Dirt Talk: Carbon Caps Don’t Bode Well for Construction
by Michael M. Slusarski , PE
August 10, 2009
I am becoming increasingly concerned about the impact of the carbon cap-and-trade policy that is currently being pushed on the national level.
In late June, the U.S. House of Representatives passed a carbon cap-and-trade bill intended to regulate greenhouse gas emissions. The bill, also known as the American Clean Energy and Security Act, is not expected to be debated in the Senate until the fall. It includes a cap-and-trade global warming reduction plan designed to reduce economy-wide greenhouse gas emissions 17% by 2020.
Obviously, our industry is directly tied to energy in a couple of ways. The most obvious energy tie-in is the price of fuel that we use to power our fleets and equipment and the price of petroleum-based products that we purchase for use in the field (asphalt, plastic pipe, etc.).
The other energy tie-in is through any of our potential clients. Any increase in cost to our clients’ operational spending, including energy, has a direct negative impact on their ability to execute capital improvement projects. Without a doubt, any upward movement in the oil commodity futures market will not be favorable to us.
Although I recognize that implementing a carbon cap-and-trade may result in good conditions for creating a market for small electric vehicles and other "green" technology, it will not be so good for construction--to say the least.
At best, I am concerned that the implementation of any carbon policy will ultimately negate any gains that may have been realized as a result of the stimulus.
At worst, if the carbon cap-and-trade policy simply amounts to a new and creative way to implement a tax that gets passed down to the end consumer and, in turn, creates an extended increase in fuel and material costs, our industry will be destitute.
What do you think? Post your comments below.
Michael M. Slusarski , PE
mms@slusarski.com
Michael M. Slusarski is a registered professional engineer in
Comments (3)Post a Comment
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Title: Cap & Trade
By: Debbiew
Posted: August 13, 2009 2:49 PM
I agree that Cap & Trade is a very poorly disguised additional tax. Call your Senators & Congressmen today!! That is the only way that your voice can make a difference!
Title: Cap and Tax
By: Wisconsin Surveyor
Posted: September 3, 2009 11:15 AM
The federal government is seemingly intent on reducing this country to third world status. To seriously consider this proposal indicates a reckless disregard for all citizens. Communities can't be organized if they are never built in the first place. And if we are to listen to the green jobs "czar", that is precisely the outcome we can expect.
Title: Cap and Trade
By: Michael Bazinet
Posted: September 4, 2009 3:32 PM
While the administration pursues social engineering projects like health care reform and cap & trade, they want to kick the can down the road on SAFETEA-LU (highway bill)reauthorization, which is hugely important to the construction and equipment industries. Let's put people to work first, please. The Stimulus spending isn't cutting it. Include this in your letters to Congress