The Connecticut Energy Marketers Association (CEMA) will testify against two bills before the Connecticut General Assembly Environment Committee today that pose significant concerns to already maxed-out energy consumers and our industry. These two bills would ultimately increase heating and transportation costs in Connecticut during a time when residents are already struggling to afford skyrocketing electricity costs!
Social Costs: The New Public Benefit Charge?
One of these bills, H.B. 5004, An Act Concerning the Protection of the Environment and the Development of Renewable Energy Sources and Associated Job Sources, could pave the way for social cost pricing of all fossil fuels. This would increase the costs of gasoline, natural gas, home heating fuel, propane, and diesel, while favoring more expensive green energy initiatives.
Chris Herb’s Comments on H.B. 5004
“For the first time, the state would require the Connecticut Department of Energy and Environmental Protection (DEEP) to assess the social costs of emissions and add those costs to fuel prices. For example, if gasoline costs $3 per gallon and the social cost is $2, the new price would be $5 per gallon. This social cost is simply another public benefits charge—new name, same outcome. People will pay more at the pump and to heat their homes, in addition to already high electricity prices.” — Chris Herb, President and CEO, Connecticut Energy Marketers Association
While the bill initially applies only to state buildings and vehicles, Herb warns that it sets the stage for broader social costs across all fossil fuels.
“They’ll say this will only apply to state buildings and vehicles, but that’s like building a foundation and claiming no house will ever be built on it. The foundation is being laid for a tax that will eventually apply to all fossil fuels, dramatically raising costs for everyone and for all products and services. This is the start of a new public benefit charge in its infancy. This is how they begin, hidden in a bill under the guise of helping the environment.” — Chris Herb, President and CEO, Connecticut Energy Marketers Association
Climate Superfund Bill Will Cause More Pain at The Pump
The second bill we will be testifying against is H.B. 6280: An Act Concerning the Establishment of a Climate Change Superfund which will create another hidden gas tax and more pain at the pump! The bill looks to establish a Climate Superfund Cost Recovery Program administered by the Department of Energy and Environmental Protection. The bill appears to require large oil and gas extractors and refiners to pay a fee based on emissions that occurred between 1995 and 2005. We estimate this would cost Connecticut consumers an estimated 13 billion dollars in costs passed down to the consumer through this hidden, backdoor tax.
Quotes from Chris Herb, President and CEO of CEMA, regarding H.B. 6280.
“From 1995 to 2025, the fuels we’ve sold have been heavily regulated and taxed by both the federal and state governments. These taxes—state excise, federal excise, and petroleum gross earnings tax—have generated billions of dollars in revenue, and no one seemed to be complaining then. This ‘superfund’ would be just another tax, on top of a tax, on top of a tax, on top of a tax.
“Now that they’ve maxed out electricity prices by making ratepayers pay for their ‘green’ initiatives, they’re looking to do the same by inflating the price of gasoline to fund their pet projects.
“It’s unjust and baffling that anyone in the legislature would consider raising energy costs in Connecticut after profiting from every single gallon sold. It’s another money grab by the state government and they won’t stop until they get every last penny.”
CEMA members sell 1.6 billion gallons of gasoline annually and 400 to 500 million gallons of heating fuel.
Take action here! Email your state lawmaker and tell them enough is enough!