National Mining Association

A Policy of Balance in Energy To Put the Future Back in Balance Remarks
Washington, D.C. May 21, 2001

Keynote Remarks by Jack N. Gerard President & Chief Executive Officer
National Mining Association
Energy Newsmakers Breakfast of The Energy Daily & The United States Energy Association

In federal policy for most of the last decade, coal was last among equals in energy despite the facts:

That it is the source of more than half the nation's electric power;
And that it is more than 9/10ths of the nation's recoverable fossil fuel - 274 billion tons of coal that contains 39 times the energy of our natural gas and 54 times the energy of our oil.

People in places of high authority looked on the idea of using more coal the way many people in other walks of life look on the religious concept of heaven: They all professed to believe…but very few wanted to try it anytime soon.

In federal policy, energy was last among equals in both economic and domestic policy.

Now the perspective has changed.

Now there is the example of California to illustrate the kinds of things that can happen when energy is casually relegated to last among equals in the general mix of policy considerations; and when energy policy shuts out diversity;
Now there are real and diversity-related questions about the present reliability and future sufficiency of the nation's electric power;
Now we've passed through a winter of public discontent about sudden rises in the prices of both electric power and natural gas;
Now, to paraphrase a certain former vice president, the future really is in the balance.

And this new energy strategy is about trying to get some balance into the future.

As the task force told the President in chapter 5 on page 14:
"If rising U.S. electricity demand is to be met, then coal must play a significant role.

"If policies are adopted that sharply lower coal electricity generation….This creates concern about the adequacy of natural gas supplies….
"Technology…will continue to be a key to achieving our energy, economic and environmental goals…."

Rather than go point by point through the recommendations, it's probably best to speak to the general direction of the strategy and to let the questions deal with the specifics.

The National Mining Association commends and supports the President's call for regulatory and legislative activity:

That sees and understands the contribution coal can make to reliability and diversity;
That recognizes that Clean Coal Technology is a leading 21st century technology that will help the country gain and keep sound footing in electric power, the energy of the future;
That establishes a body of 21st century regulatory practice that will encourage the advance of technology;
That would instill in regulation the kind of certainty and clarity required for sound investment and business decisions in power;
That would resolve the uncertainty and remove the potential for caprice now inherent in New Source Review;
And that would require regulating bodies to consider the cumulative influence of their actions and to undertake energy impact statements in their proposals.

When you pick through all of the chapters and all of the recommendations and connect the dots, an outline emerges that could lead to the basis for:

A real national market for electric power;
And real competition within that real market in ways that will benefit energy consumers and their environment - their natural environment, their economic environment, their social environment.

The National Mining Association endorses these objectives as well.

Thank you.