State Continues Work on Energy Roadmap

State Continues Work on Energy Roadmap

Jun 21 - State Journal, The

West Virginia is poised to be a key player in a national energy strategy being considered by Congress that could focus heavily on coal.

"We'd like to think the entire Appalachia coal region will benefit," said Chris Hamilton, senior vice president of the West Virginia Coal Association. "West Virginia is among the states that will benefit from a national energy strategy."

The Energy Policy Act of 2002 was stalled in Congress despite Senate approval, but portions of the bill were folded into a transportation package. Some considered the idea a lost cause, but Hamilton said components of the energy policy still "are very much alive."

"I think we'll be hearing and seeing a lot more about that topic over the summer as energy demands become increasingly hard to meet," he said.

Skyrocketing oil prices and fears of another massive electricity blackout naturally bring attention to a push for improved and increased domestic energy production. But while a national energy policy continues its slow, controversial evolution, West Virginia has taken matters into its own hands.

West Virginia Plan

After coming into office, Gov. Bob Wise decided West Virginia needed its own energy policy, and in 2001 he created a task force to develop a 20-year roadmap for using the Mountain State's natural resources.

The task force is focusing on analyzing the energy industry in West Virginia to identify upcoming opportunities, explained Pat Esposito, chairman of the Governor's Energy Task Force and CEO of Augusta Systems Inc. in Morgantown.

"This is a start for the state, a vision, something that is still needed at the national level," Esposito said.

The task force is examining issues related to traditional fossil fuel industry, efficient use of energy resources, environmental impact, job creation, public-private-university partnerships and economic development.

"We must continue to use coal and natural gas responsibly. We also want a balanced portfolio of energy sources ... while emphasizing efficiency and conservation as well," he said.

King Coal

West Virginia's abundant, high-quality coal reserves - a 200- to 250year supply at existing consumption levels - makes the mineral a centerpiece for energy policy at the state and federal level, Esposito and Hamilton said.

"There is an increased reliance on coal that comes from this region, national and internationally, which effectively places awareness and pressure on-all process affecting the industry," Hamilton said.

And coal is "a very economical way to produce electricity," Esposito added.

"Ninety-nine percent of the electricity in West Virginia is coming from coalfired power plants, and 70 percent of that is shipped out of state," he said.

Everything from the environmental effects of coal mining to permitting are under the microscope, he said, but technological advances already are showing improvements and promise even more modernization in the future. Streamlining the bureaucratic side of the industry will help.

Beyond just mining coal, Esposito said the task force is looking to identify opportunities in coalbed methane recovery and using coal as a source for hydrogen power, an energy scheme that may be a few decades away but should be considered now, he said.

"None of this is going to happen overnight, but by starting now we will be positioning ourselves well for the future," Esposito said.

Ready for National Plan

Hamilton said West Virginia's energy policy will make it easier for the state to play a large role in a national energy strategy, whenever it comes to fruition.

"Having a state energy plan will help us accommodate the implementation of a federal strategy with an eye toward those issues over which we truly have control and jurisdiction," he said. "Right now, we're asking what we should be doing at the state level to be prepared, what issues need to be addressed. Work force, permitting, transportation and infrastructure, market security - all of that and more needs serious attention."

Domestic energy production only will increase, Hamilton said, and if West Virginia has the needed components in place the state will be ready to meet the demand.

Another side of energy policy is research and development, Esposito said. This year the Legislature approved a research and development tax credit and grant program, two measures that at last puts West Virginia on the same level as other states.

"We have been at a disadvantage over the years compared to other states because we haven't had these incentives," Esposito said. "Illinois, for example, has a $100-million R&D fund in place.... This kind of thing is crucial to enable to the state to find new and better ways to harvest fossil fuels."

For the next six months, the task force will focus on preparing and training individuals to be ready for coal work force development and homeland security, Esposito said. As West Virginia's energy roadmap, adjusts to ever-changing market conditions and the nation shifts to a heavier domestic energy supply, the state will be ready to leverage its natural resources.

For far more extensive news on the energy/power visit: http://www.energycentral.com .