Yet another overreaching regulation is set to come out of the EPA, which will cost jobs, deter economic recovery, and increase energy costs.  The Utility Maximum Achievable Control Technology rule (MACT) would reduce mercury deposition by an estimated 5 percent, costing $10 Billion, which is even more costly and less effective than Cap and Trade.  Many experts see this as an attempt to shut down a large portion of the coal-fired power fleet.  In short, mercury regulation is all cost and no benefit.

This aggressive overreach by the EPA is part of the Clean Air Act. Full compliance is required by 2015.  Because of the short time line between implementation and compliance, following the MACT rule is almost impossible for the power companies to follow.  And the regulations would require power companies to spend billions of dollars on unproven technology.

Most alarming though are the increases in energy costs.  A recent analysis by the National Economic Research Associates (NERA) estimates it will cost the energy sector $184 billion to comply. Of course those costs will be passed along to consumers.  NERA estimates 12.7% increase in energy costs here in North Carolina.

Why does this matter?  Because we spend a great deal of our income on energy.  According to a new report from the American Coalition for Clean Coal Electricity….

In 2010, North Carolina households with annual incomes below $50,000, representing 56% of North Carolina’s population, spent an average of 21% of their after-tax income on energy. Energy costs for the poorest households earning less than $10,000 represented 72% of their family incomes, before accounting for any state energy assistance.

The MACT rule is a job killer as well.  NERA estimates 1.4 million jobs would be lost nationally.  They estimate 47,000 jobs will be lost here in North Carolina.

The damage could be mitigated if President Obama signs an executive order delaying the deadline for compliance.

A Wall Street Journal op-ed encourages President Obama to sign an executive order at least until the economy recovers.  Manufacturers are up in arms over the potential increased energy costs and further loss of manufacturing jobs.  President Pro Tem of the Senate Phil Berger and Speaker of the House Thom Tillis have sent letters to Obama’s advisors asking for a consideration of the costs and delayed timeline for North Carolina to comply with the Utility MACT rule.

Paul Dreissen at the Heartland Institute summarizes the impact of MACT and other EPA overreaches:

“The Environmental Protection Agency is setting the stage for a national disaster.”