Hatch, Herbert dislike cap-and-trade measure

It's clear that some of Utah's leaders have no love for the so-called "cap-and-trade" bill scheduled for Senate debate this month: They predicted in a Thursday forum that its dire impacts would cause an economic train wreck for the state.

"It is very telling that India, China and Mexico have all balked at committing to strong carbon reductions," Sen. Orrin Hatch, R-Utah, said during a forum at the State Office Building. "The fact of the matter is that even with U.S. and European leadership, we could very well end up going it alone.

"Considering the pain Utahns would be asked to bear, and the loss of competitiveness for our entire nation, Waxman-Markey is a risk I am not willing to take."

Hatch and Utah Gov. Gary Herbert hosted the event outlining the potential costs of HR2454, also known as the Waxman-Markey cap-and-trade bill, and were joined by the heads of the Utah Petroleum Association and the Utah Farm Bureau Federation, as well as several representatives from Utah power suppliers.

Critics at the forum universally predicted higher prices for Utahns as utility companies, refineries, farmers and ranchers either rush to cut carbon emissions or purchase allowances for their emissions.

Among the critics' warnings:

 The price at the gas pump would increase a minimum of 20 cents a gallon by 2012 and $1.38 by 2035, even absent market impacts such as hurricanes or shortages.

 Exports of agricultural products totaling $115 billion to international markets as of 2007 would be jeopardized because U.S. competitors wouldn't operate under the same mandate, making their costs less.

 Most electricity providers in Utah would institute double-digit rate increases.

 Four economic studies on the national job losses caused by Waxman-Markey put the numbers at varying nightmarish scenarios, from The Brookings Institution's calculation of 1.7 million annually to the Heritage Foundation's prediction of 2.5 million annually from 2035-2050.

Closer to home, a Heritage Foundation report foretells nearly 24,000 jobs lost annually in Utah and an impact of more than $4 billion in losses to the state's gross product base in 2035.

The measure, which already has passed the House, will be particularly punitive to Utah and other states in the Intermountain West because so much of their power generation is derived from coal, said Kimball Rasmussen, head of Deseret Power.