Yesterday, Environmental Protection Agency (EPA) Administrator Gina McCarthy personally announced the long-awaited proposed rule to reduce emissions from America’s existing power plants. This complex rule has a preamble alone of over 600 pages. We are working our way through the text of the regulation, but a few things became clear from the start.
If this rule is allowed to go into effect, the administration for all intents and purposes, is creating America’s next energy crisis. Coal is one of America’s most vital fuel sources, currently providing nearly 40 percent of our nation’s power. It is also far more stable in pricing and supply than other sources. If we turn away from this natural resource now, we will be ill-prepared for America’s energy needs in the coming years. This could lead to rolling brownouts and blackouts, not to mention volatile price spikes for ratepayers year-round.
The expansive, expensive regulatory agenda put forward by EPA has already become a burden for American consumers and our nation’s economy. Contrary to what EPA tells us, it will be costly to our big cities and our small towns, as all communities grapple with less base load power fueling our electricity grid. It will be costly to our low- and middle-income families for whom electricity bills make up a significant amount of their monthly budgets already. They will continue to see those rates rise. And it will be costly to the hundreds of thousands of Americans who will lose their jobs when these regulations go into effect.
Reliable, low-cost power drives America’s economy, creating hundreds of thousands of jobs both directly and indirectly tied to the power generation industry. The total cost of the cumulative lost jobs and unemployed American workers are a huge price to pay for negligible environmental improvements. A recent paper released by ACCCE finds that the climate benefits of reducing carbon from America’s coal fleet are negligible. By 2050, eliminating our coal-based power plants would result in only 1% reduction in atmospheric CO2 concentration.
As I said yesterday, President Obama and EPA have chosen political expediency over practical reality as they unveiled energy standards devoid of commonsense. I look forward to weighing in on this proposed rule over the coming months and hope we can craft a final rule that makes far more sense for American than the one that has been proposed.