Coalition Support Letter for S1956 House Passage

Dear Representative:

We greatly appreciated the House’s leadership in approving the ‘‘European Union Emissions Trading Scheme Prohibition Act,” H.R. 2594 in the fall of 2011. In September, the Senate unanimously passed similar legislation, S. 1956, which will be considered by the House today. We strongly urge you to support this proposed legislation and recommend immediate passage.

This legislation allows the Secretary of Transportation to prohibit U.S. aviation operators from complying with the European Union’s Emissions Trading Scheme (EU ETS). The scheme – which imposes a hefty tax on U.S. passengers and aircraft operators for the sole benefit of EU coffers – violates U.S. sovereignty, international law and the Chicago Convention. The EU ETS is not only opposed by consumers, labor unions, aviation trade associations, airlines and other operators, travel service providers, and manufacturers. Over 26 countries have also voiced opposition to the scheme. Secretaries Clinton and LaHood and their staffs have repeatedly cautioned the EU to end the scheme’s application to foreign carriers and other aircraft operators. S. 1956 will send a very clear message to the EU that the U.S. will not tolerate this violation of sovereignty and long-standing international law. We urge strong bipartisan approval of this legislation in the House.

The EU ETS will do nothing to decrease aviation emissions. The solution to decreasing aviation emissions lies in an international agreement currently progressing through the International Civil Aviation Organization (ICAO) that is slated for consideration in October 2013 at that body’s Triennial Assembly. We support this process. ICAO is a proven leader for addressing the challenges facing global aviation, having already developed numerous global standards for aircraft noise and emissions. ICAO is also nearing completion of a historic certification standard for CO2 emissions.

Yesterday, in advance of the House considering this legislation, the EU announced it would not enforce the EU ETS with respect to international emissions until October 2013. However, the EU clearly stated that if enough progress was not achieved (in their judgment), they would automatically enforce the EU ETS. Since the EU’s announcement yesterday is simply a proposal and they have made it clear that they are only delaying enforcement until October 2013, it is critical that Congress send a strong message to the EU that imposing a unilateral scheme on U.S. passengers and carriers will not be tolerated. It was the specter of this legislation that prompted the EU to make their announcement to temporarily suspend their scheme yesterday.

The aviation industry has a strong record of fuel efficiency improvements and emissions savings, and is committed to even more. Aviation is the only industry in the world that has come together to establish clearly defined targets to reduce its dependence on oil and to reduce its carbon emissions. These targets, which include a 1.5 percent annual average fuel-efficiency gain through 2020, carbon-neutral growth from 2020, and a 50 percent net reduction in emissions by 2050, have been hailed by world leaders as a model for all industries. With fuel as the airlines’ and other operators’ highest and most volatile operating cost, we are highly incentivized to reduce fuel consumption and the resulting emissions, as our strong record of fuel efficiency and emissions savings attest.

If allowed to move forward, the EU ETS scheme will cost U.S. airlines, aircraft operators, and consumers over $3 billion dollars through 2020, threatening tens of thousands of jobs in the aviation, manufacturing, travel and hospitality industry. While representing only 2 percent of man-made CO2 emissions, civil aviation is responsible for over 5 percent of U.S. GDP and 10 million U.S. jobs. Airlines and other operators have operated with a razor-thin profit margin over the last 40 years and have lost more than $55 billion and 160,000 jobs since 9/11. The last thing our industry needs right now is this extraterritorial EU tax. And there is much at stake for the U.S. economy and other U.S. businesses as well.

This is not only a direct threat to our economy, but also sets a dangerous precedent. If the EU can tax emissions from a U.S. airline or aircraft operator over the entirety of a flight – including while on the ground in the U.S. and in U.S. airspace – what is to keep the EU from grabbing jurisdiction over emissions from U.S. businesses that export goods to Europe?

Your support of S. 1956 will help ICAO and the civil aviation industry reach our mutual goal of decreasing fuel consumption and emissions. Instead of negotiators being forced to accept a unilaterally imposed system by the EU, your support will allow negotiators to focus on the task at hand to address aviation emissions by completing and implementing a global agreement through ICAO.

Sincerely,

Aerospace Industries Association
Aircraft Owners and Pilots Association
Air Line Pilots Association
Airlines for America
Airports Council International - North America
American Society of Travel Agents
Cargo Airline Association
Consumer Travel Alliance
General Aviation Manufacturers Association
Global Business Travel Association
Independent Pilots Association
National Air Carrier Association
National Air Transportation Association
National Business Aviation Association
Regional Airline Association
Transportation Trades Department, AFL-CIO
Travel Tech: The Travel Technology Association
U.S. Chamber of Commerce
U.S. Travel Association