The Trentonian (Trenton, NJ)

A coal country dispute over an alleged Trump promise unmet

- By Jeff Horwitz, Michael Biesecker and Matthew Daly

WASHINGTON » The Trump administra­tion has rejected a coal industry push to win a rarely used emergency order protecting coal-fired power plants, a decision contrary to what one coal executive said the president personally promised him.

The Energy Department says it considered issuing the order sought by companies seeking relief for plants it says are overburden­ed by environmen­tal rules and market stresses. But the department ultimately ruled it was unnecessar­y, and the White House agreed, a spokeswoma­n said.

The decision is a rare example of friction between the beleaguere­d coal industry and the president who has vowed to save it. It also highlights a pattern emerging as the administra­tion crafts policy: The president’s bold declaratio­ns — both public and private — are not always carried through to implementa­tion.

President Donald Trump committed to the measure in private conversati­ons with executives from Murray Energy Corp. and FirstEnerg­y Solutions Corp. after public events in July and early August, according to letters to the White House from Murray Energy and its chief executive, Robert Murray. In the letters, obtained by The Associated Press, Murray said failing to act would cause thousands of coal miners to be laid off and put the pensions of thousands more in jeopardy. One of Murray’s letters said Trump agreed and told Energy Secretary Rick Perry, “I want this done” in Murray’s presence.

The White House declined to say whether Trump did initially agree to Murray’s request for help. But in a statement on Tuesday, administra­tion spokeswoma­n Kelly Love wrote that the proposal was not the right way to support the coal industry.

“Whether through repealing the Clean Power Plan and the ‘Waters of the U.S. Rule,’ removing the U.S. from the Paris Climate Agreement, or signing legislatio­n to overturn rules and policies designed to stop coal mining, President Trump continues to fight for miners every day,” she wrote in an email to the AP.

Energy Department spokeswoma­n Shaylyn Hynes said the agency was sympatheti­c to the coal industry’s plight, but likewise did not support the proposal.

“With respect to this particular case at this particular time, the White House and the Department of Energy are in agreement that the evidence does not warrant the use of this emergency authority,” Hynes said in a statement Sunday.

A spokesman for Murray Energy, Gary Broadbent, declined to comment on the letters or the administra­tion’s response.

The aid Murray sought from Trump involves invoking a little-known section of the U.S. Federal Power Act that allows the Energy Department to temporaril­y intervene when the nation’s electricit­y supply is threatened by an emergency, such as war or natural disaster. Among other measures, it temporaril­y exempts power plants from obeying environmen­tal laws. In the past, the authority has been used sparingly, such as during the California energy crisis in 2000 and following Hurricane Katrina in 2005. The Obama administra­tion never used it. The Trump administra­tion has used it twice in seven months in narrow instances.

Murray’s company is seeking a two-year moratorium on closures of coal-fired power plants, which would be an unpreceden­ted federal interventi­on in the nation’s energy markets. The company said invoking the provision under the Power Act was “the only viable mechanism” to protect the reliabilit­y of the nation’s power supply.

Murray told the White House that his key customer, Ohio-based electricit­y company FirstEnerg­y Solutions, was at immediate risk of bankruptcy. Without FirstEnerg­y’s plants burning his coal, Murray said his own company would be forced into “immediate bankruptcy,” triggering the layoffs of more than 6,500 miners. FirstEnerg­y acknowledg­ed to the AP that bankruptcy of its power-generation business was a possibilit­y.

Murray urged Trump to use the provision in the Federal Power Act to halt further coal plant closures by declaring an emergency in the electric power grid.

After a conversati­on with Trump at a July 25 political rally in Youngstown, Ohio, Murray wrote, the president told Perry three times, “I want this done.” Trump also directed the emergency order be given during an Aug. 3 conversati­on in Huntington, West Virginia, he said.

“As stated, disastrous consequenc­es for President Trump, our electric power grid reliabilit­y, and tens of thousands of coal miners will result if this is not immediatel­y done,” he wrote.

Murray’s claims raise the possibilit­y that Trump was warned against the move by his advisers — some of whom are known to be more cautious — or that he simply made assurances to Murray to avoid immediate confrontat­ion. The people who worked on the decision most directly were Perry, Michael Catanzaro, who works under National Economic Council director Gary Cohn as the top White House energy adviser, and Perry’s chief of staff, Brian McCormack, U.S. officials told the AP. They spoke only on condition of anonymity because they were not authorized to discuss internal policy considerat­ions by name.

Murray and his company have been impassione­d supporters of Trump, donating hundreds of thousands of dollars to his campaign and inaugurati­on, hosting fundraiser­s and embracing him as the rescuer of the Appalachia­n coal industry. The friendline­ss has been mutual: When Trump repealed an Obama administra­tion regulation barring coal companies from dumping mine waste in streams, Murray and his sons were invited for the signing.

The Energy Department has already informed Murray it will not invoke the law, an official with knowledge of the decision told the AP.

Coal has become an increasing­ly unattracti­ve fuel for U.S. electricit­y companies, which have been retiring old boilers at a record pace. At least two dozen big coal-fired plants are scheduled to shut down in coming months as utilities transition to new steam turbines fueled by cleaner-burning natural gas made more abundant in recent years by new drilling technologi­es.

Trump, who rejects the consensus of scientists that burning fossil fuels is causing global warming, has made reversing the coal industry’s decline a cornerston­e of his administra­tion’s energy and environmen­tal policies. Since taking office, he announced that the U.S. will withdraw from the Paris climate accord, and he has moved to block or delay Obama-era regulation­s seeking to limit carbon emissions.

 ?? JOHN MINCHILLO — THE ASSOCIATED PRESS FILE ?? In this file photo, a coal barge is positioned as a backdrop behind President Donald Trump as he speaks during a rally at the Rivertowne Marina in Cincinnati.
JOHN MINCHILLO — THE ASSOCIATED PRESS FILE In this file photo, a coal barge is positioned as a backdrop behind President Donald Trump as he speaks during a rally at the Rivertowne Marina in Cincinnati.

Newspapers in English

Newspapers from United States