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U.S. Rep. Latham: Amendment to prevent raising costs
6/25/2009

FOR IMMEDIATE RELEASE Contact: Fred Love 202-225-5476 fred.love@mail.house.gov

LATHAM WORKS TO PROTECT CONSUMERS FROM CAP & TRADE-INDUCED ENERGY PRICE HIKE

OFFERING LEGISLATIVE AMENDMENT WHICH WOULD KILL POLICY IF IT RAISES ENERGY COSTS

WASHINGTON, DC – Iowa Congressman Tom Latham has announced that he will introduce an amendment to the Waxman-Markey “cap-and-trade” energy bill on Thursday when the U.S. House Rules Committee begins evaluating which amendments it will allow for debate when the bill is considered on the House floor this Friday. Latham’s amendment, if accepted by the committee members, will protect families, businesses and farmers from the higher energy costs that are expected to result from the “cap-and-trade” energy bill working its way through Congress.

The amendment that Congressman Latham will offer would force an automatic repeal of the cap-and-trade law if it is determined that electricity prices are increased in the wake of the new policy being implemented.

“Rep. Henry Waxman, a leading proponent of cap-and-trade, has told Congress and the public that consumers will save hundreds of billions of dollars. I, for one, can’t see how anyone with a light switch in a home or business can avoid higher energy costs if cap-and-trade becomes law,” Congressman Latham said. “My amendment is an insurance policy that protects the financial stability of America’s families, businesses and farmers should the rosy assertions of the authors of this legislation not hold true. My proposal gives us the opportunity to protect consumers and the economy before a failed policy does any real damage. If their rhetoric matches their confidence in the legislation, the Democratic majority will let the 435 Members of the House of Representatives vote on my amendment on behalf of hardworking Americans.”

Under the cap-and-trade energy proposal, the government would limit carbon emissions and require businesses to buy emissions permits, which they could then use or sell to other businesses. Latham’s amendment would cancel the cap-and-trade policy if it is determined that the average price of electricity sold to users in one or more Census Divisions in the United States has increased as a result of implementation of the legislation. This legislation is considered by many to be a national energy tax that has the potential to cause American jobs to be shipped overseas in the middle of one of the deepest recessions in decades.

The cap-and –trade energy tax proposal would be especially painful in Iowa because of the state’s dependence on coal as an energy source. Major Iowa utility companies have predicted that the cap-and-trade proposal could raise energy bills in Iowa by an average of 25 percent. The average American family’s energy bill would jump by more than $1,240, according to many energy analysts.

“Experts across the country are predicting that cap-and-trade will financially hurt American families and small businesses by driving up their energy bills,” Congressman Latham said. “My amendment would establish a shut-off valve to protect Americans if those predictions come true. I urge my colleagues to consider this common-sense proposal.”

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