Climate Politics

EPA nominee to be asked about regulating perchlorate in drinking water

This story originally appeared on ProPublica.org. It was written by Joaquin Sapien.

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In the latest volley of a years-long battle involving the Environmental Protection Agency, the military and the White House, the EPA announced last week that it will delay its decision on whether to set a drinking water standard for perchlorate, a chemical in rocket fuel that has been found at harmful levels in drinking water across the country. The announcement that the EPA won't act until it receives advice from the National Academy of Sciences puts the contentious decision onto the already-heavy regulatory agenda awaiting Lisa Jackson, President-elect Barack Obama's pick to head the EPA.

Sen. Barbara Boxer, chair of the Environment and Public Works committee, has promised to raise the issue of perchlorate at Jackson's confirmation hearing tomorrow. Boxer has called the EPA's decision "to walk away from this problem and shrug off this danger...immoral."

The EPA estimates that as many as 16.6 million Americans are exposed to unsafe levels of perchlorate, which studies link to thyroid damage that can slow brain development in children.

Jackson, former head of the New Jersey Department of Environmental Protection, is no stranger to the perchlorate controversy. New Jersey was urged to regulate [PDF] the chemical in October 2005 by a panel of state scientists, environmental activists and industry leaders. But three years later, the DEP still hasn't completed a draft of the rule.

The panel made its recommendation after a statewide study revealed that unsafe levels of perchlorate had been found in six of 123 public water systems the state sampled in 2004. Each of those water systems serves more than 10,000 people [ PDF, p. 41].

Jackson's predecessor, Bradley Campbell, promised to propose a perchlorate standard for drinking water by Jan. 31, 2006. But when Jackson moved from assistant commissioner to commissioner in February 2006, that deadline had passed. Standards were still being discussed last month, when Jackson left the DEP to become chief of staff for New Jersey Gov. Jon Corzine.

New Jersey DEP spokeswoman Elaine Makatura said the three years it has taken the DEP to develop a perchlorate regulation is not "atypical" and that the rule is now being reviewed by DEP's legal department and by the state's attorney general.

Renewable energy industries lobby for more flexible tax credits

Renewable energy advocates are enthused by Barack Obama's call to double the production of clean, domestic energy and create three million jobs in the sector, but they don't think he'll be able to pull it off unless he backs two changes to the tax code -- changes they say will help spur millions more jobs in the wind and solar industries.

Right now, the tax credits for solar and wind energy (yes, the much-beleaguered credits that were finally slipped into the October bailout of the financial markets) are not refundable -- that is to say, a producer only gets the money back if it makes a profit. Problem is, given the economic downturn, not many renewable energy companies are making money. That means the tax credits aren't helping them. The solar and wind industries would like the renewable tax credits to become refundable, which would offer rebates even to companies that aren't making money.

Obama has said his stimulus plan would create nearly half a million jobs through clean energy investments, but neither the investors nor the lenders who would normally provide the upfront funding for start-up renewable projects are feeling confident enough to do so right now. It also doesn't help that some major financial backers of renewable projects -- like Lehman Brothers -- have gone under in recent months.

"Lehman goes away, and many other banks have suffered major losses because of the sub-prime crisis, and because they're suffering these huge losses they don't have much tax liability," Chris O'Brien, head of market development and government relations for North America at the Swiss company Oerlikon Solar, told Grist. "They don't need more losses, so their appetite for investing in solar projects has gone way down at a point in time where the interest in and the need for tax equity has gone way up."

Another idea floating around the Hill is for the stimulus plan to put $10 billion into a "National Clean Energy Lending Authority" that could lend to renewable projects and help support homeowners who want to retrofit. Reps. Chris Van Hollen (D-Md.) and Zach Wamp (R-Tenn.) wrote a letter to Obama this week asking him to support something like this. "The current financial crisis has not only thrown us into recession, it has significantly derailed or killed off virtually every alternative energy project in the pipeline, making renewable energy yet another victim of the economic fallout," they wrote.

Senators prod DOE pick Chu for his thoughts on various energy sources

Barack Obama's pick to head the Energy Department, Steven Chu, got his turn in the confirmation spotlight this morning, with senators asking him to clarify some of his previous statements on contentious energy issues like coal and nuclear power.

The hearing before the Senate Energy and Natural Resources Committee was, for the most part, amiable, with the lawmakers warmly welcoming the Nobel Laureate physicist. But when the subject turned to Chu's previous assertion that "Coal is my worst nightmare," some coal-state senators got a little touchy. Sen. Byron Dorgan (D-N.D.) inquired directly about the remark that's been "ricocheting around the internet," while others asked more in-depth questions about what coal-related policies Chu supports.

By equating coal to a nightmare, Chu said his point was, "If the world continues to use coal the way we are using it today, and the world -- I mean in particular not only the United States but China, India and Russia -- then it is a pretty bad dream." He continued, "That is to say in China, for example, they have not yet begun to even trap the sulfur dioxide, nitrous oxides. There's mercury. There's particulate matter, as well as carbon dioxide."

If anything, though, Chu's remarks at the hearing likely eased the lawmakers' fears, as he asserted that nuclear and coal will remain crucial components in the energy mix. On coal, Chu had previously said, "It's not guaranteed that we have a solution for coal" -- meaning that there is currently no proven technology to offset the C02 emissions resulting from burning coal. In today's hearing, he softened, saying he's "very hopeful" that carbon capture and sequester (CCS) technology is possible on a commercial scale. "I am optimistic we can figure out how to use those resources in a clean way. I'm very hopeful that this will occur and I think that we will be using that great natural resource."

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Kerry and Clinton note action on climate change as key diplomatic concern

The hot news in foreign relations on Tuesday was, of course, the confirmation hearing for Sen. Hillary Rodham Clinton (D-N.Y.) to be the next secretary of state. But also noteworthy is the new head of the Senate Foreign Relations Committee's declaration that the panel's attention will soon turn to global warming, which he plans to be the subject of the panel's first hearing this year.

Sen. John Kerry (D-Mass.), who takes over the committee with Joe Biden's ascension to the vice presidency, tells the New York Times that he wants to use his committee to urge the Obama administration to act fast on climate change. "I think we are standing on the threshold of a huge opportunity to actually get something done," he said. "The Obama administration is going to have to get up to speed very, very quickly."

The Times described Kerry's new role as "a gold-plated consolation prize," considering he ran for the presidency in 2004 and was rumored to be a top contender for secretary of state post under Obama. But Kerry seems to be ramping up to use his chairmanship for big things, not least of which is climate change. Shortly after it became clear that he wasn't going to the Department of State, he pledged that his committee would "pick up the baton and really run with it" on climate.

His first action as chair of the committee, though, was to preside over Tuesday morning's confirmation hearing for Clinton. His made a nod to climate change in his prepared opening remarks:

Before turning to Senator Lugar, let me say one thing about global climate change: Many today do not see it as a national security threat. But it is -- and the consequences of our inaction grow more serious by the day. In Copenhagen this December we have a chance to forge a treaty that will profoundly affect the conditions of life on our planet. The resounding message from the recent Climate Change Conference in Poland was that the global community is looking to our leadership. This Committee will be deeply involved in crafting a solution that the world can agree to and the Senate can ratify. And as we proceed, the lesson of Kyoto must remain clear in our minds: all countries must be part of the solution.

In her own opening remarks, Clinton recognized Kerry's work on climate and pledged to focus on the issue in her new role as the country's top diplomat:

You, Mr. Chairman, were among the very first in a growing chorus from both parties to recognize that climate change is an unambiguous security threat. At the extreme, it threatens our very existence but well before that point it could well incite new wars of an old kind over basic resources like food, water and arable land.

President-elect Obama has said America must be a leader in developing and implementing a global and coordinated response to climate change. We will participate in the upcoming UN Copenhagen Climate Conference and a global energy forum; and we'll pursue an energy policy that reduces our carbon emissions while reducing our dependence on foreign oil and gas; fighting climate change and enhancing our economic and energy security.

Obama's pick to head regulatory oversight agency draws criticism, sends Dave on tangent

Last week Obama announced that he'd be appointing Harvard Law professor (and prolific public intellectual) Cass Sunstein as head of the Office of Information and Regulatory Affairs.

You could be forgiven for reacting to that news with a large yawn. But it's important!

First of all, OIRA is a big deal -- the conduit through which the entire suite of federal regulations passes. It can be used, as it was under Reagan and Bush, to stifle such regulations, or -- as will hopefully be the case under Obama -- to make them smarter and more effective. Ezra Klein has a great rundown on OIRA here, explaining its history and significance.

Some progressives are worried by the appointment because Sunstein is an outspoken proponent of cost-benefit analysis (CBA), which has been the death of many a progressive reg. Over on The New Republic, NYU Law professor Michael Livermore makes the case that Sunstein is a good choice because CBA needs to be reformed rather than scrapped. (It's a case he and his colleague Richard Revesz have made on Grist more than once.)

Thirteen years ago

"There's a strong possibility that Barack will pursue a career in politics, although it's not very clear yet."

-- Michelle Obama, in a 1996 interview with Le Monde (which also included her husband) that's just been published in English for the first time

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