Michigan is a representative of a larger trend. Since 1998 the U.S. has lost 5.4 million jobs in the manufacturing sector.

A new study by the Economic Policy Institute says carbon-intensive industries employing 4.1 million workers will be at risk under a climate bill. IECA agrees.

The Senator recognizes that thus far, cap-and-trade has been the tool of choice by policymakers seeking to reduce GHG emissions. Both the Waxman-Markey and Kerry-Boxer bills use cap-and-trade as the prime mechanism for reducing emissions.

However, this policy does not ensure a reduction of emissions worldwide, does not optimally incentivize clean energy technology and yet is certain to incur a cost on the economy.

The Industrial Energy Consumers of America has urged Congress to address GHG emission reductions without using cap and trade policy. View our letter to congress

We believe that there is still progress to be made in the way of energy efficiency:

Energy efficiency should be allowed to compete head to head with renewable energy

Irene Kowalczyk, MWV, Testifies Before Senate Subcommittee on Energy on Barriers To Greater Use of Energy Efficient Combined Heat and Power
“Increasing CHP from 9 to 20 percent of US supply avoids 60 percent of US CO2 emissions growth.”

And, that there are more creative mechanisms for reducing emissions.

More info. IECA-us.com

Excessive speculation, particularly in the less regulated OTC markets, has been blamed for the surge in energy prices experienced during the first half of 2008.

IECA has long warned about the dangers of excessive speculation and has urged Congress and the Commodity Futures Trade Commission to take action:

• August 5, 2009 IECA President Paul Cicio Appeared on CNBC’s Closing Bell to Discuss Excessive Speculation in Natural
• August 5, 2009 IECA Verbal Testimony Before the CFTC on Excessive Speculation on the Natural Gas Market

• June 3, 2009 IECA and Diverse Coalition Urge Congress to Increase Commodity Trading Transparency and Prevent Excessive Speculation

• June 27, 2007 “The Role of Market Speculation in Rising Oil and Gas Prices: A Need to Put the Cop Back on the Beat”

• June 14, 2007 Senate Permanent Subcommittee on Investigations Invites IECA to Testify on Excessive Speculation in the Natural Gas Market

(To cite just a few examples. To view more see www.ieca-us.com)

However, Chairman Frank’s recently released legislative draft threatens to reduce access to reasonably priced and customized over-the-counter (OTC) derivative products. IECA, as well as over 100 diverse segments of American industry Derivatives Letter to Congress that business end-users rely on OTC derivatives to manage risks including energy commodity prices, fluctuating currency exchange and interest rates. By insulating companies from risk, customized OTC derivatives provide businesses with access to lower cost capital—enabling them to grow, make new investments and retain and create new jobs.

Congress must be careful not to place an extraordinary burden on end-users of derivatives by requiring all OTC derivatives used by business end-users to be centrally cleared, executed on exchanges or cash collateralized or subject end users to capital charges that would inhibit companies from using these important risk management tools in the course of everyday business operations. These proposals would increase business risk and raise costs are at cross purposes with the goals of lowering systemic risk and promoting economic recovery.

The Finance committee will hold a hearing on this subject:

Reform of the Over-the-Counter Derivative Market: Limiting Risk and Ensuring Fairness

10 a.m., Wednesday, October 7, 2009, 2128 Rayburn House Office Building.

Yesterday, at the New York Stock Exchange, officials unveiled their plans for the “Panda Standard,” a voluntary offset project design and verification scheme that would generate a greenhouse gas emissions abatement credit that climate-conscious companies or consumers could use to offset their own emissions.

Executives at small oil refiners who broke with the industry to support the House climate bill now oppose it advancing in the Senate, illustrating the stiffening resistance to the sweeping legislation.