White House: Immigration Is 'Important' And Energy Is 'Critical,' But Reid 'Sets The Agenda' 4

Posted by Wonk Room Tue, 27 Apr 2010 15:42:00 GMT

From the Wonk Room.

Although both immigration and climate reform are top priorities for the Obama administration, White House domestic policy adviser Melody Barnes said, it is Senate Majority Leader Harry Reid (D-NV) who “sets the agenda.” MSNBC’s Chuck Todd questioned Barnes Monday morning over the conflict between Reid and Sen. Lindsey Graham (R-SC) that derailed the expected unveiling of comprehensive climate legislation Monday. Barnes said that energy reform – what President Obama has called one of his “foundational priorities” – is “critical to this country,” while immigration reform is “important.” However, she repeatedly indicated that the responsibility for moving forward lies with Reid:
MELODY BARNES: What the president and administration want is to work with Congress, Republicans and Democrats in Congress to address these big issues. The Senate Majority Leader will make a decision how to go forward. Immigration reform is important. We also know that comprehensive energy reform is critical to this country. We have to get away from reliance on foreign oil. We know we can create clean energy jobs. So both of these are top priorities for this president. We’re going to be working with the Senate.

CHUCK TODD: Can either be signed this year?

BARNES: We’re hoping to move forward with the majority leader as he sets the agenda.

Watch it:

Reid’s staff had leaked to reporters that the majority leader wanted the Senate to consider an immigration bill before climate legislation, a statement that made little sense other than a response to local political pressures. As Graham, who has been the lead Republican on both issues, voiced his displeasure, it seems neither Reid nor the White House reached out to quell his anger. Graham and Sen. John Kerry’s (D-MA) American Power Act is ready to be unveiled for direct floor consideration, but immigration reform requires “significant committee work that has not yet begun”—as Reid said. President Obama has been keeping his pledge to immigration reform advocates to raise the issue with Republicans like Sen. Scott Brown (D-MA) to get on board with Graham and Sen. Chuck Schumer’s (D-NY) immigration effort, but the two bills aren’t on the same timetable.

In addition to the fealty of most Republicans to killer fossil industries, Democrats have competing camps on the best pathway to energy action, with senators like Sen. Byron Dorgan (D-ND) and Sen. Maria Cantwell (D-WA) pushing for alternate strategies to President Obama’s comprehensive climate reform. Reid has waffled on whether he would be willing to risk conflict with Democratic committee chairs by taking climate reform straight to the floor. This potential conflict with senators like agriculture chair Blanche Lincoln (D-AR) and finance chair Max Baucus (D-MT) would likely have to be mediated by the President, even as Graham would have the responsibility of locking down Republican votes other than himself.

Transcript:

TODD: I understand that there’s this idea that everybody here wants to walk and chew gum at the same time but we will know Washington sort of can handle one big issue at a time. Financial reform at some point feels like it’s going to wrap interrupt next couple weeks. It sounds like energy, immigration, can you really expect this town to handle both at the same time or is there going to have to be one over the other?

BARNES: When we walked in the door we inherited big problems. I think what this president has shown is he can handle a number of challenges at the same time.

TODD: Maybe he can but Congress is a different story. We know they have their priorities. I guess what I’m asking, would the White House accept immigration going before energy?

BARNES: What the president and administration want is to work with Congress, Republicans and Democrats in Congress to address these big issues. The Senate Majority Leader will make a decision how to go forward. immigration reform is important. We also know that comprehensive energy reform is critical to this country. We have to get away from reliance on foreign oil. We know we can create clean energy jobs. So both of these are top priorities for this president. We’re going to be working with the Senate.

TODD: Can either be signed this year?

BARNES: We’re hoping to move forward with the majority leader as he sets the agenda.

TODD: If he’s picking immigration, he’s setting the agenda.

BARNES: He’s the majority leader.

Whisper Campaign Derails Climate Bill Rollout 7

Posted by Wonk Room Mon, 26 Apr 2010 15:21:00 GMT

Lindsey GrahamThe unveiling of green economy legislation by Sen. John Kerry (D-MA), Sen. Joe Lieberman (I-CT), and Sen. Lindsey Graham (R-SC) Monday has been indefinitely postponed, following a whisper campaign that Senate leadership preferred tackling immigration reform instead. Below is the timeline of the last four days, in which political reporters quote anonymous “Democratic officials” and “Senate Democratic aides” to promote the rumor:

Wednesday, April 21: Senate Majority Leader Harry Reid (D-NV) and House Speaker Nancy Pelosi (D-CA) meet. Based entirely on comments from anonymous “Senate Democratic aides,” Roll Call’s John Stanton claims that “Democratic leaders are pushing ahead with plans to move comprehensive immigration reform legislation this year — even if it means punting on energy legislation until next Congress.” The Hill’s Ben Geman cites “a Democratic aide” to claim Pelosi said she is “fine” with “the Senate taking up immigration reform before climate change legislation.” The Wall Street Journal’s Laura Meckler cites “three Democratic officials” to claim “both leaders said they would put immigration ahead of energy on their priority list.”

Thursday, April 22, Earth Day: The Associated Press’s Laurie Kellerman and Matthew Day cite “two Democratic officials” to repeat the immigration-first rumor.

Pelosi holds a press conference, and is asked about the rumor. Pelosi responds that “energy security and addressing the climate crisis is the flagship issue of my speakership,” notes that the House has “already passed our energy bill,” and “if the Senate is ready with an immigration bill, we don’t want anybody holding it up for any reason, and we would be pleased to welcome it to the House.” Fox News’ Chad Pergram interprets her remarks to claim “Pelosi Okay On Delaying Climate Bill in Lieu of Immigration.”

Graham tells reporters that “If immigration comes up then that’s the ultimate CYA politics,” and “It destroys the ability to do something like energy and climate” to jump to immigration reform legislation, because “We haven’t done anything to prepare the body or the country for immigration” and “business and labor are not together on a temporary worker bill.”

In a story by Politico’s Marin Cogan about Graham’s comments, Sen. Barbara Boxer (D-CA) “declined to say which bill she’d prefer be taken up first.”

House Majority Leader Steny Hoyer (D-MD) tells the Christian Science Monitor’s Linda Feldmann, “I don’t know that anybody made a determination in the discussions I have had with leadership that immigration is more important than energy,” and agrees with Graham’s assessment, “I am not sure the Senate can move an immigration bill.”

Friday, April 23: A “Democratic aide” tells Politico’s Kasie Hunt: “Immigration is gaining steam; climate change may suffer.”

“I think these are separate issues on separate legislative tracks,’’ Lieberman says in a conference call. “One will not adversely affect the other.” Hartford Courant’s Daniela Altimari reports “Lieberman said Senate Majority Leader Harry Reid assured him that he will bring the climate and energy bill to the floor, likely in late May or early June, barring any obstacles.”

Saturday, April 24: Graham sends a letter to business, religious and conservation leaders that “I will be unable to move forward on energy independence legislation at this time” because of “what appears to be a decision by the Obama Administration and Senate Democratic leadership to move immigration instead of energy,” unless “their plan substantially changes this weekend.”

Reid, the Washington Post’s Juliet Eilperin writes, “declined to assure Graham on Saturday that he would put immigration behind energy in the legislative lineup,” responding in a statement instead: “I will not allow him to play one issue off of another, and neither will the American people.” The Hill’s Eric Zimmerman interprets Reid’s statement to claim he “said today that Democrats might push climate legislation before immigration reform.” Reid’s statement blames Republicans, specifically “the tremendous pressure he is under from members of his own party not to work with us on either measure.”

The White House “also declined to indicate whether it would address Graham’s concerns,” issuing a statement by climate advisor Carol Browner saying, “We believe the only way to make progress on these priorities is to continue working as we have thus far in a bipartisan manner to build more support for both comprehensive energy independence and immigration reform legislation.” Talking Points Memo’s Christina Bellantoni notes Browner says about climate reform, “We’re determined to see it happen this year.”

In the evening, Kerry releases a statement that “regrettably external issues have arisen that force us to postpone only temporarily” the Monday unveiling because Graham “feels immigration politics have gotten in the way and for now prevent him from being engaged in the way he intended.” “Joe and I will continue to work together and are hopeful that Lindsey will rejoin us once the politics of immigration are resolved.”

In summary: although Lieberman and Hoyer attempted to debunk the rumor, Senate leadership and the White House refused to address the rumor of timing spread by anonymous Democratic staffers and officials. Graham, who has also been the lead Republican working on immigration with Sen. Chuck Schumer (D-NY), announced Saturday he would not participate in a bill rollout with its fate on the Senate calendar placed in competition with unwritten immigration legislation.

Senate Budget Committee Passes Gregg Amendment To Prevent Clean Energy Reconciliation 16-6 1

Posted by Brad Johnson Fri, 23 Apr 2010 12:05:00 GMT

E&E News reports on yesterday’s budget hearing:
The committee easily approved, 16-6, an amendment from ranking member Judd Gregg (R-N.H.) that would establish a point of order against using reconciliation for any new program whose spending exceeds 20 percent of the amount of the reconciliation instruction to the committee. In essence, that would mean that any far-reaching legislative program – including climate legislation – would likely violate the provision.

“One would hope that you’re not going to put energy in reconciliation, but if you are it would definitely trip this point of order,” Gregg said.

The point of order could be waved but that would require the support of 60 senators, negating the procedural advantage of moving a bill though the filibuster-proof reconciliation process.

A number of Democrats, including Conrad, had said even before yesterday’s action that there appeared to be little interest in the Senate in moving climate legislation through reconciliation. Indeed, Conrad and five other committee Democrats voted with the Republicans on Gregg’s amendment.

Lugar And Voinovich Float Alternative to Comprehensive Climate Reform 2

Posted by Wonk Room Thu, 22 Apr 2010 15:38:00 GMT

Lugar-VoinovichSenators John Kerry, Joe Lieberman, and Lindsey Graham are working with the White House, environmentalists, and industry to craft comprehensive climate and clean energy legislation, which they plan to unveil on Monday. But Sen. Dick Lugar (R-IN) and Sen. George Voinovich (R-OH), both of whom have admitted the threat of global warming, today announced “a narrower competing bill” that resembles the weak legislation passed out of the Senate energy committee last year:

George V. Voinovich of Ohio and Richard G. Lugar of Indiana are developing an energy-only bill that would mandate new renewable and nuclear power production without imposing cuts on carbon emissions.

Lugar first unveiled this plan on March 30, which looks like something from the Carter era. This approach, which has also been floated by energy committee members Sen. Byron Dorgan (D-ND), Sen. Jeff Bingaman (D-NM), and Sen. Lisa Murkowksi (R-AK), has been described by Graham as “half-assed.” Voinovich believes that subsidy-based legislation that fails to reduce global warming pollution is more “doable” than comprehensive reform that pays its own way by putting a price on carbon pollution:
I’d like to get something done. But I’m not sure it would meet the standards of the environmental groups or what Sen. Kerry would like to get done. I’d like to do the doable — move it down the field while I can.

More problematically, Voinovich also announced today that climate legislation “must include a comprehensive preemption provision that goes well beyond language included in previous climate bills” to get his support, a poison-pill stance that would derail the progress made by states across the nation to build a green economy.

Sen. Maria Cantwell (D-WA) and Sen. Susan Collins (R-ME) have been jockeying for attention with a bill that addresses the other half of energy reform, a climate-only package with weak targets known as the CLEAR Act.

These senators are participating in a complex dance – if President Obama and the public throw their weight behind real action, then these senators can take credit when elements of their bills appear in the Kerry-Graham-Lieberman legislation. However, if momentum stalls under the weight of polluter lobbying and Beltway indifference to the climate crisis, they can instead say they offered a “pragmatic” alternative.

Massey Energy Criticizes President Obama 4

Posted by Brad Johnson Thu, 15 Apr 2010 20:58:00 GMT

In a corporate statement released today, coal company Massey Energy criticized President Barack Obama for saying that “owners responsible for conditions in the Upper Big Branch mine should be held accountable for decisions they made and preventive measures they failed to take.” Massey called the President’s remarks “regrettable,” and say that Mr. Obama “has been misinformed.”

Today’s statements by the White House about the Upper Big Branch tragedy are regrettable. We fear that the President has been misinformed about our record and the mining industry in general.

As to our record, we note that in 2009, under this administration, MSHA presented Massey Energy with three “Sentinels of Safety” Awards – the highest number of such awards ever received by one company in a single year.

There has been criticism regarding the backlog of violations that have been appealed. There have been violations at Upper Big Branch that the Company does not agree with and a number of those violations have been appealed. The percentage of violations appealed at UBB and Massey is similar to that for the industry as a whole.

The enormous backlog of appeals waiting to be heard has been frustrating to all involved. We urge Congress to appropriate the funds necessary to enable this system to work better by helping government regulators to resolve the enormous backlog at MSHA. Regardless of the backlog, however, it’s important to understand that all violations must be fixed and are fixed to the satisfaction of state and federal agencies before mines are allowed to continue operating. Most violations are fixed the same day they are discovered.

Massey believes in safety, accountability and responsibility. We seek the truth in the ongoing investigations and are cooperating with federal and state agencies to determine the cause of the tragic accident at Upper Big Branch Mine. Unfortunately, some are rushing to judgment for political gain or to avoid blame. Our goal is to communicate transparently as the facts unfold.

President Obama's Remarks on the Massey Energy Coal Mine Disaster 2

Posted by Brad Johnson Thu, 15 Apr 2010 18:51:00 GMT

Today, President Barack Obama discussed the initial findings of an investigation by Secretary of Labor Hilda Solis, Mine Safety and Health Administration chief Joe Main, and MSHA Administrator for Coal Mine Safety and Health Kevin Stricklin:

THE PRESIDENT: Good morning, everybody. On April 5th, the United States suffered the worst mine disaster in more than a generation. Twenty-nine lives were lost. Families have been devastated. Communities have been upended. And during this painful time, all of us are mourning with the people of Montcoal and Whitesville and Naoma and the Coal River Valley. The people of West Virginia are in our prayers.

But we owe them more than prayers. We owe them action. We owe them accountability. We owe them an assurance that when they go to work every day, when they enter that dark mine, they are not alone. They ought to know that behind them there is a company that’s doing what it takes to protect them, and a government that is looking out for their safety.

In the immediate aftermath of the tragedy, I asked the officials standing with me – Labor Secretary Hilda Solis, and Joe Main and Kevin Stricklin with the Mine Safety and Health Administration – to lead an investigation into what caused the explosion at Massey Energy Company’s Upper Big Branch mine. I asked them to report back with preliminary findings this week.

We just concluded a meeting, where they briefed me on their investigation. I want to emphasize that this investigation is ongoing, and there’s still a lot that we don’t know. But we do know that this tragedy was triggered by a failure at the Upper Big Branch mine—a failure first and foremost of management, but also a failure of oversight and a failure of laws so riddled with loopholes that they allow unsafe conditions to continue.

So today I’ve directed Secretary Solis, Assistant Secretary Main, and Administrator Stricklin to work closely with state mining officials to press ahead with this investigation—so we can help make sure a disaster like this never happens again. Owners responsible for conditions in the Upper Big Branch mine should be held accountable for decisions they made and preventive measures they failed to take. And I’ve asked Secretary Solis to work with the Justice Department to ensure that every tool in the federal government is available in this investigation.

But this isn’t just about a single mine. It’s about all of our mines. The safety record at the Massey Upper Big Branch mine was troubling. And it’s clear that while there are many responsible companies, far too many mines aren’t doing enough to protect their workers’ safety.

Larry Summers: Nuclear War And Climate Change Are The 'Only Two Ways Mankind Can Affect The Basic Terms Of Life On Earth' 1

Posted by Brad Johnson Tue, 06 Apr 2010 21:21:00 GMT

Below is the text of the remarks from Dr. Lawrence Summers, the Director of the White House’s National Economic Council, to the U.S. Energy Information Administration Conference.

A few months before I came into government, my twin daughters completed their course in AP U.S. history at their local high school and I reviewed for their test with them. There were two aspects of that experience that stuck with me as I thought about my objectives in advising President Obama.

The first is that while I, as a macroeconomist, thought of the 1982 recession as a big deal, thought of the inflation of the 1970s as a big deal, thought about the 1987 stock market crash as a big deal, none of them got mentioned in my daughters’ history course.

On the other hand, they spent six weeks on the events of the 1930s.

And the lesson I took away, coming into office a year ago, was that our first priority had to be making sure that a depression was avoided. Making sure that the vicious cycle of deleveraging and contraction that then plagued the economy was first contained and then ultimately reversed. And so this was remembered as a very disturbing economic fluctuation, but not as the kind of depression that defined an era.

And the evidence, I think, suggests that the President has made very substantial progress with that objective.

  • Fifteen months ago, a depression did not look unlikely as three-quarters of a million Americans were losing their jobs each month.
  • The stock market was, after correcting for inflation, at 1966 levels.
  • And the output was declining at 6 percent a quarter.

Today, we have a long way to go, but a 6 percent GDP loss in first quarter gave way to a 6 percent gain in GDP, according to the most recent statistics.

Markets have risen by 75 percent since last March as conditions have substantially normalized.

And while there are special factors and there will be fluctuations, the economy has begun to produce jobs again: 162,000 last month, the largest increase in the number of jobs in three years.

While we have a long way to go in an economy with 9.7 percent unemployment and $1 trillion short of potential, we are at last moving in the right direction.

As we move in the right direction, as this recovery unfolds, as what economists call the left tail of the distribution recedes in likelihood, it becomes essential that

  • We think about the renewal of the American economy;
  • We think about creating an economy with a stronger foundation for prosperity than the one that we inherited;
  • We invest more and consume less;
  • We technologically engineer more and we financially engineer less;
  • We look to the long view and to the short view less;
  • We compete in the global economy and we win.

To do so, in many areas, will require a change in our gestalt. Not the continuation of existing battles and of existing conflicts, but the reformulation of problems in new ways that permit us to cut across old debates and to as a nation move forward.

It is the accomplishment of those tasks of national economic renewal that are what came through again and again as what history remembered in that history course my daughters took.

Whether it was the land grant colleges and intercontinental railroad of President Lincoln, whether it was the Sherman Act and national parks and much more of President Theodore Roosevelt, whether it was the expansion of the concept of protection so as to save the market economy from itself with Social Security and unemployment insurance and deposit insurance of President Franklin Roosevelt, ultimately the most historically memorable accomplishments are those which renew our market system, which approach problems in different ways, and extend our efforts to create a more stable and more durable and more secure prosperity.

And it is that across a range of areas that will, I believe, define President Obama’s presidency when its history is written.

That was the motivation for the President’s historic battle for comprehensive health reform.

That was the motivation and is the continuing motivation for our efforts to insist that we rebuild our financial system and particularly the way in which it is regulated on a much more secure foundation after all the crises of the last generation.

And it is this approach of a new gestalt, a new view, a new paradigm, and a commitment to renewal that I believe needs to shape our approach to energy policy going forward.

To be sure, energy policy is about much more than economics.

There are only two ways in which mankind can affect the basic terms of life on earth on a planetary scale. One is what happens with respect to nuclear weapons. That’s outside my sphere, but in Prague later this week and in Washington next week we are making substantial progress with respect to the challenge of nuclear weapons.

The other, of course, is with respect to global climate change, where it is an imperative for this planet that we act so as to reduce the risks that current science points up.

Equally, it is imperative that we address the consequences of excessive dependence on oil for our national security. Our dependence on government-controlled oil supplies from the most politically fragile parts of the world represents a serious national security concern. And it’s one that at long last we have to address.

There are others who will speak at this conference who can speak more knowledgeably to those two challenges than I can. So I want to address the rest of my remarks to the relationship between our energy strategy and our broadest economic objectives.

What do I mean when I say reformulate our national energy policy base?

You know, we’ve been talking about the need for national energy policy strategies and the like, probably since the founding of the republic, but certainly with very great frequency and in every presidential campaign since the first energy shock of 1973. Nearly 40 years. And the debate, frankly, has fallen into a series of ruts.

  • Is it going to be energy efficiency and conservation, or is it going to be increased exploration?
  • Are we going to focus on renewable power, or are we going to focus nuclear power?
  • Is our central objective environmental protection, or is our central objective economic progress? * Is our focus the profits for producers, or is it the costs for consumers?

I could give more examples. Those debates have their place and they have illuminated tradeoffs that policymakers ignore at their peril.

But I would say to you that if ever there was an issue where we needed to move from “either/or” to “both/and,” that it is energy.

Instead of debating the relative importance of the priorities of different camps on the left and on the right, of the Southwest and of those in New England, of those oriented to the economy or those oriented to the environment, instead we have the opportunity to move forward by embracing the priorities of multiple groups, by taking an eclectic approach to forming a new energy policy.

For this much is clear from the record of four decades when emissions have gone up, when dependence has increased, and when our goals again and again have not been met.

Which, I ask you, has greater danger going forward: that we will, in the name of comprehensive energy policy somehow do too much that will affect energy markets by encouraging efficiency or encouraging exploration, or that we will again miss the opportunity, that we will again not act strongly enough with respect to a gathering storm?

Read the history of great nations. Read how they succeed and read how they fail. Their ability to mobilize to solve problems before they are absolutely imminent crises is what determines their longevity. That’s why this task of economic renewal is so important broadly. And that’s why I believe it is so important that we move for economic reasons to pass comprehensive energy legislation.

I believe comprehensive energy legislation can contribute to our prosperity in five ways.

First, it will raise demand and create jobs.

Under the Recovery Act:
  • We will double the renewable energy capacity over the next three years.
  • We will make critical investments in transformative technology.
  • We will enhance the energy efficiency of federal buildings by 75%.

What better time is it to make these kinds of investments than now, when we have substantial unemployed resources?

And we are making them in the way that is most cost effective in terms of creating demand to a significant extent. If the government spends a dollar, that is a dollar of demand. If the government lends a dollar with a 10 percent credit subsidy because it is likely to be paid back, then the cost to the government is 10 cents, but the extra demand created can be a dollar before you even get to its multiplier effect as it reverberates through the economy.

That is why it’s so important that at a moment when credit markets are having their difficulties, albeit reduced difficulties, the Recovery Act has made significant credit available to support up to $40 billion in renewable energy and transmission.

Support for energy investment that creates demand and puts people back to work at a time of unemployed resources and excess capacity is the first way that energy policy strengths our economy.

Second, comprehensive energy legislation will reduce uncertainty and increase confidence. The cheapest stimulus program in the world is enhanced confidence.

I first met Ben Bernanke 35 years ago, when we were both graduate students in Cambridge, Massachusetts. His PhD thesis was an important part around exactly this point. He studied the question of the impact of uncertainty on investment. His example, when he talked about his work, was a boiler.

  • If you knew the price of energy was going to be high, you’d be one kind of boiler.
  • If you knew the price of energy was going to be low, you’d be another kind of boiler.
  • If you didn’t know what the price of energy was going to be, you’d stick with your existing boiler for another year, waiting to see what was going to happen to the price of energy.

Until we pass comprehensive energy legislation, that is exactly what we are doing. We are creating an environment in which there is no certainty for someone building a new power plant.

There is no certainty for someone making the commitment to an industrial production process.

There is no certainty for someone thinking about the generation of automobile models after the current generation of automobile models, five or ten years out.

Clarity brings certainty, certainty brings confidence, and that is what moves the economy forward.

I would also say to you also that uncertainty is not just about our own future policy. Look at the full range of the distribution of oil prices as you can infer from options. As long as we are as dependent on foreign oil as we now are, there is a substantial uncertainty about the range of outcomes, and that too discourages investment, reduces confidence, and slows our economy relative to what we could have achieved.

Third, comprehensive energy legislation will reduce reliance on heavy-handed regulation and increase reliance on market forces.

This is true in our country and this is true around the world.

You know, the first rule of holes is that when you’re in a hole, you should stop digging. In that spirit, the first principle of rational energy policy is that when a fuel is associated with all kinds of what we economists call externalities, pollution locally, carbon dioxide globally, national security risks associate with importation, it is a bad idea to subsidize it.

Yet around the world, fossil fuel subsidies exceed $300 billion a year – $300 billion a year – and account for 12 percent of global greenhouse gas emissions.

I think there’s a chance that when the history is written the most important thing that happened in the last year was the agreement by the G20 countries that contain the vast majority of the world’s GDP to eliminate over time their energy subsidies. It doesn’t go far enough – ultimately the price of carbon is going to have to rise – but an elimination of those $300 billion of energy subsidies is a substantial step forward towards allowing market forces to operate in the energy arena.

It’s not just eliminating subsidies in other countries. It’s what we do here. Now I’m an economist, so I’m a bit of an evangelist for markets. But anyone who thinks about our energy policy debates has to be impressed by the record of the smaller-scale, because this is a smaller-scale issue, but similarly designed sulfur oxide program in the United States.

Many thought it was too hard to introduce a market. Many thought that the right answer was command-and-control legislation. But the fact is that by 2000 sulfur dioxide pollution had fallen nearly below 30 percent below 1990 levels, and the cost was a relatively small fraction of what everybody expected in 1990.

We are going to regulate fossil fuel emissions in the future. Much better than we do it with market based mechanisms than enable those who can economize most cheaply to be the ones who economize.

Allowing market forces to operate is the third reason why this is so important.

Adding flexibility for the private sector will be particularly important with respect to ensuring that we take advantage of the vast increase in our potential natural gas supplies that has been identified over the past several years.

Fourth, the right energy legislation will support what is for the very long run most important for our economy, which is our leadership in innovation.

If what’s true in the short run is that what determines how many people are working is how much demand there is for the products they’re willing to produce, what determines our standard of living in the long run is how productive we are. And that depends on our ability to innovate and bring those innovations to market.

In the nineteenth century, the technologies that reverberated across the economy included the transcontinental railroad, the telegraph, and the steam engine.

In the twentieth, it was the automobile, the jet plane, and, over the last generation, everything associated with information technology.

We can’t know exactly what the next defining innovation will be. It will come in multiple, different sectors. Each one of these technologies has their own story.

But think about maximizing potential and minimizing risk for our country.

Should we not seek to assure our leadership in energy and environmental technology, given their stake in some of the largest problems facing the planet?

That’s why the President’s energy agenda is directed at strengthening the economic ecology that has been so crucial for America’s prosperity – an educated workforce, a fluid environment that stimulates entrepreneurship.

When you think about the strengths and weaknesses of our country, never forget this: we are the only country in the world where, if you have a sufficiently good idea, you can raise your first $100 million dollars before you buy your first suit. That is, and that has been, a crucial feature of our country, and it is something we have to perpetuate.

Enacting comprehensive energy legislation will help our country move down the technological learning curves in key sectors associated with energy efficiency, associated with battery technology, associated with renewables, that will be economically important in the years ahead.

Finally, the emphasis on innovation is tied to my fifth and last point. Comprehensive energy legislation will strengthen our international competitive position. The twentieth century was an American century for many reasons. The size and scale of our country. The quality of our democracy. But I would say to you that it also had to do with our leadership in key science and technology.

The twentieth century was a century of physics. The atomic bomb, the nuclear reactor, the computer, the silicon chip, the transistor, the Internet. We led in all those technologies, and that was crucial to why we led the world.

No one knows exactly what will define leadership in the twenty-first century, but I would suggest to you that making sure that we lead as a developer of the technology is crucial.

I would suggest something else to you. Producers need markets. We are the largest economy in the world. If we use the fact that we are the largest economy in the world, and we will be for a good long time, to ensure that we are also the world’s largest market for innovative energy technology in every sphere, that will create a virtuous circle of innovation and adoption, adoption and innovation, that can be a very substantial source for our country in the new century.

Ultimately, economic policy choices, like investment decisions for a family, involve seeking opportunity and involve minimizing risk.

If you think about the risks to our ecology, the risks to our security, we minimize those risks with comprehensive energy policy.

And if you think about the opportunity to lead in what is really important, we maximize that opportunity with comprehensive energy legislation.

That’s why energy is so crucial a part of President Obama’s economic strategy.

Thank you very much.

WonkLine: April 5, 2010 1

Posted by Wonk Room Mon, 05 Apr 2010 18:59:00 GMT

From the Wonk Room.

“Strong currents on Monday battered a stranded coal carrier that slammed into a stretch of the Great Barrier Reef over the weekend,” as “Maritime Safety Queensland officials warned that if the ship broke in two, some 65,000 tons of coal and 300,000 gallons of heavy fuel oil used to run the ship’s engines would spill into the marine reserve.”

Gov. Brian Schweitzer (D-MT) made a “local officials express support, in writing, for a proposed coal mine in order to receive stimulus money for local projects,” in a letter telling them to voice support for “coal money.”

The World Health Organization (WHO) estimates that “about 150,000 deaths occur annually in low-income countries due to the adverse effects of climate change”, as scientists report that emissions of the greenhouse gas nitrous oxide have surged by 2000 percent from melting permafrost.

WonkLine: April 2, 2010 1

Posted by Wonk Room Fri, 02 Apr 2010 18:57:00 GMT

From the Wonk Room.

The Obama administration “effectively called time today on one of the most destructive industries in America, proposing new environmental guidelines for mountaintop mining removal,” and also finalized new “fuel efficiency and emissions rules for America’s passenger vehicles,” its “first formal step to regulate global warming pollution.”

President Obama visited the Massachusetts’s flood-fighting headquarters yesterday, thanking workers for their round-the-clock efforts.

California remains in a drought despite extreme storms that ” has caused the worst damage and most significant beach erosion in at least a decade,” and China’s drought is “beginning to erode power production capacity.”