Lugar set to unveil 'practical' energy plan with Graham’s backing

Sen. Richard Lugar (R-Ind.) will roll out energy legislation Wednesday that aims to reduce oil reliance through conservation and renewable energy programs but steers clear of limits on greenhouse gases.

The bill – which Lugar’s office calls a “practical energy and climate plan” – could become a rallying point for GOP energy efforts, but it is also a blow to Democratic climate change legislation.

Lugar has been viewed as a swing vote on legislation to impose emissions limits, but an aide confirmed he does not support moving ahead with a cap-and-trade plan.

The announcement of a press conference to tout the bill calls it “a main alternative to the divisive cap-and-trade approach.” Sen. Lindsey Graham (R-S.C.) plans to join Lugar in rolling out the bill at an afternoon press conference.

Graham had worked for months on a sweeping climate and energy package with Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.), but withdrew support for the measure before its unveiling last month.

Graham has also said he does not support the Kerry-Lieberman bill because they backed away from plans to expand oil-and-gas drilling in the eastern Gulf of Mexico.

But one energy expert said the Lugar plan will compliment efforts to pass climate change legislation.

“Senator Lugar’s measure contains well-crafted and ambitious performance standards and energy efficiency measures. If implemented with a carbon price these standards would have a transformative effect on U.S. efficiency and emissions,” said Paul Bledsoe of the Bipartisan Policy Center in a statement.

 “Each new serious proposal on energy and climate change from key Senators increases the chances of getting an energy bill with critical climate provisions this year,” he added. 

Lugar’s bill includes tougher vehicle efficiency rules; enhanced building codes; new building retrofit programs; incentives for coal-fired power plants to cease operations by the end of 2018; expanded loan guarantees for nuclear power; new federal support for industrial energy efficiency gains and many other measures.

The plan “prioritizes targeted policies that can bring real money and energy savings while providing flexible frameworks that encourage investment in a more secure energy future,” according to Lugar’s office.

This story was updated at 11:57 a.m.