Today, the House Energy and Power Subcommittee held a hearing on a discussion draft legislation from Representative Ed Whitfield (R-KY) that would require increased transparency regarding the economic impacts of EPA regulations. Since 2009, EPA has issued or proposed an unprecedented number of regulations which increase the cost of energy, limit fuel diversity and place tremendous economic burdens on manufacturers. In a 2012 study released by NAM, it was estimated that, by conservative estimates, the cost of just six EPA rules would cost roughly $100 billion annually and more than 2 million jobs. In a worst-case scenario, the regulations could mean the loss of $630 billion, 4.2 percent of GDP and more than 9 million jobs.
The Energy Consumers Relief Act of 2013 would require EPA to submit a report to Congress projecting energy cost increases and employment effects on any EPA rule estimated to cost more than $1 billion. In addition, the discussion draft would prohibit EPA from finalizing any of these billion dollar rules if DOE, in consultation with FERC and EIA, determine that they would cause significant adverse economic effects.
As manufacturers await rules regulating everything from water used for cooling systems to greenhouse gas emissions, we need more transparency in rulemakings, and checks and balances to ensure we are not regulating the economy back into recession.
Greg Bertelsen is director of energy and resources policy, National Association of Manufacturers.