EPA Carbon Rule Based on Questionable Calculations of Energy Demand

Posted by Mike Duncan at 2:25 pm, June 19, 2014

Lately, we’ve been taking a hard look at some claims made in the roll-out of the Environmental Protection Agency’s carbon regulation for existing power plants. An Opinion Editorial I penned was featured in The Hill today, refuting six unsubstantiated claims and questionable facts. We’ve seen the misleading claims and want to make sure the reality of America’s energy situation doesn’t fall to the wayside. A recent Wall Street Journal article, “What’s the Real Cost of the EPA’s Emissions Cap?” demonstrates the faulty logic and fuzzy math employed by the Environmental Protection Agency (EPA) in setting standards for its greenhouse gas rule.

EPA based its calculations on one fundamentally erroneous assumption: that Americans will use less energy in the future. Conventional wisdom, not to mention the government’s own data, however, tells a very different story. As the piece says, the federal Energy Information Administration (EIA) recently forecast that electricity demand will, in fact, grow 0.9% every year until 2040.

But even if EIA’s data isn’t convincing on its own, conventional wisdom reaffirms that EPA’s postulation falls flat on its face. Simply put, the world in which we live demands more energy. Every day, Americans are using more mobile devices; more electric cars are driving on U.S. roads; and our population continues to rise. And it is low-cost, reliable baseload power from coal that supports economic and societal growth.

EPA is hedging its bets on largely unproven energy efficiency programs that pose enormous cost and implementation challenges. States that have experimented with such measures have yielded, on the whole, less-than-stellar results. The agency’s proposal sets pie-in-the-sky expectations for these programs that, in turn, inflate calculations across the board and set the stage for wholly unrealistic and unachievable standards.

While EPA’s rule clearly misses the mark on many counts, I fear that troubling revelations such as EPA’s calculating method will be unearthed as we more fully probe the measure. EPA needs to get back to reality, readjust its standards using more grounded data and stop misleading the American people about the true costs of its rule.

 


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