Abby L. Harvey
GHG Monitor
6/26/2015
Members of both chambers of Congress this week debated the potential effects of the implementation of the Environmental Protection Agency’s proposed carbon emissions standards for coal-fired power plants on ratepayers during two separate hearings. The regulation in question, dubbed the “Clean Power Plan,” would require states to develop action plans to meet state-specific federally-set carbon emissions targets. Complying with the rule may cause states to shift from coal-fired electricity generation to more costly sources, in turn resulting in an increase in electricity rates, opponents of the rule said. However, those supporting the regulation charged that demand-side energy efficiency could decrease electric bills, regardless of rate increases. “The parts of the country that have invested the most in energy efficiency are places where there is a much bigger economic gain per dollar spent on energy by consumers and by the total economy. The fact that people talk about rates just clouds the fact that in fact what customers do each month is write check for their bill,” Susan Tierney, Senior Advisor at the Analysis Group, said during a hearing of the House Committee on Science, Space and Technology.
Republicans pushed this point, however, given the price difference between energy efficient products and those with standard efficiency. While purchasing energy efficient products may result in long-term savings, many low-income families may not be willing or able to make the initial investment. “When you take a family on a low income and they need a new air conditioning system, and the standard efficiency is going to cost them let’s say $5,000, but a high efficacy system is going to cost $8,000, trust me, based on 34 years’ worth of experience in the Gulf Coast of Texas, they’re going to opt for the lower efficiency equipment,” Rep. Randy Weber (R-Texas) said at the House hearing.
Higher Rate and Lower Bill System Has Worked
At a hearing of the Senate Committee on Environment and Public Works, also this week, Joseph J. Martens, Commissioner of the New York State Department of Environmental Conservation, explained that under the Regional Greenhouse Gas Initiative (RGGI), low and moderate income ratepayers have seen a decrease in their electricity bills. RGGI is a multi-state cap-and-trade program consisting of nine Northeastern states. “We had an independent study done by the Analysis Group that quantified the benefits over a three-year period of 2009-2011; $1.3 billion in reductions in bills over the RGGI region, $1.6 billion in extra or incremental economic activity. It’s been an extraordinarily positive experience. All the while the region has experienced economic growth. We’ve reduced bills. We’ve reduced bills for low and moderate income families,” Martens said.
The success of RGGI serves as proof that action to combat climate change does not have to result in economic hardship for citizens, Sen. Ed. Markey (D-Mass.) said at the Senate hearing. “I’m just afraid that so many of the people are just pessimistic, in general,” Markey said. “They’re just not optimistic about our ability as Americans to be a global leader, to use new technology, to invest in the future, to protect young people and our economy at the same time.”
