Coal

 

(Updated 1/26/01)

 

Resource base

 

 

 

 

Costs of tapping the resource base

 

Cost reflected in the market price

            Mining and mine reclamation

            Transportation

            Conversion to electricity, including compliance with air quality standards

            Cost of transmission and distribution to move electricity to the consumer

 

Costs arguably not reflected in the market price (and size of such costs)

            Greenhouse gas emissions (potentially very large)

            Criteria pollutants and regional haze (moderate)

            Mercury emissions (moderate)

            Land and water disturbance from mining (minor)

 

Current and forecasted market price

            Current mine mouth prices (from EIA)  

 

            Comparison of Coal Forecasts (million short tons)

            Comparison of Coal Forecasts (billion kilowatthours)

 

            Delivered to power plants (from EIA)

 

            Electricity (from EIA)

 

Barriers to expanded use

            Air emissions

            Inadequate transmission

 

Current policies to overcome barriers

            Department of Energy FY 2001 Coal R&D Budget

 

            FERC Orders on open access transmission tariffs and Regional Transmission Organizations

 

Potential actions to overcome existing cost barriers and future cost barriers

            New technology to convert coal to electricity and other energy products (e.g., oil, gas).  For example, one bill that has recently been introduced in Congress is the National Electricity and Environmental Technology Act (s. 60).

            Text of S. 60

            DOE “Vision 21” (2000)

 

            Implementation of Regional Transmission Organizations and better transmission pricing signals

            Financial incentives for coal conversion facilities (for example, see S. 60)

            Financial incentives for transmission construction

            Streamlining permitting of generation and transmission facilities

 

Potential actions to include costs allegedly not reflected in market price

            Carbon taxes

            Greenhouse gas emission cap and trade system

            Criteria pollutant cap and trade systems

            End exemption for old coal plants from new emission requirements

            Regulate mercury emissions