The Truth behind Obama’s New Power Plant Regulation

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Just over a week has passed since Obama proposed new EPA regulations that will cut greenhouse gas emissions at power plants by 30% by 2030.

During this week, critics have argued that manufacturers will shift their production overseas, causing overwhelming job loss. Supporters, on the other hand, argue that this is a necessary response to climate change, along with our health and wellness.

To find which claims are correct, you have to look at 3 things:

  1. how much manufacturing actually spends on electricity
  2. how much rates will rise, and
  3. how much manufacturers are already losing because of severe weather

SuperGreen Solutions had the chance to review a Special Report created by Business Forward that compared the effects of severe weather and the EPA’s proposed energy standards on the Auto industry, the nation’s largest and most important manufacturing industry.

The results of the study were startling in 2 ways:

  1. The potential cost of higher electricity rates is small (adding $7 to produce a $30,000 car), while the cost of weather-related shutdowns is huge ($1,250,000 per hour).
  2. The American manufacturing supply chains are interdependent. Although their interdependent supply chain is capably of supporting a large, specialized, global, and fast production, it also makes them very susceptible to severe weather. Climate change will disrupt ports, highways, rails, etc all over the world, which in result affects us.

 

“It is truly devastating to our local, and world, economy when large manufacturers such as auto plants has to shut down due to severe weather caused from global warming," said Thomas Hsiao, President of SuperGreen Solutions of the Mid-Atlantic Charlotte office added. "These strains on our economy are felt by the local plant employees as well as the end consumer purchasing a product that understandably has to cover all of it’s manufacturing costs.  For nineteen years, SuperGreen Solutions has been tackling this issue from both sides; our goal is to reduce our customer’s carbon foot print while also helping them put together a sound plan to mitigate catastrophic power failures.”

Luckily, automobile manufacturers are already taking steps to reduce their carbon emissions. Their movement may just be the influence needed for other U.S. plants to start making more energy efficient investments.

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