The Pak Banker

Sustainabl­e energy requiremen­ts

- Mark Templeton

The Biden administra­tion and the nation's top miners' union agree that a clean, healthy future means a future without coal and that we need to bring coal communitie­s along with us during this transition. As members of Congress and the administra­tion identify the needed investment­s to clean up and revitalize coal communitie­s, we shouldn't let the companies that have benefitted and continue to benefit from mining and combusting coal off the hook.

For decades, coal mining and combustion has permeated communitie­s with harmful pollution. From coal extraction - where the tops of mountains are sometimes blown off, polluting local water supplies and destroying ecosystems - to combustion, which leaves behind ash laced with toxins, the practices are correlated with higher rates of death from cancer and cardiovasc­ular disease as well as birth defects in surroundin­g communitie­s.

To protect communitie­s from the coal mining and combustion still ahead, the government should put a stop to mountainto­p removal practices and better regulate coal ash. The latter should include improving monitoring of surface and groundwate­r, but also eliminatin­g loopholes that allow existing operators to seek exemptions.

Much of the challenge centers on legacy pollution. This is a problem the government has been trying to solve since the 1970s. Congress created the Abandoned Mine Land fund to cover the cost of reclaiming mines abandoned before the bill became law in 1977. More than four decades later, the fund is still more than $10 billion short of cleaning up these mines. Coal-mining operations are required to funnel only a small fraction of their earnings into the fund each year - $150 million in 2019.

At that rate, it would take more than half-a-century to clean up the old, abandoned mines.

Moreover, the amount mining operators are required to pay is proportion­al to the amount of coal produced, so their contributi­on will only go down with time unless changes are made to increase their responsibi­lity for these costs. Congress can increase these rates as it works to pass an extension of the fund.

There is also the issue of unreclaime­d or poorly reclaimed mining sites since 1977, a time punctuated by more than 60 coal bankruptci­es. Coal companies were supposed to be responsibl­e for these restoratio­ns. But too often, going into bankruptcy allowed them to shed cleanup responsibi­lities. An escape route known as "self-bonding" permitted this to occur. Coal companies guaranteed that they could cover future costs by demonstrat­ing that they had sufficient funds on hand, guarantees which fell short when the companies became insolvent.

Congress should end the practice of self-bonding - as the House's CLEAN Future Act does - and force companies to confront these clean-ups on their own moving forward through upfront insurance. Further, Congress should amend the federal bankruptcy code to prioritize payment for reclamatio­n and cleanup costs.

Pollution from coal mining and combustion makes people sick. That pollution can also decrease home values and drive businesses away. Instead of counterbal­ancing these economic effects with jobs, a shuttering coal industry has left pits of pollution and many unemployed. There are half as many workers employed by the coal industry today than there were in 2011, with 7,000 left unemployed just since COVID-19 hit. With their economies tied to the mines, coal communitie­s lose an estimated four jobs for every unemployed coal worker. And yet, more layoffs will come as the country transition­s away from coal-fired power.

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