Archive for the ‘Coal Economics’ Category

Former coal company owner donates $1 million to Harlan County Central

November 24, 2010

By Dori Hjalmarson

A former Virginia coal company owner has donated $1 million toward Harlan County High School’s new football stadium and the first track and field facility in the county.

The donation toward the $3.2 million project speeds up planned construction of sports fields at the newly consolidated high school.

Richard Gilliam, who earlier this year sold his Cumberland Resources company, parent of Harlan County’s Black Mountain Resources, to Massey Energy, donated the money from his private charitable foundation.

“Coal is a big contributor to the economy in the area. The sale of the company was not just a reflection of his successes; it was because of the contributions of the work force of Harlan County,” said Ross Kegan, vice president of Black Mountain Resources.

The donation to Harlan County School District is an effort to thank employees.

Gilliam did not want to comment for this story, Kegan said. After Gilliam sold the company, he gave about $80 million in profits back to Cumberland Resources employees in the form of retirement plan contributions and cash bonuses, Kegan said. The company had 1,200 employees, about 650 in Kentucky, when it was sold, he said.

“The Harlan County High School project is one that touches a large number of families,” he said. “A lot of employees’ children go there. A lot of the graduates will become future employees.”

To read the entire article click here:  http://www.kentucky.com/2010/11/20/1532419/former-coal-company-owner-donates.html

Nancy Pelosi chosen to lead House Democrats as minority leader

November 17, 2010

 

By CHARLES BABINGTON

The Associated Press
Wednesday, November 17, 2010; 3:25 PM

WASHINGTON — House Democrats elected Nancy Pelosi to remain as their leader Wednesday despite massive party losses in this month’s congressional elections that prompted some lawmakers to call for new leadership. Pelosi, the nation’s first female House speaker, will become minority leader when Republicans assume the majority in the new Congress in January.

She defeated moderate Democratic Rep. Heath Shuler of North Carolina, 150-43, in secret balloting in a lengthy closed-door gathering of House Democrats in the Capitol.

Pelosi, 70, overcame a rebellion from party centrists, and even some fellow liberals, who argued that the party needs to offer a new face of leadership after losing at least 60 House seats on Nov. 2. She remains popular among the liberals who dominate the party’s House caucus. But Shuler’s level of support – plus an earlier 129-68 vote against postponing the election that Pelosi wanted to wrap up quickly – underscored the degree of discontent in a party that Pelosi had largely bended to her will in the past four years.

Republicans voted to keep John Boehner of Ohio as their top House leader. Boehner, who celebrated his 61st birthday Wednesday, had no opposition, and will become speaker in the new Congress. Rep. Eric Cantor, R-Va., will become majority leader.

Many House Democrats defended Pelosi, who said the bad economy and high unemployment were the reasons for her party’s election losses.

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/17/AR2010111704150.html

Manchin: Reid promises cap-and-trade is dead

November 17, 2010

By Darren Goode and Ben Geman

Manchin: Reid promises cap-and-trade is dead

Meanwhile, Rockefeller’s newly anointed fellow West Virginia Democratic Sen. Joe Manchin Tuesday said he received assurances from Reid personally that cap-and-trade is dead.
 
“He made a total commitment to me that cap and trade is dead when we go through the next Congress,” Manchin told reporters in the Capitol.
 
Manchin — who in one of the midterm election’s more famous TV campaign ads shot a hole through a mock version of last year’s House cap-and-trade bill — also said Tuesday that he “completely” supports Rockefeller’s two-year suspension of EPA’s climate regulations.

To read more: http://thehill.com/blogs/e2-wire/677-e2-wire/129601-e2-morning-roundup-barton-and-boehner-chat-up-energy-panel-bid-upton-get-some-help-from-the-right-rockefeller-and-reid-ponder-epa-reg-delay-vote-and-a-lot-more

 

After a Strong Counterattack, Big Coal Makes a Comeback

November 9, 2010

by Jeff Goodell

With an aggressive campaign focused on advertising, lobbying, and political contributions, America’s coal industry has succeeded in beating back a challenge from environmentalists and clean-energy advocates. The dirty truth is that Big Coal is more powerful today than ever.

The coal industry — perhaps the least entrepreneurial, most politically-connected business in America — likes to present itself as a hapless collection of hard-working guys just trying to keep the lights on. In the run-up to last week’s election, the industry skillfully played up the idea that it was under siege by out-of-control federal bureaucrats, including a president unsympathetic to the idea that burning more coal is the surest route to a healthy economy. In the weeks before the election, I saw banners in several West Virginia towns that said “Stop the War on Coal” and, my favorite, “Legalize Coal.” Luke Popovich, a spokesperson for the National Mining Association, went so far as to accuse the Obama administration of carrying out a “regulatory jihad” against coal.

Of course, the idea that the Obama administration is on a mission to kill coal would strike many energy and environmental activists as something like the inverse of the truth. In their view, the administration has been all 

From the point of view of the Earth’s atmosphere, the war on coal has been a spectacular failure.

hat and very little cowboy when it comes to the issues that really matter, like reforming mountaintop removal mining and limiting greenhouse gas pollution.

But the biggest irony is that this so-called “war on coal” has never been much of a fight to begin with. Despite all the talk about a clean-tech revolution, the dirty truth is that Big Coal is more powerful today than ever.

You can see this simply by looking at the numbers. In 1988, NASA climate scientist James Hansen stood before Congress and testified that global warming was not only real, but was already happening. It was a turning point in the scientific and political understanding of the risks of burning coal, and, in a broad sense, it helped spark the beginning of a clean energy revolution. What has happened to our appetite for coal since then? In the U.S., annual consumption has increased by 100 million tons. Globally, the trend is even starker — yearly consumption has increased by about two billion tons, to about 7.2 billion tons. Meanwhile, annual CO2 pollution from coal has increased by more than four billion tons since 1988, to 13 billion tons a year. It’s safe to say that from the point of view of the Earth’s atmosphere, the war on coal has been a spectacular failure.

Another example is in the build-out of new coal plants. In order to break our addiction to coal, we obviously need to stop building new coal plants and begin to retire the old ones. That is not happening — not in the U.S. and not internationally. Globally, there are more than 300 new coal plants in 26 countries that are currently either under construction or on the drawing board. Each of these plants is likely to run for 40 years or so, making the push to cut overall greenhouse gas emissions all the more difficult.

 

An industry ad from the American Coalition for Clean Coal Electricity

And the new coal plants aren’t all in China. According to Bruce Nilles, who heads up the Beyond Coal campaign for the Sierra Club, 22 new coal plants have been constructed or are under construction in the U.S. since 2002, with another 53 proposed. Nilles points out that the Sierra Club, as well as other activists, have stopped construction of 145 new coal plants — “that’s opened up a huge market for clean energy,” Nilles says. True enough, but slowing up the march of new coal plants is not the same thing as stopping it. Just days after last week’s election, newly-elected Kansas governor Sam Brownback announced he would revive two coal plant proposals that had been blocked. As for the much-touted “clean coal” plants that capture and bury CO2 pollution, there is still not a single commercial-scale plant in operation anywhere in the world.

But maybe the clearest measure of Big Coal’s success is the rise of climate skepticism, especially in the U.S. Congress. According to one analysis, half the newly elected House Republicans deny the existence of man-made climate change, and 86 percent of them are opposed to climate change legislation. Although the coal industry is hardly the only one that is pushing the notion that global warming is, as West Virginia coal baron Don Blankenship puts it, “a hoax” and “a Ponzi scheme,” they are pioneers in the campaign to discredit climate science. The Greening Earth Society, which was largely funded by the coal industry, argued that CO2 pollution is a great boon for civilization because it increases plant productivity.

Indeed, the triumph of coal is deeply connected with an anti-science agenda, and always has been. Over the years, the industry has argued that 

The argument that mining and burning coal contributes to energy independence is a false one.

air pollution from coal plants doesn’t cause an increase in heart attacks; that mercury, a potent neurotoxin emitted from coal plants, does not cause neurological damage; that mountaintop removal mining does not hurt the environment; and that burning coal does not heat up the atmosphere. All these arguments fly in the face of science — and, often, in the face of common sense. But it doesn’t matter. Coal is an empire of denial.

The persistence of coal is a subject of much debate among environmentalists and clean energy activists. The simplest answer is that most people don’t know where their electricity comes from and don’t care, as long as their bill doesn’t go up. This ignorance gives coal advocates all kinds of advantages, such as allowing them to get away with the false argument that mining and burning coal contributes to energy independence. (Coal is no substitute for oil — we don’t use coal to power our vehicles, and we don’t use oil to generate electricity.) Another answer is that geology is destiny: The world — the U.S., China, and India especially — has a lot of coal, and so naturally we are going to burn it. Finally, there is a good argument to be made in favor of inertia. Vaclav Smil, an energy expert at the University of Manitoba, Canada, has pointed out that energy systems are not like PCs: Innovation happens over a period of decades, not months.

These answers have merit. But the real reason for the persistence of coal is politics. And I mean that in several ways.

The first and most obvious way that Big Coal gains leverage is simply with money. By any accounting, Big Coal — and by that I mean not just coal mining companies, but also the railroads that haul the coal, as well as the electric utilities and power companies that burn it — exerts a huge influence not only in Washington D.C., but in state and local governments, too. The Southern Company, a large Atlanta-based power company that is one of the largest coal burners in the country and a longtime opponent of global warming legislation, spent about $9 million in federal lobbying fees this year alone — that’s nearly as much as ExxonMobil, a company that is 10 times larger. Peabody Energy, the largest privately-held coal company in the world, spent almost $6 million.

And then there are campaign contributions. As of early October, the mining industry, which is mostly coal, contributed more than $3 million to federal candidates, the great majority of it going to Republicans. The industry backed up its contributions with a major media blitz — the American Coalition for Clean Coal Electricity, an industry front group, spent more than $16 million on ads this year touting the virtues of “clean” coal.

But coal flexes its political muscle in another way, too. Virtually all the big Rust Belt states — Ohio, Pennsylvania, Illinois, not to mention Kentucky and West Virginia — are coal-heavy states, where the mining and burning of coal not only keeps the lights on, but contributes significant (although 

Cleaner ways to generate electricity are on the way, and every coal executive I’ve talked to knows it.

declining) revenues to local economies. These states have a lot of throw-weight in Congress, making it difficult to get enough votes to pass legislation that is seen as tough on coal. To make matters worse, politicians from Big Coal states are constantly compelled to demonstrate their loyalty to the industry, lest their campaign contributions stop and media attacks begin. Witness West Virginia Gov. Joe Manchin, who understands very well the problems coal has wrought on his state, yet who vigorously defended mountaintop removal mining in his Senate campaign and shot a bullet through the cap-and-trade bill in one of his TV ads.

There is also a third way that coal exerts political influence, and that is through the historic connection between coal and progress. Environmentalists do not like to admit it, but we really do owe a large debt of gratitude to the coal industry. Coal was the engine of the Industrial Revolution, and without the power generated from coal, modern life as we know it today would be impossible to imagine. In the past, it really was true that one measure of progress was how much coal you mined and burned.

Of course, that connection is no longer valid today. In fact, the opposite is true: Mining and burning coal is a sign of a world that has not yet made the leap into the 21st century. But a sentimental attachment to coal remains, especially in places like West Virginia (the state flag has a coal miner on it), where coal mining is not just a job, but a way of life. To many people, coal is a symbol of simpler times, before anyone worried about jobs moving to China or the collapse of subprime mortgage loans. The coal industry understands these cultural connections very well and exploits them at every opportunity — the real point of all those wholesome “clean coal” ads that blanketed the airwaves this year is to remind viewers that coal is as American as mom and apple pie. Only a socialist — are you listening, Mr. President? — would be against it.

In the fight against coal, environmentalists and clean energy activists have yet to figure out a way counter the industry’s overwhelming political advantages. They have made great progress, for example, in highlighting the ravages of mountaintop removal mining, but legislation to curb that destructive practice is unlikely to gain momentum anytime soon. And of course the prospects for legislation that will put a price on CO2 pollution, is, for the foreseeable future, nonexistent. In fact, House Republican leaders have made it clear that one of their top priorities in the new Congress is to strip the federal Environmental Protection Agency of its authority to regulate CO2 as a pollutant.

ABOUT THE AUTHOR
Jeff Goodell is an author and contributing editor at Rolling Stone. His latest book, How to Cool the Planet: Geoengineering and the Audacious Quest to Fix Earth’s Climate, was published earlier this year. His work has appeared in The New RepublicThe Washington PostThe New York Times Magazine, and Wired. In previous articles for Yale Environment 360, he has written about electric cars and carbon sequestration.

Dems hold cards on climate policy

November 8, 2010

A handful of swing-state Democrats hold the cards when it comes to blocking the Obama administration’s climate change policies.

At least 56 senators next year are likely to support efforts to block the Environmental Protection Agency’s plans to regulate greenhouse gas emissions, a POLITICO analysis shows. That’s just short of the 60 they’d need to overcome a filibuster, but a slew of moderate Democrats facing re-election in 2012 could put that number within reach.

Read more: http://www.politico.com/news/stories/1110/44809.html#ixzz14hd4tsLK

EPA policy chief steps down

November 5, 2010
//

One of the Obama administration’s most aggressive officials on global warming regulations is stepping down from her post at the Environmental Protection Agency.

Lisa Heinzerling, the head of EPA’s policy office, will return to her position as a Georgetown University law professor at the end of the year, said EPA spokesman Brendan Gilfillan.

Within EPA, Heinzerling is one of the more dogmatic proponents of regulating greenhouse gases to the maximum extent possible under the Clean Air Act.

There are two camps within the agency on climate, said an environmental advocate who spoke on background. The Heinzerling camp, with the mind-set that, “we have the law on our side; let’s go get them.” In the other camp are Administrator Lisa Jackson and EPA air chief Gina McCarthy, who are trying to maintain the support of the White House and Congress.

Heinzerling gained fame in the environmental community for her role in helping to win a landmark 2007 U.S. Supreme Court case that gave EPA the authority to regulate greenhouse gas emissions under the Clean Air Act. At EPA, she’s played a leading role in crafting the agency’s controversial climate policies as Jackson’s senior climate policy attorney and then as the associate administrator of EPA’s Office of Policy.

Read more: http://www.politico.com/news/stories/1110/44708.html#ixzz14Pypjs3K

U.S. Rep. Ben Chandler Gets Endorsement from Sierra Club

October 27, 2010

 

http://www.sierraclub.org/politics/endorsements/

Kentucky Poll: Ben Chandler and Andy Barr locked in tight race

October 25, 2010

Democrat has won easily before, but national issues affecting this race

By John Cheves

U.S. Rep. Ben Chandler, D-Versailles, is barely clinging to his House seat as the Nov. 2 election approaches, a new Kentucky Poll shows.

Forty-eight percent of likely voters surveyed in Central Kentucky’s 6th Congressional District said they would vote for Chandler, compared to 44 percent for Andy Barr, his Republican challenger. Eight percent were undecided.

Chandler’s four-point lead is within the poll’s margin of error of plus or minus 4.5 percentage points.

Chandler also should worry about other numbers in the poll, said J. Brad Coker of Mason-Dixon Polling & Research of Washington, D.C., which conducted a district-wide telephone survey of 500 registered voters Oct. 15 to 19 for the Herald-Leader and WKYT-TV.

Only 46 percent of voters said they approved of Chandler’s job performance as congressman while just 42 percent said they held a favorable opinion of him.

The fact that Chandler fell under 50 percent on all those questions — after four terms in Congress and two decades in Kentucky politics — suggests that many undecided voters would consider a change, he said. These sorts of numbers often precede an incumbent getting the boot, he said.

“The big picture is, this seat is definitely in play,” Coker said. “Chandler may still pull it out. But he’s going to really have to work for it in these final days.”

Nationally, Democrats are expected to suffer at the polls because Americans are unhappy with the leadership of Congress as the economy continues to sputter, said Transylvania University political scientist Don Dugi.

“It’s just unfortunate timing for Chandler,” Dugi said. “Individual members of Congress aren’t fighting their own local battles, really, they’re fighting a national battle where there is a wave of hostility against the incumbents this year.”

“In any other election year, without the protests and the wave effect of the Tea Party people, Andy Barr would not have been a serious candidate and Ben Chandler would have won re-election again quite handily,” Dugi said. “But this is not a typical election year.”

Chandler spokeswoman Jennifer Krimm said the congressman’s internal polling still shows him with “a strong lead.”

“Ben’s record of independence will stand tall on Election Day, and we are confident that the people of Central Kentucky will again choose Ben to stand up for them in Congress,” Krimm said.

Barr campaign manager John Connell said the results are roughly what he expected.

“Andy Barr is in a great position to win on Nov. 2 because voters want someone who will represent Kentucky, not Washington,” Connell said.

Since winning his seat in a 2004 special election, Chandler has been popular enough to routinely trounce opponents. The Republican Party didn’t even field a challenger in 2006.

This year, some Barr supporters who participated in the poll said their philosophy was ABC: “Anybody But Chandler.”

“I like Barr because, first off, Barr isn’t Chandler,” Jerry Hale of Lexington said Friday. “He would not be a supporter of cap-and-trade, like Chandler is, and that’s pretty critical for Kentucky and for the country. He’s also against the whole Obamacare thing and he’ll try to get that taken down.”

Advertising by Barr and national Republicans has highlighted Chandler’s vote for a “cap-and-trade” plan to reduce greenhouse gas emissions from coal and other fossil fuels. The House passed the plan but the Senate removed it from the pending energy bill, effectively killing it for now.

On the health insurance overhaul, Chandler bucked his party’s leaders and voted against the plan as it became law earlier this year.

Other poll participants said they’re sticking with the incumbent.

“Mr. Chandler is a fairly reliable congressman who sometimes votes against the way I’d like him to because he has to protect his seat, and I understand that,” said Roger Anderson of Nicholasville. “Mr. Barr seems like he would be darned dangerous. He seems like he would fit into the Tea Party model, the extreme right-wing of the Republican Party.”

In the poll, Chandler did better in urban Fayette County than in the suburban and rural counties ringing Lexington. Chandler enjoyed an 11-point advantage in Lexington but was even with Barr in the remaining 15 counties of the district.

Chandler won support from 70 percent of Democrats, who dominate the region in voter registration. However, 22 percent of Democrats, or nearly one in four, said they would cross party lines to vote for Barr, who also won 79 percent of Republicans and 41 percent of independents.

Asked their opinion of the candidates, 42 percent said they viewed Chandler favorably, 31 percent said they viewed him unfavorably, 26 percent were neutral and 1 percent didn’t recognize his name. For Barr, it was 31 percent favorable, 31 percent unfavorable, 30 percent neutral and 8 percent who didn’t recognize his name.

The equal unfavorable ratings is interesting given the ceaseless mudslinging on television that has come to define both campaigns in this race, said Dugi of Transylvania University.

As of Friday, Chandler’s commercials accused Barr of having “covered up a criminal conviction” (Barr got caught as a 19-year-old college student trying to use a fake I.D. during spring break). Barr’s commercials accused Chandler of taking a “payoff” for his vote for the stimulus package last year in the form of an $80,000 state job for his wife (Chandler denies having anything to do with the job).

Dugi said politicians aim for the “weak identifiers” — voters without strong ties to any party or candidate — by blaring negative messages they hope will ruin their opponents’ image. In theory, disaffected voters will flee into the arms of the candidate whose attacks were best, Dugi said.

“Of course, if enough weak identifiers get discouraged by all of the attack advertising and say ‘Screw it, I’m staying home on Election Day,’ that backfires on Democrats and helps Republicans because Republican voters tend to show greater turnout,” Dugi said.

Another possible boon for Barr is Rand Paul, the Republican nominee for U.S. Senate and a favorite of the Tea Party movement, Dugi said.

Paul is staying ahead of Democratic Senate nominee Jack Conway in most statewide polls, including a five-point lead in the Kentucky Poll this week. If enough Republicans are enthusiastic about Paul and turn out in droves to vote, it stands to reason that some in the 6th District will reach down and push the button for Barr, too, Dugi said.

KY Senate Candidates’ Answers to Mining Question

October 21, 2010

LOUISVILLE, Ky. –

LOUISVILLE, Ky. (AP) Mountaintop mining is an issue on the minds of some Kentucky voters in the U.S. Senate race between Republican Rand Paul and Democrat Jack Conway.

The Associated Press asked the candidates about their approach to creating jobs and improving the household income of Kentuckians. Here are the questions and the answers they submitted in writing.

____

AP: Do you believe mountaintop removal coal mining should be banned? What do you believe can be done to balance private property owner rights and environmental concerns in regard to mountaintop removal coal mining?

JACK CONWAY:

Kentucky’s abundant reserves of coal help keep electricity rates low, attract businesses to Kentucky and create good-paying jobs and economic growth for Kentuckians. That’s why I oppose cap-and-trade, and I filed a lawsuit against EPA to stop it from doing an end-run around Congress.

As a U.S. senator, I will fight to make sure coal must be an important part of our energy future.

We need to mine coal, and technology is offering us new ways to minimize the environmental damage. We must develop alternative disposal methods for mining overburden so that it is not simply filling valleys and streams and make sure there are safeguards in place for the local water supply, because nearly 100,000 people in eastern Kentucky get water from private wells.

We can and should improve re-contouring the terrain during reclamation, and establish clear guidelines for restoring land to its pre-mining purpose as much as possible.

___

RAND PAUL:

America needs a secure and stable source of energy and Kentucky needs jobs. Our coal mining industry provides both, and is vital to the lives of Kentuckians from one end of the commonwealth to the other.

Because the land in our state varies from one region to the next, the ways to mine coal must vary as well. Some coal can only be reached through surface mining, including surface mining on mountains.

Once mining is finished, the reclaimed land can be more valuable than before, allowing for economic development and job creation that would not otherwise have been possible.

Government should not get in the way of this economic development and job creation so long as the actions do not harm other people’s property or cause safety hazards.

Also, I oppose the cap and trade national energy tax. I oppose all efforts by the EPA to enact greenhouse gas regulations without congressional authority. These Obama policies are the greatest threats to jobs in Kentucky. I will not waver from my position on the national energy tax and EPA greenhouse gas regulation, and have never held any other position on those issues.

EPA says Kentucky resisting talks on mining practices

October 19, 2010

By Tom Loftus

FRANKFORT, Ky. — The Environmental Protection Agency Tuesday defended its decision to block Eastern Kentucky mine permits, saying the action was based on the “best science available” to protect Kentucky waters.

“Despite many efforts by the EPA, state officials have not engaged in a meaningful discussion of sustainable mining practices that will create jobs while protecting the waters that Appalachian communities depend on for drinking, swimming and fishing,” the agency said in a statement released by its Washington office.

The statement was in response to lawsuits filed in federal court in Pikeville by the state and the Kentucky Coal Association. The suits challenge EPA’s decision to block 11 water discharge permits sought for surface mining operations in Eastern Kentucky.

The lawsuits allege that the agency, in issuing guidance to states for such permits earlier this year, established a new and tougher standard for which a public notice and comment period is required. The suits also charge that the EPA usurped state authority.

The EPA’s statement said that it provided the guidance at the request of Kentucky to insure “permits are reviewed using the best science available to protect residents from the significant and irreversible damage this practice (surface mining) can have on communities and their water resources.”

Gov. Steve Beshear, Senate President David Williams and House Speaker Greg Stumbo blasted the EPA in statements Monday, saying that the agency’s action was excessive and needlessly threatened the jobs of thousands of miners.

But the EPA statement said the agency “continues to be willing to work with the industry to reach commonsense agreements allowing them to mine coal while avoiding permanent environmental impacts and protecting water quality.”


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