March 30, 2017 - The Virginia Coal & Energy Alliance (VCEA) has applauded President Trump’s executive order related to implementation of the costly Clean Power Plan (CPP) and the U. S. Department of Interior’s moratorium on federal coal leasing. “By issuing this Executive Order, President Trump is reversing unnecessary regulatory obstacles to American jobs and energy production,” said VCEA President Harry Childress.  “This order directs the EPA to suspend, revise, or rescind four actions related to the Clean Power Plan, which would stifle the American energy industry.  This action will allow the EPA to focus on its primary mission of protecting our air and water.” The executive action eliminates federal overreach, restores economic freedom, and allows companies and workers to compete and succeed on a level playing field.

The Clean Power Plan (CPP) is an Obama Administration policy regulating carbon dioxide emissions from power plants. If implemented, the rule would transform the mix of electricity generation in nearly every state in the nation. Robert Murray; Murray Energy; the National Mining Association; 26 states; the utility industry; electric cooperatives; labor groups; and industry associations, along with the U.S. Chamber of Commerce and National Association of Manufacturers challenged the rule.

A stay on implementation of the CPP which suspended any obligation the states had to implement the rule prior to the issue being fully litigated, was issued last month and at that time, the U.S. Supreme Court cited the threat of immediate economic harm if the rule was implemented as its reasoning. Prior to the ruling, the Supreme Court had never issued a stay of a government regulation before a lower court had heard the merits of the case.

In looking at the possible impact of the CPP, the U.S. Energy Information Administration recently forecast the CPP would force 53,000 Megawatts of coal generating capacity into retirement (EIA AEO May 2017), sending coal production down by 28 percent.

According to the National Mining Association, the CPP, if implemented, would harm the wider economy, including households and businesses. After implementation, the typical annual household electricity bills in 2020 are projected to be more than a third higher than they were in 2012, or an estimated $680 per family. More than 40 states would face double-digit increases in the cost of wholesale electricity, with the CPP increasing wholesale electricity prices by an estimated $214 billion. The construction of replacement generating capacity needed in the event of implementation was projected to cost an additional $64 billion. State-by-state projected impacts of the CPP, may be viewed at http://www.countoncoal.org/costly-power-plan/.

For more information, interested persons may contact the Virginia Coal & Energy Alliance at 276-889-4001.