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Wolf's delicate balance

PENNSYLVANIA Governor Tom Wolf has a fine line to tread in welcoming his Democrat boss Barack Obama's controversial Clean Power Plan while protecting his state's coal industry, which will inevitably suffer because of it.

Anthony Barich

His office yesterday said the state would use the Clean Power Plan as an opportunity to write a plan that could improve public health, address climate change, and improve its economy and power system.

That could be easier said than done.

The Clean Power Plan sets a nationwide goal of cutting carbon emissions by 32% from 2005 levels by 2030, with progress towards those reductions by 2022.

Pennsylvania was the US’ fourth-largest coal producing state in 2013 and the only state producing anthracite coal, which has higher heat value than other kinds of “black gold”

Pennsylvania's Alternative Energy Portfolio Standards require 18% of electricity sold by 2021 to come from approved renewable or alternative sources, including at least 0.5% solar photovoltaic power. In 2014, renewable energy accounted for 4% of Pennsylvania's net electricity generation.

The state, however, is also among the nation’s major coal consumers. Most of it is burned for electricity generation, and a small portion consumed for steelmaking and other industrial uses.

Large volumes of coal are moved by rail, barge, and truck, into and out of Pennsylvania and around the state.

The US Energy Information Administration’s latest analysts updated in May revealed that about two-thirds of Pennsylvania-mined coal was used in the US for electricity generation, about half in-state and half in other states throughout the east and Midwest.

“Pennsylvania electricity generators and industries bring in nearly half of the coal they consume from nearby states,” the EIA said.

“In recent years, more than 20% of the coal mined in Pennsylvania has been exported to other nations. The state is among the nation's leading coal exporters.”

Pennsylvania's Department of Environmental Protection said it would give all stakeholders “every opportunity” to provide input into drafting a Clean Power Plan that was tailored to fit Pennsylvania’s economy.

“My administration is committed to making the Clean Power Plan work for Pennsylvania," Wolf said.

“Working with the legislature, industry leaders and citizens we will create a plan to ensure these new rules are applied fairly, allow for adjustments, and that they create economic opportunities for the commonwealth's energy economy.”

“[The Clean Power] Plan sets ambitious but achievable goals for reducing carbon emissions state-wide and addressing climate change in fair and smart ways that takes into account legitimate concerns of all parties."

“Pennsylvania is a leader in energy, and we need to do everything in our power to advance the next generation of energy production while protecting jobs in Pennsylvania.”

Wolf said clean coal was a part of the state’s energy portfolio along with natural gas, solar, wind and other sources of power – “and all of this has to be part of a comprehensive strategy”.

“My administration looks forward to working with industry leaders and legislators as well as citizens to find the right balance and develop and effective and responsible state plan,” Wolf said.

“Pennsylvanians will have multiple options for input as the DEP formulates a state-specific plan to comply with the EPA rule.”

A public comment period on the EPA rule will begin in early September, with additional comment periods over the next three years as the Pennsylvania plan is drafted and finalised.

“We will make certain that we craft a Pennsylvania solution that protects the state’s vital role as a net electricity exporter,” DEP Secretary John Quigley said.

“Our strategy must ensure we are protecting our diverse resources and creating economic opportunities. We’ll explore different methods of reaching the required reductions, options of partnering with fellow states, and other considerations.”

DEP staff have already begun assessing the implications of the Clean Power Plan through the National Governors Association Policy Academy, which is developing detailed economic modelling to find solutions that meet Pennsylvania’s needs.

These modelling exercises will continue now that the details of the plan have been released.

“Cutting pollution from power plants, utilising natural gas, supporting nuclear power plants, increasing the amount of renewable energy in Pennsylvania, and improving energy efficiency statewide all can fight climate change and be an economic driver,” Quigley said.

“When our businesses upgrade power plants, install solar panels or improve energy efficiency, that’s a win for the environment and a win for Pennsylvania’s economy.”

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