EPA’s Renewable Portfolio Standards Goal For Virginia To Cost Between $1.9 – $3.5 Billion Annually

An economic impact study from the Natural Resource Economics, Inc. is available that examines the U.S. Environmental Protection Agency’s (EPA) Renewable Portfolio Standards Goal on Virginia and other states. EPA has set these goals for 29 states. Virginia will need to generate 6% of its energy from wind and solar by 2025.

The impact includes increased consumer electricity bills, the costs of Virginia produced goods and services will increase, and between 14,000-26,000 in jobs will not exist annually. The direct annual costs to meet the standard will be $510.7 million in 2016 and rise to $1.1 billion in 2020 and thereafter. The total impact is expected to be $1.9 billion in 2016 and rise to $3.5 billion in 2020 and cost $2.5 billion annually through 2040.

The EPA has developed a Social Cost of Carbon that ranges at the 5% discount rate of $12-$24 per ton. The impact study indicates the total cost of the avoided carbon in Virginia will range from $136-$234 per ton annually. For details, please read the study.