Climate Compromises Keep Coming
"Rep. Henry Waxman says he thinks he has enough support among fellow Democrats on the House Energy and Commerce Committee to pass his climate bill next week. But at least two of those Democrats said Wednesday they can’t support the bill yet. In separate interviews, Reps. Gene Green and Charlie Gonzalez, both of Texas, said they are still negotiating with Mr. Waxman over the bill’s provisions, including the percentage of emissions permits that oil and natural gas refiners will get for free. Mr. Waxman has said he is willing to give the industry one percent; Mr. Green is asking for five percent ... Both congressmen are targets of advertisements from Repower America urging them to support the climate-change bill.": WSJ
Grist's Kate Sheppard on reactions to the compromises: "Many interest groups are waiting to see the final bill in its entirety before offering up their reviews. But both greens and industry reps have indicated that the changes they’ve heard about so far don’t satisfy them, and they’re gearing up to try to influence the bill as it moves forward."
"Representative Henry Waxman ... agreed to cut by half penalties utilities would pay for failing to meet requirements for production of renewable electricity" reports Bloomberg.
"House Democrats agreed yesterday to give the battered automotive industry a small percentage of valuable greenhouse gas emissions allowances ... in exchange for increased production of electric and advanced vehicles. The deal would give the industry 3 percent of the allowances from 2012 through 2017. The allowances would then drop to 1 percent from 2018 through 2025, at which point they would be phased out entirely ... less than the 5 percent of allowances the auto industry had originally called for, but the deal was nonetheless applauded by the Alliance of Automotive Manufacturers...": Greenwire
Climate Progress' Joe Romm grades the compromise: "the bottom line is about a B or B-, now, I think. But that grade is not on a curve. Given what we are up against — rock-solid opposition and demagoguing by the entire Republican Party, well-funded opposition by polluters, and a status-quo media — it would be a stunning achievement for this country if this bill is passed out of committee, as Waxman believes it will be, and then passed out of the full House, as House leaders believe it will be. To those who won’t support this, I guess I’d ask, what exactly is your politically attainable alternative?"
Watthead's Jesse Jenkins wants remaining revenues steered to clean energy investments: "The challenge we face is this: pushing back on the wasteful pollution permit giveaways is great (and will certainly feel good), but is unlikely to yield any results. These giveaways were necessary to bring on key votes, and if the bill's champions yank them back, ACES will almost certainly die in committee. So while climate advocates work to push back against the giveaway of hundreds of billions of dollars to polluters and entrenched energy industries, we must zero in on one key opportunity."
TNR's Brad Plumer stresses positive: " No, it's not as stringent as many climate scientists have deemed necessary—the IPCC, recall, recommends that developed countries cut emissions 25 to 40 percent below 1990 levels by 2020 to help stave off drastic temperature increases ... But if this bill gets through the House and Senate more or less intact, it will certainly mark a tidal change in U.S. energy policy, with a price on carbon and a huge boost for renewable energy
Enviroknow stresses negative: "It is simply not as strong as a) Obama’s campaign promises, b) what Europe is doing or c) what scientists say is necessary to prevent catastrophic climate change."
"GOP will use spiking gas prices against climate bill ... The 21-member House GOP American Energy Solutions group, led by House Republican Conference Chairman Mike Pence (Ind.) and Rep. John Shimkus (R-Ill.), is set to hold several town hall meetings at various stops across the country over the weeklong [Memorial Day] recess.": The Hill
Climate Progress publishes Mark Mellman polling memo: "a strong public consensus has emerged on the reality and severity of global warming, as well as on the need for federal action."
Union of Concerned Scientists' Kevin Knoblach on fuzzy math from corporate critics: "Last year, NAM and the American Council for Capital Formation, an industry think tank, released a study examining the cost of implementing a cap on heat-trapping emissions, and the Chamber [of Commerce] hosted forums across the country to promote it. The study concluded that the U.S. economy would grow significantly with or without a cap by 2030, but that under a cap, the growth rate would be slightly lower. The Chamber misrepresented those findings and talked about the study as if it concluded a cap would reduce economic growth from today's levels. Recently, the Chamber released another study, this time by a consulting firm called CRA International, and is pulling the same bogus hide-the-numbers trick."
Dems Counter Luntz Messaging Memo
Politico reports on David Axelrod-Senate Dem mtg: "...Axelrod and other top White House aides said that they needed to focus on a few concepts: making health care affordable without driving up the deficit, giving Americans choice, and preserving the doctor-patient relationship. A mandate requiring individuals and employers to own insurance shouldn't be described as a mandate, but as an idea of 'shared responsibility,' senators said ... 'So the bottom line was, it was apparent that the Republicans had put a lot of time and effort into figuring out how to stop health care reform and so there were just some questions on our side about "Gee, are we prepared to deal with that?"' Sen. Evan Bayh (D-Ind.) said. 'And so the answer was yes.'"
"...Senate Finance Committee Chairman Max Baucus (D-Mont.) has sent a memo to Majority Whip Dick Durbin (D-Ill.) to find out where the rest of the conference stands on key healthcare questions such as individual and employer mandates, the so-called public plan option and pay-as-you-go budgeting rules...": The Hill
Should We Bail Out The Bailout?
Dean Baker, Ryan Avent and David Sirota discuss and debate the future of the financial industry bailout in the launch of OurFuture.org's Issues NOW! series, continuing later today.
"[Geithner said] that 'the financial system is starting to heal' as he pledged to recycle returned bank bail-out funds into small community banks. Citing improving lending conditions, easing concerns about systemic risk and lower leverage at banks, Mr Geithner said 'a substantial part of the adjustment process' for the financial sector was now over.": FT
"The government-installed head of AIG told Congress Wednesday the insurance giant is making progress toward repaying U.S. taxpayers by selling many of its foreign assets, but lawmakers questioned whether the plan makes sense and demanded details.": AP
"Geithner proposed requiring that over-the-counter derivatives such as credit default swaps be traded on exchanges, and that all major dealers in derivatives markets be subject to federal oversight.": Fortune
Credit Card Senate Vote Possibly Today
"The U.S. Senate, working to complete legislation to curb credit-card fees and limit contract changes, refused to cap interest rates on balances at 15 percent. The Senate may pass the so-called credit-card bill of rights measure as early as today...": Bloomberg
NYT adds: "Some Democrats and consumer groups have said that an interest cap is needed to put real teeth into an otherwise solid [credit card] bill."
WH Looks To Accelerate Foreclosure Relief
W. Post reports Obama foreclosure relief plan so far going better than Bush plan, but still too slow to meet demand: "'The program on paper is excellent,' said Bruce Dorpalen, director of housing counselors at Acorn Housing, a nonprofit group. But 'implementation has been very slow. We're holding thousands of deals right now so they can be reviewed. Most servicers are only partially up and running.' ... said Guy Cecala, publisher of Inside Mortgage Finance Publications. 'It is showing some potential. But they are not keeping pace with the number of loans that are going into foreclosure.'"
NYT adds: "Mr. Zandi was not as optimistic that the program would help as many as the administration expects. He estimated it would end up assisting only 1.5 million to 2 million homeowners over the next few years. Even so, he added, the program will, in the end, 'make a meaningful difference.'"
Perhaps the slow start is why "The Obama administration is expected to expand its mortgage aid program on Thursday, announcing new measures that would help homeowners avoid a blemished credit record even if they don't qualify for other assistance. The new initiatives are expected to include ways to allow borrowers to avoid foreclosure by selling their properties or giving them back to lenders...": AP.
Clear Your July Calendar
"Congressional Democrats have planned an ambitious July, stacking healthcare reform, climate change legislation, annual spending bills and a potential Supreme Court nomination battle on the 'To Do' list before the August recess.": The Hill
Terrance Heath contributed to the making of this Breakfast
