Coal industry taking lumpsJun 8 - McClatchy-Tribune Regional News - Laura Arenschield The Columbus Dispatch, Ohio
Proposed federal rules that would cut carbon pollution by 30 percent nationwide drew complaints last week from coal and power companies, whose officials say that more government oversight is another dagger in the heart of an industry bound by regulations for decades. But both industries have survived regulations before, and the new limits won't strike a fatal blow, policy experts say. "They're going to adapt," said Scott Miller, director of Environmental and Energy Programs at Ohio University's Voinovich School of Leadership and Public Affairs. "They're going to invest in clean-coal technology going forward, and they're going to find new (overseas) markets for their coal." Ohio, where about 66 percent of electricity comes from coal-fired power plants, burned more coal than all but five other states last year, according to the federal Energy Information Administration. (Coal was responsible for 85 percent of the power produced in the state in 2008.) The energy grid in Ohio, which routinely leads the nation in power-plant emissions, was built to support coal. Coal was first mined here in 1800, three years before Ohio became a state. And since then, it has powered Ohio's industries and households, and provided the paychecks that fed people across Appalachia. But coal-fired power-plant emissions can sicken people; experts say they also cause climate change. Regulations have taken a toll on the industry. Since 1970, when the first federal regulations were passed to help improve the air, coal production across Ohio has steadily declined, dropping by nearly 59 percent by 2003, according to the Ohio Department of Natural Resources. Strictest rules yet The most recent proposal, rolled out last week by the U.S. Environmental Protection Agency, is among the most-sweeping to date. It would cut greenhouse-gas emissions, such as carbon dioxide, by 30 percent from 2005 levels. States would have until 2030 to make the cuts. From 1990 to 2012, power plants emitted 38 percent of the carbon dioxide that went into the atmosphere in the United States. (Cars, trucks and other fossil-fuel devices combined for a close second at 32 percent.) Ohio EPA officials say they aren't sure how the state will decide to cut emissions from power plants. State lawmakers and environmental officials have an array of options. They could lean more on coal-fired plants to scrub the coal or mandate that more of Ohio's energy comes from alternative sources, such as wind and solar power. Or they could get involved in cap-and-trade programs to exchange credits for carbon emissions. "The states are being given the flexibility and being given the lead time, and I think they've been given a bit of a gift," Miller said. The newest proposal is among a string of federal regulations designed to protect the air we breathe and reduce the effects of greenhouse gases on the climate. Earlier regulations required power companies to add scrubbers and other upgrades to coal-fired plants to reduce pollution. In Ohio, lawmakers passed legislation in 2008 that requires more of the state's energy to come from renewable sources, such as solar and wind. However, Gov. John Kasich said this year that he plans to sign new legislation to temporarily suspend those regulations. Each time the federal government creates new air standards, power companies say they will lead to plant closings, job losses and cost increases. Costly for industry Coal plants have indeed closed over the years, and less of Ohio's electricity comes from coal now than in 1990, according to the Energy Information Administration. But when adjusted for inflation, electricity in Ohio was actually cheaper in 2012, the most-recent year for which numbers are available, than in 1990. No one is building coal-fired power plants now, and retrofitting power plants to comply with regulations can be expensive, the industry says. American Electric Power and other companies have shuttered smaller power plants over the years, and AEP has plans to close several others because of standards governing how much mercury and other toxic chemicals the plants can pump into the air, said Melissa McHenry, an AEP spokeswoman. "That and natural-gas prices are low," she said, noting another energy source. "You can't make an economic case for installing additional equipment on (the power plants). It's too costly." Christian R. Palich, spokesman for the Ohio Coal Association, agreed. "The EPA's policies have resulted in the elimination of low-cost and reliable sources of electricity while passing the cost of their radical policies on to hard-working middle-income families both in Ohio and across the nation," he wrote in an email. "Attempting to burnish their climate-change credentials internationally, President (Barack) Obama and his EPA have been willing to raise electric prices, threaten grid reliability and send high-wage jobs overseas." He said clean-air policies over the years have led to the announced closing or conversion of 41 coal-fired power plants in Ohio that generated more than 7,000 megawatts of power. Environmental advocacy groups don't agree. The proposed rules create opportunities to increase the state's investment in more-efficient or renewable energy, said Cheryl Roberto, associate vice president of the Environmental Defense Fund's Clean Energy Program. "Why would we want to keep a dirty, old, out-of-date plant operating?" Miller said his research shows that coal is likely to continue being a major business and an energy source in Ohio. "We need to use coal in the United States," he said. "But we've got to find a way to use it and burn it more cleanly." larenschield@dispatch.com @larenschield http://www.energycentral.com/functional/news/news_detail.cfm?did=32728738& |