Rep. Culberson Spreads Misinformation On Cap-And-Trade

Rep. Culberson Falsely Claims ACES Act Could Cost Texas $20 Billion

Rep. Culberson: "The ACES Act is more restrictive and would cause even greater economic damage.  The cost to Texas ratepayers alone could reach $20 billion in added electricity costs, which is an increase of over $600 per year in utility bills, according to a study commissioned by the Electric Reliability Council of Texas." [TheHill.com, 5/20/09]

A Clean Energy Standard Would Save Texas $21.1 Billion In Residential, Commercial And Industrial Savings.  According to the Center for American Progress: "A national renewable electricity standard, a key piece of the clean energy legislation currently before Congress, would save households and businesses in every state billions of dollars in electricity and natural gas bills... The numbers come from the Union of Concerned Scientists, who earlier this year analyzed a renewable electricity standard that would aim to have 25 percent of our electricity come from renewable sources by 2025. They found that this standard would save families and businesses $95 billion in electricity and natural gas bills through 2030 and spur new investments and hundreds of thousands of new clean-energy jobs." The study found that Texas in particular would save $693 per household and $21.1 billion in residential, commercial and industrial savings over 20 years. [Center for American Progress, 5/19/09]

Rep. Culberson Falsely Claims Cap-And-Trade Is Bad For The Economy And Consumers

Rep. Culberson: "the staggering costs of a cap and trade program will stifle our domestic energy and manufacturing sectors and result in major rate increases for consumers." [TheHill.com, 5/20/09]

Texas Would Benefit From Cap-And-Trade.   In 2007, the American Council on Capital Formation (ACCF) and the National Association of Manufacturers (NAM) commissioned a report on "the effects of a cap-and-trade law similar to that proposed by the Obama administration" using a "worst-case scenario...what they term the 'high-cost case' forecast." In his op-ed, Rep. Barton touted NAM's opposition to cap-and-trade because of its high cost. But an analysis of the ACCF/NAM report by the Political Economy Research Institute at the University of Massachusetts at Amherst found that under cap-and-trade, Rep. Barton's home state of Texas "would experience healthy economic growth."  [Political Economy Research Institute, "State-by-State Analysis: High-Cost Case Forecasts of U.S. Cap-and-Trade Legislation," accessed 4/21/09]

With Implementation Of A Carbon Cap Program:

• Texas' GDP Would Increase 87% By 2030. According to the Political Economy Research Institute at the University of Massachusetts at Amherst: "In 2007, Texas' level of total economic output-its GDP-was $1.14 trillion. According to the ACCF/NAM high-cost case forecast under a carbon cap program, as of 2030, Texas' GDP will have risen to $2.14 trillion, an increase of 87 percent." [Political Economy Research Institute, "State-by-State Analysis: High-Cost Case Forecasts of U.S. Cap-and-Trade Legislation," accessed 4/21/09]

• Texans' Average Income Would Increase 34% By 2030. According to the Political Economy Research Institute at the University of Massachusetts at Amherst: "In 2007, the average income for residents of Texas (GDP per capita) was $47,894. According to the ACCF/NAM high-cost case with a carbon cap, in 2030, the average income for Texas residents will be$64,257 (Figure 2), 34 percent higher than 2007." [Political Economy Research Institute, "State-by-State Analysis: High-Cost Case Forecasts of U.S. Cap-and-Trade Legislation," accessed 4/21/09]

• Texas' Employment Would Increase 11.3% By 2030, Even Without Obama Job Program. According to the Political Economy Research Institute at the University of Massachusetts at Amherst: "In 2007, about 10.97 million people were employed in Texas. Under the ACCF/NAM high-cost case forecast, 12.21 million people will have jobs in 2030, an 11.3 percent increase. This forecast takes no account of the increased job opportunities that will result through investments in energy efficiency and renewable energy such as those included in the Obama stimulus program." [Political Economy Research Institute, "State-by-State Analysis: High-Cost Case Forecasts of U.S. Cap-and-Trade Legislation," accessed 4/21/09; emphasis added]