energy companies divided on climate change bill
In Congress, the debate over energy legislation is once again heating up. Unlike previous efforts to enact climate legislation, this attempt is dividing energy companies who have traditionally been united in opposition. Lobbyists on both sides are trying to influence policy decisions that could cost heavy emitters of carbon dioxide billions of dollars. More than $200 million has been spent lobbying on behalf of energy interests in the first half of the year, according to the Center for Responsive Politics.
this time, climate change policy is for real
“The fact that lobbying is so fast and furious is a positive sign that this thing is moving along,” Mark Brownstein, a managing director at the Environmental Defense Fund told the New York Times. “The fact that everyone is rushing to Washington tells you people believe it is real.”
If companies believe Congress will enact new climate legislation, there are only two moves–embrace the future and attempt to influence policy in your favor, or fight like hell to keep it from happening. For now, both strategies are in play. The formerly allied oil and natural gas lobby has split, with the American Petroleum Institute and oil companies vehemently opposed to climate legislation, and natural gas companies fighting for favorable writing of the legislation. Both sides are spending money on advertising, public relations, and lobbying in an attempt to sway Congress and the public. Electric utility companies have also joined the fight, but they are split on the issue too. On one side are the companies who generate electricity from coal, and on the other, utilities that produce power from sources that emit less carbon, such as natural gas, hydroelectric, and nuclear. While the traditional energy players vie for dominance, the renewable power lobby is attempting to gain an advantage over everyone, turning this into a climate policy battle royal of sorts.
“These fissures are happening because a policy is increasingly seen as inevitable,” David G. Victor, an energy expert at the University of California San Diego, told the New York Times. “Old coalitions are splintering and fascinating new alliances are being formed.”
non-emitters support “greener” energy policy
Some companies are already taking action ahead of new legislation. In a recent interview in the Wall Street Journal, John Rowe, the 64-year-old chief executive of Exelon Corp., gave his assurances that his utility company would dramatically reduce its carbon footprint. Exelon is the nation’s largest operator of nuclear power plants–which don’t emit carbon dioxide. Last month, Exelon dropped out of the U.S. Chamber of Commerce after clashing over the group’s opposition to reducing carbon dioxide emissions. Some have accused Exelon of dropping out of the Chamber because it stands to profit from certain provisions in the climate legislation–a point that Rowe does not dispute. New climate legislation will create winners and losers. Rowe is one of those hoping to be in the winner’s column.
Energy executives and lobbyists believe that some form of climate legislation is on the horizon. For companies to plan effectively, there needs to be certainty one way or another as to whether there will be a new energy policy. The increased lobbying efforts and shifting alliances among energy companies could signal that the final showdown is imminent. We will continue to update you as this debate progresses.
