The Battle for PRB Coal Plants WIA Spring Meeting March 28, 2019 - - PowerPoint PPT Presentation

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The Battle for PRB Coal Plants WIA Spring Meeting March 28, 2019 - - PowerPoint PPT Presentation

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The Battle for PRB Coal Plants WIA Spring Meeting March 28, 2019 Randy Eminger Executive Director Energy Policy Network Cold Hard Facts - 2018 Positive Negative 15 plants have closed Wyoming sold 296 mmt 27 more announced coal

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SLIDE 1

The Battle for PRB Coal Plants

WIA Spring Meeting

March 28, 2019 Randy Eminger Executive Director Energy Policy Network

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SLIDE 2

Cold Hard Facts - 2018

Positive

  • Wyoming sold 296 mmt

coal

  • 133 power plants
  • 27 states

Negative

  • 15 plants have closed
  • 27 more announced

closure (next 5 yrs)

  • Representing 46 mmt
  • f PRB coal
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SLIDE 3

Cold Hard Facts

15 27 91 Retired in 2018 Retiring in next 5 Years No Announced Retirement

PRB COAL CONSUMING POWER PLANTS IN 2018

Source: DOE EIA & EVA Research (No. of Plants) 9.5 36.5 250.0 Retired in 2018 Retiring in next 5 Years No Announced Retirement

PRB COAL CONSUMPTION IN 2018

Source: DOE EIA & EVA Research (million tons)

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SLIDE 4

Mission

  • Stop early closure of coal-fueled power plants
  • Represent strictly Powder River Basin
  • Coal-consuming states (Midwest & South)
  • Operate strictly off of donations
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SLIDE 5

Out Funded

  • Total $168 million since 2011
  • Tom Steyer, George Soros,

(Rockefeller, Heinz, foundations)

  • Estimated contributions in

2018 - $72 million Michael Bloomberg $64 million check to ‘Beyond Coal’ campaign

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SLIDE 6

Battle in the Trenches

  • Build broad-based coalition

(instate)

  • Conduct economic research
  • Hire the right regulatory team

(attorneys, experts)

  • Intervene in regulatory

proceedings

  • Litigate if necessary
  • Engage media/grassroots

campaign

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SLIDE 7

Oklahoma Action Plan

Supporting Closure

Sierra club Wind industry Natural gas industry Closure Date – Jan. 1 2019

Coalition

Electric Coops Large Industrial Railroads Consumer Groups 617 emails and 248 direct phone calls

2.6 MMT PRB Coal 13 Year Life Extension

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SLIDE 8

Battleground Arkansas (2017-18)

White Bluff – 1,657 MW Independence – 1,678 MW

Obama EPA denies State Plan and issued a Regional Haze FIP Require Scrubbers on all four units (Estimated cost $2 billion)

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SLIDE 9

Odds Against Us

Sue & Settle

Entergy negotiates with Sierra Club for a settlement

Close White Bluff in 2024 Close Independence in 2025

Opposition

Entergy (electric utility) Obama EPA Environmental Groups (Sierra Club, EDF, Earth Justice)

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SLIDE 10

Arkansas Action Plan

Coalition

Steel industry, Ark. Large Industry, Ark. Gas Consumers, Pulp and Paper, Tyson Foods, Lion Oil, Coal Industry

Activation

Governor, Attorney General, ADEQ Economic Research Legal briefs and intervention

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SLIDE 11

Three Key Wins

1) Ark. DEQ issue new SIP

Scrubbers not needed Low-Sulfur coal meets Regional Haze standard

2) 8th Circuit Court case withdrawn 3) Retirement moved out

White Bluff – 2028 (plus 4 years) Independence – 2040 (plus 14 years)

8.5 MMT PRB Coal 18 Year Life Extension

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SLIDE 12

Louisiana Action (2018)

Sierra Club

Sues Entergy (Nelson Plant) over Regional Haze Add scrubbers or close in 2025

EPN Action

Worked with LDEQ (Low-sulfur coal = BART) LDEQ adopts ‘Low-sulfur coal’ standard EPA approves LDEQ SIP

1.5 MMT PRB Coal 9 Year Life Extension

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SLIDE 13

Indiana Battleground (2019)

NIPSCO

Close Shahfer and Michigan City plants (Shahfer - 2023) (Michigan City - 2028) CCR/ELG regulations Replace with Wind & Solar

Opposition

Sierra Club NAACP Electric utility 5 largest Industrials

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SLIDE 14

EPN’s Battle Plan

Build a Coalition

(Labor Unions, Georgia Pacific, Jasper County Commission, Power Plant Suppliers)

PR and Grassroots

Public testimony (March 11) Letters to the Governor Earned media (LTE’s)

Intervention

Both the IRP and Rate Case April 16-18

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SLIDE 15

A Win Would Mean

Added Life Shahfer 14 (5 years) Shahfer 15 (5 years) Michigan City (6 years) 16 years Must Offer to Sell Follows WY (SF 159) NIPSCO required to purchase electricity

Additional PRB Sales 15.3 mmt

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SLIDE 16

Benefits to Power River Basin

Power Plant Coal Sales - mmt (annual) Life Extended (yrs) Future Sales - mmt Sooner Station 2.6 13 33.8 White Bluff 4.3 4 17.2 Independence 4.2 14 58.8 Nelson 1.5 9 13.5 Total 12.6 40 123.3

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SLIDE 17

Tax Revenue to the State

State Severance Tax (7% of the taxable value) Federal Mineral Royalty (12.5% of sales price) (WY share – 48%) Gross Proceeds Tax (County mills - 7%

  • f taxable value)

Abandoned Mine Lands (30.5 cents/ton – WY receives 50%) Total (Annual) $9,702,000.00 $8,316,000.00 $9,702,000.00 $21,136,500.00 $48,856,500.00

Added Annual Tax Revenue (est.) - $48,856,500.00 Total Tax Benefit over Extended Life - $478,155,750.00

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SLIDE 18

Randy Eminger Executive Director reminger@tepn.org Energypolicynetwork.org