Legislative & Regulatory Update · 2019. 3. 26. · -Administrative Confusion, TDNs and Continued...
Transcript of Legislative & Regulatory Update · 2019. 3. 26. · -Administrative Confusion, TDNs and Continued...
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Legislative & Regulatory Update
Jason Bostic Vice-President
West Virginia Coal Association West Virginia Mine Drainage Task Force Symposium
March 26, 2019
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Introduction
• Production / Market Update
• Legislative Session
• Federal Issues: CAA, CWA, SMCRA, ESA
• State Issues: Narrative, WQStds
• Remainder of 2019
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Recovery Continues…
97
8892 91 90 88 87
80
7074
76
69
5651
48
40
32 30
2015
19
23
166
144 143139
130
120117
100
85
93
99
0
20
40
60
80
100
120
140
160
180
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Co
al P
rod
uct
ion
/ M
illio
n T
on
s
West Virginia Coal Production: 2008-2018
Underground
Surface
Total
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Recovery Continues…
47,865,000 47,174,737 46,192,782
11,867,000 12,447,906 13,006,709
7,800,20012,301,157
17,678,700
17,467,800
21,076,200
22,347,198
0.0
20,000,000.0
40,000,000.0
60,000,000.0
80,000,000.0
100,000,000.0
120,000,000.0
2016 2017 2018*
West Virginia Coal Production:2016, 2017 & 2018
*Preliminary Data
Export Met
Export Thermal
Domestic Met
Domestic Thermal
85m Tons
93m Tons
99m Tons
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Recovery Continues…
46%
13%
17%
24%
West Virginia Coal Production :2018
Domestic Thermal
Domestic Met
Export Thermal
Export Met
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2019 Regular Legislative Session
1,142 House Bills 681 Senate Bills
1,825 Total bills
294 Completed Legislative Action (16%)
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2019 Regular Legislative Session
• HOUSE BILL 3142 – REDUCE SEVERANCE TAX FROM 5%
TO 3% OVER THREE YEARS
– 0.35% reduction on July 1, 2019– additional 0.30% on July 1, 2020
(total of 0.65%)– additional 0.35% on July 1, 2021
(total of 100%)
– Protect tax distributions to counties/municipalities
-Coal-producing and non-coal-producing counties-2018 base-year for coal-producing counties
101m
47.8m 47.1m 46.1m
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
2008 2016 2017 2018
Co
al P
rod
uct
ion
/ T
on
s
West Virginia Domestic Steam Coal Production
Hg MACT Demand
Destruction(CAPP)
Market Displacement
by Cheaper Coal
(NAPP)
***Save Our Steam Coal Market***
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2019 Regular Legislative Session
• HB 3144 INVESTMENT TAX REBATE
QUALIFYING INVESTMENT
EQUIPMENT-MACHINERY-IMPROVEMENT
35% OF INVESTMENT AGAINST
AGAINST SEVERANCE TAX ON 80% INCREMENTAL INCREASE
BASE YEAR DETERMINATION
2 YEARS IN BUSINESS AT LEAST
TAX DEPARTMENT RULES
DEFINE SPECIFICS AND DEFINITIONS
***Build the Next Generation of the W.Va.
Coal Industry***
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• Coal Jobs & Safety Act #5 Senate Bill 635
-Coalfield Community Development
-Subsidence (Rulemaking)
-Tanks (Revise GPA Rules)
-NPDES Fees by Rulemaking
-Mine Trespassing
-Increased Penalties
- “Hold Harmless” Provisions
-Mine Rescue Team Members
-Environmental Regs
2019 Regular Legislative Session
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• WV DEP Consolidated Rulemaking- SB 163-2018-2019 Triennial Review of State WQStds
-Update to Human Health Standards for 56 Parameters-State Proposed Adoption of Federal Criteria (!WRONG!)-(Partially) Corrected During Public Comment Period -Legislature Removed Standards from Rulemaking Package-WV DEP to Re-Calculate During Interim
2019 Regular Legislative Session
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• Narrative WQStds: -Interpretive Rule- Impairment Listing Decisions
- “Compliance Range” of Bug Scores 61 to 72-For 303(d) Listing Purposes (Chambers Decisions, EPA Settlement Agreements, etc.) -Narrative WQStds Permitting Guidance Document Revision Will Be Necessary -Just Published for Public Comment
State Regulatory Update- CWA
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State Regulatory Update- CWA
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Federal Update-CAA• CO2 NSPS for New Coal Plants / CPP Existing Plants
-1,900 lbs. Large EGUs / 2,000 Small EGUs-Improve Efficiency of Existing Plants
• Hg MACT ***Most Expensive Regulation in History***-Keep Hg MACT limits in Place (Compliance)- “Co-Benefits” Removed from CAA Analysis (SO2, NOx, PM, etc.)-$4 to $6m in health benefits vs. $7.5 to $10b in Compliance Costs. Total Costs of $175b (EPA & EIA)-Undermines the Rule Legally- Major CAA Policy Change -Damage Has Been Done (400+ Plants, 600+ EGUs)
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• Waters of the United States
-Narrow Scope of Federal Jurisdiction
-Ephemeral Streams
-Manmade / Impacted “Features”
-402 vs. 404 Jurisdiction
-Implementation Will be Complicated
-Clarification Needed
Federal Update-CWA
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• Permit as a Shield (State Program Amendment)
-Published in the FR Oct 2018
-Waiting for Final Publication / Approval
• Aluminum WQStds (State Program Revision)
-Letter Received by WV DEP Feb 11 2019: Final EPA Comments / Concerns
-Drafting Response Now (WVCA & WV DEP)
-Push to a Resolution
(Complicated by Federal Hardness Criteria)
Federal Update-CWA
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• Three-Year Not Started Permits (2012)>100 Permits Issued in W.Va. Where Mining Not Commenced Within 3 Years or Started After 3 Years -Federal Lawsuits in W.Va. and Alaska: Permit Expires “As a Function of SMCRA” -W.Va. Did Not Follow Internal Policy for Notifying Permit Holders of Anniversary Date-WV DEP to Issue “Retroactive Extensions”-Administrative Confusion, TDNs and Continued Litigation BUT….-Feb. 15, 2019: Favorable TDN Decision: Issuance of Extension not “inconsistent w/ SMCRA”
Federal Update- SMCRA
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Federal Update- SMCRA
OSM Has Not Approved a West Virginia Program
Amendment in 16 Years
• MAJOR Program Improvements:
-Contemp. Reclamation
-Blasting -Inactive Status -Special Reclamation Fund -CWA vs. SMCRA
• ???
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• ESA Listings Continue…
• Species-Specific Protection & Enhancement Plans
-Crayfish
-Candy Darter
-Recitation of What is Already in Your SMCRA, CWA Permits
• F&WS Director
Federal Update- ESA
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2019 & Beyond: Federal Issues
• Complete Comment Periods (CAA, WOTUS)
• Narrative Standard
• F&WS: New Director Nominated & Confirmed, Bi-Op, Protections of the Mining Program
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• WOTUS Rule- Finished, Get Ready for the Legal Challenges
• Mitigation / 404 Permitting Pittsburgh, Huntington- Preference for Mitigation Banks (2008 Rule) But Disregards Guidance Issued by the Corps Specifically for the Coal Industry in Appalachia
-Why?
- “Start Over” with the Corps- Permitting Dialogue, Policy Discussions, etc.
2019 & Beyond: Federal Issues
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• Coal Jobs & Safety Act Rulemaking
• Coalfield Development Office (fees, rulemaking)
• Narrative Interpretive Rule
• Think Big: Category A, Trout Streams
(West Virginia Environmental Policy Act of 2020)
2019 & Beyond: State Issues
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Thank You