1) “taking responsible action to ensure significant and meaningful reductions in emissions of greenhouse gases from all sectors;

(2) “creating flexible international and domestic mechanisms, including joint implementation, technology deployment, tradable credits for emissions reductions and carbon sequestration projects that will reduce, avoid, and sequester greenhouse gas emissions; and

(3) “participating in international negotiations, including putting forth a proposal to the Conference of the Parties, with the objective of securing United States participation in a future binding climate change Treaty in a manner that is consistent with the environmental objectives of the UNFCCC, that protects the economic interests of the United States, and recognizes the shared international responsibility for addressing climate change, including developing country participation.”

House Approves Energy Bill, ANWR Exploration

On April 11, the House of Representative passed an omnibus energy bill by a vote of 247-175. The bill would open the Alaska National Wildlife Refuges coastal plain to oil and gas exploration. It also contains numerous subsidies and incentives for conventional and renewable energy production.

Amendments to remove the ANWR provision, electricity restructuring, and oil and natural gas royalty relief were defeated, as was an amendment that would have required automobile manufacturers to raise the Corporate Average Fuel Economy of their fleets to 30 miles per gallon by 2010. A provision that would have allowed the Department of the Interior to make a complete inventory of the nations offshore oil and natural gas supplies was stripped from the bill. (Greenwire, April 14, 2003).

Climate Change Skepticism on the Rise in Russia

Global warming skepticism seems to be increasing in Russia as that country wrestles with the decision of whether to ratify the Kyoto Protocol. Russia has become the lynchpin in the Kyoto debate. Failure to ratify on Russias part would prevent the treaty from coming into legal force.

The Moscow newspaper, Pravda, recently published a strongly worded article, entitled “Kyoto Protocol Is Not Worth a Thing,” which questioned the wisdom of ratification. Another Russian newspaper, Nezavisimaya Gazeta, published an article written by two Russian climate scientists, Sergey Dobrovolsky and Vyacheslav Naydenov, entitled “The Warming That Never Existed.”

The Pravda article highlighted the words of an ecologist who questioned global warming science. “This trouble is coming from the Russian Arkhangelsk region,” according to Pravda. “This region is celebrated for its implementation of the Kyoto protocol. There was a briefing held there recently to discuss climate questions. Young ecologist Alexander Shalarev dared to say [what] Moscow scientists are afraid to say. He declared that there was actually no [manmade] greenhouse effect at all. Shalarev added that the Kyoto protocol was simply a far-fetched idea, a political action that was meant to show the care for the climate of the Earth.”

Pravda also noted that Shalarev believes that the Kyoto protocol was signed without adequate scientific analysis and in order to satisfy the political goals of a Democratic administration (as it was back in those days). He said that the Clinton administration loved grand ecological schemes with the maximum federal involvement. When a Republican administration was elected, the U.S. backed away from the Kyoto protocol.

Dobrovolsky and Naydenov are equally dismissive of the Kyoto Protocol. “We would like to mention that the Kyoto protocol was formally based on the [work of the United Nations Intergovernmental Panel on Climate Change]. However, neither the conclusions of that research, nor science as it is can support the measures of the Kyoto protocol (Electricity Daily, April 14, 2003).”

The majority staff of the Senate Energy and Natural Resources Committee on March 26 released comprehensive energy legislation in draft form. The bill includes significant global warming policy proposals in Title XI. The climate change title would create a White House Office of Climate Policy and climate czar, require the executive branch to produce a national strategy that “will stabilize and ultimately reduce net U. S. emissions of greenhouse gases” plus annual progress reports; and create a system administered by the Department of Energy to award credits for voluntary actions to cut emissions.

After taking comments through April 4, the committee staff plans to produce a “chairmans mark” for release on April 8. This would allow Chairman Pete Domenici (R-N.M.) to mark up the bill in committee on April 10. It is unlikely that action on the entire bill will be completed before the Easter recess, but sources told Cooler Heads that the chairman wanted to complete work on the climate title on the 10th.

The language in the climate provisions is mostly taken from Republican-sponsored amendments to the energy bill put together in the last Congress by then-Majority Leader Tom Daschle (D-S. D.), which was brought to the floor without being considered by the Energy Committee. Most of those amendments were offered in an attempt to water down what were considered by their sponsors to be the most objectionable parts of Daschles bill.

The energy bill overall is much more pro-energy than last years Daschle bill. It contains provisions that would allow greater access to Americas energy resources and promote development of the nations energy infrastructure. It also jettisons several provisions that would limit energy supplies and raise prices, such as the Renewable Portfolio Standard for electric utilities.

The Competitive Enterprise Institute immediately came out against the climate title. A joint letter to Chairman Domenici was being circulated for signing by other non-profit groups. It states that the climate title would “in our view create the institutional and legal framework and the political incentives necessary eventually to force Kyoto-style energy rationing on the American people.” The letter will be posted at www.cei.org.

“The climate title looks more like a Kerry or Lieberman campaign document than something produced by a Republican committee staff. If this title is enacted, we wont need the rest of the energy bill,” said Myron Ebell, director of global warming policy at CEI (and editor of Cooler Heads).

Although committee staff initially spread the word that the Administration supported the climate title, Administration sources denied that they supported it or had been involved in its drafting. In fact, legislating a White House climate czar and office would undo the Bush Administrations decision in 2001 to abolish that Clinton-created office and position.

Japans industrial sector is beginning to grouse about its obligations under the Kyoto Protocol, which the government ratified last year. According to Taishi Sugiyama, a senior researcher at Japans independent Central Research Institute of the Electric Power Industry, industry is putting considerable pressure on the government to rethink the Kyoto Protocol. Apparently, the government is listening.

Japan was one of the last countries to ratify Kyoto, partly due to strong opposition by industry groups and the Japanese Conservative Party, which favored voluntary reductions. But the government also felt obligated to ratify a treaty named for its ancient capitol. Now, nearly a year later, industry has become increasingly resentful of the Kyoto Protocol, said Sugiyama, who spoke to the World Resources Institute in Washington, D.C. last week.

Now the government is looking ahead to the 2005 negotiations when Kyoto signatories will discuss actions to be taken beyond 2013. Experts, such as Sugiyama, expect that the government will push for voluntary emissions reductions targets. Others disagree, however, saying that it would be very difficult for Japan to back away from the treaty.

Part of the resentment of the treaty comes from the assumptions the government used to determine its ability to meet the targets. For

example, it assumed that cuts in industrial emissions would be accomplished in large part through carbon leakage. In other words, heavy industry would close plants in Japan and open new plants on the Asian mainland, which the affected industries may have been surprised to learn. There was also widespread doubt that Japan would be able to meet its Kyoto targets, a sentiment the government apparently ignored.

Industry leaders also feel that the treaty is unfair. They argue that Japan is the only country that has enacted truly aggressive implementation policies, while the Kyoto Protocol allows European Union countries to buy emissions credits from less industrialized Eastern European countries, thereby avoiding the need for significant emissions reductions. Moreover, the EU has replaced much of its coal-fired capacity with natural gas since 1990, which serves as the baseline year for Kyoto reductions, thereby making the EUs target much less onerous.

Finally, industry argues that Japan made significant emissions reductions prior to 1990, when the government embarked on a tremendously costly twenty-year program to cope with the Arab oil embargo, making the 1990 baseline unfair to Japan. “We have already done much,” said Sugiyama. “Still, Kyoto requires [Japan] to reduce emissions 6 percent. Given that situation, its going to be extremely difficult to reduce emissions further.”

Last October the government organized a committee to revisit the Kyoto agreement. The committee, made up of 30 stakeholders, half of which are industry representatives, will present its findings to the government this month. It is likely, said Sugiyama, that it will call for a new protocol or an amended agreement with a combination of voluntary and mandatory targets (Greenwire, March 6, 2003).

Court Orders EPA to Hand Over Climate Change Documents

The Environmental Protection Agency has been ordered by the U.S. District Court for the District of Columbia to produce “climate change” documents requested under the Freedom of Information Act by the Competitive Enterprise Institute (CEI), or to justify their withholding. CEI, a non-profit free market advocacy group, requested the documents to determine whether or not the agency was engaging in activities to implement the Kyoto Protocol “through the backdoor” in opposition to congressional prohibition.

“Now we can finally begin assessing how far the agency has gone toward backdoor implementation of the Kyoto Protocol,” said Christopher C. Horner, CEI Counsel who filed the lawsuit.  “We also remain fascinated by a point of which the Court took particular note:  How does EPA explain their shift in alarmism from the global cooling scare of years past to the current emphasis on catastrophic global warming?”

The documents that the EPA has been ordered to hand over are expected to show that the agency has violated the “Knollenberg Provision,” originally sponsored by Rep. Joe Knollenberg (R-MI). The provision prohibits the federal government from spending money to implement the Kyoto Protocol, which has not been ratified by the U.S. Senate.

“By this Order, the D.C. District Court joins CEIs puzzlement over the Administrations refusal to turn over documents on the basis that their release may potentially harm U.S. interests in ongoing Kyoto negotiations,” said Horner.  “And it adds to the mounting public embarrassments over the refusal by various officials to execute the Presidents rejection of Kyoto, instead continuing to try to cut a deal for a treaty the President assured the public he rejected in Americas interest.”

The court ruling, said Horner, will likely expose attempted backdoor implementation during the Clinton Administration. The EPA has until March 31 to either produce the documents or explain to the satisfaction of the court why they are withholding them.

Analyst Shreds AGs CO2 Case

State Attorneys General from several states have filed notice on two separate occasions this year of their intent to sue the U.S. Environmental Protection Agency for failing to regulate carbon dioxide. The first notice came on January 30, informing EPA Administrator Christine Todd Whitman that the Attorneys General of Massachusetts, Connecticut, and Maine planned to sue under Section 108 of the Clean Air Act (CAA), which they claim obligates Whitman to list CO2 as a pollutant that endangers public health and safety.

The second notice came on February 20 when the three AGs, joined by four others representing New York, New Jersey, Rhode Island and Washington, informed Whitman of intent to sue unless she promulgates New Source Review Performance Standards for power plant emissions of CO2 under section 111 of the CAA.

In a critique of the two letters, Marlo Lewis, a senior fellow at the Competitive Enterprise Institute, accuses the AGs of engaging in “mere word play” and a “sophomoric attempt to turn statutory construction into a game of gotcha.”

The question, argues Lewis, is “Did Congress delegate to EPA the power to regulate CO2? When Congress enacted and amended the CAA, did it intend for EPA to set up a mandatory greenhouse gas control program?” The answer is clearly no, according to Lewis. As he has noted elsewhere and repeats in the current critique, CO2 is not mentioned in any CAA regulatory provisions and only once in a non-regulatory provision. The clincher, however, is the statement within the non-regulatory provision that, “Nothing in this subsection shall be construed to authorize the imposition on any person of air pollution control requirements.”

Moreover, the AGs want the EPA to declare CO2 a pollutant under the National Ambient Air Quality Standards (NAAQS) program. But NAAQS is a program that deals with “place-specific air quality programs,” which “measures local pollution levels against national air quality standards and seeks to remedy local problems via state implementation plans.”

It doesnt make any sense to attempt to regulate CO2 under the NAAQS provision because regardless of where the CO2 is emitted, it has the same potential impact on the climate. “If EPA set NAAQS for CO2 above current atmospheric levels, the entire country would be in attainment, even if U.S. consumption of hydrocarbon fuels suddenly doubled,” says Lewis. “Conversely, if EPA set a NAAQS for CO2 below current levels, the entire country would be out of attainment, even if all power plants, factories, and automobiles shut down.”

The second notice of intent to sue is a new innovation in the AGs attempt to force the EPA to regulate CO2. This one seeks to force Administrator Whitman to set New Source Performance Standards (NSPS) for CO2 emission from electric generating units. NSPS requires different categories of stationary sources to meet certain performances. Lewis points out that the NSPS program was enacted in 1970, “years before global warming was even a gleam in Al Gores eye.” Nor did Congress instruct the EPA to address global warming in the NSPS program when it amended the CAA in 1977 and 1990.

Sen. Patrick Leahy (D-VT) introduced legislation to amend the NSPS to cap CO2 from power plants in the 105th, 106th, and 107th Congresses. Each time the bill attracted zero co-sponsors. Its absurd, says Lewis, to argue that Congress implicitly empowered EPA to cap CO2 in 1970 given Leahys efforts to provide that authority and Congresss flat rejection of those efforts. “The phrase laughed out of court was invented for just such inanities.” Lewis makes several other cogent and damning critiques of the AGs arguments.

He concludes by challenging EPA Administrator Whitman to show leadership in the face of these attacks. These notices are designed to force her to choose between the Presidents opposition to CO2 regulation and the career bureaucrats who want to increase their power over the U.S. economy, says Lewis. “Whitman must decide where her loyalties lie with the rule of law, economic growth, and affordable energy, or with the rule of bureaucrats, regulatory excess, and Kyoto-style energy rationing.” The critique, The Anti-Energy Litigation Of The State Attorneys General: From Junk Science To Junk Law, is available at www.cei.org.

Maine Bill Would Prevent Kyoto Implementation

In an attempt to thwart Kyoto-style legislation and Kyoto-related activities in Maine, a bill has been introduced in the state legislature that would prohibit the State from spending any money to implement international treaties that have not been ratified by the U.S. Senate.

The bill may be the beginning of a backlash against efforts in New England to carry out Kyoto-style policies and to pressure the Bush Administration to do likewise. In 2001, for example, the governors of all six New England States signed an agreement with the Eastern Canadian provinces to reduce greenhouse gas emissions to 1990 levels by 2010 and to 10 percent below 1990 levels by 2020.

Also, State Attorney General Steven Rowe is one of several attorneys general who have threatened to sue the Bush Administration for failing to reduce greenhouse gas emissions to prevent global warming. Maine lawmakers have also sought to introduce legislation to restrict greenhouse gas emissions.

The bill, introduced by Rep. Henry Joy (R-Crystal), reads in part, “A state department or agency may not expend or award funds to implement, in whole or in part, an international treaty that the United States Senate has not ratified.” The bill explains that “to implement” is any “means to take any action that has a demonstrable and direct connection to specific requirements of any international treaty that has not been ratified by the United States Senate.”

On Wednesday, Rep. Joy testified that Kyoto “really doesnt have anything to do with conservation. Its really about command and control where you live, how you live and in some cases, if you do live.” Joy introduced the bill on behalf of Jon Reisman, an economics professor at the University of Maine at Machias, who has worked to prevent such efforts.

Reisman calls the agreement between the New England States and Canadian provinces, “an unconstitutional foray into foreign policy.” He has noted the agreement violates Article 1, Section 10 of the Constitution, which states, “No State shall enter into any Treaty, Alliance or Confederation. No State shall, without the Consent of Congress enter into any Agreement or Compact with another State, or with a foreign Power.”

Arab States Reject Warming Claims

Thirteen oil producing Arab states, including Saudi Arabia, Kuwait, Iraq and the United Arab Emirates, have signed a declaration dismissing global warming claims and asserting their right to produce and sell oil.

“Such unfounded allegations and doubts would make victims of the oil and gas sector and may result in a recession in world demand, thus harming the interests of producers,” says the so-called Abu Dhabi declaration. The signatories “reaffirmed the necessity of a continuous and unobstructed supply of oil and gas to international markets.”

The signatories also argued that if the world presses ahead with restrictions on energy use, then the Arab states should be compensated for the loss in oil and gas revenues that would result (The Independent, February 9, 2003).

IRS Should Audit SUV Owners

In its continuing war against the automobile in general and large sport utility vehicles in particular, the Sierra Club has urged the Internal Revenue Service in a letter to audit the tax returns of SUV owners who take advantage of the provision in the tax code that allows small business owners to write off a portion of the cost of vehicles weighing over 6,000 pounds used for business purposes.

The tax code requires that such vehicles be used at least 50 percent of the time in business activities to be eligible for the write off. The Sierra Club claims that individuals are taking advantage of the tax credit to purchase luxury SUVs for personal use. The Sierra Club has also attacked President Bush for his budget plan proposal that would increase the deduction from $25,000 to $75,000 (lists.sierraclub.org).

SUVs may get a reprieve from those trying to get them banned, however. The massive snow storm on the east coast saw SUV owners contribute invaluable, life-saving services. An article in the Baltimore Sun (February 18, 2003) begins, “A half-dozen shiny big SUVs were lined up outside St. Joseph Medical Center yesterday morning, their volunteer drivers proving to the world that they are nothing like the arrogant, self-centered, fuel-squandering ignoramuses of stereotype.”

Up and down the east coast, volunteer SUV drivers turned out in droves to help taxi essential hospital personnel, such as nurses and doctors to and from hospitals. Without those volunteers and their SUVs, important emergency personnel would have been stranded without a way to work.

“You hear it on the news – all about the gas-guzzling hogs driving SUVs,” said Jeff Hegberg, climbing back into his $40,000, 7,200-pound, black 2002 Chevrolet Suburban. “Well, on a day like this, what would the hospitals do without us?”

Attorneys General Threaten Lawsuit

Attorneys general from three StatesConnecticut, Massachusetts and Mainehave notified the Bush administration of their plan to sue the U.S. Environmental Protection Agency unless it classifies carbon dioxide as a pollutant under the Clean Air Act, which would allow the agency to begin regulating emissions of the gas.

In a letter to EPA administrator Christie Whitman, the attorneys general, all Democrats, warned the EPA that if the agency does not act within 60 days they will bring the suit. “We have not seen any appreciable progress on the development of a national program to address carbon dioxide emissions,” says the letter. “In seeking to protect the health and welfare of our citizens from the impacts of climate change, we are left to fall back on our available remedies available under existing law.”

The attorneys general claim that the EPA is violating federal law by not regulating CO2. “The Clean Air Act requires the EPA to take certain actions when it determines that a pollutant may cause or contribute to air pollution which may reasonably be anticipated to endanger public health or welfare.”

The attorneys general base their argument on the administrations Climate Action Report 2002 (CAR) which was submitted to the United Nations Framework Convention on Climate Change in May 2002. They claim that the admission that climate changes “are likely due mostly to human activities,” obligates the EPA to regulate CO2. But the CAR should have never been released because it was based on the thoroughly discredited National Assessment, a report prepared by a federal advisory committee appointed by the Clinton Administration.

Marlo Lewis, a senior fellow at the Competitive Enterprise Institute in Washington, D.C., argues that the attorneys general ignore the plain language, structure, and legislative history of the law. The AGs build their case on Section 103(g), which refers to CO2 as a “pollutant.” However, the context of that sole reference to CO2 in the Act is a discussion of “nonregulatory strategies,” and the passage concludes with the admonition that, “Nothing in this subsection shall be construed to authorize the imposition on any person of air pollution control requirements.” According to Lewis, “If nothing in that subsection gives EPA authority to impose new control requirements, then the passing reference therein to CO2 as a pollutant cannot provide such authority.”

Lewis also accused the attorneys general of trying to end run the legislative process. “They want to legislate energy taxes or their regulatory equivalent through the courts rather than allow Congress to make the law.”

The threatened lawsuit follows a letter that 11 attorneys general sent to the administration last July urging it to regulate CO2. It also follows a lawsuit against the EPA filed by three environmental groups to force the agency to regulate automotive emissions of CO2 using the same legal argument as the state attorneys general.

An industry source told Greenwire (January 31, 2003) that there is little to worry about. “If Im an EPA attorney, Im not losing any sleep over defending this lawsuit,” he said. “Of course, the issues would have to be briefed properly. But the risk of EPA losing this case, if its even litigated, is very, very low. I just think arguing that CO2 is a pollutant is too big a legal hurdle to get over.”

NC Approves Renewable Energy Plan

The North Carolina Utilities Commission approved a plan on Jan. 28 that will allow the residents of that state to purchase electricity produced from renewable sources. It is the first statewide program of its kind in the nation, according to the Charlotte Observer (January 29, 2003).

The NC Green Power program, to be launched in six months, will initially allow residential customers to buy power generated mostly from landfill gases. Wind and solar power are slated to make up 15 percent of the states electricity supply by the third year of the plan. Customers who choose to purchase electricity from renewable sources will buy it in blocks of 100 kilowatt-hours for an additional $4 per month.

Large commercial and industrial customers will pay an additional $2.50 per block of electricity and will have access to a greater variety of energy sources, including animal wastes and small hydroelectric plants. The rate premiums are meant to cover the higher costs of producing renewable electricity, but similar rate premiums in other states have proved insufficient.

Nearly every proposed source of renewable energy has its detractors, since every source of energy carries some environmental costs. The environmental group, Appalachian Voices, objected to the burning of biomass, for example, on the grounds that it produces air emissions.

“The problem is that everybody wants solar or wind power, but we dont have any,” said Karen King of Advanced Energy. Currently, North Carolina has only a couple of solar power plants and no wind power connected to the grid.

Dan Lieberman of the Center for Resource Solutions, a San Francisco-based nonprofit that certifies renewable energy programs, warns that the program will require massive marketing to be successful. “The product isnt going to sell itself,” he said.