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For Additional Information:
John Grasser (202) 463-2651
Karen Batra (202) 463-2651
FOR IMMEDIATE RELEASE
June 15, 2000
NATIONAL ENERGY SECURITY ACT OF 2000: PROMISES
SOUND LONG-TERM ENERGY POLICY
Washington--The president of the National Mining Association today
told a Senate committee that a pending energy security measure,
S. 2557, will provide the United States with a sound long-term energy
policy that will help reduce America's dependence on imported oil
to 50 percent by 2010.
In testimony before the Senate Energy and Natural Resources Committee,
NMA President and CEO Richard L. Lawson said the mining industry
agrees completely with the goal of S. 2557, the National Energy
Security Act of 2000, "to decrease America’s dependency
on foreign oil sources to 50% by the year 2010 through enhancing
the use of renewable energy resources, conserving energy resources,
improving energy efficiencies and increasing domestic energy supplies."
He said the legislation correctly recognizes that all sources of
energy will be necessary for our future.
Lawson pointed out that with respect to our greatest domestic energy
resource – coal – the bill includes two items both in
Title IV, supported by the mining industry. Specifically,
- Title IV, Sec. 420 directs the Secretary of Energy to examine existing
coal fired power plants and to prepare a report on the potential
for additional generation from these plants, identifying the impediments
to achieving this potential. The Secretary is further directed to
describe options for improving the efficiency of these plants including
recommendations for a program of research, development, demonstration
and commercialization of technologies to improve the economic and
environmental performance of this existing fleet, while using coal.
- Title IV, Sec. 425 instructs the Secretary of Energy to provide
grants for refinement and demonstration of new coal liquefaction
plants.
Lawson added that currently more than 50% of our nation’s electricity
is generated from coal and that over 40% of the utility industry’s
installed capacity is coal fired capacity. Due to uncertainty about
new environmental requirements, as well as optimistic projections
on natural gas prices, generators are relying more on natural gas
for new capacity. "But our existing coal fired fleet cannot be
replaced easily, quickly or inexpensively. And, this capacity is a
resource that must continue to be used if we are to continue to have
low cost electricity in the United States," he testified.
At the current time, DOE Fossil energy R&D programs do not
have a comprehensive program that addresses the environmental constraints
and timeframes facing the existing fleet of coal based generating
units. Section 420 addresses this problem by identifying the constraints
to using this existing capacity and seeking to find ways to develop
the technologies that may be required so that these generators can
continue to use coal.
"We would like to suggest that this is only one part of a
technology strategy that is required to encourage greater coal use
in electric generators in the future," Lawson stressed.
"We need an accelerated technology research and development
program for advanced clean coal technology for both these existing
facilities and for new coal based electric generating facilities.
To ensure that coal based generation can contribute to the future
electricity requirements of the country, we must also find ways
to move these new technologies from development and initial deployment
to commercial use."
Lawson pointed out that in addition to continuing R&D programs
that address long term technology needs to improve efficiency and
reduce emissions from coal based generation two additional elements
are needed:
- A financial incentives program designed to cushion the financial
burden of applying technologies to existing coal utilities to improve
emissions control and increase efficiency; and
- A demonstration program that provides tax incentives and /or financial
assistance to deploy the initial commercial-scale applications of
advanced coal-based generating technologies. This is required to
reduce the significant risks inherent in using "first of a
kind" technologies, a risk the utilities cannot take in this
new era of deregulation.
In conclusion, Lawson pointed out all energy sources have a unique
and important role to play in meeting the growing energy demands of
tomorrow. "National energy policy should use all available domestic
energy to permit the realization of the maximum national energy security,"
he stressed.
"A sound national energy policy should be one that balances
energy with environmental protection, these are not mutually exclusive
objectives and both can be achieved with benefits to our economy
and society at large. S. 2557 will give our nation the basis to
move forward toward putting this energy policy in place. Of necessity,
our greatest and lowest cost domestic energy source coal - can and
should be the major source of energy for the electric generating
industry of the future," he concluded.
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