House investigators suggested that the Environmental Protection Agency (EPA) did not act in "good faith" when it assessed the economic impact of a new emissions regulation, and called for the Office of Information and Regulatory Affairs (OIRA) to require EPA to revisit that rule, which they believe could cost 186,000 jobs per year.

"The [House Oversight and Government Relations] Committee is not satisfied that EPA has conducted a good faith analysis of the employment impact of the [Utility Mact] rule" regarding coal emissions, wrote Committee chairman Darrell Issa, R-Calif., and the head of the regulations panel Jim Jordan, R-Ohio. "EPA's jobs analysis failed to look at the impact that higher energy prices would have on employment," they continued, also noting that "a study by the National Economic Research Associates found that average retail electricity prices will increase by an average of 6.5 percent and result in a loss of 186,000 jobs per year due to the cumulative impact of the rules."

The representatives also questioned the effect of the Utility MACT rule on the electric grid, which might prove less reliable if the rule goes into effect. "EPA's steadfast refusal to ascertain the impact its regulatory actions will have on grid reliability is troubling," Issa and Jordan wrote. "[I]t appears that EPA has purposefully ignored grid reliability issues."

Issa and Jordan said that the rule should requires further study before final mplementation this month. "The Committee asks [OIRA] to return the regulation to EPA so that it may complete appropriate analysis of the rule," they concluded.

You can read the full letter below.

2011-12-01 DEI Jordan to Sunstein-OIRA - EPA UMACT Due 12-15