President Biden 'needs to declare a climate emergency': Rep. Ro Khanna

Rep. Ro Khanna (D-CA) joins Yahoo Finance Live to discuss the urgency of the climate crisis, new climate change initiatives from the Biden administration, the CHIPS Act, and the odds of President Biden seeking a second term.

Video Transcript

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JOE BIDEN: Climate change is literally an existential threat to our nation and to the world. So my message today is this. Since Congress is not acting as it should-- and these guys here are, but we're not getting many Republican votes. This is an emergency, an emergency. And I will, I will look at it that way.

I said last week, and I'll say it again loud and clear, as president, I'll use my executive powers to combat the climate crisis in the absence of congressional action. That's why today I'm making the largest investment ever, $2.3 billion to help communities across the country build infrastructure that's designed to withstand the full range of disasters we've been seeing up to today-- extreme heat, drought, flooding, hurricanes, tornadoes.

SEANA SMITH: That was President Biden just moments ago at a now closed Brayton Point power plant in Massachusetts, which is now being turned into the Commonwealth's first offshore wind power facility. Joining us now with more on this, also the latest out of Washington, we want to bring in California Congressman Ro Khanna. Representative, it's great to see you. Thanks so much for joining us this afternoon.

RO KHANNA: Thanks for having me on.

SEANA SMITH: So we just heard from President Biden laying out new climate change programs. But he did stop short of declaring a national emergency on climate, although leaving on the table that he, quote, "will use emergency power if he needs to." I know climate change and climate policy is a priority of yours. What's your reaction to what we just heard from the president?

RO KHANNA: He needs to declare a climate emergency. And I'm glad that he is highlighting what he's doing. But we need to do more. The declaration of a climate emergency will give him the authority to put more funds into solar, wind, renewables. It will give him the authority to stop the permitting for projects that are going to emit tremendous amounts of CO2. So he needs to make that declaration.

DAVE BRIGGS: Is this the right time to declare a climate emergency, given the all-time high in gas prices? I know they are down 30 plus days. But that is breaking the backs of Americans.

RO KHANNA: It is because there are other things we can do to lower gas prices. Three things we can do is ban the export of oil and gas, except to our allies. We could have an oil windfall profits tax and put that money back in the pockets of working class folks. And I've suggested months ago that the federal government should be buying at the dip and then selling back at a subsidized price. If the president took those actions, we could lower the price of gas.

Separately, he needs to take a bold climate action. And a lot of that is just funding solar and wind, which he'll be able to do if he has the climate emergency. Remember, Trump declared the emergency on the border. I certainly think climate is an emergency.

RACHELLE AKUFFO: And what would you say to the argument that, say, funding should go towards drilling more, as people need more oil, they need more gasoline right now, versus, say, investing in climate, which, perhaps, people think that they might not see the benefits of right away?

RO KHANNA: Well, the drilling takes years. So that's not going to do anything to bring down prices right away. And if you really want to bring down price right away, I think doing the things I suggested-- stop exporting it. By the way, if we're drilling and just exporting it, it's not going to help the US price either. So stop the exports and have the federal government put more out through the Strategic Petroleum Reserve. They could buy more into it at the dip and put more of that out. That would bring down the price.

SEANA SMITH: And Representative, I know gas prices is a huge part here when we're talking about inflation. But I want to bring up a "New York Times" op-ed that you wrote in early June. And in that, one of the first lines you wrote was that I support the president's efforts, but we need a bolder vision and faster action. You just laid out a few things that can be done to lower gas prices. But more broadly speaking, has the president gotten more aggressive from your view? And what do you and some of your constituents want to hear from the president in order to lower inflation?

RO KHANNA: Well, he has gotten more aggressive, and we could do more. For example, the baby formula that he has importing into the country. I mean, that has only been about one week of baby formula supply. There's still a shortage. Why can't we just say if it's safe for babies in Europe, it's safe for babies here? Why can't we have the federal government actually purchasing that baby formula to bring it here? Why not fund the manufacturing of it other than in the plant that has had all the problems?

On food, we could be purchasing the food and supplying it or putting it-- selling it back to Americans at a cheap price. I just think we have to be out of the box bolder and recognize that, right now, the central thing on people's minds is food prices, gas prices, shortages of things like baby formula. On airlines, we can be doing more. I mean, the fact that airlines are canceling and that we haven't taken any steps to penalize them is wrong.

DAVE BRIGGS: What should we do to penalize them? There have been some theories floated out there, including the likes of Bernie Sanders that suggest fines, congressman-- and I'm sure you've seen them-- that would, quite frankly, hamper, if not bankrupt, some of our airlines.

RO KHANNA: Well, I'm not going to suggest a number, but we should do what President Obama did. I mean, President Obama said very clearly that if there were certain things that were not met, then there would be consequences. And penalties and fines were part of that. But you can have the fines and penalties at a level that isn't going to bankrupt them. But right now, you've got a Department of Transportation that hasn't done anything. And flights are being canceled.

And, you know, I'm actually talking to constituents who are having to stay seven, eight hours at the airport. And it's not good enough to just tell them, OK, here's how you get a refund for that. What we need to do is make it clear to the airlines that that's unacceptable. Again, this never happened under President Obama's eight years. He had a more aggressive Department of Transportation that did have consequences.

RACHELLE AKUFFO: And I want to shift gears now and talk about the CHIPS Act. Obviously, clearly in focus, and we saw that became more in focus during the pandemic as supply chains were disrupted. Talk about that. What's at stake here if this doesn't get passed? And not just for US manufacturing, but also the jobs that could potentially be attached to them.

RO KHANNA: This is one of the biggest investments in the new industrialization of America. I mean, there are $20 billion that is going to be invested in Columbus, Ohio, 7,000 jobs, and many more to come. Jobs not just for software engineers, jobs for pipefitters, for construction workers, for manufacturing workers, many that don't require a college degree.

I want semiconductors made in the United States, not in Taiwan, not in South Korea, not in China. And this is what will allow that to happen, and it's going to put an investment in the new technologies of the future. I'm confident it will pass the Senate. And I helped co-lead the innovation bill with Senator Schumer and working to make sure we have the votes in the House.

DAVE BRIGGS: Speaking of the future, congressman, you've been on record as saying you think Ron DeSantis would easily be defeated by President Trump in a 2024 primary. Why? And given the recent two polls have shown margin of error difference between those two in both New Hampshire and in Michigan, and you've said that you support Joe Biden for a 2024 run, why him? With a 33% approval rating, he'll be 82 over two people from your state-- your current governor, who looks like he may want to run, and the vice president, who also appears to be considering a run.

RO KHANNA: Well, the incumbent president beat Donald Trump. He's our safest bet. And compared to the other two, he'd be much more compelling in Pennsylvania, Michigan or Wisconsin or the Midwest. In terms of Trump versus DeSantis, I mean, you look at the national polls. And Trump is still 2 to 1. But the biggest thing is, he's winning overwhelmingly in the Republican primary with voters who don't have a college degree.

And a lot of the working class base that got Trump the nomination is still, unfortunately, loyal to him. So I think it would be a mistake to underestimate him. And President Biden defeated him. And so, you know, he's entitled as the incumbent president to the support of his party.

DAVE BRIGGS: Congressman Ro Khanna, been great pleasure having you. Please come back. We want to talk Endless Frontier tech jobs moving across the country. But it's great to have you, sir. Thank you.

RO KHANNA: Thank you. Appreciate it.