Energy & Environment Update -April 8, 2013

ENERGY AND CLIMATE DEBATE

Congress returns this week from a two-week recess with the primary focus to be on President Obama's Fiscal Year 2014 budget request. Several hearings will be held this week to examine the president's budget proposal.

CONGRESS

Treasury Responds to Bennet Letter on PTC Guidance

On March 28, Assistant Treasury Secretary for Legislative Affairs Alastair Fitzpayne responded to a letter written by Sen. Michael Bennet (D-CO). The Bennet letter, which was sent on March 4 and was cosigned by 16 senators, urged Treasury to quickly complete guidance on what actions constitute "beginning construction" for purposes of the Section 45 renewable energy production tax credit (PTC) and the Section 48 energy investment tax credit (ITC). The American Taxpayer Relief Act of 2012 (ATRA) modified the two credits by having them apply to projects that have begun construction by the end of 2013, rather than those that have been placed in service by the end of the year. The Department and the IRS are currently working on guidance on the issue.

Vitter, Sessions Letter to EPA

On April 1, Senate Environment and Public Works Ranking Member David Vitter (R-LA) and Sen. Jeff Sessions (R-AL) sent a letter to the Environmental Protection Agency (EPA) on revisions to state implementation plans to control emissions during the startup and shutdown of a plant. After receiving a petition from the Sierra Club, the EPA revised 36 state implementation plans to better comply with the Clean Air Act. One day after the letter was sent the EPA announced it would extend the comment period for the proposed rule from April 11 to May 13.

Draft Coal Ash House Bill

On April 4, the House Energy and Commerce Subcommittee on Energy and the Environment released a discussion draft of the Coal Ash Recycling and Oversight Act of 2013, which would allow states to establish and manage programs regulating the storage of coal ash. Coal ash is currently regulated by the EPA's municipal solid waste program. The draft bill, written by Rep. David McKinley (R-WV), is similar to a bill introduced in the Senate in 2012 and is more moderate than a bill passed by the House in 2011. It will be examined during a subcommittee hearing on April 11.

Senators Write CEQ

On April 4, Sens. John Barrasso (R-WY), Orrin Hatch (R-UT) and James Inhofe (R-OK) wrote White House Council on Environmental Quality (CEQ) Chairwoman Nancy Sudley to urge CEQ not to issue guidance that would require federal agencies to consider the greenhouse gas emissions produced outside the United States by American exports when evaluating the environmental impacts of projects. The three senators argued that requiring agencies to do so would set a precedent that could be used to block future American exports.

Draft EPA Regulation Cost Bill

On April 5, Rep. Ed Whitfield (R-KY) released a draft bill that would stop the Environmental Protection Agency from finalizing new rules that would increase energy costs by more than $1 billion. The draft bill, entitled the Energy Consumers Relief Act, will be the subject of the House Energy and Commerce's Subcommittee on Energy and Power hearing this Friday.

Opposition to McCarthy's Nomination

The Senate Environment and Public Works Committee will host a hearing on April 11 to consider the nomination of current Environmental Protection Agency (EPA) Assistant Administrator for Air and Radiation Gina McCarthy to be EPA Administrator. While she will likely be confirmed, Senate Republicans are expected to question McCarthy on agency transparency, air standards for industrial boilers, greenhouse gas emission standards, hydraulic fracturing, national ambient air quality standards, and sulfur in gasoline. Sen. John Barrasso (R-WY), an Environment and Public Works Committee member, has said he considered placing a hold on the nomination.

Senate to Review DOE Budget

The Senate Energy and Natural Resources Committee will review the proposed Department of Energy FY2014 budget on April 18.

Senate Natural Gas Forums

The Senate Energy and Natural Resources Committee will host three public roundtable forums on specific natural gas issues in May, building upon their general topic hearing in February. On May 16, the committee will review pipeline infrastructure and natural gas use in the transportation sector. On May 21, the committee will examine domestic supply estimates and the costs and benefits of exporting natural gas. On May 23, the committee will look at gas extraction, focusing on industry best practices and environmental concerns.

Bills Introduced

With Congress in recess last week, no bills were introduced.

Upcoming Hearings

The Senate Energy and Natural Resources Committee will host an April 9 hearing to consider the nomination of Ernest Moniz to serve as Secretary of Energy. The same day, the Senate Homeland Security and Governmental Affairs Committee will consider the nomination of Sylvia Burwell to be Director of the Office of Management and Budget. The House Energy and Commerce's Subcommittee on Energy and power will hold a Keystone XL pipeline hearing on April 10. The focus of the hearing will be on H.R. 3, the Northern Route Approval Act. The Senate Environment and Public Works Committee will hold an April 11 hearing to consider the nomination of Gina McCarthy to serve as Administrator of the Environmental Protection Agency (EPA). The same day, the House Energy and Commerce Subcommittee on Environment and the Economy will review a draft bill on coal ash. The draft is identical to S. 3512 from the 112th Congress; that bill was a compromise to H.R. 2273, the Coal Residuals Reuse and Management Act. Also on April 11, the House Appropriations Subcommittee on Energy and Water will hold a hearing on nuclear waste programs with testimony from Assistant Energy Secretary Pete Lyons, former Blue Ribbon Commission member Susan Eisenhower, and Rodney Ewing of the Nuclear Waste Technical Review Board. On April 12, the House Energy and Commerce Subcommittee on Energy and Power will hold a hearing on a draft bill, entitled the Energy Consumers Relief Act, which would prevent the Environmental Protection Energy from issuing a regulation that would cost more than $1 billion in energy costs. That same day, the House Appropriations Subcommittee on Military Construction will hold a hearing on the Defense Department's installations, energy, and environment programs. ADMINISTRATION

Climate Change Action Does Not Hurt Economy

On April 3, President Obama urged Democrats to show that work on climate change issues does not lead to economic downturns. Speaking at a fundraiser in San Francisco, the President advocated for investment in clean energy, saying investment will spur industry and job creation in these tough economic times. He called the choice between the economy and the environment a false choice.

Alaska Working Group Recommendations

On April 4, the Interagency Working Group on Coordination of Domestic Energy Development and Permitting in Alaska, led by Interior Department Deputy Secretary David Hayes, sent a report to President Obama that urges increased coordination to deal with environmental and energy issues in the Arctic. The group recommended a comprehensive approach to oil and gas permitting and said the White House should develop a new national strategy for the Arctic.

White House Budget

On April 10, the White House is scheduled to release its...

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