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Wednesday, May 12, 2010

Coal lobby dislikes new climate bill, but big question is whether the bill is going anywhere

The new Senate climate bill being officially unveiled today would not end the battle between coal and natural gas for the country's energy future. The bill would provide coal with help to develop carbon- capture and -sequestration technologies, but also give "advantages to the natural gas industry, including an incentive for some power plants that use coal to switch to natural gas," Anne C. Mulkern, Katie Howell and Josh Voorhees of Environment & Energy Daily report.

The bill also would provide free carbon emissions permits for gas distribution companies that serve consumers and "a program to encourage companies with large vehicle fleets to switch to liquefied natural gas," E&E reports. While the summary obtained by E&E pledges political devotion to coal, including the headline "Ensuring coal's future" near the top, one trade group classified the bill as problematic. "On balance we believe it hurts us," Carol Raulston, spokeswoman for the National Mining Association, told E&E.

The American Petroleum Institute, the trade group for oil and natural gas companies, declined to take a position on the bill, and said efforts to change the measure may be unnecessary due to its uncertain prospects for passage. "We think perhaps ... it's lost a lot of its momentum," Lou Hayden, API's senior director of federal relations. "This may be a conversation for next year." (Read more, subscription required)

Kerry's and Lieberman's "biggest challenge will be selling the notion that the bill has any chance of passage," Jim Tankersley of the Los Angeles Times reports. "There is no guarantee the bill will even be debated this year and it is unclear whether a massive oil spill in the Gulf of Mexico will hamper the legislation or prompt a more urgent look at U.S. energy and environmental policy," Reuters reports. Democratic co-sponsor Kerry was adamant about the need to pass the bill this year, since November elections are likely to weaken Democrats' power in Congress. "Everyone knows this is Congress's last, best chance to pass comprehensive climate and energy legislation," he told Reuters. If it fails, he added, "Congress will be rendered incapable of solving this issue." (Read more)

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