By Peter Galuszka

There’s a predictable drumbeat in the Old Dominion that is trying to blame Big Coal’s economic weakness on federal regulators.

A weekend ago, a group called the Federation for American Coal, Energy and Security, a “grass roots” group with ties to the coal industry, staged a rally in Abingdon attended by about 2,000 to protest what were described as onerous new regulations by the U.S. Environmental Protection Agency.

Attending was Republican George Allen, a former governor and U.S. Senator who is running to win back his Washington seat and has worked for several years as an Inside-the Beltway energy lobbyist. He told the crowd: “If we unleash our American energy resources from the coalfields of Appalachia to the Rockies to the coast, we’d have hundreds of jobs … an industrial renaissance.” Mark Warner, a Democrat who is a U.S. Senator, did not attend the rally.

The campaign is spilling over into the opinion pages of the state’s right-wing press. The Richmond Times Dispatch ran a piece Sunday by a conservative lobbyist claiming that new EPA rules (which he doesn’t bother describing) will shut down coal generation and hurt Virginia, described as a “top coal-producing state, with 32,000 jobs either directly or indirectly dependent upon coal.”

A few little problems with the facts here: EPA is proposing new, tougher rules to limit carbon dioxide emissions – a major ingredient in global warming —  at NEW coal-fired electricity plants. It is toughing up regs on toxic emissions from older plants involving such deadly chemicals as mercury. The regulations are needed and long overdue.

The coal industry and its advocates have yet to explain in detail how these rules are shutting down coal-fired generation which was responsible for 50 percent of the U.S. power production and now has fallen to about 40 percent. The decline in the energy production mix is due directly to dramatically lower prices for natural gas, a flood of which has been unleashed by drilling methods known as fracking and by new production in the U.S. Southwest.

Some of those coal-fired plants supposedly being affected are 40 or 50 years old, have been polluters for years and are too costly for electric utilities to upgrade given the alternative of switching to cheaper natural gas. On the list are Dominion’s Chesapeake plant and one in Yorktown. The former was rated as a top 10 polluter in Virginia in 2009 and was built in 1953. The latter was built in 1957. What’s more, Dominion announced they would close both plants within the next four years last September, which is long before the EPA finally came around with new and watered-down regulations in March. Yet, the Big Coal propaganda campaign lists the facilities as being victims of the new federal regulations.

Is Virginia a top coal-producing state? Not exactly. Production peaked in 1990 and it has been downhill ever since. Most recent production figures show the state produced 21 million tons of coal which is about 2 percent of the U.S. total or about half what it was at its peak. The reason is that the seams are getting too small and too expensive to mine. It has nothing to do with environmental rules at power stations. Virginia is only No. 12 on the list of coal states and its coal production is tiny compared to neighboring West Virginia and Kentucky. Compared to Wyoming’s it is infinitesimal.

The propagandists may be ignorant of coal’s history. In the 1970s and 1980s, Virginia’s dying coal industry got a boost from — federal regulations. New air pollution laws required that low sulfur coal be burned. Virginia had lots of it and the industry got a shot in the arm — until utilities improved their technology to burn dirtier coal.

No matter. Much of the coal from Virginia doesn’t even go to electric utilities. According to Virginia Tech, from 30 to 50 percent of Virginia coal is used for metallurgical purposes to make steel. Most of it is exported to Europe and Asia. Global market demands, especially in fast-growing India and China, drive the met coal market. No matter what pollution rules the EPA proposes, they won’t have a thing to do with the global market for met coal. That is because the EPA does not regulate steel mills in South Korea, Poland or China.

There could be a reason why Big Coal wants to keep the focused on the idea that coal’s exclusive purpose is to keep our lights on. On April 5, 2010, an explosion snuffed out the lives of 29 miners at the Upper Big Branch mine in Montcoal, W.Va. It was owned by Richmond-based Massey Energy, a firm so notorious for safety violations that it was forced to be taken over by Bristol-based Alpha Natural Resources last June. Both Massey and Alpha have acquired massive reserves of metallurgical coal in Virginia and surrounding coalfields in recent years.

Every ounce of coal mined at Upper Big Branch facility was of the metallurgical variety. The coal was bound for export to foreign steel mills. Once again, the mine’s coal had nothing whatsoever to do with electricity generation. While the industry fights the EPA, the reality is that it is battling behind the scenes to stop Congress from passing deep mine safety laws that might have prevented Upper Big Branch.

Note: The author’s book, “Thunder on the Mountain, Death at Massey and the Dirty Secrets Behind  Big Coal,” will be published by St. Martins Press, New York, on Sept. 18, 2012.


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Comments

  1. Peter, you are certainly correct that Virginia coal has thin seams, which makes it expensive and uncompetitive to mine, and that its production has been declining, and you are also correct that much of it is metallurgical coal not affected by EPA boiler regulations. But 21 million tons a year is not 2% of what the state used to produce, a figure that would imply that Virginia once produced a billion tons a year… not likely. As my feeble memory serves me, I believe that Virginia production peaked in the 40-50 million tons-a-year range.

  2. larryg Avatar

    the most important thing you can say about the coal industry and the oil industry is that they are winning the hearts and minds of the average person with their “message” (which is more propaganda than “message”.

    What the Koch Brothers and their allies have discovered is that the same dumb consumer who “believes” a Tide or any other clever but deceptive commercial is that the same guy can be “sold” a lie about something else.

    For instance, there are dozens/hundreds of EXISTING pipelines on EXISTING rights-of-way (that can easily accommodate additional pipes) …but Keystone can ONLY be built on a NEW right of way and no matter that Obama and the nasty BLM/DOI/EPA (name your favorite govt villain)… have APPROVED dozens of other pipelines INCLUDING ones through Federal Lands… what is the CURRENT NARRATIVE about Keystone?

    So yes.. the industry has discovered the secret on how to “message” the average consumer/voter and it’s not a pretty sight and yes.. they are beating the stuffing out of any real discussions (on a variety of issues, INCLUDING coal) on the merits.

    Anyone who thinks money is not at the root needs a root canal…

    and the HELL of it is .. it’s YOUR MONEY they are using! The coal companies jihad against the EPA is financed with YOUR MONEY that you pay for electricity.

    The right thinks that the average American is a rube and unfortunately they’ve accurately calibrated.

  3. Peter Galuszka Avatar
    Peter Galuszka

    Jim
    You are right. My mistake. Virginia is 2 percent of the national production and is about half of what it was at the 1990 peak. I fixed it. Thanks,
    PG

  4. DJRippert Avatar
    DJRippert

    “If we unleash our American energy resources from the coalfields of Appalachia to the Rockies to the coast, we’d have hundreds of jobs … an industrial renaissance.”

    Did Senator Mecaca really say that? Hundreds of jobs would be an industrial renaissance?

  5. DJRippert Avatar
    DJRippert

    Big Tobacco, Big Coal and Big Government. Yeah, the Imperial Clown Show in Richmond really has the state well positioned for the future.

  6. DJRippert Avatar
    DJRippert

    Peter:

    Our elected officials are actively trying to reverse the progress made in cleaning up the Chesapeake Bay.

    http://www.cbf.org/page.aspx?pid=3252

    This guy Goodlatte makes Eric Cantor seem like Albert Einstein.

  7. larryg Avatar

    re: Goodlatte … you mean our “other” Virgil Goode! 🙂

    The problem with the Bay cleanup is that the way we have gone about it, actually empowers folks like Goodlatte because the approach is to continue to rely on a inaccurate model and not use actual water sampling to determine allocations and compliance AND to validate the model.

    We’re trying to use a model whose “resolution” is on a macro scale (hundreds of thousands of acres of land use) to set standards for a 100 acre farm 20 miles upstream from a town based on what the model says without any actual verification at the farmers property – upstream and downstream and we are telling the farmer that (pick a number) $$$ are needed to perform “best practices” rehabilitation with absolutely no assurance that it will perform and absolutely no intent to actually test to see that it did perform. They tell you to do the work and they check you off as “done” even if the amount of nitrogen and phosphorous changes little; they actually do not want to know.

    Towns are receiving similar “instructions” to buy offsets from the farmer so that the town can “manage” it’s section of the river – again without any real measurements to ascertain actual performance.

    It’s the wrong time and place for a govt top/down approach based on a theoretical model that has not been adequately validated and refusing to integrate actual water quality measurements as part and parcel of the approach to set and verify performance standards.

    The entire effort is doomed because the nexus between river pollution and where it comes from and how to clean it up is more like a Ouija board game than a systematic on-site approach and it’s a perfect opportunity for folks like Goodlatte and industry opponents to demagogue it.

    The enviros have screwed this thing up and done a disservice by trying to do it in such a flawed way that they have basically invited the opposition to form, organize and mount significant political and legal challenges – as opposed to working with them to deal with the model concerns.

  8. DJRippert Avatar
    DJRippert

    Here is Maryland’s Water Quality Monitoring map.

    What are you talking about, LarryG?

    http://mddnr.chesapeakebay.net/eyesonthebay/index.cfm

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