Analysis of Climate Bill underscores impact on manufacturers.
Press Release Summary:
Commenting on U.S. EIA's analysis of Lieberman-Warner climate change bill, NAM said study underscores bill's sobering economic and social costs, particularly the hike in future natural gas prices. According to EIA, price of natural gas would nearly double from $11 per MMBTU to $19 per MMBTU under Lieberman-Warner climate change bill. Joint study with ACCF found that bill would also reduce U.S. gross domestic product by up to $210 billion per year by 2020.
Original Press Release:
NAM says EIA Analysis Of Climate Bill Underscores Impact On Manufacturers
EIA ANALYSIS POINTS TO LIEBERMAN-WARNER CLIMATE CHANGE BILL'S DRAMATIC IMPACT ON MANUFACTURERS
Manufacturing is the Most Natural Gas Intensive Sector, Says NAM
WASHINGTON, D.C., April 29, 2008 - Commenting today on the U.S. Energy Information Administration's (EIA) analysis of the Lieberman-Warner climate change bill (S. 2191), the National Association of Manufacturers (NAM) said the new study underscores the bill's sobering economic and social costs, particularly the hike in future natural gas prices.
"Natural gas prices are the linchpin for manufacturers in any proposed climate change solution," said NAM President and CEO John Engler. "Manufacturers are the most natural gas intensive sector, and affordable natural gas is essential to the long-term competitiveness of manufacturing and the U.S. economy. According to the EIA, the price of natural gas would nearly double from $11 per MMBTU today to $19 per MMBTU under the Lieberman-Warner climate change bill. Clearly, the proposed legislation now before Congress runs the risk of doing more economic harm than environmental good," he said.
"Similarly, the NAM commissioned a joint study with the American Council for Capital Formation (ACCF) which found that the Lieberman-Warner climate change bill would reduce U.S. gross domestic product by up to $210 billion per year by 2020 -- imposing more economic damage than the housing financial crisis each and every year-- including employment losses of up to 1.8 million jobs in 2020. With the nation on the brink of recession, federal climate change policies that would further slow the economy in return for indeterminate benefits are ill-advised.
"While Congress considers legislation that would drive up the cost of energy, it has ignored America's vast domestic resources that remain untapped due to overly-restrictive policies," Engler continued. "Should the EIA study prove correct and natural gas prices reach $19 per MMBTU, more than 70 percent higher than today, it would have a devastating impact on both consumers and business. Many people would be unable to heat their homes in the winter and many businesses would have to move production offshore, taking jobs away.
"We can not continue to propose increases in the price of natural gas while failing to expand domestic gas exploration and increased investment in nuclear energy technology," Engler concluded.
The NAM/ACCF analysis of S. 2191 is available at nam.org/climatechangereport.
1331 Pennsylvania Avenue, NW Suite 600 Washington, DC 20004-1790 www.nam.org
CONTACTS:
LAURA NARVAIZ (202) 637-3104
KEITH MCCOY (202) 637-3175
