Friends,

Hope everyone takes time to enjoy the Thanksgiving Week. With transition activity remaining in high gear, things on many other fronts also still seem to be moving. This, of course, follows last week's incredible action in the Democratic Caucus on the Chairmanship of Energy and Commerce where Oversight Chair Waxman barely unseated incumbent Chair Dingell with the help of many new members. We are happy to discuss further implications and/or impacts.

Beyond transition, the next major event (besides a host of great holiday parties) will be UN climate meetings starting Monday December 1^st in Poland. As well, the Congress is planning to return the following week for another shot at helping ailing automakers. As I said last week, we are focusing on the auto bailout issue should you need help with analysis.

Finally, let me make two last points. Should any "last-minute" regs be issued, please take the rhetoric with which these are pitched to you with a grain of salt and call us. Many of these reforms are necessary and have long been considered. Secondly, the hardcore pitch by some to cast those entering career government jobs as "burrowing" is also growing tiresome. This happens every time an administration ends and its nearly always because people want to have a steady job to pay their mortgage and their bills, not because of political ideology.

Please call with questions.

Frank Maisano

(202) 828-5864

c. (202) 997-5932

IN THE NEWS

Waxman Wins Energy Committee Fight – Last week, Henry Waxman (D-CA) replaced Rep. John Dingell (D-MI) as Chairman of the House Energy and Commerce Committee by a vote of 137-122 in a meeting of the House Democratic Caucus. Scott Segal said the House Energy and Commerce Committee is of signal importance to energy, environmental and regulatory policy and oversight. Some two-thirds of all legislation passes in whole or in part through the Committee. Legislation subject to the Committee's jurisdiction has substantial impact on the economy and the environment. The practice of the Committee has always been one that stresses deliberation and consensus building. The Committee's greatest legislative successes have always emerged from the middle of the Committee's diverse membership. Chairman Dingell deserves great respect for his proven track record of success and his dedication to the institution of the Committee and the House as a whole. Segal added while it is tempting to define Chairman Waxman by his aggressive record, there is a great difference between being a senior member of the Committee and being its Chairman. As Chairman, he will have to deal with the Committee's famously diverse constituencies. Waxman is a canny legislator. If he wants to succeed, he will need to be flexible and pragmatic in his approach. For industry, these are tough times, regardless of who is Chairman of Energy and Commerce. There are major environmental and economic challenges - like climate change policy - on the near-term event horizon. Segal said Chairman Waxman is a smart and thorough member of Congress and that power companies will work with him closely.

House Global Warming Committee to Operate in Next Session – Speaker Pelosi said she intends to reauthorize the Select Committee on Energy Independence and Global Warming with Chairman Ed Markey as chair. Markey's committee also release its year-end report at the same time calling for an 80% reduction in emissions by 2050. The committee was established at the start of the 110th Congress in 2007, was set to expire at the end of 2008. As in the previous term, the select committee would not have any legislative authority. As you recall, this caused an internal shoving match between Dingell and Markey that eventually lead to Waxman events as stated above.

NSR Change Gets Protests, Support – Six Northeastern governors have sent a letter to EPA protesting an anticipated change in the New Source Review (NSR) rule from an annual to an hourly test for emissions to determine whether power plants are required to install modern pollution controls. Of course, these are the same governors who have attempted to under cut other NSR reforms that would improve the efficiency and safety of power plants. As with other NSR arguments, there are equal or more governors and Attorneys General that actually support the reforms going into effect. We are happy t discuss this issue should something be announced.

Academies Study to Highlight Climate – Concerns about climate change have prompted calls for action at every level of government and across many sectors of our economy and society. In response to a request from Congress, the National Academies are launching a five-part study to provide advice to the nation as it rises to meet the challenges of responding to climate change. Named America's Climate Choices, the study brings together top scientists, engineers, and other experts to address the scientific and technical questions underlying the various short-term actions and long-term strategies, investments, and opportunities that are available to meet these challenges. Four panel reports, to be released in 2009, will address these key questions: 1) What can be done to limit the magnitude of future climate change? 2) What can be done to adapt to expected impacts? 3) What can be done to better understand climate change? 4) What can be done to inform effective decisions and actions? A final report that synthesizes the panel findings and emphasizes priorities is due out in 2010 and will address short-term actions, long-term strategies, scientific and technology advances and impediments. The America's Climate Choices study is being conducted by the National Academies with support from the National Oceanic and Atmospheric Administration (NOAA).

MIT Experts Say Capture Partial CO2 – Construction of new coal-fired power plants in the United States is in danger of coming to a standstill, partly due to the high cost of the requirement -- whether existing or anticipated -- to capture all emissions of carbon dioxide, an important greenhouse gas. But an MIT analysis suggests an intermediate step that could get construction moving again, allowing the nation to fend off growing electricity shortages using our most-abundant, least-expensive fuel while also reducing emissions. Instead of capturing all of its CO2 emissions, plants could capture a significant fraction of those emissions with less costly changes in plant design and operation, the MIT analysis shows. Partial capture can get CO2 emissions from coal-burning plants down to emissions levels of natural gas power plants," said Ashleigh Hildebrand, a graduate student in chemical engineering and the Technology and Policy Program. "Policies such as California's Emissions Performance Standards could be met by coal plants using partial capture rather than having to rely solely on natural gas, which is increasingly imported and subject to high and volatile prices." Hildebrand presented her findings last week at the 9th International Conference on Greenhouse Gas Control Technologies in Washington. Her co-author is Howard J. Herzog, principal research engineer at the MIT Energy Initiative and chair of the conference organizing committee. The United States is facing a pressing need for more power plants that run essentially all the time. Renewable sources aren't suited to the task, nuclear plants can't be built quickly enough, and expanded reliance on natural gas raises price and energy-security concerns. Coal, which now supplies more than half of all U.S. electricity, seems the best option. For more on this, see: http://web.mit.edu/newsoffice/2008/ecofriendly-coal-1117.html

MIT Analysis Says Cap and Trade Plans Can Cut Emissions – Researchers at MIT's Center for Energy and Environmental Policy Research have produced a report concerning key design issues of proposed "cap-and-trade" programs that are under consideration in the United States as a way of curbing greenhouse gas emissions. The first contribution of the three-part study found that, based on an examination of the European Union's system and of similar U.S. programs for other emissions, such a program can indeed be effective in reducing emissions without having a significant economic impact. The study found that the most controversial aspect of the European program was how to allocate the permitted emissions levels to different producers. Initial free allocation of allowances was the necessary price for gaining political acceptance, as it has been in U.S. systems. The second part of the report looked at mechanisms that can be used to control the costs that will be imposed on power producers as a result of implementing a cap-and-trade system. Several alternatives were analyzed, including such things as a "safety valve," banking and borrowing of allowances, and renewable portfolio standards. Rather than a single best choice, the study found that different mechanisms work best for addressing uncertainties associated with long-term, short-term and start-up costs. The report's third section examined the relationship between state and federal regulations on greenhouse gas emissions. With no federal policy now in place, many states are moving forward with their own initiatives, which range from commitments to reduce greenhouse gases to a regional, multi-state cap-and-trade program slated to begin in 2009.

Washington Court Affirms Kittitas Wind Project Permit – In a ruling expected to strongly facilitate the continued growth of renewable energy development in the Northwest, the Washington State Supreme Court this week confirmed a decision by the state Energy Facility Site Evaluation Council approving a permit for the Kittitas Valley Wind Power Project. The project sponsor, Horizon Wind Energy, followed or exceeded the Washington Department of Fish and Wildlife guidelines to ensure that the Kittitas project is developed in a manner that protects wildlife and habitat. Horizon conducted extensive wildlife and habitat surveys, is committed to post-construction monitoring, and has established a 550-acre conservation reserve program to mitigate for unavoidable impacts to habitat. The developer also has altered the project layout to respond to local concerns. Throughout its process, Horizon earned the support of local citizens as well as state and regional environmental organizations.

Groups Call for End of Ethanol Subsidies – In another blast against ethanol, a wide array of organizations called on the next Administration and Congress to repeal subsidies for ethanol in light of its harmful effects on the environment, consumers and numerous industries. This November marks the 30th anniversary of the first government subsidies for ethanol. These subsidies now total nearly $5 billion annually. In recent months, a wide number of independent voices have spoken out against ethanol subsidies as a failed policy that does more harm than good. This includes three Nobel Prize winning economists, Joseph Stiglitz, Paul Krugman and Amartya Sen, as well as international institutions such as the IMF, World Bank, the UN, the International Food Policy Research Institute and others. On the occasion of the 30th anniversary of ethanol subsidies, Ipsos Public Affairs released the results of a national survey commissioned by members of the Food Before Fuel campaign. According to the Ipsos poll of 1,000 Americans, nearly nine in 10 (89%) are concerned about the rising cost of food, including 57 percent who say that they are very concerned. When provided with information about USDA data showing corn ethanol production is the cause of 10 percent of food price inflation, nearly half (49%) become less likely to support policies aimed at promoting the use of corn to produce ethanol. Moreover, when asked if they would support keeping or changing the existing Congressional policies, a majority (56%) of respondents call for Congress to change these policies by reducing or eliminating subsidies and mandates for the use of corn ethanol.

ON THE SCHEDULE THIS WEEK:

Kerry, Enviros to Hold Briefing on Poland Climate Meeting – Senator John Kerry will join environmental group climate experts on a phone briefing tomorrow at 10:00 a.m. regarding the upcoming climate talks in Poznan, Poland taking place December 1-12. During the call, the experts will briefly discuss the current state of play for the international climate change negotiations, potential outcomes and the role of President-Elect Obama. Joining Kerry will be Pew's Angela Anderson, Michael Levi of the Council on Foreign Relations and Oxfam America's Ray Offenheiser. For more information, call our friend Brandon MacGillis at 202-887-8800.

ANPR Comments Due on November 28 – The deadline for comments on EPA's APNR on climate are due on November 28 since EPA rejected efforts to extend the deadline last week. Many groups are commenting, so we will keep you posted.

THE WEEKS AHEAD:

The United Nations Climate Change Conference Set for Poznań Poland – The United Nations will hold its annual climate conference in Poznań Poland starting December 1^st and running through December 12. The Poznań Climate Change Conference is attempting to draw together nations toward important deadline set for negotiations in 2009 in Copenhagen. At COP 14/CMP 4 in Poznań, Parties are expected to 1) agree on a plan of action and programs of work for the final year of negotiations after a year of comprehensive and extensive discussions on crucial issues relating to future commitments, actions and cooperation, 2) Make significant progress on a number of on-going issues required to enhance further the implementation of the Convention and the Kyoto Protocol 3) Advance understanding and commonality of views on "shared vision" for a new climate change regime 4) Strengthen momentum and commitment to the process and the agreed timeline. Important continuing issues will be capacity-building for developing countries, reducing emissions from deforestation, technology transfer and adaptation. More on the politics and other items as we get closer.

Holiday Season is Upon Us – The Holiday party season revs up into full gear during the week after Thanksgiving. We are compiling a good list of relevant energy and environmental events that may be of interest. Stay in touch.

Sustainable Transportation Expo Set – The Electric Drive Transportation Association (EDTA) and the Environmental and Energy Study Institute (EESI) will hold the Powering Sustainable Transportation Conference and Exposition at the Washington Convention Center on December 2-4. EDTA is the trade association for battery, hybrid, plug-in and fuel cell electric drive vehicles and infrastructure. This conference brings together the industry's diverse players of automotive and other vehicle manufacturers, utilities, battery suppliers, technology developers and many more. Pre-Conference activities on December 2, including the Energy Policy Roundtable, Exposition and Ride and Drive, are open and free to all. The 2:00 p.m. Energy Policy Roundtable on Tuesday, December 2^nd will discuss industry needs, what policymakers should do, and what is likely to happen in Washington next year. Speakers will include Brookings expert David Sandalow, American Honda's Ed Cohen, Ford's Nancy Gioia, EEI's Tom Kuhn, GM's Tony Posawatz and Mary Ann Wright, CEO of Johnson Controls-Saft. The full agenda, speaker and exhibitor lists, and registration info is at www.edtaconference.com.

Forum to Look at Transportation, Health Costs – The Environmental and Energy Study Institute (EESI) will hold a briefing Wednesday, December 3^rd at 10:30 a.m. in 2212 Rayburn to examine health impacts and costs associated with transportation in the United States. The briefing will address how federal policies regarding transportation infrastructure, in addition to policies concerning vehicles and fuels, can play an important role in improving public health and reducing health care costs. Panelists will include: USC Keck School of Medicine's Director of Environmental Health Dr. John Peters American Public Health Association's Georges Benjamin MD, Thomas Gotschi of Rails-to-Trails Conservancy and RFF's Elena Safirova. The transportation sector is associated with multiple risk factors for public health. Exposure to air pollution from vehicles has been linked to increased mortality, cancer, lung ailments, and other health problems. Limited options to walk or bike have been shown to be a factor in obesity cases, which have reached epidemic proportions in the United States. Many of these impacts, asthma and obesity in particular, disproportionately affect children. Recent studies and an emerging body of research have documented local, regional and national health impacts associated with our transportation system -- adding costs to the national health care bill estimated in the billions of dollars. In addition, climate change, driven in part by carbon emissions from the transportation sector, is projected to exacerbate a variety of public health concerns.

Friedman to Headline ACORE Renewable Forum – Thomas L. Friedman, world-renowned author, journalist, and three-time Pulitzer Prize winner, will keynote the Phase II of Renewable Energy in America National Policy Forum on Capitol Hill on December 3-4. The 7^th annual event is sponsored by ACORE and conveys the contribution of renewable energy to the nation's energy needs by bringing together high-level speakers to discuss the energy policy issues concerning renewable energy, energy efficiency, sustainable development, the environment and related fields. For more, go to: http://www.acorephaseii.com/

AWEA To Hold Webinars on New Wind Agenda – The wind industry recently released it’s newest publication, Wind Energy for a New Era, which provides an overview of the policy agenda to key policy-makers on the transition team, in the new Administration and in Congress. The policies it addresses are designed to help wind energy remain on the pathway to 20% wind power by 2030. They include a national RES, a long-term PTC extension, measures to promote an interstate transmission highway designed to maximize deployment of renewable energy, climate legislation that appropriately values carbon-free electricity generation, an initiative to facilitate wind power project and transmission siting and accelerated research and development. The Wind Energy for a New Era overview and other supporting resources are available at www.awea.org/NewWindAgenda. To respond to questions, AWEA will host two webinars to discuss the new wind agenda. Sessions will be December 4, 3:00 p.m. (register at https://www2.gotomeeting.com/register/553446484) and December 9, 1:00 p.m. (register at https://www2.gotomeeting.com/register/864388738).

RFF Seminar to Look at Organizing Govt to Address Climate Change – Resources for the Future (RFF) will hold its First Wednesday Seminar on December 3 at Noon to address how the Federal government should organization to meet the challenges of climate change. Congressional and other proposals to address climate change assign new responsibilities to existing federal agencies and in some cases, suggest governmental reorganization or wholly new agencies. Some plans would move climate-related activities of the federal government well beyond those provided under the 1990 Global Change Research Act and embodied in the current Climate Change Science Program and Climate Change Technology Program. The panel will discuss how best to organize federal agencies for effective governance in addressing climate change, and will also cover regulation, diplomacy and international engagement, science and information, and economic policy. RFF's Molly Macauley will moderate a panel of experts John H. Gibbons, former Director, White House Office of Science and Technology Policy, American Meteorological Society Policy Director William Hooke, EPA Climate office head Dina Kruger and RFF scholar and climate consultant Nigel Purvis.

WCEE to Feature Sen. Murkowski at Leadership Event – The Women's Council on Energy and the Environment's Women in Leadership Speaker Series will feature a holiday breakfast event with Sen. Lisa Murkowski on Wednesday December 3^rd at 8:00 a.m. at the Cosmos Club. More details will be forthcoming.

OH Gov. Strickland Headlines AWEA Supply-Chain Conference – The American Wind Energy Association’s Second Supply Chain Workshop will be held in Cleveland, Ohio on December 8-9. The event has a powerful program where attendees will learn the fast facts on wind turbines – the parts needed and how companies can start supplying this growing industry. Ohio Gov. Ted Strickland, Governor of Ohio, as well as Ohio State House Speaker Jon Husted will be participating in this workshop program. In addition, prior to the workshop, on Monday, December 8, there will be a pre-conference seminar that will detail the anatomy of a turbine and help suppliers see first-hand where they themselves can enter into the wind industry supply chain. To see the complete program agenda visit: http://www.awea.org/events/supplychain2/agenda.html.

Coal Symposium Set for Purdue-Calumet – Purdue University in Calumet's Energy Efficiency and Reliability Center in conjunction with the PU-West Lafayette's Energy Center at Discovery Park and the Indiana Center for Coal Technology Research will hold a Coal Symposium December 11-12 at PU-Calumet's Conference Center in Hammond, Indiana. U.S. produced coal supplies 49% of the basic energy needs for the nation's total electricity demand, providing secure, sustainable, and cheap supplies for the U.S. economy. In Indiana coal supplies 95% of the energy needs to fuel the state's electric power generators. As we look towards diversifying power generation technologies and the sources of basic energy supplies the dependence on coal will be staying with us for many decades yet to come, until alternative, appropriate, safe designs are operational. How to promote therefore the use of clean coal technologies in coming years is of importance to us all. To see more information, go to: http://www.purdue.edu/dp/energy/events/CCTR_Meetings_Dec_2008/

Commissioners to Look at Changes for PA Wind Project – Last week, the Fayette County Planning Commission voted unanimously to amend the County Zoning Ordinance that will enable wind projects to be built within the county and keep with current industry standard requirements. Earlier this year, a county panel rejected changes which has now become a lawsuit. A summary of the changes include Tower heights of up to 300’ as opposed to 250’, property line setback issues and sound levels not to exceed 55 dBA/dBC down from 70dB, among other issues. County Commissioners are expected to vote on enacting the planning commission's recommendations during their monthly meeting in mid-December. We'll keep you posted.

CA's Nichols Climate Event Rescheduled – Resources for the Future and the Commonwealth Club of California has rescheduled a discussion entitled “A New Climate of Change” from Tuesday November 18 until sometime in next January. The event will still be held in Washington, DC. The full-day event will include a keynote address by Mary D. Nichols, chairman of California’s Air Resources Board.