How many times have you watched a sporting event and been convinced the referees officiating the game made calls unfairly favoring one team over another? Just as referees are supposed to call games objectively and without bias, government should stay out of the business of picking winners and losers.
In its final carbon rule, however, the Environmental Protection Agency did just that when it imposed on 22 states more stringent emission reduction requirements than originally proposed.
All of these states – except Rhode Island which has no coal-fired electricity generation – rely on coal to maintain affordable electricity prices. The collective average retail electricity price for the 21 coal-reliant “biggest loser” states was 12 percent below the national average in 2014. In contrast, Rhode Island’s electricity price was 49 percent above the national average.
EPA’s picking and choosing amounts to a big loss for consumers in all states forced to reduce CO2 emissions, but it hits the “biggest loser” states especially hard. Rising energy costs and declining family incomes are already straining the budgets of America’s lower- and middle-income families. Households with pre-tax annual incomes below $50,000, representing 48 percent of the nation’s households, already spend 17 percent of their after-tax income on energy costs. Many of these families are forced to make tough choices when their energy bill arrives each month. EPA’s carbon rule makes those decisions that much more difficult.
EPA’s pursuit of its illegal plan follows a dangerous trend of government agencies picking winners and losers in the energy marketplace. No matter where you live, this amounts to the makings of something much worse than just a bad call. When government is allowed to pick and choose, we all lose.