Meeting Reminder -- May 3rd Guest Speaker -- Keith Yehle, Senr Robert's Office Memo to. Coordinating Council Participants and State Leaders Date: April 28, 1999 Snbyects: (1) Meeting Reminder (2) Murkowski/Hagel Bill lnlroduced Pr& Info Attached (3) Copy utRep, Slumkus' Draft Proposal, "Commission it) Study Economic and Energy Impacts of Global Climate Change Act" (4) Invitzlion to this Friday Climate Event (1) Tho next meeting ofthe Coordmating Council Will be at 2:00 on Monday. May 3, at the Rounduble, 1615 Street. NW, Suite 1100, For those of you who can not be presan the phone-in number is (703) 7367274 If you can't remember me Codet call me Keith Yehle, Legislative Assistant to Senator Pat Robert (RVKS) will be with us to discuss his bosi' proposed climate legislation You were mailed a copy of Sen Robert's bill last week. The Senator is also an original co-sponsor of the Murkowski/Hagel bill. The remainder ofthe meeting will focus on other congressional activities (there was a small business hearing this week), reports from the males, and the stains of the Deparunent of Agiculrure's report on the impacts of the Kyoto Protocol on agricultural interests. Let me know if there are other items you would like discussed, Yeswrday, Sen Murkowski held a news conference to introduce the so-called Murkowsh/Hagel bill. officially Called the "Energy and Climate Policy Act of 1999". Sen Robert (D-WV) is the only democrat so far. The other co-sponsors are sum. Larry Gang (R- ID), Pat Roberts (RVKS). Rod Gramms Tim Hutchison (R-AR) and Mike Enzt (varr (3) Attached is a copy of: draft climate propom by Rep. John Skimkus a member of the House Commerce Commitkt. (4) Maxk Whilenton, Vice President for Resources, Environment and Regulationv will be moderating an interesting panel discussion this Friday at the Forbes Magazine Environmental Superconference here in Washington from 10-15 to The details are noted in the attached e-imil. See you Monday. (11.1] if you have any questions. Attachments Lunar; a Global Clmuxt Coalmon 1275 s: w. 3m ago WishtrumeC 20w; 'wgua - 20155th Fm 292.535.1343 MEMORANDUM Etna>>. DATE: April 27, 1999 T0: GCC Mzmben FROM: Karen Hulme SUBJECT: Energy and Climate Policy Act Inlmduced in the Senate On Tuesday, April 27, Senior Frank Murkowskl (R-AK), Chairman of the Energy and Nnuml Ramiro" Committee, held I news conference Io introduce the Energy and Chm-t: Pulley Act of I999 Cosponsors 0f the bill include Senator: Chuck Hagel (ll-NE), Ruben (D-WV). 14117 cm; Mike Enzi (ll-WY). Rod Grams (RAE), Pal Rubens (KKS) Md Garden Smith (ll-0R) In I press relwe, Chain-nun Murkuwskt sutcd, "With this bill and oxhus that will f01]ow,wc In: a difl'etent course from Ihal of the Kyow Protocol" This market bubd legislation has three components intended to - emu - new, :2 billion research dwelapment, and dmonsnnon pram to develop ma new txhnology (hmugh public-private to help subtlize concentrations in the - yromot: Volunul'y :lfons to Ieduce greenhouse gl! annsxons by expanding and Lb: voluntary reporting guidelins Ind repomng prooeduru under Sutton mos ofth: Energy Policy Act of 199:, - ensur: gram :cmumabillty and for slim-re dung: and related mincrs at: Department of Energy by 2 Summary Office of Global Clint-re Cmge Senator Murkuwsld added effom to Adams climue issues will continue the form ofseplnte or as unendmuru bill. He aim ma that will be future committee hearing [0 discus climate thin": issum Th: Energy and Chmn: Policy AC1 01' I999 (S 882) should be nvmlable an the lam-net lumpy/hawthomnnl, twenty four hours Amhed In this mm topic of press muses from Chairman mu Seruwr raga. If you hive my quuficns about me please m1 free to contact Glenn Kelly at 1h: GCC offices, (R) 2 Murkawsld/filst add/ "27199 - temovg regulatory chucks that mud in th: wzy wf voluntary wenhous: gas missions Induction; - prim-Am: voluntary aylculmnl magnum Ind form pmdcu that quueslex (m mp) iddiLionnl tarban dioxide in Mamas: and sails: - pmmole US. exports of elem uchnalagizx nations such as China and India. who ate yuahouse gm and making on their own pollutams; - pursue possible changes to lb! tax nod: lo pron-ml: <Energy and Climate Policy Act of 1999 To address potential climate change issues by shifting the Suns from narruwly applied, short term emissions reductiens targets <UNITED STATES SENATOR - NEBRASKA CHUCK HAGEL PRESS RELEASE FOR IMMEDIATE RELEASE Contact: Del; Fiddle)" at Tuesday. April 27. 1999 Deirdre at 202-224-4224 Senators Introduce Bipartisan Climate Change Legislation 7 us. Senators Chuck Hagd (R--Nebnska). Frank Mutkowski (R-Alaska). and Robert cl (D--Wcst Virginia) jomzd today to introdum legislation to increase the ofvolunury :fiuns to rcduu lavtls of mm: yunhvuae guns, increase due resumh and at elm technologies. and create mare min-liability in the climat: clung: policiu. Hagel, ofthe Swan's Climate Chang: Observer Group, slam], "This bill offers the best my deal with the of climate change long-term bucd on America ingmuity, cxyom, sound science, scientific certainty, 21st canary technologies and mm principlzs By doing than things we walk nwuy Earn the disush'ws path that this admittimuian and die Kyoto Protocol would lad its dawn. and focus our 2mm insmd on positwc, bipartisan, Anhicvahl: approach. "fills ha: never been I debit: thou! who is for or against the environment. This h" never bean I partisan issue. [have um met on: member olthis body, Republicm at Democrat, who warns (a leave their children I dirty and minbbiublc W: all age: that W: have a responsibility to protect out What Lhis debs: should be about is bringing some camman sum to this lssug. "Thi'l bill tantalize: 1h: and responsibility within the Administration by establishing the oflicc of Globll Climate Change Within its: Depamflu of Enugy. Second. this bill moves the mil-rent focus of clinme chug: Ile fi'om the short-tam draconian energy fattening Ind costs inundated by the Kyoto Protocol to a long-lent: commitment to march Ind dmlapmmv. 1: provides significant funding for pimliwrivm "ml: and Third. til; bill continues commitment tn supporting voluntary industry efi'cm swim: or wold mum: mentions: ps amissiom. It does so by strengthening Eurtml 1",th arming I new international For 1hr. fin! time, dyicultw: and mull busimus will he mpimd for their efforts mince gimbals: gags: - MORE - HAGEL -- PAGE 2 Emmy ma Policy As: has time mam components: It establishes a mw research. dzvelopmant Ind demonstration magma to insist the cevslopmm ofncw technologies that man or mduse mussions of gemhnus: gascs, or that rcmov: md sequwcx greenhouse gasts [tom the atmosphere. It authorizes S2 billion over m: flux! in] yams for teshnolagiss, plus sector cost-sharing of no: less d-ian 20% for and 50% of dtmansuadnn/commarcialiufion efforts 0 It promotes voluntary efl'ons to mime greenhouse gu missions by expanding and strengthening um Vallmlaxy morning guidelines rcpum'ng under semen l605 of the Enerl'y Policy Acl of 1992. For the fits! lime, small and :g'iwltum] products would be lecegnlzed far Lhtix valumaly :ffofls - mums grant" umunubility and for slums change and glued mauszs within m: offinergy by establishing a gummy omcs of Global Climate Change, 15 1997' Hsgel and w-Iulhoted 83:5. 92, "his?! L'nc Same approvld by ms or 95 are This mmluuan stand that the United States Sums would mt appmv: 1 climate Chmge weary that did not includ: all nations or that would cause serials harm to the U.Ss economy Despite the clear ndvicz of \hc Senate, the Clinwn-Gor: Amnistmion approved and slgnad th: Kyoto Protocol which 134 mtians 5mm its mandaud reduction: in gmnhouse gas missions. By mm zsfimnles. ms Kyoto Protocol would result in a $333 bill-ion loss in US. in the yw 2010. "Nenty-fim < mums H. R. IN THE HOUSE OF REPRESENTATIVES Mr. the (011mm; wk: which was referred m- Com-mute an ABL To the Commissmn to Study Economic and Energy Impacts of Global cumm Chmenacled Ly the Senate and 11mm of 2 twes United ofAmcrim in Congress assembled, 3 SECTION SHORT TITLE. 4 This Am. may be cited as the "Commission 10 Study 5 Eamon-dc and Energy Impacts of Global Climate Change 6 Act". car kre Au' .f I977 Mum sums omqomuwtd .q SEC. 2. maximum. There is established a. commission be lmown as the ('Ammission to Study Ewnomio and Emery hnpacts of Global Climate Changefin this Act referred to us the "Commission"l. SEC. 3. DUTIES. The Commission shall have the following duties- (ll To examine, in Mun--(lance "ml: section 4, Llie various types of policy scenarios that could be implemented by the United States in iesponse to global climate change. (2) To evaluate, in accordance with section 5, the various types of policy scenarios in terms of their economic and energy impacts on the United States. (3) To pmposc a range of specific policy seer rim-ins tonsistent with the Kyoto Protocol 7th; United Nations Framework Convention on Climate Change (in this Act referred to as the "Kyoto Prom- col") that could be implemented by the United States. (4) To develop dctaflcn ecunomie models for each specific poliny scenaxio proposed undel- para- graph (3). (5) To thoroughly evaluate each specific policy scenario proposed. under pmgraph (3). mm my 3 (6) To submit reports to the Congress in ac- cordance with station 9. SEC, 4. EXAMINATION DE POLICY In carrying out its duties under smfiun the Commission shall include in its cxnmimtion the following matters: (1) POLICY sonmmus.~Eucli of the various types of .policy sconmm, including legislurion or ad- ministrative action to regulate emissions-- (A) by imposing traditional "command and cuntrol" measures; (B) by issuing permits, whether the per mics are fo' marketing, for emissions, or other wise, and whether the permits are issued by ai- location, by auction, or otherwise; and (C) by Establishing incentives that encour- age reductions in emissions (2) DIFFERENCES BETWEEN 'i'hc differenczs between, and the advantages and disadvantages of, the various approaches that are used to measure the impacts of policy scenarios, (A) top-down, econometric approadies (such as transition cost model: and computable general equilibrium models); and 4 (I3) bottom-u engineering appmachcs. 2 (3) AcmmAcx--The efiecfiventss of each or 3 the various approx-hes dw-fibed in paragraph (2) in 4 aummtely identifying the impacts of policy see- 5 nudes. 6 (4) Assummxs --Each of the major assump- 7 Lions used in manning the impacts of each of the 8 policy scenarios acmss a range of sensatimics' 9 finding assumph'ous regarding'fi 10 (A) the selectmn of base year, 11 (B) the ease of suhsfimfion of fuels; 12 (C) the cost and availability of aiding and 13 new technologies, including capital steak mm- 14 over; 15 (D) the natural gas resource base and con- 16 strain): on natural gas dek'n'cry; 17 (E) domestic and inlerzmtiundl 18 uading; 19 (F) change and foremy aut'mues 20 and other greenhouse gas omets; 21 (G) transition period effect: (10 (a 15 22 years) and short-term macro-economic shacks; 23 (H) impacts an the Feamsl budget, rcvo 24 um: recycling, and monetary and tax policy; and Mum n, was 5 (1) differential impacts on 5&1an glans) due to lossw and mimfinu of employ>> mar lduxJ ment and industry. SEC. 5. EVALUATION OF IMPACTS 0N UNITED STATES, Inmmissiun include in its evaluation Lhe following matters: (ll 151mm: --A.ll monomm And enev mpacts 1 2 3 4 In emymg out its duties under section the 5 7 8 9 of each policy scenario on L112 United States, includ- 10 mg impacts relating to jobs. national and intexu ll national made, and energy and consumer costs. 12 (2) STUDIES or methads, find>> l3 ings, and conclusions of the van'ous majnr rcpons 1A that have studied the [macroscommic impacts associ- 15 ated with implemenfing the Kyoto Pmmuul in the 16 Unwed States, 17 (A) "The Kyoto Protncol and the Pm: 7' 18 dent's Policies to Address Climate Change: Ad 19 ministration Economic Analysis" (July 1998): 20 (B) Energy Information Administration, 21 "impacts of the Kyoto Protocol on US. Energy 22 Markets and Economic Activ'l (Camber 23 1998); 24 (C) Department. of Energy. "Scenarios of 25 US. Carbon 'chuctions: Potential Impacts of Mum was b' 1 Energy-Efficient and Low Carbon Tecimniogim 2 by 2010 and chund" (September 1997); '4 Standard and Poms mm, "The Im- 4 pact of Meeting the Kyoto Promeol on Energy 5 -Markets and {he Economy" (July 1998); 6 (E) Inc, "Global Warming: The High 0054. of the Kyoto Prowcoi, National and 8 State impacts" (1998); and 9 (F) selective studies 01' the Energy Model- 10 mg qum based at Stanford University, in- 11 ciudmg EMFJS and later studicsv 12 STUDIES OF methods, 13 and unmiusious the varinus major re- 14 ports that haw quantifieri the mamas-commit: bene- 15 fits assocxated with implementing Lbe Kyoto Protocol 16 in the United States, with spedfin smntion to-- 17 (A) the inner assumptions of such remrzs, 7 7 7 18 <7 1 market power and ran-called "hot air" effects; and (iv) price volatility. SEC.8.M.ENEBKRSEJP. NUMBER AND ehnimm: uf the Board of Gavemors of the Federal Re- 2 3 4 5 6 ska" be composed of 5 members, 1 of whom shall be fire 7 sen'n System and 4 of whom shall be appointed 2x5 hum; 9 (1) 1 member appointed by the chair-man of the 10 Committee on Energy and Natural Resources of me 1\ Senate. 12 1 member appointed by the ranking minor- l3 ity [member of the Cammnme on Energy and Nam- 34 ml Resources of the Senate, 15 (3) 1 member appointed by the chairman of the 16 Comm-Be on Commerce of the House 01' Reprexent- 17 au'vcs 18 (4) 1 member appointed by the "11.1ng mun:- 19 ity member 0f the Cormn'rttee on Commerce of int: 20 House of Representatives. 21 fur the member no 22 is chairman of the Board of Governors of Lhe Fedemd Re- 23 serve System, members she" be appointed 10m smug 9A distinguished economists in the private sector, with spoaial Mam amen 8 1 wnsidcration given to economists in academia, research centers, or mm insfimteg IF flu, an: Mum? 7" 3r (cl Tamas: Each member shall be appointed for the life of the Commission. Ll) --A vacancy in the Conn-mission shall be filled the manner in which the urigimal appointment was madp. lo) ch shall bc mud at a rate equul in the daily equivalent of the maximum annual rate 10 of basic pay payable for level IV of Execudve Schedule ll undar semen 53l5 of Lido 5, Umted Stalks. Onde, for each 1: day (including travel time) mm; the member is 13 engaged the actual performance of duties vested in the 14 Cummission 15 TRAVEL member shall receive 16 navel expenses, induding per diem in lieu of 17 in Accordance with sections 5702 and 5703 of title 5, l8 Uruwd Slams Code. 19 QUORUM--3 members of man 20 constitute a quomm but a lesser numbcr may hold heap- 21 ingsv 22 Cmmsoflfme Chairperson of the Com- 23 mission shall be elected by the members from among the 24 members. The term of offica of the Chairperson shall be 25 for the life of mal.lm mum ms 9 (1) Commissiun shall meet at the 2 call unlit: Chaimarsou. 3 SEC. 7. STAFF. 4 DERECTURV ~Tl'lc Commission shall have a Dime- 5 in} who shall be appointed by the Commission The Direc- 6 101' shall be paid at a rate not in emeed the rzic of basic 7 paw payable for level 1V of the Executive Schedule 5 (hi the approval at [111' Cc-uimxssiozi, 9 ma Director may appoint and (is the pay of addifilmal 10 imsonnel as the Director considers appropriate 11 APPLICABILITY m: CERTAIN SERVICE 12 Director and stuff of the Commission may 13 be appointed without wizard to [1:2 provisions of tiile 5, 14 Uniiul States Code, governing appointments in the win>> 15 peim'vc swine. and may be paid William. regnrd to (he 16 provisions of chapter 51 and subchamer 111 of chapter 53 17 of dual. title relating to classifiuatirm and General Salisdulc 18 my races excep: that an individual so appointed may not 19 receive my in excess of the annual me cf basic pay pay>> 10 able for level IV of (lie Exnuucive Schedule. 21 sizes-POWER: 22 HEARINGS Commission 23 may, for the purpose of carrying out this Act, bean 7.4 ings, sit and act at times and places, take testimony, and 25 receive cvidcuoe as the Commission considcis appropriate 10 1 POWERS on MEMBERS AND mem- her or agent of the Comnissiuu may, if authorized by the Farm-mission, take 811)! action which the Commission is my dim-ind take hythis section. 3 4 5 OBTAINING OFFICIAL DATA The Commission 6 may secure directly from any department or agency of the 7 United States information necessary (0 enable it to can-y 8 mi this Act Upk'n rmnest of (119 Chairperson of :he Com- 9 mission, the head of the department or agency shall fur- 0 that, information to the Commission 11 Minis-The Commission may use iho United 12 States midis in tho same manna and under the same con- i; ditions as other departments and ngendes of the United 14 States. 15 SEC, 9, REPORTS, 16 Rsros'rf'riie Commission shall snb- 17 min to the Congress an interim report nor ioier ghan the 18 expiration of the Lyenr period beginning on the date at 19 the enactment of this Act. The interim report shall 20 contain-- 21 (1) a detniied statement of the findings of the 22 Commission pursuant to paragraphs (1) and (2) of 23 section 3; 24 the specific policy scenarios proposed by the 25 Commission under section and mm was 11 1 (3) any other information that the Commission 2 considem appropriate. 3 FINAL Commission shall submit 4 A final report to the Cangress not later than the expiration 5 of the Zyear period beginning on the date of the enact- 6 meut ofthis Act, Tim final report shall cantmi 7 (1) a summary of the report submitted 8 under subsecuoz'. 9 a statement of the> findings of the 10 Commission pursuant to and (5) of 11 secu'nn 3; 12 Any of the Conunissinn for 13 legislmon or administmuve action, and 14 (4) any other ur recommendations 15 the Commisxinn uumxder; appropriate. 16 ssc' mummu'zox. 17 The Commission 511an (animate 30 Answer nib>> 18 mittmg us final repox: 19 SEC 11. Amnonxu'uou 0F APPROPRXATIONS. 20 There are authorized to he fipproprlatefl such sums 21 as maybe necessanr to carry out this Act. 22 SEC. 12. BUDGET ACT 23 Any spending authority (as defined in EA (A) and (C) of sechun 401(c)(2) of the Congressional 5 Budget Act of 1914 (2 US C. 651(c)(2)(A) and (Cm Mam-3mm undar this Act shall be effective only to such extent and 2 in such amounts as are provided in appropriation Aats. mm u, use Emory] A Cc: mmneuy isms: Mam wnnemon Suukn: NAM Climaxe Change Task Force Members Invned to a Panel Discus sion on "Creams lor Early Redumons' on Fnday' April so TO Climate Changs Task Folca Members FROM: Mavshall Whflenlon' VICE Premier" Resumes and Regulauon You are inv'nedto a panel discuss'm hosasd by we NAM at me Forbe Magazme Suoelwnlavance an Friday (Anvil 30) mm 151011-45 am. at me CaonulHiIlon,1001 1 3mm, NW Washington m: It Isllefi' solang as you lsaveme conveyance mommy afler the panel mscussmn (or else may will Chang larthe lunch and perhaps more), Yhetoplc Is 'Volumaly Greenhouse Gas Mmgalkm' lncenlives vs. Panehsls Includav David Gavman Chid Ol Slafl Cu! SEnalul Prolessov Lash' George Mason University School 01 Law Daniel Gagnlel. Vice Plessdem. Ahlrs, ALCAN Dan Dellch' Professional Stall Mamben Senate Envnonmem and Publlc Works modems ma Hope to see you metal Klmberly D. Brooks Exeerve Mss'am Rssourcas' Environmem and Regulalion Policy Namnal ol Mamflamvers (202) 5374150 kbmoks@nam mg