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Climate Issues; Sen Ag Committee Hearing; Biofuels; and Trade
Climate Issues
Lisa Lerer reported yesterday at Politico.com that, “It’s been a bad few weeks for the Obama administration when it comes to climate change, as the White House has found itself trapped between a stalled Senate and constant hammering from world leaders on a lack of leadership on global warming.
“On Monday, the administration hit back.
“‘It would be a mistake to conclude that the international community’s failure to reach a final treaty in Copenhagen is due to a lack of domestic legislation in the United States,’ said a senior White House official, who briefed reporters on the condition of anonymity.”
Ms. Lerer indicated that, “The United States, said officials, plans to propose a near-term emissions reduction target as part of a ‘meaningful submission’ the country will present at the talks.”
Yesterday’s article added that, “U.S. negotiators are holding out hope that a bipartisan effort by Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joe Lieberman (I-Conn.) will give them some momentum heading into the climate talks. The trio of senators is expected to release a framework laying out broad principles of their bipartisan proposal before the conference.”
Reuters writer Jeff Mason reported yesterday that, “A senior Obama administration official told reporters on Monday that Washington would make clear in the ‘next several days’ what it planned to put on the table at the talks, and a greenhouse gas emissions goal — in line with proposals in the U.S. Congress — would be included.”
Mr. Mason explained that, “The senior official said U.S. negotiators will propose an emissions reduction target that takes into account a pending bill in the Senate and a bill passed in the House of Representatives, even though a final law is not complete.
“‘We don’t want to get out ahead or be at odds with what can be produced through legislation,’ the official told reporters.
“‘Whatever number we put on the table will be with reference to what we think can come out of the legislative process.’”
John M. Broder reported in today’s New York Times that, “The lack of consensus in Congress puts Mr. Obama in a tricky domestic and diplomatic bind. He cannot promise more than Congress may eventually deliver when it takes up climate change legislation next year. But if he does not offer some concrete pledge, the United States will bear the brunt of the blame for the lack of an international agreement.”
And Juliet Eilperin reported in today’s Washington Post that, “Todd Stern, the U.S. special envoy for climate change, has said that any emission target the administration identifies during the international talks starting Dec. 7 would be contingent on the adoption of domestic legislation.”
Meanwhile, Sam Youngman reported yesterday at The Hill Online that, “A senior Obama administration official lamented Monday that Capitol Hill has been dominated by the healthcare debate.
“A senior Obama administration official lamented Monday that even as the president has made climate change a priority, Capitol Hill has been dominated by the healthcare debate.
“‘We would have obviously preferred that healthcare would’ve been finished a long time ago, and we would be in an energy debate, but that didn’t happen,’ the official said.”
Bloomberg writer Kim Chipman reported yesterday that, “President Barack Obama will decide within a few days whether he will fly to Copenhagen next month for the United Nation’s talks on curbing climate change, administration officials said today.”
And with respect to U.S. lawmakers and a Copenhagen trip, Alexander Bolton reported yesterday at The Hill Online that, “Healthcare reform and climate change will conflict directly next month when lawmakers from around the world gather in Denmark for the United Nations climate change conference and the Senate debates a healthcare bill.
“As many as 10 senators had planned on traveling to Copenhagen for the conference, which is scheduled from Dec. 7 to Dec. 18.
“But it now appears they may have to stay in Washington to work on healthcare.”
From an international perspective, Danish Ambassador to the United States, Friis Arne Petersen, penned an item that was posted yesterday at The Green Inc. Blog (The New York Times) where he noted in part that, “After the A.P.E.C. summit last weekend in Singapore there has been much writing in the American media, including in The New York Times on November 14, that the climate deal will be delayed and that the upcoming U.N. Climate Change Conference in Copenhagen — COP15 — will ‘punt the most difficult issues into the future.’
“With the deadline fast approaching, everybody asks whether it is realistic that we can reach an agreement in Copenhagen. My answer is: Yes we can reach a strong, comprehensive and global agreement next month.
“And let me reassure you: the Danish government’s goals for COP15 carry the same high level of ambition in terms of substance of the agreement to be reached in Copenhagen. The overall aim of the Copenhagen Agreement will be to conclude a binding agreement that will set the path to limit global warming to a maximum of 2 degrees Celsius, as recommended by science.”
James Kanter reported in today’s New York Times that, “Stavros Dimas, the environment commissioner of the European Union, called on the trade bloc on Monday to pledge to cut greenhouse gas emissions by 30 percent from 1990 levels to demonstrate leadership before a landmark climate change summit meeting in Copenhagen in December.”
Bloomberg writer Jason Scott reported yesterday that, “Australia is seeking to have a carbon trading system approved before next month’s climate summit in Copenhagen. Climate negotiations have been held up by disputes between developed and emerging economies on binding emissions targets.”
Juan Forero reported in yesterday’s Washington Post that, “For nearly 20 years, Luiz Alberto Bortolini cleared trees and planted soybeans as fast as he could, one of many pioneers who turned this barren outpost into prosperous farmland.
“Now, he and hundreds of other successful farmers are replanting trees as part of an ambitious initiative to reduce deforestation. Their goal — to set aside one-third of their farms for native vegetation — is revolutionary in a region long resistant to environmental controls.”
The Post article added that, “The initiative, driven by the market and by new pressure from regulators, comes as the government considers proposals to dramatically reduce the rainforest destruction that has made Brazil a leading producer of greenhouse gases. Earlier this month, Brazil said it would cut emissions by up to 38.9 percent from projected 2020 levels, a pledge designed to encourage other countries to take major steps at next month’s global warming summit in Copenhagen.”
As the domestic and international debate on climate issues goes forward, Reuters writer Robert Evans reported yesterday that, “Concentrations of greenhouse gases, the major cause of global warming, are at their highest levels ever recorded and are still climbing, the U.N. World Meteorological Organisation (WMO) said on Monday.
“The head of the agency, Michel Jarraud, said the trend could be pushing the world towards the most pessimistic assessments of the rise in temperatures expected in coming decades and said this underlined the need for urgent action.”
Senate Agriculture Committee Hearing
A news release issued yesterday by Senate Agriculture Committee Chairman Blanche Lincoln (D-Arkansas) stated that, “[Sen. Lincoln], today said putting the economy back on the right track is her number one priority as Chairman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry. Lincoln held her first field hearing as Committee Chairman today at the University of Arkansas Clinton School of Public Service at the William J. Clinton Presidential Library in Little Rock.
“‘Investing in our rural communities will boost our economy and spur new job creation,’ Lincoln said. ‘With 48 percent of our state’s population living in rural areas, it is critical that this Committee be focused on providing our rural citizens with the tools they need to strengthen and grow their economies. I will use this Chairmanship to reverse the devastating effects our ailing economy has had on Arkansans.’ [Sen. Lincoln’s complete openings statement at yesterday’s hearing can be viewed here].
“The hearing, titled ‘Revitalizing Rural America,’ provided an opportunity for Arkansans to begin a new dialogue with the Senate Agriculture Committee and play a role in shaping the Committee’s agenda moving forward.”
The AP reported yesterday that, “Farmers and farming advocacy groups on Monday detailed the problems that the year’s weather have caused during a U.S. Senate Agriculture, Nutrition and Forestry hearing. The hearing, held at the Clinton presidential library and hosted by the University of Arkansas Clinton School of Public Service, was the first held in Arkansas since Sen. Blanche Lincoln took over as committee chairman earlier this year.
“Lincoln has introduced legislation along with U.S. Sen. Thad Cochran, R-Miss., that would provide an estimated $1.3 billion in direct payment assistance to producers in counties declared primary disaster areas by the U.S. Department of Agriculture.”
DTN Ag Policy Editor Chris Clayton reported yesterday (link requires subscription) that, “Lawmakers and farm groups thought they had solved the problem of farmers constantly asking for disaster aid by creating a permanent disaster program in the 2008 farm bill.
“Yet, nearly 18 months after final passage of the farm bill, USDA hasn’t come out with final rules for the Supplemental Revenue Assistance Program, or SURE, and the chairman of the Senate Agriculture Committee is now pushing to use bank bailout money for an ad-hoc disaster bill to help farmers dealing with disasters, including in her home state.”
Mr. Clayton pointed out that, “Several farm groups wrote a letter last week to [Sen. Thad Cochran (D-Mississippi)] stating their support for the legislation. The American Soybean Association issued a news release on Monday, stating ASA had joined with the National Cotton Council, Southern Peanut Farmers Federation, USA Rice Federation and the U.S. Rice Producers Association in backing the effort.
“The groups stated in their letter that direct payments would be more efficient than using SURE to pay farmers. ‘The payments would be limited to counties with a Secretarial disaster declaration. This delivery mechanism offers the advantage of delivering timely assistance for yield and quality losses with minimal administrative burden on USDA. We understand there will necessarily be alternative means of providing assistance to specialty crops and other sectors,’ the letter stated.”
Recall also that last the American Farm Bureau Federation indicated in a news release from last week that, “Farmers and ranchers in many areas of the nation have been hit hard by late planting and a protracted, wet harvest season and they would benefit greatly from the Agriculture Department maximizing farm bill emergency assistance programs, according to the American Farm Bureau Federation.
“‘Farmers are experiencing both quality and quantity losses and many still do not have crops out of the fields,’ AFBF President Bob Stallman wrote in a letter to Secretary Tom Vilsack.”
With respect to harvest progress, John Perkins reported yesterday at Brownfield that, “As of Sunday, 94% of soybeans are harvested, compared to the five year average of 97%. Except for Kansas, Missouri, North Dakota and Tennessee, all of the major U.S. production states are at least 90% harvested.
“The corn harvest is 68% complete, compared to 94% on average. In contrast to soybeans, only four of the major U.S. production states are more than 90% harvested.”
The U.S. Department of Agriculture’s complete Crop Progress report from yesterday is available here.
Dave Russell reported yesterday at Brownfield that, “Like many others, Clark Howey is trying to wrap up the fall harvest. But last week’s rain which dropped between 3 and 4 inches isn’t helping. Howey, who farms in Tippecanoe County Indiana, southwest of Lafayette described field conditions for Brownfield.
“‘They’re awful, they are just awful, I’m sitting here right now looking out the windshield of the combine and you can see where the combine started to sink and I’ve backed out four times, I go up to the edge where it gets mega soft and I back out of it,’ said Howey. ‘It’s terrible for the fields, but what are you gonna do.’”
Biofuels
Reuters writer Ayesha Rascoe reported last week that, “U.S. ethanol production could eventually top 14.5 billion gallons a year, up 16 percent from output capacity at the beginning of 2009 and enough to blend 10 percent of the fuel into every gallon of the nation’s gasoline, the U.S. government said on Wednesday.
“U.S. ethanol output capacity stood at almost 12.5 billion gallon a year at the start of 2009, the Energy Information Administration said in its weekly petroleum report. But with capacity outstripping demand, only about 10.6 billion gallons of capacity was in operation at the start of the year.”
The article noted that, “A federal law requiring a certain amount of renewable fuels be blended into the nation’s gasoline supply has boosted demand for ethanol in the United States.
“The federal mandate requires 10.5 billion gallons of mostly corn-based ethanol to be blended with gasoline this year, rising to about 13.2 billion gallons by 2012.”
Philip Brasher reported in Sunday’s Des Moines Register that, “In two short years, the hopes for next-generation biofuels have gone from bright to downright gloomy.
“In late 2007, Congress passed the first mandates for biofuels made from crop residues and other sources of plant cellulose. The targets were to start at 100 million gallons next year and rise to 16 billion gallons by 2022.”
Mr. Brasher noted that, “As it turns out, production won’t come close to that modest 100 million-gallon mandate next year, and the 250 million-gallon target for 2011 is a mirage as well. By 2012, when the mandate reaches 500 million gallons some of the earliest plants may be just coming on line – if the projects finally get started over the coming year.
“Developers are struggling to get the capital to start construction. The economic recession has played a big role in discouraging investors. Federal tax credits, for example, have little attraction to investors who have little income to be taxed in the first place.”
The Register article indicated that, “But industry officials, who gathered in Washington last week for an annual cellulosic biofuels conference, also are pointing the finger at the federal government, complaining that the financial restrictions for federal loan guarantees are impossible to meet. These next-generation biofuels plants will cost at least four to five times as much to build as a conventional corn ethanol plant.
“Two departments, Energy and Agriculture, both offer loan guarantees for advanced biofuels, but neither is doing much business. As many as 10 applicants have approached the Energy Department, but only one project is in negotiations with the agency – a combination of BP Biofuels and cellulosic fuel developer Verenium Corp., according to officials with the Biotechnology Industry Organization. The two companies are seeking a loan guarantee of about $250 million to finance a 36 million-gallon-a-year cellulosic plant in Florida.”
The “Washington Insider” section of DTN reported yesterday (link requires subscription) that, “The Environmental Protection Agency continues to work against a Dec. 1 deadline for making a decision about whether to increase the maximum ethanol blend rate for non-flex-fuel vehicles from the current 10 percent level to as much as 15 percent, as requested by Growth Energy. EPA over the past few months has indicated that it would like additional time for studies to be completed regarding this issue, notably how a blend increase would affect cars with over 120,000 miles on their odometers.
“Some sources report that EPA is considering allowing up to a 15 percent maximum blend beginning with 2001 model cars. If so, that would equate to around 80 percent of all cars on the road today. It also is possible EPA could make its decision contingent on final results from ongoing studies due to be released next spring into early summer, meaning the agency would miss next week’s deadline.
“Other sources are saying if EPA chooses to announce the blend level will remain at 10 percent, Growth Energy or someone else likely would resubmit the request for an increase, thus starting the process all over. That, in turn, would allow enough time for some of the pending studies to be completed for EPA to use in its decision-making.”
Trade
David R. Francis reported last week at a Christian Science Monitor Blog that, “Prospects for reaching a deal in the eight-year old Doha Round of global trade negotiations were remote; now, they’re truly distant.
“On Nov. 30, trade ministers of the 153-nation World Trade Organization (WTO) hold their ministerial conference in Geneva, but their agenda doesn’t even mention negotiations. It is officially defined as a ‘housekeeping’ session. Since they only meet once every two years, that’s a little like hosting an Olympics without scheduling any sporting events.
“An impediment to a deal is the United States, which is a switch from the past…[P]art of the problem today is that the Obama administration is up to its neck in other issues, including healthcare reform, financial-markets regulation, labor issues, global climate, and what to do with the Bush tax cuts when they expire, says Harald Malmgren, a Washington consulting economist who helped negotiate the successful Kennedy Round of trade talks decades ago. So trade matters are going to have to wait.”
However, Reuters writer Jonathan Lynn reported on Friday that, “Negotiations on agriculture in the World Trade Organisation’s long-running Doha round are making progress in a number of sensitive areas, the chairman of the farm talks said on Friday.
“WTO members are looking in detail at how a safeguard to protect farmers in poor countries from a surge in imports — the issue over which talks in July 2008 seeking a breakthrough in Doha collapsed — might work in practice, New Zealand’s WTO ambassador David Walker told reporters.
“And talks on reconciling the conflicting demands of different groups of developing country exporters of tropical products such as fruit and sugar are also going well, Walker, who chairs the farm talks, said after a meeting of WTO members.
“These topics are among the most complicated that need to be solved for the WTO’s 153 members to reach an outline deal, known in trade jargon as ‘modalities’, in the 8-year-old Doha talks.”
Keith Good
