Beginning today, Georgians will have their first and only opportunity to be heard in person about policies that would have a disastrous impact on the state’s economy. The EPA chose Atlanta as one of just four cities to host a public hearing on its proposal to regulate carbon emissions from America’s power plants.
EPA’s proposal represents one of the largest regulatory efforts in our nation’s history, fundamentally altering the way we power our homes and business. Georgia has traditionally relied on a diverse electricity portfolio drawing roughly one-third of its power each from coal, natural gas and nuclear. This diversity helps contribute to better reliability and more stable electricity prices. EPA’s proposal, however, would force Georgia to turn away from this sound approach.
Under EPA’s proposal, Georgia would be required to reduce the carbon emissions rates of its electric plants by 44 percent – the sixth-largest emissions reduction requirement of any state. EPA assumes Georgia can accomplish this by reducing its electricity from coal by 34 percent; increasing electricity from non-hydro renewable energy sources by more than 200 percent; and reducing consumers’ electricity use by more than 10 percent. These assumptions are unrealistic at best and unachievable at worst.
EPA acknowledges that its plan would increase electricity rates but the plan, released just last month, is more than 1,600 pages long so its impacts are still being studied. The Natural Resources Defense Council (NRDC), however, issued a model plan that EPA lifted heavily from to shape their own proposal. An analysis of that plan found that electricity prices in Georgia could increase by as much as 35 percent.
Often overlooked is how dramatic spikes in electricity prices hurt the most vulnerable citizens. The less a household earns, the more they are impacted by energy costs. Georgia households that earn less than $50,000 annually spend roughly 24 percent of their after-tax income on energy.
For families on the lowest rung of the economic ladder, the disparity is even greater. The 329,000 Georgia households earning less than $10,000 spend a whopping 86 percent of their household budget on energy costs. Many of these families receive state and other energy assistance to help reduce costs, but double-digit increases in electricity rates would assuredly set them even further back.
In addition to families, Georgia’s employers also stand to be hurt by EPA’s proposal — particularly those in energy-intensive industries like manufacturing. More than 11 percent of Georgia’s economic output is owed to manufacturing, which employs nearly nine percent of the state’s workforce. As electricity prices go up, many Georgia manufacturers will look to cut costs elsewhere.
What is already clear about EPA’s proposal is that it will hurt many states, businesses and workers. Unfortunately, there has been little time to fully analyze the proposal. As a first step, the EPA should extend their comment period, add more public hearings, and include opportunities for stakeholders to ask questions.
The Partnership for a Better Energy Future (Partnership), a coalition of business organizations representing more than 80 percent of the American economy, last week sent a letter to the EPA making this request. The Partnership represents many organizations in Georgia, including the Georgia Chamber of Commerce, the Georgia Association of Manufacturers and the Georgia Railroad Association.
EPA needs to ensure that the state of Georgia is more than a prop in this process. The state, its businesses and its people deserve more time and more answers from the EPA.
