Senator urges White House to assess economic impact of GHG rules
Washington (Platts)--28Feb2011/533 pm EST/2233 GMT
US Senator Sherrod Brown Monday asked the White House to assess the
economic impacts of federal regulation of greenhouse gas emissions on
the electric power sector and manufacturing and explore a settlement
with energy-intensive industries.
The Ohio Democrat has long championed the concerns of heavy industry
during congressional attempts to cap GHG emissions and maintains that a
collaborative approach would help keep US manufacturers competitive.
President Barack Obama in January called for a government-wide review of
rules and regulations to ensure they were promoting economic growth
while protecting public health and safety.
"As part of the review process, I urge you to include an assessment of
the economic repercussions and potential unintended consequences of the
greenhouse gas regulation on manufacturers, farmers, electric power
generators, and our nation's economy as a whole," Brown wrote the
president.
Using its authority under the Clean Air Act, the US Environmental
Protection Agency issued GHG permit regulations for new and modified
electric generation units on January 2 and plans to impose performance
standards on existing power plants and oil refineries by May 2012.
Brown said these rules must be reconsidered amid concerns about their
unintended consequences that could "undermine" the objectives of
reducing GHG emissions and boosting economic growth.
Brown said "a comprehensive strategy of investments and well-defined
incentives can drive innovation and encourage long-term investments much
needed by manufacturers and industry."
The senator pointed to the agreement achieved last year between the US
Environmental Protection Agency and the auto industry in drafting final
rules to regulate GHG from new model cars and light trucks and achieve
higher fuel economy standards.
"It makes sense to explore similar opportunities with other industries,"
Brown wrote. "I believe that through collaborative approaches like
these, we can reduce greenhouse gas emissions, save consumers money, and
address our dependence on foreign oil."
Neither industry nor environmental groups said work on such a settlement
was underway.
"We're always talking with industries, but I don't know of a specific
parallel in the offing," said David Doniger, the Natural Resources
Defense Council's climate change policy director.
The National Association of Manufacturers declined to "speculate" on a
possible settlement. "We remain very concerned with the regulations
coming out of the EPA and on how they will impact manufacturers," NAM
spokesman Jeff Ostermayer said.
--Cathy Cash,
cathy_cash@platts.com
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