Friday, February 5, 2016

Democrats block key energy bill package as Flint water crisis intensifies

Hopes that a major energy reform bill would secure a rare safe passage through Congress were dashed yesterday, after Democrats blocked the legislation amid an ongoing row over financial aid to the Michigan town of Flint, which is suffering a water contamination crisis.

Democrats want a $600m aid package written into the Energy Policy Modernization Act to help the town of Flint replace water supply pipes, after corrosive water from the Flint River caused lead from the town's ageing water pipes to leach into the municipal supply.

Senators and staff are now expected to work through the weekend to resolve the crisis and pass the bill, which promises to deliver a raft of energy market reforms, including new energy efficiency measures and grid upgrade programmes that would make it easier for renewable projects to connect to the grid.

The Bill has engendered a rare display of bipartisanship from the US Congress, after it was developed by Republican Senator Lisa Murkowski and Democrat Maria Cantwell and secured cross-party support through the committee stages of the legislative process.

However, the spirit of collaboration seemed to be on the verge of breakdown on Capitol Hill yesterday, with Republican senators reportedly accusing Democrats of "gamesmanship" after they rejected a compromise offer of aid for Flint from Senator Murkowski.

The news came as President Obama yesterday unveiled radical new plans to impose a $10-per-barrel tax on oil production to help fund a new $32.4bn green transportation plan.

Transport currently accounts for 30 per cent of the US' greenhouse gas emissions. Under the new plan, the oil levy would be used to fund investments in clean vehicle technology and fund the rollout of green transport infrastructure.

The fee for oil companies would be introduced gradually over the next five years, the White House said in a briefing note, which it said would create a "clear incentive" for the private sector to pursue cleaner alternatives to oil-based transport.

However, it is unlikely the plan will pass unscathed through Republican-controlled Congress, with House Majority Whip Steve Scalise warning the proposals would be "dead on arrival" in the House. "The House will kill this absurd proposal, and instead focus on lowering costs and growing our economy," he warned in a statement.

Obama is also facing continued opposition from conservative-controlled states over his flagship climate legislation, known as the Clean Power Plan, which requires individual states to introduce policies to cut carbon emissions from their power sectors.

A coalition of 27 US states, led by West Virginia and supported by fossil fuel industry groups, has mounted a legal challenge to suspend the legislation from taking effect until a final ruling on its legality is heard in June this year.

Yesterday administration officials urged the Supreme Court to reject the "extraordinary and unprecedented" attempts to block the plan. In a briefing letter to the high court Solicitor General Donald Verrilli said the applicants had demonstrated no legal precedent for granting a stay of a general regulation before a full case has been heard.

The states' application was refused last month by the Court of Appeals for the District of Columbia, leading them to appeal the refusal in the Supreme Court. The court's decision is expected within the next few days.


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