US chemical officials warn about climate bill

09 November 2007 23:18  [Source: ICIS news]

WASHINGTON (ICIS news)--US chemical industry officials warned on Friday that pending federal legislation to reduce American industrial emissions of greenhouse gases would have a significant, negative impact on their sector and the broad economy.

 

Jack Gerard, president of the American Chemistry Council (ACC), said in a letter to members of the US Senate environment committee that “Climate policies that have the effect of increasing demand for natural gas - in the absence of new sources of supply - could have significant ramifications, not only in our sector but throughout the US economy."

 

The Senate Committee on Environment and Public Works is considering S-2191, titled America’s Climate Security Act, which would impose reductions on greenhouse-gas (GHG) emissions by electric utilities, chemical and other manufacturing, the transportation sector and industrial and consumer use of natural gas.

 

Chemical industry officials and a broad array of other manufacturers have criticised the bill on grounds that it would put much greater demand on natural gas as a cleaner burning fuel for power generation. The US chemicals industry is heavily dependent on gas as a feedstock and energy source.

 

In his letter on Friday to the committee chairwoman, Senator Barbara Boxer (Democrat-California), and other committee members, Gerard said the bill would make it difficult for his industry to operate and remain profitable in the US. He said it would raise costs for feedstock and on-site energy generation, the price of purchased electricity and the cost of product delivery.

 

He also noted that the bill as drafted would impose energy penalties and costs on US manufacturers who must compete globally but would not ensure similar climate-control sacrifices by other nations.

 

Eight years after enactment, the bill could impose financial penalties on imports from foreign countries that do not have emission-reduction programmes, but Gerard argued that waiting eight years would leave US producers at a competitive disadvantage in the global market during that period.

 

“Due to the bill’s potential impact on energy markets, the economy, our ability to compete in global markets, the uncertainty associated with dedication to enabling technologies and the weak links to actions by other high-emitting nations, we believe modifications to the provisions in this legislation are required,” Gerard said.

 

Most Republicans in Congress are opposed to the Democrat-sponsored climate change bill, and President George Bush has broadly indicated he would veto any bill that imposes energy restrictions on the US economy.

By: Joe Kamalick
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