New Clean Air Act Rules Burdensome for Small Business

October 27, 2015

Oct. 27, 2015

Molly Day

 Washington, D.C. – The National Small Business Association (NSBA) today raised concern with the final rules published late last week as part of President Barack Obama’s Clean Power Plan which could result in dramatic energy cost increases for many small businesses. Throughout the rulemaking process, NSBA warned against regulations that fail to take into account the negative impact drastic energy cost increases have on small firms.

Below is a statement from NSBA President and CEO Todd McCracken.

“While the goal of the Clean Air Act (CAA) rules of reducing the U.S. power sector’s carbon emissions by 32 percent by 2030 is a laudable one, we are concerned with the potential inflationary pressure this will put on energy costs for the smallest firms.

“The targets imposed by EPA will make it very difficult for states heavily reliant on coal-fired power plants to comply without shifting a significant portion of their capacity toward natural gas and alternative power sources. Such a shift has the potential to not only increase end-user costs, but could also lead to disruptions in service due to an unreliable electric grid.

“Sweeping new regulations often hold unintended, negative consequences for small firms, and these rules are no different. Rising energy costs weigh heavily on the majority of small businesses with 87 percent reporting negative impacts of increased energy costs on their business. Furthermore, 92 percent of small firms are concerned about the future energy costs of their business, according to NSBA’s Energy Survey.

“Small businesses operate on smaller profit margins and have smaller financial reserves to absorb these potential cost swings, and NSBA urges policymakers to seek out ways to ease the burden this rule will have on America’s job creators.”

Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan and member-driven organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S. Please visit or follow us at @NSBAAdvocate.