Report Confirms: Cap and Trade is a Job-Killer

Last summer, House Democrats passed a "climate change" bill that, for all practical purpose, is nothing more than a national energy tax. I opposed the legislation because it was sure to result in increased utility costs for families and punishing taxes on the energy industry that would be particularly damaging for energy-producing states like Oklahoma.

A report just released by the non-partisan Congressional Budget Office (CBO) confirms that cap and trade is extremely flawed policy. In their analysis of the legislation, the CBO cautioned that "prolonged hardship" could ensue if it is enacted. The report lists in grim detail exactly what we can expect if liberals succeed in implementing new mandates on the energy industry: "a number of people would lose their job"; "average wages would be lower"; "a wide variety of other industries would also see lower employment"; "[cap and trade] would increase prices for electricity." This in-depth analysis reinforces earlier estimates warning that the average family would pay $3,100 more in energy costs each year under the bill. These are hardly the outcomes we need to jumpstart a still struggling economy.

A newly unveiled Senate bill contains some promising provisions promoting natural gas but makes only minor changes to the cap and trade policy confirmed by CBO to raise energy costs for families and stifle job growth. Additionally, the Senate bill could threaten progress toward energy independence. While claiming to promote energy exploration, proponents of the new legislation inserted provisions that could stifle opportunities to develop new sources of energy, such as policies to prohibit drilling within 75 miles of our coasts. It's certainly imperative to guard against future environmental disasters like the oil spill currently threatening the Gulf Coast. But stopping exploration altogether will increase our dependence on foreign sources of oil that not only pose security threats but also jeopardize the environment with lax safety standards. While the Gulf spill is a tragic exception to the otherwise excellent safety record of American oil exploration, the same cannot be said of other countries. Nigeria, for instance, has experienced a major oil spill every year since 1969. It is not in America's best interests -- from an environmental, economic or security standpoint -- to rely solely on foreign sources for our energy needs.

It is possible to create legislation that safely promotes energy independence, creates jobs and encourages clean-energy alternatives. House Republicans have proposed just such a plan in the American Energy Act, of which I am a cosponsor. However, the liberals in control of Congress refuse to consider any alternatives to their big government agenda. From a "stimulus" bill that failed to revive the economy or create jobs to the government health care takeover that will actually raise medical costs and reduce health care access, the liberal agenda has resulted in one deficit-increasing, government-expanding, havoc-wreaking policy after another. There is little doubt that we'll see more of the same if they have their way with energy policy.

###