Devastating Report Details Impacts of Obama’s EPA Regs on Louisiana

March 2, 2015
Press Release

WASHINGTON, D.C. - Congressman Steve Scalise (R-La.) today released the following statement in response to a Pelican Institute policy brief published in conjunction with a study by the Beacon Hill Institute at Suffolk University, regarding the economic impacts on Louisiana of the Obama Administration’s environmental regulations put in place by the Environmental Protection Agency (EPA).

The Pelican Institute found that three of the EPA’s regulations will have the following effects on Louisiana:

  • 22%: The amount by which electricity prices will increase on families in Louisiana.
  • 16,260: The number of jobs Louisiana will lose by 2030.
  • $968 million: The total cost of the three EPA regulations to Louisiana.
  • $1,962: The amount by which real disposable income in Louisiana will fall by 2030.

“This study confirms what hard-working taxpayers have suspected – these EPA regulations will have a devastating impact on Louisiana families and cost us thousands of jobs while reducing our standard of living,” Rep. Scalise said. “The Obama Administration’s radical global warming agenda is devastating to American energy, and these unobtainable proposals will lead to more electricity plants being shuttered and higher costs for families. The findings of the study show that President Obama and his liberal lieutenants will pursue their radical agenda regardless of the devastating impact on our economy, including thousands more good jobs being shipped overseas, and they must be rejected!”

Specifically, the policy brief focuses on the economic impacts of the EPA’s Mercury and Air Toxics (MATS) rule and the two carbon dioxide emissions standards for new and existing power plants. 

Last week, Rep. Scalise questioned Environmental Protection Agency (EPA) Administrator Gina McCarthy about the economic effects of these EPA rules on Louisiana. Below is a transcript of his remarks at the hearing with EPA Administrator Gina McCarthy.


SCALISE: I want you to answer some questions about a study that just came out by the Beacon Hill Institute at the Suffolk University in Boston. I’m not sure if you are familiar with the study that just came out. Definitely with Suffolk University! They just came up with an economic impact study on the effects of the new EPA rule on United States and I would ask unanimous consent if we could submit this report into the record.

COMMITTEE: Without objection

SCALISE: In this report they go through and they break down not only national impacts, which are devastating, but they go state-by-state. So, in my state of Louisiana the Pelican Institute for Public Policy which looks at a lot of this information and looks at economic data,they one went and broke this down and looked at the report, and according to what they have seen you would have an impact in my state of Louisiana alone of increase in utility rates by 22 percent. Electricity prices would go up 22 percent by 2030. The state of Louisiana alone would lose over 16,000 jobs based on these rules. You just have to ask …and I will read a quote from Kevin Kane, who is the president of Pelican Institute, “along with the significant costs it is worth noting the increases in electricity prices would disproportionately affect lower income Louisianans to spend approximately 70 percent, seven-zero, 70 percent of their after tax income on energy. These costs need to be taken in to consideration by state and federal policy makers.” Are y’all taking in to consideration devastating impacts like this on rules that you are proposing where you would increase people’s electricity rates? Lower-income people that would be harmed heavily by this by 22 percent and over 16,000 jobs lost in one state alone. And, of course, the national impact this would have?

MCCARTHY: I don’t know what study you are talking about, or what rules they are looking at, but I do know that

SCALISE: This is the Suffolk University study that looks at the impact of the EPA rules.

MCCARTHY: I’m happy to take a look at it but I know that Congress has actually charged us to do exactly that. To take a look at the cost and benefits of all the economic impacts.

SCALISE: So I would urge you to look at this study and taking the impacts to see if it will hurt…

MCCARTHY: And we have done that and we have not seen the damage that you are indicating. We have seen…

SCALISE: What we have seen is a 340% increase in electricity prices in the Midwest alone. It’s happened. This isn’t a study. That happened in the Midwest. Anyway, if you can look at this study-

MCCARTHY: Ok, I would be happy to.

SCALISE: -in relationship to these propose rules, please don’t kill all of these jobs.

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