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

Heitkamp Sees Way Forward for ‘Polarized' Coal Issu e

24 DEN A-8 Climate Regulation Heitkamp Sees Way Forward for ‘Polarized' Coal Issu e 

## BNA Snapshot

Future of Coal in U.S. Key Development: Sen. Heitkamp says there is a future for coal in th e U.S. if groups can move beyond polarization on th e issue and embrace new technologies.

What's Next: Encouraging the development of clean coal technolog ies is her number one legislative priority, Heitkam p 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 cur rent industry struggles as a mere political problem are “wrong-headed” and have “led to bankruptcy” for some, Heitkamp said. Simila rly, the “hell no” philosophy of others to reject c oal 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 sup ply is “not true,” the North Dakota

Democrat said. Instead of either approach, the U.S. should embrace new technologies, such as carbon capture and seque stration, that would allow the continued burning of coal with low-carbon emissions , Heitkamp said at an event hosted by the Global Ca rbon Capture and Sequestration (CCS) Institute. Encouraging the deployment of such technologies is her number one legislative priorit y, she said. “I believe there is such a thing as clean coal,” He itkamp said. “I think I'm the only person in town w ho 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 seq uestration. She has introduced a series of bills over the last several years meant t o 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 ensu re 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 pl ants (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 cos t of its Kemper County, Miss., plant, which will be the first-of-its-kind clean co al 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 de ter policymakers from supporting the technology. “Are these initial plants going to experience some hiccups, some startup problems and some inefficienc ies? Well, yes,” she said. Meeting global goals for combatting climate change w ill hinge on the adequate development and use of te chnologies like carbon capture and sequestration in rapidly industrializing countr ies like China and India, Heitkamp said. Major envir onmental champions, like Sen. Sheldon Whitehouse (D-R.I.), are increasingly inter ested 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 c ountries,” Heitkamp said. “And it has to be deploye d and accessible.” ‘Starting to Awaken.’ Julio Friedmann, principal deputy assistant secreta ry for the Office of Fossil Energy in the Departmen t of Energy, said the department is preparing to increase the number of pilot projects on carbon capture and sequestration to fuel additio nal growth and development in the technology. “The U.S. is starting to awaken on this technology pathway and recognize its importance,” Friedmann sa id. “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, Ca nada. Group Pushes Lawmakers Separately Feb. 3, a broad range of entities urged the top Democrat and Republican on the House Ways a nd Means Committee to extend a tax credit (26 U.S.C. §45Q) for carbon capture an d sequestration technologies. “Section 45Q provides a per ton tax credit for the storage of carbon dioxide through the use of enhanc ed oil recovery and is the most important benefit in the tax code for incentivizing carbon capture and utilization and storage at powe r plants and industrial facilities,” the
letter said. Signatories of the letter included Occidental Petro leum Corp., Peabody Energy Corp., the Natural Resou rces Defense Council, Archer Daniels Midland Co. and the Clean Air Task Force, am ong 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 permanen t.” To contact the reporter on this story: Anthony Adra gna in Washington at aadragna@bna.com
To contact the editor responsible for this story: L arry Pearl at lpearl@bna.com