energy law 2 – coal
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Energy Law 2 – Coal. Fall 2014 Sep 9, 2014 Alan Palmiter. Topic roadmap. 1.Coal in energy mix Compared to other sources (including natural gas) History of coal as energy source 2.How coal mining / transportation / combustion works Underground and surface mining - PowerPoint PPT PresentationTRANSCRIPT
Energy Law
2 – Coal
Fall 2014Sep 9, 2014
Alan Palmiter
Not for distribution- for study purposes only
Topic roadmap
1. Coal in energy mix– Compared to other sources (including natural gas)– History of coal as energy source
2. How coal mining / transportation / combustion works– Underground and surface mining– Transportation: rail, truck, slurry– Coal-fired power plants
3. Regulation of coal– Mining: federal vs. non-federal lands– Transportation: railroad regulation– Emissions: CAA and EPA
4. Future of coal– EPA proposals to regulate GHG – Carbon capture and storage– Coal: global future?
http://www.eia.gov/totalenergy/data/annual/diagram1.cfm
2
Energy Flow, 2011 (Quadrillion Btu)
http://www.eia.gov/totalenergy/
1
2
http://www.eia.gov/totalenergy/data/annual/pecss_diagram.cfm
Energy Sources Uses
Coal is 42-46% of electric power sector
Coal mostly used power generation
ANDRA GOODMAN & MICHAEL WALKER, E3 VENTURES, BENCHMARKING AIR EMISSIONShttp://www.nrdc.org/air/pollution/benchmarking/2004/benchmark2004.pdf
CO2 Power Plant Emissions (2004)
Introduction to coal …
Click for video(about 12 min. – stop at 6:48)
2a. Coal mining
Source: EIA, Quarterly Coal Report (Oct-Dec 2011 (Apr 2012)
Powder River Basin
2a. Coal mining
Source: EIA, (Apr 2012)
Powder River Basin
204,412 tons581,615 tons
26.0%74.0%
Underground coal mining Surface coal mining
Click for video(about 5 min.)
Click for video(about 4 min.)
Mountaintop removal
2b. Coal transportation
Source: Wild Earth Guardians (Mar 2011)
Coal as CO2 Source
Source: EIA, “Coal Explained”
1. True or false? Coal is now mined in 25 states. Wyoming mines the most coal, followed by West Virginia, Kentucky, Pennsylvania, and Texas.
2. Which is false – a. Eastern coal has higher heat +
sulfur than Western coalb. Most coal used in the US is
transported by railroads (around 2/3 of total)
c. Trucks transport 1/3 of coal consumed in US
d. Coal is sometimes transported in pipelines
3. Which statement is true about electric power production from coal --a. Coal combustion produces fly
ash, which can be safely buriedb. Smoke stacks (using limestone)
remove all SO2 emission
c. A byproduct of coal combustion is gypsum used in making drywalls
4. True or false? Surface coal mining can only be used when the coal seam is less than 200 feet underground.
Pop QuizCoal Mining, Transportation, Combustion
Answers: 1-T / 2-C (only 1/6) / 3-C / 4-T
3a. Regulation of Coal Mining
State: State property law: Ownership of
subsurface mineral, which can be leased
Lease interpretation: subsurface lease (typically) does not include surface mining rights
State mining permits: non-federal lands (eg – Ohio Department of Natural Resources)
State surface mining permits: Colorado Surface Coal Mining Reclamation Act of 1979 / must meet federal minima (and be approved by BLM)
Federal: Federal Coal Mine Health and
Safety Act of 1969 / enforcement Dept of Labor, MSHA
Black Lung Benefits Act of 1972: mining companies pay to health care funds for miners
Surface Mining Control and Reclamation Act of 1977 (SMCRA) / administered Dept of Interior, OSM
Federal mining permits: federal lands / Bureau of Land Management issues leases and licenses
3b. Regulation of Coal Transportation
State: --
Federal: Surface Transportation
Board (STB), within the Department of Transportation (DOT), has regulatory oversight over railroads
STB: approves rates, service, and construction of rail lines
Courts: give STB broad deference
3c. Regulation of Coal Combustion
State: --
Federal: Clean Air Act (1971):
“new source” permits EPA administers CAA “New source” NSPS apply
to modified or reconstructed power plants
SCOTUS: EPA can define “modification” differently for NSPS / PSD permits
GAO study (2010)
• Pre-1971 power plants – generated 45% of carbon-generated electricity– produced 75% of sulfur dioxide emissions– Produced 64% of nitrogen oxides emissions– Produced 54% of CO2 emissions
• Pre-1971 power plants compared to new units (per unit of power)– emitted about 3.6 times more sulfur dioxide– Emitted 2.1 times more nitrogen oxides– Emitted 1.3 times more carbon dioxide
• CAA grandfathering encourages maintaining old plants rather than building new ones
Federal C
oal Mine Health
and Safety Act
(1969)
Surface M
ining Control a
nd Reclamation Act
(1977)
EPA - C
arbon Pollution Standard fo
r
New Power Plants
(2012)
1970 20101990
Coal regulation - timeline
Black Lu
ng Benefits Act
(1972)
Clean Air Act
(1971)
Clean Water A
ct (1973)
20001980 2020
Environ Defense Fund v.
Duke Energy (US 2007)
EPA - G
HGs threaten US health
/welfa
re (2009)
Keystone Bitu
minous Coal A
ss’n v.
DeBenedictis (U
S 1987)
Clean Energy & Secu
rity Act
(2009)
Federal M
ine Safety and Health
Act (1977)
EPA Clean Power
Plan (2014)
1. True or false? MSHA safety standards include preventing unsafe concentrations of methane in underground mines (but include no regulation of mine methane once it leaves the mine).
2. Which is false – a. Bureau of Land Management (BLM)
issues leases and licenses for coal mining on federal lands (initially 20 years)
b. Subsidence is regulated only by state law, a power upheld by the Supreme Court
c. Treatment of coal refuse is covered by the CWA and includes criminal penalties
d. SMCRA duties of reclamation terminate after 5/10 years, despite performance bonds
3. Which is false --a. Pre-1971 power plants are not
subject to PSD or NSPS pollution standards
b. The Supreme Court said the EPA must define “modification” the same for PSD and NSPS
c. Repairs that allow power plant to run longer (increasing net emissions) is a “modification” for PSD purposes
4. True or false? Rates for coal transportation are regulated mostly by STB, based on cost of service
Pop QuizCoal Regulation
Answers: 1-T / 2-B (shared) / 3-C (Act) / 4-F
Cap and tradeFirst SO2 Next Co2
Click for video(about 3:30 min.)
Presidential Memorandum(June 25, 2013)
• Seeks new GHG rules– EPA to work ‘expeditiously’ – Finalize rules for carbon pollution
standards for the power sector
• Sets deadlines– New power plants: rule by September,
2013– Existing power plants: rule proposal by
June 2014 and new rules by June 2015
• Points EPA to authority under CAA § 111
EPA Carbon Pollution Standards
• Proposed Rule (March 2012)– Ensure new fossil-fuel fired facilities take
advantage of clean technologies– Including carbon capture and
sequestration (CCS).
• CCS three-step process :– Capture of CO2 from power plants or
industrial processes– Transport of the captured and
compressed CO2 (usually pipelines)– Underground injection and geologic
sequestration of the CO2 into deep underground rock formations
EPA Carbon Pollution Standards
Most power plants can meet the EPA’s proposed CO2 emission rules using gas-fired generators -- though coal-fired generators would need CCS.
So the proposal is “an empty gesture.”
Low natural gas prices from fracking make coal plants uncompetitive. As EPA confesses the rule has no benefits and no costs.
Richard L GordonCATO Institute
Energy federalism
Coal Federal State
Coal miningDOI licensingDOI-OSM/SMCRA regsCWA, mining health laws
State property lawState subsidence lawState SMCRA authorityState CWA authority
Coal transportation STB oversight of rail rates None
Coal consumption CAA (new – NSPS, PSD / existing grandfathered)
Proposed state CAA (existing)
Carbon storage Response to CAA regs State property law
International Future for Coal
• Coal’s share of the global energy mix – will continue to rise– By 2017 coal: may surpass oil
• Reasons– abundant supplies and demand for
power in emerging markets– China and India lead the growth next five
years • Forecast
– China will surpass rest of the world in coal demand next 5 years
– India will become largest seaborne coal importer, second-largest consumer (surpassing the U.S.).
• Assume carbon capture/sequestration not available next 5 years
EIA, Quarterly Report (July 2013)
Sign of things to come?
HypotheticalThe EPA is planning to regulate
emissions of CO2 in pre-1971 power plants.
Group #1: You represent the American Coalition for Clean Coal Electricity
Group #2: You represent the Union of Concerned Scientists
Group #3: You represent the Association of Coal State Governors
Make your comments …
EPA Power Plan
In this action, the Environmental Protection Agency (EPA) is proposing emission guidelines for states to follow in developing plans to address greenhouse gas emissions from existing fossil fuel-fired electric generating units. Specifically, the EPA is proposing state-specific rate-based goals for carbon dioxide emissions from the power sector, as well as guidelines for states to follow in developing plans to achieve the state-specific goals. This rule, as proposed, would continue progress already underway to reduce carbon dioxide emissions from existing fossil fuel-fired power plants in the United States.
The end
Carbon Capture
2a. Coal mining
Source: EIA, Quarterly Coal Report (Oct-Dec 2011 (Apr 2012)
Powder River Basin
HypotheticalThe EPA is planning to regulate
emissions of CO2 in pre-1971 power plants.
Group #1: You represent the American Coalition for Clean Coal Electricity
Group #2: You represent the Union of Concerned Scientists
Group #3: You represent the Association of Coal State Governors
Make your comments …
CAA S 111 (42 USC S 7411) – Standards of performance for new stationary sources
(b) List of categories of stationary sources… The Administrator shall [establish] a list of categories of stationary sources [and] publish … Federal standards of performance for new sources within such category. The Administrator shall, at least every 8 years, review and, if appropriate, revise such standards ….....
(d) Standards of performance for existing sources. …(1) The Administrator shall prescribe regulations …
under which each State shall submit to the Administrator a plan which (A) establishes standards of performance for any existing source for any air pollutant (i) for which air quality criteria have not been issued … but (ii) to which a standard of performance under this section would apply if such existing source were a new source, and (B) provides for the implementation and enforcement of such standards of performance.
(2) The Administrator shall have the … authority—(A) to prescribe a plan for a State in cases where the State fails to submit a satisfactory plan …. and (B) to enforce the provisions of such plan in cases where the State fails to enforce them ….