Obama's Climate Plan Taking Shape
Details of upcoming carbon cap rule emerge. NYT: "President Obama will use his executive authority to cut carbon emissions from the nation’s coal-fired power plants by up to 20 percent, according to people familiar with his plans, and will force industry to pay for the pollution it creates through cap-and-trade programs across the country ... it will set a national limit on carbon pollution from coal plants, but that it will allow each state to come up with its own plan to cut emissions based on a menu of options that include adding wind and solar power, energy-efficiency technology and creating or joining state cap-and-trade programs ... a number of officials at electric utilities say they welcome cap-and-trade programs because they offer an affordable and flexible way to comply with the new regulation..."
WH expresses confidence climate regs will survive legal challenge. The Hill: "The administration’s confidence stems from a string of court victories in which federal judges have endorsed the Environmental Protection Agency’s air pollution rules. Officials specifically cited a streak of eight victories in April and May, with no defeats ... The common thread across the cases is that courts are allowing the EPA to set its rules, as long as the agency thoroughly documents the scientific and technical basis behind them. The Clean Air Act limits the courts’ ability to wade into scientific disputes, judges have said."
EPA rebuts Chamber of Commerce claim that rules will cost economy $50B and lose over 200,000 jobs: "...the Chamber’s report is nothing more than irresponsible speculation based on guesses of what our draft proposal will be. Just to be clear—it’s not out yet. I strongly suggest that folks read the proposal before they cry the sky is falling ... The Chamber report assumes that States would need to require carbon capture and sequestration (CCS) for new natural gas plants to hit their goals under the proposal for existing power plants. That’s not true ... Given that three-fourths of the Chamber’s alleged cost estimates come from power plant construction—namely, natural gas with CCS plants—this assumption drives up the topline cost associated with this study."
Setback for green power mandates in OH. NYT: "...Ohio lawmakers voted to freeze the phasing-in of power that utilities must buy from renewable energy sources ... Since 2013, more than a dozen states have taken up proposals to weaken or eliminate green energy mandates and incentives, often helped by conservative and libertarian policy or advocacy groups ..."
House GOP Divisions Persist
House Majority Leader Cantor squeezed at home on immigration. Politico: "...immigrant-rights advocates — led by Rep. Luis Gutierrez (D-Ill.) — led a rally at the state Capitol in Richmond aimed at pressuring the second-ranking House Republican to move on immigration reform this year ... shortly before the rally ... Dave Brat – Cantor’s challenger in the June 10 primary – stood before a gaggle of reporters, insisting that the majority leader was heading up the 'amnesty drive' in the Republican-led House and he was 'working in cahoots' with Gutierrez ..."
Boehner allies look to punish Tea Party rogues. Politico: "A group of his closest allies — including fellow Ohio Republicans like Pat Tiberi — are discussing tactics such as trying to change GOP Conference rules to punish members who do not support the party’s nominee during a floor vote. A lawmaker who bucks the Republicans’ choice for speaker could lose committee assignments — or worse ... Boehner’s critics are loud but disorganized and stand little chance of toppling him at the moment. But the talks represent a drastic shift in Boehner’s corner ..."
States Attack Pensions
NJ Gov. Christie joins wave of pension cutters. Bloomberg: "Christie plans to close his state’s budget hole by cutting $2.5 billion of pension payments this year and next ... The move puts New Jersey at risk of exceeding six credit downgrades under one governor, a record that Christie matched this month ... Under a law Christie signed in 2010, New Jersey was to make higher pension payments each year through fiscal 2018 to help make up for a decade of skipped contributions. Christie said this month that the extra contributions won’t happen this year or next after his revenue targets fell short by $2.75 billion ... California’s [Jerry] Brown, a Democrat, this month proposed making school districts double their share of teacher pensions within seven years. In Illinois, which has the worst-funded pension system in the nation, lawmakers in December passed measures to help resolve a $100 billion unfunded liability. Public-worker unions filed a lawsuit on Jan. 28, alleging that the plan is unconstitutional."
City of Providence sues banks for mortgage discrimination. NYT: "...the city of Providence plans to file suit against Santander Bank, claiming that the bank has deliberately bowed out of mortgage lending in predominantly minority neighborhoods. The case revives concerns about 'redlining,' or the refusal to lend in certain areas, that had all but died out during the easy money days before the housing market crashed. 'The attitude is, if we can’t do subprime loans, predatory loans in the black community, we won’t do any loans at all,' said John P. Relman, the lead lawyer on the case. 'For us it is a civil rights issue.'"
