U.S. struggling to keep up with U.A.E. in renewables

At the 11th Annual Congressional Renewable Energy and Energy Efficiency Expo and Forum, several representatives delivered remarks on the potential of private sector businesses in the support of renewable energy. Private companies lobbying for federal assistance presented such products as private home and community wind generators.

Senator Wayne Allard (R-Colo.) said the private sector is the most appropriate and efficient means to expand renewable energy sources. Congressman Zachary Wamp (R-Tenn.) said the transition from natural gas to renewable fuels is "the most important challenge of our generation." Congresswoman Gabrielle Giffords (D-Ariz.) said the U.S. has a lot of work to do to catch up with countries like Germany and the United Arab Emirates in terms of renewables. Congressman Jay Inslee (D-Wash.) said the U.S. needs to find freedom from its slavery and addiction to oil. He added that renewable energy is a huge economic growth opportunity and also "saves the planet."

Republicans, truckers ask Dems to "stop playing games"

Senate Republicans held a joint press conference with Americans from the trucking industry this afternoon to discuss increased energy costs and its effect on commodity prices. Barbara Windsor, President and CEO of HAHN Transportation said that her trucking company spends $1,400 per vehicle to fill it with Diesel gasoline, and currently spends 58 percent more on fuel than it did a year ago.

Tony Sifford, a professional truck driver said that despite the fuel conservation efforts that he employs, such as slowing down, keeping a constant speed and maintaining a tuned-up vehicle, he still pays over $1,100 more than he did a year ago to drive from Hillsville, Virginia to Dallas, Texas three times per week. Sifford called upon the Democrats to stop playing games and cross party lines to bring an energy solution to America.

Sen. Wayne Allard (R-CO) said that Americans in the West need a solution, as they tend to drive further distances than others in the nation. As such, he said that he favors searching for oil everywhere we possibly can and not remove options from the table, especially because no renewable energy source exists for truck drivers.

Republican senators take a stand on protecting American justice

Eight Senate Republicans gathered this afternoon to hold a forum on “Protecting American Justice: Ensuring Confirmation of Qualified Judicial Nominees.” Sen. Arlen Specter (R-Pa.) led the forum and said that it is not fair to the American people for Congress to block certain judicial nominees in an effort to obtain partisan revenge. Sen. Elizabeth Dole (R-N.C.) agreed with Specter and said that U.S. courts are the front lines of contact between the American citizens and Congress.

Senate Republican Conference Chairman Lamar Alexander (R-Tenn.) said that there is no excuse for not considering voting upon a good judicial nominee. He said that republicans are ready to go to work and serve justice. Sen. John Warner said it is sad watching qualified nominees not get invited to hearings and go into the “partisan fight.” Sen. Wayne Allard (R-Colo.) agreed with Warner and said that good nominees should not be trumped by partisan politics.

John McGinnis of Northwestern Law School said the process of confirming judicial nominees has broken down in the last few years and become a partisan process. He explained that over the last twenty years, the Senate Judiciary Committee has often refused to hold hearings or take votes on federal court nominees of a President who is a member of the opposing political party. McGinnis said that by delaying or refusing to provide hearings for plausibly qualified federal court nominees, the Judiciary Committee is likely to harm the quality of the judiciary. He proposed that the Committee pass a rule requiring the Judiciary Committee to hold a hearing within six months of a nomination and to hold a Committee vote without one month of the hearing, unless at least two-thirds of the Committee agrees to postpone it.

David Bohn of the North Carolina Bar Association said that his association joins in calling for nominations to the Fourth Circuit Court of Appeals to move forward immediately, specifically Judge Robert Conrad’s nomination. Bohn said that further delay in the nomination will cause more harm than good, and that to continue to have the State of North Carolina under-represented in the Circuit is “a misfortunate, unnecessary detriment to the public and the legal community of North Carolina.”

Roscoe Howard, former U.S. Attorney for the District of Columbia, explained that the D.C. Circuit has been affected by a growing caseload. He said that not having vacancies filled during a time like this is “just wrong.” Howard gave his support for Mr. Keisler and Judge Conrad and said that when the confirmation of men such as them fail to move forward, there is an appearance of a lack of appreciation of their capabilities, and of the respect they have earned. More importantly, Howard said that the integrity of the U.S. judicial system of selecting judges is harmed and diminished.

Central counterparty not the “silver bullet” for OTC credit derivatives market

The Senate Banking, Housing and Urban Affairs Committee held a hearing on “Reducing Risks and Improving Oversight in the Over-The-Counter (OTC) Credit Derivatives Market.” Chairman Jack Reed (D-R.I.) and Ranking Member Wayne Allard (R-Colo.) oversaw the hearing. Both senators agreed that the OTC credit derivatives market poses many risks to different sectors of the U.S. economy, including the financial system. Reed said that regulators have been coordinating efforts since 2002 to reduce these risks, but have not made enough progress and have become “too complacent” in their efforts.

Patrick Parkinson, the Deputy Director of the Federal Reserve Board’s Division of Research and Statistics, said that the use of credit derivatives entails risks as well as benefits. He explained that a central counterparty (CCP) is an entity that offers to interpose itself between counterparties to financial contracts, becoming the buyer to the seller and the seller to the buyer. Parkinson said that a CCP has the potential to reduce counterparty risks to OTC derivatives market participants and risk to the financial system by achieving multilateral netting of trades and by imposing “more-robust” risk controls on market participants. Parkinson also said that supervisors and other policymakers should encourage the introduction and use of well-designed CCP clearing services for credit derivatives and should encourage greater standardization of contracts, which would facilitate more trading on exchanges.

James Overdahl, the Senior Economist at the Securities and Exchange Commission, explained the Securities and Exchange Commission’s efforts to encourage sound risk management practice and enhance the infrastructure in the OTC credit derivatives market. Overdahl said that establishing a CCP for credit default swaps is an important step in reducing systemic risk and achieving greater operational efficiency in the market. However, Overdahl also said that while it provides a number of potential benefits, a CCP for credit derivatives or any OTC derivatives contracts is subject o substantial challenges and should not be viewed as a “silver bullet.”