Biden Administration's Stance on Coal Industry

Introduction

The Biden administration recently made its stance on the coal industry clear with the introduction of a series of regulations. These regulations aim to restrict coal mining and drilling for oil and natural gas on millions of acres of federal land. In addition, they also target the remaining coal-fired power generation fleet in the nation.

New Regulations

The Bureau of Land Management has issued a new rule that effectively prohibits coal mining or oil and gas drilling on federally owned lands. This rule is expected to significantly impact coal mining in the Powder River Basin and other western reserves, which are major sources of thermal coal used for energy production. These regulations were issued just days before the end of a period during which a new President could reverse the decision by executive order. Now, any reversal would require action by both houses of Congress or litigation in court.

Implications for the Energy Sector

Despite warnings from some of the Biden Administration’s own electric utility regulators about potential failures of the nation’s electric grid, these regulations have been put into effect. They make it nearly impossible for utilities to operate coal-fired power plants without investing in new, expensive, and largely unproven carbon capture technologies. These technologies are expected to cut carbon dioxide emissions by 95%. The same requirement applies to new natural gas-powered facilities, while existing ones are exempt.

Impact on the Economy

These regulations are expected to force the shutdown of the nation’s coal-fired power plants by making it economically unfeasible to operate them. This could result in higher electricity bills for millions of American families, making it difficult for them to afford basic necessities like food and heating. The hardest hit will likely be those on fixed incomes, such as retirees on social security.

Reliability of the Electric Grid

Further closure of baseload generation could push the electric grid beyond its capacity during peak demand times, such as during summer and winter. This could lead to energy rationing and have a ripple effect on the economy, driving inflation higher and forcing many companies out of business.

Conclusion

The Biden administration's approach to regulation appears to prioritize a green agenda over the needs of average American families. The nation's need for reliable and affordable energy, which has been a cornerstone of its development, seems to be overlooked. Despite abundant resources of coal, oil, and gas, the administration appears to be on a path towards economic suicide. The demand for electricity is projected to skyrocket in the coming decades, and it remains to be seen how this demand will be met if the current approach continues.

What are your thoughts on this matter? Do you think the Biden administration's approach to the coal industry is justified, or do you believe it overlooks the needs of the average American family? Share this article with your friends and let's get a conversation going. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6 pm.