The Battle for PRB Coal Plants WIA Spring Meeting March 28, 2019 Randy Eminger Executive Director Energy Policy Network
Cold Hard Facts - 2018 Positive Negative • 15 plants have closed • Wyoming sold 296 mmt • 27 more announced coal closure (next 5 yrs) • 133 power plants • Representing 46 mmt • 27 states of PRB coal
Cold Hard Facts PRB COAL CONSUMING POWER PLANTS IN 2018 PRB COAL CONSUMPTION IN 2018 (million tons) (No. of Plants) 9.5 15 36.5 Retired in 2018 Retired in 2018 Retiring in next Retiring in next 27 5 Years 5 Years No Announced No Announced 91 Retirement Retirement 250.0 Source: DOE EIA & EVA Research Source: DOE EIA & EVA Research
Mission Stop early closure of coal-fueled power plants • Represent strictly Powder River Basin • Coal-consuming states (Midwest & South) • Operate strictly off of donations •
Out Funded • Total $168 million since 2011 • Tom Steyer, George Soros, (Rockefeller, Heinz, foundations) • Estimated contributions in 2018 - $72 million Michael Bloomberg $64 million check to ‘Beyond Coal’ campaign
Battle in the Trenches • Intervene in regulatory • Build broad-based coalition proceedings (instate) • Litigate if necessary • Conduct economic research • Engage media/grassroots • Hire the right regulatory team campaign (attorneys, experts)
Oklahoma Action Plan Supporting Closure Sierra club Wind industry Natural gas industry Closure Date – Jan. 1 2019 Coalition Electric Coops Large Industrial Railroads 2.6 MMT PRB Coal Consumer Groups 617 emails and 248 direct phone calls 13 Year Life Extension
Battleground Arkansas (2017-18) White Bluff – 1,657 MW Independence – 1,678 MW Obama EPA denies State Plan and issued a Regional Haze FIP Require Scrubbers on all four units (Estimated cost $2 billion )
Odds Against Us Sue & Settle Entergy negotiates with Sierra Club for a settlement Close White Bluff in 2024 Close Independence in 2025 Opposition Entergy (electric utility) Obama EPA Environmental Groups (Sierra Club, EDF, Earth Justice)
Arkansas Action Plan Coalition Steel industry, Ark. Large Industry, Ark. Gas Consumers, Pulp and Paper, Tyson Foods, Lion Oil, Coal Industry Activation Governor, Attorney General, ADEQ Economic Research Legal briefs and intervention
Three Key Wins 1) Ark. DEQ issue new SIP Scrubbers not needed Low-Sulfur coal meets Regional Haze standard 2) 8 th Circuit Court case withdrawn 3) Retirement moved out White Bluff – 2028 (plus 4 years) 8.5 MMT PRB Coal Independence – 2040 (plus 14 years) 18 Year Life Extension
Louisiana Action (2018) Sierra Club Sues Entergy (Nelson Plant) over Regional Haze Add scrubbers or close in 2025 EPN Action Worked with LDEQ (Low-sulfur coal = BART) 1.5 MMT PRB Coal LDEQ adopts ‘Low - sulfur coal’ standard 9 Year Life Extension EPA approves LDEQ SIP
Indiana Battleground (2019) NIPSCO Close Shahfer and Michigan City plants (Shahfer - 2023) (Michigan City - 2028) CCR/ELG regulations Replace with Wind & Solar Opposition Sierra Club NAACP Electric utility 5 largest Industrials
EPN’s Battle Plan Build a Coalition (Labor Unions, Georgia Pacific, Jasper County Commission, Power Plant Suppliers) PR and Grassroots Public testimony (March 11) Letters to the Governor Earned media (LTE’s) Intervention Both the IRP and Rate Case April 16-18
A Win Would Mean Added Life Shahfer 14 (5 years) Shahfer 15 (5 years) Michigan City (6 years) Additional PRB 16 years Sales 15.3 mm t Must Offer to Sell Follows WY (SF 159) NIPSCO required to purchase electricity
Benefits to Power River Basin Power Plant Coal Sales - mmt Life Extended (yrs) Future Sales - mmt (annual) Sooner Station 2.6 13 33.8 White Bluff 4.3 4 17.2 Independence 4.2 14 58.8 Nelson 1.5 9 13.5 Total 12.6 40 123.3
Tax Revenue to the State State Severance Federal Mineral Gross Proceeds Tax Abandoned Mine Total (Annual) Tax Royalty Lands (12.5% of sales (County mills - 7% (30.5 cents/ton – ( 7% of the taxable price) of taxable value) WY receives 50%) value) (WY share – 48%) $9,702,000.00 $8,316,000.00 $9,702,000.00 $21,136,500.00 $48,856,500.00 Added Annual Tax Revenue (est.) - $48,856,500.00 Total Tax Benefit over Extended Life - $478,155,750.00
Randy Eminger Executive Director reminger@tepn.org Energypolicynetwork.org
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