Just Within Reach Newsletter

Date: July 22, 2001
Source: Just Within Reach
With Permission from: [email protected]

Dear Friends of JWR:

Many people have requested that we share environmental news by email until our web site is up and running. To meet that need, we'd like to start by sharing this article which just appeared in Sunday's New York Times Magazine. It is somewhat technical but extremely educational and takes a good, hard look at the coal industry and fossil fuels and the environmental damage being caused, including global warming. It discusses a number of different issues. It's quite long and AOL doesn't like long emails, so I'm sending it in two parts. We won't send items like this often, but we thought this would be of particular interest since this reporter took a flight over West Virginia much like we and Kevin flew over Eastern Kentucky on June 19 to see the devastation in the mountains of his home state. Kevin is working on a letter to the editor of the Magazine in response to this article and will be posting his flight experience on www.BackstreetBoys.com. Thanks again for your interest and your support. We welcome your feedback on this story and if you don't like what you read, contact your public officials and urge them to enforce environmental regulations and explore renewable, Earth-friendly energy sources. Thanks again!

Vicki Hanna, Programming and Public Relations

How Coal Got Its Glow Back
By Jeff Goodell
The New York Times

Twenty-five miles south of Charleston, W. Va., the Appalachians look as they must have a thousand years ago, rapturously folded against each other and densely covered with trees. Down a gently sloping mountainside, a conveyor belt angles toward four coal-storage bins that resemble farm silos. I exit onto a roughly-paved road and arrive at a small white guardhouse near a wooden sign: "Hobet 21."

It doesn't look like much. But in fact Hobet 21 covers some 12,000 acres, almost all of it hidden from easy public view by foliage and mountain ridges. Hobet 21 is owned by Arch Coal, America's second-largest coal company, with mines throughout Appalachia and the West. Arch will dig up 100 million tons of coal this year, with six million coming from Hobet 21.

Almost half the coal Arch digs in Appalachia will be obtained by a controversial method known as "mountaintop removal." Instead of digging the coal out of the mountains in subterranean shafts, as miners used to do, workers today -- with the help of enormous machines called draglines that scoop 100 tons of earth and rock at a time -- simply remove the mountains from the coal. It's hell on the owls and frogs and human beings who live in the vicinity, but it's remarkably efficient.

At the guardhouse, I'm greeted by Larry Emerson, director of "environmental performance" for Arch. A tall, rangy West Virginia native dressed in jeans and a baseball hat, he is deliberate in his good cheer. "Welcome to our world," Emerson says, pumping my hand firmly. "I hear you want to see where electricity comes from."

I follow Emerson's Dodge 4 by 4 up the hill. Looking at the coal-handling machinery -- the silos where coal is washed of impurities, the loading deck where it is funneled into rail cars -- I feel as if I'm passing through a theme-park exhibit about How Life Used to Be in America. All that's missing are pickaxes and mules. I'm also amazed by the tall piles of glistening rock; coal has a reputation as a filthy fuel, but in its raw state, it is shiny and pitch-black lovely.

After a short drive, we suddenly come to a huge barren area -- a man-made plateau. In the center of this wide-open field, near some rusty trailers, is the mining office. It feels strangely exposed up here. West Virginia is all hollows and shadows and twisting roads. This is a different planet.

We park near the office, and Emerson, who has supervised the planting of trees on reclaimed mine land, hands me some P.R. material touting Arch's environmental accomplishments. As we chat, a siren goes off in the distance. A moment later, there's a boom. The earth trembles; a rabbit dashes across the parking lot and dives under a bush. A plume of smoke rises on the horizon.

"They're blasting," Emerson explains matter-of-factly. Yes, they are -- blasting, booming and raking in the dough. Big Coal simply can't believe its luck. For decades, the industry seemed to be dying. First, the use of coal for industrial applications, like steel making, was phased out. In the late 70's, utility companies began switching from coal to natural gas, which was plentiful, more efficient and less of an environmental nightmare. During the 80's and 90's, coal prices flattened.

Profits, if there were any, were measured in pennies per ton. Then, unexpectedly, what one analyst has called "the Perfect Storm" hit the energy industry. Rolling blackouts in California demonstrated that electricity is not something that's created by wall outlets; the price of natural gas shot up to $10 from $2.50 per million B.T.U.; and finally, George W. Bush of Texas, the state that consumes more coal than any other in the country, together with Dick Cheney, who hails from the largest coal-producing state in the country, won the White House. Two months after taking office, in an about-face that outraged environmentalists, President Bush "clarified" his campaign pledge to begin regulating carbon-dioxide emissions from power plants, effectively killing the international Kyoto treaty on global warming. Considering that American coal-powered plants pump 2.3 billion tons of CO2 into the air each year -- twice as much as the amount emitted by cars -- Bush's turnaround was a godsend. Then in May, the administration announced an "energy plan" that openly championed coal, positioning it as America's favored source of electricity generation for decades to come.

To anyone who believes that technological progress moves in a straight line, this has been a weird turn of events. It's as if a wormhole opened in the cosmos and we slid back to the 1890's. Isn't this the dawn of the 21st century? Why are we burning rocks to charge our cell phones?

Even before the boom, coal-fired power plants still produced more than 50 percent of the electricity in America. And Big Coal may soon have an even bigger share: 22 new coal-powered plants have been proposed just in the last few months. The price of coal has more than doubled since February, while the stock prices of industry leaders like Arch and its rival, Peabody Energy, have shot up like dot-coms of yore.

Flush with cash, Big Coal is now working to wipe some of the soot off its image. The National Mining Association now refers to coal, which is formed from ancient plant matter, as "buried sunshine." One industry-financed advertisement features a kid standing on a pitcher's mound in a lighted stadium, alongside the slogan "Electricity from coal: Essential, affordable, increasingly clean." It's a deft phrase, considering that in 1999 American coal-fired utilities filled the air with 18 million tons of sulfur dioxide and nitrogen oxides, down from 21 million tons in 1990. (These chemicals are the major cause of acid rain.)

Part of the new spin on coal is that it's the engine behind the New Economy. Industry executives never tire of suggesting that, without coal, there would be no semiconductors, no Internet. The first time I talked to Bill Raney, the powerful president of the West Virginia Coal Association, he said, apropos of nothing, "Did you know that it takes more energy to charge up a Palm hand-held than it does to power a refrigerator for a month?" It turns out Raney's claim is a bit exaggerated; a Palm is roughly 1,500 times less power hungry than a refrigerator. But Big Coal loves such hyperbole. The West Virginia Coal Association's Web site boldly claims that "the process of ordering a book from Amazon.com uses about a half of a pound of coal" and that computers and the Internet suck up 13 percent of the electricity in America. In fact, the best studies suggest that such activities consume only 3 percent of the nation's electricity.

To Big Coal's critics, none of these exaggerations are surprising. "The coal industry has been telling lies for years," says Carolyn Johnson, staff director of the Citizens Coal Council, a Denver-based environmental group. The notion that coal is "increasingly clean" galls David Hawkins, director of the National Resources Defense Council's Climate Center. "When we tried to pass acid-rain legislation, the industry fought us every step of the way for 10 years," Hawkins says. "Now, because laws have forced sulfur-dioxide emissions to go down, they're crowing about it as if it were their accomplishment." To some, the sins of the coal industry go even deeper. "Coal is not only wrecking my state," cries Larry Gibson, a local activist whose ancestral home has been surrounded by mountaintop-mining operations. "It is wrecking the planet! How much longer are we going to let them get away with this?"

That's a question many people are asking, especially in the halls of Congress. A series of political battles is shaping up that will outwardly be about power-plant pollution and greenhouse gases but in fact will amount to a kind of character test for the coal industry. The captains of Big Coal want us to believe that they have turned over a new leaf, that the old days of black lung and billowing smokestacks and the wanton destruction of nature are over. They know that it's wise to adopt a public pose of reform. But now that the Bush administration has placed them at the head of America's energy table, Big Coal's top players are lobbying behind the scenes for a loosening of regulations. The stakes in this largely ignored battle are enormous -- not only for the coal industry, but also for anyone who cares about clean air and cheap electricity.

"This is an important moment for us," says Jack Gerard, president of the National Mining Association, the industry's main lobbying group. "We have to seize this opportunity and prove to the world that we are a new industry -- hopeful, open, technologically sophisticated and environmentally sensitive." It's going to be a big job.

The National Mining Association Building squats on a prime piece of real estate in Washington. The Mayflower Hotel, site of many power breakfasts and illicit rendezvous, is right across the street. The building itself, a square, solid box of black stone, was modeled on the headquarters of the National Rifle Association and looks as if it could withstand nuclear attack. Inside, it's freeze-framed from the 1970's, with harsh linoleum and steel doors. Jack Gerard's office on the top floor has a few power-politician touches, like a high-backed leather chair and a conference room off to one side. A watercolor of a mining operation -- imagine coal barges painted by a shopping-mall Monet -- hangs beside his desk. On the windowsill sits a toy bulldozer and excavator. There is an industrial frankness to it all; it's prespin America.

Gerard, 42, is friendly and warm, dressed in a crisply pressed white shirt and expensive loafers. He has salt-and-pepper hair, a manly handshake and a manner that's insistently familiar. "Excuse me, things have been a little chaotic around here," he says, dashing out to hand some papers to his assistant and double-check his afternoon schedule. A former high-powered political consultant and legislative director for Senator James McClure, Republican of Idaho, Gerard has been at this job for only about eight months, and you get the feeling that this new coal-fired life is even hotter than he expected. Earlier today, he had lunch with the owner of a Western coal company who is thinking about the feasibility of building a new coal-fired power plant in Wyoming and shipping the electricity to California; this afternoon, he says he has been "keeping tabs" on what's going on over in the House of Representatives, where the Commerce Committee is beginning to mark up an energy bill.

But Gerard, despite all the nagging details of his day, really has his eye on the big picture for the coal industry. And increasingly, that big picture is focused on a tiny section of the Clean Air Act called New Source Review, which prohibits power-plant operators from expanding old plants without also installing state-of-the-art pollution-control devices. Later this summer, the Bush administration may recommend the dismantling of New Source Review -- and Big Coal is doing everything it can to make that happen. While it sounds arcane, the conflict over New Source Review is in fact a profound challenge to Big Coal. If the regulations are upheld and enforced, satisfying their stringent environmental requirements could cost the industry billions of dollars. More important, executives worry that if the environmentalists win this battle, it could ultimately lead to a whole lot less coal being burned in the United States. And less coal burned means less coal mined, which is why Jack Gerard is concerned. "This is a big issue for us," he says frankly.

The roots of this conflict go back more than 25 years. When the Clean Air Act, which restricted pollution from smokestacks, was amended in 1977, utilities fought for and won an exemption for their aging power plants. The reasoning was that it would be too costly to upgrade older plants to meet the Clean Air Act's strict requirements and that the plants would be retired soon anyway. It didn't quite work that way. Many old belchers are still running full tilt. In the mid-90's, regulators suspected that many power-plant operators were evading the spirit, if not the letter, of the law by installing new parts that prolonged the lives of the old power plants while at the same time avoiding pollution upgrades. In 1999 and 2000, the Department of Justice, on behalf of the Environmental Protection Agency, filed suit against a total of 51 power plants, charging them with violating the Clean Air Act. A number of states, mostly in the Northeast, and various environmental groups piled on with lawsuits of their own. Currently, American Electric Power, one of the largest utilities in the country, is being sued not only by the E.P.A., but also by eight states and 17 environmental groups.

"The effect of all this litigation," Gerard tells me, "was to chill the industry. No one wanted to upgrade or maintain their power plants because they were afraid of getting sued." Meanwhile, Big Coal's aging power plants have cranked up the juice. Electricity from old, heavily-polluting coal-fired power plants rose 15.8 percent between 1992 and 1998, an increase big enough to power California for a year. In a single year, 1998, these old machines dumped 755,000 tons of nitrogen oxides into the atmosphere -- the same amount of smog-forming pollution emitted by 36 million cars. (Overall, the industry has increased its CO2 output by 20 percent since 1990.)

Although the details are complex, the larger issue at stake in the battle over New Source Review is straightforward: how long should these old power plants be allowed to continue spewing pollution with impunity? As some observers see it, the industry wants to delay reform indefinitely. "These utilities have a deliberate strategy in place," one industry consultant explains. "They're just going to keep running the plants as hard as they can while fighting the lawsuits in court. They know that eventually they will lose, but the longer they can drag it out, the more money they can make."

Last summer, Big Coal got a break from an unexpected front: California, a state that has long been anticoal. After the state's rolling blackouts hit, suddenly everyone was talking about power plants -- not how filthy they are but why there aren't more of them. Although California's troubles were in fact caused more by half-baked deregulation than any shortage of generating capacity (one recent study points out that the many blackouts occurred when demand was only 75 percent of available supply), it's much easier to cry for more power than it is to unravel the complex tangle of California energy politics. The White House's trumpeting of the energy crisis helped to feed the myth that America desperately needs additional sources of energy, clean or no.

To take advantage of this fortuitous turn of events, the National Coal Council, a federal advisory committee that critics claim is stacked with coal-industry representatives, cranked out a "white paper" about how to squeeze even more electricity out of those old power plants. Among the conclusions the report reached was that the E.P.A. lawsuits had a "direct and chilling effect" on the operation of the industry's coal-fired power plants.

The Coal Council's paper was delivered to Energy Secretary Spencer Abraham, who passed it to Vice-President Dick Cheney's energy task force. In May, when the White House unveiled its National Energy Policy, it was clear that Big Coal's message had been heard. In the plan, President Bush directed the E.P.A. and the Department of Energy to conduct a 90-day "review" of the impact of Clean Air Act regulations on utility-generation capacity. The report is due Aug. 17.

More important, Bush asked the Department of Justice to "review" all those pending E.P.A. lawsuits against coal-fired power plants. (A report is expected this fall.) To environmentalists, it was a disturbing example of politics interfering with law enforcement, as well as a blatant attack on the Clean Air Act. To Big Coal, it was sweet relief.

Gerard himself is definitely on the sweet-relief side. "I think the solution here is fairly simple," he tells me, leaning forward in his chair. "We need to go back to a pre-Clinton-administration interpretation of the law." As Gerard explains it, the Clinton administration in the mid-90's began wielding New Source Review as an ax against the coal industry. But Clinton wasn't actually the first to do so. The initial crackdown on these power-plant modifications came in 1988, under the Reagan administration. The question now is what changes, if any, the E.P.A. will recommend in the regulations on Aug. 17. Will the agency suggest that today's energy "crisis" can be resolved only by giving Big Coal some major concessions? Possibly. But Big Coal's dreams of turning back the clock to the "pre-Clinton" era were dealt a blow by the recent defection of Senator Jim Jeffords from the Republican Party. Jeffords's decision to become an independent not only threw the Senate to the Democrats but also gave him the chairmanship of the Senate Environment and Public Works Committee. This powerful position allows Jeffords, an ardent supporter of clean-air regulation, to effectively block any legislation that makes life easier for dirty-power-plant operators.

One measure of how much Jeffords's move has shifted the dynamic is that a mere two weeks after his announcement, eight power companies involved in New Source Review litigation announced that they had formed a lobbying group, the National Electric Reliability Coordinating Council. The group hired Haley Barbour, the former chairman of the Republican National Committee and a high-profile lobbyist, to help apply pressure in all the right places -- in particular, one assumes, the office of Christie Whitman, administrator of the Environmental Protection Agency.

As governor of New Jersey, Whitman was outspoken in her support of lawsuits to limit power-plant pollution; to move away from that position now won't be easy for her. "This review is not a back-door attempt to weaken Clean Air legislation," she says. "It's a serious attempt to clarify a very complex regulation." Whitman also points out that, while the review process is going on, the Department of Justice has not stopped enforcing the law. "We just reached a $20 million settlement with a major refinery, so we're moving ahead."

Although New Source Review is obviously a regulatory and political battle, it's also, in some dimension, a moral battle. Many clean-air advocates believe that the utilities have been getting away with this, and other flagrant abuses of the law, for too long. "If the administration rolls over on this, it will be a shortsighted, callous move and another example of the president's caving in to his friends in the energy industry," says Armand Cohen, executive director of the Clean Air Task Force, a Boston-based group. "We're ready to kick up a firestorm."

So can Big Coal be made to behave? Gerard, for his part, has been meeting privately with environmental leaders, trying to convince them that the industry is not the Big Bad Wolf. But he tells me that a little gratitude for what Big Coal has accomplished is in order. "What we're doing is good for the country," says Gerard. "Without coal, America wouldn't be what it is today."

Getting clearance to visit Hobet 21 required considerable negotiation. I knew it was Arch's showoff mine, the place where they hold open houses for the local community. But when I called Deck Slone, a spokesman for Arch, to ask for a tour, he politely declined, saying, "We're just too busy right now." Eventually Slone relented and set up a visit -- but only to the reclaimed area, not the active mining site.

My visit to see reclaimed land is led by Larry Emerson, the "environmental performance" official, and John McDaniel, an engineer. McDaniel is tall and lanky and spookily resembles Abe Lincoln, with high cheekbones and a sly smile. McDaniel is a third-generation miner and proud of it.

After a few minutes of chat at Hobet 21's bare-bones mining office, McDaniel, Emerson and I pile into McDaniel's truck. McDaniel pops a Black Sabbath disc out of the CD player so we can roll in pastoral silence across the open grassy fields. Parts of the land here are scrubby, like a reclaimed dump; older sections are more lush. We turn down a small dirt road, past small stands of black alder and Virginia pine, into a grove of young black locust trees. (Mining companies like locust trees because they suck up nitrogen, one of the problem gases released by coal-fueled power plants.) The grass here is waist high; wildflowers are blooming. A meadowlark sings from above. It's so pleasant, and so well constructed, that I half expect an animatronic deer to poke its head out of the woods.

"This was all reclaimed about seven years ago," Emerson explains. "As you can see, the wildlife is beginning to return. In some cases, the habitat is actually improved for many species." Emerson tells me that his wife is a horticulturist and that he lives on four acres of land with a pond stocked with catfish. "I won't tell you that we're improving on what God created," Emerson says. "But by opening more land, we're creating the building blocks for a growing ecosystem. We're also making this hilly terrain more suitable for commercial development."

We park on a high point overlooking a pond, and I'm getting comfortable with the view, starting to enjoy it. That's when I'm jarred by the sight, just over the ridge, of several 240-ton dump trucks grinding over the raw, dusty hills. Goodbye, eco-paradise.

CONTINUED IN PART 2

Vicki Hanna
Programming & Public Relations
JWR Foundation

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