Mr. Chairman, I yield 1 minute to the distinguished gentleman from Texas (Mr. Green). (Mr. GREEN of Texas asked and was given permission to revise and extend his remarks.) Mr. Chairman, I yield 1 minute to the distinguished gentleman from…
Mr. Chairman, I yield 1 minute to the distinguished gentleman from Texas (Mr. Green).
(Mr. GREEN of Texas asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield 1 minute to the distinguished gentleman from Louisiana (Mr. John).
Mr. Chairman, in order that I can give my full and undivided attention to the gentleman from Massachusetts (Mr. Markey), for whom I have immense respect even though he is dead wrong on this one, I yield myself 2 minutes to close.
(Mr. DINGELL asked and was given permission to revise and extend his remarks.)
Mr. Chairman, this wonderful amendment, it just does not work. Although I love my good friends, the authors of it, they are dead wrong. It is going to cost jobs. The UAW says so. It is going to hurt the auto industry. The auto industry says so. It is going to force every American to ride around in a mini-car. It is going to fix it so that SUVs and decent-sized pickup trucks are not going to be available to people. It is going to mean that the auto industry is going to have to produce larger vehicles, such as larger than light-duty trucks, for purposes that ranchers and farmers and businessmen will have need of. And it is going to require unsafe vehicles, or at least less safe vehicles to be available to the American motoring public.
The simple answer is, it is going to require almost exclusively the production of mini-cars. The result is going to be a significant loss of safety.
The thing that we must understand about this is that the law on CAFE is now working. Automobiles and light pickup trucks and so forth are about twice as efficient as they were before we passed it. That has been an enormous advance of great benefit to the American people, and it has been something which has been of great help and done at great cost to the auto industry.
Something else that needs to be known: These cars are not manufactured on the basis of arithmetic averages. They are produced to meet CAFE standards on the basis of geometric or harmonic averages, which means that to produce one decent-sized car in which an individual or a company or a family may successfully and safely drive, the companies must produce many smaller cars.
So what are we looking at? We are looking at something which is going to adversely impact the American consumer with this amendment and also something which is going to adversely impact the auto industry.
Let me remind my colleagues that one job in seven in this country is an auto job, a supplier or a manufacturer. Look here, see where our people work and what this is going to do. There is no one in this country who is not dependent upon the automobile industry for a livelihood.
Mr. Chairman, let us have a responsible, sensible package of automobile fuel efficiency legislation. Let us not grasp at straws, and let us not push forward with legislation which, very frankly, although it sounds good, is wondrously mischievous and is going to not only hurt the country, the consumer, but also the auto industry and the auto workers.
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself 3 minutes.
Mr. Chairman, my substitute amendment replaces the electricity provisions of H.R. 6. My amendment is supported by all of labor, by all of consumer groups, by the public power industry, and by a host of other consumer and business organizations.
This is the first time that the House of Representatives has considered changes to the Nation's energy laws since the Energy Policy Act of 1992. Given the volatility and market manipulation that occurred in California
and other West Coast markets during 2000 to 2001, and the real need for reform, I wish I could muster kinder words for this portion of the bill which the amendment changes.
Unfortunately, title VI underscores the continuing lack of consensus about the direction of the Nation's electric markets. In the rush to produce an electricity title, a strange, hybrid, amphibian monster has come forth. It has produced something which has neither competition nor market reform and, indeed, there is not mention of the word ``competition'' anywhere in the bill. Instead, title VI combines elements of industry deregulation with provisions favoring special interests. Sadly, neither of these has much to do with protecting consumers or investors in this critical industry.
Among its deficiencies, title VI repeals the Public Utility Holding Company Act of 1935. It ties Federal regulators' hands in reviewing unjust and unreasonable electricity contracts. It codifies into permanent law a patchwork of different transmission regimes, placing some lines under Federal jurisdiction and others under State jurisdiction. While the utility may tell us that this last provision takes care of things, do not believe it, because it is going to make a fine controversy, which will continue to plague us.
Just as important, the bill lacks fundamental reforms needed to prevent recurrence of the abuses which the Federal Energy Regulatory Commission uncovered at its recent western markets investigation, and proposes only limited and superficial market reforms.
It is both because of what the title does and what it does not do that I am offering this substitute amendment. My amendment takes a different tack, setting aside deregulation proposals like PUHCA repeal; and instead, provides for a number of common-sense reforms. By curbing fraud and manipulation, which is not done under the committee bill, my amendment will protect consumers and reassure Wall Street and small investors that the industry is again stable.
This amendment gives FERC broad authority to take action against fraud in both electricity and natural gas markets. The Commission's report recently found that some of the abuses in western markets during 2000 and 2001 were not even illegal. This bill would correct that.
The amendment also gives FERC the necessary tools in the form of audit trail authority and robust transparency requirements to detect and deter manipulation.
One disturbing aspect of the Enron scandal was the timing of the Securities and Exchange Commission's decision this year to revoke Enron's ``exempt'' status under PUHCA, under which they have committed all manner of outrage on consumers and investors alike.
My amendment would also reform FERC's market-based energy rate policy and permit refunds for electricity overcharges from the date it began, not just from the date upon which they were filed with the FERC.
Finally, the substitute amendment increases civil and criminal penalties to the level of the Sarbanes-Oxley legislation enacted in the 107th Congress.
If my colleagues wish to vote for reform, this is the proposal. It is not one which is sought by the special interests; but it is one which is sought by consumers, investors, and others.
I urge my colleagues to vote for protection of consumers and investors and against future Enrons. In short, vote for the Dingell substitute amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I have in my hand a letter from the National Rural Electric Cooperative Association. It will be useful information for my friends, the chairman of the subcommittee and the chairman of the committee.
It says,
Dear Representative Dingell:
Electric cooperatives do not endorse the electricity title
of H.R. 6. We have serious problems with the repeal of Public
Utilities Holding Company Act (PUHCA), and with incentive
rates and participant funded transmission.
H.R. 6 expands Federal Energy Regulatory Commission
jurisdiction over electric cooperatives' transmission through
the so-called ``FERC Lite'' provision. The Dingell amendment
is more narrowly crafted and related to fraudulent,
manipulative or deceptive practices.
For the information of my good friends on the other side of the aisle, the public power folks support our amendment, not the committee bill.
Mr. Chairman, with all respect for all of my colleagues, there are certain things that are very simple and very clear here.
The bill before us does not address the problem. It repeals PUHCA. It eliminates the merger protections. It has virtually no protections in it against fraud. It raises the bar significantly for FERC to modify contracts. And it fixes it so that you cannot get speedy refunds going back to the date that the wrongdoing occurred.
Now, what does the substitute do? It gives FERC broad antifraud authority in every part. And I would note that it is supported by both the public power people and by the co-ops. It directs FERC to establish audit trails that do other things, including requiring transparency of transactions and rate-making so as to more easily detect and deter wrongdoing.
It requires the SEC to review existing PUHCA exemptions to prevent future Enrons from obscuring its actions, and I would note that SEC and FERC have pointed out the huge number of improprieties associated with Enron.
It increases civil and criminal penalties, and it reforms FERC's authority to permit refunds of unjust and unreasonable market-based rates back to the date that they began.
If my colleagues represent any place West of the Continental Divide in the United States, they should support the amendment because the amendment is crafted to address the problems which we found in the different reviews which took place of the misbehavior of Enron and others in the electrical utility industry. I would note that the abuses there cost consumers billions, not millions, billions of dollars, and in almost every State West of the crest line of the Rocky Mountains, including California but also including Nevada and Utah and Washington and Oregon.
If my colleagues want to stop fraud, if they want to stop wrongdoing, if they want to protect consumers, if they want to protect the American investing public, if they want an honest rate-making system, vote for the amendment.