Montana Main Street Blog

Only Two Months Left to Save the Planet

Two months ago, I saw an interesting article about a speech given by United Nations Secretary-General Ban Ki-moon of South Korea. In this climate change speech given on August 11th, the UN leader made a bold prediction:

"We have just four months. Four months to secure the future of our planet."

You got that, folks? Just four months to save the world from climate change consequences. But wait, that was two months ago. So I guess we only have two months left. I know he was referring to the climate change conference in Denmark this December, but was it also a not-so-subtle nudge to the U.S. to get some kind of cap-and-trade system in place in the next four months?

As health care continues to completely occupy the debate in Washington, DC, I somehow doubt that will be a reality.

Cap-and-Trade Prospects Dwindle

The Waxman-Markey cap-and-trade scheme that narrowly passed the House has an uphill battle in the Senate. I think the bill's supporters in Congress and the administration had hopes of cramming the bill through the process before a United Nations climate summit in Copenhagen, Denmark. That appears less likely at this point.

With the health care debate dragging on longer than the administration would like, and with the level of opposition seen on that issue, a sweeping climate change bill may not be the best course of action. The level of cap-and-trade support among Senate Democrats appears lower than health care reform, and many groups are coming out with ads calling for Senators to oppose the bill. Check out this ad urging Senator Jon Tester to oppose the bill.

A recent study from the American Council of Capitol Formation showed how much Montana stands to lose with the passage of Waxman-Markey. Although Montana could see more in the alternative energy arena, the overall net effect is still very negative - especially in the jobs market. By 2030, Montana could see 4,964 fewer jobs as a result of cap-and-trade under a low cost estimate, and 6,761 under a higher estimate. Montanans would also be paying more for their energy. The study estimates that by 2030, gasoline will costs will increase by 21% to 27%, electricity will increase by up to 61%, and natural gas will increase by up to 78%.

Although some environmental groups claim Montanans support cap-and-trade (without any evidence), we have actually asked Montanans about the issue. In the last P-base poll of 800 Montana voters (3% margin of error), more than half of Montanans said they don't want to pay a cent more in energy costs to stop global warming. If we include that question again in this year's poll, I wouldn't be surprised if the number is higher since the economy is much worse than a year ago.

These are big price tags for a bill that would only reduce worldwide carbon emissions by a few percentage points over time. Montana has a lot to lose if this bill is passed. We hope Senators Baucus and Tester vote with Montanans on this issue and oppose the Waxman-Markey cap-and-trade scheme.

Less Taxes, More Jobs

The Lewis & Clark County Commission and the city of Helena have realized something the state government refuses to acknowledge - business equipment taxes prevent job and wage growth. This week, both local governments approved business equipment tax relief for Summit Aeronautics, a local manufacturer, in order to allow the business to create up to 50 new good-paying jobs for Montanans.

Said Summit representatives: "Taxes on business equipment can be the difference between making money and losing money."

We plan on taking this example and others to the legislature next session to show state lawmakers why the business equipment tax needs to go. Most other states have realized this and have repealed theirs. This tax relic prevents Montana from being competitive with other states in the region, and it takes money out of the pockets of workers.

Let's hope state officials will stop standing up for a tax that is contrary to economic growth and new investment.

Manufacturers in Montana

I had the opportunity to tour two great business while I was in Lewistown this week. Both are medium-sized manufacturing businesses located in beautiful central Montana.

The first place was HCR, a business that specializes in engineered solutions for the frequently and constantly open doorways of high-usage freezers and coolers in grocery & food service distribution centers, refrigerated warehouses, and U.S.D.A. food plants. Their customers include some of the large warehouse grocery stores, like Costco.

The second place was Hi-Heat Industries, a business that manufactures electric heaters and heating elements for an almost endless list of different applications. Industrial low mass heating elements by Hi-Heat range from complex composite manufacturing and repair heaters, military equipment and aerospace heaters, to simple enclosure heaters that keep coin boxes from freezing up.

Both operations provide very good-paying jobs for Lewistown area residents. We need more businesses like this in Montana - value-added, hi-tech, manufacturing industries that have customers all over the world. Much can be done in the next legislative session to encourage the growth of this sector and investment in our state. Thanks to both of these businesses for opening their doors to us!