In June 2015, the Environmental Protection Agency (EPA) released its proposed　Carbon Pollution Emission Guidelines for Existing Stationary Sources:  Electric Utility Generating Units (known as the “Clean Power Plan”), citing Section 111(d) of the Clean Air Act.  The Clean Power Plan sets carbon dioxide emission guidelines for states to follow in developing plans to address greenhouse gas emissions from existing fossil fuel-fired power plants.  By Summer 2015, the EPA will issue its final Clean Power Plan rules, and states will have a year to come up with compliance plans to meet state-specific goals set by the EPA.  The EPA reviews each state’s plan and either approves or disapproves it.  The Clean Power Plan compliance period begins in Summer 2020.

There are two main concerns with how the Clean Power Plan will affect Virginia’s economy.  First, the Clean Power Plan will affect energy reliability in the Commonwealth. A reliable supply of energy is a foundation of Virginia’s prosperity and quality of life.  The Clean Power Plan mandates the closure of coal-fired power plants which cannot be replaced without significant time and resources spent in additional infrastructure.  During the time of transition, and even after it, the availability of reliable energy in Virginia will be compromised.

Second, the Clean Power Plan will affect energy affordability in Virginia.  The Commonwealth’s homes and businesses rely significantly on fossil fuels for consistent, affordable energy in Virginia.  The Clean Power Plan limits the use of this affordable energy source and will significantly increase electricity prices paid by consumers.  The Virginia State Corporation Commission estimates the incremental cost of compliance with the Clean Power Plan at $5.5 billion, for just one of Virginia’s power companies.  As electricity becomes more expensive, the cost of producing goods and services in all economic sectors increases.  Businesses, in turn, will have smaller profit margins and less capital to invest and expand.

The Virginia Chamber believes that the nations’ economic competitiveness depends on a comprehensive, balanced energy policy.  As such, we support an energy plan in Virginia that:

Supports the full utilization of this country’s domestic resources to meet the growing needs of our population and business community—which creates jobs, increases government revenues and reduces energy prices;

Does not pick winners and losers among energy resources;

Recognizes that fossil fuels such as oil, natural gas and coal are necessary components of our energy supply mix;

Promotes the development of technological enhancements, but does not force them into the marketplace before they are cost-effective and financially and scientifically achievable; and,

Recognizes the nexus between end-prices of energy and the economic well-being of the Commonwealth.

The Virginia Chamber of Commerce stands ready and eager to work cooperatively with Virginia’s legislators to ensure that the EPA’s entire greenhouse gas regulatory agenda is cost-effective, attainable and avoids harming jobs and the economy.