Dec. 12, 2012
NAM Report Questions Cost of EPA Regulations
A new study from the National Association of Manufacturers, Washington, D.C., claims six major EPA regulations will cost manufacturers hundreds of billions of dollars and cause the loss of several million jobs. Titled “A Critical Review of the Benefits and Costs of EPA Regulations on the U.S. Economy,” the study also finds these regulations will produce negative net benefits to society.
"This study clearly illustrates the layer upon layer of regulations that are weighing down manufacturers' ability to help lead our country's economic recovery," says NAM President and CEO Jay Timmons. "If we don’t return to a more sensible regulatory process, then manufacturers will face even higher energy prices, skyrocketing compliance costs, less investment opportunities and significantly fewer jobs. A devastating ripple effect will be felt throughout our entire economy, causing some manufacturers to close their doors for good."
The study examines the cumulative economic impact of the EPA's final Utility MACT and Boiler MACT rules, its still-pending Coal Combustion Residuals and Cooling Water Intake Structures regulations, and its expected Cross-State Air Pollution Rule and National Ambient Air Quality Standards for Ozone.
According to key findings of the report:
• The annual compliance costs for all six regulations range from $36 billion to $111.2 billion (by EPA estimates) and from $63.2 billion to $138.2 billion (by industry estimates).
• The total capital expenditures for all six regulations range from $174.6 billion to $539.3 billion (by EPA estimates) and from $404.5 billion to $884.5 billion (by industry estimates).
"In the past 30 years, more than 2,000 regulations have been imposed on manufacturers," adds Timmons. "It is already 20 percent more expensive to manufacture in the United States compared to our largest trading partners, and more regulations from Washington are only digging the hole deeper. As policymakers make critical decisions on the fiscal cliff and the challenges facing manufacturers, it's important they understand the enormous impact of existing and pending regulations on manufacturers' ability to grow and create jobs."