EPA Continues Job Loss Proposals

June 10, 2011
Press Release

WASHINGTON, D.C. – Representative Bob Gibbs (R-OH) released the following statement today regarding the Environmental Protection Agency’s (EPA) Clean Air Transport Rule (CATR) and Utility Maximum Achievable Control Technology (MACT) proposals:

“At a time when Ohio families are already suffering from record high energy prices, the EPA continues to inflict further damage to the economy with more proposed burdensome regulations. Estimates I have seen have the impact of these rules resulting in the closure numerous coal generating plants, with no replacement, increasing the cost of electricity for my constituents and eliminating jobs.”

In a recently released report, it is estimated that these regulations will drastically increase Ohio electric rates and create a LOSS of almost 54,000 jobs for Ohioans, decreasing our competiveness and the possibility of interruptions in service because of less generation capacity. In response to the job loss and the increased cost of electricity numbers EPA indicated that these were acceptable impacts. Congressman Gibbs said, “EPA is out of touch with the realities of our current economy and these types of regulations are not acceptable.”

“EPA has proposed unreasonable standards with short compliance deadlines and will impose substantial costs and great uncertainty without significantly improving air quality. In the meantime, EPA should give the power plants more time to come into compliance. As the U.S. economy struggles to get back on track, now is not the time to allow the EPA to impose what could prove to be the most costly, burdensome, and expansive set of job-destroying regulations ever crafted. Instead, we must block the EPA’s runaway regulations to save countless jobs and protect our economy from the tens of billions of dollars their backdoor energy policies would cost.”

NOTE: According to a recent study by the National Economic Research Associates Inc., the new regulations would cost power companies an extra $17.8 billion per year, and electricity prices would rise by an average of 11.5 percent across the country, with double-digit hikes for

ratepayers in 21 states. In Ohio, rates could increase 11.9 percent by 2025. The total direct and indirect job losses from the EPA regulations, for all of Ohio, would be 53,500. NERA also said that the total national US direct and indirect job losses from the proposed EPA regulations would be 1.44 million.

EPA proposed the Clean Air Transport Rule (CATR) to be applicable to 31 states and Washington, D.C. Separate requirements would be imposed for annual reductions in SO2 in 2012 (Phase I) and 2014 (Phase II) and NOx annual reductions and ozone-season NOx reductions in 2012. Intrastate and limited interstate trading would be allowed based on state budgets.

The EPA proposed national emission standards to establish maximum achievable control technology standards for hazardous air pollutant emissions from coal- and oil-fired electric generating units—the "utility MACT" rule. The agency unveiled the proposed rule on March 16.