The U.S. Senate rejected 47 to 53 a motion to proceed to a resolution that would block the U.S. Environmental Protection Agency (EPA) from regulating greenhouse gases under the Clean Air Act.  Six Democrats joined their Republican colleagues in support of the motion.

S. J. Res. 26 was introduced by Senator Lisa Murkowski (R-Alaska) in response to EPA's effort to regulate greenhouse gases from motor vehicles that then trigger requirements for emission controls from all other sources, including commercial buildings, industrial facilities, and more.

Senators debated over six hours on the resolution with opponents asserting that a vote for the resolution is a vote undermining the science behind climate change and EPA's finding that greenhouse gas emissions endanger public health and the environment, as well as EPA's recent rule to establish motor vehicle fuel economy standards.  Several Senators speaking against the resolution also argued that the resolution is a step backwards in reducing pollution and the country's dependence on oil, and creating "clean energy" jobs envisioned under a carbon constrained economy.

AGC is concerned that the Clean Air Act is the wrong tool to regulate greenhouse gas emissions and that to allow EPA to move forward with that approach would delay or stop construction projects nationwide.  AGC sent a letter to all Senators to urge them to support the Murkowski resolution.

EPA regulation under the Clean Air Act means more pre-construction permits, operating permits and costly technology control installation requirements for building projects, and puts approval and federal funding for highway and bridge projects at risk.  It also means higher energy costs for businesses and consumers that will affect demand for construction services nationwide, especially in a down economy.

The Senate may vote on additional attempts to limit EPA's authority to regulate greenhouse gas emissions.  As an inducement for Democrats to vote against the motion, Senate leaders offered a vote on a proposal to delay EPA regulations by two years.  In addition, efforts may be made to amend EPA's annual spending bill.  Should any future effort pass the Senate, the president would likely threaten any attempt to limit the EPA's authority over this issue in the absence of broader climate change legislation to regulate U.S. greenhouse gas emissions.

To see how your Senator voted on the motion to proceed to S.J.Res. 26, click here.

For more information, contact Karen Lapsevic at (202) 547-4733 or lapsevick@agc.org.

The U.S. Senate rejected 47 to 53 a motion to proceed to a resolution that would block the U.S. Environmental Protection Agency (EPA) from regulating greenhouse gases under the Clean Air Act.  Six Democrats joined their Republican colleagues in support of the motion.

S. J. Res. 26 was introduced by Senator Lisa Murkowski (R-Alaska) in response to EPA's effort to regulate greenhouse gases from motor vehicles that then trigger requirements for emission controls from all other sources, including commercial buildings, industrial facilities, and more.   

Senators debated over six hours on the resolution with opponents asserting that a vote for the resolution is a vote undermining the science behind climate change and EPA's finding that greenhouse gas emissions endanger public health and the environment, as well as EPA's recent rule to establish motor vehicle fuel economy standards.  Several Senators speaking against the resolution also argued that the resolution is a step backwards in reducing pollution and the country's dependence on oil, and creating "clean energy" jobs envisioned under a carbon constrained economy.

AGC is concerned that the Clean Air Act is the wrong tool to regulate greenhouse gas emissions and that to allow EPA to move forward with that approach would delay or stop construction projects nationwide.  AGC sent a letter to all Senators to urge them to support the Murkowski resolution. 

EPA regulation under the Clean Air Act means more pre-construction permits, operating permits and costly technology control installation requirements for building projects, and puts approval and federal funding for highway and bridge projects at risk.  It also means higher energy costs for businesses and consumers that will affect demand for construction services nationwide, especially in a down economy. 

The Senate may vote on additional attempts to limit EPA's authority to regulate greenhouse gas emissions.  As an inducement for Democrats to vote against the motion, Senate leaders offered a vote on a proposal to delay EPA regulations by two years.  In addition, efforts may be made to amend EPA's annual spending bill.  Should any future effort pass the Senate, the president would likely threaten any attempt to limit the EPA's authority over this issue in the absence of broader climate change legislation to regulate U.S. greenhouse gas emissions. 

To see how your Senator voted on the motion to proceed to S.J.Res. 26, click here.

The U.S. Senate will vote Thursday, June 10 on a resolution that would block the U.S. Environmental Protection Agency (EPA) from regulating greenhouse gases under the Clean Air Act.  AGC is concerned that Clean Air Act regulation of greenhouse gases would delay or stop construction projects nationwide.

Senator Lisa Murkowski (R-Alaska) introduced the Senate resolution in response to EPA's effort to regulate greenhouse gases from motor vehicles that then trigger requirements for emission controls from all other sources, including commercial buildings, industrial facilities, and more.   

EPA regulation under the Clean Air Act means more pre-construction permits, operating permits, and costly technology control installation requirements for building projects, and puts approval and federal funding for highway and bridge projects at risk.  It also means higher energy costs for businesses and consumers that will affect demand for construction services nationwide, especially in a down economy. 

AGC urges all members to contact their Senators in support of Sen. Murkowski's resolution.  To send a message to your Senators, visit AGC's Legislative Action Center here.

The U.S. Senate is expected to vote on a resolution next week that would block the U.S. Environmental Protection Agency (EPA) from regulating greenhouse gases under the Clean Air Act.  AGC is concerned that Clean Air Act regulation of greenhouse gases would delay or stop construction projects nationwide.

S. J. Res. 26 was introduced by Senator Lisa Murkowski (R-Alaska) in response to EPA's effort to regulate greenhouse gases from motor vehicles that then trigger requirements for emission controls from all other sources, including commercial buildings, industrial facilities, and more.   

EPA regulation under the Clean Air Act means more pre-construction permits, operating permits, and costly technology control installation requirements for building projects, and puts approval and federal funding for highway and bridge projects at risk.  It also means higher energy costs for businesses and consumers that will affect demand for construction services nationwide, especially in a down economy. 

AGC urges all members to contact their Senators in support of Senator Murkowski's resolution.  To send a message to your Senators, you can use AGC's Legislative Action Center by clicking here.

Senators John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) Wednesday unveiled a new approach to climate change legislation they say can achieve the 60 votes necessary to pass the Senate.  However, no Republicans have expressed support for the package and today all six west coast Democrats came out in opposition to provisions they feel did not restrict off shore drilling enough.  The 987-page American Power Act promises to cut U.S. emissions of greenhouse gases by 17 percent from 2005 levels by 2020 and 80 percent by 2050, consistent with President Obama's pledge to the international community in December 2009.  It would still allow the EPA to regulate stationary sources under the Clean Air Act.

The Kerry-Lieberman bill will lead to higher costs for energy produced by fuels that produce carbon emissions (as displayed in the chart below, nearly 70 percent of U.S. electricity comes from coal, petroleum and natural gas). It has yet to be formally introduced, but to mitigate higher energy costs for all users, the bill would provide more generous distribution of free greenhouse gas emissions allowances to electric utilities and U.S. industries than in previous climate change bills. These allowances are designed to soften the impact of higher energy prices on consumers and U.S. manufacturing, and would preempt states and the U.S. Environmental Protection Agency (EPA) from using some of their existing authority to regulate stationary sources of greenhouse gases. However, it does not provide a blanket preemption that could still bring in stationary sources of all sizes regardless of whether they are a covered entity under federal regulation under the Clean Air Act or other environmental statutes, including the Clean Water Act, Endangered Species Act, or National Environmental Policy Act, or, further, nuisance or citizen suit threats.  In addition, the bill includes new transportation planning requirements that would require states and metropolitan areas to develop strategies with EPA approval to reduce greenhouse gas emissions through the transportation sector, including from reductions in vehicle miles travelled. 

Kerry-Lieberman would also require federal contracting agencies and other agencies receiving federal funding for construction of projects authorized by the bill to comply with President Obama's Executive Order and subsequent rulemaking on PLAs, which was finalized in April 2010 and "encourages" federal agencies procuring construction projects greater than $25 million to "consider" the use of a PLA on the project.

2009 Electricity Generation by Energy Source

(Thousand Megawatthours)

The bill would impose emissions limits on approximately 7,500 U.S. factories and power plants and would cover only those operations that emit more than 25,000 tons of greenhouse gases each year.  The bill would cover electric utilities starting in 2013 and delay caps for U.S. manufacturing and industry until 2016.  Companies would be required to hold or purchase emissions allowances for each ton of greenhouse gas they emit.  Transportation sector emissions would be covered by requiring oil companies to purchase emissions allowances at a set price (the impact on the transportation sector is examined in greater detail below).

Approximately two-thirds of the revenues raised from the sale of allowances would be returned to consumers, while one-quarter of the revenues would go towards funding other programs created in the legislation.  After 2035, all of the revenue would go toward consumer benefits.  The bill includes a price floor for carbon set at $12 per ton that would increase at a rate of 3 percent above inflation each year, as well as a price ceiling of $25 per ton rising at an annual rate of 5 percent above inflation.  Natural gas and home heating oil and propane providers would also receive free emissions allowances.

Key to securing moderate Democrat and Republican support, the bill includes a nuclear title that would include tax incentives, expanded regulatory risk insurance, a $54 billion loan guarantee fund, and an expedited licensing process.  At the same time the bill contains mixed messages over offshore oil and gas drilling, also seen as vital to votes, by returning 37.5 percent of revenues from federal waters to adjacent states, while allowing states to enact a law prohibiting offshore drilling within 75 miles of the state's coastline. 

The bill provides less incentives for renewable energy and energy efficiency initiatives than previous climate change bills.  The Kerry-Lieberman bill would only provide $8.8 billion in the first year compared to roughly $67.8 billion in the House-passed bill, H.R. 2454, and $51.3 billion in version approved by the Senate Environment and Public Works Committee, S. 1733.  This funding would support initiatives such as energy efficiency retrofits to buildings and manufacturing facilities.

The Senate Majority Leader Harry Reid (D-Nev.) is expected to meet with committee chairs to discuss reconciling provisions in the Kerry-Lieberman bill with other bills, including an energy bill approved by the Senate Energy and Natural Resources Committee, S. 1462, which includes a renewable energy standard (RES).  No further details for Senate consideration have been announced. AGC issued a statement Wednesday expressing concern with the American Power Act. 

AGC continues to urge Senators to support a resolution, S.J.Res. 26, which would block the EPA from regulating greenhouse gases under the Clean Air Act.  The resolution may be voted on in the Senate as early as next week.  AGC encourages members to use AGC's Legislative Action Center to contact your Senators in support of the resolution.

AGC member Jon Cloud testified before the U.S. Environmental Protection Agency to explain how California's plan to require construction contractors to install emissions reduction kits on their off-road diesel equipment will endanger workers and force job cuts.

Cloud (J. Cloud, Inc., El Cajon, Calif.) and Guy Prescott, a representative of the International Union of Operating Engineers, Local Union Three, asked EPA to deny or delay a decision to allow the state to proceed with its off-road rule.

Read AGC's press release here.

AGC last week joined a broad coalition of environmental, science-based, public health, industry, and state and local government groups by signing a group letter in support of expanded funding in fiscal year 2011 for the U.S. Environmental Protection Agency's Diesel Emissions Reduction Program (DERP).  

President Obama requested $60 million for the DERP program in his FY 2011 budget request to Congress.  However, citing the huge demand and bipartisan support for diesel retrofit as evidenced by more than $1 billion in quality applications that could not be funded last year, the letter, signed by over 317 groups, requests that Congress fund the DERP program at a level of $100 million.  The letter also supports the President's increased request for funding of state air quality grants ($309.1 million) since these funds help pay for core air pollution control activities by state and local governments under the Clean Air Act.

Despite the urging of the White House, the U.S. Congress is still struggling to pass a comprehensive climate and energy bill.  The House of Representatives passed a bill by a narrow vote in the summer of 2009; however, the Senate, unable to find backing for specific draft bills, has moved full debate on climate and energy to early spring 2010.  Work continues on a Senate bill, and Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joe Lieberman (I-Conn.) are said to be close to unveiling another draft bill. As Congress works, the U.S. Environmental Protection Agency (EPA) is pushing forward with its own regulation of greenhouse gas emissions from mobile and stationary sources under the Clean Air Act.  This is prompting sharp criticism from legislators in search of more time to debate the most appropriate course of action.  In both houses of Congress, movements that seek to stop or delay EPA action are gaining support. 

Senator Lisa Murkowski (R-Ala.) intends to introduce for vote in mid-March a resolution to overturn EPA's December 2009 endangerment finding that opened the door for regulation under the Clean Air Act.  Senator Jay Rockefeller (D-W.Va.) is writing a bill that would delay EPA action for a few years and Rep. Earl Pomeroy (D-N.D.) has introduced a bill in the House of Representatives to remove EPA's authority to regulate greenhouse gases.  Three more representatives (Collin Peterson (D-Minn.), Ike Skelton (D-Missouri) and Jo Ann Emerson (R-Missouri)) also introduced a bill to block EPA.  In addition, states and interest groups are choosing sides in support of or to challenge the EPA endangerment finding in the courts. AGC supports recent congressional initiatives to halt regulation under the Clean Air Act.  Congress requires time and data to ensure that any efforts to reduce greenhouse gas emissions also work to strengthen the economy through: 1) increasing the energy efficiency of our infrastructure; and 2) increasing the nation's energy security by building diversified and lower-emitting sources.

President Obama announced $8.3 billion in federal loan guarantees to support the construction of a planned two-reactor nuclear power plant in Georgia, which would be the first new U.S. nuclear plants in more than three decades. The plant is expected to cost $14.5 billion to build and projected to be completed in 2017. Administration officials promised that more assistance is on the way. The administration has $18.5 billion available in loan guarantees for nuclear plants and the administration's FY 2011 budget request asks Congress to add an additional $36 billion to the nuclear loan guarantee program.

AGC has long supported increased domestic energy production, including nuclear energy, fossil fuels, and renewable and alternative energy sources. President Obama intends to incorporate nuclear electricity generation into his greater energy and climate change policy. He cited international competition and jobs as primary reasons for this new policy initiative.

Click here to view the full remarks by the president.

Following a three-day Republican boycott of a Senate Environment and Public Works Committee business meeting to consider S. 1733, the Clean Energy Jobs and American Power Act, Chairwoman Barbara Boxer (D-Calif.) and ten Democrats voted to approve the bill without considering any amendments.  None of the panel's Republican members were present for the vote.  Senator Max Baucus (D-Mont.) was the lone Democrat to vote against the measure.

Senator John Kerry (D-Mass.) and Sen. Boxer introduced S. 1733 on September 30, 2009, and have subsequently released two substitute versions of the bill that provide important details of the legislation, including the allocation of free allowances (i.e., permits to emit pollutants) and distribution of auctioned allowance revenues. 

Republicans on and off the panel - including Republicans moderate on climate change - have called for the U.S. Environmental Protection Agency (EPA) to conduct additional analysis to assess the cost of the bill to the economy.  Senator Boxer and other Democrat allies have insisted that EPA's current analysis is adequate and "unprecedented," and denied repeated Republican entreaties to delay Committee consideration of the legislation.

At least five other Senate committees have jurisdiction over energy and climate change legislation; only the Environment and Public Works and Energy and Natural Resources Committees have acted to date.  With the Senate slated to consider health care and other year-end priorities, such as the remaining federal spending bills and tax extenders, the full Senate may not consider comprehensive legislation until 2010.  Passage of the bill in the Senate remains uncertain. 

AGC has prepared a document, Top Ten Things Contractors Need to Know about Climate Change, to summarize AGC's concerns with energy and climate change legislation. 

AGC encourages members to express their concerns with the Senate climate change bill by contacting their Senators using AGC's Legislative Action Center.  For more information on pending climate change regulatory and legislative efforts and AGC's activities, please visit AGC's Energy and Climate Change Web site.