by DEVIN NUNES
Originally printed in the Washington Examiner.
As tension and uncertainty in the Middle East rises and revolutions spread in the Middle East and North Africa, Americans are once again confronting the financial and national security consequences of our dependence on foreign oil.
Over the years, the American people have been promised “energy independence” by Democrats and Republicans from different Administrations and Congresses. Whether the mantra is “drill baby drill” or a green energy revolution, we have all been consistently disappointed by the outcome.
Nothing done by our government in the past several decades has actually helped to achieve the goal of energy independence, or for that matter, kept energy prices affordable for American families. Quite the reverse is true. We are more dependent today than ever before and far more economically vulnerable than at any point in our nation’s history. Today, I and others will introduce legislation that will finally deliver on the energy security promises made by leaders past and present – promises that began during the 1973 oil embargo, our nation’s first call to action.
The plan, known as A Roadmap for America’s Energy Future, recognizes the importance of oil, gas, coal, and oil shale to the American consumer, as well as our nation’s economy. It opens up for exploration and development the vast resources known to exist throughout U.S. territories on land and sea. This unlocked energy will fuel job growth and it will assure Americans access to stable and affordable energy.
At the same time, the plan recognizes that dependence on any one fuel source is dangerous, particularly a finite resource. As such, the Energy Roadmap will make the necessary investments to transition our economy to renewable and advanced energy alternatives over time. This is achieved at no expense to the taxpayer. Furthermore, unlike current subsidies and tax credits, new forms of energy will be available to Americans on a cost competitive basis.
The Energy Roadmap accomplishes these goals by depositing lease and royalty revenue associated with fossil fuel development into a renewable energy trust fund. Those dollars are then made available to energy producers through a reverse auction – ending the government’s current process of selecting winners and losers.
This market-based way of providing federal assistance will ensure the cheapest and most efficient technology thrives. It will also open up the alternative energy market to greater innovation and competition, a sharp contrast to the existing system of subsidies and support which are subject to the influence of lobbyists and activists through political cronyism.
Another component of the Energy Roadmap establishes a mandate to site 200 nuclear reactors by 2040. New streamlined regulations and a system to manage waste will help drive private sector investments in these facilities, which today are mired in red tape, lawsuits and the liability associated with the storage of used fuel. Nuclear power is essential to achieving an abundant and affordable supply of electricity to fuel America’s economic growth and will provide the base load power needed to allow significant growth in next generation electric vehicles.
While having the desire to become a renewable society is reasonable, that should not prevent us from using traditional fuels to keep the economic engine running in the interim. Congress should pass A Roadmap for America’s Energy Future so that our government can finally live up to the commitments it has made to the American people to deliver affordable energy now and for the future.
Thursday, March 3, 2011
Saturday, February 19, 2011
Aid and Comfort to the Enemy?
by DEVIN NUNES
Special Interests Line Up Against San Joaquin Valley Communities
Early Saturday morning, the House passed a 2011 federal spending bill which contained provisions to protect the water supplies of San Joaquin Valley communities. The language has two parts. One component will ban funding to implement the flawed San Joaquin River Settlement and the other will keep the Delta pumps operating for the remainder of the year.Special Interests Line Up Against San Joaquin Valley Communities
You can read the water language in the bill by clicking here.
You can read my Congressional Record Statement explaining the water language by clicking here.
The fate of these important provisions in the Senate is uncertain. Even prior to House passage, Senator Dianne Feinstein (see here) and the Obama Administration were in full attack mode. Feinstein, who is trying to get the Delta declared a National Heritage Area, has for years fought efforts to provide relief to our communities (see her on the Senate Floor). To compound our problems, the Obama Administration is preparing to roll out a new government bureaucracy to oversee the left’s Delta agenda (click here).
Several groups claiming to represent the interests of farmers are working to block House Republican efforts in the Senate. They include the Friant Water Authority, which has become an apologist for the Natural Resources Defense Council (NRDC) and its extreme environmental politics. Another is a large corporate farming interest allied with Senator Dianne Feinstein, Paramount Farming Company. Despite efforts to cloak their opposition in well crafted talking points, environmental politics and not the interests of San Joaquin Valley residents are responsible for their views.
You can read the Friant Water Authority and Paramount Farming Company letters here.
As House Republicans work to end the government-imposed drought, liberals and their allies in the environmental movement are stepping up their attacks. It is unacceptable for groups claiming to represent farmers and rural San Joaquin Valley communities to provide cover to politicians who are responsible for our region’s water shortages. You can be certain that I will continue to call them as I see them – exposing the truth behind who is helping and who is hurting efforts to restore our region’s access to reliable water supplies.
Thursday, February 17, 2011
Valley Republicans Seek Options for High Speed Rail Money
by DEVIN NUNES
Today, I joined my colleagues in the House, Kevin McCarthy (CA-22) and Jeff Denham (CA-19), in the introduction of legislation that will allow the State of California to redirect federal high speed rail funding to finance long overdue and urgently needed road repairs along the State Route 99 corridor.
If state and local leaders choose to support this legislation, they will have sufficient funding to establish a six-lane freeway from Sacramento to Bakersfield while vastly improving the heavily congested corridor’s safety and enhancing the region’s air quality.
The economic and environmental benefits of SR 99 improvements are strongly contrasted by the uncertainty of California’s now infamous bullet train, which has been described by the national press as “the train to nowhere.” Providing the state the option to redirect high speed rail funding to SR 99 will give state and local leaders the opportunity to step-back from what is likely to become a bottomless pit of spending.
At this time, state leaders admit that California is poised to spend $58 billion – using ultra conservative state estimates – to build the phantom bullet train. However, the actual price tag is likely to exceed the combined federal highway spending in California for the 50 years from 1957-2007 (if it is ever completed). In addition, a host of independent watchdog groups, including the State Auditor, have raised serious questions about the project and question whether it is even viable. [State Auditor's Report, Legislative Analyst's Report, Transportation Studies at the University of California, Berkeley]
Meanwhile, nearly everyone agrees that the State Route 99 corridor – one of California’s most seriously congested and under-funded highways – is in need of major infrastructure improvements. For this reason, I and other Valley Republicans believe California should have the ability to transfer a portion or the entirety of the federal high-speed rail funds to improve Highway 99. [see bill text here]
Today, I joined my colleagues in the House, Kevin McCarthy (CA-22) and Jeff Denham (CA-19), in the introduction of legislation that will allow the State of California to redirect federal high speed rail funding to finance long overdue and urgently needed road repairs along the State Route 99 corridor.
If state and local leaders choose to support this legislation, they will have sufficient funding to establish a six-lane freeway from Sacramento to Bakersfield while vastly improving the heavily congested corridor’s safety and enhancing the region’s air quality.
The economic and environmental benefits of SR 99 improvements are strongly contrasted by the uncertainty of California’s now infamous bullet train, which has been described by the national press as “the train to nowhere.” Providing the state the option to redirect high speed rail funding to SR 99 will give state and local leaders the opportunity to step-back from what is likely to become a bottomless pit of spending.
At this time, state leaders admit that California is poised to spend $58 billion – using ultra conservative state estimates – to build the phantom bullet train. However, the actual price tag is likely to exceed the combined federal highway spending in California for the 50 years from 1957-2007 (if it is ever completed). In addition, a host of independent watchdog groups, including the State Auditor, have raised serious questions about the project and question whether it is even viable. [State Auditor's Report, Legislative Analyst's Report, Transportation Studies at the University of California, Berkeley]
Meanwhile, nearly everyone agrees that the State Route 99 corridor – one of California’s most seriously congested and under-funded highways – is in need of major infrastructure improvements. For this reason, I and other Valley Republicans believe California should have the ability to transfer a portion or the entirety of the federal high-speed rail funds to improve Highway 99. [see bill text here]
Monday, February 14, 2011
Water Wars Update
by DEVIN NUNES
This week, the House will vote on a federal spending bill – the 2011 Continuing Resolution (CR). This CR, which funds the operation of the federal government for the current fiscal year, is necessary because last year Democratic leaders failed to pass a budget.
While much of the public attention is appropriately focused on efforts to reduce spending, there are also important provisions in the CR that relate to our communities in the San Joaquin Valley.
Specifically, thanks to the support of Republican leaders, I was able to get language included in the CR that will restore and protect our water supplies (see bill text).
The language included in the base bill of the 2011 Continuing Resolution will prevent any federal funds from being used to implement the biological decisions responsible for reduced Delta pumping – effectively guaranteeing normal pump operations for 2011.
Furthermore, it will ban federal funding for the restoration of the San Joaquin River during the 2011 fiscal year, the first step in Republican efforts to replace the flawed billion dollar salmon run. It also demonstrates Congressional intent to suspend restoration flows for 2011 thereby keeping the water on the east side of the valley.
In place of the existing restoration plan, which spends $21 million per salmon, I am working with House leaders to establish both an environmentally and economically responsible San Joaquin River restoration. This will include a year-round, live river on the San Joaquin but will also ensure a robust east side agriculture economy.
However, despite the inclusion of this important language in the CR, there are a number of obstacles ahead. There is no question that liberal leaders will offer amendments to strip the San Joaquin valley water language from the CR. That is why it is essential for California Democrats to unite in our defense. Should we succeed, the pressure will be on our Senators. Will they choose two inch bait fish and the junk science now rejected by the federal court or will they choose valley workers and their families?
This week, the House will vote on a federal spending bill – the 2011 Continuing Resolution (CR). This CR, which funds the operation of the federal government for the current fiscal year, is necessary because last year Democratic leaders failed to pass a budget.
While much of the public attention is appropriately focused on efforts to reduce spending, there are also important provisions in the CR that relate to our communities in the San Joaquin Valley.
Specifically, thanks to the support of Republican leaders, I was able to get language included in the CR that will restore and protect our water supplies (see bill text).
The language included in the base bill of the 2011 Continuing Resolution will prevent any federal funds from being used to implement the biological decisions responsible for reduced Delta pumping – effectively guaranteeing normal pump operations for 2011.
Furthermore, it will ban federal funding for the restoration of the San Joaquin River during the 2011 fiscal year, the first step in Republican efforts to replace the flawed billion dollar salmon run. It also demonstrates Congressional intent to suspend restoration flows for 2011 thereby keeping the water on the east side of the valley.
In place of the existing restoration plan, which spends $21 million per salmon, I am working with House leaders to establish both an environmentally and economically responsible San Joaquin River restoration. This will include a year-round, live river on the San Joaquin but will also ensure a robust east side agriculture economy.
However, despite the inclusion of this important language in the CR, there are a number of obstacles ahead. There is no question that liberal leaders will offer amendments to strip the San Joaquin valley water language from the CR. That is why it is essential for California Democrats to unite in our defense. Should we succeed, the pressure will be on our Senators. Will they choose two inch bait fish and the junk science now rejected by the federal court or will they choose valley workers and their families?
Saturday, January 29, 2011
Public Pension Hygiene Act
The first reform step is exposing the true size of the funding hole.
January 22, 2011
by THE WALL STREET JOURNAL
We're so accustomed to misnamed legislation like the Employee Free Choice Act (card check) that it's hard to believe that a welcome proposal called the Public Employee Pension Transparency Act describes what it actually purports to do. To wit, prohibit public pension bailouts by the federal government and expose the $3.5 trillion of unfunded public pension liabilities that local and state governments have obscured.
Most state and local governments currently use their own estimated rate of return on their investments to discount their liabilities. By projecting unrealistically high rates of return, states minimize their unfunded liabilities, at least on paper. Lower unfunded liabilities in turn allow them to reduce how much they and public employees must contribute to their pension funds. Inflated investment assumptions are one reason that public pension funds are unfunded to the tune of $3.5 trillion.
Public pensions typically assume an 8% annual return on average, but over the past five years state pension funds with more than $5 billion in assets have earned only 4.5%. Taxpayers must make up the difference between what the funds earn and what they need to pay retirees. For Californians that is roughly $5 billion this year.
Local taxpayers are already seeing their services whacked and taxes raised to fill these pension holes. University of California students will have to pony up 8% more next year for tuition to offset an expected $500 million in state budget cuts. Illinois residents will soon pay 67% more in income taxes, but taxpayers won't feel the full brunt for another decade when the funds begin running out of money. When Chicago's pension fund goes dry around 2019, over half of the city's revenue will be dedicated to pensions.
In the 1950s and 1960s, many private employers obscured their liabilities the way governments are doing today, though they didn't have a public backstop. Many funds went broke. In 1974 Congress established minimum funding requirements and penalized companies that underfunded pensions. The law also required companies to report and discount their liabilities using a more conservative rate of return.
These changes exploded liabilities and prompted many companies to switch from defined-benefit plans to defined-contribution plans like 401(k)s. While a majority of private workers now have defined-contribution plans, defined-benefit plans remain the norm in government.
Enter the Public Employee Pension Transparency Act, which is sponsored by House Republicans Devin Nunes and Darrell Issa of California and Wisconsin's Paul Ryan. Their bill would encourage governments to switch to defined-contribution plans by revealing the true magnitude of their unfunded liabilities. States and municipalities would have to report their liabilities to the U.S. Treasury using their own rosy investment forecasts as well as a more realistic Treasury bond rate (to be determined by a formula).
This data would make clear how much taxpayers potentially owe and increase pressure on lawmakers to fix their plans. For instance, Illinois estimated in 2009 that it had a roughly $85 billion unfunded liability. Using a Treasury discount rate, that unfunded liability balloons to $167 billion.
Out of respect for state sovereignty, the federal government shouldn't and can't tell local governments how to run or fund their pensions. But the bill doesn't do so and it also doesn't force states to fund their plans using a lower discount rate. States don't even have to comply with the law, though they would forego their ability to sell federally subsidized, tax-exempt bonds if they don't.
The bill may not persuade states like Illinois and California to revamp their pensions, but it will reveal how broken they are—and that's a start.
Printed in the Wall Street Journal on January 22, 2011.
January 22, 2011
by THE WALL STREET JOURNAL
We're so accustomed to misnamed legislation like the Employee Free Choice Act (card check) that it's hard to believe that a welcome proposal called the Public Employee Pension Transparency Act describes what it actually purports to do. To wit, prohibit public pension bailouts by the federal government and expose the $3.5 trillion of unfunded public pension liabilities that local and state governments have obscured.
Most state and local governments currently use their own estimated rate of return on their investments to discount their liabilities. By projecting unrealistically high rates of return, states minimize their unfunded liabilities, at least on paper. Lower unfunded liabilities in turn allow them to reduce how much they and public employees must contribute to their pension funds. Inflated investment assumptions are one reason that public pension funds are unfunded to the tune of $3.5 trillion.
Public pensions typically assume an 8% annual return on average, but over the past five years state pension funds with more than $5 billion in assets have earned only 4.5%. Taxpayers must make up the difference between what the funds earn and what they need to pay retirees. For Californians that is roughly $5 billion this year.
Local taxpayers are already seeing their services whacked and taxes raised to fill these pension holes. University of California students will have to pony up 8% more next year for tuition to offset an expected $500 million in state budget cuts. Illinois residents will soon pay 67% more in income taxes, but taxpayers won't feel the full brunt for another decade when the funds begin running out of money. When Chicago's pension fund goes dry around 2019, over half of the city's revenue will be dedicated to pensions.
In the 1950s and 1960s, many private employers obscured their liabilities the way governments are doing today, though they didn't have a public backstop. Many funds went broke. In 1974 Congress established minimum funding requirements and penalized companies that underfunded pensions. The law also required companies to report and discount their liabilities using a more conservative rate of return.
These changes exploded liabilities and prompted many companies to switch from defined-benefit plans to defined-contribution plans like 401(k)s. While a majority of private workers now have defined-contribution plans, defined-benefit plans remain the norm in government.
Enter the Public Employee Pension Transparency Act, which is sponsored by House Republicans Devin Nunes and Darrell Issa of California and Wisconsin's Paul Ryan. Their bill would encourage governments to switch to defined-contribution plans by revealing the true magnitude of their unfunded liabilities. States and municipalities would have to report their liabilities to the U.S. Treasury using their own rosy investment forecasts as well as a more realistic Treasury bond rate (to be determined by a formula).
This data would make clear how much taxpayers potentially owe and increase pressure on lawmakers to fix their plans. For instance, Illinois estimated in 2009 that it had a roughly $85 billion unfunded liability. Using a Treasury discount rate, that unfunded liability balloons to $167 billion.
Out of respect for state sovereignty, the federal government shouldn't and can't tell local governments how to run or fund their pensions. But the bill doesn't do so and it also doesn't force states to fund their plans using a lower discount rate. States don't even have to comply with the law, though they would forego their ability to sell federally subsidized, tax-exempt bonds if they don't.
The bill may not persuade states like Illinois and California to revamp their pensions, but it will reveal how broken they are—and that's a start.
Printed in the Wall Street Journal on January 22, 2011.
Thursday, January 27, 2011
Crying Over Unspilled Milk
Land Of Milk and Regulation
Preventing the next dairy farm oil slick
by THE WALL STREET JOURNAL
President Obamasays he wants to purge regulations that are "just plain dumb," likehis humorous State of the Union bit about salmon. So perhaps he should review anew rule that is supposed to prevent oil spills akin to the Gulf Coastdisaster—at the nation's dairy farms.
Two weeks ago,the Environmental Protection Agency finalized a rule that subjects dairyproducers to the Spill Prevention, Control and Countermeasure program, whichwas created in 1970 to prevent oil discharges in navigable waters or nearshorelines. Naturally, it usually applies to oil and natural gas outfits. Butthe EPA has discovered that milk contains "a percentage of animal fat,which is a non-petroleum oil," as the agency put it in the FederalRegister.
In other words,the EPA thinks the next blowout may happen in rural Vermont or Wisconsin. Otherdangerous pollution risks that somehow haven't made it onto the EPA docketinclude leaks from maple sugar taps and the vapors at Badger State breweries.
The EPA rulerequires farms—as well as places that make cheese, butter, yogurt, ice creamand the like—to prepare and implement an emergency management plan in the eventof a milk catastrophe. Among dozens of requirements, farmers must train firstresponders in cleanup protocol and build "containment facilities"such as dikes or berms to mitigate offshore dairy slicks.
These plans mustbe in place by November, and the U.S. Department of Agriculture is even runninga $3 million program "to help farmers and ranchers comply with on-farm oilspill regulations." You cannot make this stuff up.
The final ruleis actually more lenient than the one the EPA originally proposed. The agencytried to claim jurisdiction over the design specifications of "milkcontainers and associated piping and appurtenances," until the industrypointed out that such equipment was already overseen by the Food and DrugAdministration, the USDA and state inspectors. The EPA conceded, "Whilethese measures are not specifically intended for oil spill prevention, webelieve they may prevent discharges of oil in quantities that areharmful."
We appreciateMr. Obama's call for more regulatory reason, but it would be more credible ifone of his key agencies wasn't literally crying over unspilled milk.
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