<DOC> [110 Senate Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:33987.wais] S. Hrg. 110-12 SENATORS' PERSPECTIVES ON GLOBAL WARMING ======================================================================= HEARING before the COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS UNITED STATES SENATE ONE HUNDRED TENTH CONGRESS FIRST SESSION __________ JANUARY 30, 2007 __________ Printed for the use of the Committee on Environment and Public Works Available via the World Wide Web: http://www.access.gpo.gov/ congress.senate __________ U.S. GOVERNMENT PRINTING OFFICE 33-987 PDF WASHINGTON : 2007 --------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202)512-2250 Mail: Stop SSOP, Washington, DC 20402-0001 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS ONE HUNDRED TENTH CONGRESS FIRST SESSION BARBARA BOXER, California, Chairman MAX BAUCUS, Montana JAMES M. INHOFE, Oklahoma JOSEPH I. LIEBERMAN, Connecticut JOHN W. WARNER, Virginia THOMAS R. CARPER, Delaware GEORGE V. VOINOVICH, Ohio HILLARY RODHAM CLINTON, New York JOHNNY ISAKSON, Georgia FRANK R. LAUTENBERG, New Jersey DAVID VITTER, Louisiana BENJAMIN L. CARDIN, Maryland LARRY E. CRAIG, Idaho BERNARD SANDERS, Vermont LAMAR ALEXANDER, Tennessee AMY KLOBUCHAR, Minnesota CRAIG THOMAS, Wyoming SHELDON WHITEHOUSE, Rhode Island CHRISTOPHER S. BOND, Missouri Bettina Poirier, Majority Staff Director and Chief Counsel Andrew Wheeler, Minority Staff Director C O N T E N T S ---------- Page JANUARY 30, 2007 OPENING STATEMENTS Alexander, Hon. Lamar, U.S. Senator from the State of Tennessee.. 32 Boxer, Hon. Barbara, U.S. Senator from the State of California... 1 Bond, Hon. Christopher S., U.S. Senator from the State of Missouri....................................................... 23 Cardin, Hon. Benjamin L., U.S. Senator from the State of Maryland 56 Carper, Hon. Thomas R., U.S. Senator from the State of Delaware.. 19 Clinton, Hon. Hillary Rodham, U.S. Senator from the State of New York........................................................... 42 Craig, Hon. Larry E., U.S. Senator from the State of Idaho....... 39 Inhofe, Hon. James M., U.S. Senator from the State of Oklahoma... 4 Isakson, Hon. Johnny, U.S. Senator from the State of Georgia..... 18 Klobuchar, Hon. Amy, U.S. Senator from the State of Minnesota.... 47 Lautenberg, Hon. Frank, U.S. Senator from the State of New Jersey 35 Lieberman, Hon. Joseph I., U.S. Senator from the State of Connecticut.................................................... 28 Sanders, Hon. Bernard, U.S. Senator from the State of Vermont.... 52 Whitehouse, Hon. Sheldon, U.S. Senator from the State of Rhode Island......................................................... 62 WITNESSES Akaka, Hon. Daniel, U.S. Senator from the State of Hawaii........ 104 Bingaman, Hon. Jeff, U.S. Senator from the State of New Mexico... 69 Durbin, Hon. Richard J., U.S. Senator from the State of Illinois. 114 Feinstein, Hon. Dianne, U.S. Senator from the State of California 72 Kerry, Hon. John, U.S. Senator from the Commonwealth of Massachusetts.................................................. 75 Levin, Hon. Carl, U.S. Senator from the State of Michigan........ 92 Lincoln, Hon. Blanche, U.S. Senator from the State of Arkansas... 107 McCain, Hon. John, U.S. Senator from the State of Arizona........ 80 Murkowski, Hon. Lisa, U.S. Senator from the State of Alaska...... 98 Nelson, Hon. Bill, U.S. Senator from the State of Florida........ 111 Obama, Hon. Barack, U.S. Senator from the State of Illinois...... 87 ADDITIONAL MATERIAL Charts: American Businesses Call for Action on Global Warming, U.S. Climate Action Partnership................................. 128 An Urgent Call to Action, Scientists and Evangelicals Unite to Protect Creation........................................ 129 A Sample of Editorial Boards from Across the Country on the Need to Address Global Warming............................131-133 Eleven National Academies of Sciences Urge ``Prompt Action'' to Address Global Warming.................................. 127 Interior Secretary Kempthorne Announces Proposal to List Polar Bears as Threatened Under Endangered Species Act..... 137 Oil Companies on the Need for Action on Global Warming....... 134 President Bush State of the Union Address.................... 136 Prime Minister Tony Blair's Recent Comments on Global Warming 138 State and Local Action to Address Global Warming............. 130 U.S. Defense Department Sponsored Report, Climate Change and Its Implications for National Security..................... 135 Past Climate Speeches by: Senator Craig and Colleagues................................139-996 Senator Inhofe.............................................997-1053 Report, Agricultural & Forestlands: U.S. Carbon Policy Strategies, Prepared for the Pew Center on Global Climate Change, September 2006, by Kenneth R. Richards, School of Public and Environmental Affairs, Indiana University; R. Neil Sampson, The Sampson Group, Inc.; Sandra Brown, Winrock International, Ecosystem Services Unit......................1054-1134 Resolution, S. Res. 30........................................... 1135 Statements: Biden, Jr., Hon. Joseph, U.S. Senator from the State of Delaware................................................... 124 Enzi, Hon. Michael B., U.S. Senator from the State of Wyoming 119 Feingold, Hon. Russ, U.S. Senator from the State of Wisconsin 118 Gregg, Hon. Judd, U.S. Senator from the State of New Hampshire.................................................. 66 Inouye, Hon. Daniel K., U.S. Senator from the State of Hawaii 123 Kennedy, Hon. Edward M., U.S. Senator from the Commonwealth of Massachusetts........................................... 120 Lugar, Hon. Richard G., U.S. Senator from the State of Indiana.................................................... 121 Snowe, Hon. Olympia J., U.S. Senator from the State of Maine. 8 Voinovich, Hon. George V., U.S. Senator from the State of Ohio....................................................... 10 SENATORS' PERSPECTIVES ON GLOBAL WARMING ---------- TUESDAY, JANUARY 30, 2007 U.S. Senate, Committee on Environment and Public Works, Washington, DC. The committee met, pursuant to notice, at 9:06 a.m. in room 406, Dirksen Senate Office Building, the Hon. Barbara Boxer (chairman of the committee) presiding. Present: Senators Boxer, Alexander, Baucus, Bond, Cardin, Carper, Clinton, Craig, Inhofe, Isakson, Klobuchar, Lautenberg, Lieberman, Sanders, Thomas, Vitter, Voinovich, Warner, Whitehouse. Also present: Senators Bingaman, Feinstein, Kerry, McCain, Obama, Levin, Murkowski, Akaka, Lincoln, Nelson of Florida, Durbin. OPENING STATEMENT OF HON. BARBARA BOXER, U.S. SENATOR FROM THE STATE OF CALIFORNIA Senator Boxer. The hearing will come to order. For the information of committee members, we will be following the early bird rule, which is our standard practice, for committee member statements. Because we are also adopting our budget, we may have to just take a break in the hearing when we have the quorum present, so we can do that and get on our way with the committee agenda. A couple of little items I wanted to mention. One is not little, but a very important one, is that last night Chairman David Obey introduced the funding resolution for the remainder of fiscal year 2007, a continuing resolution. I know that Senator Bond has been working very, very hard with Senator Murray and others. I have been working with Senator Baucus and Senator Inhofe. The good news is that the Federal Aid Highway Program is fully funded at the $39.1 billion level authorized in SAFETEA- LU. We are very happy about this because I know all Senators here wanted to make sure we did not see cutbacks. Achieving full funding was the result of considerable effort. A bipartisan letter was circulated. The Banking Committee also worked with us. So 72 Senators worked to request the full funding, and I am very pleased because it is directly related to our economic prosperity, and continued construction and maintenance of our roads. So that is a victory, I think, for this committee. We weighed in pretty heavily on that point, so I am very proud of that. The other business item I wanted to mention, just for Senators, is that I wanted to give you an idea of a few of the hearings that are coming up that have been signed off by the Republicans. We are having a hearing on February 6 on EPA oversight, where we are going to look at the closing down of the libraries, clean air for chlorate, and other top issues. Some of us felt those were rolled back, and we'll just look at those. The next day, on the 7th, Senator Lieberman is going to look at global warming and its impact on wildlife. The following week we will have a budget hearing, on the 15th, and I wanted to mention for all Senators, we are working on a hearing on WRDA and Army Corps issues on March 15, with a markup on March 29. So we are moving ahead with the committee, and other colleagues are going to be calling hearings of their subcommittees. Today, we are going to have an extraordinary Senate hearing on global warming, and we will hear from many Senators on this crucial issue. We are going to hear from members in order of arrival, alternating by party, as I said. Later this morning, into early afternoon, we are going to hear from Senators who don't serve on this committee, but Senators who care very deeply about this subject matter, many of whom have introduced legislation. I would just, for the interests of all Senators, because I know it's very hard to stay here that number of hours, but if you could remain, we still expect to hear from Senators Bingaman, Feinstein, Kerry, Biden, McCain, Obama, Levin, Murkowski, Akaka, Lincoln, Durbin and Nelson of Florida, so we have a good number coming forward. What I am hoping is that at the end of this day, we will have a reading on where most Senators are, how they feel about pursuing legislation to deal with the matter of global warming. In a show of extreme bipartisanship and friendship, I have agreed, because Senator Inhofe has a very urgent meeting of the Armed Services Committee, I have allowed him to open up the hearing today. So Senator, I have given you 12 minutes, and the rest of us will have 10 minutes. I will have 12 minutes. So please go right ahead and take your 12 minutes. I just want to thank you for working with me to get us moving. I know we have many disagreements, but we truly are friends, and I think it is reflected in the progress we're making. Thank you. [The prepared statement of Senator Boxer follows:] Statement of Hon. Barbara Boxer, U.S. Senator from the State of California My colleagues, I believe we must act now to address global warming. I believe it is our responsibility. I believe it is our duty. And I believe it is our challenge. I believe that just as consensus has been built among scientists, it is rapidly building among the American people. A recent Time Magazine/ABC News Poll found that 88 percent say that global warming threatens future generations. We are at a historic moment--the tide is turning. A real consensus is coming together around this issue in a way that has never happened before. Scientists, the public, and even the Bush Administration agree: global warming is real, and humans are making a serious contribution. Let us look at what a growing chorus of voices is saying across the country about global warming: Chart attached: <bullet> National Academy of Sciences <bullet> U.S. Climate Action Partnership <bullet> Evangelicals and Scientists <bullet> State and Local Governments <bullet> Editorials <bullet> Oil Companies <bullet> Pentagon Funded Report <bullet> Bush Administration: <bullet> State of the Union <bullet> Department of Interior/Polar Bear Proposed Listing <bullet> Recent Statement by Tony Blair We know what is happening--the science is clear: The planet is getting warmer because humans are releasing too much carbon pollution into the atmosphere. If we fail to take action on global warming now, we can expect future catastrophic impacts like rising sea levels, more extreme weather events of all kinds, damage to coral reefs and fisheries, and negative impacts on food production and water supplies. We need to act soon, before we reach a tipping point when irreversible changes to the world we know may occur. We know what sectors in our economy emit these greenhouse gases: <bullet> Transportation = 30 percent of emissions; <bullet> Power Plants = 40 percent of emissions <bullet> Industry, Commercial and Other sources = 30 percent of emissions. We know what we have to do. In order to avoid the worst effects of climate change, it is important to stabilize emissions and hold temperature rise to less than 2 degrees Fahrenheit from where we are now. In short, we need to cap and eventually, significantly reduce our greenhouse gas emissions. I am very proud of my home State of California, which enacted AB 32, an economy wide global warming bill. This law sets a mandatory cap on carbon pollution, including a 25 percent reduction from projected levels by 2020. The Governor also signed an Executive Order establishing a goal of an 80 percent reduction in greenhouse gases by 2050 from 1990 levels. A consensus is developing that we must take action at the Federal level now. On June 22, 2005, a majority of the Republican controlled Senate (53-44) supported action on climate change through the Bingaman Resolution. The resolution was a Sense of the Senate resolution that supported mandatory emissions limits. There is much to gain in our efforts to reduce greenhouse gas emissions. For example, increasing our energy efficiency will save us money, make us more energy independent, help cleanup our air, and reduce carbon pollution. In an effort to make the Federal Government a model, I will be introducing legislation to accelerate the effort to make the thousands of Federal Government buildings managed by the General Services Administration models of energy efficiency, starting with lighting systems. The GSA owns or leases over 340 million square feet of space in nearly 9,000 buildings located in every State. GSA calls itself the largest property manager in the United States. I am already working directly with the Administration on this effort to see if we can find common ground and achieve the goal of making these buildings a model together. Similarly, energy efficiency standards for appliances can save us lots of energy and will save money for consumers. Using renewable fuels fights global warming and also will reduce our dependence on oil, and will help cleanup our air. I have introduced legislation that would support the development of cellulosic ethanol, which can be made from agricultural waste, grass, and many other plants. Planting trees and other plants, which absorb carbon, can create carbon ``sinks.'' This type of ``carbon sequestration'' also must be considered. There are many benefits to fighting global warming. As we meet this challenge, new technologies will be invented and exported. Jobs will be created and these new technologies will be needed by the world. The great genius of American entrepreneurship will rise to the challenge. When we succeed in the battle against global warming the oceans also will be healthier. Right now, the oceans are showing the strains from absorbing so much CO<INF>2</INF>. Our oceans have acted like a ``sink'' for the carbon, and scientists are warning us about trouble with coral reef die offs and potential long-term impacts on fisheries. There are many approaches to the issue of global warming. Several of our colleagues have tackled this issue in a very positive way. Some take an economy-wide approach--others, an industry specific approach. I am sure we will hear their ideas today. I know it is no secret that I call the Sanders/Boxer bill originally written by our dear friend Jim Jeffords, the ``gold standard'' bill because it is comprehensive and takes bold action that I believe is warranted by the facts. My goal is of course to get us as close as we can to that ``gold standard'' which is reflected in the California program. I am a realist, and I know only by working together can we move forward with legislation. I pledge today that all ideas and all Senators will have a seat at the table as we move toward action. Ladies and gentlemen: I am an optimist. I believe in our ability to act and I am counting on the Environment Committee, which has a distinguished history, to move us forward: <bullet> After the Cuyahoga River caught fire in Ohio in 1969, and many of our lakes and rivers were open sewers, our Committee responded with a comprehensive remedy, enacting the Clean Water Act in 1972. Today we can look with pride on the improvements in water quality across this country. While our work is not done, and we must ensure we do not take steps backward, the positive results speak for themselves. <bullet> When the air was so dirty you could see it and there were few tools to address it, our Committee responded with the Clean Air Act in 1970. Our work is not done, but the air is much cleaner and safer. <bullet> When contaminated tap water was causing widespread waterborne disease and exposing people to cancer-causing chemicals, our Committee enacted the Safe Drinking Water Act in 1974. Now we must face the challenge of global warming. It is one of the great challenges of this generation. It's once again our turn again to stand up and lead this greatest country on earth to a bright future that will energize our people here at home and the whole world. This is a challenge we can and will meet. OPENING STATEMENT OF HON. JAMES M. INHOFE, U.S. SENATOR FROM THE STATE OF OKLAHOMA Senator Inhofe. I think it is, too, and I do appreciate your accommodating my schedule. As Senator Lieberman knows, we have Admiral Fallon before the Armed Services Committee, and it will be necessary to be there. He is taking over a very responsible job as the Commander of the Central Command. Let me first of all say, you know, my staff called me up, Madam Chairman, when you decided to have this type of a format, and said: ``This is unprecedented; we have never done this type of thing before. We have a protocol we go by on these that has worked very well over the years, whereby we select witnesses. The Minority has witnesses. This breaks the protocol.'' So they said, ``I assume that you want to object to it.'' I said: ``For Barbara Boxer, no, I don't want to object to it. I want to go ahead and have this. This is her first hearing, and I would personally like to have any type of format that she wants.'' It would seem to me, though, that a better way of doing this would be, because then you get a double shot at it, to let these members go to the floor, as if on morning business. I have actually given over a dozen speeches, each one over 1 hour, on the floor of the Senate. That is one thing about it. You and I having served on the House side realize that we have a lot more time over here to do such a thing. So we have done that, and I feel that's the best format to use. I have not been satisfied with the way this has started. I have to say this, that back 4 years ago when I became chairman of this committee, I was a believer that manmade anthropogenic gases actually affected climate change. I had been told that. All the media said that. The science seemed to say that. This is 4 years ago. Then they came along with the Wharton School had the Wharton Econometric Survey and others evaluate it. What would it cost America if we were to sign onto the Kyoto Protocol, at that time, that is what they were trying to do, and comply with its emission requirements? I could talk for a long time as to what would happen, but it would be just very destructive to our country in terms of doubling the cost of energy and the cost of fuel. The average family of four, they said, it would cost them $2,750 a year. So what I did was say, let's look and be sure that the science is right, and is decided. About that time, it seemed like some hysteria was setting in, because one by one, different scientists were coming out and saying, ``no, it is not anthropogenic gases that are causing climate change,'' as we once thought might be the case. We had the Oregon Petition that came long. That was 17,800 scientists who made the statement,``There is no convincing scientific evidence that human release of greenhouse gas is causing or will in the foreseeable future cause catastrophic global warming.'' You had the 60 Canadian scientists who had recommended to the Prime Minister back in the 1990's that they sign onto the Protocol, and they did. And then after they started studying over the next period of years, just recently came out and they said, ``If back in the mid-1990's we knew what we know today about climate, Kyoto would almost certainly not exist because we would have concluded it was not necessary.'' So you are having scientists come, and I have many others. I think one of the best ones, who was a real advocate of climate change being a result of manmade gases, was a very liberal Claude Allegre. He is a French geophysicist, a member of both the French and the American Academy of Sciences. Keep in mind, he was one of those who was marching down the aisles in favor of Kyoto, in favor of the notion that manmade gases are causing climate change. But after studying this, and spending time, and no one questions his qualifications, the cause of warming is unknown. The proponents of manmade catastrophic global warming are being motivated by money. Well, let's stop and look at that for a minute. Just last week we had Heidi Cullen, who is with the Weather Channel. We all know that the Weather Channel would like to have people afraid all the time. That causes them to watch the Weather Channel. It caused the ratings to go up. She went overboard last week when she came out and she said, and I am paraphrasing now, but this doesn't miss it far. She said, you know, any of the scientists or meteorologists who don't agree with us should be discredited by the American Meteorological Society. Now, that is something that is way over the top. Well, I have sent an op/ed piece out after that. It was picked up by Drudge and several others, and boy the blogs started coming in. It was so overwhelming that we had in 1 hour 70,000 responses. That let's you know what people are thinking out there. It caused them to shut down the Senate website. So these things are happening. I figure that what we need to do responsively is to follow some of the ideas we had before. Put the chart up, the Hagel chart, the first one. It seemed to be agreed to by 100 percent of the U.S. Senate, the vote was 95 to nothing, that we would not sign onto a Kyoto agreement unless two things were present: No. 1, it would not hurt us economically; and No. 2, it would affect the developing nations the same as the developed nations. Now, if you stop and think about it, China is having a heyday right now. We have not put on line a new gas-generating electric operation in the United States in 17 years. They are cranking one out every 3 days in China. They say they never have any intentions of complying with any kind of restrictions. In the year 2009, they will pass us up and they will be the No. 1 emitter of CO<INF>2</INF>, and they have no interest in stopping it. Well, if you look at all the bills that are out there right now, or that have been out there, there are five of them, in terms of Byrd-Hagel and Bingaman, not one of these complies with those two mandates that we have, that it couldn't hurt the economy and the developing nations had to be a part of it. I will put the new chart I had not seen until this morning. Of all of the countries, and this is another thing that has to be looked at, who have signed onto this thing, these countries, Canada and the rest of them, have not complied with the emission requirements. There are 15 countries in Western Europe that had signed onto it. There should be a line or point there for 1997, would be about there. Yes. At that point in 1997, if these countries who signed onto the Protocol had done it, and we are talking about 15 European countries, then the red line would be where emissions would be today and in the near future. However, of the 15 European countries, only Great Britain and Sweden have complied with it, and Great Britain did because of the big dip they had prior to the time they started keeping score. So they actually, with their trade policy, could come out ahead. The other thing that I think is worth saying in this period of time that I have, Madam Chairman, is the IPCC and the fact that it is flawed. Lord Nigel Lawson, who is the former Chancellor of the Exchequer over in Great Britain, a member of the House of Lords Committee that reviewed the IPCC. Keep in mind, the United Nations started all this stuff, the Intergovernmental Panel on Climate Change. He said, ``I believe the IPCC process is so flawed and the institution, it has to be said, so closed to reason that it would be far better to thank it for the work it has done, close it down, and transfer all future international collaboration on the issue of climate change.'' Now, if you will look at the third chart that I have. It tells you that even people who signed onto it and say it is a wonderful thing, are not complying with it. This is the critical one. Back when Al Gore was Vice President of the United States, and Al Gore still thinks that he can use climate change and global warming. That is his ticket to the White House. So he is convinced that is going to get him there. But he had Tom Wiggly [phonetically], who at that time was at the National Center for Science Research, he had him as his scientist, say, all right now, Mr. Wiggly, what I want you to do is say if all developed countries complied with and became a part of the Protocol of Kyoto and complied with the emission requirements, what would that do over a 50-year-period in terms of reducing the temperature? He made his study and it came out with this chart. If all these countries did, and I am talking about all developed nations, and not like Europe, because none of them are meeting the requirements, if they did meet the requirement it would change, it would lower the temperature by 0.06 of 1 <SUP>+</SUP>C, which isn't even measurable. So I have often said, even if we are wrong, let's look and see what doing all of this financial punishment to our Country would result in, in terms of reducing the temperature. So I would only say, Madam Chairman, you are going to have a wonderful day today. I regret that I will not be able to spend the day with you. I would enjoy that, and maybe there is something new I haven't heard yet, but I have studied this thing for a long, long period of time. [The prepared statement of Senator Inhofe follows:] Statement of Hon. James M. Inhofe, U.S. Senator from the State of Oklahoma Madam Chairman, before I begin my remarks on climate change I do want to point out that I disagree with the format of today's hearing. Just to hold a hearing for members to provide testimony is duplicative of the Senate floor. We should be doing this in morning business on the floor. When you insisted on holding this in the Committee, we suggested a forum or a roundtable instead of a hearing. This event today breaks every hearing protocol of this Committee, from no agreed to witness list to testimony not being submitted under our rules. If it were not your first hearing Madam Chairman, I would have objected to this hearing. I do want to state for the record that by agreeing to today's format, we are not setting a new precedent for this Committee and I will object in the future to any similar hearings. On the issue of climate change in the last four years, I have spoken on the Senate floor more than a dozen times, held four hearings, two stakeholder meetings and many briefings within the Committee. I have looked at the science, the economics, and expected benefits of differing initiatives and proposals. And I have examined how well the world's only large-scale carbon rationing program that has been implemented so far--the Kyoto Protocol--has fared in achieving its objectives. I have required my staff to research the underlying science and read hundreds of studies, as well as major assessments of the science. I think it is fair to say that no other federal legislator has devoted more time and energy to this issue. There is no environmental issue that has become more politicized. Scientists have had their grant funding stripped, others have had their certifications threatened, and exaggerations have become commonplace. In fact, when a recent example of this was put on my web blog, there was so much concern that the 70,000 hits per hour crashed the Senate server. Unfortunately, this politicizing of the science has become so commonplace so that even the UN body created to provide the scientific justification of climate action has fallen prey to it. Just over a year ago, I addressed the Senate on how the UN Intergovernmental Panel on Climate Change had embraced highly questionable practices in its periodic assessments. In fact, the problems identified were so substantial, it led Lord Nigel Lawson--former Chancellor of the Exchequer and a Member of the House of Lords Committee that reviewed the IPCC--to state: ``I believe the IPCC process is so flawed, and the institution, it has to be said, so closed to reason, that it would be far better to thank it for the work it has done, close it down, and transfer all future international collaboration on the issue of climate change. . .'' This is an astonishing statement, but when you look at the way the IPCC has conducted business in its past assessments, it is also perfectly reasonable. In an attempt to help the IPCC avoid some of the mistakes of the past, I have outlined dozens of constructive recommendations of the minimum changes needed for the IPCC to restore its credibility, and I hope everyone will take the time to read them. Perhaps this politicizing of the science is why Claude Allegre--the former French Socialist Party Leader and member both the French and U.S. academies of science who once warned of catastrophic global warming--has now reversed himself and urges caution, stating, ``The cause of this climate change is unknown. Is it man? Is it nature?'' Of course, it is not only the science that has become politicized. A recent report by Sir Nicholas Stern that gained worldwide attention, known as the Stern Report, touted how it was much less costly to take draconian action now in order to avoid global warming impacts later. It was hailed as final proof that we must put the world on an energy diet, leading British Prime Minister Tony Blair to declare that this report represents ``the final word'' on why the world must act now. The only problem: within days, a growing chorus of economists-- regardless of their views on climate change--began pointing out its serious fundamental flaws. In fact, Richard Tol of Hamburg University last week said that: ``If a student of mine were to hand in this report as a Masters thesis . . . likely I would I would give him an ``F'' for fail. There is a whole range of very basic economics mistakes that somebody who claims to be a Professor of Economics simply should not make.'' The fact is that the Kyoto Protocol and proposals on the drawing board will be extremely expensive. The Kyoto Protocol would cost the average household $2,700 per year. And it would accomplish virtually nothing. Even if the alarmists were right, the Kyoto Protocol would only reduce temperatures by 0.07 Celsius by the year 2050. Bills introduced in the Senate are no different. The Bingaman proposal would only reduce temperatures by 0.008 Celsius. Of course, while the U.S. was on an energy diet, the rest of the world would be free to continually increase their emissions. Here are some simple facts: China does not plan to accept carbon caps, and will become the world's largest CO<INF>2</INF> emitter by 2009--two years from now. It is building more than one new coal plant every three days. India and Brazil are not far behind. If they are not part of any effort, then efforts to curb emissions are doomed to failure. <bullet> The Kyoto Protocol--which is the only program that has so far tested the cap and trade scheme--is broken. Japan will not meet its targets. Canada will not meet its targets. Of the EU-15, only Britain and Sweden will meet their targets. And even Britain is no success story--virtually all its emission reductions off of the 1990 baseline occurred before it signed the accord in 1997. Since 1998, its emissions have been rising. <bullet> The United States, even though it does not have a federal carbon cap, has been more successful than most of the nations on the globe in reducing its emissions relative to GDP. But that isn't enough for some, because our economy is growing. This has led one recent study to advocate that the best way for Americans to combat global warming is to reduce their living wage. In short, poorer is better. <bullet> Not one piece of legislation introduced this year meets the test laid out in the Byrd Hagel and Bingaman resolutions that U.S. efforts to reduce greenhouse gases should: (1) not harm of the economy; and (2) include developing countries. Even the Bingaman bill introduced this year fails the test. In regards to the 10 companies which announced their Climate Action Partnership last week, I would like to introduce into the record a commentary from the Wall Street Journal. This outlines the fact that each of the companies from Duke to GE, will individually profit from their plan. It is not an example of companies thinking of the quote ``common good'' as some of my colleagues have suggested, but more a case of climate profiteers. While I look forward to a vigorous debate this Congress I also look forward to vigorously pointing out the lack of scientific consensus, the real economic impact, and the effects of unilateral disarmament of our economy if we enact mandatory carbon reductions in the United States, while the rest of the world is failing to meet their goals. At this time I would like to make Senator Voinovich's statement part of the record. I would also like to insert all of my past climate speeches that I've given on the Senate floor in the record. [The referenced document follows on page 997.] Senator Inhofe. I also want to submit for the record the statement of Senator Olympia Snowe and also a statement by Senator Voinovich for the record. Senator Boxer. Without objection, so ordered. Senator Inhofe. Thank you, Madam Chair. [The referenced documents follow:] Statement of Hon. Olympia J. Snowe, U.S. Senator from the State of Maine Good afternoon, Madam Chairman and Members of the Committee. Holding this hearing on ``Senator's Perspectives on Global Warming'' today is admirable on your part, Madam Chairman, as you and others of us in the U.S. Senate care deeply about the issue of global warming and want to take action. I am testifying today because the issue of global warming is no longer seriously open to skepticism. The evidence is irrefutable and the cost of inaction incalculable. It is no longer a question of science--it is now a question of political will. Surely, in the numerous provisions of the various introduced climate bills we can find the keys to consensus and hopefully this hearing will help guide us in that direction. We should be able to find the most realistic and attainable path that averts negative impacts on our economy and strengthens our national security by decreasing our thirst for imported fossil fuels from the most volatile areas of the globe. I believe we can find the right course at the right cost. The U.S. comprises only four percent of the world's population yet emits 20 percent of the world's carbon dioxide, it's time our response to this crisis become proportional to our nation's contribution to the problem. Because of the lack of any movement on the part of the United States, two years ago, I accepted the co-chairmanship of the International Climate Change Taskforce, or ICCT, which consists of a group of respected scientists, business leaders, and elected officials from eight industrialized and developing nations. Our Taskforce report, ``Meeting the Climate Challenge'', published in January of 2005, was the culmination of close to a year's work across oceans and partisan lines--each of you has been given a copy. As you can see, the Report recommends ways to involve the world's largest economies in the effort, including the U.S. and major developing nations, to ensure that dangerous climate change can be avoided. In truth, the U.S. has given the major developing nations like China and India a ``get out of jail free'' card. The U.S. position has been to say that these emerging nations need to decrease their greenhouse gas emissions or we won't either. It is ludicrous to think we can expect large emerging nations to move toward reducing their emissions without any national action on our part. Only after the U.S. puts in place a mandatory carbon cap and trade system can we expect to sit at the international table and ask the poorer developing countries to take actions also. China is putting up one coal-fired power plant a week. China will surpass the U.S. as the largest emitter of CO<INF>2</INF> in the world around 2010. Yet, to its credit, China has more stringent CAFE standards in place than the U.S. The message today is that we in the Senate can take the ICCT recommendations and incorporate those applicable into our domestic global warming legislation, in particular, the Taskforce's first recommendation that defines a goal. If you don't know where you want to end up, there is no reason to start the journey. So, to begin our journey, to set our goal, the first ICCT recommendation reads, ``A long-term objective be established to prevent global average temperature from rising more than 2 degrees Centigrade (or 3.6 degrees Fahrenheit) above the pre-industrial level to limit the extent and magnitude of climate-change impacts.'' This is the foundation of the bill Senator Kerry and I introduced last year and will reintroduce this week. A goal such as this one is also an integral part of the Lieberman-McCain Climate Stewardship and Innovation Act of 2007, for which I am also a cosponsor. The reasoning behind this goal is solid; the Taskforce came up with the 3.6 degree Fahrenheit goal as, beyond this increase, scientific evidence suggests that there is a threshold of temperature increase above which the extent and magnitude of the impacts of climate change increases significantly--a tipping point that threatens human societies and ecosystems. For example, there will be substantial agricultural loses, billions more people will be at risk of water shortages, and there will be widespread adverse health impacts, floods, and droughts. Also, beyond that threshold, scientists predict the likely loss of 95 percent of coral reefs and irreversible damage to forest areas, including the Amazon Rain Forest. Above the threshold, irreversible, abrupt climate change may increase, such as the loss of the Antarctic and Greenland ice sheets, the potential shutdown of the the North Atlantic conveyor belt, and transforming the natural world from a net carbon sink--one that takes up CO<INF>2</INF>--to a net carbon source-- one that releases CO<INF>2</INF>. We need to take medium-term action and set goals up to 2050 for reductions of CO<INF>2</INF> emissions in order to bring concentrations back down to levels that are consistent with a high probability of limiting warming to 3.6 degrees Fahrenheit by the end of the century. Such an approach would enable long-term options to be reassessed as new knowledge becomes available. In order to meet the 3.6 degree goal, the Taskforce recommended a global framework that brings all countries into action on climate change at the international level over the coming decades for steps leading to limiting their greenhouse gases through post-2012 emissions reductions commitments. This international framework would build on the UN Framework Convention on Climate Change (UNFCCC)--which the U.S. Senate ratified in 1992--and the Kyoto Protocol, as honored by most of the developed world. Madam Chair, we need to seize on a bold new program like President Kennedy did in sending a man to the moon, when, on September 12, 1962, he stated, ``We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win.'' On July 21, 1969--less than seven years later--Astronaut Neil Armstrong walked on the moon. This is how we should be addressing global warming. This Friday, the Intergovernmental Panel on Climate Change, composed of 2,500 scientists from more than 130 countries, will release a stunning six year report on the current science of climate change. The IPCC will tell us that a rise in temperatures of 3.6 to 8.1 degrees Fahrenheit by the end of this century is likely. The IPCC will say it is at least 90 percent sure than human activities, led by the burning of fossil fuels, are to blame for global warming over the past 50 years. IPCC Chair, R.K. Pachauri--who was also a science advisor to our Taskforce--stated, ``I hope this report will shock people, governments into taking more serious action as you really can't get a more authentic and a more credible piece of scientific work. `` He went on to say, ``There are a lot of signs and evidence in this report which clearly establish not only the fact that climate change is taking place, but also that it really is human activity that is influencing that change.'' Arctic glaciers and polar ice caps millions of years old are melting. Sea levels are rising globally. Our own federal agency, NOAA, reporting that 2006 was the warmest year since regular temperature records began in 1895 and the past nine years have been among the 25 warmest years on record for the contiguous U.S. CO<INF>2</INF> releases today will remain in the atmosphere for at least 100 years--and concentrations will rise in the coming decades. Just think-- CO<INF>2</INF> emissions from Henry Ford's very first car are still in the atmosphere. Clearly, we can't afford to wait any longer. This past Sunday, the Boston Globe ran a very disturbing article on how the climate is altering the regional character and economy of New England. While admittedly only a snapshot, many scientists say that for a growing number of reasons, they are confident that New England's century-long heat rise is significantly related to global warming. They have noted that temperatures began accelerating around 1970, the same time overall global temperatures rose as well, and that the temperature rise is lasting longer than during previous warm stretches in the last century that we attributed to natural variability. Madam Chair, weather is an integral part of the economy in my State of Maine and others as well. It is time to curb the warming. We cannot wait any longer--we need to act now. There are other important provisions I believe should be included in a climate bill, such as research on abrupt climate change and ocean acidification, but those are under the jurisdiction of other committees. Today I hope I have left you with a compelling reason to establish a goal based in science in the hopes you will include such a goal in any climate legislation you consider in your committee. Thank you. __________ Statement of Hon. George V. Voinovich, U.S. Senator from the State of Ohio Chairwoman Boxer, I want to thank you for holding this hearing. As the former Chairman of the Subcommittee on Clean Air, Climate Change, and Nuclear Safety, I have had a keen interest in this issue and look forward to the debate I know the Committee and Senate will have on this very important matter. Simply mentioning this issue can spark a heated discussion about the future of our planet and actions that should or should not be taken. The wide disparity of views is showcased on the Environment and Public Works Committee where members call climate change both the ``greatest hoax'' and our ``greatest problem.'' While some may push for no action, several of my colleagues have put forth proposals to impose significant restrictions on the emissions of greenhouse gases. Unfortunately, these proposals would be devastating to our country because they ignore our economic and energy needs. These proposals would have a significantly negative impact on our nation's economy, cause extensive job loss, and raise electricity and natural gas prices. Higher costs of natural gas would be overwhelming to our country. Over the past six years, natural gas prices have increased over 300 percent. We have the highest natural gas prices in the world, impacting families who depend on it to heat their homes and businesses that use it to make their products. Due in large part to these increased prices, the U.S. has lost more than 3.1 million manufacturing jobs since 2000 and my State of Ohio has lost nearly 200,000. Jack Gerard with the American Chemistry Council testified before my Subcommittee on February 9, 2006: ``In a few short years, the U.S. chemical industry has lost more than $50 billion in business to overseas operations and more than 100,000 good-paying jobs in our industry have disappeared. Put another way, the chemical industry went from posting the highest trade surplus in the nation's history in the late 1990s to becoming a net importer by 2002.'' Concerns about natural gas prices led the Senate to take two major actions last year to address this problem. First, we made available an additional $1 billion for the Low Income Housing Energy Assistance Program--or LIHEAP. Since 1999, funding for this program to provide assistance to low-income households to help with their heating or cooling costs has increased by about 70 percent. Second, Congress passed the Gulf of Mexico Energy Security bill to open more than 8.3 million acres on the Outer Continental Shelf for oil and gas leasing. Passage of this bill has the potential to develop an estimated 5.8 trillion cubic feet of natural gas--enough to heat and cool all five million Ohio homes for over 15 years. If these climate change proposals were passed, we would eliminate any progress associated with these two actions. EIA predicts that coal use would decline sharply and more natural gas would be used to generate electricity. This would further increase the demand for natural gas and use up any additional resources that we expect to extract from the Gulf of Mexico. As EIA predicts, the bill would drive up the price of natural gas even further. The impact would be astronomical costs to the poor, the elderly, and the middle class in this country--and of course, there would be an even greater need for increased LIHEAP funding. This is the problem with our nation's tail wagging the dog environmental policy. For far too long, we have failed to consider the impact our environmental policies have on our energy and economic needs. Part of the reason is that we have many groups that have only one concern--the environment. As the father of the Ohio EPA with a strong record on clean air and a lifelong proponent of Great Lakes restoration, I am an environmentalist that must balance many different needs. The United States is in the midst of an energy crisis. It is time for a `Second Declaration of Independence'--independence from foreign sources of energy--and for our nation to take real action toward stemming our exorbitantly high oil and natural gas prices. Instead of considering them separately, we must harmonize our energy, environment, and economic needs. This is an absolute must as we consider any additional actions to address climate change. Advocates of climate change proposals attack the U.S. for not doing anything--but this is simply not true. I am going to address two very important questions today: (1) what are we doing; and (2) how are we doing? In 2002, President Bush established a national goal to reduce greenhouse gas intensity (emissions per unit of GDP) of the U.S. economy by 18 percent by 2012. To meet this goal, the United States is spending more than any other nation and has created many different programs. The federal government has devoted nearly $29 billion since 2001 to climate science, technology, international assistance, and incentive programs, and the President's Fiscal Year 2007 budget calls for $6.5 billion for climate-related activities. The Administration has also implemented more than 60 federal programs, and I will summarize several of them: <bullet> Climate Leaders is an EPA partnership encouraging individual companies to develop long-term, comprehensive climate change strategies. Over 100 corporations are participating in the program. <bullet> Climate VISION is a Department of Energy public- partnership program involving fourteen major industrial sectors and the membership of the Business Roundtable, who have committed to work with four cabinet agencies to reduce greenhouse gas emissions in the next decade. <bullet> The Climate Change Technology Program is a multi-agency program that increases the development and use of key technologies aimed at reducing GHG emissions. The FY2007 budget included almost $3 billion for the program. <bullet> The Climate Change Science Program is a multi-agency program led by the Department of Commerce, and the FY2007 budget included $1.715 billion. <bullet> The SmartWay Transportation Partnership is a voluntary partnership between various freight industry sectors and EPA designed to increase energy efficiency and reduce greenhouse gases and air pollution. <bullet> For the first time, the Department of Agriculture is providing targeted incentives through its conservation programs to increase carbon sequestration in soils and trees and to reduce methane and nitrous oxide emissions from crop and animal agricultural systems. While these are examples of domestic programs, there are numerous international actions as well. In fact, the United States has established 15 climate partnerships since 2001 with countries and regional organizations that together account for almost 80 percent of global greenhouse gas emissions. <bullet> The Asia-Pacific Partnership for Clean Development and Climate involves six nations--Australia, China, India, Japan, South Korea, and the United States. It is designed to promote the development and deployment of cleaner energy technologies to meet pollution reduction, energy security, and climate change concerns. This Partnership is unprecedented given that these developed and developing nations collectively represent about half of the world's manmade carbon dioxide emissions. <bullet> The Methane to Markets Partnership focuses on advancing cost-effective, near-term methane recovery and use as a clean energy source from coal beds, natural gas facilities, landfills, and agricultural waste management systems. This Partnership, which involves 18 countries, is very significant because methane is a greenhouse gas that is more than 20 times more potent than carbon dioxide. <bullet> The United States worked with the United Kingdom and other G-8 partners to launch the 2005 Gleneagles Plan of Action, which contains over fifty actions to address climate change, development, energy security, energy access, and air pollution. Additionally, President Bush and European Union leaders will enter into a High Level Dialogue on Climate Change, Clean Energy and Sustainable Development this fall. <bullet> The United States launched the International Partnership for the Hydrogen Economy as a vehicle to organize, co-ordinate, and leverage multinational hydrogen research programs that advance the transition to a global hydrogen economy. In addition to all of these domestic and international actions, Congress also acted comprehensively to address climate change with enactment of the Energy Policy Act of 2005. <bullet> The energy bill provides for about $5 billion in tax credits and incentives over 5 years that will help to unleash substantial new capital investment in cleaner, more efficient technologies. <bullet> Research and development funding is provided for long-term zero or low emitting greenhouse gas technologies, including fuel cells, hydrogen fuels, and coal gasification. <bullet> It includes extensive provisions to increase energy efficiency and conservation. I also worked to include three bills that Environment and Public Works Committee Chairman Jim Inhofe and I authored to provide for the safe and secure growth of nuclear power. These initiatives combined with the loan guarantee and production tax credit provisions in the energy bill have provided a foundation for the industry to pursue new nuclear power plants. The Nuclear Regulatory Commission currently expects to receive license applications for more than 30 new nuclear reactors in the next two to three years. Due to the energy bill, our country is experiencing a nuclear renaissance--which means we will hopefully be utilizing more on this emissions-free power, and relying less on foreign source of energy. Even though these provisions all address climate change, I joined Senators Chuck Hagel and Mark Pryor to successfully include an amendment by a vote of 66 to 29 to promote greenhouse gas reducing technologies domestically and abroad. This amendment authorized the very important Asia-Pacific Partnership that I mentioned earlier. Last year, we led a letter that a total of 21 senators signed in support of the President's request of $52 million for this important initiative. Clearly, we are doing a lot--but how are we doing? Are all of these programs and funds having an impact? The answer is a resounding yes, which I will show through two main points. First, the United States has engaged developing countries such as China and India. In 2005, I visited China where it became clear that they must be involved in any effort due to the large number of coal plants that they are building. According to a June 11, 2006 New York Times article entitled ``Pollution from Chinese Coal Casts a Global Shadow'': ``The increase in global-warming gases from China's coal use will probably exceed that for all industrialized countries combined over the next 25 years, surpassing by five times the reduction in such emissions that the Kyoto Protocol seeks . . . Already, China uses more coal than the United States, the European Union, and Japan combined . . . Every week to 10 days, another coal-fired power plant opens somewhere in China that is big enough to serve all the households in Dallas or San Diego . . . To make matters worse, India is right behind China in stepping up its construction of coal-fired power plants--and has a population expected to outstrip China's by 2030.'' According to EIA's International Energy Outlook 2006, Organization of Economic Cooperation and Development (OECD) countries accounted for 53 percent of world carbon dioxide emissions in 2003 with non-OECD countries, which include China and India, making up the remaining 47 percent. By 2030, non-OECD countries will account for 60 percent of world carbon dioxide emissions. These countries will also account for 77 percent of the projected increase in global emissions from 2002 to 2030. My staff attended the 11th Conference of the Parties to the United Nations Framework Convention on Climate Change in Montreal at the end of 2005. The primary focus of the two week meeting was post-2012, since the Kyoto Protocol's commitment period ends at that time. My staff met with the representatives from the Group of 77, which is made up of the developing nations. They strongly stated that all countries including the U.S. should commit to the Kyoto Protocol and then another round of reductions before they would even begin any discussions about mandatory reductions for themselves. Through the Asia-Pacific Partnership, the United States has been able to finally bring China and India to the table on this important issue. Without their involvement, any efforts by countries to reduce greenhouse gases will be completely offset by emissions increases in developing countries. Now to my second point, the United States is meeting its intensity goal and is doing as well or better than other nations. To meet our greenhouse gas intensity reduction target of 18 percent by 2012, there needs to be an average annual rate of improvement of about 1.96 percent. EIA preliminarily estimates that carbon dioxide emissions intensity improved in the U.S. by 3.3 percent in 2005. This means that we are on target to meet our goal and may even exceed it. The overall progress of the United States compares favorably with other countries--even those that have signed the Kyoto Protocol. Based on data reported to the UN Framework Convention on Climate Change, from 2000 to 2004, the major developed economies of the world are at about the same place as the U.S. in terms of actual greenhouse gas emissions. Emissions are increasing in some countries and decreasing in others-- but no country is decreasing its emissions massively. In fact, the U.S. has seen its actual emissions increase at a rate of 1.3 percent compared to 2.1 percent for the European Union. In summary, I think the United States is unfairly criticized on this issue of climate change. In reality, we are doing more than any other country in terms of our overall effort. Since 2001, our nation has taken action to address climate change by spending almost $30 billion, implementing more than 60 federal programs, establishing 15 international partnerships, and enacting an Energy bill. The great news is that this effort is working. We have brought developing countries to the table and are doing as well or better than other nations that have committed to very costly mandatory programs. Chairwoman Boxer, I want to thank you for holding this hearing, and I look forward to working with you and other members of this Committee to find the right balance. Senator Boxer. Senator, thank you very much for your statement. Since today is the day we are taking the temperature of members of the Senate, I will put you down as skeptical on global warming. [Laughter.] Senator Inhofe. Undecided. How is that? [Laughter.] Senator Boxer. Leaning no. Well, Senator, thank you. I know you will miss us throughout the day, but any time that you can come back, please do. If we don't get a quorum here this morning because of people coming and going, we will do something off the floor together to pass the budget, if that is all right with you. Thank you, Senator. Needless to say, we do have strong disagreements. I disagree with some of the charts up there, but the point is, today is not the day for give and take. Today is a day for us to affirmatively say how we feel about the topic. I think that Senator Inhofe did do that. Now, I am going to take a chance and lay out what I think is the case. My colleagues, I believe we must act now to address global warming. I believe it is our responsibility. I believe it is our duty. I think an issue like this comes along very infrequently, an issue as important. I believe it is our challenge. We did not choose to be here now, but we are. Fate has thrown us together on this committee now. I am very hopeful we will step up and meet this challenge. I do believe that a consensus has been built among scientists, and I also think a consensus is being built among the American people. A recent Time Magazine/ABC News poll found that 88 percent of our people say that global warming threatens future generations. We are at an historic moment, and I believe the tide is turning. A real consensus is coming. It is coming together around this issue in a way that has never happened before. Scientists, the public, even the Bush administration agree, global warming is real and humans are making a serious contribution. I want us to take a look at what a growing chorus of voices is saying across the Country about global warming. For that, I am going to use a series of charts, if we could do that. [The referenced document follows on page 127.] The National Academies of Sciences from the United States, Japan, Russia, United Kingdom, France, Germany, Italy, Canada, China, India and Brazil all agree, ``There is now strong evidence that significant global warming is occurring. It is likely that most of the warming in recent decades can be attributed to human activities. We urge all nations to take prompt action to reduce the causes of climate change,'' sciences, 11 academies, 2005. Next chart? U.S. Climate Action Partnership is the one I have, American business. American businesses call for action on global warming, and they endorse goals that match the toughest proposal. I would say to my committee, this was an historic moment early last week when ALCOA, British Petroleum, Caterpillar, Duke, and DuPont got together with Environmental Defense, Florida Power and Light, General Electric, National Resources Defense Council, Pew Center on Global Climate Change, Pacific Gas and Electric Corporation, PNM Resources, and World Resources Institute. They say, we, the members of the U.S. Climate Action Partnership, have joined together to recommend the prompt enactment of national legislation in the United States to slow, stop and reverse the growth of greenhouse gas emissions over the shortest period of time reasonably achievable. I think that is a breakthrough in and of itself. The next chart, an urgent call to action by scientists and evangelicals, who have united. The evangelicals, we agree that our home, the Earth, which comes to us at the inexpressibly beautiful and mysterious gift that sustains our very lives, is seriously imperiled by human behavior. The harm is seen throughout the natural world, including a cascading set of problems such as climate change. This is another breakthrough. The next chart? The reason I am saying this is, I am trying to show the consensus here. I want us to be part of that State and local actions to address global warming. Thirteen States and 376 mayors from all 50 States recognize the threat of global warming and have taken steps to address the threat. I have copies of all these charts that I will give to colleagues. I will go to the next chart; a sample of editorial boards from across the Nation. We have several of these. I am not going to read them all. I am just going to tell colleagues that we have them. These are from, yes, California, New Orleans, Idaho, the Columbus Dispatch, the Tennessean, the Atlanta Journal-Constitution. They say while the political debate in the United States over global warming spins in mindless circles, scientific evidence that manmade gases are dangerously leaving the planet keep piling up. Senator Lautenberg. Madam Chairman? Senator Boxer. Yes? Senator Lautenberg. Was one of those an Ohio newspaper? Senator Boxer. Yes. Senator Lautenberg. Thank you. Senator Boxer. And then Newport News Daily Press, Anniston Star, Alabama. Idaho, did we see that already? OK, thank you. There is never enough time to do everything I want to do, but that gives you a sense of what we have done. Oil companies, on the need for action on global warming, yesterday the head of Shell called me and discussed this with me. Here he is quoted, ``For Shell, the debate on climate change is over. It is time to work on solutions. A national approach to greenhouse gas management is important to the future. Such an approach requires a regulatory framework that enables markets to work for both supply and demand side needs. It would be very challenging to have different State by State regulatory requirements.'' So this gives you the reason why we need to move forward, because States and localities are doing this. U.S. Defense Department sponsored a report. In cutting to the chase, they say disruption and conflict will be endemic features of life if we don't reverse this. President Bush in his State of the Union, technological breakthroughs will help us be better stewards of the environment. They will help us to confront the serious challenge of global climate change. That was the State of the Union we all heard. Interior Secretary Kempthorne, when asked about a proposal to list polar bears as threatened under the Endangered Species Act, and he says, ``We are concerned. The polar bears' habitat may literally be melting. The Administration treats climate change very seriously and recognizes the role of greenhouse gases in climate change.'' There is more. Tony Blair, ``We know it is happening. We know the consequences for the planet. We now know urgent action will prevent catastrophe, and investment in preventing it will pay us back many times over. We will not be able to explain ourselves to future generations if we fail.'' Tony Blair. I think that covers it, but again, I have all these for Members if you wish. We know what is happening. The science is clear. The planet is getting warmer because humans are releasing too much carbon pollution into the atmosphere. If we fail to take action on global warming, we can expect future catastrophic impacts like rising sea levels, more extreme weather events of all kinds, damage to coral reefs and fisheries, and negative impacts on food production and water supplies. We need to act soon before we reach a tipping point, when irreversible changes to the world we know may occur. Now, we know what sectors in our economy emit these greenhouse gases. That is not a secret. Thirty percent of the emissions come from the mobile sources, transportation. Forty percent of the emissions come from powerplants. Industry, commercial and other sources are the remaining 30 percent. We know what we have to do in order to avoid the worst effects of climate change. It is important to stabilize emissions and hold temperature rise to less than 2 <SUP>+</SUP>F from where we are now. In short, we need to cap and eventually significantly reduce our greenhouse gas emissions. Now, I am very proud of my home State of California, which enacted AB 32, an economy-wide global warming bill. This bipartisan law, signed into law by a Republican and worked on with a Democratic legislature, sets a mandatory cap on carbon pollution, including a 25 percent reduction from projected levels by 2020. The Governor also signed an executive order, a goal of an 80 percent reduction in greenhouse gases by 2050 from 1990 levels. A consensus again is developing that we must take action at the Federal level now. On June 22, 2005, a majority of the Republican-controlled Senate, in a 53-44 vote, supported action on climate change through the Bingaman Resolution. The resolution was a sense of the Senate resolution that supported mandatory emission limits. There is much to gain in our efforts to reduce greenhouse gas emissions. For example, increasing our energy efficiency will help us save money, make us more energy independent, help cleanup our air, and reduce carbon pollution. I know some of you do have concerns about that. In an effort to make the Federal Government a model, I will be introducing legislation to accelerate the effort to make thousands of Federal Government buildings managed by the GSA models of energy efficiency, starting with lighting systems. The GSA owns or leases over 340 million square feet of space in nearly 9,000 buildings located in every State. GSA calls itself the largest property manager in the United States. I am working directly with the Bush administration on this effort to see if we can find common ground and achieve the goal of making these businesses a model of efficiency. Similarly, energy efficiency standards for appliances can save lots of energy and save money for consumers. So the point I am making here, my colleagues, is when we do these things, it is good for the American pocketbook. Using renewable fuels fights global warming, and also will reduce our dependence on oil, help cleanup the air. I have introduced legislation that would support the development of cellulosic ethanol, which can be made from agricultural waste, grass, and many other plants. Planting trees and other plants which absorb carbon can create carbon sinks. The ocean is known as a carbon sink. Trees and greenery are known as carbon sinks. This type of carbon sequestration should be considered. There are many benefits to fighting global warming. As we meet this challenge, new technologies will be invented and exported. Jobs will be created, and these new technologies will be needed by the world. I remember when I first got involved in air pollution control, it was when I was a county supervisor and I belonged to the Air Pollution Control District in the Bay Area of San Francisco. The biggest argument against doing anything is that it would cost jobs. At the end of the day, it created jobs. I think the great genius of American entrepreneurship will rise to this challenge. It is already starting. When we succeed in the battle against global warming, the oceans also will be healthier. Right now, the oceans are showing strains from absorbing too much CO<INF>2</INF>. Again, our oceans have acted like a sink for carbon, and scientists are warning us about trouble with coral reef die-offs and potential long-term impact on fisheries. There are many approaches to the issue of global warming. Several of our colleagues have tackled the issues in very positive ways. Some of them are here today, Senator Carper, Senator Alexander, Senator Lieberman, who will be back, and others. Some take an economy-wide approach, and I mean to say Senator Sanders as well, others an industry-specific approach. So whether it is economy-wide or industry-specific, all of these bills are making a great contribution. I know it is no secret that I called the Sanders-Boxer bill, originally written by our dear friend and colleague Jim Jeffords, the ``gold standard'' bill, because it is comprehensive and it takes bold action which I personally believe is warranted by the facts. My goal is, of course, to get us as close as we can to that gold standard, which is reflected in the California program. But I am a realist, and I know only by working together can we move forward with legislation. I pledge to you today, my colleagues on all sides of the aisle, that all Senators will have a seat at the table as we move toward action. Ladies and gentlemen, I am an optimist. I believe in our ability to act and I am counting on this committee, which has a distinguished history, to move us forward. After the Cuyahoga River caught fire in Ohio in 1969, and many of our lakes and rivers were open sewers, this committee responded with a comprehensive remedy, enacting the Clean Water Act in 1972. Today, we look with pride on the improvements in water quality. When the air was so dirty you could see it, and there were few tools to address it, our committee responded with the Clean Air Act in 1970. Our work is not done, but the air is much cleaner and safer now. When contaminated tap water was causing widespread waterborne disease and exposing people to cancer-causing chemicals, our committee stepped up and enacted the Safe Drinking Water Act in 1974. Now, we must face the challenge of global warming. I believe it is one of the greatest challenges of our generation. It is once again our turn to stand up and lead this great Country to a bright future that will energize our people here at home and across the world. This is a challenge. I believe we can and I believe we will meet, because I believe so much in the quality of the people on this committee. Now, it is my pleasure to call on Senator Isakson. OPENING STATEMENT OF HON. JOHNNY ISAKSON, U.S. SENATOR FROM THE STATE OF GEORGIA Senator Isakson. Thank you, Madam Chairman. I will not take all 10 minutes, but I appreciate the opportunity to address the subject. I appreciate your giving us a chance to express ourselves. I come from the belief that there are two great motivators in life. One is fear and the other is reward. I don't think there is any question that there are things going on that we can respond to, and I don't think there is any question that in the end it is us and it is American industry, business and enterprise that can be the solution, not necessarily just the whipping boy. First of all, the Chairman took away one of my examples, the Cuyahoga River, but there are many other examples we can point to where Congress pointed out areas where we could improve, and we improved. But in each and every one of those areas, it was the innovation, many times in the private sector, that brought about that improvement. For example, recycling. The biggest problem we had in solid waste disposal 20 years ago was tires, newsprint, polyethylene, all these things that went in and never went away. They never naturally dissolved. So we created a use in the Country. Now we grind up tires and pave roads and sports fields with them. In fact, if you watch any professional football game played today on an artificial tuft, ground tires are the little black things that you see bouncing up in the air when they slide, to help cushion those particular athletes. Cigarette smoking. When the facts became clear and we in the Congress started making people aware of the dangers of cigarette smoking, not only did it create the beginning of a reduction in terms of people changing their habits, but more importantly it created opportunity in industry. Look at what the pharmaceutical industry has done in terms of smoking cessation. They have created product after product and innovation after innovation that help people do it. Why, in the end? I think it is the fact that facts were brought forward and people made conscious decisions. There are three things I want to focus on first of all, in terms of my interests. The first is conservation. Conservation is an important thing to do, but if you conserve every way you can on hydrocarbons, you can make about a 6 percent difference. But should we be doing that? Absolutely. It is a contribution. The second is innovation. Innovation is particularly important, and it is something this Congress ought to be incentivizing. Southern Company in Georgia, by way of example, is doing a coal gasification demonstration in Orlando, FL right now. That is one of the things we ought to be motivating, bragging about, and elevating, as somebody in the industry that is actually looking for a way to innovate, use something, coal, that burned as we do, we don't do anymore, but turn it into a gas that is cleaner, more efficient and it is better for the atmosphere. And motivation. Tax policy is good policy when it drives good decisions. It has been proven over and over again. I am a perfect example of that. Last year, I bought a hybrid car. I bought it for two reasons. One, I thought it was a good thing to do and I like 36 miles to the gallon. The other is, I am doing my taxes right now, and I just realized a Ford Escape hybrid has a $2,100 tax credit for a purchase of that vehicle. I commend Ford for doing it. I commend this Congress for creating the motivation through the tax, and we are now changing habits. If you look at 2008, what is happening in terms of the automobile industry both in the foreign industry and the domestic industry, things are changing in terms of what they are producing, not because we beat up on them, but because we made facts available, because we motivated people, and because people changed their attitudes and industry responded to it because of the motivation of why people are in business to start with. I think by disseminating facts, motivating the private sector, and not running off on political tangents to beat up on one side to dissatisfy another, we can make a huge dent in what is going on. But if we each decide to retrench and to lob barbs back and forth, without conscientious effort to cause good changes in people's practices, good innovation in business, then we will really not do what I believe the Chairman and the rest of the members of this committee want to do. Motivation, conservation, and innovation. I believe reward is the great motivator in human nature. Fear never accomplished anything. We should do everything we can to disseminate all of the facts around global warming, not just the ones that might tailor and be fitted to our argument. We must look at an overall landscape that motivates people to change where change is good for them and good for the environment. Remember always that in the end in our system and in our Country, what has made us great is the free enterprise system, innovation and competition. Don't stifle it through a punishing atmosphere that is all political, without the practical effect of making a change. Madam Chairman, I thank you very much for the opportunity to give my statement. Senator Boxer. Senator, I found your statement to be very important. Technology, innovation, incentives, and conservation are all part of what we will be doing. I really will be working with you on those areas. Thank you so much. Senator Carper. Senator Carper. Thank you, Madam Chairman. I have a statement I would like to submit for the record. Senator Boxer. Without objection. OPENING STATEMENT OF HON. THOMAS R. CARPER, U.S. SENATOR FROM THE STATE OF DELAWARE Senator Carper. I think I would choose instead of giving that prepared statement, just to talk with my colleagues from my heart. I want to commend you for inviting us all to be here today. We sort of jokingly call this session ``open mic night,'' or actually ``open mic day.'' All 100 Senators have the opportunity to come in and talk about what I think is one of the gravest threats, but really great opportunities that we face as a Nation. There is an old Chinese saying that in crisis lies opportunity. I believe we do face a crisis, but I believe that crisis also includes with it significant opportunity. The President is on the road today. He is in Illinois. He is visiting a big company there called Caterpillar, to tout the strength of our economy. Last Wednesday, he was in my State, in Delaware. He visited the DuPont Company. He came to Delaware to the DuPont Company to our experimental station in order to put a spotlight on the great work that is being done by several thousand of the world's smartest scientists, to help reduce our reliance on foreign oil, on petroleum products like cellulosic ethanol and corn stalks, biobutanol, which DuPont is preparing to make out of sugar beets, a better alternative than ethanol, as it turns out. He wanted to spotlight the great work we are doing there on fuel cells and other technologies. The President doesn't know this, but as it turns out, the CEO of the company he is visiting today and the CEO of the DuPont Company that he visited last Wednesday, along with a number of their colleagues, banded together last Monday and they released a call for action. This is not a lot of harebrained, crazy treehuggers like some of us. These are some of our top business leaders in the Country, who promulgated this call for action. I am not going to read it all, but there is part of it I want to share with us. The call for action starts off like this, ``We know enough to act on climate change,'' that is their basic premise. ``The challenge is significant, that the United States cannot grow and prosper in a greenhouse gas-constrained world.'' They go on to say, ``In our view, the climate change challenge will create more economic opportunities than risks for the U.S. economy.'' Finally, they say, ``We need a mandatory, but flexible climate program.'' They don't just stop there either. They go on and they lay out a bunch of design principles. I won't go through all those. They share with us their recommendations. The back of the publication, the copy which I am sharing with all of my colleagues on this committee, maybe all my colleagues in the Senate, on the back of the publication, it lists the companies that are involved in this. I just want to mention them: ALCOA, BP, Caterpillar, Duke Energy, DuPont, GE, Florida Power and Light, PG&E, and an outfit called PNM, which is a Power New Mexico, New Mexico Power. There are a couple of environmental groups, Environmental Defense, NRDC, World Resources Institute, an outfit called the Pew Center, and they banded together, not just to preach a sermon, but really to show us a sermon. You know the old saying, I would rather see a sermon than hear one. These folks are prepared to show us the sermon. By their own actions, reducing their own greenhouse emissions, and calling on the rest of us not to just watch this parade that is being formed, and there is a parade being formed, a parade of consensus around greenhouse gases and what to do about it. My friends, I will just tell you this. We can watch the parade, we can sort of join the parade, or we can lead the parade. I said to the President last Wednesday when we were riding back on Air Force One to Andrews Air Force Base from my State. I said, ``Mr. President, we have an opportunity to lead here. You need to lead.'' Frankly, we need to join him. Senator Alexander and I and others on this committee and in the Senate have been working for a number of years on an approach to greenhouse gas that is not economy-wide, but something that focuses just on utilities. Our Chairman has just said that utilities are responsible for about 40 percent of the CO<INF>2</INF> emissions that we are seeing produced in this Country. Our view is, let's get started on that. Let's get started somewhere. I respect those who have a view of sort of a climate-wide approach, and economy-wide approach on CO<INF>2</INF>. That is fine. I have joined Senators Lieberman and McCain in their proposal in past years. I will do it again this year. I regard their proposal and other comprehensive economy-wide proposals as the Interstate, the freeway. Senator Alexander and I have talked about this time and again. There needs to be an on-ramp onto the freeway. We need to get started. I believe the legislation that we will be introducing next week is that on- ramp and helps us to get started. The question that is before us is, is it possible to come up with a plan not just CO<INF>2</INF> emissions, but sulfur dioxide emissions, nitrous oxide emissions, mercury emissions from utility plants, in a way that doesn't cost consumers an arm and a leg, and in a way that doesn't put our economy at disadvantage with the rest of the world, that doesn't cause our economy to founder? Is it possible to do this in a way that doesn't encourage the movement of electricity production from coal to more natural gas, and further spikes in natural gas prices? Is it possible to do this in a way that incentivizes clean coal technology, that incentivizes wind powers and other renewable forms of energy, that incentivizes for some of us a new look at nuclear generation, electricity generation by nuclear plants? We think that it does. We believe we have a proposal that meets that test. I like to use the analogy with respect to CO<INF>2</INF> emissions when I talk about Kyoto. The Jeffords proposal was very well intended, and I respect Jim Jeffords. I know we all do. In the proposal, some of us around this table, I know, were cosponsors of the legislation he offered and will cosponsor the successor. I will not, but I certainly respect him and the views he holds. But Kyoto, in the approach he laid out, he called for getting CO<INF>2</INF> emissions by 2010 in this Country, back to where they were in 1990. Now, I am an optimist, but I am not that optimistic. I think the proposal we need to follow basically looks more like this. I use the car analogy. Some of you have heard me give this before. Let me give it again. Imagine you are in a car going down the highway at 55 miles an hour. You put the car in reverse. That is really the sum and substance of what was being proposed in the proposal I just mentioned. I think there is a smarter approach. The smarter approach is this, slow down the car, slow down the growth of CO<INF>2</INF> emissions; stop the car; stop the growth of CO<INF>2</INF> emissions; put the car in reverse; reduce CO<INF>2</INF> emissions. That makes a whole lot more sense to me, and I suspect makes a whole lot more sense to you. It sure makes a lot more sense to the folks who banded together and presented us last week with what I think is a roadmap to walk away from what could be a tipping point. This is a tipping point in itself. This is a tipping point. This is a tipping point in the debate on how we can deal with this challenge, and do so in a way that helps our economy, strengthens our economy, and by the same token does something good for our planet. I will close with this. Just about everybody here on this committee has children. Some of us have grandchildren. We talk with our kids from time to time about the challenges that we face, the work that we do. I just talked with my son. My younger son, Ben, is a junior in high school, and I was telling him, Madam Chairman, about open mic night, open mic day, and he was kind of amused by that. But I told him what we were doing. I didn't say this to him, but I thought it. I just share this with all of you, with all of us. For those of us who have children and grandchildren, they know what we do. Sometimes they think what we do is important. Sometimes they are not so sure. This is important. If all the science we have been hearing for not just a couple of weeks or a couple of months or a couple of years, but a couple of decades, if all the science is actually true, we face a grave threat on this planet of ours. We have the opportunity to do something about it that doesn't jeopardize our economy, doesn't cost consumers an arm and a leg, doesn't ignore our enormous coal resources we have in this Country, but actually builds on those. I don't want to some day look at my kids in the eye, they are 16 and 18. I don't want to look them some day in the eye, 10, 20 or 30 years from now, when we actually do reach a tipping point, when this phenomenon actually might be irreversible, and have them say to me, well, what did you do about it? What did you do about it when you had an opportunity? Weren't you in the Senate? Did you do anything to stop this? I want to be able to look them in the eye and say, I did everything I could. I tried to move heaven and earth to make sure we took a better course, a smarter course, a wiser course, for them and for our planet and for our Country. We can do that. I would ask each and every one of you to do two things. One, take a look at what this partnership has proposed. It is a tipping point and it is a good roadmap. Second, I would ask you to take a look at the work that Senator Alexander and I have done, along with a bunch of our colleagues. Take a look and see if it meets muster in your view. I strongly urge you to join us in this battle. Thank you. Senator Boxer. Senator Carper, I want to thank you for your eloquence and your hard work with Senator Alexander in the Power Plant Sector bill. We are really looking forward to seeing the details of the bill. I also want to thank you for, in such a strong way, calling attention to this new coalition that has developed between the business sector and the environmentalists. I think if you look at evangelicals, the business sector, we have these groups that we never had before saying to us, ``please act.'' I want to thank you for that. Just for members to know when they will be called on, I am going to go to Senator Bond next, then Senator Lieberman, then Senator Alexander, and then Senator Lautenberg. We will continue to go back and forth. Senator Bond, before I call on you, I again want to thank you for your hard work on the highway number in the CR. I think it was terrific that we all worked together on that. So please, you have 10 minutes. OPENING STATEMENT OF HON. CHRISTOPHER S. BOND, U.S. SENATOR FROM THE STATE OF MISSOURI Senator Bond. Thank you, Madam Chair. Patty Murray, the Chair of the Transportation Appropriations Committee and I worked, along with you and Senator Baucus, and we were very pleased it came out. I thank you for holding the hearing today, and I particularly thank my colleague from Delaware for pointing out how we get there is important. I think it is very important that we make sure that we do not fight climate change on the backs of the poor, on the backs of certain sectors of this Country, and do not take short-term steps that will jeopardize our ability to come to long-term solutions. The weak, the infirm, the vulnerable are all in the crosshairs of some of the proposals that have been put forward to address climate change. If you are worried about the economic divide between rich and poor, immediately imposing carbon caps could have a drastic impact. Carbon caps will increase the cost of basic necessities that families cannot do without, heating in the winter, air-conditioning in the summer, and lost blue collar jobs that support middle-income families, particularly in the heartland of the Nation where I live. Unfortunately, carbon caps will hit hardest those with the least ability to pay. Do we really want to do that, make life harder and more expensive for the weakest parts of our society? The problem is that energy for heat, air-conditioning and jobs produces carbon missions. If you limit carbon, you limit energy. When you make something scarce, you make it more expensive. But carbon cap proposals don't stop there. They also decide who gets less of the limited amounts of energy. Many proposals do this through auctions that drive prices up even higher because we will pay twice, first for the energy and the second at an auction just to buy it. The poor and elderly can't even afford to pay their heating bills now. How much will they suffer if they have to pay again for auctioned energy? Will people be forced to forgo, when they must instead pay higher energy costs? Will a low-income family in the rural parts of my State forego food in their pantry? Will we force them to choose between heat or eat? Will a fixed-income senior in the cities choose between buying prescription drugs needed to survive, or running the air-conditioner in sweltering summers of St. Louis? We as Senators need to know how these carbon cap proposals or limitations will impact our States, our less fortunate, our struggling. Unfortunately, we don't have those answers yet. Witnesses testifying before the Energy Committee this week on the Bingaman plan said it would have very little macroeconomic effect. I am not from the State of macroeconomics. I am from the State of Missouri. I need to know how these proposals will hurt Missourians. Many efforts give us national averages, $1,000 per family. I know lots of people who have drowned in water over their heads in lakes that average 3 feet deep. Some families may escape relatively unharmed and pay little. Others, depending on how they heat or how they support their family, may pay thousands more, or even lose tens of thousands of dollars if the workers lose their jobs. But cap proponents have not done their homework. The Senator from Hawaii, a State with some of the highest costs for electricity and gasoline in the Nation, asked how the Bingaman cap plan would affect his State. He was told that nobody knew. Well, that is not going to be good enough for responsible members who want to know how these proposals will hurt their constituents. Now, I think that States in the Northeast and the West Coast will be spared some of that hardship because the energy needs they have are supplied by natural gas, to which they have easy access. I would go back to a statement I heard Nobel Laureate Glenn Seaborg make over a quarter century ago. He said, ``To use natural gas and electricity and a combustion boiler to generate electricity is like heating your home by throwing your most valuable antique furniture in the fireplace.'' I will describe why in just a moment. States currently dependent on coal, however, to meet their energy needs, like my State and States throughout the Midwest, the Great Plains and the South, are going to face extra hardships. Unfortunately, carbon cap proponents have not done the homework that tell us how those plans will hurt these families. States with white-collar service workers may be fine, but caps will hit hard States with manufacturing, States with energy-intensive industries such as steel, aluminum and other metals. Carbon cap proponents have not said how we will take care of these workers. Workers who make products dependent on natural gas will suffer, and they already are. Their feedstock will be in demand to generate more power, making raw materials more expensive. Many of these natural gas-dependent industries, plastics, chemicals, pharmaceuticals, have moved to other countries, to China for example. Farmers who depend upon natural gas for the nitrogen in their triple number fertilizer are being squeezed, and they can't leave. They are being hit by cost increases on their input. Many Missouri families have all these traits, low-income, fixed-income seniors, manufacturing, or coal-dependent. We have far too many families suffering through winters who have already lost their jobs to China. Some have said we need not face these choices, that we can solve our carbon emissions problems through a combination of efficiency, savings, and renewables. Well, I am all for efficiency savings and renewables, couldn't be a stronger supporter. Greenpeace recently put out a new report, however, called Energy Revolution: A Blueprint for Solving Global Warming. It says that their energy revolution would install wind generating capacity by 2050 or 464 gigawatts. That is 464,000 megawatts of electric power from wind power, a 100-fold increase from the current wind generating capacity. Well, where we could do wind generating, I am very proud of it. Missouri's own Kansas City Power and Light recently completed construction of the Spearville Wind Facility with 67 wind turbines, at capital cost of $166 million, generating 100 megawatts of emissions. However, using this experience to see what Greenpeace expects, we would need 309,000 wind turbines at a cost of $767 billion. These turbines stretch side by side, 400 feet tall, visible 15 miles away, and would stretch over 12,000 miles, completely encircling the coast of the United States. Turbines would line up our shores from Maine to Florida, around to Texas, stretch all the way to California to Washington, and almost completely encircle Alaska. Has anybody seen what happened when we tried to put some wind turbines off of Massachusetts? Well, the ``not in my backyard,'' the NIMBY syndrome hit. Hey, listen, we want energy conservation; we want to use renewable energy, hey, but don't put it off of my shore. Well, I happen to live one-half mile from a biodiesel plant, and about 20 miles from a nuclear power facility, and I am delighted. If we had natural gas in Missouri, I would be happy to drill for natural gas. Unfortunately, people off the coast do not want to drill for natural gas. I would offer them a trade. They could have our lead. If they want to mind the lead that we mine in Missouri, and let us drill for natural gas, we would be happy to have natural gas in my backyard. But these costs of over $1 trillion for wind generated electricity just don't make sense. Now, I am not satisfied with the status quo. Biofuels, ethanol and biodiesel can cut carbon emissions. Missouri utilities are increasing their renewable power generation. Missouri farmers are supplying biofuels. But we also need to make coal clean. We have 250 years of energy in coal. Coal is dirty when you burn it. You have to have scrubbers or fluidized bed combustions. But we can do more. We can push the technology to get it ready so we don't bring pain to those least able to bear it. Carbon caps, which would heavily impact fiscally coal companies and utilities, would penalize the very companies that we are expecting to put $1 billion or more into each coal or liquefaction or gasification plant. We cannot take short-term steps that will compromise our ability ultimately to use our most abundant energy source, and that is coal, by gasifying it, or liquefying it, separating out all of the pollutants, including carbon, and sequestering the carbon. It is a big challenge. It is going to cost a lot of money, but we ought to get serious about doing it. We need to know in the meantime what regions of our Country, of the States, what cities will be affected by these proposals, just as the Senator from Delaware said. What sectors of the economy, what types of jobs, who holds them, who will lose them, what types of workers, blue collar, union, are most at risk? What types of people, families, young, old, struggling, will face burdens too high? Only then will we be able to produce a responsible future that not only meets our environmental needs, but assures we meet our social justice needs and continue to have a growing economy that can afford the investment we must make in continued productivity and an environmentally friendly way. Thank you, Madam Chair. [The prepared statement of Senator Bond follows:] Statement of Hon. Christopher S. Bond, U.S. Senator from the State of Missouri Madame Chairman, thank you for seeking our views on climate change strategies. I hope you will take them to heart. Simply put, we must not fight climate change on the backs of the poor. The weak, the infirm, the vulnerable, are all in the crosshairs of proposals that you Madame Chairman, Senators Lieberman and McCain, and others have put forward to address climate change. If you truly are worried about the economic divide between rich and poor, carbon caps will only widen that gap. The reason is that carbon caps will increase the cost of basic necessities that no family can do without--I am talking about heating our homes in the winter, air-conditioning our homes in the summer, and lost blue collar jobs that support middle-income families. Unfortunately, carbon caps will hit hardest those with the least ability to pay. Is this what we really want to do? Make life harder and more expensive for the weakest parts of our society? The problem is that energy for heat, air-conditioning and jobs produces carbon emissions. If you limit carbon, you limit energy. And when you make something scarce, you make it more expensive. But carbon cap proposals don't stop there. They must also decide who gets less of the limited amounts of energy. Many proposals do this through auctions that will drive prices up even higher because we will pay twice--the first time to make the energy and the second time at an auction just to buy it. Many poor and elderly can't even afford to pay their heating bills now. How much will they suffer if they have to pay again for auctioned energy? What will people be forced to forgo when they must instead pay higher energy costs? Will a low-income family in rural Missouri heating their mobile home with electric space heaters forgo food for their pantry? Will we force them to choose between ``heat or eat''? Will a fixed-income senior have to choose between buying the prescription drugs they need to survive or running their air-conditioner in the sweltering summers of St. Louis? We as Senators need to know how these carbon cap proposals will impact each of our States, our less fortunate, our struggling. Unfortunately, the answers have not yet arrived. Witnesses testified before the Energy Committee last week that the Bingaman plan would have very little macroeconomic effect. Well I'm not from the State of Macroeconomy. I represent the State of Missouri. I need to know how these proposals will hurt Missourians. Many efforts give us national averages, such as $1,000 per family, but these plans will not hit all States, families, or workers equally. Some families may escape relatively unharmed and pay little. Others, depending on how they heat their homes, or how they support their families, may pay thousands more, or even lose tens of thousands of dollars if they are the workers who lose their jobs. But cap proponents have not done this homework. The Senator from Hawaii, a State with some of the highest costs for electricity and gasoline in the Nation, asked how the Bingaman cap plan would affect his State. He was told that such a state-by-state analysis had not been done. Well that's not going to be good enough for the responsible members who want to know how these proposals will hurt their constituents. I have to think that States in the Northeast and West Coast will be spared hardship because their energy needs are supplied by natural gas, to which they have easy access. States currently dependent on coal to meet their energy needs, such as Missouri, but including States all throughout the Midwest, Great Plains and South will face extra hardship. Unfortunately, carbon cap proponents have not done this homework to tell us how their plan will hurt families in these specific States. States with many white-collar or service workers may be fine, but caps will hit hard States with manufacturing. States with energy intensive industry such as steel, aluminum or other metals will have suffering workers. But carbon cap proponents have not done this homework to tell us how their plan will hurt these specific workers. Workers who make products dependent on natural gas will suffer. Their feedstock will be in demand to generate more power, making their raw material more expensive. Plastics, fertilizer, automotive, chemicals, pharmaceuticals workers will all suffer. Many energy and natural gas dependent blue-collar workers have already lost their jobs to low-cost China. Again, carbon cap proponents offer no details of how their plans will hurt these workers. Missouri has families and workers with all of these traits: low- income, fixed-income senior, manufacturing or coal dependent. We have far too many families suffering through winters, or who have already lost their blue-collar family supporting jobs to China. I cannot blindly go into what may bring them even more pain and hardship. Some have said we need not face these choices. That we can solve our carbon emissions problems through a combination of efficiency savings and renewables. Some quick and easy calculations reveals that this is pie in the sky. For example, Greenpeace recently put out a new report called ``Energy Revolution: A Blueprint for Solving Global Warming.'' It claims to show how wind and solar energy combined with efficiency advances could replace coal to reduce carbon emissions. Unfortunately, their proposals are also drastically impossible and impractical. Their Energy Revolution requires installed wind generating capacity in 2050 of 464 gigawatts. That is 464,000 megawatts of electricity from wind power--a staggering number in itself and a 100- fold increase from current wind generating capacity. Now I support increased power generation from renewables including wind power. I am very proud that Missouri's own Kansas City Power and Light recently completed construction of their Spearville wind facility. Its 67 wind turbines, at a capital cost of $166 million, will generate 100 megawatts of emissions free electricity. However, using this experience to see what Greenpeace expects, we would need 309,000 wind turbines at a cost of $767 billion. These turbines side-by-side, 400 feet tall and visible 15 miles away, would stretch 12,229 miles. That would almost be enough to encircle completely the entire coast of the United States. Turbines would line our shores from Maine to Florida, around to Texas, stretch all the way up California to Washington, and almost completely encircle Alaska. To pay the $767 billion bill we would need every man, woman and child in America to pay $2,550, or family of four to pay $10,200. But these numbers assume Greenpeace's massive energy efficiency savings. If energy demand hits full predictions, we would need nearly 400,000 turbines at a cost of nearly $1 trillion. Do the sponsors of the Boxer-Sanders carbon cap bill really expect us to spend $1 trillion on wind turbines? No, of course not. And yet, we continue to see these schemes pedaled as real solutions. Now I am not satisfied with the status quo. We can and must do better, including more with renewables. I am a big supporter of biofuels such as biodiesel that can cut carbon emissions by 30%. Missouri utilities are increasing their renewable power generation and Missouri farmers are helping supply biofuels. We also have nuclear power in Missouri. We can and must do more of all of these things. Serious people must also support making coal clean. We are working on technologies to gasify coal, burn it cleanly and capture the carbon emissions. We must do much more to figure out how and where we can affordably sequester carbon emissions. But what we cannot do is push past where technology is not yet ready and thereby intentionally bring pain and hardship to our weak and vulnerable families and workers. General legislation that leaves the details and dirty work to others, like those recently passed at the State level, is unacceptable. We cannot abdicate these questions or our responsibility to our constituents. To avoid this, we need to know what regions of the country, what States, what cities will be affected by proposals? What sectors of the economy, what types of jobs, their locations, who holds them and who will lose them? What types of workers, blue collar, union, are most at risk? What types of people, families, young, old, struggling, will face burdens too high? Only then will we be able to produce a responsible future that meets our environmental and social justice needs. Thank you. Senator Boxer. Senator, thank you so much. Before I call on Senator Lieberman, just two quick things. I want to respond just a little bit to what you said, because I think it is a very positive contribution. I also want to take a moment, now that we have a quorum, and I believe we have a quorum, to suspend the hearing for just a moment. [Whereupon, the committee proceeded to other business.] Senator Boxer. Senator Bond, I thank you for bringing up the issue that you did in a very eloquent way. We don't want to do anything on the back of the poor. I think environmental justice, as you call it, social justice is key. I think it is why we all come together around the LIHEAP Program and others things that we do. I do want to make one point about energy efficiency, because energy efficiency helps our families. I also want to say as far as coal is concerned, you are right. We cannot turn our back. We have 250 years of coal in America. We have to make sure that technology steps up and helps us resolve and solve this problem. I am kind of taking everybody's temperature on where you are coming from, and I really do appreciate the contribution you have made. Thank you so much, Senator. Senator Lieberman, we are very delighted you are here. OPENING STATEMENT OF HON. JOSEPH I. LIEBERMAN, U.S. SENATOR FROM THE STATE OF CONNECTICUT Senator Lieberman. Thanks, Madam Chairwoman. I hope that when I am done you will put my temperature down as ``hot.'' Senator Boxer. I will do it right now. Senator Lieberman. Hot to get something done. I thank you very much for your leadership. Let me express to you how grateful I am that you are moving global warming to the top of this committee's agenda. You have been a longtime leader in this area of environmental concern. At times, as we both know, there weren't many people out there. I think now you and I hear the sound of the cavalry coming to meet this enormous challenge to our future and the future of those who will follow us here on Earth. The great thing is that it is a very diverse cavalry. Like you, Madam Chairwoman, I have been listening to our colleagues in the Senate. I have been reading what they have to say. I have been listening to leaders in the public, private and academic sectors, and reading what they have to say. It is hard not to conclude that the politics of global warming has changed, and a new consensus for action is emerging. It is a bipartisan consensus. I believe that in this Congress, we can adopt legislation that will begin to stop the advance of the warming of our planet. If we can achieve a consensus agreement here on this committee, and I believe a bipartisan consensus, we can take it to the Senate floor, join it up with legislation our colleagues in the House will pass, and I think ultimately enact strong, comprehensive global warming legislation. Now, people will then say, well, what about the President? Well, part of the change here occurred in the State of the Union a week ago. The President uttered less than a dozen words, but they were heard around the world. It is quite remarkable. I am looking for a bad meteorological metaphor, but it is as if the President created a seismic change at the bottom of the ocean that set off a positive tsunami of hopefulness around the world that the United States was ready to assume its leadership place in the global battle to stop global warming. So I think we have to build on that and start it right here. The time is right. Solutions are at hand, and coalitions of goodwill are forming across political and ideological lines. The often-varied orbits of Democrats, Republicans, and of course I have to add Independents, along with the business community, academic, and the environmental and scientific communities, seem to be moving into an alignment, creating what I think is the real probability that we can adopt strong legislation. Why is this happening? I think some of the questions that people have been asking about global warming are being answered. The first fundamental question that was being asked in the early stages of the battle to get something done here, was, is it real? Is it really happening? If it is happening, that the planet is warming, is it happening because of things we humans are doing? At the outset, those who were concerned were deriving their worst concerns from computer models. You couldn't really see it. Today, unfortunately, you can see that it is real. You can see it in the melting of ice masses on the Earth. You can see it in tides rising in different places on the Earth. You can see it in the movement of species, wildlife species, the endangerment of certain species. You can even see it in the beginning of movements of diseases. It is real, and the evidence, to me, and increasing consensus of people around the world, is that what we are doing is causing that real problem. A second question, I suppose, is can we afford it? I will talk about that a little more in my statement, but I think people are beginning to come to the point where they are feeling that doing something about global warming now will cost us a lot less than waiting to pay the costs of dealing with the effects of global warming, some of which may be catastrophic. The third question that has been raised is, what does it matter if we do it, and the Chinese and the Indians, the great rising economies of the world, don't do anything about global warming? That is a good question. It doesn't relieve us of our responsibility. It is actually a moral responsibility, but it is a responsibility to act to protect the people of the United States from a problem that we are the greatest cause of, because we emit more greenhouse gases than any other nation on Earth. But I hope that the President goes from that one sentence that he uttered in the State of the Union, to assuming a leadership role in bringing China and India, particularly, into a leadership group of developed and developing nations of the world to work on what might be called the post-Kyoto system for dealing with the reality of global warming. Chancellor Merkel, a great ally, Prime Minister Blair, a great ally, have suggested as much, and I hope President Bush will join them in that. Now, let me come back to where we are. I want to mention one final reason why I think this new consensus is emerging. In a classic example of the American Federal system at work, when the people see a problem and they want their government to protect them from it, but the Federal Government does not act, where do they go? They go the States and localities. The States and localities are acting, most notably the Northeastern States have come together in a tough anti-global warming compact. Of course California, our largest State, is now playing a leadership role. What does that do? It says to people in the business community that this is coming. So do we want to deal with what we are going to be asked to do in responding to a maze of State and local regulations and laws? Or are we going to have one national law that will give us predictability? That is part, in addition to their good citizenship and recognition of the reality of the problem, why business leaders are saying now, yes, it is worth the cost. In fact, it is going to save jobs and create wealth. I think most important is for us to go ahead in this committee, to seize this moment by listening to each other and trying to find a bipartisan common ground. I congratulate our colleagues, Senator Carper and Senator Alexander, who have done that with their proposal, which will reduce greenhouse-gas emissions from the electricity-generating sector of our economy. I hope that in our subcommittee, and I look forward to working with Senator Warner as Ranking Member, that we will be able to build on that bipartisan consensus. Madam Chairwoman, as you know, I have introduced legislation that I have sponsored in the last two Congresses, with Senator John McCain, the Climate Stewardship and Innovation Act. I am very grateful that this bill has the support of a broad bipartisan group, Senators Lincoln, Snowe, Obama, Collins, and Durbin, and our colleagues on this committee, Senators Clinton and Carper. Let me just talk briefly about the bill in the 2 minutes I have left. This bill does have a cap, because if you don't have a cap, you are not going to have results. But it uses the power of the marketplace and a cap and trade system, the kind that has worked with regard to the reduction of acid rain that was mandated in the Clean Air Act Amendments of 1990. Our bill would cap the greenhouse gas emissions of the electric power, industrial, transportation and commercial sectors of our economy at year 2004 levels by 2012. It would then lower that cap gradually so that it reaches one-third of the year 2004 levels by 2050. The bill controls compliance costs by allowing companies to trade, save and borrow emissions credits, and by allowing them to generate credits when they induce noncovered businesses, farms and others to reduce their greenhouse gas emissions or capture and store greenhouse gases. The bill then would invest set-aside emission credits and money raised by the auction of those allowances for advancing several positive ends, such as deploying advanced technologies, protecting low- and middle- income Americans from higher energy costs, keeping good jobs in the United States, and mitigating the negative impacts of any unavoidable global warming on low- and middle-income Americans, low-income populations abroad, and wildlife. This bill is sound. It is tested. I want to say to my colleagues on the committee, as good as I think it is, it is not perfect. I welcome the collaboration, the input from members of this committee to make the bill even better. I want to do the same with members of the Senate outside the committee, particularly Senator Bingaman, who has wrestled with these facts and offered solutions that demand careful consideration. Madam Chairwoman, in closing let me again thank you for your leadership and reiterate how eager I am to assist you as you lead this committee to the bipartisan solutions to the challenge of global warming that now lie within our grasp, both technologically and politically. It is time for us, in facing one of the truly great challenges of our time, to seize the moment and prove to the American people that here in Congress we can work across party lines to solve the problems they sent us here to solve. Thank you very much. [The prepared statement of Senator Lieberman follows:] Statement of Hon. Joseph Lieberman, U.S. Senator from the State of Connecticut Thank you, Madame Chairwoman. Let me start by saying how delighted I am by your accession to the chair of this committee, and how much I look forward to working under your leadership. Second, let me tell you how deeply grateful I am to you for moving global warming to the top of this committee's agenda. You have been a long-time leader on the need to confront the challenge of global warming. And you and I both know that was a lonely outpost for sometime. But now I think I hear the sound of cavalry coming and a new willingness to charge into this challenge head on. For months, I have been reading and listening both to my colleagues in the Senate and to leaders in the public, private and academic sectors. And I believe the politics of global warming have changed and that a new consensus is emerging. I believe that in this new Congress-- and under your leadership of this Committee--we can create bipartisan support here and then on the Senator floor for a strong, comprehensive bill to curb global warming. The time is ripe. Solutions are at hand. And coalitions of good will are already forming across political and ideological lines. The often varied orbits of Democrats, Republicans--and Independents--along with the business community, academia and the environmental and scientific community have moved into an alignment, creating a galvanizing, gravitational tug toward action. I believe it is crucial to our ultimate success that we proceed in a bipartisan manner from the very beginning of this process. For instance, one of my Republican friends on this committee, Senator Alexander, has already cosponsored my Democratic friend Senator Carper's bill to reduce greenhouse gases from the electrical generating sector of the U.S. economy. I want to help build and nurture this bipartisan momentum through the subcommittee I am privileged to lead with my good friend and colleague Sen. Warner. This week, in fact, I hope to notice a February 7 subcommittee hearing that will examine the impacts of global warming on the wildlife and ecosystems that are central to our American values, way of life, and . . . our very livelihoods across this nation. Left unchecked, there is no region of the country that will not suffer from the effects of global warming and I invite all my colleagues on this committee to attend this hearing. The devastation wrought by rising sea levels, droughts, waves of insect borne diseases will sweep from coast to coast, leaving no one untouched. Madam Chairwoman, you and my colleagues here know that I have reintroduced legislation I sponsored with Sen. McCain in the last two Congresses to reduce global warming--the Climate Stewardship and Innovation Act. This bill has the bipartisan support of Senators Lincoln, Snowe, Obama, Collins, and Durbin, and my committee colleagues, Senators Clinton and Carper, having signed on as cosponsors as well. Several of my colleagues on this committee and in the Senate have expressed a concern that, in reducing greenhouse gas emissions, we might inadvertently force more American jobs overseas and increase the energy costs borne by low- and middle-income Americans. These are perfectly understandable, reasonable concerns. Indeed, Sen. McCain and I shared them when we sat down to write our bill. And we are both convinced that we can fight the quickening slide into catastrophic climate change in a way that actually creates new high- paying jobs in the United States, improves this country's position in relation to its trading partners, and lowers Americans' energy costs over the long term. Our bill uses the power of the free market to promote the rapid and widespread deployment of advanced technologies and practices for reducing greenhouse gas emissions. Moreover, as I mentioned, it is designed to promote the economic well-being of low- and middle-income Americans, and to keep good jobs in the United States. The Climate Stewardship and Innovation Act would cap the greenhouse-gas emissions of the electric power, industrial, transportation, and commercial sectors of the economy at year 2004 levels by 2012. It then would lower that cap gradually, such that it reaches one-third of year 2004 levels by 2050. The bill controls compliance costs by allowing companies to trade, save, and borrow emissions credits, and by allowing them to generate credits when they induce non-covered businesses, farms, and others to reduce their greenhouse gas emissions or capture and store greenhouse gases. The bill then invests set-aside emissions credits and money raised by the auction of those allowances in advancing several positive ends, such as deploying advanced technologies and practices for reducing emissions; protecting low- and middle-income Americans from higher energy costs; keeping good jobs in the United States; and mitigating the negative impacts of any unavoidable global warming on low- and middle-income Americans, low-income populations abroad, and wildlife. I believe our bill is sound. And with the help of Republicans and Democrats on this committee, we can make it even better. I for one will be very receptive to suggestions presented by my colleagues on this committee as to ways we can further protect American competitiveness and jobs. I will also work with those Senators not on this committee, who have devoted a great deal of thought and effort to the issue of cost control and the mechanics of an economy-wide, market-based emission reduction system. Here Senator Bingaman, the distinguished chair of the Energy and Natural Resources Committee, deserves special mention. He has wrestled with the facts and details of climate legislation as much as any other Senator, and his ideas merit careful consideration. Madame Chairwoman, let me close by again thanking you for your leadership and by reiterating how eager I am to assist you as you lead this committee to the bipartisan solutions that we know lie within our grasp. Senator Boxer. Senator, thank you for your long term leadership. I think that your partnership with Senator McCain, whom we will hear from this afternoon, has been a role model for us on this matter. I agree with you that we can do it in this committee. I also want to underscore something you said about the economic costs of not doing anything, because most people say it is going to cost up front. Nicholas Stern, who is the chief economist for the World Bank, said that $1 spent now will save $5 later because of the economic disruption that could come if we don't mitigate the problem. So I think this is something we need to keep discussing. So thank you very much. I understand members are coming and going. I have lots of other things to do, so please feel free when you need to leave. It is my pleasure to recognize Senator Alexander, then Senator Lautenberg. OPENING STATEMENT OF HON. LAMAR ALEXANDER, U.S. SENATOR FROM THE STATE OF TENNESSEE Senator Alexander. Thank you, Madam Chairman. The National Academy of Sciences of the United States, as well as the National Academies of Japan, Germany, China, and other nations, have agreed that human activity is having a significant influence on global temperature increases. I believe that amounts to a scientific consensus and that it is now time for Congress to take reasonable steps to reduce U.S. emissions of greenhouse gases. In my judgment, the right first step would be the one that Senator Carper described, a market based system of greenhouse gas permits that would limit carbon dioxide produced by electric utility generating plants in the United States. This would affect about 40 percent of the carbon dioxide produced in our Country. Senator Carper and I introduced legislation in the last Congress to do this. We expect to do it again within the next several weeks. Our legislation is a little different in that it affects the utility generators, about 40 percent of the carbon, and it also is what we call an ``integrated'' approach. It puts stricter controls on the other major pollutants which come from fossil fuel plants, sulfur, nitrogen and mercury, which have created a serious clean air problem in many parts of the Country, especially in eastern Tennessee, where I live. I don't believe that it is wise at this point to enact one of the various legislative proposals that would impose carbon controls on the entire economy. We have looked pretty carefully, Madam Chairman, to try to make sure that our bill can be accomplished at a minimal cost. We believe that it can, through the modeling that was done working with the Environmental Protection Agency in the last session of Congress. We try to clean up air pollution from existing plants through a combination of emission caps, market based trading, offsets, and technology incentives. We believe that both reduces pollutants in the years ahead and does it at the most minimal cost. And importantly, since coal is such an important part of our electricity production in the United States and will continue to be, we believe our bill will make it possible to use coal abundantly, while keeping the air clean and healthy in a cost-effective way. I would like to spend just a few minutes talking about that bill and why I care about it. Most of us are affected by where we come from. I come from the mountains of east Tennessee. I grew up in a county that includes a big part of the Great Smoky Mountain National Park. I might add, this is a very Republican county, very Republican area. We haven't elected a Democrat to Congress since Lincoln was President, and there is no indication we ever will. So the views that I am expressing are not partisan views, but they do express the views I believe of most of the people where I live. For example, the next county over is Sevier County, which is Dolly Parton's home. It also contains a lot of the Smokies, and is also a very Republican county. When I walked into the Chamber of Commerce in Sevier County and asked them what their No. 1 priority was a couple of years ago, they told me ``clean air.'' Clean air is the No. 1 priority because 10 million people visit the Smoky Mountains Park each year. They bring a lot of tourism dollars with them. They come to see the purple haze that has been there since the days of the Cherokees, not the smog that is currently there. Current visibility on the haziest days in the Smokies is 15 miles. Natural visibility on the haziest days ought to be 77 miles. Visibility is an issue, and that affects our jobs. We are also concerned about the health impacts of all that smog on those of us who live there. East Tennessee fails to meet minimum Federal healthy air standards for fine particles and ozone, both of which cause serious health damage. Knoxville was the 14th most polluted city for ozone, for example. Ozone irritates the lung tissues. It increases your risk of dying prematurely. It increases the swelling of lung tissue. It increases the risk of being hospitalized with worsened lung diseases, and triggering asthma attacks. At risk in Knox County alone are 176,000 children, 112,000 seniors, 15,000 children with asthma, and 50,000 adults with asthma. So an integrated bill such as the Clean Air bill that Senator Carper and I propose would control all of those pollutants. Ozone is not emitted directly from tailpipes and smokestacks. The raw ingredients come from coal-fired powerplants and cars. They cook in the air when it is sunny and warm. Sulfur is in many ways our biggest problem. It is the primary contributor to the haze. It causes difficulty in breathing. It causes damages to the lung tissue and respiratory disease, and even premature death. Mercury is also a problem. Monitoring by the EPA, the National Park Service and others show that these areas have high levels of mercury deposits from air pollution. Our areas have more than most other parts of the Country. Recent studies have shown that much of that mercury comes from not very far away. It is polluting waterways, with mercury contaminating the fish we eat, posing a serious threat to public health. So we are concerned about mercury. We are concerned about nitrogen. We are concerned about sulfur especially, and as time goes on, we have become concerned about climate change. The leaves changed earlier when I was a boy. We used to look at October 15 as the day for that. There was more snowfall then than there is today, but that is not exactly a scientific analysis. But now we have the National Academy of Sciences of our Country and many other countries saying that our human activity is playing a significant role in the rising average temperature. So that is why I joined with Senator Carper 3 or 4 years ago to introduce our legislation, to move along, not just to clean up sulfur, nitrogen and mercury, but also to take what we believe is a reasonable first step to deal with carbon, the principal contributor to climate change. The bill will cut sulfur dioxide emissions by 82 percent; nitrogen oxides by 68 percent; mercury by 90 percent, without trading. It would cap carbon dioxide emissions at 2001 levels, all these reductions to be achieved by 2015. It permits utilities to undertake projects that reduce or capture CO<INF>2</INF>, such as planting trees. These are known as offsets. Why focus on powerplants? Well, first, as has been said two or three times here, they produce about 40 percent of the CO<INF>2</INF>. Of greater concern is that emissions from powerplants are growing at nearly twice the rate of the economy as a whole. This trend will only accelerate if electricity companies build the more than 150 new coal-fired powerplants they are currently proposing. Fossil fuel powerplants provide more than 50 percent of our electricity nationwide. They emit more harmful air pollution than nearly any other source in the Country, including two- thirds of the sulfur dioxide, one-quarter of the nitrogen oxide, and 40 percent of the mercury. Madam Chairman, I think we are at a point in our Country's history when we are ready with technological advances to deal with these clean air challenges, and to do it in a way that permits us still to have a very strong economy. Obviously, conservation and efficiency is the first and easiest thing to do. We can be aggressive about that, reducing electricity demand, lowering consumer utility bills, speeding the deployment of energy-saving appliances, lighting, and encouraging efficient building practices. Second is renewable energy. Senator Bond pointed out, I thought pretty graphically, that as important and as attractive as renewable energy might be today, it is only 2 to 3 percent of our electric production outside of hydropower. To take that to a very high number in this generation is not very practical. We don't need a national wind turbine policy. We need a national energy policy. Renewable energy is a part of it, but it is a small part. That takes us to nuclear power. Nuclear power produces 20 percent of all of our electricity today, but 70 percent of our carbon-free electricity. That number must go up. And then to clean coal. We would be very unwise if we did not make sure that any legislation we passed did not make plenty of allowance for a future that is based on coal, an abundant source of electricity. There are now technological ways to use coal in clean ways that get rid of all four of the pollutants that our legislation seeks to control. Carbon sequestration technology has advanced to a great degree. So that is why I am here today. I care about clean air, and to deal with clean air I believe we have to deal with sulfur, nitrogen, mercury and carbon. I hope, Madam Chairman, that the legislation that Senator Carper has worked so hard on the last several years, and several of us on both sides of the aisle have cosponsored, will form a framework for responsible action this year in this committee. Thank you. Senator Boxer. Senator, I want to thank you from the bottom of my heart for the contribution you are making to this issue. I think you and Senator Carper, as Senator Lieberman and Senator McCain have proven, that we can work across party lines. I know that we have been working with both your staffs. I think the bill has moved in the best of directions. I am optimistic that whatever happens here, your work will have been a huge part of what we eventually do. So I just want to thank you very, very much. Now, just so we know, we are going to hear from Senator Lautenberg, if Senator Warner is not back, Senator Craig, if Senator Clinton is not back, and Senator Klobuchar. Is that right, Bernie? Was she here before you? Senator Sanders. She says so. [Laughter.] Senator Boxer. All right. Senator Lautenberg. OPENING STATEMENT OF HON. FRANK LAUTENBERG, U.S. SENATOR FROM THE STATE OF NEW JERSEY Senator Lautenberg. Thanks, Madam Chairman. I want to commend you for presenting an openness here that portends good things for the future. So my compliments for doing that. As I have listened to various presentations, I have to be a little defensive in terms of whether or not the question is livelihood or life. I don't think that ought to be the way to do the equation. The suggestion that we can't adapt our systems so that we are producing less carbon dioxide, less greenhouse gases, for me is a wondrous question. There are sources of revenue that are diverted to other things than important research like stem cell research of course, but in energy independence as well. If we had some of those funds available for these studies, maybe we could improve the situation that we face. It is shocking to me when finally with a lot of hard work, and there are no accusations intended here, but we see a report in today's New York Times. Madam Chairman, it was brilliant planning to have this report in the New York Times today from the world scientists, the U.N. Intergovernmental Committee on Climate Change, they are going to release their report on February 2 before this week is out. They say several things in there that kind of challenge what I am going to call the relative complacency that we have seen about this problem, and continually debate whether or not the costs for doing so are going to remove job opportunities, increase costs of living. The costs of dying are the ones that I don't want to pay. I don't want my grandchildren to be the substitute for the proverbial canary in the coal mine. I don't want anybody else's grandchildren to be the testing mechanism for seeing whether global warming is having a negative affect on our being. These scientists say things like this, their findings that the Arctic Ocean could largely be devoid of sea ice during summer later in this century. European Mediterranean shores could become barely habitable in summers, while the Alps could shift from snowy winter destinations to summer havens from the heat. Growing seasons in temperate regions will expand, while droughts are likely to ravage further the semi-arid regions of Africa and Southern Asia. Concerns about climate change and public awareness on the subject are at an all-time high. We know that. The chairman of the panel told delegates on Monday, and some time ago a report was developed for the use of the Pentagon, and I submit that we ought to see if we can get it distributed. Madam Chairman, this report was done in October 2003, and is a grim conclusion about what could happen as we continue to see sea levels rising. They are fairly close projections in time. We heard a commentary that Al Gore's pitch for the presidency is a primary reason, the production of the film that he helped produce, and displays very directly what the consequences are of the current trends toward global warming. I think that Al Gore did us all a major service. I am particularly disturbed that the evidence we see in front of us has not been taken seriously. My State of New Jersey had the unique leadership in the change in temperature among all 50 States in the Country. We are at the top of the ladder in terms of the degree of change, not very comforting. I also want to talk, and start today by talking about the Doomsday Clock. The Doomsday Clock is maintained by the Bulletin of the Atomic Scientists, a group of international experts who are committed to our, ``security, science and survival.'' The hands on the clock convey how close the human race is to destroying itself, the metaphoric ``midnight'' or the end of life as we know it. In the past, the clock moved closer to midnight because of nuclear weapons testing or war, but this year the Doomsday Clock was pushed 2 minutes closer to midnight because of global warming. Stephen Hawking, scholar, author of ``A Brief History of Time,'' said, ``Terror only kills hundreds of thousands of people. Global warming could kill millions. We should have a war on global warming.'' The United States needs to actively engage in the war on global warming, and it starts with this committee, Madam Chairman. I am pleased to see the action that you have kicked off today. The average global temperature in 2006 was 2.2 degrees warmer than the average temperature throughout the 20th century, and that is according to NOAA. This is not an anomaly. It is a recurring fact. The last seven 5-year periods were the warmest 5-year periods on record. As the temperature rises, our world suffers. Polar Bears, long a symbol of the wilderness, may soon have a new home, and that is on the threatened species list. Their habitat has already melted so much that bears have drowned swimming and searching for food. The ocean level is being altered. We know that the ocean level is rising, and it threatens coastlines across the globe. I have already pointed out the effects of what we are seeing could be gigantic in their outcome. The United States, the glaciers in Glacier National Park are shrinking. The park's largest glaciers are one-third of their 1850's grandeur. We also know that the Pentagon sees security risks coming from global warming, and I indicated that there is a report that was developed for the Pentagon. So here is Congress's choice: deny these real and rising impacts of global warming, or confront them. I think that what we have seen here today is a serious attempt to get the ball rolling. The answer is obvious. We have to act and here is what we need to do. We need to cap and reduce greenhouse gas emissions. We need to increase CAFE standards. We need to create incentives for cities and companies to go green and build green. The one thing that we have to end is censorship or suppression of government scientists' reports who do critical research on global warming. That has been going on. All of this has to be done right now. The public is taking better care of our environment. They want to do more. People are buying cars based on fuel efficiency by way of example. This year, Senator Sanders has a Global Warming Pollution Reduction Act, which calls for an 80 percent reduction in global warming pollutants by 2050, and I am pleased to be a cosponsor of that. So we end up now by saying, enough of this cynicism that we have seen in the past, enough of the suggestions that global warming was a hoax perpetrated on the American people. It is time for action and the time to start is now. Thank you very much, Madam Chairman. [The prepared statement of Senator Lautenberg follows:] Statement of Hon. Frank R. Lautenberg, U.S. Senator from the State of New Jersey Thank you Madam Chairman for holding today's forum on the biggest environmental threat of our time. I want to start today by talking about the Doomsday Clock. The Doomsday Clock is maintained by the Bulletin of the Atomic Scientists, a group of international experts who are committed to our ``security, science and survival.'' The hands on the clock convey how close the human race is to destroying itself--the metaphoric ``midnight,'' or the end of life as we know it. In the past, the clock moved closer to midnight because of nuclear weapons or war. But this year, the Doomsday Clock was pushed two minutes closer to midnight because of global warming. Stephen Hawking, the scholar and scientist said, ``Terror only kills hundreds or thousands of people. Global warming could kill millions. We should have a war on global warming. . . .'' The U.S. needs to actively engage in the war on global warming. And it starts with this committee. The average temperature in the United States in 2006 was two-point- two degrees warmer than the average temperature throughout the twentieth century, according to NOAA. And this is no anomaly--it is a recurring fact: the last seven five-year periods were the warmest 5-year periods on record. And as temperatures rise, our world suffers: The Polar Bear, long a symbol of the wilderness, may soon have a new home: the ``Threatened Species List.'' Their habitat has already melted away so much that some bears have drowned swimming and looking for food. The ocean is being altered. We know the ocean level is rising, threatening coastlines across the globe. In Germany, the Alps could lose nearly three-quarters of its glacial mass this century, according to the World Glacier Monitoring Service. Back in the United States, the glaciers in Glacier National Park are shrinking. The park's largest glaciers are one-third of their 1850's grandeur. If what the scientists say is accurate, Glacier National Park will have to drop the word ``Glacier'' from its name. We also know the Pentagon sees security risks from global warming. A 2003 Department of Defense report begins by saying ``There is substantial evidence to indicate that significant global warming will occur during the 21st century.'' That same report says that Bangladesh could become nearly uninhabitable because of a rising sea; mega-droughts could affect the world's major breadbaskets, such as America's Midwest--and future wars could be fought over the issue of survival in this new, hotter climate. So here is Congress's choice: Deny these real and rising impacts of global warming? Or do what our citizens sent us here to do--confront them? The answer is as obvious as the problem. We simply have to act. And here is what we need to do: We need to cap and reduce greenhouse gas emissions from power plants and other facilities that pollute. We need to increase CAFE standards to get car and truck emissions down, and dependence on foreign oil down, too. We need to create incentives for cities and companies to go green and build green. We must end the censorship and suppression of government scientists who do critical research on global warming. And we must do all of this right now. The public is taking better care of our environment--and they want to do more. People are buying cars based on fuel efficiency, for example. Some in the private sector are taking better care of our environment. Last week, we had CEO's from some of America's largest companies, such as General Electric and DuPont, call for strong, national legislation to reduce greenhouse gas emissions. It's time for the federal government to wake up and do its part. This year, I am proud to co-sponsor Senator Sanders' ``Global Warming Pollution Reduction Act'', which calls for an eighty percent reduction in global warming pollutants by 2050. And I will be introducing the `High Performance Green Buildings Act' with Senators Snowe and Boxer. I also want to thank former Senator Jim Jeffords for his work on this issue. Buildings--from small apartments to skyscrapers--account for nearly forty percent of our greenhouse gases. And the federal government can have a major impact, because it is the biggest landlord in the country. So our bill promotes energy efficiency in the design and maintenance of federal buildings. And with greater efficiency, we get fewer greenhouse gases. On Friday in Paris, the International Panel on Climate Change will release its long-awaited report on global warming; the work of twenty- five hundred scientists. It will paint a vivid portrait of how global warming is affecting our planet. With this report as a catalyst, my hope is that we can answer the Doomsday Clock's call--and take real action to protect future generations from the threat of global warming. Our children and grandchildren cannot afford us waiting any more. Thank you Madam Chairman. Senator Boxer. Thank you, Senator Lautenberg. I know you very well, and I know that everything you do is with the next generation in mind, and I thank you for giving us that perspective. I am very pleased to call on Senator Craig, a new member of the committee, but certainly one who has very firm ideas, and we look forward to hearing from you, Senator. You have 10 minutes. OPENING STATEMENT OF HON. LARRY E. CRAIG, U.S. SENATOR FROM THE STATE OF IDAHO Senator Craig. Madam Chairman, thank you very much for the forum as we move forward on this issue. There are some givens here and there are some realities. I thought that what I ought to do at first is to suggest that most of us already have an opinion that we have shaped over a good period of time on this issue. Some of us have modified our opinion a bit. So I asked CRS to find out how much had been spoken by U.S. Senators on climate change. Well, here are my speeches, Madam Chairman. I will ask you to file them for the record; 59 of them on the floor of the Senate since the 102d Congress. Now, here is CRS's search of the rest of you. These are not the actual speeches. This is imply referencing the 50,000 pages spoken on the floor of the U.S. Senate approximately since the 102d Congress on this issue. [The referenced document follows on page 139.] As we all know, we have voted numerous times on a variety of proposals, and each time they have failed. They have failed out of skepticism and concern on the part of a good number of us that we hadn't quite got the science right, and we were going to plunge, as some of us have suggested, our economy into a recession or depression that would dramatically impact our citizens. I find it ironic that in the recession of this Bush administration, when we lost 3 million jobs in our Country, we hit 1990 emission gas levels that are the Kyoto principles. Actually, Kyoto is 1990 minus 5.2 percent. So with the loss of 3 million jobs under current technology, 5 years ago we met the standard. So some of us who have argued at that time that we should not move until we knew what to do, I must say we were reasonably accurate in our projection. Like many of you, I have traveled the world to climate change conferences. I found it fascinating when I listened to some countries talk about what they could do and what they were going to do. Now, all of those that ratified Kyoto, by 2012 there will only be two countries remaining that are in or near compliant: Sweden because they are dominantly hydro and nuclear; and Great Britain because they rush to gas. The rest of them will be substantially out of compliance, and the reason is really quite simple: to grow an economy in today's world you have to have energy, and our forms of technology that produce that energy are less than clean. So Japan will be well out. Italy will be well out. By 2012, most of them will have stepped back and walked away from Kyoto. But Kyoto was a beginning of a discussion that I think is tremendously important for us. I think the environmental community, at least the extremists, were frustrated because they lost and they were not used to losing these kinds of debates. But when you promise the developing world that the only way to save their future is with a candle and living in a cave, you should accept the rejection that Kyoto got. I find it interesting, the former Vice President was in my State recently, a large gathering, talking about The Inconvenient Truth, which is the new packaging of an old book, but I guess he is going to get Hollywood to recognize him for that. But I find it very principled that the World Food Organization, World Health Organization and the United Nations itself don't support his approach. Why? For the very reason all of us have talked about the importance of doing it right. And that is that we do not want to subject the rest of the world to the status quo. We should obviously enhance the world toward a better life, and that is where technology comes in. I was telling Senator Carper a few moments ago, don't apologize to your kids. Don't say you haven't done anything to date. That is simply not true. We passed the National Energy Policy Act in 2005 and in the last three quarters, it has produced the largest investment in the history of this Country in clean technology. When we passed it in July 2005, there was one nuclear reactor on the drawing board. Today, there are 30 nuclear reactors on the drawing boards, and probably half of them will be built. We are investing heavily now in coal gasification. We are standing up an ethanol distillery about one a week, to the point where we are now consuming 20 percent of the corn supply of our Country. We have reduced cattle feeder prices by 20 percent because of the lack of feed grains. Now, we will get that all in balance, but it is being driven, Madam Chairman, by what we collectively and in a bipartisan way have done. My sense is a rush to climate change at this moment, all due apologies to Senator Clinton, is something about a 2008 election. Every so often everybody gets very, very anxious about this issue. I am one who said in 2001, our world is warming. I am going to be more sensitive to that, and I am going to be an advocate of all forms of technology in all forms of energy. I really believe that is where we ought to go. Madam Chairman, let me thank you for S. 167, cellulosic distribution. I am the guy who helped get the loan guarantee that we finally got stuck in the CR this last week that will stand up the first cellulosic commercial plant somewhere in the United States. We ought to be about all of that. I am one of those who convinced this President to openly and publicly denounce Kyoto, and he did. I said, ``Mr. President, once you do that, though, you must do something more. You must then lead the world in clean and new technologies, because in the absence of that, we will not get where we need to get in the world.'' The Asian Pacific Initiative is a direction that he has taken. It is a good one. It brings China and India into the fold, to begin to talk more about nuclear and less about coal. I am not at all frightened about our future, and I am not going to wring my hands and play politics with this issue. I will vote for the right kind of technologies. I will not vote to penalize the consumer. Senator Bingaman, in a very sincere way, last week rolled out an idea that has been studied now. Environmentalists said it is less than half of what we need, but it impacts every consuming household by $800 a year, and it is minimal in the cap and trade concept of today's technology. As a result of that, that is a penalty or a price to pay. If in solving the cap and trade approach and bringing on the kind of revenues that it will generate, we turn to the American consumer and say you are going to have to pay $1,200 or $1,400 a year. We pick winners and losers. That is where we find the money to do all the new technology works, I am not sure that is quite the direction we ought to head in. I assume that consumers are going to pay more for energy. I say quite often that the bad news about the summer was gas was $3 a gallon. The good news is gas was $3 a gallon. It created one of the greatest levels of conservation for a period of time in our Nation's history. Why? Because consumers made a choice: price is a moderator. There is no question about that. At the same time, it also stimulated the greatest investment in new and clean technologies ever in our Country's history, backed up against EPAC, the Environmental Energy Policy Act of 2005. That is not to suggest that we ought to rest on our laurels, but doggone it, to suggest we have done nothing is simply a false statement, playing to the politics of today's emotion. This Congress moved in a substantial way, in a most significant bipartisan way in 2005. Now we ought to go steps further. I chastised the Administration last week for not funding appropriately, and this Congress failing to react to the necessary funding in the Energy Policy Act. I took on our new leader, Harry Reid, for not coming forth and finalizing appropriations bills. That is where all the research money is. That is where all the development money is. We are losing a year in time on all of these new technologies because we are not doing our homework, and not getting it done now. We ought to be held accountable for that. Madam Chairman, I am very excited about working with you on some of these tremendously important issues. There is no question they are of great import. But to sit here for political reasons and say we have done nothing, when we invest $3.5 billion a year in clean technology and environmental technology on a factor of five to one to the rest of the world. We are leading the world toward cleaner technologies, and we are the only Country who has the capability of doing that. For that, I am very proud. Thank you. Senator Boxer. Thank you, Senator. Let me just say, I did not hear anyone say we have done nothing. Honestly, I haven't, but that is how you interpret it. But I have to say, we are not here to vote our fears. We are really here to vote for solutions. I used a phrase in my opening remarks that I am an optimist about it. I think you are sitting next to a Senator who is an optimist. You and I have worked on cellulosics, and will continue. I think we will find that common ground. But I just have to say, we have done some things. I am glad you reminded us of what they are. But if you look at the studies that have been done internationally, the last one I saw out of the 56 largest emitters of carbon, they ranked them, we were No. 1. We know eventually, in 2009 we are expecting China to surpass us. They have done nothing, or next to nothing. But the argument is, since when do we wait for China to lead the world? That is wrong. We should lead the world. The point is, in this study we ranked 53 out of 56, just a few countries, I forget, they were Saudi Arabia, China and Malaysia had done less overall. Senator Craig. Madam Chairman? Senator Boxer. I will yield to you, because I want you to have a chance. Senator Craig. That is absolutely right, and it is consistent. We are 25 percent of the world economy today, and under today's technologies if you are 25 percent of the world's economy, you are going to be the largest emitter. We have lifestyles to prove it, and all of us live that lifestyle and none of us want to deny it to our citizens. I am not at all apologetic for that. I would suggest, and think I said it in my statement. We have the resources now to move the technology ahead to make the world a cleaner place, when few other nations of the world have it. Senator Boxer. OK. Well, I would just say that no one is suggesting destroying the American way of life. As a matter of fact, in my experience ever since I have been a county supervisor, as we have cleaned up our air, as we have cleaned up the drinking water, our quality of life has gotten better and better and better, and we have created jobs. I know we have some strong disagreements here, but today I am going to seize on the agreement we have on cellulosics and some other things. I also agree that many Senators have been heard over the years, and you point that out very clearly. But this is a different Senate. I mean, I would point out that there was an election, some retired, and some lost. It is important for me as the Chair, who does want to move affirmatively, and I hope in some ways you can help in some areas, to really see where people are today. I think this also is an area where there is more and more information coming out. Now, some of us embrace the information and say it is clear, and others attack the information. But this is not something that is a stagnant issue. But I do appreciate your eloquence on your side of things. I do hope that we can find those areas of common ground, and I believe we will. We have done it on Agriculture jobs, and we have done it on other things. I think we can do it here. I thank you very much. Senator Clinton, we are delighted to have you here and look forward to your remarks. OPENING STATEMENT OF HON. HILLARY RODHAM CLINTON, U.S. SENATOR FROM THE STATE OF NEW YORK Senator Clinton. Thank you very much, Madam Chairman. Obviously, we are going to have a lot of spirited discussions, but under your leadership I am not only hopeful, but confident that we will be able to reach a consensus about legislation that will set our Country on the course of leadership with respect to climate change that we should be exhibiting. I am sorry that Senator Craig is leaving, because I wanted to certainly express my very strong support for maintaining America's lifestyle. As I recall on my many visits to California, which has kept electricity use for 30 years, the lifestyle is pretty good. I think we can make progress, as has been put forth in this call to action by a number of organizations whose leaders, so far as I know, are not running for political office, who see this as an issue whose time has come. I, too, have supported cellulosic ethanol; signed onto the letter that Senator Craig circulated last year, and I am pleased that I hope we are going to get those loan guarantees. This is a big opportunity, certainly in my State, and in other places around the Country. But if we look at where we are, and even after the Energy Act, we are not making progress. In fact, emissions are still going up. That is another of those inconvenient facts that I think need to be addressed. So I am hoping that we can get beyond the usual rhetoric and try to find some common ground. I am confident that is exactly what our Chairwoman is attempting to achieve. From my perspective, if you look at the call to action, if it hasn't been done already, Madam Chairman, I would like to move to have the call to action that was issued by these distinguished American businesses made a part of the record. Senator Boxer. Without objection, so ordered. Senator Clinton. If you look at this, it makes several very important points. First, it unequivocally accepts the science. Now, this Friday, the Intergovernmental Panel on Climate Change, the so-called IPCC, will release its fourth assessment report. I hope that we can agree with our leaders of business and industry, and scientists around the world, that this is a problem whose time has come. Second, the call to action makes the point that standards drive technology. It is a chicken and an egg. There have been some positive developments because of the Energy Act, with much more investments in new technology and certainly looking for ways to incentivize the venture capital community, to be part of looking for solutions. But the Government must set the standards and lead the way. I have been struck, and I know you are having a hearing where we will have international representatives, next week, I think, or the week after. I have been struck by what happened in Great Britain, an economy and a culture similar to ours that decided to go into Kyoto. They not only have reduced emissions, increased conservation and efficiency, cleaned up their utility plant emissions, particularly, but they have created jobs. So I am one of those who believes that this is a win-win. It is good for our security. It is good for our environment, and it is good for our economy. Innovation is what will drive the responses we are looking for. It will also lead to increased American competitiveness. This is one of the areas that I am particularly interested in. I have been struck, despite some of the references to all the speeches that have been made, I have been struck in the debates we have had, principally around the Lieberman-McCain approach, which was the bipartisan approach on the floor of the Senate in the past several Congresses, at the level of pessimism that seemed to be expressed by some of my colleagues, as though we could not take on this issue because of dire and inevitable disastrous economic consequences. I reject that. We are the most innovative Nation in the history of the world. We have put our best minds to work. We can actually begin to make progress and lead the world again. My objection to the President taking us out of Kyoto is not that he decided to go out of an existing process, but that he didn't start any other process. The legitimate concerns about China and India were not addressed. I think those were legitimate to be raised. I hope that there can be, at the same time we are proceeding here on a national agenda, a reopening of a process that will include India, China and other fast developing nations who do have to be part of an international consensus about what we must do to deal with climate change. Unfortunately, we do not see much evidence of that from the President, although I was heartened that he did finally acknowledge the issue in the State of the Union, and he has continued to speak about technology and voluntary solutions, which are not adequate unless there is a framework of standards. So I do not underestimate the task that we face, but I am optimistic, as my Chairman is. What can we do? Well, there are a lot of things. We should be addressing the very clear challenge of how we create a market. I want to commend the eloquence of my colleague, Senator Carper, who has been working on this ever since he and I arrived in the Senate together. We can look to create a market through a cap and trade system. I thought for a moment Senator Craig was advocating a gas tax. I don't think that is what he meant, but certainly his argument led to that conclusion, not a bad idea, but hardly politically palatable at this moment. But if he wishes to introduce it, I will be very intrigued to follow that debate. We have obviously a lot of work ahead of us. What you are working is to bring us together to try to make progress. I am very grateful to you and look forward to working with you. Thank you. [The prepared statement of Senator Clinton follows:] Statement of Hon. Hillary Rodham Clinton, U.S. Senator from the State of New York I thank you for holding this important hearing and for doing it in such an open way. I think it speaks volumes about your leadership that you have made climate change your top priority for the Environment Committee and that you are starting by inviting all members of the Senate to come here to express their views. This is a complex issue, but to me, the bottom line is very simple: it's time to act to reduce the growing threat of global warming. While some scientific uncertainties remain, the picture grows clearer with each passing year. On Friday, the Intergovernmental Panel on Climate Change, or IPCC, will release part of its ``Fourth Assessment Report,'' which will summarize the current state of climate science. The document is being finalized this week, but here are some of the conclusions in the draft, according to press reports: <bullet> It is virtually certain the warming observed over the last 50 years cannot be attributed to natural causes. In fact, the report will note that the warming occurred during a time when the most significant natural climate forcing factors, such as volcanic activity, would have been expected to produce cooling rather than warming. <bullet> Temperatures are likely to rise by between 2 and 4.5 degrees Celsius over the coming century. <bullet> It is likely that in the coming century that heat waves will be more intense, longer-lasting and more frequent, and tropical storms and hurricanes are likely to be stronger. That's just a sampling from the draft, which will come out in final form on Friday. To me, the new report reinforces what I have believed for a number of years now: we know enough to know that it is time to act. We need to start on a path to slow, stop and reverse the growth of greenhouse gas emissions. It will require moving to new energy technology solutions. This is a daunting task. But I believe that inaction is the riskier course to both our environment and our economy. The longer we wait, the harder the transformation required by this challenge will become. Many U.S. business leaders now agree. Last Monday, a group of business and environmental leaders known as the U.S. Climate Action Partnership called on Congress and the President to act to address climate change, and released a set of principles and recommendations for how to go about it. The report they released, ``A Call for Action,'' is one of the most significant climate change policy document in recent years, both for what is says and for who is saying it. I urge all of my colleagues to spend the five minutes to read it, and I ask unanimous consent that it be entered into this hearing record. I was particularly struck by one paragraph in the report that I want to share with this committee: ``In our view, the climate change challenge, like other challenges our country has confronted in the past, will create more economic opportunities than risks for the U.S. economy. Indeed, addressing climate change will require innovation and products that drive increased energy efficiency, creating new markets. This innovation will lead directly to increased U.S. competitiveness, as well as reduced reliance on energy from foreign sources. Our country will thus benefit through increased energy security and an improved balance of trade. We believe that a national mandatory policy on climate change will provide the basis for the United States to assert world leadership in environmental and energy technology innovation, a national characteristic for which the United States has no rival. Such leadership will assure U.S. competitiveness in this century and beyond.'' Madame Chair, that is a statement endorsed by Alcoa, BP, Caterpillar, Duke Energy, Dupont, Florida Power and Light, GE, Lehman Brothers and PNM Resources. It's a diverse set of companies, many of whom have major investments in status-quo energy technology. Yet they acknowledge the imperative to act believe that it represents an opportunity to increase U.S. competitiveness. Madame Chair, I strongly agree. In October of 2003, we debated the question of limiting greenhouse gas emissions for the first time in the Senate, and I was struck by the pessimism that many of my colleagues expressed about dealing with the issue. Even some who conceded the need to act seemed resigned to failure or disastrous economic consequences of taking the issue on. As I said at the time, I reject the idea the America--the most innovative, creative nation the world has ever seen-- cannot cope with this problem. I strongly believe that if we put the right incentives in place, then we will drive American enterprise to tackle this problem. That is why I have been working to address climate change since I arrived in the Senate in 2001. I worked with you and others on legislation to limit carbon dioxide emissions, mercury and other pollutants from power plants. I traveled with Senate colleagues to the Arctic and to Alaska to see first-hand the dramatic impacts of climate change that are already occurring and to try to draw attention to the issue. I have proudly supported the bills put forward by Senators Lieberman and McCain in 2003 and 2005, and have joined as a cosponsor of the updated bill that they introduced in this new Congress. I expect they will describe it in some detail, so I won't go into details, but I think some of the key features of this legislation are that it sets strong targets, uses flexible, market-based mechanisms to get there, provides for investments in new energy technologies, and offsets impacts on low-income Americans. Senator Sanders and the chair of this committee have a proposal of their own. And we will hear from many others today about their ideas. As a Member of this Committee, I will work to pass a strong, effective, flexible bill from this committee. But Congress cannot succeed without support from the President. For six years now, he has refused to acknowledge the problem, and we have wasted valuable time as a result. Had the President made good on his 2000 campaign pledge to limit carbon dioxide from power plants, we would be much further along today. Last week, the President did finally acknowledge the issue in his State of the Union, but he did not offer a serious solution. Instead, the President continued to talk about technology and voluntary solutions. I agree with the President that technology is the key to solving this problem. But technology doesn't come out of a vacuum. We need to set the conditions that will drive innovation. I don't underestimate the task. Action by the United States alone cannot solve this problem, but American leadership is critical to bringing developing countries into the solution. Here at home, we will need to pursue a range of technologies and strategies. But we know what many of them are and it's time to get serious. Energy efficiency is an enormous and underutilized energy resource. It's the fastest, cheapest, and cleanest solution, and we ought to be doing more. California has done a particularly good job on efficiency, holding total electricity use flat for the last 30 years and the economy has boomed. We need to get serious about the next generation of clean coal technologies, particularly carbon sequestration. Our bill has strong incentives to promote more rapid deployment of this technology. There are many other examples. Another important priority is to change our tax system so that we quit subsidizing oil and gas and do a better job at promoting renewable energy and efficiency. I have proposed a Strategic Energy Fund that would do just that. Madame Chair, there are so many things we can and should be doing. And I am increasingly optimistic that this Congress will do them. One of the big reasons for that is that more and more people understand the issue. For that I think for that we all owe a debt of gratitude to Vice President Gore for his tireless and creative advocacy. In conclusion, I want to restate my belief that we must act and that we can do it in a way that makes economic sense. But global warming is much more than just an issue of competitiveness, of weighing the costs and benefits. This is a profound moral question that confronts us. With the knowledge we now possess, do we face our responsibility to act or do we continue to look the other way? Do we act or do we accept the risk of handing a degraded, and perhaps broken, planet to our children, our grandchildren, and their grandchildren? Do we act or do we pass on a world that many of us would not even recognize, with disappearing islands and shorelines, increased floods and droughts, and the extinction of plants and animals that cannot adapt to changes in climate? I think the answer is clear: it is time for us to act. Senator Boxer. Thank you so much, Senator. I am glad you raised the Prime Minister Blair of Great Britain issue, because a few of us went up to meet with the Prime Minister. He had invited Republicans and Democrats who head these various committees. He told us two things, Senator Clinton. One was that the Brits expected to surpass their Kyoto goals, and that jobs were being created at a rapid rate. One more thing I think would really interest you, and I think it would be a great proposal coming from you and others, and I would join you in that, is that he suggested a meeting, a smaller meeting of countries. In other words, not every country in the world, but the countries that really have to face this head-on, like China, India and America, among others, and the Europeans. So it is a smaller, more workable groups of nations where the United States could convene this kind of meeting. Because you are right. We have to deal with China. We have to deal with India, but we can't if we don't talk to them about this. So it is an idea that the Prime Minister had I thought maybe you would find interesting. I thank you for your contribution, the tone that you have set. I do hope that we will make progress. I feel after hearing what I have heard so far, that we will make progress, and that if this President will join with us, there is nothing that could stop us. If he doesn't, there will be a lot more of the work to do later, but I hope that he will join us. I thank you for your contribution today. I am happy to call on a new member of the committee. We are very pleased that she is on the committee, Senator Klobuchar. OPENING STATEMENT OF HON. AMY KLOBUCHAR, U.S. SENATOR FROM THE STATE OF MINNESOTA Senator Klobuchar. Thank you, Madam Chair. I am honored to be here today to talk with you about such an important topic. I am especially glad to be here at a time where this discussion has advanced beyond whether or not global warming exists, to what the solutions are to solve it. I respect the leadership of so many of my colleagues on this issue, and the work that is being done on a bipartisan basis, especially my friend, the new Senator Sanders, who showed his usual chivalry by allowing me to go first today. Thank you. As a member of this committee, as well as the Agriculture and Commerce Committees, I look forward to being very engaged in positive bipartisan solutions to global warming. These solutions should build on our efforts to develop homegrown energy sources, so we can move away from our dependency on foreign oil. Every day, Congress makes decisions that have a great impact on the American people and the people throughout the world. But our decisions on global warming may well be the ones that have the most profound impact on our future generations, and on the very fate of our Earth. Madam Chair, in Minnesota we love the outdoors and we take pride in the richness and beauty of our natural resources. We protect our forests and our prairies, our lakes and our rivers, and our diverse wildlife and abundant farmland. It is January now in Minnesota, and this past weekend the temperatures in my State were below zero. We have the Winter Carnival going on. Ice Box Day is in International Falls. We always welcome you to visit. But many people here might wonder why Minnesotans would be concerned if it warmed up a few degrees. Well, we are concerned. We are deeply concerned. We are concerned for ourselves and the rest of the world. We are concerned for the impact of global warming and the effect it is already having. Global warming is on the rise, with enormous consequences for our world and our economy. The year 2006 was the hottest year ever in this Country, capping a 9-year streak, unprecedented in the historical record. December in Minnesota felt more like October. Our ice fishing seasons are shorter and our skiers and snowmobilers haven't seen much snow. Worldwide, glaciers are rapidly melting. Just last week, it was reported that glaciers in the European Alps will be all but gone by the year 2050. Experts worry that within 25 years, there won't be a single glacier in Glacier National Park. We have seen record storms all across the world. Globally, sea levels have risen 4 to 10 inches over the past century. The frequency of extremely heavy rainfalls has increased throughout much of the United States. The impact is especially dire in Greenland and the Arctic regions. The temperature changes there have been the greatest, resulting in widespread melting of glaciers, thinning of the polar ice cap, and rising permafrost temperatures. In Minnesota, stewardship for the environment is a part of our heritage, and it has been an especially important part of preserving our economy. So global warming is an issue that strikes us close to home. That is why I want to mention several notable Minnesotans who are trying to draw attention to global warming and its impact on our planet. They are adventurer-explorers who have gone literally to the ends of the Earth, not just to pursue adventure, but also to pursue greater knowledge and an understanding of our place in the world for the benefit of us all. Will Steger is one of those Minnesotans, and he is a good friend of mine. He has led the first dogsled expedition to the North Pole and the first dogsled crossing of Antarctica. Next month, he embarks on a new expedition, a 4-month, 1,200-mile trip by dogsled through the Canadian Arctic. Later this year, he plans to kayak around masses of melting sea ice in Antarctica. I figure if he can do this, we can get a bipartisan bill. At age 62, why is Will Steger doing these things? It is to promote greater public awareness of global warming and the urgent need for action. He says his many journeys over the past four decades have shown him firsthand the effects of global warming. During the past year, he has been in practically every church basement and every community center meeting room in Minnesota to talk about this subject. A friend says that Will's new determination is rooted in sorrow. He is watching the places he loves melt away, literally. But Will's message is ultimately one of hope. He knows it is within our power to do something about it. Some people don't believe this is happening, he says, but the even bigger danger is that some think we can't do anything about it. Another notable Minnesota adventurer-explorer who feels the same way is Ann Bancroft. She was a member of Will Steger's North Pole expedition in 1986. She was also the first woman to cross both polar ice caps to reach the poles, and she was the first woman to ski across Greenland. In 2001, Ann and Norwegian adventurer Liv Arneson captivated millions of people worldwide as they fulfilled their childhood dream and became the first women to ski across Antarctica. Next month, she, too, is embarking on a new adventure. Ann and Liv are now preparing for an arduous 530- mile journey by foot across the frozen Arctic Ocean to the North Pole. Schoolchildren around the world will be able to follow them online with a website charting their daily progress, with videos, photos and audio postings. Ann Bancroft's mission, like Will Steger's, is to inspire action on global warming. She acknowledges that climate change is a major challenge that cannot be solved easily or overnight, but her goal is to prove that small steps add up. Finally, there is one more Minnesota adventurer, an outdoorsman I want to mention. He is not quite in the same league as Will Steger and Ann Bancroft, but he is in a class by itself. His name is Jim Klobuchar and he is my dad. For 30 years he was a sportswriter and columnist for the Minneapolis Star Tribune. He is also an avid mountain climber and hiker. Now in his 70's, my dad continues to operate an adventure travel club, that among other things takes people to what he calls the high places of the world, including the Himalayas, the Alps, and Mount Kilimanjaro. My dad has been to the summit of Mount Kilimanjaro five times, and he has told me that each time he goes, he sees clear and dramatic signs of global warming there. The snow crown is visibly shrinking. Where he once trekked through snow, it is now dry land, and it keeps getting worse. Three decades ago, he went to the village of Gletsch in the Swiss Alps. He stayed at a hotel right at the very edge of the famous Rhone Glacier. But this glacier has already retreated hundreds of feet since the time he saw it, and now tourists come to watch it melt in front of their eyes. The stakes here are as high as they get. The American people are hoping that this new Congress will at last confront the challenge of global warming. This is going to call for a bipartisan, ambitious, comprehensive effort on the part of this Congress and also for an enlightened response from the business community, which we are already starting to see with the call to action that the other Senators have mentioned. There is much work to be done, and many stakeholders to consider. My colleagues here in the Senate that have begun this work have advanced a number of thoughtful proposals. There are several key elements that I hope to see in the final result: first, strong limits on economy-wide emissions of greenhouse gases; some version of a cap and trade system; strong renewable fuel content standards for cars and trucks; incentives for both the manufacture and purchase of hybrid and flex-fuel vehicles; strong renewable energy standards for electricity generation so we can make greater use of wind, solar and other renewable energy sources; aggressive Federal support for research and development to build a new Manhattan Project for new energy sources. Finally, we need to stop the giveaways and special favors for the big oil companies. One of the best things that we can do to respond to global warming and to achieve energy independence is develop our home-grown renewable energy. We should be investing in the farmers and the workers of the Midwest, instead of the oil cartels of the Mideast. Like most Americans, and you Madam Chair, I am an optimist. I believe in the power and promise of science and technology and innovation when we need to solve a problem. I believe in the intelligence and the ingenuity of the American people when we are confronted with a challenge. I believe in the capacity of our democratic system of government to make the right decisions for the good of our Country. I think of the tremendous courage and determination of explorers like Will Steger and Ann Bancroft. With a single- minded focus, they overcame the most difficult hardships and obstacles imaginable to reach their destinations. That is the American spirit. I believe we, too, can reach our destination. We can turn the corner on the devastating effects of global warming. We can take giant strides toward energy independence. As you know, former Vice President and former Senator Al Gore has been a strong voice on the need to address the urgent challenges of global warming. He has stressed the importance of farsighted, forward-looking leadership to tackle this issue. He recalls the words of General Omar Bradley at the end of World War II, when America was confronted by the challenge of building a new post-war world. The General said, ``It is time we steered by the stars, not by the lights of each passing ship.'' We, too, must now steer by the stars. Like explorers Will Steger and Ann Bancroft, we must do so with the determination to surmount the obstacles in our way to reach our goal. Thank you very much. [The prepared statement of Senator Klobuchar follows:] Statement of Hon. Amy Klobuchar, U.S. Senator from the State of Minnesota Madam Chair, I'm honored to be here with you to talk about this important subject. I'm especially glad to be here at a time where this discussion has advanced beyond whether or not global warming exists but to what the solutions are to solve it. I respect the leadership of so many of my colleagues on this issue, the work that's being done on a bipartisan basis. Especially my friend, the new Senator Sanders who showed his usual chivalry by allowing me to go first today. Thank you. As a member of this committee, as well as the Agriculture and Commerce committees, I look forward to being very engaged in seeking positive bipartisan solutions to global warming. These solutions should build on our efforts to develop homegrown energy sources, so we can move away from our dependency on foreign oil. Every day, Congress makes decisions that have a great impact on the American people and people throughout the world. But our decisions on global warming may well be the ones that have the most profound impact on our future generations and on the very fate of the earth. Madam Chair, in Minnesota, we love the outdoors and we take pride in the richness and beauty of our natural resources. We protect our forests and our prairies, our lakes and rivers, our diverse wildlife and abundant farmland. It's January now in Minnesota--and this past weekend the temperatures in my state were below zero. We've had the Winter Carnival going on, Ice Box Days in International Falls--we always welcome you to visit. But many people here might wonder why Minnesotans would be concerned if it warmed up a few degrees. Well, we are concerned--we're deeply concerned. We are concerned for ourselves and for the rest of the world. We are concerned for the impact of global warming and the effect it's already having. Global warming is on the rise, with enormous consequences for our world and our economy. 2006 was the hottest year ever in this country, capping a nine-year streak unprecedented in the historical record. December in Minnesota felt more like October. Our ice fishing seasons are shorter and our skiers and snowmobilers haven't seen much snow. Worldwide, glaciers are rapidly melting. Just last week, it was reported that glaciers in the European Alps will be all but gone by the year 2050. Experts worry that within 25 years, there won't be a single glacier in Glacier National Park. We've seen record storms all across the world. Globally, sea levels have risen 4 to 10 inches over the past century. The frequency of extremely heavy rainfalls has increased throughout much of the United States. The impact is especially dire in Greenland and the Arctic region. The temperature changes there have been the greatest, resulting in widespread melting of glaciers, thinning of the polar ice cap and rising permafrost temperatures. In Minnesota, stewardship for the environment is a part of our heritage and it has been an especially important part of preserving our economy. So global warming is an issue that strikes us close to home. That's why I want to mention several notable Minnesotans who are trying to draw attention to global warming and its impact on our planet. They are adventurer-explorers who have gone--literally--to the ends of the earth. Not just to pursue adventure, but also to pursue greater knowledge and an understanding of our place in the world--for the benefit of all of us. Will Steger is one of these Minnesotans, and he is a good friend of mine. He has led the first dogsled expedition to the North Pole and the first dogsled crossing of Antarctica. Next month, he embarks on a new expedition--a four-month, 1,200- mile trip by dogsled through the Canadian Arctic. And later this year, he plans to kayak around masses of melting sea ice in Antarctica. I figure if he can do this, we can get a bipartisan bill. At age 62, why is Will Steger doing these things? It's to promote greater public awareness of global warming and the urgent need for action. He says his many journeys over the past four decades have shown him firsthand the effects of global warming. During the past year, he has been in practically every church basement and every community center meeting room in Minnesota to talk about this subject. A friend says that Will's new determination is rooted in sorrow. ``He's watching the places he loves melt away''--literally. But Will's message is ultimately one of hope: He knows it is within our power to do something about it. ``Some people still don't believe this is happening,'' he says. ``But the even bigger danger is that some think we can't do anything about it.'' Another notable Minnesota adventurer-explorer who feels the same way is Ann Bancroft. She was a member of Will Steger's North Pole expedition in 1986. She was also the first woman to cross both polar ice caps to reach the poles, and she was the first woman to ski across Greenland. In 2001, Ann and Norwegian adventurer Liv Arnesen, captivated millions of people worldwide as they fulfilled their childhood dream and became the first women to ski across Antarctica. And next month, she, too, is embarking on a new adventure: Ann and Liv are now preparing for an arduous 530-mile journey by foot across the frozen Arctic Ocean to the North Pole. Schoolchildren around the world will be able to follow them online, with a Web site charting their daily progress with videos, photos and audio postings. Ann Bancroft's mission, like Will Steger's, is to inspire action on global warming. She acknowledges that climate change is a major challenge that can't be solved easily or overnight, but her goal is to prove that small steps add up. Finally, there is one more Minnesota adventurer and outdoorsman I want to mention. He's not quite in the same league as Will Steger and Ann Bancroft. But he's in a class by himself. His name is Jim Klobuchar--and he's my dad. For 30 years he was sportswriter and columnist for the Minneapolis Star Tribune. He's also an avid mountain climber and hiker. Now in his 70s, he continues to operate an adventure travel club that, among other things, takes people to what he calls ``the high places of the world''--including the Himalayas, the Alps and Mount Kilimanjaro. My dad has been to the summit of Mount Kilimanjaro five times. And he has told me that, each time he goes, he sees clear and dramatic signs of global warming there. The snow crown is visibly shrinking. Where he once trekked through snow, it is now dry land. And it keeps getting worse. Three decades ago, he went to the village of Gletsch in the Swiss Alps. He stayed at a hotel right on the very edge of the famous Rhone Glacier. But this glacier has already retreated hundreds of feet since the time he saw it. And now tourists come to watch it melt in front of their eyes. The stakes are high as they get. The American people are hoping this new Congress will, at last, confront the challenge of global warming. This is going to call for bipartisan, ambitious, comprehensive effort on the part of this Congress and also for an enlightened response from the business community who are already starting to see what the call to action that the other senators have mentioned. There is much work to be done and many stakeholders to consider. My colleagues here in the Senate that have begun this work have advanced a number of thoughtful proposals. There are several key elements that I hope to see in the final result: <bullet> First, strong limits on economy-wide emissions of greenhouse gases, <bullet> Some version of a cap and trade system, <bullet> Strong renewable fuel content standards for cars and trucks, <bullet> Incentives for both the manufacture and purchase of hybrid and flex-fuel vehicles. <bullet> Strong renewable energy standards for electricity generation, so we can make greater use of wind, solar and other renewable energy sources. <bullet> Aggressive federal support for research and development to build a new Manhattan Project for new energy sources. <bullet> Finally, we need to stop to the giveaways and special favors for the big oil companies. One of the best things we can do both to respond to global warming and to achieve energy independence is to develop our homegrown renewable energy. We should be investing in the farmers and the workers of the Midwest instead of the oil cartels of the Mideast. Like most Americans and you Madam Chair, I'm an optimist. I believe in the power and promise of science, technology and innovation when we need to solve a problem. I believe in the intelligence and ingenuity of the American people when we are confronted with a challenge. And I believe in the capacity of our democratic system of government to make the right decisions for the good of our country. I think of the tremendous courage and determination of explorers like Will Steger and Ann Bancroft. With a single-minded focus, they overcame the most difficult hardships and obstacles imaginable to reach their destinations. That's the American spirit. I believe we, too, can reach our destination: We can turn the corner on the devastating effects of global warming, and we can take giant strides toward energy independence. As you know, former Vice President--and former Senator--Al Gore has been a strong voice on the need to address the urgent challenges of global warming. He has stressed the importance of far-sighted, forward- looking leadership to tackle this issue. He recalls the words of General Omar Bradley at the end of World War II, when America was confronted by the challenge of building a new post-war world. The general said: ``It is time we steered by the stars, not by the lights of every passing ship.'' We, too, must now steer by the stars. And like explorers Will Steger and Ann Bancroft, we must do so with the determination to surmount the obstacles in our way to reach our goal. Thank you very much. Senator Boxer. Senator, I just want to thank you. As one of the new members, you have added tremendously to this debate. I think what you are telling us is when we talk about our way of life, this is just the problem you are pointing out. Our way of life is threatened by global warming and you pointed that out. I thank you very much. Senator Sanders, followed by Senator Cardin. Welcome, Senator. OPENING STATEMENT OF HON. BERNARD SANDERS, U.S. SENATOR FROM THE STATE OF VERMONT Senator Sanders. Senator Boxer, thank you very much for holding this extraordinarily important hearing and for raising consciousness on one of the most severe problems faced by our planet in its history. As you know, I have introduced S. 309, the Global Warming Pollution Reduction Act. This legislation, I believe, is the boldest effort in Congress aimed at halting global warming. Some would say that this bill goes too far. I disagree. The reason for that is that if we are not strong, if we are not bold, if we are not aggressive, the planet that we are going to leave to our children, grandchildren and great-grandchildren will be a very different planet than we enjoy, and their quality of life will be greatly, greatly diminished. Madam Chair, I can go on about all of the different things that the best scientists in the world have told us about global warming. I could detail the scientific community's effort to get policymakers to pay attention. In that regard, I notice that some have said, ``Well, isn't it great; the President of the United States actually uttered the words `global climate change.' '' Frankly, I have to tell you that it is not so great. It is a bit of an embarrassment, when you have the entire world scientific community talking about the enormous problems, and finally we have the President beginning to acknowledge. My hope is that he will now be serious in trying to address it. Madam Chair, I want to suggest, as others have, that I see our ability, this Nation's ability to move forward against global warming as laden with huge opportunities. Like you, I do not accept the argument that if we are aggressive in combating global warming, it is going to hurt the economy. Quite the contrary, I believe that we have the potential to create millions of good paying jobs as we finally move this Country to strong energy efficiency, as we lead the world into sustainable energy. The bill that I have introduced, S. 309, is a bipartisan bill. It has 10 Democrats and 1 Independent. That was a joke. [Laughter.] Senator Sanders. We hope to make it a tripartisan bill. I do want to thank you, Senator Boxer, for being a co-sponsor, as well as Senator Kennedy, Senator Menendez, Senator Lautenberg, Senator Leahy, Senator Reed, Senator Akaka, Senator Inouye, Senator Feingold, and Senator Whitehouse for their support. This bill is economy-wide. It is science-based, and it has two main goals: one, to stabilize the atmospheric concentration of carbon at 450 parts per million; and two, to keep temperature increases below 3.6 F. To meet these goals, the legislation requires that emissions be reduced to a level that is 80 percent below 1990 levels by 2050, the same reductions as required by the State of California. S. 309 describe standards for both powerplants and vehicles. It also includes a requirement that 20 percent of the Nation's electricity come from renewable resources such as wind, solar, biomass and geothermal by 2020. Of course, there are other provisions, including one on cellulosic ethanol, but we don't have time to get into all of those details. The opportunities provided by S. 309 are quite literally revolutionary, but the concept is simple. Transforming our energy habits away from polluting fossil fuels to renewables will reshape our economy and make the United States a leader in clean and efficient energy technologies. Some people have said this morning, well, we don't want to change the American lifestyle. Well, you know what? I do. I think we have to end the disgrace that the vehicles that we are driving today get worse mileage per gallon than was the case 20 years ago. If our lifestyle is about driving cars to get 10 or 12 miles per gallon, as we destroy our planet, I say yes, I think the American people are, in fact ready to change that aspect of our lifestyle. A national requirement for 20 percent of our electricity to come from renewables by 2020 would increase our renewable power by nearly 11 times, compared to current levels. In the process of reducing our greenhouse gas emissions under this 20 percent requirement, more than 355,000 new jobs in manufacturing, construction, maintenance and other industries would be created. Now, I want to take this opportunity to thank not only my colleagues here in the Senate who have cosponsored this bill, but equally important, many, many environmental groups who also understand that we have to be very bold in addressing this crisis, among others, Friends of the Earth, Greenpeace, the League of Conservation Voters, National Audubon Society, National Environmental Trust, National Wildlife Federation, Natural Resources Defense Council, Physicians for Social Responsibility, Public Citizens, Sierra Club, Union of Concerned Scientists, USPIRG. I want to thank them, and the many others that I didn't support, for their support of this legislation. What would increased renewable energy mean for the average consumer? What would that mean? A 20 percent renewable requirement would, over the long run, reduce the bills our constituents receive every month. It is incredible to me. We in the State of Vermont--actually I think are doing better than any State in this Country--is moving to energy efficiency. Yet I just spoke yesterday with some of the experts in our State and they say that only, at most, 20 percent of the eligible sockets are using compact fluorescent bulbs, in the State that is leading the Nation. The potential to move just in that direction is extraordinary. Chairperson Boxer, let me also highlight another area where there is tremendous opportunity. That is the movement toward sustainable energy. We are making breakthroughs, but we have a huge way to go. I know that you appropriately want to see the Federal Government lead our society as we move forward. The potential for solar once we start producing solar panels to the degree that we should is extraordinary; the potential for wind; the potential for biomass; the potential for geothermal, it is all sitting there waiting to explode. In fact, what has happened for many years is that technology has gone forward, but the government has lagged behind the technology, behind the people. In my view, the people of this Country want to break our dependence on fossil fuels. They want to become more energy efficient, and they understand that we in fact can make huge breakthroughs and create a very significant number of jobs if we do that. Some have suggested earlier about the economic dislocation in beginning to combat global warming. I think the answer is, A, it is not true. If we are smart about it, we can create millions of jobs more than we lose in that transformation. But the second point is, what will it mean to the economy if we do not address this crisis? ``The answer is, according to Sir Nicholas Stern, former Chief Economist for the World Bank, what he said is if no action is taken in addressing global warming, we will be faced with the time of downturn that has not been seen since the Great Depression and the two World Wars.'' So Madam Chair, I think we have the American people behind us. I think they want action. I think S. 309 is a very good start and we look forward to working with you, with the Senate, and with the American people to see that legislation passed. Thank you very much. [The prepared statement of Senator Sanders follows:] Statement of Hon. Bernard Sanders, U.S. Senator from the State of Vermont Good morning Chairman Boxer, Ranking Member Inhofe. As you know, I have introduced S. 309, the Global Warming Pollution Reduction Act. This legislation is the boldest effort aimed at halting global warming. Some would say that the bill goes too far; I say it doesn't go far enough. This is because we aren't talking about your run of the mill problem--we are, in the most literal sense, talking about the future of the planet. Madam Chairman, I could go on and on about all of the different things the best scientists in the world have told us about global warming--I could detail the scientific community's efforts to get policy-makers to pay attention; I could talk about U.S. Government scientists being silenced because their research wasn't in line with the Administration's denial of global warming; I could talk about the melting of Arctic sea ice decades earlier than previously expected; and of course I could talk about the changes in agriculture and water systems, sea level rise, new threats to public health such as increased incidence of infectious diseases like West Nile virus and malaria, and the extreme weather patterns, including more intense hurricanes, that we are told will accompany global warming, but there just isn't enough time for me to give each of these topics the attention they deserve. So instead, I want to focus on the tremendous opportunity that is currently in front of us as we set about to tackle the largest environmental challenge of our time. To do so I will use some of the provisions of the legislation I introduced and that is being cosponsored by the Chairman of this Committee, Senator Boxer, and by Senator Kennedy, Senator Menendez, Senator Lautenberg, Senator Leahy, Senator Reed, Senator Akaka, Senator Inouye, Senator Feingold, and Senator Whitehouse. My bill is economy-wide, science-based, and has two main goals: (1) To stabilize the atmospheric concentration of carbon at 450 parts per million, and (2) To keep temperature increases below 3.6 degrees Fahrenheit. To meet these goals, the legislation requires that emissions be reduced to a level that is 80 percent below 1990 levels by 2050--the same reductions as required by the state of California. S. 309 describes standards for both power plants and vehicles. It also includes a requirement that 20 percent of the nation's electricity come from renewable resources such as wind, solar, biomass, and geothermal, by 2020. Of course, there are other provisions, including one on cellulosic ethanol, but I won't get into any of those details. The opportunities provided by S. 309 are quite-literally revolutionary, but the concept is simple: transforming our energy habits away from polluting fossil fuels to renewables will reshape our economy and make the United States a leader in clean and efficient energy technologies--creating millions of good paying jobs in the process. Let me go into some detail here. A national requirement for 20 percent of our electricity to come from renewables by 2020 would increase our renewable power by nearly 11 times compared to current levels. In the process of reducing our greenhouse gas emissions under this 20 percent requirement, more than 355,000 new jobs in manufacturing, construction, maintenance, and other industries would be created. In fact--and this is one of my favorites-- truly putting our minds to developing renewables could create almost twice as many jobs as producing the same amount of electricity from fossil fuels! The addition of these jobs, a net increase of roughly 157,000, is expected to generate an additional $8.2 billion in income and $10.2 billion in gross domestic product. We create more jobs, support the American economy, AND reduce air pollution that threatens our health and the future of the planet--why would anyone be against that? But what would increased renewable energy mean for the average consumer, since we know that the growing income inequality in our country has put more and more pressure on our working families as they try to get by? A 20 percent renewable requirement would, over the long run, reduce the bills our constituents receive every month. More specifically, by 2020, total consumer savings from lower energy prices would be $49.1 billion, with people seeing an average annual reduction of 1.8 percent. Every dollar that doesn't have to be spent on energy can be put toward something else. Chairman Boxer, let me highlight another area where there is tremendous opportunity--energy efficiency. Using what we have in a smarter way seems so obvious, and yet, the commitment to efficiency, whether it be in our transportation or in our homes, isn't nearly what it should be. We all know that efficiency in our transportation sector is an utter embarrassment. China, Japan, the European Union, and Australia all leave us in the dust. My bill implements the vehicle emissions standards already in place in California and adopted by many other states, including Vermont. While the auto companies could meet this requirement through increased CAFE standards, that is not the only way. Of course, instead of focusing on making cars more efficient, most of the automakers are focusing their efforts on beating the California law in court. What a waste of their time. When it comes to our homes, efficiency measures are two-thirds less expensive than generating and delivering electricity. Just a quick example: Energy Star compact fluorescent lights use \2/3\ less energy than standard incandescent bulbs but provide the same amount of light, last up to 10 times longer, and can save a person $30 or more in energy costs over the lifetime of each bulb! In fact, if we could change 50 percent of all lighting in the country to compact fluorescent bulbs, consumers could save $9 billion. And, I haven't even mentioned how efficient lighting reduces greenhouse gas emissions: simply by putting one compact fluorescent light bulb in every home across the country, we would prevent the equivalent amount of emissions as would be produced by 800,000 cars. It is clear that responsibly addressing global warming will not cause us economic ruin, as some like to suggest, but that it will provide for new jobs, enhance efforts geared toward greater energy efficiency, and will reduce our energy costs if we get serious about using renewables instead of fossil fuels. In fact, it is a lack of bold vision that will financially cost us. In October of 2006, Sir Nicholas Stern, a former chief economist of the World Bank, turned the old economic arguments against taking action on climate change on their head. In a report to the British government, he writes that bold action to combat the threat of global warming will in fact save industrial nations money and that inaction could cost between 5 to 20 percent of global gross domestic product. Let me repeat that: FAILURE to act to boldly curb global warming is what will cost us--and it won't be cheap. Speaking to the issue in no uncertain terms, the report states, ``If no action is taken we will be faced with the kind of downturn that has not been seen since the great depression and the two world wars.'' Madam Chairman and all of my colleagues, grassroots support for action on global warming is clear. Not only do we know it from our interactions with our constituents, we also know it because over 300 mayors have committed their cities to meeting the standards described in the Kyoto Protocol. In fact, with over 54 million citizens represented, the U.S. Mayors Climate Protection Agreement provides irrefutable evidence that everyday citizens are demanding bold action. Additionally, a group of northeast states have already implemented a regional effort to reduce greenhouse gas emissions--the Regional Greenhouse Gas Initiative. And, we all know that the state of California has recognized the need to act on global warming and is moving forward with a tremendous program. Everybody is moving forward--isn't it time that the federal government be involved? To be quite frank, while I appreciate today's forum, I must say that the time for talk is over--it is time for bold federal action. The American public expects nothing less. Senator Carper. [assuming chair.] My colleague, Senator Boxer had to slip out of the room for a moment. Senator Cardin, while I am tempted to call up the legislation that Senator Alexander and I introduced, I will forego that temptation. Senator Cardin. You probably don't have the support yet. You might want to wait for a few more members. Senator Carper. That might be smart. Senator Sanders, thank you very, very much not just for your words, but for your voice and emotion and conviction that you bring to this debate. Thank you. Welcome. Senator Cardin. OPENING STATEMENT OF HON. BENJAMIN L. CARDIN, U.S. SENATOR FROM THE STATE OF MARYLAND Senator Cardin. Mr. Chairman, thank you very much. I thank our leadership on this committee for holding these hearings on global warming. I think it is extremely important. I am going to ask that my entire statement be made part of the record, and some of the provisions that are in there. Senator Carper. Without objection. Senator Cardin. For the sake of our Nation, for our security needs, for our economic needs, for our environmental needs, we need an energy policy in America. We need an energy policy that recognizes that we need to produce enough energy in our own Country to meet our needs. We need an energy policy in America that weans us off of fossil fuels. We certainly need an energy policy in this Country that recognizes the environmental risks that we all sustain. So on security, you all know 65 percent of our oil is imported. We use petrodollars, the consumers of America are financing a lot of countries with policies that are very unfriendly to America. For our economy, when OPEC decides to change the amount of oil production or price, it has a direct impact on our own economy. On our environment, we know the risks of global warming. They are real. We need to do something about this. In the 109th Congress, when I was in the other body, I introduced legislation that addressed an energy policy for America. It established a goal to be 90 percent independent of foreign energy sources within 10 years, to be 90 percent independent of fossil fuels within 20 years. I also believe it is reasonable for us to set goals by the year 2030 to reduce our greenhouse gases by 26 percent. Madam Chairman, I am going to ask that I make available and put in the record two programs that were on Discovery Channel. Discovery Channel happens to be headquartered in the State of Maryland. They had a program, Addiction to Oil, which Thomas Friedman presented. I think it is very compelling about our need to become energy independent and to rid ourselves of imported oil. Tom Friedman points out that to be green is to be red, white, and blue. I think that is an important message for our Country. The second Discovery program I am going to be asked to made part of our record deals with global warming, by Tom Brokaw, and again points out the real risks to our Country and to the world that global warming presents. Senator Boxer. [resuming chair.] Senator, we will put them in the record. Senator Cardin. Thank you, Madam Chair. [The referenced documents are retained in the committee's file.] Senator Cardin. Global warming, as you know, deals with the loss of ice in the Arctic. It deals with the sea level rise, water temperature increases, and extreme weather. I am going to talk a little bit about my State of Maryland, the people that I represent in the U.S. Senate. Maryland is particularly vulnerable. Twelve percent of our land has been designated in the national flood insurance program as special flood hazard areas. That represents 68,000 homes and buildings in the State of Maryland, over $8 billion in assessed value. Maryland is the third most vulnerable State in our Nation to flooding. Sea level rises in Maryland has grown twice the world average. We are vulnerable. I have a few slides that I am going to share with the committee. The first that is being shown shows the impact of what would happen if we have a 1-meter increase in sea level. Just to make that clear, that is not that unusual. The next slide will show that within a relatively brief period of time, we actually have increased the sea level by that amount. That was done in a period of 100 years, but we know that it is increasing at a much greater rate today. So we are at risk in Maryland. All of our areas around the sea, around the water are being literally uninhabitable if we do not deal with global warming. I have a few slides that show some history in our State. We used to have an island called Sharp's Island. Sharp's Island was a rather large entity, and consisted of over 700 acres. Today, it is down to less than 100 acres of land. This land is in the bay and will be gone in the not too distant future. James Island, in the mid-19th century, you see the outline of James Island. Today, it is less than one-third of its size 150 years ago. When we look at what has happened to our wetlands in Maryland, this slide will show you that in a little over 50 years, how much of the wetlands we have lost in the Blackwater Wildlife Refuge, which is critically important to many species of life, including 20 different species of duck, which my colleagues like to come to the Eastern Shore and hunt. Well, if we are going to be able to have the diverse wildlife population, we need wetlands and we are losing our wetlands as a result of sea level increases. We have one inhabitable island that remains in Maryland, Smith Island. Thirty percent of that land has been lost since the mid-19th century. It is reported that Lloyds of London is the only insurance available for the residents of Smith Island because of the uncertainty of their fate, and the residents of Smith Island cannot afford Lloyds of London prices. This is an issue that is affecting the people of Maryland. It is affecting their lives today. What do we need to do about it? We need a comprehensive commitment. You can't do it by one issue. You need a comprehensive solution. It starts with conservation, and conservation starts with transportation. Yes, we need to at least double the CAFE standards. It is interesting that when the Model T came on, it got 25 miles per gallon. Our CAFE standards today are 27.5 miles for passenger cars. We need to do a lot better. Replacement tires, yes, we have done good with low resistance for tires for new cars. We need to make that replacement for the older cars that are out there. We need to deal with public transportation and smart growth, including pedestrian and bike paths. We need to deal within our homes with energy conservation, the Energy Star program, and weatherization programs. We need to deal with our commercial buildings, tax incentives for green building designs and government must be a leader in the way that it operates its business, including the way it purchases vehicles. Employers need to be encouraged to use more telecommuting. All that can conserve energy and that must be our start. But we also must deal with renewable energies and developing much more aggressively renewable energies. We need requirements on our utilities to produce a larger part of their electricity from renewable sources. We need to use the biograins more effectively. Madam Chairman, this is biodiesel. It is produced in Maryland by a person who on his own without any government help decided to do something about our energy and environmental needs in the lower Eastern Shore, James and Virginia Warren. They have produced biodiesel. If you smell this, it smells like I was in the movie theater and with my grandchildren over the weekend. It smells very pleasant, very clean. It can help the solution on dealing with global warming and energy issues. The problem is, it is hard to find a diesel pump that has biodiesel, if you want to use biodiesel fuels. There are so many diesel vehicles the government owns, and why we are not using biodiesel is beyond me. So there is a lot more that we can do just in the simple area of dealing with biodiesel. We need to look at wind. We need to look at solar. We need to increase the Federal research dollars that go into energy independence. We know that there is promise with hydrogen powered cars and nuclear fusion technology. But it is not here today, and we know that unless we invest the money for the future, it won't be here for decades to come. Last, Madam Chairman, I suggest we have blue ribbon commission, that we enact changes in law and that we have a commission that monitors it to see that we make the adjustments necessary so that we do accomplish our goal of being energy independent, fossil fuel independent, and more gentle to our environment. For the sake of our security, for the sake of our economy, for the sake of our environment, we need to move forward now on these issues. We cannot wait any longer. I applaud you for holding these hearings. [The prepared statement of Senator Cardin follows:] Statement of Hon. Benjamin L. Cardin, U.S. Senator from the State of Maryland For the sake of our security, economy and environment, America needs an energy policy that is independent from foreign energy sources and weans America off of fossil fuels. America's current energy policy is simply unsustainable. We all know the security issues: The U.S. imports over 65 percent of our oil from foreign countries--many of them openly hostile to our country. American consumers are literally financing extreme anti- American groups that we fund through our oil dollars. Our petroleum habit creates national security risks and causes long-term energy price instability for American consumers--a price or supply change by OPEC can directly affect our economy. We are currently spending billions of dollars a year to subsidize oil companies, while their profits have increased dramatically--Exxon Mobil is on track to break its own record-breaking $36 billion dollar profits from 2005. America's energy policy has also had a serious impact on our economy: Five years ago, the average American family spent $3,300 on gasoline, home heating, and electricity. Average U.S. households paid nearly $5,000 to power their homes and vehicles in 2006--32 percent greater than just 2 years ago. Households with incomes under $15,000-- about one-fifth of all households--spent about one-tenth of their income in 2006 on gasoline. Leading economists noted after the release of monthly economic reports in September, 2006, that energy prices are rising much faster than wages and becoming ``increasingly difficult for consumers to absorb.'' While each of these is important, this hearing is about global warming, and about how our energy policy can deliver reductions in global warming. I introduced legislation in the 109th Congress with many rigorous goals to get us on the right path, but there are many ways to accomplish these goals. At its heart, America's energy policy needs to address energy independence, fossil fuel reduction, and global warming. It is reasonable to establish the goal of meeting 90 percent of our energy needs from domestic sources by 2017. America imports 30 percent of its overall energy needs, but imports over 13 million barrels of oil each day--more than 65 percent of U.S. oil needs. The majority of our imported energy is oil, and the largest consumption of oil in the U.S. is for transportation. 84 percent of U.S. imported energy in 2005 was petroleum, representing 28.9 quadrillion Btu. U.S. transportation consumption accounted for 28.1 quadrillion Btu, mostly in petroleum. It is reasonable to establish a goal to meet 90 percent of our energy needs from non-fossil fuel sources by 2027. Fossil fuels--coal, oil, and natural gas are America's primary source of energy, making up over 70 percent of our electricity generation. Fossil fuel-fired electricity generation is the single greatest source of air pollution in the United States, and power plants are the leading U.S. source of carbon dioxide emissions--a primary contributor to global warming. U.S. conventional oil production peaked in 1970, and only produces enough oil to meet 35 percent of its oil needs. We have an abundance of coal, but we lack the technological ability to use coal in an environmentally secure manner. It is reasonable to establish the goal of reducing our emissions of global warming-causing greenhouse gasses by 26 percent by 2030. With only 5 percent of the world's population and 6 percent of the world's land area, the U.S. is the No. 1 emitter of carbon dioxide in both tons and in per capita emissions, in the world. Greenhouse gasses are emitted primarily by the burning of fossil fuels and the clearing of forests. Carbon dioxide, along with other heat-trapping gasses, remain in the atmosphere for decades or even centuries, and have been melting ice, making Earth's water warmer, and increasing extreme weather events, such as higher-intensity tropical storms. By 2012, cuts in greenhouse-gas emissions required under the Kyoto Protocol will be swamped by emissions from new coal-fired plants built in China, India, and the United States. These 3 countries are expected to emit an extra 2.7 billion tons of carbon dioxide. The Discovery Channel has produced a couple of stellar programs outlining our global warming problems: Addiction to Oil--with Tom Friedman, and Global Warming--with Tom Brokaw. I'd like to introduce these programs into the record at this point. Global warming poses an especially serious threat to my own State of Maryland, with a large part of our State consisting of low-lying coastal areas that would be inundated if global temperatures keep rising. Global warming pollution in Maryland is up by 55 percent from 1960. More than 12 percent of land in Maryland is designated under the National Flood Insurance Program as a Special Flood Hazard Area. An estimated 68,000 homes and buildings are located within the floodplain in Maryland. These structures represent nearly $8 billion in assessed value. According to 2005 report of the Maryland Emergency Management Agency Maryland is the 3d most vulnerable State to flooding and has the 5th longest evacuation times during a tropical storm event. Tide gauge records for the last century show that the rate of sea level rise in Maryland is nearly twice the global average. Studies indicate that this rate is accelerating and may increase to two or three feet along Maryland's shores by the year 2100. The effects are already evident: about a third of the marshes at Blackwater Wildlife Refuge on Maryland's eastern shore have been lost to sea level rise over the past 70 years. Smith Island, the only inhabited island community in Maryland and the subject of a recent documentary on global warming, has lost 30 percent of its land mass to sea level rise since 1850. Lloyds of London is reportedly the only company that will insure homes on Smith Island and the premiums and high deductibles are unaffordable to most residents. Allstate Insurance Corp., one of our largest insurers, recently announced that it will stop writing new homeowners' policies in coastal areas of the State, citing concerns that a warmer Atlantic Ocean will lead to more and stronger hurricanes hitting the Northeast. Hurricane Isabel in 2003, which was a modest hurricane, underscored how vulnerable Bay communities are to coastal flooding from storm surge. Maryland's premier beach resort--Ocean City--representing more than $4 billion in public and private investment--remains especially vulnerable to sea level rise unless our beach renourishment projects are continued and expanded. The combination of sea-level rise and warmer temperatures as well as increased salinity levels could have tremendous ecological impacts on the Chesapeake Bay. Clearly sea level rise will have devastating effects not only on the hundreds of thousands of Marylanders who live in low lying areas but on our economy, our environment and our quality of life. Our first goal must be to conserve energy. This conservation effort needs to start w/transportation. The U.S. must increase Corporate Average Fuel Efficiency (CAFE) standards significantly over the next 10 years. The Ford Model T got 25 mpg, yet our current CAFE standard calls for 27.5 mpg for passenger cars, and 21.6 mpg for light trucks. ``In 1981, the last time gas prices breached $3, adjusted for inflation, the average car got 21 miles to the gallon. Jump ahead 24 years, a period when there have been huge advances in automotive fuel efficiency, and the average passenger vehicle on the road gets . . . 21 miles to the gallon.''--CNN 9/14/05 Under Federal fuel-economy standards, automakers equip new vehicles with tires that have a lower rolling resistance, which leads to higher fuel efficiency. By requiring replacement tires to be as efficient as new car tires, we could rapidly begin gasoline savings, and save more than 7 billion barrels of oil over the next 50 years. These changes would particularly aid lower-income drivers, who are more likely to drive used cars with replacement tires. There is no one solution to our energy problems, other conservation examples include increasing Energy Star funding, and adding solar water heaters to the list of products that wear the Energy Star label. The Energy Star program brings consumers energy efficient choices in appliances, light bulbs, and other goods. This vital program helped Americans save enough energy in 2005 to prevent greenhouse gas emissions equivalent to 23 million cars--while saving $12 billion on utility bills. According to the DOE, commercial buildings account for 35 percent of America's electricity consumption. An upfront investment of 2 percent in green building design, on average, results in life cycle savings of ten times that upfront investment. I would increase the Energy Efficient Commercial Buildings deduction--to encourage business owners to look forward and plan ahead by using buildings that will save money and electricity over the long run. Transportation costs accounted for 58 percent of Federal energy consumption in fiscal year 2002. The Federal Government would decrease energy costs by both requiring that the Federal fleet exceed CAFE standards and requiring that at least 10 percent of the motor vehicles purchased by an Executive agency in any fiscal year will be high- efficiency vehicles or hybrid electric vehicles. America's energy policy must encourage energy efficient communities and behavior. Congress should encourage smart growth through funding transit-oriented development corridors with upgrades in transit facilities, bicycle transportation facilities, and pedestrian walkways. America should promote energy efficiency in all communities by increasing funding for weatherization assistance. In the 27 years since its founding, DOE's Weatherization Assistance Program has served over 5.3 million low-income families. Low-income families spend an average of 14 percent of their annual income on energy costs, while other households spend only 3.5 percent. Weatherization reduces greenhouse gas emissions by one ton per weatherized home, and decreases U.S. energy consumption by the equivalent of 15 million barrels of oil every year. Congress should create Federal tax incentives for employers who provide telecommuting to their employees. Telecommuting has successfully reduced both transportation and energy use, and the EPA reports that if just 10 percent of the nation's workforce telecommuted just 1 day a week, Americans would conserve more than 1.2 million gallons of fuel per week. The U.S. needs to enact mandatory, tradable emissions caps. Not only is this a policy that enjoys the broad support of businesses, environmental groups, scientists, and Members of Congress, it is the right thing to do for our Country's future, and for the well-being of our children and grandchildren. America must make renewable energy commercially viable, and make the up-front investment in renewable energy infrastructure that will bring renewable energy to the marketplace. The U.S. needs a Federal renewable portfolio standard to ensure consumer access to renewable energy, by requiring electric utilities to get a larger portion of the energy they provide to Americans from renewable sources. America needs to find new ways to move renewable energy--by creating electricity transmission lines designed to carry electricity from renewable sources. Congress must make the renewable energy production credit permanent, to provide long-term incentives to increase private infrastructural investment in the production of renewable energy. America has lagged behind Europe in using biodiesel as one way to reduce our use of oil. Maryland Biodiesel, owned by James and Virginia Warren, is the only plant of its kind in the State, and will use plant and animal oil byproducts that are currently thrown away. More than 600,000 cars capable of running on alternative fuels have been produced each year since 2000. The U.S. must dramatically increase the Federal commitment to alternative fuels and vehicle technology programs, and increase the use of alternative fuels in Federal and State fleets, by developing biofuel plants in every region of the country, and speeding development of standards that are needed to promote alternative fuels use. We need to increase the renewable energy use and energy efficiency of the Federal Government--the Federal Government should lead the country in energy efficiency. All new Federal buildings should be required to live up to green building LEED (Leadership and Energy in Environmental Design) standards, set by the United States Green Building Council. Energy used in buildings in fiscal year 2002 accounted for 38 percent of the total Federal energy bill. Total Federal buildings and facilities energy expenditures in fiscal year 2002 were $3.73 billion. This Federal investment in green building will save the treasury millions while reducing overall electricity consumption. The Federal Government should ensure that at least 20 percent of the electricity consumed by non-defense activities of the government will be generated from renewable sources or zero-emission fossil fuel energy sources by 2017. America should establish a program of grants, low-interest loans, and loan guarantees for the commercialization of new renewable energy and energy efficiency technologies. The U.S. must dramatically increase Federal energy research and development commitments. Increasing America's energy research dollars will help bring technologies that hold great promise but are not feasible today--such as hydrogen powered automobiles, cellulosic ethanol, and nuclear fusion energy--to the marketplace faster. Congress should implement the changes suggested by the National Academy of Sciences' Report, Rising Above a Gathering Storm--to ensure U.S. competitiveness in research and scientific development, including marked increases in The Department of Energy's R&D funding. Finally, we should create a Blue Ribbon Energy Commission, which would meet every 2 years starting in 2008, to evaluate our progress in efforts to become energy independent and the impact of provisions of new policy, and to recommend additional changes to be made in reports to Congress--so that our energy policy remains focused on our 3 goals of energy independence, fossil fuel independence, and the reduction of greenhouse gas emissions. For the sake of our security, economy and environment, America needs a comprehensive energy policy that is independent of foreign sources and weans America off of fossil fuels. Senator Boxer. Senator, I just want to thank you very much for your encouragement and your ideas. They make a lot of sense. I was just recently reading an article where insurance companies are very reticent now to come into the coastal areas. This is the private sector telling us very clearly they are worried. So, so many things are coming together, as Senator Carper pointed out, that just reiterate to us that maybe we are just the last ones to get on board here. But I think we are going to do it. Senator Whitehouse, I know you have been all morning at Judiciary. I am so glad you made it back, just for the sake of those in the audience and those who are still here with me, those that deserve a prize. Senator Carper, you deserve a prize. After you speak, Senator Whitehouse, I believe that is the last member of the committee who planned to speak. It would bring us to I believe 14 or 15 Senators. I could go back and check. We have a panel that is supposed to start at 11:45, with Senators Bingaman, Feinstein, Kerry and Biden. If any of those arrive earlier, I will just sit here, and as soon as they come, we will take their testimony. We are getting some testimony to place in the record that also is very important testimony, bipartisan testimony which I will read just little parts of. I don't know how many people are aware that Senator Whitehouse has been a tremendous leader in the environment of his State, particularly in protecting the health of children. So we are most honored that you are on the committee and we welcome you, Senator. You have 10 minutes. OPENING STATEMENT OF HON. SHELDON WHITEHOUSE, U.S. SENATOR FROM THE STATE OF RHODE ISLAND Senator Whitehouse. Thank you, Madam Chair. I am thrilled to be here. I applaud you for holding this hearing. I am a very proud cosponsor of your farsighted legislation. I hope and expect, truly, that today's hearing marks a turning point in the energy and direction of our effort to address this critical problem. I thought I would speak very locally. If left unchecked, climate change will clearly affect communities around the globe, but I would like to draw particular attention to the way it will affect Rhode Island. There is no place more local than the street where you live. So I thought I would lead with this photograph, which is taken of a cherry tree on Adelphi Avenue outside of my house in Providence. It was taken on January 7. You will notice that the tree is starting to bud and in a couple of places has gone into full bloom. Now, that may seem like an anecdotal aberration, and clearly it is the first time in the 20 years we have lived in the house where that tree has bloomed in January. But it refers to a trend that the orchard owners in Rhode Island have described and noted, that spring blooms come earlier every year, earlier and earlier. So an aberration, yes, but we know these sorts of temperature aberrations are themselves indications of global warming. The heart of Rhode Island, of course, is Narragansett Bay. It is our greatest natural resource. It is our environmental prize. Here, we see what has been happening to water temperatures in Narragansett Bay since 1955. They have been climbing steadily. The mean annual surface water temperatures, as you see, has increased 2.5 degrees in that period, and actually that understates the effect because in the winter the temperature has increased 4 degrees in the last 20 years. As the scientists at the University of Rhode Island who track this stuff have recognized, 4 degrees in that environment is a full ecosystem shift, so it makes an enormous, enormous difference. One of the differences that it makes is illustrated in this photograph. This is a photograph of Greenwich Bay, which is a sub-basin of Narragansett Bay, in the summer of 2003. The warm water in the bay led to stratification, which trapped the decaying organic manner at the bottom of the bay so that oxygenation did not occur and these fish asphyxiated. They suffocated swimming in their native waters as a result in large measure of the warming that we are seeing. It's not getting better. In fact, it is predicted to get a good deal worse. From 2010 to 2039, depending on the emissions, the scenario could lead to another 3-degree increase, another 7-degree increase by 2069, and by 2099, a 12-degree increase at the higher emissions levels. At lower emissions level, it is still a problem, but it is a substantially lesser one. Now, at the higher emissions levels, Rhode Island will become a State that has the present weather patterns of the Carolinas. It is interesting, to a fellow who lives in Newport, because Newport was first inhabited as a summer resort by merchants from the Carolinas, who came north to enjoy the cool waters of Narragansett Bay and Rhode Island, and the cool summer air. Now here it is, 100 and some years later, it looks like the Carolina weather will be following them there, and we will no longer be a refuge from such temperatures. Obviously, ecosystem changes of that nature have not only a dramatic effect on the environment, but also the economy. In northern New England you would see an end to the ski industry, and throughout New England you could very well lose our famous foliage. One of the effects of all this, Madam Chair, is the increase in water level. We are seeing it on a small scale already in Rhode Island. This is the Newport Harbor tide chart. It shows the increase here in the main sea level to this point, and then it extrapolates forward the sort of increase that we could see. It is happening slowly right now, but it is projected to increase. I would note that the projections do not incorporate the nightmare scenario that Vice President Gore laid out in his Inconvenient Truth. If that were to take place, if the Greenland ice cap were to melt and the sea water levels were to rise consistent with the presentation Vice President Gore makes, you would start to see some very significant changes in our Ocean State. This is downtown Providence as it exists now. Here is our central business district. Here is Brown University. Here is what becomes of it with a 20-foot increase. The downtown business district is gone. There is our new mall, where my daughter loves to shop. Gone. Here is the AMTRAK rail and the train station. Gone. Our capitol building is on famous Smith Hill, on a high promontory, so the capitol at least will survive, but the business district where I worked, here is the Federal court where I practiced as United States Attorney. Gone. If you turn to other Rhode Island landmarks, this is the famous Newport Harbor. The historic waterfront through here, the ballfield where the Newport Gulls play down here, historic Trinity Church right here, an astonishing resource for our State and a great piece of history throughout this photograph, old buildings, a concentration of history that is really remarkable, and there is what happens. Completely inundated, completely submerged and completely lost. Finally, even bedroom communities can be hit pretty hard. This is a lovely bedroom community in Rhode Island called Barrington. As you can see, there is a school here and many houses through the dappled neighborhood lanes. In the event of the sort of rise in water level the Vice President has talked about, it is all gone, Madam Chair. It is all submerged. So the stakes that we are talking about are very, very high. The economic effect, the environmental effect, and the long term welfare of our Country, particularly my State, are very, very much implicated in these hearings. The last point I will make is that, as anxious as we may be about these potential consequences, there is real hope by changes in public policy. Just in Rhode Island, the environmental community gathered together and they charted different outcomes based on public policy decisions that were made in Rhode Island, and how they would affect the tons of carbon released by Rhode Island, which of course connects directly the global warming and climate change and to the rise in the oceans. What you see is that at the top line, if we did nothing there is a very, very substantial gap over the existing policies that are already in effect in Rhode Island and are already driving our carbon emissions to level, and indeed decline a little bit. Indeed, policies that are presently under consideration could drop it further, to this line. Ultimately, here is the green line of where we could end up. This is a significant gap and it is the kind of gap that we very, very much need to close. So I think the important message for today is, the problem is real. The problem is here. The consequences are potentially extraordinarily severe, but it is within our control and within our hands to get the situation right and prevent these outcomes. Once again, Madam Chair, I salute the turning point that I think this hearing represents, and appreciate your leadership. Senator Boxer. Senator, I want to thank you. I think everyone was just riveted to your presentation. I would urge you to just keep that passion going because from now on, we are going to have to really work hard so that none of that ever happens that you showed us. I want to also say before you leave, just to give everyone here an idea of where we are going. My understanding is we have now heard from 14 Senators, including myself. That is the number that wanted to speak, from the committee. We are going to be moving to other Senators shortly within the next 5 minutes. Before, Senator Whitehouse, you leave, and I really want to thank Senator Carper who is just a stalwart with me on this issue, I wanted to quote from two statements that I am going to now place in the record. The point of this, Senator Whitehouse, is to say you are part of the New England delegation that on a bipartisan basis is very concerned, I will prove that in a moment, and also to say to Senator Carper, your interest and bipartisanship is borne out by these two statements. The first one I will put in the record is a statement by Senator Judd Gregg. He has asked that we put this in the record today. I will just quote briefly from it, ``Climate change is one of the most serious environmental problems facing our planet. It touches nearly everything we do.'' Now, Senator Gregg is not known for overstatement. ``Our climate is inextricably linked to our economy and heritage of our Nation.'' He goes on in a very eloquent way. He says, ``States alone cannot solve the problem. I believe Congress must take action to limit the emissions of greenhouse gases from a variety of sources.'' He talks proudly of working with Senator Carper for the last 4 years on legislation that would reduce carbon dioxide and other emissions from powerplants. He says he is looking forward to reintroducing that bill with Senator Carper. He says, ``Power plants are just part of the problem. That is why I have supported economy-wide, market-based approaches such as the Climate Stewardship Act's cap and trade system. I believe that is the McCain-Lieberman. He says, ``I appreciate the committee's attention to this issue and I look forward to working with my colleagues on both sides of the aisle to draft climate change legislation which protects our environment and stimulates our economy.'' So we will put that in the record. [The prepared statement of Senator Gregg follows:] Statement of Hon. Judd Gregg, U.S. Senator from the State of New Hampshire Climate change is one of the most serious environmental problems facing our planet. It touches nearly everything we do. Our climate is inextricably linked to our economy and heritage of our nation. Climate change affects where we live, where our food is grown, the severity and frequency of storms and disease, and many of our industries, including tourism, forestry, and agriculture. In New Hampshire, folks are already concerned with its impact on skiing, forestry, maple production, tourism, and outdoor recreation. In fact, the state was the first in the nation to pass a law in 2002 requiring carbon dioxide emissions reductions from power plants. Today, approximately 50 towns in New Hampshire are poised to vote in March on a resolution seeking the establishment of a national greenhouse gas reduction program and additional research into sustainable energy technologies. States alone can not solve this problem. I believe Congress must take action to limit the emissions of greenhouse gases from a variety of sources. The overwhelming scientific data and other evidence about climate change cannot be ignored. It is for this reason that I have been a strong advocate for mandatory limits on greenhouse gases, and I will continue working with my Senate colleagues on legislation. For the last four years, I have worked with Senators Carper and Alexander and others, on legislation which would reduce carbon dioxide and other emissions from power plants. The Clean Air Planning Act, which I have cosponsored, would address our nation's critical air pollution problems in a way that curbs greenhouse gas emissions, enhances air quality, protects human health, and facilitates a growing economy. This legislation reduces the four primary emissions from power plants: sulfur dioxide (a contributing factor in lung and heart disease) by 80 percent; nitrogen oxide (associated with acid rain and regional haze) by 69 percent; mercury emissions (associated with fish contamination and birth defects) by 80 percent; and carbon dioxide emissions (linked to climate change) by establishing mandatory caps. This bill would protect the quality of air we breathe and the climate we live in, while simultaneously stimulating the economy and protecting human health. I hope to reintroduce this bill with my colleagues in the coming weeks. However, power plants are just part of the solution. That is why I have supported economy-wide, market-based approaches, such as the Climate Stewardship Act's ``cap and trade'' system, as reasonable ways to rein in carbon dioxide without undue harm to the U.S. economy. I also believe we need to re-examine the issue of vehicle emissions, a substantial contributor to the global carbon budget, and consider increasing the corporate average fuel economy standards for motor vehicles. I appreciate the Committee's attention to this issue and I look forward to working with my colleagues on both sides of the aisle to draft climate change legislation which protects our environment and stimulates our economy. Senator Whitehouse. Following that is a statement by Senator Olympia Snowe that is a very comprehensive statement. I will just quote a few paragraphs. Senator Snowe: ``For me, it is ludicrous to think we can expect large emerging nations to move toward reducing their emissions without any national action on our part. Only after the United States puts in place a mandatory carbon cap and trade system can we expect to sit at the international table and ask the poorer developing countries to take such action.'' Madam Chair, we need to seize on a bold new program like President Kennedy did in sending a man to the moon. When on September 12, 1962, he stated, ``We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and our skills, because that challenge is one we are willing to accept, one we are unwilling to postpone, and one which we intend to win.'' She says, ``On July 21, 1969, less than 7 years later, Astronaut Neil Armstrong walked on the moon. This is how we should be addressing global warming.'' In closing, she says, ``Madam Chair, weather is an integral part of the economy in my State of Maine and others as well. It is time to curb the warming. We cannot wait any longer. We need to act now.'' [The prepared statement of Senator Whitehouse follows:] Statement of Hon. Sheldon Whitehouse, U.S. Senator from the State of Rhode Island Thank you, Madam Chairman, for convening this hearing, and for your leadership on the issue of global warming. I'm honored to serve on an Environment and Public Works Committee whose leadership acknowledges that this issue is real, that time is of the essence, and that action is called for. Left unchecked, climate change will affect every community in every nation on earth, altering the world in ways we are only just beginning to understand. I want to take this opportunity to speak briefly about some of the scientific evidence now available about the projected effects of global warming on my home state of Rhode Island. Alterations in the growing seasons brought on by warmer temperatures around the globe are already evident in Rhode Island. Many species of flowers and trees are blooming earlier in the spring than the historical average. The cherry tree on my street in Providence is in bloom in January for the first time in the 20 years we've owned the house. It could be an aberration, but our Rhode Island orchard growers have not seen January blooms of fruit trees in living memory. Although this bloom did not mark the actual spring bloom, the earlier and earlier arrival of the spring bloom is now a documented phenomenon, indicating a trend of warmer temperatures throughout the region. Shifts in the timing of the seasons also have the potential to disturb biological phenomena, such as migratory cycles of birds. For example, if a bird's seasonal migration is caused by the length of the days, it could arrive at its destination out of synch with the tree species that provides necessary food but has bloomed early in response to warmer temperatures. The land based ecosystems are not the only systems at risk; warmer temperatures will also have profound effects on oceans and estuaries. This is even more troubling because the water and land based ecosystems are so intricately linked. The environmental heart of Rhode Island is the Narragansett Bay estuary. Narragansett Bay is Rhode Island's most distinctive ecological feature, running nearly the entire length of the state and affecting every part of our lives. It is our greatest natural resource. As we speak, the Bay is undergoing a significant ecosystem shift as the water's temperature gradually warms. The Bay's annual mean winter temperature has increased by about 4 degrees Fahrenheit over the past 20 years. This has had a significant impact on fish and shellfish in the Bay. Cold water species, such as winter flounder, that were once abundant in the bay and had a high commercial value have been replaced by warmer water species, such as scup, that have a lower value. It amounts to a real ecosystem change with associated economic impacts. Warmer temperatures in the summer can also have profound effects. During the summer of 2003 in Greenwich Bay, a sub-basin of Narragansett Bay, warmer temperatures caused stratification in the water column. This reduction of water column mixing led to eutrophication and consequently lower dissolved oxygen levels on the bottom, causing the fish in the bay to suffocate in the water. This cycle is predicted to get worse--much worse--if nothing is done. At higher emissions levels, New England's climate will become more like South Carolina's. (Ironically, the first summer visitors to Newport were 19th century merchants from the Carolinas seeking to escape that heat.) The result will be a dramatic shift in the economy, as well as the ecosystem. For example, there won't be any ski resorts or winter tourism in Northern New England. We may very well lose our famous foliage. If Greenland's ice cap melts and causes sea levels to rise by as much as 20 feet worldwide--the nightmare scenario of Al Gore's ``An Inconvenient Truth''--here's what happens in the Ocean State. Downtown Providence is inundated. Newport's famous harbor overwhelms Newport's historic waterfront. And coastal residential communities like Barrington are submerged. While these are sobering projections, Madam Chairman, there is still plenty of hope. We can be effective against these threats if we act firmly and swiftly. Working with partners from the nonprofit and academic community, the State of Rhode Island is already taking steps to address the potential effects of global warming, with encouraging results. In Rhode Island, environmental groups have quantified the effect of actions already underway, of actions that are pending, and of possible further actions that we could take. These carbon dioxide emissions curves show how profoundly effective the action we take today can be. This kind of success requires not only direct government action, but commensurate action by private industry and individuals. We must determine not only what we will do, but how our choices will influence and stimulate others in their decision-making. Let me be clear: I believe we cannot solve this problem without immediate and unrelenting federal support. I am proud to be an original cosponsor of the Sanders-Boxer global warming bill, a measure that I believe will help us take a critical first step in addressing the challenge of global warming. There is much more to be done, and little time to waste. Thank you, again, Madam Chairman, for the opportunity to speak today. I'd also like to acknowledge the members of Rhode Island's environmental community for helping us assemble this data, including Save the Bay, Environment Rhode Island, the University of Rhode Island Graduate School of Oceanography, Brown University, the Rhode Island Coastal Institute, Rhode Island Clean Water Action, the Rhode Island Chapter of the Sierra Club, and the Rhode Island Conservation Law Foundation. Most importantly, I want to recognize Dr. Sandra Thornton Whitehouse for her help, her insight, and her expertise. Senator Boxer. So, you know, for me, this hearing has been, I don't even know how to find the right word. To say that it is important is an understatement. It has been critical. It has been inspiring to hear my colleagues, to hear my colleagues on this committee on both sides. Yes, to hear the concerns of some who might not agree, but yet in their comments still hear the nugget of some agreement where we can move forward, and some of the colleagues who are not on this committee. So what we are going to do now is stand in recess. I am going to stay right here. Senator Whitehouse. Madam Chair? As a personal courtesy, may I quickly recognize a leader of the environmental community in Iran who is with us today, Dr. Sandra Thornton Whitehouse. Senator Boxer. Oh, any relation? Senator Whitehouse. She was a considerable help in preparing this, and who is, as I said, one of Rhode Island's environmental leaders, and I would like, through her, to thank the environmental community for their support in putting this presentation together. Senator Boxer. Well, it was a fantastic presentation. I think that actually it is going to, I was going to say it is going to move mountains, but I think the glaciers are already moving. That is the problem, so it might freeze glaciers, but we thank you so much. I am so pleased and delighted, Senator Bingaman, that you are here. You came a little bit early, and I appreciate that. Your timing is impeccable. Here is where we are. We have heard from 14 members of this committee. We just heard our last presentation. I have put two statements in the record from Senator Snowe and Senator Gregg, both very strong for a comprehensive plan. You are a leader. You and I have teamed up. We have written letters, op/ed pieces together. We intend to work together. We are honored to have you here, Senator Bingaman, with your distinguished record on the environment, on the economy, on your great State of New Mexico. Of course, you are the Chair of the Energy Committee. We are just proud to have you. So please, you have 10 minutes. STATEMENT OF HON. JEFF BINGAMAN, U.S. SENATOR FROM THE STATE OF NEW MEXICO Senator Bingaman. Thank you very much, Madam Chairman. Let me say that I think it is terrific that you have made this such a priority for this committee and for the Congress. I look forward to working with you and seeing if we can't get legislation enacted in this Congress to deal with this issue in a meaningful way. Let me just give a general perspective on it, and then if you have any questions, I am glad to respond. First, I don't think it is particularly useful to have a lot more hearings about whether or not there is a problem. I think most folks who have spent time looking at it are persuaded that there is a serious issue here, that manmade activity is a major contributor to the problem, and that we need to get one with planning solutions. As I see it, there are three real challenges we need to focus on. No. 1, convincing our colleagues that some type of cap on emissions and some type of trading system for allowances or permits is the most significant thing we can do to deal with the problem. I am persuaded of that. I believe you are, and I hope that as we go through this debate, we can persuade all of our colleagues that that is the case. No. 2, we need to figure out if we are going to have a cap and trade system that is nationwide, which I believe we need to have, how do we structure that cap and trade program? There are a lot of design issues. There are a lot of questions on how you allocate allowances, what you permit as offsets. Your State of California is struggling through those problems now, as you are trying to design a system for California, in compliance with your Governor's mandate or the legislation that was passed earlier, last fall in California. The No. 3, major challenge that I see is getting a political consensus on how quickly we can reduce greenhouse gas emissions without significantly or adversely affecting the economy. I am persuaded that we can reduce greenhouse gas emissions in a significant way. There is a lot of debate going on as to how aggressive those targets need to be. That is the proper debate to be having. The process that I have been involved in really got started because of the report of the National Commission on Energy Policy. This was a group of business and former government officials and environmentalists, NGO leaders. They came together under the auspices of the Hewlett Foundation, and put together a report nearly 2 years ago now. Part of their report recommended a cap and trade program along the lines that I have just described. I think that was a very useful recommendation. I have supported the proposal that Senators Lieberman and McCain have presented to the Senate. We voted on that twice, as you know, in the Senate. I have supported it both times. The National Commission on Energy Policy had a somewhat different set of recommendations, but a variation on what was earlier proposed. The main point from my perspective was that they also recommended putting a cost or a price on the cost of putting carbon into the atmosphere, and a very predictable price, so that people in industry who are making plans for how to increase powerplant capacity would know precisely what they are going to be faced with if they go forward and continue to pursue options that involve substantial emissions. I think that is the right way to go. In February of last year, Senator Domenici and I and the Energy Committee came out with a white paper on design features for a mandatory market- based greenhouse gas regulatory program. We asked a series of questions there. We had a very distinguished group of folks come into our committee and talk about answers to those questions, questions such as who should be regulated, how do we allocate the permits, should a domestic program be linked with the programs in effect in other countries, how do we engage developing countries in this effort. All of those are the right questions, I think. We have tried to follow up on that. Most recently, I joined with Senator Specter in circulating a draft proposal to all members of the Senate. We are hoping to get feedback and have a series of meetings with people, responding to that draft proposal. The idea is that we hope to have legislation that some of us on the committee and off the committee might cosponsor, that we could introduce in the next 6 or 8 weeks. That is our hope. It would add to the other bills that already have been introduced. I hope it would add to the debate. I think the way this issue has been put on the front burner by you and your committee is exactly what needs to happen. I congratulate you on it and appreciate the chance to be here to make a presentation. [The prepared statement of Senator Bingaman follows:] Statement of Hon. Jeff Bingaman, U.S. Senator from the State of New Mexico Thank you Senator Boxer and Members of the Committee. The 2005 Sense of the Senate resolution on climate change emphasized that the risks associated with a changing climate justify the adoption of mandatory limits on greenhouse gas emissions and that an important first step towards addressing climate change can be taken at an acceptable cost. In that spirit, Senator Specter and I circulated a discussion draft on global warming legislation last week that begins with a modest emissions-reduction target that strengthens gradually over time. The approach is consistent with that of the successful Acid Rain Program in that it sets a ``forward price'' on emissions to provide both the flexibility and incentive needed to accelerate technology development and deployment. The long-term price signal that a forward price creates is critical for giving industry certainty and for focusing its decision-making on lower carbon options. In order to complement that price signal, the discussion draft also includes provisions to create incentives for new technology and provides significant new R&D funding for low- and no-carbon technologies. The decision to circulate a discussion draft, rather than introduce legislation, reflects our desire to modify and improve the legislation in the coming months. This draft is already the product of over two years of work, but there are still many unresolved issues that must be addressed and challenges that deserve attention. As I see it, there are three main challenges. First we must convince our colleagues that the model we have chosen, a cap and trade program, is the right model. Second, we must figure out how to structure that cap and trade program--there are many different design features that must be discussed and analyzed. Finally, we need to see what kind of political consensus we can get over the targets to reduce greenhouse gas emissions without harming the economy. As I mentioned, this process began over two years ago. It started with the recommendations of the bipartisan National Commission on Energy Policy, or NCEP. This group of business leaders, former government officials, environmentalists and NGO leaders published a report to influence the upcoming debate on energy policy. Within that report was a recommendation to implement a cap and trade program to slow the growth of greenhouse gases by mandating targets and allowing companies to use tradable credits in a market to meet those limits. I supported this type of proposal when Senators Lieberman and McCain introduced their Climate Stewardship Act and I still believe that this is the most appropriate way to reduce emissions. In order to address some of the concerns with a cap and trade proposal and its impacts on the economy, the NCEP recommended that growth targets be implemented to slow the growth of greenhouse gas emissions before stopping that growth and reducing emissions. They also recommended a safety valve feature, which would allow the government to sell extra permits at a set price. That price would escalate over time, but would provide certainty to business and would prevent difficult shocks to the economy as we move into a lower-carbon economy. After submitting this proposal to the Energy Information Administration--the nonpartisan analytical arm of the Department of Energy--I drafted an amendment to the Energy Policy Act of 2005 and considered amending the Energy Bill with it. Because of the limited amount of time available, we decided instead to circulate a Sense of the Senate Resolution and added that to the Energy Bill. That Resolution gave us the grounds to continue exploring this issue over the remainder of last Congress. I worked very closely with Senator Domenici to have hearings in the Energy Committee and participate in a series of workshops with the NCEP. The purpose of this was to examine the structure of a cap and trade proposal. In February of 2006, Senator Domenici and I authored a White Paper on Design Features of a Mandatory Market-Based Greenhouse Gas Regulatory Program. We asked four basic questions: (1) Who should be regulated? (2) How do we allocate permits throughout the economy? (3) Should a domestic program be able to link with other countries? (4) How do we engage developing country participation? We received over 150 submissions from major companies, individuals and NGO's responding to these questions and Sen. Domenici and I invited 29 of those respondents to an all-day conference to discuss them here on Capitol Hill. After incorporating many of the things we heard at this Conference into a new draft, I was joined by five of my colleagues in resubmitting the legislation to the EIA for further analysis. The results of that analysis have shown that it is possible to begin reducing our emissions here in the United States without negatively harming the economy. It is my plan now to take the next two months to use this discussion draft and bring stakeholders and interested parties to the table to see if we can get some kind of bipartisan consensus on legislation that we can enact this year. A first step toward that goal is to host a series of bipartisan staff workshops. This Friday at 2 pm in the Energy Committee Hearing Room, we are hosting the first staff workshop to look at the issues within the discussion draft. I encourage anyone who is interested in attending to contact my Committee Office. We are also extending the invitation to the Administration and House staff. Thank you for the opportunity to express my views before your Committee. Global warming is an extremely important and difficult issue to resolve, but I know that we can work together in a manner that expedites action rather than delay it any longer. Senator Boxer. Senator, Mr. Chairman, thank you very much. We are not going to ask questions today. Today is our open forum, and we are just presenting our views. For the benefit of Senators Kerry and Feinstein, they can decide who needs to go first. Either way is fine. We are going to go to Senator Kerry first, or Senator Feinstein? Senator Feinstein, OK. We have heard from 14 members of this committee. It has just been an extraordinary time. And now we are turning to those of you outside the committee who have shown tremendous leadership. I agree with Senator Bingaman that the more legislation that we have on the table, the better, because we can just see, in addition to this hearing and others that I know a lot of you will be involved in, in the Commerce Committee and in other committees, we could see where our colleagues are, because I think those of us who spoke today from our heart about how we feel now are ready to take the next step. I think Senator Bingaman is right. The debate over whether there is global warming for the vast majority of us is over. We are now moving toward solutions to the problem. So at this time, I am going to call on my dear friend, my colleague from California, my senior Senator. She and I have worked very closely on saving the environment in our State. We are very proud of our State for taking the lead on this. She is working on a series of bills, the first of which deals with the utility sector on carbon emissions. She worked so hard with business and so many different groups to come together. It is a tremendous contribution to where we are now. So Senator Feinstein, it is just a privilege for me to introduce you. You have 10 minutes. STATEMENT OF HON. DIANNE FEINSTEIN, U.S. SENATOR FROM THE STATE OF CALIFORNIA Senator Feinstein. Thank you, Madam Chairman. It is actually my privilege. I have great pride in what you are doing and a great deal of faith that this committee is going to be able to produce legislation under your leadership. I am just very grateful for that. And Senator Carper, I am on your bill, you are on my bill. So we have kind of dovetailed our efforts, and I appreciate that very much. What I would like to do is just informally tell you what I have learned. No question, global warming is real. The science has now coalesced. No question, the Earth is warming as a product of human activity. The question is, how fast will it warm. In talking with climatologists at Scripps Institute, they said to me, if we have erred, we have erred on the conservative side; that the Earth is apt to warm much quicker than we predict. That really sounds the clarion call for action, and for the United States taking a role of leadership in the world, which we have not done up to this point. Now, what have I learned? I have learned you can't stop it, but what we can do is slow it. If we slow it to 1 to 2 degrees, we can adapt to it. If it goes 4 to 10 degrees, as many people believe it will by the end of the century, it is catastrophic. The Earth has tipped and we will not be able to restore the balance again. So time is of the essence. What we have tried to do is recognize that there is no silver bullet; that we have to do a number of different things so that everybody does their share, the electric industry, industry in general, people, fuels, automobiles, trains, everything all across the board. We have started by saying, all right, coal is dominant in 40 States, and 40 times 2 is 80. We have 80 Senators that might be a problem on cap and trade. Now, why do we go to cap and trade? We go to cap and trade because Europe is using the system, the eight Northeastern States are going to be using the system; California is going into cap and trade. It looks like it provides the regimen to provide the auction and the credits to provide the technology to move everything forward. We thought, well, all these coal States, what do we do? So we went to a group of electric utilities called the Clean Energy Group. They are 15 percent of the electricity in this Country. They comprise Calpine, Entergy, Exelon, Florida Power and Light, which is in 42 States, PG&E, and the Public Service Enterprise Group, which is huge in many States. We sat down with them, and we said, if we were to negotiate a cap and trade system, how would we do it so there would be some support in the industry? The bill that Senator Carper and I have introduced, Madam Chairman, represents something that that section of the industry will support. It essentially reduces six global warming gases by 25 percent by 2020. It sets up an auction scheme that begins in 2011 with $1.9 billion to $10 billion, and goes up to $55 billion by 2036. It involves agriculture, so that they can get credits for good tillage, for growing energy- proficient crops, et cetera. It gives you something I think to pick and choose from. It has a structure. We believe it is workable. These companies have all vetted it. They have agreed to support it. In 2020, it caps at various times the amount, so you reduce it by 25 percent by 2020. Then in 2020, it says EPA, all right, now you would go 1.5 percent a year every year. If your independent science shows that you need to do more than a year, you have the mandate to issue the directions of the cap, but absent that, it moves at 1.5 percent a year. I believe that we have to tailor cap and trade for each industry. We are working now in the industrial sector, and it may well be somewhat different than the electricity sector. Also, we are submitting to you a biofuels bill, CAFE efficiency 10 miles over 10 years. That is 18 percent saving by 2020. Biofuels, I think, is around 20 percent saving, and then an energy efficiency bill patterned after California. If I had to say one thing to you, I would say it is necessary to do a number of different things and do them well, do them in a practical way, and do them so that you know that the goals can be reached by people who want to reach them. It is most important that it be practical and that it be doable, and that we be able to set something. If you can go to China, that is going to shortly overcome us, and say, look, here is a regimen that we are prepared to do in our Country, in electricity, in industry, in business, whatever it is. We believe you can do it, too. And India, the same way, so that we can provide the kind of leadership that we need to on a planetary level. Now, we did not include in our bill a preemption. That became very controversial. The Governor's people in California were concerned. I know environmentalists were concerned. But if you think about it, there should be one system, and the goal should be to make that one system worldwide so that everybody can enter into the cap and trade system, and everybody can produce the auction and the credits to do what they need to do in their own country to make technology much more improved. So I think it is a long road. I think it is a very interesting road. I really am so proud of you and your committee for holding these hearings and enabling us to come forward and present some of these things. So thank you very much. Senator Boxer. Senator Feinstein, I want to thank you so much for your ideas on this topic, for your work. Everything that you do, I can assure you is going to wind its way to our committee, and we will be, as I have told Senator Kerry, working the way we used to work around here, in a very open process, when we make finally the decisions as to how we are moving. You have laid out some very interesting points. Do we move sector by sector? Forty percent of the problem is utilities. Thirty percent is mobile sources. Thirty percent is smokestack and others. Maybe we will move that way. Maybe that is the only way we can go. Maybe we want to get one system, as you point out, would be the best thing where you can say that you are meeting the needs that the problem suggests. If we have a good system with good goals, then one system is clearly the best. If the States are out in front, and they are the ones who are responding to the reality, then we have to take another look at it. But I understand exactly what you are saying. Certainty, one system that meets the need is certainly what we ought to do if we can do it. But right now, it is sad to look at the state of things, where we have a patchwork. Senator? Senator Feinstein. I was just going to say, many of these companies do business in more than one State, some in dozens of States. That is the reason I think why we have to grapple with a national standard so that everybody plays by the same rules across the board. Senator Boxer. Absolutely, if we can get that standard strong enough so that it meets the challenge. Senator Whitehouse was here. I wish you had seen his presentation on what would happen in New England, and I think we will hear some of that passion from Senator Kerry. Senators Snowe and Gregg handed in testimony that is just a call to action, to do the strongest possible thing you can do nationally. I would add one point. You are right. These companies, many companies do business globally, too. I think one of the incentives for them to come to the table is the work of our European friends on this, because they want to work with the EU. They want to trade with the EU. They have to package for the EU. All of these things I think are calling us together with a common purpose. But I am really looking forward to the rest of your legislation. I would urge you to do it because once all those ideas are out on the table, Senator Bingaman's as well, and I know Senator Kerry is working as well, we will move, and you will be a very important part of writing the legislation we bring to the floor. Thank you very much. Senator Carper. Madam Chair, would you yield for just a moment? Senator Boxer. Yes, I will be happy to yield to you. Senator Carper. I want to welcome Senator Feinstein and Senator Kerry to this hearing, to our committee. I have had the pleasure of working with Senator Feinstein on several issues in the 6 years that I have been here. She is bright. She has great people around here. She is tenacious. She is able I think to lay out issues in a way that I can understand, and I think a lot of people could understand and relate to, which is a great gift. So thank you for being a partner with us. I would just say to Senator Kerry, my friend, my old Navy buddy, that I think, and I have said this to you before, I think you were ahead of your time in 2004, when you ran for President with a huge focus on energy independence and a great roadmap to get us there. There is an old saying that a prophet is without honor in his own land. You were a prophet and the rest of us fortunately are just a few years behind you. Thank you for joining us today and for your leadership. I have a bunch of people waiting for me in this hearing room, and have been waiting for some time. I am going to slip out for awhile, and if I miss your entire remarks, I will look for you at our caucus lunch and maybe you can give me the shorthand version. Thanks very much. Senator Boxer. Senator Kerry, we are honored you are here. You have 10 minutes. STATEMENT OF HON. JOHN KERRY, U.S. SENATOR FROM THE COMMONWEALTH OF MASSACHUSETTS Senator Kerry. Thank you very much, Madam Chairman. Thank you, Senator Carper, for your comments. I appreciate it and look forward to working with you. Madam Chairman, thank you so much for having this hearing. It is wonderful to have the Chair of this committee particularly who is looking at this issue and wanting to move forward. I just came back from the World Economic Forum meeting in Davos. It is interesting that this was really the dominant issue on the table among businessmen and leaders all over the world. It was the centerpiece of Prime Minister Blair's comments to the plenary session there. Everyone in the world is looking to the United States now. We are 25 percent of the world's greenhouse gas emissions. We have a responsibility to act. Like it or not, no matter what happens, yes, we need a global solution, but if the United States does not act, there won't be a solution. I look forward also, and I thank you for the conversations we have had. We are going to have some hearings in the Small Business Committee and see how small business can proceed, and also, in the Commerce Committee on which you serve, and you will sort of have a double hat to wear in that capacity. But we are going to use every leverage we have here to move on this. Back in 1987, on the Commerce Committee under the leadership of then-Senator Gore, we held the first hearings on global climate change. And then in 1990, we held an interparliamentary conference with Senator Wirth, Senator Chafee and others trying to raise the profile of this issue. In 1992, and I mention this history because I want to emphasize the urgency of why we are here. In 1992, I was a member of the delegation that went with those same folks to Rio for the Earth Summit. We came together with about 170 nations or so to discuss various ways to tackle this problem back then. We came up with a voluntary framework, the international framework on climate change, which President George Herbert Walker Bush signed. We ratified, but it was voluntary. Nations were given an opportunity to participate. We set in process a series of meetings, several of which I attended. I went to Buenos Aires for the COP meeting. I went to The Hague for the COP meeting. We began to see the tensions between the less developed countries and the developed countries, and the near developed countries, and the struggle to try to get this passed. I managed the Kyoto agreement issue on the floor of the Senate, when the Byrd-Hagel resolution came up. We accepted the notion that, yes, we want less developed countries in, but we as a Nation never made an effort during those years to try to bring less developed countries to the table by working agreements with them for technology transfer, for recognition of the steps they were taking for fuel switching and other things. So the bottom line is, nothing happened. We are here in 2006, 16 years or so after these meetings, and almost 20 years after the first hearings, and the United States, some are still in denial, and we are still not proceeding forward. The American people are moving ahead of the Congress, which is astonishing and a sad statement about congressional irresponsibility. About 376 Mayors from 50 States have signed onto the U.S. Mayors Climate Protection Agreement, to advance the goals of Kyoto. And now we have mounting scientific evidence, which will be capped in a report that will come forward from the Intergovernmental Panel on Climate Change, written by more than 600 scientists, Madam Chairman, reviewed by another 600 experts, and edited by officials from 154 governments, to reflect the scientific consensus. Already, it is being called the smoking gun of global warming by those who have studied it. The basic facts are that at every point in between the two poles of this planet, the Earth's surface is heating up, and at a catastrophic rate. According to the 2001 IPCC report, we have already increased an average of 1.4 degrees, about .08 C. With what is in the atmosphere today, there is an inevitable increase. We can't do anything about it, up to about 1.4 or 1.5 degrees. Scientists now tell us by consensus, recent discussions with Jim Hansen, with John Holden at Harvard and Woods Hole, say that we really only have a latitude of about .06 degrees. You have to hold your temperature increase to 2 C or we have catastrophic consequence. A few years ago, they thought it was 3 degrees. A few years ago, they thought we should hold it to 550 parts per million, but now they realize we have to decrease it to 450 parts per million to hold it down to 2 degrees because of what we have already seen in terms of the destruction that is taking place. In 2005, 1998, 2003, 2002, 2004, 2006, were respectively the 6 warmest years on record, and all but one of the hottest 20 years on record have occurred since 1980, since the time they started measuring. We know this is the result of human activity, and we also know that carbon dioxide in our atmosphere has increased about 30 percent from the pre- industrial level of 270 parts per million. It is currently at 370 parts per million. So Madam Chairman, that means we have a latitude of going from 370 to 450. This is the highest level of concentration of carbon dioxide in the atmosphere at any time in the past 150,000 years. If we let it go the way it is now, it could reach 600 to 700 parts per million and there will be catastrophe. Now, here is the bottom line. Those who oppose doing something serious, as John Holdren says, to be credible, they have to explain what alternative mechanism could account for the pattern of changes being observed, and they have to explain how it could be that the known human-caused buildup in greenhouse gases is not having an impact. So they have to show those two things, what is causing it, why is what we have done not causing it. They have failed to even suggest a legitimate theory for either of those. Senator Boxer. Senator, I am going to give you an additional 5 minutes. Senator Kerry. Thank you very much, Madam Chair. I appreciate that. So we are seeing these changes all over the Country. I have just been finishing writing a book about not just this, but all the environmental challenges we face today, toxins, water, oceans, et cetera. As I read about this, after 22 years in the Senate I have to tell you, it became more and more ominous, more and more frightening, more and more urgent and compelling than anything I have read in all the time I have been here, with the exception of a couple of security reports, but this is national security. You have hunters noticing these changes. In Arkansas, the winter duck population has shrunk from 1 million to a .5 million over the past half century. Last year, drought dropped that population to 160,000. In South Carolina, they wouldn't have duck hunting now if it weren't for farm-raised ducks, and the population of migrant ducks is down to about 3,000. The number of category four and five hurricanes has nearly doubled in the last years. As John Holdren and others will tell you, climate change is the envelope within which all the other changes take place, species change, climate, winds, hurricanes, ocean temperature. There is this ominous notion of the tipping point which we have to avoid. So the bottom line is, Madam Chairwoman, the only way to avoid the catastrophe that they warn us of, the oceans, the ice in the oceans in the north, in the Arctic, is going to melt. Jim Hansen sat with me several months ago and said it is no longer a question of if, when or how. It is just a question of it is going to happen, probably 30 years from now. What happens if that ice melts is that more ocean is exposed. As more ocean is exposed, the heating of the sun has a greater impact on the warming of the ocean, which has a greater impact ultimately on the Greenland ice sheet. Now, we are already seeing melting underneath that ice sheet on the top of the rock. The potential for slippage of that rock, and major breakoff like the one we saw on Ellesmere Island a few months ago, actually a year and a half ago as was detected, and reported recently, where you had a 66 kilometer square ice sheet that just broke off and is now floating as its own island in the ocean. The ice in the Arctic as it melts doesn't change the displacement of the oceans, so sea level rise is not as much of an issue, though it is going to increase. But if the Greenland ice sheet melts, you have something ranging between a 16-foot and 23-foot sea level increase, which wipes out all ports, lowlands, and islands globally. The impact of this on poor people, the impact of this on commerce, on species, on disease and all kinds of things is gigantic. So Madam Chairwoman, the bottom line is we really, and the reason I mention all this, I know it is accepted. I know the science is accepted. Senator Bingaman said it. But the urgency is not accepted up here. The urgency is just not accepted. There are business leaders who are showing greater urgency, the recent 10 corporations that announced what they are going to do, then the Congress of the United States is, or then our government is. There is only one way to deal with this issue. It is carbon dioxide that is the principal greenhouse gas emission that is causing this. There are other greenhouse gases, but that is the principal one, and we have to cap the level of these greenhouse gas emissions. It is the only way to do it. Senator Snowe and I introduced legislation last year to achieve this. We are going to reintroduce it. We establish an economy-wide cap and trade program to reduce these emissions and we will set that out further later this week. But I remember being part of this debate in 1990, with John Sununu, George Mitchell, Bill Riley and others at the table, into the wee hours of the morning. I remember the industry sitting there saying to us, if you do this, it is going to cost $8 billion and it is going to take 10 years, and you are going to ruin the industry. The environment community said, ``no, no, no, no,'' it won't do that. If you do it, it will take $4 billion and it will be done in about 4 years, and it won't ruin the industry. Well, guess what? Both were wrong. It was done at about half the cost the environmental industry said it would, and in half the time. Why? Because no one was able to predict what happens when you start down the road and the technology begins to make advances, and technology begets technology and begets advances that we are not capable of predicting, which is why we need to make this commitment. The fact is, there are only three big ways of doing this. No. 1, is energy efficiency. There are enormous gains to be made in our Country in terms of energy efficiency. DuPont and General Electric and a host of companies are recognizing this and grabbing the profits. This is a for-profit effort, and we need to get people to realize this isn't just sacrifice. This is an ability to take the lead on health, on the environment, on jobs, on national security, as well as the ability to live up to our obligation morally for the next generation. So you get about five major pluses. There are few public policy choices where you get that. The final comment I would make, Madam Chairwoman, is that, let me pose this to you. There are two sides here. There are sides of people who are still obstructing, still saying no, and still fighting this, status quo-ists. They refuse to accept some of even the science now. Then there are those fighting to make it happen. Well, what is the downside of accepting the predictions of the Stern Report that says we can do this at 1 percent of GDP and the costs of not doing it are fivefold to twentyfold times more expensive than the cost of doing it. So I ask colleagues in the Senate and I ask Americans a simple question: If the people who think climate change is a serious problem are wrong, and we take the steps to deal with it, what is the worst that can happen? The worst that can happen is we have cleaner air, a healthier Nation, more jobs created. We lead the world in technology. We have made ourselves more energy independent, and we have a better environment. What is the worst that can happen if the people who say it is not happening or want to stop it? What is the worst if they are wrong? Catastrophe, absolute catastrophe. So the question for the U.S. Senate, for the Congress, for the Country, is which side of the ledger do we want to fall on. I think the answer to that is pretty clear. Senator Boxer. Senator Kerry, I want to thank you for your excellent contribution to this. You gave us the overview that I certainly agree with. I mean, it is a very simple thing. If you do the right thing, the conservative thing, really, the conservative thing is to say the worst could happen; let's prepare. You have five or six tremendous benefits, starting with the health of our families, saving in their pocketbooks and the rest, profits for industry, jobs we can export, a safer world because we don't have to rely on folks we don't want to rely on. You laid it out. So that is why I hope we can really come together. With your help, I honestly think that we can do it. Senator Kerry. Let me just say something. Senator Boxer. Yes, please go ahead. Senator Kerry. Two things I just want to add in closing out. Senator Boxer. Yes? Senator Kerry. In addition to the energy efficiency, Madam Chairwoman, obviously the clean and alternative fuels are something everybody is talking about. But we have to be a little bit careful about where the major input is put into that, because there are huge land use, water issues and energy issues, consumption issues, in the focus on just ethanol, and not cellulosic. Senator Boxer. Right. Senator Kerry. Second, we have to look carefully at the clean coal technology issue and sequestration. There are serious questions about how much sequestration you could actually achieve, and we have to push forward on it. Those are the three big ones, and those are the places where we are going to get the greatest grab in the shortest time. If we accept the science, and I think we are duty-bound to do it, than you only have a 10-year window. If there is a 10-year window, then I think we have a moral responsibility to accept that. Then, you have to grab the biggest pieces, the fastest you can. Senator Boxer. Right. Senator Kerry. As you know. Senator Boxer. We call it the low hanging fruit. There is a lot of it around. The terrible news is we have done so little. The good news is we have done so little it is easy to start. I mean, that is really kind of where we are. We just have to start and get out of our paralysis. Senator, I also thank you for making the distinction between alternative fuels and renewable fuels because when the President talks about alternatives, we don't know that they are clean. We don't know that they will necessarily help us with the greenhouse gas emissions. So there are lots of things we have to be wary of. Obviously, you are a leader on this. You have been a leader for many years, and I am very pleased we will work together both on legislation that will come before this committee, as well as in the Commerce Committee, where we can really work together on fuel economy and the rest. So I think it is going to be a good year for us. We are going to move forward. I thank you for your contributions. Senator Kerry. My pleasure. Thank you very much. Senator Boxer. The committee is going to stand in recess until 12:45 p.m., when we expect to hear from Senators Obama and McCain. If there is any change in that, we will let everyone know. Otherwise, that is the plan. At 2:30 p.m., we have a host of people coming, Senators Levin, Murkowski, Akaka, Lincoln, Durbin and Nelson of Florida. So at this point, we intend to be back here at 12:45 p.m., and then again at 2:30 p.m. If there is any change, we will let folks know. Thank you. We stand in recess. [Recess.] Senator Boxer. The committee will come to order. We will now hear from Senator McCain. Welcome. STATEMENT OF HON. JOHN McCAIN, U.S. SENATOR FROM THE STATE OF ARIZONA Senator McCain. Madam Chairman, let me thank you for calling today's hearing to discuss the most important environmental issue of our time, climate change. Over the past several years, a number of my colleagues and I have spent considerable time on the issue of climate change. We have traveled around the globe to see firsthand the impacts of climate change and how it is changing the lives of people even as we speak. I am pleased to have visited Alaska, Antarctica, Canada, New Zealand, South America, Norway, and other parts of the Arctic region. Let me say, if anyone remains in doubt that climate change is real, I invite them to visit some of these places to see for themselves. The number of individuals in Washington who reject the clear evidence of global warming is shrinking as its dramatic manifestations mount. A large number of prominent scientists, industry leaders, environmentalists, State and local government officials, the faith-based community, and others agree that climate change is real and we must move quickly to address the problem in a meaningful and sustainable manner. We are no longer just talking about how climate change will affect our children's and grandchildren's lives, as we did just a few years ago, but we now are talking about how it is already impacting the world with declining snow packs, forest fires, melting ice caps, species dislocation and habitat loss, and extreme weather events. All are examples of how climate change is impacting us. We need to act to mitigate and adapt to these devastating events. More and more Americans are acknowledging that climate change is not only real, but that it is critical. On Monday of last week, a coalition of major U.S.-based businesses, with a combined market capitalization of over $750 billion, joined with environmental organizations to call upon our Federal Government to quickly enact national legislation to achieve significant reductions of greenhouse gas emissions. The members of the U.S. Climate Action Partnership recognize that setting rules now about greenhouse gases will unleash American ingenuity in an all-out effort to meet this complicated challenge. In their letter to President Bush, the Coalition said that, ``A properly constructed policy can be economically sustainable, environmentally responsible, and politically achievable. Swift legislative action on our proposal would encourage innovation and provide needed U.S. leadership on this global challenge.'' They further stated that climate change will create more economic opportunities than risks for the U.S. economy. While action at the national level is essential, it will eventually occur because the American people will demand it. I am pleased to also mention progress that is already being made at the State and local levels. Just 6 months ago, the State of California enacted legislation requiring mandatory reduction of greenhouse gas emissions, the first of its kind in the Nation. That legislation would require that California's emissions be reduced to the year 1990 levels by the year 2020. The Northeast States of Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York and Vermont agreed in December 2005 to implement a cap and trade program to lower carbon emissions from powerplants. This effort is continuing to grow as evidence by the State of Massachusetts joining this regional effort 2 weeks ago. Also 2 weeks ago, an alliance of prominent U.S. scientists and members of the faith community pledged to work together to push for a reduction in the Nation's greenhouse gas emissions. In their statement, the group said that Earth is ``seriously imperiled by human behavior,'' and called on Americans to ``steward the natural world in order to preserve the planet for ourselves and future generations.'' The U.S. Mayors have also agreed to take action. Over 375 U.S. Mayors, representing over 55 million people, have signed an agreement calling for emission reductions of 7 percent below 1990 levels by the year 2012. Madam Chairman, we will continue to learn more about the science of climate change and the dangerous precedent of not addressing this environmental problem. The science tells us that urgent and significant action is needed. Later this week, we expect to receive the United Nations' Intergovernmental Panel on Climate Change summary of their Fourth Assessment Report. Some well respected scientists are already calling it the smoking gun, and the ``iconic statement'' on the issue of global warming. We recognize that many fear the costs of taking action. But there are costs to delay as well. Failure to implement significant reductions in net greenhouse gas emissions in the near term will yield only more climate change, and a much harder job in the future. Simply stated, inaction is unsustainable. As Senator Lieberman and I have continued working for passage of legislation to address climate change in a meaningful way, and are continuing our efforts to further improve upon our legislation with the goal of producing the most innovative, meaningful and economically feasible measure that can be embraced by the Senate, it has become clear to us that any responsible climate change measure must contain five essential components. First, it must have rational, mandatory emission reduction targets and timetables. It must be goal oriented, and have both environmental and economic integrity. Let us realize that the climate system reacts not to emission intensity, but to atmospheric concentration levels. We need policy that will produce necessary reductions, not merely check political boxes. The reductions must be feasible and based on sound science, and this is what we have tried to do in our bill. We realized that this problem is an environmental problem with significant economic implications, and not an economic problem with significant environmental implications. Second, it must utilize a market-based economy-wide cap and trade system. It must limit greenhouse gas emissions and allow the trading of emission credits across the economy to drive enterprise, innovation and efficiency. That is a central component, in my view, of any legislation. Voluntary efforts will not change the status quo. Taxes are counterproductive, and markets are more dependable than regulators. Third, it must include mechanisms to minimize costs and work effectively with other markets. The ``trade'' part of cap and trade is such a mechanism, but it is clear it must be bolstered by other assurances that costs will be minimized. I am as concerned as anyone about the economic impacts associated with any climate change legislation. I know that many economists are developing increasingly sophisticated ways to project future costs of compliance. Lately, we have seen the increased interest in this area of research. As we learn more from these models about additional action items to further reduce costs, we intend to incorporate them. Already, based upon earlier economic analysis, we have added offsets provisions in this bill in an effort to minimize costs and to provide for the creation of new markets. I assure my colleagues we will continue to seek new and innovative ways to further minimize costs. Let me again mention, Madam Chairman, what the Coalition of CEOs of major U.S.-based companies and environmental groups said just last week, ``In our view, the climate change climate will create more economic opportunities than risks for the U.S. economy.'' That is what the industrialists are saying. Fourth, it must spur the development and deployment of advanced technology. Nuclear, solar and other alternative energy must be part of the equation, and we need a dedicated national commitment to develop and bring to market the technologies of the future as a matter of good environmental and economic policy. There will be a growing global market for these technologies, and the United States will benefit greatly from being competitive in capturing its share of these markets. Unlike the Energy bill, it would be funded using the proceeds from the auctioning of allowable emission credits, rather than from the use of taxpayers' funds or appropriations that will never materialize. Finally, Madam Chairman, it must facilitate international efforts to solve the problem. Global warming is an international problem requiring an international effort. The United States has an obligation to lead. If we don't lead proactively, we will find ourselves following. There is no in between. However, our leadership cannot replace the need for action by countries such as India and China. We must spur and facilitate it. We have added provisions that would allow U.S. companies to enter into partnerships in developing countries for the purpose of conducting projects to achieve certified emission reductions, which may be traded on the international market. I believe those five components are integral to any legislation. Madam Chairman, you have a very big challenge here in trying to put this all together. I believe it has to be based on those principles. I believe we can do it so that it is valuable to the stockholders of major corporations. GE has gone green. They allege that it is going to help their stockholders. One reason is because they have to do business in Europe. I was very happy to see what happened last Monday. That would not have been possible a short time ago. I am happy to see what is happening in California, other coalitions of States. As I said at the beginning of our conversation, one, I am grateful for your leadership and your commitment, and two, the time is now. [The prepared statement of Senator McCain follows:] Statement of Hon. John McCain, U.S. Senator from the State of Arizona Madame Chairman, let me thank you for calling today's hearing to discuss the most important environmental issue of our time: climate change. Over the past several years, a number of my colleagues and I have spent considerable time studying the issue of climate change. We have traveled around the globe to see first hand the impacts of climate change and how it is changing the lives of people even as we speak. I am pleased to have visited Alaska, Antarctica, Australia, Canada, New Zealand, South America, Norway, and other parts of the Arctic region. Let me say, if anyone remains in doubt that climate change is real, I invite them to visit some of these places to see for themselves. The number of individuals in Washington who reject the clear evidence of global warming appears to be shrinking as its dramatic manifestations mount. A large number of prominent scientists, industry leaders, environmentalists, state and local government officials, the faith-based community, and others agree that climate change is real and we must move quickly to address the problem in a meaningful and sustainable manner. We are no longer just talking about how climate change will effect our children's and grandchildren's lives, as we did just a few years ago, but we now are talking about how it is already impacting the world. Drought, declining snow packs, forest fires, melting ice caps, species dislocation and habitat loss, and extreme weather events--all are examples of how climate change is impacting us. We need to act to mitigate and adapt to these devastating events. More and more Americans are acknowledging that climate change is not only real, but that our action is critical. On Monday of last week, a coalition of major U.S.-based businesses, with a combined market capitalization of over $750 billion, joined with environmental organizations to call upon our federal government to quickly enact strong national legislation to achieve significant reductions of greenhouse gas emissions. The members of the U.S. Climate Action Partnership recognize that setting the ground rules now for managing greenhouse gasses will unleash American ingenuity in an all out effort to meet this complicated challenge. In their letter to President Bush, the coalition said that, (properly constructed policy can be economically sustainable, environmentally responsible, and politically achievable. Swift legislative action on our proposal would encourage innovation and provide needed U.S. leadership on this global challenge.'' They further stated that ``. . . climate change will create more economic opportunities than risks for the U.S. economy.'' I agree. While action at the national level is essential--and it will eventually occur because the American public will demand it--I am pleased to also mention progress that is already being made at the state and local levels. <bullet> Just six months ago, the state of California enacted legislation requiring mandatory reductions in greenhouse gas emissions, the first of its kind in the nation. That legislation would require that California's emissions be reduced to the year 1990 levels by the year 2020. <bullet> The Northeast states of Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont agreed in December 2005 to implement a ``cap-and-trade'' program to lower carbon dioxide emissions from power plants. This effort is continuing to grow as evidenced by the state of Massachusetts joining this regional effort two weeks ago. <bullet> Also two weeks ago, an alliance of prominent U.S. scientists and members of the faith community agreed to work together to push for a reduction in the Nation's greenhouse gas emissions. In their joint statement, the group said that Earth is ``seriously imperiled by human behavior'' and called on Americans to ``steward the natural world in order to preserve [the planet] for ourselves and future generations''. <bullet> And, the U.S. mayors have also agreed to take action. Over 375 U.S. mayors, representing over 55 million people, have signed an agreement calling for emission reductions of 7 percent below the 1990 levels by the year 2012. Madam Chairman, we will continue to learn more about the science of climate change and the dangerous precedence of not addressing this environmental problem. The science tells us that urgent and significant action is needed. Later this week, we expect to receive from the United Nation's Intergovernmental Panel on Climate Change a summary of their Fourth Assessment Report. Some well respected scientists are already calling it the ``smoking gun'' and the ``iconic statement'' on the issue of global warming. We recognize that many fear the costs of taking action. But there are costs to delay as well. Failure to implement significant reductions in net greenhouse gas emissions in the near term will yield only more climate change and a much harder job in the future. Simply stated, inaction is unsustainable. As Senator Lieberman and I have continued working for passage of legislation to address climate change in a meaningful way, and are continuing our efforts to further improve upon our legislation with the goal of producing the most innovative, meaningful, and economically feasible measure that can be embraced by the Senate, it has become clear to us that any responsible climate change measure must contain five essential components: First, it must have rational, mandatory emission reduction targets and timetables. It must be goal oriented, and have both environmental and economic integrity. Let us realize that the climate system reacts not to emission intensity but to atmospheric concentration levels. We need policy that will produce necessary reductions, not merely check political boxes. The reductions must be feasible and based on sound science, and this is what we have tried to do in our bill. We realized that this problem is an environmental problem with significant economic implications and not an economic problem with significant environmental implications. Second, it must utilize a market-based, economy wide ``cap and trade'' system. It must limit greenhouse gas emissions and allow the trading of emission credits across the economy to drive enterprise, innovation and efficiency. This is the central component of our legislation. Voluntary efforts will not change the status quo, taxes are counterproductive, and markets are more dependable than regulators in effecting sustainable change. Third, it must include mechanisms to minimize costs and work effectively with other markets. The ``trade'' part of ``cap and trade'' is such a mechanism, but it's clear it must be bolstered by other assurances that costs will be minimized. I am as concerned as anyone about the economic impacts associated with any climate change legislation. I know that many economists are developing increasingly sophisticated ways to project future costs of compliance. Lately, we have seen the increased interest in this area of research. As we learn more from these models about additional action items to further reduce costs, we intend to incorporate them. Already, based upon earlier economic analysis, we have added ``offsets'' provisions in this bill in an effort to minimize costs and to provide for the creation of new markets. And, I assure my colleagues, we will continue to seek new and innovative ways to further minimize costs. Let me again mention what the coalition of CEO's of major US-based companies and environmental groups said last week, ``In our view, the climate change challenge will create more economic opportunities than risks for the U.S. economy.'' Fourth, it must spur the development and deployment of advanced technology. Nuclear, solar, and other alternative energy must be part of the equation and we need a dedicated national commitment to develop and bring to market the technologies of the future as a matter of good environmental and economic policy. There will be a growing global market for these technologies and the U.S. will benefit greatly from being competitive and capturing its share of these markets. Our legislation includes a comprehensive technology title that would go a long way toward meeting this goal. Unlike the Energy bill, it would be funded using the proceeds from the auctioning of allowable emission credits, rather than from the use of taxpayers' funds or appropriations that will never materialize. And fifth, it must facilitate international efforts to solve the problem. Global warming is an international problem requiring an international effort. The United States has an obligation to lead. If we don't lead proactively, we will find ourselves following. There is no in between. However, our leadership cannot replace the need for action by countries such as India and China. We must spur and facilitate it. We have added provisions that would allow U.S. companies to enter into partnerships in developing countries for the purpose of conducting projects to achieve certified emission reductions, which may be traded on the international market. These five components represent a serious challenge that will require a great deal of effort, the concentration of substantial intellectual power, and the continued efforts of our colleagues and those in the environmental, industrial, economic, and national security communities. I look forward to collaborating with the Committee in this effort as we continue to shape our legislation into its most effective form. Madame Chairman, I believe that Senator Lieberman has already provided the Committee with a thorough description of our bill, S. 280, the Climate Stewardship and Innovation Act of 2007. I won't seek to repeat it. However, I would like to address one issue that I know has been of concern for some on the Committee, and that is the topic of nuclear energy. I know that some here maintain strong objections to nuclear energy, even though today it supplies nearly 20 percent of the electricity generated in the U.S. and much higher proportions in places such as France, Belgium, Sweden and Switzerland--countries that are not exactly known for their environmental disregard. The fact is, nuclear energy is CLEAN. It produces ZERO emissions in operations. It has the lowest carbon footprint, and is, therefore, undeniably a valuable tool for reigning in greenhouse gas emissions both quickly and economically. Nuclear energy is growing, and it will continue to grow substantially in the coming decades given the growing electricity needs around the world. Not only should we promote U.S. companies in their efforts to compete for important roles in this growing market throughout the world, we should be helping them in promoting nuclear in a safe and efficient manner here in the United States. The Nuclear Regulatory Commission (NRC), which is under this Committee's jurisdiction, is already preparing for a substantial number of license applications for new plants. I am confident that this committee, under the Chairman's and Ranking Member's leadership, will work to ensure that safety remains first and foremost among the NRC's responsibilities, as it must. Finally, I, too recognize and share the concerns of what to do with nuclear waste. I am confident that given political will and time for technology development and deployment, we can solve that problem. It is important to recognize the responsible waste management that occurs in the nuclear industry today. Yet, while there is a great concern over comparatively small quantities of responsibly managed nuclear waste, there is an even more dangerous event occurring under our noses. And that is 900 tons of carbon dioxide per second being dumped in the atmosphere from fossil fuel use. Now that is a an urgent waste problem that should be concerning us most. Therefore, I hope we can have a thorough debate about the importance of nuclear energy and its future as we grapple with how best to address global warming. We need to better understand what is necessary to bring new, safe and reliable nuclear power plants on line. I hope that we can work together, Madame Chairman, to ensure we put all options on the table so that the Senate can pass the most innovative, effective, and economically feasible climate change legislation possible. The status quo is a strong and stubborn force. People and institutions are averse to change, even when that change is critical for their own well-being, and that of their children and grandchildren. If the scientists are right and temperatures continue to rise, we could face environmental, economic, and national security consequences far beyond our ability to imagine. If they are wrong and the Earth finds a way to compensate for the unprecedented levels of greenhouse gases in the atmosphere, what will we have accomplished? Cleaner air; greater energy efficiency, a more diverse and secure energy mix, and U.S. leadership in the technologies of the future. There is no doubt; failure to act is the far greater risk. Senator Boxer. Senator, before you leave, I want to say thank you for your consistency on this issue for years, and also your intensity. When we talk about carbon reductions, there is a whole argument over intensity. But intensity, when it comes to politics, is a very important thing. The reason I did these hearings, where we have such a great turnout of members, and then members outside the committee, is to gauge the intensity of feeling. I am proud to tell you, I think it is there, for many, many reasons, not the least of which is that you and Senator Lieberman have been pounding away on this. Senator Carper, Senator Alexander and others have been pounding away on this. I am just very glad that we gave you this opportunity for you to come forward once again, because without you, frankly, we can't put this together. We thank you very much for your contribution. Senator McCain. Thank you very much, Madam Chairman. Senator Lieberman has been a millstone around my neck as we move forward. [Laughter.] Senator Lieberman. I was just going to ask you if you wanted to venture an opinion on your leader co-sponsor, and you went ahead. Senator Boxer. He did it. [Laughter.] Senator Lieberman. Senator McCain has been very--he started with questions and we spent a lot of time before we introduced this bill, meeting with environmentalists, business people, and academics. This bill actually is the result of a process. It wasn't just, as great as our individual capacities are, and even more jointly. It built from a lot of work we did, and we started out trying to do something that we thought would work and be acceptable. And then, of course, John has been tireless in traveling around the world to see the actual effects of global warming, which has intensified his commitment to this. So he has been a great leader in this. I think we both feel that we are on the verge of critical mass, the tipping point. We are pleased to have others join us on this bill, and now look forward to working together with you, Madam Chairwoman, to make this happen. Senator McCain. Madam Chairwoman, I just want to say again, we don't feel that this proposal of ours is engraved in golden tablets. We think that it can be improved. We want to work with you and build a larger consensus under your leadership. We have no pride in authorship. This is too important. Whatever direction and additions or subtractions that you and our colleagues feel is necessary, the object is to get something done and soon. Senator Boxer. Right. We are in agreement. I thank you so much, Senator McCain. Now, our last speaker of the morning session, actually the early afternoon session, not the least is of course the Senator from Illinois, Senator Obama, if we can hear him above the clicks of the cameras. I always kid him. He is like a brother to me, so he has to put up with these jokes. But Senator Obama, I miss you from this committee, but I am very glad that you took time out to come here today. I want to fill you in, as I did Senator McCain. We had an extraordinary day to day. We started at 9 o'clock a.m., and 14 members of the committee came and spoke. I am trying to put together in my mind where everybody is so we can craft something. We had Senators Bingaman, Feinstein and Kerry come and speak, Senator McCain and now you. After lunch, we will have Senators Levin, Murkowski, Akaka, Lincoln, Durbin, Nelson and hopefully Joe Biden, who is stuck in another room in another hearing. The point is, this is getting exciting, and we may be feeling that there is a critical mass here to be very serious about this at long last. I also read into the record the most dramatic statements I have seen on this by Senators Snowe and Judd Gregg. So we have bipartisanship emerging and I am just really delighted you are here. You have 10 minutes or whatever you need to present to us. OPENING STATEMENT OF HON. BARACK OBAMA, U.S. SENATOR FROM THE STATE OF ILLINOIS Senator Obama. Madam Chairman, thank you so much for your leadership and for holding this hearing. I want to commend you. I know that you have made people across the Country who takes this seriously, you have made them much encouraged because of the immediate efforts that you are putting into place. I want to thank Senator Lieberman as well as Senator McCain for the outstanding leadership that they have shown on this issue. Sometimes I know it has felt like you are howling to the wind, but fortunately, I think the American people have come to understand how important this issue is. I think those who still diminish the real threat that climate change poses to our children and our grandchildren, they are going to be lagging behind where the American people are at this point. So I want to thank both of you for your great work, as well as Senator McCain, who just provided testimony. For decades, we have been warned by legions of scientists and mounds of evidence that global warming is real, that we couldn't just keep burning fossil fuels and contributing to the changing atmosphere without consequence. Yet for decades, far too many have ignored the warnings, either dismissing the science as a hoax, or believing that it was solely the concern of environmentalists looking to save polar bears and rain forests. We have heard some of those views expressed, Madam Chairman, on this committee. You and I both recall some of those statements. But today's bipartisan hearing is a sign that the long running debate over the existence of climate change is over. It represents a sea change in the attitudes of this Country and this Congress, that we have moved from the question, ``Is it real?'' to the question, ``What can we do about it?'' We know that climate change is about more than a few unseasonably mild winters or hot summers. It is about the chain of natural catastrophes and devastating weather patterns that global warming has begun to set off around the world, the frequency and intensity of which are breaking records thousands of years old. It is about the devastating consequences climate change might have on human health, access to water, and the production of our food. Still, despite all the ominous harbingers of things to come, and I am sure it has been noted already at this committee, the most recent studies that came out indicating that the polar ice caps would no longer exist in approximately 35 to 40 years, so it is no longer even an issue just for our children or our grandchildren, but potentially for us. We don't have to stand helplessly by and accept this future. In fact, we can't afford to. Climate change may be unleashing the forces of nature, but we can't forget that while this has been accelerated by man, it can also be slowed by man. Since coming to Washington, I believe that the right approach begins with the proposal put forward by Senator Lieberman and Senator McCain, a proposal they have been pushing for years, and I thank them again for their leadership on this issue. The Lieberman-McCain bill establishes limits for greenhouse gas emissions well into the 21st century. To remain below these limits, the bill encourages the market to determine how best to reduce greenhouse gas emissions, reward cost-effective approaches using a system of tradable allowances. The idea here is simple. If you are a business that cannot yet meet a lower cap on harmful carbon emissions, you have two choices. You can either purchase credits from other companies that have achieved more than their emission goals, or you can temporarily purchase a permit from the government. The money from the sale of these permits will go toward investments in clean energy technologies such as green buildings, high powered batteries for hybrid cars, safer nuclear plants to generate electricity, large scale biofuel facilities, and advanced coal powerplants that capture the carbon dioxide they generate. This will actually spur American innovation, as Senator McCain noted, creating business opportunities as new markets develop in low carbon technologies and services. Fred Krupp, the president of Environmental Defense has said, ``Once you put a value on carbon reduction, you make winners out of innovators.'' And that I think is the classic American way. In short, the Lieberman-McCain proposal addresses the real costs and consequences of our current patterns of energy use and establishes a framework for a market-based solution that relies on American will, ingenuity and technological expertise. It is a framework that is not only good for the environment; it is also good for business. In the face of Federal inaction, States, localities and private enterprise have begun to fill the void with a number of truly innovative proposals to reduce greenhouse gas emissions. I just want to give you one example from my hometown, the Chicago Climate Exchange, a voluntary global marketplace for reducing and trading greenhouse emissions. Such measures have been an important step in the right direction, but businesses that operate around the Country need regulatory certainty and that is just not possible when they are facing a hodgepodge of State and local regulations, which is why action on this committee and hopefully on the floor of the Senate is so important. Ultimately, climate change is one of the major tests of our generation. It is a challenge that asks us, will we stand by while drought and famine, storms and floods, overtake our planet? Or will we look back at today and say that this was the moment when we took a stand, that this was the moment when we began to turn things around. The climate changes we are experiencing are already causing us harm, but in the end, it will not primarily be us who deal with its most devastating effects. It will be our children and our grandchildren. This is our generation's chance to protect their futures. It is a chance that won't last much longer, but if we work together and seize this moment, we can change the course of this Nation forever. The Lieberman-McCain bill makes me hopeful that we can start right away. I am proud to be an original cosponsor. I am proud of the work that you are doing, Madam Chairman. I think I would be remiss also if I failed to mention the outstanding work that former Vice President Al Gore has done on this issue, because I think that through his film, An Inconvenient Truth, as well as his book, he has done more to proselytize on this issue, not just here in the United States, but around the world. Ultimately, the most important thing that we have to have is a sense of urgency on the part of the American people. Once the American people make a determination that something is important, politicians follow. He has made an enormous contribution in helping to make that happen. One final note I would like to make, Madam Chairman. I was heartened by Senator McCain's comment that the Lieberman-McCain bill is not written in stone. Obviously, there are improvements that can be made. We actually have some lessons that we can learn from the cap and trade systems that they have set up in Europe under the Kyoto Protocol. We know that in some cases, windfalls have gone to companies that really did not do a lot of work because of the way that the system was calibrated. We know that there are adjustments that we can make as a consequence of the work that they did that can make our system work even better. I am sure that we are going to be examining those carefully in our hearings. It may be that as we build consensus, it is possible that we can go even further than we have gone in this bill. That would be a wonderful thing, but I think this is a wonderful framework with which to start. The final point I would make would be that obviously setting up a cap and trade system will be difficult politically and presents a challenge to all of us, but we shouldn't stop there. There are other things that are going to be important to do. I have a bill that I am going to be introducing relating to making sure that our fuel efficiency standards in cars are higher than they currently are. There have been recent articles showing how much we could gain from improving basic efficiencies in buildings, in homes, the things that are relatively painless, but would have an enormous effect if we simply were systematic about it and provided incentives to both consumers and to businesses to implement some of these steps. We are way behind countries like Japan when it comes to energy efficiency, and that would make an enormous difference. Finally, Madam Chairman, I think that you are aware that there is an important convergence between the vital environmental concerns that we face and our national security interests. If we can move to conserve our energy consumption, our consumption of fossil fuels, then we get not only an economic benefit and not only an environmental benefit, but we also are able to strengthen our position relative to geopolitics. It gives us additional leverage in the Middle East and can potentially go a long way in terms of reducing some of our military obligations around the world. And so this is a win-win situation, and under your leadership I am confident that we can make great progress this year. Thank you very much. Senator Boxer. Thank you so much, Senator. Before you leave, we are going to go to a conference lunch in a moment. I just wanted to say that what has been fascinating for me to sit here through everybody's presentations is how we are coming together. We say it in our own way. We come from different parts of the Country. But I would say a broad consensus of those who spoke, a couple of exceptions, but not too many, is the time for action is now. We are not going to take a lot of time debating this anymore. We are just moving forward. If people still want to debate, it is free speech. Fine. But we are moving beyond the argument, and we are going to move forward to solutions. I would close by saying, and we will resume at 2:30 p.m., you asked the central question, and it is really I think a challenge to the whole Senate. You said, ``is this the moment we took a stand?'' Senator Obama. Right. Senator Boxer. That is the central question. I think after what I have heard today, I want to report to you, since you asked the question, I think this is the moment that we will take a stand. It is with your enthusiasm, and Senator Lieberman's and Carper's and Alexander's and all of us together, Senator McCain, and Senators from both sides, that if we all feel this is our moment, because few have this opportunity that we have been given, by chance, by fate. So, I think the answer is yes. This is the moment we are going to take a stand. Senator, did you want to respond? Senator Obama. Look, I am ready and willing to work as hard as I can on this issue. One point that I am sure has been made in previous testimony is that the world is going to be watching us over the next several years to see what kind of leadership we take on this issue. We did not ratify Kyoto, and I think all of us would acknowledge that there were problems with Kyoto, but we did not come back with a solid proposal that we could participate in. As a consequence, we abdicated responsibility. The world moved forward. The industrialized world moved forward. We were laggards on this issue and that has then given an excuse to some of the rapidly developing nations, like China and India, to say if the United States, with all its wealth and its enormous energy consumption, is unwilling to do this, why would we, who are still trying to feed our people, want to invest in dealing with this problem? It is inexcusable, I think, for a country of our wealth and ingenuity and power not to be leaders. This gives us an opportunity to show the world that we are prepared to work with them in a constructive, positive, but aggressive way to deal with this threat. The only other point I would make, for those who are still skeptical about the issue of climate change, almost everyone in this room, I presume, has some form of insurance. You hope that you are not going to get cancer. You hope that you are not going to get hit by a bus. You hope that things work out in the end, but you plan for the possibilities of personal catastrophe. Even those who are skeptical about climate change, and still dispute the pace with which climate change is taking place, or are still disputing the causes of climate change, have to acknowledge that something out there is happening that is disturbing; that it is potentially an enormous problem; and that if we can take intelligent steps now to assure that this problem is dealt with, why wouldn't we do so? Why wouldn't we take that step? It is a significant investment, but in an economy of our size, it is not an insurmountable one. As Senator McCain indicated, it actually may point the way toward an entire new set of industries and enormous economic development. So my hope is that even for those who are still debating the science, they recognize that there is a serious enough possibility of a threat that it is worthwhile for us to take the steps now, as opposed to waiting until it is too late. Senator Boxer. Senator, thank you. Senator Lieberman, the last word. Senator Lieberman. Thanks, Madam Chairwoman. I wanted to thank our colleague, Senator Obama, for his eloquent statement and for his decision to sign onto the bill as an original cosponsor with Senator McCain and me. It matters a lot to us, but more than that I think it matters a lot to the cause that you have put the weight of your support behind this proposal. I was thinking as you were talking, you know, some scientists think we are approaching a climatological tipping point where we may get to a point where it is hard to come back, and some of the effects of climate change will indeed be catastrophic. We are in a race, and the question is do we hit the political tipping point when America comes together to assume its appropriate leadership role in the fight against global warming. Does that political tipping point come before the climate tips against us? I think what we are seeing here, including your moving to a leadership position here, is that maybe we will see the light, if you will, and hear the call to responsibility and show political leadership. Second, the President spoke less than a sentence about global warming in the State of the Union, but as I said earlier today, it was enough to elicit an eruption of hope around the world. It shows how much the world is yearning for American leadership. Of course, we have a moral responsibility to do that. I hope the President's statement, and I believe it is, will also encourage some of our Republican colleagues here in Congress to now become part of a solution, because I believe the President was clearly stating this is a real problem. The final point, just to state again, none of us who are original cosponsors of our proposal believe it is fixed in stone. The key parts are fixed, which is that there needs to be a cap. We tried it without a cap during the 1990's after the Rio agreements, and nobody did anything. So you need to create a cap, and that trading system underneath, but there is a lot of room to negotiate a lot within those parameters. I am hopeful together we will do that. Thank you very much. Senator Obama. Thank you so much, Madam Chairman. Senator Boxer. Senator Obama, thank you so much. Senator Lieberman, thank you again. We will stand in recess until 2:30 p.m. when we will hear from a number of our colleagues. [Recess.] Senator Boxer. The committee will come to order. I am very delighted that we expect this afternoon Senators Levin, Murkowski, and Akaka who are here, Lincoln, Durbin, and Nelson of Florida. We have also gotten several colleagues to send in statements. What I wanted to just tell my colleagues is, we are having an amazing day. We started at 9 a.m. We heard from 14 members of the committee, and then we had outside members come in, Senators Bingaman, Feinstein, Kerry, McCain and Obama. So we are really moving along, and now with the three of you, I am just delighted. Now, is it true, Senator Levin, that you are in a very big rush? Senator Levin. Yes, Madam Chairman. [Remarks off microphone.] Senator Boxer. We did. Is it possible for us to go Levin, Murkowski and Akaka? Is that all right? OK. Senator Levin, I was just saying, we have heard from about 20 of our colleagues in person, and we have about six statements put in the record. So by the time the end of the day comes, we will have heard from more than one-third of the Senate on global warming. So we welcome you, Senator, and you have 10 minutes. If you have a statement to put in the record, we will do that. If you want to summarize it or read it, is your call. Thank you, Senator. STATEMENT OF HON. CARL LEVIN, U.S. SENATOR FROM THE STATE OF MICHIGAN Senator Levin. Madam Chairman, your meeting here is very, very important. Senator Boxer. Is your mic on? Senator Levin. Thank you. You are performing here a really great service by having hearings such as this, and opening up yourself, your other colleagues on this committee and the staff to hearing various positions on the subject at hand. Global warming is a fact as far as I am concerned. It has been for a long time. There is a consensus or near consensus among scientists that action is required. It is a global problem. It will get worse unless there is a global agreement to do something about it. I believe we need an effective international treaty for starters that is enforceable. The only way I know to enforce it and make sure that the countries that are producing more and more CO<INF>2</INF> come on board is if there are ways, if there are teeth in a treaty. One of the ways that I would contemplate if there were a reopening of the global warming, the Kyoto discussion, would be to allow countries that have trading relations with other countries who are not on board a global warming or CO<INF>2</INF> reduction scheme, to tell those countries that we are not going to accept products that come from countries that are not in agreement with a global warming scheme. I think you have to have some kind of teeth. It has to be global. It is global warming. You need an international agreement, a treaty that binds all nations, including the countries such as China and India whose increase in CO<INF>2</INF> production will swamp any reductions we are able to achieve in this Country unless they are on board. So an effective international treaty is No. 1. It has to be enforceable. No. 2, I understand that China is opening up a coal-fired powerplant every week. We can argue here all day, night and year about what we should do to reduce our contribution to this major problem, but unless China, India and other countries are on board, it is almost irrelevant. I wouldn't say it's irrelevant, but it is just going to be almost fruitless what we are hoping to do in this Country by various ways. Now, where does the United States fit? We have a chart. This is really to help me understand the picture. This is just a chart we finished this weekend. The square is the global CO<INF>2</INF> production in 2007. The square inside of that square is the U.S. contribution, which is 21 percent. The square inside that square is the transportation contribution to the U.S. contribution. And then inside that is the U.S. passenger vehicle and light trucks. So these numbers we will put in the record. World CO<INF>2</INF> production is 28 million metric tons. The U.S. contribution is 6 million metric tons. Senator Boxer. Senator, before you go on, I just want to, because I am having a difference with you on something you said, and I want to make sure. The big square is? Senator Levin. World CO<INF>2</INF>. Senator Boxer. World CO<INF>2</INF>. The next one is our contribution, 21.8 percent. Senator Levin. Right. Senator Boxer. The next square, as I understand it, according to my experts here, is the 6.8 percent is a percentage of the world, not the percentage of the United States. Senator Levin. That is correct. Senator Boxer. Because in the United States, it is one- third of the problem. Senator Levin. That is correct. Senator Boxer. Thank you. Senator Levin. It is one-third of the U.S. contribution. Senator Boxer. That is right. Thank you. Senator Levin. I misspoke. Senator Boxer. We are together. Senator Levin. The transportation contribution to the U.S. contribution, it is one-third of the U.S. contribution. Senator Boxer. Correct. Senator Levin. Then the passenger vehicle contribution is about less than one-fifth of the U.S. contribution. It is about 1.1 million metric tons of the 6.1 million metric tons. As we see it, that is the big picture. Now, a common goal would be to reduce carbon dioxide. I assume that is why we are here, is to reduce that, and I am going to focus just on vehicles, although vehicles are not the major part of the contribution. Nonetheless, obviously that is the part, coming from Michigan, which I have been focusing on for many years. Senator Boxer. Of course. Senator Levin. We want to reduce carbon dioxide. If we do it right, Madam Chairman, if we do it right, I believe we can unleash great technological advances in vehicles. We can make leaps in hydrogen use, in hybrid use, including plug-in hybrids, and biofuels, if we focus on the leap-ahead technologies and give the incentives to manufacturers to move to those technologies, instead of to meet the incremental increases which we otherwise would be arguing about relative to CAFE. On the CAFE issue itself, I want to make one point, which it may not even be visible on the chart that is up there already. That green box, which is the U.S. passenger vehicle and light truck contribution, if the bill that has been introduced relative to CAFE is passed, the reduction in the size of that box in 2012 will be that little tiny triangle in the upper right hand corner of that box. Senator Boxer. Which bill are you referring to? Snowe? Feinstein? Snowe? Senator Levin. I am not sure, the ones that call for 4 percent per year. That is kind of basically what some of the bills are doing. Now, that is the way we look at it. I think it is right. I hope it is right. We have done the best we can. It is almost unnoticeable. It is hard even to see, not just because the color was too light. That was not intentional, but if you can see that little tiny triangle in the green box. If we pass CAFE reduction or increase in CAFE, reduction in CO<INF>2</INF> of the type which is being talked about, 4 percent per year roughly, that is the reduction 5 years from now in carbon dioxide, that little tiny piece of that box represented by that triangle in the upper right hand corner. Now, Madam Chairman, if we do this right, instead of spending huge amounts of money trying to reach those numbers, if we can give incentives, tax incentives, research and development programs; if we can put together a program which will work with the automobile industry, we can instead of doing the incremental things which produce a tiny little bit of advantage for CO<INF>2</INF>, we would be able to promote the leap-ahead technologies which I know you, Madam Chairman, are interested in, and I think most of us are interested in. But that is going to be an alternative that we face. We are going to have a choice, two paths we can follow, one of which is going to not only follow the current approach on CAFE, but is going to have less resources available as a result to put into the plug-in hybrids which we all want, hopefully, and to the advanced diesels, which many of us want, and to really do something significant, dramatic with carbon dioxide. Now, if we do it wrong by focusing on that CAFE number, if that is our focus, we are going to do one other thing. We are not going to do even that much for the air because under the current CAFE rules, the Japanese, because of the way their fleets were structured and the credits which have been built up, can continue to sell large vehicles. What we are saying is if we follow the current CAFE structure is that they can sell as many big Tundras and other SUVs that they want, even though they are not more fuel efficient than comparably sized American vehicles. There is a myth that Japanese vehicles are more fuel efficient than American vehicles. They are not. The same size vehicles are the same, either fuel inefficient or fuel efficient. We have another chart on that issue, and then my time is up. We have taken examples of a large SUV, a medium-size SUV and a pickup truck. We will go down the line. A Chevrolet Suburban gets 17 miles to the gallon. A comparably sized Toyota Sequoia gets 16 miles to the gallon, less; a mid-size, Dodge Nitro, Toyota 4Runner, the same; a large pickup truck, a Silverado gets 18 miles to the gallon; Toyota Tundra gets 16 miles to the gallon. It doesn't do anything for the air. It doesn't do anything for the environment to tell people you can buy all the Toyota Tundras you want at 16 miles per gallon, but you can't buy all the Chevrolet Silverados that are more efficient. It doesn't do anything for the environment and it hurts the American economy. So I would urge you to do a number of things. No. 1, and I don't have to urge you to do No. 1, No. 1 you are doing, which is to look at this globally in terms of trying to figure out a way to reduce carbon use in the world. When you focus on the American contribution to the problem, that we give incentives to industry to do the leap-ahead technologies which will really make the difference, rather than to debate endlessly whether or not CAFE is raised 2 percent per year, 3 percent, or 4 percent a year. For two reasons: No. 1, it doesn't do much. It is a peanut in the scheme of things, if that is all we are going to do. No. 2, it is highly discriminatory against American production, American workers. We lost 3 million manufacturing jobs in this Country, and if we do nothing for the environment, at the same time we lose more jobs in America, we have made two mistakes. No. 1, we focused on the wrong place to help the environment; and No. 2, we have taken a shot at American workers instead of solving our problem. I thank again the Chair. I have gone over my time. [The prepared statement of Senator Levin follows:] Statement of Hon. Carl Levin, U.S. Senator from the State of Michigan Madam Chairman, you are doing a great service by hearing different colleagues and various positions on the subject at hand. Global warming is a fact. There is a consensus, or a near consensus, among scientists that action is required. The risks of inaction far outweigh the costs of action. The dislocations that would result from an increase of even a few degrees in global average temperatures are enormous. If we are to rise to this challenge, we need to take dramatic action and to do so without delay. Climate change is a global problem, and it requires a global solution. I believe we need an effective and enforceable international agreement that binds all nations to reductions in greenhouse gasses, including developing nations such as China and India. Although the U.S. is currently the top emitter of greenhouse gases, China and India are producing more and more CO<INF>2</INF> each year. China is opening up a new coal-fired power plant every 7 to 10 days, and in seven years China is expected to produce more greenhouse gases than we do. We can argue here about what we should do to reduce the U.S. contribution to this major problem. But unless China and India and other countries are on board, it's almost irrelevant. Whatever we are hoping to do in this country would be almost fruitless unless these other countries join in these efforts. Not only is it necessary that the countries that are producing more and more CO<INF>2</INF> come on board with a new international agreement, there must be teeth in that treaty. One of the things we must contemplate would be to allow countries to reject products from other countries that do not join an international agreement on CO<INF>2</INF> reductions. Additionally, we should insist that international development agencies the U.S. helps fund, such as the World Bank, the International Monetary Fund, and USAID not support countries that violate international agreements on global warming. Where does the United States fit into an international global warming agreement? World CO<INF>2</INF> production is 28 billion metric tons. The U.S. contribution is 6 billion metric tons, or 21.8% of world production. U.S. transportation contributes 6.8% of the world production, and U.S. passenger vehicles and light trucks contribute 4.2% of world CO<INF>2</INF> production. The U.S. passenger vehicle contribution to world emissions is therefore less than one-fifth of the U.S. contribution. (It's about 1.2 billion metric tons of the 6 billion metric tons.) Although vehicles are not the major part of the U.S. contribution, we want to reduce carbon dioxide emissions from vehicles, and, if we do it right, I believe we can unleash great technological advances in vehicles. We can make leaps in hydrogen use, in hybrid use, including plug-in hybrids, and biofuels. We need to focus on these leap-ahead technologies and give the incentives to manufacturers to develop and move to those technologies. If we focus on corporate average fuel economy (CAFE) as the mechanism for CO<INF>2</INF> reductions, we will miss an opportunity to do real good and perhaps do real harm. If we pass a bill that would increase fuel efficiency by 4% per year, the reduction in CO<INF>2</INF> emissions by 2012 would be almost unnoticeable. It would lead to a reduction in CO<INF>2</INF> of less than one-tenth of one percent of world CO<INF>2</INF> emissions. There is an alternative which makes more sense because it could have a far greater impact on CO<INF>2</INF>. We can spend huge amounts of money trying to reach increased CAFE numbers which produce only a tiny reduction of CO<INF>2</INF>. Or we can give incentives, develop research and development programs, and work with industry to promote leap-ahead technologies and alternative fuels that will really do something significant to reduce carbon dioxide emissions. If we make the wrong choice, not only are we not going to do much to reduce CO<INF>2</INF>, we will also be hurting our economy. Under the current CAFE rules, because of the way their fleets were structured and the credits which have been built up, the Japanese auto companies sell more and more large, fuel inefficient vehicles. If we use the current CAFE structure, we will be simply pushing consumers into imported large SUVs instead of domestic SUVs of the same size and efficiency. There is a myth that Japanese vehicles are more fuel efficient than American vehicles. They are not. The same sized American vehicles have the same or in some cases better fuel efficiency than their Japanese counterparts. Take the examples of a large SUV, a medium-sized SUV, and a large pick-up truck. A Chevrolet Suburban gets 17 mpg, while a comparably-sized Toyota Sequoia gets 16 mpg. For the Medium-sized SUV, the Dodge Nitro and Toyota 4Runner have the same fuel economy, 20 mpg. Finally, the large pickup truck, the Chevrolet Silverado gets 18 mpg, while the Toyota Tundra gets 16 mpg. It doesn't do anything for the air or the environment for Toyota to be able to sell all the Tundras they want at 16 mpg, but GM cannot sell all the Chevrolet Silverados they would be able to sell, even though they are actually more efficient. It doesn't do anything for the environment, and it hurts the American economy and costs American jobs. So, I would urge you to do a number of things. Number one, look at this issue of global warming globally, to reduce carbon use in the world through a comprehensive agreement which includes all countries. Second, when we focus on the American contribution to the problem, that we give incentives to industry to develop the leap-ahead technologies and alternative fuels which will really make a difference, rather than debate endlessly whether or not the highly discriminatory against the U.S. CAFE structure should be raised 2% per year, 3%, or 4%. We have lost three million manufacturing jobs in the last six years, and if we continue to focus on CAFE we will be making two mistakes. One, we focus on the wrong place and wrong way to help the environment. And two, we take a shot at American workers instead of solving our CO<INF>2</INF> problem. Again, I thank the Chair. Senator Boxer. Thank you, Senator. That is all right, Senator. Senator Murkowski, are you on the Commerce Committee still? OK. I am on the Commerce Committee, and a lot of the CAFE issue will be debated at the Commerce Committee. I think there are various degrees of interest in moving forward. But I will say your points are very well taken. I can tell you this, if you can sit down with the auto companies whom you represent beautifully, and the workers you represent beautifully, and have them come to the table to talk about what would be most useful, and then winding up with cars that get us somewhere. Because you are right. This doesn't solve the whole problem. It is just a little tiny piece of the problem. As we look at energy efficiency, appliances, you could say the same thing about air-conditioners, you know, if you represent them. Gee, we get better efficiency. But I hear you, and I think the good news that you bring to me, it is not all bad from my perspective. The good news is you are saying there are ways for the automobile industry, if I read you right, to cut back on these emissions, but it is other ideas other than CAFE. Senator Levin. With leap-ahead technology. Senator Boxer. I hear you. Senator Levin. They can do it. Senator Boxer. As someone who owns three hybrid cars, I know the difference it makes in getting what I got before, 18 miles or even less. Now, one of those hybrids gets over 50. The other one gets about 40. So the thing is, we can work together, and that is why I am very glad you came here. You could have stayed away. This is not a happy issue for you back home. I know that, but I like what you said. The only thing I would say is, I heard when you said we have to act globally, and absolutely we do. You are right. China is going to surpass us, India. We need to work with those nations. But I think we also need to take the lead as well. I mean, Britain went ahead and did it, and now according to Tony Blair, they are reaching past their goals and there are more jobs produced. But I think you have brought to the table this notion of the leap-ahead technologies, and I think the phrase is a good one. Why don't we pledge that we will work together to see whatever bills come out of here, that we are incentivizing those kinds of technologies, because I think it is essential that we do it, and it will be part of the mix. Senator Levin. Thank you. Senator Boxer. Thank you so much. Senator Levin. Thank you, Madam Chairman, and again to my colleagues, I intruded on the other order that would have taken place, and my apologies. Senator Boxer. We are fine. You all came very early. It is wonderful. Senator Murkowski, the floor is yours for 10 minutes. We are honored to have you here today. STATEMENT OF HON. LISA MURKOWSKI, U.S. SENATOR FROM THE STATE OF ALASKA Senator Murkowski. Thank you, Madam Chairman. It is nice to be back in a familiar committee room. I want to thank you for your leadership on this issue. Very early on, before you were even officially made Chairman of this committee, you indicated your intentions as it related to global warming and climate change, and your interest in hearing from everybody. So I appreciate the invitation to appear before the committee today to kind of speak from the Alaska perspective. I think it is important to remind my colleagues, up north in Alaska, we are America's only Arctic State. It is in the State of Alaska that I think it is fair to say we are uniquely affected by climate change, particularly if the trends continue as they have in the recent past. Alaska is also going to be uniquely impacted since, I don't need to tell anybody, it gets cold back there. Our winters are long and they are dark and they can be very extreme. As a consequence, Alaskans are among the highest consumers of energy on a per capita basis. We are also one of the largest producers of energy in the Nation. So we have a lot at play when we talk about the issue of climate change. Alaska theoretically leads the world in coal reserves. We likely hold about half of the Nation's undiscovered reserves of outer continental shelf oil and natural gas. We likely hold the Nation's largest single reserve of onshore oil yet to be tapped. We hold the Nation's largest unconventional source of energy; these are the gas hydrates that Senator Akaka and I have been working on developing. We have probably enough energy there with the gas hydrates to power the Country for 1,000 years. On climate change, from Alaska's perspective, in my opinion there is no question but that something is going on, something demonstrable that we can view. Since 1979, this was the start of the satellite monitoring up north, Arctic Sea ice has shrunk by an area twice the size of Texas. Sea ice covers less of the Arctic Ocean now than ever before observed. The ice sheet in March 2006 was 300,000 square kilometers smaller than it was just a year earlier. NOAA, in an updated report on Arctic conditions released last October, reported that our average permafrost temperatures in the State continue to rise. Everyone wants to know what is happening with the glaciers. Well, a few of our Alaska glaciers are advancing, but the majority are in retreat. The melting of the Arctic Ocean ice pack has meant more stretches of open water earlier and later, which has allowed the waves to buildup during the fall and spring storms. This is causing erosion damage the likes of which we just haven't seen in the State, forcing many, many of our villages and our coastal communities to look toward relocation, an extremely costly expense, but endangering the lives of many in our villages. The warmer temperatures have had impacts on marine mammals, birds and sea life. You have clearly heard about the study now underway to determine whether or not to list the polar bears as threatened under the Endangered Species Act. This is not necessarily because their current populations are down. They are not in Alaska, but because they may decline if enough sea ice melts that reduces their hunting zones in the summer and harms their nutritional intake. We also have firmer data about the Kittlitz's murrelet. This is a bird that lives near the glaciers. They are declining. Their numbers are down 83 percent since 1976 in the Kenai Fjords area; 60 percent down in Glacier Bay. We also have the black guillemot, this is an Arctic sea bird. They used to thrive in the northern islands in the Beaufort Sea, but melting sea ice has cutoff their foraging areas and wiping out, or nearly wiping out, a major colony on Cooper Island. If we had more time this afternoon, I could speak to the issue of the spruce bark beetle infestations, which killed to date more than 5 million acres of Sitka spruce trees. We could talk about the lakes that appear to be drying up since the melting permafrost is allowing their waters to drain. We could talk about the effect on the fisheries and the marine mammals. We see our crab stocks falling, but our salmon stocks have been increasing. The question is whether or not we are simply in a natural cyclical warming trend that will reverse itself, or whether man-made greenhouse emissions are permanently changing the climate, overwhelming nature's ability to maintain a balance in the atmosphere. Now, the props that I have in front of me today are not just stuff from my desk. These are copies of the scientific reports that my office has been accumulating since I have been here in the Senate on climate change as it relates specifically to the State of Alaska. So there are some of the reports that say absolutely we are seeing a change. There are other reports that will contradict that. Last fall's NOAA report entitled, ``State of the Arctic,'' actually reports that ocean salinity and temperature profiles at the North Pole and in the Beaufort Sea, which had shown abrupt warming in the 1990's, have been moderating back toward normal since the year 2000. We have permafrost layer thickness at some testing stations in Alaska that have actually been slightly increasing over the past few years, although I will note that that is not the case in a majority of our test sites. NOAA's report for the end of last winter showed a return to more normal temperatures in parts of the Arctic Ocean that could drive both sea ice and air temperatures back to their previous norms. So again, the question that we find ourselves asking is whether these findings are simply a natural variability in the other direction, or is it a sign that an atmospheric cycle is ending. I have to admit, I don't know. I don't know the answer. So what I would like to suggest today, though, is not focusing too exclusively on one report, and the Stern Commission report, or the critiques of it, or that we don't venture into the storms of whether or not 2005 record number of hurricanes in the Atlantic were furthered by global warming. Those are to a certain extent a sideshow, a detractor of I think what our main issue is. Today, I am not going to focus on all the ideas to directly limit greenhouse gases, whether by cap and trade or mandatory regulations. I think what we need to consider is that all of these options will mean a more complex, complicated, a time consuming process that deserves careful consideration. I think, Madam Chairwoman, you are starting that conversation today, and that is very, very important. What I am suggesting that we do now is to turn our attention to seriously funding, funding through both grants and tax policy, the research and development of the new technologies to produce alternative forms of energy, some renewable, some continuing to come from fossil fuels, but in ways that cause little or no greenhouse gas emissions. And then to produce that energy at prices that will not harm our economy or lower the standard of living, and as you have mentioned, a key focus on promoting energy conservation and fuel efficiency. We have a great deal to do in that area, but without the technological breakthroughs and an economy that is strong enough and healthy enough to nourish and move forward that scientific advancement, we won't be able to cut our levels of emissions of greenhouse gases. We won't be able to help the developing world and other nations to reduce their emissions, something that is going to be vitally important as we look to what China is doing, and their world leader as an emitter of carbon. What I am proposing is that we debate the science and what to do about it, and that while we are debating, we launch a full scale effort to fund a host of technologies to improve energy production that is going to be needed regardless of the outcome of the climate change debate. In 2005, we passed legislation to aid wind and biomass and solar. We worked to jump start the next generation of nuclear power. We took some small steps toward combined cycle coal gasification. We need to do more of that. We need to provide the same support for geothermal, for hydroelectric, for all forms of budding ocean energy. This is an area I get excited about, and coming from California, you should have some interest there, too. We need to do the same things that we have done for wind, solar and biomass. We need to increase our funding for the advanced coal technologies so that we can make carbon sequestration affordable, not just possible. That is something that we must focus on. We have to continue to support the development of biofuels, as the President has suggested, to help them to maturity, but to get them to the point where they are economically and environmentally sound at the same time. We need to treat funding alternative energy sources and advancing fuel conservation as a priority, and not as an afterthought. We in Congress 2 years ago authorized considerable funding for a good bill to promote alternative energy technologies, but really, in fairness, we have funded very little of it. We need to implement the loan programs that we created. Because of the fiscal impacts of aid to our new technologies and our budget process, we limited the tax breaks in 2005 to such short time periods that most people can't actually design and then build the plants in time, and they can't benefit because we have narrowed those windows down. Frankly, the private sector would have been insane to proceed with too many projects based on what I consider to be very tepid price signals and a shallow show of Federal support that was offered. I am going over my time, Madam Chairman, but I want to put in a brief plug for legislation that I have introduced that would improve our CAFE standards and performance, authorize more funding for geothermal, ocean energy, small hydrate energy. I have a wonderful acronym, the REFRESH Act, and I would love to talk with you about it at some point in time. But again, we must expand the pace of moving new energy technologies out of the development and into the practical use so that we can move the economy forward, producing the new industries, the new jobs for Americans from the new technologies that we advance. I look forward to working with this committee, even though I am no longer a member. This is something that regardless of the State, regardless of the committees that you serve, we all have an interest in what is happening to our environment as it relates one State to another, one country to another. So I do hope that this is the beginning of a good and a productive dialog, and would encourage you to keep up the very ambitious pace that you have set already. [The prepared statement of Senator Murkowski follows:] Statement of Hon. Lisa Murkowski, U.S. Senator from the State of Alaska Madame Chairman (woman), Ranking Member Inhofe, thank you so much for the opportunity to appear before you. It is a pleasure to be back among you all today; who says you can't go home. I appreciate the opportunity to offer my perspectives as Alaska-- America's only Arctic state--will be uniquely affected by climate change if trends continue like they have in the recent past. Alaska also will be uniquely impacted, since Alaskans, to ward off the long winter's cold, are among the highest consumers of energy on a per capita basis, and also one of the largest producers of energy in the nation. Alaska theoretically leads the world in coal reserves, likely holds about half of the nation's undiscovered reserves of Outer Continental Shelf oil and natural gas, likely holds the nation's largest single reserve of onshore oil yet to be tapped, and holds the nation's largest unconventional source of energy, gas hydrates--probably enough to power the country for a 1,000 years. On climate, from an Alaska perspective, there is no question that something has been going on. Since 1979--the start of satellite monitoring--Arctic sea ice has shrunk by an area twice the size of Texas. Sea ice covers less of the Arctic Ocean now than ever before observed. The ice sheet in March 2006 was 300,000 square kilometers smaller than it was just a year earlier. NOAA in an updated report on Arctic conditions released last October reported that average permafrost temperatures in the state continue to rise. While a few Alaska glaciers are advancing, the majority are in retreat. The melting of the Arctic Ocean ice pack has meant more stretches of open water earlier and later, which has allowed waves to build during fall and spring storms, causing more coastal erosion damage than previously seen. That has endangered a number of villages. The warmer temperatures have had impacts on marine mammals, birds and sealife. You have heard about the study now underway to determine whether to list polar bears as threatened under the Endangered Species Act, not because their populations currently are down--they aren't--but because they may decline if enough sea ice melts that it reduces their hunting zones in summer and harms their nutritional intake. There is firmer data that Kittlitz's murrelet, a bird that lives near glaciers, are declining, their numbers down 83% since 1976 in the Kenai Fjords and 60 percent in Glacier Bay. The black guillemot, an Arctic seabird, used to thrive on northern islands in the Beaufort Sea. Melting sea ice has cut their foraging areas, nearly wiping out a major colony on Cooper Island. If I had more time we could discuss spruce bark beetle infestations that have killed more than 5 million acres of Sitka spruce trees. We could talk about lakes that appear to be drying up since melting permafrost is allowing their waters to drain. We could talk about affects on fisheries and marine mammals: crab stocks falling, while salmon stocks have been increasing. But the question is whether we are simply in a natural cyclic warming trend that will reverse itself or whether man-made greenhouse gas emissions are permanently changing the climate, overwhelming nature's ability to maintain a balance in the atmosphere. My staff has been collecting scientific reports on climate change as it relates to Alaska for several years, (as you can see from the piles in front of me); yet the jury still seems out on the issue. Last fall's NOAA report, State of the Arctic, actually reports that ocean salinity and temperature profiles at the North Pole and in the Beaufort Sea, which showed abrupt warming in the 1990s, have been moderating back toward normal since 2000. Permafrost layer thickness at some testing stations in Alaska actually have been slightly increasing over the past few years--although that is not the case at the majority of test sites. And NOAA's report for the end of last winter (March 2006) showed a return to more normal temperatures in parts of the Arctic Ocean that could drive both sea ice and air temperatures back toward their previous norms. Are these findings simply natural variability in the other direction or a sign that an atmospheric cycle is ending? I don't know. What I would like to suggest, though, is that we shouldn't focus too excessively on the Stern Commission Report, or the lengthy critiques of it, or that we don't venture into the storms over whether 2005's record number of Atlantic hurricanes were furthered by global warming. Those are side shows. And for this moment, I'm not even going to focus on all the ideas to directly limit greenhouse gases, whether by mandatory regulations, cap-and-trade mechanisms, or carbon taxes. In a multi-trillion dollar economy, analyzing what all of those options will mean is a complex and time-consuming process that needs more careful consideration than we have time for today. What I am suggesting we do right now is turn our attention to seriously funding through both grants and tax policy, the research and development of new technologies to both produce alternative forms of energy, some renewable and some continuing to come from fossil fuels-- but in ways that cause little or no greenhouse gas emissions--and then to produce that energy at prices that will not harm our economy or lower our standard of living. And as a corollary we should focus on promoting energy conservation and fuel efficiency; and also on more domestic production. Even if we overnight perfect hydrogen fuel cell vehicles, we will still need to find and use more oil, natural gas or coal to produce the feed stocks for petrochemicals and building supplies and the thousands of products that come from hydrocarbons: everything from aspirin to plastics. Without technological breakthroughs and an economy that is healthy enough to nourish scientific advancement, we can't cut our emissions of greenhouse gases by 60% to 80% without returning to the Stone Age. And we won't be able to afford to help the developing world to reduce emissions, something that will be vital given that China is likely to surpass the U.S. as the leading emitter of carbon within just two years. What I am proposing is that while we debate the science and what to do about it, that we launch a full-scale effort to fund a host of technologies to improve energy production that will be needed regardless of the outcome of the climate change debate. In 2005 we passed legislation to aid wind, solar and biomass. We worked to jumpstart the next generation of nuclear power and we took fledging steps toward combined-cycle coal gasification and liquid fuel plants that can actually separate out the carbon they emit and then, if we have the will, pump it and lock it back underground. We need to do far more of that. We need to provide the same support for geothermal, hydroelectric and all forms of budding ocean energy that we have provided for wind, solar and biomass/landfill gas development. We need to increase our funding for advanced coal technologies so that we make carbon sequestration affordable, not just possible. We need to utilize the CO<INF>2</INF> we will be generating to get more oil out of the ground, so-called enhanced oil recovery, because the hybrid vehicles that are reducing our fuel consumption run best on gasoline--at least until hydrogen fuel cells can be perfected or battery life for plug-in hybrids can be improved significantly. We need to get on with finding a storage solution for nuclear waste, since nuclear power does not produce greenhouse gases, and because the world is proceeding with building nuclear power plants whether we do or not. So we will be facing the issue of their waste whether we follow suit or not. We need to continue to support the development of bio-fuels as the President proposed, and help them to maturity, but only to the extent that they ultimately will prove economically and environmentally sound. And I truly think we need to treat funding alternative energy sources and advancing fuel conservation as a priority, not an afterthought. We in Congress two years ago authorized considerable funding for a good bill to promote alternative energy technologies, but we have actually funded very little of it. We and the Administration have barely begun to implement the loan programs that we created. Because of the fiscal impacts of aid to new technologies on our budget process, we limited the tax breaks in 2005 to such short periods that most people couldn't actually design and build plants in time and thus couldn't benefit. And frankly the private sector would have been insane to proceed too far with too many projects based on the tepid price signals and the shallow show of federal support that we offered. At this point I want to put in a plug for a bill I introduced that would improve CAFE standards and performance, and authorize more funding for ocean, geothermal and small hydro energy development. I'll be happy to buttonhole you to explain the merits of S. 298, the REFRESH Act, and I'll be happy to discuss my support for the many good ideas that others have already proposed. We must expand the pace of moving new energy technologies out of development and into practical use so that we propel our economy forward--producing new industries and new jobs for Americans--from the new technologies we advance. In the meantime I believe we still need to both explore for and produce fossil-fuel energy to help cover our needs and improve our national and economic security until this new technology can change the current energy playing field. The idea that we aren't ``weaning ourselves'' off oil, simply because we continue to produce it is irrational, as long as we seriously fund, encourage and send clear signals to the markets that we want to move toward using environmentally cleaner forms of energy, as soon as they can be safely advanced. Thank you for your time and attention. Senator Boxer. Thank you so much, Senator Murkowski. We do miss you on this committee. I can assure you that new technologies, I think there is broad agreement that we can't do this without the new technologies. In a free market system, they have to be able to compete, and that is why we need to make some of these investments that you are talking about. But I think you are going to find a broad array of agreement on that. I think one of the interesting things about my having this hearing and listening to everybody is that there is just enough common ground here, I think, where we can come together on various aspects, because there isn't one thing that we are going to do to solve it. It is going to be many things. I think you have laid out that whole new technology idea. I will say this. I think the majority of this committee, if not every person, has agreed it is time to do something. You are right. The debate will continue, but in most of our minds, there is a consensus. We are going to move forward. I think you have put before us some very exciting ideas, and I will work with you on your bill and look forward to moving those ideas into law. Senator Murkowski. If the committee would like to avail themselves of any of ours studies, we would be happy to share them with you, but we do look forward to working with you. Senator Boxer. We do appreciate it, and I know there are so many words written about global warming. One of the things I did today in my presentation was to take what I consider to be the growing consensus from the business community, even from some of the largest producers of coal, or I would say purchasers of coal like Duke Energy and others, saying now it is time to really move. That is really remarkable, to have the business community saying hurry up and do something. Because what is happening is a lot of our States and localities are moving ahead, and then there is a patchwork of these different rules, not to mention the EU has different rules. So I think it is important for the economic prosperity of this Country in the future is to grapple with this issue. I think you have laid that down. I thank you for your contribution. Senator Akaka, it is wonderful to have Hawaii and Alaska here together, our newest States and our States that will be very impacted by this. So we really appreciate your being here, Senator Akaka. Thank you again, Senator Murkowski. STATEMENT OF HON. DANIEL AKAKA, U.S. SENATOR FROM THE STATE OF HAWAII Senator Akaka. Thank you very much, Madam Chairman. Madam Chairman, I want to congratulate you and your Committee on Environment and Public Works, and what you are doing in promoting global warming as a problem, and as an opportunity to find relief because of global warming. I would like to also commend our new colleague, Senator Sanders, and you for your hard work and efforts to continue the legacy of Senator Jim Jeffords on this critical topic of global warming. I congratulate you both on the reintroduction of S. 309, the Global Warming Pollution Reduction Act of 2007, of which I am an original cosponsor. I also commend Senators McCain, Lieberman and Bingaman, who have each been critical in introducing legislation that has moved the debate forward, bills which I have cosponsored or supported as well. The cumulative effects of this discussion and debate are gratifying, and I believe we have the momentum to move our Country forward with your leadership. The global warming debate began in Hawaii over 30 years ago, when the Mauna Loa Climate Observatory first documented evidence of increased carbon dioxide levels in the Earth's atmosphere. The international scientific community now concurs that human activities are altering the entire system. It is important that the United States, which is the world's largest emitter of greenhouse gases, be accountable as a leader in reducing emissions and combating the threats resulting from global warming. This bill, one of several that we will be considering during the Congress, is comprehensive legislation that will assist in decreasing U.S. greenhouse gas emissions. I have spoken before about the fact that my home State of Hawaii is disproportionately susceptible to increases in sea level and ocean temperature that jeopardize public safety, economic development, and the health of our unique island ecosystems and wildlife. It is clear that coastal States will also face similar challenges caused by sea level rise, resulting in the flooding of low-lying property, loss of coastal wetlands, beach erosion, salt water contamination or drinking water, and damage to coastal roads and bridges. Immediate action is needed to reverse current trends and to reduce emissions. This will be achieved by the energy efficiency targets set by S. 309, that will assist both the industry and consumers in meeting these standards. A substantial investment in research to develop technologies to control greenhouse gas emissions, including renewable energy technologies, will play a crucial role in successfully meeting the objectives of the legislation. This investment will also boost economic activity and create jobs in the United States. In addition, I have great concern for the public health implications for tropical and subtropical areas like my State. Part of the South Atlantic and the Caribbean and Gulf of Mexico States, and territories in the Pacific. Scientists are warning that the effects of global warming will only intensify the likelihood of severe weather events, and of overall warming, particularly in tropical areas. These trends are likely to lead to a number of public health issues, such as the growth and spread of infectious disease, air pollution, asthma and waterborne diseases. In fact, the group, Physicians for Social Responsibility, has called responding to global warming, ``a public health imperative.'' S. 309 set ambitious goals which will put the United States on a path to provide necessary requirements and incentives for EPA to minimize U.S. emissions and assist in the stabilization of global atmospheric greenhouse gas concentrations. We have much at stake, and I am pleased that the United States can now take a leadership role in promoting responsible energy use on a global level. I remain committed, Madam Chairman, to working with my colleagues to enact legislation that will improve the health of our planet and the quality of life for all Americans. Thank you and I ask that my full statement be submitted for the record. [The prepared statement of Senator Akaka follows:] Statement of Hon. Daniel K. Akaka, U.S. Senator from the State of Hawaii Thank you, Chairman Boxer, Ranking Member Inhofe, and Members of the Environment and Public Works Committee for holding this hearing today. I commend my friend and colleague, Senator Boxer, and our new colleague Senator Sanders, for their hard work and efforts to continue the legacy of Senator Jim Jeffords on the critical topic of global warming. I congratulate them both on the re-introduction of S. 309, the Global Warming Pollution Reduction Act of 2007, of which I am an original cosponsor. I also commend Senators McCain and Lieberman for increasing awareness on the issue over the last five years and introducing their groundbreaking legislation. In addition, I thank Senator Bingaman for his leadership in putting forward a cap and trade bill that I supported during debate on the 2005 Energy bill and in the critical Senate vote in 2005. The cumulative effects of this discussion and debate are gratifying and I believe we have the momentum to move our country forward. The global warming debate began in Hawaii over 30 years ago when the Mauna Loa Climate Observatory first documented evidence of increased carbon dioxide levels in the earth's atmosphere. The international scientific community now concurs that human activities are altering the climate system. It is important that the U.S., which is the world's largest emitter of greenhouse gases be accountable as a leader in reducing emissions and combating the threats resulting from global warming. This bill, S. 309, is one of several that we will be considering during this Congress and it is comprehensive legislation that will assist in decreasing U.S. greenhouse gas emissions. I have spoken before about the fact that my home state of Hawaii is disproportionately susceptible to increases in sea level and ocean temperature, which jeopardize public safety, economic development, cultural resources, and the health of our unique island ecosystems and wildlife. It is clear that coastal states will also face similar challenges caused by sea level rise resulting in flooding of low-lying property, loss of coastal wetlands, beach erosion, saltwater contamination of drinking water, and damage to coastal roads and bridges. In addition, I have great concern for the public health implications for tropical and subtropical areas like my state, Pacific island nations, and states along the Atlantic, Carribean, and Gulf coasts. Scientists warn us that global warming will intensify the likelihood of severe weather events and overall warming, and that these trends are likely to lead to a number of public health issues, such as the growth and spread of infectious diseases, air pollution and asthma, and water-born diseases. In fact, the group Physicians for Social Responsibility has called responding to global warming ``a public health imperative.'' As stewards of our planet, immediate action is needed to reverse current trends and actively seek solutions to curb the buildup of greenhouse gases. S. 309 sets energy efficiency targets to assist both the industry and energy consumers in meeting these standards. This legislation lays out ambitious goals and necessary incentives to minimize U.S. emissions and assist in the stabilization of global atmospheric greenhouse gas concentrations. We must invest in technology research to control greenhouse gas emissions. Encouraging renewable energy technologies will play a crucial role in successfully meeting the objectives of this legislation. This investment will also boost economic activity and create jobs in the U.S. Much is at stake and I am pleased that the U.S. can now take a leadership role in promoting responsible energy use on a global level. Under the guidance provided by this bill, I firmly believe the state of Hawaii, along with the rest of the United States, will be poised to substantially reduce greenhouse gas emissions. I remain committed to working with my colleagues to enact legislation that will improve the health of our planet and the quality of life for all Americans. Senator Boxer. Without objection. Senator Akaka, I want to thank you for your leadership here. You were one of the first to go on the Jeffords bill and one of the first to go on the Sanders-Boxer bill. I call that the gold standard bill because I believe that is the bold bill, that is the one that does what California does. It is really the best insurance policy that we have against the worst predictions. I think what has been so wonderful, and I will share this with Senator Lincoln, who I will call up in a moment, we have already heard from 27 Senators today. It is just unprecedented. We had 14 members of the committee. We had seven of you who are not on the committee, McCain, Feinstein, Kerry, Obama, Bingaman, Murkowski and Akaka. We have two statements in the record. We now have an additional four. Now we are going to hear from Senators Lincoln, Durbin, and who are the other two? Nelson of Florida. So we are really getting toward hearing from about one-third of the Senate. With that, I will let you go, Senator Akaka. I thank you very much for your wisdom, and we will work together. Senator Akaka. Thank you very much. Senator Boxer. I am thrilled that our colleague, Senator Blanche Lincoln of Arkansas is here. I am asking her if she would come up and join with us. She is on some very important committees, not the least of which, of course, is Finance, which is going to have a lot of ability here to give the kind of incentives and tax breaks and so on, that Senator Murkowski talked about, Senator Lincoln, the incentives to our business community, incentives to our consumers to do the right thing, and to move to those better technologies. So we welcome you here. I am really thrilled that you are here. You have 10 minutes, so please use it as you will. STATEMENT OF HON. BLANCHE LINCOLN, U.S. SENATOR FROM THE STATE OF ARKANSAS Senator Lincoln. Thank you, Madam Chairman. It is certainly not by accident that I do sit on the Finance Committee, the Agriculture Committee, and the Energy Committee, because renewable energy, as well as looking for alternative energy sources, is absolutely essential for me. As you and I have mentioned many times, it is absolutely essential for future generations, for our children and our grandchildren, that we put the dedicated time and energy into finding the solutions that will really make a difference in their lives. So pairing those committees up together, I feel like I can look for the new and innovative ideas. I think I can look for the incentives that need to be there. I also think that we can look at using the opportunity for renewable fuels and for alternative energy sources as a way to revitalize rural America. I look forward so desperately in working with you to really focus on what this could mean for rural America in the coming years. I think it is an important place for us to make an investment, and it is an essential part of our culture in this great Country, and I think it will make a big difference for the lives of all Americans, not just those that live in rural America, but for our entire Nation. So I am grateful to your committee, and especially to you. I appreciate the opportunity to come before the committee and speak on such a critical issue to all of us. I would especially like to thank you, Senator Boxer, for your leadership and your energy particularly on climate change. There is no doubt that if you singlehandedly had to, you could put the energy that needs to be into this issue to solve this problem. We are so grateful to you for your dedication and your energy toward that. You have been out front on this from the beginning, and I certainly look forward to working with you in this Congress. In 2003, Madam Chairman, when the Climate Stewardship Act came up for a vote in the Senate, I opposed it. It was one of the most difficult votes I have taken in the Senate, and I had great thought and great prayer over that vote, knowing that there were things that we needed to do, but wondering whether or not we had arrived at being able to do it through that bill. I was concerned that the bill could drive up utility rates, with energy companies forced to use more expensive fuels or forced to develop new infrastructure, with the attendant costs being passed on to the consumers. In a State like mine, Madam Chairman, with pervasive crippling poverty, even a $5 a month increase is enormously significant in the lives of many of our families. These are people living paycheck to paycheck, with all of their income committed each month, and oftentimes more than they have in their pay being committed. That $5 has to come from somewhere, if that is what the increase is. For a family with children, it might mean school supplies or new shoes or books. For an elderly person, it could mean giving up money that should be spent on prescription drugs in order to pay those utility bills. Either way, this would be forcing the least amongst to bear a burden that many others would not. At that time, that was the way I viewed the issue and could not support the bill on the floor. Since then, I have had continual dialog with many of my colleagues about how we include in what we do the capacity that we have in this great Nation, and certainly in this body, to be able to ensure that there are provisions there that will not put the burden of what it is we have to do collectively as a culture and as a people, on the backs of those that are the least among us. Now, I stand before you as not only a supporter of the Climate Stewardship Act, but one of its original cosponsors. Many have asked what has changed. The answer is simple. It is abundantly clear that we must take action on this issue now if we are to have any hope of correcting it. We are stewards of this Nation and of this planet. Our ultimate responsibility is to leave it a better place for our children. I fear that if we do not take action soon, we will have lost that chance. Madam Chairman, it is as simple as that. We have an opportunity. We have a window of opportunity that has grown smaller and smaller, and if we don't seize the opportunity now, it is not only what we might do to ourselves, but unfortunately what we might do to our children and our children's children. I would like to give you an example from my home State of Arkansas, and this is one that you will see readily applies to me and to my family. Recently, my husband and I took our two boys, Reese and Bennett, duck hunting. My husband and I both grew up in the duck blinds with our fathers. It was a family outing. My sisters as well would join us, and our fathers spent many cold mornings in the duck blind with their children. We visited there. We talked about the environment. We talked about the world around us. We talked about challenges that we faced then, and that we might face in the future in our lives. It is something that generations of our families have enjoyed for quite a long time, being in the outdoors, enjoying one another's company, in the solitude of the environment. Recently, a study by the Arkansas State University revealed the potential effects global warming would have on duck populations and migration patterns in Arkansas. What they found was not surprising. Ducks migrating from the north were not coming as far down the continent as they once did, likely because they didn't have to fly as far to find the climate that was acceptable to them. While the northern and middle parts of the Country were experiencing increasing numbers of ducks, the southern region was seeing a dramatic decrease. If climate change were to continue on its current path, it is not too farfetched to say the ducks could stop migrating to the Deep South altogether as warmer temperatures in more northern regions would reduce their need to do so. As the study points out, the effect on the small communities whose economies depend on hunting season could be devastating. Now, I know that is regional, and I know it is something that probably only myself and a few others could really identify with. My objection to supporting the Climate Stewardship Act in 2003 was based on economics, but as the above example illustrates, the economic impacts are far from straightforward. They multiply across the globe and certainly across regions. These communities that depend on duck season and the boost it gives their economies once a year are filled with the people I described earlier as living from paycheck to paycheck. If a mother who is working as a waitress at the local diner loses her job because the diner closes due to the lack of its usual customers during hunting season, is that not an economic impact? We can write these bills in such a way as to compensate for an increase in utility rates for low-income people, and any bill I support must do just that. But I am proud to say that my colleagues have reached out to me, understanding my concerns about our low-income consumers and making sure that we will have a portion of that bill dedicated to that. But I do not know if Congress has the capability to rebuild communities across this Country that will have such severe economic livelihood fundamentally altered by climate change. It is time that we begin to ask serious questions about not just the cost of action, but more importantly, Madam Chairman, the cost of inaction. These costs can be quantified, but they can also be psychological. My husband and I want our boys to have that wonderful opportunity to hunt on those very same lands that for generations in our families they have enjoyed, being a part of the family, enjoying one another, and enjoying the gorgeous environment that we have been blessed with. It is my belief that the only way this can happen is if we take significant action, not way down the road, but in the near future. I want to thank the committee for giving me the opportunity to speak on this very important issue and I certainly look forward to working with this Chairwoman and this committee and all of the others interested in this body, in moving something in a timely fashion that will truly make a difference for future generations. Thank you, Madam Chairman. [The prepared statement of Senator Lincoln follows:] Statement of Hon. Blanche Lincoln, U.S. Senator from the State of Arkansas Ladies and gentleman of the committee, I appreciate the opportunity to come before and speak on this very important issue. I would like to especially thank Senator Boxer for her leadership and energy on climate change. She has been out front on this from the beginning and I look forward to working with her in this Congress. In 2003, when the Climate Stewardship Act came up for a vote in the Senate, I opposed it. It was one of the most difficult votes I have taken in the Senate. I was concerned that the bill could drive up utility rates, with energy companies forced to use more expensive fuels or forced to develop new infrastructure, with the attendant costs being passed on to consumers. In a state like mine, with pervasive crippling poverty, even a $5 a month increase is significant. Now, I stand before you as not only a supporter of the Climate Stewardship Act, but an original co-sponsor. Many have asked, what changed? The answer is simple; it is abundantly clear that we must take action on this issue now if we are to have any hope of correcting it. We are stewards of this nation and this planet, and our ultimate responsibility is to leave it a better place for our children. I fear that if we do not take action soon, we will have lost our chance to do so. Let me give you an example from my home state of Arkansas. Recently, my husband and I took our two boys, Reece and Bennett, duck hunting. My husband and I both grew up in duck blinds with our fathers, and our fathers spent many cold mornings in duck blinds with their fathers. It is something that generations of our family have enjoyed. Recently, a study by Arkansas State University revealed the potential effects global warming could have on duck populations and migration patterns in Arkansas. What they found was not surprising. Ducks migrating from North were not coming as far down the continent as they once did, likely because they didn't have to fly as far to find a climate that was acceptable to them. While the Northern and middle parts of the country are experiencing increasing numbers of ducks, the Southern Region is seeing decreases. If climate change were to continue on its current path it is not too far fetched to say that ducks could stop migrating to the deep south altogether as warmer temperatures in more northern regions would reduce their need to do so. As the study points out, the effect on the small communities whose economy depends on hunting season could be devastating. My objection to supporting the Climate Stewardship Act in 2003 was based on economics, but as the above example illustrates, the economic impacts are far from straight forward. It is time that we begin to ask serious questions about not just the cost of action, but the cost of inaction. Those costs can be quantified, but they can also be psychological. My husband and I want my boys to have the opportunity to hunt on the same lands that their grandfathers and our grandfathers hunted on. It is my belief that the only way this can happen is if we take significant action in the near future. I want to again thank the committee for giving me the opportunity to speak on this important issue and look forward to working with you during this Congress. Senator Boxer. Senator, I really want to thank you for your contribution. As usual, you have got it down to, you know, the family. It all comes back to that at the end of the day. You would have been very interested to hear Senator Whitehouse go through how the southerners, particularly from the Carolinas, would always come up to Rhode Island just to get away from the very hot summers, and now it is already starting to change, and the summers in Rhode Island now are getting very warm. You point out that these are real serious changes in our way of life, in the American way of life. You talked about the hunting industry, then of course there is the fishing industry, there is the skiing industry that we have so much in our State. The ripple effect to these recreation industries, as you point out, to the waitress who serves in the diner down the road, is what we are talking about here. I think on a larger scale, you have taken it to the small scale, on a larger scale the Stern Report that basically said every dollar we put in now to mitigate will come back to benefit us in about $5 in worldwide gross product. So there is no question that you have hit on something, and I am very proud that you are on the, I think it is now Lieberman-McCain bill, or McCain-Lieberman. I think that is a huge amount of momentum for that approach of a cap and trade. The fact that you allowed yourself to be open to the arguments just says a lot about you as a legislator, and your constituents should be very proud. Senator Lincoln. Well, I appreciate that. I just want to say, you know, so much of this is about the environment, but it is about the environment of our lives and not just the outdoors. But if you think about it, one of the things that the American family is craving for the most is time. They want time to spend as a family so they can strengthen their family, so they can love and encourage their children, so that they can be a family and enjoy all of the aspects of that. I would say that the climate, the environment that we have in this great land is one of those things that encourages that time, whether it is time that you spend on vacation at the beach or in the duck woods, or really just traveling to see the wonders of our great Nation. But it is time that people spend, and more often than not, when they need time to be a family, what they look to is the outdoors, the environment, and it is an enormous part. I would just say that if there is anything, I have always been an enormous believer in recycling, whether it is recycling of plastics or aluminum or anything else. One of the best ways I could convince the men in my life to recycle was to let them know that the more they recycled, the less would go into landfills that would usually cover up the duck woods that they wanted to hunt in. So I think as we look for the practical application of making sure that whoever may not be sold on the initiatives that we want to see move forward, there are multiple ways we can explain it to them. I look forward to working with you to do just that. Senator Boxer. Senator, no one could do it like you can. I thank you very much. We will take a brief break while we wait for, is it two more Senators? Senator Nelson and Senator Durbin. So we will stand in recess. Thank you, Senator Lincoln, very much. [Recess.] Senator Boxer. Senator, we started in this committee room at 9 o'clock a.m. We have heard from about 27 Senators either in person, the vast majority, and a few in writing. You and Senator Durbin are going to close down this hearing today, which has been just extraordinary. I know what a great steward you are of the environment, so I was thrilled when I heard that you wanted to be heard. So you have the floor for 10 minutes, and I know that you are going to be part of the solution. So please go right ahead. STATEMENT OF HON. BILL NELSON, U.S. SENATOR FROM THE STATE OF FLORIDA Senator Nelson. I am going to, with your permission, distill my remarks, Madam Chair, and let me just say, as you and I have discussed privately for some period of time, I became more of an environmentalist when I went into space and could look back and see the entire ecosystem at once. When you look at the rim of the Earth from space, you see a thin little film and you realize that that is what sustains all of life. That is the atmosphere. From that perspective, our home is so beautiful, and yet it looks so fragile. It is clearly exceptional. Do you want me to suspend and defer to my senior colleague? Senator Boxer. You just go ahead. You have 9 minutes left, and Senator, you have the floor, and you will close down these hearings today, if that is OK. Bill was just talking about his trip up in space, and he is so articulate about it, this little thin, what did you say, film of? Senator Nelson. As you look at the rim of the Earth from space, you see the thin film that sustains all of life. It is the atmosphere. Our home is so incredibly beautiful. It is this colorful creation suspended in the middle of nothing, and space is nothing. Space is an airless vacuum that goes on and on for billions of light years, and there in the middle of it is this wonderful, colorful, alive planet that is home. You can't help, when you have an experience like that, of having some sense of greater responsibility for stewardship. For example, coming across South America, even at that altitude, I could see the destruction of the rain forests by the color contrast with the naked eye. In the same window of the spacecraft, I could look and see to the east partially the result of that destruction of the rain forest, because at the mouth of the Amazon, the waters of the Atlantic were discolored for hundreds of miles out into the Atlantic from the additional silt that comes. Now, silt is a natural phenomenon in the Amazon, but the destruction of the trees upriver is all the more so. So I wanted to lay that as the predicate to tell you why I come to the table as a sensitive person for the environment. Now, of course, the States that we represent likewise are highly sensitive, and of course global warming, if somebody is going to be affected, it is going to be Florida. You have about 800 miles of coastline in your State. We have 1,500 miles of coastline in Florida, only exceeded by Alaska, but Alaska doesn't have any beaches compared to the beaches of Florida. So there is a lot at stake. I can tell you when I was Insurance Commissioner, I could not get the heads of the insurance companies out of the sand. They were acting like ostriches on something that was going to have an enormous financial consequence upon them, because as the Earth warms and the seas rise, the storms have become more frequent and more ferocious. The plagues increase, and you have the result in a State like mine. So I come to the table convinced, and we have been going through this drill where people are saying, and the scientific community is split. Well, anybody can say that they are split, but the vast majority, almost unanimous opinion, is that it is real. So we ought to do something about it and quit playing these games. So I have sponsored the McCain-Lieberman bill. I have done that for the last 4 or 5 years. I am doing it again, but thank goodness, you are the Chair and we are going to get something moving. There will be others. Your colleague from California wants to talk to me about a particular approach that she has. Global warming, you are really not going to do anything until we address the issue of fossil fuels. Wouldn't it be wonderful for us suddenly to understand that two policy goals, protecting the environment and at the same time getting ourselves less dependent on foreign oil, they happen to coincide, and that you could address one by addressing the other. So why are we still the handmaidens of the oil industry and the American automobile industry that continues to refuse to modernize? Why don't we have a mandated 40 miles per gallon fleet average within 10 years? Look what that would do to our dependence on foreign oil that comes from where? Places like the Gulf, Nigeria, Venezuela, which happen to be areas of considerable political instability. We have gone back to sleep when we had the warning in the early 1970's and we had again warning in the late 1970's, and here we are. We are back. Now, I am going to conclude my remarks with something that I intend to address since Danny Inouye has made me his new Chairman of the Space and Related Sciences Subcommittee in the Commerce Committee. That is, we have a bunch of highly sensitive environmental surveying satellites that are going to go kaput by the year 2010. We have a lack of cooperation between NASA and NOAA. We have some satellites that have been planned to replace the other satellites that haven't been designed right. What this is going to be is a spelling disaster if we don't get it up. Now, I don't want you, Madam Chairman, to fall for this seductive argument that it is either manned space flight or this. It isn't that. In a little R&D agency like NASA, which has produced so much accomplishment of exploration of peeling back the unknown, surely in a Nation as large as ours, we can find the resources not only to keep pressing the envelope on technology, which happens to be in the unmanned program, scientific satellites and so forth, but also in the manned program. The President speaks a big line about all this. He has all this initiative, back to the moon, and go to Mars, which I support. But just like in the No Child Left Behind, when it comes time to putting the money out, he cut NASA by $1.1 billion from the authorization bill that we had passed in the Congress. As a result, the Administrator of NASA, Dr. Griffin, who is doing a great job, we finally have a rocket scientist there who knows what he is going, who also has a sense of humility, I might say. Where is he going to get the money to do everything he has to do? So there is some cut that is coming in this area. The National Academy of Sciences have warned, mind you, they have warned that we are going to lose access to valuable information that these satellites provide, and according to that Academy report, 40 percent of the sensors and instruments on NASA's aging weather and global monitoring satellites is going to stop working, are going to stop working in 2010. So the study blamed the budget cuts, replacement costs and delays and the lack of cooperation on NASA and NOAA. So we have to all address this, Madam Chairman, and that is what I wanted to come and share with you today. [The prepared statement of Senator Nelson follows:] Statement of Hon. Bill Nelson, U.S. Senator from the State of Florida Madam Chair, thank you for allowing me to speak to you today on the issue of global warming. Twenty-one years ago I was privileged to see our fragile ecosystem from the window of the shuttle Columbia as it orbited the earth. It's truly awesome to see the soft, white clouds, brilliant blue oceans, and subdued brown continents against the backdrop of the vast darkness of space. But, from down here, we're finally acknowledging that climate change will have devastating effects on the Earth's very delicate ecological balance. Experts largely agree that weather extremes will be more intense if global warming goes unabated. If the trend continues, Florida, and many other places around the world, could suffer relentless heat waves, beaches submerged by rising sea levels, contaminated drinking water, and more severe and damaging hurricanes. And it will only get worse unless we begin controlling our greenhouse gas emissions. It's about time we start taking this threat seriously. It's time for Congress to take meaningful steps to cut down on our nation's greenhouse gas emissions. I am a co-sponsor of the Climate Stewardship and Innovation Act of 2007 (CSIA)--a bill offered by my colleagues Senators Lieberman and McCain, which will work towards this goal. This legislation will not only hold at bay the devastating impact of global warming, but also ensure that American companies and American ingenuity plays a large role in reducing greenhouse gas emissions. By capping greenhouse-gas emissions at 2004 levels in the next five years, we will make substantial reductions in a root cause of global warming. But this proposal goes even further by requiring several major U.S. economic sectors to reduce by \2/3\ their greenhouse gas emissions by the year 2050. Making this legislation law is just the first step in fighting global warming, and Congress can't delay any longer. While this is just one of several ideas being debated in Congress, we also must take steps to improve the fuel efficiency of our vehicles and develop energy alternatives to fossil fuels. Madam Chair, I also want to tell you all about another aspect of this important debate: the tools our scientist use to measure global warming--our first line of defense against climate change. Much of our information on global warming comes from satellites orbiting the earth. These satellites play a key role in helping us keep an eye on planetary changes. Scientists use the data to, among other things, monitor the ozone layer, solar and earth radiation, sea levels; sea temperature, wind changes, air pollution, and measure glacier and ice cap changes. Unfortunately, according to a group of the country's leading scientists, our nation's weather and global monitoring satellites are at ``great risk''. Members of the National Academy of Sciences, warned that the U.S. will soon lose access to valuable information these satellites provide. According to the report, 40 percent of the sensors and instruments on NASA's aging weather and global monitoring satellites will stop working by 2010. The study blamed budget cuts, replacement costs and delays, and the lack of cooperation between NASA and NOAA. Those of us in Congress need to take this warning seriously. We can't afford to go without the tools that help us monitor and prepare for the effects of global warming. And, we can't afford to cut corners when lives, property, economies and ecosystems are at stake. We must maintain these satellites that provide our scientists, forecasters and others with the data they need to help observe and better understand our ever-changing weather patterns and conditions here on earth. We must do everything we can to ensure the earth remains as beautiful as it appeared from space. And, we must take meaningful steps now to reach this goal. I look forward to working with this committee and all of my colleagues to make real progress towards reducing the effects of global warming. Senator Boxer. Well, Senator Nelson, again my deepest thanks. You know, Vice President Gore introduced me to a scientist who said that it is critical that these satellites be continued, because otherwise we are flying blind. We don't know what is happening to us. So I just want you to count me in as a real partner in this. I know our colleague, Senator Durbin on the Appropriations Committee and in the leadership of the Senate, this is crucial. We cannot understand global warming if we lose our eyes on this matter. So we are very fortunate to have you as Chair of that subcommittee, and look forward to working with you. Senator Durbin, it is very appropriate in many ways that you are our final speaker. We will have heard from one-third of the Senate today. To close with your testimony is an honor for me, because you are, you know, the Assistant Leader of the U.S. Senate. So we are thrilled that you are here, and you have the floor. STATEMENT OF HON. RICHARD J. DURBIN, U.S. SENATOR FROM THE STATE OF ILLINOIS Senator Durbin. Chairman Boxer, thank you. You arrived in the nick of time, and I mean that. Having seen the documentary, An Inconvenient Truth, I really sense that time is running out, the time for talk, the time for excuses. If we don't do something decisive and soon, it literally may be too late. Some of the damage we may not be able to ever repair. I am glad you are here to lead us in this effort, which I believe will be a bipartisan effort. I think we will have many supporters, some on the other side of the aisle joining us in this effort, which is exactly what we need. I was heartened when President Bush mentioned global warming in relation to energy security in the State of the Union Address. You and I have been disappointed in the last 6 years in several things that have occurred in this Administration when it comes to the environment, climate change. The President and his Administration commissioned government experts and scientists to complete a study on global warming, only to omit parts of the final report that really got down to the heart of the matter. They attempted to silence a NASA scientist wanting to inform us that climate change is in fact real and must be addressed immediately. There is a long list of things which I think have been done by this Administration that moved us in the wrong direction. But having said that, let me give you an example of one thing they suggested that is moving us in the right direction. It is called FutureGen. It may not be a big news item in California, but it is in Illinois, because what the Administration has proposed is that we would take as a demonstration project using local coal, and we have high sulfur, dirty coal in some parts of Illinois, and generate electricity with that coal with zero emissions, sequestering carbon dioxide, saying it can be done. Well, there are four finalists for this plant, two in Texas and two in Illinois. I hope this year that Illinois is the winner, but regardless we need to develop that technology. We have this great local energy source that has been handcuffed by the environmental concerns that we share. So having been critical of the Bush administration for a lot of the scientific things that they have done in this area, let me commend them when it comes to this FutureGen. I think it is a futuristic look at where we need to go. I just want to suggest to you, Madam Chair, if you would consider, before I talk a little bit more about global warming, I think we ought to have a very clear starting point in this debate. We ought to work together on a bipartisan basis to write this starting point, and have it enacted by the Senate. It should be a starting point that says global warming and climate change are a clear and present danger to our environment, our economy, our security and our health, and the survival of many species on Earth. Recognizing that, we have an obligation to move with all deliberate speed to address this problem in America, setting an example here for the rest of the world. If we started there, if we had a consensus there, then a lot of things would follow. Until you took over the chairmanship, the debate was still on as to whether it was even an issue. Thank goodness we are beyond that on this committee. Now we have to move beyond it in the Senate and in this Nation. I recently returned from an official trip with Senator Reid down to South America. We had a delegation of six Senators from both sides of the aisle. We made a point of asking in Bolivia and Ecuador and Peru what they thought about global warming. They all looked at us and kind of smiled and said, why of course it is going on. Do you want us to show you glaciers or snow melt? We can see it here. Don't you see it there? Well, we do, but we have ignored it and we have rationalized some position that we can't do anything about it or don't need to do anything about it. Those days are over. I think it is time for us to move forward and to understand that if we don't do it in the United States, setting the example, very few people will consider. It also creates political instability, as we know. People who are the victims of this get up and move. I just had this recent report that came out last week from the Royal United Services Institute for Defense and Security. At a conference, Paul Rogers from Bradford University explained that recent climatology work suggested global warming could increase migratory pressures by an order of magnitude, ``In other words, about 400 million people, not the current 40 million people, desperate to cross borders.'' That is political instability, that is failed states, that is the United States drawn into conflicts in the far reaches of the world that we don't want to be drawn into. So we know now that this is a matter of security. The Department of Defense is joining us in that. We know that the United States has to lead the way. We use the most energy in the world. We have the most prosperous economy in the world, and we are looked to. Developing countries think the United States is trying to hold us back because they have already reached economic development success. Well, we have to demonstrate that we can achieve success economically, while still respecting the environment. Exhibit A, your home State. For how many years did we use to kind of laugh behind our friends in California as they talked about California engines in cars and California standards for energy efficiency. But you can tell that story better than anyone here today, about that dedication to energy efficiency, and how as a result of it, you were able to have an expanding economy, while reducing the use of energy. It can be done. Your example in California and other places in the United States should be an inspiration to all of us, because what I see coming is an opportunity, an opportunity for the United States to once again lead the world in the production of energy saving devices and technologies. Let's get out in front of this and commit ourselves to it, and have the world come to our door when they want to find ways to keep their economy moving forward and still reduce the use of energy and the pollution that results. I think it is much like Silicon Valley and what we saw with information technology, when it comes to this new environmental technology, a great opportunity for great jobs. Now, let me say a word about an issue near and dear to my heart, and I will confess against my own interests that I have had little or no success on the floor of the Senate with it, and that is CAFE standards. For the longest time, it struck me that if we were serious about fuel economy and fuel efficiency in the vehicles we drive, we would never seriously tackle this issue. Sixty percent of our oil goes into the cars and trucks we drive, and if we don't make them more fuel efficient, when we are going to be driving the same or more miles using more gas every single year, burning more, emitting more. Well, as the Senator knows because she has been by my side, that each time that I tried to improve CAFE standards, I have not received a majority vote. I was disappointed, but I sense that things are changing. I sense that with the statements being made from our colleagues on both sides of the aisle, they understand this. We have to challenge automobile manufacturers and truck manufacturers in the United States and around the world to do better. We have to really tell them that it is unacceptable for us to continue to build and buy these heavy vehicles with less fuel efficiency. I think if they get the message, they can respond to it. In 1975, faced with 14 miles per gallon, Congress mandated an increase in fuel economy and fuel efficiency in the fleet of vehicles other than trucks, and saw that number rise over 10 years to 27 miles a gallon. People say, well, I hate government mandates. Well, it worked. This mandate worked, and at the end of the day we had more fuel efficient cars. Since 1985, we have done absolutely nothing. As a consequence, our overall statistics on fuel economy have gone down, instead of up. I think we need to rededicate ourselves to more fuel efficiencies in these cars and trucks. I hope that our friends in Detroit, making cars in America, will be listening. I think they have been too slow to respond to this change. They have unfortunately in many instances seen Japanese competitors get their first, the long lines to buy a Prius, the long lines to buy a new hybrid Toyota Camry. All of these suggest there is strong pent-up consumer demand there, and I hope that Detroit will realize it. My wife and I bought a Ford Escape hybrid. It is good. It could be a lot better. It uses Toyota technology. I am sorry that it is Toyota technology, but at least we are trying to do the right thing in the production of those vehicles. Plug-in hybrids and all those opportunities lie ahead. Let me conclude by thanking you for your patience. I can't think of anyone more patient than someone who would sit and listen to 33 Senators in the course of a day. But I think that all of us understand, this may be our last chance. If we don't do this right, things are going to change in this world for the worse for our kids. That is unacceptable. Thank you, Madam Chair. Senator Boxer. Senator Durbin, it means a lot to me that you came on a personal level, and also on a policy level, because anything we do we are going to need you down there on the floor getting those votes. The reason I was so happy to do this today is I am really trying to figure out where the votes are and where the passion lies. I think today we have learned a lot. So I just want to thank you. I know you are very, very hectic, so you go right ahead and you go, and while you are going I am going to put in the record, I am going to complete the record. Senator Durbin. Thanks. Senator Boxer. Thank you, Dick. I am going to put in the record a statement by Senator Feingold, one by Senator Enzi, one by Senator Kennedy, one by Senator Lugar. These are all extremely interesting. I would say to be fair that Senator Feingold believes that ``with each passing year we fail to act, the challenge of addressing global warming and reducing emissions becomes increasingly difficult and costly. The time to act is now.'' Senator Enzi has a different view. He says he didn't think we had to have this hearing. He thinks people could have just expressed themselves on the floor of the Senate. He said he doesn't believe climate change is as pressing a problem as many would suggest. He says he doesn't trust his weatherman to predict the temperature, let alone what is going to happen 100 years from now. He does say, and this is the part where I always found a little nugget in everybody's testimony, that the right approach is to develop technologies and to share that technology with other nations. So as cleaner technologies spread through the world, they will address what many believe is a global problem. So I think even Senator Enzi and his, shall we say, negative view of what we are viewing, does come up with the pathway toward better technology. Senator Kennedy strongly supports the Sanders-Boxer bill. He says, ``We need to act now.'' Senator Lugar I think has a very interesting statement. He says that, ``Solving these challenges will require a stronger commitment by our government to scientific research, policy innovation and diplomacy.'' He calls on Congress to work with the executive branch in a way that inspires Americans, and he wants to work with us to do that. [The prepared statement of Senator Feingold follows:] Statement of Hon. Russ Feingold, U.S. Senator from the State of Wisconsin Thank you Chairwoman Boxer and Ranking Member Inhofe for inviting your colleagues to testify today on the important issue of global warming. The question before us today is not should we act to address global warming. The question is how. Politicians are often portrayed as only having their sights on the next election, and being unwilling to make changes in the near-term in order to produce long-term benefits. I am delighted that this Committee is intent on seeking effective long-term solutions to this serious problem. I was pleased to join you, Chairwoman Boxer, and several of our colleagues in co-sponsoring Senator Sanders' bill, the Global Warming Pollution Reduction Act. I believe this bill provides the leadership and the comprehensive, scientific-based approach to addressing global warming that Americans demand and deserve. Leading climate scientists have identified 450 parts per million of atmospheric carbon dioxide and increases above 3.6 degrees Fahrenheit above pre-industrial levels as the tipping point. To stay below these levels, this bill commits to incrementally reducing the United States' emissions to 1990 levels by 2020, and then to making further reductions between 2020 and 2050. I believe these goals are achievable using a combination of mandatory measures and incentives. The bill also recognizes the importance of taking an economy-wide approach to addressing global warming, and not one that targets a single sector. Industry, power, transportation, and building sectors all have a role to play in reducing global warming-causing emissions. As many of my colleagues and I wrote to the President last year, by sending the right market signals and supporting the ``deployment of existing technologies and development of new technologies to reduce emissions,'' we can keep U.S. businesses competitive in the emerging carbon-conscious global marketplace. I am also heartened that the economy-wide approach is supported by the majority of the 160 organizations that attended last year's conference hosted by the Senate Committee on Energy and Natural Resources. Another key component to addressing global warming is right in the name--global. As a member of the Foreign Relations Committee, I was pleased to cosponsor, last Congress, a Lugar/Biden resolution on the need for the United States to reengage with the international community on climate change. We must continue to participate in international negotiations with the objective of securing United States participation in agreements that advance and protect our interests, establishing mitigation commitments by all countries that are major emitters of greenhouse gases, establishing flexible international mechanisms to minimize the cost of efforts by participating countries, and achieving a significant long-term reduction in global greenhouse gas emissions. As of the Chair of the Senate Foreign Relations Subcommittee on African Affairs, I am concerned about the threats global warming pose to the continent of Africa. As we look to the future, we must address the consequences our global energy habits will have on less developed nations, in addition to the consequences on our own constituents. I think we all agree there is no use in a plan that does little to reduce global warming-causing emissions and makes our economy vulnerable. I do not pretend that the decisions before us are going to be easy. However, with each passing year that we fail to act, the challenge of addressing global warming and reducing emissions becomes increasingly difficult and costly--not only economically but environmentally. The time to act is now. [The prepared statement of Senator Enzi follows:] Statement of Hon. Michael B. Enzi, U.S. Senator from the State of Wyoming Madame Chairman and Ranking Member Inhofe, thank you for allowing me the opportunity to submit a statement at today's hearing. I agree with the Ranking Member of the Committee that such a statement is better suited for a session of morning business on the Senate floor. However, I believe it is important to have a balanced debate, and so I want to make my views clear for the record. There is no question that the issue of climate change is on the minds of the American people. Discussions on climate change, which are traditionally commonplace in the media, are now commonplace around the water cooler. Unfortunately, those discussions are dominated by misinformation and are based on scare tactics. Rather than allowing the science to run its course, the issue has become politicized. I do not believe that climate change is nearly as pressing a problem many proponents would suggest. We do not trust our weathermen to predict the temperature a week in advance, and so it is difficult for me to believe that individuals can predict the weather 100 years from now. Particularly given that just a few decades ago, we were told that the world was entering the next ice age, I struggle to see how some can discuss the issue with absolute certainty. Because the science is not settled on the issue of climate change, I will not support any actions that will put the United States at an economic disadvantage without any guarantees that the problem is real and without any guarantees that these so-called solutions will address the issue. As that is the case, I base my position on climate change on the Byrd-Hagel Resolution, which passed the United States Senate on June 12, 1997 by a vote of 95-0. The legislation should set the standards for United States signature on any treaty that forces the reduction of greenhouse gases. The resolution requires that all nations, including developing nations like China and India, be a part of any agreement. Additionally, the resolution requires that any measures enacted domestically do not harm our country's economy. If we act, we must do so in a way that makes sense and does not dramatically disadvantage the United States. My experience at the Kyoto Conference tells me that the mandatory CO<INF>2</INF> caps that have been proposed do not meet the high standard laid out under the Byrd- Hagel Resolution. I was a member of the United States Senate delegation to Kyoto, Japan in 1997 where the Kyoto Protocol was drafted. One of the things I noticed when I got to that conference was that the delegation from the United States was one of the only delegations who were treating Kyoto as an environmental conference. The vast majority of nations in attendance realized that it was an economic conference. They saw Kyoto as an opportunity to harm the U.S. economy. The Chinese delegation, whose country represents the world's fastest growing emitter of CO<INF>2</INF>, made it clear that they would never be part of a treaty that forced them to reduce their CO<INF>2</INF> emissions. Without involving China, no treaty or action to reduce CO<INF>2</INF> makes any sense. Instead of enacting costly legislation to cap CO<INF>2</INF> emissions, I think the right approach is to develop technology and to share that technology with other nations. Doing so allows cleaner technologies to spread throughout the world, which is the best solution to what many believe is a ``global problem.'' Thank you again for allowing me to share my thoughts on this issue. [The prepared statement of Senator Kennedy follows:] Statement of Hon. Edward M. Kennedy, U.S. Senator from the Commonwealth of Massachusetts I commend Chairman Boxer and the Committee for scheduling this hearing today to give Senators the opportunity to voice our concerns about the growing climate crisis and our ideas on how to avert it. We can no longer ignore the consequences of America's excessive reliance on fossil fuels. The evidence is overwhelming that they are devastating our environment and threatening public health, and our reliance on foreign oil is putting our national security at risk. I strongly support the ``Global Warming Pollution Reduction Act'' introduced recently by our new colleague, Senator Sanders. The act calls for ambitious, but necessary and achievable greenhouse gas reductions--including a ``20 by 2020'' renewable portfolio standard--to gain control over these emissions before major damage is done to the global climate. In dealing with the global warming challenge, Congress must also set aggressive fuel economy targets and encourage greater fuel diversity. The fuel economy standards enacted 30 years ago are no longer adequate. They should be increased for cars to at least 40 miles per gallon over the next 10 years and to at least 27.5 miles per gallon for SUVs and vans. There's no silver bullet to end global warming, but greater use of renewable energy and increased fuel efficiency could have a major impact on cutting the nation's carbon dioxide emissions. So can greater use of passenger rail and other forms of public transportation. In a single year, Americans travel nearly five trillion miles in the United States, more than 80 percent in personal vehicles. Yet, Amtrak is twice as energy efficient as highway traffic by car, truck, or motorcycle. Unfortunately, the Administration is no friend of public transit. It has even sought to zero-out Amtrak's operating subsidy. Instead, we should support Senator Frank Lautenberg's bill to give Amtrak the resources it needs to manage its debt and make capital improvements, particularly in the heavily-used Northeast Corridor. We must do more to increase fuel diversity so that cars and trucks aren't so heavily reliant on petroleum. Senator Bayh and Senator Brownback have offered legislation, the DRIVE Act, to steer motor vehicle technology in the direction of bio-fuels, fuel cell vehicles and hybrid-electric cars, and support alternative fueling infrastructure so that consumers can fill their tanks with alternatives to petroleum. Tax policy is also an important part of the solution to the challenge, and I hope this Committee can work closely with the Finance Committee to develop a comprehensive approach. We should certainly extend the tax credits for renewable energy technology such as hydrogen fuel cells and solar energy cells. Senator Gordon Smith proposed legislation in the last Congress for a multi-year extension of the tax credits for each of these technologies, and I urge this Congress to pass it or similar legislation as soon as possible. A long-term extension of these tax credits is needed to attract potential investors in these technologies. Massachusetts, California and Ohio are among the nation's leaders in this field. In Massachusetts alone, more than 60 companies are involved in fuel cell and hydrogen technologies. We should also do more to enable consumers to make environmentally- wise decisions about the power they use. Hundreds of utilities across the nation now offer ``Green Pricing'' programs that enable consumers to have their homes powered with electricity generated from renewable energy technology. We could encourage more rapid conversion to green power by offering a ``Green Power Pricing'' tax credit equal to the difference in the cost of clean power over dirty power. We can reduce energy consumption in homes. We should make construction more energy efficient, such as by establishing a grant program to train the next generation of architects and building designers in ``zero-energy home'' principles, so that building owners can install more energy efficient technologies. Adopting these principles for new home construction will bring down the cost of household energy and support one of our nation's bedrock industries. Finally, any comprehensive plan should reinstate the windfall profits tax on the oil industry. We cannot rely on the oil companies to restrain themselves during the worst of times, so a windfall tax is clearly needed to protect consumers from price manipulation. Again, I commend the Committee for taking up this immense challenge, and I look forward very much to working with you in the weeks ahead to enact legislation to deal with the urgent problem of climate change. [The prepared statement of Senator Lugar follows:] Statement of Hon. Richard G. Lugar, U.S. Senator from the State of Indiana Chairwoman Boxer, members of the committee, I thank you for holding this important hearing to examine the global climate change debate and to train our minds on possible solutions. For too long, the climate change debate has been a niche issue, pitting implacable skeptics against so-called ``green idealists.'' Yet, safeguarding the environment should not be viewed as a zero-sum decision, where limited resources may be diverted away from programs that more directly impact our immediate well-being. To the contrary, the environment and energy security are interlinked priorities, the advancement of which increases the welfare of all Americans. Conversely, the deterioration of either will harm our national security interests, economic well-being and our way of life. Both priorities also have many of the same solutions. Current trends are endangering the priorities of our foreign policy. High prices and booming demand for oil are enriching some authoritarian regimes, which use revenues to repress democracy and fund terrorism or demagogic appeals. As we attempt to lift developing countries from poverty, high oil prices also dull the effect of our foreign aid. Without a diversification of energy supplies that emphasizes environmentally friendly energy sources that are abundant in most developing countries, the national incomes of energy poor nations will remain depressed, with negative consequences for stability, development, disease eradication, and terrorism. Additionally, the burning of these fossil fuels has greatly increased greenhouse gases in the atmosphere that could cause major changes in the earth's climate. Climate change will bring more droughts, floods and other weather calamities. Pests and disease will spread into new regions of the world, threatening public health and economic growth and making these areas more prone to conflict. The interlinked challenges of global health, energy security, democracy promotion, and extreme climate change should be addressed in a comprehensive way. In my view, there are at least four components in devising such a strategy. First, America must radically reduce its reliance on oil, with an emphasis on transforming the transportation sector. In 1999, when a barrel of oil was just $20, I joined former CIA Director Jim Woolsey in warning that our over-reliance on petroleum made it more difficult for America to act responsibly in the world to safeguard peace, security and prosperity. Dr. Woolsey and I advocated the development of cellulosic ethanol as an alternative to petroleum for transportation fuel. In terms of environmental impact, cellulosic ethanol's advantages over gasoline substantially outweigh its disadvantages. Today, President Bush and a large bipartisan coalition in Congress support the production of more biofuels like ethanol. We must now put in place the economic incentives to ensure that all cars and trucks can burn these fuels and that filling stations readily provide them. Second, the United States needs effective programs that harness market forces to prod carbon constraints and cuts. Such programs should include a carbon trading mechanism. Last year, I listed my farm in Indiana on the Chicago Climate Exchange to set an example for farmers and foresters in my state and throughout America. The hardwood trees on my farm sequester 3,400 tons of carbon, which have market value on the exchange despite the lack of a broader cap and trade system in America. Changes sometimes come slowly, but I am hopeful that the Chicago Climate Exchange will illustrate how easily market value can attach to the most rudimentary of carbon reduction efforts. For example, the exchange mechanism could be utilized by turning unused farmland into tree farms that sequester carbon while providing farmers with extra money. Or, farms could be used to grow grasses, which are then converted into cellulosic ethanol. I was pleased to learn of farmers in Iowa who use no-till cultivation practices--thus keeping carbon in the ground--and have subsequently placed their farms on the Chicago Climate Exchange. In short, American farmers could become the vanguard in using market forces to the benefit of both the environment and the pocketbook. Madam Chairwoman, I would ask consent to submit into the record a report from the Pew Center on Global Climate Change entitled ``Agricultural & Forestlands: U.S. Carbon Policy Strategies'' in which Professor Kenneth Richards of Indiana University discusses in further detail strategies for greenhouse gas sequestration in agriculture and forestry. Last October, I had the privilege to meet several energy entrepreneurs on a tour through Indiana. One dairy farm I visited was designed to capture methane gas from feedlots to power the farm. The captured methane, which would otherwise be released into the atmosphere as a potent greenhouse gas, will eventually be sold to a nearby ethanol plant. Completing a remarkable cycle, the distillers dry grains--a byproduct of ethanol production--will be returned to the farm as cattle feed. Such exemplary innovations not only improve our nation's net energy position, but generate new revenues and less waste in agriculture. These innovations could create the foundation for an entirely new business model for rural and small town America: by utilizing crops and agricultural waste for fuel, American agriculture could reinvigorate itself, while simultaneously alleviating our energy dependence. Third, America needs to carry out coordinated and sustained energy diplomacy with our partners abroad. Just as securing our energy requires international agreements and cooperation, so too does securing our environment. As China, India, Brazil, and other industrializing countries come on line as major energy consumers, they will increasingly become a source of global climate change and environmental degradation. It is in our interest to coax these countries into international environmental frameworks by actively participating in the agreements ourselves. For this reason, I have co-authored with Senator Biden S. RES. 30, which calls on the United States to pursue agreements under the United Nations Framework Convention on Climate Change. Fourth, America must ready itself for the security ramifications of energy dependence and climate change in the international political sphere. As a preliminary step, I authored and the Senate approved a resolution that calls upon the United States to lead discussions about the role NATO could play in energy security. The resolution also instructs the President to submit a report to Congress that details a strategy for NATO to help in the development of secure, sustainable, and reliable sources of energy, including contingency plans should current supplies be put at risk. In a speech I delivered in advance of the NATO Summit in Riga, Latvia, I urged NATO to consider invoking its mutual defense commitment in case of an energy cut-off affecting a NATO member state: an attack on one may require a response by all. Any such threats to America's energy supplies could be greatly reduced by focusing on sustainable fuels and preparing for supply disruption. We must also develop strategies for dealing with environmental calamities related to climate change. Soybean rust has already migrated from tropical areas to the detriment of crops as far north as Indiana. The spread of disease or pest infestations could likewise cause political, economic and social turbulence throughout the world. Solving these challenges will require a stronger commitment by our government to scientific research, policy innovation and diplomacy. It will require Congress and the Executive Branch to come together in ways that inspire Americans rather than divide them. I believe that we have many opportunities for furthering this work in this Congress, and I look forward to working with my Colleagues to do so. Thank you, again, Madam Chairwoman, for calling this timely hearing. [The referenced document follows on page 1054.] Senator Boxer. So I think all in all, it has been quite a day. Now, is there anything else? We will keep the record open for just about 3 working days, and I will be able to publish this hearing because I think there is a lot in here for the American people to really look at. So we will do that. We will also see if we can put it in the congressional Record as a hearing. I don't know if we can do that or not, but we are going to certainly publish it. I meant to say to Senator Durbin something that some of you may already know. My staff will correct me if I don't say this exactly right. But if the rest of the Country had the energy efficiency record of California, in other words, the per capita use of energy in California, if just the rest of the Country did it, we would save the equivalent in energy of all the oil we import from the Middle East, at least. So I think energy efficiency is a way to go that doesn't require giving up really any creature comforts. The first thing that every man I know asks me when I step out of the hybrid is, but does it have pick-up? I can tell you, it absolutely has pick-up. So with that, I just want to thank the audience. A lot of you were here through this entire hearing, and I do think this is a beginning of what is going to be a fascinating journey, and at the end of that journey, as soon as we can, we are going to have something to show for it, and we are going to start to have America take the lead on this issue that is facing us. Thank you very much, and we stand adjourned. [Whereupon, at 3:55 p.m. the committee was adjourned, to reconvene at the call of the chair.] [Additional statements submitted for the record follow:] Statement of Hon. Daniel K. Inouye, U.S. Senator from the State of Hawaii I would like to take this opportunity to thank Senator Boxer for initiating this Members hearing on this important issue. It is an excellent opportunity to bring together the various Committees and Members with an interest in energy conservation, climate change, and the environment. I also want to commend Senator Boxer for her leadership on these serious issues. I am proud to be an original co-sponsor of the Global Warming Pollution Reduction Act of 2007, introduced by Senators Boxer and Sanders. I look forward to working on other legislation with my many colleagues who are committed to addressing the very real problem of global warming. As Chairman of the Commerce Committee, I would like to explain the important role the Committee would play in developing policy responses to the many problems associated with global warming. With jurisdiction over rail, surface, and air transportation, we oversee the sector of our economy that is responsible for the largest proportion of our nation's greenhouse gas emissions. The Commerce Committee exercises jurisdiction over the National Highway Traffic Safety Administration (NHTSA) and its Corporate Average Fuel Economy (CAFE) program, which sets miles per gallon (mpg) targets for the passenger automobile fleet. The Committee has jurisdiction over science and technology matters directly relevant to climate change. For example, the Committee has primary jurisdiction over atmospheric monitoring and science, and over the principal federal agencies that conduct or fund climate change research--the National Oceanic and Atmospheric Administration (NOAA), the National Aeronautics and Space Administration (NASA) and the National Science Foundation. The Committee also developed and oversees the Global Change Research Act, which sets forth authority for federal interagency research on climate change, as well as the White House Office of Science and Technology Policy, which is charged with guiding and integrating research and science policy across government agencies. Finally, the Commerce Committee has jurisdiction over engineering and technology research and development, as well as the National Institute of Standards and Technology (NIST), which has a role to play in developing better measurements, standards, and technologies to help reduce the production of greenhouse gases. Because of our broad jurisdiction, and the imminent need to address climate change related issues, my Commerce Committee colleagues and I anticipate an active agenda for the Committee in terms of both legislative initiatives and our hearing schedule. Let me briefly highlight some of the legislation and hearings that we anticipate working on during this session. Last week, Senators Feinstein, Snowe, Durbin and I introduced the ``Ten-in-Ten Fuel Economy Act of 2007,'' which would mandate that the passenger fleet, which would include light trucks weighing less than 10,000 lbs., as well as cars, achieve a combined CAFE average of 35 mpg by 2019. I would like to thank Chairman Boxer for joining us in this important effort. This bill takes a real world approach to improving passenger fleet fuel economy and would be a significant positive step in cutting our national greenhouse gas emissions. By 2025, the provisions of this bill would reduce emissions of carbon dioxide by 358 million metric tons, which is the equivalent of taking 52 million cars and trucks off our nation's roadways. In addition, assuming today's price for a gallon of gas, the Act would effectively reduce consumption of foreign oil by 2.1 million barrels a day by saving over 35 billion gallons of gasoline annually. The Committee's agenda at the start of the 110th Congress will feature a number of hearings on climate change science and technology issues. In a few weeks, we will be holding a hearing on climate change science and scientific integrity to address federal scientists' ability to convey research findings and conclusions to policy makers and the pubic without being constrained by any political agenda. We also expect to hold hearings on the relationship between our oceans and climate change, including the impact of climate change on our coastal environments and our marine resources. The Committee is also concerned with the declining federal budget for climate change research, and reports that the federal climate research program is not only stagnating, but also subject to cutbacks that would endanger the future health of research and monitoring. The Committee will be pursuing legislation to strengthen the federal climate research program to ensure support for the fundamental science needed to fully understand the impact of climate change. The Committee may also pursue legislation aimed at promoting innovative energy technology, and directing the National Institute of Standards and Technology to improve measurement technologies and standards that are essential to decreasing greenhouse gas emissions. Given the growing number of uses of our oceans and the Commerce Committee's jurisdiction over the transportation and commerce aspects of the Outer Continental Shelf, coastal zone management, marine fisheries, and oceans, we hope to revisit some of the language in the Energy Policy Act of 2005 to account for these other aspects and to improve coordination of the permitting process for offshore activities, including oil and gas exploration. I look forward to working with all of you to improve the environment and decrease our dependence on foreign oil. __________ Statement of Hon. Joseph R. Biden, Jr., U.S. Senator from the State of Delaware If anyone wants evidence that the climate is changing, just look around this room. The climate has changed here in the Senate and climate change is on the agenda. The heat is on us to do something about it. I congratulate Senator Boxer on her ambitious agenda for this committee, and for convening this forum today. One of the President's first acts in office was to break his promise to do something about climate change. Instead of action, he turned his back on international cooperation and pulled us out of the Kyoto process. That train has now left the station. The rest of the industrial nations have taken on commitments to reduce their emissions to 7 percent below 1990 levels, during the period 2008 to 2012. We missed the chance to find a way to make the Kyoto Protocol workable for the United States. We missed a chance to begin the process of slowing, stopping, and reversing our emissions. We missed the chance to turn the impending threat of catastrophic climate change into an opportunity to reduce the security threat of our dependence on oil, to reduce the health threat from pollution, to reduce the sheer waste and inefficiency in our economy. And we missed the chance to do what many of the leading businesses in this country know we should do capture a leadership position in the global competition for the next generation of clean technologies. Last week, we heard from an alliance among some of our most important corporations and some of our most respected nongovernmental organizations, the United States Climate Action Partnership. I am particularly proud that DuPont, from my home state of Delaware, has taken the lead on this issue for many years. Once again this year, Senator Lugar and I have joined together to introduce a resolution calling on the Administration to return to a leadership role in international climate change talks. Our resolution calls for United States participation in negotiations under the United Nations Framework Convention on Climate Change--signed by the first President Bush--that will protect the economic and security interests of the United States, and that will commit all nations--developed and developing--that are major emitters of greenhouse gases to achieve significant long-term reductions in those emissions. The resolution also calls for a bipartisan Senate observer group-- based on our experience with arms control negotiations--to monitor talks and ensure that our negotiators bring back agreements that all Americans can support. S. Res. 30 states that evidence of the human role in global warming is clear, that the environmental, economic, and security effects will be costly, and that the response must be international. The resolution recognizes that there are real economic benefits from both reducing the waste and inefficiencies inherent in greenhouse gas emissions, and from the markets for new, climate-friendly technologies. Most importantly it puts the Senate on record, calling for the United States to resume its role as leader in the international effort to address this global threat. As the body that will ratify any international treaty on climate change, the Senate's position must be clear to the rest of the world. This resolution says we are reading to take on binding commitments that achieve significant long-term reductions in global greenhouse gas emissions. The physical consequences of global warming are right before our eyes: the shrinking polar ice cap, retreating glaciers, stronger storms driven by warmer ocean waters, and changing growing seasons, animal migration, and rainfall patterns. Future consequences if we continue business as usual will include rising sea levels, the spread of diseases, abrupt climate shifts that could shut down of the Atlantic cycle that warms Europe, or the shrink the Amazon rainforest that provides twenty percent of the oxygen we breathe. These changes will profoundly alter the assumptions on which the economic, political, and security arrangements of our world have been constructed. Our national borders, our cities, our cultures, are all built around patterns of rainfall, arable land, and coastlines that will be redrawn as global warming proceeds. By one estimate, 200 million people, in the coastal cities of New York, Tokyo, Cairo, and London, in low-lying countries such as Bangladesh, in the islands of the Pacific and Caribbean, could be permanently displaced by climate shifts. Throughout human history, massive population shifts, frustrated expectations, and the collapse of economies, have all led to conflict. Even the richest nations, source of the emissions behind global warming, will face huge costs coping with those catastrophes. The poorest nations, whose economies have contributed little or nothing to the greenhouse gases in our atmosphere, will be hit the worst, and will have the fewest resources with which to respond. This is a recipe for global resource wars, and even greater resentment of our wealth by those less fortunate--a new world disorder. We are failing in our responsibility to steward the riches we have inherited. We are bequeathing our children not just a ruined landscape, but a world of conflict as well. This is a classic tragedy of the commons. We have treated our atmosphere as a costless dump for the waste gases that are the byproduct of our great wealth. There was a time when we could plead ignorance. That day is past. The science is now clear. There was a time when we might have claimed the cost of changing our ways was too great. That day is past. We now know the costs of inaction are unacceptably high. There was a time when we could claim that our actions, in isolation, would be ineffective. That day is past. It is now clear that our inaction reduces the effectiveness of international efforts to address climate change, and provides an excuse for China, India, Mexico, Brazil, and the other leading emitters of the future to stay with us on the sidelines. I personally believe that the single most important step we can take to resume a leadership role in international climate change efforts would be to make real progress toward a domestic emissions reduction regime. For too long we have abdicated the responsibility to reduce our own emissions, the largest single source of the problem we face today. We have the world's largest economy, with the highest per capita emissions. Rather than leading by example, we have retreated from international negotiations. Beginning with the hearing Senator Boxer has convened today, we will see renewed efforts to pass legislation to create that regime, to reduce our domestic emissions, and to open our many responsible American businesses to both international emissions trading and the new markets for clean technologies in the developing world. Moving toward that goal will be crucial to the effectiveness and credibility of our international efforts. There are many possible paths to that goal. Our legislative process will provide the forum for us to consider many options. One option that we do not have is inaction. We are all on this planet together. We cannot protect ourselves from the effects of climate change by acting alone--this is a global problem that will require a global solution. To undertake meaningful reductions, countries will need to know that their actions will not be undercut by ``free riders'' who continue business as usual while they commit to change. To build that trust will require commitments by all of the key players, and the institutions to coordinate the actions of independent nations. That is why the United States must be a leader on climate change issues, and that is why I have been working for three decades to take on this challenge. On this issue, quite literally, history will be our judge. I congratulate Senator Boxer for her leadership on this issue, as well as my colleagues on both sides of the aisle who will have joined in this effort. A copy of Senator Biden and Senator Lugar's resolution calling for the United States to return to international negotiations on climate change is attached. [The referenced document follows on page 1135.] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] <all>