WASHINGTON – The House of Representatives on Friday narrowly approved the American Clean Energy and Security Act (H.R. 2454) by a vote of 219 – 212. This legislation, commonly referred to as the climate change cap and trade bill, is a major priority for President Obama and House Speaker Nancy Pelosi and now proceeds to the Senate where alternative legislation is being crafted. In the vote, 44 Democrats voted against the bill, while 8 Republicans voted for it. Review the roll call to see how your representative voted.
On Friday, NACS Daily called upon its readers to contact their legislators and express opposition to this bill, which NACS believes would put the petroleum industry at a significant disadvantage under future regulations. This challenge stems from the bill’s allocations of emissions allowances to various industries. In a clear attempt to wean the nation off crude oil-based products, the bill provides the oil and gas industry with a minimum number of emissions allowances, far below the amount necessary for the industry to reach compliance without exceptional cost. Meanwhile, other industries, such as coal, received significant allowances in exchange for the political support of certain members of Congress.
Last week, NACS sent a letter to Congress urging it to abandon legislation that picks winners and losers and poses a significant economic risk to convenience store customers. On Friday, NACS reach out directly to dozens of representatives whose position on the bill was not considered finalized in an effort to convince them to vote “no.” NACS reminded these members of the distress $4.00 gasoline caused their constituents last summer and cautioned them against the potential effect this legislation would have on the cost of gasoline and diesel fuel in the future. The results of this effort were mixed, with a slight majority of these representatives voting against the bill.
NACS is extremely concerned that Congress will impose a regulatory scheme on the petroleum industry that will increase the cost of refining and force refiners to reduce production to comply with the requirements. This will heavily influence the cost of fuel to convenience stores and their customers. Further, NACS is concerned that if this does occur, Congress will seek to address public anxiety with energy prices and pursue further regulations against the industry to control prices.
Consequently, NACS will continue to express its concerns to the Senate. Given the narrow approval in the House, it is uncertain if the Senate will consider legislation that is similar in nature. It is widely reported in Washington that the Senate will not proceed to climate legislation until this fall, after conclusion of appropriations and healthcare reform.