Mr. Speaker, I've come to the House today to talk about a bold vision and an act of leadership by President Obama that was again noted last night by President Obama. In his news conference, he again stated his commitment to lead our…
Mr. Speaker, I've come to the House today to talk about a bold vision and an act of leadership by President Obama that was again noted last night by President Obama.
In his news conference, he again stated his commitment to lead our country to the adoption of a clean energy future by means of a bill called a cap-and-trade bill, which we're going to talk about this evening, that he believes and I believe and many people believe will be a wellspring and mainspring of our economic transition to a clean energy future for this country.
And I was very pleased to hear him say that last night, because he has not been timid about recognizing the need for economic growth in our country, for job creation growth in our country, for taking on new markets in this country so that we can really rebuild the economy of this country.
And I heard him last night yet again recognizing that we're not going to get our economy back on our feet unless we actually take some action. It's not going to happen just by the tooth fairy.
So last night what he proposed to do is for the Congress, in as bipartisan a way as we possibly can, to adopt a provision that will drive investment into the new companies that can create millions of jobs in our green-collar future in the next decade or two, and he did that by proposing something called a cap-and-trade bill which will essentially limit the amount of dirty pollution industries put in the air and drive investment into the new jobs of the future that can really give us the new, clean technologies and clean energy that can lead us to this new future.
So I come tonight to talk about two things that are fundamental to our ability to realize this vision. The first is, I'd like to discuss tonight some of the companies that are actually realizing this vision.
Now, President Obama wasn't just sort of daydreaming when he said that this is a vision that we Americans are capable of. Some of the companies I will note tonight are on the cusp of creating commercially viable technologies that can create literally millions of new jobs where we can create high-tech components and energy sources and ship them around the world.
So the first thing I'd like to talk about tonight are some of those new technologies that we can build in America. The second thing I'd like to talk about is how we can build a cap-and-trade bill that will assuage some of the concerns.
Now, President Obama knows that this is not an easy setting. When you propose something big, a big idea like this, people get nervous. They get concerned. They want to know the details. And there are concerns tonight about the cap-and-trade bill, and I want to address some of those about how we're going to build jointly a cap-and-trade bill that will work for all the country and all segments of the country. So let me, if I can, first talk about why I believe President Obama's vision is based on optimism but also a really sound sense of realism.
I want to talk about some of the people I've come to know in America who are now engaged in building the jobs of the future. Go to Nevada, where there's a company called Ausra. Two years ago it just had eight people. Now, Ausra has several hundred people working for them.
What the Ausra concentrated solar energy company does, they have figured out a way to use long mirrors to concentrate the sun's energy that heats up a pipe with a liquid in it, some type of oil usually, captures the sun's radiant energy, uses that oil to essentially heat water and turn a steam turbine and generate electricity. And now we have the first manufacturing plant in the United States to build these system of mirrors that can now be arrayed anywhere the sun shines to create energy and electricity with no carbon dioxide, no pollution whatsoever of global warming gases while you're producing that electricity.
Why is this a big deal? It's a big deal because the world is desperate for electricity that we can generate at a commercially viable price that doesn't pollute. Ausra is now manufacturing a plant to do that. They're not the only one.
The Bright Source company is another company that uses what's called concentrated solar energy. They do a similar technology, and they just signed contracts for I think over 2,000 megawatts of concentrated solar energy to provide our grid system.
So here are two companies that are leaders that could potentially create massive new job creation, not only giving us electricity, but as importantly, developing technology that we can sell to the rest of the world.
I met the environmental minister of India this afternoon, and they are desperate for clean energy. Now, President Obama has a vision that I think can come to reality. Ausra and Bright Source make this technology. We build it here, we design it here, and we sell it to India, and we sell it to China, and we sell these products to Korea. This is the vision of economic growth that he recognizes, and I think the country will come to recognize is our best way out of the economic morass we're in.
Go to Boston. In Boston is a company called A123. A123 has developed a lithium ion battery that is capable of producing a plug-in electric car where we can run our cars for 40 miles on nothing but electricity, home-grown, American electricity. Imagine a future where you're generating electricity with solar power, and you're feeding it in at night, you plug your car in at home at night, you unplug it, and you drive to work. It goes 40 miles, which 60 percent of our trips are less than 40 miles a day, on all electricity. You get an infinite miles per gallon of gasoline because you don't use any, at least in your first 40 miles.
Now, A123 battery company is competing with a loan guarantee, again under President Obama's plan, to start the manufacture essentially of this type of component, and this is an extremely important realization by our new President. He realizes that we're going to have electrified cars, and we're going to need advanced batteries to run them, and we want those batteries made in America. We don't want us to be driving cars with electric batteries made in Korea or China. We want to drive cars with batteries made in the United States, and we want to sell those batteries to Chinese car buyers and Korean car buyers. That's a vision we need to pursue.
So we need policies that will drive that investment into the United States, to build these new electric batteries here, not Korea, not China. And why is that important? Well, it's important because if we don't do this, we're going to trade our addiction to Saudi Arabian oil, which we're addicted to now, for an addiction to lithium ion batteries made in Korea or China.
Now, if we don't start taking some action here in Congress, that's the type of fate that our economy would have. Fortunately, we have a President with a plan to, in fact, do this domestically.
So now I will travel West to Michigan to see General Motors, who is getting ready to build the GM Volt, which is a plug-in electric car so that our car manufacturers can start to build this new generation of vehicle, leading the third generation to an all-electric vehicle.
And just to show you that our car manufacturers, even if there's dislocation in the car manufacturing business, I'll tell you about another little company I heard about called Infinia. Infinia is a company in Tri-Cities, Washington. It's in southeast Washington.
They have developed a concentrated solar energy machine. It is called a sterling engine, a sterling engine. It's very old, but they're now figuring out a way to make it commercially viable. Essentially, it uses a pressure differential created by solar thermal energy that drives a piston, and it creates electricity. And the beauty of the Infinia product is that people who have made cars, this is exactly the type of technology to now start making sterling engines because it's essentially automobile technology. It involves a cylinder, a transmission, and people in the auto industry can transition into this new industry.
So here are five companies I've listed that if we adopt the Obama cap-and-trade system and energy plan, we've got a chance to really drive the economic development.
So, I have a few others I thought I might share with you, but we're joined by Ron Kind from Wisconsin. He is the leader of the New Democratic Coalition that's invested in pushing ideas about how we really innovate, and I'm glad you've joined me. I wonder if you have some comments.
I would like to yield to a tremendous leader in the clean air revolution, our Speaker, Nancy Pelosi, who is truly leading the House in the right direction.
Madam Speaker.
Madam Speaker, before you go, just one comment. Our colleague Earl Pomeroy is a very good sandbagger and sandbag filler. I talked to him this morning about that effort. He's been working hard.
He was on the floor this afternoon making sure that all of his colleagues knew about this problem and I saw him talking to several folks about some ideas to help his constituents. Thank you for caring about his great State.
Yes, sir.
Thank you, Madam Speaker.
We'll turn our attention now, again, to the issue of how we promote this job creation in this new energy world. I want to perhaps now talk about the second thing this evening we want to talk about, which is how a cap-and-trade bill will actually promote job creation.
It's very important, obviously, for environmental reasons, why we want to prevent global warming. It is obvious why we want to get off of our addiction to Middle Eastern oil. It is obvious that we have national security concerns that promote the development of clean energy.
What is not so obvious always is the fact that we can create jobs by making smart and commonsense policies. I want to briefly talk about six things in the bill President Obama is ultimately going to help us pass that will be very helpful.
First off, in his cap-and-trade bill, he will pass and we will pass a cap on the amount of pollution that goes into the atmosphere, which our grandchildren deserve and we deserve and our homes deserve so that the climate does not change dramatically.
We have a cap right now on many pollutants. We limit the amount of, for instance, sulfur dioxide and other pollutants that go into the air. But, unfortunately, polluting industries are still free to put unlimited amounts of one of the worst pollutants in the globe right now--carbon dioxide--which is responsible for changing the climate of the planet.
So we need to essentially close the huge loophole in our laws right now and put a cap on the amount of pollution that's going in the atmosphere. Then we need to charge polluting industries for the right to put this into the atmosphere because obviously we don't want it to be allowed to go up there for free because it will be put in the air for free. And we can't do that as citizens.
We can't go to the garbage dump and take our pickup load of all the junk in our basement that accumulates--I don't know how, but it ends up there. We can't go to the garbage dump and dump it for free. We've got to pay $25, $30. That should be true too, including industries who put pollution into the atmosphere, which has a limited carrying capacity before the climate changes.
So President Obama has proposed we simply extend an American law we have for several other pollutants, including sulfur dioxide, to the gas of carbon dioxide.
Now there are six things I want to address about that bill and then I will yield to Mr. Tonko. I'll just note a couple of them.
The first thing in this bill is that the money that is generated when these permits are auctioned off to these polluting industries, the bulk of it is going to go right back to American citizens. It's going to go right back. It's going to be recycled so that American citizens have assistance with their energy bills.
So that money is going to be paid into a pool by polluting industries. The vast bulk of it is going to be recycled right back to American households for help on their utility bills.
We're going to have a way to get that job done. We are designing it now. We want to have bipartisan help, if we can do that. We would love Republicans to help us to do that because we hope that they'd want that to be the case, that a significant part of this go back to the American taxpayers.
So for those who are concerned about the utility bills, the first thing to realize about a cap-and-trade bill is the most significant part of this money is going to go right back to citizens. And that's perhaps the first thing people should know about it.
The second thing they should know about it is that some people are concerned from coal-producing States that if we pass this cap-and-trade bill, it will be too disruptive to their economies.
Here's a very important point for those who are in regions of our country that use coal, which is tremendously abundant and has been a very effective energy source for us, but in fact has the problem now that if we continue to burn it, if we burn all the coal we have, we will cook the planet, unless we find a way to sequester carbon dioxide and put it where it can't get in the atmosphere.
For those who are concerned about this, it's important to note that a significant part of this pool of money that will be generated is going to go to research to help the coal industry figure out a way to bury carbon dioxide so that it doesn't get into the atmosphere.
For those who worry about this--of the continuation of the coal industry--they ought to support this approach because we're going to generate money to help the industry develop a way not to put carbon dioxide in the atmosphere. If we do that, coal could have a long-term future in our economy. If we don't, it does not. Because we have to find a way to reduce the amount of carbon dioxide going into the atmosphere.
So here's two central points that those who are looking at a cap-and- trade bill and are worried about it. I hope they will realize the first thing, the money is going back to the consumers; second, we're helping industries that might otherwise be in dire, dire trouble if we don't help them out.
With that, I'd like to turn to a new Member of Congress, Paul Tonko, who has a tremendous energy background. I'd love your thoughts this evening.
The good news is that President Obama is right on the beam of what you are suggesting; because in this cap-and-trade bill, he is not suggesting using the money that is generated by the polluting industries buying these permits for museums or nicknacks. He wants to put the money that doesn't go back to consumers, that is recycled right back to consumers, which will be the bulk of it, he wants to put it in a research and development, and he is proposing $15 billion--frankly, we think it may end up being higher than that--to develop these American industrial technologies so we can put Americans to work in green-collar jobs. And I think that is so important, because if you look at the energy research we have been doing, it is pretty pathetic until President Obama was President.
I will give you what was an eye opener to me. The dog food industry of the United States spends more on research and development than the entire electrical utility industry of the United States. We have not done our knitting when it comes to research and development funds.
Now, we started in this new bill we just passed, which put about $70 billion into research, but we need the second, third, and fourth year out. And President Obama, in this cap-and-trade, we are going to dedicate these funds. They are not going to be used by Member of Congress for just some pet project; they are going to be dedicated for clean energy research and development.
And when President Obama talks about that, what I am particularly impressed about is he is not focusing on one little silver bullet here like he has got some favorite technology, he is putting it in the whole vast array of new possibilities; solar photovoltaic energy, concentrated solar energy, engineered geothermal energy, advanced biofuels, lithium ion batteries, coal sequestration to find out if we can burn coal in a way that doesn't put CO2 in the atmosphere.
So this is a mechanism he has proposed to do for energy what John F. Kennedy did for space.
By the way, there are people who might be listening to us talk about this tonight who might look askance at some of these new technologies. They might think it is people with funny hats on talking about some kind of crazy thing that is never going to come to pass. And some of these technologies will not become commercially viable. The nature of exploration is that you try things, and some of them don't work and some of them do work. And some of the things we are talking about tonight may not work. But I would just hearken back to a recent experience.
Ten years ago, when we were arguing that we should try to develop wind power people thought those were just going to be little Dutch windmills that could never really generate electricity. Well, this year the United States of America became the largest producer of wind power, electricity generated by wind in the world. We are number one in the world of wind-power generation. And, more people today are working in the wind power industry than are working in the coal mining industry. That is not to diminish the importance of the coal mining industry. It is important. Those are good although very difficult jobs. But the point is, ten years ago people would have laughed at us if we would have said we are going to have more people working in the wind turbine industry than coal. And, in fact, that has come to pass, and wind is still going gang busters. We cannot put up wind turbines fast enough. We have to build the lines to get to them, and that is another part of President Obama's plan to build the lines to get to the wind turbines, and he has committed significant dollars to make sure we do that.
I want to point out something about the fourth point of some people's concerns about this cap-and-trade bill. Some people have expressed concerns that it would only help the coastal regions, the Seattles of the world where I am from, the Bostons of the world, and leave out the heartland, and nothing could be more further from the truth. I just want to mention a couple reasons.
Number one, one of the big winners in this new transition is the agricultural part of America, the heartland, for a couple reasons. Number one, it is where the wind is. And farmers today are getting $3,000 to $6,000 a year just in lease payments to leases a few hundred square feet to put a wind turbine on. And there are a lot of happy farmers in my State right now, and there are going to be a lot of happy farmers in the Midwest, in North Dakota and Wyoming and Iowa. There are going to be a lot of farmers sitting in that chair seeing those checks come in the mailbox from getting to rent these wind turbines.
Second, there is a way in this cap-and-trade bill that farmers may be able to essentially get paid for using their topsoil to sequester carbon dioxide. If they can find ways, tillage practices and the like, they can sell the sequestration service, the service of their soil of taking carbon dioxide out of the air and burying it in the soil; and we think there is a way we might be able to design a system to do that.
Third, biofuels. You know, we still have advanced biofuels. It is not just biodiesel and corn-based ethanol. That was sort of the first generation. Now we have got to move to the second generation of cellulosic ethanol and then the third generation of algae-based gasoline. By the way, there is a company called Sapphire Energy right now that just opened up their plant in New Mexico to do that.
So we want to make the point that those who care about the agricultural communities, there is a tremendous upside to moving forward with this cap-and-trade system.
You mentioned the electrical grid. It is very important that we build an electrical grid that is up to these new technologies. And I will be introducing a bill in the next week or so to create a new Federal way of siting, planning and financing these new high-density, high-capacity grid systems to get that job done.
Before I yield to Mr. Polis, I want to just mention one thing before I forget. There is a fifth concern about our cap-and-trade bill that the President has proposed. Some people have rightly been concerned about a market mechanism to allow companies to swap these permits. And given what we have gone through in the recent past, we all are rightfully skeptical of a new market system that could be manipulated by those who let greed overcome their common sense. So it is very important that when we design this system, we design a new regulatory system that is fully capable of being the most aggressive, most hard- nosed, toughest, most ambitious, most foolproof regulatory system known on planet Earth. We intend to accomplish that. We do not intend to allow this market to be abused, as other markets have been, including by regulating derivatives that have been the bane of some of these market disasters. So we hope to use this as a template on how to really do other markets so that we don't have that problem.
I want to now yield to Mr. Polis from Colorado, who has been a great leader on these measures that have had tremendous success in the development of job creation in Colorado. We are envious of some of the things you're doing there.
I appreciate that comment. I'm going to make a couple of
closing comments and turn it over to my friends here. We have come tonight to try to assuage some concerns about this program. We know we have to move. Inaction is not an option. Failure is not an option here given what is going to happen to our country otherwise. But I just want to mention five things.
Those who are concerned about the impact on consumers, we will be recycling the money generated from this, to a large extent, back to consumers, right back into their pockets, number one.
Number two, for those who are concerned about the impact on coal- dominated regions, this is the only plan out there to help the coal industry survive long term by doing research to find out if we can sequester carbon dioxide and allow coal to remain a viable option for this country.
Number three, those who are concerned about the impact on agriculture, we know agriculture is going to suffer if global warming continues. Take a look at the drought and the almond farmers who are losing their orchards in California right now because of the drought. And farmers are going to be able to make money from this program in wind power, in sequestration and in advanced forms of biofuels.
Number four, we will provide the American people what they deserve in market protection. We will have a regulatory program that will keep the rascals out of our till in these markets. And it will be a template of further markets.
Number five, we will do for research and development what Kennedy did for space in the original Apollo project and finally get this country up to speed on generating these new technologies. So we hope people will take a good look at this.
We are very appreciative of President Obama's inspirational leadership here, and we intend to do our part.
If you find anyone objecting, give them those five points, and we hope they will see the light.
With that, I ask unanimous consent that the gentleman from New York be redesignated the time.