EPA’s New Proposed Regulations to Restrict Emissions from Existing Fossil Fuel-Based Electric Generation

By Alan Carlin, former EPA researcher carlineconomics.com

June 2nd was the day when EPA unveiled its regulations intended to solve a minor or more likely non-existent problem by placing restrictive government regulations intended to bias the electric supply business away from seeking the lowest cost source of energy (often coal) at the expense of all American ratepayers, but particularly lower and middle income Americans.

As outlined on this blog for over four years there is no reason for EPA or any other government agency to impose such controls. They will have no measurable effects on anything other than the US economy.

What will happen as a result is quite predictable: Greatly increased rates for electric power, decreased availability of the electric power so vital to our way of life, decreased reliability of the electric grid, a lower standard of living, decreased competitiveness of US products in world markets since most countries do not have such regulations, and Communist-style central control of the electric generating industry by a Washington-based bureaucracy with no understanding of the industry.

Fortunately, there is an election coming up this fall where voters can express their views on the Obama Administration’s proposal to take effective control over the electric power industry despite their less than sterling performance on health care and veterans’ medical needs. Apparently nothing short of an electoral defeat will prevent the Administration from pursuing its green energy ideology/religion. What is required is a Republican majority in the US Senate if these regulations are to be stopped. Electing Democrats who claim they are opposed to the new EPA regulations will do very little if anything to prevent them from coming into effect since the Democrats would still control the US Senate and would be able to circumvent any effort to kill the EPA regulations.

It is important to note that the EPA proposals are not only attempts to circumvent Congress and the provisions of the Clean Air Act but also the separation of powers enshrined in the US Constitution. The separation of powers were built into the Constitution for a reason–to keep ideologues of any persuasion from being able to impose their views on the nation merely by controlling one branch of Government. The new EPA proposed rules are not based on any act of Congress but rather on an outrageous rewriting of the Clean Air Act by EPA on the basis of green ideology with all its bad science, bad economics and bad law. This is a direct outcome of the Endangerment Finding I opposed in 2009–and unfortunately about the worst possible outcome. Unless voters act this fall it may too late to avoid this outcome, which will directly affect the economic well being of all Americans with no benefits whatever except for those that will profit from it, like windmill and solar manufacturers.

 

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S.C. Schwarz
June 3, 2014 3:20 am

How would a win in the Senate change anything as long as Obama is president?
Sorry, it’s already too late.
Encourage your grandchildren to learn Mandarin. The Chinese will need servants when they take over.

Keitho
Editor
June 3, 2014 3:25 am

I agree with the non problem part of your posting. My observation is that this only pushes electricity generation companies towards gas which is cheaper anyway. Surely in the USA moving away from coal to gas will be an entirely economic decision that does not require any regulations from Obama?
The coal miners must have a ready market for their output in China and Europe where they have been unable or unwilling to exploit natural gas deposits. It seems that jobs in those states are not greatly threatened.
The cynic in me is thinking that Obama has just done a few political gymnastics to get out in front of the gas revolution and so pretend to be penalising coal for environmental and public health reasons. Quite pathetic really.

j ferguson
June 3, 2014 3:26 am

It would be reassuring for someone to describe how this madness can be put to rest. If there is a change in control of the Senate, what will they be able to do, specifically? Can Carbon Dioxide be officially taken off the pollutants list?
Is Oz ahead of us in throttling this nonsense?

Sasha
June 3, 2014 3:27 am

Obama said this in 2008:
“The biggest problems that we’re facing right now have to do with George Bush trying to bring more and more power into the executive branch and not go through Congress at all. And that’s what I intend to reverse when I’m president of the United States of America.”
In a new report for The Heritage Foundation, senior legal policy analyst Elizabeth Slattery and legal fellow Andrew Kloster write, “Abusive, unlawful, and even potentially unconstitutional unilateral action has been a hallmark of the Obama Administration.”
Obama has continually pledged during his second term, that he will be “governing unilaterally, by executive order and by regulatory mandate,” warned a Washington Times reporter –– thus his weapons of warfare are his “pen and phone.” Forget about the Constitution.

June 3, 2014 3:35 am

It may take both Congress and the SCOTUS working together to reign in a renegade Executive branch. As long as the President– whoever he may happen to be– believes he can pass laws by executive order, bypassing Congress entirely, we are closer to dictatorship every day.

EE
June 3, 2014 3:55 am

“My observation is that this only pushes electricity generation companies towards gas” Obviously this person has no clue with regards to what it takes to convert an existing power plant or build a new one for that matter. Do a little research then get back to us.

Cathy
June 3, 2014 3:58 am

Dark. In so many senses of the word.

eo
June 3, 2014 4:13 am

There is a lag time between the regulation and its impact on the consumer. The impact will not be felt this coming fall election. Hopefully by 2016 election the impacts would be part of the new normal and will not be an election issue anymore.

Alan the Brit
June 3, 2014 4:13 am

“What will happen as a result is quite predictable: Greatly increased rates for electric power, decreased availability of the electric power so vital to our way of life, decreased reliability of the electric grid, a lower standard of living, decreased competitiveness of US products in world markets since most countries do not have such regulations, and Communist-style central control of the electric generating industry by a Washington-based bureaucracy with no understanding of the industry.”
Sounds like they will be perfect for the job, that is to screw the economy over! It reminds me of British situation comedy classic “Yes Minister”, all about the machinations of the British Civil Service & its quirkiness & heavily bureaucratic paper-chasing antics, especially when making an appointment for a Guvment position of great importance & influence, they always make sure the appointee has absolutely no experience in the field they are appointed to!!! Good luck, America!

June 3, 2014 4:26 am

What separation of powers? Obama has shown with his latest that he has no use for congress. Emperors never do.

June 3, 2014 4:29 am

Reblogged this on gottadobetterthanthis and commented:
“…there is no reason for EPA or any other government agency to impose such controls. They will have no measurable effects on anything other than the US economy.”
Bottom line is that the proposed cure is far worse than the assumed disease.

Claude Harvey
June 3, 2014 4:30 am

Folks might wish to take a look at Spain and Portugal, the self-proclaimed “Solar Capitals of the World”, to see how all this comes out, particularly the “jobs created” part. They might also note that while Obama plunges our country into the energy abyss, Germany, “The Green Mouth of the World”, quietly increases its dependence on lignite (nasty stuff) for electric power generation. According to Bloomberg, 45% of Germany’s power came from lignite last year and new coal plants are being built. In the meantime, German households are facing a 20% increase this year in their “renewable energy tax”.

mogamboguru
June 3, 2014 4:36 am

Folks, please stop discussing CO2, because here’s nothing to CO2 worth discussing at all. In this case, CO2 is a mere tool to justify cutting the use of coal for producing electricity and to support the use of shale gas in order to increase the profits of the gas-producers, like Al Quaeda was used as a tool by the State Department to have a reason to invade any country owning materials of interes for the US-economy at will. The reasons for the Global Warming-scam are neither scientific nor emotional, but are purely economical. s long a you keep discussing CO2, you keep playing by the rules of those who invented Global Warming. You need to transcend CO2, to cut to the very core of the discussion. And the core of the whole discussion is pure, cold, unmitigated greed and the will to fleece people no matter what.

John M
June 3, 2014 4:45 am

This will never happen. Obama just wants to look ‘godly’ in the eyes of his green disciples as he exits stage ‘far’ left. The post Obama reality will strike hard well before the 30% reduction is reached.

Ed Reid
June 3, 2014 4:54 am

The combination of coal restrictions and limiting oil and gas E&P on “federal” land will drive up natural gas demand while restricting supply, ultimately driving up gas prices as well. Never forget that the ultimate solution to the “carbon pollution” problem is zero “carbon pollution”. Coal is merely first in line.

Power Engineer
June 3, 2014 4:56 am

A new coal plant costs more than a gas plant but to replace an existing coal plant with a new gas plant is a net increase in costs of 4 cents per kWh.
Meanwhile Germany is building 28 new coal plants. And their solar will cost $500M to fix the problem of dropping off the grid during a system disturbance. (Issue here too).

Keith Willshaw
June 3, 2014 5:03 am

Keitho said:
> I agree with the non problem part of your posting. My observation is that this only pushes
> electricity generation companies towards gas which is cheaper anyway. Surely in the USA
> moving away from coal to gas will be an entirely economic decision that does not require
> any regulations from Obama?
Problem is this policy will
1) increase demand for gas likely raising gas wholesale prices
2) Remove competition which will hardly encourage gas producers to lower prices
3) Require capital investment in new gas plants which will also raise prices
Note that CO2 emission controls will also be imposed on gas fired plants under this legislation so don’t imagine it will stop with coal.
> The coal miners must have a ready market for their output in China and Europe where they
> have been unable or unwilling to exploit natural gas deposits. It seems that jobs in those
> states are not greatly threatened.
Trouble is production of coal from countries with lower safety standards and/or wages is likely to undercut US suppliers. Much of China’s coal comes from Russia and Australia while European countries like Poland and Germany are using indigenous reserves
Truth is the miners and state officials in West Virginia, Ohio, Colorado etc are VERY concerned about the effects on their industry.

carbon bigfoot
June 3, 2014 5:14 am

S.C. Schwartz–” Sorry, its already too late”. NEVER, NEVER GIVE UP.
Short of an armed confrontation and a civil war, lets all drive to DC and snarl all access by abandoning our vehicles on all major highways. Hell we won’t be able to buy fuel so let’s keep the politicians and bureaucrats from further stifling our freedoms and livelihoods.

Pamela Gray
June 3, 2014 5:16 am

If there is one class of people being pummeled into the ground by an ever heavier hammer, it is the bread and butter people. They clerk, run errands, change your oil and fluids, pick up your garbage, sweep your schools, figure out a way to open a small business, flip your hamburgers, and in general work longer total hours or work for pay that prevents them from taking a vacation other than in their backyard. And what is worse? They can’t find .22 ammo, they can’t fish without wading through regulations, they can’t fill aging cars without deciding what food they will not purchase this week, and they are getting damned tired of it. The last time they were faced with this issue they got a free phone and cough-cough free health care promise. In exchange it is ever more plain they got the shaft. But that is not the worst of it. They are now us too. Never before in my near 60 years of life have I witnessed a president more hell bent on destroying his own country.
We impeached a president for lying to congress about having an extramarital affair. Have we no stomach for impeaching a president for much worse?

Colin Porter
June 3, 2014 5:26 am

Well done Obama and the EPA. Without their interference, we in the UK would have been loosing all of our high power demand industries to the US. With idiots on both sides of the pond in control of energy policy, we at least stand a chance of retaining some of our these industries.

observa
June 3, 2014 6:11 am

Well if Obama wants a 30% cut in emissions all he has to do is decree existing power stations cut their output by 30% and presto! There’s no time like the present for a President of such real conviction.

June 3, 2014 6:29 am

> What will happen as a result is quite predictable: Greatly increased rates for electric power
Its a prediction, but its a touch vague. When exactly will these increases occur? How large will they be? Can you be at all quantitative?

johnmarshall
June 3, 2014 6:30 am

Silly; stupid; damn stupid; then the EPA.
Get rid of Obama and the EPA if you wish to live a life. This crap will shut America down.

MarkW
June 3, 2014 6:34 am

This move will increase energy costs and as a result more companies will move operations overseas.
In the meantime, the useful idiots will continue to blame greedy CEOs for shipping “our” jobs overseas.

ffohnad
June 3, 2014 6:34 am

Look on the bright side…the price of coal should go down significantly. I just installed a coal burning potbelly stove and will be doing my part to stave off the next ice age with additional carbon dioxide.

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