EVA Report on the Costs of Recent EPA Regulations

cropped-bob-shapiro.jpg   By Bob Shapiro

The previous post mentioned a study done by Energy Ventures Analysis (EVA) of the effects of EPAs latest regulations. This study is so important that I have devoted a separate post to it.

The EVA study is 41 pdf pages long. I reprint below a small part of their Executive Summary showing part of their cost analysis. These costs are

ignored by EPA but are devastating to the US Economy, but are especially hurtful to the poor.

If I were a suspicious person (I guess I am), I would suggest that these regulations are so destructive of our country that it likely was implemented through funding from one of the US’s several enemies. I expect it was one of these three: China, Russia, or Islam.

If this third possibility surprises you, then you may want to do some research to put Islam’s threat to the West into perspective. One place to start is in the video below, showing the history of the spread of Islam.

While I can’t vouch for the correctness of the facts, they sound reasonable to me. Please note: The presenter’s style is very anti-Islam.

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An excerpted portion from the EVA Report:

A great deal of research has been put forward to assess the impact of the Clean Power Plan (CPP) on the U.S. economy. Most has focused on the incremental costs of the CPP relative to a particular base-line. The purpose of this study by Energy Ventures Analysis (EVA) is to better understand the cumulative impact the proposed CPP, recent air regulations and other market forces will have on both the U.S. economy as a whole and on average U.S. households. The study analyzes the increases in electricity and gas costs from 2012 (the base year of EPA’s CPP proposal) to 2020, the first year of EPA’s interim CO2 targets.

The cost comparisons are presented in both nominal and real dollars. However, because income growth is being outpaced by inflation for many Americans (the lower earning half of U.S. households experienced a 25% decline in real income from 2001-2014), the authors of this report believe that it is more appropriate to focus on the results in nominal terms.

  • Annual power and gas costs for residential, commercial and industrial customers in America would be $284 billion higher ($173 billion in real terms) in 2020 compared to 2012—a 60% (37%) increase.
    • Electricity cost increases represent $177 billion ($98 billion) and natural gas increases represent $107 billion ($75 billion) of the $284 billion ($173 billion) cost increase from 2012 to 2020.
  • In 2020, annual residential power and gas costs would be $102 billion ($87 billion) higher and would continue to escalate in subsequent years.
  • Average annual household gas and power bills would increase by $680 ($293) or 35% (15%) from 2012 to 2020.
    • Annual average electricity bills would increase approximately $340 ($102) or 27% (8%) from 2012 to 2020.
    • Annual average home gas heating bills would increase approximately $340 ($190) or 50% (28%) from 2012 to 2020.
  • The cost of electricity and natural gas will be impacted in large part due to an almost 135% increase in the wholesale price of natural gas (100% in real dollars), from $2.82/mmbtu in 2012 to approximately $6.60/mmbtu ($5.63) in 2020. These increases are due to baseline market and policy impacts between 2012 and 2020 as well as significantly increased pressure on gas prices resulting from recent EPA regulations on the power sector and the proposed CPP.
  • On a percentage basis, the U.S. industrial sector would be affected most severely, as its total cost of electricity and natural gas would approach $200 billion ($170 billion) in 2020, a 92% (64%) increase from 2012.
    • Increased operational costs in the industrial sector are of particular concern for energy intensive industries in the U.S. such as aluminum, steel and chemicals manufacturing, which require low energy prices to compete.
    • Industrial power consumers would be expected to pass energy cost increases on to their customers, affecting the costs of goods purchased by American consumers over and above increased monthly utility bills.

Read the whole report now.

 

 

 

 

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