The Battle for PRB Coal Plants WIA Spring Meeting March 28, 2019 Randy Eminger Executive Director Energy Policy Network Cold Hard Facts - 2018 Positive Negative • Wyoming sold 296 mmt • 15 plants have closed coal • 133 power plants • 27 states • 27 more announced closure (next 5 yrs) • Representing 46 mmt of PRB coal Cold Hard Facts PRB COAL CONSUMING POWER PLANTS IN 2018 PRB COAL CONSUMPTION IN 2018 (No. of Plants) (million tons) 9.5 15 36.5 Retired in 2018 27 91 Source: DOE EIA & EVA Research Retired in 2018 Retiring in next 5 Years Retiring in next 5 Years No Announced Retirement No Announced Retirement 250.0 Source: DOE EIA & EVA Research Mission • Stop early closure of coal-fueled power plants • Represent strictly Powder River Basin • Coal-consuming states (Midwest & South) • Operate strictly off of donations Out Funded • Total $168 million since 2011 • Tom Steyer, George Soros, (Rockefeller, Heinz, foundations) • Estimated contributions in 2018 - $72 million Michael Bloomberg $64 million check to ‘Beyond Coal’ campaign Battle in the Trenches • Build broad-based coalition (instate) • Intervene in regulatory proceedings • Conduct economic research • Litigate if necessary • Hire the right regulatory team (attorneys, experts) • Engage media/grassroots campaign Oklahoma Action Plan Supporting Closure Sierra club Wind industry Natural gas industry Closure Date – Jan. 1 2019 Coalition Electric Coops Large Industrial Railroads Consumer Groups 617 emails and 248 direct phone calls 2.6 MMT PRB Coal 13 Year Life Extension Battleground Arkansas (2017-18) White Bluff – 1,657 MW Independence – 1,678 MW Obama EPA denies State Plan and issued a Regional Haze FIP Require Scrubbers on all four units (Estimated cost $2 billion) Odds Against Us Sue & Settle Entergy negotiates with Sierra Club for a settlement Close White Bluff in 2024 Close Independence in 2025 Opposition Entergy (electric utility) Obama EPA Environmental Groups (Sierra Club, EDF, Earth Justice) Arkansas Action Plan Coalition Steel industry, Ark. Large Industry, Ark. Gas Consumers, Pulp and Paper, Tyson Foods, Lion Oil, Coal Industry Activation Governor, Attorney General, ADEQ Economic Research Legal briefs and intervention Three Key Wins 1) Ark. DEQ issue new SIP Scrubbers not needed Low-Sulfur coal meets Regional Haze standard 2) 8th Circuit Court case withdrawn 3) Retirement moved out White Bluff – 2028 (plus 4 years) Independence – 2040 (plus 14 years) 8.5 MMT PRB Coal 18 Year Life Extension Louisiana Action (2018) Sierra Club Sues Entergy (Nelson Plant) over Regional Haze Add scrubbers or close in 2025 EPN Action Worked with LDEQ (Low-sulfur coal = BART) LDEQ adopts ‘Low-sulfur coal’ standard EPA approves LDEQ SIP 1.5 MMT PRB Coal 9 Year Life Extension Indiana Battleground (2019) NIPSCO Close Shahfer and Michigan City plants (Shahfer - 2023) (Michigan City - 2028) CCR/ELG regulations Replace with Wind & Solar Opposition Sierra Club NAACP Electric utility 5 largest Industrials EPN’s Battle Plan Build a Coalition (Labor Unions, Georgia Pacific, Jasper County Commission, Power Plant Suppliers) PR and Grassroots Public testimony (March 11) Letters to the Governor Earned media (LTE’s) Intervention Both the IRP and Rate Case April 16-18 A Win Would Mean Added Life Shahfer 14 (5 years) Shahfer 15 (5 years) Michigan City (6 years) 16 years Must Offer to Sell Follows WY (SF 159) NIPSCO required to purchase electricity Additional PRB Sales 15.3 mmt Benefits to Power River Basin Power Plant Life Extended (yrs) Future Sales - mmt Sooner Station Coal Sales - mmt (annual) 2.6 13 33.8 White Bluff 4.3 4 17.2 Independence 4.2 14 58.8 Nelson 1.5 9 13.5 Total 12.6 40 123.3 Tax Revenue to the State State Severance Tax Gross Proceeds Tax Abandoned Mine Lands (County mills - 7% (30.5 cents/ton – of taxable value) WY receives 50%) Total (Annual) (7% of the taxable value) Federal Mineral Royalty (12.5% of sales price) (WY share – 48%) $9,702,000.00 $8,316,000.00 $9,702,000.00 $48,856,500.00 $21,136,500.00 Added Annual Tax Revenue (est.) - $48,856,500.00 Total Tax Benefit over Extended Life - $478,155,750.00 an. ti.- 5r" 1.: ENERGY POLICY NETWORK SuperGen "my Randy Emmger ExecuTive Director Energypolicynefworkorg