Business and E.P.A. Debate ROI - The Minute

Business and E.P.A. Debate ROI - The Minute

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Now on the #CSR Minute: Business & E.P.A. debate ROI of newest #ozone regulations - @3BLMedia
Monday, December 1, 2014 - 4:45pm


CONTENT: Multimedia with summary

The latest in a series of EPA rules for controls on air pollution, to curb ozone emissions, has started a major argument about return on investment. The proposed ozone rule requires power plants, heavy manufacturers and agriculture operations to limit smog to a lower level by installing new technology to clean pollutants from their smokestacks. The cost of the regulation is estimated by the E.P.A. to be $15 billion a year by 2025, the year when the rule would be fully in effect.

The National Association of Manufacturers calls it “the most expensive regulation ever,” and claims that the E.P.A. generally underestimates costs. The agency says that the economic benefits of the rule – measured in avoided asthma attacks and heart attacks, missed school and work days and premature deaths – would outweigh the costs of compliance. It calculates benefits at $19 billion to $38 billion in 2025.

Who’s going to decide this debate? It could be the Supreme Court, which has agreed to hear a challenge to a separate E.P.A. rule that limits mercury emissions. That case turns on the question of whether the EPA is required to conduct a cost-benefit analysis. The agency says that by statute, it cannot consider costs when writing such rules—scientific fact is supposed to be the primary driver. Business trade groups disagree, and argue that cost should be an issue. It may be the first time that the Supreme Court is called on to judge a return on investment.

I’m John Howell for 3BL Media. 

Video Source: Business and E.P.A. Debate ROI

CATEGORY: Environment