API: Senate’s climate change bill would create havoc in refining industry, drive up fuel prices

Climate change legislation was the subject of a hearing before the Senate Environment and Public Works Committee on Oct. 27, and one thing is clear: the American Petroleum Institute doesn’t like the proposed bill.

The Clean Energy Jobs and American Power Act is also known as the Kerry-Boxer climate bill, after its sponsors, Sen. John Kerry (D-Mass.) and Sen. Barbara Boxer (D-Calif.). It proposes reducing greenhouse gas emissions through a cap and trade system. So does the House version of the bill, the American Clean Energy and Security Act of 2009. The House passed its bill in June. 

The American Petroleum Institute issued the following statement this week by its president, Jack Gerard:

 ‘Like the House climate change bill, the Senate’s Kerry-Boxer bill would hurt our economy by killing American jobs, increasing energy costs and undermining our nation’s energy security.

‘The cost of Kerry-Boxer is even more than the House bill, and punishes consumers and businesses that depend on transportation fuels. Anyone who drives, rides a bus, flies on an airplane or ships goods to market is likely to see their costs rise. An analysis of the House bill by the federal government’s Energy Information Administration said it could push gasoline prices above $5 a gallon and diesel prices above $5.60 a gallon.

‘Using a flawed EPA analysis of the House bill, proponents argue Kerry-Boxer will only cost Americans 30 cents a day. The truth is, according to the Energy Information Administration, total costs for the average U.S. household could increase up to $1,870 in 2030.

‘The Kerry-Boxer bill is a giant tax that could kill more than 2 million net jobs, even after accounting for the creation of green jobs, according to multiple studies. With our economy struggling to recover from a historical recession, now is not the time to enact job-killing legislation.            

‘The Kerry-Boxer bill would undermine America’s energy security. Under the bill, many refining and related jobs would likely move offshore to countries that have lower costs because they do not have similar climate change laws. Americans would be more dependent on foreign sources of gasoline and other refined products. More than 9 million Americans depend on the oil and natural gas industry for their jobs. We should not be sending any of these jobs overseas.”