National Mining Association

For Additional Information:
John Grasser (202) 463-2651
Karen Batra (202) 463-2651

FOR IMMEDIATE RELEASE
June 8, 2000

NMA CHIEF CALLS FOR U.S. ENERGY POLICY TO BE BASED ON DOMESTIC SUPPLIES

Washington--A return to an energy policy that balances economic, security, social and environmental considerations and is based on full utilization of America's reliable and reasonably priced domestic sources is in the best interests of the United States, the head of the National Mining Association said today.

In testimony before the House Committee on Energy and Commerce Subcommittee on Energy and Power, Richard L. Lawson, president and CEO of NMA, said the availability of reliable and reasonably priced domestic energy has made our country the economic powerhouse that it is today.

"Our nation should have an energy policy that balances economic, security, social and environmental considerations and at the same time supports the availability of reliable and reasonably priced energy. We do not have such a policy in place today," Lawson testified. He added that Congress should provide the impetus needed to put our nation’s energy policy back on track.

"In 2000, our economy is stronger than it has ever been, but our energy supplies are again vulnerable. We are importing 54 percent of our petroleum requirements. But, our vulnerability to supply disruptions extends beyond imported oil," Lawson stressed.

He pointed out that reserve margins in our electric generating system have never been lower and that the nation has moved from promoting the use of domestic resources, such as coal and nuclear power, to a policy that is totally imbalanced toward the environmental extreme and a policy that all but ignores the strides made in technologies to burn fuels more cleanly and efficiently.

"Fortunately we do have the elements to put a sound energy policy back on a more balanced footing. This can only happen, however, if we as a nation have the will to do so."

Lawson continued, focusing on two points:

Use of all types of energy will increase in the United States, and globally, to sustain economic growth, improve standards of living and support an expanding population. It is necessary that both energy and environmental policies take this reality into account and be carefully balanced to support, not hinder, long-term economic growth while supporting national energy security, he pointed out.
Coal, a mainstay of both U.S. and global energy supply through its use to generate electricity, will continue to be used because it is widely available, it is reliable, and coal is low cost. As electricity use increases, so too will coal use. While coal is used more efficiently with lower emissions today than ever before, technologies are being developed which will convert coal into electricity with even greater efficiency while effectively eliminating undesirable emissions. Changes in policy are required however, both to maintain current coal generating capacity and to ensure that the future fleet of electric power plants include coal-fired capacity, he stressed.

Lawson told the panel there is no such thing as a "bad" domestic energy source. "Energy, whether it is from coal, oil, natural gas, uranium or renewable sources, is the common denominator that is imperative to sustain economic growth, improve standards of living and simultaneously support an expanding population."

Although technological advances and greater energy efficiency means that we are using less energy today for each unit of economic output than in the past, growth and prosperity cannot occur without the basic energy building block, he said.

"The United States is fortunate to have a large domestic energy resource and an established energy infrastructure that supplies reliable and low cost energy to consumers from industry to households. Sound, balanced energy and environmental policies are required to keep this energy infrastructure in place."

Lawson concluded by telling the panel that, unfortunately, the failure to balance energy and economic security with sensible, effective environmental policies is affecting the availability, reliability and cost of energy and will ultimately affect our economic future. "The current trend to make energy policy totally dependent upon restrictive environmental policies means that our nation’s energy supply is becoming increasingly vulnerable," he said.

"Our nation’s energy supplies do not have to be vulnerable to outside events and they certainly should not have to be vulnerable due to our own unbalanced policies. Meeting new demands for energy while increasing use of ALL domestic energy and supporting economic growth can and should be complementary with maintaining the highest environmental standards in the world," he concluded.