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EPA regulations to cost Pa. manufacturers $1.5B

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The Northeast PA Manufacturers & Employers Association of Pottsville and the National Association of Manufacturers released a new study by the advisory firm ndp|consulting on Nov. 28 which examines the impact of several Environmental Protection Agency regulations on Pennsylvania's economy.

Titled “A Critical Review of the Benefits and Costs of EPA Regulations on the U.S. Economy,” the study finds that the annual compliance costs of the EPA's proposed Utility Maximum Achievable Control Technology (MACT), Boiler Maximum Achievable Control Technology (MACT) and Coal Combustion Residuals regulations on Pennsylvania will be $1.5 billion.

“This is stifling to the manufacturing sector and will cost Pennsylvania jobs,” said MAEA President and NAM board member Darlene J. Robbins. She described the companies she has worked with as being leaders in the fields of research and development, safety and energy.

“They develop new technologies to promote energy efficiency and reduce waste, while recycling materials,” said Robbins. “That's how you remain vibrant in a global economy. These regulations will cost our manufacturers in Pennsylvania billions of dollars while shedding jobs at the same time.”

The impact of EPA's Utility MACT, Boiler MACT and Coal Combustion Residuals regulations on Pennsylvania, include:

• Annual compliance costs: $1.5 billion;

• Annual manufacturing sector compliance costs: $651.6 million;

• Total upfront capital expenditures to comply: $8.9 billion;

• Total manufacturing sector upfront capital expenditures: $3.7 billion.

Robbins said her association represents about 325 manufacturers.

“The solution is that you don't keep over-regulating manufacturing companies, which is the sector that is the engine of this economy, in this region,” said Robbins.

According to the report, the cumulative impact of the EPA's proposed regulations nationwide could cost roughly $100 billion annually and more than 2 million jobs. In a “worst-case scenario,” the regulations could mean the lost of $630 billion, 4.2 percent of the gross domestic product, and more than 9 million jobs.

Brian Pedersen

Brian Pedersen

Reporter Brian Pedersen covers construction, development, warehousing and real estate and keeps you up to date on the changing landscape of our community. He can be reached at brianp@lvb.com or 610-807-9619, ext. 108. Follow him on Twitter @BrianLehigh and read his blog, “Can You Dig It,” at http://www.lvb.com/section/can-you-dig-it.

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