podesta_email_00653.txt

podesta-emails 1,189 words email

D6 P17 P19 V16 D2

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John On Wed, Jul 29, 2015 at 10:14 PM, David Hayes <[email protected]> wrote: > FYI: The Hill ran my op-ed on coal reform this morning. > > Here's the link, and the text: > > > http://thehill.com/blogs/congress-blog/energy-environment/249442-the-case-for-reforming-the-federal-coal-program > > July 29, 2015, 06:00 amThe case for reforming the federal coal program > > By David J. Hayes > > President Obama has overseen the most sweeping and successful reforms of > federal energy policies in recent memory. From strengthening environmental > standards for oil and gas drilling and cutting pollution from power plants > to accelerating the construction of large-scale solar and wind projects on > public lands, the Obama administration has worked to modernize nearly every > element of U.S. energy policy. > > The remaining exception is the federal coal program. > > No element of the federal government’s energy program is more outdated, > more unfair to taxpayers, and more inconsistent with our nation’s energy > and environmental goals than the Department of the Interior’s coal leasing > policies. > > Forty percent of U.S. coal is mined on taxpayer-owned public lands, > primarily in the Powder River Basin. Through a fundamentally > non-competitive process that has been criticized by independent > investigators, coal companies are able to buy the rights to strip-mine > taxpayer-owned coal for about a dollar per ton. Taxpayers are shortchanged > a second time when coal companies use loopholes to dodge royalty payments > that are owed from production. > > What’s more, when this artificially cheap federal coal is burned in power > plants, it contributes to respiratory illness, distorts U.S. energy > markets, and is a major source of climate change – accounting for one-tenth > of all U.S. greenhouse gas pollution. > > Secretary of the Interior Sally Jewell is absolutely right: it is time to > reform the federal coal program. > > In a landmark speech this spring, Secretary Jewell called for “an honest > and open conversation about modernizing the federal coal program,” citing > concerns about fairness to taxpayers and climate change. > > Starting today, this conversation will unfold in a series of listening > sessions in Washington DC, Billings, Montana, Gillette, Wyoming, Denver, > Colorado and Farmington, New Mexico. It will be the first time in more > than thirty years that the Department of the Interior has conducted a > high-level review of how it manages taxpayer-owned coal. > > At these listening sessions, the Obama administration will undoubtedly > hear the coal industry’s case for the status quo, and the continuation of > policies that are intended to maximize production with little regard to > external costs or the fair return that is owed to taxpayers. > > The Interior Department will also hear from reformers: ranchers in Wyoming > who worry about who will clean up the mines in their backyards; sportsmen > who are seeing development cut up big game and other wildlife habitat; > Western mayors who know that fewer loopholes and higher royalties will > bring much-needed revenues to their communities; and taxpayer advocates who > argue for parity between coal royalties and other federal energy policies. > > Jewell should use the listening sessions to develop a clear and > comprehensive plan for reform that incorporates the best ideas that were > heard. A top appointee should present this plan to the Secretary within 60 > days of the end of the Interior Department’s public comment period for coal > reform. > > Four ideas, in particular, deserve consideration in this reform plan. > > First, the Obama administration should modernize the revenue policies for > federal coal to ensure taxpayers get a fair return and account for coal’s > carbon costs. Interior should establish a minimum bid required to buy a > coal lease and increase the royalty rate for surface mining production from > 12.5 percent to a minimum of 18.75 percent – the rate applied to offshore > oil and gas drilling. Payments by companies mining taxpayer-owned coal also > need to account for its high carbon content and climate change impacts. > > Second, the Interior Department’s Bureau of Land Management (BLM) should > rethink how it conducts lease sales in the Powder River Basin to restore > competitiveness among companies and to clearly identify areas that are too > special to mine. No comprehensive environmental and economic review has > been undertaken in more than 30 years; BLM and the Department of Energy > should launch one now. > > Third, the Interior Department should immediately evaluate whether coal > companies that are mining on federal lands have adequate resources to pay > to clean up their own mines. With some coal companies facing financial > troubles – largely as a result of competition with natural gas – there is > growing concern that taxpayers could be left to foot the bill if there are > defaults or bankruptcies. Help also is needed for coal communities who are > bearing the brunt of the falling demand for coal. > > Finally, and importantly, the Interior Department should call a time-out > from selling new coal leases or renewing old leases until it completes its > internal review of the program and announces a comprehensive suite of > reforms. Taxpayers deserve a fair deal from any new coal leases that are > sold on their public lands. > > To be sure, the task of reforming the federal coal program will not be > easy nor will it be met with enthusiasm from the coal industry. The > reality is, however, that America’s energy markets are changing fast and – > like the federal government’s oil, gas, and renewable energy programs – it > is time to bring federal coal policy into the 21st century. > > *Hayes is the former deputy secretary of the Department of the Interior. > He is a visiting senior fellow at the Center for American Progress.* > > -- > > *David J. Hayes* > > *Stanford Law School* > Distinguished Visiting Lecturer in Law > > Crown Quadrangle > > 559 Nathan Abbott Way > > Stanford, CA 94305-8610 > > *[email protected] <[email protected]>* > > twitter: @djhayes01 > > office: 650-723-7778 > > cell: 202-258-3909 > > personal email: [email protected] > -- *David J. Hayes* *Stanford Law School* Distinguished Visiting Lecturer in Law Crown Quadrangle 559 Nathan Abbott Way Stanford, CA 94305-8610 *[email protected] <[email protected]>* twitter: @djhayes01 office: 650-723-7778 cell: 202-258-3909 personal email: [email protected]