Pointing out the high costs of electricity in states that have implemented climate regulations similar to EPA’s proposed Clean Power Plan, Senator Bill Cassidy tells EPA Administrator Gina McCarthy, “states that emit the most carbon have the lowest energy costs [while those] that emit the least have the highest — in some cases triple…” Administrator McCarthy responds, “I guess I’m not disagreeing with your– the facts that you’ve outlined them just there.”
SENATOR CASSIDY: “In a previous conversation we’ve had, I’ve made the point that if the Clean Power Plant [sic] rule raises energy costs, that will put our economy at a economic disadvantage relative to countries overseas which frankly will continue to pollute or emit carbon. Now, we wanted to test this hypothesis, so we took all the states in the United States, and we looked at those which have the easiest compliance with the Clean Power Plant [sic] rule, i.e. they currently emit the less [sic], and those states that are going to have the hardest time, they emit the most. And, turns out there is kind of an inverse correlation with electricity costs. So, if you look at RGGI states for example, the Northeast, they have electricity costs that are three times higher than that for a state like Montana.”
ADMINISTRATOR MCCARTHY: “Mmmhmm (affirmative).”
SENATOR CASSIDY: “Now, I think I remember you saying, ‘No, it’s possible to lower emissions without raising the costs’, but I’ll just say it, baseline, these states which have the lowest emissions of carbon already have triple the cost of their electricity.”
[…]
SENATOR CASSIDY: “Empirically, though, it is true. Those states that emit the most carbon have the lowest energy costs. Those that emit the least have the highest — in some cases triple — and if input of your costs of energy is an input of your cost of production, intuitively companies are going to move where that cost is lower.”
ADMINISTRATOR MCCARTHY: “I guess I’m not disagreeing with your– the facts that you’ve outlined them just there. My disagreement may be with what would the impact of regulating greenhouse gas emissions have.”
Hearing to Review the FY17 Environmental Protection Agency Budget Request
Interior, Environment, and Related Agencies
Senate Appropriations Committee
April 20, 2016
