ACTION ALERT: Demonstration Against McCain Cap and Trade Policy

On MONDAY, MAY 12, John McCain is coming to Portland to give a speech at 5PM at the Airport Sheraton. Americans for Prosperity (AFP) has a obtained a permit to stage a demonstration with a maximum of 21 people. The object of the demonstration is to get McCain to withdraw his support of the Lieberman/Warner climate change bill.

At 4:15p on MONDAY, MAY 12, we will be meet in front of the restaurant at the Airport Shilo (11707 NE Airport Way, Portland , 97220) where we have permission to park. Demonstrators will be shuttled to the Airport Sheraton, where we will hold our demonstration and where McCain is speaking. After 5:30, AFP will treat everyone to free pizza. It should be a lot of fun. AFP is making signs. All you have to do is show up in front of the Airport Shilo .

The American Council for Capital Formation (www.accf.org), has done a study on the impact the Lieberman/Warner bill will have on Oregon. They estimate 161,000 jobs would be lost by 2020 because of the legislation. Additionally, Oregon households would see their relative spending power drop by $4,567, energy prices would rise dramatically, and productivity would be impaired. Lieberman/Warner is nothing but a huge tax on the American economy and the Oregon economy.

Here is some information from ACCF about the bill:

Oregon Costs to the State under the Lieberman/Warner Proposed Legislation to Limit Greenhouse Gas Emissions(1)

This study analyzes the economic costs of the Lieberman/Warner Climate Security Act (S.2191 or L/W bill) at the state and household level for the citizens of Oregon. The L/W bill would enforce a nationwide cap and trade program for the emissions of greenhouse gases (GHGs). It would reduce GHG emissions covered by L/W to 4,886 MMTCO2 by 2020 and then to 1,718 MMTCO2 by 2050. CRA estimates this to be approximately a 27% reduction from 2005 levels by 2020 for those sectors of the economy covered by the bill, and a 74% reduction by 2050. Covered emissions are assumed to include all CO2 emissions from combustion of fossil fuels in the United States, plus non-CO2 GHG emissions included in the L/W cap. The price of carbon permits could reach $74 per metric ton of CO2 by 2020 and could increase to $88 by 2030. (2)

Higher energy costs would reduce jobs
Oregon would lose 161,000 jobs in 2020 and 153,000 jobs by 2050 relative to the baseline forecast (in other words, what would happen without cap and trade or carbon tax legislation).

Household income falls as energy and other prices rise
Costs per household rise over time as emission caps become more difficult to meet. Relative to its current real spending power (year 2010), an average household in Oregon would lose $4,567 per year in 2020, rising to $4,825 by 2050.

Energy prices rise as the additional cost of carbon emissions directly impacts the prices paid by consumers for energy. Oregon consumers will have to pay 45% more for natural gas and 26% more for retail gasoline by 2020. By the year 2050, those prices will be twice those of the baseline. The wholesale price of electricity rises by 97% relative to the baseline in 2020. Households and businesses will pay more at the retail level.

Why do electricity prices rise?
Electricity prices rise between 2010 and 2020 for two primary reasons: 1) the L/W bill adds a cost for emitting CO2, and 2) there is a related shift away from coal-fired generation (94% decrease by 2020) to higher cost electricity generating sources.

Economic growth would slow
The loss in the gross state product (GSP) causes Oregon?s economy to grow more slowly over time, falling to 8.8% below the baseline forecast in 2020. GSP will remain well below baseline levels after 2020 unless new, affordable GHG-control technologies become available over time.

Most industries suffer losses in production
The output of goods and services declines in almost all of Oregon's industries. The electricity sector experiences a 23% decline in output by 2020. One of Oregon?s major industries, manufacturing, will see increases in fuel and hence transportation costs, and production will fall 5% by 2020 relative to the baseline. Production from energy intensive sectors will decrease by 7.9% by 2020.

(1) These are preliminary results using the same MRN-NEEM model that Dr. Anne Smith used as the basis of her November 8, 2007 testimony to the Senate EPW Committee concerning the costs and impacts of S.2191. The results reported here reflect provisions of S.2191 as it was reported out of the EPW Committee; Dr. Smith?s testimony was based on S.2191 as originally introduced. For more information on the model, see http://www.crai.com/p...
(2) All dollar figures in this summary are presented in constant 2007 dollars.