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Advancing Coal Research and Development for a Secure Energy Future

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Advancing Coal Research and Development for a Secure Energy Future ADVANCING COAL RESEARCH AND DEVELOPMENT FOR A SECURE ENERGY FUTURE HEARING BEFORE THE SUBCOMMITTEE ON ENERGY AND ENVIRONMENT COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS FIRST SESSION THURSDAY, OCTOBER 13, 2011 Serial No. 112–45 Printed for the use of the Committee on Science, Space, and Technology ( Available via the World Wide Web: http://science.house.gov U.S. GOVERNMENT PRINTING OFFICE 70–591PDF WASHINGTON : 2011 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HON. RALPH M. HALL, Texas, Chair F. JAMES SENSENBRENNER, JR., EDDIE BERNICE JOHNSON, Texas Wisconsin JERRY F. COSTELLO, Illinois LAMAR S. SMITH, Texas LYNN C. WOOLSEY, California DANA ROHRABACHER, California ZOE LOFGREN, California ROSCOE G. BARTLETT, Maryland BRAD MILLER, North Carolina FRANK D. LUCAS, Oklahoma DANIEL LIPINSKI, Illinois JUDY BIGGERT, Illinois GABRIELLE GIFFORDS, Arizona W. TODD AKIN, Missouri DONNA F. EDWARDS, Maryland RANDY NEUGEBAUER, Texas MARCIA L. FUDGE, Ohio MICHAEL T. MCCAUL, Texas BEN R. LUJA´ N, New Mexico PAUL C. BROUN, Georgia PAUL D. TONKO, New York SANDY ADAMS, Florida JERRY MCNERNEY, California BENJAMIN QUAYLE, Arizona JOHN P. SARBANES, Maryland CHARLES J. ‘‘CHUCK’’ FLEISCHMANN, TERRI A. SEWELL, Alabama Tennessee FREDERICA S. WILSON, Florida E. SCOTT RIGELL, Virginia HANSEN CLARKE, Michigan STEVEN M. PALAZZO, Mississippi VACANCY MO BROOKS, Alabama ANDY HARRIS, Maryland RANDY HULTGREN, Illinois CHIP CRAVAACK, Minnesota LARRY BUCSHON, Indiana DAN BENISHEK, Michigan VACANCY SUBCOMMITTEE ON ENERGY AND ENVIRONMENT HON. ANDY HARRIS, Maryland, Chair DANA ROHRABACHER, California BRAD MILLER, North Carolina ROSCOE G. BARTLETT, Maryland LYNN C. WOOLSEY, California FRANK D. LUCAS, Oklahoma BEN R. LUJA´ N, New Mexico JUDY BIGGERT, Illinois PAUL D. TONKO, New York W. TODD AKIN, Missouri ZOE LOFGREN, California RANDY NEUGEBAUER, Texas JERRY MCNERNEY, California PAUL C. BROUN, Georgia CHARLES J. ‘‘CHUCK’’ FLEISCHMANN, Tennessee RALPH M. HALL, Texas EDDIE BERNICE JOHNSON, Texas (II) C O N T E N T S October 13, 2011 Page Witness List ............................................................................................................. 2 Hearing Charter ...................................................................................................... 3 Opening Statements Statement by Representative Andy Harris, Chairman, Subcommittee on En- ergy and Environment, Committee on Science, Space, and Technology, U.S. House of Representatives .................................................................................... 16 Written Statement ............................................................................................ 17 Statement by Representative Brad Miller, Ranking Minority Member, Sub- committee on Energy and Environment, Committee on Science, Space, and Technology, U.S. House of Representatives ....................................................... 18 Written Statement ............................................................................................ 20 Witnesses: Mr. Scott Klara, Deputy Director, National Energy Technology Laboratory Oral Statement ................................................................................................. 23 Written Statement ............................................................................................ 25 Ms. Janet Gellici, Chief Executive Officer, American Coal Council Oral Statement ................................................................................................. 37 Written Statement ............................................................................................ 38 Mr. Nick Akins, President, American Electric Power Oral Statement ................................................................................................. 44 Written Statement ............................................................................................ 46 Mr. David Foerter, Executive Director, Institute of Clean Air Companies Oral Statement ................................................................................................. 54 Written Statement ............................................................................................ 57 Mr. Stu Dalton, Senior Government Representative-Generation, Electric Power Research Institute Oral Statement ................................................................................................. 62 Written Statement ............................................................................................ 63 Appendix I: Answers to Post-Hearing Questions Mr. Scott Klara, Deputy Director, National Energy Technology Laboratory ..... 88 Ms. Janet Gellici, Chief Executive Officer, American Coal Council .................... 107 Mr. Nick Akins, President, American Electric Power .......................................... 110 Mr. David Foerter, Executive Director, Institute of Clean Air Companies ........ 112 Mr. Stu Dalton, Senior Government Representative-Generation, Electric Power Research Institute .................................................................................... 117 (III) ADVANCING COAL RESEARCH AND DEVELOPMENT FOR A SECURE ENERGY FUTURE THURSDAY, OCTOBER 13, 2011 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ENERGY AND ENVIRONMENT, COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY, Washington, DC. The Subcommittee met, pursuant to call, at 2:22 p.m., in Room 2318 of the Rayburn House Office Building, Hon. Andy Harris [Chairman of the Subcommittee] presiding. (1) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Chairman HARRIS. The Subcommittee on Energy and Environ- ment will come to order. Good afternoon. Welcome to today’s hear- ing entitled, ‘‘Advancing Coal Research and Development for a Se- cure Energy Future.’’ In front of you are packets containing the written testimony, biographies, and truth in testimony disclosures for today’s witness panel. I now recognize myself for five minutes for an opening statement. I want to welcome everyone to this afternoon’s hearing on, ‘‘Ad- vancing Coal Research and Development for a Secure Energy Fu- ture.’’ According to the Department of Energy, coal delivered 45 percent of America’s electricity supply in 2010, totaling 22 quadrillion BTUs of energy. This output is expected to grow an additional 25 percent by 2035. Dependence on coal is similar outside the U.S., representing 40 percent of global electricity generation. Coal delivers plentiful, affordable, and reliable electricity to mil- lions of homes and businesses every day. It provides power to the industrial and manufacturing sectors that drive our economic en- gine. Rarely, however, has a beneficial, life-improving resource upon which we depend so heavily been so maligned. Despite steadily improving efficiency and significantly cleaner processes, coal suffers from a reputation that leads many to think wrongly that we would be better off without it. This animus seems to be at an all-time high. In recent weeks, this Committee has spent considerable time examining the pending onslaught of regulations aimed at energy producers but particu- larly at coal energy producers. The review has highlighted the im- mense challenges facing the coal sector in light of EPA’s dogged and scientifically questionable efforts to order major changes to our electric generation system. The widespread negative impact of EPA’s forthcoming regula- tions are acknowledged even at senior levels of the Obama Admin- istration. An analysis by the Federal Energy Regulatory Commis- sion found that 40 gigawatts of coal-fired power generation could be forced into retirement, and that ‘‘could have drastic con- sequences for many parts of the country.’’ Similarly, DOE Deputy Assistant Secretary for Fossil Energy Jim Wood has estimated that EPA rules could force up to 70 gigawatts of coal offline, adding: ‘‘Number one, electric rates are going to go up. Number two, whether or not construction jobs in the green industry are created, I think there are virtually no manufacturing jobs that are likely to be created from the replacement of coal. Three, transmission grid stability is likely to emerge as a major issue, both because of the shutdowns and because of the intermittency of renewables.’’ The impact of Administration policies on electricity prices and coal plant shutdowns should come as no surprise. On the campaign trail in 2008, then candidate Obama said openly and clearly that his regulatory regime would bankrupt coal companies and nec- essarily cause electricity prices to skyrocket. Fortunately, the President’s wildly expensive vision for cap and trade was also wildly unpopular with the American people and, in fact, soundly rejected by Congress. These concurrent events, the death of cap and trade and EPA’s bonanza of new air regulations, beg the fundamental question be- 17 fore us at today’s hearing. Does it make sense for DOE to continue to focus its $400 million R&D effort almost exclusively on carbon capture and sequestration, particularly in light of the need for and potential of advanced technologies to significantly increase coal uti- lization efficiency and thus benefit the environment? This exclusive focus certainly doesn’t make sense to me. Consid- ering that DOE’s goal is to find carbon capture and sequestration technology that ‘‘only’’ increases
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