As lawmakers ask questions about the climate bill passed by the House last month (H.R. 2454), it’s vital that senators consider how provisions could affect energy-intensive U.S. industries and jobs. The American Chemistry Council, which represents one of those energy-intensive industries, believes a climate bill must ensure that the U.S. industry can compete in global markets. On that score, Congress has more work to do on the climate bill.

In the House-passed version, emission allowance provisions for energy-intensive industries are inadequate to maintain industrial competitiveness and protect high-paying manufacturing jobs in the United States. The emissions allowance provisions are very important because they will largely determine whether the bill helps the nation transition to a lower-emission economy and whether we can prevent the transfer of U.S. industrial production, jobs and greenhouse gas emissions to other countries.

As the bill moves to the Senate, senators need to make further changes so we can have a level playing field for American manufacturers that compete in the global economy.

We think the legislation includes some improvements over past versions. For example, it has a lower emission reduction target/timetable than earlier versions of the bill, recognizes that feedstock uses of fossil fuels do not create emissions and boosts the role of energy efficiency. These changes must be retained in the Senate version of the bill.

ACC hopes senators will seek to build a comprehensive climate policy that includes energy efficiency and conservation, energy diversity (e.g. alternatives and renewable, nuclear, carbon capture and sequestration and combined-heat-and-power), and expanded domestic oil and natural gas production.