EIA Study Reaffirms CPP's Impact on U.S. Economy
A new study released from the Energy Information Administration (EIA) discussed the Environmental Protection Agency’s (EPA) Clean Power Plan (CPP). Last August, the EPA released the final version of the CPP, which is projected to kill thousands of jobs, reduce GDP, and increase energy prices.
The EIA states that the CPP will mean higher prices for residential and commercial electricity, which translates over from the higher transmission and distribution costs. It is noted within the EIA study that electricity prices will increase with rising fuel costs and expenditures for electric transmission and distribution infrastructure. Also confirmed by this study is that residential and commercial electricity prices are significantly higher than industrial prices; this mainly reflects the higher costs of distribution services for residential and commercial customers.
In addition to the EIA study, multiple sources have stated that the EPA’s proposal of the CPP is harmful to economic growth and American families. The EPA’s proposal is the MOST expensive environmental regulation that has ever imposed on the electric power sector, costing at least $41 billion per year. This added expense will be especially harmful to low, middle, and fixed income families. The 60 million low and middle income households in America have witnessed a 22% decline in income and a 27% increase in energy costs; not to mention those who are dependent on Social Security, such as fixed-income seniors, are being hit the hardest by rising energy costs. Low and middle income households spend more than twice as much as high-income households for energy.
EIA projects that although energy consumption is projected to grow from 2015-2040, that higher energy prices could reduce the demand for energy. This is due to the fact that consumers will face higher energy costs if the EPA continues their over regulation. Consumers should not have to lose out on an abundance of affordable energy that America has to offer because of the Obama Administration’s and unelected bureaucrats “green” agenda.
Charles McConnell, the former Obama Administration’s Department of Energy Fossil Fuel Director, recently told a congressional panel that the EPA’s plan of regulation is “ideological mumbo jumbo” and he states that it will NOT significantly affect global CO2 emissions. McConnell, now executive director of Rice University’s Energy and Environment Initiative, also explained that his ideology “is not against climate regulations, but against stupid regulations”, such as the Administration’s CPP plan.
A study from the Manhattan Institute points out the CPP will have no measurable impact on world climate. The study cites an EPA-sponsored climate model showing that the CPP will have an estimated impact of less than 0.01 degrees Celsius by the year 2100, which essentially is all cost and no benefit for U.S. consumers and businesses
Supporters of the EPA proposal ultimately argue that the U.S. must play a leadership role in reducing CO2 emissions. The EIA claims the initial impact of the CPP was to lower CO2 emissions; however, the EIA fails to mention the increase in CO2 emissions from emerging nations such as China, India, and Asian nations. With the large amount of added expenses the CPP will burden consumers and businesses with; one would expect the CPP would have larger effects on domestic CO2 emissions. Once again, we have failed leadership from our Administration that will only hurt, not help, American families and businesses.
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