Washington, D.C. – Science, Space, and Technology Committee Chairman Lamar Smith (R-Texas) today sent a second letter to EPA Administrator Gina McCarthy demanding transparency from the agency regarding the costs and benefits of proposed electricity regulations.

“EPA’s sweeping mandate requires a fundamental restructuring of our nation’s energy system; it transforms how electricity is both produced and used,” Chairman Smith wrote. “The broad new authority EPA claims raises critical questions about our ability to meet demand for reliable, affordable electricity.”

However, Chairman Smith wrote that “Systematic biases and major omissions in EPA’s limited evaluation produced a cost-benefit analysis divorced from reality. Consequently, EPA’s Regulatory Impact Assessment fails to assess whether the proposed rule will achieve meaningful benefits and, more importantly, whether the benefits are worth the heavy cost.”

Last week, a report released by NERA Economic Consulting projected that EPA’s proposed regulations will cause double digit electricity price increases in 43 states. It also found that over 15 years, compliance costs could total more than $400 billion.

Chairman Smith’s letter demands that EPA conduct comprehensive energy and economic modeling before moving forward with the rulemaking. 

“The American people deserve the facts.  This is impossible without a comprehensive, real-world analysis of your proposed regulations. We cannot afford to ignore inconvenient details when the truth hangs in the balance.” 

Chairman Smith’s full letter can be found here.

The August 13, 2014 letter can be found here.