US President Barack Obama has promised an overhaul of coal mining on public lands, handing a major blow to the struggling industry.
In his final State of the Union address Tuesday, Obama said companies leasing coal and oil rights on federal land should pay more for the effects those fuels have on climate change.
The President added that prices charged for coal and oil must reflect the cost of the greenhouse gases from burning them.
“Rather than subsidize the past, we should invest in the future — especially in communities that rely on fossil fuels,” Obama told Congress. “That’s why I’m going to push to change the way we manage our oil and coal resources, so that they better reflect the costs they impose on taxpayers and our planet.”
“And that way, we put money back into those communities and put tens of thousands of Americans to work building a 21st century transportation system.”
The move follows a listening tour last year by Sally Jewell, the interior secretary, during which she explored leasing options on public lands and the collapse of the coal mining industry due to low prices.
Environmental groups had planned major campaigns around the government’s leasing program for 2016, arguing that continued fossil fuel extraction on public lands was undermining Obama’s efforts to fight climate change.
Reform does what coal industry “cannot do for itself”
Tom Sanzillo, director of finances for the Institute for Energy Economics and Financial Analysis, told MINING.com that the President’s reform of federal coal leases does for the coal industry what it cannot do for itself — “discipline production, shrink supply and better manage the nation’s energy security and this vital resource.”
Environmentalists also welcomed the President’s proposal. “For far too long, the Interior Department has given away our publicly owned fossil fuels to mining and drilling companies without regard for the damage they cause to communities and our climate,” Annie Leonard, executive director of Greenpeace USA, said in an e-mailed statement, calling the move “encouraging.”
But the National Mining Association has warned that any increase in rates will push energy costs higher and deprive taxpayers of revenue.
“Critics of the federal coal lease program have neither an economic nor an environmental case to make that withstands the barest scrutiny,” Hal Quinn, the mining group’s president, said in a statement last month, calling it a “foolish idea.”
Read also: U.S. coal industry on board ‘slow-motion train wreck’
The promised changes come amid historically weak prices for the commodity worldwide, which have had a major impact on the government’s lease program. The Obama Administration had to put off lease sales involving some 2 billion tons of coal over last year because companies were unwilling to buy.
The White House said further details on the “transition to a low-carbon economy” would come in the next few weeks.
10 Comments
Altaf
All that I understood is he is asking coal miners to pay more taxes for the climate changes they are causing, specially when coal mining is in price down trend.
The interpretation of his message as explained above “shrink supply and better manage the nation’s energy security” means he is asking coal mining to reduce production and at the same time do not overdo it to maintain energy security.
Summary : He is asking the industry to reduce production, pay more taxes and be happy. And most importantly dont forget to vote for me. Is that it??
Art Easian
..and the assumption is based upon junk science that 4% carbon dioxide has something to do with anthropogenic global warming, climate change, oops, carbon pollution, oops, climate pollution, oops, extreme weather [mission creep]. He and the EPA, NOAA and NASA have really lost the script. It’s the sun stupid and there has been no measurable warming in the 21st century.
Gary
Looks like Donald Trump will garner a few hundred thousand more votes now?
Bushrat
Let the market sort it all out without any government intervention at all. They are still paying for the interstate highway system that they borrowed from their grandchildren to finance through massive government debt, so please keep your plans for a ’21st century transportation system’ in fantasy land. How out of touch can a president be the effects of junk science and an intrusive government into the free market.
Gerhard Esterhuizen
Noble idea? I do not think so and not practical to implement. We in South Africa is facing a far more worst situation where the government wants to declare coal a ‘strategic mineral’. Such an idea is going to cripple our already suffering export business and a massive decline in forex earnings.
bjoe244
Actually Obama is doing everything in his power to undermine Hillary. Good job, Barack!
Mike Failla
The scariest words in the language. “i am from the government, I am here to help”!
conodo mose
..more from this pompous, narcissistic person whose wish is to destroy a nation for the glory in it..
conodo mose
The West is purposelessly destroying its industries, its workers’ jobs, its prosperity, its countryside, and above all its scientific credibility, by continuing to allow an unholy mesalliance of politicians, profiteers, academics, environmental extremists, journalists and hard-left activists–led by a president with an over-inflated and erotic self-image–to proclaim, in defiance of the data now plainly shown for all to see for the first time, that the real rate of global warming is “worse than we thought”. It isn’t.–Lord Christopher Monckton
TRKV
“A meaningful global carbon price would provide the right incentives for the most cost-effective decisions and investments to be made.” BP’s Energy Outlook Through 2035: Page 87 http://www.bp.com/content/dam/bp/pdf/energy-economics/energy-outlook-2015/Energy_Outlook_2035_booklet.pdf
You missed the debate over the past 25 years if you are trying to argue that global warming is not happening.