Economic Impact of the Tailoring Rule

New Study Shows Tailoring Rule Leads to Harmful, Unintended Consequences

Update: Is biomass energy increasing despite the Tailoring Rule? NAFO addresses this claim here.

In December 2010, Forisk Consulting released a study titled, “Economic and Regional Impact Analysis of the Treatment of Biomass Energy Under the EPA Greenhouse Gas Tailoring Rule.”

The study found that the U.S. Environmental Protection Agency’s (EPA) Greenhouse Gas Tailoring Rule’s current treatment of biomass energy emissions will put over 130 renewable energy projects “at risk” for cancellation or delays.

Additionally, by the year 2021 we are likely to see:

• 5,384 fewer MW of renewable electricity generation in the US;
• 11,844 to 26,380 fewer renewable energy jobs;
• $18.0 billion fewer dollars of capital investment in renewable electricity generation; and
• 53.4 million tons of wood biomass per year removed from the renewable energy marketplace.
• Up to 30 states will not meet a national renewable electricity standard of 15% because of the Tailoring Rule; up from 19 states under the status quo.

The study also found that the Tailoring Rule has already contributed to stalled investment in at least 23 near-term projects.

Respected lifecycle analysts Dr. Bruce Lippke and Dr. Elaine Oneil recently published a paper discussing the Tailoring Rule’s other unintended consequences. [1] In addition to noting that the Tailoring Rule ignores hard science, the authors found:

The Tailoring Rule encourages fossil fuel use. “…[N]ew investment in bioenergy development will be discouraged and existing biofuel facilities may be motivated to shut down or use more fossil fuels.”

The Tailoring Rule contributes to increased GHG emissions from Federal Forests. “The EPA proposal will penalize the collection of forest residuals and thinnings on federal lands resulting in increased use of fossil fuels while also increasing the risk of carbon emitting unnatural disasters.”

The Tailoring Rule discounts the benefits of biomass over coal. According to peer-reviewed life-cycle analysis data from the National Renewable Energy Laboratory, biomass energy generates only 4% of the greenhouse gas (GHG) emissions of bituminous coal, a benefit that will be forfeited under the Tailoring Rule.

The National Alliance of Forest Owners encourages you to download both studies and distribute it to those who are interested in the future of renewable energy, jobs, and the economy in the United States. We also encourage you to take action and contact your U.S. Senator or U.S. Representative and tell them why the EPA needs to amend the Tailoring Rule’s treatment of biomass.