E2-Wire

As we noted here and here Tuesday, the Obama administration is slated to announce plans to allow expanded offshore oil-and-gas drilling Wednesday.

But amid the expansion, the Interior Department is expected to ensure protections for Alaska’s Bristol Bay, a portion of which was eyed for development under Bush-era leasing plans.

The area is home to big sockeye salmon runs, whales and other wildlife that environmentalists feared would be imperiled if oil-and-gas development occured.

President Obama's remarks at the Andrews Naval Air Facility Wednesday morning will focus on "energy security," the White House said Tuesday evening. Environmental and energy industry lobbyists expect Obama to discuss the administration's long-awaited offshore oil-and-gas policy.

Obama has signaled support for broader offshore drilling as he woos backing from Republicans and centrist Democrats for a wider energy and climate policy shift that includes measures to limit greenhouse gas emissions.

Industry and environmental group sources said Tuesday that they expect the administration's drilling policy to include oil-and-gas leasing off the coast of southeastern states -- areas that until 2008 were covered by longstanding drilling bans.

A major environmental group on Tuesday called for phasing out tax subsidies and other federal policies that benefit corn-based ethanol, prompting immediate criticism from the industry.

The National Wildlife Federation issued a report that recommends policies to bolster “sustainable” bio-energy sources, and current-generation ethanol doesn’t fit into that category in NWF’s view.

“Successful, sustainable bioenergy projects have started to take root in the United States, yet are not being adequately supported by current federal policies,” said NWF’s Julie Sibbing, the report’s co-author. “This report underscores the urgent need for the U.S. Congress and Obama Administration to enact solutions that support domestic plant-based energy sources that create jobs, enhance national security, protect wildlife and curb global warming pollution.”

Days after congressional auditors knocked the Energy Department for lax oversight of the popular Energy Star program, DoE announced Monday it is forcing AeroSys, Inc. to stop distributing an air conditioner and a heat pump because the products use more energy than allowed under federal efficiency standards.

The action marks the first time that DoE has told a company it must halt the distribution of products that fail to meet minimum conservation standards, DoE said.

“This action is designed to send a clear message to all manufacturers – this administration takes energy efficiency seriously and we will act aggressively to remove any products from the market that are violating national appliance standards,” said DoE General Counsel Scott Blake Harris in a statement.

A coalition of electric utilities quickly bashed EPA’s plan announced Tuesday to scuttle a Clean Air Act rule finalized at the tail end of the Bush administration.

Here’s Scott Segal, a lobbyist with Bracewell & Giuliani who heads the Electric Reliability Coordinating Council:

“When the original aggregation rule was finalized, it was intended to streamline the new source review (NSR) program, reduce red tape, and make the program more effective by creating clearer guidelines. At the time, the EPA stated that it expected no adverse consequences for air quality,” he said in a statement Tuesday afternoon.

The Obama administration’s attack on former President George W. Bush’s environmental policy decisions continues.

The U.S. EPA on Tuesday proposed to scuttle a Clean Air Act rule – issued at the tail end of the Bush era – that EPA now argues will give industrial polluters too much leeway to avoid emissions controls.

The rule in question is part of the New Source Review (NSR) program, which has long been the stuff of battles between utilities, environmental groups and regulators.

Sen. Richard Lugar (R-Ind.) is urging colleagues to endorse a broad energy bill he’s crafting with a sales pitch that focuses on the art of the possible.

Lugar released a detailed outline of a plan he first announced earlier this month. Lugar said the measure would cut oil imports by over two-thirds by 2030, and cut greenhouse gas emissions by 25 percent by the same date.

It focuses on continued vehicle efficiency gains, rebates for purchasing highly efficient vehicles (offset by fees on gas-guzzlers), building efficiency standards, expanded nuclear plant loan guarantees, incentives to mothball coal plants and a suite of other measures. But it steers clear of mandatory emissions limits.

The Interior Department is expected to announce long-awaited plans on offshore oil-and-gas drilling “very soon,” according to an administration court filing Monday.**

Interior Secretary Ken Salazar recently said he hoped to make an announcement on offshore drilling policy by the end of March, which is Wednesday.

Interior is reviewing its 2007-2012 offshore leasing plan to comply with a federal court ruling last year, which found that Interior had botched a key environmental analysis underpinning the plan.

Energy Secretary Steven Chu says there’s no reason to wait around for a "perfect" global warming bill. 

Back home in South Carolina, Republican Sen. Lindsey Graham is doing what he often does in Washington, defend his effort to fashion a compromise climate change bill.

Graham told a home state audience that it would be much worse if EPA acted on its own because its greenhouse gas regulations could apply to small businesses, apartment complexes, small farms and even churches. EPA officials deny they have any intention of regulating small businesses and the like for greenhouse gas emissions, and are writing a “tailoring” rule to limit compliance to large emitters.

Graham has come under fire back home for his work on climate change and was stressing during his speech why it is better for the economy if Congress acts instead of EPA.

“Anybody that produces carbon, from a small farmer to a church, is potentially affected,” Graham said of the EPA rules. “And I believe the way to regulate carbon -- and it should be regulated, by the way -- is through Congress, not through the EPA.”

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