It is a busy week on Capital Hill for climate change policy, with three major hearings scheduled in a two-day period and the potential of more to come:

On Wednesday, the House Select Committee on Energy Independence and Global Warming held a hearing to explore the potential role of auctioning tradable pollution allowances under a cap-and-trade system to reduce global warming pollution, rather than allocating them based on historic emissions or other criteria. The issue of how emissions allowances are allocated is of significant importance to regulated entities.

On Thursday, the Senate Environmental Public Works Committee will hold a hearing with EPA Administrator Stephen Johnson on EPA’s recent decision to deny the California waiver request for more stringent automobile emissions standards. The Chairman of the House Select Committee on Energy Independence and Global Warming, Rep. Edward J. Markey, has also indicated his intent to hold a hearing later in February regarding the California Waiver Decision.

On Thursday, the Senate Foreign Affairs Committee will hold a hearing on the outcomes of the Climate Change talks in Bali, which follows a House Subcommittee on Energy and Air Quality hearing on the same topic last week. The Senate hearing will assess recommendations for the path toward a post-2012 global climate treaty.

For further information about this topic, please contact Akin Gump.