AFP News Release:

For Immediate Release: July 20, 2010

DATELINE: MORRISTOWN, NJ – Americans for Prosperity State Director Steve Lonegan, Assemblywoman Alison McHose (R-24), and Assemblyman Michael Patrick Carroll (R-25) were joined today by a number of activists in Morristown, NJ to call for the end to New Jersey’s participation in the Regional Greenhouse Gas Initiative (RGGI).

The RGGI Cap-and-Trade program, started in 2008, is a cooperative of ten Northeastern states that puts a cap on carbon emissions, while allowing carbon-emitting entities to sell allowances via an auction process. To date, over $660 million of wealth has been transferred from the private sector to the public sector under RGGI, including over $65 million in New Jersey alone. Governor Christie’s FY 2011 budget diverts this $65 million in revenue generated by RGGI to the state’s general coffers.

Cap-and-Trade opponents are pushing the full repeal of the Global Warming Response Act and the RGGI program, passed in 2007 under then Governor Corzine. McHose and Carroll have sponsored such legislation and introduced it in the Assembly last week (Bill A3147). Senate Michael Doherty (R-23) is sponsoring a corresponding repeal bill in the Senate.

Speaking at the rally McHose said, “Going ‘green’ shouldn’t mean hurting New Jersey businesses and further eroding our economy. This law has already increased energy costs in New Jersey. The Northeast already pays the highest costs in country and the New Jersey Cap-and-Trade program has only exacerbated that problem.”

“Higher energy costs can lead to businesses leaving the state,” added McHose.

The bill’s primary sponsor, Assemblyman Carroll, stated, “The premise of this proposal is wrong. Increasing the costs of power by empowering a secretive private corporation to impose a stealth tax does nothing to reduce greenhouse gas emissions. There is no proof that New Jersey customers are receiving back what we are putting in since no one knows how much the ratepayers pay. Even if the money went to so-called alternative energy programs such as solar and wind these are incredibly expensive and of dubious reliability.” Carroll added that the best route to tackling the nation’s energy problems would be by “unshackling nuclear and hydroelectric power [which] are clearly the most effective alternatives.”

Carroll also noted that because RGGI is a non-governmental agency, records are completely hidden from public even though taxpayers pay 100% of the costs.

New Jersey Restaurant Association board member Larry Blatterfein also spoke at the rally and warned that a Cap-and-Trade energy tax would do untold damage to restaurant owners and cost jobs.

“The restaurant industry employs over 300,000 people making us the state’s largest private sector employer. Our average profit margin is 3 percent. After 7 percent comes off the top to state and 3 percent off of the bottom it kind of makes you wonder who the owner is,” said Blatterfein. “Restaurants by nature are energy intensive -- whether open or closed your refrigeration must run. RGGI will hurt New Jersey restaurants dearly.”

“This legislation alone will cause prices to rise. Marginally profitable restaurants will be forced to close under these tax pressures. Salaries will be forced downwards...limiting opportunities for employees.”

AFP State Director Steve Lonegan spoke to the stealth nature of the program.

“Right under our noses here in New Jersey we already have a Cap & Trade program that is identical in every way to the Obama proposal. A plan authored by Lisa Jackson when she was the DEP head in the state of New Jersey.”

“We plan to make New Jersey an example for the rest of the country,” continued Lonegan. “We hope Governor Christie will take a leadership role in making this happen – in fact we expect him to do so.”

Lonegan cited estimates that by 2020 Cap-and-Trade will raise electricity rates by 90 percent and gasoline prices by an additional 58 percent. Lonegan asked, “What will you sacrifice for these costs? Perhaps it’s your child’s education. Or that new car you’ve been saving up for. Or a night out at your favorite restaurant.”

“It’s [Cap-and-Trade] going to have a cost and impact this economy and we’re going to stop it,” concluded Lonegan.

Americans for Prosperity has launched a website to support the repeal effort. For more information on New Jersey’s Cap-and-Trade program, please visit www.NoNJCapAndTrade.com.