Cost of EPA rules will be extraordinarily high

As our nation continues to struggle to regain its economic footing, we need policies that energize job growth. It is no surprise that a number of states are challenging numerous recent regulations coming out of the Environmental Protection Agency (EPA). The EPA has been trying to usurp states’ rights to control the air permitting process for new industrial and power projects. Texas is one of several states that is rightfully fighting this and other overreaching EPA actions in the courts. The uncertainty caused by the EPA’s excessive regulatory behavior has resulted in construction delays, scaled-back projects and even the termination of some projects throughout the nation. Not only does this reduce manufacturing growth and the supply of energy, but it also destroys jobs. 

Earlier this year, the EPA finalized its emissions rules for industrial, commercial and institutional boilers and process heaters, Maximum Achievable Control Technology (MACT) and other standards. These regulations set emission limits for boilers and incinerators used in the industrial and manufacturing facilities of businesses that employ thousands of people in multiple industries. Some of the businesses that are severely affected by these standards include petroleum refiners, extractors of crude petroleum and natural gas, manufacturers of lumber and wood products, rubber and plastics products, pulp and paper mills, chemical manufacturers, and steel works among others. These rules also affect small businesses and the operations of commercial buildings, colleges and universities, hospitals and medical centers, city and municipal buildings, and others. 

These standards will impact more than 200,000 boilers and incinerators, and while the Clean Air Act authorizes regulation of these types of sources, the cost to implement the rules as published by EPA this past March will be extraordinarily high. Overall, the EPA itself estimated that complying with their rules would cost $5.8 billion in capital, and around $2.2 billion annually. 

Estimates by regulated entities have projected that the Boiler MACT rule alone will be much higher and will cost the manufacturing industry over $14 billion in capital costs and threaten 224,000 jobs. That number doesn’t even take into account the billions more that will be spent in annual operating and other costs.  

After issuing the standards and receiving an overwhelming volume of comments expressing concern with the fast pace for implementing these rules, the EPA asked a federal court for an additional 15 months to re-propose the rules and solicit more public comment. However, the court denied the request and instructed EPA to issue the rules within 30 days.  

In order to give the EPA the time they requested to get this right, a number of my colleagues and I who sit on the House Energy and Commerce Committee introduced the EPA Regulatory Relief Act. 

This bill will give the EPA time to develop achievable and affordable standards for the Boiler MACT and three other interrelated rules. Under this measure, the EPA will have an additional 15 months to revise and finalize the regulations for boilers and incinerators. It will also extend compliance deadlines from three to at least five years to give facilities enough time to meet the standards. Most importantly, it will ensure that the new regulations are actually achievable by real-world facilities and that the rules employ the least burdensome alternatives available under the Clean Air Act. 

This legislation will ensure a necessary and proper balance between improving air quality and protecting our economy. Common sense can go a long way when exercised appropriately. A strong economic recovery can be achieved through a stable regulatory environment where businesses can make solid long-term decisions that will allow for job growth and expansion. 

Rep. Pete Olson is a member of the House Energy and Commerce Committee.