Mr. Speaker, I yield myself such time as I may consume. I rise in opposition to this resolution. My Republican friends continue to be in a state of denial of the climate crisis, the real and urgent sense that we have now. Last month, in…
Mr. Speaker, I yield myself such time as I may consume.
I rise in opposition to this resolution.
My Republican friends continue to be in a state of denial of the climate crisis, the real and urgent sense that we have now.
Last month, in Houston, I had an opportunity to meet with two dozen leaders of the renewable energy sector. They weren't concerned about rolling back the things that we have done. They want to accelerate it.
The chairman and my Republican colleagues have spoken at length about the importance of increasing accountability for China's unfair trade practices and maintaining protections for American workers.
It is interesting, though, that these same individuals voted against Democratic provisions to strengthen our antidumping and circumvention laws and reauthorize the Trade Adjustment Assistance in the America COMPETES Act.
They all voted against the Inflation Reduction Act's provision to incentivize clean energy domestic manufacturing. In fact, 2 days ago, they voted to repeal these provisions.
This resolution would undermine America's hard-fought wins in the Inflation Reduction Act.
There are problems. No doubt, the Chinese are likely cheating.
President Biden struck the right balance by instituting a temporary freeze on these solar tariffs. This approach is how we fix the long- term problem.
Importantly, he has said that he does not intend to extend the freeze beyond June 2024 and that he will veto this resolution if it gets to his desk.
My friends on the other side of the aisle are concerned about working men and women. I would point out that the President's position is consistent with the leaders in organized labor from IBEW, from LIUNA, the Carpenters, and the Operating Engineers, people who represent these hardworking Americans, as well as organizations in the environmental community and the National Taxpayers Union.
This is a 2-year bridge that gives the solar industry the time needed to reorient supply chains away from China and produce panels domestically. We can't do that overnight, but we are committed to making that change.
For too long, the United States has lacked a cohesive renewable energy manufacturing policy. As a result, we have outsourced far too much of our production.
In 2021, there were only 7 gigawatts of domestic manufacturing capacity. That is the reality. But the Inflation Reduction Act marks a significant departure from those flawed policies of the past. This legislation bakes in domestic content bonuses in clean energy credits to incentivize the industry to onshore production. But that takes time. It also revives the advanced manufacturing credit and creates a new manufacturing production tax credit.
The Inflation Reduction Act has already led to the announcement of more than 45 gigawatts of domestic solar manufacturing capacity. Again, my Republican colleagues voted to repeal all of those incentives just 2 days ago.
Ending the President's temporary initiative here would immediately institute high, retroactive tariffs in the hundreds of percent that would hurt solar development, increase energy costs, and lead to a supply reduction at exactly the moment when the climate crisis means that we need to ramp it up.
Many of us in Congress worked for years to achieve the policy victories contained in the Inflation Reduction Act.
The clean energy tax credits are projected to reduce carbon emissions 40 percent by 2030, giving us a legitimate chance to meet the goals contained in the Paris climate agreement. We should resist these efforts to undermine this hard-won victory for America.
I would encourage my colleagues to take a hard look at the legislation and then reject it when it comes before us for a vote.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I include in the Record a statement from the carpenters union and operating engineers union, who oppose legislation that eliminates thousands of jobs; the International Brotherhood of Electrical Workers; and LIUNA.
IUOE Contact: Jeff Soth
UBC Contact: Jen McKernan
Carpenters and Operating Engineers Unions Oppose Legislation That
Eliminates Thousands of Jobs
Washington, DC.--The following statement was issued today
by James T. Callahan, General President of the International
Union of Operating Engineers, and Douglas J. McCarron,
General President of the United Brotherhood of Carpenters and
Joiners of America, regarding their unions' opposition to
legislation that will eliminate thousands of American jobs:
Last year, the Department of Commerce opened a
circumvention inquiry, alleging that four Southeast Asian
countries were circumventing tariffs and duties on solar
cells and modules from the People's Republic of China. The
inquiry generated massive uncertainty in the domestic solar
market by suggesting possible retroactive tariffs as high as
250 percent. This threat resulted in a drop of 20 percent
fewer solar construction and installation jobs across the
United States.
President Biden took action to preserve these jobs, issuing
Emergency Proclamation 10414 to prevent tariffs on any solar
module and cell imports from the four countries until June
2024. House Joint Resolution 39 will repeal the President's
Proclamation and eliminate thousands of jobs in the American
solar industry.
``Repealing President Biden's Proclamation will result in
retroactive duties and tariffs that would jeopardize 30,000
construction and 4,000 manufacturing jobs,'' said James T.
Callahan, General President of the International Union of
Operating Engineers. ``We are not prepared to stand by and
let some partisan dispute eliminate Operating Engineers' jobs
and slow the deployment of clean energy.''
``The President's Proclamation saves Carpenters' jobs and
smooths the development of the domestic solar manufacturing
industry. Today, we're seeing the American manufacturing
sector respond to incentives in the Inflation Reduction Act
and develop homegrown solar modules,'' said Carpenters Union
General President Douglas J. McCarron. ``Now is not the time
to disrupt the solar industry and layoff thousands of union
workers just as we're getting a foothold in the burgeoning
solar business.''
The International Union of Operating Engineers and United
Brotherhood of Carpenters and Joiners urge Congress and
members of the Ways and Means Committee to vote against House
Joint Resolution 39, which will repeal the administration's
Proclamation and eliminate thousands of union jobs, slow the
deployment of renewable energy, and generate unnecessary
greenhouse gases.
Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from Texas (Mr. Doggett).
Mr. Speaker, I appreciate my colleagues' newfound concern for the environment and for the industry.
Mr. Speaker, I include in the Record correspondence from the solar industry in the United States opposing their resolution and supporting our position.
Re: Please Oppose Retroactive Duties and Protect American
Clean Energy Jobs and Investment With a ``No'' Vote on
the Auxin CRA (H.J. Res. 39/S.J. Res. 15).
We are writing to respectfully ask that you oppose H.J.
Res. 39/S.J. Res. 15. Enactment of this resolution would
impose over $1 billion in retroactive duty liability,
increase energy costs for consumers, cost thousands of
American jobs, and hamstring efforts to reduce greenhouse gas
emissions.
Last year, a single company filed anti-circumvention
petitions with the Department of Commerce (Commerce). The
threat of duties ranging from 50 percent-250 percent on solar
panels and cells from Malaysia, Vietnam, Thailand, and
Cambodia called for in the petitions abruptly froze solar
supply chains. A significant number of domestic solar
projects experienced cancellations or delays as a result.
To address this disruption, after Commerce accepted the
petitions and initiated a set of investigations, President
Biden issued an emergency declaration that included a
temporary 2-year pause on potential duties arising from the
investigations. This pause allowed planned solar projects to
move forward while the investigations proceeded.
American stakeholders subsequently relied on Commerce's
regulations to make significant business and economic
decisions. Nullifying Commerce's rulemaking as provided for
in H.J. Res. 39/S.J. Res. 15 would penalize companies, acting
in accordance with the law, by imposing large (up to 254
percent), unanticipated retroactive duty liability for these
stakeholders--back to April 1, 2022. Going back on this
federal commitment would create a chilling effect on American
business, setting a terrible precedent that undermines
America's competitiveness in the global marketplace.
Passing H.J. Res. 39/S.J. Res. 15 would also stall or
cancel planned solar projects, eliminate 30,000 jobs,
including 4,000 manufacturing jobs, and $4.2 billion of
investment in domestic solar projects. 4GW of planned solar
projects representing roughly 14 percent of the industry's
anticipated deployment in 2023 would be cancelled. This in
turn would increase CO2 emissions by 24 million
metric tons.
American businesses need certainty and a bridge to domestic
manufacturing. Right now, only about one-third of U.S. demand
for solar panels (including both crystalline silicon and thin
film photovoltaic panels) can be met with domestic
production, and domestic manufacturers are sold out for the
next 2-3 years. It is our preference to source solar panels
domestically, and we are heartened by the rapid expansion of
domestic solar manufacturing that is currently occurring.
However, ramping up this production capacity across the solar
supply chain will take time, and the temporary 2-year duty
pause provides a necessary bridge to the point where domestic
production capacity is more capable of meeting demand.
For these reasons, and to avoid needless disruption in the
solar marketplace, we respectfully ask that you oppose H.J.
Res. 39/S.J. Res. 15. Thank you in advance for your
consideration.
Sincerely,
Solar Energy Industries Association; American Clean Power;
American Council on Renewable Energy; Edison Electric
Institute; E2; Silicon Valley Leadership Group; Clean Energy
Buyers Association; Advanced Energy United; Coalition for
Community Solar Access.
Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. Thompson), who played an instrumental role in crafting many of these energy provisions. I love the partnership with him.
Mr. Speaker, I yield 1 minute to the gentleman from Illinois (Mr. Davis).
Mr. Speaker, I include in the Record a statement from the National Taxpayers Union opposing the proposal from our Republican friends to raise tariffs on solar goods.
[From National Taxpayers Union, Apr. 25, 2023]
NTU Urges All Representatives To Vote ``NO'' on House Joint Resolution
39, Congressional Review Act Legislation on Solar Tariffs
Just weeks after the House of Representatives passed The
Lower Energy Costs Act (H.R. 1), the House will consider a
proposal to increase energy costs by raising tariffs on solar
goods.
A proposed Congressional Review Act resolution, H.J. Res.
39, would nullify a two-year suspension of tariffs on certain
solar panels from Cambodia, Malaysia, Thailand, or Vietnam
that use parts and components manufactured in China.
National Taxpayers Union (NTU) does not believe that
Congress should increase energy costs via the Congressional
Review Act.
The tariffs in question were initially imposed on
Crystalline Silicon Photovoltaic Cells from the People's
Republic of China in 2012. In 2022, in response to a request
from Auxin Solar Inc., the Commerce Department determined
that some of these duties were being circumvented through the
inclusion of Chinese parts on goods imported from other
countries.
NTU agrees with the House Ways and Means Committee that
trade policy should protect the interests of American workers
and our economy as a whole. However, the initial imposition
of solar tariffs resulted from a flawed and biased system.
The Commerce Department and U.S. International Trade
Commission (USITC) failed to utilize cost-benefit analysis to
consider the impact of tariffs on the U.S. economy. Solar
taxes were imposed without consideration of their impact on
U.S. jobs, on the energy industry, on manufacturing, or on
American households' energy bills.
A more fundamental question than whether foreign suppliers
are attempting to circumvent solar tariffs is whether
Congress should continue to allow the Commerce Department and
USITC to impose tariffs on solar goods, tin mill products,
fertilizer, and other goods without first considering the
impact of such tariffs on all Americans, not just the
industry seeking protection.
These tariffs would protect Auxin from import competition.
Ironically, according to the federal National Renewable
Energy Laboratory, as of 2019 most of the components and
materials used by Auxin are imported. Earlier this year Auxin
even asked the Office of the U.S. Trade Representatives to
exclude certain Chinese-produced solar goods from Section 301
tariffs, writing: ``Removing tariffs on junction boxes, solar
glass, EVAs, and solar module assembly equipment would free
up further resources to hasten the expansion of the U.S.
solar value chain, ultimately yielding a more secure domestic
solar supply chain.''
At a time when many taxpayers are struggling with high
energy prices--brought on, in part, by flawed government
policies--Congress should not use the Congressional Review
Act to increase taxes on American energy users. NTU urges you
to reject H.J. Res. 39.
Roll call votes on H.J. Res. 39 will be included in NTU's
annual Rating of Congress and a ``NO'' vote will be
considered the pro-taxpayer position.
If you have any questions, please contact Bryan Riley,
Director of NTU's Free Trade Initiative.
Mr. Speaker, I yield 1 minute to the gentleman from Virginia (Mr. Beyer).
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from California (Mr. Panetta).
Mr. Speaker, I yield 1 minute to the gentlewoman from California (Ms. Chu).
Mr. Speaker, I include in the Record a statement from the League of Conservation Voters, Natural Resources Defense Council, Sierra Club, Climate Action Campaign, Environmental Law and Policy Center, Clean Energy for America, Chesapeake Climate Action Network, Earthjustice, Environmental Defense Fund, and Union of Concerned Scientists that urges the rejection of the proposal that our Republican friends are making.
April 17, 2023.
Dear Member of Congress: The undersigned groups write to
express our opposition to the Congressional Review Act (CRA)
resolutions of disapproval (H.J. Res 39 and S.J. Res 15)
aimed at reversing President Biden's temporary suspension of
tariffs on certain solar cells and panels from manufacturers
in Cambodia, Malaysia, Thailand and Vietnam. Passage of these
resolutions could destabilize solar supply chains, harm
ongoing deployment of large scale solar projects, threaten
high-quality solar construction jobs, and impede our nation's
decarbonization goals.
Proclamation 10414, issued by President Biden in June 2022,
gave the U.S. Department of Commerce authority to issue
regulations suspending new solar tariffs until June 2024
while the department proceeded with its investigation into
claims that facilities in the Southeastern Asian countries
were circumventing existing tariffs on Chinese solar
companies. The Commerce Department subsequently issued rules
implementing the delay, and H.J. Res 39 and S.J. Res 15 would
nullify that rulemaking.
Our organizations support both a shift to cleaner and
fairer supply chains for clean energy, as well as the rapid
deployment of clean energy in order to meet the urgency of
the climate crisis. Thanks in part to the expansive
investments in clean energy manufacturing and high quality
job standards included in the Inflation Reduction Act (IRA),
we are now well positioned to achieve both of these goals.
The administration's strong implementation of the IRA's
domestic content provisions is a critical piece to further
drive manufacturing buildout in the U.S. However, passage of
these CRA resolutions would undermine the ability of the U.S.
solar industry to succeed in accelerating the shift to more
clean energy on the power grid.
The President's decision to pause tariffs for two years is
providing U.S. businesses with much-needed certainty after
several months of project cancellations and delays last year
due to the Commerce Department's investigation, which caused
solar deployment to decline by 30 percent--10 gigawatts below
expectations.
We have already seen more than $13 billion in domestic
solar manufacturing announcements since the passage of the
IRA. While more buildout is needed, this demonstrates that
domestic investment is headed in the right direction.
Additional panel shortages, as we saw during the Commerce
Department investigation, would once again debilitate U.S.
utility-scale solar projects and jobs. And if a CRA
resolution rolls back the President's two-year tariff pause,
then debilitating shortages and lost investment capital could
begin this year.
Beyond the harm to solar deployments across the U.S., there
is the larger issue of the CRA being the wrong tool for
Congressional oversight. Congress has always had the power to
create, modify or eliminate rules using the regular
legislative process. The CRA provides a more extreme path by
repealing a rule in its entirety and preventing an agency
from issuing a new rule that is ``substantially the same,''
an undefined phrase that can essentially freeze the
regulatory process.
In this instance, while the Commerce Department
investigation of tariff circumvention was being conducted,
the administration sought to provide enough lead time for
domestic solar panel manufacturing and supply chains to
rapidly expand operations to meet demand, bring certainty on
the prices of imported panels to the solar companies
deploying clean energy, and job stability for those workers
installing panels. Passing these resolutions could prevent
future administrations from being able to find appropriate
solutions to other tariffs and trade challenges.
For these reasons, the undersigned organizations urge you
to vote NO on H.J. Res 39 and S.J. Res 15. Thank you for your
attention to this matter and for considering our views.
Sincerely,
League of Conservation Voters, Natural Resources Defense
Council, Sierra Club, Climate Action Campaign, Environmental
Law and Policy Center, Clean Energy for America, Chesapeake
Climate Action Network, Earthjustice, Environmental Defense
Fund, Union of Concerned Scientists.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the concern I have is that what is being missed here is the reality that we are dependent on the supply chain in which China plays a key role. We don't like it. My Republican friends don't like it. Unfortunately, they have undermined efforts that we have to try to reposition the supply chain.
The energy proposals that we have offered up are an opportunity to grow and strengthen America's capacity. Just yesterday, they would repeal a number of those provisions. Their proposal would impose over a billion dollars of retroactive tariffs on our solar industry at a time when we are trying to grow it.
We want to give the industry time to reorient the supply chain. That takes time. It is already made clear on the floor right now that the current solar industry is at capacity. They need time to change the supply chains.
Sadly, my Republican friends would reduce incentives to strengthen the American supply chain. The reality is in the past we have allowed China to have a dominant position. We don't want that.
We have offered up a variety of proposals that would strengthen and incentivize American business, but this proposal, if enacted, would punish American workers, it would punish American business, and it would set us back on our climate goals. That does not serve anybody well.
Instead, the Biden administration has offered a reasonable compromise extending for 2 years the ability to continue the course here while we reorient the supply chain.
I have a whole host of proposals if my colleagues want to be tough on China. Mr. Beyer referenced the fact that, through the de minimis provisions, we are allowing over 2 million packages a day in the United States' stream of commerce often, no doubt, produced by forced labor, uninspected, and not paying tariffs.
This is a simple, commonsense provision that we have offered up that would help change that, and we have others if people want to deal meaningfully with the Chinese challenge. This doesn't. This doesn't change the reality of our current dependence on China for the supply chain, and, indeed, it will complicate our ability to make the transition.
I respectfully urge that we reject this resolution and allow the opportunity for our industry to get its footing and make the transition that we all want them to make.
Mr. Speaker, I appreciate the opportunity to share my opinions, and I yield back the balance of my time.