Select each of the following to read a comparison between the
House and Senate versions, the Administration's position and The
Heritage Foundation's recommendations:
Climate Title X: National
Climate Change Policy
Title XI: National GHG
Database
Title XIII: Climate Change Science
and Technology
Title II/ Subtitle E: Renewable
Portfolio Standard (RPS)
Title II: Electricity/Subtitles A,
B, C, and D.
Title VIII/Subtitle A, Sec. 820:
Renewable Content of Motor Vehicle Fuel (Ethanol)
Arctic National Wildlife Refuge
(ANWR)
Climate Title X: National Climate Change
Policy
House Position: No Provision
Senate Position: Attributes global
warming to human activities. Calls for reducing GHGs, creating
international projects, such as carbon sequestration & tradable
credits, and U.S. participation in a binding treaty.
Replaces Byrd-Hagel Resolution on a binding climate change
treaty.
Creates new climate offices & mandates organizational
changes in current climate programs at a cost of about $4.8 billion
(on top of existing climate programs).
Administration's Position: Sec. of
Energy letter to Chairman Tauzin and House & Senate conferees
states that climate titles are inconsistent with Administration
plan, yet notes it would support legislation consistent with
plan.
What legislative provisions do Administration officials consider
consistent with its plan?
Heritage Foundation: "Disguised"
carbon forcing mechanism -- would do more than stabilize GHG
concentrations, would require immediate & drastic reductions in
current levels of GHGs causing severe economic consequences.
Distorts current state of knowledge on climate science, or
climate predictive ability.
Findings are unbalanced & misleading.
Undermines Bryd-Hagel.
Adds layers to an already fragmented federal bureaucracy on
climate change costing about $4.8 billion (over 5 years) on top of
billions already spent on climate change programs.
Title XI: National GHG Database
House Position: No provision.
Senate Position: Establishes new
"voluntary" GHG emissions reporting measure.
Makes program mandatory within 5 years if registry is less than
60% of all U. S. GHG emissions.
Imposes reporting requirements on direct and indirect emissions
to DOE & EPA, or face fines up to $25,000.
Administration Position: President has
directed DOE (in consultation with other depts. & agencies) to
improve the existing Voluntary Reporting of GHGs program (sec.
1605(b)) of the '92 Energy Policy Act.
Secretary of Energy letter states that climate titles are
inconsistent with Administration plan yet notes it would support
legislation consistent with plan.
Does the Administration consider a delayed, yet mandated,
reporting requirement consistent with its plan?
Heritage Position: Represents a
"domestic" form of "fatally flawed" Kyoto Treaty.
Slippery slope to mandatory reporting of carbon emissions.
Small entities (homeowners & commercial facilities) are not
likely to report & thus trigger the mandatory reporting.
Provision is redundant - the President has directed that the
existing voluntary program (that is working) be improved.
Creates regulatory uncertainty that carbon emissions will be
regulated in future thereby impeding investments in energy
sector.
Businesses will pass-on additional costs of reporting to
consumers.
Title XIII: Climate Change Science and
Technology
House Position: No Provision.
Senate Position: Authorizes billions
for countless climate-related research and development activities:
$755 million over 5 years for DOE climate change research programs;
$240 million over same years to Department of Agriculture for
carbon sequestration research, $900 million over 9 years for tech.
deployment program; and nearly $1.4 billion over 4 years for
coastal ocean observation systems, to name only a few.
Administration Position: The
President's FY '03 budget requests $40 million for his newly
established U.S. Climate Change Research Initiative (CCRI) and $1.7
billion for the U.S. Global Change Research Program (USGCRP) - this
is on top of other climate programs already funded by the fed
govt.
Sec. of Energy letter states that climate titles are
inconsistent with Administration plan yet notes it would support
legislation consistent with plan.
Does the Administration consider additional spending, beyond the
President's request consistent with his plan?
Heritage Position: The U.S. has spent
some $45 billion on climate change research over the past 10
years
The scientific facts gathered over this time do not support
catastrophic human-made warming as a basis for drastic carbon
dioxide (CO2) emission cuts.
Evidence shows that under Kyoto, average temperature will rise
about 1degree Centigrade by 2053. Without Kyoto that rise will
occur in 2050. The difference between these trends is a
statistically insignificant six-hundredths of a degree.
Given that the best scientific evidence says the warming likely
to occur over the next several decades is small, and given the weak
economy, excessive spending on climate change programs is
irresponsible -- plays into the hands of extremists and
alarmists.
Title
II/Subtitle E: Renewable Portfolio Standard (RPS)
House Position: No federal
mandate.
Senate Position: Mandates that retail
electric suppliers obtain 10% of their power production in 2020
from "select" renewable energy resources. (Minimum % is 1% in 2005
increasing 1.2% every 2 years to 10%).
Defines "eligible" renewables as only solar, wind, biomass,
geothermal, and "incremental" hydro.
Allows electric suppliers to meet RPS in one of three ways: 1)
producing mandated % with eligible renewables; 2) purchasing
"tradable credits" from entities that produced elec. from eligible
renewables that are willing to sell; 3) buy credits from DOE (which
doesn't produce energy) at 1.5 cents per credit kilowatt
hour/kWh.
Excludes municipal and rural electric cooperatives from federal
mandate.
Includes a provision sponsored by Senator Kennedy that requires
that a two-year study by the National Academy of Sciences be done
before the Nantucket Sound windmill project can go forward.
Administration Position: Supports
increased use of renewables.
Opposes federal RPS mandate.
Supports leaving RPSs to the states.
Supports 3-year extension of renewable energy production tax
credit.
Supports 2-year. extension of credit enacted under the Job
Creation and Worker Assistance Act of 2002.
Heritage Position: Federal RPS mandate
is costly and irresponsible.
Renewable energy accounted for just 9% of U.S. electricity
generation in 2000 & only 2% if "favored" renewables (solar,
wind, geothermal, & biomass) are counted -- these non-hydro
renewables are projected to increase to a mere 3% of total
generation & electricity sales in 2020.
Since 1978, DOE has spent over $11 billion of taxpayer money on
research and development on renewable energy.
Renewables also benefit from taxpayer subsidies through tax
credits - these subsidies represented over $1 billion in federal
government outlays in FY 99 alone.
Despite these liberal taxpayer subsidies, renewable energy
sources have failed to gain a significant market share - they have
failed to do so b/c they are uneconomic.
Not only are wind and solar more costly on a per unit basis,
they have low capacity, are site constrained (make a large
"footprint,"), and are intermittent.
Back-up capacity is need to compensate for this unreliability
adding costs to production that will be passed on to consumers.
The cost of transmitting electricity produced by renewables is
often higher than fossil fuels b/c the best renewables are far from
urban areas.
While consumers are paying higher utility bills, developers are
enriching themselves with lucrative tax shelter schemes. Such
taxpayer subsidies don't benefit consumers and don't enhance energy
security.
It is clearly a double standard to impose a federal RPS mandate
on the states, yet slip a provision in the bill to "delay" a wind
farm project off of Nantucket Sound. If renewable energy is being
forced on everyone else, Nantucket Sound should not be given pref.
treatment with a statutory "exclusion."
Title II: Electricity/Subtitles A, B,
C, and D.
House Position: No provision, however,
Chairman Barton supports de-regulation of the wholesale electricity
market and has been and is engaged in crafting an electricity
title. In fact, he is the "lead" on this issue in the House.
Senate Position: Repeals the Public
Utility Holding Company Act (PUHCA) and gives the Fed. Energy
Regulatory Commission (FERC) and state utility commissions access
to holding co. books and records.
Makes repeal of important PURPA (Public Utility Holding Company
Holding Act) provisions conditional on FERC finding that
competition in electricity market exists.
Requires state regulatory authorities to consider requiring
electric utilities to offer real-time pricing and time-of-use
metering to customers at their request.
Requires electric utilities to provide distributed generation
and other sources access to the local distribution grid.
Expands FERC's merger review authority.
Gives FERC new authority to regulate in connection with its
review of mergers and other asset transfers, to oversee an electric
reliability organization, and to issue mandatory reliability
standards.
Creates an Office of Consumer Advocacy at DOJ.
Increases consumer protection role of the Fed. Trade Comm.
(FTC).
Administration Position: Supports open
access for all generators to wholesale electricity grid, mandatory
and enforceable reliability rules, repeal of PUHCA, and reform of
PURPA.
"Pleased" with provisions that would strengthen FERC's authority
to review mergers and prohibit abuses of market power.
Supports provisions to protect consumers and strengthen FERC's
ability to ensure "just and reasonable" rates.
Proposes tougher criminal penalties for violating the Fed. Power
Act.
Supports "last-resort" federal site authority for high-priority
transmission lines.
Supports Senate's provision to clarify tax implications from
sale or transfer of transmission assets to companies that will
operate under a RTO (Regional Transmission Org.).
Supports efforts to eliminate provision that jeopardize
tax-exempt status of electricity coops when they offer
nondiscrimination access to their transmission system.
Heritage Position: Senate version
simply "re-regulates" - not "de-regulates" electricity.
Title II expands FERC's authority and authorizes new reg.
programs for DOE, and FTC, and other agencies.
It fails to provide the incentive structure needed to maintain
and expand the nation's electricity infrastructure.
The bill makes repeal of PURPA conditional when repeal
(prospectively) of the mandatory provision would de-regulate the
market rather than simply re-direct this anti-competitive
requirement.
The bill also fails to limit taxpayer subsidies and preferential
treatment of municipal utilities and rural coops - nor does it
eliminate the unfair competitive advantages given to federally
owned utilities that are long over-due for privatization.
De-regulating any sector, including the electricity market,
doesn't happen frequently on the Hill. Conferees can use this
opportunity to do it right by de-regulating, not simply
re-regulating the electricity market. The Senate bill fails to
satisfy this test.
Title VIII /Subtitle A, Sec. 820:
Renewable Content of Motor Vehicle Fuel (Ethanol)
House Position: No Provision.
Senate Position: Increases federal
subsidies for fuel ethanol.
Nearly triples ethanol consumption by 2012.
Includes "safe harbor" provision that protects manufactures of
ethanol from liability from adverse effects on the public.
Administration Position: Supports
Senate ethanol mandate.
Heritage Position: Amounts to a
"corporate welfare" scheme that benefits a small number of
companies that control the ethanol market.
Imposes a new "tax" on consumers that would increase the price
of gasoline.
Reduces highway trust fund revenues by $7 billion over the next
9 years depriving states of funds for new roads and other critical
infrastructure projects.
Given that the proper infrastructure currently does not exist to
produce, store, and blend more ethanol, the use of ethanol-blended
fuel is not cost-effective for the entire nation.
Despite claims that ethanol is environmentally "friendly", it is
not - it could cause an increase in NOX (a main contributor to
smog) and increase the likelihood of toxins in gasoline, such as
benzene, to seep into groundwater.
Clearly defines winners (corn growers) and losers (American
consumers).
Mandating the use of more fuel ethanol is costly, irresponsible,
and inconsistent with a national energy plan whose goal is to
enhance the nation's energy security.
Arctic National
Wildlife Refuge (ANWR)
House Position: Authorizes exploration
in a small sliver of ANWR to reduce U.S. dependence on foreign oil
and enhance the nation's energy security.
Senate Position: No provision. Senate
majority leadership denied an "up or down" vote on ANWR by
manipulating the Senate rules.
Administration Position: Supports
authorizing a small portion of ANWR to responsible oil and natural
gas exploration to enhance the nation's energy security.
Heritage Position: Irresponsible
federal policies and indifference by policymakers to the growing
domestic shortages of oil, not the actions of oil companies, have
made the U.S. more than 50% dependent on foreign oil sources and
subject to price volatility.
The U.S. Geological Survey (USGS) estimates that the Section
1002 area in ANWR could yield up to 16 billion barrels of
oil-roughly equivalent to what the U.S. imports from Saudi Arabia
over 30 years
Opening a mere 2000 acres in ANWR for oil and gas exploration
would leave 99.99% of ANWR's 19 million acres untouched.
Despite claims to the contrary, the 1002 Area is not pristine
habitat - it is a flat, treeless plain that reaches minus 110
degrees with wind-chill in the winter and is infested with
mosquitoes during the summer months.
Opening a mere 2000 acres in ANWR is long overdue and vital to
the nation's energy and national security. It belongs in any
responsible national energy plan.