Issues & Facts

Cap and Trade is a Bad Policy for American Businesses and Families

H.R. 2454, the American Clean Energy and Security Act, would establish a Cap and Trade scheme in an attempt to reduce greenhouse gas emissions, establish an absolute cap on emissions, and allow trading of emissions permits, or “allowances,” through a trading market. This legislation would mean higher prices and an insecure future for all Americans.

The chief problems with this legislation are that it:

  • Intentionally increases energy costs and reduces access to American-produced energy—which will lead to direct and indirect cost increases for all American homes, families, and businesses;
  • Will lead to greater dependence on foreign sources of oil and natural gas as the cost of domestic energy skyrockets;
  • Will reduce American competitiveness and threaten American jobs and agriculture, when we are already struggling to come out of the current recession;
  • Will do little, if anything, to benefit the environment, as some of the world’s leading contributors to carbon emissions—nations like China, India, and Russia—have indicated they will not participate in any scheme that will limit their economic growth.

Find out more about the American Clean Energy and Security Act here.

Not sure how much cap and trade legislation will cost you and your family? You can now use the Cap and Trade calculator to determine how much it will cost provided at the link below:




Cap and Trade Issues

Recent Studies on Cap and Trade
Top 10 Things You Should Know about Cap and Trade
Agriculture and Land Use
Consumer Cost Increases
Regulatory Nightmare
Geographic Imbalance
International Competitiveness

Recent Studies on Cap and Trade

Waxman-Markey (HR 2454) Refining Sector Impact Assessment - American Petroleum Institute (08/21/09)
Economic Impact of the Waxman-Markey American Clean Energy and Security Act - American Council for Capital Formation/National Association of Manufacturers (08/12/09)
The Economic Consequences of Waxman-Markey: An Analysis of the American Clean Energy and Security Act of 2009 - The Heritage Foundation (08/06/09)
Impact on the Economy of the American Clean Energy Act - National Black Chamber of Commerce (August 2009)
CBO Grossly Underestimates Cost of Cap and Trade - The Heritage Foundation (06/24/09)

The Top 10 Things You Should Know about Cap and Trade

Find out the Top 10 facts about the American Clean Energy and Security Act and how this legislation is bad for American workers, families, farmers, and small businesses, as well as how it will result in the loss of U.S.-based industry, jobs, and revenue.

Agriculture and Land Use

If passed, the American Clean Energy and Security Act will harm America’s agricultural industry and rural communities across the country.

Pelosi's Cap-and-Trade Energy Tax: Skyrocketing Costs, Disappearing Jobs, Struggling Economy - All for Nothing? - Republican Policy Committee (07/23/09)
Waxman-Markey: Homeowners, Small Businesses, and Farmers Hit the Hardest - The Heritage Foundation (07/21/09)
Statement by Bob Stallman Regarding Climate Change Legislation - President, American Farm Bureau (06/24/09)
Carbon Offset Program Won’t Offset Farmers’ Lost Income from Cap and Trade – The Heritage Foundation (06/22/09)

Consumer Cost Increases

This legislation will significantly increase the cost of energy for American consumers and businesses. Since energy is used in the production and distribution of just about everything, the price of all goods and services will also rise dramatically.

Energy Market and Economic Impacts of H.R. 2454 - U.S. Department of Energy (August 2009)
56% Don't Want to Pay More to Fight Global Warming - Rasmussen Reports (07/01/09)
Statement by Jack Gerard on CBO’s Cost Estimate - President, American Petroleum Institute (06/08/09)
CBO Exchange on Cap and Trade Proposal - CBO Director Elmendorf comments on Cap and Trade to Ways and Means Committee (03/26/09)

Find out how Cap and Trade legislation would impact the price you pay for energy, goods and services, housing, and more, by visiting the Household Cap-and-Trade Burden Calculator .

Regulatory Nightmare

This bill does nothing to ensure the production of renewable or alternative energy to make up for the reduction in fossil fuel usage. Rather, it would impose massive regulation and new mandates on the American public. View Chart .

Geographic Imbalance

The American Clean Energy and Security Act would disproportionately affect different regions of the country. Families and businesses located in the Midwest, Mountain West, and the South will be disproportionally burdened by this legislation.

To find out how coal usage varies from region to region, visit the American Coalition for Clean Coal Electricity
Road Map: Climate Change Will be Senate's Next Battle Royal - Roll Call (07/21/09)

International Competitiveness

The American Clean Energy and Security Act puts American businesses at a disadvantage to their foreign competitors, as many other countries do not enforce similar standards. Rather than significantly reducing global greenhouse gasses, the bill simply weakens our ability to compete.

Cap and Trade Overview - National Federation of Small Business

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