EPA Admits: “Low Income Minority Communities Would be Hardest Hit” by Clean Power Plan

One of Obama’s campaign promises was that electricity rates would “necessarily skyrocket.” Coal and natural gas power plants would shutter under the growing burden of government regulations, taxes and fines. The fossil fuel industry – while it’s the most cost-efficient and clean energy source we have available at the moment – would be phased out by government officials who have their eye on lucrative financial kickbacks they’ll receive from their investments in the green industry. The green industry, in turn, makes sure those politicians stay in power.

Liberals talk an awful lot about their compassion for the poor. That’s always their retort when faced with conservative criticism that their pet welfare programs are an unconstitutional use of taxpayer money. It’s easy to be generous with other people’s money.

What liberals fail to admit is that their very own policies, which are ostensibly designed to be a financial aid to the poor, often make the poor poorer. If we lived in a perfect world, every individual would harness his innate desire to work and to contribute, and any use of public funds as a safety net would be temporary. Of course, we don’t live in a perfect world, and “[i]f men were angels, no government would be necessary” in the first place, as James Madison put it in The Federalist #51.

EPA Administrator Gina McCarthy admitted recently that the Clean Power Plan, because of its mandated increased costs, will adversely affect low income minority communities the most. Nicolas Loris wrote:

When speaking about the higher energy prices caused by the administration’s climate regulations on power plants, Environmental Protection Agency Administrator Gina McCarthy said, “We know that low-income minority communities would be hardest hit.”

McCarthy downplayed that fact by saying any minimal higher prices would be offset by implementing energy efficiency measures that would save consumers money in the long run.

In fact, as part of the regulation the EPA “prioritizes early investment in energy efficiency projects in low-income communities by the Federal government awarding these projects double the number of credits in 2020 and 2021.”

Low and fixed income families will be hardest hit by the administration’s regulations and energy efficiency programs will not save them. While the median family spends about 5 cents out of every dollar on energy costs, low-income families spend about 20 cents of every dollar. And the economic pain from the regulations will not be simply the direct costs of higher energy prices, but through higher prices for all the goods we purchase, as energy is a necessary component to manufacture those goods.

So much for their compassion on the poor, right? These proposed energy mandates will help to drive up all costs, because everything that’s produced and sold requires energy. If the energy is expensive and inefficient, then those extra costs will be passed on to the consumers in the form of much higher prices and smaller quantities.