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The Casualties of Obama’s War on Coal

This week President Obama is expected to announce new regulations on carbon emissions that will have a potentially devastating impact on America’s more than 600 coal-fired power plants. The move was made possible by Supreme Court decisions that ruled that the Environmental Protection Agency had the right to regulate such emissions, giving the president virtual carte blanche to remake this sector of our economy without requiring congressional consent. As the New York Times reports today, this decision is being closely watched abroad as governments look to see whether the U.S. is setting a good example for other nations, such as China, whose economies are driven by coal and which do far more polluting of the atmosphere than America does.

Yet the Chinese aren’t the only ones following this issue. The president has already signaled that addressing climate change was one of the priorities of his second term as well as making it clear that he was eager to move ahead and govern by executive order rather than via the normal constitutional process that involves the legislative branch. As such, the White House rightly anticipates that this broadside aimed at the coal industry will be intensely popular with Obama’s core constituencies on the left as well as the liberal mainstream media. But while leading Democratic donors such as Tom Steyer will be cheering a measure that fits his ideological agenda, not everybody in the Democratic Party is going to be happy with what amounts to a new Obama war on coal. In particular, the Democrats’ brightest hope for stealing a Republican-controlled Senate seat this fall—Kentucky’s Alison Lundergan Grimes—may wind up paying a fearful price for Obama’s decision.

As the Times notes, the conundrum of America’s extremist environmentalist lobby lies in the fact that the U.S. is actually doing relatively little of the carbon damage that they believe is fueling global warming. The vast majority of the increase in emissions comes from developing economies around the globe, especially in places like China. While resistance to the sort of tough restrictions on carbon that environmentalists lust for is strong in nations that produce fossil-based fuels, the Chinese believe that the West should pay the steep economic price involved in such schemes while they and other developing nations are allowed to burn all the coal they want. By making his ruling, Obama won’t just be harming the U.S. economy. By setting a good example, Washington thinks their going first will somehow persuade the Chinese to follow suit.

This is highly unlikely. Though it pays lip service to global warming theories, China’s top priority is building their economy. Meanwhile, nations such as Russia are not shy about stating their unwillingness to stop burning coal. But by taking what he believes is the high road with respect to the environment, the president will be fulfilling not only the promises made to his domestic liberal constituencies but also behaving in a manner that is consistent with his belief in multilateral foreign policy.

But back at home this high-minded environmentalism may not play as well as he thinks. Many Americans fear that Obama will damage their economy while doing nothing to alter the warming equation that is being decided elsewhere. Though the media has followed the White House playbook in emphasizing any report that hypes the threat from global warming while downplaying any development that undermines this thesis, the public has demonstrated repeatedly that this issue is not a priority, especially when compared to their concerns about the economy and jobs. And this is exactly what the president’s orders will affect most grievously.

Among the biggest losers will be regions where the coal industry is a mainstay of the economy. Unfortunately for the Democrats, the best example of such a state is Kentucky, where Senate Minority Leader Mitch McConnell remains the country’s most endangered Republican in an election cycle that should otherwise be quite favorable to the GOP. McConnell has been working hard to tie Grimes to Obama, a charge that she has steadfastly rejected. But the president’s regulatory war on coal will be a body blow to Grimes’s attempt to argue that it will be her and not Obama who will be on the ballot this November. Grimes smartly opposes the administration’s environmentalist stands with respect to coal, but the new orders will escalate the struggle to a point where it could play a crucial role in the midterms. Grimes has sought to make McConnell the main issue in the contest, something that is not to the advantage of the dour minority leader and longtime incumbent. But if the key issue is defense of Kentucky’s coal industry against the White House, it will be difficult for the Democrat to assert that she will be in a better position to resist this assault than the man who may be the majority leader of the upper body next January. In a contest to see who can be most hostile to Obama, the GOP has the edge over even the most independent Democrat.

The war on coal is exactly the ticket to fire up the president’s coastal elite base as well as very much what the international community wants. But it could be the death knell for Grimes’s Senate hopes. If that race makes the difference in deciding control of the Senate, it could be that global warming will be the issue that pushes Obama from a weak-second term incumbent to dead-in-the-water lame duck.



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