E-Newsletter

ENERGY EQUALS JOBS

On April 18, 1977, President Jimmy Carter said, “Because we are now running out of gas and oil, we must prepare quickly for a third change, to strict conservation and to the use of coal and permanent renewable energy sources, like solar power.”  Two things about this statement shock me.  Nearly forty years have passed since Carter made these remarks and oil and natural gas continue to supply more than 60 percent of our nation’s energy needs, and even Jimmy Carter understood the importance of coal.  Sadly, President Obama and his administration do not.  The ever increasing regulatory burden that they continue to thrust onto our power plants and energy companies is making it harder and harder for coal to stay in business.

I recently had the opportunity to survey Dominion’s Hybrid Energy Center (HEC) in Virginia City.  A remarkably impressive facility, the energy center is said to be one of the cleanest power stations of its kind.  By utilizing a highly advanced clean-coal technology – advanced circulating fluidized bed (CFB) – Dominion is also able to use coal waste and renewable energy sources like wood waste.  When combined with current technology, CFB emits low levels of sulfur dioxide, nitrogen oxides, particulate matter, and mercury.

 In addition to the environmental advances, the positive impact on the local economy is going to be great.  According to a Virginia Tech economic impact study, the HEC will generate about $440 million a year in tax revenues and other benefits for the St. Paul area.  On an average weekday during the fall, roughly 2,300 men and women were employed at the construction site, much higher than the 1,000 employees originally projected.  Dominion expects to have a permanent staff of about 75, but predicts 350 mining jobs will be created.  If you count the plant workers and the truck drivers hauling in the coal, and add all the economic activity that will come from the cars these workers buy, the restaurants they eat in, and the stores they shop at – among other things – one can only imagine the direct and indirect impact this plant will have on jobs in the region. 

 It comes as no surprise to those that understand the coal industry that Dominion recognized the economic potential of the Ninth District.  To be clear, Dominion is not the only one benefitting from this plant.  Coal jobs provide some of the highest paying jobs, for one of the largest groups of people, in our region.  In 2010, ABC News reported that ‘the average starting salary for a coal mine worker is $60,000.’  To put that into perspective, last year, the New York Times reported ‘the median starting salary for students graduating from four-year colleges in 2009 and 2010 was $27,000, down from $30,000 for those who entered the work force in 2006 to 2008.’  The contrast is striking.

 Given the proven and potential economic benefit of coal jobs, the average American is likely puzzled by the actions of President Obama and his administration.  President Obama is constantly reminding us that he is fighting for American jobs.  What about the coal jobs?  What about the jobs tied to coal at companies like Norfolk Southern a train company that boasts ‘coal is our specialty’, Carter Machinery which provides equipment to coal companies, or Southern Coal Corp., now the owner of a six-story building in downtown Roanoke?  

President Obama also regularly advertises his commitment to an “all-of-the-above” energy strategy.  But then, the EPA introduces new greenhouse gas regulations that, I believe, would effectively end the production of new coal-fired power plants.  Thankfully this new rule is not final, and Congress can still act to rein in the unelected EPA.

The United States has more recoverable coal than any other nation.  According to the National Energy Technology Laboratory (NETL), part of the Department of Energy’s national laboratory system, the 272 billion tons of coal reserves in the United States represent one-quarter of the world's total estimated coal supply.  With the growing demand for coal in developing areas, America needs to unleash the coal industry. 

The economy needs a boost.  The American people deserve the high paying coal jobs.  And, if we really care about the environment, the EPA shouldn’t block environmentally smart, responsible U.S. companies (like Dominion) from leading the world in coal power.  Make no mistake about it; the demand for coal worldwide will continue to grow, as countries like India and China pull themselves out of poverty.  The question is will the U.S. be the supplier or will other countries get the high paying jobs?
                                          
As always, if you have questions, concerns, or comments, feel free to contact my offices.  You can call my Abingdon office at 276-525-1405 or my Christiansburg office at 540-381-5671.  To reach my office via email, please visit my website at www.morgangriffith.house.gov.
                                           

                                                                      ###