House Approves Cap-and-Trade Bill, Senate Action Underway

The House of Representatives on June 26 narrowly approved sweeping legislation designed to reduce emissions of greenhouse gases through imposition of a new economy wide cap-and-trade program. The vote cleared the way for action to commence in the Senate, with a series of committee hearings taking place this month.

The “American Clean Energy and Security Act” (H.R. 2454), introduced by Reps. Henry Waxman (D-Calif.) and Ed Markey (D-Mass.), cleared the House on a vote of 219-212, garnering just four more votes than the minimum needed for passage. A total of 44 Democrats bucked Speaker Nancy Pelosi (D-Calif.) and voted against the legislation, while eight Republicans crossed the floor and supported the bill.

The bill’s cap-and-trade program requires U.S. carbon dioxide emissions to ultimately be cut 83 percent below 2005 levels by 2050. In reaching that goal, the bill requires emissions to drop 17 percent by 2020 and 42 percent by 2030.

“The unexpectedly close House vote reflects the widespread concern that the climate bill’s impacts on employment, the economy and energy security will be severe,” said National Mining Association President and CEO Hal Quinn.

Following the razor-thin vote in the House, the U.S. Senate has already begun work on crafting its version of a climate change bill. Various Senate committees will hold numerous hearings over the course of July on a range of climate issues.

West Virginia Sens. Robert Byrd (D) and John Rockefeller have already weighed into the debate, emphasizing the need for America to continue to rely on affordable coal-based electricity.

“I continue to believe that clean coal can be a ‘green’ energy,” said Byrd. “Those of us who understand coal’s great potential in our quest for energy independence must continue to work diligently in shaping a climate bill that will ensure access to affordable energy for West Virginians.”

“Technology can make coal even cleaner, but our nation cannot survive without energy from coal,” Rockefeller said. “People in the rest of the country need to know how dependent on West Virginia coal they are.”

Senate Majority Leader Harry Reid (D-Nev.) has set a Sept. 28 deadline for committees to finish work on a climate bill. Reid also said this week that he believes a floor vote on a bill could be held sometime before the next round of United Nations climate negotiations, scheduled for December in Copenhagen, Denmark.

Senate Urged to Support U.S. Security in Domestic Minerals

Members of the Senate Energy and Natural Resources Committee were urged this month to support reasonable efforts to amend the Mining Law in order to keep mining jobs in the U.S. and reduce our reliance on foreign sources of minerals while providing a fair return to the government.

“Any change to the current mining law must focus on promoting and keeping mining jobs in the U.S. and diminishing the nation’s reliance on foreign minerals while effectively protecting the environment and bringing fair return to the American public,” Hecla Mining President and CEO Phillips Baker, Jr., testified at a July 14 Senate Energy and Natural Resources Committee hearing.

The hearing was the first held on “The Hardrock Mining and Reclamation Act of 2009” (S. 796), introduced by committee Chairman Jeff Bingaman (D-N.M.) and “The Abandoned Mine Reclamation Act of 2009” (S.140), authored by Sen. Dianne Feinstein (D-Calif.).

“As we look at a world of increasing competition for minerals and metals needed to sustain economic growth and high-wage mining jobs, now is the time for thoughtful and reasonable amendments that will provide that fair return while preserving critically important land tenure rights,” said Baker.

“At a time when unemployment is high and job creation is critical, mining can help drive a strong recovery by keeping jobs at home and providing more of the metals and minerals that are vital to our modern economy,” said Baker.

Interior Secretary Ken Salazar testified that the Obama Administration supports an approach “to modernize this law and ensure that development occurs in a manner consistent with the needs of mining and the protection of the public, our public lands, and water resources.”

Salazar emphasized the tremendous economic benefits of mining, noting that domestic gold mining creates more than 66,000 jobs and nearly $2 billion in earnings annually. “In my view, our own security depends on maintaining a viable domestic mining industry, said Salazar. “

Ranking Committee Member Lisa Murkowski (R-Alaska) said any reform legislation must strike “the right balance between protecting the environment, obtaining a fair return for taxpayers, creating jobs and maintaining a secure supply of American minerals.”

“If we get mining reform wrong, we risk trading our reliance on foreign oil for a reliance on foreign minerals,” warned Murkowski.

Testimony from the July 14 hearing is available at: Committee Hearing Testimony.

DOE Takes Next Step in Advancing FutureGen Project

The U.S. Department of Energy on July 15 issued a National Environmental Policy Act (NEPA) Record of Decision (ROD) that will help advance construction of the FutureGen project in Mattoon, Ill. Work on the world’s first near zero-emission coal-fueled power plant could not commence until DOE issued the ROD.

“The carbon capture and sequestration technologies planned for this flagship facility are vitally important to America and the world,” said Energy Secretary Steven Chu. “This step forward demonstrates the administration’s commitment to developing clean energy technologies, creating jobs, and reducing emissions of greenhouse gases.”

“Today’s announcement from the U.S. Department of Energy is a major step forward on our journey to build the world’s cleanest burning coal-fired power plant,” said Illinois Governor Pat Quinn(D). “We will continue to work in strong partnership with the FutureGen Alliance, DOE and our partners to make FutureGen a reality.”

The ROD and a cooperative agreement signed by DOE and the FutureGen Alliance, a private consortium of some of the world’s largest coal producers and electric utilities, allows the alliance to proceed with site-specific activities for the project.

DOE’s total anticipated financial contribution for the project is slightly more than $1 billion, most of which was approved as part of the nearly $790 billion economic stimulus bill President Obama signed into law earlier this year. The FutureGen Alliance’s total anticipated financial contribution is $400 million to $600 million.

When fully operational, the facility will be designed to capture 90 percent of carbon emissions by the third year of operations. The technology should capture and store 1 million tons of carbon dioxide annually when full commercial operation is achieved.

More information is available at: DOE FutureGen RoD.

Synthetic Jet Fuels Near Certification for Commercial Aviation Use

The use of coal-based transportation fuels in U.S. commercial aviation moved one step closer to reality following a recent decision by the Aviation Fuel Subcommittee of ASTM International to approve a specification for coal-based and other alternative fuels made using the Fischer-Tropsch process.

The subcommittee on June 26 approved a jet fuel specification that uses a 50 percent blend of alternative and conventional jet fuels for commercial flights. The decision mirrors an effort by the United States Air Force, which is currently engaged in a major testing program, to certify such fuels for use in its entire fleet of aircraft.

ASTM, an international standards board, will now take up the matter at its full standards board, with a final decision possible sometime this fall.

“The action of the ASTM subcommittee is a landmark step for all consumers of jet fuel,” Air Transport Association of America President and CEO James May said following the subcommittee’s decision.

“It signals the beginning of a new era for widespread production and use of cleaner, alternative fuels that not only will help the airline industry meet its environmental goals but also will provide airlines with more competitive options for purchasing jet fuel while simultaneously enhancing U.S. energy security.”

More information is available at: ATA News Release.

More information on coal-to-liquid fuels is available at: FutureCoalFuels.org.

Arch Coal Achieves New Safety Milestones

Employees at the Black Thunder mine, an Arch Coal Inc. subsidiary mine, on July 9 surpassed 3 million employee-hours without a lost-time injury, setting a new company record for the most consecutive hours worked without a lost-time incident.

“The continued commitment and dedication of the men and women at Black Thunder has proven that working safely is an achievable goal,” said Kevin Hampleman, mine manager at Black Thunder mine, located near Wright, Wyo.

“Each employee’s direct involvement in reducing exposure to risk has resulted in this outstanding accomplishment,” said Tim McCreary, safety manager for the Thunder Basin Coal Company.

“Continuing to achieve these milestones demonstrates the willingness and fortitude of our employees to drive our safety performance to the next level.”

Arch Coal also recently announced that its Skyline mine earned top honors for underground mine safety among an eight-state region for the third consecutive year.

The Rocky Mountain Coal Mining Institute (RMCMI) awarded the employees of Skyline mine with the 2009 Safety Award for underground mines due to an outstanding and ongoing safety performance during calendar years 2006, 2007 and 2008.

“I want to commend the people of Skyline for focusing on best-in-class safety year after year,” said John W. Eaves, Arch’s president and chief operating officer.

The Skyline mine is located near Helper, Utah, and employs more than 175 people.