Debate set for tomorrow on the Intrastate Coal and Use Act!

Tomorrow, May 21, Jim Waters, the President of the Bluegrass Institute, will take on Tom Fitzgerald, director of the Kentucky Resources Council, in a debate on the Intrastate Coal and Use Act!

WHAT: Debate on the Intrastate State Coal and Use Act, hosted by TACKLE

WHO: Jim Waters, President of the Bluegrass Institute, and Tom Fitzgerald, Director of Kentucky Resources Council

WHEN: Tuesday, May 21 from 6 to 8:45 PM

WHERE: Heeren Hall, 2nd floor of Cooke Hall, Southern Baptist Theological Seminary at 2825 Lexington Road, Louisville, KY 40206

The Intrastate Coal and Use Act is a piece of model legislation sponsored by the Bluegrass Institute and unanimously approved by the American Legislative Exchange Council’s Task Force on Energy and the Environment. If passed, the bill would protect Kentucky’s constitutional rights to regulate all internal commerce, specifically any coal mining operations in which the coal is mined, sold, and used exclusively within the borders of the commonwealth.

Such a law would push the EPA monkey off our backs for the one-third of Kentucky coal that stays within the borders of the commonwealth, allow for a more sensible and locally-driven environmental program, restore thousands of mining jobs, and protect our majestic wildlife and waterways.

So come on out tomorrow to this important discourse and voice your support for Kentucky’s constitutional rights!

Bluegrass Energy Report key evidence for this Tuesday’s upcoming debate.

Sens. Rand Paul and Mitch McConnell aren’t the only ones providing Kentuckians with the type of tools necessary to protect our energy sector from the EPA’s unilateral mandates – so is the Bluegrass Institute.kentucky energy equation

This coming Tuesday in Louisville, Jim Waters, President of the Bluegrass Institute will argue for the Intrastate Coal and Use Act, a bill which would guarantee to Kentuckians sovereignty over the one-third of all Kentucky coal that is mined, sold, and used exclusively within the borders of the commonwealth. Such commonsense and constitutional defenses are what we need in the commonwealth if we are to succeed in fending off the federal behemoth that is the EPA.

And we need these weapons now more than ever.

Last year alone, Kentuckians lost more than 4,000 coal mining jobs or 22 percent of mining employment. Eastern Kentucky and Appalachian miners were explicitly targeted by the EPA, and experienced a 30 percent decline in employment. Overall, mining production in the commonwealth was down by 91.4 million pounds.

No doubt, Jim Waters will reference a new report from the Bluegrass Institute that shows how – in no small part due to EPA regulation – energy prices are set to increase by 20 percent over the next ten years. These increases in energy costs will not only be a direct burden on Kentucky families, they’ll also chase business from the commonwealth, which relies so heavily on low energy and operating costs to lure industry to set up shop.

So come on out to 2825 Lexington Road in Louisville, KY at 6 PM to voice your support for the Intrastate Coal and Use Act.

News Alert: Bluegrass Institute energy report: EPA regulation proposals ‘redundant’

Bluegrass Energy Report 2013 Small
A new report by the Bluegrass Institute, Kentucky’s free-market think tank, assesses the effects of Environmental Protection Agency (EPA) regulations on the commonwealth’s economy.

2013 Bluegrass Energy Report: The EPA’s Economic Impact on Kentucky” discusses these regulations by:

  • identifying specific regulations that impact the commonwealth’s economy through higher energy costs and industry job loss
  • demonstrating the effects of these higher costs on the average Kentucky family
  • showing how the increased energy prices will affect the Bluegrass State’s overall economy through industry job loss, a decrease in the employment-growth rate and a decline in the growth of the State Domestic Product
  • investigating the extent to which environmental regulations specifically affecting Kentucky’s coal industry will reduce negative pollution externalities

One of the primary goals of these new EPA regulations is reducing the environmental impacts of the coal industry in Kentucky, particularly the contamination of waterways and the release of coal combustion residuals into the atmosphere.

However, as the report authors point out, many of these environmental harms already are addressed by existing regulations rendering recent EPA proposals redundant.

“This isn’t a matter of coal versus the environment,” said report author Philip Impellizzeri. “It’s rather a matter of which entity should weigh the costs and benefits of our energy sector to regulate it as effectively as possible: a federal bureaucracy in the EPA or the local citizens most affected by the outcomes?”

Kentucky’s energy sector provides a unique competitive advantage among states. Low energy costs – fueled primarily by coal – make the commonwealth an attractive manufacturing destination while also providing thousands of jobs in the coal industry.

Recent proposed EPA regulations threaten to have serious impact on Kentucky’s coal industry, including higher energy costs and significant numbers of jobs lost for Kentucky citizens.

“More than anything, I think the report shows how important coal is to all Kentuckians, not just those in Appalachia,” Impellizzeri said. “The EPA’s handling of our energy sector concerns all of us.”

For more information, contact Jim Waters at jwaters@freedomkentucky.com or (270) 782-2140.

Second piece of legislation introduced in as many weeks to protect Kentucky from EPA overreach

Last week, Sen. Rand Paul joined Mitch McConnell in coming to the aid of Kentuckians in our lopsided battle for a sensible environmental policy by introducing the Defense of Environment and Property Act.kentucky energy equation

This piece of legislation would provide a commonsense and definitive delineation for what makes a “navigable waterway,” a term which the EPA currently has unilateral power to define and enact mandates. For too long, the EPA has played fast and loose with what waterways it considers under its jurisdiction, even ruling that ephemeral streams temporarily formed by recent rainstorms are under its jurisdiction.

As a result of the EPA’s nonsensical notions for what makes a waterway “navigable,” the bloated federal bureaucracy has succeeded in blocking close to 40 mining permits and brought a halt to millions of dollars of economic activity in the commonwealth. Even private landowners whose property is wetted by snow-melt are not safe. If they want to build on their property, the EPA’s cronies are liable to come after them.

Kentuckians have had enough, and so has Sen. Rand Paul:

“Environmental protection must be balanced with the constitutional right to private property. I have spoken with several Americans who have fallen victim to the EPA and Army Corps’ aggressive breach of power. This act will restore common sense to the federal jurisdiction over navigable waters, place necessary limitations on out-of-control government agencies and protect our right to private property.”

This is the second piece of legislation sponsored by Kentucky senators in recent weeks designed to put some limits on EPA overreach  The first was Mitch McConnell’s Coal Jobs Protection Act.

Debate set for May 21 with state sovereignty over Kentucky’s energy sector on the line

On Tuesday, May 21, Jim Waters, the President of the Bluegrass Institute, will take on Tom Fitzgerald, director of the Kentucky Resources Council, in a debate over which entity is best equipped to oversee the costs and benefits of the commonwealth’s energy sector: mid-Atlantic bureaucrats at the EPA, or informed and concerned Kentucky citizens.

WHAT: Debate on the Intrastate State Coal and Use Act, hosted by TACKLE

WHO: Jim Waters, President of the Bluegrass Institute, and Tom Fitzgerald, Director of Kentucky Resources Council

WHEN: Tuesday, May 21 from 6 to 8:45 PM

WHERE: Heeren Hall, 2nd floor of Cooke Hall, Southern Baptist Theological Seminary at 2825 Lexington Road, Louisville, KY 40206

The Intrastate Coal and Use Act is a piece of model legislation sponsored by the Bluegrass Institute and unanimously approved by the American Legislative Exchange Council’s Task Force on Energy and the Environment. If passed, the bill would protect Kentucky’s constitutional rights to regulate all internal commerce, specifically any coal mining operations in which the coal is mined, sold, and used exclusively within the borders of the commonwealth.

Such a law would push the EPA monkey off our backs for the one-third of Kentucky coal that stays within the borders of the commonwealth, allow for a more sensible and locally-driven environmental program, restore thousands of mining jobs, and protect our majestic wildlife and waterways.

So come on out to this important discourse on May 21 and voice your support for Kentucky’s constitutional rights!

On eve of Big Sandy shut-down, Kentucky legislators act

One week prior to the Kentucky Public Service Commission’s hearing on Kentucky Power’s plan to retire more than 1,000 megawatts of power produced in the Big Sandy region of the commonwealth, Appalachian legislators like Sens. Rand Paul and Mitch McConnell have had enough. This week, they introduced the Coal Jobs Protection Act which would put actual limits on how long the EPA can do political waltzes, delay mining permits, and seriously impact much-needed Appalachian jobs.

kentucky energy equation

Another strong supporter of state sovereignty for Kentucky’s energy sector, Rep. Andy Barr, R-KY, drove the point home yesterday:

“This important legislation will expedite the current mine permitting process, under which many applications have languished for years, and bring much-needed certainty back to the coal mining industry. More certainty will allow our mines to expand production and reverse this trend of job losses, both in the coal mining industry and in industries in my district that depend on a healthy coal industry.

“Ultimately, the runaway regulations coming out of this Administration are the most significant impediments to job creation.  At a time when families are struggling to make ends meet and put food on the table, Congress must act to prevent the EPA from continuing to pursue its radical, job-killing agenda that is hurting the American people.”

Kentucky Power’s hearing will occur in Louisa, KY on May 14th, with two meetings via teleconference to follow on May 15th.

New bill would put actual constraints on the EPA’s unilateral power to block mining permits

At least one member of Congress has had enough of the yo-yo that is the technical legality of the Environmental Protection Agency’s manipulation of the Clean Water Act to crush Appalachia’s energy sector. As a result of recent appellate court decisions allowing the EPA to retroactively reverse mining permits already approved by the U.S. Army Corps of Engineers, Sen. Mitch McConnell announced this week that he will be introducing the Coal Jobs Protection Act in Congress.kentucky energy equation

The Coal Jobs Protection Act would  put actual constraints on the EPA’s power to reject mining permits by requiring the bureaucracy to make a decision on a mining permit within 270 days for mining operations that risk runoff, and 90 days for mining operations that involve clearing soil. Currently – and predictably – there is no timetable for how long the EPA can take to reject or approve a mining permit, resulting in business uncertainty, less business investment, and less desperately needed Appalachian jobs.

It seems the EPA would rather let permit applications wallow in no-man’s-land than actually take a stance on a mining operation and face the potential blow-back that would come with it. As Jim Waters, President of the Bluegrass Institute, recently put it, it’s about time for the EPA to “man up” by announcing a decision within a reasonable time-frame,  or shut up.

McConnell joins four of West Virginia’s five members of Congress to speak out publicly against the appellate court’s acquiescence to the EPA’s unilateral mandates. According to Sen. Joe Manchin, D-WV, “One agency grants a permit, another agency takes it away and business suffers in the end. The federal government should be an ally, not an adversary, in helping to strike a balance between protecting the environment and creating good American jobs.”

McConnell hammered the point home in his recent press conference:

“Just because [the current administration's war on coal] is undeclared doesn’t make it any harder to see. It’s apparent all around us…[The Coal Jobs Protection Act will] be our best ever weapon of defense to protect the thousands of jobs being targeted by this administration.”

The legal status of the EPA’s unilateral attacks continue to yo-yo

The yo-yo that is the technical legality of the Environmental Protection Agency’s manipulation of the Clean Water Act to crush Appalachia’s energy sector continues to spring up and down as two appellate courts have invalidated previous lower court decisions which ruled that the EPA had overstepped its bounds when it blocked mining permits approved by the U.S. Army Corps of Engineers years prior.kentucky energy equation

These most recent rulings from U.S. Courts of Appeals in both Cincinnati and Washington, D.C. once again put hundreds of mining jobs at risk and bring to a halt millions of dollars worth of economic activity. It also puts the kibosh on operations at Arch Coal’s Spruce Mine No. 1 in West Virginia, for a total of 2,300 acres worth of economic stagnation.

And according to Tom Fitzgerald, an environmental attorney in Louisville, the damage isn’t likely to stop here. There could be as many as 70 other mining permits soon targeted by the power recently returned to the EPA. Not good.

Now the cases will return to district courts where judges will decide not whether the feds have the power to overturn mining permits in general, but whether they did so “arbitrarily and capriciously” in these specific instances.

Still, though it took more than a year for appeal decisions to be handed down, the legal battle over which entities have jurisdiction over Kentucky’s energy sector is likely to rage on – with the commonwealth itself having a deflatingly small say in the matter. Just why is it that courts in Cincinnati or Washington, D.C., or federal bureaucracies in the mid-Atlantic get to decide how coal is mined, sold, and used in the commonwealth? Wouldn’t commonsense have those most affected by the pros and cons of Kentucky’s energy sector, Kentuckians, be the ones who decide the fate of Kentucky coal – not some far-away federal masters?

Kentuckians should be insulted with how little control we actually do have left, with how much control has been stolen from our hands and from the very land our most valuable resource is mined from.

 

Kentucky coal not-so-fun facts

Compared to 2011, 2012 saw Kentucky coal face some alarming set-backs:Kentucky Energy Equation

  • Total jobs lost, 4,028.
  • Mining employment, down 22 percent.
  • Underground mining employment, down 15.4 percent.
  • Surface mining employment, down 34.8 percent.
  • Eastern Kentucky mining employment, down 29.9 percent.
  • Total production was 91.4 million tons, down 16.3 percent.
  • Eastern Kentucky production, down 27.6 percent.

Though eastern Kentucky’s coal fields suffered significant losses in 2012, western Kentucky’s productive outlook was not nearly as dire:

  • Western Kentucky mining employment, no change.
  • Western Kentucky production, up 2.5 percent.

The reason for the discrepancy between the productive performance of Kentucky’s western and eastern coal fields last year is that, after decades of mining, Appalachian coal has become increasingly difficult to extract. Further, now that most power plants have installed scrubbers and other emission deterrents, western Kentucky coal – which contains a higher sulfur content – is now economically viable.

But the over-arching reasons for the downturn in Kentucky’s energy sector last year are simple: increasingly stringent EPA regulations are making the rise of natural gas and the fall of coal permanent. What’s worse, the EPA has specifically targeted eastern Kentucky’s coal fields to block mining permits and bring a halt to millions of dollars of economic activity.

No wonder eastern Kentucky was his so hard in 2012.

 

Kentucky legislator meets with EPA’s southeast branch

As Gina McCarthy begins her term as top bureaucrat at the Environmental Protection Agency, Kentuckians are hoping for an attitude check from the EPA – one more open to the tremendous benefits of Kentucky coal and the commonwealth’s energy sector.Toward that end, Rep. Leslie Combs, D-Pikeville, recently met with one of the EPA’s numerous regional administrators who presides over Kentucky and the southeast U.S., Gwendolyn Keyes Fleming.Kentucky Energy Equation

Though Rep. Combs reports that the Keyes Fleming “was very open and I thought very receptive to a lot of the things we were suggesting,” forecasts for the EPA’s stance on Kentucky’s energy sector have yet to change.

And that’s precisely why Combs organized the meeting: “My intent was obviously (to address) the immediate situation of ‘Could you lighten up?’ — because it has really taken a toll on the economy and the job market.”

That may be the understatement of the year thus far, seeing as how Kentucky Power recently announced a plan that could spell the end of coal-generated electricity in the Big Sandy region of the commonwealth. In large part due to forecasts for the effects of the EPA’s newest draconian regulations, Kentucky Power announced not only the closure of its older Unit 1 generator and the nearly 300 megawatts of power production, it also announced plans to shutter its newer Unit 2 generator – which produces a whopping 750 megawatts of power.

Though no final plans have been announced for making up that kind of power in the region, what is set in stone is the loss of the 500 coal-related jobs which Kentucky Power was responsible for. Add that to the more than 4,000 coal-related Kentucky jobs lost last year, or 22 percent of the mining workforce, and eastern Kentucky may about to enter panic mode.