Timothy Lee

Not even Ebenezer Scrooge had the stomach to fire people during the holidays.

The Environmental Protection Agency (EPA), however, plans to move full speed ahead with new regulations on January 2 that will likely cost many Americans their jobs before the New Year’s Eve party hats have even been put away.

In a nutshell, the EPA’s Greenhouse Gas Tailoring Rule will treat emissions from renewable biomass energy the same as emissions from the use of fossil fuels, despite the fact that both policymakers and scientists have long considered biomass emissions to be carbon-neutral due to the life cycle of the forests from which biomass is produced.

This new rule and regulatory uncertainty could spell the end of the biomass energy industry by removing the carbon-neutral status of biomass and, consequently, the biggest incentive to continue investing in it. Recent estimates have shown that biomass generated from forest byproducts could supply as much as 15 percent of the nation’s renewable energy by 2021, yet this will likely never be realized if biomass producers are forced to comply with arbitrary, unfair and unnecessary regulations like those in the Tailoring Rule.

Unfortunately, the Tailoring Rule won’t just disincentivize the use of renewable biomass energy. It will also have widespread effects on our energy options, as well as jobs and the economy.

Forisk Consulting recently released a new study on the economic impact of the Tailoring Rule, which found that the regulations on biomass will result in the loss of over 134 renewable energy projects, up to 26,000 jobs, and $18 billion in capital investment. According to the study’s authors, 23 biomass energy projects have already been placed in limbo due to regulatory uncertainty. In Wisconsin, for example, Xcel Energy Inc. halted plans for a biomass energy plant that would have brought over 100 jobs to Ashland, Wisc., as well as a needed source of domestic power for the entire area. Xcel Energy cited the expected cost increases and regulatory uncertainty as reasons for canceling plans for the plant—and they are likely to be one of many energy companies doing the same.

The negative economic impact will be especially felt in Appalachia and rural parts of the South, the Pacific Northwest, and the Northeast, where biomass energy shows great promise as a source for domestic clean energy and innovative new jobs.


Timothy Lee

Timothy Lee is the director of legal and public affairs at the Center for Individual Freedom, a free-market and constitutional advocacy organization based in Alexandria, Virginia.

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