Impact of Carbon Caps on the U.S. Economy and Energy Investments

American Council for Capital Formation
June 5, 2003

(PDF)

My name is Margo Thorning and I am pleased to present this testimony to the Senate Environment and Public Works Committee, Subcommittee on Clean Air, Climate Change, and Nuclear Safety.

The American Council for Capital Formation represents a broad cross-section of the American business community, including the manufacturing and financial sectors, Fortune 500 companies and smaller firms, investors, and associations from all sectors of the economy. Our distinguished board of directors includes cabinet members of prior Republican and Democratic administrations, former members of Congress, prominent business leaders, and public finance and environmental policy experts.

The ACCF is celebrating nearly 30 years of leadership in advocating tax, regulatory, environmental, and trade policies to increase U.S. economic growth and environmental quality. We commend Chairman

Voinovich and his committee for their focus on positive changes to the Clean Air Act as contained in the Bush Administration’s Clear Skies proposal. The Clear Skies proposal calls for reductions in SO2, nitrous oxides (NOX), and mercury, but does not regulate CO2 emissions. The focus of my testimony will be on the potential impact of the Clear Skies Act of 2003 and proposals to cap power plant carbon emissions, such as those put forward by Senator Jeffords, on the financial health and vitality of the utility sector. Other proposals include caps on emissions for other sectors of the economy.

Read the Full Testimony (PDF)