ML Strategies Weekly Energy And Environment Update – Week Of September 9, 2013

The House and Senate chambers, quiet for over a month, resumed regular business today. ML Strategies has produced a post-Labor Day outlook. Congress has several issues to address now that it is back in session, including the appropriations process, the debt ceiling, the extenders package, and the grand bargain. Energy and environment issues, such as the Keystone XL pipeline and the Renewable Fuel Standard, may crop up as riders to these topics. The nine major energy issues of note are Shaheen-Portman, the National Helium Reserve, the consideration of the proposed liquefied natural gas export terminals, the Keystone XL pipeline, the future of the Renewable Fuel Standard, the Interior Department's fracking rule, President Obama's climate action strategy, Environmental Protection Agency regulations, and the President's Power Africa initiative. For a broader overview of the congressional to-do list, please see our ML Strategies Post-Labor Day Preview.

The big energy-related push surrounds Shaheen-Portman. The Senate was set to consider S. 1392 tomorrow, but the debate surrounding Syria pushed the timeline back. Should the Senate approve the energy-efficiency legislation, the House will now consider its version, H.R. 1616, which was introduced by Representatives David McKinley (R-WV) and Peter Welch (D-VT). Four additional energy and environment bills have been gaining buzz on the Hill. On the House side, Majority Leader Eric Cantor (R-VA) announced that the chamber will address H.R. 2728, Protecting States' Rights to Promote American Energy Security Act, in the next two months. The bill, introduced by Representative Bill Flores (R-TX) and passed by the House Natural Resources Committee in July, would prevent the Department of the Interior from enforcing fracking regulations in states that already have requirements. In addition, H.R. 1963, the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act, is expected to move. This bill, introduced by Representative Steve Daines (R-MT), would allow irrigation districts and water user associations to install hydropower projects at Bureau of Reclamation facilities and collect revenue from the projects. On the Senate side, the Energy and Natural Resources Committee is currently considering S. 1240 and S. 1419. S. 1240, the Nuclear Waste Administration Act, focuses on nuclear waste while S. 1419, the Marine and Hydrokinetic Renewable Energy Act of 2013, streamlines marine and hydrokinetic pilot project permits.

The Senate Energy and Natural Resources Committee is expected to consider the nomination of Ron Binz to serve as Federal Energy Regulatory Commission Chairman on September 17.

CONGRESS

Menendez on Keystone Hearings

Senate Foreign Relations Chairman Robert Menendez said in an August 29 interview that the committee will hold hearings on the Keystone XL pipeline. The hearings, which have not been scheduled, will most likely feature officials conducting the impact statements. He commented that he hopes the hearings will dissuade supporters of the project.

Hoeven Not Likely to Link Keystone, Syria

Don Canton, spokesman for Senator John Hoeven (R-ND), commented September 3 that the Senator will most likely not introduce a rider involving the Keystone XL pipeline to a bill about Syria. However, the issue with Syria highlights the need for energy independence.

CRS Report on Energy Tax Policy

The Congressional Research Service, in its September 4 report Energy Tax Policy: Issues in the 113th Congress, outlined the current status of U.S. energy tax policy as well as potential avenues Congress can explore this session including expiring provisions, tax reform, and selected pieces of legislation. Of particular interest, page 21 of the report outlines expiring energy tax provisions. The CRS report is attached.

Vitter Letter to Wellinghoff

Senate Environment and Public Works Ranking Member David Vitter (R-LA), in a September 5 letter to Federal Energy Regulatory Commission Chairman Jon Wellinghoff, said he believes the commission and the Environmental Protection Agency have colluded on new power grid environmental regulations. He asked Chairman Wellinghoff if any officials have pressured him to downplay impacts from new and pending power plant emissions rules on electric reliability.

Wyden to ND

Senate Energy and Natural Resources Chairman Ron Wyden (D-OR) visited North Dakota on September 6 and 7, making several stops with...