Legal hurdles and cheap gas will foil US coal plans

Subject

US energy mix moves.

Significance

The administration of President Donald Trump has taken up the cause of the coal and nuclear industries for policy action during its first year in office. Energy Secretary Rick Perry has proposed a rule that would subsidise coal and nuclear plants for their role in what he claims is providing grid “resiliency”. Meanwhile, Environmental Protection Agency (EPA) Director Scott Pruitt has proposed repealing President Barack Obama's Clean Power Plan (CPP) -- a regulation, which the coal industry opposes, aimed at cutting US carbon emissions.

Impacts

• Regulatory shifts will not shelter coal miners from diminished global demand for coal.
• Tax incentives for renewables enjoy bipartisan congressional support despite Trump’s opposition.
• Trump’s support for increasing US energy extraction will exacerbate the gas glut depressing coal and nuclear.