Studies Confirm the Negative Economic Impact of Boiler MACT Rules

By September 12, 2011Energy

The American Forest and Paper Association (AF&PA) and the Council of Industrial Boiler Owners (CIBO) released studies last week which show that the Environmental Protection Agency’s (EPA) Boiler MACT rules will cost jobs and hurt economic growth.

The AF&PA press release on its study states that, “as many as 36 mills across the country and more than 20,000 primary pulp and paper industry jobs would be at risk of elimination due to the costs of implementing . . . pending Boiler MACT and other air regulations . . .”

CIBO’s study examines 26 industry sectors concluding that, “the final Major Source Boiler MACT Rule for Industrial, Commercial and Institutional (ICI) boilers and process heaters could put more than 230,000 existing jobs at risk.”  According to the CIBO press release , manufacturers will spend approximately $14.3 billion to comply with the rules. This is capital that could be used to grow and expand businesses at a time when we desperately need to be creating new jobs.

The impact of the implementation of these rules on the manufacturing community cannot be marginalized in light of our ongoing struggles for economic recovery. By imposing this suite of MACT rules, the EPA will continue constraining manufacturers, the engine of economy, from both maintaining existing jobs and creating new ones.

That is why the NAM continues to urge Congressional support of S. 1392 and H.R. 2250, the EPA Regulatory Relief Act. This legislation will stay the entire suite of rules while providing the EPA with more time to make these regulations achievable in practice.

Alicia Meads is director of energy and resources policy, National Association of Manufacturers.

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