Daily Environment Report: News Archive > 2016 > February > 02/05/2016 > News > Climate Regulation: 

Heitkamp Sees Way Forward for ‘Polarized' Coal Issue 

 

24 DEN A-8 

Climate Regulation 

Heitkamp Sees Way Forward for ‘Polarized' Coal Issue 

BNA Snapshot 

Future of Coal in U.S. 

Key Development: Sen. Heitkamp says there is a future for coal in the U.S. if groups can move beyond polarization on the issue and 

embrace new technologies. 

What's Next: Encouraging the development of clean coal technologies is her number one legislative priority, Heitkamp says. 

By Anthony Adragna

Feb. 4 — There is a strong future role for coal in the U.S. energy sector but only if industry groups and environmental advocates move 

past the extreme polarization surrounding the fuel, Sen. Heidi Heitkamp (D-N.D.) said Feb. 4. 

The approach by coal and mining groups to treat current industry struggles as a mere political problem are “wrong-headed” and have 

“led to bankruptcy” for some, Heitkamp said. Similarly, the “hell no” philosophy of others to reject coal as a viable fuel source isn't 

realistic, and the idea that there is no concerted effort to eliminate coal from the nation's fuel supply is “not true,” the North Dakota 

Democrat said. 

Instead of either approach, the U.S. should embrace new technologies, such as carbon capture and sequestration, that would allow the 

continued burning of coal with low-carbon emissions, Heitkamp said at an event hosted by the Global Carbon Capture and Sequestration 

(CCS) Institute. Encouraging the deployment of such technologies is her number one legislative priority, she said. 

“I believe there is such a thing as clean coal,” Heitkamp said. “I think I'm the only person in town who does. I believe that there is a 

future for coal and there must be a future for coal.” 

Heitkamp said she would continue to lead the fight for congressional support of carbon capture and sequestration. She has introduced a 

series of bills over the last several years meant to boost the technology's prospects (94 DEN A-7, 5/15/15). 

Carbon capture and sequestration technologies have gained attention in recent years as one way to ensure a continued role for coal going 

forward in the U.S. Most notably, the Environmental Protection Agency effectively required partial use of the technology as part of its 

carbon dioxide limits for new and modified power plants (RIN 2060-AQ91). 

Challenges Expected for Early Plants 

One of the chief challenges for the technology has been cost. Mississippi Power Co. said Feb. 3 the cost of its Kemper County, Miss., 

plant, which will be the first-of-its-kind clean coal plant, would rise to at least $6.6 billion after requiring an additional $142 million to 

complete. 

Heitkamp said the high costs and initial struggles of early plants weren't surprising and shouldn't deter policymakers from supporting the 

technology. 

“Are these initial plants going to experience some hiccups, some startup problems and some inefficiencies? Well, yes,” she said. 

Meeting global goals for combatting climate change will hinge on the adequate development and use of technologies like carbon capture 

and sequestration in rapidly industrializing countries like China and India, Heitkamp said. Major environmental champions, like Sen. 

Sheldon Whitehouse (D-R.I.), are increasingly interested in such innovation, because they recognize it will be needed for the global 

response to climate change. 

“This technology has to be developed by developed countries,” Heitkamp said. “And it has to be deployed and accessible.” 

‘Starting to Awaken.’ 

Julio Friedmann, principal deputy assistant secretary for the Office of Fossil Energy in the Department of Energy, said the department is 

preparing to increase the number of pilot projects on carbon capture and sequestration to fuel additional growth and development in the 

technology. 

“The U.S. is starting to awaken on this technology pathway and recognize its importance,” Friedmann said. “We couldn't be more 

pleased and proud of that.” 

Friedmann said the Energy Department would continue to seek “new ways of working together to increase the impact of CCS, in terms 

of global emissions reductions” at a North American Energy Ministers meeting Feb. 11-12 in Winnipeg, Canada. 

Group Pushes Lawmakers 

Separately Feb. 3, a broad range of entities urged the top Democrat and Republican on the House Ways and Means Committee to extend 

a tax credit (26 U.S.C. §45Q) for carbon capture and sequestration technologies. 

“Section 45Q provides a per ton tax credit for the storage of carbon dioxide through the use of enhanced oil recovery and is the most 

important benefit in the tax code for incentivizing carbon capture and utilization and storage at power plants and industrial facilities,” the 

letter said. 

Signatories of the letter included Occidental Petroleum Corp., Peabody Energy Corp., the Natural Resources Defense Council, Archer 

Daniels Midland Co. and the Clean Air Task Force, among others. 

According to the letter, Rep. Mike Conway (R-Texas) plans to introduce legislation that would “provide for a necessary per ton increase 

in the value of the tax credit and make it permanent.” 

To contact the reporter on this story: Anthony Adragna in Washington at aadragna@bna.com

To contact the editor responsible for this story: Larry Pearl at lpearl@bna.com