Hearing of the Environment Subcommittee of the House Science, Space, and Technology Committee - U.S. Energy Information Administration Report: Analysis of the Impacts of EPA's Clean Power Plan

Hearing

Good morning and welcome to today's Joint Subcommittee hearing examining the
EPA's regulation for existing power plants, known as the Clean Power Plan. Today, we will hear from
the Energy Information Administration regarding their recent analysis of the EPA's plan, as well as a
panel of expert analysts with experience assessing EPA regulations.

The Energy Information Administration, or EIA, is housed at the Department of Energy, and provides
economic analysis on energy use around the world. EIA was designed to serve a non-partisan analytical
organization, so policy makers could make sound decisions based on reliable economic data.

Accordingly, after the Obama Administration's Clean Power Plan was released, Chairman Smith
requested that the EIA conduct economic modeling to determine the impact the rule would have on the
American economy if it was fully implemented.

The EIA's analysis shows that the EPA's rule could cause significant damage to the economy,
increasing electricity prices, causing job losses, and limiting economic growth long into the future. By
increasing the cost of electricity, the Clean Power Plan would make it harder for the American people to
start a business or make ends meet.

A family of four could see thousands of dollars in increased costs per year as the Clean Power Plan is
implemented, with costs peaking in 2025 when the average family will see an increase in cost of over
$1700 per year.

The Obama Administration admits that these regulations will not stop climate change. Data produced by
the EPA show that the Clean Power Plan would eliminate less than one percent of global carbon
emissions.

But what the EIA's report and many other independent assessments of the Clean Power Plan confirm is
that eliminating affordable, reliable power will increase the energy prices for the American people.

Higher energy prices will increase costs across the nation -- from electricity to gasoline to food. Higher
costs will drive companies out of business, kill good jobs, and leave even more Americans unemployed.
The Obama Administration claims these regulations will lead to new, innovative, energy technologies.

But innovation simply does not occur in an overregulated, lagging economy.

Driving the American economy over a cliff is not going to kick start innovation in energy technology.
I want to thank Mr. Gruenspecht and all our witnesses for testifying to the Committee today, and I look
forward to a review of the impact of EPA's proposal.

From our witnesses prepared testimony alone, it's clear that the EPA's Clean Power Plan will have a
significant impact on the American economy.

We can't afford to high-jack economic growth by regulating affordable energy out of business. Instead,
the federal government should focus on investing in research and development, and breaking down the
regulatory barriers that stop the development of innovative technology in its tracks.

Getting the federal government out of the way will make more affordable, reliable power available to
America's job creators and grow our economy.

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