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Rep. Latta Supports Passage of Ratepayer Protection Act

Washington, June 24, 2015 | Dan Alfaro (202-225-6405)

Today, Congressman Bob Latta (R-OH) joined colleagues in passing H.R. 2042, The Ratepayer Protection Act, through the U.S. House of Representatives.

The legislation, a response to the U.S. Environmental Protection Agency’s (EPA) proposed Clean Power Plan, passed with bipartisan support 247-180.

The Clean Power Plan, proposed last June, is a rule for existing power plants. In the rule, EPA interprets a rarely invoked provision of the Clean Air Act that would allow the agency to set mandatory carbon dioxide (CO2) “goals” for each state’s electricity system.

The Agency proposal would require states to submit complex plans to EPA in 2016, and to begin to meet interim goals in 2020 and a final goal in 2030. Should a state not submit a plan that satisfies the agency, the EPA would impose a federal plan. EPA estimates annual costs of $5.5 billion to $7.5 billion in 2020 and $7.3 billion to $8.8 billion in 2030. 

H.R. 2042 provides a safe harbor for states to protect its ratepayers. Should a Governor determine the implementation of a State or Federal plan will have significant adverse effect on the state’s residential, retail, commercial, or industrial ratepayers, or on the reliability of the state’s electricity system, the state would no longer be required to implement the plan.

“The Clean Power Plan is a misguided proposal by the EPA that, once again, demonstrates the Agency’s unwillingness to work with the states in determining the best course of action as it relates to their specific energy needs,” said Rep. Latta. “This legislation effectively protects the ratepayers in Ohio and elsewhere by ensuring states retain control of their electricity markets, and are able to act in their own best interests.”

According to a summary of state concerns, “32 states made legal objections, 28 raised significant concerns regarding compliance costs and economic impacts, 32 warned electricity reliability problems, and 34 states objected to EPA’s rushed regulatory timelines.”

 

From the Summary:

Ohio Public Utility Commission: “Again, US EPA, through the CPP, takes an approach whereby it seeks to act in the energy industry without the requisite knowledge or understanding of the plan’s far-reaching impacts. The NERC Reliability Study highlights that the risks to reliability are legitimate. Reliability of the electric grid cannot be compromised, as the health of this nation’s economy and populous depends on the delivery of reliable energy. Based upon the NERC Reliability Study, it appears that the CPP and its ambitious implementation timeframe could inflict serious harm by jeopardizing reliability.”

“Given the combination of higher direct electricity costs and the fact that these costs would flow to every part of Ohio’s economy, Ohioans would undoubtedly face financial hardship as a result of the CPP’s sweeping reforms if the rule is finalized in its proposed form.”

Ohio Attorney General Mike Dewine:“The U.S. EPA’s proposed rule on greenhouse gas emissions from existing power plants breaches limitations enshrined in the Clean Air Act and extends far beyond the Agency’s authority in seeking to reconfigures the nation’s energy policies and priorities.”

“The proposed rule is anticipated to cost Ohio residents billions of dollars a year by 2025 while jeopardizing the reliability of our State’s electric grid – all without basis in the law.”

Ohio Environmental Protection Agency:“It is not possible for states to meet the deadline of 2020 for the initial reductions. States should not be penalized for the arbitrary dates in the Presidential order that were chosen without a complete understanding of the process needed to modify state legislation, propose and adopt rules, and then have the regulated entities have adequate time to initiate control measures.”

Under the proposed regulations, The Public Utilities Commission of Ohio predicted wholesale market energy prices will be 39 percent higher in the year 2025 and cost Ohioans approximately $2.5 billion.

“Affordable, reliable power is vital to Ohio’s economic development.  For years, jobs have come to Ohio because of the abundance of low electric rates, which is especially important for much of the energy-intensive manufacturing found in my district,” Rep. Latta continued. “The Ratepayer Protection Act guarantees states can keep energy prices affordable, and protect our families and businesses from the burdensome costs of these misguided regulations.”

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