WVCA AND FOC JOIN LEGISLATURE TO SHOW SUPPORT OF CAPITO BILL

West Virginia’s legislative leadership and the coal industry are urging Congress to pass new legislation that could slow down the Obama Administration’s war on Appalachian coal.

Senate President Bill Cole, House Speaker Tim Armstead and Chris Hamilton, senior vice president of the West Virginia Coal Association and co-chairman of the Coal Forum, met with several members of the Legislature and the media at the State Capitol May 18th to present a unified message to members of Congress: Pass the ARENA Act now.

The ARENA Act – the “Affordable, Reliable Energy Now” Act – is a new bill offered by Senator Shelley Moore Capito (R-WV).   Capito announced the legislation on May 13, calling it the principal legislative vehicle in the Senate to roll back President Obama’s “Clean Power Plan.”

The U.S. Environmental Protection Agency is pursuing changes to the Clean Air Act that would require electric power utilities to scale back coal-fired power to comply with new air emissions standards. EPA’s “Clean Power Plan” will have a particularly negative impact on Appalachian coal states, many of which have sued the agency in federal courts under a lawsuit led by the West Virginia Attorney General’s Office. .

Capito’s bill would prevent EPA from setting technology-based standards for power plants unless that technology has been proven to work at several locations and is commercially viable. ARENA also would extend EPA’s rule-compliance dates pending final judicial review and require the agency to issue state-specific plans for how states could meet the proposed air emissions reductions.

The ARENA Act also seeks to protect consumers from skyrocketing electric power rates because it would allow any governor to refuse to comply with a new air emissions regulatory program if it would have a negative impact on economic growth and ratepayers and threaten reliability of the electricity grid. The bill also will prevent EPA from withholding federal highway funds from any states for noncompliance with the Clean Power Plan.

“Last week, Sen. Shelley Moore Capito introduced this bill to be a powerful legislative weapon in the fight against President Obama’s War on Coal,” President Cole said. “Nobody is against clean air, but the extent that President Obama and his EPA want to go will cause devastating harm to our coal industry and thousands of West Virginia families. The proposed emission reduction standards for power plants are unprecedented, complicated, and expensive. I speak for my fellow legislators today in thanking Senator Capito for introducing the bill and also Senator (Joe) Manchin for co-sponsoring it. We stand ready to assist you both at the state level.”

Speaker Armstead echoed Cole’s support and said the Obama Administration’s disdain for coal-fired electricity has pummeled Appalachian economies.

“The Obama Administration is … imposing unreasonable and oppressive regulations that say to our hardworking West Virginians that the White House doesn’t care if it puts our West Virginians out of work, it doesn’t care if we become more reliant on foreign energy,” Armstead said. “In fact, this White House has said once again, loudly and clearly, that it doesn’t care about West Virginia.”

Under the Obama Administration, Hamilton said, West Virginia coal production has dropped 31 percent and the industry has lost a fifth of its jobs. Coal-fired power plant closures and projected power rate increases caused by the Clean Power Plan only exacerbate the impact on West Virginia’s jobs and economy.

“Amidst all this pain and suffering for our state and for all West Virginians, an important question is being ignored: Will the President’s and EPA’s plan have a significant impact on global climate emissions and therefore climate change? The short answer is no,” Hamilton said.

“Proving that only requires a little bit of math. The President’s plan purports to reduce global emissions by less than 1 percent as global use of coal and coal-fired electricity grow around the world.”

Hamilton thanked Cole and Armstead for providing such strong legislative leadership and offering their public support of the coal industry.

LEGISLATURE’S JOINT COMMITTEE ON TAX REFORM PREPARING FOR 2016 LEGISLATIVE SESSION

Jennifer Shand, director of the Center for Business and Economic Research at Marshall University and   Joseph Henchman, vice president of state projects and Jared Walczak, policy analyst, for the Tax Foundation.

Sartarelli’s comments were brief.  He indicated that while tax policy is important, it is only one issue.  He emphasized regulatory importance.  He spoke about South Carolina, and the fact that they have right to work, which he views as very significant.  They just landed a new automotive plant. 

WEEKLY COAL PRODUCTION AND PRICE REPORT 5/28/15

Coal Commodity Region/Fuel

Avg. BTU

SO2

Price

Price/mmBTU

Central Appalachia

12,500

1.2

 $52.85

 $2.11

Northern Appalachia

13,000

3

 $60.90

 $2.34

Illinois Basin

11,800

5

 $40.45

 $1.71

Powder River Basin 

  8,800

0.8

 $11.55

 $0.66

Uinta Basin

11,700

0.8

 $39.30

 $1.68

Natural Gas (Henry Hub)

   n/a

0.01

    n/a

 $2.72

Coal production in the U.S. continued to fall this past week. Production for the week ending May 28 was fully 15.7% below last year’s levels, according to the latest report from the Energy Information Agency (EIA).

WEST VIRGINIA COAL 2015 & BEYOND

The WV Coal Forum, in conjunction with multiple local, regional and national partners, will host a series of five meeting across the state throughout the remainder of the year highlighting the challenges and opportunities facing West Virginia’s coal and energy sectors.  The series of educational and informational events will bring attention to the impact of U.S. EPA’s Clean Power Plan, state and federal environmental regulations and strategies for confronting these critical issues head on.

            Tentative Meeting Dates:

            Tuesday, June 9, 2015 – Charleston, WV – 8:30 a.m. to Noon – Embassy Suites

            Thursday, July 23 – Bluefield, WV – 9 a.m. to Noon – Quality Hotel & Conference Center

            Tuesday, August 18 – Wheeling, WV – 11:30 a.m. to 3 p.m. – Oglebay Resort & Conference Center

            TENTATIVE – Wednesday, September 23 – Summersville, WV – 5:30 p.m. to 8:30 p.m. – Summersville Armory

            TENTATIVE – Wednesday, October 28 – Morgantown, WV – 11:30 a.m. to 2 p.m. – Waterfront Place Hotel and Conference Center

TVMI AWARDS $15,000 IN SCHOLARSHIPS

At the May 21 Tug Valley Mining Institute’s dinner meeting, six 2015 scholarship recipients were named.  Two $6,000 scholarships were awarded to Erika Coleman and Caroline Hatfield, both of Belfry High School.  Four $750 scholarships were awarded to Benjamin Fitch & Aaron Tackett of Sheldon Clark, and Adriana Fleming of Logan High School and Olivia Ooten of Tug Valley.  Congratulations to these students.

Gary White, past WVCA President and Board Member and Interim President of Marshall University was the speaker and discussed the new Engineering Facility at Marshall, which was partly funded by donations from several mining related firms, including J. H. Fletcher and Art Weisberg, founder of State Electric