Governing Climate Change

Cap and Trade is energy legislation that aims to reduce greenhouse gas emissions by giving the federal government the power to limit the amount of oil, gasoline, coal and other fossil fuels used by American utilities and industry. In reality, this Cap and Trade plan is nothing more than a hidden tax.

The proposed bills will place a severe regulatory burden on American businesses, which will increase their costs and reduce their competitiveness, hurt our nation’s economy and achieve virtually no environmental payoffs. These higher operating costs for utilities, oil companies and industry will ultimately be passed on to consumers who will pay an estimated 74 percent more for gasoline, 90 percent more for electricity, and 55 percent more on natural gas bills. Consumers will also pay more for every product that requires fossil fuels in its manufacture or transportation. The Heritage Foundation has estimated could increase the average American family's energy bill by $1,500 annually!

Because Mississippi cannot optimally utilize most of the proposed alternative energy sources (i.e., geothermal and wind), this legislation will have a disproportionately negative effect on our state. Currently, Mississippi is home to 2,800 manufacturers, employing 145,000 people and providing more than 12 percent of the entire state's jobs. In order to protect our competitive manufacturing industry, we need a diverse, reliable, and affordable energy mix. 

 To contact Mississippi's senators and representatives about this issue, click here.

The Evolution of Cap & Trade Legislation

Waxman-Markey [H.R. 2454] 

• Decrease GHG 20% by 2020.
• Amended to decrease GHG 17% by 2020.

Kerry-Boxer [Senate version]

• Decrease GHG 20% by 2020.
• Sen. Kerry pulled support for this bill before it was voted out of Senate committee.

Kerry-Lieberman-Graham [2nd Senate version]

• Strong on nuclear.

Recent Activity on Cap and Trade
Below are current articles and other resources that provide additional information about the Cap and Trade legislation:

Articles

• June 30, 2010:  Waxman to push carbon limits in conference if Senate falls short. E² Wire.House Energy and Commerce Committee Chairman Henry Waxman (D-Calif.) said he would “absolutely” seek to keep greenhouse gas limits.
• June 10, 2010: Reaction and debate excerpts on the Senate’s 47-53 vote defeating the motion to proceed to S.J.Res. 26, the resolution disapproving the EPA’s regulation of greenhouse gases under the Clean Air Act. National Association of Manufacturers.
• June 8, 2010: Manufacturers Urge Senate to Pass Murkowski Resolution. National Association of Manufacturers. “Manufacturers encourage Senators to vote in favor of the ‘resolution of disapproval’ and to stop the EPA from moving forward with its overreaching and economically destructive agenda. ..."
• May 13, 2010: Once more unto the breach. The Economist. “'KERRY-GRAHAM-LIEBERMAN'—it sounded so promising. One Democrat, one Republican and one Independent...."
• April/May 2010: How Energy Factors Into The Location Decision. Area Development Online. While nearly every business sector has an eye on energy availability, it isn’t the top consideration for location choices. 
• April 26, 2010: Graham stands ground on climate bill. Sen. Lindsey Graham (R-S.C.) all but sounded the death knell for climate change legislation.
• March 22, 2010: After health care, a climate bill push. Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joe Lieberman (I-Conn.) have been working overtime to move a draft of their climate bill forward before the Senate leaves for recess at the end of the week. Read the full article.
• Feb. 27, 2010: Senators to propose abandoning cap-and-trade, The Washington Post. Three key senators are engaged in a radical behind-the-scenes overhaul of climate legislation, preparing to jettison the broad "cap-and-trade" approach that has defined the legislative debate for close to a decade.
• Feb. 16, 2010: "Manufacturing Sector Challenges EPA on ‘Endangerment Finding.'" The National Association of Manufacturers (NAM) and other business groups today filed a petition in federal appeals court challenging the U.S. Environmental Protection Agency’s (EPA) decision to regulate greenhouse gas emissions (GHG) from stationary sources through the Clean Air Act.
• Sept. 23, 2009: Climate Summit Concludes Where It Began, The Wall Street Journal.   
• July 15, 2009: “Devils in the details”: Concerned citizens meet to learn about dangers of ‘cap and trade’ legislation, El Dorado (Ark.) News-Times
  

Reports

• Mississippi Economic Impact on the State from the Waxman-Markey Bill, H.R. 2454, Proposed Legislation to Reduce Greenhouse Gas Emissions. This analysis from the National Association of Manufacturers and The American Council for Capital Formation provides a summar of the impact of the Cap and Trade legislation on the state of Mississippi.
• Analysis of the Waxman-Markey Bill: "The American CLean Energy and Security Act of 2009" (H.R. 2454) Using the National Energy Modeling System (NEMS/ACCF-NAM 2) by the ACCF and the NAM. Also, PowerPoint presentation with executive summary of the analysis.
• Aug. 12, 2009: NAM, NFIB Launch Media Campaign Opposing Waxman-Markety Climate Change Bill.
• ManuFACTS: Creating a Low-Carbon Energy Economy. The Role of Manufacturers in Changing the Climate. Published by the NAM.
• Aug. 18, 2009: “The Economic Consequences of the Waxman-Markey Bill," the National Center for Policy Analysis.

MMA Presentations

• Oct. 2009: PowerPoint presentation to the MMA Board of Directors, presented by MMA Deputy Director of Government Affairs Katherine Barlow to MMA board of directors..
• Sept. 3, 2009: An interview with Jay C. Moon, MMA president and CEO on the Mississippi Public Broadcasting program Mississippi Edition.
• June 2009: PowerPoint presentation summarizing Waxman-Markey bill, presented by MMA Deputy Director of Government Affairs Katherine Barlow to MMA board of directors.

Other Presentations

• June 9, 2010: Meeting the Energy Challenge: Policies, Politics, and How it Affects Your Business. Recording of a webinar featuring experts from the National Association of Manufacturers, IndustryWeek and SAP for an informative discussion on the direction of energy legislation, the incentives available to manufacturers, and some of the strategies companies are using to drive efficiency, profitably reduce corporate carbon footprints, and navigate compliance.
   

 Votes in Congress

The U.S. House of Representatives voted June 26, 2006, to pass the Cap and Trade bill. Mississippi's congressmen voted as follows:

District 1, Rep. Travis Childers : Nay

District 2, Rep. Bennie Thompson: Yea

District 3, Rep. Greg Harper: Nay

District 4, Rep. Gene Taylor: Nay 

For a full summary of votes by the House, click here. 

Gov. Barbour Testifies Before U.S. Senate Committee on Cap and Trade Tax

Mississippi Gov. Haley Barbour testified July 7 before the U.S. Senate Committee on Environment and Public Works that the Cap and Trade tax under consideration by Congress would damage the nation’s economic growth and increase energy costs  for consumers.

“Energy policy significantly impacts every aspect of American foreign and domestic policy,” Barbour  said. “Energy is the lifeblood of our economy; our national security depends on it. When we consider energy policy, it must be in the broadest context.”

(Read the transcript of his testimony here.)

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MMA contact on the Cap and Trade issue: Katherine Barlow, Deputy Director of Government Affairs.