[Congressional Record Volume 155, Number 49 (Monday, March 23, 2009)]
[House]
[Pages H3710-H3711]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      SAFE MARKETS DEVELOPMENT ACT

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Texas (Mr. Doggett) for 5 minutes.
  Mr. DOGGETT. Madam Speaker, with all of the recent talk about 
unearned bonuses, I want to talk about a bonus that we Americans can 
give to ourselves and the world. We can do that by approving President 
Obama's plan to ``make clean, renewable energy the profitable kind of 
energy.'' Because we can build a clean energy economy by reducing 
greenhouse gas emissions--carbon pollution--through a market-based 
system, as the President has proposed, I am today, together with a 
number of my colleagues, introducing the Safe Markets Development Act.
  This legislation will help to ensure that any future market for 
carbon allowances is not abused by price speculators or undermined by 
excessive price volatility. This is the first cap-and-trade measure to 
be filed in this Congress, and it is unique both in responding to 
concerns about market manipulation, and in its broad support bringing 
new members and a broader array of interests behind this new idea about 
how to resolve one aspect of our transition to a cleaner world.
  The Safe Markets bill offers an approach that will provide a narrow 
auction and trading environment for the start-up phase for a cap-and-
trade or cap-and-invest system. Experts on commodities markets tell us 
that price volatility is not unusual with new markets. And certainly 
legitimate concern recently over speculation in fossil fuel and 
financial markets must not stand in our way of new clean energy policy.
  How does this bill achieve science-based emission reductions? It 
creates an independent board with strict conflict-of-interest 
provisions and post-employment restrictions to determine the annual 
prices per ton of carbon necessary to meet science-based annual 
emission targets from 2012 to 2020. The Treasury Department would 
conduct quarterly allowance auctions designed to maintain this price. 
Under the legislation, the board would conduct an annual review of its 
success in meeting emission goals in order to adjust for gas prices to 
ensure compliance with the next year's targets.
  Just as a child removes training wheels after becoming comfortable 
cycling, or tries the shallow end of the pool before moving into the 
deep end, so too we can gain experience over these first eight years to 
move eventually to a more traditional cap-and-trade system.

                              {time}  1245

  Like President Obama, I believe that the best approach is one that 
relies

[[Page H3711]]

upon a 100 percent auction--that does not give away to polluters 
``pollute free'' cards. Budget Director Dr. Peter Orszag has correctly 
noted that giving away allowances would represent the largest corporate 
welfare program that has ever been enacted in the history of the United 
States. As noted in another recent statement by over 600 economists 
calling for auctioning all allowances, free allocations do little or 
nothing to protect families and businesses from higher energy costs. 
The significant shortcomings of the European cap-and-trade system are 
largely linked to the pursuit of this politically easy but very 
ineffective course. An abundance of free allocations just leads to more 
price speculation and would hinder the ability of the system to 
properly reduce emissions.
  The bill that I am introducing today represents the type of 
legislation that I will continue offering, building block by building 
block, to help us achieve a comprehensive solution. Next will be a plan 
that I will advance to ensure the competitiveness of American importers 
and exporters in the new energy economy. I am pleased this legislation 
enjoys support from a number of members of the Blue Dog coalition, such 
as Representative Jim Cooper and Representative Heath Shuler, as well 
as members of other caucuses here in Congress and a broader array of 
business interests such as the National Venture Capital Association.
  Last week, Speaker Pelosi brought together key House committee chairs 
to sign a statement that they are uniting behind one bill to achieve 
our shared goal with President Obama of a more accessible, affordable 
health care system for every American. I believe we need to do the same 
thing to resolve global warming. Today's bill represents one new 
element of that broader legislation that must be developed through 
cooperation and collaboration of the House Energy and Commerce and Ways 
and Means Committees as well as many other Members.
  I believe that a role exists for every Member of this Congress who is 
willing to work in good faith based on good science to end obstruction 
and reduce the real threat of global warming. The more Members we bring 
together, the more successful we will be in enacting the solution that 
President Obama has offered and move us to a clean energy economy.

                          ____________________