Coal plants are the nation’s largest source of the greenhouse gases that scientists say are the chief cause of global warming.
In his first term Mr. Obama tried to push a cap-and-trade bill through Congress, but it died in the Senate in 2010. Republicans, Tea Party groups and the coal industry attacked Democrats who supported it, criticizing the legislation as a “cap and tax” that would raise energy prices. Cap and trade is now seen as political poison in Washington. But Republicans said that the new rule has created a back door for Mr. Obama to force through a politically inflammatory policy by reviving it in the states. “This E.P.A. regulation will breathe life into state-level cap-and-trade programs,” said Peter Shattuck, director of market initiatives at ENE, a Boston-based climate policy advocacy and research organization.
Many states are already researching how to join or replicate the nation’s two existing state-level cap-and-trade plans, both of which bear the signatures of prominent Republicans: Mitt Romney, the 2012 presidential nominee and former Massachusetts governor, and Arnold Schwarzenegger, the former California governor.