Petrogram - Summer 2010 - (Page 23)
Environmental Priorities in Today’s Market: Cap-and-Trade
ﬁght for our survival and constantly monitor future environmental priorities. A major future challenge our industry may face is the negative impact of proposed cap-and-trade legislation. The House passed (H.R. 2454) the WaxmanMarkey American Clean Energy and Security Act and the Senate passed a similar bill (S. 1733), the Kerry-Boxer Clean Energy Jobs and American Power Act. Both bills work toward an approximate 80 percent reduction in greenhouse gas emissions, a level cited as a requirement to stop global warming. In addition, the EPA was given authority by the Supreme Court in 2007 to address CO2 as a pollutant under the Clean Air Act. What this means is that emissions will be capped and companies allowed emissions that cannot exceed speciﬁc standards. While caps may decline over time, if a company exceeds its cap, there may be an option to buy/trade oﬀsetting credits. The question is: What may the costs of this cap-and-trade legislation mean to the future of our industry and individual businesses? The Congressional Budget Oﬃce (CBO) estimates the impact to our economy could total between $50 and $300 billion annually. Further, households could incur direct costs of $175 annually by 2020. However, an MIT study projected the same direct costs per household to be approximately $800 annually and that additional pass along costs could exceed $3,128 annually. The real impact to our industry is the potential for higher gasoline prices, consumer anger, major declines in station volumes and higher utility costs. The PMAA recently forecasted that the above factors could result in reduced station volumes due to price increases by as much as 20–26 percent by 2030. However, another study forecasts that the negative impact of price increases to be as high as 58 percent by 2035. Also some utility costs are projected to incur price increases of 49–76 percent, or double current levels. It is also interesting to note that cap-and-trade has been implemented in Europe without the success that was anticipated. Further, it is noted that both China and India are surpassing the U.S. as the leading emitters of CO2, which render anticipated positive global impacts suspect. Naturally our entire industry opposes the proposed cap-andtrade legislation. We watch this legislation and do all we can to ﬁght its approval and implementation as we manage our future business strategies and changing environmental priorities. ❍ Irvin Heath is president of HCR, SE, LLC. Irvin is also the vice chair of the FPMA Environmental Committee. You can contact Irvin at email@example.com or 352-735-1800.
Irvin Heath, Esq.
know we are very pleased with the potential approval (at this writing) and the final actions our Florida legislators will take to implement several positive changes for the Inland Protection Trust Fund (IPTF). These changes include what the legislators told us they wanted, which was substantive changes to the program and not just requests for more funding. Thank you to everyone who met with legislators and participated in activities to support our eﬀorts to educate legislators on both the purpose of the IPTF and the importance of protecting it. Educating our legislators leads to approval of the legislative changes we drafted and proposed for the Natural Attenuation Program (NAM) and the Low Scored Site Initiative Program. These changes also gained legislative support and resulted in legislators’ agreement to fund the IPTF at levels far in excess of last year – and possibly language to protect the IPTF from future funding raids. Although we are glad part of this ﬁght is over, we know we can never let up and we must continue to ﬁght for protection of the IPTF. However, there are always additional challenges looming on the horizon that face our industry and individual business interests. Therefore, we must remain aware of and be prepared to
Table of Contents for the Digital Edition of Petrogram - Summer 2010
Petrogram - Summer 2010
Out & About the Industry
2010 Convention and Sunshine Food & Fuel Expo
MDM Services Completes Quick Turnaround Facility
Index of Advertisers/Advertiser.com
Petrogram - Summer 2010