Position on EPA Clean Power Plan
The U.S. Chamber is leading a coalition of 15 trade associations in a lawsuit challenging the legality of the EPA’s Clean Power Plan. To support this effort, 166 state and local chambers from 40 states filed a single amicus curiae (“friend of the court”) brief in the D.C. Circuit. The State and Local Chambers amicus brief will argue (1) that the Clean Power Plan harms state and local economies, with little to no benefit, according to the EPA; and (2) that the Clean Power Plan violates federal law by upsetting the balance between federal and state regulatory authority.
The Billings Chamber of Commerce has asked to be listed in the “amicus” brief as opposing the EPA Clean Power Plan. The Bureau of Business and Economic Research estimates that within three years of implementation, Montana will suffer a loss of 7,100 jobs resulting in a loss of over $500 million in annual income received by Montana households. Additionally, Montana could realize a loss of more than $1.5 billion in sales by Montana businesses and organizations. An independent analysis by NERA Economic Consulting has projected that this will increase state electricity prices by an average of 20 percent annually and up to 28 percent in peak years. Currently, electricity rates in Montana are less than nine cents per kilowatt-hour – more than 15% below the national average – making Big Sky Country the 12th best state for rates. Ultimately, we could realize a decline in population as Montana’s economic opportunities worsen relative to other states.
“This Plan has far-reaching ramifications that go far beyond the intent and scope of the Federal Government,” remarked John Brewer, president and CEO of the Billings Chamber of Commerce. “The proposed rule has potential to impact a significant number of our 1,200 member businesses, both directly and indirectly.”
The EPA released its final rule for its Clean Power Plan that requires the reduction of CO2 emissions commonly known as greenhouse gases. Montana, arbitrarily assigned the highest reduction rate in the country at 47%, stands to endure significant, widespread economic impact. In a document prepared by the Bureau of Business and Economic Research at the University of Montana, three major changes from the status quo were identified:
- The closure and decommissioning of existing generation facilities in Montana will have a ripple effect on coal mines and transmission lines in addition to the decommissioning of power plants such as Colstrip.
- The need for construction and operation of new, less CO2-intensive generating facilities with the necessary infrastructure to support them.
- Changes will happen in wholesale and retail electricity markets that reflect the changes specified above, resulting in much higher charges to every Montana resident and business that uses electricity.
Twenty four states and a coal company filed lawsuits over the EPA’s Clean Power Plan. “The Clean Power Plan,” which requires states to reduce carbon dioxide emissions from power plants 32 percent by 2030, is intended to help slow climate change resulting from the burning of fossil fuels. The plan has been the target of legal challenges and legislative campaigns since it was proposed in 2014 and finalized in August 2015. In a 5-4 ruling, the Supreme Court issued a stay on the plan until it is allowed to run its course. A decision in the case is likely to be issued by the Court of Appeals for the D.C. Circuit later this year. From there, the challenge is expected to make its way to the Supreme Court, which recently ordered the EPA to halt all implementation and enforcement actions on the rule until it has the opportunity to consider the case.
The Billings Chamber is resolved to follow this issue and represent the voice of Billings business. Our mission to develop a strong business climate and vibrant economy by serving the community in a leadership role thereby enhancing the quality of life is directly challenged by this issue, and we strive to ensure our community’s voice is heard.