Energy Reform: Heavy Hitters Seek to Sway Cap and Trade Debate

Some say there's a whiff of fresh air in Washington. But others say it's the same hot air as always . . . only there's more of it than ever.

As President Obama continues to push for a market-based cap on greenhouse gas emissions, an unprecedented number of powerful lobbyists and interest groups are preparing to leave their mark on federal policy.

In the five years since Congress last voted on climate change, there's been a 300 percent increase in the number of climate lobbyists, according to the Center for Public Integrity. There are now more than 2,300 lobbyists from 770 companies and organizations -- more than four lobbyists for every member of Congress.

And those lobbyists collected at least $90 million last year from 770 companies and organizations, including the American Coalition for Clean Coal Electricity, a group of 48 firms that spent a total of $9.95 million exclusively on the issue.

The explosive growth in energy lobbying was reported last month by the Center for Public Integrity, which noted that just 45 percent of the interests now weighing in on the issue were energy companies and manufacturers, compared with 70 percent in 2003. Finance and investment firms, which had virtually no role in the debate in 2003, now have about as many lobbyists as alternative energy corporations, according to its report, "The Climate Change Lobby Explosion."

"It's hard to imagine, but at the end of the day, almost everybody is going to be involved in this particular fight," lobbyist Hillary Sills told FOXNews.com. "It's so pervasive ... "it's the oil industry, the gas industry, mining, manufacturing, you name it."

Along with health care and education, Obama has said the energy sector needs "bold action and big ideas," and he has recommitted his campaign pledge to cap carbon dioxide emissions and spend $15 billion annually to find advances in renewable energies like wind and solar power.

Under the plan favored by Obama, the cap and trade program would allow the government to "cap" or limit companies' greenhouse gas emissions. The firms would then be required to buy allowances, or credits, in order to emit at an acceptable level. Companies with larger emissions would purchase more credits than those with fewer emissions and auction off their allowances amongst other, thus creating the transfer of allowances, or a "trade" market system.

"To truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy," Obama said in his address to both houses of Congress last month.

If Senate Majority Leader Harry Reid gets his wish, a climate change bill could reach the Senate sometime this summer.

"The debate is going to be all about cost and benefits," said Eileen Claussen, president of the nonprofit Pew Center on Global Climate Change. "The opponents of the legislation are going to build a case based on the fact that this will cost consumers and government. Proponents will say there's going to be much larger costs if you don't do anything, and that it'll actually help stimulate the economy.

"The issue is, do you do it now? And how stringent do you make it, and what does that mean for costs?"

Here's a look at some of the major players in the global warming debate who hope to use their influence on Capitol Hill to sway the legislation:

WAYNE BERMAN

BACKGROUND: A former assistant secretary of commerce under President George H.W. Bush, Berman has also worked in the both the Reagan-Bush and Bush-Cheney transition teams. According to his biography at Ogilvy Government Relations, where he serves as managing director, the 25-year Washington veteran enjoys an "almost unmatched position at the crossroads of policy, politics and campaign finance."

KEY CLIENTS: Chevron, American Petroleum Institute, Nucor.

AMOUNT CLIENTS PAID TO OGILVY IN 2008: $2.26 million

WHAT TO EXPECT: Berman will likely focus on how the cap and trade program will affect power generators, particularly those without a captive rate base, as deregulated power plant owners will seek ways to pass on costs to consumers.  According to one Ogilvy staffer, Obama's plan will undoubtedly lighten the pocketbooks of everyday Americans. "If it's going to be under the current construct of 100 percent auction, the argument in opposition of that will be straightforward," the staffer told FOXNews.com. "The cost will be borne by working-class families through increased transportation and food costs, as well as potential salary reductions." President Obama must make "significant concessions" to minimize the cost placed on families during the worsening economy, according to the staffer, who stressed that some regions of the country will have a "very significant financial burden placed on them," like the coal-heavy Dakotas.

JOHN BREAUX

BACKGROUND: A former three-term senator and congressman from Louisiana, Breaux opened Breaux Lott Leadership Group alongside former Republican Sen. Trent Lott in 2008. He has served as a director at transportation behemoth CSX since his retirement from Congress in 2005.

KEY CLIENTS: Chevron, Shell Oil, Entergy.

AMOUNT CLIENTS PAID TO BREAUX LOTT LEADERSHIP GROUP: $900,000

WHAT TO EXPECT: "They're going to seek to minimize the financial and regulatory impact on [Breaux's] oil and utility clients," said Tyson Slocum, director of Public Citizen's energy program. "That's the big issue ...Chevron and Shell are going to seek lots of ways to get refineries grandfathered in and their oil extraction activities mitigated."

CHARLES KNAUSS

BACKGROUND: A nationally recognized authority on the Clean Air Act, Knauss is a former minority Republican counsel to the House Energy and Commerce Committee. Now a partner at Bingham McCutchen, Knauss represents major players in the manufacturing and energy sectors. He also lobbies for the National Association of Manufacturers and the U.S. Chamber of Commerce, two leading voices against climate action, according to the Center for Public Integrity.

KEY CLIENTS: Exxon Mobil, General Electric.

AMOUNT CLIENTS PAID TO BINGHAM McCUTCHEN IN 2008: $800,000

WHAT TO EXPECT: "[General Electric] is going to want credit for designing and producing energy-efficient engines and other industrial components," Slocum said. "There's a company that's going to want credit for stuff they've already put on the ground."

DICK GEPHARDT

BACKGROUND: Prior to establishing the Gephardt Group in 2005, the two-time presidential candidate and 14-term Missouri congressman served as majority leader and minority leader of the House. He now serves on the board of directors at corporations like U.S. Steel.

KEY CLIENTS: Peabody Energy, Ameren Services.

AMOUNT CLIENTS PAID TO GEPHARDT GROUP IN 2008: $1 million

WHAT TO EXPECT: With two energy producers behind him, Gephardt will seek as much financial assistance as possible to promote clean coal. And as someone with extensive Washington experience, Gephardt is the "ideal choice" to attract moderate Democrats to his cause, according to one lobbyist who asked to remain anonymous. Another source told FOXNews.com that Gephardt can "put the veneer of acceptability on what is an otherwise unacceptable position."

TONY PODESTA

BACKGROUND: Consistently cited as one of the most influential lobbyists in Washington power circles, Podesta is the chairman of the Podesta Group. The heavily connected Chicago native's brother, John, headed President Obama's transition team and served as President Clinton's chief of staff.

KEY CLIENTS: BP America, Wal-Mart, Sunoco, South Coast Air Quality Management District.

AMOUNT CLIENTS PAID TO PODESTA GROUP IN 2008: $860,000

WHAT TO EXPECT: Corporations like BP America and Shell have indicated they'll support a cap and trade plan, differing from other oil giants like Exxon who favor a more direct tax on carbon emissions. "BP is going to want to get credit for their so-called clean energy investments," Slocum said. "They're going to want to seek to minimize exposure on their oil and gas business while maximizing the benefits of their solar business."  Bert Levine, a former 20-year lobbyist now at Rutgers University, says of Podesta: "He's going to be a huge player here. He's got the White House going for him, among other things."

JACK QUINN

BACKGROUND: A Democrat who once served as chief legal adviser to President Clinton and chief of staff to Vice President Al Gore, Quinn is the co-founder and chairman of Quinn Gillespie & Associates.

KEY CLIENTS: Daimler-Benz, American Coalition for Clean Coal Electricity

AMOUNT CLIENTS PAID TO QUINN GILLESPIE & ASSOCIATES IN 2008: $1.14 million

WHAT TO EXPECT: Joe Lucas, senior vice president for communications at ACCCE, said the lobbying group supports a federal program to cap emissions but stressed the need for incentives to develop technology that removes carbon from coal, which provides roughly half of the nation's power. Lucas said costs of compliance in the cap and trade legislation must be kept low to avoid passing the costs onto consumers. Others say the main concern for coal producers will be financial support. "[ACCCE] will be looking for big subsidies to support clean coal," Slocum told FOXNews.com. "Right now, it's too expensive for the industry to undertake by itself, so they want financial support."

TOM KUHN

BACKGROUND: As president of the Edison Electric Institute, a group of firms that generate and distribute roughly three-quarters of the nation's electricity, Kuhn praised Obama's call last month for clean, renewable sources of energy to "transform" the nation's struggling economy. Kuhn was also encouraged by the president's desire for more plug-in hybrid cars on America's roads. "Those are things we find ourselves in agreement on," Kuhn reportedly said.

KEY COMPANIES: Duke Energy, Southern Company, and American Electric Power Company.

AMOUNT PAID BY EEI TO LOBBYISTS IN 2008: $13.47 million

WHAT TO EXPECT: Sources say Kuhn remains "very well-connected" among Republican circles. "He's really plugged in," said Myron Ebell, director of energy and global warming policy at the libertarian Competitive Enterprise Institute. Others say Edison remains "hopelessly divided" on cap and trade, which will force Kuhn to play centerfield, of sorts. Obama did not mention nuclear power in his address to Congress, leading a Duke Energy spokesman to tell Bloomberg: "It is curious to us that he omitted the need for more nuclear power while at the same time advocating for climate change action."

U.S. CLIMATE ACTION PARTNERSHIP

BACKGROUND: A growing alliance of businesses and environmental groups calling on the federal government to enact legislation requiring significantly reduced emissions of greenhouse gases. Following Obama's joint session before Congress on Feb. 24, USCAP applauded the president's "bold statement" in calling for federal legislation that utilizes a market-based cap to cut greenhouse gas emissions. "We strongly agree that inaction is not an option and that we can move to rebuild our economy and protect our environment by enacting climate protection legislation this year," a statement issued by USCAP read.

WHAT TO EXPECT: USCAP's Blueprint for Legislative Action, a set of policy recommendations released in January, seeks a cap and trade program in conjunction with cost containment measures and policies that spur innovation in low-carbon technologies.

Founding members of USCAP include Duke Energy, General Electric, PG&E Corporation and four non-government organizations like the Pew Center on Global Climate Change. With members ranging from Dow Chemical to the Natural Resources Defense Council, it remains unclear exactly how the coalition's varied interests will compromise on climate issues.

FOXNews.com's Joshua Rhett Miller contributed to this report.