Dear John,

Thank you for contacting me to voice your views on the American Clean Energy and Security Act, H.R. 2454. I appreciate your comments and I welcome this opportunity to share my thoughts.

The House recently passed the American Clean Energy and Security Act, H.R. 2454. The primary focus of

this legislation is the creation of a 'cap and trade' program for greenhouse gas emissions, which would place a national limit or 'cap' on the amount of emissions the United States could release into the atmosphere in a given year. Under the framework of this legislation, companies that release a significant amount of pollutants will be required to hold emission allowances. Companies that pollute more than their given allowances would be forced to purchase allowances from companies who pollute less, thus the 'trade' part of the program. Each year, the total number of available allowances would be reduced until the United States met the bill's goal of reducing greenhouse gas emissions by 83 percent in 2050.

Climate change poses a serious threat to our planet, and we have a responsibility to reduce the United States' contribution to the problem. We also have a duty to preserve a safe and healthy environment for future generations. Although I support the goals of this legislation, I voted against this bill because it does not go far enough to protect against potential adverse effects on 8th District consumers and businesses.

Specifically, I was concerned about the rate increases my constituents would experience because of this bill. Although significant improvements were made on this issue, the final bill would still place a higher economic burden on individuals living in certain areas of the country, such as the Midwest. Some states would be given 100 percent of the initial allowances needed for compliance. However, it is estimated that Indiana would receive less than 70 percent of its needed allowances, thereby forcing Hoosier companies to purchase their remaining needed allowances. This would result in an immediate increase in utility prices for Hoosier rate-payers and businesses, which could undermine our economic recovery.

Additionally, I was concerned about the lack of a strong cost-containment mechanism to limit the cost of an allowance. If the cost of an allowance were to spike, Indiana would be one of hardest hit states in the country. Indiana currently receives 96.4% of its energy from coal. 98% of Indiana coal is produced in the 8th District. If the price of an allowance became expensive before the needed carbon capture and sequestration (CCS) technology is available, it could result in companies significantly reducing, if not eliminating, their purchase of coal. This was extremely concerning to me considering the 8th District is home to nearly 6,000 coal-mining jobs, and 11,000 other coal or mining related jobs. In the end, I did not feel this bill provided the necessary mechanism to protect Hoosiers while we transition to a cleaner energy economy.

Thanks again for taking the time to share your views with me. If you would like to learn more about my positions on issues important to you or receive regular updates on developments in Congress, please visit my Online Office at www.ellsworth.house.gov and sign up for my e-Newsletter.

Sincerely,

Brad Ellsworth