Washington (Platts)--29May2008

The leading US climate bill would have serious economic impacts on states
across the country if enacted, according to state-by-state calculations
released by The Heritage Foundation on Thursday.

The Washington-based conservative think tank expects heavy job losses and
a brake on new job creation under the bill proposed by US Senators Joseph
Lieberman, Independent-Connecticut, and John Warner, Republican-Virginia. The
bill, S. 3036, is headed for a US Senate floor debate on June 2.

Heritage analysts predicted that the bill would mean nearly a 20% jump in
US electricity, natural gas and gasoline prices between 2012 to 2025.

Looking at the home states of the bill's authors, residents of
Connecticut would pay $514/year more on average by 2025 for electricity,
$351/year more for gasoline and $220/year more for gas than they would have
under current law, the think tank said. The state would also lose more than
7,150 jobs, it said.

Ultimately, Heritage said that the blow to Connecticut's economic output
would amount to $2 billion.

Meanwhile, in Virginia residents would pay $398/year more on average for
electricity, $390/year more for gasoline and $163/year more for gas in 2025.
The state would also lose more than 15,100 jobs. Economic output would drop by
$3.6 billion, it said.

The home state of US Senate Environment and Public Works Committee
Chairwoman Barbara Boxer, Democrat-California, would see residents pay
$343/year more in electricity costs, $86/year more in gas costs, and $328/year
more in gasoline costs, it added.

"Members of Congress, intending to combat global warming, actually would
send the cost of energy soaring while slashing employment and income across
the nation if they enact the leading climate-change legislation now before the
Senate," Heritage said.

"Contrary to the claims of an economic boost from 'green' investment and
'green-collar' job creation, [the bill] reduces economic growth, gross
domestic product, and employment," it added.