Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I rise today to warn the American people. There is a Trojan horse riding across our country and onto the Senate floor. Its creators…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I rise today to warn the American people. There is a Trojan horse riding across our country and onto the Senate floor. Its creators want everyone to believe that their climate tax proposal will clean the planet while causing minimum impact on our lives. They want us to believe that everyone will live happily ever after. However, this is not a legend or a fairy tale. Hiding inside this Trojan horse is a monster of a tax increase to pay for the largest expansion of the Federal Government since FDR's New Deal.
The nonpartisan Congressional Budget Office estimates that this proposal will cost the American taxpayer $1.2 trillion dollars in taxes over just the first 10 years of this bill. And that tax bill is only expected to rise with time. With the hefty price tag and a huge expansion of bureaucracy, the legislation actually does very little, if anything, to improve the environment. The American people cannot afford to pay for this reckless attempt at energy policy. Instead, we should let American ingenuity lead the way toward exploration of American energy, expansion of renewable energy, and increased conservation.
This Climate Tax bill imposes a cap on greenhouse gas emissions that can be released into the environment by certain businesses, and this cap will gradually reduce every year until 2050. The bill creates allowances that gives companies the right to emit specific amounts of these greenhouse gases.
Some of the allowances will be distributed for free to various entities. The rest of the allowances will be auctioned to the highest bidder. These allowances can then be sold, traded, or transferred. The cost incurred by businesses to obtain these allowances will be passed on to consumers, hitting low-income households the hardest. But before we talk about the revenue windfall for the Government and about the people celebrating this legislation, let's discuss the victims.
First and foremost, this Climate Tax bill will cost our economy and our working families greatly. Restricting carbon dioxide emissions drives our energy supply down. Just as the bill hopes to do, the price of energy would increase. With gasoline prices already over 4 dollars a gallon and predicted to continue rising, we will all be hurting.
According to the EPA, this bill will increase the price of gas by at least 53 cents a gallon. 53 cents. In my home State of Nevada, this would translate currently into about $4.68 a gallon at today's average price for regular gasoline. And gas prices aren't the only thing that will go up. Electricity bills will increase by 44 percent or more.
And the cost to our overall economy would be devastating. By 2030, the annual loss to the United States' gross domestic product could reach nearly a trillion dollars. The proposal is called America's Climate Security Act, but with millions of jobs being destroyed because of this bill, not many Americans are going to be feeling secure. Many of the jobs lost are going to be in the manufacturing and mining industries that support so many of our smaller and rural communities. These valuable jobs will be forced to move overseas to countries like China and India, where companies will continue to emit greenhouse gases freely and without constraint. In case you haven't noticed, we all occupy the same big greenhouse--the planet Earth. So Americans lose their jobs, but our air on our planet is still polluted.
In fact, this bill makes such a minor impact on the worldwide greenhouse gas emissions that any reduction in the United States is swallowed up by the uncontrolled and rapidly growing emissions of China, India, and other developing nations.
If emissions continue to increase in these countries, the problems resulting from the global warming predicted by many scientists may still occur.
It just does not make sense for us to dramatically restrict our greenhouse gas emissions if China and India do not do the same.
If this bill isn't good for our families, our economy, our workers or our environment, who is it good for? The special interests and Washington lobbyists. By auctioning off carbon emission allowances and giving away even more for free, there will be more than $6 trillion dollars worth of allowances and offsets and funds to dole out to a hungry and a fierce pack of special interests. It's being called ``environmental pork,'' and the wolves are going to be ready to pounce. Hundreds of billions of dollars of that pork won't even stay here in America. Instead, it will be given away to foreign governments and companies.
So do we stand by as the proponents trot around this plan that means new taxes, higher gas prices, higher electricity bills, and more bureaucracy? In fact, the only thing this proposal reduces are the jobs of hard-working Americans and our standard of living.
Now, don't get me wrong, we absolutely need comprehensive energy reform. Americans are hurting at the pump and their budgets are being busted by rising cooling and heating bills. As a Nation, we are too dependent on Middle Eastern oil--a resource that is too often in the hands of brutal dictatorships.
But as is often the case in our Nation's history, we must look forward to a policy that unleashes the innovative spirit of Americans, takes a commonsense approach to our challenges, and rallies everyone to the cause.
We do this by encouraging conservation, efficiency, and renewable energy expansion through incentives, not by imposing unworkable mandates and impossible timelines.
As we spend time debating this legislation today, crucial tax credits that encourage innovation in solar, geothermal, wind, hydropower, and other alternative energy technologies are scheduled to expire. America's energy security needs those tax credits, and Congress should act to extend them immediately without offsets. The Senate
took an important step toward that objective by voting 88 to 8--to include the bipartisan Clean Energy Tax Stimulus Act, which I sponsored as part of the Senate-passed housing bill. Now the House must act so we can send a bill to the President that can be signed into law as soon as possible.
With exciting energy technology on the horizon, we can't afford to let these tax credits expire. In Nevada, some innovative projects have already begun harnessing the power of the Sun and to provide energy to our residents.
Nevada Solar One in Boulder City is one of the largest capacity solar plants built in the world and generates enough electricity to power at least 14,000 households a year.
Nellis Air Force Base in Las Vegas has the Nation's biggest photovoltaic solar power system, which supplies 30 percent of the energy needs at that base.
Henderson has Nevada's first solar home community, where each home has a rooftop solar electric system that generates 4,400 kilowatts hours per year. And late last year, Ausra, Inc., selected Las Vegas as the site of the first U.S. manufacturing plant for solar thermal power systems.
The world's largest geothermal power producer is headquartered in Reno.
And Nevada is home to the only associate degree program in the Nation in energy efficiency.
This is the innovative spirit that has powered American progress for centuries and will continue to drive us toward energy security for the 21st century and beyond. Renewable energy is a large part of that security, and my renewable energy bill encourages further investment in all these technological advances.
I believe that energy efficiency is the key to increasing conservation of our nation's energy resources. For this reason, my bipartisan Clean Energy Tax Stimulus Act contains a number of meaningful incentives to put us on the path to greater energy efficiency and independence. My bill encourages Americans to make energy efficiency improvements to their homes and businesses. This bill also encourages appliance manufacturers to produce more energy- efficient appliances.
But we also need to grow America's energy supply so that our economy and our wallets are not in the hands of unpredictable and unyielding hostile nations. What can we do? We can open a new frontier in American energy. I'm talking about responsible exploration in the Arctic National Wildlife Refuge, or ANWR, recoverable oil in deep-sea resources, opportunities with oil shale, a new era of nuclear energy, and a push toward clean coal.
I know these projects are controversial. When I first started considering exploration of ANWR, I had serious concerns. Proponents and opponents have been very vocal on this issue. I sought out neutral information so that I could make an informed decision. When you really get to the bottom of the debate over ANWR, you learn a few things.
Exploration of ANWR, which would not impact habitat and wildlife, would be limited to a tiny area, roughly the size of a postage stamp on a football field. With such a limited environmental impact, the benefit would be great. ANWR could generate more than 10 billion barrels of oil, enough to replace decades' worth of oil imports from Saudi Arabia. ANWR alone could save the United States $40 billion dollars annually in money now spent buying oil from overseas. It would also create hundreds of thousands of jobs. Thirteen years ago, President Clinton vetoed legislation that would have opened ANWR for exploration. If he had signed it into law instead, 1 million barrels of domestic oil would be flowing into the United States every single day.
This is American oil that would create American jobs. I'd say that is a much better investment than filling the coffers of countries that despise America and use our money to further that hate.
And we can access more American energy through deep-sea exploration in the Pacific and Atlantic oceans. This doesn't mean we set up oil rigs on our beaches and our shores. Development would take place at least 50 miles offshore, well beyond the visibility from land and at the discretion of coastal State Governors. Again, with very limited environmental impact, the benefit would be great.
There are about 8\1/2\ billion barrels of recoverable oil and 29.3 trillion cubic feet of natural gas available through such deep-sea exploration.
Oil shale is another promising supply of American energy that could make us more self-reliant and less dependent on Middle Eastern oil. Oil shale can be mined and processed to generate oil. By far the largest deposits of oil shale in the world are found in the United States in the Green River Formation, which includes portions of Colorado, Utah, and Wyoming. If we estimate there are about 1.8 trillion barrels of oil from oil shale in the Green River Formation, it is three times greater than the proven oil reserves of Saudi Arabia. It is also important to note that more than 70 percent of oil shale acreage in the Green River Formation is under federally owned land. Another positive attribute of oil shale resources.
America has more than a 230-year supply also of coal. Making us the Saudi Arabia of coal. It would be irresponsible for us to ignore this valuable resource that is abundant and affordable. With the progress being made in clean coal technology, we need coal to balance our energy portfolio and make us less dependent on Middle Eastern oil.
Another energy supply that we can take advantage of right here on American soil is nuclear energy. America was once the leader in this technology, but we are so far behind today that if we don't make drastic changes in our policy, we may never catch up.
Nuclear energy is clean and safe. It causes no air pollution, no water pollution, and no ground pollution. Nuclear energy in the United States has never caused a single injury or death. Unfortunately, only 20 percent of our electricity is coming from nuclear reactors. Doesn't make a whole lot of sense, does it?
We have several challenges when it comes to nuclear energy. President Carter outlawed nuclear recycling back in 1977. Another terrible blow came with the requirement that all radioactive byproducts be disposed of in a nuclear waste repository. Today, Britain, France, and Russia are recycling their nuclear waste, negating the need for a controversial repository, like Yucca Mountain. France has actually used nuclear power to produce 80 percent of its electricity for the last 25 years. France also manages to store all its high-level nuclear waste in a single room.
On the other hand, lawmakers in the United States have been throwing billions of dollars at a mountain in Nevada that is unsafe and unfit for nuclear waste storage. And why on Earth would we bury material that could be recycled into more energy? I also believe we must create incentives for the private sector to tackle the challenge of spent fuel storage. We know that Yucca mountain is not an option. For this reason, I plan to introduce a bill to establish monetary prizes for achievements in the research, development, demonstration, and commercial application of spent fuel storage alternatives. In the past, prized competitions have been very effective ways of encouraging creative solutions to address difficult technological challenges.
Technology has led to tremendous progress when it comes to nuclear energy, coal, and many other energy fronts. As ranking member of the Commerce Committee's Subcommittee on Science, Technology, and Innovation, I have had the opportunity to delve into the latest advances, and they are exciting. I can tell you technology and innovation will be keys to overcoming our energy challenges into the future. No other single road--renewable energy, conservation, domestic supply--can get us there. But technology, together with these American energy resources, will help lift us from the control of unconscionable nations.
These are the answers to our energy challenges, not some ill- conceived fantasy legislation called America's Climate Security Act, that will only drive us into greater energy insecurity. We can, however, learn from history and if we open this Trojan horse, we shouldn't be surprised to be engulfed by hidden tax hikes, $5 dollar-a- gallon gasoline, and an army of new Washington bureaucrats.
Instead, let us put our resources into American ingenuity. The innovation that has always come out of our inventors, scientists, and entrepreneurs will fuel our quest for energy security in the 21st century.
Ronald Reagan once said:
Preservation of our environment is not liberal or
conservative challenge, it's common sense.
We need to come together to address this issue because it impacts every facet of our lives. I know that we can be champions of a commonsense energy policy that is environmentally responsible as well as economically responsible. Let's not look back on another 13 years and wish we had acted today. The price for inaction is clearly too steep.
I yield the floor.