API Statement on Waxman-Markey Bill

WASHINGTON, May 15, 2009 - The American Petroleum Institute issued the following statement today from President Jack Gerard regarding the Waxman-Markey cap-and-trade proposal:

“The House Energy and Commerce Committee has devoted significant effort to advance an ambitious plan to address the challenge of climate change. Unfortunately, while the proposal is meant to solve a serious environmental challenge and spur growth in our weak economy, its inequitable system of allocations will have a disproportionate adverse impact on consumers and producers of gasoline, diesel fuel, jet fuel, crude oil and natural gas. Those who drive, fly or take the bus or train to work will shoulder a disproportionate burden and this must be rectified. Emission allowances will be distributed inequitably, ultimately imposing greater costs on consumers and producers of oil and gas. According to independent studies, domestic production will decline, increasing reliance on imports. Experts predict the loss of U.S. jobs, including some of the six million related to oil and gas along with many others. While the bill’s goals are admirable, the inequitable allocations would harm America’s economy and diminish our energy security. There is time to get this right. We need to look at all the consequences of the bill, consider the implications on ordinary Americans at a time of economic hardship and come up with an equitable plan that will address global climate change and improve, not weaken, our nation’s energy and economic security. We look forward to seeing further details of the legislation."

Updated: June 1, 2009