A recent Hartford Business Journal op-ed by the coal industry lobbying group “Electric Reliability Coordinating Council” declared that President Obama’s plans to cut carbon emissions from existing power plants will be “bad for business.” The piece said the proposal would cost consumers too much, and have little impact on global warming.
It is instructive to recall that in 1966, Henry Ford opposed mandatory seat belt installation, claiming the cost would force his company’s closure. According to the National Highway Traffic Safety Administration, seat belts have saved over 255,000 lives since 1975.
In 1978 the Consumer Product Safety Commission banned lead in paint in order to reduce the risk of lead poisoning in children. Homebuilding and paint industry representatives claimed this would raise the price and drive manufacturers out of business. A 2009 study found that the economic return to society in healthcare costs, lifetime earnings, IQ ratings and even crime rates per dollar of investment in lead control was between $17 and $211.
Here in the Northeast, we don’t have to speculate on the benefits of controlling carbon emissions from power plants.
Since 2008, Connecticut, along with eight other Northeast states, has participated in the Regional Greenhouse Gas Initiative (RGGI), which was the first mandatory “cap-and-trade” program in the United States to limit carbon dioxide from the power sector. RGGI requires fossil fuel power plants over 25 megawatts to obtain an allowance for each ton of carbon dioxide emitted annually — and therefore provides an economic incentive to reduce emissions.
Proceeds from allowance purchases are invested in energy efficiency, clean energy, and direct bill assistance for low-income families — over $700 million to date.
The claim that controlling carbon emissions is “bad for business” is not supported by the facts. Here at Northeast Energy Efficiency Partnerships, we have just completed our seventh annual Energy Efficiency Summit, a highlight of which each year is our recognition, along with Northeast Utilities and United Illuminating, of “Business Leaders for Energy Efficiency” in the state.
In 2014, those honorees included our state champion, Connecticut Children’s Medical Center in Hartford, along with Energizer in Milford and Firestone Building Products in Bristol. Past winners have included Sikorsky Aircraft in Stratford, Bigelow Tea in Fairfield and Boehringer Ingelheim in Ridgefield.
Upgrading to LED lighting, installing rooftop solar, replacing old equipment with new energy efficient models, installing a combined heat and power cogeneration plant — these are all investments made by Connecticut Business Leaders to save money and energy, reduce demand on the power grid, and reduce greenhouse gas emissions.
In fact our case studies have documented a combined avoidance of over 250,000 tons of carbon dioxide being emitted into the atmosphere by our Connecticut Business Leaders alone, which translates into 21,000 homes’ energy use for one year, or 50,000 cars being taken off the road. And when companies spend less on energy, they can plow those savings into growing their businesses and creating jobs.
The estimated cost of Hurricane Sandy was $65 billion, and that does not include the human costs in lives lost, families left homeless and millions left without power for weeks. Thanks to global warming, such “superstorms” are expected to be more frequent in coming years. The Northeast, as was in evidence with Sandy, is particularly vulnerable.
So which is really more expensive — doing nothing, as our coal industry lobbyists would advocate? Or providing incentives to invest in HVAC and lighting upgrades, Energy Star appliances, and home weatherization projects, which often pay for themselves within a few years or months?
The Environmental Protection Agency is to be commended for its plan to reduce greenhouse gas emissions from power plants across the United States. Not only is it doable, but here in the Northeast we have shown that the result will be cleaner air, lower energy costs, and more competitive businesses.
Jim O’Reilly is the director of public policy at the Northeast Energy Efficiency Partnerships, a regional nonprofit that works to increase and coordinate energy efficiency and market transformation efforts in the northeast.
