During his tenure in office, Gov. Perry has presided over one of the largest expansions of renewable energy and energy efficiency in the history of Texas, as well as dramatic expansions in Texas’ natural gas production.  Texas has proven that it is possible to foster new, renewable energy technologies without devastating the traditional energy industry. 

Unfortunately, the federal government doesn’t understand this, and is embarking on radical attempts to intervene in energy markets and pick winners among the variety of energy technologies. Legislative monstrosities like the Waxman-Markey and Kerry-Boxer cap and trade bills are being debated, and unelected bureaucrats at the EPA are threatening to impose draconian new regulations on Texas businesses, farms and families. If successful, these efforts would devastate the Texas economy, raise energy prices, result in the single largest tax increase in American history, and make our nation less secure and more dependent on foreign sources of oil.

Governor Perry established an advisory panel comprised of the leaders of Texas’ state agencies that oversee energy and environmental regulations in the state.  In coordination with this panel, Governor Perry filed comments with the EPA strongly urging the agency against regulating greenhouse gases under the Federal Clean Air Act, due to the devastating impact it would have on the Texas economy and energy industry.

The federal government has not yet acted on any of these potentially disastrous plans.  Governor Perry will continue to call attention to the damage they could do to the state and federal economies.

According to a study by the Heritage Foundation, the damage could be extensive:

• By 2035, electricity prices in Texas will rise by $1,726 per year for the average residential customer.
• By 2035, gasoline prices will rise by $1.28 per gallon (not b/c of supply demand issues, but essentially taxes).
• Gross State Product will decline $11 billion as soon as 2012 and by $44 billion in 2035.
• In 2012, 128,000 jobs will be lost and accelerating after 2020 to nearly 200,000 by 2035.

• Even with generous assumptions of the ability for farms to earn “CO2 offsets” that businesses can purchase in lieu of cutting emissions, 23 out of 26 representative Texas farms in their study were worse off under cap-and-trade.
• All rice farms, dairies, and ranches modeled were worse off.  Six out of seven cotton operations were worse off in all cases, with one operation being very slightly better off under one scenario.  6 out of eight feedgrain/oilseed operations were worse off, in some cases substantially.

• Loss of 181,000 jobs by 2015, accelerating to 341,000 by 2030.
• Household purchasing power falls by $1,430 by 2015 and nearly $1,800 by 2030 per household.
• Gross state product falls by 0.5% by 2015 and 1.6% by 2030.
• Electricity prices rise by 1.7 cents per kWh ($204 per year for average residential customer) by 2015 and 4.5 cents per kwh ($540 per year) by 2030.
• State taxes fall by $1.1 billion by 2015 and more than $2 billion per year by 2030

• Loss of 196,000 jobs by 2030.
• Decline in disposable income of $1,103 per household by 2030.
• Reduction in Gross State Product of $5 billion by 2020 and $41 billion by 2030.
• Increase in electricity prices of 10% by 2020 and 54% by 2030.
• Increase in gasoline prices of 11% by 2020 and 26% by 2030.
• By 2030, low income customers will spend more than 21% of their income on energy, up from 17% with no cap and trade bill.

• Texas could lose as many as 270,000 jobs by 2015 and 400,000 by 2030.
• Gross State Product declines by as much as $70 billion by 2030.

• Annual increase in wholesale power costs of approximately $10 billion, or $27 per month ($324 per year) for a residential customer by 2013.
• Due to carbon dioxide emissions limits, there will likely be an increase in the demand for and the price of natural gas.  At a higher gas price of $10 per MMBtu annual power costs would increase by $20 billion, or $54 per month (or $648 per year) for a residential customer by 2013.
• While reductions in energy use due to higher prices and increased wind power already under development in Texas may reduce the impacts of the cap and trade bill, they would not completely offset the impact.