Study confirms EPA’s proposed carbon regs will fuel spike in energy costs

New analysis predicts that compliance with EPA’s proposed greenhouse gas regulations could total upwards of $366 billion. As jarring as the numbers are, they’re of little surprise to farmers and ranchers who have been warning that the regulations would greatly jeopardize the availability of an affordable and reliable supply of energy. The analysis, provided by NERA Economic Consulting, also finds that 43 states will have double-digit electricity price surges, with 14 states potentially facing peak-year electricity price increases that exceed 20 percent. Much of NERA’s cost projection is based on consumers having to spend more than $500 billion to reduce their use of electricity. Last June, President Barack Obama issued an executive memorandum directing EPA to put in place new rules to limit carbon emissions from both new and existing power plants. These two regulations set the stage for similar regulations directed at other sectors of the economy like refining, chemicals, natural gas development, iron and steel, livestock operations and pulp and paper. In addition to the staggering $41 billion-plus annual price tag, NERA analysis also finds that the proposals could shutter 45,000 megawatts or more of coal-based electricity, which is more than the entire electricity supply of New England. The proposed rules , which the administration has dubbed its Clean Power Plan, fail to take into account farmers’ and ranchers’ leadership in producing and using clean, renewable fuels, said Andrew Walmsley, American Farm Bureau Federation energy specialist. Further, while the administration’s proposals come with significant costs for all consumers, they’ll provide very few, if any, environmental or health benefits. “Unfortunately, this plan does little to address the problem it seeks to solve,” Walmsley said. “Merely reducing fossil fuel emissions without producing a measurable impact on world temperature or climate cannot be regarded as a success.” “Instead, EPA’s plan will affect all Americans negatively, and farmers and ranchers will be especially hard hit because of the energy intensive nature of producing food, feed, fuel and fiber,” he added. For farmers and ranchers in a large part of the country, coal supplies all or most of their electricity. As coal plants in these areas age and are de-commissioned, these proposed rules will prevent the construction of a reliable and affordable source of electricity to take their place...more