Thursday, July 16, 2009

One Size DOES NOT Fit All

If you look through your closet, chances are you have an item of clothing-- maybe its a shirt or a pair of gloves--with a tag that reads One Size Fits All. I have numerous items in my own wardrobe that come to mind that have this very label. One in particular is a winter stocking cap that does stretch far enough to cover my head, only to pop right off when I let go of it. Obviously the manufacturer of this accessory did not take into account a head as large as mine when they chose to stitch that tag into the seam!

If climate change legislation had a tag "sewn into its seams", a One Size Fits All tag would be about as accurate as that tag in my stocking cap.

No two states are exactly the same in they way they produce or use electricity--they use varying mixes of fossil fuel and renewable energy resources. Climate change legislation currently calls for a cap-and-trade system that will force fossil-fuel generating stations to purchase credits on the market if they exceed the "cap" for carbon emissions. The use of fossil fuels varies from state to state, and states in the Midwest are expected to be impacted the most by a cap-and-trade system.

On July 14th, Nebraska Senator Mike Johanns called upon the U.S. Department of Agriculture to provide an analysis of the cost impact in the ag sector, outlining the following items as "must haves":


  • State by state analysis of the cost of cap-and-trade for agricultural industries;

  • Crop-specific analysis of the impact of legislation on farmers engaged in the production of corn, soybeans, wheat, cotton, etc;

  • Analysis of how legislation will affect farmers/ranchers who produce cattle, dairy, pork and other livestock; and

  • An assessment of how many acres will be taken out of production as a result of the bill, and what impact that will have on the availability of food, fiber, feed, biofuels and other agri-products.
It is clear that the agriculture industry will be impacted significantly by Waxman-Markey. Johanns noted in a letter to USDA Secretary Tom Vilsack that the One Size Fits All analysis will impact corn farmers in Nebraska differently than it will orange growers in California or dairy farmers in upstate New York. At Southern, we agree that a cap-and-trade system will hit our consumers hard, and the impacts will be variable from state to state.

It seems in recent months that there has been a push to hurry up and pass this legislation, even when it wasn't fully examined or read by Congress. We are grateful that Senator Johanns has stepped up to request that this One Size Fits All proposal be examined and "tried on" before buying into it. We need to know exactly how this legislation will "fit" here in Nebraska. How far will it stretch our budgets? Will our corn farmers and cattle ranchers be able to continue their operations under this plan? These are questions that need to be asked before our Senate is rushed into a vote.

If you are concerned about how climate change legislation will "fit" here in Nebraska, we urge you to get involved and speak up to Senator Johanns, and Senator Ben Nelson by logging on to www.southernpd.com/oeof.

LeAnne Doose,
Communications Director,
Southern Power District