Statement from API President Jack Gerard on CBO's Cost Estimate on the American Clean Energy and Security Act of 2009

WASHINGTON, June 8, 2009 – The American Petroleum Institute issued the following statement today from President Jack Gerard regarding the Congressional Budget Office cost estimate on The American Clean Energy and Security Act of 2009:

“The study confirms the bill discriminates against ordinary Americans who depend on cars, trucks, trains and airplanes and will be massively costly. The $846 billion price tag on emission allowances – borne disproportionately by oil consumers – will drive up costs of producing and refining gasoline, diesel and other fuel products while doing nothing to protect fuel consumers, including American families, trucking, the airlines, the construction industry and many other businesses that rely on oil to make or transport products. Based on allowance costs in the study, cost impacts could be as much as 77 cents per gallon for gasoline, 83 cents per gallon for jet fuel, and 88 cents for diesel fuel. This is what happens when market-based regulation is abandoned in favor of picking winners and losers. Putting most of the burden on one sector also helps explain why the legislation promises to be a job killer.”

Updated: June 8, 2009