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Draft DOE memo plans to bolster coal; Va. governor reinstates coal tax credits

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Draft DOE memo plans to bolster coal; Va. governor reinstates coal tax credits

Draft DOE memo lays out plan to prop up vulnerable coal, nuclear power plants

The U.S. Department of Energy may direct grid operators to buy power or capacity from designated coal-fired and nuclear plants for two years to assure grid resilience and bolster national security, according to a draft addendum to a pending DOE order.

The 40-page draft addendum said the DOE wants to use authorities under the Defense Production Act of 1950 and Section 202(c) of the Federal Power Act to ensure that certain "fuel-secure" plants that are at risk of premature closure remain operational. The document said energy sources that can hold "secure on-site fuel supply" include coal-fired, nuclear, oil-fired and dual-fueled units.

Much of US energy industry recoils at Trump plan to prop up at-risk power plants

A plan to force grid operators to buy power from at-risk coal and nuclear power plants went over well with some that are connected to those industries but prompted a swift backlash from a larger group of energy stakeholders.

A grid operator in the eastern U.S. and much of the American energy industry protested the decision, calling it unnecessary and a blow to competitive energy markets. But some power and coal companies facing the biggest financial fallout from a shifting U.S. power grid applauded President Donald Trump's directive, saying it is needed to preserve grid resiliency.

Coal, nuclear plant closures add to US grid's cyber risks, DOE chief warns

Days after a draft document leaked outlining the Trump administration's potential plans to support struggling coal and nuclear power plants, U.S. Energy Secretary Rick Perry said "fuel-secured" generating units are critical in safeguarding America's power grid and economy from cyberattacks, physical attacks and natural disasters.

Perry linked the importance of the "critical resources" of nuclear and coal with bolstering cybersecurity defenses. "We can't achieve the security of our nation without a strong defense in the cyber battlefield," he said. "The consequences of a grid failure would be devastating."

GAO suggests increasing coal tax rates as option to aid black lung fund

A recent U.S. government report suggests increasing federal coal tax rates to prevent a multibillion-dollar taxpayer bailout for a black lung disability fund whose debt is projected to exceed $15 billion by 2050.

The nonpartisan Government Accountability Office suggested increasing the coal tax rate by 25% to balance the trust fund by 2050. Another option is to maintain the current coal tax rates, coupled with roughly $2.4 billion of debt forgiveness.

Va. governor signs coal tax credit into law

Virginia Gov. Ralph Northam signed a bill into law that reinstates tax credits designed to incentivize coal employment and production.

The measure revives credits that expired in 2016 but limits them to metallurgical coal producers to keep the state's costs down. Producers can claim a credit of $2 per ton of metallurgical coal mined underground from seams 36 inches thick or less, $1 per ton of coal mined from thicker seams and 40 cents per ton for surface-mined coal

DOE grants University of Wyoming $10M to study carbon dioxide storage

The U.S. Department of Energy awarded the University of Wyoming nearly $10 million to test if 50 million tons of carbon dioxide can be stored underground at a utility-scale site near the Dry Fork Station in the northeastern part of the state.

The project will run for more than two years and cost $12.3 million, funded by $9.8 million of federal money and $2.5 million from partners, the Casper (Wyo.) Star-Tribune reported.

Judge allows coal port lawsuit against Wash. state officials to proceed

A federal court denied the state of Washington's motion to dismiss a case challenging the denial of necessary permits for the proposed Millennium Bulk Terminals-Longview coal export facility, clearing the way for the suit to proceed.

A Lighthouse spokesperson praised the court's decision, saying, "We are pleased that the case is moving forward as it raises important questions about the state defendants' compliance with federal law and the Constitution's Commerce Clause, which we will now have the opportunity to fully explore."

Oakland to challenge reversal of coal ban for local port project

The city of Oakland, Calif., announced that it will appeal a federal court decision reversing a ban on coal intended to limit development of the proposed Oakland Bulk and Oversized Terminal export facility.

"We believe the city has the responsibility and the authority to act when the health and safety of our residents is endangered," Oakland City Attorney Barbara Parker said in a statement. "This threat is especially critical in West Oakland, a neighborhood that has been ravaged by environmental injustice and high levels of pollution in the air, water and soil for at least half a century."