A recap of the CCP stay
This series follows up on last month’s series about the stay ruling given to US President Obama’s CCP (Clean Power Plan) by the US Supreme Court. In that series, we discussed the benefits of the CCP, its implementation timeline, and the probable short-term and long-term impacts of the initiative on the coal mining (KOL) and renewable energy sectors in the US.
In this series, we’ll focus on the latest developments that have taken place since the Supreme Court ordered a stay on the CPP, examining the present status and probable future of the plan.
Setbacks for CPP opponents
After the Supreme Court issued a 5–4 vote calling for a stay on the implementation of Obama’s Clean Power Plan, the death of Supreme Court Justice Antonin Scalia on February 13, 2016, came as a major blow to the opponents of the clean energy initiative, which Obama developed and put forth in accordance with the latest world climate talks in Paris in December.
Growing opposition among Republicans
Since the Supreme Court’s ruling for a stay to be placed on the CPP, opponents of the clean energy plan have increased in number. Recently, the Virginia Chamber of Commerce has joined more than 200 Republican members of Congress and 27 other Republican-led states who are opposing the implementation of Obama’s Clean Power Plan until further resolution can be found in this ongoing legal challenge.
To resolve this legal challenge, the Obama administration, Senate Democrats, and a minority coalition of members of the Republican-dominated House of Representatives are calling for the Senate to accept Obama’s upcoming nomination for the Supreme Court vacancy following the death of Justice Antonin Scalia—or, at least, to grant hearings for the President’s nomination.
Uncertainty in coal country
Meanwhile, uncertainty surrounding the recovery of coal prices and the implementation of environmental regulations have led to corrections in the stock prices of major coal producers like Peabody Energy (BTU), Arch Coal (ACIIQ), Alpha Natural Resources (ANRZQ), and Cloud Peak Energy (CLD).
In the corresponding part of this series, we’ll discuss further the important role that filling the US Supreme Court vacancy will play in the implementation of the CPP.