[Congressional Record Volume 154, Number 91 (Wednesday, June 4, 2008)]
[Senate]
[Pages S4993-S5005]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CLIMATE SECURITY
Mr. DORGAN. Mr. President, we will be once again taking up the
pending bill dealing with global warming. It is a substantial piece of
legislation. I am planning to speak later in the day as well, but I
wish to take some time during morning business to talk about the
overall bill as well as an amendment I may file later today on this
legislation.
In terms of the issue of global warming, first let me say that there
is little question left that something significant is happening to our
planet. There is something happening to our climate that sometimes we
don't quite understand. But among almost all scientists, there is
nearly universal consensus that in the last 100 years, the temperature
of the Earth has slightly warmed by 1.1 to 1.6 degrees. Through 2050,
we expect further temperature increases unless we begin to address the
continued concentration of greenhouse gases in the atmosphere.
We are seeing evidence of these impacts. While no specific event is
directly linked, we see droughts occurring more often, and this is
certainly happening in my State of North Dakota. Heat waves are
becoming more frequent, more intense, and more damaging. Further, the
number of category 4 and 5 hurricanes has nearly doubled in the past 50
years. It is quite clear something is happening that we have
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not seen before. I think the consensus of scientists now is at a point
regarding this climate change that is beyond natural change, and we
certainly ought to take some no-regret steps. At least at the very
minimum, we should be taking more substantial steps to try to respond
to it and deal with it.
Now, one of the interesting things about this bill that is on the
floor of the Senate is that it requires a commitment to emission
reductions, technology investments and other actions through 2050. It
is sometimes hard to see ahead 5 years or 10 years, let alone 30 or 40
or 50 years. We have economists who can't remember their own phone
numbers who make predictions 10 and 15 years into the future. At the
same time, we still have to be seriously thinking about our future
pathway for action. What is our destination? What do we aspire to
achieve for this country? What do we want to have happen as we move
ahead?
Let me say that almost everyone believes that our present energy
course is unsustainable. Energy use primarily from fossil fuel
combustion in the U.S. and around the world is a significant
contributor to climate change, according to most energy and climate
change experts. We cannot maintain the current path.
So what do we have to do? Well, the legislation in front of us is
significant. It says that we ought to do a lot of things. Yes, some of
the proposals here are controversial. Some will likely be changed
during this debate or future deliberations, but the reality is that a
debate on mandatory emissions cuts must occur.
I will offer an amendment I will describe a little later, but chief
among the things we need to do are the more rapid development of new
sources of energy, especially with advanced technology. There are
renewable sources of energy that do not emit greenhouse gases or other
pollutants. They produce no effluents or no carbon dioxide. This
includes wind, geothermal, and solar energy, and we ought to be moving
much more aggressively on these and other opportunities. This has not
been what the U.S. has done historically though. We have initially been
early leaders in cutting edge energy technologies and then fallen
behind.
Let me give an example of how pathetic this country's response has
been in recent years and how much more aggressive it must be in future
years. When the U.S. started exploring for oil and natural gas at the
start of the last century, this Congress adopted, in 1916, long-term,
permanent, very substantial tax incentives to encourage that
development.
It gave a clear signal that, if you go out and discover oil and gas,
then we have big tax incentives for you. Industry understood that it
was beneficial to find oil and gas through these long-term, permanent
tax incentives.
What do we do for wind energy, solar and other renewable energy
technologies? The Congress put in place a production tax credit in
1992. These ended up being very short term and rather shallow. It has
been extended for the short term, in many cases by 1 year, five times
since we first passed it. It is a stutter step approach--start, stop;
start, stop. It has been a pathetic, anemic, and weak response by a
country that should be much more aggressive and bold in providing a
direction to develop our renewable energy resources.
There are substantial renewable energy resources available in this
country, and we need to get about the business of providing the funding
for research and the aggressive incentives for a long-term
determination of where we are going to head with renewables.
In 2007, I introduced legislation to encourage a broad range of
renewable and clean energy approaches as well as additional
infrastructure. That legislation signaled that our country should be on
a course to say to the investors in the U.S. and around the world,
where we are headed for a decade. Count on it. Believe in it. The
production tax credit which will expire at the end of this year should
be extended not for 1 year, it ought to be extended for a full decade
to let America know where we are headed. We want more renewable energy
that is not polluting.
Now, having said all of that, there are so many things we can do. We
need much more extensive deployment of conservation and efficiency,
including more efficient vehicles and buildings. We are going to
increase fuel economy standards with a 10-mile-per-gallon increase in
10 years that we required with the Energy Independence and Security Act
passed by Congress in December 2007. I was proud to be a part of that
effort to increase fuel economy standards. We are doing a lot of things
that make it easier to move forward with efficiency and conservation
measures. Further, I wish to talk for a moment about an amendment that
I am going to offer with respect to the advancement of clean coal
technologies.
Now, I understand some say that, in order to deal with climate
change, you are going to have to find a way to wean yourself off of
fossil fuels. I understand they say that, but I also understand that is
not going to happen in the very near term. Let me tell my colleagues
what is happening with respect to energy use in this country. Almost 50
percent of our electricity comes from coal. Without questioning it, we
get up in the morning, flick on a switch, turn a knob, and turn a dial.
We do all of these things with our hands, and energy flows. One-half of
those activities are made possible because of the electricity that
comes from coal. Does anybody really think we are not going to use coal
in the future? The problem is, when we use coal, we have CO2
that is emitted into the air. This CO2 and other greenhouse
gases contribute significantly to cause global climate change. So we
need to find a way to capture that CO2 and to store or
sequester CO2 in geological formations or other means.
How do we use coal in the future? We use coal in the future by being
able to capture this emitted CO2. So how do we do that? The
question isn't whether we are going to use coal. The question is how
are we going to use coal in the future.
There are some who say: Well, it is not possible to capture
CO2. It is possible. Of course it is possible. At this point
the technology isn't fully proven, and it is expensive. Yet, we can see
several technology options ahead.
Let me describe to my colleagues a plant in North Dakota, the only
one of its kind in North America. It produces synthetic gasoline from
lignite coal. Let me tell my colleagues what we do with the
CO2 in that plant. We capture the CO2 and use it
for enhanced oil recovery. It is one of the world's largest examples of
CO2 capture at an industrial facility. Half of the
CO2 produced at this facility is now captured. This
CO2 is put in a pipeline under pressure and sent to
Saskatchewan, Canada. Oil industry interests there pump it underground
to enhance oil recovery. We are successfully using CO2 by
capturing it, keeping it out of the atmosphere, investing it
underground in Canada, and enhancing their oil recovery. That makes a
lot of sense, and we need more of these types of projects. Is it
possible? It is very possible. That one of the world's largest
applications is being demonstrated in Beulah, North Dakota.
Now, what else can we do dealing with carbon and the capturing of
CO2? If you are going to unlock the mystery of how you
continue to use fossil fuels that we must use without impacting our
environment and our planet, we need to have kind of a moonshot
approach. We can't just tiptoe around the issue. We have to decide we
are going to significantly commit funding--billions of dollars--to the
research and demonstrations in science and technology.
Let me give you some examples. I was in Phoenix, Arizona recently,
and I toured an electric utility called the Arizona Public Service. The
organization in Arizona is producing CO2 at a coal-fired
electric generating plant. What they are doing with it is very
interesting. They are taking a stream of CO2 off their stack
in a coal-fired electric generating plant and putting it in very long
greenhouses, and they are producing algae. This pictures shows one
example of greenhouses where they are doing it in tubes.
Most of us know what algae is. Algae is single-cell pond scum. Every
kid knows what that is. You have been to a little pond where stagnant
water has hung around for a while and you see green slime or single-
cell pond scum called algae. Algae grows in water. What does it need to
grow? It needs two things--sunlight and CO2.
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When I became chairman of the Energy and Water Appropriations
Subcommittee on the Senate side, I discovered that the research that
used to go on with respect to algae was discontinued nearly 15 years
ago. Last year, for the first time, I reestablished funding to continue
algae research.
Let me tell you what they are doing in Arizona. In Arizona, they are
trying to demonstrate growing algae in these greenhouses which are next
to a coal-fired electric generating plant. They take the CO2
from the plant and use it to grow this pond scum. In these very long
greenhouses where they are producing algae from the plant's
CO2, they harvest the algae and produce diesel fuel. So what
they are doing is taking something that we want to get rid of to grow
single-cell pond scum called algae, which increases its bulk in hours.
By the way, an equivalent acre of corn produces, in terms of ethanol
fuel, about 300 or 400 gallons. An equivalent acre of soybeans I
believe is around 80 to 100 gallons.
An equivalent acre of algae harvested for diesel fuel produces 3,000
to 4,000 gallons. Think of this. We use much coal to produce
electricity and that increased manmade CO2 is destructive to
the atmosphere. Yet capturing the CO2 and producing fuel is
very beneficial.
An Austin, TX, company came to see me. They have two demonstration
projects in Texas. They are taking flue gas off a coal plant, and they
are producing several byproducts hydrogen, chloride, and baking soda.
Isn't that interesting? These small demonstration projects take the
flue gas from a coal electric generating plant, chemically treat it,
and then produce these byproducts.
Take a look at this chart. Here is the baking soda, and it contains
the CO2. Instead of emitting it into the atmosphere, it is
embedded in the CO2. It can be put in a landfill, but you
can also make cookies. I happen to like the idea of eating cookies from
this process. They said: Do you want to have some cookies produced from
coal? It tasted pretty good because it was produced with, among other
things, the baking soda which was a byproduct from coal.
Here is another example of what we can do. I have in my hand some
sandstone. You can find this in many geologic formations, including
10,000 to 15,000 feet underground in North Dakota. There also might be
a very viable way to capture and store the CO2 underground.
The carbon dioxide under pressure is pumped underground, attaches
itself to sandstone and is therefore sequestered. We have examples, as
I said previously, of CO2 being used in marginal oil wells.
We suck out oil all across the planet every single day. We stick
straws into the Earth, and we suck out 85 million barrels a day. We use
one-fourth of that oil produced every day in the United States. We have
a prodigious appetite for this energy. When you stick a drilling rig
into the ground and find oil, in many cases, you are only getting about
30 percent of the oil pool pumped up. At that point, it is difficult to
produce any more without some extra help or advanced technology. If you
pump CO2 down into that ground under pressure, you enhance
oil recovery. You have a way to get rid of the CO2 by
putting pressure on the oil to bring it up. You have gotten rid of the
CO2, protected the environment, are still able to use coal
and have enhanced the recovery of oil from domestic sources.
Why do I tell you all this? I think we need to produce substantial
wind and other forms of renewable energy. We also have all kinds of
needs for efficiency and conservation opportunities. But, if we don't
find a way to unlock the opportunities to continue to use our fossil
fuels, especially coal, we will not solve the problem that is brought
to us with this piece of legislation on the Senate floor. How do we
solve the problem of being able to use coal in a carbon constrained
future? Perhaps by producing baking soda or algae, we can end up
producing more cookies or biodiesel. Perhaps it's a dozen other
innovative approaches.
How do you do that? By investing in research and technological
capability. This will require substantially more funding. I was visited
by Craig Venter, who is one of the two fathers of the Human Genome
Project and an unbelievable American. He has now turned his attention
to energy. They are working on sophisticated things that I have a
difficult time fully describing in simple terms. They are working on
creating new kinds of organisms and bacteria that could eat coal in
underground seams and produce liquid fuels. The Department of Energy's
Office of Science is also studying the gut system of termites with our
scientists because we know there are 200 microbes in the intestinal
tract of a termite. When they eat your house, and they love to eat
wood, it produces methane. Most living things do. But termites are able
to break down cellulose. If we are going to have a revolution in the
use of biofuels, we need to understand what these termites accomplish
naturally. We are trying to figure out what is it in the gut system of
termites that allows this insect to eat wood and break down cellulosic
materials. If we can figure that out, we unlock another part of the
mystery of how to produce more non-oil based fuels.
So here is the proposal I will offer today. It is an amendment that
would shift a substantial amount of money and dramatically increase the
amount of money available for research and technology for advancing
coal research. We would unlock the mysteries of going from research to
demonstration to commercial application of carbon capture and storage
or other beneficial uses. If they don't do that, the goals of this bill
will fail. If we don't solve the problem without solving how to expand
technology to use coal in a near zero emissions way, we can not meet
the goals outlined in this bill.
We have to make substantial investments in technology, science, and
research. I was part of six of us in the Senate who said, some years
ago, pushed to double the amount of money we spend at the National
Institutes of Health because it is not spending, it is an investment in
the future. If we invest in cures for cancer, ALS, Parkinson's,
diabetes, heart disease, and so many more diseases, it will be
beneficial to generations around the world. We made the commitment and
doubled the amount of funding at the NIH.
We need the same kind of commitment with respect to our energy
future. We need to decide we are going to make a commitment. Just as
NIH deals with the health of people. This bill and the technology we
need to develop relates to the health of our economy, of our country,
and of the expanded opportunities in this country. We need to make a
similar commitment right now.
I propose an amendment that would take the underlying bill which has
about $17 billion for advancing coal research in the first 12 to 14
years. This is a good start but is not enough. I propose to shift about
$20 billion to that $17 billion and try to provide about $37 billion in
total. That $37 billion in this cap and trade bill would be coupled
with the $500 million that I have each year through appropriations for
clean coal research. By the way, this President's funding
recommendation on research in fossil fuels has largely been largely
flat and very inadequate to our needs. He has mostly paid lip service
to our tremendous needs. There is no evidence the White House is very
interested in this. Through such an amendment I propose to create a
fund of at least about $3.5 billion a year, starting in 2009, because
these can start with the first auctions and the funding can be
available on the first opportunity after passage of a piece of
legislation. If this could be accomplished, we would have about $3.5
billion a year for 12 to 14 years.
I am convinced we can do this. I am convinced that investments in
these technology opportunities allow us to address the climate change
challenge and still continue to use the most abundant source of energy
in this country without injuring our environment. There are people out
there who are some of the best and the brightest scientists and
engineers in our country. We need these people working on this issue.
There are many technological leaps that need to be made. The best minds
should be working on ways to take CO2, produce baking soda,
and make cookies. They should be working on ways to have beneficial use
of carbon, which is destructive to our environment, but can be
constructive if you invest it in algae and harvest the algae for diesel
fuel.
Frankly, the amount of money that has been committed to research and
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technology and development has been pathetic, just pathetic. It is not
just this, it is also solar, wind, and other technologies. But Jeffrey
Sachs, a professor at Columbia University, has written a wonderful
essay in Time Magazine this week. I commend him for saying we need a
moonshot here. My amendment is going to give us that opportunity--$37
billion invested in the opportunity to unlock the mysteries of how we
use our most abundant resource and still protect our environment.
We can do this, but we cannot move forward and will not move forward
in a way that says to our country we need to make investments. I
believe we can produce a number of zero-emission, coal-fired electric
generating facilities. It will not happen by accident. I chair the
Committee on Appropriations that funds all our national laboratories.
The thousands and thousands of the best scientists in this country are
a national treasure. We are now seeing many of them being furloughed
and leaving our Federal payroll. We have so much to do, in such a short
time, to unlock the opportunities to address this issue I have
described. I hope we can move forward very aggressively.
Finally, in closing, I will speak at greater length on the floor
today on this subject, and I may file an amendment today. But this, it
seems to me, is the first key to unlock the opportunities that will
give us a future in which we can protect our environment and continue
to use the resources we must use. This must be part of the step if the
promise of not only this bill but future bills dealing with the great
challenge of global warming are to be fulfilled.
I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from Florida is
recognized.
Mr. NELSON of Florida. Mr. President, I will speak on the climate
change bill. How much time do we have under this order?
The ACTING PRESIDENT pro tempore. The Senator has 8\1/2\ minutes
remaining on the Democratic side.
Mr. NELSON of Florida. Is this in morning business?
The ACTING PRESIDENT pro tempore. We are in morning business.
Mr. NELSON of Florida. Mr. President, what I wished to share with the
Senate is how I come to the table on the question of the climate change
bill.
We clearly understand something is happening to the Earth. The Earth
is heating up. Obviously, there are interests that are going to be
affected--special interests--if we go about changing the way we are
doing business, the kinds of pollutants we are putting in the air, and
those business interests will claim that, in fact, they are being
harmed. I understand that. That is part of the body politic we have to
come together and find a solution on what will be the least detrimental
to folks as we are trying to change the Government policy of all this
stuff we are putting in the air. Indeed, we have been putting this in
the air ever since we started changing our society in the Industrial
Revolution because the burning of fossil fuels is starting to
accumulate carbon in the air. That carbon is acting as a shield in the
upper atmosphere, creating a greenhouse effect, that when the Sun's
rays come in and hit the Earth, and they reflect off; normally, they
would radiate out into space. But the fact that we are creating a cap,
similar to a greenhouse, with these gases--primarily carbon dioxide--
they are trapping that heat and, as a result, the Earth is heating up.
In the course of this debate, we will have a lot more scientific
evidence that will come forth and tell us how many parts per million of
carbon in the air you can get before it becomes almost irreversible. We
certainly wish to avoid that. But that means we have to come back to
the political policy and make the decisions that will prevent us from
ever getting to that concentration of carbon in the atmosphere that
becomes the point of no return, that at that point the Earth continues
to heat up to the point that it has all the consequences--the
consequences of the ice sheet in Greenland, which I have been on, which
is melting, and that in itself is 2 miles thick. It is freshwater
because of the hundreds of thousands of years of the rain coming and
the rain turning into snow and the snow packing and, year after year,
the same thing happening. It is 2 miles thick in the center of
Greenland. It is all freshwater.
If that melts, the seas are going to rise somewhere between 10 and 15
feet--the entire seas of planet Earth are going to rise. What happens
to Antarctica and the icecaps there? We will have testimony, and we
will have scientific evidence on all this. We cannot let that happen.
So we are going to have to make the policy changes; that is, we are
going to have to have the political will in order to make the policy
changes, and the tough thing about this is that it is not just this
country. We have to get the rest of the countries to do it. But America
is the one that has to lead, and in the last decade, America has not
led.
Let me just show this chart. This is my State. What would happen if
the seas rise? If they rise 10 feet, which is the red--here is the
State of Florida. We are familiar with it, the peninsula with the
Florida Keys. If the seas rise 10 to 20 feet, Florida is going to look
like this, just the gray. All of this red and blue is going to be
underwater.
Mr. President, I say to my colleagues, most of the population of
Florida is along the coast. I don't want that to happen to my State. My
State has more coastline than any other State in the continental United
States. Only Alaska has more coastline than our State. That is in
excess of 1,500 miles of coastline. That is where the population lives
in Florida. I don't want that to happen to our State.
In the closing minutes that I have--Mr. President, will you tell me
how many minutes I have.
The ACTING PRESIDENT pro tempore. The Senator from Florida has 2\1/2\
minutes.
Mr. NELSON of Florida. Mr. President, I wish to share with the Senate
what I saw from the window of a spacecraft. It is very typical that
space fliers, on the first day in space, will be looking for things. On
the 24th flight of the space shuttle over two decades ago, I was at
that window--when you can get time and you don't have much time because
every minute is planned--and I was looking for things. I was looking
for the cape where we were launched.
By the second day in space, your perspective has broadened and you
are looking at continents. And by the third day in space, you are
looking back at home, and home is the planet. It is so beautiful, it is
so colorful, it is such an alive creation suspended in the middle of
nothing, and space is nothing. It is an airless vacuum that goes on and
on for billions of light years--and there is home. It is so beautiful.
Yet when you look at it, it is so fragile. You look at the rim of the
Earth. There is a bright blue color right at the rim that fades off
into the blackness of outer space. And right at the rim of the Earth,
you can see the thin little film that sustains all of life, the
atmosphere. Even from that altitude, with the naked eye you can see how
we are messing it up. Coming across Brazil in the upper Amazon region,
the color contrast will show you where they are destroying the
rainforests.
I came away from that profound experience of seeing home from a
different perspective, with a new feeling that I needed to be a better
steward of what God has given us--our home, the planet. If we continue
to abuse the planet, Mother Nature will not work in syncopation and in
balance.
The ACTING PRESIDENT pro tempore. The Senator's time has expired.
Mr. NELSON of Florida. For that reason, I am supporting this
Lieberman-Warner bill.
I thank the Chair.
The ACTING PRESIDENT pro tempore. The Senator from Texas is
recognized.
Mr. CORNYN. Mr. President, I ask unanimous consent that the first
half of our morning business time, the 30 minutes, be divided equally
among myself, Senator Chambliss, and Senator Sessions.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
The Senator from Texas is recognized.
Mr. CORNYN. Mr. President, I first wish to raise the concern I have
that this extraordinarily complex piece of legislation, I have been
advised that this 342-page bill we have on our desks that we all
assumed was the working document to which we have been drafting
amendments, is actually not going
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to be the document we are going to be working from as early as this
afternoon. I have been informed--and I ask colleagues whether this is,
in fact, the case--that there is actually another bill, not 342 pages
long but 491 pages long, that will be laid down this afternoon by
Senator Boxer.
It is very difficult for any of us to be prepared when the target
continues to move. To those who are concerned, as the Senator from
California and the majority leader have been about the speed with which
we address this bit of legislation, this does nothing but slow us down
and make our job harder. I hope that is not the case, but that is what
I am reliably informed.
To me, it is counterintuitive to say the least that we would
undertake to pass legislation with a pricetag of $6.7 trillion that
will actually raise gas prices by 147 percent when families in my State
and across the country are already paying an extra $1,400 a year for
gas prices as a result of congressional inaction. Actually, I guess it
is wrong to say congressional inaction because Congress has actually
acted to impose a barrier to developing America's natural resources
right here at home to the tune of roughly 3 million barrels of oil a
day which, if it was made available and Congress would simply get out
of the way, that would be additional supply which would bring down the
price of oil which would give us some temporary relief as we transition
to a clean energy future for our country and for the world.
By that I mean by developing things such as greater use of nuclear
power, using good old-fashioned American ingenuity, research and
development to develop clean coal technology and the like.
In the near term, I think we all have to acknowledge the obvious fact
that oil is going to continue to be part of our future, but hopefully
it will be a bridge to a future of clean energy independence, but not
unless Congress acts. Congress is the problem.
I suggest when we look around for the causes of our current energy
crisis that Congress simply look in the mirror because we are the
problem. It is unfortunate that when the Senate had an opportunity
recently to vote on the American Energy Production Act that only 42
Senators voted for it. That was when gas was about $3.73 a gallon.
Today the average price of a gallon of gas is $3.98 a gallon.
I asked the question then, and I will ask it again today: Is the
Senate going to reject an opportunity to develop America's natural
resources and bring down the price of gasoline at the pump when
gasoline is at $3.98 a gallon? How about when it is at $5 a gallon or
$6 a gallon? Where is the tipping point at which Congress is finally
going to wake up and realize it is the reason Americans are paying too
much at the pump?
Instead of dealing with that urgent need that affects every man,
woman, and child in this country, this Congress has decided to head
down another path, and that path is bigger Government, more taxes,
higher energy costs for electricity and gasoline, and with the
uncertainty that any of this will actually have an impact on climate,
especially given the fact that countries such as China and India, of a
billion people each, are not going to agree to impose this on
themselves. So America is going to do this, presumably, while our major
global competitors are not, and we are going to suffer not only those
higher prices but job losses, reduction in our gross domestic product,
and a competitive disadvantage with the rest of the world. Why would we
do that to ourselves?
At the same time, we see this Rube Goldberg bureaucracy that would be
created. Yesterday, Senator Dorgan said this bureaucracy would make
HillaryCare pale in comparison with its complexity as reflected on this
chart. This is the kind of huge expansion in Government power over our
lives and over the economy that is unprecedented in our country, and I
suggest is the wrong solution, is the wrong answer to what confronts us
today.
In my State in Texas, it has been estimated under that Boxer climate
tax legislation that as many as 334,000 jobs would be lost as a result
of the increased costs and taxes associated with this bill, with a
$52.2 billion loss to the Texas economy, and an $8,000 additional
surcharge on each Texas household. That is over and above the $1,400
that each Texas family is already paying because of congressional
inaction on oil and gas prices. Electricity costs, 145 percent higher;
gasoline, 147 percent higher.
I don't know why, at a time when the American people and the American
economy are already struggling with a soft economy in many parts of the
country, why we would do this to ourselves. It simply does not make any
sense to me.
I would like to have an explanation from our colleagues who are
advocating this particular legislation how they can possibly justify
this bill. What could be the possible rationale for legislation that
would do this to my State and have this sort of Draconian impact on the
economy of our country?
I have heard some talk that said that gas prices have increased
during the time President Bush has been in office. This is what has
happened since our friends on the other side of the aisle have
controlled both the House of Representatives and the Senate. We see
there is a huge spike in gas prices during a Democratic-controlled
Congress. But this should not be a partisan issue. This is a matter of
the welfare of the American family and of the American economy. Why in
the world would we not want to work together to try to develop the
natural resources that God has given us to create that additional 3-
million-barrel supply of oil so we can reduce our dependence on
imported oil from foreign sources?
The alternative proposed by our colleagues on the other side of the
aisle is, OK, we are going to impose higher taxes on the oil industry
which, of course, would be passed along to consumers and raise the
price of gasoline even more or they say we are going to have another
investigation into price gouging when the Federal Trade Commission has
investigated time and time again and found no evidence to justify a
charge of price gouging when it comes to gasoline prices or they say we
are going to sue OPEC, the Organization of Petroleum Exporting
Countries, which has to be the most boneheaded suggestion I have heard
because, of course, what in the world would you ask the judge to order
if you were successful in suing OPEC? I presume to open the spigot even
wider so we would be more dependent on foreign oil and not less.
It is time for a real solution. This bill is not it. I call on my
colleagues to do what we can to open America's natural resources to
development and bring down the price of gasoline at the pump.
I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from Alabama.
Mr. SESSIONS. Mr. President, what is the time agreement at this
stage?
The ACTING PRESIDENT pro tempore. The Senator is allocated 10
minutes.
Mr. SESSIONS. Mr. President, our Nation wants progress toward energy
security, affordable energy. It wants to reduce pollution and it wants
to fight global warming. There is no doubt about that. It wants us,
this Congress, to do something. But it wants us to do the right things,
wise things, prudent things, not wrong things.
I traveled my State this past week, all week, from every corner of
it. My wife and I traveled around and we talked to a lot of people. One
thing that is absolutely clear to anybody who has eyes to see and ears
to hear is that the American people are terribly concerned about
surging gasoline and electricity prices that are rising, and this is
hurting them. This is not an academic matter we are talking about.
Average families, carpooling and driving to work, are going to the gas
pump and finding that when the month is over, their bill is now $50,
$75, or $100 more for the same amount of gasoline that they bought 2 or
3 years ago, and it impacts their budget. They have less money to pay
other bills with, to fix the brakes on the car, or purchase a set of
tires, or take a trip, or have a medical expense, or buy a new suit of
clothes. These things are reduced when we have now added to their
normal expenses $50, $75, or $100 a month for fuel.
Some of that, I believe, we can do something about; some of that we
may not. We have to be honest with our constituents. But they want us
to do something. They are not happy, and they should not be, that we
are importing 60 percent of the gasoline and oil that we will need to
run our country
[[Page S4998]]
from foreign countries, many of which are hostile to us. We are
transferring out of our country $500 billion to purchase that oil. It
is the greatest wealth transfer in the history of the world. No one has
ever seen anything like it before, and it is, in my opinion, without
any doubt a factor--a major factor; perhaps the major factor--in the
economic slowdown we are seeing today and making us less competitive,
and it is reducing and threatening the health of our economy.
Now, when you talk to people in my State, and I think any State that
you would consider, and you tell them: Well, we are going to be talking
about energy matters next week, and we have a cap-and-trade bill that
is on the Senate floor, our good and decent and trustworthy citizens,
the ones who still have a modicum of confidence in Congress, you know
what they think? You know what they think? They think we are going to
set about in Congress to do something about surging energy prices, to
contain the increase in gasoline prices, to reduce our dependence on
foreign oil and this incredible wealth transfer leaving our Nation's
security at risk. They think we are going to take steps to strengthen
the American economy.
Why shouldn't they? Isn't that what they pay us to do? But, oh, no,
they would be shocked to learn that the Democratic leadership, the
leadership of that great Democratic party which claims to represent
middle-class Americans, is uninterested in these matters but is now
attempting to pass legislation that will raise taxes, substantially
raise energy costs, gasoline prices, by 50 cents plus a gallon, will
cause worker layoffs, and will hurt our economy and leave us less
competitive in the world marketplace. That is what this bill will do.
It is the opposite of what the American people, our dutiful citizens
who send us here, would expect us to be doing at this time.
On Monday, my good friend, Senator Reid, the Democratic leader--and I
do admire him, and he has a tough job, there is no doubt about it. I
know he can't make everybody happy--seemed hurt Monday that the
Republican Leader Mitch McConnell said bringing this bill up
demonstrated he was out of touch. Well, I say that is maybe too nice a
term. Maybe ``clueless'' would have been a legitimate term. Senator
Reid is such a wonderful guy. He comes from Searchlight, NV. I suggest
he go back to Searchlight and talk to real people. What are they going
to say, that they want us to raise prices of gasoline? Give me a break.
They are not going to tell him that in Searchlight, just as they didn't
tell me in Alabama to come here and pass higher taxes on gasoline, to
create bureaucracies the likes of which we have never seen, to create
high energy prices, to drive up the price of energy by this complex,
sneaky cap-and-trade tax system that the Wall Street Journal calls the
greatest wealth transfer since the income tax, or to create a
bureaucracy that is going to monitor this complexity throughout the
country.
It is an unbelievable 342 pages, this bill that is now before us, and
it is not the right thing. It would represent an injection of
Washington into the most marvelous thing we have, in many ways, in our
country--the free American economy. It would be an injection of
Washington into that economy of unprecedented proportions.
The goal of this legislation is to reduce CO2 emissions in
our country, they say, by 71 percent by 2050. That means to reduce the
amount of carbon fuels we use by 71 percent by 2050. But the population
is increasing in our country during this time significantly, by every
poll that I think is accurate, and when you calculate that, it means we
are going to reduce carbon emissions per American--per capita--by 90
percent. It means virtually the elimination of coal, natural gas, and
gasoline and oil--eliminate those from the American economy. We do not
have the science and the technology to get us there as of now, yet this
bill would put us on a direct glidepath toward that direction.
So the fact that this is a tax, that it would drive up energy costs--
indeed is a sneaky tax on the American people--is indisputable. Nobody
disputes that. To borrow a phrase from former Vice President Gore, the
debate is over on that question. This bill will increase the cost of
energy, and high energy prices will reduce economic output, reduce our
purchasing power, lower the demand for goods and services, make us less
competitive in the world, and ultimately cost American jobs. That is a
fact. Supporters will argue that it creates a fund to alleviate high
energy costs for low-income Americans by reallocating some of the
trillions of dollars to people, according to the political whims of, I
guess, this Congress, to decide who will win and who will get money
back and who won't get money back. The current increase in gasoline
prices alone amounts to about 50 cents a gallon, as I indicated, under
this legislation. And, amazingly, it does nothing, zero, to produce any
more clean American energy and to lower the price of gasoline to
produce our energy here at home. I worry about that.
In the years to come, we are going to be using a lot of oil and gas
and coal. We could use clean coal to create liquid fuels that we could
burn in our automobiles. All of that absolutely can be done to reduce
our dependence on foreign oil. Let me tell you, there is a big
difference economically, if you take a moment to think about it, in
sending $500 billion to Venezuela and Saudi Arabia and UAE to buy oil
with than if we spent that money at home creating American jobs for
American workers.
I tell my colleagues that this is a bill that is unjustified and
unwise. It is change, but change in the wrong direction, and I urge its
defeat.
I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from Georgia is
recognized.
Mr. CHAMBLISS. Mr. President, I first of all commend my colleague
from Alabama, and I associate myself with his remarks because he is
dead on target.
I also rise today to discuss the Climate Security Act that is before
the Senate. First, I thank all of our colleagues who have been
responsible for bringing this bill to the floor because we need to
debate this issue. It is a critical issue that is important to all
Americans, not only this generation but future generations. I have two
grandchildren, and I want to make sure we leave our grandchildren an
America better than we inherited it. So it is a critically important
debate.
The Climate Security Act will require the transformation of the U.S.
economy to reduce greenhouse gas emissions in an attempt to lower the
average world temperature in 2050 and beyond. I note, however, that in
a study done by the University of Georgia, released last year, it was
determined that over the past 100 years the actual temperature in
America had been reduced by 1 degree, not raised any at all but
actually reduced.
It is estimated the Climate Security Act will generate increased
revenues of $6.7 trillion using allowances and auctions. A large
portion is given directly to various Federal and State programs outside
of the normal budget and appropriations process. However, this amount
of revenue must come from somewhere, and unfortunately, under this
bill, it is going to come from you, me, and from American individuals
and families who will pay higher costs for the energy we use to live.
Economic models have overwhelmingly shown this bill will affect
consumers directly through higher gasoline and electricity prices,
resulting in lower household incomes and millions of jobs being lost in
America. Moreover, the national economy will be harmed as gross
domestic product is expected to drop considerably over the next 40
years, should this bill be enacted.
We also know this bill will constrain the supply and significantly
raise the cost of transportation fuel. Like many of my colleagues, I
spent the Memorial Day recess traveling around my home State. The
average price of a gallon of diesel was $4.77 per gallon, and regular
gasoline averaged $3.98 per gallon. These are the highest prices ever
recorded in my home State of Georgia, and this is my constituents' No.
1 issue.
So it troubles me, as we are seeing almost $4 per gallon gasoline in
my home State, that some in this body want to enact legislation that
would further increase the price of a gallon of gas. I hear from
hundreds of Georgians every day who are struggling to fill their tanks
to get to work or to take their kids to school or to run their
necessary errands.
[[Page S4999]]
I will be honest, I don't know how the average American, the average
Georgian in particular, is coping with this issue--with the rapid
increase in the price of a gallon of gas.
EPA models show that the gasoline prices will rise by a minimum of 53
cents per gallon if this bill were implemented. Why would we do that to
the American people, who are already hurting at the pump?
Regrettably, the legislation before this body would do nothing to
increase our domestic supply of oil and help alleviate the lack of
supply of gas that is driving the prices up.
Instead, this bill will only keep prices rising. The Energy
Information Agency study predicts that gasoline prices will increase
anywhere from 41 cents per gallon to $1 per gallon by 2030 due to this
legislation. Some estimates have gasoline prices rising by as much as
145 percent in my home State of Georgia. This is unacceptable to the
people of my State and unacceptable to the people of this country.
Nobody disputes the fact that the United States is dependent on
foreign sources of oil. We currently import 60 percent of our oil--
actually a little greater than 60 percent--and nobody disputes that
this problem has been in the making for decades. Over the past 30
years, the United States has reduced our domestic exploration options
and left our refining capacity stagnant.
The rising cost of fuel requires a multi-pronged strategy to respond.
That is why we must take commonsense action and increase our domestic
supply of oil by exploring where we know there are resources available
and encouraging the development of alternative fuels, such as
cellulosic ethanol, to decrease our reliance on foreign oil.
We must find both short-term and long-term solutions to provide
energy security for our Nation and give relief to Americans.
This bill will attack citizens at the pump and increase their
electricity costs, thus exacerbating job losses to overseas markets.
Higher energy costs to businesses and the necessity to invest in
expensive low carbon technologies will force companies to raise the
prices of their products, opening the market up to low-cost
international competition, or move businesses to China or Mexico, where
environmental regulations are lacking. Millions more jobs will be lost
in America as a result. One study estimates that between 1.1 and 1.8
million jobs will be lost by 2020 as U.S. companies close or move
overseas. Another study shows that up to 4 million jobs will be lost by
2030 inside the United States if this legislation becomes law. It has
been estimated that in Georgia alone we may lose as many as 155,400
jobs, should this legislation be enacted.
Manufacturing jobs will be one of the hardest hit sectors as the
Energy Information Administration projects that manufacturing output
will decline by up to 9.5 percent in 2030. This country has already
lost 19 percent of its manufacturing jobs since 2000. This legislation
will only help push those jobs outside of our borders.
The cost to American families will be too much for many to bear. An
EPA study estimates that the cost per household in Georgia will be as
much as $608 in 2020, and nearly $4,400 per year in 2050. The median
household income in Georgia is $64,000. CRA International states that
the average increased cost to families is $1,740 per family in 2020.
Workers keeping their jobs would be subject to much lower wages, due
to increased competition and increased costs. Even with lower incomes,
families would be expected to pay more to heat their homes and fill up
their cars. The Environmental Protection Agency has stated that
electricity prices will increase an additional 44 percent by 2030. In
Georgia, the estimated cost will be 135 percent higher if this
legislation is enacted.
This will be devastating to families across the country.
According to Housing and Urban Development, poor families spend
almost five times as much of their monthly budget in meeting their
energy needs--19 percent--as wealthier Americans, who spend
approximately 4 percent.
Increases in energy prices due to carbon limits would hit the poor
five times harder, which certainly will be unsustainable. This bill, by
some estimates, will hit the average Georgia household in an amount
equal to $7,231.
The effects this legislation will have on consumers is outrageous:
higher gasoline prices, higher electricity prices, lower household
incomes, and job losses.
In closing, let me touch on some specific aspects of the bill. While
the bill includes a market-based cap-and-trade system----
The PRESIDING OFFICER (Mr. Nelson of Nebraska). The Senator has 1
minute remaining.
Mr. CHAMBLISS. I believe this bill could be more fair and equitable.
We also should work to make it more predictable for businesses and
understandable to taxpayers and consumers. One of the greatest
challenges to any climate bill will be to ensure that it does not
stymie economic growth and protects American jobs. We need to continue
to seek the best way to generate the greatest benefits for the lowest
cost. We cannot burden our children and our grandchildren with
increased energy costs.
A climate bill must be flexible to adjust to changing science,
economic conditions, and the actions of other countries. The Climate
Security Act attempts to encourage other countries to reduce emissions,
but does not appear to be flexible enough to ensure Americans are not
disadvantaged because of the inaction of other nations.
The details of the Climate Security Act will greatly affect every
American and are extremely important. Have no doubt about it, a vote
for cloture on this bill is a vote to increase gas prices by a minimum
of 53 cents per gallon.
I yield the floor.
The PRESIDING OFFICER. The Senator from Delaware.
Mr. CARPER. Mr. President, I ask unanimous consent the remainder of
time for our business for the next 27 minutes be allotted to me.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. CARPER. Mr. President, I want to take a moment on the heels of
the comments of my friend and colleague from Georgia to look at some of
the hard and fast numbers. We can conjecture here all we want about
what is going to happen to the price of gasoline going forward. He
suggested it is going up by 100 percent or 150 percent--who knows? Here
is what happened. This we do know. We do know the price of gasoline
starting back here in 2001 was at about $1.50 a gallon and has risen
today to almost $4 a gallon. We do know that. We can conjecture until
the cows come home about what might happen in the future, but we do
know what happened in the past under the watch of the current
administration. It is not pretty. If we want to make sure this trend
continues, we will not come up with ways to reduce our consumption of
oil; we will not produce more energy-efficient cars, trucks, and vans;
we will not reduce the amount of miles we travel in our communities and
our States; we will not find a whole host of ways to conserve energy;
we will not come up with ways to conserve energy through renewables. If
we don't do any of those things, this kind of thing will continue. Our
challenge here today and the way to make sure this doesn't continue is
to pursue legislation along the tracks of that which is before us today
and this week.
I begin today by commending the work of Senator Boxer, Senator
Lieberman, Senator Warner, and others in developing this global warming
legislation. Let me say to my colleagues, your initial bill was a good
start. I believe the version that has been brought before the Senate
this week represents a significant improvement over that original
proposal. The leadership of this troika--it is actually tripartisan
leadership--a Democrat, a Republican, and an Independent--your
leadership gives me hope we will pass landmark legislation on this
front, not this week, not this month, probably not this year, but in
the not too distant future when hopefully we have a new administration,
regardless of who is President, who is more amenable, more supportive,
more understanding of addressing global warming. I plan to do all I can
in the meantime to make sure we do not lose that opportunity.
As a lot of my colleagues may know, addressing global warming has
been an important issue for me since my early days in the Senate. I
think the facts are indisputable today. Our planet is growing warmer.
We human beings are a major contributor to that.
[[Page S5000]]
My passion on this issue began about a dozen or so years ago when I
first met two doctors, Dr. Lonnie Thompson and Dr. Ellen Mosley-
Thompson, as they received something called the Commonwealth Award for
Science in Wilmington, DE for their pioneering work on global warming.
The Thompsons are natives of West Virginia, as am I, and they are both
professors at Ohio State University, where I received my undergraduate
degree, and both are world renowned for their research on the effects
global climate change is having on glaciers and ice fields throughout
the world. Measuring levels of carbon from ice core samples that go
back nearly 1 million years in time, they focused on glaciers and ice
caps atop mountains in Africa and South America. They have concluded
that many of them--that being the mountains and glaciers, the ice caps
on the mountains and glaciers--will probably melt within the next 15
years or so because of global warming. They fear little can be done to
save them. It is up to us in this body to prove the skeptics wrong, to
show we can do something, we can pull together and we can address this
threat to our planet.
Three years ago during our Senate debate on this same issue, I
stressed that the Arctic sea ice had shrunk by 250 million acres over
the past 30 years, an area about the size of California, Maryland,
Texas--and maybe Delaware--combined.
Today, I am sad to say, the Arctic sea ice has shrunk by not 250
million acres but 650 million acres, an area the size of Alaska and
Texas combined or the size of 10 United Kingdoms combined. If we
continue down this path on which we have started, the consequences for
our planet and our country and our people will be catastrophic. It is
up to us to ensure that America leads the world down a different path.
We must and we should.
The EPA estimates that unless global warming is controlled, sea
levels will rise by as much as 2 feet over the next 50 years. I have
heard even greater amounts over the next 100 years. For island nations
and coastlines, that could mean entire cities and beaches are wiped
out. It is up to us in this body to ensure that those beaches and those
cities, those coastlines, are preserved.
I have a chart here I want to share with my friends. For those of you
who have not been to Delaware, this is Delaware: About 100 miles end to
end, and from east to west, maybe 50 miles here. This is the outline of
our coast. This is Lewes. This is Cape Henlopen. This is Rehoboth
Beach, Dewey Beach, Bethany Beach, Fenwick Island, the Nation's summer
capital. This is where the beach is today. Fifty years from now, if we
don't do anything about global warming, sea level rises will have been
2 feet and this will be the beach in Delaware. This is Dover, DE, our
State capital. This past Sunday we hosted 150,000 people from all over
the country--NASCAR race. In 50 years from now, if we are not careful,
this will not be Dover, it will be Dover Beach. We won't be having
NASCAR races at Dover Beach. We may be having sailing regattas, we may
have motorboat races, but we will not be having stock car races unless
we do something about it, so this is imperative for a lot of reasons,
including some that are close to my heart.
Since our last Senate debate on this issue we have seen the
scientific community come together on this issue. The Intergovernmental
Panel on Climate Change has undeniably affirmed that the warming of our
climate system is linked to us, human activity. We also know the United
States is one of the world's two largest emitters of greenhouse gases,
along with the Chinese. In fact, they may have overtaken us by now. We
account, in this country, for almost 20 percent of the world's
greenhouse gas emissions and for almost one-quarter of the world's
economic output. I believe our Nation has a responsibility to reduce
our emissions of CO2. In short, we have a responsibility to
lead.
Unfortunately, we have not seen a whole lot of leadership coming from
the White House or enough from the Congress on this front. At least not
yet. That has to change and that change is starting, I hope, this week.
Others, in the meantime, have begun filling the void. We have another
chart here. This is a chart of our country. There is a lot of green,
light green, dark green, and blue. The light green areas are the areas
where the States are actually developing their own climate action
plans. They have been waiting for us. They have given up on that. They
started to take the bull by the horns. Light green is where States have
something in progress in terms of developing their climate action
plans. The dark greens are the States where they completed action. The
blues are where they have revisions in progress--about 38 States. They
have been waiting for us. They are tired of waiting for us, and I don't
blame them. One of those States is Delaware. We have a plan in my State
and a lot of other States will soon have plans to reduce their own
carbon emissions.
The States are not the only ones filling the void of Federal
inaction. Fortunately, our Nation's businesses, a number of them, are
doing the same thing. Companies such as DuPont, a global manufacturer
headquartered in my home State of Delaware, have taken steps to reduce
their own carbon emissions.
DuPont CEO Chet Holliday has said:
As a company, DuPont believes that action is warranted, not
further debate. We also believe the best approach is for
business to lead, not to wait for public outcry or government
mandates.
Contrary to concerns that combating global warming will hurt American
businesses, DuPont's actions have had major positive impacts on its
bottom line. In the mid-1990s, as part of a climate change initiative,
DuPont began aggressively maximizing energy efficiency. That initiative
has allowed DuPont to hold its energy use flat while increasing
production. As a result, DuPont reduced its greenhouse gas emissions by
more than 70 percent. By doing so, the company actually saved $3
billion--billion, with a ``b.'' But a patchwork of State initiatives
combined with good corporate stewardship, however welcome, is not
enough. We must have a comprehensive national approach, not only to
give a signal to corporate America that this is a priority, but to the
world, the United States is prepared at long last to be a leader on
this front as well.
I have enough faith in American technology, American ingenuity and
know-how, to believe we can provide that leadership without endangering
our Nation's economic growth.
In fact, if we are smart about it, we will end up strengthening our
Nation's economy, we will end up creating hundreds of thousands of new
green jobs and we will end up creating products and technologies we can
sell and export around the world.
I would quote Thomas Edison on opportunity. This is what Thomas
Edison loved to say about opportunity: A lot of people miss out on
opportunity because opportunity comes along wearing overalls and is
disguised and looks a lot like work.
You know, some people look at global warming, our dependence on
foreign oil or emissions or bad stuff in the air, and they see a
problem. I see an opportunity. It is an opportunity that brings with it
economic advantages and the possibility of creating jobs and products
that flow from that, including technology and jobs and products.
Well, that is one of the big reasons I support the approach of the
Lieberman-Warner Climate Security Act, to provide a solid framework for
creating a national, mandatory program to dramatically reduce
greenhouse gas over the next 40 years or so.
I am pleased to see Chairwoman Boxer's substitute makes several
improvements over the bill we passed in the committee last year.
Specifically, I applaud the chairwoman's efforts in strengthening the
recycling and cost-containment sections of the bill.
Let me take a minute here, if I can, colleagues, to focus on the
importance of recycling and combating global warming.
A lot of times people say: What can I do as an individual to help on
global warming? As it turns out, everybody can recycle. Everybody can
do that. Here are a couple of reasons why.
In 2006, the United States threw away literally, in cans of trash,
some 82 million tons of material, with a recycling rate of about one-
third--we recycled about a third of that stuff. Let me back up. Let me
say that again. In 2006, the United States recycled about 80 million
tons of materials. That is about one-
[[Page S5001]]
third of all that we would otherwise throw away, offsetting the release
of some 50 million tons of carbon. That is equivalent to the emissions
we save by recycling some 39 million cars each year, because we
recycle. However, we only recycle about one-third of what we could.
However, each year Americans discard enough aluminum to rebuild our
entire domestic airline fleet every 3 months.
Put simply, increasing recycling cuts greenhouse gas emissions. To
encourage recycling, the bill compels States to bolster recycling
programs by requiring that no less than 5 percent of carbon credit
revenues allocated to States must be used for improving recycling
infrastructure to help States and local communities recycle more. I
wish to thank the chairwoman again for working with me on this
important issue.
Let me talk about cost containment next. I am also pleased with the
cost-containment provisions Senator Boxer included in the substitute,
such as the extra pool of allowances available in the early years to
help contain high prices and the allowances that are returned to
customers to keep energy prices down. I believe these provisions are
moving us in the right direction to address any runaway costs that
might occur in a new market.
Although this bill is a good start, I believe we can make some
significant improvements in it, particularly in the area of pollution
control, in the areas of output allocations and transit, encouraging
people to get out of their cars and take a bus, take a train to get
where they need to go.
Let me start off by addressing the four p's. It stands for the four
pollutants. I appreciate that this bill acknowledges that dangerous air
pollutants, including sulfur dioxide, nitrogen oxide, and mercury, are
emitted by the power sector in this country. However, acknowledging a
problem is not the same as solving that problem. I believe that in
addition to reducing greenhouse gases, we must additionally pass a
comprehensive bill that also reduces these other three harmful
pollutants.
As some of my colleagues know because I have driven you crazy over
the last 5 or 6 years on this, visiting many of your offices, 12 of my
colleagues and I introduced the Clean Air Planning Act of 2007, or
CAPA. We believe CAPA provides an aggressive, yet achievable, schedule
for powerplants to reduce emissions and alleviate some of our worst
air-related health and environmental problems, such as ozone, acid
rain, mercury contamination, and, of course, global warming. This
multipollutant approach fits perfectly within the framework of this
comprehensive global warming bill. I believe we would be foolish to
address only one pollutant coming out of our Nation's smokestacks,
however important it is--carbon dioxide--while others--sulfur dioxide,
nitrogen oxide, and mercury--threaten our health and our environment
too.
My State of Delaware, along with the States around us--Maryland,
Virginia, Pennsylvania, and New Jersey--we are at the end of the
Nation's tailpipe. We continue to breathe dirty air. During the summer
months, when ozone pollution is at its worse, more than 10,000
Delawareans cannot work or carry out daily activities. Nationally, some
27 million children age 13 and younger are being exposed to unhealthy
levels of ozone.
We have another chart here. Not only do we have problems with folks
breathing bad air, which is harming their lungs and their respiratory
systems, for young children being carried in the mother's womb, mothers
ingest large amounts of fish that contain mercury. This year some
630,000 infants will be born with high levels of mercury exposure. As a
result, they could have brain damage. A number of them will have
developmental delays, some will have mental retardation, and some of
them will have blindness.
Sulfur dioxide emissions, meanwhile, from powerplants will cause
24,000 Americans to die this year--24,000 this year, 462 this week, 66
today, and 1 or 2 during the time I am speaking here will die because
of exposure to sulfur dioxide emissions from powerplants. I do not know
how many people are going to die from climate change, from global
warming, from CO2 emissions in this country in this year. I
can tell you how many will die from sulfur dioxide--24,000. Twenty-four
thousand. That is almost as many people who live in Dover, DE--24,000
people. Fossil fuel-fired powerplants are the single largest source of
pollution that is causing these health problems.
If we do not act to tighten our emissions of these pollutants, too
many communities will continue to live with the air that is unhealthy
to breathe and mercury will continue to pollute our communities and
bring harm to pregnant women and to children.
I believe it is not only the right thing to do but also the economic
thing to do. Strict caps for all four pollutants, not just carbon
dioxide, can help drive technology toward a comprehensive mitigation
rather than a piecemeal approach. That is why I am introducing an
amendment, along with Senator Lamar Alexander of Tennessee, that
achieves similar reductions for sulfur dioxide, nitrogen oxide, and
mercury that are in CAPA but are adjusted to fit the Lieberman-Warner
timetable.
The bottom line is, as we develop an economywide solution to global
warming, we cannot lose sight of the simultaneous need to enact
stricter caps on mercury, nitrogen oxide, and sulfur dioxide from
powerplants.
Next, let me turn to something called output allocations, the way we
allocate the credits to polluters that emit carbon dioxide. I applaud
this bill's provisions that provide important funding for zero- and
low-carbon technology as well as funding to encourage the
commercialization of carbon capture and sequestration for coal-fired
generation of electricity.
However, I believe we are going to use coal for a long time. We have
to figure out how to capture the other major pollutants as well, and
the sooner the better. I believe the Boxer substitute can do better to
support clean and efficient power generation. I am concerned this
legislation still provides too many subsidies to dirty, less-
efficient power generation at the expense of new, clean technologies.
Global warming legislation should make wind and other renewable
energy products more economically viable. Affordable clean energy
should be one of our main goals.
Unfortunately, this bill still continues on the same old paradigm of
rewarding the historical polluters by distributing pollution allowances
on an ``input'' basis. This means allowances to emit CO2 in
this bill are allocated based on historic emissions and the fuel being
used rather than with respect to the efficiency with which power is
generated.
Output-based allocation is an important policy tool to ensure that
existing powerplants--particularly coal-fired plants--are made far more
efficient and clean within a reasonable period of time. That is why I
am planning on offering an amendment to change the distribution of
allowances in the fossil fuel-powered sector from an input allocation
to an output allocation.
It seems to me, colleagues, here we are trying to figure out how to
apportion those allowances to emit CO2. Why not provide more
allowances to those utilities that create more electricity by using
less energy? That is what we should be doing. Unfortunately, what we do
in this bill is we provide more allocation to emit CO2 to
powerplants that use more energy rather than less energy. We should
really provide the allocation and distribution of allowances--to some
extent, at least--to reward those that provide a lot of electricity
without using a lot of energy.
In addition to providing allowances to efficient fossil fuel
facilities, my amendment--our amendment--would also provide allowances
for new entrants generating electricity from other renewable forms of
energy.
I have a couple of thoughts on this one. I and some of my colleagues
are strong supporters of safe--underline ``safe''--and secure--
underline ``secure''--nuclear power and believe it must be a prominent
part of any global warming solution.
The resurgence of nuclear power in the United States gives us a
unique opportunity to rebuild a carbon-free energy industry and create,
in doing so, tens of thousands of highly skilled jobs for building the
plants and operating them in the future. But to do this, we must
provide support and incentives to the nuclear manufacturers to
redevelop the workforce--especially facilities--and capacity to
participate and ultimately lead the world in quality nuclear
manufacturing. That is why I
[[Page S5002]]
have joined Senator Warner and Senator Lieberman in an amendment we
will offer that provides a sense of the Senate that supports workforce
training for the nuclear industry.
Next, transit. Finally, I wish to discuss a very important provision
in the Boxer substitute that funds transportation alternatives.
I talked to you earlier about the importance of getting us out of our
cars, trucks, and vans and getting us to take alternative forms of
transportation that use less energy and produce less pollution. The
transportation sector is responsible for about 30 percent of our
Nation's carbon dioxide emissions, almost one-third. That is why
Congress passed legislation that I coauthored with a number of my
colleagues last year--Senator Feinstein and others--to increase auto
fuel economy from an average of 25 miles per gallon to 35 miles a
gallon by 2020. The bill before us today also includes a low-carbon
fuel standard and funding for alternative fuels.
Let's look at this chart here on my left. This line right here shows
what CO2 emissions are from our car, truck, and van fleet
starting in 2005 by incorporating the new CAFE standards for 35 miles
per gallon by 2020. Here is where we end up in CO2 emissions
for cars, trucks, and vans. Great progress. Unfortunately, if we keep
driving more and more every year, the great reductions in
CO2 which could be recognized here are going to end up with
no reduction at all unless we do something about vehicle miles traveled
and reduce the amount of time we spend in our cars, trucks, and vans
rather than continue to see that grow as we have over the last decades.
Living in sprawling areas without transit literally can double a
family's greenhouse gas emissions. The negative consequences go beyond
impacting our environment. With gas prices approaching $4 a gallon,
longer commutes and increased distances required for errands costs
money too.
Public transportation has saved Americans from an additional 286
million hours of sitting in traffic. So we included a provision in this
bill--Senator Cardin was very active on this--to use some of the
auction proceeds to provide people with an alternative to driving,
additional alternatives to people to driving. This provision in the
bill would provide transit to more communities and would also expand
transit where it already exists. That is good for our environment, it
is good for our pocketbooks, and it is good for our peace of mind.
While this provision is important, we need to find a way to give
communities a greater say in how they can spend their transit dollars.
Transit is needed across our Nation. However, many communities would
benefit from improved bike and pedestrian infrastructure, be they
sidewalks, crosswalks, traffic calming, bike lanes--you name it. In
rural areas, increasing freight rail capacity might be the most
effective way to reduce vehicle pollution. Ideally, I think we ought to
leave it to the local communities to determine which strategy works
best for them and therefore allow all communities to take steps to
address this portion of transportation pollution. Having said that, the
provisions in this bill are a good first attempt to address this
problem. We ought to do those, but we can do more and should do more.
As the only Member of the Senate who serves on all three
transportation-related committees, I look forward to attempting to
bring those three committees together and agree on a comprehensive
approach to reducing carbon emissions from the transportation sector
before we address climate change next year.
Mr. President, how much time do I have remaining?
The PRESIDING OFFICER. The Senator has 3\1/2\ minutes remaining.
Mr. CARPER. I thank the Chair.
In closing, I appreciate the significant progress that has been made
already to improve this legislation. I applaud the efforts of my
colleagues, Senators Boxer, Lieberman, and Warner, for the work they
and their staffs and our staffs have done. The authors of the bill can
be proud and their staffs should be commended, our staff should be
commended.
We have seen forward-looking companies such as DuPont show leadership
and vision to develop a business plan for operating in a carbon-
constrained economy. We have seen States such as California, Delaware,
and a few others take action to reduce our carbon emissions.
What we have not seen yet is leadership from our Federal Government.
While we continue to do nothing, or too little, our international
competitors are already developing new technologies and preparing for
the future.
President John Kennedy once said:
There are risks and costs to a program of action. But they
are far less than the long-range risks and costs of
comfortable inaction.
I recognize that despite the hard work of our staffs, Members, and
leaders on this issue, there is a good chance this conversation will
need to continue next year. It will and it should. I believe we must
act on this issue next year, if we ultimately are unable to find common
ground this year. That is why I am committed to joining Senators Boxer,
Lieberman, and Warner in leading discussions today and throughout the
year and bringing together all involved interests and parties to forge
a path forward toward a solution that can pass the Congress early in
the next administration. As Members of the Senate, we have a
responsibility to ensure that our country provides leadership for the
world in which we live on any number of fronts. The time has come for
us to fulfill that responsibility with respect to global warming.
For some people, this is a political exercise. They will offer
amendments to try to embarrass one side or the other, maybe embarrass
the authors of the legislation, to basically ensure we don't get
anything done, to tie us in knots and walk off and leave this
legislation behind at the end of this week or sometime next week. That
would be unfortunate. The American people know we have a problem. The
problem is, the planet is getting warmer. If we don't do something
about it eventually, we will not be able to turn it around. It is
important for us to get serious. The American people want us to figure
out how to work together. Our next President, whoever she or he might
be, is going to provide us with much stronger, more positive leadership
on this front. It is incumbent on all of us--Republicans, Democrats,
and one Independent--to figure out how we can work with that next
President and with ourselves, with folks in the business community, the
environmental community, to come up with a plan of action to reduce and
eventually eliminate the threat that global warming poses to our planet
but to do so in a way that seizes on what Tom Edison said: Some people
do actually miss out on opportunity because it comes along wearing
overalls and looks a lot like work. This is one of those opportunities.
We should seize the day--as we say in our State, carpe diem--not
squander the opportunity but make the most of it.
I yield the floor.
The PRESIDING OFFICER. The Senator from Missouri.
Mr. BOND. Mr. President, good morning. Let's be clear as we begin
this discussion. I, along with a vast majority of my colleagues,
support cutting carbon emissions. We want to cut down on any kind of
air pollution we have. We have done a great job over the years in
improving our air, and we need to do more. But we must cut carbon
without raising prices on gasoline, diesel, electricity, all the things
that drive our economy. When American families are suffering record
pain at the pump, a home mortgage crisis, and a soft economy, this is
not the time to put the Government in a position of raising energy
prices far higher than anything we have ever seen.
How much would Lieberman-Warner raise energy prices? We can quote
from the sponsors of the legislation themselves. This is what the
junior Senator from California has said Lieberman-Warner would raise:
$6.735 trillion. It takes two charts to put up all the zeroes that this
would increase energy prices and, thus, tax American consumers. As we
can see, too big to fit on any one board.
The bill's sponsors claim they are trying to hit energy companies
with the cost of this program. Does anybody doubt what will happen when
we increase taxes on producers? That has to be passed on. It will be
passed on to families, workers, farmers, truckers in
[[Page S5003]]
the form of higher energy bills and more pain at the pump. The bill's
sponsors point to the customer relief they intend in the form of $800
billion over 40 years for tax relief and $900 billion to utilities to
help consumers. That would still mean only $1.7 trillion was returned
to an American public paying $6.7 trillion in higher energy costs. That
is a $5 trillion loss. That complicated Soviet-style scheme would be
based on the wisdom of some small group of bureaucratic czars who would
decide who gets the money. It seems they are writing Congress out of
the responsibility of handling the Treasury. They want to go around and
turn a small group of wise men into the ones who decide who gets the
allowances, who gets the relief, and where any relief will go.
The problem with the $6.7 trillion in higher energy prices is gas
prices are already at record levels. Gas prices topped $4 in many parts
of the country and are approaching that in the rest. Drivers are
suffering at the pump. I was back in Missouri and traveled all over the
State, from one corner to the other, over the Memorial Day recess. I
heard firsthand from commuters, farmers, average citizens, businesses
looking at absolute catastrophe from these higher energy prices. They
are all fed up with higher gas prices. Regrettably, higher gas prices,
higher diesel prices are the result of Congress's action or inaction in
blocking for 30 years the production of new energy in the United
States.
I visited truck stops in Joplin in southwestern Missouri and Palmyra
in the northeast part of the State. I heard from truckers about the
record diesel prices. Things are getting so bad that many are laying
off drivers. Some are even going out of business. This is a real
problem for our country. When truckers suffer, we all suffer. If they
go out of business, we will not have trucks to deliver the goods.
Transportation costs make up a significant part of the cost of almost
every consumer item. When diesel prices go up, prices go up, and
families will pay. In many areas, we may not have the trucking
infrastructure to deliver the goods we need.
How much will Lieberman-Warner increase our pain at the pump? The
Environmental Protection Agency estimates Lieberman-Warner will
increase gas prices by 53 cents per gallon by 2030 and by $1.40 per
gallon by 2050. Supporters of this bill tell us this is no big deal; it
only represents 2 cents a year. A good statistician can try and make
any number look not quite so bad. I can't speak for folks in other
States, but I can tell you the folks back home have a minimum amount of
high enthusiasm for Congress taking more action to raise prices.
Mr. President, $1.40 is $1.40. That increase in the price of gasoline
is totally unacceptable, particularly when it comes with increases in
prices in all other forms of energy. Yet that is the path the
supporters of this legislation want us to trod.
Some Senators say that since gasoline prices have risen 82 cents
since the beginning of the year, it is OK that Lieberman-Warner will
only raise prices another 53 cents to $1.40. Does anybody ever stop and
think that we are going in the wrong direction? We ought to be talking
about what we can do to increase supply, to bring prices down, not
figuring out how to come up with a cockamamie scheme that is going to
increase prices even more. I find the logic a little bit disturbing, if
you can call it that. The 82-cent rise in gas prices over the last year
has not been OK with the people in my State. A further 53-cent increase
by 2030 in gas prices is not OK. A further $1.40-increase in gas prices
is not OK with the people in Missouri. I can tell you that if we don't
change the path we are on now, the increase in prices will be even
greater.
The bill's sponsors say the demand for oil will go down under
Lieberman-Warner. Such a claim seems fantastical, until you examine the
source of the study. It is a study by the International Resources
Group. That name seems normal enough. But then looking at a copy of the
study, it shows it was guided by the close involvement of the Natural
Resources Defense Council. They are the ones who are behind it. The
NRDC study used by the other side assumes we will get 50 or 60 percent
of our energy by 2050 from renewable sources such as wind and solar. I
am all for clean wind and solar power. But nobody in their right mind
will believe we will go to generating 50 percent of our power from wind
and solar. That isn't going to happen. You talk to the experts. I have
listened to experts, experts who are very knowledgeable about biofuels
and others. They say biofuels can help. Wind and solar can help at the
margin. But we are still going to depend upon fossil fuel for most of
our energy costs, particularly our transportation costs.
On oil demand, the NRDC study makes more outlandish assumptions. They
predict the fleet efficiency for cars and light trucks will go up to 52
miles per gallon. Congress just finished raising CAFE standards to 35
miles per gallon. Now the NRDC says: No problem, we will move it up to
52 miles per gallon. That would mean we would have a fleet of golf
carts hauling our produce. I wonder how many golf carts it would take a
farmer to deliver the hay to cattle in the field, how many golf carts
to pull a wagon full of corn, how many golf carts to take a large
family to school. A fleet of golf carts is a wonderful thing.
The NRDC says we will get 52 miles per gallon by moving the vehicle
fleet to hybrid and plug-in vehicles. That is another startling
assumption, 100 percent hybrids and plug-ins. Don't get me wrong. I am
a big fan of the potential of hybrid cars using advanced vehicle
battery technology. These are things we ought to be working for.
Over the recess, as part of my six-city tour of Missouri I mentioned
earlier, I visited the Ford assembly plant in Kansas City, where they
make the hybrid Escape SUV. Kansas City is a national leader in hybrids
and battery technology. We have the Ford hybrid SUV plant. We have a GM
plant assembling hybrid sedans and SUVs, and we are an international
leader in all kinds of battery technology, starting from the original
lead batteries to lithium-ion batteries to lithium-ion polymer
batteries.
All these things will help. But Ford is only making about 20,000 of
these cars a year. They don't have enough batteries to meet the needs.
I wish to expand on the use of advanced vehicle batteries for hybrids
and plug-ins. I believe we need to jump start it.
The PRESIDING OFFICER. The time of the Senator has expired.
Mr. BOND. I ask unanimous consent for an additional 2 minutes.
The PRESIDING OFFICER. If it comes out of the Republican time.
Mr. BOND. How much time remains on the Republican side?
The PRESIDING OFFICER. There is 17 minutes.
Mr. BOND. I ask my colleague how much time he needs.
Mr. VITTER. I need about 8 minutes.
Mr. BOND. I ask unanimous consent for 2 additional minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BOND. If we can get a domestic manufacturing supply base for
hybrid batteries to get the volume up and the prices down, that would
be good. Right now we are all depending upon a Japanese battery
manufacturer. We need to have those batteries manufactured in the
United States and not be dependent solely on an external source. That
is a twofer. We could expend the use of clean cars, burning gasoline
only occasionally, expand the number of blue-collar manufacturing
jobs--good for the environment and good for workers. But I do not think
we can rely on the idea that we will achieve 100 percent hybrid and
plug-in use during this bill. The NRDC study also assumes massive new
production from carbon captured from powerplants and used for enhanced
oil recovery. I support this too. But to think we can cut oil imports
by 58 percent because we are expanding domestic production from burned-
out wells through enhanced oil recovery is beyond the possible.
So if we set studies aside by environmental groups supporting the
bill and manufacturing groups such as NAM opposing the bill, that leads
us to the mainstream Government agencies such as EPA. They say gasoline
prices will rise 53 cents per gallon by 2030, $1.40 by 2050. If you add
a $1.40-per-gallon Lieberman carbon surcharge to the current price of
$4-a-gallon gasoline, you get gas prices at $5.50 a gallon.
I can tell folks back home right now there is no way I can accept the
Lieberman-Warner offer of $5.50-a-gallon gasoline. When I tell my
Missouri constituents we are on the floor debating a bill, when we have
$4-a-gallon
[[Page S5004]]
gasoline, and the bill would significantly increase energy costs rather
than increasing supply that would reduce the price of oil, they cannot
believe it.
We are on the wrong track. We need to cut carbon. We do not need to
increase energy prices on the American public.
The PRESIDING OFFICER. The Senator's time is expired.
Mr. BOND. I thank the Chair.
The PRESIDING OFFICER. The Senator from Louisiana.
Mr. VITTER. Mr. President, I have been allotted 8 minutes, and I ask
the Chair to notify me when 6 minutes of that 8 have expired.
The PRESIDING OFFICER. The Chair will so notify the Senator.
Mr. VITTER. Thank you, Mr. President.
Mr. President, like my colleague from Missouri, last week I traveled
all around my home State. I had about nine townhall meetings and many
other meetings of all kinds in every part of the State.
In these townhall meetings, gas prices--the price at the pump--was
not the first question that always came up. It was the first eight
questions that always came up. In fact, of all of the discussion I had
in all of these townhall meetings put together, about two-thirds of
that entire discussion--that entire time--was about rising gasoline
prices and energy prices. It is obviously affecting folks all across
the country, certainly including in my home State of Louisiana.
In early 2006, when this new Democratic Congress was sworn into
office and came into power, the average price at the pump was $2.33 a
gallon. The new leadership vowed they would do something about those
sky-high prices. Well, apparently they did because now the average
price at the pump is $3.98 a gallon--a staggering increase in a
relatively short amount of time.
So in this context, when Americans all over our country, certainly
including Louisiana, are suffering from these sky-high prices that
continue to rise--as they go into the summer driving season, many
hoping to take family vacations, realizing they cannot this summer
because of these costs--I think a very reasonable question to ask is,
What is this Lieberman-Warner climate change bill going to do to an
already dire situation with regard to energy prices?
Unfortunately, I have concluded it is going to make that already dire
situation much worse. It is going to add on to gasoline prices, as my
colleague from Missouri has stated. It is going to add on to
electricity and other energy prices significantly.
On the job site, it is going to also encourage and exacerbate a very
worrisome trend of exporting jobs to other countries. After all of
that, it will do little or nothing with regard to the fundamental
climate change challenge because it mandates nothing on the part of
other industrialized powers such as China and India.
Several economic studies have specifically examined these questions.
Let's start with the price at the pump.
The Energy Information Administration estimates that this bill will
cause gasoline prices to increase--in addition to everything that is
going on now--between 41 cents a gallon to $1.01 a gallon by 2030. Now,
again, we are facing dramatically rising prices at the pump now, and
there seems to be no end in sight, in large part because we in Congress
have not acted in a bold manner to increase supply and do other things
to help ourselves at home. Yet this bill would move us even further in
the wrong direction: between 41 cents and $1.01 more per gallon by
2030.
According to the EIA, the average American uses 500 gallons of
gasoline every year. The average vehicle is driven more than 12,000
miles per year. So even now, at $4 a gallon, a 12-gallon gas tank costs
over $50 to fill, and we are going to increase that significantly? That
is moving in the wrong direction.
What about electricity and other important sources of energy?
According to the Environmental Protection Agency, this bill will
increase those prices--electricity prices--by 44 percent by 2030.
Again, our consumers are struggling under energy prices right now,
including electricity.
Winters are a tough time for folks in the Northeast. In my part of
the world, summer is the time of peak electricity load, and that is a
real price burden right now. Yet we are considering a bill that is
going to increase that, an already challenging and dire situation, by
44 percent?
Then, what about the jobs picture. We debate in this body all the
time how we can keep and expand and grow manufacturing jobs in this
country, how we can get away from the trend of exporting those jobs
overseas. Yet this bill will only make that problem worse as well.
The higher energy prices caused by the bill will force U.S.
manufacturers to compete unfavorably with lower cost countries
overseas. Realistically, companies will move their manufacturing base
out of the United States to an even greater extent, and many American
jobs will leave with them.
This country has already lost 3 million manufacturing jobs since
2000. We cannot afford to lose more. But what does the rigorous
analysis of this bill's impact show? Well, the National Association of
Manufacturers says up to 1.8 million jobs additionally--in addition to
all of those figures I have already quoted--could be lost by 2020 and 4
million jobs additionally could be lost by 2030.
The PRESIDING OFFICER (Mr. Casey). The Senator has 2 more minutes.
Mr. VITTER. Thank you, Mr. President.
Switching from coal plants to natural gas will drive job loss,
particularly in the chemical and fertilizer industries. The chemical
industry is extremely important to my State. Over 100,000 chemical jobs
have already been lost in the last 5 years due to the high price of
natural gas. Out of 120 new chemical plants under worldwide
construction, only one is being constructed in the United States.
So like the price of gasoline, like the price of electricity, on the
jobs front we have a very dire, challenging situation already, and this
bill would make it far worse.
The real kicker to all of this is that after all of that damage to
Americans, to their lifestyles, to our economy, what would this bill do
in terms of climate change?
I am very concerned it would do little or nothing because, of course,
it mandates no action on the part of other major powers and energy
consumers around the world, specifically China and India. Think about
it. As we push these jobs overseas, out of our country, where are those
jobs going? They are going to countries such as China and India that
would not be taking similar action, that would be continuing to build
coal-fired powerplants and use outdated technology, that would
contribute to the climate change problem. So much higher gasoline
prices, much higher electricity and other energy prices, significant
job loss--and what impact on the problem are we trying to address? In
my opinion, little or none.
Mr. President, I hope all of our colleagues on both sides of the
aisle hear from the American people, hear from them about the
challenges they face right now as they fill up their automobiles, as
they try to take summer vacations, as they struggle with other energy
prices, as they hope to keep their jobs right here in America.
The PRESIDING OFFICER. The Senator has used 8 minutes.
Mr. VITTER. If our colleagues hear that message, I am confident they
will vote down this dangerous bill.
Thank you, Mr. President. I yield back my time.
The PRESIDING OFFICER. The Senator from New Mexico.
Mr. DOMENICI. Mr. President, parliamentary inquiry: Does the Senator
from New Mexico have time under the regular order?
The PRESIDING OFFICER. There is 5 minutes remaining under morning
business.
Mr. DOMENICI. Mr. President, on Monday, I came to the Senate floor
and discussed the rising price of gasoline and the additional increases
that will result from the Boxer bill. These are not talking points.
They are facts from several economic studies done by the EIA, the EPA,
and many other groups.
Later today I will speak on the accomplishments we have already had
in working together to advance policies that will strengthen our energy
security and reduce our greenhouse gas emissions. We have not been
asleep. We
[[Page S5005]]
have done quite a bit. I will also speak about the bill before us and
the many concerns I have about its effectiveness, or lack thereof.
Right now, I want to speak on the impact this bill will have on the
American economy. Like many Senators, I believe global climate change
is a great challenge that our Nation should address. I joined Senator
Bingaman in expressing that sentiment in a bipartisan Senate resolution
3 years ago. That does not mean anybody has produced a bill or
legislation that matched up, in my opinion, with the concerns. The way
we are doing it in this bill is one way. It has never worked any place
it has been tried. I do not know why it should be expected to work in
America.
I have great respect for the Senators who have drafted cap-and-trade
legislation, but I remain deeply concerned about the steep costs and
dire consequences this bill will have on our Nation's economy. I am
troubled it will have very little, if any, environmental benefit.
To those who are continuing to say this is an absolute environmental
necessity, I hope they will try to gather from the experts who have
looked at it just how much environmental benefit we will get from this
bill.
The EPA, the Environmental Protection Agency, has concluded this bill
would reduce global greenhouse gas by just over 1 percent by 2050.
According to the IPCC's own benchmark, such a reduction would reduce
average temperatures by one-tenth of 1 degree Celsius in 2050. These
rates of reduction are far below the levels needed to mitigate the most
serious effects of global climate change.
Now, again, Mr. President, fellow Senators, I am not here just giving
a speech. I am trying to give you facts. If facts are the things that
come from studies by experts, we have facts on this bill. I repeat, the
rates of reduction are far below the levels needed to mitigate the most
serious effects of global climate change.
I am troubled by the various studies on this bill. Everyone has
concluded it will increase energy prices and decrease economic growth.
Especially in a time of record energy prices and economic slowdown, our
Nation simply cannot afford this bill. That is not just speculation or
clamor. It is a true probability that we cannot afford it.
While these studies confirm that the bill will have a negative impact
on our economy, they also reveal significant uncertainty as to what
that impact will be. According to CRA International, the only group
that included the low carbon fuel standard in its study, motor fuel
prices could increase by more than 140 percent by 2015. The EIA
projects that the bill could reduce industrial activity by up to 7.4
percent by 2030. The Heritage Foundation estimates that 600,000 jobs
could be lost by 2026.
Another cause for concern on the economic side is the estimate of the
impact on gross domestic product. While all studies project a negative
impact on GDP, estimates vary from a low of $444 billion, I say to my
friend, the occupant of the chair, to a high of $4.8 trillion. That
range of $4.5 trillion is as massive as it is inconclusive. It is
equivalent to $15,000 for every American. A careful review of these
studies should shake everyone inside of this Chamber.
We must realize that cap and trade is neither our best option nor the
only option for reducing greenhouse gas emissions. In fact, the
Congressional Budget Office Director recently testified that a rigid
cap-and-trade program is up to five times less efficient than a carbon
tax.
The experience of the European Union, which instituted an emissions
trading scheme in 2005, should be highly instructive in this debate.
The EU's emissions have continued to rise under cap and trade, by
about 1 percent per year. While the EU's system has failed to reduce
emissions, it is having an adverse economic impact with energy prices
rising and other carbon intensive businesses fleeing to the developing
world.
Europe's difficulties are not the only example of the shortcomings of
cap and trade. Last December, it caught my attention when, during an
interview on the Charlie Rose Show, former President Clinton lamented
the fate of the Kyoto Protocol, saying: 170 countries signed that
treaty and only 6--6 of 170--reduced their greenhouse gases to the 1990
level, and only 6 will do so by 2012 at the deadline.
Our best projections, combined with the precedent of failing cap and
trade regimes already in place, show that America should take a
different path. We have been told that this bill is a market-based
approach, but then we read a section that says, ``an emission allowance
shall not be a property right'' and, ``nothing in this Act or any other
provision of law shall limit the authority of the Administrator to
terminate or limit an emission allowance.''
Let me explain. These are allowances that are being paid for, in most
cases, and the CBO treats them as revenues and outlays. And, the
proponents of the bill expect these allowances to be traded like stock
and other securities. However, the bill fails to even provide a
property right for allowances and permits the EPA Administrator to take
allowances or limit them at any time, and in any way. This is the very
opposite of a market-based approach, and I will have an amendment in
the coming days to remedy this problem.
Furthermore, this bill allows nonemitters to hold possession and
trade these allowances. Presumably they will enter into contracts,
derivatives, swaps, and other complicated arrangements that may
undermine the oversight, transparency, and integrity of the market.
This is precisely one of the factors that led us to today's mortgage
crisis, and maybe this bill creates that blueprint for carbon.
My concerns with this bill are no different today than those that
were shared by the full Senate in 1997, when we passed a resolution
expressing our opposition to the Kyoto Protocol if brought to the
Senate for ratification. Our economy expanded by 5 percent in the
quarter before that vote. In the midst of robust growth, the Senate
overwhelmingly rejected the idea of a treaty that did not include
developing nations or ``could result in serious harm to the United
States economy.''
With many factors now limiting our economy, and with China's
emissions today much greater than in 1997, our resolve should be
stronger. High energy prices, a housing crisis, and a credit crunch
limited our growth to 0.9 percent last quarter. Clearly, we have plenty
of challenges to overcome. Our dependence on foreign energy is great,
our trade deficit is high, our national debt continues to rise, and our
dollar is weak.
As we debate this Boxer bill, we should ask ourselves two questions:
What will it achieve, and at what cost? I believe the answer to the
first question is very little--even by 2050, this bill will not provide
meaningful global environmental benefit. The answer to the second
question, however, is too much--this bill will disrupt our economy, add
to consumers' pain at the pump, and weaken our Nation's ability to
compete in the global marketplace.
Mr. President, I yield the floor.
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