New Interest in Coal Sparks Energy Debate in Western States

Sep 27 - The Sacramento Bee

Sep. 27--Proposals for electric plants that feed on coal are dotting the West's deserts and plains, raising new questions about how the region should power its drive into the next half-century.

From Idaho to Nevada to Arizona, communities are being swept into a national resurgence of interest in coal-fired electricity.

It is the biggest upswing since the 1970s for a fuel that is abundant, home grown, inexpensive and linked by critics to a Pandora's box of environmental ills: acid rain, tainted streams, global warming and haze-smeared national parks.

While no new coal plants are envisioned for California, the state is the biggest center of energy consumption in the West, so the political debate resounds loudly here.

California's air conditioners and office parks are the potential future consumers of coal power from as far away as Wyoming. Clean air advocates say the state, which was willing to sue out-of-state power plants to curb global warming, should be equally aggressive in resisting the new drive toward coal.

"California should not have a back-door policy of exporting our pollution to other states," said V. John White, head of the Center for Energy Efficiency and Renewable Technologies in Sacramento.

As an energy buyer, White and others argue, California has the leverage to put the brakes on coal even outside its borders, by crafting rules and regulations that force utilities to look harder at the environmental costs of their electricity sources.

Coal has been a relatively low-profile issue in California, with moments of high visibility, like the late August day when Los Angeles Mayor James Hahn told the city's utility to end its participation in a coal plant expansion in Utah.

Environmentalists are hoping to target other deals that could make or break proposed plants, by taking aim at the long-term contracts that plant developers need to line up their financing.

That means the debate is likely to unfold at the boards that oversee municipal utilities and at the state Public Utilities Commission, where regulators pore over investor-owned utilities' plans for future supplies.

Some California utilities, already whipsawed by the state's energy crisis and the increasing costs of natural gas, don't want to be held back from seeking any low-cost sources of electricity.

"Coal should be part of the fuel mix for electricity generation," said Gil Alexander, a spokesman for Southern California Edison.

Pacific Gas and Electric Co. said it is unlikely to buy coal power in the next decade, both for technical reasons and because costs could go up if emission controls are imposed on carbon dioxide, which is emitted when coal is burned. But San Diego Gas and Electric Co. sees the potential for using more coal-fired electricity in the future.

While Edison, the state's second-largest utility, has no plans to build additional coal plants of its own, Alexander said it considers coal "readily available, attractively priced, domestic" and one more option for the fuel diversity that will help safeguard its customers from price spikes.

That's a lot to hang on a lump of compressed vegetation. Formed in swamps and bogs over eons by heat and pressure, coal is far more abundant worldwide than oil or natural gas.

It is plentiful in the United States, where it feeds the power plants that crank out just over half the nation's electricity.

When coal burns uncontrolled, it emits a stink of gases and organic particles that have given it a filthy reputation since the Industrial Revolution. Much of that evaporates when modern pollution controls are applied.

Still, even with controls, this remains:

Coal plants being built today emit sulfur dioxides and nitrogen oxides, precursors of smog and acid rain. The plants produce particulates, the bits of fine ash that can lodge in the lungs, aggravating asthma and other ills. They also produce mercury, which can contaminate fish once it falls into streams and lakes. And, most notably, burning coal gives off serious amounts of carbon dioxide, the chief greenhouse gas believed responsible for global warming.

In almost every category, natural gas emissions are lower, sometimes significantly, although that fuel, in turn, cannot compete for emission cleanliness with wind, solar or nuclear power.

Environmentalists argue that building coal plants would tie America down to a 50-year investment in a polluting technology that easily could be avoided by turning to energy efficiency and renewable power.

Much of the nation may feel otherwise.

In separate surveys, the U.S. Department of Energy and consultants with Energy Ventures Analysis in Virginia estimate that between 90 and 100 coal-fired power plants are proposed around the United States.

"Coal has witnessed what I would consider a real boom over the last year or so," said Joe Lucas, a vice president of the Florida-based Center for Energy and Economic Development, a coal and railroad industry group. "There's been a recognition that you can't power America's energy future without coal."

The primary reason for coal's revival is economic: Natural gas prices have risen more and stayed higher longer than anyone anticipated, making coal look appealingly inexpensive and stable.

Some also see the hand of the Bush administration, with its perceived friendliness to the energy industry.

John Barth, director of the Western Clean Energy Campaign, said he believes the administration's "cavalier" attitude toward tightening mercury emission rules, its refusal to regulate carbon dioxide and its control of the EPA have emboldened coal developers.

"It's an economic and political and regulatory climate that is very hospitable," said Vickie Patton, a senior attorney in the Rocky Mountain office of Environmental Defense. "We're seeing coal plant proposals just mushroom across the interior West."

Sempra Energy Resources, an unregulated sister company to San Diego's utility, is proposing building one large coal plant near the site of the Burning Man festival in Nevada and another in Idaho.

Wyoming, home to healthy resources of coal, oil and wind, sees energy exportation as the core of its economy and its future growth, said Steve Ellenbecker, energy policy adviser to Gov. Dave Freudenthal.

The state has been approached by developers outlining at least six to eight coal plant proposals, and soon will be discussing with other Western states an estimated $4 billion to $6 billion transmission network to export new coal power and wind power to California, he said.

While some grumble darkly about Nevada becoming an "energy colony" of California, the issue seems more nuanced to Dick Burdette, director of the Nevada State Office of Energy.

It's true that the fast-growing state has only so much airshed to devote to its own power plants, new industries and power for export, he said. But it's too simple to say that Nevada shouldn't deplete that airshed for California's sake.

After all, California's polluting oil refineries turn out the gasoline that is sold in Nevada.

"Your airshed is being depleted so Nevadans can drive," he said "We have regional problems, and we need regional solutions."

California has a long history of seeking regional solutions to its own energy problems, with three major south state utilities owning pieces of coal plants outside the state.

California today gets just slightly more than 20 percent of its electricity from coal-fired plants, almost all outside the state and just a handful of small plants within its borders. And despite a popular misconception, California has no regulations that prohibit coal plants here, as long as they meet local air quality rules.

Still, energy experts anticipate that whatever coal-power facilities emerge to feed the state's energy demands will be built outside its borders. Energy Ventures Analysis ranks California third in its list of regions least welcoming to coal, just behind New England and New York.

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