WASHINGTON (Aug. 3, 2015) – The R Street Institute expressed disappointment at the energy plan released today by President Barack Obama, noting both the increased costs and unworkable compliance framework established for the states.

“We agree that science demonstrates that the climate is changing because of rising carbon emissions,” said Catrina Rorke, R Street’s director of energy policy. “What we oppose is the idea that science compels irresponsible, expensive policy and aggressive government overreach.”

The plan aims to reduce greenhouse-gas emissions by 32 percent by 2030, largely by reducing the share of coal generation. Coal generation currently accounts for nearly 40 percent of power generation, down from 50 percent five years ago. According to Environmental Protection Agency estimates, the rule will impose $8.4 billion in costs on all Americans.

“There are other methods to address climate change in a workable framework for both the states and power generators that will not impose nearly these kinds of costs,” Rorke said. “Power generators already have achieved about half of the reductions called for by the president through technological innovation, state initiatives and increases in efficiency and distributed generation. The Clean Power Plan, by design, is less effective in achieving reductions than the private sector has been over the last decade.”

The plan also will be unworkable in some states, notably the four states (representing more than 12 percent of our coal fleet) that will not have a legislative session between now and the time that initial compliance strategies must be submitted in 2016.

“This rule continues to rely on a very shaky legal foundation, requiring technologies and investments far removed from the coal plants the rule ostensibly targets,” said Rorke. “We have reason to be very concerned that states will be required to change law, bear costs and compel carbon reductions for a rule that will later be struck down in the courts.”

Rorke noted that the rule does allow states to rely on a carbon fee approach, a result of comments provided by R Street and other groups to provide a simpler, more market-based strategy.

The Clean Air Act, passed 45 years ago, has been successful in reducing actual pollution emissions levels by 70 percent, while the U.S. economy tripled in size during the same period, Rorke noted. But while the act is well-designed to address certain kinds of pollution, it was never intended to address carbon, she said.

“The best way to fight the negative impacts of climate change is to be much richer in the future,” Rorke continued. “We need a climate strategy that will expand the economy, not impose undo costs on business. Congressional action is necessary now more than ever.”

Featured Publications