Serve Daily

States face war on coal from Obama administra­tion

- By Terry Jarrett Terry Jarrett is an energy attorney and consultant and is a former commission­er of the Missouri Public Service Commission.

The Obama Administra­tion’s assault on the nation’s coal producers took a remarkable turn recently. The U.S. Supreme Court issued a stay against the president’s massive “Clean Power Plan,” blocking the new program until a federal court determines its legality.

The ruling produced a huge sigh of relief from the 27 states currently suing to halt what they see as the most far-reaching and intrusive regulation­s ever imposed by the Environmen­tal Protection Agency.

Cash-strapped states no longer need to scramble to reduce power sector carbon dioxide emissions 32 percent by 2030. Because the power plan requires interim targets in 2022, though, many states were already mobilizing to build new power sector infrastruc­ture at substantia­l cost.

Now they don’t have to, and any state still following the EPA mandate risks wasting taxpayer money just to comply with a regulation that could soon be judged unlawful. Unfortunat­ely, even those states taking advantage of the reprieve have already sensed the risks facing affordable, reliable power generation.

Despite the court’s reprieve, more trouble is on the way, too. That’s because the president is still waging a wider battle against coal-based power. His team hopes to replace coal with solar and wind power, even though neither one has demonstrat­ed real ability to generate robust power or cost efficiency.

The Department of the Interior recently proposed a complete overhaul of coal mining regulation­s, largely replacing environmen­tal oversight by the states with a massive new set of federal rules so broad as to potentiall­y render more than half of U.S. coal reserves off-limits. Even though states have demonstrat­ed considerab­le success in policing their respective mining sectors, the “Stream Protection Rule” proposed by the Obama administra­tion has morphed into a staggering expansion of regulatory controls that, if fully implemente­d, could eliminate up to 280,000 jobs tied to the coal sector.

This hostility to coal was clearly on display during the president’s final State of the Union address when he announced a moratorium on federal coal leases. If the president can’t stop coal through the CPP, he will simply order it to remain in the ground. Sadly, federal coal leases provide much of the nation’s affordable power supply and generate whopping annual revenues thanks to the hefty 40 percent royalty and tax fees applied to mining claims.

The great problem with this war on coal is that it ignores coal’s preeminenc­e in generating roughly 37 percent of U.S. electricit­y (compared to less than 5 percent for wind and solar). Coal remains the most dependable source of continuous power, and the state-of-the-art clean coal plants that scrub emissions of sulfur dioxide, nitrous oxide and particulat­e matter are currently running overtime to keep Americans warm during winter and cool in summer.

In short, any one of President Obama’s three proposals would result in higher electricit­y costs. Not only would this harm America’s already troubled economy, but it would also disproport­ionately affect the country’s most vulnerable population­s like seniors and low-income communitie­s. Americans on the poverty line and rural residents depending on electricit­y co-ops already pay an outsized percentage of their income for energy. Without affordable coal power, they will be significan­tly affected by higher monthly electric bills.

The Obama administra­tion has a record of imposing regulation­s without regard for expense, however. Last summer, the Supreme Court struck down a separate EPA regulation on coal, saying the agency must consider cost before deciding if a regulation is “appropriat­e and necessary.” Thus, the administra­tion is now 0 for 2 in imposing its agenda. But the Supreme Court may not be able to stop every one of the administra­tion’s efforts, which means the American people could be the real losers if the president continues his costly assault on coal.

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Terry Jarrett

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