PIKEVILLE, KY – During stops today in Pikeville and Hazard, Kentucky, U.S. Senate Republican Leader Mitch McConnell announced his plans to introduce The Coal Jobs Protection Act. The legislation targets the Environmental Protection Agency’s (EPA) coal-mining permit approval process, which is negatively impacting coal-mining jobs in Kentucky.

“Coal is a vital part of my State’s economy, and a vital part of America’s energy portfolio,” Senator McConnell said.  “The EPA’s attack on this important Kentucky industry hampers the growth of jobs, and it especially hampers the growth of small business – the greatest engines of job creation.”

McConnell was joined in Hazard by Representative Shelly Capito (R-WV), who will introduce a similar bill in the House of Representatives.  Senator Rand Paul is an original co-sponsor of McConnell’s legislation, which will be introduced next week.

“This EPA has turned the coal permitting process into an illegitimate, back-door means to shut down coal mines permanently, by sitting on permits indefinitely and removing any certainty from the regulatory process. By playing this game of ‘run out the clock,’ they have put many Kentucky mining operations into limbo and cost Kentucky thousands of jobs and over $123 million in coal severance money,” McConnell said. “The EPA is changing the rules in the middle of the game. And they’ve done it all without a single vote in Congress. What EPA is doing is outside the scope if its authority, outside the scope of the law, and represents a fundamental departure from the permitting process as originally envisioned by Congress. So if this administration won’t rein the EPA in, Congress will. Congress must.”

Kentucky has nearly forty 402 permits that have been held up since 2008, costing the state thousands of jobs and over $123 million in coal severance money.  It’s estimated that roughly 3,500 mining jobs in Kentucky could be in jeopardy if the EPA doesn’t revise its permit approval process.

•The Coal Jobs Protection Act would end this abuse of the process by the EPA by requiring them to approve or veto 402 permit applications within 270 days of application. If the EPA doesn’t act by that time, the permit would be automatically approved.

•The Coal Jobs Protection Act would give the EPA 90 days after they receive a 404 permit application to begin the approval process for that application. It also gives the president a year to conduct an environmental assessment. Failure to act within that time frame for approval of a 404 permit would mean the application is approved, the permit is issued, and the permit can never be subject to judicial review.

•The Coal Jobs Protection Act would also implement much-needed reform to help farmers, home builders, realtors, transportation-industry workers, municipalities, and manufacturers at risk from the EPA’s wish to impose a back-door national energy tax by regulating carbon dioxide emissions from coal plants under the Clean Air Act. Such a move would hurt the economy and endanger millions of jobs across the country.

Kentucky’s coal industry employs over 14,000 people directly. For every miner employed, three more Kentuckians hold jobs indirectly dependent on coal, including farmers, realtors, and transportation workers.

In 2012, total coal production in Kentucky declined by over 16 percent, and direct employment from coal fell by over 22 percent. Coal production in eastern Kentucky is down by nearly 28 percent, the lowest level since Lyndon Johnson was president. As a result, 4,000 miners in eastern Kentucky have lost their jobs—a drop of nearly 30 percent.

“The Kentucky Coal Association strongly endorses the Coal Jobs Protection Act presented by Sen. McConnell and urges its favorable consideration by the United States Congress,” said Kentucky Coal Association President Bill Bissett. “Sen. McConnell’s proposed legislation would address many of the issues that have unfairly plagued the Kentucky coal industry under EPA’s recent implementation of the Clean Water Act permit programs. The bill would mandate timely action on permit applications, ensure that the employment and economic impact of federal actions is fully documented and taken into account, restore the appropriate balance between state and federal authority, and prohibit EPA from regulating by means of guidance or other extra-legal means. Passage of the bill would compel EPA to exercise its authority consistent with the rights of the Commonwealth of Kentucky, its local governments and the private sector including the Kentucky coal industry.”
               
“Agriculture and coal have been signature industries in Kentucky for years,” said Kentucky Farm Bureau President Mark Haney. “Production agriculture is an energy-intensive industry and timely access to Kentucky’s abundant coal resources is a critical component to sustain our state’s rural communities and the agricultural economy. Kentucky Farm Bureau commends Senator McConnell for his efforts to rally support for the Coal Job Protection Act.”

The Coal Jobs Protection Act has the support of the following organizations: 
                  Coal Jobs Protection Act Coalition
1. National Mining Association
2. Kentucky Coal Association
3. Kentucky Chamber of Commerce
4. Kentucky Farm Bureau Federation
5. Kentucky Corn Growers Association
6. Kentucky Home Builders Association
7. Associated General Contractors of Kentucky
8. Coal Operators and Associates
9. Ashland Alliance
10. Harlan County Chamber of Commerce
11. Hazard/Perry County Chamber of Commerce
12. Henderson-Henderson County Chamber of Commerce
13. Knox County Chamber of Commerce
14. London-Laurel County Chamber of Commerce
15. Marion County Chamber of Commerce
16. Paducah Area Chamber of Commerce
17. Paintsville-Johnson County Chamber of Commerce
18. Somerset-Pulaski County Chamber of Commerce
19. Southeast Kentucky Chamber of Commerce
20. Northern Kentucky Chamber of Commerce
21. Letcher County Chamber of Commerce
22. Greater Owensboro Chamber of Commerce
23. Southern Kentucky Chamber of Commerce
24. Commerce Lexington, Inc.
25. Greater Muhlenberg Chamber of Commerce
26. Caterpillar Inc.
27. Kentucky Association of Manufacturers
28. Kentucky League of Cities

The Coal Jobs Protection Act Summary

•Kentucky’s coal industry directly employees over 14,000 people, while indirectly providing 3 additional jobs for every miner employed. (see citation 1)

•However, both coal production and employment is on a steady decline in the state.  In 2012, total coal production throughout the Commonwealth decreased by more than 16.3 percent and direct employment fell 22 percent. (see citation 2)

•The region hit the hardest was Eastern Kentucky, where over 4,000 miners lost their jobs and coal production decreased by nearly 28 percent, the lowest level since 1965. (see citation 2)

•Kentucky has nearly 40 402 permits that have been held up since 2008, costing small communities thousands of jobs and over $123 million in coal severance money. (see citation 3)

•The EPA has turned the permitting process, already a cumbersome process to begin with, into an illegitimate, back-door means of shutting down Kentucky coal mines. This is outside the scope of their authority and the law and represents a fundamental departure from the permitting process as originally envisioned by Congress. 

•The Coal Jobs Protection Act requires the EPA to approve or veto 402 permit applications within 270 days of application. If the EPA doesn’t act during that time, the permit is automatically approved.

•The Coal Jobs Protection Act gives the EPA 90 days after they receive a 404 permit application to begin the authorization process. It also gives the President a year to conduct an environmental assessment.

•The Section 402 and 404 permit review process is only one aspect of the EPA’s war on coal.

•The EPA also is seeking to impose a back-door national energy tax by regulating carbon dioxide emissions from coal plants under the Clean Air Act, which will hurt our economy and endanger millions of jobs across the country. (see citation 4)

•Farmers, realtors, and transportation industry workers, who also need permits from the EPA, have contacted the Leader in fear that their businesses are at risk as well. 

•The Coal Jobs Protection Act has critical sections related to the development of 303 (d) lists by EPA which expands its reform beyond the coal industry. 

•The Coal Jobs Protection Act creates the much needed reform in the 303 (d) listing processes that has put farmers, home builders, municipalities and manufacturers at risk of slowing down business development and potentially laying off employees. 

Citations

1. Kentucky Department for Energy Development and Independence, Kentucky Coal Facts 12th Edition; http://energy.ky.gov/Coal%20Facts%20Library/Kentucky%20Coal%20Facts%20-%2011th%20Edition.pdf
2. Kentucky Department for Energy Development and Independence, Kentucky Coal Production Update 2012; http://energy.ky.gov/Coal%20Facts%20Library/Kentucky%20Coal%20Production%20Update%202012.pdf
3. United States Environmental Protection Agency, Region 4: Kentucky Coal Mine Permits; http://www.epa.gov/region4/kycoalminehearings/resources.html#letters
4. United States Environmental Protection Agency, Carbon Pollution Standard for New Power Plants; http://www.epa.gov/carbonpollutionstandards/actions.html