Coal Exports Through the Pacific Northwest Martin Donohoe

Coal Exports Through the Pacific Northwest Martin Donohoe

Coal • Provides 30% of world’s energy needs and 41% of global electricity – US: 31% natural gas, 30% coal • Accounts for 44% of carbon emissions from fuel

Coal • Top five producers: – China, US, India, EU, Australia • Five largest users: – China, US, India, Russia, Japan • Largest coal reserves: – US, Russia, China, Australia, India • Top five exporters: – Australia, Indonesia, Russia, US (9%, $11 billion), South Africa

Plans • Powder River Basin coal, cheap, export to China and India (to supplement national uses and European/Australian exports) • Federal land, cheap • Americans own most of Powder River Basin (40% of America’s coal supply) • 2/3 of coal extracted from public lands

Coal Economics • Cheap: – Sold to coal companies for as low as $1/ton (usually non-competitively) – U. S. price = $9/ton; sold to China for $80 $123/ton – Uncompetitive leasing and poor oversight have cost U. S Treasury $29 billion since 1982 army

Coal Economics • GAO found BLM’s coal lease program does not account for the higher price of coal when it is exported • Senate Energy and Natural Resources Committee, Interior Department, and looking into royalty payment evasion (companies valuing coal at low domestic prices, rather than those fetched overseas)

Plans • 100 -150 million additional tons/yr • 26 trains/day – 4 diesel engines/train (100 -120 cars per train) • 12 barges/wk

Plans • Would dramatically increase U. S. coal export capacity • 2006 - 50 million tons/yr • Current - 127 million tons/yr • With proposals – additional 100 -150 million tons/yr • Through Columbia River Gorge (National Scenic Area)

48 mmt/yr coal 10 mmt/yr coal 15 -30 mmt/yr coal 44 mmt/yr coal 8 mmt/yr coal 10 mmt/yr coal Total: 150 mmt/yr coal

Health Consequences of Coal Mining • Respiratory diseases (including Black Lung Disease) • Heart disease • Cancers • Low birth weight • Birth defects

Environmental and Animal Health Consequences of Coal Mining • Depleted aquifers • Decreased land for ranchers for grazing • Dust pneumonia in cattle and horses • Deception

DECKER MINE: DECKER, MONTANA

Accidents • Almost 40 train derailments over last 2 years – 250 deaths/yr in U. S. from all rail transport accidents • Vancouver barge hits coal chute; coal ship breaks in two off South Africa • Mississippi River Barge hit railroad bridge, leaking oil

Accidents • Runaway train disaster in Quebec (2013) • West Virginia surfactant spill pollutes river (2013) • Risk of fires at coal terminals – Water intensifies blaze; special equipment and firefighter training required • State oversight of rail safety and local fire/disaster preparedness weak

Coal Train derailment near Baltimore, OH Coal train derailment from coal dust buildup near Baltimore, Ohio (2012). Photo from Reuters.

Mesa, WA Coal Train Derailment (2012)

The same trains that would carry coal through the Pacific NW– Wisconsin, 2013

Fire at Westshore Coal Terminal British Columbia, 2013

Barges • Risks: coal and fuel spillage, collision, grounding, congestion, emissions, habitat disruption, and fish mortality from wake and propellers • Estimated 24 barge accidents/yr on Columbia, one/yr involving spill of coal or fuel

Barges • Columbia Gorge tourist spending $746 million/yr, of which $233 represents labor income to people who live and work in the Gorge • $1. 5 -4. 5 billion salmon habitat placed at risk • Annual economic value of negative externalities produced by Morrow Pacific barges: – pollution = $17. 8 million – Greenhouse gasses = $22. 8 million

Coal-laden ship breaks up off coast of South Africa (2013)

Barge Accident at Westshore Coal Terminal in BC (2012) Photo from CKNW News Talk 980.

Accidents (Preventable) • Sago and Upper Big Branch (West VA) mine explosions/cave-ins • Elk River (WVa) coal terminal leak/contamination • Others

Trains • Large increase in wear and tear on RR tracks • RR limited by federal law from paying more than 5% costs for improvements in at-grade crossings, bridges, tunnels, overpasses • Costs will be borne by local municipalities, state and federal taxpayers

Deception • Ambre Energy mislead Port of Longview (5 million tons/yr; internal documents up to 60 million tons/yr; re-applied at 45 million tons/yr) – lease rejected (2015), WA state refuses to allow coal export terminal at Longview (2017) • Port of Coos Bay admonished by judge for attempting to prevent Sierra Club form obtaining public records re proposed terminal

Deception • Lauri Hennessey, spokesperson for the Alliance for Northwest Jobs and Exports – Calls the group “a grassroots effort” – Has referred to the sacred wetlands of the Lummi Nation (Gateway site) as “basically…an industrial area”

Deception • Lauri Hennessey, spokesperson for the Alliance for Northwest Jobs and Exports – Group created and largely funded by coal industry and its allies – Hennessey = Vice-President of Corporate and Public Affairs at Edelman (world’s largest PR firm, best known for decades of work on behalf of Big Tobacco)

Health Effects • Diesel particulate matter: – impaired lung development – pulmonary inflammation and lung cancer – increased risk of heart attacks/strokes/cancer/asthma (ER visits and hospitalizations)

Health Effects • Diesel particulate matter: – increases cardiopulmonary and allcause mortality – developmental neurotoxin • Perinatal exposure increases risk for autism spectrum disorder, ADHDrelated symptoms

Health Effects • Coal Dust: • Up to 645 lbs. (3%) lost per car during transit • Surfactant decreases, but does not eliminate, risk

Health Effects • Coal Dust: – Chronic bronchitis/emphysema/pulmonary fibrosis – Exposure to heavy metals – 3 -fold increased risk of cancer in coal terminal workers in Australia – Organic gardeners/farmers

“Plumes of coal dust can often be seen from passing coal trains. When standing near the rail lines, I have often had to avert my face when a loaded coal train passes to avoid being pelted with coal particles. ” William Van. Hook, Assistant VP, BNSF

Coal Dust Escape 645 lbs without surfactant 97 lbs with surfactant BNSF Study

Health Effects • Noise: – Cardiovascular disease (heart attacks, increased BP, arrhythmias) – Stroke – Cognitive impairment in children – Exacerbation of mental health disorders – Sleep disturbance (fatigue, HTN, arrhythmias, accidents and injuries)

Health and Environmental Effects • Worst effects on: – Communities of color, children, older adults, and low income citizens – Native Americans • Tribal fishing sites (Native American fish consumption up to 10 X U. S. avg. of 14 lbs/yr) – Organic gardeners – Quality of life for all

Frequent, Long Train Crossings • Delayed EMS and fire department response times – Effect on heart attack/stroke/trauma victims, police response to crimes – Portland Fire Department response times already poor – Houseboat fire • Increased accidents, traumatic injuries, and deaths

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Consequences of Burning Coal • Increased ground level ozone • Mercury (and other heavy metals) neurotoxic – Associated with Autism Spectrum Disorder and ADHD, lowered IQ, anxiety, depression, aggression, and social problems

Consequences of Burning Coal • Mercury – 300, 000 -600, 000 US women of reproductive age have toxic levels • newborns/yr in US have increased risk of learning disabilities associated with mercury exposure in the womb – 18% of Mt Bachelor mercury from Asian power plants

Consequences of Burning Coal • Air pollution: – 200, 000 premature deaths/yr in U. S. – 7 million worldwide (1/8 deaths) • 2. 1 – 3. 3 million (outdoor air pollution) • 2 -3. 5 million (indoor air pollution)

Consequences of Burning Coal • Fine particle air pollution from existing coal plants caused over 13, 200 deaths in the US in 2010 • Government program promoting coal use in Northern China may cut life expectancy of 500 million people by average 5 yrs

Consequences of Burning Coal • Global warming: – 400, 000 deaths and 5. 0 - 5. 5 million disability-adjusted life years lost per year (WHO, UN Environment Program) – Expected to double by 2030 – Weather extremes

Consequences of Burning Coal • “The earth could benefit rather than be harmed by increasing carbon dioxide. ” – Power from Coal (sponsored educational curriculum from American Coal Foundation):

Consequences of Burning Coal • Global warming: – 2013 report from Power Consulting: every 140 million tons of additional Powder River Basin coal exported will cause a net rise of 200 -240 million tons of CO 2 when burned in Asia • Vast amounts of water needed for cooling and processing

True Cost of Fossil Fuels • Global tax benefits and fossil fuel subsidies = $5. 3 trillion – Higher than what governments worldwide spend on public health – If all such benefits and subsidies were stopped, 1. 6 million preventable deaths/yr would be averted

True Cost of Fossil Fuels • U. S. = Over $20 billion in fossil fuel subsidies nationally in 2016 ($775 billion = global fossil fuel subsidies) – Subsidies for polluting energy sources greater than 12 times subsidies for renewables (excluding military costs) – Public health costs = 2 X electricity rates

True Cost of Fossil Fuels • When subsidies and externalities taken into account, renewables look great • Even so, Peabody Energy attempting to rebrand coal as a cure for poverty

Jobs • Progressives (who oppose coal exports) traditionally support unions, green energy jobs, living wage, health insurance for all, etc. • Coal exports - Short-term, unhealthy jobs • U. S. taxpayers subsidizing Chinese and Indian jobs

Jobs and Property Values • Effect on local retailers and their often low wage employees • Rail capacity limited, Montana farm exports may suffer • Seattle study predicts rail crossing congestion could cost up to $455, 000/yr in lost revenue plus an additional $475 million in diminished real estate values – Negative effects on tourism

Energy Sector Jobs • Clean energy jobs: 3 million employed – Solar and wind energy: 470, 000 • Fossil Fuel industry jobs: 1. 2 million – Including 51, 000 coal industry jobs (including 15, 000 coal miners) • Bowling industry – 69, 000 jobs • Professional dancers – 20, 000 • Swapping out coal for solar energy would prevent 52, 000 premature deaths/yr in the U. S.

Jobs program for pulmonologists, special ed teachers, and morticians

Multnomah County Health Department Analysis • 9% of population suffers from asthma. • Coal dust may travel 1/3 rd to 1 1/4 miles from train tracks. • Almost 1/3 of population lives in areas that either border or cross rail lines that could carry coal and already experience a high burden of air pollution and noise disturbance from industrial sites, roads, and trains

Multnomah County Health Department Analysis • Communities of color, children, older adults, and low income citizens most likely to be affected • Cumulative delay of up to two hours per day at each rail crossing and delays in emergency response times expected • Precautionary principle invoked, calls for HIS and EIA

Public Opposition • Have indicated concern or disapproval of coal export proposals: – 600 health professionals – 400 local businesses – 220 faith leaders

Public Opposition • Have indicated concern or disapproval of coal export proposals: – Multiple Oregon and Washington municipalities, Portland Seattle mayors, Oregon and Washington governors – Northwest Tribes (Lummi Nation and Yakama Nation)

Public Opposition • Over 1, 000 people attended Oregon DEQ hearings in 12/12 • Impressive state capital rally 3/13 • Hearing and rally re Port of Morrow Project (7/13) • Other events gathering huge crowds in OR, WA, and BC

The Latest • 2013: Environmental groups announce intent to sue Burlington Santa Fe Railway and several companies for violations of federal Clean Water Act – Most coal plants in violation of Clean Water Act

The Latest • 2013: Army Corps of Engineers (federal permitting agency)decides NOT to consider local or global health and environmental effects of coal burning – Despite having concluded on prior review that coal train pollution adversely impacts wetlands

The Latest • 2014: DEQ approves air quality, water quality, and construction storm water permits for Boardman terminal, but requires new water quality permit • 2014: Department of State Lands denies permit (administrative law judge upholds decision, 2016)

Recent Developments Show Coal’s Future May Be Bleak • Coal export prices down dramatically: 2011 ($130/ton) → 2015 ($58/ton) • Investors abandoning coal – Goldman Sachs Report: “The window for profitable investment in thermal coal is gradually closing” – Goldman Sachs Infrastructure Partners owns 49% of parent company pursuing Gateway Pacific Terminal – 2017: Pacific Int’l Terminals withdraws applications for GPT

Recent Developments Show Coal’s Future May Be Bleak • Kinder Morgan abandons plan to build coal export terminal on Columbia River at St Helens • Ambre Energy to renegotiate deal to take over Decker Mine in Montana – Ambre having financial problems • Cloud Peak Energy fails to bid on large deposit; Kiewit bid (21 cents/ton) rejected by BLM

Recent Developments Show Coal’s Future May Be Bleak • Chinese demand expected to drop with development of nuclear and renewables (currently coal = 66% of China’s energy consumption) – Chinese government states country’s air pollution situation is “grim” and is “harming people’s health and affecting social harmony and stability” (1. 23 million premature deaths in China in 2010)

Recent Developments Show Coal’s Future May Be Bleak • China bans new coal plant production near Beijing, Shanghai, and Guangzhou (summer, 2013) and promises to close at least 2, 000 small coal mines by 2015 • Banning coal sales and use in 6 main districts of Beijing by 2020

Recent Developments Show Coal’s Future May Be Bleak • China plans to increase renewables and nuclear energy • And yet, China behind 700 of the over 1, 600 new coal plants planned or under construction in 62 countries in 2017 (which would expand world’s coal-fired power capacity by 43%

Recent Developments Show Coal’s Future May Be Bleak • World Bank and U. S. sharply restricting funding of (overseas) coal plants (2013) • Average U. S. coal plant is 42 yrs. old – Last Oregon coal plant (Boardman) to close in 2020 • 2016: Oakland, CA bans coal hauling and storage, dooms planned terminal

Recent Developments Show Coal’s Future May Be Bleak • 11/15 proposals to build major new coal export facilities in the US defeated or cancelled between 2013 and 2015 • Obama proposes federal grant program to help distressed coal mining communities (2015)

Recent Developments Show Coal’s Future May Be Bleak • 2017: EU utilities in 26/28 countries vow end to coal after 2020 • 2017: Canada to eliminate use of coal in power plants by 2030 (however, still mining Alberta Tar Sands, moving ahead with pipelines)

HOWEVER… • 2015: US Interior Department’s Regional Management Plan authorizes sale of $10. 2 billion of Powder River Basin coal (on 106, 000 acres of public land) at far below market prices • Would negate most other Obama administration actions to control carbon emissions

However • 2016: Obama administration required royalty payments to federal government • 2017: Interior Secretary Ryan Zinke plans to re-open royalty loophole

Trump Administration • 2017: Trump administration strongly supports coal, natural gas, fracking • 2017: Stream Protection Rule overturned, removes restrictions on coal companies dumping ash, mine waste into waterways • 2017: Trump administration defunds health study on coal mining communities

Desperation • Supporters using amoral logic of “someone else will sell it to them” – similar to tobacco exports • Coal companies funding harassment of U. S. scientists

The Latest • Plans to use railways and terminals to transport Canadian Tar Sands and North Dakota Bakken Oil Field fracked oil through Pacific NW for export • 2008: 9, 500 rail cars carrying oil in the U. S. ; 2014: over 400, 000 cars (a 4, 000% increase) – 100 cars/train, each carries 30, 000 gal of crude oil

The Latest • Many new coal and oil terminals planned for Gulf of Mexico (if Pacific NW plans do not work out) – $500 million oil terminal proposed for Portland – Supported by state and federal funds – If all coal export terminals, oil-by-rail facilities, oil pipelines, and natural gas pipelines planned for the Pacific NW are completed and fully utilized, the region could export fossil fuels carrying 5 X as much carbon as the proposed Keystone Pipeline

Port of Vancouver's 218 -acre Terminal 5 - proposed site for the nation's largest oil-by-rail terminal (held up by courts)

The Latest • Pipelines on wheels • 2013: Trains carrying crude oil exploded, spilled, or derailed 117 times – E. g. , Lac-Megantic, Quebec – 47 killed, $1. 2 billion damage (2013) • More crude oil spilled in U. S. rail accidents in 2013 than in previous 40 yrs combined

Lac-Megantic, Quebec, 2013

The Latest • Federal government predicts trains hauling crude oil or ethanol will derail an avg of 10 X/yr over the next 2 decades, causing more than $4 billion in damage and possibly killing hundreds if they occur in a densely populated region • 16 million Americans live within 0. 5 km of one of the existing lines • 2017: Portland City Council unanimously bans new fossil fuel terminals

The Latest • Old (dangerous) tanker cars slowly being phased out • Speed limit of 40 mph set for cities with large populations • Track, bridges aging, fire departments not prepared to handle blazes (special equipment required) • Crude by Rail Safety Act pending in Senate

The Latest • Obama’s Clean Power Plan would have require power plants to reduce carbon emissions by 32% from 2005 levels between now and 2030 – Would have prevent 3, 600 premature deaths – Blocked by SCOTUS – Overturned by Pruitt/EPA

The Latest • Coal to Clean Energy Bill: – OR to transition from coal to clean energy by 2025 – Overwhelming public support – Would be cost-effective/beneficial – Pending in OR legislature

The Latest • Oregon House Bills 3344 and 2131 and Oregon Senate Bill 7 bolster state’s ability to review and potentially deny dangerous oil terminals, would require additional safety and financial responsibility measures by railroads, increase safeguards/training/fees/required planning to deal with potential oil-train related spills

The Latest • 2017: Portland/Multnomah County become the first city/county in the NW to commit to 100% renewable energy – 100% clean electricity by 2035 – 100% clean energy community-wide by 2050 • Passed same day Trump announced decision to pull out of Paris Climate Agreement

What You Can Do • Join Power Past Coalition • Volunteer • Call Governor Kitzhaber or his Citizen Representative: (503) 378 -4582 • Contact DEQ and DSL

What You Can Do • Continue to demand a full spectrum Environmental Impact Statement (EIS) and Health Impact Assessment (HIA) • Demand a halt to all proposals

Conclusions • Coal is a dying 19 th Century technology with Dickensian effects on human health and the environment • The consequences of coal transport through the Pacific Northwest and its subsequent burning in Asian power plants is bad for the Northwest, the United States, and the world

Conclusions • U. S. needs an energy policy for the 21 st century, using clean technologies that provide long-term, well-paying, and safe jobs

Günter Grass “The first job of a citizen is to keep your mouth open. ”

African Proverb If you think you are too small to have an impact, try going to bed with a mosquito in your tent

Special Thanks To • Regna Merritt, Margie Kircher, Andy Harris, Susan Katz, and others at Oregon PSR – regna@oregonpsr. org • Laura Stevens and others, Oregon Sierra Club/Beyond Coal Campaign • Alan Lockwood, National PSR • Thousands of concerned citizens who have volunteered their time and energy

Resources • Power Past Coal: http: //www. powerpastcoal. org/ • Sierra Club Beyond Coal Campaign: http: //content. sierraclub. org/coal/ • Coal’s Assault on Human Health (Physicians for Social Responsibility): http: //www. psr. org/resources/coals-assaulton-human-health. html

Resources • Oregon PSR Resources: http: //www. psr. org/chapters/oregon/en vironmental-health-/proposed-coalexports. html and http: //www. psr. org/chapters/oregon/en vironmental-health-/

Resources • Full cost accounting for the life cycle of coal (Ann NY Acad Sci 2011; 1219: 73 -98. Available at http: //solar. gwu. edu/index_files/Resour ces_files/epstein_full%20 cost%20 of%20 c oal. pdf

Contact Information Public Health and Social Justice Website: http: //www. publichealthandsocialjustice. org or http: //www. phsj. org Martin Donohoe martindonohoe@phsj. org