PACE in National Journal: President’s Budget Misses Mark

As part of a panel of Energy & Environment experts for the National Journal, PACE weighs in this week on why the president’s budget misses the mark on energy and environment issues. You can read and share the piece online here.

Unsurprisingly, President Obama’s 2014 budget continues a trend of increasing funds for regulatory agencies and unreliable energy sources while decreasing support for fossil fuel programs. What the President and his administration fail to recognize is natural resources like coal are abundant, affordable and efficient. In contrast, energy sources such as wind and solar are simply not as practical in certain parts of the country – the Southeast, for example – and can come at an onerous expense to consumers.

Beyond the budget, though, the energy industry must also take the administration’s leadership into account as the Department of Energy and the Environmental Protection Agency welcome Ernest Moniz and Gina McCarthy, respectively. In his first term, President Obama demonized America’s domestic fossil fuel sources while trumpeting alternative sources. Will these significant leadership changes signal a different trajectory for the administration’s treatment of energy resources over the next four years? The long-term affordability and reliability of our nation’s energy certainly would benefit from a fresh approach.

Both Moniz and McCarthy have spoken on the importance of taking a balanced approach to domestic energy sources, as opposed to pushing alternative energy at all costs. During her confirmation hearing, McCarthy stated, ” Coal has been and will continue to be a significant source of energy in the United States, and I take my job seriously when developing those standards to provide flexibility in the rules.” She has also been quoted as saying, “We’re going to have to be sensitive of the impact of every rule. We don’t want to have unintended consequences on small businesses.”

For his part, Moniz once stated, “The president is an all-of-the above person and I am an all-of-the above person.” Unfortunately, despite Moniz’s description to the contrary, the actions of the Administration over the past four years have reflected anything but an “all-of-the above” approach when it comes to fossil fuels. Burdensome regulations are forcing plants across the country to shutter their doors, putting hard-working Americans in the unemployment line. Businesses of all sizes are suffering under an uncertain regulatory future. Families are struggling to make ends meet, all while being left to wonder what plan, if any, the current administration has for ensuring long-term energy independence at an affordable price.

If leadership within the EPA, DOE, and the Administration are serious about limiting the unintended consequences of their rules, they should more thoroughly weigh the impact of their rule-making. They should take all steps necessary to gauge whether these rules endanger the affordability and reliability of American energy. And they should commit unequivocally that our nation’s energy policy serves the competitiveness of our economy and the creation of American jobs, rather than the radical agendas supported by a few special interests.