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Carol Raulston
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Connie Holmes
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April 8, 2003

NMA Supports Clear Skies Initiative that Builds on Emissions Reductions Achieved in Coal-Based Electricity Generation

Washington, DC - "Coal based electric generators have significantly reduced emissions while meeting dramatically increased demand for reliable and affordable energy. Further emissions reductions will be achieved with flexible market based approaches that build on these accomplishments," National Mining Association (NMA) President & CEO Jack Gerard said today in response to hearings on the Clear Skies Initiative held the by the Clean Air, Climate Change and Nuclear Safety Subcommittee of the Senate Environment and Public Words Committee.

Sulfur dioxide emissions from coal based generators have been reduced by 40 percent since 1980 and nitrogen oxide emissions will be reduced by the same amount by 2004 -- all at a time when coal use has increased by 70 percent. The environmental control equipment responsible for these reductions also removes approximately 40 percent of the total mercury content of the coal used for electricity. These reductions make it possible for US coal to produce approximately 21 percent of all worldwide fossil fuel-based power generation but only 1 percent of worldwide mercury emissions-making US coal-based generation among the most efficient in the world for mercury reductions.

And coal based electricity generation will be even cleaner in the future. Over the next 15 years, the Clear Skies Initiative would require a further 70 percent reduction from current emission levels of SO2, NOx and mercury while eliminating duplicative, costly and complex clean air programs that create enormous uncertainty for future investment in generation capacity and environmental controls.

Based on NMA's analysis, Clear Skies is a strong start to meeting the nation's clean air objectives and can be improved upon by; 1) changing Phase One of the two-phased mercury provisions from a cap to a co-benefits approach that relies on control technology employed to reduce SO2 and NOx; and 2) eliminating the allowance auctions - allocating allowances according to each fuel's pro rata share of emissions and limiting allowances to existing plants only-with new generation permitted to operate at their Title Five levels.

Conversely, proposals to add regulation of carbon dioxide emissions to Clear Skies (or as a stand-alone measure) would be extremely costly to American electricity consumers and would jeopardize economic recovery. Such a requirement also would further exacerbate the ongoing natural gas supply and price crisis that has been of such concern to American industries that rely on natural gas as a feedstock.

"There are three important parts to America's energy and environmental future: 1) Clear Skies-with these suggested modifications; 2) the energy bills now before Congress that provide R & D funding and tax incentives for clean coal technology; and 3) the Mining Industry's Climate Action Plan (MICAP) and the corollary action plans the majority of US industry is undertaking to address climate issues through voluntary action. Taken as a whole, these measures ensure Americans can continue to rely on the nation's most abundant and affordable domestic energy source to provide electricity that's increasingly clean," Gerard concluded.