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U.S. Manufacturers Likely to Face Higher Electricity Costs

WASHINGTON, D.C. (May 16, 2012) - The American Chemistry Council (ACC) issued the following statement in advance of Thursday's hearing in the Senate Energy and Natural Resources Committee concerning the Clean Energy Standard Act of 2012 (CESA), S. 2146 .

"We have several concerns with this bill, most notably the absence of energy efficiency ," said Cal Dooley , ACC President and CEO. "Reduced energy demand is the cleanest energy, yet efficiency improvements at electric utilities or manufacturing facilities do not earn credits toward compliance. We urge Congress to pass the Energy Savings and Industrial Competitiveness Act (S. 1000), introduced by Senators Shaheen and Portman, to achieve significant energy savings across the economy.

"Unfortunately, CESA falls short on domestic energy diversity. It discourages the use of coal from the start, and natural gas in later years. These energy sources are critical to America's energy portfolio. Coal-dependent regions and U.S. manufacturers could be hurt as electricity rates rise. We are glad the bill qualifies new combined heat and power (CHP) for the standard-recognition of its importance to a clean energy future. The bill also qualifies energy recovery technologies , allowing the capture of high-BTU energy contained in non-recycled plastics and other materials. But more can and should done: CHP and energy recovery must be put on equal footing with other clean energy technologies.

"America should focus on developing an  'all of the above' energy strategy that capitalizes on all domestic energy resources; improves energy efficiency in homes, buildings and industrial facilities; and uses economically sound approaches to encourage the adoption of diverse energy sources."


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