NERA predicts severe economic impacts from EPA Clean Power Plan
Significant negative economic impacts could result from the U.S. Environmental Protection Agency's (EPA) proposed plan to regulate carbon dioxide (CO2) emissions from existing fossil-fuel power plants under section 111(d) of the Clean Air Act, according to a new analysis from NERA Economic Consulting.
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EPA's Clean Power Plan proposal sets state CO2 emission rate targets for 49 states based on four EPA "building blocks;" The analysis is based on combinations of building blocks that states might use to comply with the EPA targets.
Specifically, NERA projects that the costs to comply with EPA's proposed Clean Power Plan could total more than $366 billion. Further, 43 states will have double-digit electricity price increases, with 14 states potentially facing peak year electricity price increases that exceed 20 percent, NERA predicts.
NERA also predicts that EPA's proposal could cost consumers and businesses $41 billion or more per year -- outpacing the costs of all Clean Air Act rules for power plants in 2010 ($7 billion) and the annual cost of the Mercury and Air Toxics Standards rule ($10 billion).
Most concerning to organizations like the American Coalition for Clean Coal Electricity (ACCCE), who was one of several groups to commission the report, NERA says the proposal could force the closure of over 45,000 MW of coal-based electricity, which is more than New England's entire electricity supply.
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report
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