First, I thank my good friend for yielding. I think we will have several people coming down and talking about this tonight. I want to say something about Senator Sanders from Vermont. I appreciate very much his comments. I think they were…
First, I thank my good friend for yielding. I think we will have several people coming down and talking about this tonight.
I want to say something about Senator Sanders from Vermont. I appreciate very much his comments. I think they were very appropriate.
I remember one time when he and I had a difference of opinion on an amendment. It had to do with the amount of money one of the large oil companies made. He and I debated on floor for something like 3 hours. A vote was taken, and I did win the vote. Afterward, he came up to me and he said: I want you to know that since I have been here from the House, that was probably the most enlightened debate we have ever had, and you won and I lost, and I really do appreciate it.
We have been very good friends since then.
Well, the comments he made are real because I don't have any doubt in my mind that Senator Sanders and the rest of you have strong feelings about this.
What I want to do is something a little bit different. I have heard several people talk, and they talk about what is the hottest year and the coldest year and all of that. I am very careful to document anything I say, and I will continue to do that tonight.
Last Monday, the EPA released the long-awaited global warming regulations for the Nation's existing fleet of powerplants. We had already talked about the new powerplants and what we are going to do. We have seen the evidence of the increased pricing of energy in this country as a result of that. Now, of course, we are going to be talking about the existing program.
The interesting thing about this--this is what they are talking about doing through regulation after they have lost every single issue on the floor of this Senate--and so trying to do it now by regulations.
The EPA's proposed rule requires powerplants to reduce their CO2 emissions by 25 percent by 2020 and by 30 percent by 2030. I do believe there will be major legal challenges facing this rule if it goes final, and I will talk about that in just a minute.
Over the past decade the Senate has debated a number of cap-and-trade bills. The first one was the McCain-Lieberman bill of 2003--I am going from memory now. I think Republicans had a majority at that time. I think I chaired either the subcommittee or the committee of jurisdiction. We defeated the McCain-Lieberman bill. It came up again slightly changed in 2005. We defeated it at that time too. Then the Warner-Lieberman bill came up in 2008, and we defeated that even by a larger margin. The Waxman-Markey bill--and keep in mind that this was when the distinguished Senator from Massachusetts was in the House-- came up in 2009, but it never did reach the floor.
All of these bills would have established greenhouse gas regulations for the Nation's largest manufacturing power-generation facilities, but once the American people learned how much these cost, Congress ran away from these bills and they were defeated.
Each and every one of these bills would have cost the economy between $300 and $400 billion in lost GDP every year. These figures are not disputed. The first time they were calculated was back when the first bill came up. At that time everyone assumed that global warming was real, they assumed that the end of the world was coming and that manmade gases were responsible for it, and that was something which was kind of accepted.
At that time, though--and I remember hearing the first speculation as to the cost--the Wharton Econometrics Forecasting Associates came out with the range of between $300 and $400 billion a year. Then the Massachusetts Institute of Technology, MIT, and Charles River Associates and others came out with the same range--between $300 and $400 billion a year.
When you break this down to each household--every time there is some big regulation that comes along, I take
the number of people from my State of Oklahoma who filed a Federal tax return, number of families, and then I will calculate, do the math, and it turns out about $3,000 a family. That would make cap and trade the largest tax increase in American history.
It is not surprising that these bills did not become law. They were defeated. The McCain-Lieberman bill of 2003 fell 43 to 55; then the McCain-Lieberman bill in 2005--an even wider margin--38 to 60; and the Waxman-Markey fell because they didn't have the votes to do it.
What I am saying is that the trend is not going the way my good friend from Rhode Island would like to have it go. Instead, more and more people are opposing this.
Part of what is motivating the EPA's rule is that they want to say they leveled the playing field between parts of the country that don't have cap-and-trade programs. I think one of the previous speakers talked about the fact that many places like--I see the Senator from California is here now--California and the Northeastern States have cap and trade. These regions are hurting economically in part because of the onerous environmental regulations, including cap-and-trade programs they have been working to implement for so many years.
But the real result of this has been higher electricity prices. In fact, the average price of retail electricity in New England, according to the Energy Information Administration, is 17.67 cents per kilowatt hour. That is almost 18 cents a kilowatt hour. Compare that to Oklahoma. We are at 9 cents per kilowatt hour. We are one-half the cost in my State of Oklahoma for electricity. You see we have a real competitive advantage. There is nothing that keeps the Northeast from bringing their electricity costs down, but they are unwilling to do it. They are unwilling to do what we did; that is, utilize a diverse, inexpensive fuel supply we can source from right at home in Oklahoma.
California implemented its own cap-and-trade program just over a year ago, and it applies to both heavy industry and power generation. The State boasts that its program is second in size only to the European cap-and-trade program. Today, however, California's electricity prices are 15.94 cents--in other words, 16 cents per kilowatt hour--a stunning 70 percent more than they are in my State of Oklahoma.
Knowing this, it isn't surprising we constantly hear about all the jobs and companies and manufacturing facilities that are moving from places such as California and New England to States such as Oklahoma and to the South where we don't have these same kinds of regulations. What we want to do in Oklahoma is develop a nurturing environment for business to thrive, and a big part of it is having inexpensive, reliable energy. That is what we have in Oklahoma. EPA's rule threatens all we have worked so hard to accomplish, and it is all because so many politicians are beholden to the radical environmentalists.
What is interesting to me is the more and more the other side talks about global warming and all of the purported solutions here in Washington, the less and less people care.
In March, when Senate Democrats hosted their first global warming slumber party, Gallup released the results of the poll I believe the same day, showing Americans rank global warming as the 14th most important issue out of 15. I believe this was on March 9 or 10 when they had their last slumber party. It used to be No. 1 or No. 2, and now it is nearly last. We can see on this chart Gallup's poll numbers over time showing Americans care less about environmental issues than they ever did before. We can see the changes that have taken place. What people really care about are the economy and government spending. Those are the top two issues across party lines.
If enacted, this rule is going to cause serious damage to the economy. The Chamber of Commerce last week put out a study on regulations similar to the EPA's new greenhouse gas rules and found they will cost the economy $51 billion in lost GDP and 224,000 lost jobs each year--not just once but each year.
The Heritage Foundation put out separate analysis calculating that the rule would enact a cumulative hit of $2.23 trillion in lost GDP and destroy 600,000 jobs. By their measure, the average income for a family of four would decrease by $1,200 a year. I believe it is actually closer to $3,000 a year. Nonetheless, there is the consistency.
If we want to see where these regulations will ultimately lead, we need look no farther than the modeling President Obama uses. We need to be, as he says, more like Germany. Starting a few years ago, Germany began implementing an aggressive alternative energy agenda where they hiked subsidies and set a goal of generating 35 percent of their electricity from renewables by 2020. By 2050, this goal would increase to 80 percent. In doing this, the price of German retail electricity has doubled from where it was before. It is now 3 times--300 percent-- higher than ours.
The next chart is Der Spiegel, a major publication in Germany. They recently had this on the cover of the magazine with the heading ``Luxury Electricity: Why energy has become more expensive and what politicians must do about it.''
In this, they talk about the politicians and others who are wishing Germany had not done what it was doing. And while industry, utilities, consumers, and some politicians are calling for reforms to the laws, it may be too late because everything is already on the books. This is what they are finding in Germany--and we all know how hard it is to repeal a law once it becomes implemented. So the Germans started this, and we are now emulating Germany, and their cost of electricity has doubled. When we talk about doubling, to a lot of people--maybe a lot of us who serve in this Chamber--that is not a big deal. But take a poor family that is spending 50 percent of their income on energy. It is something they can't handle.
EPA's rules will push us in the same direction as Germany--which makes sense, when we consider the EPA's recent rules such as utility MACT and the 316(b) rule, and the NRC's incessant overregulation of the nuclear power industry. We have perfectly good powerplants being forced to shut down all over the country. Now we have this rule coming out of EPA that will force even more shutdowns and push the Nation to more aggressively adopt renewables, and over a very short period of time. This is going to cause reliability and affordability issues.
We have been talking about affordability. Reliability is another thing too, because we have to have a reliable source that doesn't stop. There is no way around it. It is not just me saying this. FERC Commissioner Phil Moeller recently predicted that because of EPA's overregulation, the Nation could face rolling blackouts by next summer. Renewables will only make this risk more severe. If a substantial amount of electricity is being provided by renewables, then we will become vulnerable to reliability risks.
What I mean by that is we don't always know when the Sun is going to be shining or when the wind is going to be blowing, but there is always a demand for power. The demand is always there, but the wind stops. I understand this. I am from Oklahoma. We can have a very windy day and all of a sudden it stops, and the Sun maybe stops shining. If the wind is blowing really hard one day and then stops the next, significant strains are put on the electricity grid.
To compensate for that, we have to have backup power ready to come online at a moment's notice--where it is turned off 1 minute and then on the next. Having that kind of capacity sitting around waiting for the Sun to stop shining is incredibly expensive, which is one of the reasons Germany's power is so much more expensive than others.
So when I hear the President and EPA saying this rule could actually lower electricity bills, it makes me wonder if they ever sit down in the same room with FERC and NERC and NRC to tell it like it is. Honestly, they are not telling the truth.
The President and Administrator McCarthy have also been touting the human health benefits this rule will deliver. To help announce the new rule, President Obama did a conference call with the American Lung Association and said it would help reduce instances of childhood asthma. Gina McCarthy made the same point in her remarks about the rule. But this completely contradicts what EPA previously said.
In this chart which the Agency has published, in official documentation, it says greenhouse gases ``do not cause direct adverse health effects such as respiratory or toxic effects.'' I know others will stand up to refute this, but this is what the EPA said.
What is even worse is this rule will not have any impact on global CO2 emissions. We know this because of the President's first EPA Administrator, Lisa Jackson. This is kind of interesting. I asked her the question during the committee hearing, on live TV: If we were to do away, either pass cap-and-trade or by regulation, would this reduce the overall CO2 emissions worldwide?
And she said: No, it wouldn't. Her quote is: ``U.S. action alone will not impact world CO2 levels.'' This is because the largest tax increase in history, without any benefits--because once you implement these regulations, our manufacturing base would go someplace where they can find it; maybe China, maybe India, maybe Mexico. But they will go places where they don't have the stringent emission requirements we have in this country. So in that case, emissions would actually go up instead of down.
Add to all of this the fact that there has been no increase in global surface temperature between 1998 and 2013. This is according to the journal Nature, the Economist, and even the Intergovernmental Panel on Climate Change that is the United Nations. They are the ones who started this, and even they say there has not been any increase in global surface temperature between the years of 1998 and 2013.
This pause was totally unexpected by the scientific community. After all, CO2 concentrations went up by 8 percent over the same period of time--which, according to the models, should have led to significant temperature increases. This chart shows the difference between actual temperatures--the blue and the green lines down here-- and the temperatures that were predicted by ``consensus'' scientific community--the red line. They said this is where the heat was coming, and it didn't happen. It is clear the scientific community, which everyone puts so much trust in, did not predict a pause would actually happen.
Add to this the fact that the U.S. Historical Climatology Network is reporting that this is the coldest year so far on record for the United States. Others will say, no, that is not true. So I quoted this source, the U.S. Historical Climatology Network, that if things continue as they are so far, this will be the coldest year on record in the United States.
Normally, putting all this together would make me wonder why the President is pushing these regulations. But then I remember Tom Steyer. Let me introduce him.
This man, who made billions in the traditional energy industry, is the new poster child of the environmental left. He is the one who promised to direct $100 million to resurrect the dead issue of global warming. He has the President and others on board with his plan, and they are following through. Tonight's slumber party is proof enough.
I can hear it now. A severe case of righteous indignation is going to show up, and they are going to say: Are you saying Tom Steyer is putting 100 million in these races?
No, I am not saying that. That is what Tom Steyer is saying.
I have a quote here from him: It is true that we expect to be heavily involved in the midterm elections. We are looking at a bunch of races. My guess is we will end up being involved in eight or more races. And that is with $100 million.
But that is what this all comes down to--a key constituency of the Democratic Party wanting to see the Nation completely change the way we generate and consume energy--for no environmental benefit. The only benefit here is a political one.
In closing, I wish to highlight a few of the legal issues I mentioned a minute ago that will likely come up once the rule is finalized. There are three main reasons why I do not believe this rule, from a legal perspective, is an appropriate construct of the Clean Air Act. I always supported the Clean Air Act amendments, and good things happened from them.
The first is the Clean Air Act was never designed to handle greenhouse gas emissions. We know that. This is a bipartisan perspective. Congressman John Dingell, one of the principal architects of the Clean Air Act over in the House, said last week:
I do not believe the Clean Air Act is intended, or is the
most effective way, to regulate greenhouse gases.
The second legal reason is this rule relies on an outside-the-fence approach to reducing greenhouse gas emissions. Section 111 of the Clean Air Act should only allow the EPA to establish a process where the States determine the most appropriate emission reductions on a facility-by-facility basis. Instead, the EPA has set statewide emission reduction mandates, without regard to the technical feasibility of actually accomplishing the goal.
Cap-and-trade proposals will emerge under this, which will ultimately pit industries against one another. So the real impact of this rule could far exceed its advertised intent of targeting only powerplants.
Oklahoma Attorney General Scott Pruitt has effectively made this case and will lead the charge challenging the legal authority of this rule, should it become final. I am very proud of the attorney general, because he has been very effective in leading other attorneys general around the country to join in this effort.
The third reason this rule is inappropriate is because the Clean Air Act states that section 111(b) regulations cannot be pursued in the event the facilities are already regulated under section 112, which governs air toxins. Powerplants are already regulated under this section. So the fact they are trying to regulate them under 111(b) is inconsistent with the law, and that of course will be on our side on this.
There are a number of major reasons why this rule may not stand up in the courts. But it is my expectation that it will not come to that point. The largest tax increase in history. The Earth's surface has not gotten warmer in 14 years. Polling shows Americans don't believe it is a huge problem. It is huge for job losses. Stopping CO2 in the United States won't affect world CO2 emissions. That is what we have from the Administrator of the EPA. So we will be hearing a lot of things tonight, all about what is going on, and they will be discreet with me. That is the reason I always document things.
Let me predict what I think is going to happen. A lot of people are not aware that there is something called the CRA, the Congressional Review Act. The Congressional Review Act is something where people say: Yes, there is a crisis in this country. Don't blame me. I am a Member of Congress. I didn't vote for it, but the regulators did this. This puts them where they should be in having to take a position.
The CRA is something introduced with 30 cosponsors. I already have 30 cosponsors to file a CRA on every one of these regulations, if they do become final. You cannot do it until they become final. Then it is a simple majority. So people are going to have to get on record, and to me that is really all we really need to get people on record on this.
I think you are probably going to hear some issues and people will assume that these are really happening. You will hear that extreme weather is increasing. The reinsurance company and global-related disaster losses have declined by 25 percent as a proportion of GDP. They will say that hurricanes are happening. Yet the Washington Post says the United States has not been witness to a category 3 or higher major hurricane landfall since October of 2005 when Wilma hit Southwest Florida as a Category 3 storm.
They will be talking about drought, in spite of the fact that even the IPCC has stated that in the United States droughts have become less frequent, less continuous, or shorter in central North America. Nature, the well-respected publication, says drought for the most part has become shorter, less frequent, and covered a smaller portion of the United States over the last century.
Flooding--the IPCC comes in again talking about this. The USGS says floods have not increased in the United States in frequency or intensity since at least 1950. NOAA says flood losses as a percentage of GDP have dropped by 75 percent since 1940. You are going to hear about flooding. That is why it is necessary to document these things.
NOAA, talking about tornadoes, says: Tornadoes have not increased in frequency, intensity or normalized damage since 1950. Some data shows that there has been a decline. So we have all these issues that I am sure we will be discussing sooner or later.
Polar bears--the chairman of the Environment and Public Works Committee gave me a polar bear coffee cup, which I use frequently, and we display that very prominently. But they say in the 1950s and 1960s there were between 5,000 and 10,000 polar bears. Today there are between 15,000 and 25,000.
So we have all these issues that are a reality on the glaciers. You can record the hurricanes and all these other items, and, yes, they are going to be talking about them, I am sure, during the course of the evening.
Let me just mention one other item from memory on this, but I know it is right because the I have said it so many times and it has recently been documented. We go through these 30-year cycles all the time. We have been going through them for a long time. If you take in 1895, all of a sudden everything started getting cooler, and that is when the term ice age first came along. They said another ice age is coming. That lasted until 1918. In 1918, all of a sudden it started getting warmer, and that was the first time you heard about global warming. That was 1918 to 1945. In 1945 it turned again--you see, every 30 years--and all of a sudden it got cold. They talked about another ice age coming. I remember Time magazine had a cover talking about the ice age. Then in 1970 another warm period came along. That is the one that people have been talking about.
Here is the thing. In 1945 we had the largest amount of increase in CO2 emissions of any time in the recorded history of this country, and that precipitated not a warming period but a cooling period. Now as they have said, we haven't been warming for the last 15 years. So this is always a difficult issue to deal with. I know the effort is there. I know it is renewed now and people are excited about it, and I could assure you the trend is in the wrong direction, and it is not going to happen.
With that, Mr. President, my time has expired, and I yield the floor.