Guest writer

Arkansas fighting

EPA overreaches in power plan

The Environmental Protection Agency is pushing a contentious and legally suspect plan that would force nearly every state, including Arkansas, to dramatically change the way it generates electricity.

To prevent this federal overreach, Arkansas Attorney General Leslie Rutledge has drawn a line in the sand and joined with 13 other states to sue the EPA. If she is successful, it could save a lot of Arkansas jobs and protect Arkansas ratepayers from big hikes in their electricity rates.

The profitability for farmers and ranchers is closely tied to energy. Define "sustainable" any way you want, but a hallmark of sustainable agriculture must include farmer profitability, so energy costs are an issue of importance to Arkansas Farm Bureau.

EPA has had its sights on coal-based electricity for several years now. Despite the fact that coal-based generation is by far the most affordable way to generate power and has made progress in reducing its environmental footprint, EPA has put us on the fast track toward other more expensive and less reliable fuels.

EPA's latest proposal, the Clean Power Plan, mandates steep carbon dioxide reductions for each state, with little to no attention being paid to how those reductions will affect Arkansas consumers and businesses in the way of higher electricity rates and a weakened grid. In states like Arkansas that depend on coal-based power, the economic and energy consequences will be particularly harsh. Under the plan, Arkansas will be required to reduce carbon emissions by 44 percent from its power plants. That is the sixth-highest target among all states.

EPA is attempting similar overreach with its Waters of the U.S. proposal, which threatens to bring almost every body of water under federal regulation and control.

In 2014, coal fueled more than half of the electricity generated in the state. It is an essential component in the balanced fuel mix that keeps our electricity prices down. Last year, Arkansas electricity rates were the fourth-lowest in the country. Even so, many Arkansans still struggle to pay their utility bills. Lower- and middle-income Arkansas families--61 percent of the state's households--spend an average of 20 percent of their after-tax income on energy.

Realizing the grave impact that awaits Arkansans if states are forced to comply with EPA's proposal, the Arkansas Legislature stepped up to protect consumers by approving, just last month, Senate Bill 183, sponsored by state Sen. Eddie Joe Williams. The bill was signed into law by Gov. Asa Hutchinson and will allow the Legislature to review and approve any state plan to comply with the Clean Power Plan.

This is an important step ensuring consumers aren't left holding the bag because of aggressive regulations.

Governor Hutchinson himself has also been a champion on this issue, following through on his campaign promise to fight the EPA. In a letter to EPA, Gov. Hutchinson rightfully acknowledged "that additional mandates ... that close coal-powered plants or increase the cost of generating power from coal will cause an increase in costs to Arkansas' residents and manufacturers ... such increases will negatively affect the economic growth and well-being of Arkansans." He also flagged that "by proposing a wide-reaching mandate that includes the electrical system and alters consumer behavior, [the] EPA has overstepped its legal authority."

Now, Attorney General Rutledge is taking that stance to court on behalf of Arkansas.

As the EPA works on finalizing its Clean Power Plan proposal later this summer, this is just the first step in what will be an ongoing battle with the EPA to protect Arkansas ratepayers from illegal and costly regulatory overreach. We are fortunate to have at the helm of our state government officials like Governor Hutchinson, Attorney General Rutledge and the state Legislature who have shown the willingness to fight for our interests now and for the long haul ahead.

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Randy Veach is a cotton, soybean, corn and wheat farmer from Manila, and president of the Arkansas Farm Bureau.

Editorial on 04/27/2015

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