Things haven't been easy for the coal industry these last few weeks. Clearly on the defensive in the wake of the recent mining tragedy in West Virginia and concerned about the comprehensive climate bill set to be unveiled later this month, industry executives recently gathered in Washington in an attempt to solidify the role of coal amid an increasingly diverse U.S. energy portfolio.
Testifying in front of the House Select Committee on Energy Independence and Global Warming last Wednesday were executives from the nation's top three coal producers and the President of the Ohio Coal Association. Throughout the mornings proceedings they addressed topics including climate change science, environmental concerns, and mining safety.
Chairman Markey (D-Mass.) set the stage for the hearing, asking the panel "whether the coal industry and coal-burning utilities will embrace innovation or stand pat and fight change," alluding to their opposition of the emissions regulations imposed by the Waxman-Markey bill, which was passed by the House last June. He suggested their resistance to emissions standards is akin to the automobile industry's aversion to fuel economy standards that ultimately resulted in hefty government bailouts for two of the three major American automakers.
When asked by Markey whether they agreed with Don Blankenship, the outspoken CEO of Massey energy who claimed "Global warming is a hoax and a Ponzi scheme," members of the panel acknowledge climate change was an issue that needs to be addressed. However, only one coal chief, Preston Chiaro on behalf of Rio Tinto, acknowledged the that man-made emissions are affecting the climate.
Other industry heads were less certain about the human effects on climate change. Among them was Gregory Boyce, President and Chief Executive Officer for Peabody Energy Corporation, who recommended to "leave the scientific discussion to the scientists." His company recently petitioned the U.S Court of Appeals to overturn the Environmental Protection Agency endangerment finding, which paved the way to allow regulation of carbon dioxide emissions under the Clean Air Act.
Boyce emphasized that Peabody will support the "right kind of legislation" that allows for sufficient carbon capture and storage (CCS) development timelines along with federal responsibility for stowing CO2. These remarks were echoed by the other executives, including Mike Carey, President of the Ohio Coal Association. He asserted that "the legislation requires emissions reductions starting in 2012 and further incorporates restrictive performance standards on coal-fired power plants starting in 2020,completely ignoring what developers of CCS technology are saying: that CCS is at least 15-20 years away from true commercial deployment." Despite the provision of up to $60 billion for CCS research and development in the Waxman-Markey bill, it's clear that the coal industry is worried about putting a price on emissions.
And some committee members were not so happy with the coal industry's aversion to emissions standards. After Carey claimed there was a "legislative war on coal," Rep. Jay Inslee (D-Wash.) responded by saying "if it's a war, it's a war on our grandkids" in reference to the health and environmental impacts of coal without carbon sequestration.
Last year there were no new coal plants that broke ground and, as a result, the industry is beginning to feel the growth of other energy producers. In particular, they took aim at natural gas, stating the uncertainty of its reserves while expressing concern that sudden fuel switching may stall necessary CCS development. After Carey suggested the Waxman-Markey bill showed favoritism to the natural gas industry, he was quickly reprimanded by Markey who vehemently replied "you're just wrong."
But coal continues to provide a significant portion of the nation's electricity needs, amounting to approximately 44 percent of the total consumed in 2009. The domination of the industry has unfortunately led to a perceived invincibility that is best summed up by one of Boyce's remarks: "I have often heard coal called a 'bridge to the future.' To this, I say: Coal is the future."
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