Representative Dahlkemper: Climate Change Bill Places Disproportionate Burden On Northwestern PA

Press Release

Citing the disproportionately negative impact on families, jobs, and the industry of Pennsylvania's 3rd Congressional District, U.S.

Congresswoman Kathy Dahlkemper (PA-3) cast her vote in opposition to the American Clean Energy and Security Act of 2009 (ACES), which passed the House of Representatives today.

When weighing what was a particularly difficult decision for her, Rep. Dahlkemper actively listened to and spoke with Pennsylvanians, small business owners, manufacturers, and farmers across the district and participated in hearings on the Small Business, Science & Technology, and Agriculture committees.

"I believe that global climate change remains one of the most serious concerns facing the United States and the world today," said Congresswoman Dahlkemper. "After struggling with this decision, I ultimately had to do what was best for those I represent, especially in the midst of a severe recession. While it is critical that our nation transition away from fossil fuels, I could not support a bill that places a disproportionate burden on Northwestern Pennsylvanians as we move toward that goal."

While the legislation included important concessions that the lawmaker had requested, specifically a host of agriculture issues, Rep. Dahlkemper cited the following concerns with the overarching legislation:

Potential Unfair Costs to PA-03 Families

"Pennsylvania's families are struggling to cope with rising gas and grocery prices, skyrocketing health care costs, increasing utility bills, a proposed state tax increase, and continued high levels of unemployment during the worst economic downturn since the Great Depression," said Rep. Dahlkemper. "While I believe it is important to address climate change and our dependence on foreign oil, these hardworking families simply cannot afford the additional costs that this legislation would impose on them."

Additional Burden A Congressional Budget Office study reported that ACES would mean an estimated national cost-per-household increase of $175 per year.
State Utility Cap Expiration District households and industries are already bracing for steep increases in electricity bills due to the December 31, 2010 expiration of current state-wide rate caps. One study has projected electric rates will rise 49% to 80% for households and 71% to 122% for industry.
State Income Tax Increase District households and industries are already bracing for an announced increase in the state income tax rate projected to be $4.8 billion in 2010. For a taxpayer earning $50,000 per year, that means $250 more annually.

Potential to Hurt Job Creation and Retention in PA-03

"After suffering decades of outsourcing, plant closings and diminishing employment opportunities, it is simply not fair to single out the jobs that so many Northwestern Pennsylvanian families rely on in the effort to tackle global climate change," said Rep. Dahlkemper.

Loss of Manufacturing Jobs A Congressional Budget Office study indicated that certain regions will be disproportionately affected by ACES, displacing local and regional jobs in sectors of the economy that produce energy and energy-intensive goods and services. Pennsylvania's 3rd Congressional District is a manufacturing district, with over 54,000 families relying on manufacturing jobs.

Potential to Hurt Industry in PA-03

"Heavy manufacturing and steel production are crucial industries to the economic vitality, jobs and families of Northwestern Pennsylvania," said Rep. Dahlkemper. "However, the legislation will leave these jobs vulnerable to countries like China and India that are not subject to cap-and-trade laws. This is a shortcoming of ACES that will need to be addressed to fairly support the industries that our entire nation has an interest in preserving."

The Congressional Budget Office reports that large segments of the U.S. economy either do not face significant foreign competition or involve trade with countries that already have a cap-and-trade program, like the European Union. However, many manufacturing industries, such as steel, will be placed at an unfair disadvantage from countries that do not face the costs of such a system.

KEY CONCESSIONS BY REP. DAHLKEMPER

While Rep. Dahlkemper ultimately voted against the legislation, she was pleased that a number of issues within the legislation were resolved for the biomass industry and Pennsylvania farmers.

Biomass

In the original version of the legislation, the Environmental Protection Agency (EPA) would be able to penalize biofuels producers by requiring that greenhouse gas emissions from international indirect land use changes be charged against biofuels' eligibility for the Renewable Fuel Standard, a critical program for the producers' bottom lines. Recently, in a hearing in her capacity as Chairwoman of the Small Business's Subcommittee on Regulations and Health Care, Dahlkemper highlighted the issues associate with using an inexact science to penalize biofuels companies. ACES will prohibit EPA from continuing to impose this penalty, requiring a five year independent study to determine the efficacy of this practice.

Agriculture Emissions

Particularly important to Northwestern Pennsylvania's dairy farmers and fruit and vegetable growers, the legislation clarifies that greenhouse-gas emissions from agriculture will not be regulated under the emissions controls. Instead, the bill allows farmers, ranchers, and forestland owners to work with the United States Department of Agriculture to design and implement targeted plans to reduce or avoid greenhouse gas emissions and sequester carbon on their operations.

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