Longview coal port: a big plan well hidden
New documents show that an Australian company is planning to ship much more coal to China through Longview than it acknowledged. State and local officials may have been deliberately deceived.
The giant coal port planned for Longview might be much bigger than advertised, and a lot of people are unhappy about the developer's until-now-covert plans, The New York Times reported on Feb. 15. It's not every day that Cowlitz County makes the Times. But then it's not every day that documents suggest a major corporation has deliberately deceived state and local officials about a project's scale — or that a small Columbia River port becomes a focal point for climate-change litigation.
Millennium Bulk Logistics, a subsidiary of Australia's Ambre Energy, had said it would ship up to 5.7 million tons a year through the port. The coal would be strip-mined in the Powder River Basin of Wyoming and Montana, hauled by train through the Columbia River Gorge to Longview, and loaded onto bulk carriers for the long trip to China — which doesn't have enough coal to meet its growing demand. Each coal train would be 125 or possibly 150 cars long, pulled by four locomotives. Even a 125-car train is more than a mile long.
Now, it turns out that Millennium may have grossly understated the planned scale of the operation, proposed for a private terminal near Longview. “Court records show that leaders of the company planning to build the facility, now called Millennium Bulk Terminals, tried to limit what state officials knew about its long-term goals during the early permitting process last year,” the Times reported. “The company’s initial application described a facility that could export up to five million tons of coal per year. But court records show that the company hoped to greatly expand that amount in a second phase to 20 million tons or even 60 million tons annually."
Last November, the Cowlitz County commissioners granted Millennium a shoreline substantial development permit for the project. Climate Solutions, Columbia Riverkeeper, the Sierra Club, and the Washington Environmental Council, represented by Earthjustice, have appealed the permit decision to the state Shorelines Hearings Board. The board has scheduled a hearing for April 11. It has just granted the petitioners' motion to include the new evidence of planned expansion in the case. Meanwhile, at the end of last year, the state Department of Ecology intervened to challenge the permit. And Millennium has moved to have the appeal dismissed. The board will hear arguments about that on Feb. 25.
The documents about expansion plans emerged as part of the discovery process. “This stuff was buried in the middle of ... 35,000 pages of junk,” Earthjustice attorney Jan Hasselman says. While the figure of 60 millions tons may be pretty speculative — it appears in what seems to be a confidential report aimed at investors — Hasselman says that “from a legal perspective, the most troubling piece is a thoroughly-fleshed-out plan to go to 25 million.” He says “its the oldest trick in the book to carve your project up into little pieces to avoid an EIS.”
But when is a plan not a plan? "Asked if the company plans to expand the facility, [Millennium CEO Joe] Cannon said, 'I don't want to sound like Bill Clinton here, but it depends on what you mean by 'plans,' " the Longview Daily News reported. The paper further quoted him: "There are people at the company in Australia and potential investors who would love to put more coal through this site. ... There is a big interest in expanding this facility. ... There are no current plans to do so.'"
At any scale, the dispute over the coal port is "really about the geopolitics of climate," says K.C. Golden, policy director of Climate Solutions. Burning coal produces carbon dioxide, which traps heat. It may at some future point be able to "sequester" the CO2 underground — the basis of the hope for "clean coal," which President Obama touted in his State of the Union address — but it isn't now. ("Some folks want wind and solar," the president said. "Others want nuclear, clean coal and natural gas. . . . [W]e will need them all.") Thanks largely to its use of coal, China passed the United States five years ago as the world's main emitter of greenhouse gases.
The groups appealing the Longview permit argue that the county commissioners violated the State Environmental Policy Act when they concluded the project didn't require an environmental impact statement. The commissioners looked only at construction and operation of the coal terminal itself. They didn't consider the environmental impacts of mining or transporting the coal, or “the impacts of transportation and combustion of exported coal in Asia, and the influence of increased exports on supply, demand and price of coal in international markets, which has a strong influence on energy planning decisions by incentivizing coal-fired power production and disincentivizing environmentally preferable alternatives. This last issue is particularly consequential as the 5.7 million tons per year of coal exported by this facility will generate over 11 million tons of carbon dioxide annually — roughly equivalent to the emissions of two million U.S. cars.”
The petitioning groups argued that their members would be harmed because, among other things, “operation of this project will result in significant increases in Washington state’s contribution to global emissions of greenhouse gases and other pollutants,” which will contribute to “human-induced climate instability” and “increased conventional air and water pollution in Washington state.”
The Department of Ecology has focused particularly on the greenhouse gases that those long coal trains would emit. Even within the borders of the state, the figure might be 75,000 metric tons per year.
Despite the rhetoric about clean energy, don't expect the United States to leave all that nasty combustible carbon in the ground. This country is the Persian Gulf of coal. U.S. coal reserves could supply all the nation's energy needs for centuries. Coal still generates roughly half the electricity used in this country, but many American utilities are switching to natural gas. They face the cost of cleaning up their emissions to meet increasingly rigorous environmental standards.
The utilities see carbon regulation or carbon taxes coming down the pike — although, with Republicans in control of the House and Obama's main energy adviser, Carol Browner, leaving the administration, neither taxes nor regulation will arrive any time soon. And natural gas prices have fallen. As a result, utilities have been abandoning coal — at least for now. Where can coal producers find new markets? In Asia. Both China and India are growing like gangbusters, and neither has an adequate local supply.
Reuters reported recently that "surging demand from Asia is pushing coal prices skyward, and suggested that "demand from India and China will continue to underpin prices. The duo recently emerged as among the greediest importers of coal — buying 10 times more from overseas than in 2003. And India's coal minister believes demand for the black rock will triple in the next two decades."
The trick is getting the coal to market. That's where Longview comes in — and perhaps Cherry Point and/or other Washington locations. A lot of coal currently goes through Vancouver, B.C., but that port has reached its capacity; and besides, it's a long way from the Power River basin.
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Comments:
Posted Thu, Feb 17, 10:03 a.m. Inappropriate
"U.S. coal reserves could supply all the nation's energy needs for centuries." This is simply not true. Major recent studies demonstrate that the U.S. has significantly less coal reserves than industry would like us to believe, and coal will become more and more expensive to dig out of the ground over the coming decades and be of lower quality (meaning more pollution when burned). We should leave it in the ground anyways, basing our economy on the burning of fossil fuels that destroy our environment and will run out sooner rather than later is a losing proposition for everyone.
Posted Thu, Feb 17, 11:18 a.m. Inappropriate
'Brian Schweitzer, who came west to discuss the issue with Gov. Chris Gregoire, reacted angrily to the environmental groups' appeal. “I'm going to be calling ... Gregoire, and I might suggest to her that she remind her constituents that they've kept their lights on for 30 years with our coal,” Schweitzer said.' If you please, Gov. Schweitzer, if I may remind you of the following, extracted from the U.S. Energy Information Administration (EIA) | State/Territory Energy Profiles | Energy Data, Information, and Maps
"Typically accounting for close to three-fourths of (WA) State electricity generation, hydroelectric power dominates the electricity market in Washington. Coal-fired, natural gas-fired, and nuclear power plants account for roughly equal shares of the remaining generation.” USEIA report updated 1/20/11
So I believe this means the state's percentage use of coal for power generation is roughly 8-10%.
Posted Thu, Feb 17, 11:52 a.m. Inappropriate
This is an interesting follow-up on the NYT article. Based on what is presented here, I'm struggling to see how Millenium thinks it can win on the SEPA issues and why it's wasting time and energy on the appeal:
-- Shorelines Hearings Board review is de novo, which means it's not bound by the factual record established before the county commissioners. So admitting into evidence all the recent discoveries about bigger plans at the SHB appeal seems a foregone conclusion.
-- An environmental impact statement could be required simply on the basis of the project's sheer size and its potential impacts on conventional considerations like local transportation systems. Standing to raise these kinds of local issues would devolve upon any resident of Cowlitz County who lives in the area of the facility, thus finessing the need to perform some kind of esoteric analysis of exactly who has standing to raise generalized climate impacts. Once an EIS has been required for any reason, the climate issues could be mandated for study under the EIS scoping process.
-- The SEPA rules explicitly anticipate the hide-the-ball scenario as to future expansion plans and allow a threshold determination to be withdrawn at any time within the review process based on the discovery of significant new information. Thus the SHB itself could probably vacate the earlier determination of nonsignificance. The interesting question here might be whether the Board's de novo authority includes issuing a determination of significance itself or whether it needs to remand the SEPA process back to Cowlitz County with directions for further action. But either way the ultimate outcome is likely the same.
So, Mr. Chasan, am I missing something here? Or is this really the slam-dunk it appears to be?
Posted Thu, Feb 17, 9:45 p.m. Inappropriate
Underneath the legal discussion contained in the article and in the comments is a moral strategy that is less admirable than appears at first. We should perhaps be glad that Boeing exports of commercial aircraft do not have to transit through Wyoming or Eastern Montana. The Boeing 747 (sales cheerfully reported in the local media) is also an emitter of CO2. Not as much as China but probably more than China on a per capita basis. Then one has to consider that at least some of the coal China burns is in pursuit of producing things we buy.
I think a true and honest response to the opposition to (admittedly dreadful) Chinese pollution would be to ban Chinese imports or, better, for the US consumer to voluntarily avoid buying Chinese imports. Instead we have these peripheral, convoluted and rather pointless legal sorties that just happen to penalise people who do not export the same things we do. I think some people feel righteous about this and that’s a pity. We burn lots of fuel but ban drilling (OK, we are saving it for later generations, maybe not a bad strategy). We want to buy lots of things from China and they are, so far, willing to lend whatever we need (money being extremely fungible it does get around to imports). At some time the Asian economies, including China, are going to want something other than promissory notes for what they sell us (we should want that also). They are willing to buy coal. The legal white hats are saying not now, not coal. But sometime, something.
Posted Fri, Feb 18, 12:28 a.m. Inappropriate
It is difficult to understand the anger behind Governor Brian Schweitzer. The number of jobs supported by coal mining is pitifully small compared to the overall Montana economy. Currently, there are only 942 coal mining jobs in Montana. The number of jobs that would be added by the Longview coal port would be only a small addition to this existing total.
http://www.sourcewatch.org/index.php?title=Coal_and_jobs_in_the_United_States
This compares to the forest product industry with a total number of jobs of about 7000.
"Total forest industry employment during 2009 was about 7,070 workers (including the self-employed), down by about 20 percent from the revised 2008 estimate of 8,840 workers."
Read more: http://www.faqs.org/periodicals/201004/2042426051.html#ixzz1EIR2orXt
I'd suggest that Governor Schweitzer look instead at his states' potential to export clean wind power.
"Montana ranks fifth among states for wind energy potential, with an estimated average wind power output of 116,000-MWs (Wind Today 2008). As of 2007, Montana had 146-MW of capacity and another 500-MW under construction, illustrating the vast gap between current and potential development."
Ref: Nature Conservancy, Jan 2009
http://www.nature.org/wherewework/northamerica/states/montana/news/news3028.html
Posted Fri, Feb 18, 9:10 a.m. Inappropriate
Governor Schweitzer may resent the Monkey Wrench Gang tactics used by Washington
attorneys. The discussion in the article mentions the trains. About 35 trains per day pass a friend's house in Blue Ridge, only a handful are passenger trains and a large portion are over a mile in length. Only a few neighborhoods in Seattle are even aware of this traffic in spite of the fact that there are probably a dozen grade crossing in the city. So tell me why mile long trains should be a problem in Longview. If the exported material were mined in Washington there would be little or no discussion. For example, I am not aware of any objections to the storage and loading of logs in Longview, much of it for export. Exporting our timber, OK. Exporting MT coal not OK.
This is not a shining example of environmental litigation.
Posted Wed, Mar 2, 12:08 a.m. Inappropriate
This is really troublesome
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