On Thursday, reports said the Trump administration is planning a massive intervention of the energy sector by ordering grid operators to buy electricity from coal and nuclear plants that are currently struggling to stay afloat.
In a 41-page memo obtained by Bloomberg, under a pair of federal laws, the Energy Department would exercise their emergency authority to order energy operators to purchase electricity or electric generation capacity from at-risk coal and nuclear facilities.
The memo continues to incorporate plans in which the Energy Department will launch a “Strategic Electric Generation Reserve” with the goal of promoting the national defense and maximizing energy supplies within the United States.
“Federal action is necessary to stop the further premature retirements of fuel-secure generation capacity,” the memo reads.
If you’re wondering to yourself whether it’s the type of government subsidy that can be perceived as a bailout that only the Obama administration would take part in, then you would be right.
As one of of his first actions as president in 2009, former President Barack Obama and his administration ignored all the “red flags” and rushed to get the solar panel-maker, Solyndra, a $535 million federal loan guarantee. The company filed for bankruptcy in 2011. This was just one of many bad choices the Obama administration made for one company over others. The bigger example was the auto bailout.
So, while the plan has yet to be announced, President Trump is treading a fine line. Rather than rely on small government conservative principles of cutting corporate taxes and burdensome regulation and letting the free market decide whether or not a struggling coal company will survive, his approach falls squarely in line with big government politicians like Obama, House Minority Leader Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y.
