Disapproving the Rule Submitted By the Department of Commerce Relating to ``Procedures Covering Suspension of Liquidation, Duties and Estimated Duties in Accord with Presidential Proclamation

Floor Speech

Mr. Speaker, I rise in strong opposition to this resolution. President Biden struck the right balance by instituting a temporary freeze on solar tariffs.

The Inflation Reduction Act has already led to the announcement of more than 45 gigawatts of domestic solar manufacturing capacity, and work has already begun.

In 2021, there were only 7 gigawatts of domestic manufacturing capacity, but it takes time to build out manufacturing capacities. It doesn't happen overnight.

This 2-year bridge gives the solar industry the time needed to reorient supply chains away from China to produce panels domestically.

That is why the President's position is supported by leaders who do the work: organized labor from IBEW, LIUNA, the carpenters, and the operating engineers, as well as a variety of other organizations in the environmental community and the National Taxpayers Union.

The solar industry itself strongly supports the administration's position. Kenneth Cooper, president of IBEW, characterized the President's action as a carefully crafted compromise that would provide market certainty to allow American companies to continue deploying solar panels.

H.J. Res. 39 is a backward-looking resolution, he said, looking to reopen a settled matter rather than create a solution.

It is not just organized labor. Members of the environmental community say that this resolution could destabilize the solar supply chains, harm ongoing deployment, threaten high-quality solar construction jobs, and impede our Nation's decarbonization goals.

The National Taxpayers Union opposes this proposal, saying that Congress should not, ``increase energy costs via the Congressional Review Act.''

Many of us in Congress have worked for years to achieve the policy victories contained in the Inflation Reduction Act.

We share the goal of pushing back against China and have supported legislation to do precisely that. Now is not the time to undermine our efforts in producing a robust supply chain in solar.

I encourage my colleagues to consider the overwhelming evidence and reject this legislation when it is called for a vote today.

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Mr. BLUMENAUER. Mr. Speaker, I respectfully disagree with the gentlewoman from West Virginia. This would not help American industry.

I include in the Record statements from nine American stakeholders in the industry who relied on Commerce's regulations to make significant business and economic decisions. Re. Please Oppose Retroactive Duties and Protect American Clean Energy Jobs and Investment with a ``No'' Vote on the Auxin CRA (H.J. Res. 39/S.J. Res. 15)

We are writing to respectfully ask that you oppose H.J. Res. 39/S.J. Res. 15. Enactment of this resolution would impose over $1 billion in retroactive duty liability, increase energy costs for consumers, cost thousands of American jobs, and hamstring efforts to reduce greenhouse gas emissions.

Last year, a single company filed anti-circumvention petitions with the Department of Commerce (Commerce). The threat of duties ranging from 50 percent-250 percent on solar panels and cells from Malaysia, Vietnam, Thailand, and Cambodia called for in the petitions abruptly froze solar supply chains. A significant number of domestic solar projects experienced cancellations or delays as a result.

To address this disruption, after Commerce accepted the petitions and initiated a set of investigations, President Biden issued an emergency declaration that included a temporary 2-year pause on potential duties arising from the investigations. This pause allowed planned solar projects to move forward while the investigations proceeded.

American stakeholders subsequently relied on Commerce's regulations to make significant business and economic decisions. Nullifying Commerce's rulemaking as provided for in H.J. Res. 39/S.J. Res. 15 woul1enalize companies, acting in accordance with the law, by imposing large (up to 254 percent), unanticipated retroactive duty liability for these stakeholders--back to April 1, 2022. Going back on this federal commitment would create a chilling effect on American business, setting a terrible precedent that undermines America's competitiveness in the global marketplace.

Passing H.J. Res 39/S.J. Res 15 would also stall or cancel planned solar projects, eliminate 30,000 jobs, including 4,000 manufacturing jobs, and $4.2 billion of investment in domestic solar projects. 4GW of planned solar projects representing roughly 14 percent of the industry's anticipated deployment in 2023 would be cancelled. This in turn would increase CO2 emissions by 24 million metric tons.

American businesses need certainty and a bridge to domestic manufacturing. Right now, only about one-third of U.S. demand for solar panels (including both crystalline silicon and thin film photovoltaic panels) can be met with domestic production, and domestic manufacturers are sold out for the next 2-3 years. It is our preference to source solar panels domestically, and we are heartened by the rapid expansion of domestic solar manufacturing that is currently occurring. However, ramping up this production capacity across the solar supply chain will take time, and the temporary 2-year duty pause provides a necessary bridge to the point where domestic production capacity is more capable of meeting demand.

For these reasons, and to avoid needless disruption in the solar marketplace, we respectfully ask that you oppose H.J. Res. 39/S.J. Res. 15. Thank you in advance for your consideration. Sincerely,

Solar Energy Industries Association

American Clean Power

American Council on Renewable Energy

Edison Electric Institute

E2

Silicon Valley Leadership Group

Clean Energy Buyers Association

Advanced Energy United

Coalition for Community Solar Access.

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Mr. BLUMENAUER. Mr. Speaker, they say nullifying Commerce's rulemaking as provided for in H.J. Res. 39 would penalize companies acting in accordance with the law by imposing large, up to 254 percent, unanticipated retroactive duty liability for these stakeholders going back to April 1, 2022.

Going back on this Federal commitment would create a chilling effect on American business, setting a terrible precedent that undermines our competitiveness in the marketplace.

Mr. Speaker, I include in the Record a statement from Terry O'Sullivan, the general president of LIUNA, the Laborers' International Union of North America.

His statement is on behalf of a half million members of the Laborers' International Union in strong opposition to this proposal: ``This CRA resolution comes at a time when our Nation is looking to bolster its wind and solar industry, steering away from more harmful energy sources. Our union has never seen this much solar construction work, and future construction already on the books, within the renewable energy industry, and it is now all at risk if the CRA is passed.'' LiUNA!, Washington, DC, April 19, 2023 Hon. Jason Smith, Chairman, House Committee on Ways and Means, Washington, DC. Hon. Richard Neal, Ranking Member, House Committee on Ways and Means, Washington, DC.

Dear Chairman Smith and Ranking Member Neal: On behalf of the 500,000 members of the Laborers' International Union of North America (LIUNA), I write in opposition to the Congressional Review Act (CRA) resolution regarding solar panel manufacturing. This resolution will have a harmful and disruptive impact on our members' jobs within the solar industry.

Our nation's energy industry directly employs tens of thousands of LIUNA members across the country. These jobs span across all sectors of energy production including, natural gas, nuclear, hydro, and renewables. By way of the Inflation Reduction Act (IRA), The Biden Administration has brought good-paying union construction jobs into the renewable industry. Because of this, our members have seen a significant and rapid growth within the renewables sector, in particular the solar industry. These jobs are finally good jobs, with family-supporting wages and benefits.

Repealing President Biden's moratorium, however, will bring several solar construction sites to a halt, leaving our members without a paycheck. We recognize that the Department of Commerce's investigation found some solar panel producers committing trade violations. Of course, in time, this will need to be addressed.

This CRA resolution comes at a time when our nation is looking to bolster its wind and solar industry, steering away from more harmful energy sources. Our union has never seen this much solar construction work, and future construction work already on the books, within the renewable energy industry, and it is now all at risk if the CRA is passed.

I urge you to oppose the Congressional Review Act being marked up today in committee.

With kind regards, I am, Sincerely yours, Terry O'Sullivan, General President.

Mr. Speaker, I include in the Record a statement from James T. Callahan, general president of the International Union of Operating Engineers, and Douglas J. McCarron, general president of the United Brotherhood of Carpenters and Joiners of America.

The statement indicates, among other things: ``Repealing President Biden's proclamation will result in retroactive duties and tariffs that would jeopardize 30,000 construction and 4,000 manufacturing jobs. . . . We are not prepared to stand by and let some partisan dispute eliminate Operating Engineers' jobs and slow the deployment of clean energy.''

For immediate release: April 19, 2023. Carpenters and Operating Engineers Unions Oppose Legislation That Eliminates Thousands of Jobs

Washington, DC.--The following statement was issued today by James T. Callahan, General President of the International Union of Operating Engineers, and Douglas J. McCarron, General President of the United Brotherhood of Carpenters and Joiners of America, regarding their unions' opposition to legislation that will eliminate thousands of American jobs:

Last year, the Department of Commerce opened a circumvention inquiry, alleging that four Southeast Asian countries were circumventing tariffs and duties on solar cells and modules from the People's Republic of China. The inquiry generated massive uncertainty in the domestic solar market by suggesting possible retroactive tariffs as high as 250 percent. This threat resulted in a drop of 20 percent fewer solar construction and installation jobs across the United States.

President Biden took action to preserve these jobs, issuing Emergency Proclamation 10414 to prevent tariffs on any solar module and cell imports from the four countries until June 2024. House Joint Resolution 39 will repeal the President's Proclamation and eliminate thousands of jobs in the American solar industry.

``Repealing President Biden's Proclamation will result in retroactive duties and tariffs that would jeopardize 30,000 construction and 4,000 manufacturing jobs;'' said James T. Callahan, General President of the International Union of Operating Engineers. ``We are not prepared to stand by and let some partisan dispute eliminate Operating Engineers' jobs and slow the deployment of clean energy:''

``President Biden's Proclamation saves Carpenters' jobs and smooths the development of the domestic solar manufacturing industry. Today, we're seeing the American manufacturing sector respond to incentives in the Inflation Reduction Act and develop homegrown solar modules,'' said Carpenters Union General President Douglas J. McCarron. ``Now is not the time to disrupt the solar industry and layoff thousands of union workers just as we're getting a foothold in the burgeoning solar business.''

The International Union of Operating Engineers and United Brotherhood of Carpenters and Joiners urge Congress and members of the Ways and Means Committee to vote against House Joint Resolution 39, which will repeal the administration's Proclamation and eliminate thousands of union jobs, slow the deployment of renewable energy, and generate unnecessary greenhouse gases.

Mr. Speaker, the gentlewoman from Staten Island has it backwards. The fact is that there is a process underway to review the challenges of the circumvention. There will be a report within the next year, but what the President did was put a pause on that to allow American industry to reorient and to catch up because otherwise they do not have the capacity.

I quote a strong representative of working men and women, the general president of the United Brotherhood of Carpenters and Joiners of America, Douglas McCarron: ``President Biden's proclamation saves Carpenters' jobs and smooths the development of the domestic solar manufacturing industry.

Mr. Speaker, there was a reference about false choices. Well, it is a false choice that we adhere to our interests and goals at the expense of throwing out of work thousands of American union workers and disrupting opportunities to smooth the supply chain.

Mr. Speaker, I include in the Record a statement from 10 leading environmental organizations that says: ``While the Commerce Department investigation of tariff circumvention was being conducted, the administration sought to provide enough lead time for domestic solar panel manufacturing and supply chains to rapidly expand operations to meet demand, bring certainty on the prices of imported panels to solar companies deploying clean energy, and job stability for those workers installing panels.'' April 17, 2023.

Dear Member of Congress: The undersigned groups write to express our opposition to the Congressional Review Act (CRA) resolutions of disapproval (H.J. Res 39 and S.J. Res 15) aimed at reversing President Biden's temporary suspension of tariffs on certain solar cells and panels from manufacturers in Cambodia, Malaysia, Thailand and Vietnam. Passage of these resolutions could destabilize solar supply chains, harm ongoing deployment of large scale solar projects, threaten high-quality solar construction jobs, and impede our nation's decarbonization goals.

Proclamation 10414, issued by President Biden in June 2022, gave the U.S. Department of Commerce authority to issue regulations suspending new solar tariffs until June 2024 while the department proceeded with its investigation into claims that facilities in the Southeastern Asian countries were circumventing existing tariffs on Chinese solar companies. The Commerce Department subsequently issued rules implementing the delay, and H.J. Res 39 and S.J. Res 15 would nullify that rulemaking.

Our organizations support both a shift to cleaner and fairer supply chains for clean energy, as well as the rapid deployment of clean energy in order to meet the urgency of the climate crisis. Thanks in part to the expansive investments in clean energy manufacturing and high quality job standards included in the Inflation Reduction Act (IRA), we are now well positioned to achieve both of these goals. The administration's strong implementation of the IRA's domestic content provisions is a critical piece to further drive manufacturing buildout in the U.S. However, passage of these CRA resolutions would undermine the ability of the U.S. solar industry to succeed in accelerating the shift to more clean energy on the power grid.

The President's decision to pause tariffs for two years is providing U.S. businesses with much-needed certainty after several months of project cancellations and delays last year due to the Commerce Department's investigation, which caused solar deployment to decline by 30 percent--10 gigawatts below expectations.

We have already seen more than $13 billion in domestic solar manufacturing announcements since the passage of the IRA. While more buildout is needed, this demonstrates that domestic investment is headed in the right direction. Additional panel shortages, as we saw during the Commerce Department investigation, would once again debilitate U.S. utility-scale solar projects and jobs. And if a CRA resolution rolls back the President's two-year tariff pause, then debilitating shortages and lost investment capital could begin this year.

Beyond the harm to solar deployments across the U.S., there is the larger issue of the CRA being the wrong tool for Congressional oversight. Congress has always had the power to create, modify or eliminate rules using the regular legislative process. The CRA provides a more extreme path by repealing a rule in its entirety and preventing an agency from issuing a new rule that is ``substantially the same,'' an undefined phrase that can essentially freeze the regulatory process.

In this instance, while the Commerce Department investigation of tariff circumvention was being conducted, the administration sought to provide enough lead time for domestic solar panel manufacturing and supply chains to rapidly expand operations to meet demand, bring certainty on the prices of imported panels to the solar companies deploying clean energy, and job stability for those workers installing panels. Passing these resolutions could prevent future administrations from being able to find appropriate solutions to other tariffs and trade challenges.

For these reasons, the undersigned organizations urge you to vote NO on H.J. Res 39 and S.J. Res 15. Thank you for your attention to this matter and for considering our views. Sincerely,

League of Conservation Voters, Natural Resources Defense Council, Sierra Club, Climate Action Campaign, Environmental Law and Policy Center, Clean Energy for America, Chesapeake Climate Action Network, Earthjustice, Environmental Defense Fund, Union of Concerned Scientists.

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Mr. BLUMENAUER. Mr. Speaker, somebody listening from the sidelines would think that there is a great deal of disagreement between my honorable friend from Missouri and me. That is not the case. We share many of the same goals, as he knows, with legislation that I am proposing to try to rein in some of the egregious abuses of the Chinese.

What we are disagreeing about today is to undercut a process that is working with the Department of Commerce for accountability. The goal here is for another year to be able to work the process through. I have no doubt that we are going to end up essentially in the same place but without compromising the ability of organized labor and workers to be able to have jobs without undercutting the opportunity for the businesses to be able to cope with these changed circumstances and to be able to develop a supply chain, which you cannot do overnight. But over the course of the next year or so, we can make significant progress. That is our goal. We don't think that we have to punish American companies and American workers to achieve that goal.

I am convinced that over the course of the next year, we will be largely in the same place after that process is finished with the Department of Commerce. In the meantime, we are not going to have American workers and businesses pay the price for this, frankly, unfortunate demonstration of political messaging. We want to reach the same goal. We don't want to punish workers and industry while we get there.

Having this additional year requested by the Biden administration that would be achieved by sustaining his veto is a reasonable outcome and I think gets us where we want to be.

Mr. Speaker, I respectfully suggest that we reject this resolution, allow the process to work, do not penalize American workers, and strengthen supply chains so that a year and a half from now, we can, in fact, be in the same place, having a robust domestic industry and enforcing our goals and objectives.

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