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Energy "Cap and Trade" Energy Tax On June 26th, the House of Representatives narrowly approved controversial cap and trade legislation that would impose a national energy tax on everyone from families and farmers to the elderly and small businesses, both in Kentucky and across the nation. H.R. 2454, the American Clean Energy and Security Act of 2009, passed the House by a vote of 219 to 212, with strong bipartisan opposition that included forty-four Democrats. Simply put, a “cap and trade” program would amount to a national energy tax. A “cap and trade” plan sets limits on carbon emissions. Permits to emit carbon dioxide above that cap are either issued or sold. Those permits become a tradable commodity on an exchange. In theory, the system forces those who produce energy to either produce it more cleanly or purchase additional permits. Energy prices are a major factor in determining the cost of living and the cost of doing business in a particular location. One of Kentucky’s principle competitive advantages for economic growth is the low cost of our electricity. More than ninety percent of Kentucky’s electricity is produced from coal, allowing Kentucky to have the fourth lowest electricity costs in the U.S. To view a map of how cap and trade legislation would impact Kentucky and other States, click here. The Kentucky House and Senate each adopted a resolution that declares their strong opposition to cap and trade legislation. You can view the resolutions here. Additionally, the legislation was opposed by several organizations, including the Kentucky Chamber of Commerce and the Kentucky Electric Co-Ops. Click the organization names to read their statements on the legislation. You may also read the Northern Kentucky Chamber of Commerce’s letter by clicking here. H.R. 2454 will fundamentally alter the foundation of America’s energy and economy. Estimates on the impact of this legislation range from a couple hundred dollars to several thousand a year. Lots of changes were made to H.R. 2454 in the week before vote. In fact, the complete legislation was not available for review until 3:09 a.m. on the day of the vote; as a result, Members only had a matter of hours to read and try to understand how the bill would affect the families and small businesses in their districts. The final version of H.R. 2454 is more than 1200 pages long. It contains 397 regulations, 1,060 government mandates and it was accompanied by a 743-page committee report. The bill should not have been brought to the House floor for a vote until Members and their constituents were given a clear and complete analysis that explained the real impact the bill would have on each State. For more than a year, local, State and federal officials have stressed the need for government policies that create jobs. Not only does this cap and trade proposal fail to create jobs when Americans need them most, it will result in negative job growth. Manufacturers will be forced to move their plants to countries with cheaper energy, less regulation on energy production and lower taxes. As we work to preserve our environment and resources for future generations, we must avoid burdensome environmental regulations that will stall our economic recovery and sacrifice American jobs. According to the Heritage Foundation, in 2012, the legislation could cause more than 4,000 jobs to be lost in the Fourth District alone and nearly 22,000 jobs throughout the Commonwealth. Attempts by other nations to forcefully transition to a “green” economy have ended in shambles. In Spain, studies have shown that on average 2.2 jobs were lost for every “green job” that was created. At a time when the unemployment rate in Kentucky is.10.6 percent and the national unemployment rate is at a twenty-six year high, imposing a national energy tax is dangerous economic policy that we simply cannot afford. Congressman Davis' Energy Strategy What America needs is a comprehensive energy plan that will create jobs, not a national energy tax. My Republican colleagues and I support a comprehensive energy plan that would take advantage of the abundant energy resources that exist on American soil, reducing our dependence on foreign oil and creating more jobs right here at home. The American Energy Act (H.R. 2846), which I have co-sponsored, would increase our energy supply through an ‘all of the above’ energy policy. At the centerpiece of the American Energy Act is a commitment to increase the production of our abundant domestic natural resources. H.R. 2846 would finance renewable energy research and deployment for next generation wind, solar, and hydrogen fuels from revenues generated by expanded drilling on the Outer Continental Shelf (OCS) and Arctic Coastal Plain. This principle would allow us to make critical investments to make energy production cleaner and more environmentally friendly without additional taxes on families and small businesses. Additionally, the American Energy Act would also offer incentives for better efficiency and conservation and make a renewed commitment to clean and emissions-free nuclear energy. I support commonsense energy strategy like the American Energy Act that will encompass the following three steps: We must work to preserve our environment and resources for future generations; however, we must also avoid burdensome environmental regulations that will stall our economic recovery and sacrifice American jobs. I will continue fighting for a commonsense energy plan that will put our country on a path to a cleaner, more reliable energy future. Related Documents:
Weekly Columns -
The Hidden Health Care Cost of Cap and Trade
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Congressman Geoff Davis : Serving Kentucky's Fourth District
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