West Virginia Executive Spring 2019 | Page 50

and China. Feeling the brunt, the coal industry experienced its own downturn as a result. Fortunately for West Virginia and its coal miners, that decline was offset by Congress’ passage of an amendment to the Clean Air Act in 1990 that introduced regulations on sulfur dioxide and acid rain emissions that directly impacted the coal used by electric utility companies. These utilities were required to either install emission control technology to remove the sulfur dioxide properties of their emissions or switch to low-sulfur coal. As a result, the coal industry turned to providing steam coal for electricity because of its low-sulfur dioxide compo- sition and ability to burn quickly at very high temperatures. This industry shift transitioned the mining priority in Southern West Virginia away from metallurgical coal used for steel and back toward steam coal. West Virginia’s overall coal production during this time increased from 122 million tons in 1980 to 171 million tons in 1990. “The amendments to the Clean Air Act hurt production in other states with higher sulfur coal, but it helped us in West Virginia,” says Bostic. “As a matter of fact, that huge demand for low-sulfur steam coal probably saved Southern West Virginia because metallurgical coal demand nearly evaporated during that time.” The 2000s brought another halt in the demand for coal due to proposed changes in environmental policy regulations. The Mercury and Air Toxic Standards rule, announced by the EPA in March 2011, called for a reduction in emissions from coal- and oil-fired power plants. The proposal, if passed, would have required utility companies to install another type of scrubber technology to remove mercury from their emissions. Despite litigation delays, electric utility plants pursued mea- sures to comply with the new standards. About 400 power plants opted to close around the U.S. instead of installing the expensive emissions control technology, which would have cost approximately $1 billion per plant. This eventually lowered the number of power plants receiving shipments of West Virginia coal from 165 in 2008 to 51 in 2018. In 2015, the Supreme Court ruled that the EPA unlawfully failed to consider these costs when deciding to regulate the emissions from the power plants. Unfortunately, the closure of power plants prior to this decision had already halted the demand for steam coal, resulting in record layoffs and record- low production. “Unfortunately for West Virginia, the power plants that were closed were the ones that didn’t already have the scrub- bers, which eliminated the need for low-sulfur steam coal,” says Bostic. “The mercury regulation wiped out the demand for our steam coal.” The Challenges of Today’s Market Today, coal is once again experiencing an upturn, thanks to global demand for the fossil fuel. According to the West Vir- ginia University Bureau of Business and Economic Research’s “2018-2022 West Virginia Economic Outlook Report,” after falling rapidly from 2013-2016, coal exports have surged in recent years due to new growth in global steel production and Congratulates the 2019 Sharp Shooters! WEST VIRGINIA’S TOP-RANKED DESIGN FIRM #1 in West Virginia #31 in Mid-Atlantic Region When expectations are high to solve complex infrastructure and development needs, Thrasher delivers the resources required to help communities and industries thrive. We’re always ready to roll up our sleeves and tackle the challenging projects that might give others pause. For more information, visit www.thethrashergroup.com. Bridgeport 48 Charleston WEST VIRGINIA EXECUTIVE Beckley Burton 1-800-273-6541