President Obama Escalates his War on Fossil Fuels
EPA's New Regulations Will Cost Jobs and Raise Electricity Prices, says the National Center for Public Policy Research
Washington, D.C. - Following the release of new regulations issued by the Environmental Protection Agency (EPA), today policy experts from the National Center for Public Policy Research are calling attention to the economic harm that will be caused by the agency's assault on coal-fired electricity generation.
"EPA's new Cross State Air Pollution Rule will add significant compliance costs to electricity generation and force utilities to close power plants. Given our daunting economic challenges it's outrageous that President Obama is advancing regulations that will cause layoffs and lead to higher electricity prices," said Tom Borelli, Ph.D., director of the National Center's Free Enterprise Project.
"The economic consequences of EPA's new regulations are real. American Electric Power (AEP) has already announced it will close power plants and the company will be forced to spend billions of dollars to comply with EPA's requirements. The cost of EPA's crackdown on utilities will be passed on to consumers and small businesses," said Tom Borelli.
In June, anticipating EPA's new requirements, AEP – an Ohio based utility – announced it was closing five power plants and scaling back operations at six additional facilities. AEP estimated that its actions will cost about 600 jobs that generated approximately $40 million in annual wages. AEP also noted the compliance costs will result in an abrupt increase in electricity prices.
"With many families already struggling with high gasoline prices, it's shocking that Obama is advancing regulations that will add additional financial burdens to strained budgets of hardworking Americans. Rising energy prices are regressive in that they hit families in the lower income bracket harder than those with higher incomes," said Project 21 Fellow Deneen Borelli.
"Obama's war on fossil fuels is a war against hardworking American families. It's tragic that the president is siding with the desires of the social and environmental elite over needs of families who can least afford to pay higher energy prices. Ironically, Obama is responsible for waging environmental class warfare against low- and fixed- income families while his fellow elites remain unaffected," added Deneen Borelli.
The National Center For Public Policy Research is a conservative, free-market non-profit think-tank established in 1982. It is supported by the voluntary gifts of over 100,000 individual recent supporters. Its 2010 revenue was over $12 million. It receives less than one percent of its revenue from corporate sources. Contributions are welcome and appreciated.