June, 01 2018, 12:00am EDT
Sierra Club Statement on Trump Administration's Latest Attempt to Bail Out Money-Losing Coal and Nuclear Plants
Trump administration’s actions will raise bills for Ohio electric customers while giving a big raise
COLUMBUS, Ohio
Today, Bloomberg reports that the Trump Administration is considering an order that would force grid operators across the country to buy electricity from failing coal and nuclear plants -- a move Bloomberg categorizes as "unprecedented intervention" into U.S. energy markets and an order that would raise electricity rates for Americans across the country. Such a plan comes despite fierce objections by grid operators, consumer advocates, and business interests that such an unnecessary bail out would be expensive and destructive.
"Trump clearly wants to try anything to help his millionaire coal and nuclear executive buddies, even demanding American families fork over big bucks to prop up their uneconomic, failing power plants," said Neil Waggoner, Campaign Representative with the Beyond Coal Campaign in Ohio. "Trump and Sec. Perry should listen to energy experts, and allow the market to retire uneconomic energy production."
Bloomberg indicates a draft Energy Department plan would exploit Section 202(c) of the Federal Power Act and the Cold War-era Defense Production Act (DPA) to force American families and businesses to bail out uneconomic coal and nuclear plants. The DPA is an obscure wartime law that allows the president to secure scarce resources for national defense. Under the Federal Power Act, Section 202(c) allows the Energy Secretary to issue an "emergency run order" for use in only the most extreme circumstances, such as an act of war or severe grid impairment. However, since grid operators, industry experts, and utilities have repeatedly and forcefully stated that there is no energy shortage and there is no evidence of an emergency, Trump's scheme today is not just unnecessary, it is likely illegal.
Meanwhile, the Federal Energy Regulatory Commission confirmed earlier this year that any threats to the grid posed by extreme weather events -- events exacerbated by climate change, to which coal-fired power plants are a major contributor -- provide no basis to subsidize non-competitive coal and nuclear plants. Additionally, senior staff at DOE have previously told the press that the department, "would never use a 202 to stave off an economic issue...that's not what it's for."
FirstEnergy Solutions, which recently filed for bankruptcy, asked the Department of Energy (DOE) for its emergency powers to bail-out plants whose high costs have rendered them obsolete in an energy market in which modern clean energy resources like solar, wind, and energy efficiency are more affordable. The coal and nuclear plants that have announced their retirement have been rejected by utilities, consumers, and the market for being too dirty and too expensive, as they are being rapidly replaced with cleaner sources, meaning Trump's order would flout public opinion, the market, and, likely, the law.
The Sierra Club is the most enduring and influential grassroots environmental organization in the United States. We amplify the power of our 3.8 million members and supporters to defend everyone's right to a healthy world.
(415) 977-5500LATEST NEWS
Tax Prosecutions Plummet to Lowest Level in Decades as Trump Guts Enforcement Efforts
"Decreasing criminal enforcement... would signal an indifference to cheating and insults the millions of honest filers who pay the taxes they owe," said one tax law expert.
Dec 10, 2025
President Donald Trump's administration has drastically slashed resources for enforcing tax laws, and the result has been a massive plunge in tax-related prosecutions.
A Tuesday report from Reuters found that federal tax prosecutions in 2025 fell to "their lowest level in decades this year," falling by 27% over the last year.
The report noted that the Trump administration has made "deep cuts to the Internal Revenue Service’s criminal investigative unit," and has also reassigned some agents who worked in the unit to focus more on immigration cases.
The Trump administration has even assigned more than 20 IRS agents in the agency's DC office to conduct patrols alongside city police officers as part of the president's purported plan to reduce crime in the capital city, Reuters reported.
Reuters also observed that the US Department of Justice closed its Tax Division, and that "a third or more of the criminal lawyers who worked there quit."
Sources told Reuters that the Trump administration explicitly told DOJ prosecutors earlier this year that tax prosecutions were not a top priority, and one source said that DOJ leadership under the second Trump administration was "very skeptical about white-collar crime and whether we should be doing those cases."
The report added that US attorneys' offices at the moment are unlikely to pick up the slack for enforcing tax laws given that DOJ records show "more than 1,000 lawyers have left US attorneys’ offices this year, roughly double the number who quit or were pushed out in previous years."
David Hubbert, a senior fellow at the Tax Law Center at New York University’s law school, told Reuters that these cuts would likely result in a surge in tax cheating.
"Decreasing criminal enforcement across all types of taxpayers would signal an indifference to cheating and insults the millions of honest filers who pay the taxes they owe," Hubbert explained.
Keep ReadingShow Less
Richest 0.001% Now Own Three Times More Wealth Than Poorest Half of Humanity Combined
"The choices we make in the coming years will determine whether the global economy continues down a path of extreme concentration or moves toward shared prosperity."
Dec 10, 2025
A landmark report on global inequality published Wednesday shows that the chasm between the richest slice of humanity and everyone else continued to expand this year, leaving the top 0.001%—fewer than 60,000 multimillionaires—with three times more wealth than the poorest half of the world's population combined.
The global wealth gap has become so staggering, and its impact on economies and democratic institutions so corrosive, that policymakers should treat it as an emergency, argues the third edition of the World Inequality Report, a comprehensive analysis that draws on the work of hundreds of scholars worldwide. Ricardo Gómez-Carrera, a researcher at the World Inequality Lab, is the report's lead author.
"Inequality has long been a defining feature of the global economy, but by 2025, it has reached levels that demand urgent attention," reads the new report. "The benefits of globalization and economic growth have flowed disproportionately to a small minority, while much of the world’s population still face difficulties in achieving stable livelihoods. These divides are not inevitable. They are the outcome of political and institutional choices."
The richest 10% of the global population, according to the latest data, own three-quarters of the world's wealth and capture more income than the rest of humanity. Within most countries, it is rare for the bottom 50% to control more than 5% of national wealth.
"This concentration is not only persistent, but it is also accelerating," the report observes. "Since the 1990s, the wealth of billionaires and centimillionaires has grown at approximately 8% annually, nearly twice the rate of growth experienced by the bottom half of the population. The poorest have made modest gains, but these are overshadowed by the extraordinary accumulation at the very top."
"The result," the report adds, "is a world in which a tiny minority commands unprecedented financial power, while billions remain excluded from even basic economic stability."
The report comes as the world's richest and most powerful nation, led by President Donald Trump, abandons international cooperation on climate and taxation and works to supercharge inequality by slashing domestic and foreign aid programs while delivering massive handouts to the wealthiest Americans.
Jayati Ghosh, a member of the G20 Extraordinary Committee of Independent Experts on Global Inequality and co-author of the forward to the new report, said in a statement that "we live in a system where resources extracted from labor and nature in low-income countries continue to sustain the prosperity and the unsustainable lifestyle of people in high-income economies and rich elites across countries."
"These patterns are not accidents of markets," said Ghosh. "They reflect the legacy of history and the functioning of institutions, regulations and policies—all of which are related to unequal power relations that have yet to be rebalanced.”
Reversing the decadeslong trend of exploding inequality will require the political will to pursue obvious solutions, including fair taxation of the mega-rich and bold investments in social programs and climate action, which is disproportionately fueled by the wealthy.
"The choices we make in the coming years," the report says, "will determine whether the global economy continues down a path of extreme concentration or moves toward shared prosperity."
Keep ReadingShow Less
'Defeat for Justice': Ecuador to Pay Amazon-Polluting Chevron $220 Million
"A debt is not owed to Chevron. A debt is owed to the Amazonian families still waiting for truth, justice, and full reparation."
Dec 09, 2025
A US advocacy group, American human rights lawyer Steven Donziger, and the group in Ecuador behind a historic legal battle against Chevron over its dumping of toxic waste in the Amazon rainforest are condemning the Ecuadorian government's plans to pay the oil giant hundreds of millions of dollars due to an arbitration ruling.
In response to the legal fight in Ecuador that led to a $9.5 billion judgment against Chevron—which bought Texaco—the fossil fuel company turned to the investor-state dispute settlement (ISDS) system, suing the South American country in the Hague-based Permanent Court of Arbitration. As part of the latter case, Ecuadorian Attorney General Diana Salazar Méndez's office announced Monday that the government would pay the US company only around $220 million, rather than the over $3 billion Chevron sought.
While Chevron said in a statement that it was "pleased with the resolution of this matter" and claimed the decision "strengthened the rule of law globally," and Salazar Méndez's office celebrated the dramatically lower figure, and the Union of Peoples Affected by Chevron-Texaco (UDAPT)—the group that began the case against oil company in 1993—pushed back against the government's framing of the reduction "as if it was a success and an economic achievement."
"The reality is it is a defeat for justice," UDAPT argued in a Tuesday statement. "For 32 years, UDAPT has documented pollution, environmental crime, and lives broken by Chevron, proving what should be obvious: Communities have not recovered, health has not been restored, clean water has not returned, and the territories that sustain life remain contaminated. A debt is not owed to Chevron. A debt is owed to the Amazonian families still waiting for truth, justice, and full reparation."
Amazon Watch deputy director Paul Paz y Miño similarly said Tuesday that "this illegitimate arbitration process is nothing more than Chevron abusing the law to escape accountability for one of the worst oil disasters in history."
"Ecuador's courts ruled correctly and based largely on Chevron's own evidence, that Chevron deliberately poisoned Indigenous and rural communities, leaving behind a mass cancer zone in the Amazon," the campaigner continued. "Adding insult to injury, the idea that Ecuador's people should now pay a US oil company that admitted to deliberate pollution is the epitome of environmental racism."
Ecuadorian President Daniel Noboa "must not honor this ISDS award, and the international community must stand behind the victims of Chevron's crimes and demand that the company clean up Ecuador once and for all," Paz y Miño added. "Amazon Watch stands with the affected Indigenous peoples and communities of the Ecuadorian Amazon. We urge President Noboa to reject this illegitimate award, disclose any negotiations with Chevron, and enforce Ecuadorian law by ensuring Chevron pays its debt to those it poisoned."
Donziger—who was detained in the United States for nearly 1,000 days after Chevron went after him in the American legal system for representing Big Oil's victims in Ecuador—was also sharply critical, saying Tuesday that "the decision by a so-called private corporate arbitration panel that claims to absolve Chevron of its massive pollution liability in Ecuador has no legitimacy and does not affect the historic $9.5 billion damages judgment won by Amazonian communities."
"That judgment still stands as the definitive public court ruling in the case," he said. "The private arbitral panel has no authority over the six public appellate courts, including the Supreme Courts of Ecuador and Canada, that issued unanimous decisions against Chevron and confirmed the extensive evidence that the company devastated local communities by deliberately dumping billions of gallons of cancer-causing oil waste into rivers and streams used by thousands of people for drinking, bathing, and fishing."
"I also strongly condemn President Daniel Noboa for his plans to betray his own people by agreeing to send $220 million from the public treasury to Chevron, a company that owes Ecuador billions under multiple court orders for poisoning vulnerable Indigenous peoples with toxic oil waste," Donziger added. "Noboa would effectively grant Chevron a taxpayer-funded bailout financed by the same citizens who remain victims of the company's pollution. This would be an outrageous dereliction of duty and a violation of his oath of office, warranting removal."
Keep ReadingShow Less
Most Popular