# AFP-GA Testifies on the EPA Proposed Power Plant Rule EPA Public Hearing for the Clean Power Plan for Extsting Power Plants and the Carbon Pollution Standards for Modifted Sources - Atlanta, Georgia; July 29, 2074 

## To the Administrators: Thank you all for the opportunityto speak today. My na£ichaelHarden andJ am the State director for the Georgia chapter for Americans for Prosperity, the nation'Stirgesttree-market advocacy group, with more than 2 million activists nationwide andthe more than 55,000 activists in Georgia. AFP is committed to promoting energypolicies that provide affordability andreliability for all Americans. I am here to talk about the controversial proposed Obama administration rule requiring states to reduce their carbon emissions by 30 percent of2005 levels. Although overall the reduction is 30 percentby 2030, the EPA set unequal reductions across the states, with this misguided new mandate falling more heavily on some states, who will be forced to comply with even more draconian limits. Our state will face one ofthe largest reductions in carbon emissions- 44% of2012levels

- whichwill have a huge impact on Georgiabusiness and working families in terms ofenergy affordability, job creation, and economic growth . 1These new rules would require our energyproducers to buyexpensive retrofitting equipment, impose expensive new fuel switching and 

### I or green energy mandates, or by shutting down plants entirely - the costs ofwhich will inevitably pass onto energy consumers in the form ofhigher rates. Currently, Georgia has 9 coalpowerplants that generate one-thirdoftheir electricity from coal.2 It ranks 14th among the states in terms ofcoal use. 3 Coal and natural gas remain the most cost-effective and reliable options for electricity generation in the state, andtheir widespread use helps contribute to Georgia's below-average electricity prices.4 

## Higher Utility Bills and Shrinking Family Budgets This is a pocketbookissue. Federal micromanaging ofGeorgia's electricity generation portfolio will invariably cause electricity prices to rise, andhigher electricity bills are badnews for struggling Georgia families - and the most vulnerable families will be the hardest hit. The median Georgia family already spends roughly $1800 oftheir disposable income on residential energy alone. 5 With these regulations, costs will increase significantly, leaving Georgians with less moneyin their pockets for essentials such as health care and groceries. Even worse, higher energyprices disproportionallyeffect those who can least afford it, those who are struggling the most in the down economy. Those earningbetween $10,000 and $30,000 peryear will, on average, spend almost 10% of their disposable income on their residential energyneeds. 6 1

## The Rules Will Kill Jobs Because such a significant portion ofGeorgia's electricity comes from coal, the EPA regulations would have an overwhelming negative impact onjobs in the Georgian economy with ramifications reaching well beyond the 19,500 employed in the utilities sector. The relatively cheap energy prices have been essential to growing the Georgia manufacturing industry. Companies such as Caterpillar, Shaw andMohawkIndustries have all expanded in recent years, bringing in more than 16,000jobs and $1 billion in investments. According to Roy Brown ofthe Georgia Association ofManufacturers, this growth has been "driven bythe advantage that we are seeing come to us in terms ofenergy prices:' This advantage currentlyheld by Georgiawouldvirtuallydisappearwith these new EPA regulations, and with it billions ofdollars in economic activity andthousands ofGeorgiajobs each year. More directly, forcing the closure ofcoal powerplants would have a significant impacts on the communities inwhich theyoperate. One coal power plant in Coosa, a plant which couldbe forced to close underthe new EPA rules, operates in Floyd Countywhere it is responsible for 10 percent ofthe local tax revenue. Closing the plant would be devastating to a communitywith an employment rate of7.9 percent and a poverty rate oftwentypercent. 7 These new rules will have a secondaryimpact on businesses elsewhere in the economy. Even ifbusinesses' energy demands remain constant the price to produce their goods and services will increase. Any increases in businesses cost means fewer resources to hire new employees or expandtheir production. This leads to slower economic growth and fewer jobs as valuable resources are diverted to pay the energybill. 

## Conclusion The proposedEPA regulations on C02 will have a devastating effect on the Georgian economy and its residents. Given the high costs to Georgians and America at large, AFP strongly supports preventing the implementation ofthese regulations.

Endnotes: 1. "EPA Carbon Emissions Reduction Targetsby State." EPA Carbon Emissions Reduction Targets by State. N.p., n.d. Web. 9 July 2014.

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**/cle<~npuwcr!2lmm.tp.\** t'!'<LGm·,..( :[l'.lnP_owerPLtn/. 3. "U.S. EnergyInformation Administration- EIA- Independent Statistics and Analysis." U.S. States. N.p., n.d. Web. 9 July 2014. http:: 'www.eid.gn:___ 4. "C".S. Energy Information Administration - EIA - Independent Statistics and Analysis." Georgia. >J.p., n.d. Web. 9 July 2014. httl-'::';\,·ww.cia gov i 5. "EnergyCost Impacts on American Families 2001-2013." Americas power.

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