Friday, the U.S. House Agriculture Committee , on which Congressman Bob Goodlatte serves, held a hearing on the so-called “American Clean Energy and Security” legislation, also known as “Cap and Tax”, which was introduced by Congressman Henry Waxman (D-CA).

Goodlatte has raised concerns over this legislation saying it raises taxes, kills jobs and will lead to more government intrusion.

Goodlatte says the cap and tax proposal is really a $846 billion national energy tax that will hit nearly every American. He adds moving into a cap and trade system will place the United States economy at a distinct competitive disadvantage because it would place significant additional costs on every American business, farmer, manufacturer and family.

In his statement from the hearing, Goodlatte says, “Cap and tax legislation has the potential to devastate the agriculture community, in particular, with higher operating costs. The Agriculture Committee must be looking intensely into how this legislation will affect farmers, as well as consumers of agricultural products. The impact that this legislation will have on our economy and our very lives is extensive; we must make sure that we fully vet this legislation.”

Goodlatte says agriculture is an energy intensive industry, and this legislation will make the cost of energy even higher. He estimates the Waxman legislation will raise electricity rates for farmers and all energy consumers by 90 percent after adjusting for inflation, gas prices 74 percent, and natural gas prices 55 percent. He also believes this legislation will also raise the cost of fertilizer, chemical, and equipment which farmers use daily, causing serious economic harm for the American farmer.

According to the Heritage Foundation, farm income is expected to drop because of this legislation by $8 billion in 2012, $25 billion in 2024, and over $50 billion in 2035. These are decreases of 28 percent, 60 percent and 94 percent respectively. Goodlatte says we cannot expect American agriculture to survive when we cut farm income by 94 percent.

Goodlatte expressed further concerns over the lack of support for the American forestry industry. The impetus for this legislation is to reduce carbon emissions, yet, according to Goodlatte, the Waxman legislation does not recognize the role that agriculture and forestry can play in sequestering carbon.

He also says the legislation does not specifically provide for agricultural or forestry offsets, but rather leaves eligible offsets to the discretion of the EPA. Goodlatte says more than 30 pages of this bill are devoted to developing international forestry offsets, including provisions to send American taxpayer money overseas to forest owners in developing countries, while disregarding our own forest owners.

“USDA has a long record of working with farmers and ranchers, and they have the extensive expertise in agriculture and forestry that will make an agricultural offset program successful,” says Goodlatte. “This legislation needs to be amended to allow the USDA, not the EPA, to be in charge of administering agricultural offsets.

“The Cap and Tax legislation has far reaching consequences for every person, farmer, and business in the country. We cannot ignore that America’s economy is intrinsically linked to the availability and affordability of energy. During this economic slow-down we should be adopting policies that seek to rebuild our economy and create more jobs; we need reliable and affordable energy supplies. Unfortunately, cap and trade legislation would only further cripple our economy.

"Instead of government mandates and bureaucracy we should focus on policies that support technological advances and consumer choices. The bottom line is that we need policies which encourage investment in environmentally sound, cost-effective practices without stifling innovation and setting our economy further back. The simple truth behind the Waxman energy plan is that it raises taxes, kills jobs and will lead to more government intrusion.”

Goodlatte is a cosponsor of the American Energy Act which is designed to increase production of American-made energy in an environmentally-sound manner and promote new, clean and renewable sources of energy such as nuclear, clean-coal-technology, wind and solar energy.

The legislation encourages greater efficiency and conservation by extending tax incentives for energy efficiency and rewarding development of greater conservation techniques and new energy sources. Goodlatte says the American Energy Act cuts red-tape and reduces frivolous litigation that hinders energy production.