Upton & Whitfield Alarmed EPA Boiler Rule Change will Cost Hundreds of Thousands of Jobs - Reps. Urge Commerce Secretary to Release Pivotal Economic Analysis
Commerce study is critical with EPA decision less than 6 weeks away - expected capital losses as high as $20 billion
U.S. Reps. Fred Upton (MI-06) and Ed Whitfield (KY-01), senior Republicans on the House Energy and Commerce Committee, today called on the U.S. Secretary of Commerce to immediately release the department's economic impact analysis of EPA's Boiler Maximum Available Control Technology (MACT) rule. Upton and Whitfield are gravely concerned with various reports that forecast drastic costs and crippling job losses resulting from EPA's proposed rule change. Time is critical as final rules are expected by January 14, 2011.
In the letter to Commerce Secretary Gary Locke, Upton and Whitfield wrote, “It is our understanding that the U.S. Department of Commerce has conducted an economic impact analysis of the Boiler MACT rule, including its impact on manufacturing and employment, but that despite the importance and relevance of the analysis, it has not been publicly released. The Commerce Department is to be commended for examining the economic impacts of EPA’s rules, which helps fulfill its mission to ‘advance economic growth and jobs and opportunities for the American people.’ But in order to benefit from the study’s findings, we request that the Commerce Department share them with Congress, other administrative agencies, and the American public.”
Upton and Whitfield also expressed their alarm to Locke, writing, “The Commerce Department’s analysis may be especially important given the sharply contrasting results of other Boiler MACT studies to date. While EPA projected $9.5 billion in total capital costs, a study by IHS Global Insight on behalf of the Congress of Industrial Boiler Owners (CIBO) found capital costs of $20 billion. The CIBO study and one by the paper industry predicted the loss of hundreds of thousands of American manufacturing jobs. We are also troubled by comments from the U.S. Small Business Administration, which warned of ‘significant new regulatory costs’ for ‘businesses, institutions and municipalities across the country.’ With interagency review slated to begin within days, time is short to understand any economic and jobs impacts from the Boiler MACT rule and make appropriate changes to the final regulations.”