environment

Erica Peterson

Two bills before the Kentucky House would change the way the state taxes coal that’s left in the ground.

The “unmined minerals tax” applies to minerals such as coal, gas, oil and limestone that aren’t currently being extracted.

The owner of the mineral rights pays taxes to the state every year. And that adds up to a substantial amount: In 2014, Kentucky collected more than $39 million from this tax. Most of that — $34 million — went to the individual counties where the minerals are. The remainder went to the state.

But with the decline of the coal industry, less coal is being mined in Eastern Kentucky. And when it’s not economical to mine the coal, mineral rights owners are still stuck paying taxes on coal they may never extract.

That’s why two Eastern Kentucky legislators — Democratic state Reps. Fitz Steele and John Short — have introduced separate bills to change that tax.

Tennessee Valley Authority

On Thursday, Kentucky Gov. Matt Bevin announced his administration would seek an extension to comply with upcoming federal carbon dioxide regulations from power plans.

On the face of it, this isn’t surprising. Without an extension, the deadline to decide how Kentucky will reduce emissions is fast-approaching. It makes sense that the state would seek as much time as possible.

But piecing together the statement released by Bevin’s office and a brief interview I did with the Energy and Environment Cabinet raises more questions. While state regulators plan to ask the Environmental Protection Agency for two more years to consider their options, they seem opposed to every option that actually involves reducing the state’s carbon dioxide emissions.

The Clean Power Plan is calling for steep cuts in emissions from power plants. To do this, states have two options: Create a state plan or follow the federal plan.

There’s a third option Kentucky regulators are hoping for, which is that the judicial system overturns the regulation, and the EPA is forced to go back to the drawing board and spend years reformulating the regulations.

WFPL News

A county in central Kentucky is poised to consider a zoning change that could affect a massive multi-state pipeline project.

Boyle County government will consider whether to require all hazardous liquids pipelines to receive permits from the county’s zoning board. That would create a hurdle if energy company Kinder Morgan’s conversion of the massive Tennessee Gas Pipeline moves forward.

The Tennessee Gas Pipeline isn’t new; it’s carried natural gas across 18 Kentucky counties for 70 years. But now, Kinder Morgan is seeking regulatory approval to change the pipeline. The proposal involves reversing the flow and converting it to carry natural gas liquids, rather than natural gas.

Natural Gas Liquids, or NGLs, are the byproducts of natural gas drilling: hydrocarbons such as ethane, butane and propane. They’re used in manufacturing plastics, synthetic rubber and antifreeze, and they’re worth money. But they’re also more hazardous than natural gas, and create different safety risks.

Because of this, NGL pipelines have been controversial in Kentucky. One large new project — the Bluegrass Pipeline — was put on hold in 2014 after substantial opposition.

Flickr/Creative Commons/John Karwoski

Citing concerns over pricing and pollution, the Obama administration unveiled a moratorium on new coal leases on federal lands Friday. The change won’t affect existing leases — which generated nearly $1.3 billion for the government last year.

NPR’s Jeff Brady reports:

“The moratorium will remain in place while the Department of the Interior reviews whether fees charged to mining companies provides a fair return and considers coal’s effect on the environment. Leases already awarded are not affected.”

Secretary of the Interior Sally Jewell announced the change in a conference call Friday morning. Before that call, an administration official confirmed details of the plan to Jeff.

During what her agency is calling a “pause” in issuing leases, Jewell said Friday, “we’ll make accommodations in the event of emergency circumstances to ensure this pause will have no material impact on the nation’s ability to meet its power generation needs.”

In addition to analyzing the return American taxpayers are earning on the use of natural resources, the Interior Department says it’ll also review coal’s public health impacts.

Last year, Jewell called for a new discussion of the coal program, focusing on the fairness of prices charged for coal leases and other concerns at five public meetings.

Years of litigation against an Eastern Kentucky coal company for thousands of Clean Water Act violations were resolved late Monday. Environmental groups hailed the $6 million settlement agreement with Frasure Creek Mining and the Kentucky Energy and Environment Cabinet as “historic.”

The Frasure Creek story is a long and complicated one. In 2010, environmental groups found inconsistencies in the water quality reports the company is required to submit to the state. They found missing reports and identical water quality measurements reported from one quarter to another, even though it’s virtually impossible for the numbers to remain the same.

The groups, including Kentuckians for the Commonwealth, Appalachian Voices, the Waterkeeper Alliance and others, announced their intention to sue the company for the violations. But before they could, the state cabinet stepped in and initiated a lawsuit. In total, there were four lawsuits filed against Frasure Creek over the past five years for similar violations.

An attempt to reach a settlement in one of the cases last year was rejected by Franklin County Circuit Judge Phillip Shepherd. In his order, Shepherd said the proposed penalty of $310,000 was insufficient.

Incoming governor Matt Bevin has appointed retired coal executive Charles Snavely as secretary of the Energy and Environment Cabinet.

Snavely most recently served as the president of eastern U.S. operations for Arch Coal, the second-largest coal producer in the country.

In a statement, Bevin said Snavely’s professionalism and leadership experience are well-known in the industry.

“Charles understands the balance we must maintain between the commonwealth’s need for low-cost, reliable energy and the need for clean water and air for all Kentuckians,” Bevin said.

TVA

Residents offered their two-minute takes in Lexington Thursday on a thousand-page federal coal mining regulation that’s been years in the making.

The Stream Protection Rule was proposed in July by the federal Office of Surface Mining and Reclamation. It’s a rewrite of a Reagan-era regulation that was weakened under President George W. Bush and then thrown out by a federal court last year. Since then, coal companies have been following the 32-year-old version of the rule.

The proposed regulation places requirements on coal companies that mine near streams. Both the proposed and the original rules put a 100-foot buffer zone in place around streams and waterways. But the new version proposes different criteria for different mining activities. Like the original, it wouldn’t ban valley fills — which is when mining waste is discarded in valleys.

Most of the comments on Thursday didn’t revolve around the rule’s merits or disadvantages, but instead the idea that this regulation is another step in a calculated effort to weaken the coal industry.

U.S. Rep. Andy Barr, R-6, said the rule would “ban coal mining in Appalachia” and called for a balance between the economy and environmental stewardship.

Flickr/Creative Commons/DL Duncan

Kentucky lawmakers are criticizing the federal Clean Power Plan, which will place the first-ever national carbon dioxide restrictions on existing power plants.

Released earlier this month, the federal plan orders Kentucky  to reduce power plant carbon emissions by 31 percent by 2030. The EPA’s final rules were much more stringent than the 18 percent reduction outlined in a previous draft version.

The Environmental Protection Agency predicts Kentucky will meet the standards a decade early due to market pressures and current regulations on the coal industry. But Eastern Kentucky lawmakers on Monday said the new regulations would cripple the already ailing coal industry in the region.

“It infuriates me what’s happening to our people in East Kentucky,” said House Majority Leader Rocky Adkins, a Democrat from Sandy Hook, at a legislative committee meeting in Frankfort.

Because of the limits on carbon emissions, the plan will require the state to turn to new forms of power generation, especially natural gas and renewable energy.

Kentucky LRC

The new co-chairman of the Kentucky legislature’s subcommittee on energy says he would support a lawsuit against the federal government’s new regulations on carbon emissions.  

House speaker Greg Stumbo has appointed State Representative Gerald Watkins (D-Paducah) to share the co-chairmanship with State Senator Jared Carpenter (R-Berea).  

Watkins says the subcommittee has plenty of issues on its plate, but one of the main concerns is the status of Kentucky’s coal industry and how it may be affected by new federal regulations on carbon emissions.

Flickr/Creative Commons/NASA

Climate change will begin to have a demonstrative effect on Kentucky’s economy within five years.

This is the conclusion from a report released today by the nonprofit Risky Business. The organization is dedicated to exploring the economic effects of climate change, and is chaired by liberal billionaires Michael Bloomberg and Tom Steyer, as well as former banker and George W. Bush-era Treasury Secretary Henry Paulson.

Recently, groups have begun focusing on the economic costs of climate change, considering any discussion or debate over the science or existence of climate change to be unnecessary. Yesterday, 13 major companies including Walmart, UPS, General Motors and Google launched the “American Business Act on Climate Pledge,” and pledged to reduce emissions with an eye toward their bottom lines.

Today, Risky Business’ report analyzes the factors around the Southeast that will become amplified as the climate changes. Researchers identified “likely” outcomes, which it defined as events with a 67 percent chance of happening if the country continues its current greenhouse gas emissions pattern.

Alfred Sommer, dean emeritus of the Johns Hopkins University School of Public Health, worked on the report with Risky Business. He said it’s easy for politicians to bury their heads in the sand, but that’s a short-sighted perspective.

Under certain scenarios, a large percentage of Americans could subsist on a diet made up of mostly local food, according to a new study.

As natural gas speculation increases in the Rogersville Shale in Eastern Kentucky, scientists are beginning research into the region’s existing seismic activity.

Right now, several test wells have been drilled into the Rogersville, which is thought to cover 4 million acres in Kentucky and West Virginia. The results of those test wells are confidential, but if the reserves prove profitable, companies could begin drilling large-scale oil and natural gas wells in the formation.

Tapping the Rogersville will also involve hydraulic fracturing, or fracking. Fracking is used to extract oil and gas from deep below the earth; the practice includes injecting water and chemicals miles underground. The dirty water is eventually discarded in deep disposal wells. In some oil and gas drilling areas, numerous earthquakes have been recorded, and scientists are becoming more confident that these quakes are linked to the industry.

From the Associated Press:

Earthquake activity in Oklahoma in 2013 was 70 times greater than it was before 2008, state geologists reported. Oklahoma historically recorded an average of 1.5 quakes of magnitude 3 or greater each year. It is now seeing an average of 2.5 such quakes each day, according to geologists.

This story has been updated.

The D.C. Circuit Court of Appeals has ruled that it’s too early to intercede in a lawsuit challenging the Environmental Protection Agency’s proposed carbon dioxide limits for power plants.

The decision was handed down Tuesday, and the coalition of states involved have indicated they’ll petition for a rehearing, and will challenge the final rule.

Thirteen states, including Kentucky, West Virginia and Indiana sued the EPA last year over the Clean Power Plan.

The rule will set individual goals for carbon dioxide emissions reductions from power plants, in an effort to curb the gases which contribute to climate change. Kentucky lawmakers have been vocal about their opposition to the rule, even though regulators’ predictions indicate the state will have to do little to comply initially.

TVA

A lawsuit filed by Kentucky and several other states challenging the Environmental Protection Agency’s Clean Power Plan could be decided “any day now.”

Chief Deputy Attorney General Sean Riley briefed a legislative committee on the lawsuit Thursday.

The lawsuit argues that with the Clean Power Plan, the EPA is exceeding its authority under the law. The law—expected to be finalized this summer—will set state-specific goals for carbon dioxide reductions.

Riley said the three judge panel hearing the oral arguments in April seemed to agree with the states on the technical merits of their argument: that the sections of the Clean Air Act the EPA is using to regulate carbon dioxide are inappropriate.

“They were very receptive to the substantive argument that the EPA may have precluded its ability to regulate greenhouse gases under [section] 111d by operation of regulating them under [section] 112,” he said. “However, they did voice some skepticism about whether the timing of our lawsuit was procedurally proper.”

TVA

Kentucky is on track to comply with the EPA’s upcoming federal regulations on greenhouse gas emissions—even if no further actions are taken.

The Union of Concerned Scientists released a report Wednesday outlining Kentucky’s progress in complying with the yet-to-be announced federal standard. It estimates that by 2020, the first year the state will have to meet greenhouse gas limits, Kentucky will have already cut its emissions to 113 percent of the goal.

In all, 14 states are on track to meet or surpass the expected federal benchmarks. In an article published last week, Inside Climate Progress came to similar conclusions.

But this isn’t news to Kentucky, or to the state’s utilities. In a report released more than a year ago about the economic challenges greenhouse gas regulations could pose to the state, regulators estimated that Kentucky’s electric utilities would emit 73.8 million tons of carbon dioxide by 2025. This is solely through power plant retirements that have already happened, or have been set in motion and will happen next year. The EPA’s limit for Kentucky is expected to be 94.7 million tons by 2020.

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