E Coal Fleet e impact of regulations on existing plants - e EPA's Proposed "Clean Power Plant Rule" Why Coal Needs to Leverage Social Media Today
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ISSUE 2 2014
Economic, Abundant/Secure and Environmentally Sound
The EPA’s Proposed “Clean
Power Plant Rule” The Coal Fleet
Why Coal Needs to Leverage The impact of regulations
on existing plants
Social Media Today
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contents ISSUE 2 2014
DEPARTMENTS
2 Editor’s Note
8 CoalBuzz
11 Message from the ACC President
14 Fast Facts about Coal
15 Message from the ACC CEO
19 Membership Benefits/Membership Coupon
40 20 ACC Champion, Patron and
Advocate Sponsors
20 ACC Event Dates
21 ACC Vision and Mission Statement
21 ACC 2014 Board of Directors
FEATURES 23 ACC Member Companies
48
23 Benefits of Attending ACC Events
Speculation-Based
25 Tomorrow’s Leadership Council
Regulation is Wrong
Benefit claims from CO2 reduction 26 ACC Webcasts
are not supportable 27 ACC Committee Updates
52
King Coal’s Obituary:
Hold Off Writing That for
168 Years (At Least) SPOTLIGHTS
An industry in transition, coal holds
28
steady while aiming to remain profitable Enhancing Coal Fleet Efficiency:
Why New Source Review Matters
56 The War on Coal: Punishing Current rules could result in higher
national emissions, continued degradation
Native Americans
of production for existing plants
Federal regulations hinder tribes’
abilities to capitalize on needed
34
economic opportunities Direct Hit
Expected impacts of the EPA’s
60
Proposed “Clean Power Plan Rule”
Trampling on Coal
on the American coal industry
Country Families
Obama administration actions and
EPA regulation are having serious
negative impacts on working
families and the coal industry
40 Why Coal Needs to Leverage
Social Media Today
The importance of harnessing the
power of online advocacy
67 Europe’s Love Affair with
COVER PHOTO: ©ISTOCK.COM/PESKYMONKEY
Coal – Will it Last? ON THE COVER
ABOVE: TWIN DESIGN/SHUTTERSTOCK
Technology development, political
Enhancing Coal
priorities poised to keep coal in
Fleet Efficiency:
the long-term energy mix
Why New Source
Review Matters
72 Paying Attention to the Man
Behind the EPA Curtain
A look at the far-reaching connections
See page 28
in the anti-coal movement
ACCLive.com | Issue 2 2014 | American Coal 1
editor’s note
Published for:
Jason Hayes, Editor-in-Chief,
American Coal Magazine
and Associate Director,
1101 Pennsylvania Ave. N.W., Suite 600
American Coal Council
Washington, DC 20004
Tel: 202-756-4540
No Great
Fax: 202-756-7323
www.americancoalcouncil.org
Editor-in-Chief
Improvement Could
Jason Hayes
ACC Editorial Review Board
Daniel Checki, Alliant Energy
Carolyn Evans, Norfolk Southern
Trygve Gaalaas, Hawk Consulting
Jason Hayes, American Coal Council
Possibly Go Forward
Kirk Landry, Florida Marine Transporters
Beth Sutton, Peabody Energy
… Great injury results from unstable government. The want of con-
Published by: fidence in the public councils damps every useful undertaking, the
success and profit of which may depend on a continuance of existing
arrangements. What prudent merchant will hazard his fortunes in any
new branch of commerce when he knows not but that his plans may
140 Broadway, 46th Floor
New York, NY 10005 be rendered unlawful before they can be executed? … In a word, no
Toll-free: 866-953-2189 great improvement or laudable enterprise can go forward which re-
Toll-free Fax: 877-565-8557
quires the auspices of a steady system of national policy.
President, Jeff Lester
– James Madison, Federalist No. 62 [February 27, 1788]
Vice President & Publisher, Sean Davis
M
EDITORIAL
Editorial Director, Jill Harris adison’s words cut to the core of our current energy poli-
Managing Editor, Kristy Rydz cy issues. His assertion that unstable government causes
DANIEL WILSON/SHUTTERSTOCK.COM
ADVERTISING great injury is extended with his very reasonable query.
Sales Director, Danny Macaluso He asks whether any prudent business will invest in new ideas, technolo-
Quinn Bogusky, Walter Lytwyn, gies or ventures if they cannot tell whether those ideas and technologies
Louise Peterson, Blair Sidorow
will tomorrow be considered illegal or contrary to some new rule or regula-
DESIGN & LAYOUT tion – just like any one of the over 80,000 pages of new regulations signed
Art Director, Myles O’Reilly into existence in 2013.
Crystal Carrette, Jessica Landry, CONTINUED ON PAGE 4
John Lyttle, Gayl Punzalan
© 2014 American Coal Council. All rights
reserved. The contents of this publication may
not be reproduced by any means, in whole or in
part, without the prior written consent of the ACC.
Disclaimer: The opinions expressed by the
authors of the articles contained in American Coal
magazine are those of the respective authors and
do not necessarily represent the opinion of the
American Coal Council or its member companies.
Printed in Canada.
Please recycle where facilities exist.
2 American Coal | Issue 2 2014 | ACCLive.com
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The longer that I work in energy most frigid hours of the polar vortex, regulation has been reasonable, put
and policy and the more I see of the keeps people cool during the most in- forth in an orderly fashion and based
machinations of government, the tense summer heat waves, and that in science and economic reality, the
more the phrase “there’s nothing new keeps American industry moving and coal industry has been able to address
under the sun” hits home. Although effective. Furthermore, we do so with it and meet its requirements.
he could not possibly have known an ever-increasing level of cleanliness Our record is proven by our abili-
what the American energy indus- and efficiency. Despite that amazing ty to reduce emissions of three major
try would be facing two and a quar- record, our industry continues to en- pollutants associated with coal-fueled
ter centuries after he penned those dure a seemingly endless wave of leg- electricity – nitrogen oxide (NOX), sul-
words in Federalist No. 62, Madison’s islative and regulatory assaults from fur oxide (SOX) and particulate mat-
words still apply directly to our situa- elected officials, federal regulators ter – by approximately 90 percent
tion today. and “green” special interests. per megawatt hour produced from
The American coal industry is a re- The people in the American coal 1970 to 2012. We continue to reduce
silient and innovative group of pro- industry are also reasonable and, as our other emissions – like mercury
fessionals that produces an amazing a consequence, we tend to want to – and are also working on efficiency
product – affordable, abundant, reli- “play nice” wherever possible. We programs and technologies like car-
able, domestic energy. We produce want to get along and do whatever bon capture and storage (CCS) to
a product that is absolutely essential we can to be seen as team players in address carbon dioxide (CO2) emis-
in the everyday lives of all Americans the policy arena. In the past, when we sions. Our history demonstrates that
and billions of others around the world. have faced a new course of regulation, we are quite willing and able to work
We produce a product that keeps peo- there has always been some shifting with reasonable regulations and rea-
ple alive when they are in the hospi- and reorganizing, yes, and even some sonable timelines. There is no rea-
tal, keeps people warm during the grumbling. However, where that son to expect that there would be any
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4 American Coal | Issue 2 2014 | ACCLive.com
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difference in addressing public con- As Janet Gellici’s spotlight article respond to regulatory overreach and
cerns over CO2 emissions. in this issue notes, the New Source our industry’s critics.
What is happening in Washington Review (NSR) process is also adding While we have made an honest ef-
today, however, is not reasonable, to the burden by erecting a proactive fort, the space does not exist in a sin-
nor is it orderly and it is most cer- and aggressive hindrance to the util- gle issue of American Coal magazine
tainly not based in either scientific ity industry’s attempts to improve the to list the many additional examples
or economic reality. What is happen- efficiency of its existing coal-fueled of confrontational, anti-coal regula-
ing in Washington is an unreason- plants. Rather than ensuring plants tions and their impacts on our em-
able imposition of increasingly strict become more efficient – the osten- ployees and co-workers, as well as our
regulations without any apparent re- sible aim of the NSR rule – this rule nation’s economy. As we show in this
gard for the impacts of those regu- makes it economically and logistically issue, it is eminently reasonable to
lations on system stability, the cost impossible to complete important ef- ask how we can be expected to pro-
of electricity and/or the impacts on ficiency upgrades on coal plants. This vide abundant, affordable and reliable
American jobs. rule forces plant operators to retain energy in the face of increasingly ex-
For example, we have watched over older, less efficient equipment and treme and arbitrary regulation that is
the past few years as Environmental stops the deployment of newer, more clearly targeted against our industry.
Protection Agency (EPA) action as- efficient technologies. We opened this message with
serted radical new powers to retroac- I discuss another example of new Madison’s thoughts. It’s appropriate
tively revoke Section 404 of the Clean regulations hindering economic activ that we close with his thoughts as well:
Water Act (CWA) permits. Incredibly, ity and development in my article … the most deplorable effect
that new power was upheld by a July about the new EPA’s Clean Power of all is that diminution of at-
11, 2014 U.S. Court of Appeals rul- Plan, their proposed rule for existing tachment and reverence which
ing, meaning that many American coal plants. In that same theme, a fur- steals into the hearts of the peo-
businesses could now see approved ther example exists in the EPA’s pro- ple, towards a political system
Section 404 permits revoked, even posed greenhouse gas (GHG) rule for which betrays so many marks of
after engaging in extended process- new plants, which mandates untest- infirmity and disappoints so ma-
es to have those permits approved. ed and unproven CCS technologies in ny of their flattering hopes. No
In layman’s terms, “one day you have the construction of any new coal plant. government, any more than an
the permit, the next day you don’t.” In his article, David Wojick takes individual, will long be respect-
You just won’t be able to tell when, readers through a regulatory impact ed without being truly respect-
where or why that may be the case analysis as he attempts to clear away able; nor be truly respectable,
anymore. the smokescreen surrounding new without possessing a certain
That process will soon become regulations. Jane Genova follows by portion of order and stability.
even more arbitrary, burdensome and tackling the question of coal’s viabil- It’s time to return coal to its prop-
expensive should the EPA be suc- ity, while Terry Anderson with the er role as the respected and trusted
cessful in its attempts to expand its Property and Environment Research foundation of our energy system and
jurisdiction with its proposed Waters Center (PERC) analyzes the punish- to return regulation to its proper and
of the U.S. rule. This new rule would ing impacts of the war on coal across reasonable role of establishing realis-
see the EPA claim jurisdiction over Native American communities. Paul tic limits and protections. It’s time to
nearly every ephemeral stream, ditch, Driessen describes how this admin- return government to its proper role
dugout and wet area in the country. istration and EPA policies are tram- of setting policy, instead of picking
The key to claiming this jurisdiction pling coal country families down. winners and losers. We’re confident
would be whether the EPA feels there Then, Dr. Sean Dessureault provides that we will help get things started
is a sufficient level of ecological “con- some hope for readers with informa- in that direction with this issue of
nectivity” from a wet area to a more tion on how our industry can use da- American Coal.
substantial body of water.1 ta warehousing and social media to Welcome! u
Reference
1. Fox News. “Will EPA water grab tip US back into a recession?” Retrieved August 19, 2014 from
6 American Coal | Issue 2 2014 | ACCLive.com http://www.foxnews.com/opinion/2014/04/18/will-epa-water-grab-tip-us-back-into-recession/.
coalbuzz
THE HIDDEN “PERSUADERS” OF THE
ENVIRONMENTALIST ELITE
facebook.com/AmericanCoal
Left-wing billionaires direct and control the environmentalist movement – and
your lives.
America’s Big Green environmental agenda is set by elite foundations that
decide which activists get the money.
twitter.com/AmericanCoal
– coalblog.org
ANOTHER LOOK: SOLAR ENERGY’S IMPACT ON BIRDS
linkedin.com/company/ Marlo Lewis from the Competitive Enterprise Institute describes a recent drive
american-coal-council past the Ivanpah Solar Generation facility. The short version of his post is that
solar is still far more expensive than other forms of energy and has its own list of
environmental impacts that it must begin to address before it can even begin to
claim that it can compete with coal, gas, nuclear or other energy sources.
– coalblog.org
americancoalcouncil.org
GREENPEACE CAMPAIGNS AGAINST
LEGO AND HUMANITY
For those who might have missed it, the folks at Greenpeace have taken up arms
coalblog.org against Lego. Yes, Lego, the much loved children’s toy.
… People running Greenpeace must be confused – or dishonest hypocrites. I am
arguing the later … because they know full well that Lego’s products are made
of plastic, a petroleum derivative. Greenpeace pays lip service to loving a chil-
acclive.com
dren’s toy manufacturer and to caring about our children inheriting the Earth,
because it doesn’t want to reveal its true goal: preserving the planet as an end in
itself, not for any human use.
– coalblog.org
SOMETHING TO DO SOMETHING TO READ SOMETHING TO REMEMBER
Coal Trading Conference Smaller Faster “The best way to protect the environ-
Dec. 8-9, 2014 Lighter Denser ment is to get richer. Wealthy
Marriott Marquis, Cheaper: How countries can afford to protect the en-
New York City, N.Y. Innovation Keeps vironment. Poor ones generally can’t.”
Proving the – Smaller Faster Lighter Denser
Spring Coal Forum Catastrophists Cheaper: How Innovation Keeps
March 3-5, 2015 Wrong Proving the Catastrophists
Sandpearl Resort,
By: Robert Bryce Wrong, Robert Bryce, 2014
Clearwater Beach, FL
8 American Coal | Issue 2 2014 | ACCLive.comNorwest is a leading international mining, energy, and
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10 American Coal | Issue 2 2014 | ACCLive.comfrom the president
Danny Gray, P.E., ACC 2014 President
and Executive Vice President,
Charah, Inc.
What Difference Does Our
Advocacy Effort Make?
The American Coal Council industry that are used to support to have access to the basic facts
(ACC) stays active on a variety of education, infrastructure projects about coal. The most recent rounds
fronts, working hard to educate the and other important government of Environmental Protection Agency
public, media, government and oth- functions. We also work to reverse (EPA) regulation are an indication of
ers about the value of coal to our the error and misrepresentation of this reality as numerous industry, pol-
nation’s energy supply. We part- extreme anti-coal groups and pro- icy and economic experts are against
ner with other like-minded organi- vide reasoned input into an increas- the proposed regulations and clearly
zations to explain the importance ingly extreme regulatory process. state that their costs will far outweigh
of reliable and affordable elec- Coal works for America and we, at their claimed benefits. Additionally,
tricity that coal provides and the ACC, work for coal. the EPA’s new source performance
800,000-plus direct and indirect This work is essential, as many standards for greenhouse gas emis-
jobs provided by coal, the billions elected officials, regulators and those sions from coal-fueled plants actually
in taxes and royalties paid by our in the general public don’t appear mandate carbon capture and storage
It’s not surprising that coal use
continues to grow, as it is one
of the world’s most – if not the
most – affordable energy options.
VINOGRADOV ILLYA/SHUTTERSTOCK
ACCLive.com | Issue 2 2014 | American Coal 11Energy Association report that coal
provides over 40 percent of the
world’s electricity and that global
coal consumption grew by 60 per-
cent (four percent annually) from
2000 to 2012. Looking forward, coal
consumption is predicted to rise at
an average rate of 1.3 percent an-
nually, growing “from 147 quadril-
lion Btu in 2010 to 180 quadrillion
Btu in 2020 and 220 quadrillion Btu
in 2040.”2
Clean coal technologies
make coal cleaner,
more efficient
It’s not surprising that coal use con-
SOURCE: EIA, 2014 – WORLD COAL CONSUMPTION BY REGION 1980-2040 tinues to grow, as it is one of the
world’s most – if not the most – af-
(CCS) technologies, despite the fact Coal use is growing fordable energy options. It is al-
that they are not yet technically or around the world so widely distributed around the
economically capable of being com- The media and environmental in- planet, easy to access and its use
mercially deployed. To address these dustry made much of the downturn to provide energy is very well un-
and many other issues, the ACC has in the use of coal in 2012. However, derstood. Furthermore, improved
submitted verbal and written com- coal’s return to most of the markets technologies are making coal a far
ments to the EPA and has spoken to in which it had declined was not cleaner and far more efficient ener-
elected officials and the media, trying quite so well reported. According to gy resource.
to set the record straight. industry sources, coal experienced An October 2013 Energy Ventures
While our industry has experi- a large upswing in use in early 2014 Analysis (EVA) report estimated
enced setbacks, there are many and its use across the planet con- that by 2012, the U.S. power indus-
reasons to believe that our advoca- tinues to grow rapidly. U.S. Energy try had invested over $110 billion
cy efforts are having an impact on Information Administration (EIA) re- in emissions controls on operating
public opinions and the views of ports predict that coal production coal-fueled power plants.3 Not sur-
elected officials. I’ll discuss three in the U.S. will grow from 20.6 qua- prisingly, those investments are pay-
main reasons in this message. First, drillion Btu in 2012 to 22.6 quadril- ing off. The coal industry has seen
coal use continues to grow. Second, lion Btu in 2040.1 While growth is an approximately 90 percent reduc-
clean coal technologies have made constrained by extreme regulation tion in emissions of nitrogen oxides,
coal-fueled energy much more ef- and continuing pressure from natu- sulfur dioxide and particulate matter
ficient and have led to massive ral gas, the American coal industry per kilowatt-hour of electricity pro-
reductions in the emissions associ- is (once again) expected to remain duced since 1970. As we have said
ated with the use of coal possible. viable and strong through the next in previous media reports, if any oth-
Third, a growing list of organiza- several decades. Additionally, de- er industry had managed to reduce
tions is joining with the ACC and mand for coal-fueled energy around its emissions by 90 percent, govern-
pro-coal groups to openly advocate the world is expected to continue to ment, the media and green groups
for the continued (or increased) use grow rapidly as well. Both the World would be doing cartwheels in the
of coal. Coal Association and International streets.
12 American Coal | Issue 2 2014 | ACCLive.comMany people and groups recognize the fact that
coal-fueled electricity supports much of this
nation’s economic and industrial well-being.
Clean Coal Technologies Improve Air Quality
support that coal is receiving as an
essential energy source. The contin-
ued activities of the ACC, along with
other partners, like the Women’s
Mining Coalition, National Mining
Association, American Coalition
for Clean Coal Electricity, Coal
Trading Association, American Coal
Ash Association, Coal Utilization
Research Council, Underground
Coal Gasification Association, Rocky
Mountain Coal Mining Institute and
others, indicate strong, continued
SOURCE: USDA 2013, EIA 2013
support for coal as well.
Of course our industry has no plans groups recognize the fact that coal- Our involvement with many like-
to rest on its laurels. The EVA study fueled electricity supports much of minded organizations and the
noted above also notes that, by 2016, this nation’s economic and industrial growing move to support coal and
the coal industry will invest a further well-being. A diverse list of support- coal-fueled electricity demonstrates
$35 billion in emissions reduction ers from the political right and left, that our industry’s efforts are pay-
technologies, meaning further emis- energy sectors, mining, manufac- ing off. While it can be frustrating to
sions reductions and more efficient turing, labor unions, transportation, repeatedly address and debunk the
energy production will be the norm agriculture, chambers of commerce, misrepresentations and confusion
for our industry. construction, the marine sector, tex- promoted by the anti-coal special in-
tiles and others have openly recog- terest groups, the provision of afford-
Support for coal nized the importance of domestic able, abundant, reliable and clean
continues to grow energy production and ensuring that electricity is too valuable a goal to
As the industry continues to in- greenhouse gas regulations do not give up. We will continue to work for
vest in efficiency improvements and harm the American economy.4 coal to ensure coal continues to work
emissions reductions, and also con- Formation of groups supporting a for America.
tinues to provide hundreds of thou- true “all of the above” energy policy, Please be sure to join us in our work
sands of jobs, support for the use of such as the Partnership for a Better to educate and advocate for coal as
coal continues to grow rapidly and on Energy Future, CoalBlue and Friends one of our most abundant, affordable
a variety of fronts. Many people and of Coal, speak loudly to the growing and reliable energy resources. u
References
1. Energy Information Administration. Retrieved August 18, 2014 from http://www.eia.gov/forecasts/aeo/MT_coal.cfm?src=Coal-b5
2. EIA. Retrieved August 18, 2014 from http://www.eia.gov/forecasts/ieo/coal.cfm
3. Energy Ventures Analysis, Inc. Retrieved from http://americaspower.org/sites/default/files/EVA_Emission_Control_Oct_2013.pdf August 18, 2014.
4. http://www.betterenergyfuture.org/about/
ACCLive.com | Issue 2 2014 | American Coal 13fast facts
Green industry claim about coal ash
American coal plants produce over 100 million tons of “coal ash pol-
lution” every year. Coal ash is the leftover after combustion, which
contains many toxic chemicals and heavy metals like mercu-
ry, lead, selenium and arsenic. The millions of tons of coal ash
that are produced every year are typically deposited in open
pits where, over time, those toxic heavy metals can leach
FAST FACTS into groundwater supplies. If coal ash isn’t left in those
ponds, it is re-used in building products, like concrete
ABOUT COAL and wallboard, where it can break down, exposing
people to these dangerous chemicals.
Coal ash reality:
Be sure to match this second edition of Coal ash is, chemically, very similar to the dirt in
Fast Facts up with the version in the previous your back yard. So, is your back yard “toxic”?
edition of American Coal magazine to bolster Research has shown that, while coal combus-
your knowledge about coal. tion residuals (CCR), like coal ash, do contain
trace amounts of heavy metals, so does the dirt
We’re producing these Fast Facts resources to
in your back yard. More so, it’s found to contain
help you help your friends, family, associates,
about the same amounts. The technical way to
etc. better understand the value of coal in their
describe this is:
everyday lives. As we noted in the last issue, they
“With few exceptions constituent concentra-
are here to provide you that one useful fact or
statistic that demonstrates how coal is a valuable tions (of heavy metals) in coal ash are below
energy resource, which provides an essential screening levels for residential soils and are
supply of affordable, abundant/secure, reliable, similar in concentration to background U.S.
clean electricity. soils.” (American Coal, Issue 2, 2012 pg. 38)
In fact, after conducting numerous studies, the
When discussing coal with friends, family, or
Environmental Protection Agency (EPA) stated in
a stranger on the street, you will often hear
1978, 1993 and 2000 that coal ash did not need to be
talking points that have been created by
regulated as a hazardous waste. In 2006, the EPA stated
the green industry to justify their multi-
that mercury in coal ash was unlikely to be leached at lev-
million dollar smear campaigns. In each
issue we’ll consider a few of their el of environmental concern. (www.coalashfacts.org).
claims and then clear up the record Furthermore, earlier this year, the EPA “encouraged” the
with some easy to remember beneficial use (recycling) of coal ash in building products like
facts. In this issue, we’ll provide concrete, grout and wallboard as a valuable means of replacing
FRNSYS/SHUTTERSTOCK
you with a few fast facts and conserving “virgin raw materials.” The EPA’s website goes on
about coal combustion to state that recycling CCRs “can produce positive environmental,
residuals or coal ash. economic and performance benefits.”
(EPA, www.epa.gov/osw/conserve/imr/ccps/benfuse.htm) u
14 American Coal | Issue 2 2014 | ACCLive.comfrom the ceo
Betsy Monseu,
Chief Executive Officer,
American Coal Council
Leadership and Energy...
Energy and Leadership
It’s been a busy spring and summer for the staff of the public hearing in February. I submitted more extensive
American Coal Council (ACC). I find it hard to believe that written comments on behalf of the ACC to the EPA in May
I’ve been leading the ACC for well over a year now. There addressing the lack of benefits of a unilateral approach by
have been many opportunities to engage with our mem- the U.S. on carbon emissions, the detrimental economic
bers, leadership of other coal and energy industry asso- and jobs impacts of the proposed rule and the rule’s man-
ciations, elected officials and their staffs, public interest date for the use of carbon capture and storage (CCS) tech-
groups and media. Coal continues to confront an array of nology. A few weeks later in June, the EPA proposed its
issues, from weak markets to regulatory mandates to po- existing plant rule under Section 111(d), using an unprece-
litical impediments. dented “outside-the-fence-line” approach to reducing car-
The ACC has been increasingly active in the regula- bon via ramping up natural gas generation, stabilizing the
tory arena, with particular focus on the Environmental nuclear fleet, increasing renewables and decreasing elec-
Protection Agency (EPA)’s new carbon emissions rules for tricity demand through energy efficiency programs. The
the electric generation sector. Following the EPA’s Clean contribution of the coal fleet in achieving the state-based
Air Act Section 111(b) proposed rule for new fossil plants carbon targets is a designated six percent efficiency gain,
issued in January, I testified at the EPA’s Washington, D.C. which appears to be overly optimistic on the EPA’s part. I
We simply cannot afford – literally – to proceed down a
path that is so limiting to our energy future in America and
that offers so little in terms of true global leadership.
MIKHAIL MISHCHENKO/SHUTTERSTOCK
ACCLive.com | Issue 2 2014 | American Coal 15testified at the EPA’s Washington, D.C. hearing on the ex- Air Act Section 111(b) and (d) carbon emissions rules will
isting plant rule on July 30, asking the EPA to withdraw or inhibit clean coal technology advancement. Furthermore,
significantly revise this unworkable rule to avoid the eco- they will not meaningfully impact global CO2 levels. How
nomic harm, job loss, heavy administrative burden and is that a benefit to the U.S. or to others? Truly, this would
lack of benefits of proceeding. I also suggested a series of be all pain for no gain. We’ve only to look to Australia,
actions for the EPA to take, including holding additional which offers the most recent carbon case study – and a
hearings in coal states, extending the 120-day comment compelling one at that. Its carbon tax was repealed in
period by at least 60 days and increasing their engage- July with estimates that it had cost the economy $8.5 bil-
ment with states and with other agencies including the lion annually and increased electricity costs to families by
Federal Energy Regulatory Commission (FERC), the North over $500 per year.
American Electric Reliability Corporation (NERC) and the It’s time to take a step back and engage in a practi-
U.S. Department of Energy (DOE). cal, realistic assessment of our energy policy objectives.
The ACC has offered Advocacy Alerts to inform and ed- We simply cannot afford – literally – to proceed down a
ucate stakeholders about opportunities to weigh in with path that is so limiting to our energy future in America
comments to the EPA. We have encouraged those who and that offers so little in terms of true global leadership.
receive our alerts to discuss the critical importance of coal If we do, we forego not only the chance to lead on climate
to continue the successes of the past in providing reli- but to lead on global energy solutions that will facilitate
able, affordable electricity for American consumers, busi- eradicating energy poverty. Coal will be the primary fuel
nesses and manufacturers. Only by retaining coal in our for global electrification for the same reasons it has sup-
generation mix and providing for the ability to build new ported economic growth and prosperity in the U.S. – it’s
coal units can fuel diversity and security, as well as effec- abundant, affordable and reliable. We have the opportu-
tive and competitive markets be assured. I encourage you nity to exhibit American technology and the innovative
to weigh in with your Congressional representatives and spirit that’s recognized around the world. We have the op-
local elected officials as well. portunity to:
That the “Clean Power Plan” is so named is frankly a • Collaborate globally on energy objectives, including
disservice to our industry. It disregards the remarkable eradicating energy poverty
technological progress that has been made in reducing • Promote U.S. policy supporting fuel choice and diversity
coal-fueled power plant emissions by nearly 90 percent • Advance U.S. development of cost-effective coal tech-
since 1970, while maintaining the twin goals of electric- nology – THE critical path to global adoption
ity reliability and affordability for Americans. Both Clean That would be energy leadership. u
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Has Benefits
The ACC represents the coal industry from the-hole-
in-the-ground to the plug-in-the-wall. Our members
include coal suppliers, coal consumers, coal transportation
companies, coal traders and coal support service firms
operating in the U.S., Canada and South America. The ACC
has over 170 member companies. No other association in
our industry represents as diverse a membership base.
Why join the ACC
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As a member of the ACC you’ll benefit from premier educational programming,
broad-based, high-level networking, energy advocacy, policy input and enhanced industry
visibility. Along with a suite of ACC events and publications, you’ll also see the benefits of frequent
member communications and business referrals. Additionally, ACC programs, committee memberships
and activities provide opportunities for members to advance their professional skills, keep current
on emerging trends and industry developments, gain experience and make new contacts.
membership coupon
Join more than 170 companies that
recognize the importance of belonging Please send me
membership information!
to an association that serves as the pre-
eminent business voice of the American
coal industry and advocates for coal
as an economic, abundant/secure and
Name_______________________________________________________________
environmentally sound fuel source.
The American Coal Council (ACC) Title_________________________________________________________________
is an alliance of coal, utility, trading,
transportation, terminal and coal support Company____________________________________________________________
service companies, advocating a non-
adversarial, partnering approach to Address_____________________________________________________________
business.
The ACC facilitates the lawful exchange City_________________________ State_____________Zip____________________
of ideas and information regarding the
American coal industry. It serves as an Phone________________________ Fax___________________________________
essential resource for companies that
mine, sell, trade, transport or consume Email________________________________________________________________
American coal. The ACC also serves as a
resource for those wishing to expand or
enhance business relationships in North Email, Mail or Fax to: American Coal Council – info@americancoalcouncil.org
American and international coal markets. 1101 Pennsylvania Ave. N.W., Suite 600 • Washington, D.C. 20004 • Fax: 202-756-7323
ACCLive.com | Issue 2 2014 | American Coal 192014 CHAMPION SPONSORS
George Duggan Chris Smyrniotis Doug Evans Marc Rademacher
Group Vice President, VP Fuel Chem. Director Coal Vice President Western Operations
Coal Marketing Development Marketing – Utility 4665 Paris St., B-200
PO Box 961051 27601 Bella Vista Pkwy. 5165 Campus Drive, Denver, CO 80239-3117
Ft. Worth, TX 76131-2830 Warrenville, IL 60555 Ste. 300 www.us.sgs.com/coal
www.bnsf.com www.ftek.com Plymouth Meeting, PA 19462 Phone: 303-373-4772
Phone: 817-867-6253 Phone: 630-845-4500 Ph: 610-832-1955
Anne Tor Rob Hardman Doug Glass
Marketing Associate Director Coal Services Vice President and General Manager
One SNL Plz. 600 North 18th St., – Energy
Charlottesville, VA 22902 14N-8162 1400 Douglas St.
www.snl.com Birmingham, AL 35291 Omaha, NE 68179
Phone: 434-951-6911 Ph: 205-257-7727 www.up.com
Phone: 402-544-5678
2014 ADVOCATE SPONSORS
Michael Durham, Ph.D. Ross Allen Ann Forte Global Coal Sales Group
President & COO Vice President, Business Product Marketing Manager, Global Don Drabant
9135 S. Ridgeline Blvd., Ste. 200 Development Coal and Electricity President
Highlands Ranch, CO 80129 1012 14th St. NW Ste. 1500 10225 Westmoor Dr., Suite 325 41 S. High St.
www.adaes.com Washington, D.C. 20005 Westminster, CO 80021 Columbus, OH 43215
Phone: 303-734-1727 www.argusmedia.com www.platts.com Ph: 614-221-0101
202-775-0240 Ph: 720-548-5479
events SAVE THE
D AT E S
Coal Trading Spring Coal Forum
Conference March 3 – 5, 2015
Dec. 8 – 9, 2014 Sandpearl Resort
Marriott Marquis Clearwater Beach, FL
New York City, N.Y.
In conjunction with the Coal
Trading Association
Please refer to www.americancoalcouncil.org or call 202-756-4540
for additional dates and registration information on our events schedule.
20 American Coal | Issue 2 2014 | ACCLive.comACC 2014
Board of Directors
PRESIDENT TRANSPORTATION
Danny Gray Donna Cerwonka
Executive Vice President Asst. Vice President Utility South Coal
Charah, Inc (2011–2013) CSX Transportation (2014–2016)
IMMEDIATE PAST PRESIDENT Doug Evans
Doug Glass Director Coal Marketing Utility
Vice President & General Norfolk Southern Corp. (2012–2014)
Vision Manager Energy,
Union Pacific (2010–2014)
Dan Speck
COO
Statement COAL SUPPLIERS
Ambre Energy (2013–2015)
ACC VP of Transportation
ACC advances the power, Don Drabant
the promise & the pride of President, ENERGY TRADERS
Global Sales Group (2013–2015) Ginny Farrow
America’s coal industry.
ACC VP of Coal Suppliers Portfolio Director Coal
Mike Siebers Commodity & Trans
Group Executive Sales & Marketing NRG Energy (2012–2014)
Peabody Energy (2013–2015) Matt Schicke
B. Scott Spears Managing Director Americas
President Coal Trading
White Oak Resources, LLC (2014–2016) Mercuria Energy Trading (2013–2015)
ACC VP of Energy Traders
Mission COAL CONSUMERS
COAL SUPPORT SERVICES
Statement Rick Boyd
Sr. Manager Fuel Operations Pat Akers
Dominion Generation (2012–2014) Vice President, Surface Mining
American Coal Council (ACC) Norwest Corporation (2014–2016)
ACC VP Coal Consumers
provides relevant educational
Robert Hardman, PE Doug Gagnon
programs, market intelligence, Key Account Manager
Director Coal Services,
advocacy support and peer- Southern Company (2013–2015) Fuel Tech (2012–2014)
to-peer networking forums ACC President-elect 2015 ACC VP of Coal Support Services
to advance members’ & ACC Treasurer, ACC HR &
Compensation Committee Chair
EXECUTIVE STAFF
commercial and professional Betsy Monseu, CEO
development interests. H. Craig Romer American Coal Council
Director Fuel Supply Operations
ACC represents the collective Xcel Energy (2014–2016)
interests of the American
Michael Shinn
coal industry – from the General Manager of
hole-in-the-ground to the plug- Coal & Oil Procurement
in-the-wall – in advocating SCANA Corp (2012–2014)
for coal as an economic,
abundant and environmentally
sound fuel source.
ACC serves as an essential Thank You, Editorial Board
resource for industry, policy Daniel Checki, Alliant Energy
makers and public interest Carolyn Evans, Norfolk Southern
groups. The Association Trygve Gaalaas, Hawk Consulting
supports activities and Jason Hayes, American Coal Council
objectives that advance Kirk Landry, Florida Marine Transporters
coal supply, consumption, Beth Sutton, Peabody Energy
transportation and trading.
ACCLive.com | Issue 2 2014 | American Coal 21Can’t get replacement valves when you need them from other
manufacturers? Can’t wait ten weeks or more for replacement valves?
Tired of paying high prices for valve replacements? Need a valve now?
Lexair can ship valves to you in about two weeks depending upon
quantity required! We can replace any competitor’s valve on virtually
any brand or type of coal or aggregate car that has been built in the
past forty-five years.
Second Generation Valve Features:
• Main valve element is based on our rugged “sliding shoe” construction – the same trouble-free design that has been used in our railcar
valves for over two decades.
• A sequenced mechanical lock maintains the valve in the “door close” position regardless of outside forces or vibration.
• The locking feature is released only when an electrical or manual signal to shift has been received.
• A visual indicator is operated via the lock mechanism that clearly shows whether the valve is in the “door close” position with the valve element
locked in place or if the valve is in the unlocked or “door open” position.
• Because they are mechanically locked in the “door close” position, the valves may be mounted in any position or orientation - the valve element
does not have to be perpendicular to the rails.
• The units can easily be modified so that they can be linked to ECP Brake Systems in the future for communication of valve position status.
• The modular design allows the main valve unit to be removed/replaced in minutes without disturbing the electrical connection or plumbing
when repair due to age or service conditions becomes necessary.
• Self closing solenoid cover/junction box can be locked to prevent unauthorized access to manual overrides.
• Our patented “Safety Check” technology (U.S. Patents 7,093,455 and 7,328,661) is available as a “no-charge” option.
• Innovative lock/indicator features latest Lexair, Inc. technology (U.S. Patents 8,038,231 and 8,256,850).
Typical Before Installation Photos Typical After Installation Photos
Website: www.lexairinc.com E-mail: jjennings@lexairinc.com Ph: 859-255-5001 Fax: 859-255-6656American Coal Council
Member Companies
ADA-ES, Inc. Converse and Company, Inc. KCBX Terminals Company Richwood
Advanced Emissions Crounse Corporation Kiewit Mining Group, Inc. River Trading Company, Ltd.
Solutions, Inc. Crown Products & Services, Inc. Kinder Morgan Terminals Robindale Energy Services, Inc.
AEP River Operations, LLC CSX Transportation King’s Mountain Energy, LLC Rocky Mountain Electrical League
AKJ Industries Dayton Power & Light Co. Kirby Ocean Transport Company RWE Trading Americas Inc.
Alliance Coal, LLC Dominion Generation Koch Carbon, LLC The Saint Consulting Group
Alpha Coal Sales Co., LLC Drummond Company, Inc. Kopper Glo Mining, LLC Salt River Project
Alliant Energy DTE Energy – DTE Electric LGE-KU Services Co. Sampling Associates International
ALSTOM Power Performance Company
Luminant Energy Sandy Creek Energy Station
Projects Duke Energy
Marquette Transportation Savage Services Corporation
Ambre Energy NA Inc. Dynegy Company SCANA Corporation
Ameren Corporation Energy & Mineral Law Society Martin Engineering SCH Terminal Co., Inc.
American Coal Ash Association Enserco – Twin Eagle McGuireWoods LLP SGS North America Inc.
American Coal Foundation Entergy Corporation Mercuria Energy Trading, Inc. Slover & Loftus LLP
American Coalition for Clean Environmental Energy Metro Ports
Coal Electricity (ACCCE) Services, Inc. SNL Energy
MidAmerican Energy Company Southern Company
American Commercial Lines Ernst & Young
Midwest Industrial Supply, Inc. Standard Laboratories, Inc.
American Electric Power Evansville Western Railway, Inc.
MinTech Enterprises LLC Synthetic Materials, LLC
Arch Coal Sales Company, Inc. Express Marine, Inc.
Mitsubishi International T. Parker Host, Inc.
Argus Media, Inc. Faculty of Agriculture, Corporation
Arizona Public Service Company Annamalai University Tampa Electric Company
Montana Rail Link, Inc.
Armstrong Energy, Inc. Ferrocarril Mexicano TECO Coal Corp.
MRT, a CEMEX Company
ASGCO – Complete Conveyor FirstEnergy Generation Corp. Trafigura AG
Murray Energy Corporation
Solutions First Union Rail (A Wells UCG Association
Fargo Company) Neumann Systems Group
Associated Terminals LLC UNC Charlotte
Florida Marine Transporters NexGen Coal Services, Ltd.
Baker, Donelson, Bearman, Union Pacific Railroad Company
Caldwell & Berkowitz, PC Foresight Coal Sales, LLC Norfolk Southern Corporation
United Bulk Terminals USA, Inc.
Biogenic Reagents Forge Group North America Norwest Corporation
University of Kentucky – Center
Black & Veatch FreightCar America Novinda Corporation for Applied Energy Res.
Blackhawk Mining, LLC Fuel Tech, Inc. NRG Energy, Inc. University of North Dakota, Energy &
BNSF Railway Genscape/Institutional Investors Nucor Corporation Environmental Research Center
Boral Material Technologies LLC Glencore Ltd. Oak Energy, LLC Usibelli Coal Mine, Inc.
Bowie Resource Partners, LLC Global Coal Sales Group, LLC Omaha Public Power District We Energies
Buchanan Ingersoll & Rooney PC Global Commerce Forum Osho Coal LLC Westar Energy
Canadian National (CN) Golder Associates Inc. Oxford Mining Company, Inc. West Virginia University
Patriot Coal Corporation National Research Center
Canal Barge Company, Inc. Great River Energy for Coal & Energy
Cargill, Incorporated Hallador Energy Company Peabody Energy
Western Research Institute
Central Coal Company Headwaters Incorporated Pickands Mather Coal
Company, LLC Westmoreland Coal Company
Charah, Inc. Hellerworx, Inc. Westshore Terminals
Platte River Power Authority
Clean Coal Solutions, LLC Holcim (US) Inc./ Holcim White Energy Coal North
(Canada) Inc. Platts, a Division of the McGraw-
Cloud Peak Energy Hill Companies America, Inc.
Coal Association of Canada Holland & Hart LLP White Oak Resources, LLC
Power Plant Management
Coal Marketing Company Ingram Barge Company Services, LLC Wisconsin Public Service
(USA) Inc. Integrity Coal Sales, Inc. PPL EnergyPlus, LLC Corporation
Coal Utilization Research Council Interlake Steamship Company PricewaterhouseCoopers LLP Wood Mackenzie Inc.
CONSOL John T. Boyd Company Pricelock, Inc. Wyoming Policy Institute
Cook Coal Terminal/AEP Joy Global, Inc. Public Service Company Xcel Energy
Cooper/Consolidated Kansas City Southern Railroad of New Mexico Xcoal Energy & Resources
ACC Events: ACC events are widely recognized as
an essential means of maintaining up-
to-date industry and policy knowledge,
A Key Industry as well as high-level networks. Our
event agendas are packed with timely,
Resource
critical marketplace and public policy
issues, detailed operations updates,
cutting edge management techniques,
and – of course – expert speakers.
Attending an ACC event plugs
you into your industry.
ACCLive.com | Issue 2 2014 | American Coal 23© 2014 EYGM Limited. All Rights Reserved. EYG no. ER0142. ED None.
The remoteness of a
market isn’t measured
in miles, it’s measured
in knowledge.
EY’s Global Mining & Metals
network. Managing your
opportunities and investments
ey.com/miningandmetalstomorrow’s leadership council
Building and Educating Future
Coal Industry Leaders
T he ACC’s Tomorrow’s Leadership Council
(TLC) program began in 2009 as a means of
helping to bring in, vest and advance new ex-
ecutive talent in the coal industry. Since its inception, the
annual program has “graduated” over 60 executives who
have greatly extended their professional skills and net-
works throughout the industry.
Participants in TLC have been uniform in their praise of
the program, noting that it was a great educational pro-
PRESSMASTER/SHUTTERSTOCK
gram that allowed them to build an extensive network of
peers, associates and friends throughout the industry.
TLC provides a meaningful opportunity for up-and-
coming executives to enhance their industry knowledge
and networks through projects and activities that
advance industry-wide objectives as well as professional
development goals.
The 2014 TLC project has researched how our If you’re new to the industry or are early in your coal in-
industry can “change the narrative” on coal. As we dustry career, you’d be a perfect fit for the ACC’s TLC
wrap up this year’s project, we will put together a program.
final document that our member companies can use If you relish the thought of taking an active role in the
to address the pressures and challenges facing our future of your industry, we’d encourage you sign on
industry. The document will review four key areas for a 12-month commitment. TLC is a close-knit commu-
where our industry can work to educate elected officials, nity of more than 60 ACC member company “graduates”
regulators and the general public on the value of using representing the spectrum of the coal industry. As part of
coal as an energy resource. Those four areas include: the TLC community, you will have the opportunity to build
your:
1. Understanding coal as a means of human development
• Research and project management skills
2. The environmental issues associated with using coal
• Business and industry experience
and how those issues are being addressed • Professional networks and industry contacts
3. The economic value of coal • Leadership skills, through focused training and semi-
4. The Environmental Protection Agency (EPA) and en- nars at key industry events
vironmental industry’s actions against coal Get involved and help build your industry. Improve your
Past projects have included: knowledge, skills and career prospects. Gain the respect
2013 – C oal 2040: The Future of Coal – Where will coal be and recognition of your industry colleagues. u
in 25 years?
2012 – C oal: The Fuel for America’s Future – A list of the
benefits of coal-fueled electricity, debunking anti-
coal myths and a path forward for coal Sign up for Tomorrow’s
2011 – S ocial Media for the Coal Industry – Making social Leadership Council today!
media work for our industry For more information on TLC, please visit the ACC
2010 – C oal Unplugged – Coal is used to produce much website (www.americancoalcouncil.org). You may also
more than electricity contact Jason Hayes, the ACC’s associate director, at
2009 – Coal Fundamentals: An Overview of Coal Supply, 202-756-4540 or jhayes@americancoalcouncil.org.
Consumption & Transportation
ACCLive.com | Issue 2 2014 | American Coal 25webcasts
ACC Webcasts
The ACC’s Coal Q&A Program is a monthly web- • The murky legal waters surrounding international cli-
cast, which provides a forum to address critical issues mate agreements
affecting the U.S. coal industry – including coal pro- • The implications of the EPA’s greenhouse gas and
ducers, consumers and transporters. Each program
ozone regulations on partnerships and energy policy
begins with a topic briefing by a leading industry an-
alyst, expert or representative, followed by a moderat-
Looking forward, we plan to hear more on clean coal
ed Q&A session.
technologies in November and have the Tomorrow’s
Throughout 2014, our webcast presentations have
covered a wide range of content, including: Leadership Council wrap up the year with their report
on their annual project that considers how our industry
• A look at the value of the existing coal fleet to our na-
can “Change the Narrative” on coal.
tion’s energy supply
Be sure to check out the ACC website
• The lack of transparency at the Environmental
(www.americancoalcouncil.org) to stay up-to-date on
Protection Agency (EPA) and questionable tactics un-
our conferences and webcasts. u
derpinning their growing list of anti-coal regulations
Calvert City Terminal
Bulk material handling solutions
-SCH Services’ flagship coal terminal
-Located at Tennessee River Mile Marker 14.5
-Annual throughput capacity: 12 million tons
-Direct access to six major railroads & three
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FRT
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NEW
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Four Rivers Terminal NEW
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-Located in Paducah, KY at the confluence of
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-Rail to barge rapid transfer facility
-Annual throughput capacity: 10 million tons
SCH Ser vices, LLC www.sch-ces.com
SCH Services, LLC
SCH Services, LLC is a high-energy group of companies, focused on providing efficient and cost-effective coal handling for coal producers,
utilities and other consumers. Combined with our affiliated engineering company, Cornette Engineering Services,
the SCH Services team has over 100 years of experience in materials handling from the coal mine to the power plant bunker.
EPC
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PROCURE
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E-mail: sales@sch-ces.com SCH Services, LLC is an EPC company Phone: 270-643-8113/270-643-8101
26 American Coal | Issue 2 2014 | ACCLive.comYou can also read
