Mr. Speaker, I come to the floor tonight with an issue of enormous importance before the American people on my mind. And I'll be joined in just a few moments by distinguished colleagues from around the country who share my profound concern…
Mr. Speaker, I come to the floor tonight with an issue of enormous importance before the American people on my mind. And I'll be joined in just a few moments by distinguished colleagues from around the country who share my profound concern about legislation that has come to be known as cap-and-trade legislation. It is an effort that is under way here on Capitol Hill and from the Obama administration that could well result in an increase in energy cost for the average American household of more than $3,000 per year.
Now we want to talk about the facts and the data here because, even in newspapers and in wire services tonight, that number, which is the calculation of a study done by MIT, is the subject of some dispute and of some debate. I want to concede the point that the impact on the average American household, if the President and the majority's cap- and-trade bill were to become law, could actually be much higher than that. In fact, it would be President Obama, himself, as a candidate in January 2008, who spoke these words in a meeting with the editorial board of the San Francisco Chronicle, and I would say to any of our citizens who are looking in and who are Internet savvy: Don't take my word for it. Go to youtube.com and type in the President's name and the San Francisco Chronicle, and you can watch him say it for yourself.
I give the President, whose office and his person I respect, credit for candor. In January of 2008, he referred to this plan upon which he was campaigning and a plan upon which Democrats have now offered legislation, hearings for which begin this week.
The President said, ``Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket.'' Adding, ``That would cost money, and they will pass that money on to consumers.''
Let me say again: While a careful calculation of a study done, I believe, in 2007 by a distinguished university, MIT, estimates that the average American household would experience increased energy costs of some $3,128 per year, then candidate and now-President of the United States of America, Barack Obama, said that, if his cap-and-trade system passed into law, electricity rates would necessarily skyrocket.
Now, the last time I checked, which was just late last week, most of this country was going through one of the worst recessions we've experienced in decades. I say with a heavy heart that the people of Indiana recently learned that the unemployment rate in my fair State is now at 10 percent. The American people are hurting, struggling under the weight of the listing economic fortunes of this Nation. Let me say that the last thing, I believe, the American people want this Congress to do is to pass energy legislation in the name of dealing with climate change that could result in, to borrow the President's phrase, a skyrocketing of electricity rates on working families, small business owners and family farms.
As I prepare to begin to recognize some of my colleagues, many of whom have gotten to know more about this topic than I will have a chance to learn, I also want to make one more point about this: This legislation, known as the American Clean Energy and Security Act, offered on March 31, 2009, by House Energy and Commerce Chairman Waxman of California and by the Energy and Environment Subcommittee Chairman Markey, could not only result in this massive energy tax increase, but I want to say, if this legislation were to pass into law, it would be tantamount to a declaration of economic war on the Midwest by the liberal majority of this Congress.
Now, people who have known me over the last 8 years in this Congress know that I like to turn a phrase, but I don't like to be an alarmist, and so, for me to come to the floor of this Congress and say that I believe if the President's cap-and-trade bill were to become law it would, in effect, be a declaration of
economic war by liberals in Washington, D.C. on the Midwest, allow me to defend that point.
According to a recent study done by the Heritage Foundation, what they call their Manufacturing Vulnerability Index, a picture is worth 1,000 words. This map demonstrates the vulnerability being the highest among the dark red-colored States and the beige States being the least impacted by the cap-and-trade legislation. It tells the tale. I can't do better than this. So, when I say that to pass the cap-and-trade legislation could result in a massive national energy tax and would fall foursquare on States that are most dependent on coal-burning power plants for the electricity that we use in our homes and in our small businesses and on our farms, the map tells the tale.
The least affected areas are on the coast--on the west coast and in the Northeast--in places like New Jersey, Massachusetts, New York, Maine, and New Hampshire. A wider diversity of electricity sources of energy would be the least impacted. Likewise, California, Arizona, Oregon, and Washington State would be among the least impacted, but for the Midwest and my State, which according to this study is virtually ground zero of the impact of cap-and-trade's economic burden, the coloration of this map tells the tale. States along the Ohio River Valley, States across--let me say with pride--the heartland of this country, States that depend the most on coal-burning power plants will bear the greatest burden and households and small businesses and family farms in that region, a region, which if I can say on a very personal level, is already struggling in these difficult times.
As I mentioned, there is 10 percent unemployment in the State of Indiana, and for my Michigan neighbors who are looking in tonight, forgive me for not knowing the number, but I do know it's worse, and to think that this Congress, even as we speak, would be contemplating a cap-and-trade piece of legislation that may result in a massive national energy tax increase, falling most harshly on the Midwest, is unconscionable.
Now let me say one last item before I yield to a freshman. I'm going to yield 5 minutes to the gentleman from Texas, and we'll hear from Utah and from the gentlelady who just spoke. Let me say, Mr. Speaker, you've heard that I've qualified my estimates here, because the truth is that the American Clean Energy and Security legislation, offered by the distinguished gentleman from California and by the gentleman from Massachusetts, actually includes no specific numbers on how CO2 emission allowances would be allocated to energy producers. In other words, we don't know whether they'll be free, whether they'll be auctioned--the so-called cap-and-trade scheme. We don't know what price. Therefore, the bill that is going to be the subject of hearings on Capitol Hill this week provides so little information that the Congressional Budget Office confirmed again today that they cannot score the cap-and-trade bill.
Now, as I told members of the media today, we had a little budget debate a few weeks ago, and I remember the Republicans came out with a budget alternative, you might remember, Mr. Speaker, and a few days before that, we thought it would be helpful to put out an outline of that budget alternative. Yet it's a live-and-learn deal around here, and what I learned was that the media really doesn't appreciate it when Republicans come forward without all the numbers in the proposal. I've internalized that lesson, and I'm applying it to the Waxman-Markey bill.
The truth of the matter is that a nonbinding budget resolution is one thing, but legislation that could literally change the economic fortunes of the heartland of America for generations is another.
The American people, Mr. Speaker, are entitled to know what all of this is going to cost, and we don't know today because the bill that will be the subject of hearings, that will be the subject of subcommittee markups just in a matter of days, I'm told, and that may well be on the floor here before we get to Memorial Day weekend has no numbers, no numbers for us to estimate the impact on the average American family, on the average small business owner and family farmer, and that is just not acceptable. So Republicans are left to use estimates like the study from MIT.
We took MIT's estimate of a key cap-and-trade bill from the 110th Congress, cosponsored then by Senator Obama, because the targets of that Senate bill tracked the emission targets outlined in the President's budget. We took MIT's own number, $366 billion, divided that by the number of U.S. households. We assumed about 300 million people and an average household size of 2.56 people, all right? If we use that formula, you get roughly $3,000 per household. Using current census figures, you get $3,128 per household using MIT's own numbers.
Why are we using that? Why are we doing this calculation? Because we don't have any numbers in the bill.
The American people have a right to know. They have a right to know that the price tag is on the plans of this administration and of this majority to raise a massive national energy tax in the name of climate change. We urge them with all deliberate speed to cease and desist any further progress on cap-and-trade legislation until they put the numbers in the bill--leave aside Republicans in the Congress--and until they give the American people the opportunity to count the cost. You know, the old book tells you: Before you build a tower, before you go to war, you count the cost. The American people deserve the right to count the cost on the cap-and-tax legislation that is going to begin to be considered this week. They deserve nothing less.
So, with that, I'd like to yield to a new Member of Congress from Texas. The distinguished gentleman (Mr. Olson) is recognized for 5 minutes.
I thank the gentleman for his remarks and congratulate him on arriving on Capitol Hill and in such a short period of time commanding the respect of colleagues on both sides of the aisle. Pete Olson, we thank you.
Mr. Speaker, before I recognize the gentlelady from Minnesota, let me amplify a point that Mr. Olson made about the impact on this economy and jobs.
According to the National Association of Manufacturers, passing the cap-and-tax regime the likes of which Democrats are considering would result in the destruction of at least 3 to 4 million American jobs. According to the nonpartisan association, the National Association of Manufacturers, which really--as the gentlelady arrives at the podium-- and I will recognize Michele Bachmann from Minnesota--but this really begs the question, and I think this was a little bit of a question that was asked at some of the so-called TEA parties last Wednesday, people wonder if anybody in Washington here gets it anymore. I mean, during difficult times, every American family, every small business, every family farmer is out there finding ways to put off to tomorrow what they don't have to spend today. They are making sacrifices, they are making hard choices, they are looking for a little in-town income to supplement--looking for extra means to make it through.
What they are not doing is increasing spending in their family budgets and small business budgets, and they are certainly not increasing their costs. But that's what Washington, DC, is doing.
We've been on a spending spree over the first 3 months of this year: stimulus and omnibus and massive budget. And now the American people-- as we dust off from being home with our families over the Passover and Easter holidays--and Congress is prepared to begin to have hearings on what could well be the largest tax increases in American history, a national energy tax that could raise the cost of living on every American household by more than $3,128 a year, which I hasten to add, as I recognize the gentlelady for 5 minutes until she asks me for more, I hasten to add that the President of the United States, that as a candidate in January of 2008, ``Under my plans,'' speaking of the President's plan of a cap-and-trade system, ``electricity rates would necessarily skyrocket.'' And that is precisely the massive tax, national tax increase that we are here to oppose today.
I am very pleased to yield 5 minutes to the gentlelady from Minnesota, Michele Bachmann.
I thank the gentlelady. And before she departs the floor-- reclaiming my time--I would call the attention, Mr. Speaker, to you and anyone who might be looking in, to a map that reflects recent research done by the highly respected Heritage Foundation. They call this the manufacturing vulnerability index, which really calculates what the gentlelady said about her home State of Minnesota, my home State of Indiana, represent those kind of heartland States that will be undeniably most impacted by a cap-and-tax system.
I would yield to the gentlelady for a quick response. We're struggling in Indiana. Our economy, Mr. Speaker, has a 10 percent unemployment rate. The idea of Congress actually making a priority today--in the name of climate change--to pass legislation without numbers in it. Again, I want to emphasize we don't have numbers in this bill, but the estimates are based on independent studies that it will cost millions of jobs, the estimates are that it will burden families.
I would just ask the gentlelady, are the good people of Minnesota in a better position than the people of Indiana to absorb a national energy tax of some $3,128 per household?
I would yield.
I thank the gentlelady. And I will let her get on to her evening. But I did hear news reports of the administration's suggestion that they might consider phasing in the cap-and-tax. It kind of reminds me of that story of how you boil a frog, whether you turn the heat up slowly and bring it to a boil or whether you drop it into scalding water, it seems to me you've still got a dead frog at the end of that story.
The truth of the matter is that there are better solutions, solutions where we don't end up transferring enormous amounts of wealth from the heartland of the country, from the manufacturing bedrock of this Nation, if I can say with some regional pride. There are better solutions where we can deal with CO2 emissions, with new technologies. We can develop a broad, comprehensive energy strategy. And as I thank the gentlelady, Mr. Speaker, and wish her a restful evening, I am prepared to recognize the distinguished gentleman from Utah (Mr. Bishop).
Let me just assure, it has been mentioned by several of my colleagues, I was actually asked by the Republican leader of the Congress to lead a Republican Energy Solutions Working Group. We have brought together not only the distinguished ranking member of the Energy and Commerce Committee, Joe Barton, but also I've got the capable assistance of co-chairmen in the likes of Congressman John Shimkus, Congressman Fred Upton, men who have the experience and the background that helped us develop the American Energy Act as a Republican alternative in the last Congress and are in the process of building a comprehensive Republican energy alternative as we speak.
There are better solutions. There are better options. We can achieve cleaner air without raising taxes on every American household in the form of a national energy tax, a cost of living tax, according to estimates, of more than $3,128 per year.
Before I yield to the gentleman, let me say this point again because it is--you can probably tell I am a pretty patient man, Mr. Speaker, but when it comes down to denying the American people the information that they need to make informed choices, I am an impatient man. The truth is--and anyone looking on deserves to know--that this week this Congress will begin to debate what could well result in a massive change in our energy generation system in this country, the so-called cap-and-trade system, which would fall foursquare on coal-burning power plants in this country, would fall foursquare on the region of the country that I call home in Indiana and the industrial Midwest that relies so heavily
on coal-burning power plants. And this massive multigenerational impact on our economy, on our way of life, all in the name of climate change, and we have no numbers.
Mr. Speaker, it is not acceptable. It is not acceptable that the American Clean Energy and Security legislation that will be the subject of hearings beginning this week has been brought to the floor so bereft of detail that the Congressional Budget Office cannot tell the Members of this Congress or the people of the United States of America how much this is all going to cost. That is not acceptable. I urge my colleagues, burn the midnight oil, put the numbers in, or pull these hearings, pull this legislation until you can produce a bill that my colleagues--like the gentleman sitting across the aisle tonight, colleagues that I respect, colleagues with whom I differ vehemently on issues, but whose integrity I respect--that our colleagues can come together and have an honest debate about what this will really cost the American people.
Let's debate climate change. Let's debate the science. Let's debate the solutions for achieving carbon dioxide reductions and particulates. But let's also debate the cost. Let's allow the American people to count the cost before this Congress considers a massive national energy tax that could change our economy forever and essentially amounts to an economic declaration of war on the Midwest by liberals here in Washington, D.C.
With that, I am pleased to yield such time as he may consume to the former Speaker of the Utah State House, a distinguished member of the Republican minority, the gentleman from Utah (Mr. Bishop), an expert on issues of energy and an eloquent spokesman about positive solutions.
I thank the gentleman for his extraordinary remarks and eloquence. And let me thank my colleagues who have joined me and let me thank you, Mr. Speaker, for the courtesy of recognizing us for this debate. It will be the first of many, many hours on this floor, in committees, on the airwaves, and on the stump that House Republicans and, I expect, more than a few Democrats are going to be taking a case against this extraordinary national energy tax increase to the American people.
I am very provoked by the larger themes that Congressman Bishop brought forward tonight because, as I have been tapped to lead the House Republican Energy Solutions Working Group. Republicans will be coming up with an alternative energy strategy that will be built on precisely those ideals, on choices and options, on empowering individuals and small businesses, and on not only not raising taxes, as the President's cap-and-trade plan intends to do, a strategy of tax increases and fees on utility companies that will be passed along to the consuming public, most especially those of us who live in the Midwest; Republicans will be bringing forward ideas to actually use the Tax Code to give incentives for energy-producing companies to develop the new technologies that will result in cleaner air and a safer environment.
But let me recap, if I can. Anyone looking in tonight, Mr. Speaker, has a right to know this week, in the midst of these challenging economic times, this Congress is going to begin hearings and in a matter of a few days is going to begin the process of legislating, marking up, and ultimately bringing to the floor within this month legislation that could result in an increase in the cost of living, energy cost of living, of some $3,128 per year for every working family, small business, and family farm in America. And as the Heritage Foundation's recent Manufacturing Vulnerability Index showed, the President's cap-and-tax proposal will fall most squarely on the heartland of America, where my heart is, in the State of Indiana, and other great States of the industrial Midwest. Why? Is there an intention to go after a part of the country? Of course not. It's that we out in the Midwest along the Ohio River Valley, there where I went to college, we rely on coal-burning power plants for an inordinate amount of our electrical energy, in our businesses, in our farms, and in our homes. So the President's plan to cap and tax utility companies that burn coal principally will fall foursquare on the Midwest. In fact, the President admitted this point, and I give him high marks for candor and clarity.
In January, 2008, the President said: ``Under my plan of cap-and- trade system, electricity rates would necessarily skyrocket. That will cost money. They,'' referring to utility companies, he said, ``will pass that money on to consumers.'' Give the President of the United States credit for candor.
And, you know, as I always tell folks back home, don't take a politician's word for it. Go to youtube.com and type in the President's name respectfully and type in ``San Francisco Chronicle,'' and you can watch him say it for himself, as more than 200,000 Americans already have.
The last complaint I have is just that it's about the numbers. I spoke to a number of colleagues in the media today and pointed out to them that the Waxman-Markey bill that will begin hearings today includes no specifics whatsoever on how CO2 emission allowances will be allocated to energy producers. In other words, we don't know if they'll be free or if they'll be auctioned or at what price. This legislation they are about to have hearings on is bereft of numbers. That the Congressional Budget Office can't even tell us what it's going to cost. Namely, the American people are expecting this Chamber to take up legislation that could transform the economy of this Nation forever, transform the economy of the Midwest forever, and we are not being given the numbers necessary to count the cost and make an informed judgment. And that is simply not acceptable.
I close with some words that I first noticed about a year ago. They are the only words chiseled on the wall other than ``In God We Trust,'' which I also believe. But Daniel Webster has got some words up there that without my reading glasses on, I can't get all of them, but they are actually words about the environment, and they are words about natural resources. Isn't it interesting that in the last century as they put together this room, they put words up on the wall that talked about natural resources and energy. It's pretty interesting. Daniel Webster, at some point in his storied career, said, ``Let us develop the resources of this great Nation and call forth its power, and in so doing, let us do something worthy to be remembered.''
I really believe that the foundation of American greatness is our faith in God, our freedom, and our vast natural resources. The combination and our fealty to those three things, our belief
that America wasn't just an accident with somebody sailing on the way to India, that Providence had His hand on this miracle, our belief in freedom and free institutions and private property, economic and political freedom, combined with this extraordinary continent of natural resources, has allowed us to build the freest and most prosperous Nation in the history of the world. We can confront every challenge facing us in the 21st century if we build on that foundation of a belief in freedom and embrace those natural resources and renewing our faith in Him who set this miracle on these shores. But it all begins with knowing what we're doing.
So let's get the details out. The American people deserve to know what's in the cap-and-tax bill before the hearings start tomorrow, and we will keep coming to this floor until we get the numbers for every single one of those Americans that will be affected.