Senate, White House Discuss Path Forward on Energy and Climate Legislation

Following the President's primetime Oval Office address in mid-June on the Gulf oil spill, Senate Democratic leaders and the White House are trying to reach a consensus on a path forward for Senate consideration of a comprehensive energy and climate change bill.  While Senate Majority Leader Harry Reid (D-Nev.) continues to meet with members of the Democratic caucus to craft a package that could garner 60 votes, a White House meeting with a bipartisan group of senators to discuss the issue was cancelled and rescheduled.  President Obama's participation might provide momentum for the Senate to tackle the issue this year, although the president has not been specific about what he would like to see in the final product. Senate Democrats are preparing to assemble a package slated for floor debate in July.  Senators have been meeting with Reid to pitch their own energy and climate change bills and to make their positions known on the best way to proceed.  The meetings have not yet resulted in a clear consensus as to whether to place a mandatory, economy-wide cap on greenhouse gas emissions and to price carbon.  Liberal members of the caucus are holding out for a bill that would price carbon in a number of key sectors, whereas more moderate members are pushing for a scaled-down bill that would only cap utility sector emissions or energy-only legislation, a path most Republican senators support.  There also appears to be consensus on addressing the oil spill crisis in the Gulf. Some of the options on the table include the American Power Act, proposed by Senators John Kerry (D-Mass.) and Joe Lieberman (I-Conn.), which would establish a cap-and-trade system for greenhouse gas emissions and expand offshore drilling; Senator Jeff Bingaman's (D-N.M.) energy bill that includes a renewable electricity standard, but no cap on greenhouse gas emissions; an alternative "cap-and-dividend" approach introduced by Senators Maria Cantwell (D-Wash.) and Susan Collins (R-Maine) that would require energy producers to pay for "carbon shares" and distribute three-quarters of the revenue to consumers and the rest to clean energy research and development; and Senator Richard Lugar's (R-Ind.) bill to promote energy efficiency without capping greenhouse gas emissions. Time is not on the Democrats' side even if they are able to reach a consensus on a package that could get 60 votes.  There are few remaining working weeks before the mid-term elections, and the Senate is already planning to set aside about two weeks in July to consider the nomination of Elena Kagen for the U.S. Supreme Court.  Senators may also face tough votes on amendments that range from stripping the U.S. Environmental Protection Agency's authority to regulate greenhouse gas emissions from stationary sources, to broader economy-wide cap-and-trade schemes.  AGC is advocating for energy and climate change policies that would not adversely affect the market for U.S. construction and is working with senators on both sides of aisle to protect the industry's interests. AGC outlined its environmental priorities in its Building a Green Future report. For more information, contact Karen Lapsevic at 202-547-4733 or lapsevick@agc.org.