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Gov. Beshear:
Future energy security depends on prudent coal use


News and opinions from Gov. Steve Beshear's Communications Office

FRANKFORT, KY - In a meeting with President Barack Obama today, Governor Steve Beshear told the President that coal is a critical component in the nation's energy policy, and warned that abrupt changes in coal regulations would balloon energy costs and cripple manufacturing industries. Gov. Beshear joined other governors in Washington, DC, to discuss energy policy with the President.

"The current focus on coal is not just a Kentucky issue, it's not just a coal-state issue, it is a national issue," said Gov. Beshear. "The future of our nation's energy security and economic development depends on our ability to continue using our coal resources, our most abundant, reliable, and low-cost energy source."



President Obama met with the governors three days after presenting his budget proposal to Congress, which includes $6 billion for clean energy technology research and development.

Gov. Beshear submitted a letter to the President, outlining Kentucky's significant contribution to the nation's energy supply and its unique position to grow and develop new energy sources.

"We have to be realistic about our baseload energy needs, and therefore, the importance of coal production and electricity generation must not be unduly hampered," Gov. Beshear wrote. "At the same time, we have to strategically plan for meeting the nation's energy needs through a newer, cleaner energy paradigm. I intend to make Kentucky a leader in this area."Drastic changes to energy policy would increase costs, cost jobs

The vast majority of Kentucky's electricity - 92 percent - comes from coal-fired power plants. Gov. Beshear explained that even though Kentucky makes up just 1.5 percent of the nation's population, the state is the nation's third largest automobile manufacturer and produces 30 percent of the country's steel and 40 percent of its aluminum. These manufacturing industries depend on vast amounts of the affordable energy that coal provides.Sudden changes to coal production or electricity generation regulations - especially through cap and trade markets -- would damage Kentucky's economy and force manufacturers to move elsewhere, Gov. Beshear said. The resulting increases in cost "will not only affect residential customers, but will force energy-intensive industries such as steel, aluminum and auto manufacturing to move - not to another state, but to other countries," he said.Kentucky positioned for new energy development

The Governor touted the state's successes in attracting new research and development, notably the Argonne National Battery Laboratory, which is developing advanced battery technologies for electric automobiles.Policies overseeing traditional energy sources have updated as well. Surface mining techniques have been improved, and the administration recently took steps to mitigate stream impact from coal mining. Kentucky's plans for improving energy efficiency are among the most aggressive in the nation. Gov. Beshear's policy calls for an 18 percent reduction in energy demand through efficiency by 2025.Federal delays impact energy production

Gov. Beshear pointed out that federal approval delays have a detrimental effect not only on Kentucky jobs, but also on energy production for the rest of the country. More than two-thirds of Kentucky's coal is sold to other states.Among the delays: nearly 50 permits for surface mining are under enhanced review by the EPA, despite the fact that many of the permits were submitted for approval more than five years ago. Efforts to build new coal-fired energy plants have been similarly thwarted. Most of Kentucky's current plants are more than 40 years old, and new facilities would drastically improve efficiency and productivity while incorporating carbon-reducing technologies.


This story was posted on 2010-02-04 00:51:11
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