Is clean energy bill bad for business?
While millions of Americans are paying close attention to health-care reform, another policy is quietly moving forward.
The American Clean Energy and Security Act barely passed through the House of Representatives in June and is now headed to the Senate.
The bill could cost taxpayers up to $200 billion a year, according to documents released by the Competitive Enterprise Institute, a group critical of the proposal. Broken down, the average utility cost per household would be an extra $1,761 a year.
It includes a cap-and-trade global warming reduction plan designed to reduce greenhouse gas emissions 17 percent by 2020.
Other provisions include new renewable requirements for utilities, including many coal-dependant companies. Nearly 80 percent of Missouri’s electricity is generated from coal, and the United States is the leader in coal supplies.
Supporters of the bill said the provisions are critical to wean the U.S. off old, inefficient and unreliable coal plants, reduce imports of oil and coal and get to the clean energy economy that President Obama has outlined for the nation, said Bruce Nilles, a director with the Sierra Club, in a press release.
But while supporters of the bill claim it will create jobs and reduce global warming, some businesses disagree.
“Anything punitive to businesses right now is bad,” said Ray McCarty, president of the Associated Industries of Missouri.
Mr. McCarty said that instead of penalizing businesses with unattainable goals for emissions, the government should give incentives and encourage businesses to add environmentally friendly practices.
The Environmental Protection Agency states that successful cap-and-trade programs reward innovation, efficiency and early action and provide strict environmental accountability without inhibiting economic growth.
Rob Starr said his company is already doing that.
“It’s a big part of our business,” said Mr. Starr, president of St. Joseph Plastics.
The local businessman said his company has added several new procedures using recyclable materials. These processes, though, have increased its use of electricity. If the bill goes into effect, the increased utilities at Mr. Starr’s facility will cost him.
According to a study by the National Association of Manufacturers, energy prices would grow exponentially for businesses of all sizes, leading to the loss of about 60,000 Missouri jobs and 2.4 million jobs nationwide.
The Farm Bureau said it supports renewable and alternative energy, but said the bill will create an energy shortfall by taxing oil and coal and providing no viable energy solutions in the short term.
