The following is a rush transcript of the January 2, 2010, edition of "Fox News Sunday With Chris Wallace." This copy may not be in its final form and may be updated.

CHRIS WALLACE, ANCHOR: I'm Chris Wallace. This is "Fox News Sunday."

Ringing in 2011 with a new-look Congress. With the Republicans in charge of the House, how much will they shake up Washington? We'll ask two new committee chairmen, Darrell Issa who will have broad powers to investigate the White House and Fred Upton who will dig in to health care reform and energy policy.

Then, what effect will the new Tea Party-backed members of Congress have on Capitol Hill? We'll talk with two of them, incoming Senator Mike Lee of Utah and Congressman Allen West of Florida.

Plus, has the Obama administration figured out how to go around lawmakers and impose new regulations on us? Our Sunday panel will have a fair and balanced debate.

And a remarkable story of courage from our power player of the week. All right now on "Fox News Sunday."

Hello again and happy New Year from Fox News in Washington. All eyes will be on House Republicans this week when they take control from Democrats. From investigating the White House to looking for ways to undo Obamacare, our guests will be key players.

Congressman Darrell Issa who will chair the House Oversight and Government Reform Committee and Congressman Fred Upton, who will chair the Energy and Commerce Committee. And gentlemen, happy New Year and welcome to "Fox News Sunday."

REP. FRED UPTON, R-MICH.: Happy New Year.

REP. DARRELL ISSA, R-CALIF.: Happy New Year to you.

WALLACE: Let's start with the big picture. The two of you wrote an article together in the Washington Times in November under the headline "Reclaiming the Right to Oversight," in which you said this, "The new majority in Congress certainly has its work cut out to undo the big government havoc that was wrought during the Democratic one- party reign over the past two years.

Congressman Upton, let me start with you. Given the fact that Republicans still don't have control of the Senate, still don't have control of the White House, how much can you and the House do to undo and block the Obama agenda?

UPTON: Well, we can actually do a lot. I was glad to see the president talk yesterday in his radio address about jobs and the economy, reducing the size of government and reducing the deficit.

We're going to try to help them do that job. We are going to have a very aggressive oversight subcommittee in my committee, and I know that Darrell is going to do the same with his full committee.

We are going to be working together. We are going to be looking to identify programs that don't work, programs that ought to be cut, working with our leadership, Boehner and Cantor, to bring up spending reductions virtually every week, as we've done without success this last year to really get the job done.

WALLACE: Congressman Issa, White House officials have already said they're going to hire more lawyers to deal with all the oversight investigations, particularly coming from your committee. Are they going to need them?

ISSA: They're going to need more accountants. The fact is that in the 1980s, Congress did about 1,600 days of oversight. That's a lot more than my committee alone could ever do.

Last year, we did less than 400, far less. And that's with you being able to call an oversight, whether it is or it isn't. Looking for the hundreds of billions of dollars of waste, Office of Management and Budget, the president's Office of Management and Budget views $125 billion of misspending by Medicare, and yet year after year it doesn't change.

That's 10 percent of the deficit that would go away if we simply stop paying to people who don't exist their claims. There is so much opportunity, but it's more of an accounting function than legal function. It's more about the inspector generals than it is about lawyers in the White House.

And the sooner the administration figures out that the enemy is the bureaucracy and the wasteful spending, not the other party, the better off we'll be.

WALLACE: All right, Congressman Upton, I want to ask you about two big issues that your committee is going to be looking at, Energy and Commerce. First, health care reform. For all the talk about repeal, as long as Barack Obama is president, can you really block the law? Can you really stop what is going to happen between now and 2012? Or are you basically going to be holding hearings to point out problems?

UPTON: Chris, watch what happens. As part of our pledge, we said that we would bring up a vote to repeal health care early. That will happen before the president's State of the Union address.

We have 242 Republicans. There will be a significant number of Democrats, I think, that will join us. You will remember when that vote passed in the House last March, it only passed by seven votes.

WALLACE: But you're not going to repeal it? The vote in the House -- it's not going to happen in the Senate.

UPTON: Just wait. If you switched four votes from last March, that bill would have gone down. So we'll take the Democrats that voted no. We'll take other Democrats who probably agree with Speaker Pelosi's statement.

Remember when she said we want to pass this thing because then we'll learn what's in it? Well, now the American public does know what is in it. Unpopularity numbers are as high as 60 percent across the country. I don't think we're going to be that far off from having the votes to actually override a veto.

Remember President Clinton? It took him three times before he signed welfare reform. If we pass this bill with a sizable vote, and I think that we will, it will put enormous pressure on the Senate to do perhaps the same thing. But then, after that, we're going to go after this bill piece by piece.

We'll look at the 1099 issue, Dave Camp's committee, Ways and Means, to look at the $600 1099 that has to be processed for every business-to-business transaction. We'll look at the individual mandate requirement. We will look at all of those as individual pieces.

We're going to take up early I think the Stupak language, no funds shall be spent on abortion, as a separate bill early on. And we will look at these individual pieces to see if we can't have the thing crumble.

WALLACE: I want to ask you about another big issue your committee is going to take up, and that's the EPA, which starting today is imposing new regulations on some industrial facilities to reduce their greenhouse gas emissions.

In the Wall Street Journal this week, you co-wrote an article in which you said this -- "This move represents an unconstitutional power grab." This is the EPA regulation. "This move represents an unconstitutional power grab that will kill millions of jobs unless Congress steps in."

Specifically, what are you going to do about EPA regulation of greenhouse gases?

UPTON: We are not going to let this administration regulate what they've been unable to legislate, and that's -- came up, if you remember, through the cap-and-trade bill that passed the House and never got through the Senate.

The Clean Air Act, which was passed in the '90s, does require that the administration in any regulation has to look at the impact on jobs and the economy. We knew that through cap-and-trade, we would see at least in the Midwest energy prices increase by as much as about 20 percent almost overnight.

WALLACE: So you are saying you can stop the EPA regulation?

UPTON: A couple things that we can do. We're going to have early, early hearings on this. We're going to see exactly what their analysis is on its impact on jobs. There's also something called the Congressional Review Act, that within 60 days of rules being published, Congress can take this up and with an up-or-down vote, it is filibuster-proof in the Senate. It's been used before.

WALLACE: But it can be vetoed by the president.

UPTON: It can be vetoed by the president, but already we've seen a number of powerful Democrats indicate that they have real, real qualms about what the EPA is intending to do.