Statement from a Coalition of Free-Market State Think Tanks on the Affordable Clean Energy Rule:
The Trump administration’s finalized Affordable Clean Energy (ACE) rule is a major victory for
America’s middle class, many of whom work in energy intensive industries like manufacturing
and mining. It also represents a boon to America’s least fortunate for whom energy costs
represent a significant part of their budget. All Americans would have been harmed by the
Obama administration’s legally flawed Clean Power Plan. It would have dramatically increased the cost of electricity and was predicted to reduce global warming by only 0.018 degrees Celsius by 2100, an amount far too small to be measured.
After Congress rejected proposed cap and trade legislation, the Obama administration crafted the Clean Power Plan to force states into regional cap and trade plans. President Trump’s plan disallows such plans for compliance and focuses, instead, on improving the efficiencies of individual plants.
The Clean Power Plan claimed to seek a 32% reduction in CO2 emissions from 2005 levels by
2030, at an estimated compliance cost of $9 billion. The US Chamber of Commerce estimated a more realistic $75 billion in compliance costs. The Rule was met with bipartisan opposition by 27 states who won a Supreme Court stay of the Rule in 2016.
The Clean Power Plan was also completely unnecessary. Thanks to the Trump administration's commonsense approach, emissions have fallen by 28% since 2017 and are forecast to be reduced 35% by 2030. At a compliance cost of $0.3 billion for the ACE rule, these gains were at 250 times less cost than the previous administration’s alternative.
David T. Stevenson
Caesar Rodney Institute (Delaware)
Center of the American Experiment (Minnesota)
Commonwealth Foundation (Pennsylvania)
Amy Oliver Cooke
Executive Vice President
Independence Institute (Colorado)
President and CEO
John Locke Foundation (North Carolina)
Director of Environmental Policy
Mackinac Center for Public Policy (Michigan)
The John K. MacIver Institute for Public Policy (Wisconsin)
Jameson Taylor, Ph.D.
Vice President for Policy
Mississippi Center for Public Policy
Rhode Island Center for Freedom & Prosperity
Rio Grande Foundation (New Mexico)
Roughrider Policy Center (North Dakota)