Biden’s Latest Power Plant Power Grab

Biden’s Latest Power Plant Power Grab
President Joe Biden announces plans to curb planet-warming emissions from the nation's power stations, as part of the efforts to combat climate change, in the Rose Garden of the White House in Washington on May 11, 2023. Brendan Smialowski/AFP via Getty Images
Diana Furchtgott-Roth
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Commentary
Almost two years after a similar rule was rejected by the Supreme Court, the Biden administration on April 25 released another final rule for regulating U.S. power plants.
Under the rule, coal-fired power plants and most new natural gas-fired power plants would have to eliminate 90 percent of their carbon emissions by 2039 or close down in 2040.

The Environmental Protection Agency’s (EPA’s) new rule would raise electricity costs for Americans, kill manufacturing jobs, and disproportionately affect the poor, farmers, and small businesses.

The EPA’s rule, if it overcomes legal challenges, would result in the closure of coal-fired power plants that now produce 16 percent of Americans’ electricity. It would make natural gas power generation, which produces 43 percent of electricity, more costly and increase the incidence of blackouts.

Under the rule, the United States would become a less attractive location for energy-intensive manufacturing, and Americans’ electricity bills would rise.

This is the latest in a series of government attempts to reduce emissions—and power—from the nation’s energy-generating sector.

The EPA’s Clean Power Plan, proposed in 2015 under President Barack Obama, stated that if emissions exceeded the agency’s requirements, a state or group of states would be required to shut down power plants or install renewable energy sources.
But although the Clean Air Act allows the EPA to set maximum levels of new and existing emissions sources, the Supreme Court ruled 6–3 in West Virginia v. Environmental Protection Agency that the law does not allow the EPA to shut down power plants.
Specifically, the EPA can’t move from regulating individual power plants to regulating regional emissions, as it did in the rejected Clean Power Plan. The high court’s opinion cited the major questions doctrine, according to which Congress must “speak clearly if it wishes to assign to an agency decisions of vast economic and political significance.”

That’s why President Joe Biden’s EPA is trying another tactic to regulate emissions with this latest rule.

Rather than shutting down power plants by regulating regional emissions, as in 2015, the power plants would have to either comply with an unproven technology to sequester (or bury) 90 percent of their carbon dioxide emissions or close down.

President Obama issued his Clean Power Plan as a regulation because, despite sizable Democratic majorities in both chambers, Congress didn’t pass legislation to reduce emissions from power plants.

The American Clean Energy and Security Act, introduced in 2009 by Reps. Henry Waxman (D-Calif.) and Edward Markey (D-Mass.), and the American Power Act, introduced the next year by Sens. John Kerry (D-Mass.) and Joe Lieberman (D-Conn.), would have accomplished this, but neither proposal became law.

In the same way, President Biden’s plan to close power plants would not pass Congress, so he is trying to bring out a regulation to achieve the same goal.

However, this term, the Supreme Court is reconsidering the so-called Chevron doctrine, which now gives government agencies wide leeway to interpret laws. That decision is due in May or June.

If the high court overturns the Chevron doctrine, as predicted, the EPA’s new power plant rule will be on weaker grounds because it relies on an ambiguous interpretation.

In 2022, the Supreme Court found the first Clean Power Plan to be an example of “agencies asserting highly consequential power beyond what Congress could reasonably be understood to have granted.”

Writing for the majority, Chief Justice John Roberts argued that the “EPA claimed to discover an unheralded power representing a transformative expansion of its regulatory authority in the vague language of a long-extant, but rarely used, statute designed as a gap filler.”

“That discovery allowed it to adopt a regulatory program that Congress had conspicuously declined to enact itself,” he wrote.

Justice Neil Gorsuch concurred.

“The framers [of the Constitution] believed that the power to make new laws regulating private conduct was a grave one that could, if not properly checked, pose a serious threat to individual liberty,” he said.

Severe, government-imposed cuts in carbon emissions raise the cost of electricity and U.S.-made goods. Under the EPA’s new rule, power plants would have to invest in more costly equipment or close down.

Cleaner air and efficient power generation are worthwhile goals. But so is the security that comes from a healthy economy and the rule of law.

The Supreme Court, which struck down President Obama’s power plant rule in 2022, could well strike down President Biden’s version in the future.

Reprinted with permission from The Daily Signal, a publication of The Heritage Foundation
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
Diana Furchtgott-Roth
Diana Furchtgott-Roth
Author
Diana Furchtgott-Roth is an economist who is adjunct professor of economics at George Washington University, where she teaches Transportation Economics. From 2019 to 2021, she was Deputy Assistant Secretary for Research and Technology at the U.S. Department of Transportation. Prior to joining USDOT, Furchtgott was Acting Assistant Secretary for Economic Policy at the U.S. Department of Treasury. She has been a senior fellow and director of Economics21 at the Manhattan Institute for Policy Research. She previously served as chief economist of the U.S. Department of Labor; chief of staff of the President’s Council of Economic Advisers; and deputy executive director of the Domestic Policy Council. She is the director of the Center for Energy, Climate and Environment and the Herbert and Joyce Morgan Fellow at The Heritage Foundation. Furchtgott is also president of Furchtgott International and the author or coauthor of six books and hundreds of articles on economic policy, most recently “United States Income, Consumption, Wealth, and Inequality” (2020). She received her BA in economics from Swarthmore College and her M.Phil. in economics from Oxford University.