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Apres Le Deluge

That’s fancy French for “after the flood.” It’s a phrase historians apply to post-revolutionary periods but suitable for describing Washington after the election that just cast out many congressional Democrats and with them much of the administration’s energy and environmental agenda. The result administered by angry, frustrated voters certainly resembled a flood if not the tsunami that some hoped might also swamp the Senate along with the House.

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The Regulatory Toll on Coal

By HAL QUINN

For all of the political uncertainties we face, there are some comfortable certainties for coal. We know for certain that when the economy recovers, so too will the demand for energy and the coal we produce.

The question is not whether the nation will want the coal we produce. The question is whether policymakers will allow us to produce it, or will a punitive regulatory climate stifle innovation, productivity and competitiveness in our industry?

From regulation of greenhouse gases to mine safety rules, coal mining will be the subject, if not the target, of new regulations. Now that prospects for divided government and legislative gridlock seem even stronger, it isn’t Congress but the regulators who are likely to pose the greatest challenge for coal mining and the communities it supports.

Consider the major initiatives now pending in Washington’s regulatory agencies.

Congress failed to pass cap-and-trade, so the spotlight now falls on the EPA, which is proceeding under the Clean Air Act to regulate greenhouse gases from power plants and other businesses. Rep. John Dingell (D-MI) has called that prospect a “glorious mess.” The NMA with other business groups has challenged these actions in federal court.

Climate change regulations may get all of the headlines, but new revised standards for other emissions will pose a more immediate threat to many coal-based power plants at risk of becoming uneconomic under these standards.

Meanwhile, both houses of Congress are preparing to once again change the federal mine safety laws. The result is likely to be more powers granted to MSHA—and more challenges for operators.

The NMA believes our goal of zero injuries is more likely to be reached by building a culture of safety innovation—for better technology and training—than a culture of regulation with its emphasis on punitive measures.

Additionally, the EPA’s new policy for reviewing mining permits poses a serious threat to coal mining in six Appalachian states. In effect, a moratorium on new mining has resulted from arbitrary guidelines the EPA has imposed on scores of pending permits. The EPA Administrator frankly acknowledges “no, or very few” permits will be approved under these guidelines.

The NMA believes there is no scientific or statutory basis for the new standards the EPA is now foisting on states, nor is the EPA justified in usurping authorities Congress has reserved for the states in reviewing permits. For these reasons, NMA has asked a federal court to set aside the EPA’s new process and standards.

Finally, the EPA expects to finalize rules that may regulate large portions of coal ash as a hazardous substance. This poses a potential threat to the multi-billion-dollar beneficial reuse industry. Last year, the U.S. generated 131 million tons of coal ash and reused 43% of it.

What is the cumulative impact of these varied rules on coal communities? The regulators are not keeping count.

They’re only responsible for analyzing the economic impact of the individual rules under their jurisdiction—not their cumulative impact.

So even when their cost analysis is done conscientiously, it’s of limited use. What the real world wants to know is: what is the economic burden on sectors of the economy that are subject to multiple rulemakings?

Looked at separately, as each agency does, the regulatory cost of each rule may seem reasonable—some may actually be reasonable. But the coal community doesn’t bear these costs separately—it bears them cumulatively. This explains why costs that may appear reasonable to OSM, EPA, MSHA and the Army Corps of Engineers are nevertheless intolerable to a company subjected to them all.

In coming months, the NMA will remind our elected representatives of the real costs of regulations—so they can remind the un-elected of the consequences of ignoring them.

Quinn is the president and CEO of the NMA.

Air Raid

If the pundits and prognosticators are on the mark, the mid-term elections will dampen if not douse completely any enthusiasm in the 112th Congress for new legislative attacks on fossil energy industries such as ours. Remember “it’s the economy, stupid”?  Well, it still is. That’s largely why Republicans are expected to strengthen their grip on Congress, and together with coal-state Democrats, end legislative threats to coal mining, coal ash and coal-based generation for now.

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Don’t Like this Program? Change the Dial

Brothers and sisters of the coal community, you may be pleased with your elected representative in Congress for his coal friendly voting record and want to show your appreciation. Or you may be frustrated by clueless politicians who don’t appreciate what you and King Coal do for this country. Maybe you’re annoyed at policies coming out of Washington that seem to favor “green” jobs over existing ones, renewable energy over affordable energy.

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The Strength of Team USA

In soccer it’s called an “own goal”—a player mistakenly kicks the ball into his own net, scoring one for the opposition.  There were a couple of own goals scored this month during the World Cup in South Africa, but none was bigger than the one committed here in the United States.

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