coal costs

EPA takes aim at airborne mercury

The U.S. Environmental Protection Agency has issued limits on the amount of mercury and other toxics substances pouring from the stacks of mostly coal-fired power plants.

Dubbed the Mercury and Air Toxics Standards, they're the first national regulations to be put in place and were vigorously opposed by the coal industry. The standards are meant to protect people from mercury, arsenic, acid gas, nickel, selenium and cyanide, the EPA says.

Officials say the "standards will slash emissions of these dangerous pollutants by relying on widely available, proven pollution controls that are already in use at more than half of the nation’s coal-fired power plants."

However, they didn't list specifics. The standards enacted match those proposed.

Big mercury reduction

The nation's 491 coal-fired plants contribute an estimated 48 tons of mercury into the air each year. A report by Northeast States for Coordinated Air Use Management says the most stringent standards for reducing mercury emissions would remove 96 percent from the stacks of coal-fired power plants while the least would remove only 40 percent. The report's authors say it's a difference of 2 and 28 tons.

EPA estimates that the new safeguards will prevent as many as 11,000 premature deaths and 4,700 heart attacks a year. The standards will also prevent 130,000 cases of childhood asthma symptoms and about 6,300 fewer cases of acute bronchitis among children each year, officials say.

"These standards represent a major victory for clean air and public health," says EPA Administrator Lisa P. Jackson. The "health benefits ... far outweigh the costs of compliance."

Compliance costly

Some coal-fired power plants already have been retrofit with toxic emissions controls that would meet the most stringent reductions, but for others it would be a problem. For instance, biggovernment.com says: "In some cases, these companies simply can’t afford to buy the equipment and for others the needed equipment isn’t commercially available. If this rule is implemented, it would force the shut down of many coal-fired power plants."

According to a Government Accountability Office report from October 2009, some 14 plants with sorbent injection systems installed have complied, "enabling them to meet state or other mercury emission requirements -- generally 80 percent to 90 percent reductions."

The GAO also found that the 14 plants spent an average of $3.6 million on the systems -- "a fraction of the cost of other pollution control devices." The pollution-control systems inject sorbents -- powdery substances to which mercury binds -- into the exhaust from boilers to achieve the reductions, the GAO says. And it says annual cost of buying sorbents is about $675,000, still a modest sum compared to the potential cost to human health down the road.

Long time coming

The regulations are 20 in the making. Congress passed the 1990 Clean Air Act Amendments and mandated that EPA require control of toxic air pollutants including mercury.

More than half of all coal-fired power plants already use pollution control technologies. EPA officials say that once final, these standards "will level the playing field by ensuring the remaining plants – about 40 percent of all coal fired power plants - take similar steps to decrease dangerous pollutants.

What others are saying

New York City Mayor Michael Bloomberg: "Today, the President has done the right thing by ignoring the false claims of a narrow special interest and siding with the public health and the public good."

Shannon Baker-Branstetter, Consumers Union: Regulating mercury emissions is just a common sense way to protect consumers."

President and CEO of the American Coalition for Clean Coal Electricity Steve Miller: "The EPA is out of touch with the hard reality facing American families and businesses. This latest rule will destroy jobs, raise the cost of energy and could even make electricity less reliable."

Coal may be the most expensive fuel on the planet

Studies show coal to be one of the cheapest electricity-producing fuels.

At 4 to 6 cents per kilowatt hour, who can argue? Solar is dropping from reports of 12 cents (and up) per kWh to an estimated parity with fossil fuels, according to a study by Queen's University. And wind power is getting cheaper. There's also something I just discovered called atmospheric cold megawatts technology, but I digress.

However, coal and its fellow fossil fuel compatriot natural gas and nuclear still have the edge since they're not dependent on weather or the Earth's rotation.

Boiled shoe theory

Coal accounts for more than half U.S. energy production. It's easy to transport, ignite and burns hot. Great stuff if you're a shivering Charlie Chaplin in his classic silent film "The Gold Rush." Key scene is where he eats his boiled shoe.

But coal extraction has become controversial. Mountaintop removal is not pretty. In addition, the nation's 491 coal-fired plants contribute an estimated 48 tons of mercury into the air each year. And dealing with the leftover toxic ash has proved dangerous. Just look at what happened at the Emory River in Tennessee on Dec. 22, 2008 when 1.1 billion gallons of fly-ash slurry burst a containment levy surrounding an 84-acre pond.

Merry Christmas. It was the biggest such spill in the nation's history. And there's potentially more where that came from. Wait for a good 100-year rain.

Cost accounting

Few corporate supporters of fossil fuels ever mention the environmental cost of their preferred energy sources. Most prefer to shuffle that concept to the background. Until recently it's been limited to the fringe -- a rallying cry for only the most hard-core greenies.

Little by little, other groups and individuals are realizing we can't keep burning stuff and get away scott free. The representatives at the Durban Climate Change Conference didn't pass any binding agreements, but most didn't mince words either.

Ban Ki-Moon, United Nations general-secretary, in a speech at the event says governments and the private sector are working together on sustainable energy and extolled it as a way to cut greenhouse gases while reducing poverty and creating economic growth. "Let us prove that we not only know where we are going – and how to get there – but that we are prepared to take collective action that will move us down that road," he says.

Point of no return

Apisai Ielemia takes it even further. As the minister of foreign affairs, trade, tourism, environment and labor for the tiny Pacific island state of Tuvalu, he's well aware of the potential threat behind climate change. "We have no time to wait, and we are only a few inches from the point of no return," he says. Listen to his speech on Democracy Now.

As much as I love Americaspower.org's recent TV advertising campaign, coal does have serious drawbacks. Nothing about untold millions of particles of mercury billowing into the atmosphere each year from coal-fired power plants is cost-effec­tive. The dust settles across the country and U.S. waters and works its way into the food chain. Should user groups begin to sue coal producers and utilities for damage compensation, I imagine the cost of electricit­y via the fossil fuel will rise significan­tly.

The U.S. Environmental Protection Agency this year has proposed the first-ever national standards for mercury, arsenic and other toxic air pollution from power plants. The move is meant, officials say, to "cut harmful emissions of mercury, arsenic, chromium, nickel and acid gases, while preventing as many as 17,000 premature deaths and 11,000 heart attacks a year."

Health effects from coal

The proposed standards are meant to prevent 120,000 cases of childhood asthma symptoms and about 11,000 fewer cases of acute bronchitis among children each year, the EPA says. In addition, the rules are expected to prevent more than 12,000 emergency room visits and hospital admissions and 850,000 days of work missed due to illness.

The 1990 Clean Air Act was supposed to deal with coal emissions. The delay took more than two decades. President Obama is expected to rule on the issue Monday.

"This is not an issue of jobs versus the environment. It's an issue of the American people's public health versus a narrow special interest," writes New York City Mayor Michael Bloomberg in a piece on Huffington Post. Bloomberg does say, however, that more than half coal plants already have installed measures to control their mercury emissions.

Mercury the neurotoxin

An October 2003 report by Northeast States for Coordinated Air Use Management on mercury emissions from coal-fired power plants says mercury is a "potent neurotoxin particularly damaging to the development of the fetus, infant and young child." And while coal-fired plants, according to the EPA, are the largest producer of mercury in the environment, they are not the only airborne mercury source.

EPA's December 1997 "Mercury Study Report to Congress" estimates the amount of mercury sent up into U.S. airspace to be 158 tons. That's from trash burning, boilers and natural emissions but most from "combustion sources." Quite a pile, and the majority heads out over the ocean where it comes back in fish.

The Northern States report says the most stringent standards for reducing mercury emissions would remove 96 percent from the stacks of coal-fired power plants while the least would remove only 40 percent. The report's authors say it's a difference of 2 and 28 tons.

Solutions exist but they cost

Some coal-fired power plants already have been retrofit with toxic emissions controls that would meet the most stringent reductions, but for others it would be a problem. For instance, biggovernment.com says: "In some cases, these companies simply can’t afford to buy the equipment and for others the needed equipment isn’t commercially available. If this rule is implemented, it would force the shut down of many coal-fired power plants."

According to a Government Accountability Office report from October 2009, some 14 plants with sorbent injection systems installed have complied, "enabling them to meet state or other mercury emission requirements -- generally 80 percent to 90 percent reductions."

The GAO also found that the 14 plants spent an average of $3.6 million on the systems -- "a fraction of the cost of other pollution control devices." The pollution-control systems inject sorbents -- powdery substances to which mercury binds -- into the exhaust from boilers to achieve the reductions, the GAO says. And it says annual cost of buying sorbents is about $675,000, still a modest sum compared to the potential cost to human health down the road.

Health costs bigger

Somebody pays for health effects. Unfortunately when it comes to mercury poisoning, U.S. taxpayers likely will have to pick up the tab.

It's only a matter of time before these not-so-hidden costs begin to be felt and publicized. There will be fallout.

And there will be an accounting of fossil fuels.

Questions will be asked. Just how much does accumulated pollution cost? How much does climate change cost? How much does a fouled Gulf of Mexico cost? How much does that inevitable Arctic Ocean spill cost after an idiot Congress opens the Arctic National Wildlife Refuge to massive drilling?

"Climate policy is based on cost-benefit analysis," says Naomi Klein, author of "The Shock Doctrine." "Now it appears we are waiting until the last possible minute to deal with it."

Photo: San Juan Generating Plant, Farmington, N.M. University of California, Berkeley Geo-Images Project.

Marketing: Clean energy ought to take a cue from coal


Recession hit America hard. The housing crisis, banking collapse and automotive industry meltdown led the charge.

Rising energy prices added to the pain.

Pundits and various economists have predicted recovery, but few of those who have lost their jobs, homes or self respect have seen it.

Despite the gloomy mood, even somebody who's been sucker punched by a layoff appreciates a little levity, especially in a TV commercial. The right advertising campaign in a down economy could position a concept for broad public acceptance. Many businesses got their start that way, starting a whole new idea. The list includes MTV, FedEx and Microsoft. And Apple launched its iPod in 2001 just a month after 9/11.

The visual power of coal

Americaspower.org, a pro-coal group in Alexandria, Va., produced a commercial running currently on network television that makes a strong connection. It speaks to the downtrodden and forgotten by flashing from images of a business man, professional woman, graduate, blue collar worker and a couple others. Each is shown sprawled on the canvas as the narrator says, "Our economy. Our work force. We've all taken some big hit."

Who can argue with that?

The narrator continues: "But this is America." The footage cuts between the workers all staggering up, looking determined and beating the count.

"Jobs in America. Together we will power the next big comeback."

The medium is the message

The crowd is initially silent, then with scattered cries of "Get up!" members of the audience stand and cheer as the workers prepare to fight.

"Clean coal. That's America's power."

Not exactly what climate-watching scientists say, but it's a great message. Coal. Good old hot-burning, full-of-energy coal just happened to get it right. The jury remains out, but the campaign registers significant chutzpah.

A lesson for clean energy

Clean energy ought to do something similar. Make it simple and to the point, following the format established by America's Power.

Back in the late 1960s and early 1970s, a commercial of a person in a space suit wandered an empty radioactive city. The message was Cold War era danger. It still haunts me.

Imagery is powerful. Coal has deep pockets, and America's Power is unapologetic and aggressive in its push for the public eye. Right there on the site's home page, it says coal is green power.

They got it half right. Power, yes. Green? Not so much.

Coal extracts momentum

Coal's coming off a big legal win. U.S. District Judge Reggie B. Walton issued a decision against the U.S. Environmental Protection Agency, saying it overstepped its authority regulating mining companies.

Essentially the EPA teamed with the U.S. Army Corps of Engineers "to coordinate reviews of backlogged permit applications for waste disposal at Appalachia mountaintop mining operations that raise serious environmental concerns," wrote John Raby on huffingtonpost.com.

He quotes U.S. Rep. Shelley Moore Capito, R-W.Va., as saying, "This is a significant step in our efforts to rein in the EPA."

Clean coal wins support

The coal industry wants to make sure it remains in the game. Coal has a lot going for it. The fuel is domestic and cheap and it fuels about half the nation's energy needs. Yet, questions about its clean future remain despite industry efforts to scrub emissions and contain CO2.

Clean coal has believers. The U.S. Department of Energy is kicking in $450 million from its Clean Coal Power Initiative to help build a 400 megawatt plant in Texas "that combines an integrated gasification combined-cycle system with urea production and carbon capture and storage technology," according to power-eng.com.

For at least the time being, there's room for multiple energy sources. But clean and renewable energy has to elevate its visibility. Government subsidies would help, but they may not last and could be used as leverage by opponents.

Getting a leg up

The argument against subsidizing clean energy by the fossil fuel lobby is somewhat disingenuous. For instance, coal has had them too, according to a recent study.

Coal has received tax breaks totalling $1.3 billion over the past decade from a capital gain treatment on royalties, says the study "What Would Jefferson Do?" by Nancy Pfund of San Francisco-based venture capital firm DBL Investors and Ben Healey.

The study underlines how energy doesn't develop in a vacuum. Clean energy is dropping in price. Combined with energy efficiency and smart grid technology, much of it is making economic sense.

And that's the message. The fight's not begun.

Hidden costs of fossil fuels amplify case for clean energy

Hidden costs lurk everywhere.

Buy a car on credit and pay double the sticker price. Same with a house. For instance, adjustable mortgages and balloon payments contributed mightily to the real estate meltdown. And taxes take a big bite. Just ask any small businessperson.

Maybe that's why we Americans like our energy costs low, or at least relatively.

But there are hidden costs there, too. Harvard Medical School's Center for Health and the Global Environment released a study in February that pegged the estimated hidden yearly cost of coal-generated electricity at a high of $538 billion, or an additional 18 cents per kilowatt hour. Peswiki.com listed the commercial cost of coal power at 4.8 to 5.5 cents per kWh.

For some perspective, solar costs between 15 to 30 cents per kWh and wind 4 to 6 cents.

"Coal carries a heavy burden," the "Mining Coal, Mounting Costs" report said. The Harvard study factored in health costs (11,000 deaths annually from lung cancer, heart, respiratory and kidney disease) and environmental impacts of fly ash spills (53 from 1974 to 2008) and mountaintop removal (500 removed and 1.4 million acres transformed).

The beauty of coal is that it's cheap, relatively simple to extract with today's technologies and domestic. There also is quite a lot of it. However, as the study points out, digging it up and burning it to create electricity does have drawbacks, at least with current practices. Addressing those would add to the price substantially and any increased regulations generally are opposed by the industry.

Natural gas performs better emissions wise and is easy on the pocketbook at 3.9 to 4.4 cents per kWh. Domestic reserves are expected to skyrocket as well with newly refined fracturing drilling techniques.

Oil on the other hand has its own troubles. As of this writing, oil per barrel prices had surpassed $105 and the one-year forecast had risen to $121, according to oil-price.net. And as the growing conflict in Libya illustrates, crude oil brings with it a high political cost.

Conflict between Libyan strongman Moammar Qadhafi and eastern separatists have caused California gas prices at the pump to climb 50 cents per gallon in the past month, according to californiagasprices.com. The development has politicians concerned it could derail the shaky economic recovery and consumers grumbling. Should commodities traders remain nervous and prices high, the cost of everything from food to services will climb.

For instance, I heard on National Public Radio that several airlines have already raised rates half a dozen times this year due to increasing fuel costs.

But this is a relatively transparent cost, outlined daily by major media outlets. The less visible but no less costly is what Gal Luft, executive director of Institute for the Analysis of Global Security, calls the "terrorist premium." In the report, "Oil and the New Economic Order," Luft says that premium costs the United States $65 billion to $85 billion a year.

Oil internationally receives a litany of subsidies from countries that shield consumers from up to three-quarters the cost of the fuel. As I wrote in a past post, the International Energy Agency in a report released this past summer says its analysis revealed that fossil fuel consumption subsidies amounted to $557 billion in 2008. This also elevates cost.

Green energy, by comparison, gets a pittance in subsidies. London-based research group Bloomberg New Energy Finance says, "governments last year gave $43 billion to $46 billion of support to renewable energy." This came by way of tax credits, guaranteed electricity prices known as feed-in tariffs and alternative energy credits. Germany is a leader in this groups with its solar feed-in tariff, but that may be decreased.

And making this debate continually interesting are advances improving the efficiency of solar power. Technologies concentrating the suns rays and various methods of creating power storage are elevating the ability of the renewable to compete.

I love the "battery" concept that uses a silo filled with water and a massive counter weight that pushes out the water to generate power when the sun sets or wind stops. The underground silo is filled with water by energy generated from the solar or wind system.

And more traditional battery technology is making massive strides. I tweeted recently about the lithium-water battery. No kidding. It may work.

So who knows how this will develop? Obviously, my nonprofit is biased. We'd like to see the San Joaquin Valley take off as a leader in all things renewable, generating spin-off businesses and inspiring entrepreneurs to make sense of all this harvestable energy surrounding us. And create some jobs in the process.