coal exports through the pacific northwest

Coal Exports Through the Pacific Northwest

Martin Donohoe

Plans

• Powder River Basin coal, cheap, export to China and India (to supplement national uses and European/Australian exports)

• Federal land, cheap• Americans own most of Powder River Basin

(40% of America’s coal supply)• 2/3 of coal extracted from public lands

Coal Economics

• Cheap:– Sold for as low as $1/ton (usually non-

competitively)– U.S. price = $9/ton; sold to China for $80 -

$123/ton– Uncompetitive leasing and poor oversight

have cost U.S Treasury $29 billion since 1982

army

Coal Economics

• GAO found BLM’s coal lease program does not account for the higher price of coal when it is exported

• Senate Energy and Natural Resources Committee, Interior Department, and looking into royalty payment evasion (companies valuing coal at low domestic prices, rather than those fetched overseas)

Plans

• 100 million tons/yr• 26 trains/day

–4 diesel engines/train (100-120 cars per train)

• 12 barges/wk

Plans

• Would dramatically increase U.S. coal export capacity• 2006 - 50 million tons/yr• Current - 127 million tons/yr• With proposals - 200 million tons/yr

• Through Columbia River Gorge (National Scenic Area)

48 mmt/yr coal48 mmt/yr coal



Total: 150 mmt/yr coal

Total: 150 mmt/yr coal

Health Consequences of Coal Mining

• Respiratory diseases (including Black Lung Disease)

• Heart disease• Cancers• Low birth weight• Birth defects

Health Consequences of Coal Mining

• Depleted aquifers, decreased land for ranchers for grazing, dust pneumonia in cattle and horses

• Deception

DECKER MINE: DECKER, MONTANA

Accidents

• Almost 40 train derailments over last 2 years– 250 deaths/yr in U.S. from all rail transport

accidents

• Vancouver barge hits coal chute; coal ship breaks in two off South Africa

• Mississippi River Barge hit railroad bridge, leaking oil

Accidents

• Runaway train disaster in Quebec (2013)• West Virginia surfactant spill pollutes river

(2013)• Risk of fires at coal terminals

– Water intensifies blaze; special equipment and firefighter training required

• State oversight of rail safety and local fire/disaster preparedness weak

Coal Train derailment near Baltimore, OH

Coal train derailment from coal dust buildup near Baltimore, Ohio (2012).

Photo from Reuters.

Mesa, WA Coal Train Derailment(2012)

The same trains that would carry coal through the Pacific NW– Wisconsin, 2013

Coal-laden ship breaks up off coast of South Africa (2013)

Barges

• Risks: coal and fuel spillage, collision, grounding, congestion, emissions, habitat disruption, and fish mortality from wake and propellers

• Estimated 24 barge accidents/yr on Columbia, one/yr involving spill of coal or fuel

Barges

• Columbia Gorge tourist spending $746 million/yr, of which $233 represents labor income to people who live and work in the Gorge

• $1.5-4.5 billion salmon habitat placed at risk• Annual economic value of negative externalities

produced by Morrow Pacific barges:– pollution = $17.8 million– Greenhouse gasses = $22.8 million

Westshore Coal Terminal in BC (2012)Photo from CKNW News Talk 980.

Fire at Westshore Coal TerminalBritish Columbia, 2013

Accidents(Preventable)

• Sago and Upper Big Branch (West VA) mine explosions/cave-ins

• Elk River (WVa) coal terminal leak/contamination

• Others

Trains

• Large increase in wear and tear on RR tracks• RR limited by federal law from paying more

than 5% costs for improvements in at-grade crossings, bridges, tunnels, overpasses

• Costs will be borne by local municipalities, state and federal taxpayers

Deception

• Ambre Energy mislead Port of Longview (5 million tons/yr; internal documents up to 60 million tons/yr; re-applied at 45 million tons/yr)

• Port of Coos Bay admonished by judge for attempting to prevent Sierra Club form obtaining public records re proposed terminal

Deception

• Lauri Hennessey, spokesperson for the Alliance for Northwest Jobs and Exports–Calls the group “a grassroots effort”–Has referred to the sacred wetlands of

the Lummi Nation (Gateway site) as “basically…an industrial area”

Deception

• Lauri Hennessey, spokesperson for the Alliance for Northwest Jobs and Exports– Group created and largely funded by coal

industry and its allies– Hennessey = Vice-President of Corporate

and Public Affairs at Edelman (world’s largest PR firm, best known for decades of work on behalf of Big Tobacco)

Health Effects

• Diesel particulate matter:– impaired lung development–pulmonary inflammation and lung

cancer– increased risk of heart

attacks/strokes/cancer/asthma (ER visits and hospitalizations)

Health Effects

• Diesel particulate matter:– increases cardiopulmonary and all-

cause mortality–developmental neurotoxin

• Perinatal exposure increases risk for autism spectrum disorder, ADHD-related symptoms

Health Effects

• Coal Dust:• Up to 645 lbs. (3%) lost per car during

transit• Surfactant decreases, but does not

eliminate, risk

Health Effects

• Coal Dust:– Chronic bronchitis/emphysema/pulmonary

fibrosis– Exposure to heavy metals – 3-fold increased risk of cancer in coal terminal

workers in Australia– Organic gardeners/farmers

“Plumes of coal dust can often be seen from passing coal trains. When standing near the rail lines, I have often had to avert my face when a loaded coal train passes to avoid

being pelted with coal particles.”

William VanHook, Assistant VP, BNSF

Coal Dust Escape645 lbs without surfactant

97 lbs with surfactantBNSF Study

Health Effects

• Noise:– Cardiovascular disease (heart attacks,

increased BP, arrhythmias)– Stroke– Cognitive impairment in children– Exacerbation of mental health disorders– Sleep disturbance (fatigue, HTN,

arrhythmias, accidents and injuries)

Health and Environmental Effects

• Worst effects on:– Communities of color, children, older adults, and

low income citizens – Native Americans

• Tribal fishing sites (Native American fish consumption up to 10X U.S. avg. of 14 lbs/yr)

– Organic gardeners– Quality of life for all

Frequent, Long Train Crossings

• Delayed EMS and fire department response times– Effect on heart attack/stroke/trauma victims,

police response to crimes– Portland Fire Department response times already

poor– Houseboat fire

• Increased accidents, traumatic injuries, and deaths

Consequences of Burning Coal

• Increased ground level ozone• Mercury and other heavy metals

– Neurotoxin• Associated with Autism Spectrum Disorder and

ADHD– 300,000-600,000 women of reproductive age with

toxic levels– 18% of Mt Bachelor mercury from Asian power

plants


• Air pollution:– 200,000 premature deaths/yr in U.S.– 4.1-6.8 million worldwide

• 2.1 – 3.3 million (outdoor air pollution)• 2-3.5 million (indoor air pollution)

• Government program promoting coal use in Northern China may cut life expectancy of 500 million people by average 5 yrs


• Global warming:–400,000 deaths and 5.0 - 5.5 million

disability-adjusted life years lost per year (WHO, UN Environment Program)

–Expected to double by 2030–Weather extremes


• Global warming:–2013 report from Power Consulting:

every 140 million tons of additional Powder River Basin coal exported will cause a net rise of 200-240 million tons of CO2 when burned in Asia

True Cost of Coal

• U.S. = $502 billion in fossil fuel subsidies in 2012– Subsidies for polluting energy sources greater

than 12 times subsidies for renewables (excluding military costs)

– Much internalized as industry profits• The public health costs of coal alone are more than

double the U.S. average retail electricity rate• When subsidies and externalities taken into account,

renewables look great

Jobs

• Progressives (who oppose coal exports) traditionally support unions, green energy jobs, living wage, health insurance for all, etc.

• Coal exports - Short-term, unhealthy jobs• U.S. taxpayers subsidizing Chinese and

Indian jobs

Jobs and Property Values

• Effect on local retailers and their often low wage employees

• Rail capacity limited, Montana farm exports may suffer

• Seattle study predicts rail crossing congestion could cost up to $455,000/yr in lost revenue plus an additional $475 million in diminished real estate values– Negative effects on tourism

Jobs

Jobs program for pulmonologists, special ed teachers, and morticians

Multnomah County Health Department Analysis

• 9% of population suffers from asthma.• Coal dust may travel 1/3rd to 1 1/4 miles from

train tracks. • Almost 1/3 of population lives in areas that

either border or cross rail lines that could carry coal and already experience a high burden of air pollution and noise disturbance from industrial sites, roads, and trains

Multnomah County Health Department Analysis

• Communities of color, children, older adults, and low income citizens most likely to be affected

• Cumulative delay of up to two hours per day at each rail crossing and delays in emergency response times expected

• Precautionary principle invoked, calls for HIS and EIA

Public Opposition

• Have indicated concern or disapproval of coal export proposals:–600 health professionals–400 local businesses–220 faith leaders

Public Opposition

• Have indicated concern or disapproval of coal export proposals:– Multiple Oregon and Washington

municipalities, Portland and Seattle mayors, Oregon and Washington governors

– Northwest Tribes (Lummi Nation and Yakama Nation)

Public Opposition

• Over 1,000 people attended Oregon DEQ hearings in 12/12

• Impressive state capital rally 3/13• Hearing and rally re Port of Morrow

Project (7/13)• Other events gathering huge crowds in

OR, WA, and BC

The Latest

• 2013: Environmental groups announce intent to sue Burlington Santa Fe Railway and several coal companies for violations of federal Clean Water Act–Most coal plants in violation of Clean

Water Act

The Latest

• 2013: Army Corps of Engineers (federal permitting agency)decides NOT to consider local or global health and environmental effects of coal burning – Despite having concluded on prior review that

coal train pollution adversely impacts wetlands

The Latest

• 2014: DEQ approves air quality, water quality, and construction storm water permits for Boardman terminal, but requires new water quality permit–Project also requires permits from

Department of State Lands and federal Army Corps of Engineers

Recent Developments Show Coal’s Future is Bleak

• Coal export prices down 40% over summer, 2013 ($80-90/ton)

• Investors abandoning coal– Goldman Sachs Report: “The window for

profitable investment in thermal coal is gradually closing”

– Goldman Sachs Infrastructure Partners owns 49% of parent company pursuing Gateway Pacific Terminal


• Kinder Morgan abandons plan to build coal export terminal on Columbia River at St Helens

• Ambre Energy to renegotiate deal to take over Decker Mine in Montana– Ambre having financial problems

• Cloud Peak Energy fails to bid on large deposit; Kiewit bid (21 cents/ton) rejected by BLM


• Chinese demand expected to drop with development of nuclear and renewables– Chinese government states country’s air pollution

situation is “grim” and is “harming people’s health and affecting social harmony and stability”

– China bans new coal plant production near Beijing, Shanghai, and Guangzhou (summer, 2013) and promises to close at least 2,000 small coal mines by 2015

• World Bank and U.S. sharply restricting funding of (overseas) coal plants (2013)

Desperation

• Supporters using amoral logic of “someone else will sell it to them” – similar to tobacco exports

The Latest

• Many new coal terminals planned for Gulf of Mexico (if Pacific NW plans do not work out)– 60 additional trains per week, could move

700,000 barrels oil/day (proposed Keystone Pipeline = 830,000 barrels/day)

• Last Oregon coal plant (Boardman) to close in 2020

The Latest

• Plans to use railways and terminals to transport Canadian Tar Sands and North Dakota Bakken Oil Field fracked oil through Pacific NW for export– Pipelines on wheels– 2008 – 9500 carloads thru Pacific NW; 2012 – over

200,000; the future – more

What You Can Do

• Join Power Past Coal Coalition• Volunteer• Call Governor Kitzhaber or his Citizen

Representative: (503) 378-4582• Contact DEQ and DSL

What You Can Do

• Continue to demand a full spectrum Environmental Impact Statement (EIS) and Health Impact Assessment (HIA)

• Demand a halt to all proposals

Conclusions

• Coal is a dying 19th Century technology with Dickensian effects on human health and the environment

• The consequences of coal transport through the Pacific Northwest and its subsequent burning in Asian power plants is bad for the Northwest, the United States, and the world

Conclusions

• U.S. needs an energy policy for the 21st century, using clean technologies that provide long-term, well-paying, and safe jobs

Günter Grass

“The first job of a citizen is to keep your mouth open.”

African Proverb

If you think you are too small to have an impact, try going to bed with a mosquito in your tent

Special Thanks To

• Regna Merritt, Margie Kircher, Andy Harris, Susan Katz, and others at Oregon PSR– [email protected]

• Laura Stevens and others, Oregon Sierra Club/Beyond Coal Campaign

• Alan Lockwood, National PSR• Thousands of concerned citizens who have

volunteered their time and energy

Resources

• Power Past Coal: http://www.powerpastcoal.org/

• Sierra Club Beyond Coal Campaign: http://content.sierraclub.org/coal/

• Coal’s Assault on Human Health (Physicians for Social Responsibility): http://www.psr.org/resources/coals-assault-on-human-health.html

Resources

• Oregon PSR Resources: http://www.psr.org/chapters/oregon/environmental-health-/proposed-coal-exports.html and http://www.psr.org/chapters/oregon/environmental-health-/

Resources

• Full cost accounting for the life cycle of coal (Ann NY Acad Sci 2011;1219:73-98. Available at http://solar.gwu.edu/index_files/Resources_files/epstein_full%20cost%20of%20coal.pdf

Contact Information

Public Health and Social Justice Website:http://www.publichealthandsocialjustice.org

orhttp://www.phsj.org

Martin [email protected]

coal exports through the pacific northwest

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