About the Coalition for American Jobs
In 2011, the U.S. Environmental Protection Agency (EPA) took action that could jeopardize the nation’s job creation agenda and lead to significant burdens on energy-efficient technology investment, state resources, and the ability to move forward on a reasonable climate policy.
In April 2010, EPA issued rules regulating greenhouse gases (GHGs) from new cars and light trucks. Once EPA issued the rule, it was required under the Clean Air Act to regulate GHG emissions at as many as six million of America’s industrial facilities, power plants, hospitals, small businesses and commercial establishments, known as “stationary sources.” EPA and the states will have to issue permits to each new regulated stationary source and to existing sources that make major modifications.
What will this mean?
- Investment in American manufacturing and clean energy technologies will come to an immediate halt, putting creation of many new jobs at risk. Since rules for regulating GHGs at stationary sources do not exist, regulatory confusion and a flood of permit applications will cause U.S. business expansion and energy efficiency investment projects to be delayed, curtailed, or even cancelled. These are the very investments that the Administration and Congress have promoted as key to economic recovery and job creation.
- At a time of record state budget deficits, the extra cost and burden of permit changes will further constrain state resources. Although EPA has proposed a “tailoring rule” to focus the stationary source requirements on larger facilities (i.e. raising the threshold for GHG emissions from 250 to 25,000 tons per year), the approach fails to address the fact that even at the proposed 25,000-ton threshold, every major new energy efficient technology will be subject to the rule. What’s more, it’s not clear that EPA has the legal authority under the Clean Air Act to change the threshold. If it does not, then virtually all U.S. sources of GHGs would be subject to the new permitting requirements. EPA estimates this could be as many as six million sources. The states will largely be responsible for processing the permits.
- Development of a reasonable climate policy will be jeopardized. In the State of the Union address, President Obama called on Congress to pass comprehensive energy and climate legislation to transition the United States to a clean energy economy. Progress on this goal will be hampered by EPA regulation of GHG emissions at stationary sources.
What needs to be done?
The Administration and Congress can promote a reasonable policy outcome that makes sense for the U.S. economy, jobs and the environment by taking prompt action to postpone EPA regulation of GHGs from stationary sources under the Clean Air Act.
What is the Coalition for American Jobs?
We represent American businesses, industries and others concerned about the impact of potential EPA action on job creation, including the growth of green jobs. Arbitrary, premature EPA regulation of stationary sources of greenhouse gases would threaten the jobs and livelihoods of millions of Americans, along with the nation’s economic recovery.