Study shows EPA regs will cost, not create, jobs

posted at 10:01 am on June 20, 2011 by Jazz Shaw

Earlier this month we covered the latest round of EPA regulations for the energy industry, specifically in the form of the Maximum Achievable Control Technology (MACT) requirements and the long term impact they might have on both jobs and energy prices in the United States. Now, a new independent study has quantified these projections and the news isn’t good.

A new analysis (PDF) just released by National Economic Research Associates (NERA) shows that two costly Environmental Protection Agency (EPA) proposed regulations on the utility industry will cost jobs and also drive up electricity prices.

Specifically, the study looked at the economic impacts of the EPA’s proposed Transport Rule and the Maximum Achievable Control Technology (MACT) requirements for power plants. This demonstrates what we have been saying here at the National Association of Manufacturers, that the continued overreach by the EPA will hurt jobs throughout the country.

How big do they expect the impact to be? The study estimates that the proposed changes “would lead to nationwide employment losses totaling 1.44 million job-years by 2020 and increase Americans average electricity bills by 11.5 percent.” (To avoid confusion, the term “job-year” equates to one full time job for one person for one year.)

Less easily quantified, but also of great concern, is the fact that manufacturers of all stripes use approximately 1/3 of all the electricity in the country. They pay utility bills just like the average consumer, and power costs are factored into their overhead. When manufacturers see a more than 10% increase in electricity costs, those expenses will be reflected in what they must charge for their goods with the final bill once again being passed on to the consumer. (And that’s in addition to the aforementioned consumer already being hit with a bump in their own utility bills at home.)

Paging Darrell Issa to the white courtesy phone. If you really want something to hold hearings on, let’s have a bright, public spotlight trained on this situation before power plants start shutting down across the country.

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Shouldn’t that be “EPA regs, unexpectedly, will cost jobs”?

teke184 on June 20, 2011 at 10:03 AM

Captain Renault Award® of the Day

MassVictim on June 20, 2011 at 10:08 AM

teke184 on June 20, 2011 at 10:03 AM

Since there has never been a regulation that created more jobs than it cost I think “unexpected” is certainly the proper term here.

NotCoach on June 20, 2011 at 10:08 AM

Eliminate the EPA, Departments of Energy and Education. Let the states manage their own resources and educational needs free of Washington.

Roy Rogers on June 20, 2011 at 10:10 AM

Nuclear, Coal, and Oil production are under attack from the EPA. It’s almost like the government doesn’t want us to recover from this recession. We need to hit back.

Oil Can on June 20, 2011 at 10:10 AM

The “job-year” sounds like a really dumb way to measure economic activity. It kind of assumes already that all jobs are equivalent, as if we would rather have 10,000 blacksmiths pounding out nails than ten mechanists running an automated nail line.

Count to 10 on June 20, 2011 at 10:12 AM

The EPA needs to be dissolved. Preferably NOW. It has long since outlived whatever limited usefulness it ever had, and has now become dangerous.

Priority number one for any new GOP majority needs to be the immediate dissolution of the EPA, along with 4/5ths of the rest of the alphabet-soup agencies, and a minimum of a 50% downsize to the remaining ones, along with a Constitutional Amendment that clearly states that no powers specifically enumerated to the 3 branches of the government may be delegated to any other branch, office, or agency within or without the federal government.

We can no longer allow unelected bureaucrats to have the power to create law.

wearyman on June 20, 2011 at 10:14 AM

That girl must have an unlimited talk and text plan – every time I see her, she’s on that phone.

Ward Cleaver on June 20, 2011 at 10:15 AM

teke184 on June 20, 2011 at 10:03 AM

Since there has never been a regulation that created more jobs than it cost I think “unexpected” is certainly the proper term here.

NotCoach on June 20, 2011 at 10:08 AM

Which is the truth, but the running joke in the media is that EVERYTHING showing the economy getting worse under Obama is “unexpected”.

teke184 on June 20, 2011 at 10:16 AM

Roy, some form of interstate regulation of pollutants is necessary, simply because otherwise one state could dump polutants on another. The push needs to be for limiting the EPA to that role.

Count to 10 on June 20, 2011 at 10:17 AM

Ward Cleaver on June 20, 2011 at 10:15 AM

We didn’t see the poor dear for several weeks. Guess she only found some temp work.

red131 on June 20, 2011 at 10:20 AM

This, like Operation Fast and Furious, is designed to force the people into a more progressive society, ie. less freedom. Capitalism has to go and freedom must be curtailed to make way for “state capitalism” which is the new name for fascism.

cartooner on June 20, 2011 at 10:21 AM

Increase the unemployment rate to crisis levels, so that massive increases in governmental assistance spending can get rammed through under the guise of providing a solution to the government-created crisis.

Increase the cost of energy to crisis levels so that massive increases in “green energy” subsidies can get rammed through under the guise of providing a solution to the government-created crisis.

Collapse the home mortgage market so that massive increases in government interference and spending can get rammed though under the guise of providing a solution to the government-created crisis.

Smuggle guns into Mexico to worsen the violent crime crisis, so that massive new regulations and restrictions on the private possession and transfer of firearms can get rammed through, under the guise of providing a solution to the government-created crisis.

Stop me when you’ve discerned a pattern.

Bruce MacMahon on June 20, 2011 at 10:22 AM

Is that Weiner behind our old friend, the red head on the cell phone?

Dingbat63 on June 20, 2011 at 10:24 AM

Redistributing the misery.

Bishop on June 20, 2011 at 10:25 AM

Is that Weiner behind our old friend, the red head on the cell phone?

Dingbat63 on June 20, 2011 at 10:24 AM

No, he’s sending her some pictures via Text Messaging instead.

teke184 on June 20, 2011 at 10:26 AM

Count to 10 on June 20, 2011 at 10:17 AM

There may be some logic to what you say, but only for real pollutants. Not CO2. You know that toxic and corrosive gas that would kill us all if it did not exist in our atmosphere.

CO2 IS KILLING ALL OUR VEGETATION PEOPLE! WAKE UP BEFORE IT’S TOO LATE!!

NotCoach on June 20, 2011 at 10:27 AM

Who would honestly think that increased regulations would create jobs?

John Deaux on June 20, 2011 at 10:29 AM

…along with a Constitutional Amendment that clearly states that no powers specifically enumerated to the 3 branches of the government may be delegated to any other branch, office, or agency within or without the federal government.

wearyman on June 20, 2011 at 10:14 AM

The government laughs at the Constitution now, why would they follow it with that amendment?

Rebar on June 20, 2011 at 10:29 AM

I hope that redhead brought a charger for her phone-the battery must be running pretty low after 3 years.

Dr. Carlo Lombardi on June 20, 2011 at 10:30 AM

Roy, some form of interstate regulation of pollutants is necessary, simply because otherwise one state could dump polutants on another. The push needs to be for limiting the EPA to that role.

Count to 10 on June 20, 2011 at 10:17 AM

Prior to the creation of EPA, that function was fulfilled by the Interstate Commerce Commission and the Department of the Interior.

Hauling or otherwise moving waste materials across state lines is properly under the jurisdiction of the agencies responsible for regulating movement of materiel, and monitoring land use.

EPA was not necessary for this function before 1970. It is not necessary for it now, either. Even before EPA, violators could be prosecuted, and were.

cheers

eon

eon on June 20, 2011 at 10:32 AM

The most corrosive atmospheric conditions in the galaxy and we just accept it. The EPA needs to ban oxygen.

Bishop on June 20, 2011 at 10:32 AM

The most corrosive atmospheric conditions in the galaxy and we just accept it. The EPA needs to ban oxygen.

Bishop on June 20, 2011 at 10:32 AM

What about dihydrogen monoxide? It just caused billions in damage in the middle of the country, causing people to flee for their lives.

teke184 on June 20, 2011 at 10:36 AM

OT-

SCOTUS has sided with Wal-Mart in the sex discrimination class action suit.

The women who filed charges in the Ninth Circus can continue their suits, but they won’t have standing to be treated as a class covering 1.6 million female employees.

teke184 on June 20, 2011 at 10:40 AM

teke184 on June 20, 2011 at 10:36 AM

Don’t forget that allowing ebil corporations to stockpile this dangerous chemical by the billions of tons caused untold devastation in Japan.

NotCoach on June 20, 2011 at 10:41 AM

Talk to anyone who does business with China…it isn’t the wages that make the difference in competition…wages only account for 18% of a products cost of production.
It’s the lack of gov. interference that makes China more productive…they don’t have to have HR departments, attornerys who specialize in EPA, human resources, accounting, tax law, etc. They don’t have, city, county, state, federal taxes…they aren’t taxed for inventory, than taxed when they sell that inventory…they aren’t taxed when the transfer raw products to be processed, they don’t have transportation tax, gas tax, use tax, EPA, OSHA, handicapped parking regulations, landscaping demands, audits, paint booth certificates, the list is endless of regulations for U.S. companies, and few for Chinese companies…but the EPA is gearing up to be the most invasive of all…

right2bright on June 20, 2011 at 10:42 AM

The EPA could ban water AND oxygen thereby keeping the corrosive and polluting effects of rust and erosion at bay forever.

Come on, PBHO, mandate that all Americans must breathe pure methane and replace their blood with liquid silica. Do it for the Earth, do it for the children.

Bishop on June 20, 2011 at 10:42 AM

The most corrosive atmospheric conditions in the galaxy and we just accept it. The EPA needs to ban oxygen.

Bishop on June 20, 2011 at 10:32 AM

Exactly, and removing that evil substance would cut down on fires by 100%…according to Smoky the Bear…

right2bright on June 20, 2011 at 10:44 AM

Roy, some form of interstate regulation of pollutants is necessary, simply because otherwise one state could dump polutants on another. The push needs to be for limiting the EPA to that role.

Count to 10 on June 20, 2011 at 10:17 AM

I find your lack of faith in the states ability to manage itself as a member of this Union, disturbing.

Roy Rogers on June 20, 2011 at 10:45 AM

…despondent readheads hardest hit.

batter on June 20, 2011 at 10:50 AM

Morons like Deval Patrick here on Bacon Hill can’t kill jobs fast enough with these green scams. They want to be out front on killing jobs to gain favor with the green scam movement.

shanimal on June 20, 2011 at 10:59 AM

EPA pollutes freedom and shuts down prosperity.

Its legacy is toilets, cars, showers, soap, and citizens which no longer work.

The EPA cannot be shut down too soon!!! And all of its stupid and unnecessary regulations need to die with it!!!

landlines on June 20, 2011 at 11:05 AM

manufacturers of all stripes use approximately 1/3 of all the electricity in the country. They pay utility bills just like the average consumer

No, manufacturers DON’T pay utility bills just like the average consumer. In most markets, consumer utility prices are subsidized by higher rates for businesses. If businesses are using 1/3 of the electricity, that means they’re paying about 2/3 of the bills.

All this crap about lowering your thermostat and filling your tires a little bit more doesn’t amount to a hill of beans. When energy prices go up, productivity goes down.

logis on June 20, 2011 at 11:14 AM

logis on June 20, 2011 at 11:14 AM

logis is correct. Businesses pay a ‘peak rate billing’ rate thats much higher than the ‘residential’ rate.

Now, another feature of SmartGrid is to be able to charge residential owners the SAME PEAK RATE BILLING as businesses.

Cool huh? They’ll probably do it anyway, using AT&T like cap limits…use over ‘X’kWh and pay an extra 30%.

orbitalair on June 20, 2011 at 11:35 AM

LIKE A LASE I TELL YA

ROFLMMFAO

donabernathy on June 20, 2011 at 11:52 AM

Paging Darrell Issa to the white courtesy phone. If you really want something to hold hearings on, let’s have a bright, public spotlight trained on this situation before power plants start shutting down across the country.

Hear, hear!

And thanks, Jazz, for your updates on the left’s power grabs under the veil of climate change and environmentalism.

petefrt on June 20, 2011 at 12:25 PM

Eco-marxists don’t care about private sector jobs… green or any other kind. They only care about growing government and public employee unions. The environment is a cause they use to bring about a socalist dystopia, not something they care about for its own sake.

theCork on June 20, 2011 at 12:29 PM

Thank you Richard Nixon.

And thank you in advance for Homeland Security, George W. Bush.

Lanceman on June 20, 2011 at 1:02 PM

Count to 10 on June 20, 2011 at 10:17 AM

The problem is that the EPA and other agencies violate the separation of powers design, and exercise executive, legislative, and judicial authority all in one agency. And independent means un-accountable.

Enforcement belongs to the executive branch, making law is Congress’ job, and the only judges in the federal government should be Title III judges, no “administrative law” judges, period.

LarryD on June 20, 2011 at 1:20 PM

This nonsense is based on the extra-legal assertion by little Bammie’s EPA that CO2 is a pollutant. This is nonsense. A Republican administration taking over the EPA can simply reverse that nonsense and that in itself will defang the EPA.

slickwillie2001 on June 20, 2011 at 1:47 PM