Waxman-Markey Bill: Massachusetts State Fact Sheet

The people of
Massachusetts
will be hurt by the Waxman-Markey
Climate Bill.
The climate change bill under consideration by Congress ignores the impacts on
everyone who uses or produces petroleum fuels like gasoline, diesel and natural
gas. So it will hit both households and businesses hard – everyone who uses cars,
trucks, planes, trains, and tractors or the thousands of products produced or
transported using these fuels. It will create an uneven playing field for U.S. refiners
who will lose market share and jobs to foreign competitors who do not have to limit
their own greenhouse gas emissions.
Higher prices: The bill will touch every family and every business that uses oil products.
According to one government analysis, the bill will raise prices to $5.10 per gallon for
gasoline and $5.60 per gallon for diesel fuel.1
Less disposable income: According to the Energy Information Administration (EIA),

average household energy costs could increase as much as $1,870 in 2030.1
That’s 5.3 percent of today’s average per capita disposable income.2
Fewer jobs and lower wages: EIA’s study, as well as those commissioned by the
National Black Chamber of Commerce, the National Manufacturers Association and
the American Council for Capital Formation all reach the same conclusion about jobs –
that as a consequence of this legislation, there will be more than 2 million fewer jobs
in 2030, even with new green jobs created.3 One analysis expects the wages of workers
who remain employed to fall and for the loss to become greater over time.4 Another
analysis shows that the unbalanced approach of the bill by itself will produce additional
unemployment, destroying more than 2 million jobs nationwide as soon as 2011.5
1 U.S. Energy Information Administration, “Energy Market and
Economic Impacts of H.R. 2454, the American Clean Energy
For Massachusetts this could mean a loss of 36,473 jobs over the next couple of
and Security Act of 2009,” August 4, 2009. years. If those jobs were lost today, it would increase Massachusetts’ unemployment
2 API calculation based on U.S. Bureau of Economic Analysis
data.
rate from 8.2 percent to 9.3 percent.6
3 EIA (August 2009); CRA International (August 2009); Science
Applications International Corporation, “Analysis of the Waxman- Less wealth: One analysis projects the bill would reduce aggregate gross domestic
Markey Bill ‘The American Clean Energy and Security Act of
2009’ (H.R. 2454) Using the National Energy Modeling System product (GDP) by $9.4 trillion over the next 26 years.5 For Massachusetts this could
(NEMS/ACCF-NAM2),” prepared for the National Association of mean a reduction of as much as $8 billion in our state’s gross state product (GSP)
Manufacturers and the American Council for Capital Formation,
August 12, 2009. on average over this period.7
4 CRA International, “Impact on the Economy of the American
Clean Energy and Security Act of 2009 (H.R. 2454),” prepared
for the National Black Chamber of Commerce, August 2009.
Less energy security: U.S. refiners will have to buy a disproportionate share of new
5 The Heritage Foundation, “Son of Waxman-Markey: More Politics allowances, increasing their costs and giving a competitive advantage to non-U.S.
Makes for a More Costly Bill,” edmemo no. 2450, May 18, 2009.
Revised and updated June 16, 2009.
refiners. One analysis concludes that as a result of this legislation, fuel imports will
6 API calculations based on U.S. Bureau of Labor Statistics state double by 2030 from what they would have been.8 Contrary to the bill’s intention,
data and The Heritage Foundation estimate of job losses from
“Impact of the Waxman-Markey’s Climate Change Legislation
America will be less energy secure.
on the States,” webmemo #2585, August 19, 2009.
7 The Heritage Foundation, “Impact of the Waxman-Markey Little environmental gain, big economic pain: Even the federal Government Accountability
Climate Change Legislation on the States,” webmemo #2585,
August 19, 2009. Office (GAO) warns that cap and trade legislation could make American companies less
8 EnSys Energy, “Waxman-Markey (H.R. 2454) Refining Sector able to compete internationally and could drive American jobs overseas to countries
Impact Assessment,” prepared for the API, August 21, 2009.
9 “Climate Change Trade Measures, Estimating Industry Effects,” that do not limit greenhouse gas emissions, thus driving up international emissions
U.S. GAO testimony before the Committee on Finance, U.S. enough to offset or overwhelm U.S. cuts.9
Senate, July 8, 2009, pp5-6.
Page 1 Learn more at API.org

The requirements are not equitable and will hurt consumers and producers of motor
fuels most. The bill would allocate only 2.25 percent of allowances to fuel producers,
but make them responsible for 44 percent of emissions. Refiners would need to cover
emissions from refineries and also consumer emissions from planes, trains, autos,
tractors, heating oil, and other petroleum use. In contrast, a few selected emitters will
receive enough free allowances to roughly match their obligation. For example, utilities
get more than 35 percent of all allowances. This inequitable system of allocations will
hurt consumers and producers of gasoline, diesel fuel, heating oil, jet fuel, propane
and crude oil.
The people of Massachusetts who use automobiles, trucks, planes, trains, heating
oil and other non-transportation petroleum products are treated unfairly by the
Waxman-Markey Climate Bill.
The transition to new low-emission energy sources

will take time. Unlike power generation, which has
the ability of switching to a low-carbon fuel source,
there is no commercial-scale low-carbon source to
fuel the nation’s 250 million cars.
We need an equitable plan that will address global climate change and improve, not
weaken, our nation’s energy and economic security. Decisions made today will have
repercussions for decades to come.

Those states with the highest emissions per dollar of
economic activity will face the greatest challenge to
reduce them.
Metric Tons of Emissions per $1 Million

in State Economic Activity
■ Least: 48 – 500
■ Most: 501 –2305
Source: EPA, “Energy CO2 Emissions by State” (www.epa.gov/climatechange/emissions/state_energyco2inv.html) as interpreted by API.

Emissions Ranked by State
Total CO2 Emissions Total CO2/

Rank State (2005 MMT CO2) Rank State $ Millions of GSP
1 Texas 663.87 1 Wyoming 2,305.47
2 California 390.64 2 West Virginia 2,132.54
3 Pennsylvania 277.00 3 North Dakota 2,015.01
4 Ohio 269.97 4 Montana 1,213.64
5 Florida 260.74 5 Alaska 1,198.64
6 Illinois 242.81 6 Louisiana 1,138.84
7 Indiana 231.59 7 Kentucky 1,082.90
8 New York 210.91 8 Indiana 970.74
9 Louisiana 191.56 9 Alabama 930.69
10 Michigan 189.58 10 Oklahoma 873.24
11 Georgia 184.00 11 New Mexico 856.37
12 North Carolina 153.51 12 Mississippi 781.89
13 Kentucky 152.15 13 Utah 727.66
14 Missouri 141.11 14 Iowa 701.63
15 Alabama 141.10 15 Arkansas 697.84
16 New Jersey 134.54 16 Kansas 686.34
17 Virginia 128.93 17 Texas 670.95
18 Tennessee 127.25 18 Missouri 653.09
19 West Virginia 113.13 19 South Carolina 623.05
20 Wisconsin 110.53 20 Ohio 612.27
21 Oklahoma 106.09 21 Nebraska 609.85
22 Minnesota 100.65 22 Pennsylvania 566.44
23 Arizona 97.17 23 Tennessee 555.15
24 Colorado 94.34 24 Wisconsin 510.94
25 South Carolina 87.24 25 Maine 509.83
26 Washington 85.61 26 Georgia 505.73
27 Massachusetts 84.83 27 Michigan 503.88
28 Maryland 83.91 28 Arizona 448.76
29 Iowa 79.67 29 Nevada 445.12
30 Kansas 72.46 30 North Carolina 442.86
31 Utah 66.06 31 Colorado 435.68
32 Mississippi 63.56 32 Illinois 433.57
33 Wyoming 62.87 33 Minnesota 429.12
34 Arkansas 60.54 34 Hawaii 426.69
35 New Mexico 58.98 35 South Dakota 426.56
36 Nevada 49.56 36 Florida 387.26
37 North Dakota 49.16 37 New Hampshire 385.23
38 Alaska 47.12 38 Virginia 366.37
39 Connecticut 43.30 39 Maryland 340.77
40 Nebraska 43.10 40 Idaho 335.57
41 Oregon 42.67 41 Washington 320.28
42 Montana 36.27 42 Delaware 314.20
43 Hawaii 23.05 43 New Jersey 312.11
44 Maine 22.93 44 Oregon 295.73
45 New Hampshire 21.21 45 Vermont 294.29
46 Delaware 17.75 46 Massachusetts 260.29
47 Idaho 15.83 47 Rhode Island 257.62
48 South Dakota 13.19 48 California 240.82
49 Rhode Island 11.28 49 Connecticut 223.50
50 Vermont 6.79 50 New York 220.18
51 District of Columbia 3.94 51 District of Columbia 48.21

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The people of

Less disposable income: According to the Energy Information Administration (EIA),

Page 1 Learn more at API.org

The transition to new low-emission energy sources

Page 2 Learn more at API.org

Metric Tons of Emissions per $1 Million

Source: EPA, “Energy CO2 Emissions by State” (www.epa.gov/climatechange/emissions/state_energyco2inv.html) as interpreted by API.

Page 3 Learn more at API.org

Total CO2 Emissions Total CO2/

Page 4 Learn more at API.org

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