Stop the Student Loan Interest Rate Hike Act of 2012--Motion to Proceed
Floor Speech
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EMISSIONS TRADING
Mr. THUNE. Madam President, in 2005 the European Union began their emissions trading scheme, which attempts to cap emissions of carbon dioxide from stationary sources within the EU.
Starting in 2012, civil aviation operators departing from or landing in Europe began to be included in this emissions scheme. Under this program, any airline, including non-European airlines flying into and out of Europe, will be required to pay for EU emissions allowances. This change comes at a time when EU allowance prices continue to decline to a little over 6 euros, and the commission is considering proposals to drive up the prices.
Allowances will be collected for the entirety of the flight, including portions in U.S. and international airspace. For example, this means a flight leaving from Los Angeles, CA, and flying to London would be taxed on the entirety of the flight, not just the fractional part of the flight that is over EU airspace. To put it another way, you would be taxed as if 100 percent of your flight was in EU airspace even though approximately only 7 percent of the flight actually was; that is, a flight originating in California here in the United States and flying to London.
Very simply, the unilateral imposition of such a scheme on the United States and other countries is arbitrary, unfair, and a violation of international law. Plus, it is being done without any guarantees for environmental improvements and at a huge cost to the aviation industry and constituents we serve here in this country.
According to the International Air Transport Association, the economic cost of this program for airlines is expected to be $1.3 billion in 2012. Let me repeat that: $1.3 billion in 2012. It is expected to reach as high as $3.5 billion by the year 2020. Those are revenues coming out of the airlines in this country that would be used to pay for this fee--this tax, if you will--imposed by the EU on U.S. airspace. By requiring commercial aviation to comply, the EU ETS also limits airline capital that could be available for other meaningful purposes, including their ability to invest in more fuel-efficient engines, alternative sources of fuel, and research and development.
No one in Congress is against the EU implementing ETS within their boundaries. However, I believe that any system that includes international and other non-EU airspace must be addressed through the International Civil Aviation Organization, the ICAO policies, of which the United States and 190 countries are members. In fact, under current ICAO standards, the aviation industry is targeted to achieve a 1.5-percent average annual improvement in carbon and fuel efficiency through 2020 and carbon-neutral growth from 2020 forward.
That is why the U.S. airline industry and those advocates in the industry also agree that a single global approach to greenhouse gas emissions set at the ICAO is preferred to the unilateral EU ETS system. Even the Obama administration testified before the House Committee on Transportation and Infrastructure in July of 2011 that an EU ETS is inconsistent with international aviation law. The State Department and the U.S. Department of Transportation are also pressing this issue with their counterparts in Europe and are considering all legal and policy options to prevent further application of EU ETS to U.S. air carriers.
In addition, other nations have voiced opposition. Those nations include Argentina, Brazil, China, India, Japan, the Republic of Korea, Mexico, the Russian Federation, and South Africa. In fact, China's Ambassador to the EU recently suggested that they will begin canceling Airbus orders if the EU ETS remains in place. Also, countries such as Italy, the Netherlands, France, Belgium, and Spain--all EU member states--are calling for the postponement of EU ETS out of concerns raised by the international community. Even European manufacturers and airlines such as Airbus, Air France, and British Airways have urged their respective governments to stop the escalating trade conflict between the EU and the rest of the world.
The EU has no right to play policeman and undermine the ongoing work at the ICAO. As a result of this action by the EU, on December 7, 2011, I introduced the European Union Emissions Trading Scheme Prohibition Act, S. 1956, which now has seven cosponsors, both Democrats and Republicans. The bill gives the Secretary of Transportation the authority to take the necessary steps to ensure that America's aviation operators are not penalized by any system unilaterally imposed by the EU. The bill also requires the Secretary of Transportation, the Administrator of the FAA, and other senior U.S. officials to use their authority to conduct international negotiations and take other actions necessary to ensure that U.S. operators are held harmless from the action of the European Union. The House of Representatives passed a similar bill by a voice vote on October 24, 2011. The U.S. commercial aviation community, including airlines and manufacturers, are all supportive of my bipartisan bill.
Next month, I am looking forward to the Commerce Committee hearing that is scheduled to take a closer look at this important issue and at my legislation.
Doing nothing is not an option. The unilateral imposition of the EU emissions trading scheme is a violation of international law and is hurting U.S. airlines, manufacturers, and consumers. Keep in mind that with near record oil prices, the EU ETS will add to the already high amount airlines and passengers pay for fuel.
We need to act now. We need to send a clear and unequivocal message and pass my bipartisan bill that addresses this scheme and protects the U.S. aviation industry and American sovereignty. I hope we will act on this legislation and make sure that this issue, once and for all, is put to rest and that the European Union is not able to assess a tax or a fee on American airlines operating in American airspace.
I yield the floor and suggest the absence of a quorum
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