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Energy Subcommittee Hearing on Climate Change and Competitiveness (March 5, 2008)

Opening Statement of Congressman Rick Boucher

 

Energy and Air Quality Subcommittee Hearing

Climate Change: Competitiveness Concerns and Prospects for Engaging Developing Countries

 

March 5, 2008

 

          The subcommittee will come to order.

            In preparation for the drafting in the coming months of a mandatory control program for greenhouse gases, Chairman Dingell and I have been posting on the Committee's website a series of position papers addressing in detail the essential elements of a cap and trade control program.

            Our purpose in exploring these issues in depth is to stimulate discussion and responses from interested parties as a key step in a consensus building process. Our goal is to develop legislation which enjoys bi-partisan support, industry support and support from environmental advocates.

            The only legislation which can pass the Congress and be signed into law will be a measure that enjoys such a broad consensus.

            And in determining to construct a consensus supported measure, we are following this committee's time honored and successful tradition of drafting and passing clean air legislation. The three major clean air enactments passed in 1970, 1977 and 1990, originated in this committee, were bipartisan, supported by industry and environmental advocates and passed both Houses of Congress with large, bi-partisan majorities. Two of those measures were signed by Republican presidents and the other by a Democratic president.

            In view of the reality that an economy wide cap and trade program will be far more complex than any of the three preceding clean air enactments and have more significant implications for the economy, there is an even greater need to take our time, build consensus and ensure that our measure will not cause economic disruption.

            That said, it is our goal to move a cap and trade measure through the subcommittee and full committee this year in time for the bill to pass the House, be conferenced with the Senate and be presented to the President before the end of this congressional session.

The discussions which our position papers are stimulating will help to build that essential consensus.

            Before we turn our attention to bill drafting, we will release additional position papers, and the subcommittee will conduct additional hearings focusing on the alternatives before us for addressing key elements of our cap and trade program.

            This morning's hearing focuses on the competitiveness of American industry following the adoption of a U.S. greenhouse gas control program. It explores ways that our legislation imposing controls can ensure maximum participation from developing countries in a global effort to address climate change.

            In my view the inclusion of a provision in our legislation which ensures developing country participation is essential. We are all mindful of the 98 to 0 advisory vote of the U.S. Senate announcing opposition to the Kyoto Treaty largely due to the lack of any imposition of responsibility in that document on developing countries to reduce greenhouse gas emissions. The legislation we put forward will safeguard the competitiveness of American industry exposed to trade by ensuring a level playing field for our industry with industry in developing countries.

            Three leading proposals have been made to achieve these goals, each of which was examined in our position paper, and I want to thank AEP and the IBEW, the steel industry, Environmental Defense and others for their thoughtful suggestions.

            As we examine these alternative approaches in today's hearing, we hope to focus on these core questions:

            Which proposal is more likely to lead developing country emission reductions?

            Which is more likely to level the playing field and neutralize any competitive advantage the legislation might unintentionally create for industry in developing countries?

            And which is more likely to withstand scrutiny under trade treaties to which the U.S. is a party?

            I want to thank our witnesses.