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CRS83585ENRpage66
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CRS83585ENRpage66
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res-so couciuszon If economic forces were allowed to work unhindered; enactment of an 8-million- ton S02 reduction program could have a dramatic effect on the coal industries in Illinois, western Kentucky, and Ohio. Production losses projected here could raise unemployment rates in the coalfproducing areas of these States by ll to 18 percent- age points, depending on the specific area. Even
CRS83585ENRpage68
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CRS83585ENRpage68
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impact of such legislation on the high-sulfur coal industry. The Congress may wish to consider this tradeoff between electricity rates and coal employment in deter‘ mining any implementation strategy for reducing S02 and NOX emissions{ 4 I
CRS83585ENRpage74
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CRS83585ENRpage74
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an‘. L. .1.-... .L4;”;_‘—. L‘. 1.‘ ' .. 4- 33-‘ ” F j - cas-2 A - ' final scenario tends to favor fuel switching over FGD units because of cost, but includes some FGD because of various technical, contractual, and site- specific constraints to fuel switching. A "cost" issue which has not been addressed adequately is the impacts of such a billwon the coal industry in major coal
CRS83585ENRpage72
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CRS83585ENRpage72
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in S Illinois. . . . . . . . . . . . . . . . . . . . . . . . . . . 10 TABLE 3. Representative Annualized Costs of S02 Reduction Altajnatives 11‘ TABLE ‘A. Production Impacts of Various Acid Rain Scenarios . . . . . . 12 TABLE 5. Population Trends in Southern Illinoisn-I970-I981 . . . . . . 15 TABLE 6._ Employment and Unemployment for Sourthern Illinois August V1982 (preliminary
CRS83585ENRpage77
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CRS83585ENRpage77
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FIGURE 2. Operating Coal Mines -- January 1978 CRS*S '\‘D EH15! WC! 1. , SYIKRWI I ifilfio 5.‘. _, - - I’ " ‘ an-0.». ' ML! \- ...-'... , ‘ ‘ . ‘ ogxago . nut :31 \ I ' ’ " I I u¢-:4--G ,4 I ; I I as. j - ‘ an-----¢. -0 _ . _ :J v-HIM! 7‘_.:‘.‘/-p._,._.-..-.1. : J - . I . _ ..-. . - a(.:- I ' ‘ ' .“__ ' - W ~"*_;-.-':- -.' . -..-::..-.&
CRS83585ENRpage73
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CRS83585ENRpage73
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for various government agencies and interest groups have suggested that a "least-cost? mixture of FGD units and fuel‘ switching may occur which would minimize electricity rate increases. 2/ This 5 if See: Title I, Section 120 of S. 3041. Clean Air Act Amendments of 1982. Approved by the Senate Environment and Public Works Committee, August 1982. Senate Report No. 97-666, 97th Cong., 2nd sess. ’ 3/ See
CRS83585ENRpage75
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CRS83585ENRpage75
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is the midwest, the traditional area for consumption of Illinois TABLE 1. shipments of Illinois Coal to Large (Over 25MW) Power Plants in 1979 STATE 0 3 6 . Tonnage Florida ’ 1 1,420,000 Georgia , 2,962,900 Illinois 4 _ 18,341,700 Indiana 6 9,317,900 Iowa ‘ 1,666,000 Kentucky 3 _ 539,800 Michigan ' 766,300 Minnesota 515,700 a Mississippi 260,500 Missouri 3 12,039,500 Tennessee 483,000 Wisconsin 3
CRS83585ENRpage76
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CRS83585ENRpage76
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-IIII—-"'I"“"""‘. ' 5 H . xi ‘KL: I‘; G} ‘J I . I ' ° ; . E ' ;. lifawun f r—1":-:Al( E L acting. ...._...vuv< ._....- T Ognonlbd ‘N0 73 ‘j -(um (No 53 l 5 l 3 . uuvu--n new-saute‘ ;' : 50'--'9!-o¢c.1N¢ 3) i !-—I—— $gQIIu$(N0 43 . 3 , ---' Cotencscov (No 2) Z—.--—- Qq IQUQO 1''‘... Jews. I 3 h \‘*H¢'*1100'd F''''‘'' ‘on
CRS83585ENRpage71
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CRS83585ENRpage71
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. For the sourthern Illinois counties eiamined here, such a loss would almost double that area's 1980 unemployment rate from 11 to 21 percent and involve loss of about $200 million in personal income (about 17 percent of the counties total).l
CRS83585ENRpage69
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CRS83585ENRpage69
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Congressional Research Service The Library of Congress Washmgton. D.C. 20540 IMPACI OF PROPOSED ACID RAIN LEGISLATION ON THE ILLINOIS COAL INDUSTRY ‘Preparedlfor Senate Subcomittee on Energy, Nuclear Proliferation, and Government Processes, ” I Senate Governmental Affairs Comittee by Larry B. Parker Analyst in Energy Policy Environment and Natural Resources Policy Division February 21, 1983 T
CRS83585ENRpage70
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CRS83585ENRpage70
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CRS83585ENRpage78
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CRS83585ENRpage78
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«Illinois coal were:, (15 Missouri facific (lI:8 million tons); (2) Illinois Central Gulf (l0.9 million tons); (3) Burlington Northern (6.2 million tons);_(4) Chicago and Northwestern (3.1 million tons); and,»(5) Conrail (2.8 million'tons)._§/ The second region is the southeast, particularly Florida,'Georgia, and Missis- isippi. This region represents a growing market for Illinois
CRS83585ENRpage80
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CRS83585ENRpage80
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...-a':;‘;3mx1ugmlIHH1InxxlfllimiilN11133::liiL____________, ' 5° U0 '5 1100 Source: 1900-1978: Illinois State Department of Mines and Minerals, ‘l979-1981: Department of Energy 9 §/ U-S,‘Department of Energy. Coal Distribution: January ~ December l98l. Office of Coal, Nuclear, Electric and Alternate Fuels, Energy Information Administration. April l982.
CRS83585ENRpage85
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CRS83585ENRpage85
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CRS-13 of various reduction targets assuming a least-cost implementation strategy. As shown, the effect of S02 reductions on the Midwest does not change significantly until 13.1 million tons. eTo determine the reduction for Illinois, the Midwest production number (which includes Illinois, Indiana, and western Kentucky) was broken out according 'to the individual state's 1980 production
CRS83585ENRpage83
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CRS83585ENRpage83
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*** 400 - S00 . , _ Shift from Unscrubbed to Scrubbed Medium Sulfur Coal*** 600 - 1,100 HMWWMMWHM; Shift from Unscrubbed to Scrubbed Low Sulfur Coal*** , l,500r - 2,000 *' Cost will vary considerably depending on region and plant size.r Costs , per ton presented in this table are intended to be representative , of average control costs only. « A ** Costs include costs of upgrading particulate
CRS83585ENRpage81
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CRS83585ENRpage81
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CRS-9 continues, although at a significantly slower pace as the compliance process is virtually complete. (see Table 2).2/ The proposed acid rain legislation requires sulfur dioxide reductions. from existing plants. If the experience of the early to mid-1970's is a guide to future utility action, much of this reduction would probably come from fuel switching, unless political factors
CRS83585ENRpage84
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CRS83585ENRpage84
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. Production Impacts of Various Acid Rain Scenarios Region Reduction Scenario (millions of tons) ' 13.1 12.0 l0.0* . 8.1, Northern Appalachia . (42)** (43) (33) ,(33)' Central Appalachia SS 50 47 47 Southern Appalachia , (4) (4) 2‘ (3)* Midwest ; (63) ,(5l) (58)' (55) West , ‘ 55 46 40, 40 g * Numbers calculated from different base than other scenarios. Scenario also assumes interstate trading
CRS83585ENRpage79
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CRS83585ENRpage79
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CR3-7 . Q .Q .@m¢~ .8e..o>oz .Am@ 39. —uLQ:.:_= u_o:_:: . w—aZ:3o..-u:u=5o_o>oa Saou m_o=:: .:O.=.mm .< .32. van 9:65-02 cause: ueugsom ..aw~m. ...:.x «a aaoasn .a.= . "came so 3..:&... ..vou: nae... .~o.of:ou .3 .39 :« noun»: ..~wa. ...:.: no :...:n .a.= .336 no oossone .692. ~30 no 0925.. 2 £09 5 noun»- voaoouon cu .ao::«,:. 3.39:0 he _:o3a§.n:oo.naoo o * £2 uuuoomon 5
CRS83585ENRpage82
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CRS83585ENRpage82
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tLow Sulfur Eastern Coal Scrubbers Variances Total Coal-Fired Power Generation Capacity in 1977 ‘ 6,8 (II 2 351 1,673 i5,798 893 450 1,187 1,270‘ 16,424 430 3,800 Source: Form 67, Federal Energy Regulatory Commission, 1977. Table from Boyce, et al. op. cit-
CRS83585ENRpage94
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CRS83585ENRpage94
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CRS‘22 TABLE 11. Projected 1990 Illinois Coal Production Projection ' Base Yearl 1990 U.S. Electricity 1990 Nuclear Production Production Growth Rate Capacity (GW) (million of tons) Assumption Environmental 52.5 (1980) .ss.s 1980-85 1.72 I 107 Protection ' I l986-90' 2.5% ‘ l””Agency y y I . National 9 60.0 (1979) 74.0 1989-90: 3.4% ll? Wildlfe - I I federation Source: ICF

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