While the nation’s capital is in the single digits, Americans more than ever want policies that promote affordable and reliable energy. Although this country has abundant energy options, the Environmental Protection Agency (EPA) and President Obama have once again engaged in an energy policy that eschews reason by picking industry winners and losers. In this case, the real loser is sadly the American consumer who may be forced into higher utility costs and less reliable sources of energy.
Contrary to the President and the EPA, regulations that eliminate American coal are the wrong policies introduced at the worst possible time. According to the World Health Organization, a majority of American cities are in the safe zone for air quality. In fact, America’s air quality is better than it has been in decades and is significantly better than Europe.
Regardless of America’s improved air quality, newly proposed rules introduced by the EPA limiting carbon emissions essentially make it impossible to build new coal plants and seriously jeopardize existing coal plants in operation.
If the proposed rules by the EPA are enacted, the American economy stands to lose approximately 224,000 jobs and $51 billion each year. Americans are also projected to lose almost $600 billion in disposable income as utility companies rethink their business models and charge ratepayers more. In some states, like Louisiana, seniors will struggle to pay skyrocketing utility costs as the rules could result in electric prices rising by 13-18 percent.
It is a disaster for states that rely on coal, and to add insult to injury, the proposed changes are unclear how they would substantially improve the environment. Typically, the EPA uses a model called MAGICC that calculates the impact of reducing carbon emissions. Magically, the proposed regulations underwent no such analysis and some experts conclude the reason was the impact on carbon emissions was too small as to lend support to the change.
The EPA has also proposed stringent interim targets that start in 2020. When state legislatures, agencies, and existing plants are attempting compliance, the magnitude of planning, permitting, and review is extensive. In the end, the rules are not only unbalanced but also industry oppressive in their implementation.
Coal generates a staggering amount of the electricity in the United States, about 40 percent, and is particularly needed in many rural communities. Coal also is extremely reliable, inexpensive, and due to technology, can increasingly be used with minimal environmental impact. Simply, coal is a critical part of the energy fabric of our economy and we cannot function without it.
In an attempt to bring sanity to the EPA, a number of concerned citizens and organizations have brought legal actions against the proposed rules. In particular, states and energy groups assert the EPA’s rule for new power plants are not legally defensible in light of currently available technology. For instance, the U.S. government recently moved to suspend a $1.65 billion carbon capture and storage project plan in Illinois. Although touted as the first near zero emission coal plant, the technology became too costly and complicated to be an effective solution.
In addition, the Reliable, Affordable and Safe Power (RASP) Act, offers one approach to protect states from EPA’s harmful source rules. The resolution is an effort led by Americans for Prosperity, but has also been signed on by a large coalition of groups.
RASP is important as it prohibits a state from submitting or allowing implementation until legal challenges surrounding the EPA’s authority are clear. If declared invalid by the courts, a state will not have wasted resources to come into compliance.
RASP also empowers state legislatures to approve or deny the implementation plan before it is submitted to the EPA. The resolution also instructs state agencies developing implementation plans to ensure that the plan will not compromise the availability of reliable electricity for their citizens.
The resolution is already gaining traction in state legislatures across the country. Recently, RASP passed out of committees in Arkansas, Kansas, and Oklahoma. In Colorado, Florida, and South Carolina, legislation is currently underway to mirror the resolution. While in Texas and Ohio, sponsors for RASP are currently being sought.
President Obama and the EPA are worried about states flexing their authority as well, and in a likely unconstitutional move, are threatening states that do not comply with the withholding of valuable federal highway funding. The coercion of states is a brazen power grab, one that will only continue to hurt American families looking for energy solutions that simply lower their bill.
We need to remain self-sufficient and continue to use coal to not only power our homes but boost our economy. Whether it is through legal action, RASP, or Congress, Americans need and want coal.
Nancy Pfotenhauer is president of MediaSpeak Strategies, a national communications firm. Nancy was a senior policy adviser and spokesperson with the McCain for President campaign. She has served as president of the Independent Women’s Forum, director of the Washington office of Koch Industries, a cabinet level adviser, economic counsel to Sen. William Armstrong, chief economist for the Republican National Committee, and she served on President George H. W. Bush’s transition team in 1988. She also serves on the Board of Directors for Americans for Prosperity. You can follow her on Twitter at @npfotenhauer.
