Madam Speaker, I yield myself 5 minutes. Madam Speaker, I rise today in strong opposition to H.R. 5376, the mislabeled Inflation Reduction Act. This is another reckless tax and spending spree that is not being accurately portrayed to the…
Madam Speaker, I yield myself 5 minutes.
Madam Speaker, I rise today in strong opposition to H.R. 5376, the mislabeled Inflation Reduction Act.
This is another reckless tax and spending spree that is not being accurately portrayed to the American people by Democrats.
Washington Democrats are trying to convince Americans that adding more reckless government spending and raising taxes during a recession will combat inflation. Even nonpartisan organizations say this bill will have virtually no impact on inflation and at least half of the expected tax revenue for next year is estimated to come from Americans making less than $400,000 a year.
Americans will see more IRS audits because this bill gives the IRS the ability to hire an army of new IRS agents. People should pay the taxes they owe, but instead of an army of IRS agents focusing on auditing low- to middle-income Americans, we need to put our resources into hiring more Border Patrol officers to protect the border and stop the flow of illicit drugs such as fentanyl.
More troubling parts of this bill are the healthcare provisions. I strongly disagree with using Medicare money to pay for ObamaCare subsidies for the wealthy. I introduced an amendment to keep Medicare savings in Medicare, which is already at risk of insolvency in the very near future. Unfortunately, House Democrats didn't even give this amendment a chance to be considered.
While Democrats praise government price setting, or, as they call it, negotiation, they fail to mention that such policies would lead to at least 15 fewer drugs coming to market, according to the nonpartisan Congressional Budget Office.
What are the 15 cures? Could it be the cure for Alzheimer's? Could it be the cure for diabetes? It could be.
They also won't mention that the nonpartisan CBO said this bill will lead to higher prices on new drugs.
Finally, Democrats are voting to give Secretary Becerra a $3 billion slush fund to set drug prices, despite HHS botching the response to the COVID-19 pandemic, including politicizing guidance that kept schools closed and young children masked in Head Start programs.
How can anyone support giving billions of dollars in more unrestricted authority to HHS that we know will lead to fewer cures for our loved ones?
Let me be clear: We absolutely need to address the cost of prescription
medication. In the Energy and Commerce Committee, there is a bipartisan bill ready to go, H.R. 19, that could achieve this, but the Democrats have repeatedly refused to bring the bill to the floor for a vote.
Our country is also facing an energy crisis created by President Biden and Washington Democrats' war on American energy. Despite this, the Democrats' solution is to double down on the nearly $400 billion to be spent on far-left Green New Deal policies and impose billions of dollars of tax increases on energy that will be passed to consumers.
Unbelievably, even as energy prices are at historically high levels, they have included a new tax on natural gas and revived a tax on petroleum products that will cost consumers tens of billions of dollars.
I filed an amendment to exempt our defense bases from this natural gas tax, but again, Democrats refused even to consider it.
Democrats want to create a $27 billion slush fund at the EPA for a national climate bank to subsidize the solar energy that is heavily dominated by the Chinese Communist Party and even spend $9 billion in rebates for wealthy Americans to green up their homes with new appliances and electric vehicles.
To conclude, this legislation not only crushes hope for patients and their families living with devastating diseases that currently lack a treatment or a cure, but it also significantly undermines our economic and national security.
I cannot vote for the more appropriately named inflation expansion act. Madam Speaker, I urge my colleagues to join me in opposing it, and I reserve the balance of my time.
Madam Speaker, I yield 2 minutes to the gentleman from Michigan (Mr. Upton), the chair emeritus of the Committee on Energy and Commerce, who is retiring. We are going to miss him.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield 3 minutes to the gentleman from Texas (Mr. Burgess), my good friend on the Committee on Energy and Commerce.
Madam Speaker, I include in the Record an editorial from The Wall Street Journal titled, ``Tilting at Climate Windmills,'' which notes that the massive spending bill reduces global temperatures at the most by 0.28 degrees.
[From the Wall Street Journal]
Tilting at Climate Windmills
Shumer-Manchin will have little effect on the world's temperature
(By Editorial Board)
Nearly all of Washington--Democrats, the press, lobbyists--
is taking a victory lap with Senate passage of the Schumer-
Manchin tax, climate and drug price control bill. The climate
lobby is especially thrilled, claiming a historic victory
that will reduce temperatures, hold back the rising sea, and
save the planet.
Or, maybe not. Our contributor Bjorn Lomborg looked at the
Rhodium Group estimate for CO2 emissions reductions from
Schumer-Manchin policies. He then plugged them into the
United Nations climate model to measure the impact on global
temperature by 2100. He finds the bill will reduce the
estimated global temperature rise at the end of this century
by all of 0.028 degrees Fahrenheit in the optimistic case. In
the pessimistic case, the temperature difference will be
0.0009 degrees Fahrenheit.
In other words, the climate provisions in this ballyhooed
legislation will have no notable impact on the climate.
This isn't surprising. No matter what the U.S. does to
reduce greenhouse-gas emissions, it will be dwarfed by what
the rest of the world does. China, India and Africa aren't
about to stop burning fossil fuels as they develop, and China
is sprinting ahead to build huge new coal capacity despite
its pledge to start reducing emissions after 2030.
Barring a breakthrough in battery or other technology,
carbon emissions will continue to increase. No one knows how
much the Earth's temperature will warm, though even the U.N.
model has modified its estimates from the apocalyptic
predictions of some years ago.
Schumer-Manchin won't reduce inflation, won't reduce the
budget deficit, and it won't reduce the world's temperature.
What it will do is transfer some $369 billion from taxpayers
and drug companies to the pockets of green energy businesses
and investors. It will tighten the hold that politicians have
on the allocation of capital, as they pick winners and losers
with their grants and tax credits. Everyone will get a nice
warm feeling as they pretend they are cooling the climate.
This bill will not do what those on the floor today have said it will do.
Madam Speaker, I yield 2 minutes to the gentlewoman from Iowa (Mrs. Miller-Meeks).
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield myself such time as I may consume.
This bill drives a massive build-out of unreliable wind and solar power, not nuclear, not natural gas, and not baseload power.
I include in the Record a report from the North American Electric Reliability Corporation, the authority on electric reliability, which underscores the risk of blackouts from the oversupply of weather- dependent energy.
[From North American Electric Reliability Corporation, May 2022]
2022 Summer Reliability Assessment
Key Findings
NERC's annual SRA covers the upcoming four-month (June-
September) summer period. This assessment provides an
evaluation of generation resource and transmission system
adequacy and energy sufficiency to meet projected summer peak
demands and operating reserves This assessment identifies
potential reliability issues of interest and regional topics
of concern. While the scope of this seasonal assessment is
focused on the upcoming summer, the key findings are
consistent with risks and issues that NERC has highlighted in
the 2021 Long-Term Reliability Assessment and other earlier
reliability assessments and reports.
The following findings are NERC and the ERO Enterprise's
independent evaluation of electricity generation and
transmission capacity and potential operational concerns that
may need to be addressed for the 2022 summer.
Summer Resource Adequacy Assessment and Energy Risk Analysis
Midcontinent ISO (MISO) faces a capacity shortfall in its
North and Central areas, resulting in high risk of energy
emergencies during peak summer conditions. Capacity shortfall
projections reported in the 2021 LTRA and as far back as the
2018 LTRA have continued Load serving entities in 4 of 11
zones entered the annual planning resource auction (PRA) in
April 2022 without enough owned or contracted capacity to
cover their requirements. Across MISO, peak demand
projections have increased by 1.7 percent since last summer
due in part to a return to normal demand patterns that have
been altered in prior years by the pandemic. However, more
impactful is the drop in capacity in the most recent PRA:
MISO will have 3,200 MW (2.3 percent) less generation
capacity than in the summer of 2021. System operators in MISO
are more likely to need operating mitigations, such as load
modifying resources or non-firm imports, to meet reserve
requirements under normal peak summer conditions. More
extreme temperatures, higher generation outages, or low wind
conditions expose the MISO North and Central areas to higher
risk of temporary operator-initiated load shedding to
maintain system reliability.
At the start of the summer, a key transmission line
connecting MISO's northern and southern areas will be out of
service. Restoration continues on a 4-mile section of 500 kV
transmission line that was damaged by a tornado during severe
storms on December 10, 2021. The transmission outage affects
1,000 MW of firm transfers between the Midwestern and
Southern MISO system that includes parts of Arkansas,
Louisiana, and Mississippi. The transmission line is expected
to be restored at the end of June 2022.
Anticipated resource capacity in Saskatchewan will be
strained to meet peak demand projections, which have risen by
over 7.5 percent since 2021. SaskPower is projected to remain
above their planning reserve margin threshold and have
sufficient operating reserves for normal peak conditions.
However, external assistance is expected to be needed in
extreme conditions that cause above-normal generator outages
or demand.
Drought conditions create heightened reliability risk for
the summer. Drought exists or threatens wide areas of North
America, resulting in unique challenges to area electricity
supplies and potential impacts on demand:
Energy output from hydro generators throughout most of the
Western United States is being affected by widespread drought
and below-normal snowpack. Dry hydrological conditions
threaten the availability of hydroelectricity for transfers
throughout the Western Interconnection. Some assessment
areas, including WECC's California-Mexico (CA/MX) and
Southwest Reserve Sharing Group (SRSG), depend on substantial
electricity imports to meet demand on hot summer evenings and
other times when variable energy resource (e.g., wind, solar)
output is diminishing. In the event of wide-area extreme heat
event, all U.S. assessment areas in the Western
Interconnection are at risk of energy emergencies due to the
limited supply of electricity available for transfer.
Extreme drought across much of Texas can produce weather
conditions that are favorable to prolonged, wide-area heat
events and extreme peak electricity demand. Resource
additions to the ERCOT system in recent years-predominantly
solar and some wind--have raised Anticipated Reserve Margins
above Reference Margin Levels and ease concerns of capacity
shortfalls for normal peak demand. However, extreme heat
increases peak demand and can be accompanied by weather
patterns that lead to increased forced outages or reduced
energy output from resources of all types. A combination of
extreme peak demand, low wind, and high outage rates from
thermal generators could require system operators to use
emergency procedures, up to and including temporary manual
load shedding.
As drought conditions continue over the Missouri River
Basin, output from thermal generators that use the Missouri
River for cooling in Southwest Power Pool (SPP) may be
affected in summer months. Low water levels in the river can
impact generators with once-through cooling and lead to
reduced output capacity. Energy output from hydro generators
on the river can also be affected by drought conservation
measures implemented in the reservoir system. Outages and
reduced output from thermal and hydro generation could lead
to energy shortfalls at peak demand. Periods of above normal
wind
generator output may give some relief, however, this energy
is not assured. System operators could require emergency
procedures to meet peak demand during periods of high
generator unavailability.
All other areas have sufficient resources to manage normal
summer peak demand and are at low risk of energy shortfalls
from more extreme demand or generation outage conditions.
Anticipated Reserve Margins meet or surpass the Reference
Margin Level, indicating that planned resources in these
areas are adequate to manage the risk of a capacity
deficiency under normal conditions. Furthermore, based on
risk scenario analysis in these areas, resources and energy
appear adequate.
Other Reliability Issues for Summer
Supply chain issues and commissioning challenges on new
resource and transmission projects are a concern in areas
where completion is needed for reliability during summer peak
periods. Assessment areas report that some generation and
transmission projects are being impacted by product
unavailability, shipping delays, and labor shortages. At the
time of this assessment publication, WECC-CA/MX, and WECC-
SRSG have sizeable amounts of generation capacity in
development and included in their resource projections for
summer. In Texas (ERCOT), transmission expansion projects are
underway to alleviate transmission constraints and maintain
system stability as the BPS is adapted to rapid growth in new
generation; delays or cancellations of transmission projects
can cause transmission system congestion during peak
conditions and affect the ability to serve load in localized
areas. Should project delays emerge, affected Generator
Owners (GOs) and Transmission Owners must communicate changes
to Balancing Authorities (BAs), Transmission Operators, and
Reliability Coordinators, so that impacts are understood and
steps are taken to reduce risks of capacity deficiencies or
energy shortfalls.
Coal-fired GOs are having difficulty obtaining fuel and
non-fuel consumables as supply chains are stressed. No
specific BPS reliability impacts are currently foreseen;
however, coal stockpiles at power plants are relatively low
compared to historical levels. Some owners and operators
report challenges in arranging replenishment due to mine
closures, rail shipping limitations, and increased coal
exports. Some GOs have implemented controls to maintain
sufficient stocks for peak months while BAs and Reliability
Coordinators are continuing to conduct fuel surveys and
monitoring the situation.
The electricity and other critical infrastructure sectors
face cyber security threats from Russia and other potential
actors amid heightened geopolitical tensions in addition to
ongoing cyber risks. Russian attackers may be planning or
attempting malicious cyber activity to gain access and
disrupt the electric grid in North America in retaliation for
support to Ukraine. The Electricity Infrastructure Sharing
and Analysis Center (E-ISAC) continues to exchange
information with its members and has posted communications
and guidance from government partners and other advisories on
its Portal. E-ISAC members are encouraged to check in
regularly to receive updates and to actively share
information regarding threats and other malicious activities
with the E-ISAC to enable broader communication with other
sector participants and government partners.
Unexpected tripping of solar photovoltaic
(PV) resources during grid disturbances continues to be a
reliability concern. In May and June 2021, the Texas
Interconnection experienced widespread solar PV loss events
like those previously observed in the California area.
Similarly, four additional solar PV loss events occurred
between June and August 2021 in California.
This bill does not do what Democrats say it will do.
Madam Speaker, I yield 3 minutes to the gentleman from Louisiana (Mr. Scalise), the Republican whip.
Madam Speaker, I yield 2 minutes to the gentleman from Ohio (Mr. Latta), a member of the Committee on Energy and Commerce.
Madam Speaker, I yield 2 minutes to the gentleman from Florida (Mr. Bilirakis), my good friend.
Madam Speaker, I yield 2 minutes to the gentleman from Ohio (Mr. Johnson), my good friend,
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Pfluger).
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I include in the Record a Bloomberg News story reporting how power costs are already forcing U.S. factories to shut down, featuring an aluminum mill in my district, in Hawesville, Kentucky.
This underscores the risk to our Nation's competitiveness that these policies bring about, and this bill will not do what those on the floor say that it will do.
[From Bloomberg News, July 7, 2022]
The US Industrial Complex Is Starting To Buckle From High Power Costs
(By Joe Deaux and Naureen S Malik)
It was only a matter of time, really.
Europe's fertilizer plants, steel mills, and chemical
manufacturers were the first to succumb. Massive paper mills,
soybean processors, and electronics factories in Asia went
dark.
Now soaring natural gas and electricity prices are starting
to hit the US industrial complex.
On June 22, 600 workers at the second-largest aluminum mill
in America, accounting for 20 percent of US supply, learned
they were losing their jobs because the plant can't afford an
electricity tab that's tripled in a matter of months. Century
Aluminum Co. says it'll idle the Hawesville, Kentucky, mill
for as long as a year, taking out the biggest of its three US
sites. A shutdown like this can take a month as workers
carefully swirl the molten metal into storage so it doesn't
solidify in pipes and vessels and turn the entire facility
into a useless brick. Restarting takes another six to nine
months. For this reason, owners don't halt operations unless
they've exhausted all other options.
It's the most poignant signal yet of what's to come-but not
the only one.
At least two steel mills have begun suspending some
operations to cut energy costs, according to one industry
executive, who asked not to be identified because the
information isn't public. In May, a group of factories across
the US Midwest warned federal energy regulators that some
were on the verge of closing for the summer or longer because
of what they described as ``unjust and unreasonable''
electricity costs. They asked to be wholly absolved of some
power fees-a request that, if granted, would be
unprecedented.
It's no wonder. By the beginning of June, natural gas
prices had tripled what they were a year earlier, threatening
households and businesses alike with some of the biggest
utility bills they've ever seen. This summer, electricity
rates for industrial customers are set to hit their highest
levels ever, based on US government forecasts. Because US
plants and factories depend on both electricity and gas, this
could very well be the moment the rug's pulled out from under
American industry.
Manufacturing overtime hours have already declined for
three straight months, the longest downward stretch since
2015, and a measure of US manufacturing activity weakened in
June to a two-year low as new orders contracted. A week after
Century's announcement, the nation's largest aluminum
producer Alcoa Corp. said it's closing a third of its
production at a mill in Indiana because of ``operational
challenges.''
These headwinds could eventually threaten what some see as
a longer-term boom in US manufacturing as corporations look
to reduce their dependence on China. Executives are
highlighting plans to relocate production at a greater clip
this year than they even did in the first six months of the
pandemic, but energy and labor costs will pose challenges for
any company looking to build a new operation in the US.
Manufacturing isn't the bellwether of the US economy it
once was. The plants that 70 years ago employed more than a
third of the nation's labor force now account for about 8
percent of nonfarm workers. An industrial downturn on its own
won't tip us into a recession, but it could if combined with
weakness in other sectors. While the might of American
industry has significantly weakened over the years, it still
accounts for more than a tenth of US gross domestic product-
and for that reason holds an outsize place in the hearts of
politicians whose factory visits are a perennial staple of
campaigns.
Plants will try to operate more efficiently to lower their
utility bills, but there are limits to how much they can
save. In a lot of regions, industrial users aren't just
paying for the power they use; they're also paying for what's
known as capacity, essentially an insurance policy that keeps
enough power on the grid for the most extreme of demand days.
(Think hot summer days when everyone's air conditioners are
blasting.) And with wholesale energy prices near the highest
levels since 2008 and aging power plants shutting, those
insurance premiums are growing exponentially, particularly in
the middle of the country where much of the country's
industrial operations lie.
One potential bright spot, or an indication of how
desperate industrial companies are becoming: Some are
partnering with startups to explore alternative energy
sources: Nature Energy says it expects to start building
facilities this year to collect and convert cow dung and crop
waste into renewable natural gas. Power Edison, which is
proposing to stack massive batteries on barges that can be
shipped around to customers in need, is attracting more
attention.
As Katie Coleman, an attorney for Texas Association of
Manufacturers, puts it, her members have three big cost
drivers: taxes, electricity, and labor. Those three vary in
proportion over time, she says, ``but right now, electricity
is an even larger factor than normal.'' Some companies with
multiple factories are trying to decide which plants to keep
running this summer based on how cheap they can get their
electricity, she says, and some may decide which to
permanently close. Such is the case for Century, which will
keep operations running in Iceland where power is incredibly
cheap because of local renewable energy resources.
There is a lot to blame for this year's surge in US energy
prices: Russia's invasion of Ukraine; the ensuing surge in US
natural gas exports to markets overseas; extreme weather
brought on by climate change; aging fossil-fuel-fired power
plants retiring at a record pace. They're all coinciding with
a sharp rebound in post-pandemic demand.
One group of manufacturers will say they told us so. The
Industrial Energy Consumers of America has been calling on
the Biden administration for months to limit the amount of
gas US energy suppliers send overseas, warning that exports
would eventually lead to supply shortages at home. But a
measure like that would set a dangerous precedent and
threaten the billions of dollar of investments in liquefied
natural gas terminals along US shores. Shipments overseas
have so far remained unfettered.
How severe of an industrial downturn we're heading into
depends on a lot of variables -chief among them being how
long energy prices remain high. Milder weather, fewer power
plant disruptions, and more solar and wind farm deployments
could shift the natural gas market back into an era of lower
prices and improve the fortunes of manufacturers. Today, we
are far from that.
Michael Harris, whose firm Unified Energy Services LLC buys
fuel for industrial clients, says costs have risen so high
that some are having to put millions of dollars of credit on
the line to secure power and gas contracts. ``That can be
devastating for a corporation,'' he says. ``I don't see any
scenario, absent explosions at US LNG facilities'' that trap
supplies at home, in which gas prices are headed lower in the
long term.
Madam Speaker, I yield 2 minutes to the gentleman from Georgia (Mr. Carter).
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield 2 minutes to the gentleman from Ohio (Mr. Balderson).
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, there is nothing in the bill that increases our production of natural gas. The Methane Emissions Reduction Program is a natural gas tax that will impact the entire economy. The natural gas tax will make everything more expensive for American families. The natural gas tax will increase the price of fuel, fertilizer, and food.
Madam Speaker, 180 million Americans use natural gas to heat homes and run appliances. About 5\1/2\ million businesses use it to run their workplaces and manufacturing facilities.
This bill will give EPA sweeping authority to expand the natural gas tax to other sectors, including agriculture. There are no guardrails to prevent the EPA from ratcheting up the natural gas tax in years ahead.
Madam Speaker, I yield 2\1/2\ minutes to the gentlewoman from the State of Tennessee (Mrs. Harshbarger).
Madam Speaker, I yield 1 minute to the gentleman from California (Mr. McCarthy), who is one of my good friends here in Congress, a great leader, and the Republican leader in the House of Representatives.
Madam Speaker, on that I demand the yeas and nays.