Today, Science, Space and Technology Committee Chairman Lamar Smith (R-Texas) sent a letter to EPA Administrator Gina McCarthy calling for a more thorough cost-benefit analysis of the agency’s newly proposed electricity regulations.
In his letter, Smith roundly criticized the agency’s evaluation process, stating that “systematic biases and major omissions in EPA’s limited evaluation produced a cost-benefit analysis divorced from reality. Consequently, EPA’s Regulatory Impact Assessment fails to assess whether the proposed rule will achieve meaningful benefits and, more importantly, whether the benefits are worth the heavy cost.” Smith closed the letter by demanding that without “comprehensive energy and economic modeling,” rule making should not move forward.
The letter to EPA is Smith’s second one in three months and comes on the heels of a report released by NERA Economic Consulting. The report projects that EPA’s new proposals will cause double digit increases in the price of electricity across 43 states. Additionally, it predicts that compliance costs could end up totaling $400 billion over 15 years.