President Signs Funding Legislation

President Bush on Tuesday signed legislation, H.R. 2638, which will fund most of the federal government until March 6, 2009. 

The continuing resolution (CR) also included three appropriations and one disaster relief bill.  The CR was needed because of Congress’ inability to pass any of the 12 annual appropriations bills that fund the federal government.

The CR will fund most of the federal government at FY 2008 funding levels and will provide FY 2009 appropriations for the Departments of Homeland Security ($40 billion), Defense ($487 billion), Veterans Affairs and the Department of Defense Military Construction Program ($72.9 billion), as well as $22 billion for disaster relief.
 
Contact John Sullivan or David Hubbard.

Financial Rescue Bill Includes Renewable Tax Extenders

The financial rescue bill approved this week by Congress incorporates tax breaks due to expire at the end of the year, including credits to promote renewable energy.  The extended energy tax credits apply to solar, wind, and other renewable energy sources.

The $17 billion energy tax package provides a one-year extension of the expiring production tax credit for wind projects and a two-year extension of production incentives for geothermal, biomass and several other energy types.

It also provides an eight-year extension of credits for investments in residential and commercial solar projects, and incentives for energy efficient homes and buildings, plug-in vehicles, biofuels, advanced coal projects, and other technologies.

Contact Deidra Ciriello.

China’s: Wealthy Nations Should Act First on Climate

In a September 28 submission to the United Nations’ climate-change secretariat, China stated that the United States, Japan, and other developed nations should set "midterm" targets for cutting greenhouse gas emissions by 2020 before pressing China and other developing nations to agree to long-term global cuts.

According to the submission, any future climate deal should include a pledge by industrialized nations to cut emissions at least 25 percent to 40 percent by 2020, compared with their 1990 emissions levels. China's submission also calls on developed countries to commit to long-term reductions as well, calling for cuts of between 80 and 95 percent by 2050.

China joined other nations, including members of the European Union, Japan, and South Africa, in offering submissions in recent months toward a global climate deal to succeed the Kyoto Protocol. The Kyoto agreement's first commitment period for emissions cuts expires at the end of 2012. 

Each nation’s submission will be used by the U.N. climate-change secretariat, who will lead the preparation of a draft text for climate negotiators as they work toward a successor agreement to Kyoto.

The text, to be released in June 2009, would be further refined in hopes of getting a global agreement when U.N. climate negotiations conclude in Copenhagen in December 2009.

Contact Andy O'Hare.

Representatives Offer Ideas for Climate Legislation

Some 152 members of Congress yesterday sent a letter to U.S. House Speaker Nancy Pelosi (D-Calif.), effectively saying any comprehensive climate bill should be economy wide and use an emissions trading scheme to cut greenhouse gas emissions 80 percent below 1990 levels by mid-century.   

According to the letter, such dramatic reductions are needed to ensure that the increase in global temperatures is kept below 3.6°F from where they were in the pre-industrial era of the mid-1700's.

The letter also said legislation must include what are often called midterm targets—cuts of 15 percent to 20 percent by 2020—to ensure the United States moves quickly in reducing emissions.  It also called for provisions for a periodic scientific review to determine whether additional actions are warranted and would provide the U.S. Environmental Protection Agency authority to "adjust the regulatory response if the latest science indicates that more reductions are needed."

The principles outlined by the Members call for an emissions trading system that would cap carbon dioxide and other greenhouse gas emissions from power plants, manufacturers, and the transportation sector. It would require companies to hold allowances, or permits, for the greenhouse gases they emit.

House action on cap-and-trade legislation will likely have to wait at least until the 111th Congress convenes in January 2009.  U.S. House Energy and Commerce Committee Chair John Dingell (D-Mich.) and Energy and Air Quality Subcommittee Chairman, Rick Boucher (D-Va.), are expected to introduce what will likely be the lead bill and are said to be planning to post a discussion draft on the energy committee Web site later this month. 

Contact Deidra Ciriello.

President Nominates New Highway Safety Administration Head

The President on Monday nominated David Kelly to be the new head of the National Highway Traffic Safety Administration (NHTSA).  Kelly will fill the position vacated last month by Nicole Nason, to whom Kelly was previously an aide.

In addition to setting new Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks, NHTSA is studying CAFE standards for commercial medium- and heavy-duty on-highway vehicles, as ordered by the Energy Independence and Security Act (Public Law 110-140), enacted in December 2007.

Contact   Kevin Walgenbach or Leif Wathne.

Correction/Amplification

In our story, "Second Stimulus Package Emerges in House, Senate," (Washington Briefing, September 26), we failed to capture an important development in the story about the stimulus package that was making its way through Congress. The omission occurred because the situation changed just prior to press time. We regret the oversight.

Details are as follows:  The bill stalled last Friday due to a failure to win 60 votes required to advance the legislation.  In addition, the President has threatened a veto because of a continued ban on commercial oil shale leasing among several other provisions in the bill. 

Besides the additional funding for the Department of Transportation, mentioned above, the House would add $6.5 billion for the Clean State Water Revolving Fund and $1 billion to the Safe Drinking Water State Revolving Fund.

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