EPA RULES HITTING THE POCKETBOOK

Date: June 6, 2014

By: Bob Goodlatte

In lockstep with regulatory expansion in nearly every part of our economy, on June 2nd the Environmental Protection Agency (EPA) put forth yet another rule, this time attacking affordable and reliable energy. Once again, we see the Executive Branch bypassing Congress to enact far-reaching legislative policies that would hit families, small businesses, and manufacturers in the pocketbook.

The EPA’s proposed carbon emissions standard rule would place new limits on power plant emissions, requiring fossil fuel fired power plants, including those using coal to generate electricity, to reduce carbon dioxide emissions by 30 percent by 2030. Under this rule, each state will be responsible for drafting their own plan to reach mandated levels. The result would essentially be cap and trade by another name, which is legislation that the Obama Administration could not even push through a Democrat-controlled Congress in 2010. 

This rule could result in the shuttering of power plants throughout the nation that provide a large amount of America’s electricity. In fact, roughly 40 percent of our energy comes from coal. Those in states that rely heavily on this resource for energy, like West Virginia and throughout the Midwest, would be particularly impacted.

If you’ve looked at an electric bill lately, you know that energy prices are already on the rise, and that is before this rule is even enacted.  Energy increasingly represents a larger share of household budgets.  An unwelcome increase in electric bills leaves many families no other option but to cut elsewhere.  For businesses, higher overhead and higher energy costs mean less money to invest in job creation or expansion. As costs for businesses increase, so does the price of goods down the line. It triggers a chain reaction that can be felt throughout the economy. 

The House of Representatives has passed legislation that would counteract the EPA’s rule. The Electricity Security and Affordability Act, which I cosponsored, is a common sense solution to prevent the EPA from ramming cap-and-trade policies through, and would ensure the U.S. can continue using fossil fuels to generate power.  Another bill, the REINS Act, curbs unnecessary major regulations from agencies and holds federal bureaucrats accountable for imposing the heaviest burdens on America’s economy. It specifically requires that federal agencies submit major regulations to Congress for approval. 

It is important to reevaluate our energy policies. However, we cannot ignore the fact that America's economy is fundamentally linked to the availability and affordability of energy.  Enacting these stringent limits as proposed by the EPA would put the United States economy at a distinct competitive disadvantage.  We do not want to give businesses another reason to move operations overseas.  In order to rebuild a strong economy and create more jobs, we need reliable and affordable energy supplies. And the EPA’s latest rule is not part of this solution.