State-by-State Analysis of Waxman-Markey Cap and Trade Legislation Paints Dour Picture for Nation's Economy

/PRNewswire/ -- The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) today unveiled a comprehensive study on the impact of The American Clean Energy and Security Act of 2009, also known as the Waxman-Markey Bill (HR 2454). The bill aims to reduce greenhouse gas emissions and to cap the amount of carbon that is emitted by U.S. industry. The legislation does so by mandating a cap and trade program and other provisions governing fuel choices available to businesses and consumers. This bill passed the House of Representatives by a slim margin (219-212) earlier this summer. The Senate is expected to release its version of climate legislation in September.

The study, which was commissioned by the NAM and ACCF and conducted by Science Applications International Corporation (SAIC) using NAM and ACCF input assumptions, assesses the impact of the Waxman-Markey Bill on manufacturing, jobs, energy prices and our overall economy. The NAM and ACCF released national data as well as the analysis for 15 industrial states that would be impacted greatly if this or similar legislation is signed into law. The full report, including the data covering the remaining 35 states will be released in the coming weeks.

Jay Timmons, executive vice president of the NAM said, "Climate change is a very complex issue and I hope Senators will look closely at this study as they consider climate change legislation this fall. At a time when our country is struggling to come out of our longest and deepest economic downturn since the Great Depression, lawmakers should be focused on policies that provide incentives for businesses so they can create jobs and grow. Unfortunately, this study confirms that the Waxman-Markey Bill is an 'anti-jobs, anti-growth' piece of legislation. Further, leaders of countries such as China and India have made it clear they have no intention of reducing their own emissions. Waxman-Markey would give an edge to overseas competitors, discouraging domestic investment and the creation of American jobs."

The NAM/ACCF study accounts for all federal energy laws and regulations currently in effect. It accounts for increased access to oil and natural gas supplies, new and extended tax credits for renewable generation technologies, increased World Oil Price (WOP) profile, as well as permit allocations for industry and international offsets. Additionally, the provisions of the stimulus package passed in February are included in this study. Key findings include:

-- Cumulative Loss in Gross Domestic Product (GDP) up to $3.1 trillion
(2012-2030)
-- Employment losses up to 2.4 million jobs in 2030
-- Residential electricity price increases up to 50 percent by 2030
-- Gasoline price increases (per gallon) up 26 percent by 2030


Dr. Margo Thorning, senior vice president and chief economist for ACCF, highlighted the importance of reviewing economic findings while debating the climate change legislation. "This data shows that we cannot divorce the environmental impacts from potential economic damages. Policymakers may have the best of intentions when it comes to the environment, but it's crucial that we compare the economic cost to the legislation's actual impact on global GHG reductions. Considering that developing countries such as China and India have publicly stated that they will not undertake similar emissions policies, there would be almost no global environmental benefits from the bill. Ultimately, this study shows that Waxman-Markey, would significantly decrease employment and increase energy prices at a time when we can least afford it."

Further, this study shows industrial states would be disproportionately impacted by high energy prices, loss of jobs and income. The 15 states analyzed in the initial study include:

1. Arkansas
2. Illinois
3. Indiana
4. Iowa
5. Kentucky
6. Michigan
7. Minnesota
8. Missouri
9. North Carolina
10. Ohio
11. Pennsylvania
12. Tennessee
13. Virginia
14. West Virginia

15. Wisconsin


SAIC used a modified version of the National Energy Modeling System, NEMS/ACCF-NAM 2, and the NAM and ACCF input assumptions, to quantify the impact of the Waxman-Markey bill.

"Policymakers and the public must have a clear understanding of the potential impact of climate change legislation to assess whether it will cause more economic harm than environmental good," concluded Timmons.

The national and 15 state-by-state economic impacts can be found by visiting: http://www.accf.org/publications/126/accf-nam-study

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Gasoline Shortage or Supply Problems?

Note: If there is no shortage, why the spike in gasoline prices? Read on to find out why.


Shortages, Price Hikes Follow Ike in Southeast

By Joe Benton
ConsumerAffairs.com

September 16, 2008

Gasoline stations throughout the Southeast and are reporting sporadic shortages and price spikes as the surge in average pump prices leveled off at $3.854 a gallon......

Read the story.

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Increasing Fuel Supply in the Aftermath of Hurricanes Gustav and Ike

(BUSINESS WIRE) --Today (September 15, 2008), President Bush discussed Federal actions his Administration is taking to increase fuel supply in the aftermath of Hurricanes Gustav and Ike. These storms have disrupted our energy sources, and the Federal government is leading the effort to minimize the impact on American families. This recovery effort will take time, but the Administration is acting quickly to help the millions of residents in Texas and Louisiana who have been affected by Hurricane Ike. We are coordinating with State and local governments to help restore power, remove debris, and get water and sewage plants back up and running. Tomorrow, President Bush will visit Texas to support the rebuilding and recovery efforts following the storms.

President Bush Has Directed His Administration To Take The Necessary Steps To Ensure An Adequate Supply Of Energy

The Energy Department stands ready to release crude oil from the Strategic Petroleum Reserve (SPR) when and where it is necessary to ensure refineries are capable of maintaining operations. In the wake of Hurricane Gustav, Secretary Bodman released crude oil from the SPR. This oil was released at the request of two companies - Marathon Petroleum Company (500,000 barrels total; two deliveries of 250,000 each) and Placid Oil (130,000 barrels total). To date, these three deliveries of emergency exchange SPR oil are complete. Yesterday, the Energy Department approved the release of an additional 309,000 barrels of crude oil to two companies - ConocoPhillips (200,000 barrels total) and Placid Oil (109,000 barrels).

The Minerals Management Service (MMS) is working with the energy industry and U.S. Coast Guard to obtain data from airplane overflights and MMS helicopter overflights. Following initial assessments, industry personnel are able to return to drilling rigs and production platforms for more detailed assessment, for repair, or to restart operations.

The Energy Department has deployed personnel to assist with local power companies, local authorities, and State authorities to help get electricity functioning and to ensure the repair and continuity of oil and gas pipelines and enable refineries to restart.

The EPA has waived certain fuel requirements in order to make it easier to use the supplies we have domestically and increase flexibility in what we can import. This waives requirements for gasoline sold or distributed in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, part of Ohio, South Carolina, Tennessee, Texas, and Virginia.

The Federal Government Is Carefully Monitoring Fuel Prices To Make Certain American Consumers Are Treated Fairly At The Pump

The Energy Department has opened its price gouging hotline (1-800-224-3301) and its web site (gaswatch.energy.gov) for consumers. The Energy Information Agency is tracking inventories and prices on a regional basis, comparing those figures with past data, and sharing the results with the Energy Department, the Federal Trade Commission (FTC), and States in the region.

* The FTC is monitoring gasoline prices and intensifying its scrutiny, especially in the affected area. The FTC has also posted a new consumer alert on its web site (www.ftc.gov) to draw attention to its educational materials on how to be smart buyers of gasoline and how to avoid scams that seek to exploit victims of natural disasters.

The Federal Government Is Taking Coordinated Action To Provide Open Channels Of Transportation For Energy Supplies

The U.S. Army Corps of Engineers and Coast Guard worked together to reopen the Port of Pascagoula, Mississippi, to vessel traffic. Oil tankers are currently limited to a 30-foot depth, but draft limitations are expected to be increased to 36 feet in the near future.

The Coast Guard is working to repair the Aids to Navigation - lighted structures, beacons, day markers, range lights, fog signals, landmarks, or floating buoys used to help boaters plan trips and safely navigate waterways - located in the Houston Ship Channel that have been damaged or destroyed by the storms. The Coast Guard is working to reopen the Houston Ship Channel in time to meet the crude oil needs of the refineries once they are operating again.

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