Madam President, I rise to present two amendments to the budget resolution. They will be made in order and voted on tomorrow. The first is amendment No. 751. The idea behind that is very simple but important. It is to protect against what…
Madam President, I rise to present two amendments to the
budget resolution. They will be made in order and voted on tomorrow. The first is amendment No. 751. The idea behind that is very simple but important. It is to protect against what many of us fear, which is significant energy tax increases that will hit consumers, manufacturers, farmers, many others in our economy and hurt them as we are trying to recover from this crippling recession.
Specifically, my amendment would add language to what is currently in the budget resolution in the area of the deficit-neutral reserve fund to invest in clean energy and preserve the environment. In that section of the budget resolution, my amendment would simply insert language that it would ``not increase the cost of producing energy from domestic sources, including oil and gas from the Outer Continental Shelf or other areas, would not increase the cost of energy for American families, would not increase the cost of energy for domestic manufacturers, farmers, fishermen, or other domestic industry, and would not enhance foreign competitiveness against U.S. businesses.''
No one in this body--in fact, no one across America I know of--has a problem with efforts to invest in clean energy and to preserve the environment.
There is no debate there. What we have a problem with is when we come up to Washington and get in this stale either/or debate--either it is that or it is traditional oil and gas, as if the two have to be at constant loggerheads and as if we do not have to produce under both of those headings very aggressively to get out of the energy deficit we are in. I believe in new alternative renewable energy. I believe in new technology. But I also believe in traditional energy sources as an absolutely necessary bridge to get us to that future.
That gives rise to my amendment. I think it is crucial that we reject those aspects of the Obama budget which would tax traditional energy such as oil and gas, put an enormous burden on those providers in Louisiana and many other places around the country--folks who provide good, reliable energy domestically for our Nation right now--and I believe it would be a similar mistake to adopt whole hog in its present form the President's climate change proposals which would also place heavy taxes and heavy cost increases on energy consumers.
Now, where am I pulling this from? I am pulling it from the President's own budget proposals, his concrete, specific proposals on climate change and taxing domestic energy, and I am pulling it specifically from what he has laid out in terms of movement in that direction.
Perhaps the single clearest expression we have in that regard is a statement the President made about his cap-and-trade proposals in January of 2008 as he was in the midst of his Presidential campaign. He was speaking about cap and trade. He was very straightforward, very clear, and said:
Under my plan of a cap and trade system, electricity rates
would necessarily skyrocket regardless of what I say . . .
that will cost money. They will pass that money on to
consumers.
Electricity costs, energy costs, not just increasing at the margin but skyrocketing. Unfortunately, the President has followed through on that promise with regard to his specific climate change and energy proposals. When you look at his budget, they, in fact, ensure this sort of skyrocketing, both in terms of climate change proposals, which this quote directly refers to, but also in terms of producing traditional energy here in this country in areas of oil and gas.
The President of the United States has laid out significant tax increases on domestic energy. This would cost real jobs here and now. It would be a significant antistimulus, and it would hamper domestic production exactly when we need it the most.
Let me repeat--let me back up and repeat--I support investment in new technology. I support development of new alternative and particularly renewable forms of energy, and I have cast many votes in support, in furtherance of that goal. But it is not either/or. It has to be all of the above because we need to build that new energy future based on new renewable sources and new technology, but we also need to get there, and we also need the bridge to get there, which includes traditional energy, produced in this country, particularly natural gas, also oil, so we can cross that bridge, get to the future, without bankrupting ourselves in the process.
It is interesting, just as we are still apparently caught up in this stale either/or debate and we are attacking and taxing and burdening domestic oil and gas production, it is interesting that our neighbor to the north, Canada, is doing exactly the opposite. They are doing exactly the positive thing I am talking about by encouraging both--by encouraging new renewable forms of energy and at the same time encouraging domestic production of oil and gas.
Specifically, in early March of this year, March 3, the government of Alberta announced a new three-point incentive program specifically designed to help keep Albertans working in the province's energy sector during the current global economic slowdown. The highlights of the three-point plan include a drilling royalty credit for new conventional oil and natural gas wells; a new well incentive program, which offers a maximum 5-percent royalty rate for the first year of production from new oil or gas wells; and to encourage the cleanup of inactive oil and gas wells, the province will invest $30 million in a fund committed to abandoning and reclaiming old well sites. Those are exactly the sort of incentives in present law that the President would get rid of. Those are exactly the sort of areas where President Obama proposes moving in the opposite direction with tax increases which are disincentives for much needed domestic production.
To quote the Canadian Energy Minister, Mel Knight, on this announcement of their policy:
While we cannot make up for the impact that global
financial markets are having on Alberta, we are doing what we
can. This short-term incentive program introduces innovative
ways to help spur activity in our energy drilling and service
sector during this economic downturn.
That is exactly the sort of approach we should be taking here in this country. Yes, let's invest in new technology. Yes, let's develop new sources of energy, new and renewable. But at the same time, let's maintain and expand the domestic production of oil and gas as that bridge to the future, as that bridge to that new energy future that will take some time to build.
Unfortunately, our President is moving in the opposite direction. He is proposing to levy significant tax increases on domestic oil and gas production. That is bad for our energy security, and it is a major antistimulus which will keep us in recession even longer.
So, again, my amendment No. 751 is very simple. It would simply add to the relevant part of the budget resolution the following language, that it:
would not increase the cost of producing energy from domestic
sources, including oil and gas from the Outer Continental
Shelf or other areas; would not increase the cost of energy
for American families; would not increase the cost of energy
for domestic manufacturers, farmers, fishermen, or other
domestic industries; and would not enhance foreign
competitiveness against U.S. businesses. . . .
I commend that amendment to all of my colleagues, Democratic and Republican.
Secondly, Madam President, I will also formally present and have a vote on a second amendment tomorrow, amendment No. 787. Amendment No. 787 has to do with the TARP program, the so-called Troubled Asset Relief Program. Again, it is very simple. It would simply say, except for the TARP money which is already out the door and except for the $100 billion that is committed to the Treasury's newest plan to buy up toxic assets--which was the original point all along--with those two exceptions, the remainder of the TARP money will be returned to the taxpayer and bring down the debt, will reduce the debt. That is a significant amount of money. The entire TARP program, of course, is $750 billion. So far, approximately $371 billion is out the door. It would also create an exception under my amendment for $100 billion for this newly announced program of troubled assets. The remainder would go to buy down debt, not increase as much this horrendous debt we are on the road to doubling and tripling under this budget. That would save literally hundreds of billions of
dollars. I daresay, of all of the myriad dozens and dozens of budget amendments we will be asked to consider and vote on, this probably saves the most money, reduces debt the most. If it is not No. 1, it is very close to that.
CBO says they would expect us to never recoup all of that TARP money we are sending out the door. They are guesstimating we will only recoup half of that. So building that into the formula, this amendment will save hundreds of billions of dollars.
But there is another even more important reason to adopt this amendment; that is, to get back to the original intent of the TARP program and not allow it to continue to be used for a slush fund--first by the Bush administration, now by the Obama administration--for every random idea they develop every other week.
As we know, that is exactly the history of this fund and this program. It was proposed specifically to allow the Treasury to buy up troubled assets, to get those off the books of the troubled banks, and that is how it was sold to the Congress, 100 percent lock, stock, and barrel. In fact, Secretary Paulson, at the time, specifically said he did not want to, did not think it was a good idea to invest directly in troubled institutions and get preferred stock. Congress, without my vote, passed the program.
Then, within a few weeks, literally within a few weeks of that passage, everything changed. The original troubled asset program model was thrown out the window and the Treasury started doing exactly what Secretary Paulson said it should not do, exactly what he had previously rejected by directly infusing capital into banks and taking preferred stock.
Since then, there have been at least five other uses of the TARP program which have been imagined and instituted by, really, executive fiat because the underlying legislation has not changed at all.
Then we finally came around full circle this past month under the new Obama administration. Secretary Geithner said: Gee, why don't we use TARP, the Troubled Asset Relief Program, to actually buy up troubled assets? What a novel idea. It was the original idea. I guess if you go round and round often enough, you will eventually come back to where you started. And that is the new program that the Secretary said would take $100 billion.
My amendment, again, is simple. It says the money that is out the door is out the door. We cannot do anything about that, unfortunately. And we will reserve the $100 billion for that newly announced program, which was the original intent, sole intent of TARP. But everything else--everything else that was imagined and that TARP was used and abused to authorize since it was first passed--everything else has to stop. If the new administration thinks some of these things are necessary ideas, great; they should come back to Congress and get real and proper and appropriate authority for that activity, which TARP never was.
In doing so, in adopting this sort of amendment, we will save the taxpayer and reduce the debt several hundred billion dollars, well over $150 billion by any estimate. If we want to get serious about the debt, if we want to heed the call of the American people to control that runaway deficit and debt, this is the single biggest thing we can do in sight to do that to begin to turn the corner. I urge my colleagues to support this amendment. In contrast, voting against this amendment will essentially be a vote for everything Treasury has done and continues to do outside the original stated intent of the TARP program. I believe that is a very bad vote, both on the substance and in terms of where the American people rightly are.
I commend both of these amendments to all my colleagues. I look forward to further debate and voting on them as we proceed on the budget resolution tomorrow. I thank the Chair.
With that, I yield the floor.