Is clean energy bill bad for business?

Some companies say legislation will hinder growth

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.

Jennifer Hall can be reached at jennhall@npgco.com.

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sharpcheddar says...

The numbers offered up by the organizations quoted in this article must be skewed to support a particular political viewpoint. Other studies by unbiased, nonpartisan sources have predicted that the clean energy bill will be quite good for business! A University of Massachusetts study found that Missouri would gain 35,900 jobs from this legislation, when combined with ARRA provisions. And Missouri's clean energy industry already has 5.4% job growth, which means those thousands of new jobs aren't just a pipe dream but will be a realization of Missouri's clean energy potential.

Furthermore, clean energy is affordable--the U.S. Department of Energy and the Congressional Budget Office predicted it would cost the average family a dime a day, and that doesn't take into account the benefit of new income and thousands of new jobs flowing into Missouri communities.

The Department of Energy has also identified ways for manufacturers and industrial plants to save millions of dollars through energy efficiency measures. The clean energy bill will financially reward businesses that invest in clean energy and energy efficiency, and as this article points out, that's the direction in which Missouri businesses are already headed.

Senators Claire McCaskill and Kit Bond should push to pass a clean energy bill this fall. It's the right thing for Missouri's businesses.

September 24, 2009 at 4:55 p.m. ( | suggest removal )

c0uchtime says...

Forward-looking business, as they have for time immemorial, will adjust and even lead the way. New, innovative businesses will be invented and thrive, as will the traditional businesses that support them. Buggywhip makers and wagon wheelwrights will be joined by all the businesses that can't or won't learn and evolve. Capitalism ALWAYS has winners and losers, unless the businesses find a way to bribe and cajole legislators into dragging their feet and interfering with the process. Then there are only losers.

September 24, 2009 at 9:30 p.m. ( | suggest removal )

Timothy_Dike says...

The Clean Energy bill will just make it harder for US businesses to compete with those like China and India that have no such rules. Unless we are all playing by the same rules, I am against this. It will lose more jobs than it creates.

September 25, 2009 at 9:09 a.m. ( | suggest removal )

DontCapandTradeOurJobs says...

Congress is considering a bill that will cut jobs and raise costs on American families by as much as $1,800 a year. You can help by going to http://www.dontcapandtradeourjobsWV.com and say NO to the Boxer/Kerry jobs killing cap and trade bill.

October 8, 2009 at 1:29 p.m. ( | suggest removal )