Mr. Speaker, I yield myself 3 minutes. (Mr. DINGELL asked and was given permission to revise and extend his remarks.) Mr. Speaker, the House is again considering a bill that has already passed the body, but it has not been enacted into…
Mr. Speaker, I yield myself 3 minutes.
(Mr. DINGELL asked and was given permission to revise and extend his remarks.)
Mr. Speaker, the House is again considering a bill that has already passed the body, but it has not been enacted into law. This might be called the ``summer reruns.'' It might also be called low comedy, or ancient history, because this is an unfortunate waste, not only of this body's time but, quite frankly, the taxpayers' money.
We are about to set about passing a bill that was unacceptable to the Senate before, surrounded itself with enormous controversy, and will serve no purpose in terms of addressing energy concerns of this country.
Meanwhile, I note we have neither passed any budget nor any single appropriations measure. If there is ever a bill that does not deserve to pass twice, this is it. It should not even have been passed the first time. Rarely has a bill been so criticized in all quarters. This so-called Energy Policy Act is a conglomeration of costly special interest subsidies and antienvironmental provisions that newspapers from coast to coast have denounced. It includes the denunciation of such conservative newspapers as the editorial pages of the Wall Street Journal.
One prominent Republican Senator refers to this bill as one which helps ``hooters and polluters,'' because it provides subsidies for a Louisiana mall that will feature a Hooter's Restaurant, and because it has dozens of other provisions that threaten clean air, safe drinking water, like easing the regulations on such good-hearted American corporations as Halliburton, which uses hydraulic fracturing.
Indeed, the only support for this bill comes from the special interests and industries that met in secret with the Cheney task force to hatch this outrageous piece of legislation.
The conference on this bill was also, as I noted, held in secret and kept from the light of day. As I said when the Congress considered this legislation last year, ``when you lift the lid, it's like lifting the lid on a garbage can, because you get a strong smell of special interest provisions.''
While I support the recycling of trash, this piece of legislation looks worse the second time around. It is more than three times more costly than even the President requested. The Energy Information Administration says it will have no short-term impact on gasoline prices and, in the long run, will actually raise gasoline prices.
If my colleagues on the Republican side were paying attention to all Americans and not just special interests, they would recognize that there have been three important matters to deal with which have occurred on this President's watch: 1, gasoline prices and natural gas prices have reached all-time highs; 2, an electricity blackout that affected better than 50 million Americans; 3, the gouging of electricity consumers on the west coast has been a noteworthy outrage.
Democrats have proposed commonsense steps that we should take to address these problems, and we will discuss these matters and measures during the debate on the motion to recommit.
I usually applaud the recycling of trash, but this trash is well passed recycling. It is too tart. It should be put in the legislative trash heap where it belongs.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the distinguished gentleman from Massachusetts (Mr. Markey).
Mr. Speaker, I yield 2 minutes to the distinguished gentleman from Minnesota (Mr. Oberstar).
(Mr. OBERSTAR asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 2 minutes to the distinguished gentlewoman from California (Mrs. Capps).
Mr. Speaker, I yield 2\1/2\ minutes to the distinguished gentleman from New York (Mr. Engel).
Mr. Speaker, parliamentary inquiry before I yield time. I note that the majority members on the Committee on Ways and Means and the Committee on Resources have time available which has not yet been used. I am happy to yield time to our Members, but I would simply note that that time is pending over there. I would like to see what policies the Chair might have with regard to the yielding of those times.
And I would note for the benefit of the Chair that the Committee on Energy and Commerce is the major committee of jurisdiction here.
Mr. Speaker, I will therefore yield 2 minutes to the distinguished gentleman from Texas (Mr. Green).
Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from Texas (Mr. Doggett).
Mr. Speaker, I reserve the balance of my time to enable the Committee on Resources and the Committee on Ways and Means on the majority side to yield such time as they may consume.
Mr. Speaker, I yield 1 minute to the gentleman from New Jersey (Mr. Holt).
(Mr. HOLT asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 3 minutes to the distinguished gentleman from California (Mr. Waxman).
Mr. Speaker, I yield 2 minutes to the distinguished gentleman from Washington (Mr. Inslee).
(Mr. INSLEE asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield myself 3 minutes.
(Mr. DINGELL asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I can understand the frustrations of my good friends on the Republican side. They brought forward a piece of legislation that is redolent of special interests. Quite frankly, it smells bad. It is tired in that it has been before this body before. It has been rejected by the Senate because it was such a clear mishmash of special interest legislation, and I can understand the frustration because my good friends over there could not shoehorn something through in a closed conference after they had denied the right of the House to really fully amend and address these matters and after they had denied us the right to participate in the debates and the discussions which went on in the conference between the House and Senate.
We will shortly be offering legislation in a form of a motion to recommit which will do the three things that really need to be done to protect our consumers and our economy. First, we are going to address the problem which rose with regards to electricity prices in California and other west coast States spiraling out of control as Enron and other thieves and scoundrels exploited an inadequate and poorly implemented regulatory system. We will be inserting into the Record some of the wonderful comments of Enron executives describing how they had treated the consuming public of the United States.
Second, my own State of Michigan and six others suffered severe practical and economic consequences from a massive blackout caused partly by malfeasance and partly by inadequate emergency planning and communications. That will be addressed here.
Third, this spring and summer consumers throughout the Nation have been hit by high gasoline prices that show no sign of returning to normal levels at any time soon. We will try to deal with this question.
The bill, H.R. 4503, does not address the answers to these questions. While there are some good provisions in the bill, it has a plethora of other problems, not the least of which is a price tag to the consuming public and the taxpaying public of better than $31 billion.
It is a shame that our Republican colleagues have chosen to continue beating a dead horse. They sent a bad bill to the Senate. The Senate in a bipartisan fashion, and I am sure this is immensely frustrating to my Republican colleagues, has rejected that legislation. It has not been brought up. This is quite obviously an attempt, and has been so described by my Republican colleagues, as an effort to embarrass the Senate into moving that legislation.
But I think we need to address something here which we could do. The Senate in its wisdom has chosen to reject this historically bad piece of legislation, and I would urge us to address now the things which we can do: fraud and criminal misbehavior in the electricity markets, blackouts, and high gasoline prices. This would be a responsible step, and it should be for this body to stop playing games and having summer reruns which have as little merit, for example, as ``The Cabinet of Dr. Caligari'' or perhaps ``Night of the Living Dead.''
In any event, I will be offering a motion to recommit with the distinguished gentlewoman from California (Ms. Eshoo), and I will describe that at a time later. It will address these questions.
[From the Energy Daily, May 25, 2004]
Enron Traders Brag of Stealing Money From California
(By Tina Davis)
Newly unearthed transcripts of Enron Corp. traders reveal
employees unapologetically talking about California and its
consumers by driving up power prices and exporting power from
the state during the 2000-2001 energy crisis.
The transcripts were sent to the Federal Energy Regulatory
Commission last week by the Snohomish County Public Utility
District No. 1, a public power entity that is seeking refunds
for price manipulation that affected the West.
``This latest evidence provide the impetus for FERC to
finally bring meaningful rate relief to the West Coast
electric consumers who were the primary victims of Enron's
fraudulent schemes,'' said Mike Gianunzio, general counsel of
Snohomish PUD.
Two Democratic Congressmen from Washington, Reps. Jay
Inslee and Rick Larsen, last week called on FERC to strip
Enron of its market-based rate authority retroactively. The
congressmen argued that by revoking the company's market-
based rates on June 25, 2003, FERC failed to establish the
punishment from the moment Enron began gaming the market.
The transcripts largely provide yet more evidence that
Enron was engaged in several sophisticated trading strategies
aimed at driving up prices and congestion, in order to reap
millions from the California and western power markets.
In perhaps the most damning portion of the transcripts, a
person identifying himself as ``David up at Enron'' calls an
employee of El Paso Electric and asks if that company can
shut down a unit.
``. . . There's no much, ah, demand for power at all and
we're running kind of fat. Um, if you took down the steamer,
how long would it take to get it back up?'' David asks.
``Oh, it's not something you want to just be turning on and
off every hour, let's put it that way,'' the El Paso employee
responds.
After ascertaining that the unit could be brought up within
three to four hours, David says, ``Well, why don't you just
go ahead and shut her down, then, if that's OK.''
Later in the conversation, David says that ISO hasn't
``told us anything. We're just kind of assuming that some of
this stuff's going to get cut again and--we're running fat
enough to where he shut down the, ah, steamer when we take--
there'll be a net, ah, decrease of about 80 it will be all
right to, ah, still meet the load.''
That day, Dec. 4, 2000, the ISO declares a Stage 2
emergency, indicating that reserve levels have fallen below 5
percent for the day.
A spokesperson for El Paso confirmed the conversation took
place, but said it occurred at 1 a.m., when the state had an
``overabundance of power in the market.'' Tereza Sousa said
she did not know if the power was restored to the state in
the afternoon, when peak demands hit, but she said El Paso
had an agreement that called for Enron to market its
generation for off-peak hours in the West.
El Paso Electric later reached a settlement agreement with
staff of the Federal Energy Regulatory Commission as well as
California officials over its role in the state's power
crisis. That deal, opposed by Snohomish, included a $15.5
million payment from El Paso and the surrender of its ability
to charge market-based rates for two years.
At one point, the transcripts capture Bob Badeer, head of
Enron's California trading desk in Portland, saying the
``best thing'' for California would be an earthquake. ``. . .
Let that thing float out to the Pacific and [give] `em
candles. . . . They should just bring back horses and
carriages, lamps, kerosene lamps. . . .
Kevin McGowan, at one time the director of coal trading for
Enron, asks Badeer: ``So the rumor's true? They're takin' all
the money back from you guys? All those money [sic] you guys
stole from those poor grandmothers in California?''
Badeer responds: ``Yeah, grandma Millie, man. But she's the
one who couldn't figure out how to vote on the butterfly
ballot.''
``Yeah,'' says McGowan, ``now she wants her money back for
all the power you've charged right up--jammed right up her
for $250 a megawatt-hour.''
Another phone conversation includes talk of exporting power
from the state. Hearing of a Stage 2 emergency called by the
California Independent System Operator, a speaker identified
only as ``Matt'' says, ``They're on the ropes today. I
exported like a 400 [megawatts].
``Wow,'' the other voice, identified as Tom, says.
``I bought it all. I'll see you guys--I'm takin' mine to
the desert,'' Matt states.
``em, right?'' adds Tom.
``I think those gamblers in Las Vegas need the power more
than you,'' says Matt.
Later on Tom tells Matt, ``It's going good for you. Just
keep exporting the'' ``Yeah,'' says Matt. ``That's what we
do. Every day, we just export, export, export.''
In another conversation, Enron's Tim Belden, the former
head West Coast energy trader, is questioned by what seems to
be another Enron employee trying to figure out how to book
the revenues from western trades.
Explaining the sales, Belden tells the other person, that
Richter (believed to be Jeffrey Richter, head of Enron's
Western Power Division) ``makes between one and two [million
dollars] a day, um, which never shows up on any curve shift,
where he just buys it from the day-ahead. He just . . .
California. . . . He steals money from California to the tune
of about a million--''
The other person interrupts, ``Will you re-phrase that?''
Belden: ``OK, he um--he arbitrages that California market
to the tune of a million bucks or two a day.''
Mr. Speaker, will the gentleman yield?
I thank my good friend for yielding to me. Is that rejection or not?
Mr. Speaker, I offer a motion to recommit.
I am, Mr. Speaker.
Mr. Speaker, I yield 2\1/2\ minutes to the distinguished gentlewoman from California (Ms. Eshoo), who is cosponsor of the motion to recommit.
Mr. Speaker, I yield myself such time as I may consume.
I urge my colleagues to vote for the motion to recommit. It is very simple. It is passive. It is something which the Senate, I believe, would consider; and it is something which will be accepted by the American people and which will help with the energy problems.
First of all, it contains energy antifraud provisions to avoid a recurrence of the widespread unchecked fraud that rocked Western power markets in recent years. The motion requires FERC to refund overcharges, updates various provisions of the Federal Power Act, and gives the Federal Energy Regulatory Commission authority to deter and to punish market manipulation.
It has electric reliability provisions. The motion includes what is perhaps the most widely supported provision in the bill before us today, making the rules that govern the operation of the interstate electric grid mandatory and enforceable. The U.S.-Canada Task Force report called this the most important step that this Nation can take to prevent future blackouts.
It includes legislation which relates to the Strategic Petroleum Reserve; and regardless of how the Members feel about drawing down the Strategic Petroleum Reserve to address prices, an idea which, by the way, I oppose, no one can quarrel with the premise that the Department of Energy should manage additions of crude oil to the reserves in such a way as to minimize
costs and to avoid exerting upward pressure on oil prices when markets are awry.
The administration has been inexplicably reluctant to defer deliveries of crude to SPR during the current market run-up in oil prices, despite the fact that it has been done before. The motion directs the Secretary to pursue this option and to utilize futures and other devices which would enable him to address this.
All of us, I think, here in the House favor certain aspects of H.R. 4503, but the good provisions are being held hostage to other aspects that are controversial, provisions which are clearly special interests and, quite frankly, will not pass the sniff test. It is too late in the session to continue playing chicken with this issue. The time has come to enact carefully drawn provisions in addressing the Nation's most immediate needs. This motion addresses the three most important major energy problems, market manipulation, electric reliability, and high gasoline prices, in ways that Members should be able to agree upon.
We can pursue the goal of a broader energy bill later in a better fashion, hopefully a more bipartisan way, in which the Members of the Congress will have an opportunity to address it with proper amendments on the floor or to attend the meetings of the conferees, which were foreclosed to Members on the minority side in a most curious and, I would note, unparliamentary fashion.
I urge my colleagues to endorse and support and vote for the motion to recommit. It is a good piece of legislation. It converts a bad piece of legislation into something which will work, and it has a chance of being considered and passed in the Senate. I urge my colleagues to vote for the motion to recommit.
Mr. Speaker, on that I demand the yeas and nays.
Madam Speaker, on that I demand the yeas and nays.