By Rep. Ken Paxton
Last week the U.S. House of Representatives considered the American Clean Energy and Security Act of 2009 also known as the Waxman-Markey bill. While proponents pitch this proposal as an opportunity to improve our environment it will actually lead to higher energy prices for American families and lead to job loss at a time when unemployment rates are already at a record high level. Furthermore the effects of this bill prove detrimental for Texas.
Waxman-Markey sets out to reduce greenhouse emissions in the following ways: 1) By implementing a set of mandates requiring low-carbon motor fuels and increase the amount of electricity produced from renewable sources; and 2) By setting in place cap and trade.
Cap and trade puts limits on the amount of CO2 emissions that businesses are allowed to generate. The government will supply businesses with coupons which allows a certain amount of carbon emissions to be emitted. Businesses can then buy and sell or trade their rights to emit carbon dioxide. However if a business does not possess enough coupons for the amount of CO2 emitted then they will be subject to hefty penalties.
The federal government plans to reduce the cap over time. Eventually the cost will be too high for companies to purchase additional coupons and they will be forced to reduce their emissions.
Cap and trade will not only make energy more expensive but it will also drive up the costs on all American products. Energy intensive companies in particular will be impacted. Furthermore this proposal will ultimately drive even more jobs out of the country.
As the countrys leading energy producer Texas will be disproportionately affected by this proposal. Texas Comptroller Susan Combs reports that this proposal could cause Texas to lose 135000 to 277000 jobs in 2012. Those losses could increase up to 400000 by the year 2030.
The
Congressional Budget Office data shows that the Waxman-Markey bill will increase Texas consumers cost for electricity by $1.1 billion as soon as 2012
As Comptroller Combs highlights Texans will pay more to fuel their vehicles cool their homes and purchase everyday goods. Her office estimates that as a result of the cap and trade provisions of current legislation the typical Texas household might spend up to $1100 a year more on goods and services. This includes ordinary items such as diapers cell phones aspirin and lipstick.
Texas is already enhancing its renewable energy potential and making its industries even more energy efficient. For example this past legislative session we passed a measure (HB 469) which I co-authored that provides a franchise tax credit to energy companies that develop clean energy projects.
Texas has been able to attract businesses offering products and services that conserve energy and protect our environment without implementing harsh regulations and taxes on business.
Renewable energy is now a growing industry in Texas and has proven to be lucrative particularly for Texas wind farmers and ranchers. Texas is now the national leader when it comes to wind power. According to a 2008 article published in the New York Times titled Move Over Oil Theres Money in Texas Wind more than three percent of Texas energy now comes from wind which is enough to supply power to 1 million homes.
Solar power is also a growing industry in Texas. In fact
HelioVolt Corp. an Austin-based company opened its first factory last fall to test and produce the companys thin-film solar power cells which convert sunlight into electricity. In addition to promoting alternative energy HelioVolt Corp. has also created approximately 160 jobs and $62 million in capital investment.
Texas is the nations leader in wind energy with almost three times the megawatts of the next closest state Iowa. New transmission lines under construction will increase our wind energy capacity to more than 18000 megawatts.
The Pew Charitable Trusts has identified Texas as a leader in creating clean energy jobs. Employment in the emerging field has grown 15.5 percent in the past decade. Texas has enormous potential for developing solar nuclear biomass and other alternative sources of energy.
And to stay competitive Texas businesses are constantly finding ways to be more energy efficient.
At a time when most other states are struggling financially Texas had a budget surplus this past legislative session. Our state also has a lower unemployment rate than that of the federal level because we offer a favorable business climate that has among other things encouraged innovative green initiatives.
Washington D.C. should follow our lead and promote policies that allow businesses to thrive without additional regulatory burdens that lead to job loss and increased prices.
If the proposals in American Clean Energy and Security Act of 2009 concern you as it does me I encourage you to contact your member of Congress and United States Senators today as this legislation is currently being considered by our federal elected officials.
Solar power is also a growing industry in Texas. In fact HelioVolt Corp. an Austin-based company opened its first factory last fall to test and produce the companys thin-film solar power cells which convert sunlight into electricity. In addition to promoting alternative energy HelioVolt Corp. has also created approximately 160 jobs and $62 million in capital investment.
Texas is the nations leader in wind energy with almost three times the megawatts of the next closest state Iowa. New transmission lines under construction will increase our wind energy capacity to more than 18000 megawatts.
The Pew Charitable Trusts has identified Texas as a leader in creating clean energy jobs. Employment in the emerging field has grown 15.5 percent in the past decade. Texas has enormous potential for developing solar nuclear biomass and other alternative sources of energy.
And to stay competitive Texas businesses are constantly finding ways to be more energy efficient.
At a time when most other states are struggling financially Texas had a budget surplus this past legislative session. Our state also has a lower unemployment rate than that of the federal level because we offer a favorable business climate that has among other things encouraged innovative green initiatives.
Washington D.C. should follow our lead and promote policies that allow businesses to thrive without additional regulatory burdens that lead to job loss and increased prices.
If the proposals in American Clean Energy and Security Act of 2009 concern you as it does me I encourage you to contact your member of Congress and United States Senators today as this legislation is currently being considered by our federal elected officials.
