Statement

ACC: As House Climate Bill Heads to Senate, Competitiveness of Energy-Intensive Manufacturers Remains Key Priority

Bill Includes Some Improvements; Continued Discussion Needed

ARLINGTON, VA (June 26, 2009) – Today by a vote of 219-212 the U.S. House of Representatives approved “The American Clean Energy and Security Act of 2009 (H.R. 2454).”  Additional information is available at http://energycommerce.house.gov/

American Chemistry Council (ACC) President and CEO Cal Dooley issued the following statement:

“We believe there is more work to do on the bill passed by the House today.  We are keenly aware of critical issues such as the impact of the emission allowance provisions on the global competitiveness of energy-intensive U.S. industries.  As the bill moves to the Senate, we believe further discussion and changes are required to ensure a level playing field for American manufacturers who compete in the global economy.  For example, emission allowance provisions for energy-intensive industries are inadequate to maintain competitiveness and protect high-paying manufacturing jobs in the U.S.

“Provisions related to the emissions allowance allocation and schedule are at the heart of climate policy, as they largely determine whether the legislation succeeds in facilitating the nation’s transition to a lower-emission economy and in preventing the ‘leakage’ of U.S. industrial production, jobs and greenhouse gas emissions to other countries.  The unfortunate result would be a net increase in global emissions.  We look forward to continued discussion in the Senate about these vital issues affecting efforts to reduce greenhouse gas emission and the U.S. economy.

“The legislation does include some improvements over past versions, indicating some thoughtful consideration of the challenges facing energy-intensive U.S. manufacturers.  For example, the bill has a lower emission reduction target/timetable than earlier versions of the bill, recognizes that feedstock uses of fossil fuels do not create emissions and boosts the role of energy efficiency.  However, we believe more work remains to be done.  These changes must be retained in the Senate version of the bill.”

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