Energy bill called bad for state 

The Baton Rouge Advocate
By: Gerard Shields
Advocate Washington bureau
Published: Apr 2, 2009 - Page: 13A

WASHINGTON – Republican Louisiana congressional delegation members say a new effort by the Obama administration to curtail carbon emissions could have a “devastating” effect on oil and gas states such as Louisiana.

Leaders of the U.S. House Energy and Commerce Committee introduced draft legislation Tuesday that would institute what is known as cap-and-trade.

Oil, chemical and coal-fired plants unable to meet national emission regulations can purchase permits from the federal government that are left over from plants that operate under the standards.

U.S. Rep. Steve Scalise, R-Metairie, sits on the House committee and said the costs of purchasing the permits will be passed on to consumers, who will see greater utility and energy costs.

Republicans are calling the measure cap-and-tax.

“This would be devastating to any energy-producing state such as Louisiana,” Scalise said.

The 650-page bill was introduced by committee Chairman Henry Waxman, D-Calif., and  Rep. Ed Markey, D-Mass., as part of a broader energy policy by the administration.

The Obama energy proposals, including the cap-and-trade measure, is anticipated to raise $640 billion for the federal government. Obama is considering using the revenue to pay for middle-class tax cuts.

Scalise and other Louisiana House Republicans say any tax break will be offset by increased energy costs that could amount to $3,000 annually for families.

Obama will have to steer the legislation past members from energy-producing states, such as Louisiana and Northeast coal states, many who rely on the commodity for their electric plants.

“The American public is not going to support a $640 billion tax on energy that is going to be passed on to consumers,” Scalise said.

House Democrats have a 78-vote edge over their Republican counterparts, giving Obama a significant advantage to getting the measure passed.

The energy proposals are putting two Louisiana Democrats in a tough spot.

Rep. Charles “Charlie” Melancon, D-Napoleonville, sits on the House committee and is considered a swing vote on the measure. Melancon declined to comment on the legislation, saying he is still reviewing it.

Sen. Mary Landrieu, D-La., voted last year to block a similar climate change bill from proceeding through the Senate.

Landrieu, a moderate Democrat, is also being closely watched on the energy debate.

A chief concern with the proposal is that businesses will flee to countries without the stricter cap-and-trade provisions, said Dan Borne, head of the Louisiana Chemical Association, in Baton Rouge, which represents the state’s 90 plants.

“Place yourself in the board rooms of major manufacturers throughout the world and ask yourself whether you would put your next investment dollar in the United States,” Borne said Wednesday.

“If we don’t change the momentum that is washing us offshore, it will be ‘Bye, Bye Miss American Pie,’ ” Borne said.