Proposed coal rules would change Southern Illinois
Sweeping changes to Southern Illinois' economy are in store if a rule designed to cut carbon dioxide emissions from existing coal plants by as much as 30 percent by 2030 is enacted. Area industry experts and elected officials say the rule would all but end coal mining in Southern Illinois, and increase electricity costs to every home and business in the region.
The Environmental Protection Agency says its proposal, requested by President Barack Obama, will slow climate change, spur innovation and create jobs.
Local leaders see it differently.
"We're doing everything we can to keep the coal mines open and every time we turn around the federal government's trying to shut them down," said State Rep. John Bradley (D.-Marion).
Leonard Hopkins, fuel and compliance manager for the Southern Illinois Power Cooperative, said industry analysts project that between 224,000 and 250,000 jobs could be lost nationwide due to the new regulations.
"President Obama's plan will eliminate thousands of Illinois jobs and increase costs for families," said Mark Denzler, vice president and COO, Illinois Manufacturers' Association.
Murray Energy is the owner of American Coal Company that operates New Future No. 5 Mine and New Era Mine, both in Galatia.
Together they employ about 650 miners, each mine producing 3.5 million tons of coal annually, according to Murray Energy's Web site.
Owner Bob Murray has been outspoken describing what he perceives as President Obama's and the EPA's assault on the coal industry and a prepared statement from Murray Energy's Assistant General Counsel and Media Director Gary M. Broadbent terms the latest emission reduction maneuver "illegal."
"The Obama Administration's proposed cap-and-tax mandates are absolutely illegal and will destroy millions of jobs, cripple the American economy, and cause massive blackouts in this Country," the prepared statement reads.
"Recent studies by the U.S. Chamber of Commerce indicate that these regulations will reduce coal utilization from its historic level of 52 percent of our electric generation to 14 percent by 2030. This effectively abolishes the reliable and low-cost electricity that our Nation needs."
Peabody Energy, owner of Cottage Grove Mine and Wildcat Hills Mine in Saline County released a statement saying the poor will be harmed by the new emissions target.
"The real endangerment finding is the harm the Administration's policies will have on Americans - particularly the poor, the working class, the elderly, minorities, small businesses, manufacturing, consumers of health care and nutritious foods, and a fledgling economy that should be growing jobs at far faster rates. Already, multiple reports put the cost to each American household in the thousands of dollars over time," the statement reads.
"To ignore widespread U.S. energy poverty at this key time through these practices is questionable on legal, moral and practical grounds."
Peabody proposes an insistence on low-cost electricity, investing in efficiency improvements at existing plants, deploying advanced supercritical coal plants and research and development into carbons capture, use and storage.
The EPA says existing power plants still account for 38 percent of the United States' carbon dioxide emissions, and much of the pollution stems from aging, coal-fired power plants.
"Climate change, fueled by carbon pollution, supercharges risks to our health, our economy, and our way of life. EPA is delivering on a vital piece of President Obama's Climate Action Plan by proposing a Clean Power Plan that will cut harmful carbon pollution from our largest source--power plants," said EPA Administrator Gina McCarthy.
However, U.S. Rep. John Shimkus (R.-Collinsville) says any moves to reduce carbon emissions in the United States won't have a meaningful impact on the environment unless other nations follow suit.
"This rule will be all pain and no gain for American energy consumers and job seekers," Shimkus said.
"The EPA and President Obama must understand that coal continues to be the single largest source for America's electricity supply. The standards are impractical and unnecessary because the coal industry is already working toward improving emissions while maintaining reliable energy delivery," said U.S. Rep. Bill Enyart (D.-Belleville).
Hopkins agrees with Enyart, and describes the EPA's regulation tightening as "moving the goalposts." Each time the coal industry believes they have complied, Hopkins said, the rules are altered. Since 2005, carbon dioxide emissions have dropped 13 percent at coal-fired electric plants.
The EPA is accepting public comment on the proposed change for the next 120 days. After the agency finalizes its proposal in about a year, states will have a year to design their own implementation plans.
Studies are underway at SIPC's Lake of Egypt plant to determine approximate costs in retrofitting the facility to comply. A later assessment of cost will be forthcoming when plans are finalized, but Hopkins admitted,"we don't have large stores of cash to work with."
Hopkins said consumers' electric bills will go up as proposed regulations are put into effect. He project an increase of 30 percent to 40 percent on home energy bills. He said the cooperatives' rural customers are often the least able to afford a large increase.
Economic impact may also come in the way of a reduced work force at the area power generating plant near Marion, Hopkins said.
"Our local economies, and most importantly, our families simply cannot withstand the loss of good paying jobs in the region," Enyart said. "And in these uncertain economic times, we must ensure that our nation's energy supply is reliable and affordable as well as environmentally friendly. We simply cannot afford a massive spike in energy prices. Southern Illinois' fixed-income families cannot afford an increase in heating and air conditioning bills."
Bradley says new EPA restrictions on coal make hydraulic fracturing - "fracking" -even more vital to this region, as a shift away from coal could increase demand for natural gas.
The Hydraulic Fracturing Regulatory Act was signed into law in June 2013. The Illinois Department of Natural Resources, which is charged with drafting rules for fracking in the state, said it expects to have the regulations ready in November.
Opponents believe that the process is not environmentally safe. Practitioners counter with studies they believe show the safety of fracking. A year ago, the State began hearings on the safety of the practice. Some 36,000 people are on record with their opinions on the subject.
"Fracking's going to happen," Bradley said. "We have the stingiest environmental laws in place in the history of the United States, agreed to by everyone, including the environmental groups. (Gov. Pat) Quinn won't write the rules. We are frustrated. This has allowed the radicals and the people who are against jobs to come into the area and make them seem like they're a lot stronger than they really are."
The Shawnee Hills-Hollers Grassroots Organization of Southern Illinois contends that over 400 earthquakes in Oklahoma since January are attributable to the natural gas-extraction method.
The group warns that Southern Illinoisans are "looking at a downstate toxic wasteland."
Spokesperson Georgia De La Garza, of West Frankfort, added that this group, "continues to embrace creative, renewable solutions."
One of the goals of the continuing Federal process is to force the movement from fossil fuels to renewable fuels. Hopkins points out that the SIPC has already begun diversification. The cooperative already owns a wind farm near Paxton. However, Hopkins added, "As we all know, some days the sun doesn't shine, and the wind doesn't blow."
Bradley said whatever changes are in store, they will happen gradually, and are probably still years away.
"If they turned off all the coal power plants, the lights would go off. That's not going to change anytime in the near future," he said.
Staff writers Leigh M. Caldwell, John H. Croessman, Bruce A. Fasol. Tom Kane and Bill Swinford contributed to this report.