Trump and FERC Sells Out to Dirty Energy Over Our Health

The Federal Energy Regulatory Commission (FERC) recently instituted a new rule that will essentially exclude new renewable energy resources from the PJM capacity market. This new rule, called the Minimum Offer Price Rule (MOPR), will cost the Midwest, Appalachia, and Mid-Atlantic regions almost $6 billion annually and will increase fossil fuel emissions. The new rule will cost consumers in New Jersey over $711 million a year, $60 per person per year, or $5 per person per month.

“Trump and FERC are selling us out to the fossil fuel industry. They are adding billions of dollars in subsidies for coal, oil, and natural gas at the expense of green jobs and our health. They will now be getting over $6 billion a year just from our PJM grid alone, in addition to $15 billion a year in direct federal subsidies and all types of indirect subsidies. These dirty industries cannot compete with cheaper and cleaner renewable energy, so they are looking for a massive subsidy at our expense. This will hurt green jobs and public health,” said Jeff Tittel, Director of the New Jersey Sierra Club. “Big oil, coal, and gas industries are already drilling on our public lands and coasts and cutting through public lands for their pipelines. People say that natural gas is cheaper than renewable energy, so why do they need a subsidy? This will cost the average New Jersey ratepayer at least $5 a month, over $711 million a year, because they can’t compete with renewable energy.”

The MOPR will put a surcharge on new renewable energy resources. Elevating the prices of renewable energy resources will prevent them from displacing more expensive dirty energy, like coal and new fracked gas resources. The new rule will cancel our state incentives for clean energy resources and will raise costs for 65 million consumers as a start.

“This is a shameful giveaway to big oil, coal, and gas at the expense of our environment. This scam will cost ratepayers in New Jersey $711 million a year on top of $300 million already being spent each year to subsidize nuclear energy. People complain about the cost of offshore wind and renewable energy, but these technologies are getting cheaper and more effective each year. There are also five times more jobs in renewable energy than in fossil fuels. The cheapest energy in the country is wind generated in Kansas, which is half the price of natural gas. Anybody who says natural gas is cheaper and cleaner doesn’t know what they are talking about,” said Tittel. “They aren’t looking at the staggering cost of natural gas and fossil fuels when it comes to climate impacts. A recent FEMA report found that climate change could result in $155 billion annual labor-related losses, $141 billion losses due to temperature-related deaths, and $118 billion a year on coastal property damage.”

High levels of ozone exposure can result in chronic respiratory diseases like asthma, scarring of the lungs, and premature death, and is particularly harmful to children. The areas of the country that suffer from unhealthy air due to cross-state pollution are disproportionately home to communities of color. A third of New Jersey’s pollution comes from out of state.

“These industries have extreme costs to our health and the environment. Most polluting fossil fuel plants are in lower-income and environmental justice communities. These communities are overburdened with pollution already. People in these areas are dying and being sent to the hospital for asthma attacks and respiratory diseases. Stanford University found that New Jersey could save $60 billion a year if New Jersey got to zero carbon and 100% renewable. New Jersey gets a third of our air pollution from out of state, and now the Trump administration is selling us out to the fossil fuel industry,” said Jeff Tittel. “People who say natural gas is cheaper aren’t looking at the entire cost to society. Natural gas has tremendous costs when it comes to environmental and health impacts. These plants are in places like Newark and Camden. Newark has four natural gas plants and an incinerator within a few miles of each other. The more we subsidize these, the more we are poisoning our communities.”

The new FERC rule targets states that subsidize renewable energy. New resources supported by renewable energy credits and other incentives will not be able to compete with dirty energy like coal and natural gas. Customers will be forced to pay higher prices for dirty energy that they do not want or need.

“This is FERC’s Christmas gift to polluters. Coal and gas companies know that renewable energy is finally picking up, and now they are trying to do everything they can to stop states from transitioning. Renewable energy is actually becoming cheaper and more effective. They are going after new capacity only because it would be illegal to go after energy that has already cleared the auction due to ex post facto law. This new rule will hurt clean and renewable energy progress at a time that New Jersey is ramping up offshore wind and renewable energy. It will also increase fossil fuel emissions,” said Tittel. “This new rule is part of Trump’s war on the environment. More pollution will lead to more extreme climate impacts. New Jersey is already one of the most vulnerable states to sea level rise and climate impacts. Trump is selling us out to dirty fossil fuels. FERC should be known as the Federal Energy Rubberstamp Commission.”

According to the Solar Energy Industries Association, solar has experienced an average annual growth rate of 68% in the last decade. The cost to install solar has dropped by more than 70% since 2010 and there are more than double the number of solar jobs than existed only five years ago. The MOPR rule will slow or stop renewable energy progress.

“This is a shameful giveaway to stop states from moving toward a greener economy. FERC are saying that we are giving an unfair advantage to renewable energy but they are letting coal and natural gas control the energy market while blocking renewables. This will undermine Murphy’s goals, and it will prevent us from reaching 100% renewable by 2035 and zero carbon by 2050. It will also increase climate impacts like flooding and sea-level rise. Since renewable energy is taking off with more proposals for offshore wind and solar, FERC is trying to tilt the scale back to dirty energy,” said Jeff Tittel, Director of the New Jersey Sierra Club. “New Jersey needs to stand up against FERC and stand up to corporate polluters. We need to fight back to protect our clean air and water and to make us more resilient towards climate change.”

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