Energy Citizens

The Climate Bill

As Energy Citizens, we support policies that promote jobs and affordable energy for American consumers and businesses. Unfortunately, some in Congress are proposing climate change legislation that would do exactly the opposite.

In June, the U.S. House of Representatives passed the Waxman-Markey climate bill, a badly flawed 1,427-page piece of legislation that could drive up the price of energy, deter American job creation and send jobs overseas, and bring greater stress to a still struggling economy. And now, the U.S. Senate Environment and Public Works Committee has approved a similar bill drafted by Sens. John Kerry (D-Mass.) and Barbara Boxer (D-Calif.)—the Kerry-Boxer bill—which could have a profound impact on Americans’ everyday lives.

Like the Waxman-Markey House bill, the Kerry-Boxer bill could mean a huge new energy tax on farmers, truckers, small businesses and America’s families and imperil millions of U.S. jobs. All Americans will feel the impact.

The Senate should be forthcoming about the sacrifices it expects Americans to make in addressing climate change. Three separate studies have shown this legislation will cost more than 2 million American jobs —hurting millions of Americans who work in or depend on trucking, farming, manufacturing, mining, small business and energy production—or use their cars to commute to work.

Raising Cost of Gasoline and Diesel Fuel

The Energy Information Administration forecasts that the Waxman-Markey climate bill could increase gasoline prices to over $5 a gallon by 2030.

And a new a report from Sens. Hutchinson and Bond shows that the Waxman-Markey climate bill amounts to a $3.6 trillion energy tax on transportation fuels. The study shows that from 2010 to 2050 motorists, workers and businesses would pay $2.0 trillion more for gasoline; truckers, farmers and businesses would pay $1.3 trillion more for diesel fuel; and airline passengers would be charged $330 billion more to pay for jet fuel.

Similarly, the Heritage Foundation also reports that by 2012—the first year of the legislation’s “caps”—diesel fuel prices are expected to rise to $3.75 per gallon. “Waxman-Markey would tack on another 20 cents—and that’s only the start. Because the legislation mandates ever-tightening restrictions on fossil fuels, and the tax on diesel continues to rise. Even after adjusting for inflation, this tax will hit $1.38 by 2035.”

Check out Heritage’s interactive state-by-state map for projections of gasoline costs today, in 2012 and 2035—for all 50 states.

According to the National Federation of Independent Businesses, the cost of fuel—natural gas, propane, gasoline or diesel—ranks as the second greatest challenge for small business owners.

Truckers, who haul 11 billion tons of freight every day from one corner of our nation to the other each year, will face significant burdens because of these higher energy costs. And that could raise the costs to consumers of the products they ship.

For farmers, who operate energy-intensive machinery from dusk to dawn, any increase in operating costs will squeeze already low profit margins and could raise consumer costs in the grocery store. The American Farm Bureau estimates this intrusive legislation will force production costs up from—$5 billion to $13 billion a year.

Sending Jobs Overseas & Less Energy Independence

According to the federal Government Accountability Office, this climate legislation could make American companies and the American economy less competitive internationally. As a result, American jobs could be driven overseas to countries that do not limit greenhouse gas emissions. Another direct effect of this legislation is that America would become more reliant on refined products like gasoline.

Congress pushed this legislation as a step towards lowering greenhouse gas emissions, but their good intentions could have disastrous consequences for families and businesses across America. In addition, the lack of any international efforts to address climate change simply puts America’s economy in a less competitive position, potentially causing even more long-term harm.

Join other Energy Citizens and declare your support for American jobs and affordable energy.