Fixing the Clean Power Plan is a Sensible First Step

By Terry Jarrett

Washington loves controversy. And critics are undoubtedly clucking right now about the Trump administration’s plan to replace the Clean Power Plan (CPP) with a modified effort. But the administration deserves credit for updating the plan, rather than scrapping it entirely.

For starters, the CPP envisioned by President Obama represented a massive overreach of the EPA’s authority under the Clean Air Act. Instead of addressing individual power plants, the Obama administration simply mandated wholesale changes to large swaths of America’s power grid. The Supreme Court found this problematic, though, and issued an unprecedented stay of the rule while a lower court was reviewing it.

It wasn’t just the EPA’s intrusion into the way individual states generate electricity, however. There was also the incredibly high price tag. According to a study by Energy Ventures Analysis (EVA), the CPP would have forced the closure of enough generating capacity to power 24 million homes. This would have cost consumers an estimated $214 billion in additional electricity costs between 2022 and 2030, plus $64 billion for replacement infrastructure. Such a massive expense prompted 27 states to challenge the rule, and a bipartisan majority of Congress to formally state their disapproval.

What the Trump administration is now attempting with its “Affordable Clean Energy” (ACE) rule is to focus on improvements for existing plants. This is a far more lawful approach, and it means the EPA will respect both the boundaries established under the Clean Air Act and the ability of individual states to securely generate electricity.

Essentially, the new rule means the administration wants to innovate and upgrade existing facilities, rather than scrap them. There’s precedent for this, since extensive investments in environmental controls for America’s coal fleet have already reduced emissions of sulfur dioxide, nitrogen oxide, and particulate matter by 92 percent per kilowatt-hour (kWh) since 1970. Utilities have invested more than $127 billion in emissions technologies through 2018, and are also expected to spend an additional $5 billion through 2020.

The CPP was a blunt hammer, and it aimed to rapidly eliminate coal-fired power in the U.S. But shutting down key parts of the nation’s power grid could have reduced the reliability and affordability of America’s electricity mix. A recent EVA study found that replacing just three of the coal plants facing premature retirement could cost consumers 15 times more than providing support to keep them operating.

Coal currently generates 32 percent of the nation’s power supply. It’s part of a long-term effort to maintain a balanced energy mix. The CPP overreached, in that it would have imposed massive costs on U.S. consumers. But it offered little gain in return. A fully implemented CPP would have yielded only a theoretical 0.018 degrees Celsius reduction in global temperatures by 2100, and reduced power plants CO2 emissions by less than 1 percent.

Yes, the Trump administration has waded into a complex and controversial issue. But they’ve taken a prudent approach to help states generate electricity safely, reliably, and affordably. More can be done to scale up up wind and solar power, for example. But that should be encouraged alongside advances in coal technologies that can further improve safety while also providing reliable electricity every day.