Mr. President, I suggest the absence of a quorum. I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I remember those days in West Virginia when all the major airlines operating large jet aircraft…
Mr. President, I suggest the absence of a quorum.
I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I remember those days in West Virginia when all the major airlines operating large jet aircraft served all of West Virginia's airports--jets, actual jets coming into West Virginia. Airline deregulation was a terrible mistake. It changed the very nature of air travel in this country for all. For millions of Americans in large urban areas, it ushered in an era of affordable air traffic. A trip to New York and Los Angeles went down. In fact, at a number of points, it became much cheaper to go
to Los Angeles from New York than to go from West Virginia to Washington. But for West Virginia communities, it meant a loss of service and convenience and often higher prices. It seemed to me that the big jets disappeared from West Virginia within days of deregulation. I remember those nice American, United, and Eastern jets sitting out there on the tarmac, people piling on. Deregulation--boom, they were gone.
For 30 years, small and rural communities have had to cope with very limited and unreliable service. The Presiding Officer knows exactly what I am talking about. Over the last several years, these problems have been exacerbated by the weakened financial condition of the U.S. airlines, which is what this whole effort to get a bill going is about.
After September 11, dozens of communities saw a dramatic decrease in the level of air service. It was measurable, noticeable, and depressing. Many lost service altogether. As the industry recovered from the dramatic downturn in the air traffic that tragic day sparked, small communities did not see the benefits of that resurgence because once they dropped something, it was easier to keep it dropped rather than to help.
Small community air service is facing an unprecedented crisis. If we fail to act to address this problem, dozens of small communities across our Nation will face a future without air service. Consider that for a moment--small communities, viable industries, institutions, people who count. Americans are born equal, but then some don't have air service. That is what we have now. Without access to reliable air service, we throw into question their economic future.
I do not come to the Senate to represent the diminution of possibilities for West Virginia's economic future. I have spoken about the weakened financial condition of our major airlines. But we must also recognize that small regional carriers that provide the air service to rural States such as West Virginia and Montana and parts of Ohio, I am quite certain, also provide the vast majority of air service to midsize communities across the country, and they are teetering on the brink of collapse because of high fuel prices.
As Senator Baucus knows all too well, small airlines across the West have folded, leaving at least 17 communities with no air service at all. Seventeen communities would sort of make up the entire State of West Virginia. That is a terrible blow. So few regional airlines are willing to initiate service to small, isolated communities that, when one withdraws service, it is very hard to find replacement air service. In most cases, it is impossible. Hundreds of small and rural communities across our country are facing drastically reduced air service because of this financial turmoil in the industry. Even in the best of times, these communities face a difficult time maintaining and developing new air service options. Today, their challenge is preventing the complete loss of air service. That is effort No. 1: Hold on to whatever you might have. No matter if it is one flight a day, hold on to it. Fight for it.
I strongly believe the Federal Government must continue to assist our most vulnerable communities stay connected to the Nation's aviation network, a network paid for by all Americans.
The reduction or elimination of air service has been devastating in terms of its effect on the economic well-being of many of our communities across the country. Having adequate air service is not only a matter of convenience, it is a matter of economic survival. Without access to reliable air service, businesses will not locate their operations in these areas of the country, no matter how attractive the quality of life or the quality of the workforce. We have, for example, extremely low housing prices, low property taxes, and an extraordinarily highly productive workforce, with an average in manufacturing of 1 percent annual turnover. That is almost unheard of. Airports are economic engines that attract critical new development opportunities and the people who can make those things happen or continue to grow.
West Virginia is a very good place to do business. Toyota and a number of other large industries, chemical and otherwise, have found that out. I can proudly state that countless large U.S. and international companies have facilities in my State. I can even point out that 20 Japanese companies have industries in the State of West Virginia, three in Wayne County, which the Presiding Officer is familiar with. From West Virginia, a business traveler can get to seven airline hubs and from these seven cities can get to any point on the globe. One-stop service to Tokyo, London, Dubai is critical if my State is going to compete in the global economy. West Virginia has been able to attract firms from around the world because corporate executives know they can visit their operations with ease. That is why we have air service. Rural and smalltown America must continue to be adequately linked to the Nation's air transportation network if its people and businesses are to compete with larger urban areas and around the world.
When Congress deregulated the airline industry, we promised small and rural communities we would make sure they would remain connected to the aviation system. We have failed in our commitment to those promises. The Essential Air Service Program, which Congress established when we deregulated the airline industry, is not a huge program, but it provides money to attract airlines into smaller communities and is incredibly valuable.
But, on the other hand, the essential air service has never met the true needs and expectations of rural air service or the necessary requirements of rural air service.
In West Virginia, the essential air service has often been plagued by high fares and limited, sporadic service. For 10 years, I have worked to strengthen small community air service. I do that because I represent a rural State with hard-working people who have an enormous desire to succeed and to work and are deprived of what many other Americans take for granted. That is not fair in Internet connection; you cannot have a rural and urban divide. It is just as true in airline service; you cannot have urban doing well, rurals being left out because we are all Americans, all created by God to be equal.
So I have worked to strengthen small community air service. In the Aviation Investment and Reform Act for the 21st Century, which Congress enacted into law in the distant past of the year 2000, we began to address the need to improve air service in small and rural communities.
I, along with many of my colleagues, supported the creation of something called the Small Community Air Service Development Pilot Program, a competitive grant program to provide communities with the resources they needed to attract new air service to their town. We try everything we can. We try absolutely everything we can. Over 100 communities now have used these grants to secure and retain new air service options. That is good.
I wish to highlight two success stories which happened in my State. Charleston received money under the program I have described and has used it successfully--Charleston is our capital--they have used it very successfully to attract a new service connection for our chemical industry to Houston. Why is that important? Well, our chemical companies do a lot of the training of their people in Houston and then they come back and they work in our chemical companies. Air service to Houston gave West Virginians an important gateway, in addition, therefore, to the markets of Latin America.
Over the past 2 years, Tri-State Airport in Huntington has been reborn because of the money it received under this Small Community Air Service Development Grant Program. Prior to attracting a low-cost charter operator, the airport had seen a steep decline in the number of passengers using the airport. With fewer passengers, airlines cut back flights. Fewer flights meant fewer passengers. It was a death spiral.
Once the community was able to secure a grant, matched with almost as many local dollars, airport officials were able to attract a new carrier that served the critical markets local residents wanted. For the first time in 20 years, large jets roared off the runways in West Virginia, in Huntington. The airport will have 100,000 passengers pass through its gates for the first time in decades.
Now, that is not very impressive if you are from New York or Los Angeles,
but in West Virginia it shakes the world, and it gives people new hope. I was there when all this happened, and you could see a new sense of vigor and determination in the population. Air service attracts community ambition.
Improving air service must be a collective effort. Communities are most successful in creating new air service options when everyone-- including the Federal and the State governments, airports, airlines, businesses, and citizens--works together to attract, promote, and use the service.
One of the things we learned the hard way in West Virginia was you cannot treat an airport similar to something which is out there which people will automatically go to. We used to have a lot of our people from Charleston driving all the way to Cincinnati and actually not understanding that the cost of traveling to Cincinnati and the fuel and the overnight and all the rest of it actually did not give them that much of a financial break, but they looked at the cost of the airline and off they went. So 16 percent of Charleston's traffic disappeared.
I am now proud to say West Virginia communities have been able to use this important program to rethink their air service needs, to think about marketing airports. You market airports like you market anything else. People have to be aware of it. You have to attract people to it. It is not something which is there. It is something which has to sell itself. LaGuardia does not have to do that. Newark does not have to do that. In West Virginia, we have to do that, and we are doing that.
The FAA bill that is before us extends the authorization for these important programs for 4 more years.
Four West Virginia commercial airports rely solely upon the Essential Air Service program for any service at all. We are extending that and enlarging the amount. No community wants to be dependent on essential air service. It is not a badge of honor. But it is a fact of survival. But for many, it is their only option to maintain air service.
But as I mentioned earlier, the program has not met the needs of many communities. In 2003, as part of the last FAA reauthorization bill, I created a number of new voluntary pilot programs for essential air service communities. I modeled these initiatives after the Small Community Air Service Pilot Program by focusing on incentives rather than punitive approaches.
Under this new plan, a community could receive funds to develop its own marketing plans rather than rely on the airline for one. It could use funds to increase service levels, opt to use different types of aircraft or investigate the use of alternative transportation service. In other words, it said: What is our problem? What are we going to do about it? We cannot wait on other people. We have to make these decisions ourselves. We are doing that in West Virginia.
This year, we have added a number of provisions to strengthen the Essential Air Service program. We have increased the authorization level for the program by $58 million to $175 million a year. We have included provisions to help carriers that provide the essential air service so they can meet the cost of high fuel. It is essential. We have increased the flexibility of the program even further so communities can work with the Department of Transportation and air carriers to find air service that works for them.
Small and rural communities are the very first to bear the brunt of bad economic times. It has always been so. It shall always be so. The Presiding Officer knows exactly what I am talking about. We are always, in West Virginia, at the end of the food chain on everything. We understand that. We do not like it, but that is our current destiny, and so that is why we have to fight harder and try to be more imaginative.
The general economic downturn and the dire straits of the aviation industry have placed exceptional burdens on air service to our most isolated communities. The Federal Government must provide additional resources for small communities to help themselves attract air service. If you have to do the work yourself, you do it. You just do it. The Federal Government must make sure our most vulnerable towns and cities are linked to the rest of the Nation. It is an easy statement to make, but it is a huge statement. We have an obligation in this country to make sure all of our communities and our people are linked to the broad air service opportunities, hubs and spokes. It has to happen.
My legislation builds on existing programs and strengthens them. We must continue to provide our constituents the tools and resources necessary to attract air service, and we are doing that.
So, in closing, I should say a subsidy alone does not solve the problems of small community air service. If our constituents do not use that service, or the airlines take it away--airlines cannot operate unprofitable flights or flights that are marginally profitable, for which they could do better elsewhere. They make a little bit of money or they do not make a little bit of money, and they are gone because their situation is so dire.
I do not know what the future of the U.S. airline industry will look like in 6 months, but our Nation needs a strong airline industry. Our communities need to be connected to the aviation system.
That is why we are going through this most extraordinary exercise of no amendments to be voted on, a good deal of time to sit and talk, a great deal of frustration. But we are trying to pass something called the Federal aviation bill that will provide service to our people. If there is anything in the national interest, it is that. I will not go so far as to say it is more important than the interstate highway system, in terms of economic development and also reaching out to the world, which all our States need now to do on a two-way basis.
So we fight. We continue to fight.
I yield the floor.
Madam President, I say to my good friend, the Senator from Georgia, things have changed a bit this morning and decisions are being made on that side of the aisle that will determine whether we can move forward. I am hopeful about that process.
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I say also to my very dear friend from Georgia with whom I have a long and wonderful background because of his strong reaction to our plight in West Virginia with the coal miners--he doesn't have coal in his State but he came into our State and adopted it as his own and we adopted him.
I also wish to tell him that what he is suggesting is something I very much support.
Amendment No. 4642 to Amendment No. 4637
Madam President, I believe there is an amendment at the desk.
Madam President, I ask unanimous consent that the reading of the amendment be dispensed with.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I would like to take a few moments today to discuss what is a catastrophe all across our Nation--and it certainly is in West Virginia--because of the price of gasoline and other transportation fuels.
My State is not wealthy. I think it is either the third or fourth poorest State in our country, and I do not say that with shame, I say that with pride because it was, in a sense, one of the reasons I was a VISTA volunteer. I went there as a VISTA volunteer because I saw a place where I could at least try to help. The people are the best ever. When people have to struggle to make it, day-in and day-out, they are pretty solid people.
As I am sure it is the case for all of my colleagues, for the past few weeks and months I have been hearing from my constituents constantly about rising gasoline prices and the resulting rise in the prices for goods and services throughout our economy.
West Virginians are hurting. West Virginians will always find a way to persevere--always--but right now many are struggling to juggle expenses, making enormous sacrifices to feed and clothe their families, while trying to pay the cost of going to work. We have plants in West Virginia which people drive hours and hours every day to get to. Work is not easily found, so where it is, people have to drive. We are 96 percent mountains, 4 percent flat. We have a lot of roads. People pretty much have canceled the occasional splurge for a movie. We have a baseball team in West Virginia. That has pretty much been pushed off. In other words, if it is a nonemergency purchase, they bypass it. It takes away from their happiness, their stability as a family, but they have no choice. Belts have been tightened just about as far as belts can be tightened.
Yet, this week, we hear that oil company profits are again nearing or exceeding record highs and that these companies have no plan and these companies have no desire to increase domestic refining capacity--one of the very few things we know would actually help bring down prices.
The Energy Information Administration and private sector energy experts tell us to expect gasoline and diesel fuel prices to continue to rise for the foreseeable future. I do not know what that means. I do not think West Virginians care very much what that means. It just means a long time. And a week, a month, is a long time. This is well beyond the usual cyclical annual price fluctuation. And the so-called summer driving season is not even here yet. But other than a brief dip in January, the price West Virginians have been paying at the pump has been climbing steadily since before Christmas--not as noticeable at first, now catastrophic.
The average price for a gallon of regular gasoline in West Virginia has risen from just over $2.70 a gallon in August 2007 to a price on the last day of April 2008 of $3.71. I do not have new wage data for workers in my State. I wish I did. But I am willing to stand on the floor of the Senate and assert that nobody's salary has risen to match that 37-percent increase.
The idea of $4-a-gallon gasoline--which 2, 3, 4, 5 years ago would have sounded crazy--really now is a matter not so much of ``if,'' but ``when.'' The timeframe I just mentioned is relevant, of course, because we are a country that has been at war in Iraq for more than 5 years--spending money, letting people do corruption at all levels. I am always suspicious of oil companies. When our brave American forces set out to impose regime change on that country based upon the false--or at least unforgivably imprecise; I prefer the word ``false''-- intelligence, West Virginians were paying, on average, $1.63 for regular gasoline. That was not that long ago. It had been as low as $1.26 in the months leading up to the invasion.
It should come as no surprise to anyone within the sound of my voice, but in that time oil industry profits have risen steadily: almost $60 billion in profits in 2003, just over $80 billion in profits in 2004, approximately $110 billion in profits in 2005, just under $120 billion in 2006, and just over $120 billion so far in 2007. ExxonMobil, Shell, and ChevronTexaco have each had increasingly larger profits each of the last 5 years. BP and ConocoPhillips have done nearly as well. In all, the five largest integrated multinational oil companies have reaped almost $560 billion in profits since President Bush and Vice President Cheney came into town. I don't particularly want to do it that way, because I blame the companies more than I blame them, but there is lots of blame to go around.
Anyone who looks at the numbers can make this about politics, of course. It is easy to do. But this is, in essence, for me, a former Vista volunteer in my 44th year in West Virginia, all about people. It is simply all about people and families who have been struggling anyway. The average salary for the average working family of four in West Virginia is $31,000. That is not a lot of money, before you get to all of this, and then it is even less.
Today, if you are lucky enough to live or work near Sam's Club in Vienna, WV, which is on the Ohio River, and you can afford to become a member there, you can get a gallon of gasoline for $3.49. It is hard for anyone I know in West Virginia to think of that as cheap, but it is the lowest price reported in the entire State. Frankly, based on the data I have seen, it is so much lower than the rest of the State that you almost have to consider it an anomaly.
If you are running low in Spencer, WV, a rural community, however, you need to be prepared to pay $3.82 at the Exxon station on Main Street. It is $3.79 in South Charleston. Residents of Huntington are paying $3.75. In Berkeley Springs, not far from Washington, it is $3.69. No West Virginia county--none--is reporting an average price per gallon of regular gasoline that is below $3.61. Only three of my States' 55 counties are reporting average gasoline prices lower than $3.67.
Individual price quotes at individual stations are ominous enough, but the real stark numbers, the real telling calculation, is how much more West Virginians are paying for gasoline than they were in years past, and that is not even getting into the meteoric rises in food prices and the other costs essential to daily living. Even those in West Virginia who travel by air, which is the subject of the bill we are meant to be on, those prices have gone up.
Since 2001, West Virginia households are paying almost $2,500 per year more for gasoline. If it is a household with children, that makes it $3,000. I take my colleagues back to the average salary for the average family of four, working family of four in West Virginia: $31,000. When you add on health care, food, rent, and all the rest, everything else, it is an enormous matter. If it is a household with teenagers, it is just below $3,600 more. Families, businesses, and farmers in West Virginia will spend $153 million more on gasoline in April 2008 than they spent in January 2001.
If prices remain at current levels, $1.83 billion more will be spent on gasoline in West Virginia this year than
was spent in 2001. West Virginia consumers, farmers, and businesses are on a track to pay $2.96 billion for gasoline this year.
So West Virginians are asking two questions: How did we get here; but to them, much more importantly, what can be done to fix this.
Nobody in Government, academia, or the private industry can give us a single definitive equation for what makes the price of oil go up and down. We don't know why, but we can't. Generally, increased demand from China, India, and much of the developing world has set the stage obviously for prices that we have to take into consideration.
Much of our oil comes from an unregulated and unresponsive cartel called OPEC. We also know that since the tragic terrorist attacks of September 11, 2001, the world price for petroleum has been affected by a global struggle against stateless thugs.
The instability brought about by the invasion in Iraq has done nothing but raise the pump price. I don't know a single benefit to our Nation that has been accomplished there. But smaller factors have also had huge consequences. Instability in Nigeria and the outrageous behavior in Venezuela have contributed in similarly negative ways. The recent strike by refinery and pipeline workers in Scotland, unbeknownst to many of our citizens, will not help. Likewise for the very serious refinery explosion in Utah this week.
Economists cannot pinpoint how much speculation in the commodities market is adding to the price of oil, but a congressional study in 2005 suggested it was in the $20 to $25 per barrel range. A more recent study announced by Public Citizen said it is now closer to $30 a barrel. It doesn't matter. Every cent of that is being seen at the gas pumps in West Virginia and around the country, and it hurts, and trying to give a worldwide economic explanation for it doesn't solve anybody's problems or anybody's pain.
We know, too, that the price is manipulated up and down the supply chain. Nobody will ever convince me that there is not a large amount of corruption and manipulation, deliberate, cozy and easy, that goes on around boardrooms in oil companies. From the huge oil companies that find the oil, through more markets and middlemen than we can keep up with, every player has the ability to force the price up for their own bottom line. There is manipulation beyond the reach of my people in West Virginia or the Presiding Officer's people in the State of Colorado. We are at their mercy. We pay the price, we are at the mercy--at the mercy of oil. Federal investigators cannot usually pinpoint collusion, but those acting independently to manipulate prices cost the people of West Virginia all the same. There are a lot of things Federal regulators never manage to find.
In the long term, the things we need to do sound basic--and this is the final part of my remarks and the important part, other than the overriding theme of anger--such as increasing supply and reducing consumption, but achieving these goals has proved to be very difficult.
I have long supported efforts to improve automobile fuel efficiency, and so have most other people--not all. We made a small and long overdue change last year, and I believe we will do more. I think CAFE standards are going to go up and up, as they should; cars will get smaller and smaller, as they should. That will not be good for my legs, but it will be good for my people. But even when Detroit catches up with the rest of the world's automakers on fuel efficiency--I repeat, catches up--we do need to add to our supply now.
That is why in 2006, I supported Senator Domenici's legislation to increase oil and gas exploration in the eastern Gulf of Mexico. When these new fields are fully on line, they will add 1.26 billion barrels of oil to our domestic supply. Now, I say that, but I also have to say in all honesty that I voted against virtually every other attempt to do drilling offshore and in ANWR, for example. ANWR to me has always been a shibboleth. People say: Well, we can get lots of supply there, just as many people or more say it is technically feasible or maybe it is economically feasible, but it is not both. In the meantime, the tundra continues to melt.
That is why I have also consistently supported holding off on additional deposits in our Strategic Petroleum Reserve. It is more than 97 percent full as it is, and there is no economic rationale for filling it to the brim with $120 per barrel of oil. That product should be making its way into the market some place.
I joined my colleagues earlier this year to ask the President to suspend deliveries into the petroleum reserve until the price of oil drops below $75 a barrel. Since the President persists in refusing to stop taking oil off the market, I will support legislation to force him to do it.
I also support, as I have in the past on several occasions, the imposition of a windfall profits tax on integrated multinational oil companies. People say this won't have any effect. I would like to try that out to show that they are wrong and to send a message. The oil companies are making so much money maybe they won't even notice it. But I doubt that, because there are now 300 million Americans who are very angry about what very few of them are doing. As I have said, these companies are making huge, perhaps unconscionable--not perhaps--totally unconscionable profits off the hard-working people in my State and off the wages of struggling Americans everywhere. If they refuse to reinvest in additional refining capacity, which has been their habit, the least we can do is use some of those profits to shore up the highway trust fund for the road infrastructure and transportation projects that we need for the 21st century, and perhaps even for something called aviation. Those projects would create jobs.
I will also reintroduce legislation this week that I first introduced in 2001. It is called the Low Income Gasoline Assistance Program, or LIGAP. This will provide some relief to Americans hardest hit by any rise in prices; to wit, the working poor, which describes a lot of my State. For many West Virginia seniors who have no means of getting to work, the grocery store, or to a doctor's appointment other than their cars or trucks, if they have them, LIGAP assistance for gasoline purchases will enable them to weather this crisis with a little more peace of mind. I say ``if they have them'' because many people in communities I have worked in throughout West Virginia don't have automobiles, so when they have to go somewhere, usually a pretty long distance, they have to hitch a ride. Even though our people are innately good and generous, because they depend on others as others depend on them, they will usually charge a fee for that ride. In any event, whether they can even take that ride will depend on whether they can afford the gasoline price to get there.
So LIGAP eligibility would be linked to and modeled after LIHEAP, the very successful and efficient home heating and cooling assistance program. Funds would be distributed to States as additions to allocations under the existing community development block grant program.
It makes sense. For everyone who qualifies, LIGAP would give stipends of between $100 and $165 a month. Hopefully, this may mean not having to scrimp on their children's food or cut back on prescription drugs and other family needs.
Families are the basis of our country. People are the basis of everything we do. It is just that there are some sectors of our economy that choose to avoid that because they don't have to depend upon those people because those people have no choice but to buy their products.
It is time for Congress and the administration to come together and stop bickering--it would be a majestic accomplishment--and stop fighting over turf, as we are doing on the aviation bill. While we engage in parliamentary tactics that most Americans don't give a hoot about--in fact, they hate us for doing it--West Virginians and citizens in every State are suffering, while oil companies are laughing all the way to their many banks. This must stop. I ask my colleagues to work with me to make this stop.
I yield the floor.