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House GOP Leader: EPA Carbon Standards Would Devastate Power Plants, Destroy Jobs

Rep. Dave Reed (R-Indiana), the newly elected House Republican Majority Leader, sent a letter on November 24 to Gina McCarthy, Administrator of the U.S. Environmental Protection Agency, explaining his opposition to the agency’s plan to enact President Barack Obama’s proposed emission regulations for power plants.

The “Clean Power Plan” calls for a 25 percent reduction of greenhouse gas pollution by 2030.

“This is certainly a laudable goal, but these new regulations would also lead to the closure of power plants, and as a result, the additional closure of coal mines and trucking companies across the country, but especially in places such as Indiana County,” said Rep. Reed, who will become House Majority Leader on December 1. “The communities I serve rely on family-supporting jobs at a number of plants which would be directly affected by these new rules.”

Rep. Reed pointed to the success of an emissions-reduction project at the Homer City Generating Station. The plant undertook a $750 million project to install a scrubber system, greatly reducing emissions and demonstrating a commitment to protecting the environment, fulfilling the needs of the power grid and protecting jobs in the nearby communities.

“The power plants in this area are among the biggest employers in Indiana County,” Rep. Reed said. “The project in Homer City should stand as an example that government can work with these job creators to limit emissions while protecting jobs which have sustained countless families for generations.”

In the letter, Rep. Reed made the following recommendations to the EPA in regard to the emission regulations:

— The rules should give states flexibility to maintain a diverse power supply, including the continued use of coal power plants. Not only does this protect jobs, but it also can shield electricity consumers from fuel disruptions and price spikes.

— The EPA should be required to take into consideration all reductions in greenhouse gas in each state, including those from power plant retirements which have occurred since 2005.

— States should have the flexibility to construct greenhouse gas emission reductions that are reasonably achievable at the plant level, ensuring each power plant is able to manage its compliance in the new program.

— The EPA’s plan should permit states to take into account the economic and practical realities of electric generation, including the massive upfront investment to build and operate the plant. With many examples, including the Homer City Generation Station, of plants working to reduce emissions, these plants should be given time and flexibility in achieving compliance.

— It is imperative that the proposed program permit states to take all steps possible to minimize job losses. This is a consideration particularly critical to Indiana County, which depends on energy-related jobs.

Over the past year, the Commonwealth has prepared for these new regulations, through public meetings held by the Department of Environmental Protection and hearings held by the House and Senate committees on Environmental Resources and Energy.

The governor also signed Act 175 of 2014, also known as the Pennsylvania Greenhouse Gas Regulation Implementation Act, which creates the framework of the state plan and ensures that public hearings will be held before its enactment and that the Legislature will oversee the process.

“I look forward to continuing to advocate on behalf of Indiana County and the energy jobs which are so important to its economy,” Rep. Reed added. “Continued job losses in the energy industry would be devastating for not only our county, but the entire Commonwealth.”

A copy of the letter is available online.

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