Rep. Waxman hits back on climate change

Rep. Henry Waxman, fresh out of a White House meeting with President Obama on Tuesday, pushed back against those who have suggested climate change legislation might need to be put on the backburner.

Waxman (D-Calif.) said his Energy and Commerce Committee expects to mark up a climate change bill by the Memorial Day recess and present a bill for Obama’s signature by the end of the year. He also said Obama is fully supportive of that timetable.

{mosads}“We said we’re moving it this year, and he didn’t object,” Waxman said following the meeting between members of his committee and Obama.

White House press secretary Robert Gibbs bolstered Waxman’s comments, stating in his press briefing that progress on a climate change deal was made during the meeting and that legislation is “clearly … a major priority of the president’s.” Gibbs said Obama is “hoping to get something done this year.”

Questions about the momentum behind climate change have been raised as the administration and Congress have turned their sights to healthcare reform this summer. While Democrats generally agree on the need to move forward on healthcare reform, they are much more divided on climate change.

Rep. Chris Van Hollen (D-Md.), a member of House leadership who is also the chairman of the House Democrats’ campaign arm, has said the House should proceed cautiously on climate change. In an interview last month with The Hill, he suggested a vote might not take place this year.

Other committee members who attended the White House meeting said Obama’s message was to move full steam ahead with climate change legislation and healthcare reform.

“The president talked about the importance of the moment. He said if we can point to accomplishments on healthcare and global warming, the American people will appreciate that,” said Rep. G.K. Butterfield (D-N.C.).

Obama laid out four principles for climate change legislation in the meeting, according to Rep. Jan Schakowsky (D-Ill.)

He said lawmakers must acknowledge that there will be a cost, and make sure everyone gets something back.

The legislation must be predictable, which is something business needs. Regional impacts must also be taken into account, and the legislation should cooperate with other countries.

“He said if Congress could get the Clean Air Act done in 1990, then we can get this done now,” Schakowsky said.

Obama offered support for a bill without leaning on critics who worry that legislation restricting carbon emissions could hurt industries and eliminate jobs, according to Rep. Rick Boucher (D-Va.), who is skeptical of legislation on climate change.

“What he really wants on his desk is a bill, and that’s what he told us,” Boucher said. “The White House is encouraging us to come to consensus.”

He said those attending the meeting did not get into the specifics of their positions, and that the White House offered no suggestion it would become involved directly in negotiations.

“I stressed to him the need to understand regional balance — that some areas of the country are dependent on fossil fuels — and the need to consult with industry,” Boucher said.

Waxman said the committee is trying to present a unified front as it marks up the bill, in an effort to show that more liberal Democrats can find compromise with lawmakers from auto-producing states like Michigan.

{mospagebreak}“We want to be together, and we want to succeed with this legislation,” he said.

That effort received a boost by way of an announcement of a “cash for clunkers” deal on Tuesday between Rust Belt Democrats with auto plants in their districts and Democrats who lean toward environmental interests.

Under the program, consumers can trade in gas-guzzlers and receive vouchers worth up to $4,500 to pay for new, more fuel-efficient cars and trucks.

{mosads}“Reaching an agreement on the cash-for-clunkers policy is the first of many resolved disagreements we will encounter in moving a new energy policy through Congress,” Rep. Jay Inslee (D-Wash.) said in a statement.

“This deal proves that the committee and the Congress can work together to find a consensus on the overall plan,” Inslee said.

Waxman said the committee is continuing to work out some sticking points on the legislation, including the tenuous cap-and-trade proposal, adding that Democrats on the committee are “trying to be mindful” of varying regional interests, increased energy costs for ratepayers and the effect the plan could have on businesses.

Electric utilities, oil refiners and energy-intensive industries like steel and paper manufacturers are pressing Congress to provide them free emissions credits to help minimize the costs of meeting the overall cap. But every allowance given away free means less revenue for the government from an auction. Obama’s climate plan, as sketched in his budget blueprint released two months ago, called for a 100 percent auction. It would use the bulk of that revenue to pay for a middle-class tax cut, and a smaller portion to ease the burden on businesses.

Finding consensus on how many credits should be given away and to whom will be a key to passing the overall cap-and-trade bill. Gibbs said the president believes “that consumers and communities should be compensated if during the transition period there are any costs associated with reducing carbon emissions.”

But Gibbs also hinted at Obama’s willingness to compromise on a 100 percent auction. “He also believes regional impact should be taken into account and addressed, and that our trade-sensitive industries need to be protected.”

House Republicans have railed against several components of the president’s bill, calling it a national energy tax that comes even as gasoline prices have started to climb ahead of the summer driving season.

Obama’s meeting with the committee Democrats came as a bipartisan group led by Reps. Neil Abercrombie (D-Hawaii) and Tim Murphy (R-Pa.) put forward a proposal that could siphon off votes from any consensus on energy issues.

Abercrombie said that the cap-and-trade proposal was “stalled” in committee and that his group’s proposal represented the best way to move forward. The proposal would accelerate offshore drilling and put much of the revenue toward developing more environmentally friendly technology.

“We are aiming for complete energy independence,” Abercrombie said.

Waxman, however, said Abercrombie’s characterization of cap-and-trade as “stalled” was “incorrect.”

Jim Snyder contributed to this story.