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Cap and Trade = Massive Job Loss for Small Business

We are strongly opposed to H.R. 2454, the American Clean Energy and Security Act of 2009. According to the Environmental Protection Agency’s analysis of a similar proposal, cap and trade will cause energy prices to increase about 40 percent. These NFIB members tell how small business will be particularly hurt by a 40 percent increase in energy costs:
 
Small manufacturers
A member in Pennsylvania spends about $130,000 each month, and more than $1.5 million a year on energy (electricity, natural gas and diesel).
  • If his energy costs increase 40 percent, his yearly cost will be more than $2 million!
  • This member’s energy-related costs account for nearly one-third of his total business expenses.
  • When asked how he would absorb the increase in costs, he said since he is already operating with minimum staff, he would be forced to raise prices.
Small retailers
A member in Virginia spends about $500 a month on electricity for his shop and gas for his delivery vehicles.
  • If his energy costs increase 40 percent, his monthly energy bill will be an additional $200 a month, or $700.
  • For many small retailers who do not want to cut jobs and workers, he said the $200 can only be made up by passing the cost along to the consumer in the form of higher costs or fewer products.
Trucking and delivery
A member in Ohio spends over $4 million a year on his energy bills.
  • If his costs increase 40 percent, he will be spending $5.6 million a year just on electricity and fuel.
  • In order to absorb the new energy costs, he said he would combine increasing costs, cutting hours and employees. 
Other industries
A member in Ohio who operates a marketing and exhibit company annually spends about $120,000 on energy costs.
  • Last year, she invested in a $40,000 “smart technology” heating-ventilating-air conditioning system but has not seen a decrease in energy costs.
  • She cites several actions she would take if her bills increase by the projected 40 percent, including layoffs, increasing the employee contribution on healthcare benefits and eliminating the annual-cost-of-living raise.
  • This company wants to open a second location in Chicago, but the owner says combined with expected cost increases like healthcare, property insurance and legal counsel, it may be impossible to expand.
A member in Pennsylvania runs four athletic clubs and relies heavily on electricity and natural gas to power the heating-ventilating-air conditioning system and lighting the facilities.
  • His energy costs run about $600,000 a year.
  • If it goes up 40 percent - $840,000 - he says his only choice will be to close his business.