Saying it was “the wrong time for the wrong bill,” Katy-area congressman Michael McCaul (R-Austin) voted against the Obama administration-backed energy bill that passed the House of Representatives late last week.
McCAUL
The bill, referred to as “Cap and Trade,” narrowly passed the Democratic-controlled House by a vote of 219-212 following months of negotiation and often contentious debate.
Republicans were overwhelmingly opposed to the bill, saying it would dramatically increase the cost of energy and drive jobs out of the country.
The administration claimed the legislation would put limits on pollution linked to global warming and ultimately bring about cleaner energy.
Even Obama, however, conceded that energy costs would rise. In January, he told the San Francisco Chronicle that “electricity rates would necessarily skyrocket.”
McCaul said the bill was yet another step by the Obama administration toward European-style government. He said the President should instead look at other alternatives that would be equally effective without adding to the economic burden of the current weak economy.
“The smart alternative is to invest more in research and development in green technologies (that) will create jobs and reduce pollution without punishing working families, farmer and ranchers and small businesses. This bill once again benefits Wall Street at the expense of Main Street,” McCaul said. “It’s one more failed European model we shouldn’t import.”
McCaul said he instead supports the Republican alternative energy plan called the “American Energy Act.” Proponents of the GOP plan say it would increase the domestic energy supply by developing more resources, investing in alternative fuels and offering incentives for better efficiency and conservation, all without placing a greater burden on families, businesses and the economy.
McCaul voted for an amendment to the Cap and Trade legislation that would have created a Manhattan-type project to study energy independence.
The Cap and Trade legislation caps the amount of carbon emissions companies can produce. If a company goes over the limit, it must pay a fee in the form of a carbon “credit”.
Both advocates and opponents of Cap and Trade agree the bill will make it more expensive to produce energy and the consumer will end up paying more.
According to an analysis by the Texas State Comptroller, Texans will see a $1.15 billion increase in their energy prices, which comes to $1,136 per Texas family per year if the legislation passes the Senate. A similar program in Germany increased home energy prices 25 percent and the resulting emissions reduction was found to be a result of lost economic activity.
“Even the President admits this will dramatically increase energy costs. I agree; get ready to pay more,” McCaul said, pointing out that the U.S. Chamber of Commerce, the National Association of Manufacturers and the Farm Bureau all oppose the plan.
Companies that are not able to meet the cap are expected to move their manufacturing facilities overseas to countries with fewer regulations. Some analysts claim the bill will cost $9.4 trillion in the gross domestic product and 2.5 million jobs nationwide. Gasoline prices are expected to increase as much as 77 cents a gallon as industry passes on the cost increase to consumers.
During his 2008 campaign Obama told the San Francisco Chronicle that manufacturers “would have to retrofit their operations. That will cost money. They will pass that money on to consumers.”
McCaul said some of the Texas impacts of Cap and Trade include:
- Rural energy co-ops estimate price increases for customers at 38 percent.
- Texas could lose 135,000-277,000 jobs in the first year and up to 400,000 jobs by 2030.
- Overall, there will be a $1.15 billion increase in energy costs for Texans after subsidies to offset increased costs.
- The American Petroleum Institute predicts the bill will increase gas prices 77 cents over the next decade.
The bill now moves to the Senate where it is expected to spark a renewed debate over its cost and effectiveness.
