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July 30, 2014

Committee Holds Hearing on EPA’s Proposed Clean Power Plan

(Washington, DC) – Today, the House Committee on Science, Space, and Technology held the first in what the Committee Majority says will be a series of hearings on the Environmental Protection Agency’s (EPA) proposed rule to cut carbon emissions from existing power plants known as the “Clean Power Plan”.

In September 2013, EPA proposed a rule to establish carbon pollution standards for new power plants, a prerequisite for the current proposal, the Clean Power Plan, which establishes state-specific goals to control carbon pollution from existing coal-fired and natural gas-fired power plants. According to EPA, the proposed rule will cut carbon emissions from the power plant sector by 30 percent by the year 2030 compared to 2005 levels. Under the proposal, EPA estimates the climate benefits and health co-benefits at $30 billion and $23 to $59 billion per year in 2030, respectively, with the cost of compliance estimated at $7.3 to $8.8 billion per year in 2030. The estimated health benefits include the avoidance of 2,700 to 6,600 premature deaths and 140,000 to 150,000 asthma attacks in children. Additionally, EPA estimates that increasing the use of energy efficiency measures under the proposal will result in residential electricity bills being 9 percent lower in 2030 compared to current electricity rates.

Ranking Member Eddie Bernice Johnson (D-TX) said in her opening statement, “Today we will hear from some Members and witnesses that EPA is acting beyond its authority, and that EPA regulations are killing the economy and jobs. This is not a new argument, but one that we have heard time and time again. Whenever, EPA proposes an action that will protect the air we breathe or the water we drink, industry raises alarms about the purported negative impact on the economy.”

She continued, “This proposal like the rest of President Obama’s Climate Action Plan, is the bold step forward our nation needs to address the impacts of climate change…The scientific evidence confirms that we need to act now to lessen these impacts. Cutting carbon emissions from the power sector is critical to any solution and that is why I support the Clean Power Plan. It sets reasonable limits that take into account the characteristics of each state. It is based on strategies already in use such as improving energy efficiency and power plant operations, and encouraging the development of renewables. And finally, it provides the states with flexibility; EPA is not prescribing a specific set of measures. States will choose what goes into their plans and they can work alone or as part of a multi-state effort to achieve meaningful reductions.”

Dr. David Cash, Commissioner, Massachusetts Department of Environmental Protection, testified as to the success the Commonwealth of Massachusetts has had in implementing the Regional Greenhouse Gas Initiative (RGGI), a cooperative market-based regulatory program to reduce greenhouse gas emissions. RGGI is the first mandatory, market-based CO2 emissions reduction program in the United States. The Clean Power Plan would allow for the use of market-based, multi-states efforts such as RGGI in meeting the state-specific carbon reduction goals. He also described how investments in energy efficiency, renewable energy, and other consumer benefit programs are having a positive impact on state economies and job growth, and how RGGI can serve as a model for what can happen nationally. 

Democratic Members and Dr. Cash discussed a number of issues including grid reliability; how climate risk is being included in business models; how previous Clean Air Act regulations have spurred innovation and technology advancement; how energy efficiency improvements can reduce carbon emissions and provide economic benefits to consumers; how EPA’s proposed rule provides flexibility to states; and the opportunity for economic growth and a cleaner environment.

Dr. Cash said, “EPA conducted an unprecedented amount of outreach to states and other key stakeholders during the development of this proposed rule, recognizing the need for flexibility and the diversity of initiatives and programs that states are currently pursuing… EPA should be commended for developing a proposed rule that recognizes the diversity amongst states and provides a flexible approach to compliance. By providing the states with this flexibility, Massachusetts believes the plan will not only aid in the effort to reduce carbon pollution, but will also help our nation develop an advanced energy infrastructure that delivers cleaner air, smarter energy use, an improved economy and new local jobs.”

He also said in response to questions about the proposed rule’s impact on residential electricity bills, and the importance of expanding renewable energy, “Our rates have dropped by about 8% in the RGGI region. That was one of the driving reasons that we got engaged in this, for the cost savings. And while you mention the subsidies that are now received [by renewables], we have historical subsidies to fossil fuels that go back a hundred years. So clearly, the playing field is not level for renewables at this point. These subsidies that both states and the federal government are doing are trying to get that level playing field so we can see the kind of cost reductions, both on rates and on bills, that this kind of regulation, and what state activities are doing throughout the country are reaping for their customers.”

Ms. Johnson said, “The track record of the Clean Air Act speaks for itself. Since its adoption in 1970, air pollution has declined by more than 70 percent and the American economy has more than tripled. Now, more than ever, the American people need a strong EPA. I firmly believe we can have a vibrant economy and a safe and healthy environment. The Clean Power Plan puts us on the path to achieving both.”