Another signature achievement of former President Obama’s tenure in office were his efforts to attack climate change; he routinely signed executive orders to create barriers for the fossil fuel industry after failing to convince Congress to pass a “cap and trade” scheme in 2010. The Obama Administration implemented a highly controversial carbon rule through the U.S. Environmental Protection Agency – a Clean Power Plan that set a national limit on carbon dioxide produced from power plants.
The plan requires states to lower emissions by 30% from 2005 levels by 2030 (a 40% reduction here in North Carolina). The long-term goal – cleaner air and improved health outcomes – are noble aspirations, but like most government solutions the devil is in the details.
The EPA projected compliance would cost the industry $9 billion annually; some private consulting firms pegged the number much higher with one estimate reaching $39 billion annually. Either way, the industry would incur expenses while adjusting to the new federal rules, so the electricity costs for struggling families, small businesses and government were certain to rise.
Utility costs would have increased across the nation, but regions like North Carolina were especially vulnerable because we rely on coal for power generation. Not to mention, North Carolina belongs to the region with the lowest per capita income and greatest concentration of African-Americans in the country.
Recent studies show that energy costs for low-income African-Americans account for 25% of their after-tax income, compared to the average American household at 12%. True, energy prices would rise for everyone if this rule would have been enacted; but higher costs disproportionately affect low-income and minority populations who spend a higher percentage of household income on energy.
The lack of regard for the immediate consequences of these regulations on North Carolina’s most vulnerable populations is unacceptable. It’s time to use common sense and look past the ideological big picture to consider how these regulations will affect all populations in the short- and long-term.
Not to mention, the Clean Power Plan ignored market realities, utility companies have been transitioning legacy production facilities from using coal to natural gas – a clean, affordable and reliable alternative. Even without the Clean Power Plan, natural gas has reduced emissions in the power sector; current emissions are at a 25-year low. The EPA chose not to consider how the future use of natural gas power generation may reduce emissions further, without implementing more onerous restrictions.
The EPA carbon rule was an overzealous regulation and opponents quickly declared the Clean Power Plan was illegal, twenty-seven states petitioned the court for an emergency stay. Industry attempted to work with EPA officials to make substantive changes that would have allowed a more gradual approach to compliance, but those efforts failed.
President Donald Trump repealed the Clean Power Plan, delivering relief to electricity consumers, including families, private sector companies and government – we all depend on reliable and cost-effective energy solutions. Mr. Trump accurately stated, “No one government agency should have so much control over the economy.”
