RUTHFULLY YOURS

One area where President Trump is notching early victories is unleashing American energy, which for years has been held hostage to progressive climate obsessions. On Tuesday Mr. Trump signed an executive order to rescind many of the Obama Administration’s energy directives, and he deserves credit for ending punitive policies that harmed the economy for no improvement in global CO 2 emissions or temperatures.

The order directs the Environmental Protection Agency to review the Clean Power Plan, which the Supreme Court stayed last year in an extraordinary rebuke. The plan essentially forces states to retire coal plants early, and the tab could top $1 trillion in lost output and 125,000 jobs, according to the American Action Forum. Also expected are double-digit increases in the price of electricity—and a less reliable power grid. All for nothing: A year of U.S. reductions in 2025 would be offset by Chinese emissions in three weeks, says Rice University’s Charles McConnell.

The rule also fulfills a campaign promise to end Barack Obama’s war on coal. It’s true that market forces are reducing coal’s share of U.S. electric power—to some 30% from about 50% a decade ago—thanks mainly to fracking for natural gas. Yet Mr. Obama still deployed brute government force to bankrupt the coal industry. Mr. Trump is right to end that punishment and let the market, not federal dictates, sort out the right energy mix for the future.

The story is similar on a methane rule that the executive order will begin to roll back. Total U.S. methane emissions have dropped 15% since 1990, as Bernard Weinstein of Southern Methodist University told the House last fall, even though domestic oil-and-gas production has doubled over the past decade. One reason is that energy companies have a financial incentive to capture the stuff and sell it. Still, EPA promulgated expensive new emissions targets, equipment rules and more.

The order also dumps the “social cost of carbon,” which is a tool the Obama Administration employed to junk mandatory cost-benefit analyses for regulations. For example: An EPA power plant rule predicted net benefits from $26 billion to $46 billion, but as much as 65% of that derived from guesswork about the positives of reducing carbon, as Bracewell & Giuliani’s Scott Segal explained to Congress at a 2015 hearing. The Obama Administration rolled out these new calculations with no public comment, and the models surely wouldn’t survive a rigorous peer review.

Our contributor Paul Tice makes an intriguing case nearby that the Trump Administration should go further to bring regulatory certainty for energy investment. He argues that the EPA should revisit its 2009 “endangerment finding,” which blacklisted carbon dioxide as a pollutant.

https://www.wsj.com/articles/trumps-next-step-on-climate-change-1490740870

The executive orders on climate change President Trump signed this week represent a step in the right direction for U.S. energy policy and, importantly, deliver on Mr. Trump’s campaign promise to roll back burdensome regulations affecting American companies. But it will take more than the stroke of a pen to make lasting progress and reverse the momentum of the climate-change movement.

On Tuesday, in a series of orders, Mr. Trump instructed the Environmental Protection Agency to rework its Clean Power Plan, which would restrict carbon emissions from existing power plants, mainly coal-fired ones. Last year the U.S. Supreme Court stayed enforcement of the CPP pending judicial review.

Mr. Trump also directed the Interior Department to lift its current moratorium on federal coal leasing and loosen restrictions on oil and gas development (including methane flaring) on federal lands. And he instructed all government agencies to stop factoring climate change into the environmental-review process for federal projects. The federal government will recalculate the “social cost of carbon.”

These actions are a good start, but all they do is reverse many of the executive orders President Obama signed late in his second term. While easy to implement and theatrical to stage, such measures are largely superficial and may prove as temporary as the decrees they rescind.

Because they don’t attack the climate-change regulatory problem at its root, Mr. Trump’s orders will not provide enough clarity to U.S. energy companies—particularly electric utilities and coal-mining companies—for their long-term business forecasting or short-term capital investment and head-count planning.

To accomplish that, the Trump administration, led by EPA Administrator Scott Pruitt, needs to target the EPA’s 2009 “endangerment finding,” which labeled carbon dioxide as a pollutant. That foundational ruling provided the legal underpinnings for all of the EPA’s follow-on carbon regulations, including the CPP.

It also provided the rationale for the previous administration’s anti-fossil-fuel agenda and its various climate-change initiatives and programs, which spanned more than a dozen federal agencies and cost the American taxpayer roughly $20 billion to $25 billion a year during Mr. Obama’s presidency.

The endangerment finding was the product of a rush to judgment. Much of the scientific data upon which it was predicated—chiefly, the 2007 Fourth Assessment Report of the U.N.’s Intergovernmental Panel on Climate Change—was already dated by the time of its publication and arguably not properly peer-reviewed as federal law requires.

With the benefit of hindsight—including more than a decade of actual-versus-modeled data, plus the insights into the insular climate-science community gleaned from the University of East Anglia Climategate email disclosures—there would seem to be strong grounds now to reconsider the EPA’s 2009 decision and issue a new finding.