Letters, statements, etc., submitted for the record by-Continued Statom, Will, machinist, Delco Remy America, prepared statement of Ruvin, Harvey, clerk, Dade County courthouse, prepared statement of Page 1076 973 342 709 184 260 10, 640, 1069 Tierney, Hon. John, a Representative in Congress from the State of Walaska, William A., State senator, State of Rhode Island Senate, pre- 651 168 Wilhelm, Paul, president, US Steel Group, USX Corp., prepared statement of 1145 Wise, Hon. Robert E., Jr., a Representative in Congress from the State of West Virginia, prepared statement of 36 Yellen, Janet L., chair, Council of Economic Advisers, prepared statement of 520 ........... KYOTO PROTOCOL: IS THE CLINTON-GORE ADMINISTRATION SELLING OUT AMERICANS? THURSDAY, APRIL 23, 1998 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON NATIONAL ECONOMIC GROWTH, Washington, DC. The subcommittee met, pursuant to notice, at 12:55 p.m., in room 2154, Rayburn House Office Building, Hon. David McIntosh (chairman of the subcommittee) presiding. Present: Representatives McIntosh, Sununu, Hastert, Scarborough, Snowbarger, Sessions, Tierney, Kucinich, and Waxman [ex officio]. Staff present: J. Keith Ausbrook and Larisa Dobriansky, senior counsels; Andrew Wilder, clerk; Sean Cunningham, counsel; Karen Barnes and Barbara Kahlow, professional staff members; Phil Barnett, minority chief counsel; Elizabeth Mundinger and Faith Weiss, minority counsels; Alys Campaigne, minority professional staff member; and Ellen Rayner, minority chief clerk. Mr. MCINTOSH. The Subcommittee The Subcommittee on National Economic Growth, Natural Resources, and Regulatory Affairs will come to order. The purpose of today's hearing is to examine the potential impact of the Kyoto Protocol on American citizens, American businesses, and the U.S. economy, and the U.S. energy system. Many citizens, elected officials from Federal, State, and local governments and experts some of whom we will hear today-believe that this treaty which Vice President Gore signed in December 1997 could potentially have very serious consequences for the American economy. They also believe that these consequences need to be fully analyzed and understood prior to Senate consideration of the protocol. More than 6 weeks ago, in preparation for this hearing, we requested documents and information from 22 executive branch departments and agencies that would justify the President's $6.3 billion budget request. In addition, we had indications in the public from Vice President Gore, President Clinton, and Stuart Eizenstat that they intended to take steps immediately to start implementing the policy that would be in compliance with that treaty. Now our first letter was sent out to the White House Office of Management and Budget on March 2 as material justifying the President's budget request. The documents information should have been readily available. But to date, 2 months later, we have not received any response (1) from OMB and only five of the departments have responded to that inquiry-as the chart over on that side of the room indicates. This is unacceptable, and I will announce today that our subcommittee will hold hearings with the major agencies, bring them up here and obtain those answers to those inquiries, so that the American people can know what's happening to justify this expenditure. Many of the experts have indicated that they see no net environmental benefits resulting from the Kyoto Protocol. By obligating the United States to reduce greenhouse admissions under this treaty by 7 percent below the 1990 levels during the period 2008-2012, Vice President Gore has committed the United States to assuming the greatest burden of any country. By the way, it's 7 percent below the 1990 levels, but experts estimate that that requires a reduction of somewhere between 30 and 40 percent in energy use from today's baseline. This target would require significant reductions in energy use within a relatively short time. It's clear to me that the administration intends to move forward with this policy. It is the intention of this subcommittee to point out the problems with the Kyoto Protocol and bring forward the administration to find out exactly what is happening and its policies and determine if, in fact, they are moving forward and implementing it prior to confirmation by the Senate. This treaty, by the way, is patently unfair because it exempts 77 percent of the countries from any obligations—including China, India, and Mexico-many of the worst polluters in this area. Exempting these countries will cause Americans to see their jobs and their livelihoods exported to take advantage of cheap labor, lower capital costs and production costs, and lower environmental health and safety standards. One of the things I can tell you from my district in Indiana-we don't need any more examples of our jobs being sent overseas. Whatever relief may exist in the form of a complex trading emissions program to be established under the Protocol will be left to U.N. bureaucracy dominated by countries not subject to the Protocol and in fact not subject to any overall limit on their omissions. To me, you can't possibly have a trading program that will reduce emissions if one party to that program has no limit applied to them under the system. What does this mean for Americans? The Kyoto Protocol could become the most costly and far-reaching scheme of regulatory control this country has ever known. This treaty could result in energy-rationing on a scale that has not been seen since the stagflation and gas lines of the Carter Presidency. Gasoline prices could go up 70 cents per gallon; commuting costs would be overwhelming; and there would be many families who won't be able to have a holiday or family reunion if Vice President Gore has his way. We can anticipate massive layoffs, and this isn't according to any business group; this is according to the AFL-CIO who estimate that as many as 1.5 million Americans could lose their jobs by 2010 if we implement this treaty. The days of full employment will be no more. We could lose as many-as much as $3.3 trillion in gross domestic product between 2001 and 2020; $3.3 trillion-roughly half our current national gross domestic product. Losses of this magnitude would make the malaise of the Carter years seem like the good old days. Prices for consumers would rise more than 50 percent, driving down real wages about $2,600 per household. Let me give you one example of how this devastation will have an impact on people throughout this country. Three years ago, due to foreign competition and high regulatory costs, a company in my hometown of Muncie, IN, Borg Warner, announced that they were selling their manual transmission line to a Mexican company. Now if Bill Clinton and Al Gore have their way, the remaining jobs of that plant will also be at risk. Because what the remaining workers make are transfer cases for sport utility vehicles which could well be driven out of the marketplace as a result of this costly Kyoto Treaty. I don't want to see those jobs sent overseas to follow the ones that we've already lost. In short, this treaty would be a massive tax on the American Dream levied by President Clinton and Vice President Al Gore. In this hearing, we will tell the American people about the real cost of Kyoto; the factories that could be closed; the jobs that will be lost; the small towns that will be boarded up; the paycuts; the hidden tax on everything from food to family vacations-in short, the knife in the back of the American worker. Despite these serious doubts about any science backing up the benefits, one thing is certain-the economic and social effects of this treaty will be catastrophic. If Vice President Gore and the radical environmentalists get their way, if the Kyoto is implemented, then this will be the first administration in American history to intentionally usher in a shrinking of the American economy. I would ask unanimous consent that all Members' and all witnesses' statements be included in the record and, without objection, it is so ordered. Let me turn now to Mr. Tierney and ask if you have an opening statement. Mr. TIERNEY. I do. Thank you, Mr. Chairman. Mr. Chairman, in line with your most recent motion, I asked that Mr. Miller's statement also be allowed to be placed on the record. He, unfortunately, is not going to be able to be here today to testify. He sends his regrets and thanks you for the opportunityMr. MCINTOSH. Seeing no objection Mr. TIERNEY. Thank you. Mr. MCINTOSH [continuing]. So ordered. [The prepared statement of Hon. George Miller follows:] Mr. Chairman and Mr. Tierney, thank you for the opportunity to testify today on U.S. efforts to Along with other Members on today's panel, I had the privilege to be in Kyoto with Chairman I believe the United States has the authority and the obligation to lead the way in curbing what is And the world is looking for U.S. leadership on this issue. While clearly the solution must include The truth is, steps necessary to curb global warming present an enormous economic opportunity The scientific evidence about global warming compels strong action, not a head-in-the-sand Regrettably, opponents of the Kyoto protocol -- the same political interests that have opposed most significant environmental legislation this century are not only opposing the global warming - (more) PRINTED ON RECYCLED PAPER |