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CRS83585ENRpage61
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CRS83585ENRpage61
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in 1982, I I half of that to Canada. Larger amounts of low-sulfur steam coal were shipped from southern West Virginia and eastern Kentucky. . However, this boom in the steam coal market has stopped in 1983, calling‘into I doubt the optimistic predictions of future massive exports. Given the current sit? iuation,?any prediction of future exports would be very speculative. To summarize, it appears from
CRS83585ENRpage63
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CRS83585ENRpage63
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be at least 50 miles-rand probably more~-from the low~sulfur mines.. Unemployed southern coal miners, both steamand metallurgical, wouldbbe much closer. FIGURE 11. Characteristics of West Virginia Coal I’.-..;.; L73 9 ~ n \ r ‘I '..u'-@.{.. I 1 V ;".\O|"'¥K ,l‘ - A I ‘ ._ ‘ IIAMML -I v :. : : , WESTERN LIMIIT or - ' ‘ " ‘ / - _ MlNA8LE<§gUMlrOl.13\ 2 .-S9&apos
CRS83585ENRpage67
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. However, if the country were to take national responsibility for reducing S02 emissions, a broadrbased user fee on electricity‘generatedHcould be imposed to cover the capital costs of control technologies, involving only a small increase (generally under 5 percent) in electricity rates. A second possibility for lowered consumer rates is the emergence of new techr nologies such as LIMB, AFBC, and low
CRS83585ENRpage65
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underground coal miners might need considerable training to obtain jobs. Also, retraining does not mean that a job would be available. In some areas examined, the loss of asubstantial part of the area's basic industry, coal mining, might deprive the area of the vitality necessary to attract new in- dustry. However, unforeseen economic development by the 19903 might provide an unexpected range
CRS83585ENRpage62
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CRS~36 TABLE 45. Projection of Coal Harkets in 1990 Projection Actual EPA NW? State L980 L990 l99O Illinois ‘ A ~ 52.5 53.8 50.0 Indiana. 30.9 42.0 27.0 Western Kentucky 4L.O 62.3 42.Q Ohio - 39.4 36.9 44.0 Pennsylvaniaji 93.1 ll4.6 .93.0 Northern West Virginia 48.3 43.5 48.0 I ~roughly the same after implementation of the S02 reduction as before. '(Indeed, depending on the Btu content
CRS83585ENRpage60
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of Furnace l982 g 1985 1990 Basic Oxygen 62.0 62.4 62.4 Electric . 30.0 29.1. g 33.7 Open Hearth A 8.1 8.2 3.9 * Columns do not total because of rounding. Source: Data Resources, Inc. Honthly En- ergy Review, Spring 1983. « V For the export market, sluggish demand for steel by countries using U.S. metallurgical coal, technological improvements in coke utilization, and minor dis- placement of oil in iron
CRS83585ENRpage64
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CRS83585ENRpage64
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by l0 million.tons by 1995, and steam coal production increase by 1.0 percent a year until l995, about 8,000 jobs would be created. 20/' Assumin that.ecid rain lecislation created demand for . - —— g ° 1i O 35 million tons, an additional 12,700 jobs would be created. This would absorb just about all the UMW miners unemployed in the northern miners. Hence; such legislation would unemployment
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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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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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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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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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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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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-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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..-.....‘..........-,. , _
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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...-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.

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