Sen. Jay Rockefeller (D-W.Va.) on Tuesday said Democrats on the Senate Appropriations Committee who have supported his effort to delay EPA climate regulations will not do so on the panel.

Three Democrats on the committee — Ben Nelson (Neb.), Tim Johnson (S.D.) and Byron Dorgan (N.D.) — have co-sponsored Rockefeller’s effort to delay EPA climate-change regulations for two years in order to give Congress more time to deal with the issue.
 
But Rockefeller on Tuesday said that “several people on that committee who are sponsors of that bill have told me that they can’t support it in that committee.”
 

A group of powerful industry trade associations is urging House and Senate appropriators to delay looming Environmental Protection Agency climate change rules that the groups contend will harm the economy and block job creation.

Joint letters Tuesday from two dozen groups — including the U.S. Chamber of Commerce, the American Petroleum Institute, the National Mining Association and the National Association of Manufacturers — argue that “the appropriations process can ensure that the potentially damaging impacts of EPA’s rules are postponed for a two or three year period pending Congressional action.”

The groups oppose rules slated to take effect beginning early next year to limit greenhouse-gas (GHG) emissions from power plants and other large stationary sources, and the letters express concern that burdensome regulations could eventually apply to a large swath of the economy.

“There is the very real prospect that investments by businesses across the entire economy — the investments that will drive economic recovery and job creation — will be delayed, curtailed or, even worse, cancelled,” state the letters, obtained by The Hill.

Sen. Dianne Feinstein (D-Calif.) said the spending bill will re-impose drilling bans off the Pacific Coast that lapsed in 2008.

The amendment by Sen. Bill Nelson (D-Fla.) would have denied the five biggest oil-and-gas companies a manufacturing tax credit.

White House seeks extra cash for Interior drilling reforms

The White House on Monday sent lawmakers an amendment to the Interior Department budget request that would boost funds for offshore oil-and-gas drilling oversight.

The biggest ticket item in the request is an extra $66 million in fiscal year 2011 cash for the overhaul and strengthening of Interior’s offshore drilling agency, now called the Bureau of Ocean Energy Management, Regulation and Enforcement.

“The majority of the additional resources would be used to strengthen core programs within BOEMRE to address safety and environmental concerns highlighted by the Deepwater Horizon oil spill in the Gulf of Mexico. The additional resources would also be used to address known deficiencies in Federal mineral revenue collection activities, including those raised in a recent Government Accountability Office review, and establish an investigation and review unit within the agency,” the request states.

Costs are offset with higher fees on industry

The plan would not require new discretionary spending, according to the White House, because it would be offset with higher inspection fees for oil-and-gas operations, canceling some unneeded prior-year balances, and redirecting $50 million in oil-and-gas revenues that would otherwise go to an ultra-deepwater drilling and unconventional natural gas research program.

Critics have long called that program – created in a 2005 energy law – a pointless subsidy for research that the industry has plenty of incentive to undertake on its own anyway.

Justice Dept. readies civil suit over BP spill

The Wall Street Journal reports:

“The U.S. Justice Department said Monday that it expects to file a civil suit in relation to the Deepwater Horizon disaster, asking the court handling hundreds of private cases to give government and state plaintiffs special consideration,” their piece states.

“In a court filing, the department said the U.S. government had ‘potential civil claims arising from the spill,’ citing several statutes under which the federal government could bring suits and claim damages, including the Clean Water Act and the Oil Pollution Act.”

The department also has an ongoing criminal probe related to the disaster.

Greens plan ‘all out’ fight against amendment to scuttle EPA climate change rules

As we noted Monday, Republicans are planning to offer an amendment in the Appropriations Committee Thursday that would block EPA’s looming greenhouse gas rules. The committee has several Democrats that are friendly to the idea.

But environmental groups are mounting a frenzied lobbying push – think letters, phone calls and more – to preserve EPA’s ability to limit heat-trapping emissions, advocates said Monday night. The effort is “all out,” according to Bill Snape, senior counsel with the Center for Biological Diversity. Here’s their pitch:

“No matter how industry spins it, rejecting EPA's ability to protect clean air from greenhouse pollutants goes against clear public opinion, Supreme Court precedent and the legislative history of the Clean Air Act itself,” Snape said Monday.

Drilling amendments in the works, too

The climate showdown is expected when the committee marks up the annual Interior Department and EPA spending bill.

Something else to look for: multiple amendments from both parties to either solidify or relax limits on offshore oil and gas drilling.

Sen. Dianne Feinstein (D-Calif.) has noted interest in banning drilling along the West Coast (which isn’t really eyed for new federal leasing anyway). Sources point out it would be a nice vote for Sen. Patty Murray (D-Wash.) to take in her tough reelection race. On the other side, Sen. Mary Landrieu (D-La.) wants to ensure drilling occurs at least in shallow waters in the Gulf of Mexico, where permitting has slowed to a crawl as Interior implements new safety requirements. Landrieu also opposes the Obama administration’s temporary freeze on new deepwater drilling.

Upton the favorite to replace Barton on energy committee



House Energy and Commerce Committee ranking member Joe Barton (R-Texas) may still be vying for another Congress as top Republican on the panel despite being term limited. But sources close to the thinking of House Republican leaders say Barton's much highlighted (and maligned) apology to BP at a hearing in June put an end to any chance they would allow him to have a waiver from term limits and stay on in his leadership role for another two years.

Rep. Fred Upton (R-Mich.) is widely considered to be the favorite to replace him. "Bet a lot on Upton," one GOP strategist told E2. However, the strategist said that, despite rumors to the contrary, Upton has not already hired a staff director to handle his presumed future leadership role. Rep. Greg Walden (R-Ore.) is a favorite of Minority Leader John Boehner's (R-Ohio) – who would likely be House Speaker if the GOP reclaims the chamber – and may be a dark horse candidate to lead the panel. But it is unlikely he would have Walden (who is currently 14th in seniority on the panel) jump in front of Upton, who is third behind only Barton and Rep. Ralph Hall (R-Texas) in seniority.

California senators seek federal pipeline inspection after deadly blast

Feinstein and California colleague Sen. Barbara Boxer (D) on Monday asked the federal Pipeline and Hazardous Materials Safety Administration to order inspections of federally regulated interstate natural gas pipelines throughout their state.

Priority would be on pipelines near residential areas, following a fatal Sept. 9 gas explosion in San Bruno, Calif., that killed at least four. The California Public Utilities Commission has already ordered Pacific Gas & Electric to begin inspecting its state-regulated intrastate natural gas pipelines.

On tap Tuesday: Push for renewable mandate ramps up

The American Wind Energy Association is rolling out new ads in support of a nationwide renewable power mandate that has stalled on Capitol Hill, as we reported Monday. But that’s just one part of a multi-group campaign to prod Senate lawmakers into taking up “clean” energy legislation as the 111th Congress winds down.

Several green business groups will roll out a report Tuesday alleging that Senate inaction to date is costing jobs in a big way. The groups issuing the report are: American Businesses for Clean Energy, the Small Business Majority, the Main Street Alliance, and We Can Lead.

Report claims almost 2 million jobs left on the table

“In the less than two-month period since the U.S. Senate failed to act on a comprehensive climate and energy bill, the U.S. has fallen more than $11 billion behind China and other nations in clean energy investments. The United States is now slipping behind the rest of the world at the rate of $260 million a day in job-creating investments,” the report alleges.

It also claims that, “The U.S. Senate’s failure to act on climate and energy legislation cost the United States 1.9 million jobs” and “Nearly 600,000 of the unrealized jobs were lost where they are now needed most — the 10 states with unemployment rates over 10 percent: Nevada; California; Rhode Island; Florida; South Carolina; Mississippi; Oregon; Indiana; Ohio; and Illinois.”

Effects of Gulf spill not as bad as initially feared

The New York Times reports that while the jury remains out, there are signs that the most catastrophic predictions about the effects of the oil spill aren’t coming to pass.

“Yet as the weeks pass, evidence is increasing that through a combination of luck (a fortunate shift in ocean currents that kept much of the oil away from shore) and ecological circumstance (the relatively warm waters that increased the breakdown rate of the oil), the gulf region appears to have escaped the direst predictions of the spring,” their piece states.

An amendment to keep the EPA from implementing new regulations could gain traction on the Senate Appropriations Committee.

Sen. Richard Burr (R-N.C.) said Monday he has not decided whether to seek the top GOP slot on the Energy and Natural Resources Committee that will open if ranking member Sen. Lisa Murkowski (R-Alaska) does not return.

Murkowski stunningly lost her GOP primary to Tea Party favorite Joe Miller but is mulling a write-in candidacy.

Based on seniority, Burr is next in line to be ranking member — or chairman if Republicans take the Senate — of the panel that oversees federal policy on oil drilling, mining, renewable energy and other matters. But he would have to give up his top slot on the Veterans Affairs panel.

The Energy Department on Monday proposed 27 new penalties worth more than $3.5 million for companies failing to enforce energy efficiency requirements for appliances.

The proposed fines filed against the companies — including General Electric, Daewoo International Corp. and Sanyo Electric Co. — may be reduced if they quickly comply with certification requirements regarding federal energy efficiency and water conservation standards.

Companies must address claims within 30 days or the department will file action with either the federal district court or an administrative law judge.

DOE General Counsel Scott Blake Harris said it was an “unprecedented number of cases” dealing with the department’s conservation standards.

The 27 companies include manufacturers, importers and private labelers of appliance, plumbing and lighting products.

Departmental officials touted Monday that its appliance standards enforcement effort over the past year has removed 66 products from the market that failed to meet its standards, and initiated 75 investigations and actions that include Monday’s announced new penalties.

The wind industry’s main trade group is revving up its push for legislation creating a national renewable-electricity standard (RES) in the waning weeks of the 111th Congress.

The American Wind Energy Association (AWEA) will begin airing 30-second TV spots in Washington, D.C., cable markets Tuesday touting proposals that would require many utilities to supply escalating amounts of power from renewable sources in coming years.

“America needs clean energy and America needs jobs. Wind power can deliver on both but only if the Senate encourages investment by passing a strong RES,” the ads state. The ads will run for a week, and the campaign also features online spots, according to AWEA, which has timed the ads to greet the return of senators from the summer recess.