Inspiring People. Shaping the Future.

WASHINGTON, DC1101 New York Avenue, NWSuite 901Washington, DC 20005 USAContact: Tyson BarkerE-mail: tyson.barker@bertelsmann-

foundation.orgTel: (+1) 202.384.1993www.bertelsmann-foundation.org

BRUSSELSRésidence PalaceRue de la Loi 1551040 Brussels, BelgiumContact: Thomas FischerE-mail: thomas.fischer@bertelsmann-

stiftung.deTel: (+32 2) 280.2830www.bertelsmann-stiftung.de/brussels

©Copyright 2010, Bertelsmann Foundation. All rights reserved.

The Brussels Connection to Capitol Hill

CapitolWire

US President Barack Obama’s efforts to negotiate the Copenhagen Accord at

the United Nations Framework Convention on Climate Change (UNFCCC) summit

last December were perceived in the US as laudable for getting the world’s

major emitters to agree that emissions reductions are necessary to mitigate

the adverse effects of climate change. But his commitment to implementing the

terms of the agreement has thus far amounted to nothing more than wishful

thinking. Sen. John McCain (Republican-Arizona) described the accord shortly after

it was announced as “a nothing burger”. He later warned against expecting much

action to back up the commitment. Sen. McCain’s political instinct was correct,

and the future appears unlikely to herald any change.

CapitolWire is a joint publication of the Bertelsmann Foundation offices in Washington, DC and Brussels. It connects the European Parliament

to Congressional policy and politics, and contributes to a common trans-Atlantic political culture. CapitolWire is an occasional publication that

highlights issues, legislation and policymakers relevant to the European Parliament’s legislative cycle. This publication looks at the Congress from

the point of view of European Parliament staffers and offers timely operational analysis.

Contact: Tyson BarkerE-mail: tyson.barker@bertelsmann- foundation.orgTel: (+1) 202.384.1993www.bertelsmann-foundation.org

Contact: Thomas FischerE-mail: thomas.fischer@bertelsmann- stiftung.deTel: (+32 2) 280.2830www.bertelsmann-stiftung.de/brussels

KEY POINTS

• The EU has had an Emissions Trading System in place since 2005, while only the US House of Representatives has passed cap-and-trade legislation.

• A fractious Senate and approaching mid-term elections make it politically impossible for the US Congress to act on climate change this year.

• The US Environmental Protection Agency (EPA) can regulate CO2 emissions through “endangerment findings”. States will also devise schemes to reduce CO2 emissions.

• The Department of Energy (DOE) is enacting energy-efficient and clean-technology programs through construction and vehicle initiatives, and alternative-energy infrastructure.

ABOUT THE BERTELSMANN FOUNDATION: The Bertelsmann Foundation is a private, nonpartisan operating foundation, working to promote and strengthen trans-Atlantic cooperation. Serving as a platform for open dialogue among key stakeholders, the Foundation develops practical policy

recommendations on issues central to successful development of both sides of the ocean.

©Copyright 2010, Bertelsmann Foundation. All rights reserved.

US Climate-Change Legislation: Up In Smoke?

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Inspiring People. Shaping the Future.

WASHINGTON, DC1101 New York Avenue, NWSuite 901Washington, DC 20005 USAContact: Tyson BarkerE-mail: tyson.barker@bertelsmann-

foundation.orgTel: (+1) 202.384.1993www.bertelsmann-foundation.org

BRUSSELSRésidence PalaceRue de la Loi 1551040 Brussels, BelgiumContact: Thomas FischerE-mail: thomas.fischer@bertelsmann-

stiftung.deTel: (+32 2) 280.2830www.bertelsmann-stiftung.de/brussels

©Copyright 2010, Bertelsmann Foundation. All rights reserved.

The Brussels Connection to Capitol Hill

CapitolWireThe US Senate has yet to pass any climate-change legislation. Several proposals

(i.e., those put forward by, Sens. Kerry/Lieberman, Sen. Bingaman, Sens. Kerry/Boxer) have surfaced in the 111th (current) Congress, but none has sufficient support

for a vote. And the prospects for any Senate energy legislation are grim because

time is running out: The body is in recess for August and most of September to

allow campaigning for November’s elections. That fast-approaching election in

any case removes anything controversial from consideration.

Some Congressional Democrats and White House officials, including energy

adviser Carol Browner, have said that a post-elections energy bill is possible,

but even that would likely be a slimmed-down piece of legislation. Such a bill

could offer few clean-energy provisions (i.e., incentives

for electric vehicles and home efficiency retrofits), but

would primarily be a response to the oil spill in the Gulf

of Mexico.

With polls showing probable Democrat losses from the

mid-term elections, however, prospects for any Senate

action on climate change in the foreseeable future are

bad.

Failure in the US Senate

In lieu of Congressional action, President Obama will rely on the Environmental Protection Agency (EPA) to act. A Supreme Court ruling in 2007 ruled that the Clean Air Act could include greenhouse gases, thereby giving the EPA discretion to

decide if CO2 emissions endanger public health. Last year, the EPA concluded

in its endangerment finding that they do. In response, Sen. Lisa Murkowski

(Republican-Alaska) this year sponsored a resolution disapproving the finding,

but the resolution failed when brought to a vote. The EPA has begun action on

curbing CO2 emissions by, for example, implementing new greenhouse-gas rules

for automobiles and large stationary sources.

How quickly the EPA will move forward and how far their measures will go,

however, remain uncertain. The agency is facing a number of “endangerment-

finding” lawsuits from some states and industry groups. Additionally, Senate

Majority Leader Harry Reid (Democrat-Nevada) is rumored to have promised

Sen. Jay Rockefeller (Democrat-West Virginia), who represents a state in which

coal mining is widespread, a vote on his Stationary Source Delay Act, which would

suspend for two years EPA regulation of greenhouse gases from stationary

sources. Should this pass, Congress would have more

time to approve climate-change legislation, in which

case it would become the author of climate regulations

instead of the EPA.

The EPA Endangerment Finding

The US Department of Energy (DOE) also has some discretion to enable clean-

energy policies. Congress allocated US$16.8 billion to the Energy Efficiency and

Renewable Energy (EERE) division of the DOE through the American Recovery and Reinvestment Act of 2009 (also known as the “stimulus bill”). The funds are

being used for energy-efficient projects, such as updating building technologies

and developing alternative energy sources.

In the meantime the states are forging ahead with their own plans to put a price

on carbon. Ten northeastern states have already enacted cap-and-trade schemes

for the utilities sector, and other states plan to follow suit.

For their part, Sens. John Kerry (Democrat-Massachusetts) and Joe Lieberman

(Independent-Connecticut) have reactivated the debate on a US carbon tax

by including provisions for a “border adjustment” in their American Power Act. A carbon tax could be considered in the next Congress (which convenes in

January 2011), especially since the business community wants certainty on any

carbon price. But thorough reviews and thoughtful debate will be necessary for a

carbon-tax proposal to gain traction in the Senate.

It is unclear if any of these actions will live up to

President Obama’s commitment to the Copenhagen Accord.

But without Congressional action, his pledge is likely to

go unfulfilled.*

* See World Resources Institute analysis on reducing greenhouse-gas

emissions using existing federal authorities and state action.

Other US Government Actions

p EPA Administrator Lisa Jackson testifies on Capitol Hill in response to Sen. Rockefeller’s questions about the agency’s endangerment finding.

p Sens. Kerry and Lieberman unveiled the American Power Act in May 2010, but lacked the necessary support in the Senate to bring it to a vote.

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