One bill could destroy the quality of life and jobs in most of America
Perhaps the most destructive legislation in our country’s history will soon be voted on in the United States House of Representatives – the Waxman/Markey Tax Bill in the guise of addressing climate change. It will have adverse and lingering consequences for every American. It will raise the cost of electricity in our homes, the fuel for our cars, and the energy which produces our manufacturing jobs, with little or no environmental benefit. Further, independent experts estimate that it will cost Americans more than $2 trillion in just over eight years. All Americans in the Midwest, South and Rocky Mountain regions will be most drastically affected because the climate change legislation will destroy the nation’s coal industry and the low-cost electricity it has provided to these regions for generations. Wealth will be transferred away from almost every state to the West coast and New England.
The most abundant and by far least expensive energy source in our country for generating electricity is coal. America’s coal reserves rival the energy potential of Saudi Arabian oil. Unfortunately, the proposed climate change legislation in the House of Representatives, the Waxman/Markey Bill, forces America to throw away this tremendous resource, and our low cost electricity with it.
The legislation sets an unattainable cap on carbon dioxide emissions by 2020, with the first reductions due by 2012. Under the program, businesses that emit carbon dioxide would be required to purchase or obtain from the government special carbon dioxide credits. This carbon dioxide cap will force utilities to switch from lower cost coal to natural gas or other more expensive energy sources. Reliable estimates show that this bill will cost each American family at least $3,000 more for energy each year. The chief executive of one of the nation’s major utilities recently said it best in the Wall Street Journal stating, “The 25 states that depend on coal for more than 50 percent of their electricity…will have to shut down and replace the majority of their fossil fuel plants as a result of the climate change legislation.”
The supporters of this ill-conceived legislation point to two provisions that they claim will help coal. The first is that they give electric utilities free credits. However, those credits are worth millions of dollars, and the utilities will be free to sell the credits and use the proceeds to build more expensive natural gas or nuclear power plants, and not use our lowest cost fuel – coal. Second, the authors of the legislation invest money in carbon capture and storage technology, claiming that this will save jobs. But, this technology will not be commercially available for at least 15 to 20 years, long after the reductions are required in 2012 and long after our coal plants are shut down and our manufacturing jobs are exported to China, India and other countries. All of these countries have stated that they will not place any restrictions on carbon dioxide emissions. China alone, which has surpassed the United States in carbon dioxide emissions, brings a new 500-megawatt coal-fired power plant on line every week. They will have low cost electricity and America will massively export more jobs to them.
It is not too late to tell Congress to kill this flawed bill. Everyone should call your representative in Congress and ask him or her to vote NO on the Waxman/Markey climate bill (otherwise known as cap and tax) and support affordable energy, American jobs and our quality of life.
Robert E. Murray
Chairman, President and Chief Executive Officer
Murray Energy Corporation
Do you know that the concept for Cap and Trade is a free market idea to limit pollution? Wouldn’t it make sense to convert pollution into a commodity and have natural supply and demand pressures determine the price and consequences for an industrial company?
Unfortunately Cap and Trade only makes sense if the entire world subscribes to and enforces the standard. Like other well meaning bills this would only lead to terrible economic consequences for the entire country. Why wouldn’t a company re-locate to another region with no pollution standards? If fact wouldn’t they have duty to their shareholders to do that?
Aren’t we are fed up with these well intended laws that lead to economic chaos? Examples - MediCare and the Fair Credit Act. We should be looking for less government not more. I agree with Mr. Murray and will be contacting my Congressman to vote No on the half-baked bill!