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CRS83585ENRpage01
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CRS83585ENRpage01
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Congressional Research Service The Library of Congress Em . MITIGATING ACID RAIN: IMPLICATIONS FOR HIGH-SULFUR COAL REGIONS Larry B. Parker, Analyst Environment and Natural Resources Policy Division May'l6, 1983 Washington University I
CRS87285EPWpage125
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CRS87285EPWpage125
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CRS-119 index adjustments, and use of appropriation levels in funding trend analyses-- is also the one used by education budget analysts at the Office of Management and Budget in such activities as the development of current services budget estimates. 1/ Wayne C. Riddle Specialist in Education Finance 1/ Discussion with Bayla white, budget analyst for education programs, Office of Management
CRS87285EPWpage126
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CRS87285EPWpage126
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CRS83585ENRpage06
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CRS83585ENRpage10
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//"‘ .» - ' x ,. ' :7 - ' :- , _ ‘at L’, 113. , n-(4.! -noon N _. . " ' -. 75.‘ 4. ’ / ) , - _ , ',.,_,- f« . 4. “ ‘ - , . "”"N1&er.a 2~- V""T ~“w . .. _ ,,. _ ,. ; ‘:- - I‘. / an °"""'°‘ .._......_ . .__._g., 5 _ -D01l‘.°‘ t’ .. _‘..-__ ‘ ‘..‘ '_e 1‘ ‘-2 ~, -; -._ . ff’ /‘ Jag’ =3‘ \ ' . - . I “ . ;-- V‘ '-A :1 '- 0
CRS83585ENRpage13
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-.7 Source: ‘Keystone Coal Industry Manual, 1981. a. Maryland, and West Virginia. ‘It is a high-Btu coal (13,000-14,000), with an aver; age sulfur content of 2.2 percent. Its high Btu content and coking properties were major factors in establishing Pittsburgh as a major iron and steel region. Other major seams in the region include the Upper, Middle, and'Lower Kittan- ning Beds and the Upper
CRS83585ENRpage08
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CRS83585ENRpage08
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issues have generally been discussed separately, pre* 6 venting the tradeoff involved from being.discussed fully. 3/ This paper examines tradeoffs between electricity rates and the high~sulfur coal industry by analyzing the effects of two reduction strategies on sin States in two major coal-producing regions: (1) the Eastern Interior Basin (Illinois, Indiana,:western Kentucky), and (2) northern
CRS83585ENRpage11
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CRS83585ENRpage11
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BCRS-5 with an average sulfur content of about 2 percent. Ash content averages about 10 percent. 1/ It is the sulfur content of Eastern Interior Basin coal which makes it lessi desirable than some other coals, particularly western coals. 3/ 7The imposition of air quality standards in the early‘l970s placed a premium on low-sulfur {under 1 percent) coal. This bias toward lower-sulfur coal has
CRS83585ENRpage14
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CRS83585ENRpage14
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= West Virginia V Northern West Virginia . ~ _ 15.1, V . - , Southern West Virginia ‘ 4 10.1 1 Eastern Kentucky _ ' 3.0 . _ Total receipts 7 28.6 - . I I Source: United Mine Workers of Amenica and U.S. Department of Energy. i‘burned in.electric generation facilities. _Due to its’dependence on steam coal production and its relatively high-sulfur coal, Ohio's production has declined
CRS83585ENRpage07
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CRS83585ENRpage07
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Committee. It proposes to reduce S02 emissions by 8 million tons over the next 12 years and to freeze NOx emission rates at their current levels. The bill does not specify the manner in which the reduction would be achieved, providing affected States with flexibility in meeting the mandated reduction. A primary focus of the discussion on this bill has been the cost of compliance’ in terms of higher
CRS83585ENRpage09
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CRS83585ENRpage09
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. The second belt is the continuation of this formation into Indiana where it becomes numbers V and Vlb beds. There are obviously other seams which are mined yin these States, but these two are the most important commercially. TABLE 1. Interior Basin Reserves Potential Mining Method State l p Underground Surface Total Illinois . s3,442i 12,223 65,665 Indiana 8,949 2 1,674 10,6232 Western Kentucky 8,720 3
CRS83585ENRpage12
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CRS83585ENRpage12
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CR5-6 FIGURE 2. Coal Consumption by Electric FIGURE 3. Coal-Consumption by Electric’ Utilities in Selected States in L966, Utilities in Selected States in l975, by Source of Coal Used ‘ by Source of Coal Used _(Data from U.S. Bureau of Mines, L967) (Data from U.S. Bureau of Hines, 1976) :5 nu... I-can nu o.n.o-um '1 , ' an A...-an-to-u nu ' Q x ;.....u..- mm 7.0.... an Duncan Iocc
CRS83585ENRpage23
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CRS83585ENRpage23
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_fiQ_.. _j._..=;,Aa.,k_. _ _l. . CRS-l7 Impact of an 8-Million-Ton S02 Reduction on Southern Illinois As stated earlier, projected coal losses resulting from S02 reductions would translate into a 25.6-32.3-million-ton reduction in Illinois coal production. The six-county area in focus here produces 55 percent of Illinois coal destined for electric utilities. In 1980, this production was 29.2
CRS83585ENRpage19
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CRS83585ENRpage19
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. , . ' c D ., . l‘_. ‘ .‘~°°L.. : figpgv -uuufioh wuuvl , i ,} V clnusun - LEGEND /‘ an 1 i ‘ “(.55. . _ ’“’"'( ‘ 9.5.51»! SCALE 2 P9aces'of 100.000 or more mhabotams . 3 ,3 .o to so -0 943 "W" Ptaces of 50.000 to 100.000 mHaD"3'“5 SMSA central cmes woth lower man 50 000 -nhabvlams mac” 0, 25 000 ,0 50,000 mnaonanzs oumoe $MSA's Ollo _o _~vOl , ,:,.--csou i &apos
CRS83585ENRpage18
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CRS83585ENRpage18
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productivity numbers for l980 from the Department of Energy (DOE), the_estimated direct job losses from acid rain legis- O lation are between 7,000 and 9,000..Z/ Assuming a 2.25 muliplier §/ as the number of jobs lost indirectly for every job lost directly, the total jobs lost for the State would be between 23,000 and 29,000. ' I To'examine more closely the effect of such a production decline
CRS83585ENRpage16
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CRS83585ENRpage16
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~Sulfur'Coal*** 400 r 500 Shift from Unscrubbed to Scrubbed Medium-Sulfur Coal*** 600 - l,l00 Shif from Unscrubbed to Scrubbed Low-Sulfur Coal*** 1,200 - 2,000 ( I * Cost will vary considerably, depending'upon region and plant size. Costs per ton presented in this table are_intended to be representative of average con- trol costs only. ' " ' -~ . ** Costs include upgrading particulate removal
CRS83585ENRpage15
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CRS83585ENRpage15
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~million'ton reduction of SO2. They do not necessarily reflect the precise impact of the Senate Committee's bill, which is a very complex piece of legislation, incorporating provisions not covered by these two analyses.~ It should be noted that both analyses focus on $02 emissions from utilities as the basis for ' reductions. Other sources of S02 emissions are not included. Methodology
CRS83585ENRpage21
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CRS83585ENRpage21
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in preventing TABLE 7. Effective Buying Income (BB1) of Southern Counties (in 1981 dollars) County Median Household EBI Average Household EBI Per Capita EBI Gallatin 13,281 15,299 5,838 Jackson 15,848 21,433 8,029 Perry 16,579 18,672 7,0134 Randolph 15,432 17,057 5,701 ‘Saline 11,015 14,149 5,630 Williamson 14,220 16,734 6,549 State Average ‘24,424 27,225 9,808 i D Sourta: Sales and Marketing Management
CRS83585ENRpage20
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CRS83585ENRpage20
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and Unemployment for Southern lllinois: February 1983 7 - " __ A 4 - Unemployment, -County ' ‘Labor Force Employment Number . Rate Gallatin 2,520 1,937 3 683 1 125.1 Jackson 28,642 25,281 3,361 ,11.7, Perry 10,538 8,744 11,794 adx7.o Randolph . 16,553 14,267 2,286 13.8, Saline 10,595 8,104 2,491 23.5 Williamson 21,647 " , , 16,746 4,901 22.6 Source= Illinois Bureaua9§a§meleXm¢PEl§s=9FiCY- - J
CRS83585ENRpage17
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CRS83585ENRpage17
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) Production Lost ICF* ‘ Peabody ICF Peabody ‘Illinois ~ A ‘25.6 32;3** 412 502 Indiana ' ‘ 12.6 l5.4** 41 50 _Western Kentucky . V 16.8 16.7 41 41 *- Regional losses broken down to State level according'to States’ 1980 production levels. ' , ** Production losses restricted to 50 percent. As indicated, between 40 and 50 percent of 1980 production in Illinois, lndiana, and western Kentucky

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