I would like to thank Chairman Markey for holding this hearing today on the “Future of Coal under Climate Legislation.” The future of coal mirrors the future of our economy. Coal provides inexpensive American made energy to power our manufacturing sector and keep electricity affordable for millions of Americans. Like it or not, without coal the United States would hemorrhage millions of jobs, electricity rates would skyrocket, and we would become dependent on imported natural gas to meet electricity demand.
At a recent hearing, Treasury Secretary Geithner said, “Cap and trade will increase the cost of energy on those fuels that are high in carbon. For people whose behavior in energy use doesn't change, their costs will go up.” Translation: Coal has a big target on its back and America’s working families –already struggling – will get stuck with the bill. Now is not the time to send costs higher. Now is not the time to turn our back on coal.
It is imperative that we continue to take advantage of our nation’s vast coal reserves, which have the promise to produce clean and affordable power for generations. In our quest to reduce greenhouse gas emissions and protect the environment, we must promote clean coal technologies that will not only keep costs down for consumers, but also foster new jobs and a strong economy. These technologies exhibit great promise, and in encouraging advancements in carbon capture, we’ll be able to responsibly fortify our nation’s energy supply with American-made energy and protect the pocketbooks of our nation’s consumers as well.
Last year, members of this committee introduced legislation that would block any new coal-fired power plant without carbon capture and sequestration (CCS). At the same time, I introduced bi-partisan legislation with Rep. Boucher that would spur investment in CCS technologies. Surprisingly, none of the cosponsors of the anti-coal
bill cosponsored our bill that would ensure CCS becomes available. We plan on reintroducing our CCS deployment bill in the coming days. I hope members of this committee will join us in cosponsoring this important legislation.
In 2008, the International Energy Agency (IEA) noted, “CCS offers a viable and competitive route to mitigate CO2 emissions… Current spending and activity levels are nowhere near enough. Investment in CCS will only occur if there are suitable financial incentives… The next 10 years will be critical.” To put our existing policies in perspective, wind currently enjoys a subsidy of $24.35 per mega-watt-hour (MWh) versus $0.44
for coal. Wind must be an important part of the overall equation, but it will never compare to the base-load generation we need from coal. To replace the 3,300MW coal-fired power plant in Monroe, Michigan, that sits on 200 acres and runs at greater than 90% capacity, would require 6,000 wind turbines covering 300,000 acres (generating at 30% capacity) and over 2,300MW of natural gas generation to act as back-up and at nearly double the cost.
By ensuring CCS becomes available, we won’t need to set arbitrary mandates that will send electricity rates through the roof and American jobs overseas. We have a choice – pursue irrational policies that will bankrupt America’s working families and eviscerate our economy – or pursue sound policies that will improve our environment, preserve the integrity of our economy, and keep costs down for consumers. We are clearly at a crossroads. Whatever course of action we pursue, we do so with the economy in a precarious position.
By using a common sense, ‘no regrets’ legislative approach that focuses on deployment of ALL clean energy, we can avoid a costly cap and trade regime that will have no impact on emissions from the developing world. Instead, we will advance technology that creates U.S. jobs and provides the opportunity to export. Working Americans will be better off.
