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WILKES-BARRE — U.S. Rep. Dan Meuser Friday introduced legislation that would incentivize environmentally focused cleanup and remediation of coal refuse piles across Pennsylvania.
H.R. 4735 — the Mine Affected Community Energy and Environment Act — would create a federal performance-based tax credit (PTC) for coal refuse-fired power plants that generate electricity through the removal and remediation of the coal refuse found on abandoned mine lands.
“Since being elected to Congress, finding a way to lead and incentivize a performance-based cleanup of coal refuse-affected communities has been a top priority for me,” said Meuser, R-Dallas. “This legislation is environmentally friendly and addresses the energy needs of families and businesses throughout the 9th District.”
U.S. Rep. Matt Cartwright, D-Moosic, joined Meuser in the effort.
“Fixing our local environment begins with cleaning up coal refuse dumps,” Cartwright said. “For too long, communities throughout our region have had to live with these coal refuse piles polluting their air and water while inhibiting economic development, and this bill is an important step in getting rid of these hazards.”
According to information provided by Meuser’s office:
• There are currently more than 220 million tons of coal refuse, also known as waste coal, culm, boney, gob, and other names, in Pennsylvania, covering more than 8,300 acres.
• These Pennsylvania power plants have removed more than 225 million tons of such refuse, leading to the improvement or restoration of 1,200 miles of stream and reclamation of 7,200 acres of abandoned mine lands.
• The state Department of Environmental Protection estimates that, in Pennsylvania alone, the cost to remediate the known coal refuse piles would be at least $2 billion if left to the Commonwealth or the federal government.
Meuser said market and regulatory challenges, including low-cost natural gas supply from the Marcellus Shale formation, subsidies to other forms of generation, and other regulatory and policy initiatives, have adversely altered the economics of the industry. He said in recent years, wholesale energy prices have often been below the break-even point required for coal refuse reclamation to energy plants to simply recover their cost of production.
The mismatch between revenue and costs, Meuser said, has led to the closure or conversion of several Pennsylvania plants, and the seasonal idling or threatened closure of others, resulting in a significant decline in annual cleanup benefits in Pennsylvania. Meuser added, that the current economics of the industry are unsustainable, and without some intervention, will lead to further plant closures and a permanent loss of their public benefits to the Commonwealth of Pennsylvania and to the nation.
Without these critical efforts, the coal refuse piles will continue to plague the communities of Pennsylvania, with uncontrolled water and air pollution, fires, and risks to human health and safety,” he said.
Of the 16 existing coal refuse plants in the United States, 12 are located in Pennsylvania, supporting a total of more than 3,000 full-time jobs and an annual economic impact of $615 million to Pennsylvania alone.