The following is an extract from the Clinton Presidential campaign briefing on plans for America’s coal industry. “From Central Appalachia to the Powder River Basin, coal communities were an engine of US economic growth for more than a century. Coal powered the industrial revolution, the 20th century expansion of the middle class, and supplied as much as half of US electricity for decades. The hard-working Americans who mine, move, and generate power from coal put their own health and safety at risk to keep our factories running and deliver the affordable and reliable electricity we take for granted.
“But today we are in the midst of a global energy transition. The shale revolution, low-cost renewable energy, energy efficiency improvements, and pressing concerns about the impact of coal combustion on public health and the global climate are reducing coal demand both in the US and around the world. Coal now accounts for only one third of US power generation, with domestic consumption falling by 25% over the past ten years. In China, nuclear and renewable energy are growing three times faster than coal-fired power, with more wind and solar capacity added last year than the US and Europe combined.
“Building a 21st century clean energy economy in the US will create new jobs and industries, deliver important health benefits, and reduce carbon pollution. But we can’t ignore the impact this transition is already having on mining communities, or the threat it poses to the healthcare and retirement security of coalfield workers and their families. This is particularly true in Appalachia, where production has been declining for decades, but impacts are beginning to be felt in the Illinois Basin and Western coalfields as well. And it’s not limited to mining communities: reduced coal shipments impact barge and railroad workers, and power plant closures can contribute to local job loss and economic distress.
“Hillary Clinton is committed to meeting the climate change challenge as President and making the United States a clean energy superpower. At the same time, she will not allow coal communities to be left behind—or left out of our economic future. That’s why Clinton announced a $30 billion plan to ensure that coal miners and their families get the benefits they’ve earned and respect they deserve, to invest in economic diversification and job creation, and to make coal communities an engine of US economic growth in the 21st century as they have been for generations.
“Clinton will ensure that we honour our commitments to the coal miners, transportation and power plant workers, their families and their communities, who have given so much to our country.
“Ensure health and retirement security – weak global coal demand and a sharp drop in global coal prices have pushed a number of mining companies into bankruptcy. Clinton has fought, and will continue to fight, against attempts by these companies to use bankruptcy proceedings to shirk the healthcare and pension commitments they’ve made to their retirees, many of whom suffer from black lung disease and other job-related illnesses. As part of this promise, Clinton will put in place a federal backstop that ensures retirees get the benefits they have earned and deserve, building on the bipartisan leadership of Senators Manchin, Capito, Casey and Brown, and will expand these protections to any power plant or transportation company retiree who loses his or her benefits due to a coal market-related bankruptcy.
“Reform the black lung benefit program – Clinton supports sweeping reforms to the federal black lung benefit program to prevent coal company-funded doctors and lawyers from withholding evidence or willfully misdiagnosing patients in order to deny medical care to sick miners. She will empower those who have been wrongfully denied benefits to reopen their cases, help miners secure legal representation, and adjust black lung benefits to reflect cost of living changes.
“Safeguard funding for local schools –coal mining and power plants are a major source of public school revenue in many coal communities, and a decline in coal production or a power plant closure can leave local school districts with a significant funding gap. To address this, Clinton will establish the Secure Coal Community Schools (SCCS) program. Similar to the Secure Rural Schools program that helped offset lost local revenue from a decline in timber sales on federal lands, the SCCS will mitigate declines in coal-related revenue until alternative sources of local tax revenue arise through economic growth.
“Coal is not the only resource mining and power plant communities possess. From Appalachia to the Uinta Basin, coal communities have rich human and cultural capital, diverse natural resources, and enormous economic potential. Clinton will partner with the local entrepreneurs, community leaders, foundations and labor groups working to unleash that potential, making federal investments that help people to find good jobs without having to move and build a strong, diversified economic future.”
The plan is to build infrastructure for the 21st century. “The infrastructure in coal communities today was built to mine, ship, and burn coal. Unlocking new drivers of economic and employment growth in these communities will require new infrastructure that connects workers to new jobs and companies to new markets. Clinton’s infrastructure investment program will include a focus on economic diversification and revitalisation in coal communities, building new roads, bridges, water systems, airports and transmission lines, including completion of the Appalachian Development Highway System. She will also work with the Department of Transportation and the railroad companies to develop a strategy for leveraging available rail capacity previously used to ship coal to support broader economic development in coal-producing regions.
“Repurpose mine lands and power plant sites – with rich soil and abundant water, abandoned coal mines can provide prime real estate for new investment – whether in forestry, agriculture, or manufacturing. But significant remediation, site preparation, and infrastructure development is often required before this land can be successfully repurposed for new economic activity. Clinton will unlock existing unappropriated resources from the Abandoned Mine Reclamation Fund to help finance this work. Clinton will provide similar support for redevelopment of retired coal power plant sites to attract new investment, such as Google’s plans to build a data centre on the site of a recently closed coal plant in Alabama.
Expand broadband access – in the 21st century, reliable high-speed internet access is as economically vital as traditional infrastructure like roads, rail and bridges. Many coal communities lag far behind the rest of the nation in level of internet connectivity. Clinton will increase high-speed broadband access and adoption in coal communities, improving education and healthcare delivery and connecting local entrepreneurs and workers to the global economy.
Expand clean energy on federal lands and from existing dams – most Western coal production takes place on federal lands, but coal is far from the only energy resource these lands possess. For example, Wyoming is the nation’s largest coal producer, but also has the richest wind resources in the Western electrical grid. Clinton will work to capture this potential by streamlining federal permitting both for the renewable energy projects themselves and the transmission lines required to get that renewable energy to market. Existing dams are another large source of clean energy potential. The Department of Energy estimates 12 GW of generation capacity could be added to these dams, enough to power Alaska, Delaware, Maine, New Hampshire and Vermont combined. More than half of this potential is in large coal-producing states. Clinton will launch a major public works project aimed at electrifying existing dams in partnership with the Army Corp of Engineers, private hydropower developers, local utilities and labor unions.
Increase public investment in research and development – to help seed the next wave of innovation and industry creation, Clinton will increase public investment in research and development at universities, national labs and other institutions in coal-producing regions. Given the important role that carbon capture and sequestration (CCS) technology can play in meeting long-term global climate change objectives, Clinton will support CCS R&D and demonstration projects, both in the electric power sector and in industry.”
Clinton also aims to attract private investment through an improved New Markets Tax Credit and zero capital gains taxes. “Complementing the public investments in infrastructure, land, energy, and innovation described above, Clinton will attract new private investment by extending and expanding the New Markets Tax Credit (NMTC) program so all communities suffering from a decline in coal production or a coal plant closure qualify. The NMTC program has steered billions in investment to low income neighbourhoods since it began in 2000. Clinton will also offer companies a chance to eliminate capital gains taxes on long-term investments in hard-hit coal communities.”