Oct. 19--PORT ARTHUR -- A group of concerned college students descended upon Capitol Hill to talk about Earth Day, earlier this year.

Sporting lime green hard hats, the students spent some time speaking with Congressman Ted Poe, R-Humble.

The congressman asked one student if she knew what her hard hat was made from.

"Plastic," was her answer.

"Do you know where plastic comes from?" Poe said he asked the female.

"Well, it's plastic," she said.

Ironically, the very students campaigning for the environment did not know their hard hats were made from a crude oil derivative.

Poe told this anecdote during a presentation called "Cap and Trade 101, Your Lives and Your Wallet," at Lamar State College-Port Arthur's Performing Arts Theater Monday morning.

The story of the Earth Day student has parallels to upcoming hearings in the U.S. Senate and the impact such legislation would have on area industry and local residents.

Under the cap and trade system, government establishes a ceiling on the total amount of greenhouse emissions that can be emitted. More efficient companies have the opportunity to buy or sell permits to those not able to make reductions easily.

The bill is an effort to control greenhouse emissions through unfair taxation of energy consumption, Poe said.

The House passed Cap and Trade bill aims to cut greenhouse gas emissions by 97 percent of the 2005 levels by 2012, 83 percent by 2020, 58 percent by 2030 and 17 percent by 2050, he said.

"This is an energy tax or energy consumption tax," Poe said.

While Poe said he believes no one wants bad air or pollution, he doesn't see the cap and trade bill as the answer for several reasons.

The cost of producing energy in the country will go up and will ultimately be passed on to the consumer, Poe said.

Neither China nor India are interested in participating in cap and trade, he said, making those countries a seemingly ideal place to relocate industry and bring the associated jobs along with them.

The National Black Chamber of Commerce performed a study that found that cap and trade would cut net employment by 2.5 million jobs per year, Poe said. This is even after accounting for new green jobs.

Besides industry and the potential for the loss of jobs, others will be affected by cap and trade, he said.

The cost of gasoline would probably increase by 50 percent then continue to go up after the bill takes place, he added.

"And one industry in our area we have not talked a lot about is the trucking industry, and how this affects transportation of the products," he said. "Any increase would be passed on to the consumer.

Besides the bill's affect on emissions there are concerns about methane. Meat producers are worried too, he said.

An alternative to the cap and trade theory is to provide tax incentives to energy companies that find ways to decrease greenhouse gases, he said.

"I think tax incentives and tax breaks will encourage industry to cut down emissions more than cap and trade," he said.

If the bill is made into law it will affect more than just refineries.

"You mentioned a lot about energy and you're absolutely correct. We have four major refineries in the area and some of them do not make the stuff you put into gas tanks," Clark Colvin, regional director of community affairs for Flint Hills Resources, told Poe. "Plastics and by-products will also be affected."

Poe agreed with Colvin, adding that anything that's a crude oil derivative is included in the bill.

Morris Carter, environmental and public affairs director for Valero Port Arthur Refinery, echoed Poe's concerns.

"Those of us who made energy a career choice are in a panic mode," Carter said. "This could be devastating, an increase in refining costs or simply handing over our business. It will cost thousands of jobs for nothing but the vague promise of other "green" jobs. Our industry has been very sincere in regards to the environment and we strive to meet those standards every day."

While the Senate vote is yet to come, Poe said the best way to squash the bill before it goes any further is to be outspoken and educate others who may be misinformed.

mmeaux@panews.com

To see more of The Port Arthur News or to subscribe to the newspaper, go to http://www.panews.com/.

Copyright (c) 2009, The Port Arthur News, Texas

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

<< -- 10/20/2009>>