Concerns Raised that Climate Regulations & Plant Closures Would Harm Rural Populations, Taxpayer Investments in RUS Electric Portfolio
WASHINGTON, D.C. – U.S. Senator Thad Cochran (R-Miss.) today said the U.S. Department of Agriculture should ensure that rural electric services and investments will not be harmed by proposed federal climate change regulations on power plants.
Cochran, ranking Republican on the Senate Agriculture Committee, has signed a letter to Agriculture Secretary Tom Vilsack requesting that he work with the Environmental Protection Agency to ensure that the USDA Rural Utilities Service (RUS) and rural electric associations are not impaired by a proposed EPA carbon emissions rule for power plants.
The letter to Vilsack was also signed by Senate Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) and Representatives Frank Lucas (R-Okla.) and Collin Peterson (D-Minn.), the House Agriculture Committee chairman and ranking member.
“The EPA carbon emissions rule has a real potential to disrupt a successful 79-year-old program to provide and maintain electricity to rural homes and businesses. While I want the rule completely withdrawn, the USDA has a responsibility now to ensure that it protects the interests of rural Americans and all taxpayers,” Cochran said.
The letter asks Vilsack to ensure that the rule does not have an adverse impact on the RUS electric loan portfolio, which consists of $47 billion in loans to rural electric cooperatives to construct, maintain, upgrade and expand the electricity generating and transmission systems in 44 states. In Mississippi, 25 electric power associations and one generation and transmission cooperative serve residents and businesses.
“In its modeling of the impacts of the proposed rule, EPA estimated 17 co-op owned power plants would close by 2025 in order for states to comply with the rule,” the letter points out.
“The safety and soundness of the RUS electric portfolio is well documented. Decades of experience have demonstrated an excellent record of loan repayment and reliable return for the taxpayer. As work on this rule proceeds, we ask that you continue to engage with EPA, and with the affected borrowers, to ensure the RUS electric loan program and RUS electric borrowers are not adversely impacted,” the Senators wrote.
Cochran has been consistently critical of the expansive and complex carbon emissions regulations unveiled by the EPA in June. He recently joined the call for a public comment period extension and has cosponsored a resolution calling for EPA to withdraw the proposed rules and associated guidelines.
LINKS:
• Letter to Vilsack: http://1.usa.gov/YWVbKW
• USDA Rural Utilities Service: http://1.usa.gov/1vyxBiF
• Electric Power Associations of Mississippi: http://bit.ly/1r3PPEk
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