Sen. Cornyn: TPPF Report Confirms Worst Fears About

In: All News   Posted 02/18/2010

HOUSTON—U.S. Sen. John Cornyn, R-Texas, today joined the Texas Public Policy Foundation (TPPF) in announcing the findings of critical new research on the severe impact federal climate change, or cap-and-trade, legislation would have on the Texas economy. The report examines the Texas-specific impacts of pending climate change legislation, including the effect it would have on various Texas industries, jobs, energy prices and the economy. The report models the economic impact of H.R. 2454, the Waxman/Markey climate change legislation approved by the U.S. House last year. Similar legislation is pending in the U.S. Senate. “Through their rigorous analysis, TPPF has confirmed my worst fears about cap-and-trade – indicating it would kill close to 200,000 Texas jobs, raise power bills for the average Texas family by 54 percent, and slash our state’s economy by up to $40 billion,” Sen. Cornyn said. “TPPF has reached the same conclusion that Texas Comptroller Susan Combs did last year: Cap-and-trade would devastate our state’s economy and destroy hundreds of thousands of jobs.”“I will oppose cap-and-trade in the Senate and will continue to look to Texas ideas and initiatives for better alternatives to cap-and-trade,” he also added. “We can and should reduce our dependence on foreign oil by prioritizing the production of existing resources here at home and encouraging private investment in energy technologies like next-generation biofuels, the recovery of natural gas from shale, and in wind, solar, and nuclear power.”Snapshot of TPPF Report: Texas Manufacturing Hit Hard• The impact of cap-and-trade legislation like Waxman/Markey is to force the substitution of more expensive energy for cheaper fossil fuel energy. • Major manufacturing sectors in Texas will bear the brunt of higher energy prices due to the restrictive cap placed on greenhouse gases.• Employment in key manufacturing sectors, e.g. chemical products and fabricated metal, would see the greatest decline relative to the baseline forecast. Economic Impact of Climate Change Legislation• Without commercially available, cost-efficient carbon control technology, Texas’ electricity prices for a typical household could be 54 percent higher in 2030 under the Waxman/Markey bill.• Gross state product will decline $30-$40 billion by 2030. • Texas will see a reduction in job growth; there will be 144,597 to 196,928 fewer jobs in 2030. • Disposable income will fall by an average of $612 to $1,103 in 2030. Low-income families and the elderly will spend a higher proportion of their income on energy.Role of Industries in Economy/Jobs • Texas is the leading oil and gas producing state and is responsible for approximately 22 percent of total U.S. production of crude oil and 30 percent of total U.S. natural gas production. • The industry directly or indirectly supported 7.8 million jobs at the national level and 1.8 million jobs in Texas in 2007. The industry’s total value-added contribution was almost $1 trillion nationally and $293 billion in Texas for the same year.• Over the 1998-2008 period, total employment has grown by 25 percent in Texas, substantially faster than the 14 percent increase for the U.S. as a whole. Sen. Cornyn serves on the Finance, Judiciary, Agriculture and Budget Committees. He serves as the top Republican on the Judiciary Committee’s Immigration, Refugees and Border Security subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.