The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Operator of Alaska's only coal mine expects new greenhouse gas standards; warns of unprecedented expansion of EPA authority
Environmental stewardship is "old hat" for the Usibelli Coal Mine near Healy, Alaska, Bartly Coiley told attendees at the Alaska Miners Association 2008 Annual Convention in Anchorage Nov. 7.
The family-owned company began reclamation at the mine in 1970, several years before it was subject to the rigorous requirements of the Surface Mining Control and Reclamation Act of 1977.
Being the operator of a coal mine as well as owner of the Aurora Energy coal-fired power plant in Fairbanks, Usibelli has a keen interest in environmental regulations surrounding coal-fired power generation and greenhouse emissions, which is the key issue facing the industry.
Cap-and-trade
Greenhouse gas emissions are expected to be regulated under a cap-and-trade program, said Coiley, who is environmental affairs manager for Usibelli Mine.
President-elect Barack Obama and the U.S. House Committee on Energy and Commerce both have cap-and-trade proposals on the table.
Coiley said Obama's plan, aimed at reducing greenhouse gas emissions by 80 percent by 2050, would implement an economy-wide cap-and-trade program. In his plan all emissions credits would need to be purchased from the government. The money raised would, according to Obama, "go to investments in a clean energy future, habitat protections, rebates and other transition relief for families," she said.
The president-elect also said his Department of Energy will enter into public-private partnerships to develop five first-of-a-kind commercial scale coal-fired plants with clean carbon capture and sequestration technology.
The House Energy and Commerce Committee proposal also targets reducing gas emissions up to 80 percent by 2050, and has many incentives and programs similar to Obama's plan. One of the key differences of the two plans is the House proposal would allocate some of the carbon credits, while additional credits required would then need to be purchased.
Administration of the cap-and-trade program is another issue that concerns the industry. The Obama plan would fall under the authority of the U.S. Environmental Protection Agency, whereas Congress would regulate its own plan.
"The big question right now is: Will Congress regulate (the program) or will EPA? If it is EPA, (the program will give the agency) unprecedented expansion of its authority," Coiley predicted. "How the carbon credits are allocated will have a magnified impact on Alaska's economy across all sectors, but particularly on natural resource development. Alaska's recent past experience on EPA-driven cap-and-trade programs provides a lesson. You may want to look to more of a congressionally developed program."
Technology rises to the demand
Because of technological advances over the past 30 years, the U.S. has lowered emissions by 33 percent, while coal use, at the same time, has tripled, Coiley said.
Coal power generation is projected to continue growing. In the United States, another 154 gigawatts of coal-generated power is expected by 2030. This growth is eclipsed by the addition of 100 gigawatts-per-year anticipated growth of coal-produced electricity in China.
Coiley told the audience that for every challenge that presents itself, technology in the United States develops a solution. Once new clean-coal technology is developed, it can be exported, creating economic opportunities for American businesses and providing environmental advantages to other countries.
Usibelli continues proactive role
The company that initiated reclamation activities nearly seven years before it was required by government continues to be proactive when it comes to environmental policy.
One of Usibelli's power-saving innovations is a load stabilizer system on the company's huge electric-powered dragline. When the 33-cubic-yard bucket is lowered from its 325-foot boom, a generator produces electricity, which is stored and then reused. This conserves energy as well as protects the electrical grid from surges during sudden increases in power demand by the giant machine.
To conserve energy, Usibelli also installed tailgates on its dump trucks. This allows the trucks, which are designed to carry heavier materials, to haul larger quantities of lighter coal. This translates into less fuel consumed per ton of coal hauled.
Coiley said the company is also installing a wind turbine to help provide the power needs of the mine.
Reclamation of the mine continues to be an important part of Usibelli's operations. Since 1970, the mine has reclaimed more than 5,500 acres and planted more than 250,000 seedlings. Over a period of years, native Alaska vegetation invades the area, returning the mined land lying at the foothills of the Alaska Range to its natural appearance.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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