WASHINGTON, DC – Today the House Small Business Committee held a full committee hearing examining the impact of climate change legislation on small businesses and family farms.  The hearing follows the recent introduction of “The American Clean Energy and Security Act of 2009” by Rep. Henry A. Waxman (D-Calif.), and Rep. Edward J. Markey (D-Mass.). 

The debate over the economic impact of this climate change legislation, commonly referred to as “cap and trade,” comes at a time when small businesses face mounting obstacles in light of difficult times.   With many small businesses struggling to make ends meet, climate change legislation presents a new barrier to economic recovery.   A study by the Massachusetts Institute of Technology estimates a $3,128 per household tax increase.

Testimony from Lawrence W. Kavanagh, Vice President of the American Iron and Steel Institute (AISI), cited economic projections from the National Commission on Energy Policy that show higher energy costs will have a “decimating impact” on manufacturing companies and their suppliers.  If “cap and trade” legislation is enacted, higher energy costs will reduce the ability of American small businesses to compete with their foreign competition. 

 In response to a direct question from Rep. Blaine Luetkemeyer (R-Missouri), Roger Johnson of the National Farmers Union confirmed the agriculture industry will also be at a competitive disadvantage because of “cap and trade” legislation.  Mr. Johnson pointed to “higher costs of fuel, energy and fertilizer” as presenting challenges to American farmers.    

Mr. Graves concluded by saying, “The timing of climate change legislation could not be worse.  I think it’s important that we take a very calculated approach towards addressing this issue.  Dramatic new requirements for industry can have devastating effects on the economy both for business and consumers.”

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