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Virginia’s Ben Chafin: Why Coal Matters

Published: April 13, 2016 |

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The recent Virginia General Assembly session left many in Southwest Virginia wondering if the rest of the state appreciates the continuing importance of the coal industry.

Despite all the negativity, coal continues to play a major role in Virginia’s economy, supplying about 20 percent of our electric utility generation and 3,000 direct high paying mining jobs. The industry also supports thousands of well paying jobs in related industries such as railroads, ports and services.

Coal matters because America needs a diverse base of energy sources to promote energy independence. The recent terrorist attacks in Brussels, Paris and San Bernardino highlight the fact that other energy-producing parts of the world are inherently unstable, and will continue to be for many years to come.

Our country can control our economic destiny only by securing abundant, affordable and diverse sources of energy. This sentiment is shared by a majority of Americans. A recent national poll by Morning Consult found 54 percent of American voters approve the use of coal to generate electricity versus just 32 percent opposed.

This is no surprise given that energy costs represent a large amount of the monthly spending by Virginians. The impact falls the hardest on lower income families. Virginia households earning less than $30,000 spend 23 percent of their family income on energy.

If the past is any indication of the future, all energy sources experience price volatility on a regular basis, which impacts your electricity bills. The best way to guard against rate increases over time is by maintaining an ‘all of the above’ energy policy, including coal.

This is one reason I introduced legislation this year to slow down the federal government’s implementation of the Clean Power Plan, which has a disproportionately harmful impact on coal. While unfortunately Governor McAuliffe vetoed the legislation, I’m hoping language in the budget halting state spending on the plan will survive.

It should be common sense that the state should not spend money on the plan when the U.S. Supreme Court recently issued a stay on the regulations. The stay means the Environmental Protection Agency cannot implement the plan until the Supreme Country resolves the legal issues.

It makes no sense for Virginia to spend money implementing a plan that could be significantly changed or thrown out by the court, especially when the plan is expected to cost consumers and businesses more than $39 billion per year. In fact, a study by NERA found the average Virginia consumer would pay 13 percent more for electricity under the plan than without the plan.

This high cost to Virginia consumers is because the plan would force us to cut carbon dioxide emissions 38 percent by 2030 compared to 2012 levels. Reducing or retiring many of Virginia’s coal-fired power plants will be required to meet these goals, which will have a devastating impact on Southwest Virginia. Virginia has already seen 16 coal-fired generating units shut down due largely to the EPA policies. These units had the capacity to generate electricity for 1.5 million households in the state.

While critics of coal focus most directly on carbon emissions, they fail to acknowledge that Virginia coal generators have invested $3 billion for environmental equipment since 1995. That investment has lowered emissions of nitrogen oxides and sulfur dioxide by 83 percent.

Coal’s opponents claim energy demand will be met through renewable energy sources like wind and solar, yet these sources are currently far less reliable and much more expensive than traditional energy sources.

The coal industry took another hit when the governor vetoed legislation extending the coal tax credits. The tax credits have been an important factor in helping Virginia mining companies retain employment through this tough period. The issue will likely play out during the veto session in April, but we hope the General Assembly will continue this extremely important and effective program in the years to come.

So when you hear people question the importance of the coal industry to Virginia, just remember that keeping your personal electricity bill at the lowest possible level will likely be the result of a continuing and vibrant coal industry in the state. Coal still matters.

- By: Ben Chafin, The Roanoke Times

Ben Chafin Chafin, a Republican, represents the 38th District in the state Senate, which stretches from Radford to Russell County.

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