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MORE AFFORDABLE FOR ALL
AMERICANS.
THANK YOU, MR. PRESIDENT.
I WOULD YIELD THE FLOOR AND
SUGGEST THE ABSENCE OF A QUORUM.
THE CLERK
WILL CALL THE ROLL.
QUORUM CALL:
CALL:
A SENATOR: MADAM PRESIDENT.
THE
SENATOR FROM ALABAMA.
I WOULD ASK
CONSENT THE QUORUM CALL BE
DISPENSED WITH.
WITHOUT
OBJECTION.
I WOULD ASK I BE
ALLOWED TO SPEAK AS IF IN
MORNING BUSINESS FOR UP TO 15
MINUTES.
OBJECTION.
I'M HERE TODAY TO
SHARE A NEW AND STUNNING
REVELATION UNEARTHED BY MY STAFF
ON THE SENATE BUDGET COMMITTEE.
PART OF MY RESPONSIBILITIES AS
THE RANKING MEMBER IS TO LOOK AT
THE LONG-TERM COSTS OF
LEGISLATION, SO WE WANTED TO
ASCERTAIN THE LONG-TERM COSTS OF
THE PRESIDENT'S HEALTH CARE
BILL, AND I MEAN THE KIND OF
LONG-TERM COST ANALYSIS THAT'S
BEEN GOING ON FOR A NUMBER OF
YEARS WITH REGARD TO MEDICARE,
SOCIAL SECURITY, MEDICAID OVER A
75-YEAR PERIOD.
I WAS FLOORED BY WHAT WE
DISCOVERED, BUT FIRST LET'S PUT
A LITTLE CONTEXT.
PRESIDENT OBAMA TOLD THE
AMERICAN PEOPLE REPEATEDLY THAT
HIS HEALTH CARE BILL WOULD COST
$900 BILLION OVER TEN YEARS AND
THAT IT WOULD NOT ADD ONE DIME
TO THE PUBLIC DEBT.
BUT WE HAVE SHOWN THAT THE COST
SCORE FOR THE FIRST TEN YEARS OF
IMPLEMENTATION WHEN THE BILL IS
FULLY IMPLEMENTED IS ACTUALLY
TIMES AS MUCH.
IN ADDITION, THE OFFSETS USED TO
REDUCE THE LAW'S OFFICIAL COSTS
WERE ENORMOUS AND PHONY AND, AS
I HAVE DISCUSSED BEFORE AND WILL
DETAIL AGAIN AT ANOTHER TIME,
THESE ARE UNACCEPTABLE OFFSETS.
SO YOU'VE HEARD THE CAT'S STORY
OF MR. MISTOPHOLES, THE NAPOLEON
OF CRIME.
I SAY THIS BILL IS THE IN A NAPOLEON
OF CRIMINAL OFFSETS.
THE MORE WE LEARN ABOUT THE
BILL, THE MORE WE DISCOVER IT
WAS EVEN MORE UNAFFORDABLE THAN
WAS SUSPECTED, SO OVER A PERIOD
OF ABOUT THREE MONTHS, OUR STAFF
HAS WORKED DILIGENTLY TO
ESTIMATE THE NEW UNFUNDED
LIABILITIES THAT WOULD BE
IMPOSED BY THE PASSAGE OF THIS
LEGISLATION.
THIS IS NOT THE TOTAL COST OF
THE BILL, BUT THE UNFUNDED
MANDATORY COVERAGE OBLIGATIONS
INCURRED BY THE UNITED STATES
GOVERNMENT ON BEHALF OF THE
UNITED STATES PEOPLE OVER A
PERIOD OF TIME.
AN UNFUNDED OBLIGATION IS
BASICALLY THE AMOUNT OF MONEY WE
HAVE TO SPEND ON A MANDATORY
EXPENSE THAT DOES NOT HAVE A
FUNDING SOURCE, THAT WE DON
HAVE THE MONEY TO MEET.
IT'S MONEY WE DON'T HAVE BUT
TO SPEND.
IT'S THIS KIND OF LONG-TERM
UNFUNDED OBLIGATIONS THAT HAVE
PLACED THIS NATION'S FINANCIAL
SITUATION AT SUCH GREAT RISK.
IT'S A THING THAT'S CALLED
WITNESS AFTER WITNESS AFTER
WITNESS BEFORE THE BUDGET
COMMITTEE OF WHICH I AM RANKING
MEMBER THAT TELLS US WE ARE ON
AN UNSUSTAINABLE PATH.
THAT MEANS MONEY WE WILL EITHER
HAVE TO PRINT, BORROW OR TAX TO
MEET THE OBLIGATION WE WOULD
INCUR AS A PEOPLE AS A RESULT OF
THE PASSAGE OF THIS BILL.
FOR INSTANCE, IT IS WIDELY
AGREED THAT SOCIAL SECURITY HAS
AN UNFUNDED LIABILITY OF
$7 TRILLION OVER 75 YEARS.
THAT'S AN ENORMOUS SUM.
IT'S DOUBLE THE ENTIRE AMOUNT OF
THE UNITED STATES BUDGET TODAY.
SO MY STAFF USED THE MODELS THAT
ARE USED BY THE CENTER FOR
MEDICAID SERVICES.
THEY HAVE TALKED WITH THESE
INDIVIDUAL EXPERTS ABOUT THESE
NUMBERS AND WORKED DILIGENTLY TO
COME UP WITH A FIGURE USING
APPROPRIATE METHODS.
THAT FIGURE, USING THE
ADMINISTRATION'S OWN OPTIMISTIC
ASSUMPTIONS AND CLAIMS ABOUT THE
COST OF THE LAW, IS AN
INCREDIBLE $17 TRILLION THAT
WOULD BE ADDED TO THE UNFUNDED
LIABILITIES OF THE UNITED STATES
OVER THE NEXT 75 YEARS.
THAT IS MORE THAN TWICE THE
UNFUNDED LIABILITY OF SOCIAL
NOW, I WANT TO EMPHASIZE THIS
$17 TRILLION FIGURE IS NOT AN
ESTIMATE BASED ON WHAT WE THINK
THE BILL WILL REALLY COST IF ALL
THE ADMINISTRATION'S CLAIMS AND
PROMISES THAT WERE TO BE PROVEN
FALSE.
CERTAINLY THERE HAVE BEEN
MATTERS PROVEN FALSE ALREADY,
BUT WE HAVE USED THE
ADMINISTRATION'S OWN FIGURES, SO
THE UNFUNDED LIABILITY IS ALMOST
CERTAINLY NOT GOING TO BE LESS
THAN $17 TRILLION, BUT IF ANY
MORE OF THE ADMINISTRATION'S
CLAIMS UNRAVEL AS SO MANY HAVE
ALREADY HAVE, THE COST OF THE
PROGRAM'S UNPAID OBLIGATION
WOULD RISE RADICALLY HIGHER THAN
FOR INSTANCE, THE FORMER C.B.O.
DIRECTOR DOUGLAS HOLTZ-EAKIN, AN
EXPERT WIDELY RESPECTED IN THESE
MATTERS SAID THAT MILLIONS OF
MORE INDIVIDUALS MAY LOSE THEIR
CURRENT EMPLOYER COVERAGE AND
MAY BE PLACED INTO THE
GOVERNMENT-SUPPORTED EXCHANGES
THAN WE HAD CURRENTLY PROJECTS,
THAN THE ADMINISTRATION HAS
PROJECTED.
I DIDN'T FOLLOW
MR. HOLTZ-EAKIN'S ARGUMENTS OR
WE TOOK THE ADMINISTRATION'S
ASSUMPTIONS.
SO LET ME BRIEFLY EXPLAIN SOME
COMPRISES THIS
ADDITIONAL $17 TRILLION IN
UNFUNDED OBLIGATIONS.
$12 TRILLION IS FOR THE HEALTH
CARE LAW FOR THE PREMIUM SUBSIDY
PROGRAM.
YOU SEE THE LAW CREATED NEW
REGULATIONS THAT DRIVING UP THE
PRICE OF INSURANCE FOR MILLIONS
THE WRITERS OF THE LAW KNEW IT
WOULD INFLATE THE COST OF
INSURANCE PREMIUMS TO DO SO, SO
TO COVER THAT COST, THEY HAD TO
INCLUDE NEW GOVERNMENT SUBSIDIES
SO PEOPLE COULD PAY FOR THEIR
MORE EXPENSIVE INSURANCE.
ON MADE -- ONTO THE MEDICAID,
THIS NEW HEALTH CARE LAW HAS
ADDED ANOTHER $5 TRILLION TO ITS
UNFUNDED LIABILITIES.
THIS IS ON TOP OF THE
SUBSTANTIAL UNFUNDED OBLIGATIONS
AT THE FEDERAL AND STATE
GOVERNMENTS HAVE ALREADY HAD THE
TAKE -- HAD TO TAKE ON IN ORDER
TO SUPPORT MEDICAID, AND THEY
VIGOROUSLY TO US,
WARNING OF THESE ADDITIONAL DEEP
EXPENDITURE REQUIREMENTS THAT
ARE FALLING ON THE STATES.
AND THESE FIGURES DON'T EVEN
ACCOUNT FOR THE DOZENS OF NEW
BUREAUCRACIES THAT WILL BE
CREATED TO IMPLEMENT THE
PRESIDENT'S HEALTH CARE LAW OR
THE EXPANSION OF THE
THOSE COSTS ARE NOT INCLUDED IN
THE $17 TRILLION OR THE COST
ESTIMATES THAT THE
BILL.
FOR INSTANCE, THE I.R.S. HAS
REQUESTED 4,000 NEW I.R.S.
AGENTS AT $300 MILLION IN
ADDITIONAL FUNDS FOR THEIR PART
IN IMPLEMENTING THE NEW LAW.
AT A TIME WHEN WE SHOULD BE
TRYING, WE HAVE TO SHORE UP
PROGRAMS THAT ARE THREATENED BY
DEFAULT, MEDICARE, SOCIAL
SECURITY, MEDICAID, THIS HEALTH
CARE LAW ADDS AN ENTIRELY NEW
FOR.
AND PUTS THE ENTIRE FINANCING OF
THE UNITED STATES GOVERNMENT IN
WE DON'T HAVE THE MONEY, WE
DON'T HAVE ANOTHER $17 TRILLION
IN UNFUNDED LIABILITIES THAT WE
CAN ADD TO OUR ACCOUNT.
WE HAVE GOT TO REDUCE THE ONES
THAT WE HAVE.
THIS HAS BEEN OBVIOUS FOR A
DECADE, SEVERAL DECADES.
PEOPLE HAVE TALKED ABOUT IT
REPEATEDLY.
INSTEAD OF DOING SOMETHING ABOUT
THOSE PROGRAMS THAT ARE HEADED
TO BANKRUPTCY, WE ADD UNDER THIS
PRESIDENT'S DETERMINED
INSISTENCE ON A STRAIGHT
PARTY-LINE VOTE ONE OF THE
LARGEST UNFUNDED MANDATES IN
HISTORY ON TOP OF WHAT WE
ALREADY HAVE.
THIS?
IT CANNOT BE JUSTIFIED.
THIS BILL HAS TO BE REMOVED FROM
THE BOOKS BECAUSE WE DON'T HAVE
THE MONEY.
THERE ARE A LOT OF OTHER
ONE OF THEM.
IT'S INESCAPABLE.
IRRESPONSIBLE FOR THIS CONGRESS
TO MAINTAIN A LAW THAT WOULD RUN
UP THIS KIND OF DEBT, TWO AND A
HALF TIMES THE UNFUNDED
OBLIGATIONS OF SOCIAL SECURITY,
AND WE ARE WORRIED ABOUT OUR
CHILDREN BEING ABLE TO HAVE
THEIR SOCIAL SECURITY CHECKS ON
TIME?
THIS IS NOT A LITTLE BITTY
MATTER.
IT'S IMPORTANT.
I WILL BE SENDING A LETTER TO
THE G.A.O., THE THE GOVERNMENT
ACCOUNTABILITY OFFICE.
THEY DO THESE KIND OF SCOARGS
WE'LL ASK THEM TO CONSTRUCT
THEIR INDEPENDENT ESTIMATE OF
THE UNFUNDED HEALTH CARE LAW
OBLIGATIONS.
I BELIEVE THEY WILL BE SIMILAR
TO THE ONES MY STAFF HAS
I HOPE THEY ARE BETTER, BUT I'M
AFRAID THEY'RE NOT, AND EVEN IF
THEY COME CLOSE TO WHAT WE HAVE
IT'S PRETTY CLEAR
THAT THE MONEY THAT WILL BE
COMING IN COULD BE FAR LESS AND
THE OBLIGATIONS COULD BE FAR
MORE THAN ARE BEING PROJECTED,
AS MR. HOLTZ-EAKIN AND OTHERS
HAVE SAID.
SO IT'S AN URGENT MATTER.
I PLAN TO COME TO THE FLOOR IN
COMING DAYS TO CONTINUE TO
EXPLAIN THE TRUE FISCAL COST
FACTS ABOUT THIS LEGISLATION.
AND THERE ARE MANY OTHER SERIOUS
PROBLEMS WITH IT.
THE BILL IS UNPOPULAR, IT IS
UNAFFORDABLE, IT IS
UNCONSTITUTIONAL, IT'S GOT TO BE
I THANK THE CHAIR AND WOULD
YIELD THE FLOOR.
NOR SENATOR MADAM PRESIDENT?
THE
SENATOR FROM DELAWARE.
A SENATOR: I ASK CONSENT
TO-TO-SPEAK AS IF IN MORNING
BUSINESS.
WITHOUT
OBJECTION.
THANK YOU.
I FEEL COMPELLED TO SAY A WORD
OR TWO ON THE HEELS OF OUR
COLLEAGUE FROM ALABAMA, WHO I IS
SALUTE AS HE HEADS OFF INTO THE
SETTING SUN.
I WISH YOU A GOOD BREAK.
BUT I WANT TO SAY -- WHEN I WAS
IN THE NAVY BACK DURING THE
VIETNAM WAR WHEN WE WEREN'T
FLYING A LOT OF MISSIONS OFF THE
COAST OF CAMBODIA AND VIETNAM,
WE FLEW A THE LOVE MISSIONS IN
AND OUT OF OTHER COUNTRIES,
INCLUDING JAPAN, AND I'VE ALWAYS
HAD AN INTEREST IN JAPAN IN
TERMS OF THE WAY THEY PROVIDE
HEALTH CARE.
AND ONE OF THE THINGS THAT'S
INTRIGUING TO ME ABOUT JAPAN AND
THE WAY THEY PROVIDE HEALTH CARE
IS, THEY SPEND HALF AS MUCH
MONEY FOR HEALTH CARE AS WE DO.
THEY SPEND 8% OF GROSS DOMESTIC
WE SPEND 16% OF GROSS DOMESTIC
THEY GET BETTER OUTCOMES,
EVERYTHING FROM LONGER LIFE
EXPECTANCY TO LOWER LIVES OF
INFANT MORTALITY, AND THEY COVER
THEY COVER EVERYBODY.
IT IS NOT SOCIALIZED MEDICINE.
THEY HAVE PRIVATE HEALTH CARE
DELIVERY SYSTEM AND PRIVATE
HEALTH INSURANCE COMPANIES, AS
BUT DO.
BUR GHETBUT THEY GET A BETTER RESULT
THAN WE DO.
AND IT IS NOT A COMPETITION.
WE HAVE OUR BUSINESSES THAT ARE
COMPETING WITH THE JAPANESE,
WELL.
IT IS NOT A FAIR FIGHT.
IT IS LIKE HAVING ONE ARM TIED
BEHIND OUR BACKS.
FOR YEARS PRESIDENTS, MEMBERS OF
CONGRESS, DEMOCRAT AND
REPUBLICAN, HAVE TALKED ABOUT
THIS CHALLENGE, THE FACT THAT WE
SPEND SO MUCH MORE MONEY FOR
HEALTH CARE THAN A LOT OF THE
REST OF THE WORLD AND WE DON'T
GET BETTER RESULTS.
IN A LOST CASES, WE GET WORSE
RESULTS AND WE DON'T COVER
EVERYBODY.
THAT'S NOT VERY SMART.
BUT FOR YEARS, FOR DECADES,
NOBODY RULELY REALLY TOOK IT ON IN A
SERIOUS WAY.
THE CLINTON ADMINISTRATION, IT
HAPPENED DURING THE CLINTON
ADMINISTRATION, BUT I WOULD HAVE
LIKED TO HAVE HAD REFORM ON
HEALTH CARE WHEN WE TOOK IT UP
DURING THE EARLY PART OF THIS
CURRENT ADMINISTRATION.
A LOT OF PEOPLE ARE FOCUSED ON
THE INDEPENDENT MANDATE, IS IT
CONSTITUTIONAL,
UNCONSTITUTIONAL?
I'M NOT A LAWYER.
I STUDY STUDIED A LITTLE ECONOMICS.
WHEN I GOT OUT OF THE NAVY AND
MOVED TO DELAWARE TO GET AN
M.B.A. ON THE G.I. BILL I
STUDIED A LITTLE ECONOMICS BUT I
DON'T PRETEND TO BE A LAWMPLET
BY-- ALAWYER.
IF YOU EXPECT US TO WRITE HEALTH
INSURANCE FOR FOLKS WITH
PREERNTION YOU'VE GOT TO MAKE
SURE THAT THE POOL OF PEOPLE WE
HAVE TO COVER INCLUDES PEOPLE
THAT ARE NOT JUST -- THAT HAVE
PREEXISTING CONDITIONS, NOT JUST
PEOPLE THAT ARE SICK OR HAVE
ILLNESSES OR CONDITIONS THAT ARE
EXPENSIVE TO TREAT, YOU'VE GOT
TO MAKE SURE THAT WE HAVE A POOL
OF PEOPLE TO INSURE THAT
INCLUDES SOME HEALTHY PEOPLE.
SOME COUNTRIES MANDATE FOR
EVERYBODY THAT HAVE COVERAGE.
WE DIDN'T WANT TO MANDATE
EVERYBODY TO HAVE COVERAGE BUT
WE WANTED TO INCENTIVIZE PEOPLE,
INCLUDING HEALTHIER YOUNG PEOPLE
LIKE MY SONS, TO MAKE SURE THEY
END UP IN THAT POOL, AT LEAST
SOME OF THE YOUNG MEN AND WOMEN
END UP IN THAT POOL, SOME
HEALTHY PEOPLE END UP IN THAT
POOL.
BUT PART OF THE REQUEST OF THE
HEALTH INSURANCE INDUSTRY IN
RETURN FOR DOING AWAY WITH
PREEXISTING CONDITIONS, WAS TO
MAKE SURE THAT A LOT OF
HEALTHIER PEOPLE ARE GOING TO
END UP IN THAT INSURANCE POOL.
THE WAY WE DECIDED TO DO IT IN
THE HEALTH CARE BILL, LAW IS
RATHER THAN JUST MANDATE THAT
PEOPLE HAVE TO GET COVERAGE, SAY
WE WANT TO INCENTIVIZE YOU AND
IF YOU CHOOSE NOT THAT TO, THAT'S
YOUR BUSINESS.
IF YOU HAPPEN TO BE POOR, WE'RE
YOU.
BUT IF YOU'RE NOT POOR AND YOU
HAVE THE FINANCIAL MEANS, WE'D
LIKE FOR YOU TO GO AHEAD AN GET
COVERAGE.
WE'RE NOT GOING TO MANDATE IT.
BUT THE FIRST YEAR THAT YOU HAVE
MEANS TO HAVE COVERAGE AND
CHOOSE NOT TO THERE WILL BE A
FINE OR PENALTY OF SOME SORT,
MAYBE A COUPLE OF HUNDRED BUCKS.
BUT THAT WILL GO UP SEVERAL
HUNDRED DOLLARS IN ORDER TO
ENCOURAGE PEOPLE TO GET THE
AT THE END OF THE DAY, SOME
PEOPLE SAY, YOU AREN'T PAYING
$600 OR WHATEVER IT ENDS UP
BEING, INSTEAD OF PAYING THIS
FEE, WHY DON'T I JUST GO AHEAD
COVERAGE?
THE IDEA IS TO PROVIDE SOME
PLANS THAT ARE REASONABLY
AFFORDABLE FOR FOLKS TO TAKE
ADVANTAGE OF.
SO THAT'S THE ISSUE -- THE MAIN
THE SUPREME COURT WILL DECIDE
WHETHER UNDER THE CONSTITUTION,
THE COMMERCE CLAUSE -- JUST LIKE
HOW WE IMPOSE UNDER LAW PEOPLE
TO GET SOCIAL SECURITY, CAN WE
SAY WE'D LIKE PEOPLE TO GET
COVERED FOR HEALTH CARE?
WE'LL SEE HOW IT WORKS OUT WITH
THE SUPREME COURT.
THEY'VE HEARD THE ARGUMENTS THIS
WEEK AND I'M SURE THE ARGUMENTS
WILL CONTINUE ON THE AIRWAVES
AND IN TOWN HALL MEETINGS AND ON
TELEVISION IN THE YEARS -- IN
TO COME, AND MAYBE
BEYOND THAT, WHO KNOWS?
BUT THE HEART AND SOUL OF THE
HEALTH CARE REFORM LEGISLATION
HAS LESS TO DO WITH MANDATES,
FOR ME, THAN IT DOES WITH HOW DO
WE GET BETTER HEALTH CARE
OUTCOMES FOR LESS MONEY?
FOR ME, THAT'S THE KEY.
HOW DO WE GET BETTER HEALTH CARE
OUTCOMES FOR LESS MONEY?
AND WE DON'T HAVE TO LOOK TO
JAPAN OR OTHER COUNTRIES TO
FIGURE THAT OWVMENT OUT.
WE HAVE TO LOOK TO PLACES LIKE
MINNESOTA, THE MAYO CLINIC,
OHIO, THE CLEVELAND CLINIC,
PENNSYLVANIA HEALTH CARE SYSTEM,
THE CALIFORNIA KAISER
WHAT DO THEY HAVE IN COMMON?
THEY GET BETTER OUTCOMES FOR
TENS OF MILLIONS OF PEOPLE,
BETTER RESULTS FOR LESS MONEY.
HOW DO THEY DO IT?
WELL, THEY HAVE FIGURED OUT WHAT
WORKS, AND THEY DO MORE OF THAT.
AND THEY FIGURED OUT WHAT
DOESN'T WORK.
THEY GET BETTER OUTCOMES FOR
LESS MONEY AND DO LESS OF THAT.
PEOPLE GET SICK, ALL RIGHT, GO
SEE A DOCTOR, GO SEE A NURSE.
THEY HAVE VISITS, THEY GET SHOTS
OR THEY GET LAB TESTS, THEY HAVE
LAB TESTS DONE, X-RAYS,
M.R.I.'S, THAT'S THE WAY WE'VE
DONE IF FOR YEARS, INCLUDING IN
MEDICARE AND MEDICAID.
MUCH SMARTER IDEAS COME OUT OF
CLEVELAND CLINIC, HUGE HEALTH
CARE DELIVERY SYSTEM IN NORTHERN
AYATOLLAH; MAYO CLINIC, KAISER
PERMANENT TAKERS MOSTLY IN
THAT'S WHAT THEY DO.
THEY DON'T JUST INCENTIVIZE
HEALTH CARE PROVIDERS, DOCTORS,
NURSES, HOSPITALS, TO WORK ON
PEOPLE WHEN THEY'RE SICK; THEIR
INCENTIVE WORKS ENTIRELY DITCH.
WHAT THEY DO IN THOSE PLACES IS
THEY FOCUS ON HOW DO WE KEEP
PEOPLE HEALTHY?
HOW DO WE PROVIDE THE INCENTIVES
NOT JUST TO THE DOCTORS,
HOSPITALS AND NURSES TO KEEP
PEOPLE HEALTHY, BUT HOW DO WE
INCENTIVIZE THE PATIENT, THE
PERSON WHOSE HEALTH IS AT STAKE
HERE, HOW DO WE INCENTIVIZE THEM
TO TAKE PERSONAL RESPONSIBILITY
FOR THEIR OWN HEALTH CARE?
IN MY MIND, THAT IS THE HEART
AND SOUL OF HEALTH CARE REFORM
RIGHT THERE.
THE THINGS THAT WORK ARE LARGE
PURCHASING POOL.
WE HAVE AN 18 MILLION PURCHASING
POOL FOR US.
WE'RE PART OF, MEMBERS OF
CONGRESS, OUR STAFFS, ALL
FEDERAL EMPLOYEES, FEDERAL
RETIREES ARE DEPENDENT, PART OF
A HUGE PURCHASING POOL CALLED
THE FEDERAL EMPLOYEES' HEALTH
PEOPLE.
WE DON'T HAVE 8 MILLION FEDERAL
EMPLOYEES, BUT YOU HAVE 8
MILLION PEOPLE WHEN YOU ADD IN
RETIREES AND SO FORTH.
WE'RE PART OF THIS BIG HEALTH
PURCHASING POOL AND WE GET LOWER
PRICES -- NOT FREE, WE PAY ABOUT
28% OF THE PRICE OF OUR PREMIUMS
AS FEDERAL EMPLOYEES, AS
SERVANTS, IF YOU WILL -- AND OUR
EMPLOYERS, THE TAXPAYERS, PAY
THE OTHER 72% OR SOAVMENT SO.
BUT WHAT WE'RE GOING TO DO IS
PROVIDE THE OPPORTUNITY FOR
INDIVIDUALS, FOR FAMILIES, FOR
SMALL AND MID-SIZED
BUSINESSES ALL OVER THE COUNTRY
IN LESS THAN 24 MONTHS TO BE
ABLE TO JOIN A SIMILAR KIND OF
PURCHASING POOL.
WE'RE GOING TO START THEM UP IN
EVERY STATE -- NEW HAMPSHIRE,
DELAWARE, ALABAMA, EVERY OTHER
STATE WILL HAVE THE OPPORTUNITY
TO HAVE THEIR OWN LARGE
PURCHASING POOL, TO BE ABLE TO
TAKE ADVANTAGE OF LOWER
ADMINISTRATIVE COSTS -- OUR
FEDERAL EMPLOYEES' HEALTH
BENEFIT PLAN, $3 OUST EVERY OUT OF EVERY
$100 FOR COST OF PREMIUM, $3
OUST EVERY $100 OF PREMIUM COST
GOES TO ADMINISTRATION.
YOU COMPARE THAT TO OTHER
PLARNTION IT'SPLANS,IT'S MORE LIKE 30%.
A LARGE PURCHASING POOL.
WE'RE GOING TO HAVE THEM
AVAILABLE IN EVERY STATE.
THE OTHER THING WE HAVE GOING
FOR US IN THE FEDERAL EMPLOYEES'
HEALTH BENEFIT PLAN, EVERY
HUNDREDS -- AND WE USE PRIVATE
HEALTH INSURANCE PLANS; IT'S NOT
-- NO YOU, WE'RE NOT USING
SOCIALIZED MEDICINE.
ALL THE HEALTH PLANS IN THE
COUNTRY CAN SIGN UP AND SAY, YOU
KNOW WHAT?
WE WANT TO BE ABLE TO OFFER OUR
PLANS TO THE FEDERAL EMPLOYEES,
RETIREES, AND WE CAN CHOOSE
AMONG THEM.
THERE'S A LOT OF COMPETITION
COMPANIES.
AND WE GET TO BENEFIT PROSECUTE
THAT-- AND WEGET TO BENEFIT FROM THAT.
IT IMPROVES THE RANGE OF
OPPORTUNITIES.
THE OTHER THING I LIKE, MADAM
PRESIDENT, ABOUT THE LAW -- YOU
KNOW, ENTRANCE CANNOT BE MADE
ACROSS STATE LINES.
IN DELAWARE WE'RE BOUND ON THE
WEST BY MARYLAND, THE NORTH BY
PENNSYLVANIA, THE EAST BY NEW
WHEN WE ESTABLISHED OUR OWN
HEALTH INSURANCE POOL IN 20914,
WE'RE NOT GOING TO HAVE A HUGE
BUT WHAT WE HAVE UNDER THE LAW
IS THE OPPORTUNITY TO CREATE AN
DELAWARE AND MARYLAND OR
DELAWARE AND PENNSYLVANIA OR
DELAWARE AND NEW JERSEY AND HAVE
A MULTISTATE OR MAYBE ALL THE
ABOVE -- HAVE A MULTISTATE
PURCHASING POOL OR EXCHANGE.
WE WANT TO HAVE A BIGGER POOL,
INCREASE THE COMPETITION, DRIVE
DOWN THE COST.
IN HEALTH CARE THAT WOULD BE
AVAILABLE IN DELAWARE, COULD BE
OFFERED DB-- PLANS COULD BE OFFERED IN
DELAWARE, PENNSYLVANIA, NEW
JERSEY, MARYLAND.
THE CONSUMER.
THAT IS ANOTHER PART OF THE
HEART AND SOUL.
TWO THINGS I'LL CLOSE WITH ON
THIS SIDE AND THEN TURN TO WHAT
I REAL CLAIM TO THE FLOOR TO
TALK ABOUT.
BUT I WAS INSPIRED BY MY FRIEND
FROM ALABAMA.
IN TERMS OF THE KEY REFORMS IN
THE HEALTH CARE LEGISLATION,
NUMBER ONE, MOVE AWAY FROM
FEE-FOR-SERVICE.
JUST PAYING FOR TREATING PEOPLE
WHEN THEY ARE THEY ARE SICK, MIGRATE TO A
SYSTEM LIKE WE HAVE AT MAYO,
CLEVELAND CLINIC, KAISER
PERMANENTE WHERE THEY ACTUALLY
FOCUS ON HOW DO WE KEEP PEOPLE
FOCUS
ON WELL, IN FOCUS ON TREATING
PEOPLE IN A COORDINATEED PROCESS
AS A TEAM.
THE OTHER KEY ELEMENT HERE IS
THIS IDEA OF CREATING THESE
TRYING TO INCENTIVIZE PEOPLE TO
BE PART OF THE HEALTH CARE
DELIVERY SYSTEM BY TAKING BETTER
CARE OF THEMSELVES.
THOSE ARE THE TWO KEYS.
NOW, WHAT I REALLY CAME TO THE
FLOOR TODAY FOR, MADAM
PRESIDENT, IS TO HAVE THIS DRINK
OF WATER.
AND TO SWITCH GEARS AND TO TALK
A LITTLE BIT ABOUT GAS PRICES.
MADAM PRESIDENT, I DON'T KNOW
WHAT KIND OF VEHICLE YOU DRIVE
MOST OF YOUR MILES IN IN NEW
MOST OF THE MILES I DRIVE AND
HAVE BEEN DRIVING IN DELAWARE
FOR NOW 11 YEARS IS IN A
CHRYSLER TOWN AND COUNTRY
MINIVAN.
WHEN I STEPPED DOWN AS GOVERNOR
IN JANUARY OF 2001, MY OLD
CHEVROLET CORSICA WAS OLD AND MY
WIFE SAID, DON'T YOU THINK IT IS
TO GET SOMETHING YOU?
OUT.
WE WENT OUT AND DROVE PORSCHE,
FERRARI AND WE BOUGHT A 2001
TOWN AND CHRYSLER MINIVAN, WHICH
HE LAMENTS TO THIS DAY.
FAST-FORWARD, WE HAD A MEETING
YESTERDAY MORNING WITH THE
C.E.O. OF CHRYSLER-FIAT.
I MENTIONED WHEN WE BOUGHT THIS
VEHICLE WHEN I STEPPED DOWN AS
VEHICLE AND 11 YEARS LATER --
LATER THIS WEEK THE ODOMETER
WILL HAVE THE NUMBERS 300000 AND
COUNTING.
GOING TO GO OVER 300,000 MILES.
BUILT IN THIS COUNTRY, TERRIFIC
VEHICLE.
BUT WHEN I STOPPED AND GOT GAS
LAST WEEK -- AND WE PAY ABOUT
THE PRICES CONTINUE TO GO UP AND
POSLY UP, SOMETIMES DOWN AND
BACK UP AGAIN.
AND WHAT I'D LIKE TO DO IS TALK
A LITTLE BIT ABOUT HOW I GOT GAS
PRICES AND HOW IT PUTS PRESSURE
ON ALL BUDGETS, CLUCK THE
BUDGETSBUDGET-- INCLUDING THE BUDGETS OF MY
OWN FAMILY.
WE DRIVE THAT VEHICLE A WHOLE
LOT AND HOPEFULLY WILL DRIVE IT
A FEW MORE MILES BEFORE IT IS
READY TO SIT MORE IN THE
DRIVEWAY AND TAKE A REST.
I WANT TO BEGIN BY
ACKNOWLEDGING, MADAM PRESIDENT
-- I LAIR -- HEAR -- I GO HOME EVERY
NIGHT AND TALK EVERY NIGHT AND
MORNING -- I HISTORY A WHOLE LOT
-- I HEAR A WHOLE LOT DIRECTLY
FROM THE FOLKS I REPRESENT ABOUT
CONCERNS ABOUT GASOLINE PRICES
AT THE PUMP AND THE KIND OF
PRESSURE IT PUTS ON THEIR
BUDGETS WITHIN THEIR OWN
FAMILIES.
I UNDERSTAND THAT GAS PRICES ARE
AT THEIR PEAK, ACTUALLY HAVE
BEEN HIGHER THAN THIS.
THE BUSH ADMINISTRATION.
BUT THIS IS AS HIGH AS THEY'VE
IT PUTS A STRAIN ON AMERICAN
FAMILIES, PUTS A STRAIN ON
AMERICAN BUSINESS, AND THREATENS
TO IMPEDE OR SLOW DOWN OUR
ECONOMIC RECOVERY, WHICH IS
ACTUALLY MOVING AT A PACE PRETTY
WELL.
UNFORTUNATELY, THE SOLUTION IS
SUGGEST.
IF IT WERE, WE WOULD NOT BE
HAVING THIS DISCUSSION EVERY
YEAR OR TWO AROUND THE SAME
TIME.
I AM ASKED SOMETIMES WHY DON'T
WE JUST DRILL MORE IN THIS
COUNTRY BECAUSE SOME ASSUME THAT
HIGHER GAS PRICES AT THE PUMP
MUST MEAN THAT WE HAVE SLOWED
DOWN OR STOPPED DRILLING HERE AT
HOME, AND MANY ARE SURPRISED BY
THE ANSWER.
THE ANSWER IS THIS -- WE ARE
DRILLING MORE IN AMERICA.
IN FACT, I BELIEVE -- CORRECT ME
IF I'M WRONG, MADAM PRESIDENT,
BUT WE ARE DRILLING MORE IN THIS
COUNTRY THAN WE HAVE AT LEAST
THE LAST EIGHT YEARS.
AND BECAUSE WE ARE DRILLING
MORE, THE U.S. IS NOW A NET OIL
EXPORTER, NOT A NET OIL
IMPORTER.
AND THIS COUNTRY WHICH FOR YEARS
ARE THE SAUDI ARABIA
OF COAL, WE'RE NOW ON OUR WAY TO
BECOMING THE SAUDI ARABIA OF --
OF NATURAL GAS AND AS WE HAVE
OPENED UP FOR DRILLING
ADDITIONAL ACRES, ONSHORE,
OFFSHORE, OFF ALASKA AND THE
GULF, WE ARE IN A POSITION TO
BECOME A NET OIL EXPORTER.
NOW, THE ADMINISTRATION, THE
OBAMA ADMINISTRATION, HAS MADE
AVAILABLE MILLIONS OF ACRES FOR
OIL AND GAS EXPLORATION THE LAST
YEAR OR TWO.
APPROVING MORE THAN 400 DRILLING
PERMITS SINCE THE NEW SAFETY
STANDARDS WERE PUT IN PLACE.
THESE SAFETY STANDARDS YOU MAY
RECALL WERE IMPLEMENTED TO MAKE
SURE WE DIDN'T HAVE A REPEAT OIL
SPILL DISASTER LIKE THE B.P. OIL
SPILL THAT OCCURRED ALMOST TWO
YEARS AGO TODAY.
WE HAVE BEEN JOINED HERE ON THE
FLOOR BY SENATOR NELSON FROM
FLORIDA WHO REMEMBERS ALL TOO
WELL THE OIL THAT WASHED UP IN
PLACES LIKE PENSACOLA WHERE I
DID SOME BASIC TRAINING ON MY
WAY TO BECOMING A NAVAL FLIGHT
OFFICER, AND THE KIND OF
HEADACHES THAT -- BUT SINCE WE
THAT STRAIGHTENED OUT, PUTS
TIGHTER RESTRICTIONS FOR DRIFG
SAFEGUARDS.
400 OR SO DRILLING PERMITS JUST
SINCE THEN HAVE BEEN PUT IN
STANDARDS.
AS A RESULT, WE HAVE A RECORD
NUMBER OF OIL RIGS OPERATING
RIGHT NOW, MORE WORKING OIL AND
GAS RIGS IN THE WEST THAN OIL
WITH THE CHANGES THAT HAVE BEEN
MADE, THE INCREASES IN
PERMITTING IN THE LAST YEAR OR
TWO, WE NOW HAVE A RECORD NUMBER
OF OIL RIGS OPERATING RIGHT NOW.
MORE WORKING OIL AND GAS RIGS
THAN THE REST OF THE WORLD
COMBINED, COMBINED.
AND YET OF THE MILLIONS OF ACRES
THE GOVERNMENT HAS ALLOWED, OUR
GOVERNMENT HAS ALLOWED FOR OIL
AND GAS DEVELOPMENT, ONLY 25% OF
THOSE ACRES ARE BEING USED FOR
PRODUCTION.
WE HAD A CHART HERE THAT
GRAPHICALLY.
IF YOU WILL, THINK OF ALL THIS
AS THE MILLIONS OF ACRES THAT
ARE AVAILABLE FOR OIL AND GAS
DEVELOPMENT IN THIS COUNTRY.
OF ALL THESE IN THE ORANGE, WE
HAVE THE PERCENTAGE THAT ARE
PRODUCING ACRES.
WE ACTUALLY HAVE PERMITS FOR THE
OIL AND GAS COMPANIES COULD BE
DRILLING, 25% OF THESE PRODUCING
ACRES, AND 75% OF THESE ARE
NONPRODUCING ACRES.
IT'S NOT BECAUSE PEOPLE ARE
DRY HOLE.
IN MANY CASES, THEY ARE NOT
KEEP THAT PICTURE.
YOU KNOW THE OLD SAYING, A
WORDS.
THIS IS WORTH AT LEAST 500.
MAYBE EVEN MORE THAN THAT.
WOULD THE SENATOR
YIELD FOR THAT POINT?
I'M HAPPY TO YIELD.
WOULD YOU BELIEVE
THAT IN THE GULF OF MEXICO, OF
ALL THE PRODUCTION THERE, THAT
THE PERCENTAGE IS EVEN WORSE IN
ALL OF THOSE ACRES THAT ARE
UNDER LEASE, WHICH ARE
32 MILLION ACRES --
JUST IN THE GULF.
JUST IN THE GULF.
32 MILLION ACRES.
AND GUESS HOW MANY ACRES ARE
ACTUALLY DRILLED AND PRODUCING?
EIGHT MILLION.
SIX MILLION.
SO 26 MILLION ACRES ARE UNDER
LEASE IN THE GULF OF MEXICO AND
ARE NOT BEING PRODUCED.
THANK YOU FOR THAT.
WOULDN'T IT SUGGEST
THAT THEY OUGHT TO USE IT OR
LOSE IT?
CERTAINLY WOULD.
THANK YOU FOR SHARING THAT POINT
WITH US.
HERE WE ARE.
MORE DRILLING IN AMERICA,
ONSHORE AND OFFSHORE.
WE'RE NO LONGER A NET OIL
IMPORTER.
WE HAVE 75 MILLION ACRES THAT
TAPPED.
A LOT OF THOSE DONE IN THE GULF
AS SENATOR NELSON SUGGESTED.
YET AMERICAN CONSUMERS ARE STILL
PAYING MORE AT THE PUMP.
ALL THE WHILE THE FIVE LARGEST
OIL COMPANIES, B.P., CHEVRON,
CONOCOPHILLIPS, EXXONMOBIL,
ROYAL DUTCH, SHELL GROUP, THEY
DID PRETTY WELL.
THEY MADE ABOUT $137 BILLION
LAST YEAR.
AND TO TOP IT OFF, THESE
COMPANIES RECEIVE BILLIONS OF
DOLLARS IN TAXPAYER SUBSIDIES TO
DRILL FOR OIL AND GAS EVEN AS
THEY ARE MAKING VERY HEALTHY, I
THINK, RECORD-BREAKING PROFITS.
NOW, THIS DOESN'T MAKE A WHOLE
LOT OF SENSE TO ME.
BUT LET ME JUST STOP.
I WANT TO BE CLEAR ON THIS ONE.
I DON'T BEGRUDGE, I DON'T THINK
ANY OF US SHOULD BEGRUDGE THE
SUCCESS.
THEY HAVE A FAIR AMOUNT AT RISK
WHEN THEY DRILL FOR OIL AND GAS.
RISK.
BUT THIS IS ALSO A BUSINESS WITH
ENORMOUS PAYOFFS, ENORMOUS
RISKS.
BUT I DO QUESTION GIVING AWAY
BILLIONS OF TAXPAYER DOLLARS IN
DRILLING SUBSIDIES AT A TIME
WHEN WE'RE RUNNING RECORD
FEDERAL DEFICITS, TO ESTABLISH
AND REALLY ESTABLISH IN
SUCCESSFUL INDUSTRIES THAT I
DON'T THINK NEED A WHOLE LOT OF
FINANCIAL INCENTIVE TO DRILL
MORE IN THIS COUNTRY.
IF YOU CAN MAKE A HUNDRED BUCKS
A BARREL OR 110 BUCKS A BARREL,
THAT'S A PRETTY GOOD INCENTIVE,
AT LEAST IN MY MIND.
WHY, BECAUSE AT THE END OF THIS
DAY, IT'S NOT THE SOLUTION.
WE CAN'T JUST DRILL OUR WAY OUT
OF THE SITUATION THAT WE'RE IN.
TODAY AMERICA
CONSUMES SOME
EVERY DAY.
THE PRIMARY REASON THAT AMOUNT
IS SO HIGH IS BECAUSE AMERICANS
PUMP.
AND UNTIL RECENTLY, WE HAD VERY
LITTLE CHOICE IN THE SHOW ROOM,
THE AUTOMOTIVE SHOW ROOMS.
THAT'S CHANGED RATHER
IN FIVE YEARS, IT'S GOING TO
CHANGE A WHOLE LOT MORE.
BUT WE CAN CHOOSE BETWEEN OIL
AND OIL.
MOST OF THE TIME, WE PULL INTO A
GAS STATION TO FILL UP.
BASICALLY, EVERY AMERICAN
DRIVER'S DOLLARS ARE A FOREGONE
CONCLUSION TO THE OIL INDUSTRY,
SO WHAT DO WE NEED?
WHAT DO WE NEED TO DO ABOUT
WELL, HOW ABOUT SOME CHOICE?
IF WE CAN GIVE AMERICANS A
ON THE CHART WE HAVE HERE, WE
HAVE SOLAR.
SOME OF THE NEW VEHICLES THAT
ARE ACTUALLY BEING MADE ACTUALLY
HAVE SOLAR PANELS, BELIEVE IT OR
NOT, ON THEIR ROOFS.
HERE WE HAVE WIND.
HARNESSING A LOT OF WIND AROUND
THE COUNTRY.
HOPEFULLY BEFORE LONG WE'LL
HARNESS IT OFF THE EAST COAST,
FROM NORTH CAROLINA UP TO MAINE
TO PROVIDE ELECTRICITY.
IT WILL HELP PROVIDE THE JUICE
THAT THEY NEED TO RELEASE HYBRID
ELECTRIC VEHICLES THAT ARE BEING
WE HAVE NUCLEAR.
WE HAVE A LOT OF NUCLEAR IN THE
THAT CAN PROVIDE ELECTRICITY, IF
YOU WILL, THE JUICE FOR THOSE
AND HERE WE HAVE COMPANIES LIKE
DUPONT IN OUR STATE WORKING WITH
B.P. TO ACTUALLY CREATE NOT CORN
ETHANOL BUT ETHANOL, CELLULOSIC
ETHANOL OUT OF CORN STOVERS.
WHAT IS THAT?
THAT'S THE STALK, THE CORN COB,
THE LEAF OF THE CORN.
REALLY CREATE A FUEL CALLED
BIOBUTANOL THAT WE WILL HEAR
ABOUT IN COMING YEARS THAT HAS
BETTER DENSITY THAN CORN
ETHANOL, IT MIXES BETTER WITH
GASOLINE THAN CORN ETHANOL.
PIPELINE.
IT'S ALL THE THINGS THAT CORN
ETHANOL IS NOT.
THAT'S THE KIND OF STUFF WE
OUGHT TO BE DOING.
WE SHOULD BE INCENTIVIZING, NOT
ONLY HAVING BEEN INVOLVED IN THE
READY OF THAT -- R&D OF THAT
STUFF BUT ENCOURAGING ITS USE.
I THINK MARKET FORCES WILL TAKE
IT FROM THERE.
BUT WHETHER THE CHOICE IS
NATURAL GAS, CONVERTING LARGE
DIESEL VEHICLES INTO USING
NATURAL GAS, ELECTRICITY FROM
NUCLEAR.
FOR THE FIRST TIME IN 30 YEARS,
THE NUCLEAR REGULATORY
COMMISSION HAS JUST APPROVED THE
POWER PLANTS.
WE WENT 30 YEARS WITHOUT
PLANT.
TWO ARE UNDER WAY DOWN IN
THEY USE A NEW DESIGN CALLED AP-
1000.
ALSO APPROVED BY THE NUCLEAR
REGULATORY COMMISSION.
THE NUCLEAR DESIGN IS LITERALLY
PLANT.
IF YOU HAVE A HURRICANE OR IF
YOU HAVE AN EARTHQUAKE, IF YOU
HAVE A TSUNAMI, BASICALLY IT
SHUTS ITSELF DOWN.
WE DON'T HAVE TO WORRY ABOUT THE
PROBLEMS THEY HAD IN FUKUSHIMA
WHERE THEY LOST COMMUNICATION,
WHERE THEY LOST THE PUMPING
STATION, WHERE EVERYTHING THAT
WENT WRONG COULD GO WRONG.
THESE SYSTEMS ALL BASICALLY SHUT
DOWN BY THEMSELVES.
IT'S A MUCH SMARTER APPROACH.
IT'S THE WAY THE TWO NEW POWER
PLANTS IN GEORGIA ARE GOING TO
THAT'S PART OF THE SOLUTION AS
WELL.
BUT WE NEED INVESTMENTS IN NEW
FUELS AND INVESTMENTS IN NEW
VEHICLES AND NEW INFRASTRUCTURE
TO USE THESE NEW AMERICAN-MADE
ALTERNATIVE FUELS.
WE ALREADY HAVE VEHICLES THAT
CAN RUN ON BIOFUELS, ON NATURAL
GAS AND ELECTRICITY.
HAD THE FOLKS FROM THE U.S. NAVY
IN THE OTHER DAY.
SOME PEOPLE FROM DOWN IN
FLORIDA.
WE ARE FLYING NAVY AND AIR FORCE
AIRPLANES USING A 50-50 MIXTURE
OF JET FUEL AND BIOFUEL.
PRETTY COOL STUFF.
PERFORMANCE.
WE JUST NEED TO MAKE THOSE
VEHICLES, WHETHER THEY ARE
AIRCRAFT OR CARS, TRUCKS AND
VANS, MAKE THOSE VEHICLES AND
THE FUELS FOR THOSE VEHICLES
MORE AVAILABLE TO THE AMERICAN
PEOPLE, IN THIS CASE OUR ARMED
WE JUST NEED A CHOICE.
WE NEED A GREATER CHOICE THAN
WHAT WE HAVE HAD.
THE BILL OFFERED BY SENATOR
MENENDEZ ACTUALLY STARTS TO GIVE
US THAT CHOICE.
A.M.A. GETTING CLOSE TO THE END
HERE, SENATOR NELSON.
LET ME SAY INSTEAD OF GIVING
BILLIONS OF DOLLARS IN -- TO OIL
COMPANIES TO CONTINUE WHAT THEY
ALREADY DOING, WHAT DON'T WE
JUST PUT SOME FEDERAL DOLLARS IN
TO WORK TO ALLOW REAL CHOICES AT
AND IT TURNS OUT SOME OF THE
FOLKS ARE REALLY DOING SOME
CUTTING-EDGE WORK ON THIS, TURN
OUT TO BE SOME OF THESE OIL
SOME OF THE BEST BIOFUELS WORK
IS BEING DONE BY OUTFITS LIKE
B.P. AND LIKE SHELL.
RATHER THAN INCENTIVIZING JUST
TO DRILL MORE, WHY DON'T WE
INCENTIVIZE THEM TO COME UP WITH
ALTERNATIVE AND BIOFUELS AND
OTHER KINDS OF RENEWABLE FORMS
OF ENERGY.
THEY SHOULDN'T BE CUT OUT OF
THEY ARE ENERGY COMPANIES.
THEY ARE NOT JUST OIL AND GAS
COMPANIES.
INCENTIVIZE THEM TO CREATE
ENERGY.
I WANTED TO, IF I CAN, JUST GO
BACK A COUPLE OF YEARS.
I WANT TO GO BACK TO 2002.
2002, I'M TOLD THAT -- OH, GOSH,
FROM 2002-2010, CHEVRON SPENT
SOMETHING LIKE ROUGHLY
$4.5 BILLION GLOBALLY FROM --
GLOBALLY.
FROM 2002-2010, THEY DID ON
RESEARCH AND DEVELOPMENT FOR
RENEWABLES AND ALTERNATIVES
GEOTHERMALS, BIOFUELS,
WIND AND SOLAR ON
ENERGY-EFFICIENT MEASURES.
THAT'S ABOUT $4.4 BILLION.
IN 2010 ALONE, EXXONMOBIL
INVESTED ABOUT $67 MILLION IN
RESEARCH AND DEVELOPMENT OF OIL
ALTERNATIVES, MAINLY IN ALGAE
RESEARCH THAT SAME YEAR, B.P.
SPENT $284 MILLION.
CONOCOPHILLIPS SPENT SOMETHING
LIKE $34 MILLION ON
ADMINISTRATION AND ALTERNATIVE
FUELS.
AGAIN, THE IDEA IS THESE OIL
COMPANIES, THEY ARE DOING R&D.
WHY DON'T WE INCENTIVIZE THEM TO
DO SOME R&D FOR RENEWABLE FUELS,
NOT FOR OIL AND GAS?
WHEN THEY HAVE OIL AND GAS, $100
A BARREL, $90 A BARREL, THEY
DON'T NEED A WHOLE LOT IN TERMS
OF INCENTIVES TO DRILL.
LET'S INCENTIVIZE THEM TO DO THE
RENEWABLE FUEL.
OKAY.
RATHER THAN -- LET ME JUST -- I
WANT TO BE MINDFUL OF OUR TIME,
BE MINDFUL OF MY COLLEAGUE
WAITING HERE.
IN CLOSING, LET'S SAY
LET'S PUT FEDERAL DOLLARS INTO
CHOICES AT THE PUMP THAT ARE
DEVELOPED HERE IN AMERICA.
I'LL SAY THAT AGAIN.
WE'RE TAKING MONEY FROM THE
TREASURY, WE'RE USING THAT MONEY
TO INCENTIVIZE THE CREATION OF
MORE ENERGY, IN SOME CASES MORE
FUEL RATHER THAN JUST
INCENTIVIZING CREATION OF A
TRADITIONAL FUEL, IF YOU WILL,
THAT COMES OUT OF THE GROUND,
THE OIL.
WHY DON'T WE INCENTIVIZE SOME OF
THOSE SAME OIL COMPANIES, A
BUNCH OF FOLKS THAT AREN'T OIL
COMPANIES TO CREATE RENEWABLE
FUELS, THE KIND I JUST
MENTIONED, THAT WILL BE PRODUCED
HERE IN AMERICA, THAT WILL HELP
US LOWER OUR COSTS AND CREATE
JOBS WHILE THEY'RE DOING IT.
IF -- IF WE WANT AN APPLE TODAY,
WHEN IS THE BEST TIME TO PLANT A
THE BEST TIME TO PLANT A TREE IS
PROBABLY TEN YEARS AGO.
PERHAPS SIX YEARS AGO IF YOU
REALLY NURTURE AND CARE FOR THAT
TREE.
WELL, THAT'S WHAT WE ARE DEALING
WITH HERE TODAY.
WE NEED TO START INVESTING TODAY
FOR THE CHOICES OF LOWER UTILITY
COSTS AT THE PUMP TOMORROW.
JUST LIKE BUILDING THE KEYSTONE
PIPELINE WHICH IS -- IS
OTHERS.
THE SOUTHERN PART OF THAT IS
ACTUALLY UNDER WAY.
THE REST IS GOING TO BE GOING
THROUGH AN APPROVAL PROCESS THAT
SHOULD BE WORKED OUT WITHIN THE
THAT'S NOT GOING TO SOLVE THE
PRICE AT THE PUMP TODAY.
WHAT WE HAVE TO NEED IS WHAT WE
CALL ALL OF THE ABOVE APPROACH,
ALL OF THE ABOVE APPROACH.
IT INCLUDES NUCLEAR, INCLUDES
OFFSHORE, ONSHORE WIND,
BIOFUELS, SOLAR, NATURAL GAS AND
BIG DIESEL VEHICLES THAT WE
TRANSFORM TO TAKE NATURAL GAS,
ALL THE ABOVE, AND THAT'S WHAT
WE NEED TO DO.
WE NEED TO NURTURE NEW
INVESTMENTS FOR ALTERNATIVE
FUELS SO WE CAN SEE THE ECONOMIC
GAINS SOONER RATHER THAN LATER.
I THINK SENATOR MENENDEZ'S
LEGISLATION DOES THAT.
THAT'S WHY I AM CALLING ON MY
COLLEAGUES TO SUPPORT THAT KIND
OF APPROACH, WHETHER IT'S THIS
PARTICULAR APPROACH OR SOMETHING
THAT'S SIMILAR TO THAT.
AND THAT PRETTY MUCH WRAPS UP
WHAT I WANT TO SAY.
I WANT TO THANK MY FRIEND FROM
FLORIDA FOR BEING A VOICE OF
REASON ON THESE SUBJECTS.
THIS IS A GUY WHO IS REALLY GOOD
AT JUST USING SOME COMMON SENSE.
I WILL CLOSE WITH THIS.
MY DAD WAS A NAVAL FLIGHT
OFFICER -- NOT NAVAL FLIGHT.
A NAVAL CHIEF PETTY
OFFICER FOR MANY YEARS, FOR
30-SOME YEARS.
HE USED TO SAY TO MY SISTER AND
ME, JUST USE COMMON SENSE.
WE MUST NOT HAVE HAD MUCH AS
LOT.
I THINK THE COMMONSENSE APPROACH
HERE IS AN ALL OF THE ABOVE
APPROACH.
WE NEED TO DO ALL OF THE ABOVE.
WE NEED TO INCENTIVIZE THE OIL
COMPANIES AND A LOT OF OTHER
FOLKS NOT JUST TO DRILL FOR OIL
BUT TO MAKE SURE THERE ARE GOOD
ALTERNATIVES TO THAT.
WITH THAT, I YIELD TO MY FRIEND
AND COLLEAGUE AND BID YOU ADIEU.
THANK YOU.
THE
SENATOR FROM FLORIDA.
MADAM PRESIDENT, I
CAME TO THE FLOOR TO TALK ABOUT
AN OUTSTANDING CITIZEN IN OUR
STATE, BUT BEFORE I DO, WHILE MY
COLLEAGUE IS HERE, I JUST WANT
TO THANK HIM FOR A VERY
WELL-REASONED STATEMENT.
WHAT WE NEED IS OVERALL INCOME
TAX CODE REFORM.
MY COLLEAGUE FROM DELAWARE AND I
HAVE THE PRIVILEGE OF SITTING ON
THE FINANCE COMMITTEE, AND EVEN
THOUGH THE PROSPECTS FOR TAX
REFORM ARE VERY SLIM
BETWEEN NOW AND THE ELECTION,
PERHAPS SHORTLY THEREAFTER WE
CAN REALLY GET ABOUT THE
SERIOUSNESS OF TAX CODE, MAKING
IT MORE FAIR, MORE SIMPLE,
TAKING REVENUE THAT OTHERWISE
ESCAPES THE TREASURY BECAUSE IT
GOES INTO ALL THESE TAX
PREFERENCES CALLED TAX
EXPENDITURES, TAX LOOPHOLES, AND
USE THAT REVENUE TO SIMPLIFY THE
TAX CODE AND TO LOWER
EVERYBODY'S RATES.
INCLUDING THE INDIVIDUAL RATES
AND THE CORPORATE RATES.
NOW, THAT'S IMMINENTLY COMMON
SENSE, AND THE REASON I WANT TO
POINT THIS OUT RIGHT NOW IS
BECAUSE OUR FRIEND FROM DELAWARE
HAS JUST POINTED OUT ONE OF
THOSE LOOPHOLES.
IN AN INDUSTRY THAT IS CERTAINLY
NOT HURTING BECAUSE THE FIVE TOP
OIL COMPANIES IN THE LAST
QUARTER, THAT'S 90 DAYS, HAD
PROFIT, NOT REVENUE.
THE FIVE TOP NORTH OF
$25 BILLION.
FOR FIVE COMPANIES FOR 90 DAYS.
NOT REVENUE, PROFIT.
NOW, WE DON'T BEGRUDGE THEM THE
PROFIT.
BUT SHOULD THERE BE THESE TAX
PREFERENCES THAT HAVE BEEN
ETCHED INTO THE TAX CODE OVER A
CENTURY THAT, IN FACT, ALLOW
THIS INDUSTRY TO HAVE TAX
PREFERENCES, OR IN OTHER WORDS
DEDUCTIONS OF $4 BILLION A YEAR?
NOW, I WOULD THINK THAT WOULD BE
PREFERENCES.
YOU'RE OBVIOUSLY NOT GOING TO
GET IT IN THE CONTEXT OF THE
POLITICS OF AN ELECTION, AND
GET IT IN AN
ISOLATEED VEIN.
WE'RE GOING TO HAVE TO LOOK AT
THE OVERALL TAX CODE AND START
MAKING IT MORE FAIR FOR THE
I DARE SAY THAT THERE IS NOT
VERY MANY AMERICAN TAXPAYERS WHO
THINK THAT THE I.R.S. TAX CODE
IS A FAIR CODE.
OR SIMPLE.
AND AS A RESULT, I WANT TO THANK
HIM FOR HIS EE LEWIS --
ELUCIDATION OF WHAT IS A PLACE
WE COULD START.
IT'S NOT RIGHT OR LEFT, IT'S NOT
R&D, IT'S COMMON SENSE.
ONE OTHER THING THAT I WOULD ADD
TO THE SENATOR'S EXCELLENT
PRESENTATION, AND THAT IS THAT
AS GAS CREEPS HIGHER AND HIGHER,
IN PARTS OF FLORIDA, IT IS
NOW FOUR BUCKS A GALLON, AND
THAT OIL IS BEING SOLD ON THE
INTERNATIONAL MARKETPLACE
SOMETHING LIKE $120 A BARREL,
HOW MUCH OF THAT IS FROM
SPECULATION OF PEOPLE WHO BUY
AND SELL OIL CONTRACTS FOR
FUTURE DELIVERY THAT ARE NOT
USERS OF THE OIL LIKE AN AIRLINE
THAT WOULD CLEARLY HAVE REASON
TO WANT TO LOCK IN A FIXED PRICE
FOR OIL IN THE FUTURE AS A HEDGE
AGAINST THAT PRICE OF OIL GOING
UP AND UP, BECAUSE THEY'RE GOING
TO USE THAT OIL AS FUEL IN THEIR
AIRLINE. THESE ARE THE ONES THAT ARE
MERELY FLIPPING LIKE HAMBURGERS,
THE CONTRACTS OVER AND OVER,
WHICH HAS A TENDENCY TO RAISE
THE PRICE OF OIL.
THE PRICE OF A BARREL OF OIL AS
CLEARLY IS GOING
TO AFFECT THE PRICE THAT WE GO
INTO THE GAS PUMP AND PUT IN OUR
GAS TANK.
AND SO, IF WE WOULD JUST START
USING SOME COMMON SENSE AND
APPROACH THESE THINGS AND DO IT
IN A FAIR WAY, I THINK WE COULD
GET ALONG SO MUCH BETTER, AND
THE AMERICAN PEOPLE WOULD FEEL
SO MUCH BETTER ABOUT THEIR TAX
AND SO I WANT TO THANK THE
SENATOR FOR HIS PRESENTATION.
IF MY FRIEND WOULD
YIELD TO ME FOR ONE MORE MINUTE.
CERTAINLY.
A LOT OF PEOPLE GO
OUT THIS TIME OF YEAR AND BUY
NEW CARS, TRUCKS AND VANS.
TRADITIONALLY SPRING IS WHEN
PEOPLE SHOP FOR VEHICLES.
GO BACK A COUPLE OF YEARS --
2007, 2007 WE SOLD 16 MILLION
CARS, TRUCKS AND VANS IN THIS
COUNTRY.
2009, AS WE HAVE FALLEN INTO THE
GREAT RECESSION, CAR SALES,
UNITS.
FROM 16 MILLION TO 9 MILLION IN
LESS THAN 24 MONTHS.
THAT'S CHANGED NOW.
WE'RE ON OUR WAY.
AS WE NOTED SERGIO MARCHION
TPH E, THE C.E.O. OF CHRYSLER,
SAID THEY WERE ON THEIR WAY TO
RECORD PROFITS, THE MONEY WE
INVESTED IN AS TAXPAYERS, PEOPLE
ARE GOING OUT TO START TO BUY
VEHICLES AGAIN, THE AVERAGE LIFE
OF A VEHICLE MOST PEOPLE OWN IS
THIS IS A TIME WHEN PEOPLE ARE
THINKING ABOUT STARTING TO TRADE
IN THEIR VEHICLES OR BUY
SOMETHING MORE ENERGY EFFICIENT.
UNLIKE FIVE YEARS, PEOPLE COULD
GO INTO ANY CHRYSLER, FORD
DEALERSHIP, FORD LABELS AS WELL,
AND BUY VEHICLES THAT BET 30 --
THAT GET 30, 35, 40 MILES PER
WE FIND THAT FINALLY THE
BACK.
I WOULD SAY FOR PEOPLE WHO HAVE
THE AVAILABILITY, WHO THINK
ABOUT TRADING UP, THIS IS A
GREAT TIME TO DO IT.
GREAT VEHICLES, GREAT QUALITY
AND MUCH BETTER FUEL EFFICIENCY.
WELL.
SO THANK YOU.
I WANT TO THANK
THE SENATOR FOR PULLING UP THE
CHART THAT SHOWED THE AMOUNT OF
ACRES THAT ARE UNDER LEASE AND
THE MINUSCULE PORTION OF THOSE
THIS IS DOMESTIC PRODUCTION.
WE ALL KNOW THAT DOMESTIC
PRODUCTION HAS SHOT UP IN THE
LAST THREE YEARS CONSIDERABLY.
AND YET, OF THAT DOMESTIC
PRODUCTION, THERE'S STILL SO
MUCH CAPACITY THAT IS ALREADY
LEASED OUT THERE.
AND I USED THE EXAMPLE OF THE
GULF OF MEXICO.
IN THE CENTRAL AND THE WESTERN
GULF, THERE ARE 32 MILLION ACRES
UNDER LEASE, AND ONLY 6 MILLION
ACRES OF THAT 32 MILLION ARE
ACTUALLY DRILLED AND PRODUCED.
AND SO, THERE'S AMPLE
FOR ADDITIONAL
DOMESTIC ENERGY PRODUCTION ON
TOP OF THE SUBSTANTIAL INCREASE
OF PRODUCTION THAT HAS OCCURRED
OVER THE COURSE OF THE LAST
SEVERAL YEARS.
SO IF WE'D STOP FIGHTING ABOUT
ALL THIS STUFF, IF WE'D STOP
BEATING EACH OTHER OVER THE HEAD
POLITICALLY WITH THIS STUFF AND
REALLY GET SERIOUS, YOU REMEMBER
SENATOR CARPER, WHEN YOU AND I
WERE YOUNG CONGRESSMEN, WE HAD A
GOOD EXAMPLE OF LEADERSHIP.
WE HAD TIP O'NEILL, THE SPEAKER
IN THE HOUSE, AND WE HAD BOB
MICHEL, THE HEAD, THE REPUBLICAN
LEADER, AND THE TWO OF THEM,
THEY'D GET INTO THEIR FIGHTS,
BUT THEY WERE PERSONAL FRIENDS.
SO THAT AT THE END OF THE DAY
WHEN IT WAS TIME TO STOP TALKING
AND GET TOGETHER AND BUILD
CONSENSUS TO GET A WORKABLE
SOLUTION, THEY COULD DO I
WE NEED THAT KIND OF MODEL
IN WASHINGTON, D.C.
AND STATE CAPITOLS AROUND THE
COUNTRY.
AND SO I THANK THE SENATOR FOR
HIS PRESENTATION.
MADAM PRESIDENT, I CAME TO THE
FLOOR TODAY BECAUSE I WANT TO
CONGRATULATE A FLORIDIAN,
ROSEMARY ARMSTRONG, ALONG WITH
HER HUSBAND, SANDY WINEBERG.
I WANT TO CONGRATULATE ROSEMARY
BECAUSE SHE'S BEEN SUCH A
LONGTIME ADVOCATE OF PRO BONO
LEGAL WORK IN OUR STATE.
SHE IS A MARVELOUS LAWYER, A
GRADUATE OF COLUMBIA.
AND WHY SHE IS TO BE
CONGRATULATED AT THIS POINT IS
THAT SHE HAS RECEIVED THE 2012
TOBIAS SIMON PRO BONO SERVICE
IS THE HIGHEST HONOR IN THE
STATE OF FLORIDA, FLORIDA BAR
STATE.
THIS YEAR MARKS THE 30th
ANNIVERSARY OF THE TOBIAS SIMON
AWARD, AND IT WAS NAMED AFTER
THE WELL-KNOWN CIVIL RIGHTS
ATTORNEY IN FLORIDA.
AND THE AWARD HONORS THE WORK OF
PRIVATE LAWYERS FOR 30 YEARS NOW
WHO PROVIDE FREE, VOLUNTARY
LEGAL SERVICES TO THE POOR.
AND OVER THE PAST 25 YEARS,
ROSEMARY HAS USED TIME, SHE'S
USED HER TALENT TO PROVIDE THOSE
PRO BONO LEGAL SERVICES.
SHE'S VOLUNTEERED WITH THE TAMPA
BAY AREA LEGAL SERVICES
VOLUNTEER LAWYERS PROGRAM SINCE
1986.
DONATED 1,200 PRO BONO
NEED.
SHE WAS ELECTED TO THE BAY AREA
LEGAL SERVICES BOARD, AND SHE
YEARS.
AND SHE HAS SERVED AS PRESIDENT
OF THAT BOARD FOR THREE YEARS.
AND ROSEMARY HAS HANDLED SO MANY
CASES IN SO MANY AREAS OF THE
LAW, INCLUDING ELDER LAW,
HOUSING, AND JUVENILE DEPENDENCY
CASES.
AFTER OF PARTICULAR NOTE IS THE
SIGNIFICANCE OF HER WORK WITH
VICTIMS OF DOMESTIC VIOLENCE.
ROSEMARY WAS RECOGNIZED LAST
YEAR FOR HER WORK WITH THE
FLORIDA BAR'S PRESIDENTS PRO
BONO SERVICE AWARD.
AND THIS AWARD IS FURTHER
RECOGNITION OF HER COMMITMENT
AND DEDICATION TO MAKING SURE
EVERYONE IS WELL REPRESENTED
WHEN THEY HAVE TO GO THROUGH THE
LEGAL PROCESS.
SHE IS SUPPORTED BY HER FAMILY.
SHE'S SUPPORTED BY HER HUSBAND,
HER FELLOW LAWYER, SANDY
WINEBERG.
AGAIN, CONGRATULATIONS ROSEMARY
FOR RECEIVING THE TOBIAS SIMON
PRO BONO AWARD.
MADAM PRESIDENT, I YIELD THE
FLOOR, AND I WOULD SUGGEST THE
ABSENCE OF A QUORUM.
QUORUM CALL:
QUORUM CALL:
THE
SENATOR FROM IOWA.
STEIN --
WE'RE IN
A QUORUM CALL.
I'M SORRY.