For the first time ever, the U.S. Environmental Protection Agency (EPA) proposed national standards for mercury, arsenic and other toxic air pollution from power plants this week.  The new standards would require many power plants to install pollution control technologies on their stacks to cut emissions of mercury, arsenic, chromium, nickel and acid gases.

When enacted, these standards will prevent as many as 17,000 premature deaths and 11,000 heart attacks a year and will particularly benefit children, preventing 120,000 cases of childhood asthma symptoms and about 11,000 cases of acute bronchitis among children each year.

Kentucky has 21 power plants located in the state and 22 within 30 miles of our borders. Our in-state plants are, on average, about 40 years old and many lack even basic air quality protections. This means Kentuckians are exposed to - through breathing, eating and drinking - potentially high amounts of these air toxins, especially mercury. Every river and lake in Kentucky is under advisory for mercury contamination. Kentuckians also face one of the highest risks in the country of dying from exposure to coal-burning power plant air pollution.

EPA estimates that instituting these new rules will provide employment for thousands, by supporting 31,000 short-term construction jobs and 9,000 long-term utility jobs. Check KFTC's blog for additional information about how to comment on this rule and where public hearings will be held.

To read the press release about the standards from the EPA in full, click here.

UPDATED: Check the bottom of this blog post for news updates as they come in.

We have some great news to announce: The coal-burning power plant proposed by the East Kentucky Power Cooperative (EKPC) has been canceled by the utility.

EKPC has entered into an agreement with Kentuckians For The Commonwealth, Kentucky Environmental Foundation, the Sierra Club, three individual co-op members, the Kentucky attorney general, and Gallatin Steel (EKPC’s biggest industrial customer). Under the agreement, EKPC will halt its plans for the proposed coal-burning power plant in Clark County by abandoning the permits it needed to proceed with construction. The cooperative also committed $125,000 toward a collaborative effort in which the public interest groups, EKPC and its member co-ops, and other parties will work together to evaluate and recommend new energy efficiency programs and renewable energy options.

This is a new day for Kentucky’s rural electric co-ops, and a great step toward new power for Kentucky. KFTC member Steve Wilkins, a Blue Grass Energy co-op member, has been active in the campaign to stop the Smith plant and bring new power to the co-ops. About today’s agreement, he said:

The Smith coal-fired plant meant nearly a billion-dollar investment and a further 50-year commitment to dirty power. Canceling the plant is a breath of fresh air. Even better, resources can now be redirected and the window opened to collaboration on clean energy alternatives letting the sun shine in on a New Power tomorrow; a tomorrow where rural electric cooperatives work shoulder-to-shoulder with their communities making electricity more affordable through energy-efficient housing and renewable energy sources.”

KFTC members, along with our allies at the Sierra Club and the Kentucky Environmental Foundation, have been very active in urging EKPC and the distribution cooperatives to pursue energy efficiency and renewable energy solutions instead of the Smith plant. Studies have shown that clean energy technologies would be a cost effective way to meet EKPC’s demand, while also reducing financial risk to customers, generating jobs throughout the region, and benefiting health and the environment.

KFTC members are excited by the news. Tona Barkley, a member of Owen Electric Cooperative who ran for her co-op board of directors earlier this year, shared her thoughts:

“I say Hallelujah! I believe this decision by EKPC is the right one for Kentucky. I am heartened by this new development and the commitment EKPC has made to work in a collaborative fashion with co-op members and the other parties to the agreement. This new openness and more democratic method will, I believe, help bring the co-ops back to their original purpose--serving its rural members in a transparent fashion.  And I am very hopeful that this moment marks a turning point in Kentucky towards energy efficiency and renewal energy, both of which will provide economic and job development much greater than another coal plant would have done.”

The four main provisions of the today’s agreement include:

• EKPC will withdraw all the permits it needs for construction of the Smith plant, including its Certificate of Public Convenience and Necessity, air permit and dredge-and-fill permit.
• EKPC will form a collaborative with KFTC, our allies, and other key stakeholders to expand the use of renewable energy and energy efficiency programs by the co-ops.  
• KFTC and our allies will dismiss a number of lawsuits and administrative challenges that are currently pending against EKPC.
• KFTC and our allied groups will not oppose EKPC’s effort to recover costs already spent on the plant.

Many people involved with this campaign are especially delighted with EKPC’s agreement to lead and fund a collaborative effort to expand the co-op’s use of energy efficiency and renewable energy. This working group will include representatives from KFTC, our allies, the Kentucky Office of the Attorney General, the distribution co-ops, plus other key stakeholders. EKPC has agreed to provide initial funding for the collaborative’s efforts, including up to $100,000 for studies of wind resources or other forms of renewable energy. The group will meet at least quarterly to evaluate and recommend cost-effective clean energy solutions.

KFTC members earlier proposed a set of ideas in a plan called “Renew East Kentucky” that could become a focus for discussion within the collaborative. This plan describes clean energy strategies that could create thousands of new jobs in eastern and central Kentucky for construction trades, engineers and electricians, while also helping customers to save energy and money.

“Sometimes it can feel like you are a voice in the wilderness,” said KFTC member Randy Wilson, who emphasized energy efficiency during his run for Jackson Energy’s board of directors in 2009. “But it’s important to get involved and keep pushing for solutions. Now we have a chance to work together with the co-ops to create jobs here at home while at the same time helping people save energy and money.

Folks throughout Kentucky, both in the co-ops and out, have worked toward this moment. Each and every action you took helped create the conditions for this good outcome!

• 

  100 - 200 folks attended the public hearings for the Smith plant’s air and dredge-and-fill permits, asking the agencies to consider the clean alternatives to the coal-burning plant

• KFTC members supported their fellow members who ran for their co-op boards of directors, helping to gather thousands of petition signatures and speaking up in support of democracy and clean energy in the co-ops

• Many of us throughout the region scheduled meetings with and made calls to their local co-op directors, informing them of alternatives to the Smith plant and moving some toward a cleaner energy vision

• Hundreds of Kentuckians sent letters to the Kentucky attorney general, asking him to speak up on behalf of Kentucky co-op members before the Public Service Commission

• Members throughout the state have spoken with their local media, offered quotes for news stories, been interviewed for radio shows, and sent in numerous letters to the editor and op eds in support of clean energy in the co-ops and a better Kentucky

• Members hosted house parties and spoke with neighbors, and groups, and colleges about the risk of the Smith plant and the potential for the clean energy alternative.

• And too much more to list here...

KFTC members have much to be proud of, and are thankful to our allies, including the Sierra Club and the Kentucky Environmental Foundation, who have recognized from the beginning that this hasn’t been a campaign simply to stop a coal plant, but a movement of Kentuckians taking action for clean energy and a better future for Kentucky.

Now we can all say, as Randy Wilson said at I Love Mountains Day two years ago, “We were there when we started to turn this thing around!”

UPDATED: This section will be updated periodically with news coverage of the Smith plant cancellation.

• Nick Engelfried, Just Means, "Electricity Co-op Chooses 'New Power' over Coal Energy and Emissions." This blog post puts the Smith plant cancellation in a national context.
  
• Sue Sturgis, Yes! Magazine, "In Coal Country, a Win for Clean Energy." This blog was also posted on Facing South, the online magazine of the Institute for Southern Studies.
  
• Ronnie Ellis (with reporting from Bill Robinson), Richmond Register, "EKPC drops plans for coal-fired Clark County plant." This article also appeared in the Ashland Daily Independent, the Morehead News, and other papers throughout the state.
  
• James Bruggers, Louisville Courier Journal, "East Kentucky Power cancels Clark County plant" In this article, EKPC spokesperson Nick Comer said the decision was largely based on the economy, but "acknowledged that pressure from environmental groups played a role."
• Scott Sloan, Lexington Herald Leader, "East Ky. Power abandons plans for controversial power plant"
  
• Jeff Biggers, Huffington Post, "BREAKING: Kentucky Cancels Coal Plant, New Power Movement Electrifies Grassroot Alliance"

Yesterday the Kentucky Public Service Commission (PSC) launched an investigation into East Kentucky Power Cooperative's (EKPCs) request for a new coal-burning power plant in Clark County.  The PSC decided to open their investigation after responding to a complaint that KFTC and our allies filed last October. 

If built, the Smith plant would cost nearly $1 billion dollars -- which would be passed onto rate-payers who are also owners of the co-ops.  We are pleased that the PSC is taking a good, hard look at the need for the Smith plant.  Given the large expense and financial burden it would be for rate-payers, and the potential for more affordable, cleaner energy options, a closer examination of the Smith plant is a logical step for the PSC.

The PSC investigation centers around a “Certificate of Public Convenience and Necessity” that EKPC must receive from the Kentucky PSC to build its proposed plant. EKPC applied for and received the certificate for the proposed plant more than three years ago.  However, costs, electricity demand, technology and EKPC’s financial stability have since changed significantly, undercutting EKPC’s arguments that it still needs the plant.

The PSC's investigation has the power to stop the proposed Smith plant and help move EKPC in the direction of more affordable and cleaner energy options.  As part of its investigation, the PSC will be holding a public hearing.  Stay tuned as we learn more and the campaign moves forward.  And thanks to all KFTC members who have taken action in this campaign.  With great steps forward like this one -- where the PSC listened and responded to us --  it is clear that all our efforts are paying off!

Read some of the great news article by clicking on the links below:

Lexington Herald-Leader story
Courier-Journal article

Associated Press article that was picked up in Business Week

The Public Service Commission's press release

UPDATE: At Tuesday's public hearing (see more below) the Army Corps of Engineers announced they have extended the deadline and are accepting written comments on the Smith plant's dredge & fill permit until June 18. Comments may be be submitted to the Corps via email: lrl.regulatorypubliccomment@usace.army.mil 

Click here for information to help you compose your comment.

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More good news on the Stop Smith campaign. Tuesday night, about 125 people attended a public hearing on a proposed permit that would allow East Kentucky Power Cooperative to impact Kentucky waterways and wetlands with coal ash. Of the 32 people who took the microphone, 31 opposed EKPC's plan to build a new coal-burning power plant in Clark County.

This "dredge and fill" permit - also called a 404 permit - would allow EKPC to impact more than 14 miles of streams including 210 stream channels and nearly 5 acres of wetlands, burying about half of these waterways that feed into the Kentucky River under toxic coal ash.

Many speakers focused on the dangers of mercury in the coal ash and other potential long-term effects. The Army Corps of Engineers will consider the comments in deciding whether to grant the permit.

John Patterson, who owns land adjoining the site, said he worries about his family and how the plant will affect future generations. "This is something that, quite frankly, is scaring me to death."

Patterson said Kentucky has an opportunity to be a leader in innovative energy technology. "The eyes of the nation really are upon us," he said.

Miranda Brown, also a Clark County resident, worries about her drinking water. "94 percent of my drinking water comes from the Kentucky River," she said. Brown gets her water from Winchester Municipal Utilities, which has intakes near the site where coal ash will be dumped.

"The people of Clark County know better than to defecate in our own water. Can we trust the Army Corps of Engineers to do the same?" Brown asked.

Only one speaker, William Quisenberry of Winchester, expressed support for the plant, saying it would bring good jobs and that he trusted EKPC and the state to keep the plant safe. But many other speakers disagreed, saying energy efficiency and renewable energy would produce many more jobs. They also cited the recent Gulf oil spill and the Kingston coal ash spill as examples of industry and government not doing their jobs to ensure safety.

Allies KFTC, Kentucky Environmental Foundation and the Sierra Club offered free mercury testing at the hearing to call attention to the already high mercury levels in Kentucky waterways.

If you missed the hearing, you can replay KFTC's live blog of the event, and watch video clips from the hearing at this link: http://www.kftc.org/blog/archive/2010/06/08/live-blogging-smith-404-permit-hearing

For more information about the hearing, follow these links:

Winchester Sun article: http://www.winchestersun.com/stories/2010/06/09/loc.105845.sto

Lexington Herald Leader article: http://www.kentucky.com/2010/06/08/1298302/dozens-oppose-proposed-power-plant.html

WKYT video clip: http://www.wkyt.com/home/headlines/95923954.html

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More photos from the hearing:

  

  

  

  

     

Live commentary

KFTC members and allies will be posting notes, commentary, and photos from the hearing below. If you wish to participate, you can either leave comments at the bottom of the page or join the conversation on Twitter using the #stopsmith hashtag

Live video from the hearing

We will be broadcasting live video of speakers and interviews with attendees intermittently throughout the hearing.

The proposed coal-burning Smith plant is refusing to die.

Your voice is needed to end it once and for all!

The coal-burning Smith plant proposed by the East Kentucky Power Cooperative is the living dead. 

It's taken hit after hit in recent weeks from the work of KFTC and our allies – we've had some good success. For example, EKPC has temporarily pulled its request for financing approval, a major audit said the plant is the "biggest risk" EKPC will face in many years, and the U.S. EPA has objections to the state-issued air permit .... yet, EKPC is marching on, seeking a permit to put millions of tons of coal ash from the plant into Kentucky's streams. It's time to tell EKPC and state officials to pull the plug and stop wasting taxpayer money. It's time for good, local, clean energy jobs instead.

You can help stop this coal zombie:

Attend the public hearing held by the Army Corps of Engineers next week, Tuesday, June 8, at 7 p.m. in Winchester. Stand with folks from all over the state to demand a clean alternative to the Smith plant. Help say it's time to end this toxic project once and for all. 

Click here if you're considering attending the hearing.

Background

This hearing is our time to make a public demonstration of our opposition to a federal permit that would allow EKPC to impact 14 miles of waterways, burying about half of them under hazardous coal ash. And, it's time to stand up once again in support of the clean and less-costly alternative of energy efficiency, weatherization and renewable energy. All Kentuckians, whether you receive your power from EKPC or not, are stakeholders in this process as the plant would contaminate the air we all breathe and the water we drink. Already, every waterway in Kentucky is already under a fish advisory warning due to mercury contamination from coal burning power plants. Click here to download a flyer with more information about the hearing and the impacts of the permit.

Now is the time to say, “Enough is enough!” The solution is simple and clear. Energy saving and renewable energy programs won’t need a permit because they won’t pollute our water. We must use this opportunity to speak out, letting the U.S. Army Corps of Engineers and EKPC know that this clean energy solution is the just and healthy choice, not only for EKPC ratepayers, but for all Kentuckians.

Share our Facebook event about the hearing.  If you are on Facebook you can invite your friends to the event.

An important step to achieving a clean and economically viable future for rural electric cooperatives, their member-customers, and their local economies will be the establishment of “on-bill financing” programs which will help overcome the up-front costs of implementing energy efficiency and weatherization measures.

The Rural Energy Savings Program Act

(S. 3102 / H.R. 4785)

On March 10, 2010, the Rural Energy Savings Program Act was introduced in Congress. The bill was introduced in both the House and the Senate with bipartisan support.

Under the new program proposed by the bill, the US Department of Agriculture’s Rural Utilities Service (RUS) will create a $4.9 billion loan program available to cooperatives with a zero percent interest rate. Cooperatives in turn will make this money available to consumer members in the form of micro-loans with an interest rate of no more than 3 percent, which can be paid back primarily through savings on their electric bills. This type of loan program is called “on-bill financing” because the loan payments would be made right on the utility bill. Another key component is that the loan would stay with the real property (i.e. the electric meter) rather than with the utility customer.

Bipartisan co-sponsors of the Senate version of the bill (S. 3102) include Senators Jeff Merkley (D-OR), Lindsey Graham (R-SC), Richard Lugar (R-IN), Jeanne Shaheen (D-NH), Tim Johnson (D-SD), and Michael Bennett (D-CO).

A companion bill in the House of Representatives (H.R. 4785), was introduced by Representatives James Clyburn (D-SC), Tom Perriello (D-VA), Ed Whitfield (R-KY), and John Spratt (D-SC).

The National Rural Electric Cooperative Association is supporting the two bills, and you can find more information on their website.

Why this bill is important and its implications for Appalachia

The East Kentucky Power Cooperative (EKPC) is a non-profit electric utility that provides power to 16 rural electric cooperatives across 87 Kentucky counties and is currently in the permitting process for the proposed construction of a new coal‐burning power plant in Clark County, KY, called the Smith plant. About half of the counties served by EKPC are in Appalachia, and about a quarter are coal-producing counties. Many of these are some of the most economically distressed counties in the nation.

A recent report commissioned by Kentuckians For The Commonwealth, Kentucky Environmental Foundation, and the Cumberland Chapter of the Sierra Club found that an investment in a combination of energy efficiency, weatherization, hydro-power and wind power initiatives in the region would generate more than 8,750 new jobs for Kentucky residents, with a total impact of more than $1.7 billion on the region’s economy over the next three years. This alternative approach would meet the energy needs of EKPC customers at a lower cost than the proposed coal plant.

Federal and state policies that make possible on-bill financing for the energy efficiency and weatherization portion of the alternative are important steps toward a clean energy future for EKPC co-ops and their members. Passage of the Rural Energy Savings Program Act is integral to this future, and the jobs and positive economic impact it will bring.

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UPDATE: As of May 12, bill now has 15 co-sponsors for the Senate version. And the House version is now co-sponsored by four of Kentucky's six representatives: Rep. Ed Whitfield (KY-1), Rep. Ben Chandler (KY-6), Rep. Hal Rogers (KY-5), and Rep. Brett Guthrie (KY-2).

Also, we should mention that on the state level, the Mountain Association for Community Economic Development (MACED) is working on a pilot of the on-bill financing idea with four distribution co-ops in eastern Kentucky. MACED and those co-ops are waiting for Public Service Commission approval but are currently working together to get the systems in place to provide on-bill financing options to co-op members. 

The U.S. Environmental Protection Agency unveiled two options today to regulate waste from coal-burning power plants in order to better protect public health and drinking water sources. The two competing alternatives would provide varying levels of protection to the state water resources, and could take years to implement.

“The time has come for common-sense national protections to ensure the safe disposal of coal ash,” said EPA Administrator Lisa Jackson. “We’re proposing strong steps to address the serious risk of groundwater contamination and threats to drinking water and we’re also putting in place stronger safeguards against structural failures of coal ash impoundments. The health and the environment of all communities must be protected.”

Coal ash, also known as coal combustion waste and coal combustion residue, contains toxic chemicals and heavy metals such as arsenic and lead — pollutants that cause cancer, birth defects, reproductive problems, damage to the nervous system and kidneys, and learning disabilities in children.  Kentucky coal-burning plants generate a total of 8.5 million tons of this waste every year, housed at 44 impoundments across the state. Of these impoundments, 7 have been labeled as imminent threats to human health and safety by the EPA. To learn more about it, click here.

One proposal option, the "Subtitle C" option, would designate coal ash as a hazardous waste. This type of waste already has a national regulation and permitting system in place under the federal "Resources Conservation and Recovery Act" (RCRA). Coal-burning power plants and state enforcement agencies would be expected to take steps over the next 5 years to ensure that existing and new impoundments meet these stricter guidelines. A plethora of scientific research has shown that coal ash meets the federal definition of "hazardous" and is also leaching into groundwater and drinking water sources near storage sites.

Under option 2, or non-hazardous regulation, the EPA would require wet coal ash impoundments to be retrofitted with a composite liner, rather than being phased out. If the disposal site chooses not to comply, the regulation would prohibit receiving additional coal ash, and require the closure of the unit within five years. The closure process and post-closure groundwater monitoring would be self-implemented, with no federal or state oversight. The EPA notes that this option would be much more difficult to monitor and enforce.

Both designations would leave in place the rule allowing coal ash to be recycled in so-called "beneficial uses" such as drywall, concrete and other construction materials. Many of these uses are virtually untested for their health effects or have little benefit in application. For example, at the proposed Smith plant, which would generate 520,000 tons of the waste annually, its coal ash would be buried with structural fill, which the company describes as a "beneficial re-use." Both options would also prohibit coal ash disposal in unlined landfills, although disposal in old mining sites would still be allowed.

Jefferson County chapter member Beth Bissmeyer supports the first option. "It's outrageous that storage and disposal of a substance that contains known cancer-causing pollutants has gone unregulated for so long. I live within five miles of the Cane Run Road coal-burning power plant and coal ash landfill and roughly 10 miles from the Mill Creek power station that also stores coal ash. The more I learn about the dangers of coal ash and its harmful effects on the health of people and the environment, the more sickened I become, knowing that the safety and health of my community is being neglected. Seeing the EPA finally take some steps toward coal ash regulation is great, but I hope they go far enough and declare coal ash a "hazardous waste." To do any less would be unjust and unreasonable."

The announcement comes after the EPA failed to meet self-imposed deadlines in the past concerning the designation of coal ash as a hazardous substance. The proposals will be turned over to the public for a 90-day comment period and one or more public and stakeholder hearings, after which the EPA will announce a decision.

“I would want communities to know that I believe, that EPA believes, it is very important to get on with this regulatory process,” said Jackson. “There has been lots of discussion already. We’ve heard from elected officials, from members of congress, from state governments, from private industries. I’d like to hear from public citizens about what they think is the most effective rule.”


In December of 2008, one billion gallons of toxic coal ash burst through a dam near a Tennessee Valley Authority power plant in Kingston, Tenn., polluting the Clinch and Emory rivers and launching the safety of coal ash into the national environmental debate.

The public can make comments on the proposed coal ash regulations until the end of the year once the final rule is posted (check in the next couple of weeks). Make comments by typing in EPA–HQ–RCRA–2009–0640 in the search box at www.regulations.gov.

(Parts of this blog entry are copied from Appalachian Voices)

Locations of coal ash impoundments in Kentucky:

More encouraging news this week in our campaign to prevent construction of a coal-burning power plant in Central Kentucky and bring Kentucky’s rural electric cooperatives back to their democratic principles.

The Public Service Commission released an audit Thursday that found serious issues with East Kentucky Power Cooperative’s governance and financial condition. The audit makes it less likely that EKPC will be able to obtain private financing to build the Smith plant.

The PSC, a three-member board that regulates utilities, had asked for the audit in December 2008 after EKPC’s financial position had declined for several years. The audit looked at governance, strategic planning, interaction of EKPC’s management with its board, and the utility’s operations, including financial systems, business strategies and operating policies.

Among other findings, the independent auditor found that EKPC is threatened by a “real, continuing and hazardous conflict” created by an overriding priority on keeping rates low at the expense of the utility’s financial condition. It also said EKPC has been too reliant on building, owning and operating electric generating facilities and has not sufficiently explored other options such as purchasing power from neighboring utilities.

The audit recommended that changes should ultimately be driven by co-op customers in EKPC’s 16 rural electric cooperatives, which have more than 500,000 customers in 87 counties in eastern and central Kentucky. This will be an important message for co-op members to carry with them as they engage with co-op directors and other members at the co-ops’ upcoming annual meetings. (Stay tuned to this blog and the next issue of balancing the scales for more information about the annual meetings.)

Click here to read the PSC’s press release about the audit. And here to read the full audit.

Last week, EKPC had asked the PSC to temporarily withdraw its application for approval of private financing for the Smith plant so that it might reassess its finances.

Here are links to news coverage of the management audit.

From The Lexington Herald-Leader

From the Public News Service

From The (Ashland) Independent

From CNBC

From The (Maysville) Ledger Independent

A quick and short note out to all our blog readers. A breaking story in the Lexington Herald Leader announces a success in our campaign to halt the proposed coal-burning Smith plant and bring energy efficiency and renewable energy programs instead to Kentucky's rural electric co-ops:

East Kentucky Power Delays Coal Plant

Read all about it at the Herald Leader.

The withdrawal of the request for financing approval is a major victory for environmental groups ... that have hammered the cooperative in recent years for embracing a project that they said was dangerous for Kentuckians because of the health effects of burning coal for electricity...

The groups, including Kentuckians for the Commonwealth, the Kentucky Environmental Foundation and the Sierra Club, have taken actions including commissioning studies showing that the proposed plant would be a major drain on finances and also filing suits to stop the construction process.

And it's great that the article mentions our work toward a solution:

Environmental groups have argued the cooperative would be better off spending money to educate customers about consuming less electricity and to also utilize more renewable sources of energy.

We'll have more soon. But now, time to celebrate that we can go full force on working to bring clean energy to eastern Kentucky's co-ops.