Christopher J. Alleva
The estimable Michael Barone wrote an excellent book in 2005 titled Hard America, Soft America: Competition vs. Coddling and the Battle for the Nation’s Future. Inspired by a column he wrote in 2003, the book posits that there are two Americas: soft America and hard America. (Perhaps this is where John Edwards got his two Americas idea).
Barone argues that hard and soft America metaphorical proxies of the never ending struggle between New Deal Liberalism and Free Market Conservatism. The settlement last month of an old 1999 lawsuit over emissions from coal-fired power plants in the Ohio River Valley is a good example of Barone’s thesis in action. It was reached among American Electric Power ("AEP"), nine Northeastern and Midatlantic states, the EPA and a number of environmental groups, including the Natural Resources Defense Council and the Sierra Club. The settlement requires AEP to meet annual sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions limits for its fleet of 16 coal-fueled power plants in Indiana, Kentucky, Ohio, Virginia and West Virginia.
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The lawsuit was a spoiled leftover from the Clinton’s litigious approach to everything. From terrorism to the environment, their first impulse was always call the lawyers. This lawsuit came out of their politically-motivated interpretation of the New Source Review (NSR) rules concerning maintenance and pollution control upgrades of coal fired power plants. Like all spoiled leftovers from Clinton, this on has that familiar pungent aroma.
Before Clinton and his trial lawyers pals came on the scene, the rule was interpreted to allow plants built prior to NSR’s adoption in 1977 to be “grandfathered,” only required to install pollution controls when they are expanded or substantially upgraded. Plants were permitted to undertake routine repair and maintenance without triggering NSR’s requirements. Under Clinton, changing a light bulb at the plant could trigger an NSR giving Clinton’s trial lawyer cronies a pretext to make a claim.
The effect of the Clinton policy was to increase pollution from these power plants because they were discouraged from doing routine maintenance like replacing worn-out boiler tubes or boiler fans. This made the plants less reliable, less efficient and more polluting. In 2003, President Bush finally got around to ending this failed policy. Writing at the National Review in October 2003 Jonathan Alder covered the President’s announcement of his new policy at Michigan’s largest coal fired plant in Monroe. The plant is very important to Michigan, producing 3000 megawatts of power. Adler describes the adverse impact of Clinton’s NSR policy on the environment:
“For years Detroit Edison has sought to replace the turbines at the facility to increase its operating efficiency. Now that some of the President Bush’s NSR reforms are finalized, the replacement will proceed. A more efficient plant will produce more energy without increasing its emissions. As this energy needs to be produced somewhere, the net result of the Detroit Edison upgrade will be less air pollution, not more.”
Clinton’s soft America produced tons of legal briefs and legal fees but not one ton of reduced emissions or any environmental clean up. Bush’s hard America derailed Clinton’s lawyer gravy train and implemented policies that will tangibly reduce air pollution. AEP has been a favorite punching bag for the self-appointed environmentalists. They are one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP is the target because most of their generating capacity is coal fired because it is the least expensive available fuel in their service territory. But remember, eco-dogma, coal is bad, solar, wind good.
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Bush undertook an Augean task of undoing the damage caused by Clinton’s soft America energy policies. Once again, the voters have a choice. They can vote for soft America and let the lights go out or they can vote for hard American and keep the lights on. This shouldn’t be a difficult choice, just ask former California Governor Gray Davis.
So, adversarial environmental policies produce more pollution and less electricity at a higher cost. Nothing new here.
The market, driven by the need to produce the most at the lowest cost, actually provides the best outcome, not endless environmental litigation.
What a surprise! /sarcasm