Appalachian Regional

Commission Study: Economic Impacts and Effects of Coal Mining in

Northeastern Pennsylvania

A partnership among Geisinger Commonwealth School of Medicine, Johnson College, Keystone College, King’s College, Marywood University, Misericordia University, Penn State Scranton, Penn State Wilkes-Barre, The Wright Center, University of Scranton and Wilkes University

Page 1 Table of Contents Executive Summary ...... 3 Research Methodology ...... 10 Economic Modeling Methodology ...... 10 Historical, Environmental, and Ancillary Data ...... 12 Region and Overview ...... 13 History of Coal Mining in the Study Area ...... 15 Anthracite Mining Statistics ...... 16 Reliance on Coal-Industry Ecosystem ...... 21 Summary of Economic Impact Analysis – Coal Mining ...... 22 County - by - County Findings: Coal Mining Industry ...... 24 Carbon County ...... 24 Columbia County ...... 29 Luzerne County ...... 34 Schuylkill County ...... 39 Summary of Economic Impact Analysis – Vanished Industries ...... 44 County – by - County Findings: Vanished Industries ...... 47 Bradford County ...... 47 Monroe County ...... 51 Pike County ...... 55 Susquehanna County ...... 59 Sullivan County...... 63 Wayne County ...... 65 Wyoming County ...... 69 Fossil Fuel Industries in Transition...... 73 Community Impacts of Blight ...... 85 Railroad Industry Impact ...... 88 Health Impacts and Loss of Human Capital ...... 90 Environmental Impacts ...... 92

Page 2 Executive Summary Northeastern Pennsylvania is commonly referred to as the “Coal Region;” it has the world’s largest reserves of anthracite coal. The landscape is covered with mines, culm banks, and abandoned or dilapidated patch towns. The regional identity is forever intertwined with coal and its subsequent demise. Coal helped shape transportation routes and networks throughout northeastern Pennsylvania, connecting it to New York, New York City, Philadelphia, and Baltimore. It helped shape labor movements locally and nationally, which resulted in the United Mine Workers of America enacting legislation that ended child labor in the mines.

Anthracite coal mining was the region’s leading industry and the economy heavily relied on its prosperity and growth. Pennsylvania led the national coal market until the Great Depression, when it suffered a drop in sales. The industry was revived by the World Wars but then fell again following the growing prevalence and declining cost of natural gas in the 1960s and 1970s. The coal industry has continued to experience decline over the years, matched in decreases in employment, unstable market prices, and less overall production.

The coal mining industry did not just affect northeast Pennsylvania’s economy. It is dangerous work. The region suffered a loss in economic development and human capital as a result of the 31,085 people who lost their lives in anthracite mines from 1870 to 2017. Miners also have health issues due to their profession; recently there has been an upsurge in diagnosis of black lung, or coal worker’s pneumoconiosis, and the disease is deadlier than ever.

Mining affects the environment as well. The area suffers from incidents of subsidence, mine and culm bank fires, and acid mine drainage as well as other consequences of abandoned mine lands. The region is characterized by vacant and blighted infrastructure. As a result of historical and current lack of a diversified economy, the region is at risk of further decline. The majority of the area is ranked as highly dependent on the coal industry and has a high risk of experiencing more economic hardship due to continued decrease in individual county coal-related activities.

The total effect of the loss of coal, its supply chain, adjacent industries, and fossil fuel generation from 2001 – 2018 in northeastern Pennsylvania exceeds $783 million and 1,426 jobs. Some counties have been hit more severely than others, but it is important to note that some counties’ loss of coal mining could not be measured because the loss was considered too small for the U.S. Bureau of Labor Statistics to measure. This does not mean there was no loss. Even counties with positive impact from fossil fuel generation could net much smaller returns if coal mining was factored into the equation. Further, the impact of rail and blight is not factored into each county’s analysis. It is presented in the aggregate. Finally, it should be noted that these counties comprise a larger economic region; negative effects can still be felt across the county lines because commute patterns were not able to be factored into the models.

Page 3 Total Effect Total Value State & Local Employment Labor Income Added Output Federal Taxes Taxes Total Bradford -317.4 ($17,197,077) ($55,948,909) ($118,945,434) ($6,112,846) ($11,490,709) ($209,695,292) Carbon -42.8 ($252,177) ($6,689,570) ($22,801,124) ($808,071) ($3,013,055) ($33,564,040) Columbia 23.2 $753,118 $2,911,551 $8,298,258 $259,071 $488,542 $12,710,563 Lackawanna 147.1 $11,821,455 $28,356,057 $62,850,101 $3,236,322 $6,144,460 $112,408,542 Luzerne -640.6 ($46,189,016) ($142,833,403) ($257,815,682) ($15,408,171) ($17,327,107) ($479,574,020) Monroe -354.5 ($20,106,507) ($48,249,726) ($107,986,917) ($4,911,563) ($11,548,222) ($192,803,290) Montour 108.9 $15,877,350 $43,508,452 $93,171,604 $5,058,474 $8,202,964 $165,818,953 Pike -46.5 ($2,048,425) ($5,973,265) ($14,507,672) ($600,316) ($1,600,033) ($24,729,758) Schuylkill 137.1 $9,103,680 $27,511,048 $64,574,001 $3,049,140 $6,048,116 $110,286,122 Sullivan 0 $0 $0 $0 $0 $0 $0 Susquehanna -77.4 ($4,167,557) ($14,641,231) ($30,288,692) ($1,580,475) ($2,942,106) ($53,620,138) Wayne -287.1 ($12,972,820) ($33,861,751) ($79,690,926) ($3,241,257) ($8,922,427) ($138,689,468) Wyoming -76 ($4,288,931) ($14,143,928) ($29,791,581) ($1,385,966) ($2,905,416) ($52,515,898) Total -1,426 ($69,666,907) ($220,054,675) ($432,934,064) ($22,445,658) ($38,864,993) ($783,967,723)

Out of the thirteen counties comprising the geographic scope of this report, just four – Carbon, Columbia, Luzerne, and Schuylkill – are currently home to an active coal mining industry. But even these last holdouts of Northeastern Pennsylvania’s coal economy are not immune from the inexorable decline of the coal industry. From 2001 to 2018, the Coal Mining and Fossil Fuel Electric Power Generation industries in these four counties shed a total of 473 positions, either from within those industries or through supply chain vendors and other regional firms, as well as $36 million in lost labor income and $182.4 million in lost economic output. Jobs affected by this shift span a wide range of industries, from employment services and wholesale trade to market research and commercial repair and maintenance.

Total Economic Impact, Coal-Producing Counties Impact Type Employment Labor Income Value Added Output Direct Effect -167.0 ($18,352,906) ($66,736,484) ($140,628,357) Indirect Effect -119.8 ($9,781,135) ($21,466,204) ($18,472,494) Induced Effect -186.4 ($7,898,714) ($23,139,566) ($23,253,695) Total Effect -473.2 ($36,032,755) ($111,342,254) ($182,354,546)

Employment Impact of Coal and Coal-Adjacent Industries, Coal-Producing Counties Industry Sector Employment Labor Income Value Added Output Coal mining -97.9 ($7,131,545) ($27,820,752) ($46,848,393) Electric power generation - fossil fuel -90.9 ($12,069,742) ($44,753,769) ($116,609,740) Employment services -25.9 ($662,125) ($925,883) ($1,460,149) Full service restaurants -17.8 ($370,016) ($415,775) ($833,690) Real estate -9.2 ($45,628) ($697,537) ($1,200,652) Wholesale trade -9.1 ($647,001) ($1,291,702) ($1,982,492) Marketing research and all other miscellaneous professional, scientific, -8.7 ($340,485) ($322,705) ($521,554) and technical services Maintenance and repair construction -8.7 ($470,563) ($636,058) ($1,345,361) of nonresidential structures Hospitals -8.6 ($630,591) ($700,255) ($1,345,256) Limited-service restaurants -7.3 ($144,652) ($343,254) ($617,195)

Page 4 Over the last seventeen years, the decline of coal and coal-supported industries in these four counties has deprived tax offices on the federal, state, and local government of $26.7 million in lost revenue. Specifically, state and local governments have been deprived of approximately $13.8 million in lost revenue, with most of that coming from lost sales and property taxes, as well as other indirect business fees. The federal government has also lost roughly $12.9 in revenue during this period as well, with the majority coming from taxes on personal income, social insurance, and corporate profits.

State and Local Tax Impact of Coal and Coal-Adjacent Industries, Coal-Producing Counties Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Dividends - - - - ($11,016) Social Insurance Tax - ($3,511) - - - - Employee Contribution Social Insurance Tax - ($7,025) - - - - Employer Contribution Sales Tax - - ($6,730,504) - - Property Tax - - ($5,431,600) - - Motor Vehicle Licensing - - ($80,736) - - Severance Tax - - - - - Other Taxes - - ($809,070) - - Miscellaneous Indirect - - ($13,054) - - Business Taxes Corporate Profits Tax - - - - ($142,717) Personal Tax: Income Tax - - - ($468,306) - Personal Tax: Non Taxes - - - ($67,523) - (Fines-Fees) Personal Tax: Motor Vehicle - - - ($16,519) - License Personal Tax: Property - - - ($11,125) - Taxes Personal Tax: Other Tax - - - ($7,232) - (Fish/Hunt) Total State and Local Tax ($10,536) $0 ($13,064,964) ($570,705) ($153,733)

Federal Tax Impact of Coal and Coal-Adjacent Industries, Coal-Producing Counties Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Social Insurance Tax- ($2,430,341) ($152,033) - - - Employee Contribution Social Insurance Tax- ($2,305,843) - - - - Employer Contribution Excise Taxes - - ($1,405,006) - - Custom Duty - - ($582,701) - - Miscellaneous Federal Fees - - ($91,187) - - Corporate Profits Tax - - - - ($2,736,184) Personal Tax: Income Tax - - - ($3,205,195) - Total Federal Tax ($4,736,184) ($152,033) ($2,078,894) ($3,205,195) ($2,736,184)

Page 5 For workers in Bradford, Monroe, Pike, Susquehanna, Sullivan, Wayne, and Wyoming counties, coal mining represents nothing more than an outmoded career from a distant age. Moreover, the extinction of the coal mining industry across Northeastern Pennsylvania has resulted in the elimination of other industries relying on the production of coal in these counties. For communities in this region, the Fossil Fuel Electric Power Generation industry is the most adversely affected by this economic trend. From 1990 to 2017, coal as a source of total net generation by electric power facilities has fallen from 60 to 22 percent, and is declining at a more rapid rate than any corresponding growth of alternative fuel sources.

Since 2001, both Coal Mining and Fossil Fuel Electric Power Generation industries have been effectively wiped out in seven of the 13 Northeastern Pennsylvania counties comprising the geographic scope of this report. The counties are Bradford, Monroe, Pike, Susquehanna, Sullivan, Wayne, and Wyoming. The extinction of these industries has resulted (either directly or indirectly) in the loss of approximately 1,159 jobs, $60.7 million in labor income, and $381.2 million in economic output since 2001.

Of these 1,159 positions lost, approximately 304 came directly from the aforementioned industries (Coal Mining and Fossil Fuel Electric Power Generation), which resulted in the loss of both $33.7 million in labor income and $290.1 million in economic output over the last 17 years. The effect of the coal economy’s elimination in these counties has also disrupted economic conditions for supply chain vendors, resulting in the loss of another 550 jobs, $18.9 million in lost labor income, and $65.4 million in economic output for those vendors. Moreover, the resulting decrease in consumption of community goods and services from workers in these industries has generated additional losses of nearly 305 positions, along with $8.1 million in lost labor income and $25.7 million in economic output. Finally, as observed in the employment impact graphic below, the elimination of coal and coal-adjacent industries across Northeastern Pennsylvania has generated a ripple effect across a wide variety of other industries and occupations, ranging from fossil fuel extraction and commercial maintenance positions to those in the medical, legal, and service industries – impacting hospitals, legal services, full-service restaurants, and real estate.

Economic Losses from Vanished Industries, Northeastern Pennsylvania: 2001-2018 Impact Type Employment Labor Income Value Added Output Direct Effect -304.0 ($33,746,542) ($119,980,418) ($290,083,469) Indirect Effect -550.2 ($18,916,575) ($38,334,732) ($65,402,974) Induced Effect -304.7 ($8,118,110) ($14,503,660) ($25,724,779) Total Effect -1,158.9 ($60,781,227) ($172,818,810) ($381,211,222)

Page 6 Employment Impact from Vanished Industries (Top 10 Industries), Northeastern Pennsylvania: 2001-2018 Industry Sector Employment Labor Income Value Added Output Electric power generation - fossil fuels -297.0 ($33,430,086) ($118,307,882) ($287,891,967) Extraction of natural gas and crude -148.7 ($1,871,140) ($10,915,086) ($24,659,615) petroleum Marketing research and all other miscellaneous professional, scientific, -75.0 ($1,377,219) ($1,250,404) ($2,504,876) and technical services Maintenance and repair construction of -45.4 ($2,000,207) ($2,515,663) ($4,813,649) nonresidential structures Full-service restaurants -41.0 ($627,853) ($715,984) ($1,400,921) Scenic and sightseeing transportation -28.5 ($1,964,183) ($2,294,166) ($4,729,955) and support activities for transportation Real estate -26.2 ($232,964) ($1,357,843) ($2,527,987) Employment services -22.5 ($539,799) ($747,943) ($1,202,007) Extraction of natural gas liquids -19.2 ($491,439) ($6,786,421) ($8,411,679) Hospitals -18.3 ($972,249) ($1,084,893) ($2,006,619) Legal services -14.2 ($305,353) ($628,040) ($1,147,858) Coal mining -7.0 ($316,546) ($1,672,536) ($2,191,502)

The extinction of the coal mining and coal-reliant industries in Northeastern Pennsylvania has not only spawned hundreds of job losses and lost economic output, but also has deprived state, local, and federal governments of approximately $57.2 million of lost revenue collected from a wide range of revenue streams since 2001, including taxes on income, corporations, property, and sales. On the state and local government levels, tax offices have lost a total of $39.4 million in revenue, including $37.3 million from indirect business taxes, $1.3 million in personal income taxes and fees, $735,000 in corporate taxes and dividends, and nearly $30,000 in social insurance taxes. For federal government tax offices, the elimination of these industries have spawned another $17.8 million in losses — $6.8 million in social insurance taxes, $4.4 million in personal income taxes and fees, $3.1 million in indirect business taxes, $3 million in corporate taxes and dividends, and approximately $452,000 in proprietor income.

Page 7 State and Local Tax Impact of Vanishing Industries, Northeastern Pennsylvania: 2001-2018 Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - ($64,097) Social Insurance Tax- Employee ($9,960) - - - - Contribution Social Insurance Tax- Employer ($19,927) - - - - Contribution Sales Tax - - ($15,249,798) - - Property Tax - - ($19,965,301) - - Motor Vehicle Licensing - - ($237,495) - - Severance Tax - - - - - Other Taxes - - ($1,826,447) - - Miscellaneous Indirect Business - - ($63,835) - - Taxes Corporate Profits Tax - - - - ($670,707) Personal Tax: Income Tax - - - ($1,068,283) - Personal Tax: Non Taxes (Fines- - - - ($123,517) - Fees) Personal Tax: Motor Vehicle - - - ($45,653) - License Personal Tax: Property Taxes - - - ($42,435) - Personal Tax: Other Tax - - - ($18,521) - (Fish/Hunt) Total State and Local Tax ($29,887) $0 ($37,342,876) ($1,298,409) ($734,804)

Federal Tax Impact of Vanishing Industries, Northeastern Pennsylvania: 2001-2018 Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Social Insurance Tax- Employee ($3,510,243) ($451,856) - - - Contribution Social Insurance Tax- Employer ($3,330,042) - - - - Contribution Excise Taxes - - ($2,126,139) - - Custom Duty - - ($881,866) - - Miscellaneous Federal Fees - - ($138,011) - - Corporate Profits Tax - - - - ($3,038,567) Personal Tax: Income Tax - - - ($4,357,509) - Total Federal Tax ($6,840,285) ($451,856) ($3,146,016) ($4,357,509) ($3,038,567)

Page 8 In two counties, however, the Fossil Fuel Electric Power Generation industry still survives, either because it has been partially insulated from the effects of the coal economy’s contraction, or because fossil fuel electric power generation facilities have started to utilize cheaper and cleaner sources of energy to sustain production of electricity more affordably. Lackawanna County’s Fossil Fuel Electric Power Generation industry was revived in 2015 due to the creation of a natural gas-burning electric power plant in Jessup, and now employs 36 workers in the area. This industry also survives in Montour County, which is home to a decades-old coal-fired electric power plant in Washingtonville, and employs 59 workers as of 2018. However, recent interest in converting the Washingtonville plant’s coal-firing facilities into a natural-gas co-firing plant portend the inevitable decline in coal demand in Northeastern Pennsylvania. As of 2018, the last remnants of this industry in both Lackawanna and Montour counties directly employ 95 workers, and support another 81 jobs in a wide variety of industries, from depository credit intermediation to full-service restaurants and wholesale trade. In sum, this industry still supports $27.7 million in labor income and $156 million in economic output in both counties, including directly employed workers, supply chain vendors, and other firms across the region. Finally, the Fossil Fuel Electric Power Generation industry still supplies approximately $22.6 million in tax revenue for state, local, and federal governments.

Beyond the modeled economic impacts, it is likely that the decline of coal mining and related industries has negatively affected community stability. When mapping residential vacancy data from the United States Postal Service, a pattern emerged that suggested a strong correlation between census tracts adjacent to anthracite coal fields and higher rates of long-term (36 months or more) residential vacancy. High rates of long-term residential vacancy are signs of weak market demand and serve to approximate housing blight. The average 36-month vacancy rate for the 176 anthracite-adjacent tracts was 2.1 percent, compared with 0.32 percent for the remaining 157 tracts. This difference was determined to be extremely statistically significant.

According to the Association of American Railroads’ May 2018 report, the volume of coal transported by rail has decreased in recent years. This follows the decreased production of coal and decreased use of coal in U.S. electric power generation. In 2008, railroads transported 7.71 million car loads of coal. By 2017, this number decreased by 42 percent – thereby negatively affecting overall railroad revenue and employment. The overall drop in rail freight cargo coincides with the decrease in coal production after 2008.

The 94 jobs lost affect 123 jobs in other sectors and result in over $41.3 million in annual economic loss to the counties in the study region. In addition, nearly $4.2 million in federal taxes and another $409,000 to state and local government is lost annually. In some counties, railroad jobs paid more than the average county wage.

The ARC study, An Economic Analysis of the Appalachian Coal Industry Ecosystem by West Virginia University and the University of Tennessee devoted an entire module to the implications of decreased coal production on transportation (specifically rail). The study indicates that just between 2015 and 2016, the reduction in coal rail transportation was responsible for the loss of 2,000 jobs and $150 million in income in Appalachia.

Page 9 Research Methodology Several differing approaches and data sources were used in order to build a 360 degree view of coal industry impacts in the region. This research sought to understand county-by-county economic impacts via economic impact modeling as well as draw upon other quantitative and qualitative approaches to provide insight on community, industry, and environmental impacts beyond those measured by economic impact modeling.

Data on the anthracite industry – at both the regional and individual county-levels – were found in annual reports from the U.S. Energy Information Administration (EIA), PA DEP Bureau of Mining Programs, U.S. Office of Surface Mining Reclamation and Enforcement (OSMRE), and JobsEQ. Coal industry reliance was evaluated based on a 2018 West Virginia University report on county-level coal industry ecosystem supply chain analysis.

Economic Modeling Methodology The economic impact of the coal mining and ancillary industries from 2001 to 2018, across northeastern Pennsylvania counties in which the industry remains, was calculated using IMPLAN. Four counties – Carbon, Columbia, Luzerne, and Schuylkill – showed comprehensive losses. The decline was not confined to the coal industry itself; it was evident in direct, indirect, and induced effects.

For the purposes of this analysis, The Institute examined four measures of economic impact: (1) total employment; (2) labor income; (3) total value added; and (4) total economic output. Impacts are also divided into three types of effects based on their location within the broader economy. For instance, direct effects refer to economic impacts from employment within the coal industry itself. Indirect effects are comprised of economic impacts on the supply chain vendors that serve the industry. Finally, induced effects result from the broader economic ripple that results from the labor income from the direct and indirect effects being spent in the community. Although this analysis only captures indirect and induced effects within the county of coal industry activity, it is likely that further economic ripple effects spread through the entire 13-county region.

To calculate the economic impact emanating from the extinction of coal mining and ancillary industries across certain counties in Northeastern Pennsylvania, The Institute used IMPLAN, an economic modeling software platform, as well as existing labor market data from Chmura Economics’ JobsEQ proprietary datasets. Regions in which coal or coal-supported industries were completely eliminated as of 2018 include the counties of Bradford, Monroe, Pike, Susquehanna, Sullivan, Wayne, and Wyoming. According to JobsEQ data extracted for each county, coal and coal-supporting industries were last found in most of these counties in the year 2001. Sullivan County was the exception; its coal economy was eliminated before any publicly available labor market data. As in other sections of this report, The Institute assessed three metrics of economic impact: (1) quantifying the lost employment, labor income, value added, and economic output stemming from any employment change; (2) identifying the top ten industries affecting by any employment change; (3) measuring the tax implications of employment changes on the local, state, and federal levels.

Coal mining and coal-adjacent industries have been entirely eliminated in seven of the 13 counties comprising Northeastern Pennsylvania, so calculating the economic impact of this elimination through IMPLAN required the use of an advanced technique – Analysis by Parts – which enables the modeling of impacts of industries that do not exist in a given region. A traditional input-output analysis calculates the

Page 10 direct effect of any change in a given industry with the assistance of multipliers, while indirect effects quantify interactions between related industries and induced effects measure the impact generated from re-spending payroll in the regional economy. In an Analysis by Parts approach, however, this threefold analysis is split in two – budgetary spending patterns and income. In regions where an industry no longer exists, a proxy industry region with comparable features provides the foundation for this analysis. By separating intermediate expenditures and compensation, an Analysis by Parts methodology made it possible to estimate both direct and indirect effects of an employment change while providing a necessary degree of customization.

Finally, for the purposes of this analysis, the coal mining industry consists of four industries: (1) Bituminous Coal and Lignite Surface Mining; (2) Bituminous Coal Underground Mining; (3) Anthracite Mining; and (4) Support Activities for Coal Mining. However, the contraction of the regional coal industry poses implications for other industries as well. In Pennsylvania, for instance, Fossil Fuel Electric Power Generation has, to some extent, its fortunes tied to the coal industry’s decline. Cited as a major coal-consuming industry by recent studies from West Virginia University, the University of Tennessee, and the University of Massachusetts-Amherst, electric power utilities in Pennsylvania generate at least 47.6 million megawatt hours from coal, or just over 22 percent of total net generation. While 22 percent may seem relatively insignificant, the rate of decline of coal as an electric power generation source in Pennsylvania is more rapid than any corresponding growth of other fuel sources. According to the U.S. Energy Information Administration, while hydroelectric power generation (currently responsible for two percent of total electric power generation) has increased by nearly 220 percent from October 2017 to October 2018, the use of coal (at 15 percent of total electric power generation) has declined by 10 percent during the same period of time. Moreover, the use of other prominent sources like natural gas (34 percent) and nuclear energy (39 percent) has also declined by two percent and 4.3 percent, respectively. Thus, because the economic impact of the coal industry’s collapse in Northeastern Pennsylvania has extended to workers in the Fossil Fuel Electric Power Generation, corresponding contraction or growth in this coal-adjacent industry will also be considered for the purposes of this report.

Net Electric Power Generation by Utility (Megawatt Hours)

1990 2017 Coal 106,677,155 (60.4%) 47,634,271 (22.2%) Hydroelectric Conventional 2,869,192 (1.6%) 3,123,316 (1.5%) Natural Gas 2,833,882 (1.6%) 72,503,448 (33.8%) Nuclear 57,787,051 (32.7%) 83,199,832 (38.8%) Other 842,336 (0.5%) 4,990,153 (2.3%) Petroleum 4,654,522 (2.6%) 355,418 (0.2%) Other Biomass 300,109 (0.2%) 1,915,767 (0.9%) Wood and Wood Derived Fuels 538,313 (0.3%) 522,388 (0.2%) TOTAL 176,502,560 214,244,593

Page 11 Historical, Environmental, and Ancillary Data Historical overviews of the region and each county came from county records, local and family histories, and pre-1900 accounts to detail the discovery of coal. Health impacts of the coal industry came from various medical studies. Additionally, record searches for instances of mine subsidence, mine fires, water pollution, abandoned mine lands were pulled from the Pennsylvania Department of Environmental Protections (PA DEP) site as well as from local news outlets like WNEP, WBRE, The Times Leader, The Citizens’ Voice, and The Times Tribune. Data and maps from the Eastern Pennsylvania Coalition for Abandoned Mine Reclamation (EPCAMR) were analyzed and added depth to coal’s environmental impact. Maps from PA DEP were also analyzed. Demographic data from the U.S. Census Bureau were pulled to add further insight into each county’s well-being.

Supplemental analysis was undertaken to determine if there is a correlation between communities most linked to coal mining industries and persistent community distress or blight. This analysis used data collected by the U.S. Postal Service and distributed by the U.S. Department of Housing and Urban Development. The dataset included census-tract level counts of postal addresses and the number vacant by type and length of vacancy. For the purposes of the analysis, the percent of residential addresses vacant for 36 months or more was used as a proxy for community blight. High rates of long-term residential vacancy represent a sign of weak market demand and serve to approximate housing blight.1

Using GIS software, the data was joined to local census tracts and mapped to show trends. The maps included in this report show each census tract’s rate of long-term residential vacancy color coded by quintile among all tracts in the study area. Furthermore, analysis was done on two subsets of tracts in the region – those that intersect the boundaries of the anthracite coal fields (anthracite-adjacent tracts) and those that do not (non-adjacent tracts), using boundaries developed by the Pennsylvania Department of Conservation and Natural Resources. The presence of anthracite does not necessarily serve as a perfect approximation of actual mining activity, but community-scale impacts of mining activity are assumed to correlate by proximity to potential mining areas. A Welch’s t-test was used to test for statistical significance in the difference between vacancy rates in anthracite adjacent and non- adjacent tracts.

To determine the economic impact on railroads, an IMPLAN model was built identifying the job loss during the study period and the average railroad wage as identified in the occupation data of JobsEQ (which uses U.S. Bureau Labor Statistics occupation wage data).

1 “Why is Vacancy Data Important?” Institute for Housing Studies at DePaul University. Nd. https://www.housingstudies.org/data-portal/info/vacancy-data/

Page 12 Region and Overview Pennsylvania’s coal industry produces two types of coal – bituminous coal in west and northeast, used produce electric power, and anthracite coal in the northeast, used by the iron and steel industry. Anthracite coal is exposed to a larger audience – the international export market.

Referred to commonly as the “Coal Region,” Northeastern Pennsylvania is home to mines in which one can find anthracite coal taking up 484 square miles. Though this number represents only 6.1 percent of the study region’s total square miles, it has created a huge and lasting impact since the first discovery of coal in Luzerne County in 1775. In fact, the area still produces 3,072,129 tons of coal2 annually and 14,596,698 tons of minerals (2017). The Commonwealth’s anthracite industry was vital to the region and to larger metropolitan areas. Following the War of 1812, for instance, the British restricted coal exports to the U.S. so New York relied on NEPA for deliveries via rail and canal.

The 13-county region consists of only anthracite fields save some low-volatile bituminous coal from the North Central fields in Bradford County, shown below. Sullivan and Wyoming Counties are home to semi-anthracite coal from the Western Northern Anthracite field, and parts of Susquehanna, Wayne, Lackawanna, Luzerne, Columbia, Schuylkill, and Carbon counties are home to anthracite coal in the Northern, Eastern Middle, and Southern Anthracite Fields. It is estimated that Pennsylvania had 22.8 billion tons of anthracite in its original reserves.

Distribution of Pennsylvania Coals Map from PA Department of Conservation and Natural Resources.

2 66,453 tons from anthracite underground mines and 3,005,676 tons from surface mining

Page 13

Detail on 13 county region from the map above.

There are two types of coal mining prevalent in the 13-county region – underground and surface mining. The use of the two methods depend on the depth of a given coal seam. Surface mining is more predominant in the anthracite regions, especially with deep mining having ended in the mid-20th century. In 2013, only Columbia and Schuylkill Counties used underground mining operations, and only Schuylkill County did so by 2017.

Underground mining involves opening shafts into the earth in order to reach coal seams that are too deep to reach using surface mining methods. There are two standard underground mining methods – room-and-pillar and longwall mining. Surface mining is an option when coal seams are closer to the surface of the earth. There are two methods of this type of mining – strip mining and highwall mining. In the former, rock and soil is first removed to access coal. The area is filled once the coal has been mined. Highwall mining involves the removal of coal via excavators or by an auger while leaving the surrounding rock intact.

Pennsylvania’s coal mining industry began in the mid -1700s and grew across the nation. It was used to power the steel and industrial age. As Pennsylvania’s coal industry thrived, homes, businesses and towns developed around the mines. These towns are commonly referred to as coal towns, or more specifically, patch towns (if the name was associated with a particular mine). Many were owned by the coal companies and were built out of necessity near mines to house miners and their families. In the early 1900s, around one-third of anthracite miners lived in company-owned towns.

Coal miners in Pennsylvania, Ohio, and West Virginia went on strike in 1897. The strike brought about the abolition of company stores.3 Concrete City (Nanticoke, Luzerne County), an example of industrial

3 Lumpkins, Charles. “Timeline of Labor History in Pennsylvania.” Pennsylvania Labor History Society. Available at: .

Page 14 housing, was built by the D L & W Railroad’s Coal division. It was opened in 1913 to house workers; after 1921 it was controlled by the Glen Alden Company and then abandoned in 1924.4 Deep mining in the Wyoming Valley ended following the Knox Mine Disaster in 1959.

Many towns, such as Lausanne in Carbon County, Barclay in Bradford County, and Eckley in Luzerne County, have been abandoned as a result of loss of the coal industry. Towns such as Centralia in Columbia County were abandoned due to environmental concerns caused by mining. Some met both fates – Byrnesville, in Columbia County, saw a decrease in population following the fall of coal in the 1930s and then became victim to the nearby Centralia fire.

Though not abandoned, some patch towns experienced increasing vacancy rates. The following are former coal towns with populations greater than 2,000 people, along with their high vacancy rates: Shenandoah, 28.9 percent; Mahanoy city, 26.3 percent; Ashland, 22.4 percent; Lansford, 20.8 percent; Plymouth, 18 percent; McAdoo, 17.2 percent; Coaldale, 16.7 percent; and Frackville, 16.2 percent.5

There are 840 abandoned mine lands (AML) listed by the Commonwealth’s Department of Environmental Protection. The state has led the nation with mining laws and regulations to ensure that reclamation occurs after mining is finished. The Department’s AML Economic Revitalization Pilot Project benefitted various locations in the 13-county region (Carbon, Schuylkill, Luzerne, and Lackawanna Counties), with four of the six projects taking place in or in part of Schuylkill County. 6

The Pennsylvania Department of Environmental Protection releases a yearly report on bituminous underground mining activities in Pennsylvania, which are regulated by the DEP under the Bituminous Mine Subsidence and Land Conservation Act of 1966. The law and its subsequent report covers only areas with bituminous coal. Unfortunately, there is no such report for anthracite coal.

Anthracite impacted the region in a multitude of ways. In addition to creating a massive energy economy and industry, it created a sense of identity for the area. The aforementioned moniker ‘Coal Region’ is held dear to many in the area. The industry also negatively impacted the region in different ways, however. From health and human capital to the environment, infrastructure, employment, and taxes, the area is still paying for the industry that dissipated 70 years ago.

History of Coal Mining in the Study Area The Appalachian coal is buried deep underground, so mining it is often difficult and expensive. Appalachian coal production declined with the development of cheaper means to mine coal in other areas of the country. These trends contributed to an ongoing erosion of coal mining employment and further depressing of Pennsylvania’s small and rural coal towns.

4 Ibid. 5 Bohman, Dave. 2012. Coal Region Ghost Towns. 10 August. WNEP. Available at: . 6OSMRE. 2017. Report on Abandoned Mine Land Reclamation Economic Development Pilot Program (AML Pilot Program) for FY 2016-FY 2017. OSMRE. Available at: .

Page 15 Coal was discovered in the area in 1775 near Pittston (Luzerne County), and the first mine was subsequently opened.7 The following individual county descriptions highlight particular histories and the overall history further. Approximately 15,000 square miles (33 percent of the state) overlie coal deposits (both anthracite and bituminous)8 and five million people live over abandoned mine sites. 9 More than one million homes sit atop abandoned mines (2017).10

Pennsylvania led the coal market until 1927. Mining suffered a dip in industry in the early 20th century, particularly during the Great Depression, followed by a revival thanks to World Wars – especially World War II. Increased labor costs and depleting reserves eventually prompted the continued decline of coal mining. There was also a shift in industries and heating sources. Anthracite coal mining saw a large decline because it was primarily used to heat residential properties, and its use decreased as prices of natural gas decreased. With the abrupt end of coal mining following the rise of natural gas and other heating sources, companies shuttered and mines were abandoned, leaving behind a vast legacy of environmental hazards and cleanup – which is ongoing and will continue for the foreseeable future.

Although the decrease of coal mining has occurred for decades, the rise of Marcellus Shale natural gas resources expedited the decline. Pennsylvania found cheaper and abundant natural gas extraction from the earth by various machines, which aided small number of workers. This process quickly reduced coal demand, production, and employment that formerly prompted economic development. The subsequent use of natural gas has created devastating effects for people, businesses, and towns that still depend on coal mining. In 2015, over 29 percent of all U.S. shale-based natural gas was produced in Pennsylvania (U.S. Energy Information Administration 2017).

Anthracite Mining Statistics The following table show data from all counties producing anthracite, including the 13-county area. The losses the industry took are highlighted in red. Values in black indicate no change or an increase in activity. Increases in fatalities or fatal and non-fatal accidents appear in red because the industry took a loss in each case. Distinctions between surface mining and underground mining were not recorded before 1934. Underground mining was not recorded before 1980.

Anthracite mining reached its peak, in terms of total coal production and number of employees, in 1913. A reported total of 91,626,964 tons of coal were produced by 175,310 employees. Though it was the most productive year, it was also the deadliest. A total of 624 people died in the mines that year. Coal refuse production is the only aspect of the industry that has experienced consistent increase in activity (save the difference between 2013 and 2017).

7 Levine Knies, Jennie. 2018. Library Guide: Anthracite Coal Mining Region of Northeastern Pennsylvania. Penn State University Libraries. Available at: . 8 Ingram, David. 1994. “Overview of Mine Subsidence Insurance Programs in the United States.” In conference proceedings of International Land Reclamation and Mine Drainage Conference and Third International Conference. Available at: < https://www.osmre.gov/resources/library/proceedings/94IntlVol4.pdf>. 9 Ibid. 10 Gallo, Alexandra. 2017. “More Holes Open on Property of Family Who Nearly Lost Home.” 30 January. WNEP. Available at: .

Page 16 From height of mining (in terms of production and # of employees) to now Total Coal Total Coal Production Surface Coal Refuse Production (cubic Underground Mining Production Total Total Year (tons) yards)* Mining (tons) (tons) (tons) Employees Fatalities 1913 91,626,964 73,892,713 2,934,157 175,310 624 1926 83,874,500 67,640,726 1,365,175 168,734 455 1930 68,776,559 55,464,967 890,389 151,171 444 1935 51,359,111 41,418,638 4,962,514 1,876,700 100,539 267 1940 51,526,454 41,553,592 6,010,364 2,599,280 90,790 182 1945 55,901,235 45,081,641 10,521,174 9,454,205 76,265 137 1950 46,339,255 37,370,367 12,291,325 4,027,249 75,231 86 1955 25,934,792 20,915,155 7,826,029 3,618,121 37,397 60 1960 17,721,113 14,291,220 7,138,743 3,006,803 20,269 35 1965 14,229,817 11,475,659 5,996,536 2,611,189 11,839 8 1970 9,248,001 7,458,065 4,624,610 2,956,707 6,286 4 1975 5,628,741 4,539,307 2,511,703 2,520,415 3,877 1 1980 5,983,149 4,825,120 583,274 3,454,821 1,945,054 3,429 3 1985 5,228,623 4,216,631 753,719 3,428,652 1,046,252 3,225 6 1990 3,414,967 2,754,006 529,000 1,908,545 976,875 2,258 1 1995 8,758,150 7,063,024 358,000 2,485,784 5,845,060 2,179 4 2000 3,905,096 3,149,271 220,462 2,332,828 1,351,806 945 0 2005 6,462,579 5,211,757 189,899 2,049,173 4,223,507 697 1 2010 7,135,727 5,754,619 207,299 3,027,215 3,901,213 788 0 2013 9,193,903 7,414,438 87,889 4,590,820 4,515,194 1,064 0 2015 8,678,500 6,998,790 88,759 4,525,632 4,064,109 1,008 0 2017 7,637,605 6,159,359 77,151 3,249,477 4,310,977 837 1 Change From 1940 -43,888,849 -35,394,233 n/a -2,760,887 1,711,697 -89,953 -181 Change From 1950 -38,701,650 -31,211,008 n/a -9,041,848 283,728 -74,394 -85 Change From 1970 -1,610,396 -1,298,706 n/a -1,375,133 1,354,270 -5,449 -3 Change From 1980 1,654,456 1,334,239 -506,123 -205,344 2,365,923 -2,592 -2 Change From 1990 4,222,638 3,405,353 -451,849 1,340,932 3,334,102 -1,421 0 Change From 2000 3,732,509 3,010,088 -143,311 916,649 2,959,171 -108 1 Change From 2013 -1,556,298 -1,255,079 -10,738 -1,341,343 -204,217 -227 1

The table below highlights the total anthracite production in the eastern part of Pennsylvania. Since 2013, all aspects of industry activities have declined – except for one death in 2017. There was a slight underground mining uptick in 2015 and 2016, as well as in 2015 for surface mining and overall employment, but the industry has continued to trend downward.

Page 17 Anthracite Coal Mining Activities 1870 to 2017 - Historical Summary Total Coal Total Coal Surface Coal Refuse Production Production Underground Mining Production Total Year (tons) (cubic yards)* Mining (tons) (tons) (tons) Employees Total Fatalities 2013 9,193,903 7,414,438 87,889 4,590,820 4,515,194 1,064 0 2014 8,711,747 7,025,602 81,517 4,142,833 4,487,397 874 0 2015 8,678,500 6,998,790 88,759 4,525,632 4,064,109 1,008 0 2016 7,642,435 6,163,254 91,754 3,080,606 4,470,075 900 0 2017 7,637,605 6,159,359 77,151 3,249,477 4,310,977 837 1 2013-2017 -1,556,298 -1,255,079 -10,738 -1,341,343 -204,217 -227 1

Similar to production values, the price of anthracite was in a downward trend from its 1975 price in 2018 dollars to the real price in 2004. From 2005 to the present, there has been a non-linear increase of anthracite prices in both nominal and real dollars. Natural gas became a cost-effective option to heat residential homes in the 1980s. This coincides with the aforementioned price decline.

Anthracite prices 1994 $36.07 $61.98 Year Nominal Real (in 2018 dollars) 1995 $39.78 $66.49 1950 $9.34 $99.85 1996 $36.78 $59.85 1955 $8.00 $75.28 1997 $35.12 $55.46 1960 $8.01 $68.68 1998 $42.91 $66.71 1965 $8.51 $68.53 1999 $35.13 $53.72 1970 $11.03 $73.31 2000 $40.90 $60.87 1975 $32.26 $155.56 2001 $47.67 $68.40 1976 $33.92 $153.27 2002 $47.78 $67.78 1977 $34.86 $149.71 2003 $49.87 $68.95 1978 $35.25 $141.70 2004 $39.77 $53.95 1979 $41.06 $151.03 2005 $41.00 $54.01 1980 $42.51 $137.27 2006 $43.61 $55.25 1981 $44.28 $127.87 2007 $52.24 $64.84 1982 $49.85 $132.81 2008 $60.76 $72.32 1983 $52.29 $134.32 2009 $57.10 $67.94 1984 $48.22 $118.89 2010 $59.51 $69.00 1985 $45.80 $109.07 2011 $70.99 $80.99 1986 $44.12 $101.14 2012 $80.21 $88.90 1987 $43.65 $98.62 2013 $87.82 $95.81 1988 $44.16 $95.89 2014 $90.98 $97.72 1989 $42.93 $89.06 2015 $97.91 $105.25 1990 $39.40 $77.70 2016 $97.61 $103.51 1991 $36.34 $67.83 2017 $93.17 $96.39 1992 $34.24 $62.29 EIA Annual Energy Review 2011, Annual Coal 1993 $32.94 $58.03 Reports 2012-2018 EIA Annual Energy Review 2011, Annual Coal Reports 2012-2018 Anthracite Prices (continued) Year Nominal Real (in 2018 dollars)

Page 18

Generally the price of coal in the coal-producing counties has declined in between 2013 and 2017. Any county that does not have data in the table below either does not produce enough coal or did not produce any coal.

Change in Average Sales Price of Coal By State, County, and Number of Mines, 2013-2017 Coal-Producing Number of Sales (Thousand Short Average Sales Price Area Mines Tons) (Dollars Per Short Ton) Carbon -1 N/A N/A Columbia -1 N/A N/A Luzerne 0 -238 ($48.98) Schuylkill -5 122 $24.73 Regional -7 -116 ($24.25) PA -48 -4,690 ($14.05) US -272 -203,720 ($3.52) EIA Annual Report 2013 and 2017

The following tables show only the losses and gains of the counties within the 13-county region. The data tables show loss in count; change in percentage of mining operations can be found under individual county analyses.

Underground mining never had the same production value as surface mining and though it started with over half a million tons of coal produced, it has fallen to under 80,000 tons in the whole anthracite region. Throughout the study region, underground mining has declined in all aspects except the amount of surface acres in permitted mining operations. As of 2017, Columbia County no longer has any underground mining.

Anthracite Underground Mines Reporting Production, 2013-2017 Surface Total Tons Number of Hours Accidents County Permit Permit Acres Production Employees Worked Fatal Non-Fatal Columbia -1 -34.1 -12,907 -25 -15,072 0 -1 Schuylkill 0 52.1 -2,409 1 12,062 0 0 Total -1 18.0 -15,316 -24 -3,010 0 -1

Surface mining operations are still in operation today. Carbon County was the only county that saw overall increases since 2013. Lackawanna County gained two employees and Columbia and Schuylkill Counties gained acreage. Safety has also seemed to increase with 19 fewer non-fatal accidents occurring in 2017 compared to 2013.

Page | 19

Anthracite Surface Mines Reporting Production 2013-2017 Accidents Permit Total Tons Explosives Number of Hours Non- County Permit Acres Production Used Employees Worked Fatal Fatal Carbon 1 210.0 80,993 326,146 2 11134 0 0 Columbia -2 133.0 -216,370 -1,253,822 -2 -2,484 0 1 Lackawanna 0 -582.3 -4,612 -42,549 2 -4,059 0 0 Luzerne -3 -2,521.9 -662,436 -279,126 -83 -118,035 0 -12 Schuylkill -7 2,206.3 -443,765 -1,873,597 -58 -144,064 0 -8 Total -9 -554.9 -1,246,190 -3,122,948 -139 -257,508 0 -19

Waste from coal mining is referred to as coal refuse. This refers to any materials – organic or inorganic – that are removed from a mine during the mining process. Clay and shale are considered coal refuse. Refuse also includes the excess produced from coal cleaning processes. In the anthracite region, coal refuse is known as culm, which comes from the Welsh term for anthracite coal.

Industry components varied in increases and decreases from county to county. Overall, there was an increase in acreage and decreases in total production, employees, and hours worked. Refuse production is inextricably linked to coal mining production, so it is unsurprising that it has generally decreased since 2013.

2013-2017 Anthracite Coal Refuse Production Surface Accidents Permit Total Tons Number of Hours County Permit Acres Production Employees Worked Fatal Non-Fatal Carbon 0 65.3 -1,766 2 6,467 0 0 Columbia 0 0 -22,654 1 -640 0 0 Lackawanna 0 -18.2 -3,863 2 1,569 0 0 Luzerne 3 1,798.3 248,588 -10 -8,568 0 0 Schuylkill -3 -947.0 -565,625 -31 -119,875 1 -9 Total 0 898.4 -345,320 -36 -121,047 1 -9

It should be noted that there are other types of mining in the 13-county region. Industrial mineral mining has seen increases in its production and economy since 2013. In contrast to coal mining, every county in the region has had a mineral mining operation since 2013. Though most indicators show overall increase in the industry, there is a decrease of 86 employees since 2013. Schuylkill County experienced the largest drop in number of employees, with 60 people no longer employed.

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2013-2017 Industrial Minerals Mines Hours Accidents Permit Total Tons Explosives Number of Non- County Permit Acres Production Used Employees Worked Fatal Fatal Bradford 6 -3 -492,196 -119,334 9 36,025 0 -1 Carbon -2 -216 -66,681 -25,128 -8 -1,505 0 0 Columbia 2 4 142,384 120,645 8 8,526 0 0 Lackawanna -1 -9 -2,473 71,173 3 -23,517 0 -7 Luzerne 6 1,694 1,389,319 719,549 34 134,314 0 5 Monroe 4 -376 37,701 410,378 -47 11,715 0 -1 Montour 0 139.5 135,947 63,150 0 25,144 0 0 Pike 10 79 245,975 26,015 29 17,799 0 0 Schuylkill 1 650 7,189 -8,972 -60 12,666 0 0 Sullivan -1 8 -225,703 -42,497 -5 5,990 0 0 Susquehanna 2 -160 -775,276 -308,229 -55 -31,281 0 -2 Wayne 25 98 512,953 603,751 29 -57,856 0 1 Wyoming 4 357 -179,123 176,648 -23 -8,123 0 -1 Total 56 2,127 658,777 1,687,149 -86 129,897 0 -6

Reliance on Coal-Industry Ecosystem There are approximately 36,187 full-time and part-time jobs in the coal industry. Pennsylvania has created approximately $4.1 billion in economic output - $2.1 billion of which directly comes from the coal industry. Indirect business taxes, of approximately $466 million, account for about 11 percent of the total value added to the Pennsylvania economy by the industry.

Coal Industry Direct Indirect Induced Total Employment Impact 13,886 10,689 11,612 36,187 Total Value Added Impact $2,159,343,426 $1,123,353,982 $884,976,143 $4,167,673,552 Labor Income $1,039,054,218 $685,823,395 $501,472,099 $2,226,349,711 Other Property Income $811,142,165 $365,246,707 $299,232,813 $1,475,621,685 Indirect Business Taxes $309,147,043 $72,283,880 $84,271,232 $465,702,156

In January 2018, West Virginia University prepared a report on county-level coal industry ecosystem supply chain analysis for the Appalachian Regional Commission. Researchers developed a CIE County Typology, which shows measured coal industry ecosystem dependence, impact, and risk.11

A majority of the 13-county region was found to be class-3, of eight possible types. These counties show high dependence on the industry, low impact status (this refers to the negative economic impact and distress via employment loss associated with the coal industry), and high risk of experiencing further economic hardship as a result of the failing county CIE. The report highlighted Bradford, Columbia, Luzerne, Schuylkill, Sullivan, Susquehanna, Wayne, and Wyoming Counties.

11 Jackson, Jarosi, and the Regional Research Institute. 2018. An Economic Analysis of the Appalachia Coal Industry Ecosystem: County-level CIE Supply Chain Analysis. January. Page | 21

Two counties in the region – Monroe and Montour – are labeled as class six counties. These counties demonstrate low dependence on the coal industry, high impact, and low assessed risk. Carbon County is characterized as a class-seven county with high risk of further hardship but overall low dependence and impact. Lackawanna and Pike Counties rank as the least depressed coal counties with class eight ranking. The report labels these counties as not strongly tied to CIE and “have been and are expected to continue to be the least affected by the coal industry fortunes.”12

Summary of Economic Impact Analysis – Coal Mining Out of the thirteen counties comprising the geographic scope of this report, just four – Carbon, Columbia, Luzerne, and Schuylkill – are currently home to an active coal mining industry. But even these last holdouts of Northeastern Pennsylvania’s coal economy are not immune from the inexorable decline of the coal industry. From 2001 to 2018, the Coal Mining and Fossil Fuel Electric Power Generation industries in these four counties shed a total of 473 positions, either from within those industries or through supply chain vendors and other regional firms, as well as $36 million in lost labor income and $182.4 million in lost economic output. Jobs affected by this shift span a wide range of industries, from employment services and wholesale trade to market research and commercial repair and maintenance.

Total Economic Impact, Coal-Producing Counties Impact Type Employment Labor Income Value Added Output Direct Effect -167.0 ($18,352,906) ($66,736,484) ($140,628,357) Indirect Effect -119.8 ($9,781,135) ($21,466,204) ($18,472,494) Induced Effect -186.4 ($7,898,714) ($23,139,566) ($23,253,695) Total Effect -473.2 ($36,032,755) ($111,342,254) ($182,354,546)

Employment Impact of Coal and Coal-Adjacent Industries, Coal-Producing Counties Industry Sector Employment Labor Income Value Added Output Coal mining -97.9 ($7,131,545) ($27,820,752) ($46,848,393) Electric power generation - fossil fuel -90.9 ($12,069,742) ($44,753,769) ($116,609,740) Employment services -25.9 ($662,125) ($925,883) ($1,460,149) Full service restaurants -17.8 ($370,016) ($415,775) ($833,690) Real estate -9.2 ($45,628) ($697,537) ($1,200,652) Wholesale trade -9.1 ($647,001) ($1,291,702) ($1,982,492) Marketing research and all other miscellaneous professional, scientific, -8.7 ($340,485) ($322,705) ($521,554) and technical services Maintenance and repair construction -8.7 ($470,563) ($636,058) ($1,345,361) of nonresidential structures Hospitals -8.6 ($630,591) ($700,255) ($1,345,256) Limited-service restaurants -7.3 ($144,652) ($343,254) ($617,195)

Over the last seventeen years, the decline of coal and coal-supported industries in these four counties has deprived tax offices on the federal, state, and local government of $26.7 million in lost revenue.

12 p. 33, Ibid. Page | 22

Specifically, state and local governments have been deprived of approximately $13.8 million in lost revenue, with most of that coming from lost sales and property taxes, as well as other indirect business fees. The federal government has also lost roughly $12.9 in revenue during this period as well, with the majority coming from taxes on personal income, social insurance, and corporate profits.

State and Local Tax Impact of Coal and Coal-Adjacent Industries, Coal-Producing Counties Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Dividends - - - - ($11,016) Social Insurance Tax - ($3,511) - - - - Employee Contribution Social Insurance Tax - ($7,025) - - - - Employer Contribution Sales Tax - - ($6,730,504) - - Property Tax - - ($5,431,600) - - Motor Vehicle Licensing - - ($80,736) - - Severance Tax - - - - - Other Taxes - - ($809,070) - - Miscellaneous Indirect - - ($13,054) - - Business Taxes Corporate Profits Tax - - - - ($142,717) Personal Tax: Income Tax - - - ($468,306) - Personal Tax: Non Taxes - - - ($67,523) - (Fines-Fees) Personal Tax: Motor Vehicle - - - ($16,519) - License Personal Tax: Property - - - ($11,125) - Taxes Personal Tax: Other Tax - - - ($7,232) - (Fish/Hunt) Total State and Local Tax ($10,536) $0 ($13,064,964) ($570,705) ($153,733)

Federal Tax Impact of Coal and Coal-Adjacent Industries, Coal-Producing Counties Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Social Insurance Tax- ($2,430,341) ($152,033) - - - Employee Contribution Social Insurance Tax- ($2,305,843) - - - - Employer Contribution Excise Taxes - - ($1,405,006) - - Custom Duty - - ($582,701) - - Miscellaneous Federal Fees - - ($91,187) - - Corporate Profits Tax - - - - ($2,736,184) Personal Tax: Income Tax - - - ($3,205,195) - Total Federal Tax ($4,736,184) ($152,033) ($2,078,894) ($3,205,195) ($2,736,184)

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County - by - County Findings: Coal Mining Industry Carbon County Carbon County is named after the coal that was discovered there. It was created on March 13, 1843 from parts of Northampton and Monroe Counties. Anthracite coal was first discovered in that area in 1791.

Carbon County sits atop parts of the southern and eastern middle anthracite fields. Coal is found in the western and northwestern portions of the county. The Jim Thorpe area had superior anthracite compared to other places. It joined the ranks of Wilkes-Barre and Scranton in terms of quality. 13

The Lehigh Valley Coal and Navigation Company was founded in 1822 and thrived in then Mauch Chunk, which is now Jim Thorpe. It was the nation’s first anthracite coal company.14 In 1851 a rival company by Asa Packer, the Lehigh Canal and later the Lehigh Valley Railroad, opened and broke the monopoly control Lehigh Valley coal and Navigation had on the county after opening a route to New York. The former Navigation Company building, which also once served as the center for Packer’s mining operation, has served as a senior citizen home since 1979.15 Due to the wealth brought in by the coal industry, part of the town was (and still is) known as Millionaire’s Row. J.P. Morgan bought the railroad in the 1890s and wealthier residents left the area, thus beginning its decline.16 Deep coal mining lasted there until 1973, and surface mining continues. The county is home to 31 abandoned mines and several abandoned mining towns, like Lausanne.

Carbon County has a population of nearly 64,000 people. This population has decreased by 1.67 percent since 2013 yet increased by 8.82 percent overall since 2000. In 2010, the county population had reached its peak level since 1930; in 1930, the population was 63,380. The population was 62,856 in 2009 and 64,583 in 2010.

The top three industries in Carbon County are (from largest to smallest) education services, and health care and social assistance; manufacturing; and retail trade. The bottom three are wholesale trade; information; and agriculture, forestry, fishing and hunting, and mining.17 In 2017, 7.6 percent of Carbon County residents were unemployed. This is less than previous rates of 10.4 percent in 2013 and eight percent in 2009. Carbon County is part of the Lehigh Valley (the Allentown-Bethlehem-Easton metropolitan statistical area (MSA), which is part of the NY-NJ-PA MSA. Thirty-eight percent of the MSA’s population works outside the area and 54 percent of those workers make $3,333 or more per month.

13 Pennsylvania Historical and Museum Commission. “Schuylkill County.” Available at: 14 Carbon County Historical Marker. ExplorePAhistory.com. Available at: . 15 Prentice, Kelly. 2018. “Decades in the Making, Historic Lehigh Coal & Navigation Building Receives Upgrade.” 16 February. Delaware & Lehigh National Heritage Corridor. Available at: . 16 Pennsylvania Historical and Museum Commission. “Carbon County.” Available at: http://www.phmc.state.pa.us/bah/dam/rg/di/IncorporationDatesForMunicipalities/pdfs/carbon.pdf?catid=13 17 2013-2017 ACS 5-year estimates, Industry by class of worker for the civilian employed population 16 and over Page | 24

The largest percentage of the population holds a high school diploma (28.2 percent). The rate of those who have less than a high school education has continually decreased since 2009 (5.2 percent in 2017). Carbon County experienced an influx in the amount of residents living in poverty, however. There was a 10.3-percent increase, with 11.6 percent living in poverty in 2013 and 12.8 percent in 2017. Nearly 33 percent of homes in Carbon County were built before 1939, and the county has a 25.1-percent housing vacancy rate. A healthy vacancy rate should be around six to seven percent.18

Carbon County is the only county from the block that showed overall increases in surface mining. It gained one new company, producing 80,993 tons more since 2013, and employed two more people. There are currently two companies and 13 employees in surface mining. Carbon is also the only county to show total loss in mineral mining operations. It lost two companies since 2013, production decreased by 66,681 tons, and eight people are out of jobs. There are currently three companies with active permits, and they employ four people. In 2017, the county produced 2.55 percent of the state’s total anthracite.

The PA Department of Environmental Protection Bureau for Abandoned Mine Lands Economic Revitalization Pilot Project chose various locations in the 13-county region to benefit from the project. Carbon County was one of these locations.

Anthracite Surface Mines Reporting Production, Carbon County, 2013-2017 Accidents Permit Total Tons Explosives Number of Hours Non- Year Permit Acres Production Used Employees Worked Fatal Fatal 2013 1 964.0 71,982 775,910 11 19,449 0 0 2017 2 1,174 152,975 1,102,056 13 30,583 0 0 Change 1 210 80,993.0 326,146.0 2 11,134.0 0 0 Change, in % 100.00% 21.78% 112.52% 42.03% 18.18% 57.25% 0% 0%

Anthracite Coal Refuse Production, Carbon County, 2013-2017 Surface Total Tons Number of Hours Accidents Non- Year Permit Permit Acres Production Employees Worked Fatal Fatal 2013 2 504.4 16,141 10 14,120 0 0 2017 2 569.8 14,375 12 20587 0 0 Change 0 65.4 -1766 2 6467 0 0 Change, in % 0.00% 12.97% -10.94% 20.00% 45.80% 0% 0%

18 Kasulis, Kelly. 2016. How Vacancy Rate Points to an Unaffordable Housing Market. 20 April. Ruggles Media. Northeastern University. Available at: . Page | 25

From 2013 to 2017, Carbon County gained one coal mining operation and two employees, and added 80,993 tons to their total production. This data from the Annual Mining Reports provided by the Pennsylvania Department of Environmental Protection’s Bureau of Mining Operations serves to add to the data below from the IMPLAN models. Although Carbon County saw an increase of four coal mining positions from 2001 to 2018, that gain was more than offset by the shedding of 20 jobs in Fossil Fuel Electric Power Generation, leaving a net contraction of 16 jobs in the county, along with $2.5 million in total lost labor income and $22.8 million in lost economic output. This represents a 44.5 percent decrease in employment, a 48.7 percent decrease in labor income, and a 49 percent decrease in total economic output. Jobs impacted by this contraction are found across a wide array of industries, including rail transportation, real estate, and wholesale trade.

Economic Impact of Coal and Coal-Adjacent Industries: Carbon County, 2018 Impact Type Employment Labor Income Value Added Output Direct Effect -16.0 ($644,758) ($4,359,591) ($18,891,207) Indirect Effect -18.0 ($1,594,881) ($1,764,596) ($2,862,788) Induced Effect -8.8 ($302,538) ($565,383) ($1,047,129) Total Effect -42.8 ($2,542,177) ($6,689,570) ($22,801,124)

Fossil Fuel Electric Power Generation Economic Impact: Carbon County, 2018 Impact Type Employment Labor Income Value Added Output Direct Effect -20.0 ($793,822) ($5,196,704) ($21,015,099) Indirect Effect -20.1 ($1,709,877) ($1,930,074) ($3,205,446) Induced Effect -9.8 ($337,941) ($631,342) ($1,169,456) Total Effect -49.9 ($2,841,640) ($7,758,120) ($25,390,000)

Coal Mining Economic Impact: Carbon County, 2018 Impact Type Employment Labor Income Value Added Output Direct Effect 4.0 $149,064 $837,113 $2,123,892 Indirect Effect 2.1 $114,996 $165,478 $342,658 Induced Effect 1.0 $35,403 $65,959 $122,327 Total Effect 7.1 $299,464 $1,068,550 $2,588,877

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Employment Impact of Coal and Coal-Adjacent Industries, Carbon County Labor Value Industry Sector Employment Output Income Added Electric power generation - fossil fuel -20.0 ($793,822) ($5,196,704) ($21,015,099) Marketing research and all other -4.3 ($105,135) ($99,460) ($198,244) miscellaneous Full-service restaurants -2.3 ($44,964) ($51,099) ($106,751) Maintenance and repair construction of -1.9 ($95,820) ($115,424) ($271,753) nonresidential structures Wholesale trade -1.5 ($27,084) ($94,284) ($213,458) Rail transportation -1.2 ($195,960) ($178,172) ($314,429)

Real estate -1.1 ($16,873) ($115,569) ($182,620) Monetary authorities and depository -1.1 ($70,114) ($116,971) ($242,288) credit Legal services -1.0 ($33,419) ($64,806) ($118,579) Scenic and sightseeing transportation -0.8 ($15,773) ($19,880) ($84,890) and support activities

In Carbon County alone, state and local governments have been deprived of approximately $3 million in lost revenue, with nearly 97 percent of that loss coming from indirect business taxes ($2.9 million), 2 percent coming from personal income taxes, and the rest from social insurance taxes and corporate profit taxes. The federal government has lost approximately $808,000 in revenue from these developments, as well, with a plurality (38.6 percent) coming from indirect business taxes, followed by social insurance (26.5 percent), personal income tax (24.9 percent), and the rest divided into proprietor income and corporate taxes.

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State and Local Tax Impact of Coal and Coal-Adjacent Industries, Carbon County Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Dividends - - - - ($1,007) Social Insurance Tax - ($268) - - - - Employee Contribution Social Insurance Tax - ($538) - - - - Employer Contribution Sales Tax - - ($1,059,174) - - Property Tax - - ($1,677,214) - - Motor Vehicle Licensing - - ($24,318) - - Severance Tax - - - - - Other Taxes - - ($176,710) - - Miscellaneous Indirect Business - - ($509) - - Taxes Corporate Profits Tax - - - - ($7,303) Personal Tax: Income Tax - - - ($49,980) - Personal Tax: NonTaxes (Fines- - - - ($13,359) - Fees) Personal Tax: Motor Vehicle - - - ($2,131) - License Personal Tax: Property Taxes - - - ($1,493) - Personal Tax: Other Tax - - - ($863) - (Fish/Hunt) Total State and Local Tax ($806) $0 ($2,937,725) ($67,826) ($8,310)

Federal Tax Impact of Coal and Coal-Adjacent Industries, Carbon County Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Social Insurance Tax- ($109,939) ($47,881) - - - Employee Contribution Social Insurance Tax- ($104,295) - - - - Employer Contribution Excise Taxes - - ($210,893) - - Custom Duty - - ($87,464) - - Miscellaneous Federal Fees - - ($13,688) - - Corporate Profits Tax - - - - ($33,093) Personal Tax: Income Tax - - - ($200,818) - Total Federal Tax ($214,234) ($47,881) ($312,045) ($200,818) ($33,093)

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Columbia County Columbia County was created from part of Northumberland County. At the southwest tip of the anthracite fields, Columbia County also incurred a coal boom and a subsequent bust in the 1930’s. Columbia County is home to Centralia, which experiences one of the most prolific mine fires. It is estimated that the fire has enough fuel to burn for at least another 150 years. Columbia County lies over parts of the southern and eastern middle anthracite fields. Coal from the southern coal field is found in the southernmost part of the county, wedged between Northumberland and Schuylkill Counties. Coal from the eastern middle field is found in the southeast corner where Columbia, Luzerne, and Schuylkill Counties meet. There are 20 abandoned mines in Columbia County, along with abandoned mining towns, like Centralia.

Columbia County has a population 66,615 people. Its population has decreased by 0.6 percent since 2013 yet increased by 3.8 percent overall since 2000. The top three industries in the county are (from largest to smallest) education services, and health care and social assistance; manufacturing; and retail trade. The bottom three industries include agriculture, forestry, fishing and hunting, and mining; information; and wholesale trade.19 The area suffers from a 5.1percent unemployment rate. It has decreased since 2013, when it was at 6.3 percent, and 2009, when it was at 6.5 percent.

The largest percentage of the population holds a high school diploma (23.6 percent). The rate of those who have less than a high school education has continually decreased since 2009 (4.4 percent in 2017). There was also a decrease in poverty in Columbia County. In 2013, 16.6 percent of residents were affected by poverty, and 15.9 percent were affected in 2017 – showing a 4.2 percent decrease. The percentage is higher than the Commonwealth and national levels, at 13.1 percent and 14.6 percent respectively. Thirty-three percent of homes in Columbia County were built before 1939. The county also has an 11.4-percent housing vacancy rate. A healthy vacancy rate should be around six to seven percent.20

In 2017, the county produced 4.4 percent of the county’s total anthracite. The only company with an underground mine permit closed between 2013 and 2017, causing 25 people to lose their jobs. Two of the four companies with surface mine permits closed in that time period, costing two people their jobs. As for the remaining companies, one cut eight workers from its payroll and the other added eight. A total of 49 people work in surface mines. One person died in these mines in 2017. As of 2017, there were nine active mineral mining permits; in 2013, there were seven. Mineral mining added eight jobs to the county; 35 people are currently employed in the industry.

A report titled, “Effects of Abandoned Coal-Mine Drainage on Streamflow and Water Quality in the Shamokin Creek Basin in Northumberland and Columbia Counties 1999-2001” found that some areas of Columbia County’s water reserves had poor water quality.21

19 2013-2017 ACS 5-year estimates, Industry by class of worker for the civilian employed population 16 and over 20 Kasulis 2016. 21Cravotta, Charles. 2005: Effects of abandoned coal-mine drainage on streamflow and water quality in the Mahanoy Creek Basin, Schuylkill, Columbia, and Northumberland Counties, Pennsylvania, 2001: U.S. Geological Survey Scientific Investigations Report 20014-54291. Available at: . Page | 29

Anthracite Surface Mines Reporting Production, Columbia County, 2013-2017 Permit Total Tons Explosives Number of Hours Accidents Year Permit Acres Production Used Employees Worked Fatal Non-Fatal 2013 4 2,118.0 355,586 2,781,167 51 100,184 0 0 2017 2 2,251 139,216 1,527,345 49 97,700 0 1 Change -2 133 -216,370 -1,253,822 -2 -2,484 0 1 Change, in % -50.0% 6.3% -60.9% -45.0% -3.9% -2.5% 0% -

Anthracite Underground Mines Reporting Production, Columbia County, 2013-2017 Surface Accidents Permit Total Tons Number of Hours Year Permit Acres Production Employees Worked Fatal Non-Fatal 2013 1 34.1 12,907 25 15,072 0 1 2017 0 0 0 0 0 0 0 Change -1 -34.1 -12,907 -25 -15,072 0 -1 Change, in % -100.0% -10.00% -100.0% -100.0% -100.0% 0% -100.0%

Anthracite Coal Refuse Production, Columbia County, 2013-2017 Surface Total Tons Number of Hours Accidents Year Permit Permit Acres Production Employees Worked Fatal Non-Fatal 2013 1 343 42,066 2 1,040 0 0 2017 1 343 19,412 3 400 0 0 Change 0 0 -22,654 1 -640 0 0 Change, in % 0.0% 0.0% -53.9% 50.00% -61.5% 0% 0%

The following analysis of the coal industry on Columbia County shows average percentage changes near 1500 percent. This large percentage is indicative of the small values that the county had in 2001, which increased slightly. For example, the increase of the coal industry’s impact on state and local taxes of employee’s contributions to social insurance increased from $9 to $142 – showing a 1478percent change. The value of the increase is nominal to the county’s overall economy. The increase of 15 jobs is notable, but not as remarkable when viewed over the course of 17 years in a county where 66,615 people live.

It is more revealing to view the change in count from 2001 to 2018. The percent change from the start to end year has been provided in order to show how much the industry has changed within itself and within Columbia County.

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Coal Industry Economic Impacts: Columbia, 2001-2018 Labor Total Value Impact Type Employment Output Income Added Direct Effect 15.00 $394,951 $2,334,564 $7,152,798 Indirect Effect 5.30 $251,619 $390,597 $808,709 Induced Effect 2.90 $106,548 $186,390 $336,751 Total Effect 23.2 $753,118 $2,911,551 $8,298,258

Columbia County experienced substantial positive economic increases thanks to the coal industry. Overall employment due to direct, indirect, and induced effects increased by 23 people, or 1450 percent, from 2001 to 2018. According to the Pennsylvania Department of Environmental Protection’s Bureau of Mining Programs, in 2017 Columbia County had two surface mines in operation, with 49 employees. This is a decrease from four mining operations and 51 employees in 2013. The Bureau of Mining Programs only provided annual reports until 2011; in that year, Columbia County had three mining companies with 51 employees. Data for 2018 is not yet available. Perhaps the unavailable data explains the sudden and massive increase in the coal mining industry in the county.

As with Carbon County, Columbia County’s employment increases due to indirect and induced effects of the industry all increased positively but at a lesser amount than those associated with the direct effect. The direct effect of the coal industry’s economic impacts employed 15 more people than in 2001. Also similar to Carbon County, all other impacts had the same percentage increase – 1500 percent – apart from employment.

Top Ten for Employment, Columbia County 2001-2018 Total Total Labor Total Value Description Total Output Employment Income Added Coal mining 15 $395,039 $2,335,082 $7,154,386 Maintenance and repair construction of nonresidential $57,513 $74,812 $162,107 structures 1 Management of companies and $51,261 $64,534 $131,064 enterprises 0.7 Wholesale trade 0.5 $22,571 $47,953 $80,639 Truck transportation 0.3 $23,900 $28,018 $55,665 Full-service restaurants 0.3 $4,810 $5,473 $11,436 Limited-service restaurants 0.2 $4,207 $9,186 $17,043 Architectural, engineering, and $10,867 $10,369 $24,712 related services 0.2 Commercial and industrial machinery and equipment rental $11,261 $33,958 $50,246 and leasing 0.2 Other financial investment activities 0.2 ($31) $368 $25,475 Total 18.6 $581,399 $2,609,752 $7,712,772

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Apart from coal mining and maintenance repair and construction, all top ten coal-adjacent industries recorded no employees in 2001. Each increased up to 0.2 employees in 2018, with the most at nearly one person increase. Though the table shows employment as having the lowest percentage increase over time, in fact it was the highest. The total percentage change increase only includes coal mining and maintenance and repair as the other percent changes were infinite. Other financial investment activities had the smallest overall increases, at 492 percent.

The total labor income of other financial investment activities is the only aspect of employment in relation to the coal industry that decreased. It is also the only impact to begin as a deficit. It fell into a further shortage by $31 dollars. Even so, its total value added and output increased by 1500 percent each. At 1375 percent, maintenance and repair construction experienced the second least percentage change.

State and Local Tax Impact by Total, Columbia County Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Dividends $1,615 Social Insurance Tax- $133 Employee Contribution Social Insurance Tax- $267 Employer Contribution TOPI: Sales Tax $244,854 TOPI: Property Tax $175,665 TOPI: Motor Vehicle License $3,398 TOPI: Severance Tax TOPI: Other Taxes $27,669 TOPI: S/L Non Taxes $114 Corporate Profits Tax $16,621 Personal Tax: Income Tax $14,955 Personal Tax: Non Taxes (Fines- Fees) $2,207 Personal Tax: Motor Vehicle License $539 Personal Tax: Property Taxes $283 Personal Tax: Other Tax $219 (Fish/Hunt) Total State and Local Tax $400 $0 $451,702 $18,203 $18,237

Though the industry’s impact on state and local taxes created positive percent changes, there were some disparities in the industry’s actual impact. Employee compensation saw the smallest increase by percentage and count; it was 19 percent less than the other areas impacted. Taxes on production and imports saw the largest increases in both percentage and count.

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Federal Tax Impact by Total, Columbia County Employee Proprietor Tax on Production Description Households Corporations Compensation Income and Imports Social Insurance Tax- Employee Contribution $45,076 $2,497 Social Insurance Tax- Employer Contribution $42,762 TOPI: Excise Taxes $28,457 TOPI: Custom Duty $11,802 TOPI: Federal; Non Taxes $1,847 Corporate Profits Tax $75,313 Personal Tax: Income Tax $51,318 Total Federal Tax $87,838 $2,497 $42,105 $51,318 $75,313

In line with previous Columbia County IMPLAN data, the coal industry’s impact on federal tax was positive and significantly high. The impact on proprietor income was the lowest, with a 1495percent and $2,497 increase from 2001 to 2018. Households experienced the heaviest impact with a 1500percent increase in federal taxes.

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Luzerne County Luzerne County was created in 1786 from part of Northumberland County. It has two anthracite fields. It is home to a large part of the Northern Anthracite Field, the second largest of the anthracite fields. The southern portion of the county lies atop the majority of the Eastern Middle Anthracite Field. Coal from the northern field is found from the center of the county up to the northwest quadrant, continuing into Lackawanna County. Coal from the eastern middle field is found along the southern border of the county. There it is available in threads rather than block like fields akin to the northern field. The Wilkes- Barre area had anthracite superior to that in other places. It joined the ranks of Jim Thorpe and Scranton. 22

The first commercially successful U.S. anthracite firm was established in Luzerne (at the time Lucerne). Abijah Smith & Company was created in 1807. It began shipping coal down the Susquehanna River in 1807 and was the first company to extract Pennsylvania coal by powder blasting in 1818.23 In 1808, Judge Fell proved anthracite coal’s burning potential by burning it over a grate in Wilkes Barre. It was the first time anthracite was burned as a residential heating fuel.

Luzerne County not only had reserves in coal but it also facilitated its transportation within and outside county limits. In 1834 the North Branch Canal eased the transportation, and many more railroads and canals later opened. For instance, the Wyoming Division Canal opened the Wyoming Valley’s coal mining industry to the mid-Atlantic trade markets. It allowed for the valley to become the world’s largest anthracite coal producer. The canal closed in 1882.

The county suffered several mining disasters as well. In 1869, a fire broke out and killed 110 workers in a Plymouth mine. It was called the Avondale Mine Disaster. Mining initially declined as a result of strikes, which started in 1902 and lasted through 1925-1926. Arguments were so drawn out and bitter that residents started seeking other heating sources.24 Similar to other anthracite counties, World War II revived the industry but in 1959 deep anthracite mining ended with the Knox Mine Disaster. Twelve men were killed after the floor of the Susquehanna River broke open and flooded the mine. There are 247 abandoned mines in the county.25

In 2017, Luzerne County produced 40.63 percent of the state’s anthracite, or three-fifths of total production, solely through surface mining. The county lost three surface mining companies from 2013 to 2017. This resulted in a loss in production by 662,436 tons and 83 employees. Six people lost their lives in surface mines in 2017. There are 10 active permits in Luzerne County; the companies employ 176 people. Furthermore, the county showed total gains in the mineral mining industry. Six new companies started operations, thus generating 34 new jobs and 1,389,319 tons more than 2013. There are 31 active permits with 202 employees.

22 Pennsylvania Historical and Museum Commission. “Schuylkill County.” Available at: 23 Lumpkins, Charles. 24 Pennsylvania Historical and Museum Commission. “Luzerne County.” Available at: . 25PA DEP. Number of AML Sites by County. Map. Available at: . Page | 34

Luzerne County has a population of 318,222. This population decreased by 0.8 percent since 2013 and by 0.3 percent overall since 2000. Luzerne County has had high unemployment rates since World War II. The introduction of new mining machinery added to this statistic before the fall of the industry in the 1960s. 26 Seven percent of the county was unemployed in 2017, which is less than the 2013 rate of 8.4 percent. The top three industries in the county are (from largest to smallest) education services, and health care and social assistance; manufacturing; and retail trade. The bottom three include wholesale trade; information; and agriculture, forestry, fishing and hunting, and mining.27

The largest percentage of the population holds a high school diploma (22.4 percent). The rate of those who have less than a high school education has continually decreased since 2009 (5.6 percent in 2017). Luzerne County showed a decrease in poverty levels since 2013, when 15.6 percent of residents lived in poverty. In 2017, 15.2 percent lived in poverty. This rate is higher than the Commonwealth and national levels, however, at 13.1 and 14.6 respectively. Moreover, 35.8 percent of Luzerne County homes were built before 1939. The county also has a 14.4 percent housing vacancy rate. This is the third highest vacancy rate in the region. A healthy vacancy rate should be around six to seven percent.28

The PA Department of Environmental Protection Bureau for Abandoned Mine Lands Economic Revitalization Pilot Project chose various locations in the 13-county region to benefit from its project. Luzerne County was one of these locations.

Anthracite Surface Mines Reporting Production, Luzerne County, 2013-2017 Permit Total Tons Explosives Number of Hours Accidents Year Permit Acres Production Used Employees Worked Fatal Non-Fatal 2013 13 7,400.9 1,951,832 3,156,963 259 438,552 0 18 2017 10 4879 1,289,396 2,877,837 176 320517 0 6 Change -3 -2,521.9 -662,436 -279,126 -83 -118,035 0 -12 Change, in % -23.1% -34.1% -33.9% -8.8% -32.0% -26.9% 0% -66.7%

Anthracite Coal Refuse Production, Luzerne County, 2013-2017 Surface Total Tons Number of Hours Accidents Year Permit Permit Acres Production Employees Worked Fatal Non-Fatal 2013 7 692.9 73,577 41 54,886 0 0 2017 10 2491.2 322,165 31 46318 0 0 Change 3 1,798.3 248,588 -10 -8,568 0 0 Change, in % 42.9% 259.5% 337.9% -24.4% -15.6% 0% 0%

Luzerne County was hit hard by loss in the coal industry. According to DEP data, the county lost 662,436 tons in production and 83 employees from 2013 to 2017. Although the other counties may show slight gains in the industry, Luzerne County lost substantial capital and jobs from 2001 to 2018. The following

26 PHMC. “Luzerne County.” 27 2013-2017 ACS 5-year estimates, Industry by class of worker for the civilian employed population 16 and over 28 Kasulis 2016. Page | 35

indicators display the economic downturn the Luzerne Coal industry took over the course of 17 years. According to the PA DEP Annual Mining reports, Luzerne County saw three companies close their coal mining operations from 2013 to 2017. From 2017 to 2018, the industry lost 16 direct coal mining jobs.29 Overall, the Coal Mining and Fossil Fuel Electric Power Generation industries in Luzerne County lost nearly 641 jobs from 2001 to 2018 (234 of them were directly from the industry). The industry lost nearly $142 million dollars in value added during this time period, but employment suffered the most with a 59 percent loss. Industry output fell the least as a percentage, although it lost nearly $257 million in value. The massive decline of the coal industry in Luzerne County has touched a multitude of other industries, ranging from employment services and full-service restaurants to hospitals and real estate.

Economic Impact of Coal and Coal-Adjacent Industries: Luzerne County Impact Type Employment Labor Income Value Added Output Direct Effect -234.0 ($24,046,323) ($91,048,560) ($201,606,795) Indirect Effect -185.1 ($12,947,822) ($26,386,755) ($28,854,239) Induced Effect -221.5 ($9,194,871) ($25,398,088) ($27,354,648) Total Effect -640.6 ($46,189,016) ($142,833,403) ($257,815,682)

Coal Mining Economic Impact: Luzerne County Impact Type Employment Labor Income Value Added Output Direct Effect -132.0 ($8,693,020) ($36,348,574) ($66,358,206) Indirect Effect -58.4 ($3,698,796) ($5,984,129) ($10,346,457) Induced Effect -74.2 ($3,081,220) ($5,209,744) ($9,166,253) Total Effect -264.6 ($15,473,036) ($47,542,447) ($85,870,917)

Fossil Fuel Electric Power Generation Economic Impact: Luzerne County Impact Type Employment Labor Income Value Added Output Direct Effect -102.0 ($15,353,303) ($54,699,986) ($135,248,589) Indirect Effect -126.7 ($9,249,026) ($20,402,626) ($18,507,782) Induced Effect -147.3 ($6,113,651) ($20,188,344) ($18,188,395) Total Effect -376.0 ($30,715,979) ($95,290,956) ($171,944,765)

29 PA DEP Mining Reports Page | 36

Employment Impact of Coal and Coal-Adjacent Industries, Luzerne County Industry Sector Employment Labor Income Value Added Output Coal mining -132.0 ($8,693,020) ($36,348,574) ($66,358,206) Electric power -102.0 ($15,360,063) ($54,724,070) ($135,308,138) generation - fossil fuel Employment services -25.9 ($662,125) ($925,883) ($1,460,149) Full-service -19.0 ($388,088) ($437,639) ($888,637) restaurants Maintenance and repair construction of -11.1 ($597,138) ($803,311) ($1,713,919) nonresidential structures Real estate -9.2 ($45,628) ($697,537) ($1,200,652) Wholesale trade -9.1 ($647,001) ($1,291,702) ($1,982,492) Marketing research and all other miscellaneous -8.7 ($340,485) ($322,705) ($521,554) professional, scientific, and technical services Hospitals -8.6 ($630,591) ($700,255) ($1,345,256) Limited-service -7.3 ($144,652) ($343,254) ($617,195) restaurants

In Luzerne County alone, federal, state, and local governments have been deprived of $32.7 million in lost revenue from the decline of the coal industry in the county. Approximately 53 percent of that loss ($17.3 million) comes from the state or local government level, led by indirect business taxes, personal income taxes, and corporate profits taxation. On the federal level, revenue offices have been deprived of $15.4 million in lost revenue from this economic contraction, led by social insurance taxes, personal income taxes, corporate taxes, and indirect business taxes.

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State and Local Tax Impact of Coal and Coal-Adjacent Industries: Luzerne County Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Dividends - - - - ($22,869) Social Insurance Tax - ($4,945) - - - - Employee Contribution Social Insurance Tax - ($9,894) - - - - Employer Contribution Sales Tax - - ($8,742,108) - - Property Tax - - ($6,267,032) - - Motor Vehicle Licensing - - ($112,373) - - Severance Tax - - - - - Other Taxes - - ($1,151,741) - - Miscellaneous Indirect - - ($15,132) - - Business Taxes Corporate Profits Tax - - - - ($272,760) Personal Tax: Income - - - ($603,843) - Tax Personal Tax: NonTaxes - - - ($79,078) - (Fines-Fees) Personal Tax: Motor - - - ($22,990) - Vehicle License Personal Tax: Property - - - ($12,994) - Taxes Personal Tax: Other Tax - - - ($9,348) - (Fish/Hunt) Total State and Local Tax ($14,839) $0 ($16,288,387) ($728,252) ($295,629)

Federal Tax Impact of Coal and Coal-Adjacent Industries, Luzerne County Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Social Insurance Tax- ($2,928,507) ($262,993) - - - Employee Contribution Social Insurance Tax- ($2,778,171) - - - - Employer Contribution Excise Taxes - - ($1,632,842) - - Custom Duty - - ($677,192) - - Miscellaneous Federal Fees - - ($105,974) - - Corporate Profits Tax - - - - ($3,325,426) Personal Tax: Income Tax - - - ($3,697,066) - Total Federal Tax ($5,706,678) ($262,993) ($2,416,008) ($3,697,066) ($3,325,426)

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Schuylkill County Most of the southern anthracite field – the largest of the four fields – lies in Schuylkill County. It reaches from the southwest border, continues and grows larger throughout the center of the county. The central portion of the field reaches up and through the area where Northumberland and Columbia Counties meet Schuylkill. The field also expands from county’s center to the area where Luzerne and Carbon Counties meet the Schuylkill’s northeast borders. Parts of the northeast corner of the county are home to some of the Eastern Middle Anthracite field as well. Four billion tons of anthracite remain in the fields under Schuylkill County.30

The county was formed from Berks and Northampton Counties in 1811. Parts of Columbia and Luzerne counties were added in 1818. The county is named after the Schuylkill River. It was in Schuylkill County were anthracite was first burned in 1790, and in 1812 it was shown to fire a rolling mill.31 In 1822, the first shipment of coal hit the Schuylkill River and spurred more mining due to ease of transportation. In 1863, it was reported that the Mammoth Vein – the largest vein of coal in the region – was sold exclusively to the United States Navy.32

Strip mining began just after 1900 and bootleg miners prevailed between 1930 and 1940 due to the fall of the former coal corporations.33 Nearly half the miners in the county lost their jobs during the Great Depression. The area did not have much of a diversified economy, so they were left without any other means of income. Approximately 39,000 of Schuylkill’s total labor force of 82,000 were jobless, and 16,000 of them were miners. In 1941, bootleg mining accounted for one of four jobs in Schuylkill and Northumberland Counties. World War II marked the end of illegal mining operations.

From 1880 to 1940, Schuylkill County was second only to Luzerne County in anthracite production. It was also a transportation corridor for coal. In 1833, the first locomotive carried anthracite from Tamaqua to the canal at Port Clinton. In 1842, railroad tracks covered the county. 34 Schuylkill County’s population peaked at 235,505 in 1930. The population was 144,287 in 2017, a 29 percent decrease. There are 338 abandoned mine lands in the county.

Schuylkill County has a population of 144,287. Its population has decreased by 2.3 percent since 2013 and by 4.0 percent overall since 2000. The top three industries in the county (from largest to smallest) are education services, and health care and social assistance; manufacturing; and retail trade. The bottom three are wholesale trade; agriculture, forestry, fishing and hunting, and mining; and information.35 In 2017, Schuylkill County had a 6.9-percent unemployment rate. In 2013, the rate was 9.6 percent. The largest percentage of the population holds a high school diploma (28 percent). The rate

30 Schuylkill Chamber of Commerce. 2017. History. Available at: . 31 PHMC. “Schuylkill County.” 32 NY Times. 1863. “The Schuylkill Coal Region.; The Coal Trade—The Difficulties in the Region—Injudicious Counsel—How the Enrolment is Progressing—Singular Action of the County Court Arrest of a Deputy Precent- Marshal the Crops, &c. 21 June. The New York Times. Available at: . 33 PHMC. “Schuylkill County.” 34Schuylkill Chamber of Commerce 2017. 35 2013-2017 ACS 5-year estimates, Industry by class of worker for the civilian employed population 16 and over Page | 39

of those who have less than a high school education has continually decreased since 2009 (6.2 percent in 2017). Schuylkill County residents also saw a decrease in poverty levels; 12.8 percent were affected in 2013 and that number decreased to 12.5 by 2017. Just over 48 percent of homes in Schuylkill County were built before 1939. This is the highest rate in the region. The county also has a 15.7-percent housing vacancy rate. A healthy vacancy rate should be around six to seven percent.36

Schuylkill is the only county in the region to retain underground mining operations. In 2017, two underground mining companies closed and two new ones opened. The overall production of the county dropped by 2,049 tons yet overall it gained one new job. There are eight underground mines, which employ 55 people. Schuylkill County also has the most active mining industry, especially in terms in surface mining. There has unfortunately been a loss of seven companies since 2013, costing 58 employees their jobs. Overall production for this sector dropped by 443,765 tons. Seven people died in surface mines in 2017.

There are 32 surface mines in the county, and 231 people are employed through them. The county gained one permit for industrial mining and production increased by 71.897 tons yet 60 people lost jobs since 2013. There are a total of 13 permit holders and 72 employees in the mines. The county produced the most anthracite of all counties in the region in 2017; it produced 46.9 percent of the state’s anthracite through underground and surface mining.

The PA Department of Environmental Protection Bureau for Abandoned Mine Lands Economic Revitalization Pilot Project chose various locations in the 13-county region to benefit from the project (Carbon, Schuylkill, Luzerne, and Lackawanna Counties). Four of the six projects take place in or in part of Schuylkill County. 37

Anthracite Surface Mines Reporting Production, Schuylkill County, 2013-2017 Permit Total Tons Explosives Number of Hours Accidents Year Permit Acres Production Used Employees Worked Fatal Non-Fatal 2013 39 25,429.3 1,866,422 8,770,634 271 527,619 0 15 2017 32 27,635.6 1,422,657 6,897,037 213 383,555 0 7 Change -7 2,206.3 -443,765 -1,873,597 -58 -144,064 0 -8 Change, in % -18.0% 8.7% -23.78% -21.4% -21.4% -27.3% 0% -53.3%

36Kasulis 2016. 74OSMRE. 2017. Report on Abandoned Mine Land Reclamation Economic Development Pilot Program (AML Pilot Program) for FY 2016-FY 2017. OSMRE. Available at: . Page | 40

Anthracite Underground Mines Reporting Production, Schuylkill County, 2013-2017 Surface Accidents Permit Total Tons Number of Hours Non- Year Permit Acres Production Employees Worked Fatal Fatal 2013 8 30.7 68,502 54 85,535 0 0 2017 8 82.8 66,453 55 97,597 0 0 Change 0 52.1 -2,049 1 12,062 0 0 Change, in % 0 % 169.7% -3.0% 1.9% 14.1% 0% 0%

Anthracite Coal Refuse Production, Schuylkill County, 2013-2017 Surface Total Tons Number of Hours Accidents Year Permit Permit Acres Production Employees Worked Fatal Non-Fatal 2013 24 11,253.7 3,298,863 179 364,488 0 13 2017 21 10,306.7 2,733,238 148 244,613 1 4 Change -3 -947 -565,625 -31 -119,875 1 -9 Change, in % -12.5% -8.4% -17.2% -17.3% -32.9% ∞ -69.2%

Overall, Schuylkill County experienced the largest direct, indirect, and induced economic impact due to the coal industry, gaining approximately 48 jobs, $9.1 in new labor income, and $64.6 million in new economic output over the last seventeen years. When looking at shorter periods of data, however, it is clear that Schuylkill County incurred damages. The county lost seven mining operations, 1.2 million tons in total production, and 58 employees from 2013 to 2017.38 Schuylkill County experienced very slight increases in economic activity due to the impact of the coal industry. On average, the induced effects of the coal industry made the least impact on the county economy and the direct effects made the most impact. Finally, the industries in Schuylkill County that were most enriched by modest growth in the coal industry include the extraction of natural gas and petroleum, employment services, and market research.

Economic Impact of Coal and Coal-Adjacent Industries: Schuylkill County Impact Type Employment Labor Income Value Added Output Direct Effect 48.0 $5,149,402 $21,140,399 $51,701,748 Indirect Effect 57.9 $2,800,072 $4,364,476 $9,230,378 Induced Effect 31.2 $1,154,206 $2,006,173 $3,641,875 Total Effect 137.1 $9,103,680 $27,511,048 $64,574,001

38 PA DEP Annual Mining Reports. Page | 41

Fossil Fuel Electric Power Generation Economic Impact: Schuylkill County Impact Type Employment Labor Income Value Added Output Direct Effect 31.0 $4,074,247 $15,130,455 $39,617,542 Indirect Effect 51.1 $2,354,986 $3,689,828 $7,950,617 Induced Effect 25.3 $933,753 $1,623,286 $2,946,627 Total Effect 107.4 $7,362,986 $20,443,570 $50,514,785

Coal Mining Economic Impact: Schuylkill County Impact Type Employment Labor Income Value Added Output Direct Effect 17.0 $1,075,155 $6,009,944 $12,084,206 Indirect Effect 6.8 $445,086 $674,648 $1,279,761 Induced Effect 5.9 $220,453 $382,887 $695,248 Total Effect 29.8 $1,740,694 $7,067,478 $14,059,215

Employment Impact of Coal and Coal-Adjacent Industries, Schuylkill County Labor Value Industry Sector Employment Output Income Added Electric power generation - fossil fuel 31.1 $4,084,143 $15,167,205 $39,713,767 Coal mining 19.1 $1,166,436 $6,192,740 $12,355,427 Extraction of natural gas and crude 15.6 $385,073 $798,017 $2,286,963 petroleum Employment services 3.8 $100,545 $140,273 $219,612 Marketing research and all other 3.7 $104,161 $96,516 $181,092 miscellaneous professions Full-service restaurants 3.5 $58,226 $67,490 $150,262 Scenic and sightseeing transportation and support activities for 3.5 $326,286 $386,928 $655,614 transportation Maintenance and repair construction 3.3 $164,882 $207,865 $478,204 of nonresidential structures Real estate 1.9 $33,783 $126,163 $232,851 Monetary authorities and depository 1.8 $93,870 $160,781 $360,969 credit intermediation

Seventeen years of modest increases in Schuylkill County have enriched treasury offices on federal, state, and local levels of government by $9.1 million. On the state and local level, this employment growth has spawned the creation of nearly $6 million in new revenue, led by indirect business taxes ($5.7 million), personal income taxes ($0.2 million), and corporate taxes ($0.1 million).

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State and Local Tax Impact of Coal and Coal-Adjacent Industries, Schuylkill County Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Dividends - - - - $11,245 Social Insurance Tax - $1,569 - - - - Employee Contribution Social Insurance Tax - $3,140 - - - - Employer Contribution Sales Tax - - $2,825,924 - - Property Tax - - $2,336,981 - - Motor Vehicle Licensing - - $52,557 - - Severance Tax - - - - - Other Taxes - - $491,712 - - Miscellaneous Indirect - - $2,473 - - Business Taxes Corporate Profits Tax - - - - $120,725 Personal Tax: Income Tax - - - $170,562 - Personal Tax: Non Taxes - - - $18,588 - (Fines-Fees) Personal Tax: Motor Vehicle - - - $6,801 - License Personal Tax: Property Taxes - - - $3,079 - Personal Tax: Other Tax - - - $2,760 - (Fish/Hunt) Total State and Local Tax $4,709 $0 $5,709,647 $201,790 $131,970

Federal Tax Impact of Coal and Coal-Adjacent Industries, Schuylkill County Tax on Employee Proprietor Production Description Households Corporations Compensation Income and Imports Social Insurance Tax- $563,129 $156,344 - - - Employee Contribution Social Insurance Tax- $534,221 - - - - Employer Contribution Excise Taxes - - $410,272 - - Custom Duty - - $170,153 - - Miscellaneous Federal Fees - - $26,628 - - Corporate Profits Tax - - - - $547,022 Personal Tax: Income Tax - - - $641,371 - Total Federal Tax $1,097,350 $156,344 $607,053 $641,371 $547,022

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Summary of Economic Impact Analysis – Vanished Industries Since 2001, both Coal Mining and Fossil Fuel Electric Power Generation industries have been effectively wiped out in seven of the 13 Northeastern Pennsylvania counties comprising the geographic scope of this report. The counties are Bradford, Monroe, Pike, Susquehanna, Sullivan, Wayne, and Wyoming. The extinction of these industries has resulted (either directly or indirectly) in the loss of approximately 1,159 jobs, $60.7 million in labor income, and $381.2 million in economic output since 2001.

Of these 1,159 positions lost, approximately 304 came directly from the aforementioned industries (Coal Mining and Fossil Fuel Electric Power Generation), which resulted in the loss of both $33.7 million in labor income and $290.1 million in economic output over the last 17 years. The effect of the coal economy’s elimination in these counties has also disrupted economic conditions for supply chain vendors, resulting in the loss of another 550 jobs, $18.9 million in lost labor income, and $65.4 million in economic output for those vendors. Moreover, the resulting decrease in consumption of community goods and services from workers in these industries has generated additional losses of nearly 305 positions, along with $8.1 million in lost labor income and $25.7 million in economic output. Finally, as observed in the employment impact graphic below, the elimination of coal and coal-adjacent industries across Northeastern Pennsylvania has generated a ripple effect across a wide variety of other industries and occupations, ranging from fossil fuel extraction and commercial maintenance positions to those in the medical, legal, and service industries – impacting hospitals, legal services, full-service restaurants, and real estate.

Economic Losses from Vanished Industries, Northeastern Pennsylvania Impact Type Employment Labor Income Value Added Output Direct Effect -304.0 ($33,746,542) ($119,980,418) ($290,083,469) Indirect Effect -550.2 ($18,916,575) ($38,334,732) ($65,402,974) Induced Effect -304.7 ($8,118,110) ($14,503,660) ($25,724,779) Total Effect -1,158.9 ($60,781,227) ($172,818,810) ($381,211,222)

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Employment Impact from Vanished Industries (Top 10 Industries), Northeastern Pennsylvania Industry Sector Employment Labor Income Value Added Output Electric power generation - fossil fuels -297.0 ($33,430,086) ($118,307,882) ($287,891,967) Extraction of natural gas and crude -148.7 ($1,871,140) ($10,915,086) ($24,659,615) petroleum Marketing research and all other miscellaneous professional, scientific, -75.0 ($1,377,219) ($1,250,404) ($2,504,876) and technical services Maintenance and repair construction of -45.4 ($2,000,207) ($2,515,663) ($4,813,649) nonresidential structures Full-service restaurants -41.0 ($627,853) ($715,984) ($1,400,921) Scenic and sightseeing transportation -28.5 ($1,964,183) ($2,294,166) ($4,729,955) and support activities for transportation Real estate -26.2 ($232,964) ($1,357,843) ($2,527,987) Employment services -22.5 ($539,799) ($747,943) ($1,202,007) Extraction of natural gas liquids -19.2 ($491,439) ($6,786,421) ($8,411,679) Hospitals -18.3 ($972,249) ($1,084,893) ($2,006,619) Legal services -14.2 ($305,353) ($628,040) ($1,147,858) Coal mining -7.0 ($316,546) ($1,672,536) ($2,191,502)

The extinction of the coal mining and coal-reliant industries in Northeastern Pennsylvania has not only spawned hundreds of job losses and lost economic output, but also has deprived state, local, and federal governments of approximately $57.2 million of lost revenue collected from a wide range of revenue streams since 2001, including taxes on income, corporations, property, and sales. On the state and local government levels, tax offices have lost a total of $39.4 million in revenue, including $37.3 million from indirect business taxes, $1.3 million in personal income taxes and fees, $735,000 in corporate taxes and dividends, and nearly $30,000 in social insurance taxes. For federal government tax offices, the elimination of these industries have spawned another $17.8 million in losses - $6.8 million in social insurance taxes, $4.4 million in personal income taxes and fees, $3.1 million in indirect business taxes, $3 million in corporate taxes and dividends, and approximately $452,000 in proprietor income.

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State and Local Tax Impact of Vanishing Industries, Northeastern Pennsylvania Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - ($64,097) Social Insurance Tax- Employee ($9,960) - - - - Contribution Social Insurance Tax- Employer ($19,927) - - - - Contribution Sales Tax - - ($15,249,798) - - Property Tax - - ($19,965,301) - - Motor Vehicle Licensing - - ($237,495) - - Severance Tax - - - - - Other Taxes - - ($1,826,447) - - Miscellaneous Indirect Business - - ($63,835) - - Taxes Corporate Profits Tax - - - - ($670,707) Personal Tax: Income Tax - - - ($1,068,283) - Personal Tax: Non Taxes (Fines- - - - ($123,517) - Fees) Personal Tax: Motor Vehicle - - - ($45,653) - License Personal Tax: Property Taxes - - - ($42,435) - Personal Tax: Other Tax (Fish/Hunt) - - - ($18,521) - Total State and Local Tax ($29,887) $0 ($37,342,876) ($1,298,409) ($734,804)

Federal Tax Impact of Vanishing Industries, Northeastern Pennsylvania Tax on Employee Proprietor Description Production Households Corporations Compensation Income and Imports Social Insurance Tax- Employee ($3,510,243) ($451,856) - - - Contribution Social Insurance Tax- Employer ($3,330,042) - - - - Contribution Excise Taxes - - ($2,126,139) - - Custom Duty - - ($881,866) - - Miscellaneous Federal Fees - - ($138,011) - - Corporate Profits Tax - - - - ($3,038,567) Personal Tax: Income Tax - - - ($4,357,509) - Total Federal Tax ($6,840,285) ($451,856) ($3,146,016) ($4,357,509) ($3,038,567)

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County – by - County Findings: Vanished Industries Bradford County Established in 1810 from parts of Luzerne and Lycoming Counties, Bradford County is the only one of the 13-county region to produce mainly bituminous coal, as opposed to anthracite. Although major coal deposits can be found in the southwest and south-central corners of the county, Bradford County represents the most northern and eastern location for the mining of semi-bituminous coal in Northeastern Pennsylvania. The first deposits of bituminous coal were discovered in 1812, on the 30,000 acres of land belonging to Robert Barclay, which resulted in the formation of the Barclay Railroad and Coal Company as well as the Schraeder Land Company.

The discovery of coal deposits in Bradford County spawned further investment and commercial activity in the region. The demands of the burgeoning coal mining industry necessitated railroad tracks and a canal, which in turn facilitated further expansion of the industry. Bradford County saw the creation of the Fall Creek Mines in 1865, the Towanda Coal Company in 1868, and the Schroeder Mines in 1874. Mining villages were built virtually overnight, as total output generated by the coal mining industry skyrocketed from 2,295 tons in 1856 to nearly 3.5 million tons by 1890.

During the 20th century, the available supply became exhausted and the coal industry began a long and inevitable decline in Bradford County. The blow this decline dealt to the county’s economy was initially softened by the boom of the lumber industry in the region, which began in the 1890s. As the lumber industry faced the same scarcity of supply by the 1930s, however, Bradford County began to feel the full impact of economic decline. By 1983, the last operational mines in Barclay Mountain and LeRoy Township closed. As of 2018, there were 12 abandoned mines. While the county is host to a small mineral mining industry (with 43 operations and 186 total employees), no active underground or surface coal mining operations currently exist there.

The decline of the coal industry in Bradford County posed negative impacts for industries that relied in part on its continued activity. In Bradford County, as in many of the other counties comprising this analysis, the most adversely impacted of these industries was Fossil Fuel Electric Power Generation – establishments utilizing and combusting coal and other fossil fuels to produce electric energy. Bradford County lost its last 93 jobs in this industry over the last 17 years, depriving industry workers of approximately $10.5 million in labor income and workers in the overall economy of $17.2 million. The economic impact of this industry’s extinction on supply chain vendors in Bradford County offers additional losses of 136 jobs, $4.2 million in labor income, and $21.3 million in economic output. Additionally, the broader ripple effect on the entire regional economy results in the loss of another 88 jobs, $2.4 million in labor income, and $7.5 million in economic output. Finally, the top 10 industries in Bradford County impacted by the decline of the Fossil Fuel Electric Power Generation industry since 2001 span a wide variety of sectors, ranging from the extraction of natural gas and crude petroleum to legal services and market research.

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Fossil Fuel Electric Power Generation Economic Impacts, Bradford County Impact Type Employment Labor Income Value Added Output Direct Effect -93.0 ($10,468,006) ($37,045,903) ($90,147,990) Indirect Effect -136.7 ($4,270,963) ($14,697,521) ($21,281,277) Induced Effect -87.7 ($2,458,108) ($4,205,485) ($7,516,167) Total Effect -317.4 ($17,197,077) ($55,948,909) ($118,945,434)

Employment Impact of Coal Mining Industry, Bradford County Industry Sector Employment Labor Income Value Added Output Electric power generation - fossil fuels -93.0 ($10,468,006) ($37,045,903) ($90,147,990) Marketing research and all other miscellaneous -21.9 ($248,370) ($225,919) ($515,783) professional, scientific, and technical services Extraction of natural gas liquids -13.3 ($297,304) ($4,195,852) ($5,322,391) Scenic and sightseeing transportation and -11.5 ($680,891) ($789,410) ($1,659,949) support activities for transportation Maintenance and repair construction of -11.5 ($482,839) ($626,716) ($964,364) nonresidential structures Employment services -10.8 ($228,823) ($316,451) ($533,441) Hospitals -9.9 ($478,804) ($535,874) ($986,595) Extraction of natural gas and crude petroleum -9.0 ($291,405) ($5,450,469) ($6,697,703) Full-service restaurants -8.8 ($115,570) ($132,697) ($253,778) Legal services -7.4 ($116,189) ($257,088) ($413,917) Real estate -6.3 ($57,087) ($193,825) ($441,863)

The decline of coal mining and its ancillary industries has also generated losses for state, local, and federal governments. Specifically, state and local governments have been deprived of nearly $11.5 million in total revenue across a wide variety of revenue streams. This includes $10,000 in social insurance tax revenue, $10.8 million in indirect business taxes (sales, property, motor vehicle, and other taxes and fees), $417,000 in individual taxes (income, property, and other taxes), and $293,000 in corporate taxes.

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State and Local Tax Impact of Fossil Fuel Electric Power Generation Industry, Bradford County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - ($26,680) Social Insurance Tax- Employee ($3,363) - - - - Contribution Social Insurance Tax- Employer ($6,729) - - - - Contribution Sales Tax - - ($5,386,203) - - Property Tax - - ($4,604,787) - - Motor Vehicle Licensing - - ($85,049) - - Severance Tax - - - - - Other Taxes - - ($663,810) - - Miscellaneous Indirect Business - - ($30,681) - - Taxes Corporate Profits Tax - - - - ($266,398) Personal Tax: Income Tax - - - ($353,223) - Personal Tax: Non Taxes (Fines-Fees) - - - ($37,134) - Personal Tax: Motor Vehicle License - - - ($13,640) - Personal Tax: Property Taxes - - - ($7,473) - Personal Tax: Other Tax - - - ($5,539) - (Fish/Hunt) Total State and Local Tax ($10,092) $0 ($10,770,531) ($417,009) ($293,077)

Federal tax impacts from the loss of this industry in Bradford County since 2001 have been even more dramatic, generating approximately $6.1 million in total losses. Specifically, the elimination of the Fossil Fuel Electric Power Generation industry in Bradford County has spawned losses of $2.2 million in social insurance taxes, $1.3 million in indirect business taxes, $1.3 million in personal income tax, $1.2 million in corporate taxes, and approximately $61,000 in proprietor income.

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Federal Tax Impact of Fossil Fuel Electric Power Generation Industry, Bradford County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Social Insurance Tax- Employee ($1,151,918) ($61,341) - - - Contribution Social Insurance Tax- Employer ($1,092,784) - - - - Contribution Excise Taxes - - ($879,666) - - Custom Duty - - ($364,831) - - Miscellaneous Federal Fees - - ($57,092) - - Corporate Profits Tax - - - - ($1,207,075) Personal Tax: Income Tax - - - ($1,298,139) - Total Federal Tax ($2,244,702) ($61,341) ($1,301,589) ($1,298,139) ($1,207,075)

As of 2018, Bradford County has a population of approximately 61,000 – a decrease of 1.7 percent since 2013 and 1.9 percent overall since 2000. The largest industries represented in the county include education services, healthcare and social assistance, manufacturing, and retail trade. Additionally, Bradford County is home to a growing agricultural community; the number of farms has increased from 1,457 in 2007 to 1,629 in 2012. Moreover, the county’s workforce is less educated in general than the state workforce. Nearly 62 percent of Bradford County residents hold high school diplomas or less, compared to 46 percent across the rest of Pennsylvania. Finally, the housing vacancy rate in Bradford County stands at approximately 18.5 percent, compared to 11.4 percent statewide.

The emergence of the natural gas industry in Bradford Country from the Marcellus Shale formation has yielded some positive results for the region. The number of individuals and families in Bradford County living in poverty has decreased by approximately 8.3 percent since 2013, and the unemployment rate has consistently fallen below statewide averages. As of 2017, Bradford County enjoys an unemployment rate of approximately 5.6 percent, compared to six percent in 2013 and 6.5 percent in 2009. While the displacement of the coal and lumber industries by natural gas provides new opportunities for Bradford County workers, the extinction of the mining and electric power generation industries in the region have set the regional workforce behind by decades.

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Monroe County Formed from sections of Pike and Northampton Counties in 1836, Monroe County was a home to a prominent ancillary industry of the regional coal mining industry – rail transportation. Large portions of the Delaware, Lackawanna, and Western Railroads ran through Monroe County, so the area became a vital part of the transportation corridor conveying coal shipments from anthracite deposits in more northern and western counties directly to the eastern seaboard. As a result, starting around the mid- 1850s, Monroe County’s fortunes grew with the success of the regional coal mining industry. When the Great Depression marked the slow decline of the coal mining industry in the 1930s, demand for Monroe County’s railroad and transportation services, as well as tourism, correspondingly decreased. However, while Monroe County has never housed a coal-rich deposit, the region hosts a small mineral deposit mining industry. Due to the existence of three mineral deposits of limestone and copper, Monroe County is home to 19 active mineral mining operations that employ at least 94 individuals.

The contraction of the coal industry in Lackawanna, Luzerne, and Carbon Counties negatively impacted ancillary industries in Monroe County, chief among them the Fossil Fuel Electric Power Generation industry. At that point, Monroe County employed approximately 85 workers in this industry, which created nearly $9.6 million in labor income and generated nearly $82.4 million in economic output. The larger ripple effect of this industry’s extinction on supply chain vendors in Monroe County resulted in the loss of another 159 jobs, $7.6 million in lost labor income, and $16.5 million in lost economic output. Moreover, the broader economic impact resulting from the elimination of this industry totals approximately 110 jobs, $2.9 million in lost labor income, and $9.1 million in lost economic output. Finally, the top 10 industries in Monroe County impacted by the decline of the Fossil Fuel Electric Power Generation industry since 2001 span a wide variety of sectors, ranging from the extraction of natural gas and crude petroleum to sightseeing transportation and employment services.

Fossil Fuel Electric Power Generation Economic Impacts, Monroe County Impact Type Employment Labor Income Value Added Output Direct Effect -85.0 ($9,567,533) ($33,859,158) ($82,393,324) Indirect Effect -159.2 ($7,611,785) ($9,151,771) ($16,494,075) Induced Effect -110.3 ($2,927,189) ($5,238,797) ($9,099,518) Total Effect -354.5 ($20,106,507) ($48,249,726) ($107,986,917)

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Employment Impact of Fossil Fuel Electric Power Generation, Monroe County Labor Industry Sector Employment Value Added Output Income Electric power generation - fossil fuels -85.0 ($9,567,533) ($33,859,158) ($82,393,324) Extraction of natural gas and crude -48.0 ($1,380,708) ($2,188,491) ($5,937,368) petroleum Marketing research and all other miscellaneous professional, scientific, and -18.3 ($195,689) ($174,279) ($417,143) technical services Full-service restaurants -17.3 ($266,020) ($299,039) ($531,933) Maintenance and repair construction of -12.8 ($465,218) ($568,794) ($980,243) nonresidential structures Scenic and sightseeing transportation and -12.4 ($709,679) ($857,565) ($1,795,123) support activities Employment services -9.2 ($205,146) ($284,574) ($470,727) Real estate -9.1 ($77,958) ($654,494) ($1,012,514) Limited-service restaurants -7.3 ($101,912) ($247,563) ($391,395) Hospitals -5.3 ($284,533) ($316,755) ($557,452) Monetary authorities and depository credit -5.2 ($211,968) ($359,424) ($691,639) intermediation

The elimination of the Fossil Fuel Electric Power Generation industry in Monroe County has resulted not only in job losses and an overall decline in economic output, but also in a decrease in revenue for governments on every level since 2001. Tax offices on the state and local government levels have been deprived of approximately $11.5 million in revenue across multiple streams, including about $10.9 million in indirect business taxes, $438,000 in individual income taxes (income, property, and other), $183,000 in corporate taxes, and $8,600 in social insurance revenues. Federally, losses from the extinction of this industry in Monroe County generate another $4.9 million in losses: $1.9 million in social insurance taxes, $1.4 million in personal income taxes, $751,000 in corporate taxes, $629,000 in indirect business taxes, and approximately $214,000 in proprietor income.

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State and Local Tax Impact of Fossil Fuel Electric Power Generation, Monroe County Employee Proprietor Tax on Production Description Households Corporations Compensation Income and Imports Dividends - - - - ($17,569) Social Insurance Tax - ($2,853) - - - - Employee Contribution Social Insurance Tax - ($5,706) - - - - Employer Contribution Sales Tax - - ($3,792,267) - - Property Tax - - ($6,638,872) - - Motor Vehicle Licensing - - ($53,529) - - Severance Tax - - - - - Other Taxes - - ($430,700) - - Miscellaneous Indirect - - ($3,123) - - Business Taxes Corporate Profits Tax - - - - ($165,715) Personal Tax: Income Tax - - - ($358,744) - Personal Tax: Non Taxes - - - ($39,615) - (Fines-Fees) Personal Tax: Motor - - - ($14,939) - Vehicle License Personal Tax: Property - - - ($18,534) - Taxes Personal Tax: Other Tax - - - ($6,055) - (Fish/Hunt) Total State and Local Tax ($8,559) $0 ($10,918,492) ($437,887) ($183,284)

Federal Tax Impact of Fossil Fuel Electric Power Generation, Monroe County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Social Insurance Tax- ($965,911) ($214,452) - - - Employee Contribution Social Insurance Tax- ($916,326) - - - - Employer Contribution Excise Taxes - - ($424,917) - - Custom Duty - - ($176,225) - - Miscellaneous Federal Fees - - ($27,581) - - Corporate Profits Tax - - - - ($750,859) Personal Tax: Income Tax - - - ($1,435,292) - Total Federal Tax ($1,882,237) ($214,452) ($628,723) ($1,435,292) ($750,859)

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Today, Monroe County is home to approximately 167,306 residents – a one-percent decrease in population since 2013, but a 20.6 percent increase since 2000. As part of the New York-Newark-Jersey City metropolitan statistical area, Monroe County has experienced a burgeoning commuter community over the last few decades. In fact, approximately 58.2 percent of the population is employed outside the county. Of that majority, approximately 51 percent make more than $3,333 per month. The largest percentage of Monroe County’s commuters work in the New York City area (5.5 percent).

The influx of commuters into Monroe County may have partially enlivened the region’s economic development, as typified by the area’s diverse range of prominent industries, including education services, healthcare and social assistance, retail trade, recreation, and accommodation and food services. The least prominent industries include wholesale trade, information, and agriculture. Monroe County has seen a decrease in poverty levels (from 12 percent in 2013 to 11.1 percent in 2017), as well as unemployment rates (13.7 percent in 2013 to 9.2 percent in 2017). Although the percentage of Monroe County residents with high school degrees or less is largely in line with state average (46.9 to 46 percent), the rate of those who have less than a high school education has increased to 5.5 percent since 2009, and the area’s housing vacancy rate (29.1 percent) is nearly triple the statewide average (11 percent). Thus, while an interest in the region’s affordable cost of living from out-of-town commuters may bring new commercial activity into Monroe County, economic enrichment opportunities for native residents are still very much required.

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Pike County Created from a portion of Wayne County in 1814, Pike County has a history steeped in ancillary services to the regional coal mining industry. During the War of 1812, the thriving coal mining industry in Lackawanna and Luzerne Counties served as the primary coal supply for the state of New York in the midst of British sanctions. During this period, Pike County provided the transportation network necessary to convey that supply from Lackawanna County to New York. As a result of continued regional coal sales to New York, the Delaware Aqueduct was constructed in 1849 to ease passage across the Delaware River – the oldest suspension bridge in the United States. Although Pike County itself lacks a history of coal mining, the region is home to other mining and quarrying operations. Since 2013, Pike County hosts roughly 20 mineral mining companies, and total mineral mining production has increased by 245,975 tons during this period. Seventy-eight workers are employed by mining mineral operations in Pike County.

The decline of the coal mining industry in nearby counties in Northeastern Pennsylvania may have contributed to the elimination of an industry considered ancillary to coal extraction – Fossil Fuel Electric Power Generation. This industry lost its last 12 jobs in Pike County in 2001. It was a development which deprived the local economy of $1.4 million in labor income and $11.7 million in economic output from industry workers. Moreover, the broader ripple effect of this industry’s extinction on supply chain vendors in Pike County has resulted in the loss of another 26 jobs, $525,000 in labor income, and $2.2 million in economic output. The larger economic impact emanating from the collapse of this industry totals approximately eight jobs, $173,000 in labor income, and $681,000 in economic output. Finally, the top 10 industries in Pike County impacted by the decline of the Fossil Fuel Electric Power Generation industry since 2001 span a wide variety of sectors, ranging from the extraction of natural gas and crude petroleum to real estate and market research.

Fossil Fuel Electric Power Generation Economic Impacts, Pike County Impact Type Employment Labor Income Value Added Output Direct Effect -12.0 ($1,350,711) ($4,780,116) ($11,631,999) Indirect Effect -26.4 ($525,117) ($827,018) ($2,194,224) Induced Effect -8.1 ($172,597) ($366,131) ($681,449) Total Effect -46.5 ($2,048,425) ($5,973,265) ($14,507,672)

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Employment Impact of Fossil Fuel Electric Power Generation Industry, Pike County Industry Sector Employment Labor Income Value Added Output Electric power generation - fossil fuels -12.0 ($1,350,711) ($4,780,116) ($11,631,999) Extraction of natural gas and crude petroleum -10.3 ($61,768) ($297,795) ($1,273,666) Marketing research and all other miscellaneous professional, scientific, and -4.0 ($87,858) ($86,229) ($178,008) technical services Maintenance and repair construction of -2.7 ($80,227) ($92,198) ($311,209) nonresidential structures Full-service restaurants -1.6 ($32,903) ($37,152) ($75,941) Real estate -1.2 ($11,340) ($73,392) ($136,815) Scenic and sightseeing transportation and -0.9 ($198,276) ($204,538) ($277,195) support activities for transportation Legal services -0.8 ($26,084) ($50,312) ($93,180) Wholesale trade -0.4 ($16,280) ($36,654) ($69,183) Retail - General merchandise stores -0.4 ($12,254) ($17,207) ($29,524) Limited-service restaurants -0.4 ($8,040) ($20,037) ($35,654)

The elimination of this ancillary industry has resulted in revenue losses for government across every level since 2001. State and local tax offices have been deprived of approximately $1.6 million in revenue across multiple streams due to the collapse of this industry – including approximately $1.5 million in indirect business taxes, $35,000 in individual income taxes (income, property, and other), $15,000 in corporate taxes, and $1,000 in social insurance revenues. Federal tax impacts from the loss of this industry in Pike County since 2001 show additional losses totaling approximately $600,000. Specifically, the elimination of the Fossil Fuel Electric Power Generation industry in Pike County has spawned losses of $257,000 in social insurance taxes, $123,000 in indirect business taxes, $144,000 in personal income tax, $62,000 in corporate taxes, and approximately $15,000 in proprietor income.

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State and Local Tax Impact of Fossil Fuel Electric Power Generation Industry, Pike County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - ($1,471) Social Insurance Tax - ($323) - - - - Employee Contribution Social Insurance Tax - ($648) - - - - Employer Contribution Sales Tax - - ($618,269) - - Property Tax - - ($825,372) - - Motor Vehicle Licensing - - ($13,316) - - Severance Tax - - - - - Other Taxes - - ($92,140) - - Miscellaneous Indirect - - - - - Business Taxes Corporate Profits Tax - - - - ($13,761) Personal Tax: Income Tax - - - ($28,608)d - Personal Tax: Non Taxes - - - ($3,110) - (Fines-Fees) Personal Tax: Motor Vehicle - - - ($1,490) - License Personal Tax: Property - - - ($921) - Taxes Personal Tax: Other Tax - - - ($603) - (Fish/Hunt) Total State and Local Tax ($971) $0 ($1,549,097) ($34,732) ($15,233)

Federal Tax Impact of Fossil Fuel Electric Power Generation Industry, Pike County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Social Insurance Tax- ($131,629) ($14,840) - - - Employee Contribution Social Insurance Tax- ($124,871) - - - - Employer Contribution Excise Taxes - - ($82,999) - - Custom Duty - - ($34,424) - - Miscellaneous Federal Fees - - ($5,387) - - Corporate Profits Tax - - - - ($62,361) Personal Tax: Income Tax - - - ($143,805) - Total Federal Tax ($256,500) ($14,840) ($122,810) ($143,805) ($62,361)

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The gradual expansion of New York City’s metropolitan statistical area to include Pike County has undoubtedly triggered an increase in urban commuters relocating to the region. Approximately 76.2 percent of Pike County’s 55,000 residents work outside county lines, with five percent working in the nearby borough of Milford, four percent in New York City, and 2.3 percent in Port Jervis, New Jersey. Although the county’s population has decreased by 2.6 percent since 2013, it has overall increased by approximately 20 percent since 2000, and has been the fastest-growing county in Pennsylvania. Many of the out-of-state workers are more educated than other residents, making Pike County the only one in the 13-county region to have a majority of its population attain at least some college experience. Finally, greater interest in Pike County as a feeder community for New York workers has diversified its economy, enabling multiple industries to thrive. These industries include education services, healthcare and social assistance, retail trade, recreation and entertainment, and accommodation and food services.

The expansion of out-of-state workers into Pike County for commuting purposes has not necessarily contributed to enhanced economic growth for natives, however. The poverty rate of Pike County residents has increased from nine percent in 2013 to nearly 10 percent by 2017. Moreover, approximately 7.8 percent of Pike County residents are unemployed, and the area suffers from a nearly 45-percent housing vacancy rate – compared to 11 percent statewide. Finally, the percentage of Pike County residents attaining less than a high school education actually increased since 2009. Thus, while greater attention has been paid to Pike County by interested urban commuters, such interest does not necessarily pose directly positive implications on the county’s economy and regional workforce.

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Susquehanna County Created from a part of Luzerne County in 1812, Susquehanna County once boasted a robust coal mining industry. Under the southeast corner of the county, where Susquehanna meets Wayne and Lackawanna Counties, lies the northernmost portion of the Northern Anthracite Coal Field. The discovery of this geographic asset in 1889 spawned the rise of the county’s coal mining industry, spearheaded by prominent regional coal companies like Delaware & Hudson (D&H). The Montrose branch of the Lehigh Valley Railroad, which was constructed in 1872, facilitated the transportation of coal across the region and laid the groundwork for further expansion of the industry. Three coal companies established a footprint in the county by 1900, providing jobs for native workers and attracting new workers to the region as commercial activity centered around the town of Forest City. As observed in multiple neighboring counties, however, economic contraction during the Great Depression ultimately served as a catalyst for the decline of Susquehanna County’s coal mining industry. The practice of deep mining gradually ended during the 1930s, while strip mining declined throughout the 1950s. By 1960, the county’s population contracted by nearly 20 percent from its peak in the 1890s.

Until 2001, Susquehanna County was home to two industries that relied on the production of coal – Coal Mining and Fossil Fuel Electric Power Generation – which directly employed 30 individuals and generated economic impacts that supported another 47 individuals outside these industries. Together, these two industries generated $4.2 million in labor income and $30.3 million in economic output – all of which has been eliminated due to their collapse.

Coal and Coal-Adjacent Industries Economic Impacts, Susquehanna County Impact Type Employment Labor Income Value Added Output Direct Effect -30.0 ($2,905,318) ($10,834,426) ($24,486,166) Indirect Effect -32.1 ($912,374) ($3,111,699) ($4,520,411) Induced Effect -15.3 ($349,775) ($695,106) ($1,282,115) Total Effect -77.4 ($4,167,557) ($14,641,231) ($30,288,692)

Of the 30 coal mining and coal-adjacent jobs lost in Susquehanna County, just seven were employed directly by the coal mining industry. The economic impact of this industry’s extinction on supply chain vendors in Susquehanna County offers additional losses of three jobs - $464,000 in labor income, and $2.7 million in economic output. Finally, the broader ripple effect on the entire regional economy from this industry’s contraction results in the loss of another two jobs, $39,000 million in labor income, and $143,000 million in economic output.

Coal Mining Economic Impacts, Susquehanna County Impact Type Employment Labor Income Value Added Output Direct Effect -7.0 ($316,456) ($1,672,536) ($2,191,502) Indirect Effect -3.2 ($108,137) ($211,138) ($344,802) Induced Effect -1.7 ($38,897) ($77,254) ($142,509) Total Effect -11.9 ($463,580) ($1,960,928) ($2,678,813)

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The remaining 23 jobs lost in Susquehanna County due to the contraction of the coal industry were in the Fossil Fuel Electric Power Generation industry, which generated $2.6 million in labor income and $22.3 million in economic output for those employees. Moreover, the impact of this job loss on supply chain vendors spawns another 29 job losses, $804,000 in lost labor income, and $4.2 million in lost economic output. Finally, the larger ripple effect of this decrease in jobs for Susquehanna County’s economy sheds another 14 jobs, $311,000 in lost labor income, and $1.1 million in lost economic output.

Fossil Fuel Electric Power Generation Economic Impacts, Susquehanna County Impact Type Employment Labor Income Value Added Output Direct Effect -23.0 ($2,588,862) ($9,161,890) ($22,294,664) Indirect Effect -28.9 ($804,237) ($2,900,561) ($4,175,609) Induced Effect -13.6 ($310,878) ($617,852) ($1,139,606) Total Effect -65.5 ($3,703,977) ($12,680,303) ($27,609,879)

The top 10 industries in Susquehanna County impacted by the decline of these industries since 2001 span a wide variety of sectors, ranging from the extraction of natural gas and crude petroleum to full- service restaurants and market research.

Employment Impact of Coal and Coal-Adjacent Industries, Susquehanna County Industry Sector Employment Labor Income Value Added Output Electric power generation - fossil fuel -23.0 ($2,588,862) ($9,161,890) ($22,294,664) Coal mining -7.0 ($316,546) ($1,672,536) ($2,191,502) Marketing research and all other miscellaneous professional, scientific, and -6.9 ($141,972) ($120,956) ($205,375) technical services Extraction of natural gas liquids -3.9 ($84,131) ($939,843) ($1,234,189) Maintenance and repair construction of -3.2 ($164,523) ($198,984) ($286,917) nonresidential structures Extraction of natural gas and crude -2.5 ($79,632) ($1,110,721) ($1,415,995) petroleum Full-service restaurants -2.4 ($33,370) ($38,052) ($70,962) Real estate -1.8 ($8,110) ($49,517) ($121,460) Monetary authorities and depository credit -1.4 ($50,706) ($87,868) ($181,964) information Wholesale trade -1.4 ($52,137) ($110,736) ($196,052)

The elimination of both coal mining and coal-adjacent industries in Susquehanna County has resulted in approximately $4.5 million in revenue losses for government across every level since 2001. State and local tax offices have been deprived of approximately $2.9 million in revenue across multiple streams due to the collapse of this industry, including approximately $2.8 million in indirect business taxes, $85,000 in individual income taxes (income, property, and other), $79,000 in corporate taxes, and $6,000 in social insurance revenues. Moreover, federal tax impacts from the loss of this industry in Page | 60

Susquehanna County since 2001 show additional losses totaling approximately $1.6 million. Specifically, the elimination of these industries in Susquehanna County has spawned losses of $587,000 in social insurance taxes, $339,000 in indirect business taxes, $304,000 million in personal income tax, $333,000 in corporate taxes, and approximately $20,000 in proprietor income.

State and Local Tax Impact of Coal and Coal-Adjacent Industries, Susquehanna County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - ($5,328) Social Insurance Tax - ($757) - - - - Employee Contribution Social Insurance Tax - ($1,514) - - - - Employer Contribution Sales Tax - - ($1,158,673) - - Property Tax - - ($1,420,550) - - Motor Vehicle Licensing - - ($24,032) - - Severance Tax - - - - - Other Taxes - - ($161,196) - - Miscellaneous Indirect - - ($7,651) - - Business Taxes Corporate Profits Tax - - - - ($73,523) Personal Tax: Income Tax - - - ($69,165) - Personal Tax: Non Taxes - - - ($9,922) - (Fines-Fees) Personal Tax: Motor Vehicle - - - ($3,194) - License Personal Tax: Property Taxes - - - ($1,912) - Personal Tax: Other Tax - - - ($1,297) - (Fish/Hunt) Total State and Local Tax ($5,663) $0 ($2,772,102) ($85,490) ($78,851)

Federal Tax Impact of Coal and Coal-Adjacent Industries, Susquehanna County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Social Insurance Tax- ($301,452) ($19,677) - - - Employee Contribution Social Insurance Tax- ($285,976) - - - - Employer Contribution Excise Taxes - - ($228,780) - - Custom Duty - - ($94,884) - - Miscellaneous Federal Fees - - ($14,850) - - Corporate Profits Tax - - - - ($333,131) Personal Tax: Income Tax - - - ($303,725) - Total Federal Tax ($587,428) ($19,677) ($338,514) ($303,725) ($333,131)

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Although Susquehanna County boasts the largest industrial mining industry in the 13-county region, there are currently no active permits for underground or surface mining in the area. Susquehanna County is home to 81 industrial mining companies, which employ approximately 328 individuals. However, even this industry has suffered recent contractions, shedding 55 positions and losing approximately 775,276 tons in annual production. Today, a growing natural gas extraction industry has filled some of this gap – in 2017, Susquehanna County became the top producer of natural gas from horizontal wells, representing approximately 24 percent of the state’s natural gas production. Enhanced investment in natural gas has not greatly diversified the county’s workforce, however. The top industries in the region include education services, healthcare and social assistance, manufacturing, and retail trade. The smallest industries in the county include wholesale trade, public administration, and information.

The economic opportunities offered by the expansion of the natural gas industry in the county has not translated to improved quality of life for all residents. Today, Susquehanna County has a population of just 41,000 – a decrease of 1.2 percent since 2000, and nearly 2.9 percent since 2013. While the unemployment rate in the county has fallen from 8.6 to 6.7 percent from 2013 to 2017, the population of Susquehanna County residents living in poverty has increased by nearly one percent – from a rate of 12.9 percent to 13 percent. Moreover, nearly 57 percent of Susquehanna County residents have no more than a high school degree, compared to 46 percent of Pennsylvania residents. Finally, Susquehanna County’s housing vacancy rate of 25.3 percent is nearly double the statewide average, which is approximately 11 percent.

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Sullivan County Created in 1847 from a portion of Lycoming County, Sullivan County sits atop a coal-rich region of Northeastern Pennsylvania. It is home to portions of both the bituminous North-Central Coalfields in the county’s western center and the Western Northern Anthracite Field in the eastern portion of the county (and continues into Wyoming County). The Bernice Coalfield is most prominent among these deposits. It is rich in semi-anthracite coal in unfolded strata. Thus, this particular region of Pennsylvania contains a diverse variety of coal deposits, including bituminous, semi-anthracite, and true anthracite.

Coal mining began in Sullivan County in 1859, when a hunter discovered a coal vein over what would become known as the Bernice Coalfield. The Bernice breaker opened by 1871, using the State Line and Sullivan Railroad to transport its product to more urban markets. The regional boom in the coal mining industry spawned the coal village of Bernice, whose fortunes grew with the expansion of the breaker. In 1903, the Connell Mining Company purchased the breaker, as the number of employees grew to 300. Just three years later, however, the breaker’s supply of coal was exhausted and the mine was closed.

From the 1870s to the 1920s, seven other mines and coal mining firms operated in Sullivan County – The Pee Wee Mine of Randall and Schaad, Mercur Mine, The Forksville Mine, O’Boyle and Foy, the Sullivan Coal Company, the Brown Breaker of Saulsberg and Brown, and The White Ash Coal Company. The largest breaker in Sullivan County, Murray, was built in 1901 by the Northern Anthracite Coal Company. While the Murray breaker site was originally inaccessible and devoid of roads, the increased commercial activity generated by the breaker’s success led to the creation of a nearby mining village, Murraytown. The W.N.B. Railroad expanded its track to accommodate this project. The Murray breaker’s commercial activity peaked in 1919, and was abandoned entirely in 1922, following a strike. In 1935, the breaker was destroyed by a storm. The mining village of Murraytown no longer exists.

Population, Sullivan County Census Population Change (%) 1900 12,134 4.4 1910 11,293 -6.9 1920 9,520 -15.7 1930 7,499 -21.2 1940 7,504 0.1 1950 6,720 -10.4 1960 6,251 -7.3 1970 5,961 -4.6 1980 6,349 6.5 1990 6,104 -3.9 2000 6,556 7.4

2010 6,428 -2.0 2017 6,192 -3.7

Source: U.S. Census Bureau

The 21st century has seen the slow but unrelenting death of the coal industry in Sullivan County. The county is home to 10 abandoned coal mines, and there have been no active coal mining permits since 2013. In fact, the last report of mining in Sullivan County can be traced back to 2008, when a small Page | 63

deposit of bituminous coal was extracted from the Mildred #2 mine on an incidental basis (during construction or excavation). Since 2013, Sullivan County has shed jobs in other forms of mining as total production of minerals declined by 225,703 tons and the region lost a prominent mineral mining company. The decline of the coal industry has scarred the county’s demographic and economic characteristics. As of 2017, Sullivan County has a population of approximately 6,192 people – a decrease of about 3.5 percent since 2013, 5.6 percent since 2000, and 49 percent since 1900. Moreover, Sullivan County’s unemployment rate has steadily increased from 3.8 percent to 2009 to 7.9 percent in 2013, and 8.8 percent at 2017.

The coal industry’s collapse in Sullivan County has not been replaced by a diversifying economy. Although the largest industries in the county now include education, healthcare, manufacturing, and construction, nearly 60 percent of Sullivan County residents holds a high school diploma or less – compared to 46 percent across the rest of Pennsylvania. Additionally, Sullivan County has a 58.4 percent housing vacancy rate – the highest rate in the region and one of the highest in Pennsylvania, which has a 11.4 vacancy rate overall. With the area still reeling from the multi-generational decline of its primary industry, Sullivan County finds itself in a disadvantageous position to capitalize on current economic growth and prosperity.

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Wayne County Formed in 1798 from a portion of Northampton County, Wayne County is situated in the most northeastern corner of Pennsylvania. During the halcyon days of the coal mining industry in the region, Wayne County served as a vital transportation hub for the shipment of the coal extracted from neighboring counties. Honesdale, the seat of Wayne County, was the starting point for the Delaware and Hudson Canal Company’s canal connected to Kingston, New York. The canal, completed in 1828, facilitated the transportation of coal from the anthracite deposits of Northeastern Pennsylvania into New York. It was enlarged in 1845 and 1847 to accommodate the size and frequency of coal shipments, as total coal tonnage increased from 100,000 tons in 1850 to 500,000 tons in 1852. At its height, the canal was the first million-dollar private enterprise in the United States.

Wayne County’s role as the region’s primary transportation hub of coal products expanded even as the prevailing means of coal transportation changed. In 1850, Delaware and Hudson constructed a gravity railroad connecting Pittston in Luzerne County to Hawley in Wayne County, in order to ship coal from the mines of the Northern Coal Field in the Wyoming Valley to larger markets – including the canal. The creation of this railroad track expanded the corridor from the raw anthracite deposits like the Marvine Mine in Scranton to major urban markets in New York City. Expanded commercial activity was responsible for the birth of entire towns and villages in the area. For instance, coal stockpiled during winter months had to be weighed in the spring before shipment at the “weigh-market,” which would later become known as the borough of Waymart. By the turn of the 20th century, the railroad’s success as a medium of coal transportation outcompeted the canal, because the former was capable of operating year round and the canal could only function seven to eight working months each year. Thus, in 1898, the Delaware and Hudson Canal deployed its last coal shipment and was sold to the Cornel Steamboat Company in 1899.

Although a home for ancillary industries in support of coal mining, a small portion of Wayne County does actually sit atop the Northern Anthracite Field, and the county is home to nine abandoned mines. However, although Wayne County has 47 active industrial mining permits (including 25 new permits issued between 2013 and 2017), it currently has no active coal mining permits. As a neighbor to the powerhouse economy for coal mining in Lackawanna County and the Wyoming Valley, the decline of Wayne County’s Fossil Fuel Electric Power Generation industry reflects the broader decline of the coal mining industry across the region. The elimination of this industry, last seen in Wayne County in 2001, has engendered the loss of 61 jobs, which deprived the county’s economy of $6.9 million in labor income and $59.1 million in economic output. When calculating this impact on the industry’s former supply chain vendors, the losses extend by another 161 jobs, $4.3 million in lost labor income, and nearly $15 million in lost economic output. The broader economic ripple effect of the industry’s collapse has resulted in the loss of yet another 66 jobs, $1.7 million in labor income, and $5.6 million in economic output. The top ten industries in Wayne County affected by the extinction of this industry span across a wide variety of sectors, ranging from the extraction of natural gas and crude petroleum to marketing research and full-service restaurants.

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Fossil Fuel Electric Power Generation Economic Impacts, Wayne County Impact Type Employment Labor Income Value Added Output Direct Effect -61.0 ($6,866,112) ($24,298,925) ($59,129,326) Indirect Effect -160.5 ($4,321,834) ($6,402,717) ($14,967,956) Induced Effect -65.6 ($1,784,874) ($3,160,109) ($5,593,644) Total Effect -287.1 ($12,972,820) ($33,861,751) ($79,690,926)

Employment Impact of Fossil Fuel Electric Power Generation Industry, Wayne County Industry Sector Employment Labor Income Value Added Output Electric power generation - fossil fuels -61.0 ($6,866,112) ($24,298,925) ($59,129,326) Extraction of natural gas and crude petroleum -78.9 ($57,627) ($1,867,610) ($9,334,883) Marketing research and all other miscellaneous professional, scientific, and -19.2 ($590,508) ($554,433) ($993,236) technical services Maintenance and repair construction of -12.4 ($652,617) ($829,715) ($1,841,527) nonresidential structures Full-service restaurants -8.4 ($134,020) ($156,541) ($356,769) Monetary authorities and depository credit -6.1 ($385,657) ($642,156) ($1,322,568) intermediation Real estate -5.9 ($61,325) ($318,271) ($640,701) Legal services -4.2 ($135,498) ($253,441) ($477,582) Wholesale trade -3.8 ($179,746) ($392,015) ($680,638) Scenic and sightseeing transportation and -3.5 ($106,231) ($118,485) ($389,201) support activities Hospitals -3.1 ($208,912) ($232,264) ($462,572)

The extinction of the Fossil Fuel Electric Power Generation industry in Wayne County has resulted not only in job losses and an overall decline in economic output, but also in a decrease in revenue for governments on every level since 2001. State and local tax offices have been deprived of approximately $8.9 million in revenue across multiple streams, including approximately $8.6 million in indirect business taxes, $230,000 in individual income taxes (income, property, and other), $92,000 in corporate taxes, and $5,600 in social insurance revenues. Federally, losses from the extinction of this industry in Wayne County generate another $3.2 million in losses - $1.4 million in social insurance taxes, $489,000 in indirect business taxes, $872,000 in personal income tax, $375,000 million in corporate taxes, and approximately $131,000 in proprietor income.

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State and Local Tax Impact of Fossil Fuel Electric Power Generation Industry, Wayne County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - ($9,008) Social Insurance Tax - ($1,887) $0 - - - Employee Contribution Social Insurance Tax - ($3,776) - - - - Employer Contribution Sales Tax - - ($3,026,796) - - Property Tax - - ($5,182,104) - - Motor Vehicle Licensing - - ($42,116) - - Severance Tax - - - - - Other Taxes - - ($323,924) - - Miscellaneous Indirect - - ($20,217) - - Business Taxes Corporate Profits Tax - - - - ($82,793) Personal Tax: Income Tax - - - ($180,974) - Personal Tax: Non Taxes - - - ($24,460) - (Fines-Fees) Personal Tax: Motor Vehicle - - - ($9,191) - License Personal Tax: Property - - - ($11,451) - Taxes Personal Tax: Other Tax - - - ($3,729) - (Fish/Hunt) Total State and Local Tax ($5,663) $0 ($8,595,157) ($229,805) ($91,802)

Federal Tax Impact of Fossil Fuel Electric Power Generation Industry, Wayne County Employee Tax on Proprietor Description Compensatio Production and Households Corporations Income n Imports Social Insurance Tax- ($130,984 ($704,869) - - - Employee Contribution ) Social Insurance Tax- ($668,684) - - - - Employer Contribution Excise Taxes - - ($330,563) - - Custom Duty - - ($137,094) - - Miscellaneous Federal - - ($21,454) - - Fees Corporate Profits Tax - - - - ($375,134) Personal Tax: Income Tax - - - ($872,475) - ($130,984 Total Federal Tax ($1,373,553) ) ($489,111) ($872,475) ($375,134)

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Today, Wayne County is home to approximately 51,656 residents – a 1.1 percent drop in population since 2013 but an 8.2 percent increase since 2000. The largest industries in the county include education services, healthcare and social assistance, retail trade, and construction. The smallest industries include agriculture, mining, information, and wholesale trade. Nearly 60 percent of Wayne County workers have attained a high school degree or less, compared to 45 percent of statewide workers. Additionally, Wayne County’s housing vacancy rate of 40.3 percent dwarfs the statewide equivalent of 11 percent. Despite these challenges, however, interest in natural gas extraction has lifted the county’s economic fortunes to some extent. The county’s poverty rate has decreased from 12.2 to 11.1 percent since 2013, and the county’s unemployment rate has fallen from 7.9 percent in 2013 to 6.5 percent as of 2017.

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Wyoming County Created in 1842 from a part of Luzerne County, Wyoming County is adjacent to the coal mining powerhouses of Luzerne and Lackawanna Counties. Its western portion is home to multiple semi- anthracite coal deposits from the Western-Northern Anthracite fields. Despite the proximity to these deposits, however, coal mining in Wyoming County was merely sporadic – due in part to the lack of sufficient quality in the area’s coal supply. Anthracite has been extracted from the shale areas in the Allegheny High Plateaus in the southwestern corner of the county, and bituminous coal has been extracted from the Dutch Mountain mine.

To the disappointment of many prospectors, discoveries of coal deposits in Wyoming County have been inconsistent. As a result, the county is now home to two abandoned coal mines and there are no active underground or surface coal mining permits in the area. The Dutch Mountain mine, for instance, has been converted to state game lands and recreational hiking areas. Wyoming County does have a small industrial mineral mining sector, as evidenced by the opening of four new mineral mining operations since 2013; however, total production in this sector has decreased by over 179,000 tons and shed 23 jobs as well. Thus, what little remains of any mining activity in Wyoming County appears to be on the decline.

Like many counties neighboring more coal-centric economies, Wyoming County was once home to a small Fossil Fuel Electric Power Generation industry. It has been effectively extinct since 2001. At that point, Wyoming County employed 23 workers in the industry, which created nearly $2.6 million in labor income and generated nearly $22.3 million in economic output. Moreover, the broader ripple effect of this industry’s extinction on supply chain vendors in Wyoming County has resulted in the loss of another 35 jobs, $1.3 million in labor income, and $5.9 million in economic output. The larger economic impact emanating from the collapse of this industry totals approximately 18 jobs, $426,000 in labor income, and $1.6 million in economic output. Finally, the top 10 industries in Wyoming County impacted by the decline of the Fossil Fuel Electric Power Generation industry since 2001 span a wide variety of sectors, ranging from the extraction of natural gas and crude petroleum to sightseeing transportation and employment services.

Fossil Fuel Electric Power Generation Economic Impacts, Wyoming County Impact Type Employment Labor Income Value Added Output Direct Effect -23.0 ($2,588,862) ($9,161,890) ($22,294,664) Indirect Effect -35.3 ($1,274,502) ($4,144,006) ($5,945,031) Induced Effect -17.7 ($425,567) ($838,032) ($1,551,886) Total Effect -76.0 ($4,288,931) ($14,143,928) ($29,791,581)

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Employment Impact of Fossil Fuel Electric Power Generation Industry, Wyoming County Labor Industry Sector Employment Value Added Output Income Electric power generation - fossil fuels -23.0 ($2,588,862) ($9,161,890) ($22,294,664) Marketing research and all other miscellaneous professional, scientific, and -4.7 ($112,822) ($88,588) ($195,331) technical services Scenic and sightseeing transportation and -3.7 ($269,106) ($324,168) ($608,487) support activities for transportation Maintenance and repair construction of -2.8 ($154,783) ($199,256) ($429,389) nonresidential structures Full-service restaurants -2.5 ($45,970) ($52,503) ($111,538) Employment services -2.5 ($105,830) ($146,918) ($197,839) Extraction of natural gas liquids -2.0 ($110,004) ($1,650,726) ($1,855,099) Real estate -1.9 ($17,144) ($68,344) ($174,634) Pipeline transportation -1.9 ($324,045) ($395,957) ($827,787) Legal services -1.8 ($27,582) ($67,199) ($163,179) Monetary authorities and depository credit -1.4 ($62,748) ($109,913) ($270,433) information

The extinction of the Fossil Fuel Electric Power Generation industry in Wyoming County has resulted not only in job losses and an overall decline in economic output, but also in decreased revenue for governments on every level since 2001. State and local tax offices have been deprived of approximately $2.9 million in revenue across multiple streams, including approximately $2.7 million in indirect business taxes, $93,000 in individual income taxes (income, property, and other), $72,000 in corporate taxes, and $2,300 in social insurance revenues. Federally, losses from the extinction of this industry in Wayne County generate another $1.4 million in losses - $500,000 million in social insurance taxes, $265,000 in indirect business taxes, $304,000 million in personal income tax, $310,000 million in corporate taxes, and approximately $11,000 in proprietor income.

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State and Local Tax Impact of Fossil Fuel Electric Power Generation Industry, Wyoming County Employee Proprietor Tax on Production Description Households Corporations Compensation Income and Imports Dividends - - - - ($4,041) Social Insurance Tax - ($777) - - - - Employee Contribution Social Insurance Tax - ($1,554) - - - - Employer Contribution Sales Tax - - ($1,267,590) - - Property Tax - - ($1,293,616) - - Motor Vehicle Licensing - - ($19,453) - - Severance Tax - - - - - Other Taxes - - ($154,677) - - Miscellaneous Indirect - - ($2,163) - - Business Taxes Corporate Profits Tax - - - - ($68,417) Personal Tax: Income Tax - - - ($77,569) - Personal Tax: Non Taxes - - - ($8,916) - (Fines-Fees) Personal Tax: Motor Vehicle - - - ($3,199) - License Personal Tax: Property Taxes - - - ($2,144) - Personal Tax: Other Tax - - - ($1,298) - (Fish/Hunt) Total State and Local Tax ($2,331) $0 ($2,737,500) ($93,126) ($72,459)

Federal Tax Impact of Fossil Fuel Electric Power Generation Industry, Wyoming County Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Social Insurance Tax- ($254,464) ($10,562) - - - Employee Contribution Social Insurance Tax- ($241,401) - - - - Employer Contribution Excise Taxes - - ($179,404) - - Custom Duty - - ($74,408) - - Miscellaneous Federal Fees - - ($11,647) - - Corporate Profits Tax - - - - ($310,007) Personal Tax: Income Tax - - - ($304,073) - Total Federal Tax ($495,865) ($10,562) ($265,459) ($304,073) ($310,007)

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Today, Wyoming County is home to approximately 27,760 people – a 1.5-percent drop in population since 2013 and a 1.1-percent drop since 2000. The largest industries in the county include education services, healthcare and social assistance, retail trade, and manufacturing. The smallest industries include public administration, wholesale trade, and information. Nearly 56 percent of Wyoming County residents have attained a high school degree or less (compared to 45 percent statewide), and the county has a 19.8 percent housing vacancy rate (compared to 11 percent statewide). Interest from speculators in the natural gas drilling industry may have alleviated some of the county’s recent economic challenge, however, because the area saw a decrease in the poverty rate from 12.1 percent in 2013 to 10.4 percent in 2017, as well as a drop in unemployment from 7.9 percent to 6.5 percent during the same period.

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Fossil Fuel Industries in Transition As explored in previous sections, the long-term collapse of the coal mining industry in Northeastern Pennsylvania has resulted in diminished economic opportunities for regional workers that have yet to be recaptured in the decades since this pattern began. This economic struggle radiated throughout many industries, especially those which were supported by the continued production of coal – but none more than Fossil Fuel Electric Power Generation facilities. In most of the 13 counties comprising the geographic scope of this report, as previously established, this industry was effectively wiped off the map and took millions of dollars in lost labor income and economic output for these local communities with it.

For other counties, however, this industry still survives, either because it has been partially insulated from the effects of the coal economy’s contraction, or because fossil fuel electric power generation facilities have started to utilize cheaper and cleaner sources of energy to sustain production of electricity more affordably. This section presents two such examples of these divergent patterns: (1) Lackawanna County, which has enjoyed a small renaissance in electricity production due to a wholesale reliance on natural gas; and (2) Montour County, whose relative proximity to some of the last bastions of coal mining in Columbia, Luzerne, and Schuylkill counties has lessened (but by no means obviated) employment declines in this industry. As demonstrated by the chart below, Lackawanna County’s Fossil Fuel Electric Power Generation industry was revived in 2015 due to the creation of a natural gas-burning electric power plant in Jessup, and now employs 36 workers in the area. This industry also survives in Montour County, which is home to a decades-old coal-fired electric power plant in Washingtonville, and employs 59 workers as of 2018. However, recent interest in converting the Washingtonville plant’s coal- firing facilities into a natural-gas co-firing plant portend the inevitable decline in coal demand in Northeastern Pennsylvania.

FOSSIL FUEL ELECTRIC POWER GENERATION, TOTAL EMPLOYMENT, 2004-2018

317 Montour County Lackawanna County 179 177 122 99 114 104 69 88 81 74 55 57 59 65 59 32 29 36 0 0 0 0 0 0 0 0 0 0 21 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

As of 2018, the remaining Fossil Fuel Electric Power Generation industry in both Lackawanna and Montour counties is responsible for directly employing a total of 95 workers, as well as generating $17 million in labor income and $132.7 million in economic output annually. The electric power plants in both of these counties are also indirectly responsible for nearly 81 jobs, $7.3 million in labor income, and $13.6 million in economic output for supply chain vendors and other commercial partners. Moreover, the commercial activity of workers in this industry generate another 80 jobs, $3.3 million in labor income and $9.7 million in economic output for firms across the region. The jobs supported by this industry, either through the supply chain or the commercial behavior of its workers, are found in a wide Page | 73

range of industrial categories, including full-service restaurants, depository credit intermediation, commercial facility maintenance and repair, real estate, and legal services.

Fossil Fuel Electric Power Generation Economic Impact: Lackawanna and Montour Counties, 2018 Impact Type Employment Labor Income Value Added Output Direct Effect 95.0 $17,019,614 $57,698,588 $132,689,358 Indirect Effect 80.6 $7,345,225 $8,568,925 $13,606,237 Induced Effect 80.4 $3,333,965 $5,596,996 $9,726,111 Total Effect 256.0 $27,698,804 $71,864,509 $156,021,706

Employment Impact of Fossil Fuel Electric Power Generation Industry: Lackawanna and Montour Counties, 2018 Labor Industry Sector Employment Value Added Output Income Electric power generation - fossil fuel 95.0 $17,019,614 $57,698,588 $132,689,358 Full-service restaurants 11.4 $213,078 $243,033 $514,755 Employment services 9.1 $233,335 $326,030 $513,349 Monetary authorities and depository credit 7.5 $481,760 $801,408 $1,635,083 intermediation Maintenance and repair construction of 6.8 $386,993 $503,158 $1,055,904 nonresidential structures Scenic and sightseeing transportation and 6.6 $348,961 $426,653 $939,638 support activities for transportation Wholesale trade 5.0 $348,567 $694,394 $1,071,822 Marketing research and all other miscellaneous professional, scientific, and 4.5 $169,032 $151,052 $253,108 technical services Real estate 3.4 $58,576 $299,893 $483,777 Legal services 3.2 $214,973 $378,573 $550,495

In addition to the 256 jobs, $27.7 million in labor income, and $156 million in economic output generated by the Fossil Fuel Electric Power Generation industry in both Lackawanna and Montour counties, this industry also provides approximately $22.6 million in tax revenue for state, local, and federal governments. On the state and local government level, this industry generates approximately $14.3 million in tax revenue annually as of 2018, including $13.4 million in indirect business taxes and fees, $541,000 in personal income taxes, $410,000 in corporate taxes and dividends, and $13,400 in social insurance taxes. Moreover, the federal government gains an average of $8.3 million from this industry’s activity in these two counties, including $2.7 million in excise taxes, custom duties, and other fees, $2.5 million in social insurance taxes, $1.3 million in corporate taxes and dividends, $1.6 million in personal income taxes, and $180,000 in proprietor income.

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State and Local Tax Impact of Fossil Fuel Electric Power Generation Industry: Lackawanna and Montour Counties, 2018 Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - $130,567 Social Insurance Tax - $4,479 - - - - Employee Contribution Social Insurance Tax - $8,961 - - - - Employer Contribution Sales Tax - - $6,333,445 - - Property Tax - - $5,741,249 - - Motor Vehicle Licensing - - $131,722 - - Severance Tax - - - - - Other Taxes - - $1,176,419 - - Miscellaneous Indirect - - $283 - - Business Taxes Corporate Profits Tax - - - - $278,997 Personal Tax: Income Tax - - - $466,903 - Personal Tax: Non Taxes - - - $42,981 - (Fines-Fees) Personal Tax: Motor Vehicle - - - $16,655 - License Personal Tax: Property Taxes - - - $7,998 - Personal Tax: Other Tax - - - $6,768 - (Fish/Hunt) Total State and Local Tax $13,440 $0 $13,383,118 $541,305 $409,564

Federal Tax Impact of Fossil Fuel Electric Power Generation Industry: Lackawanna and Montour Counties: 2018 Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Social Insurance Tax- $1,307,718 $179,628 - - - Employee Contribution Social Insurance Tax- $1,240,586 - - - - Employer Contribution Excise Taxes - - $1,825,881 - - Custom Duty - - $757,252 - - Miscellaneous Federal Fees - - $118,503 - - Corporate Profits Tax - - - - $1,264,168 Personal Tax: Income Tax - - - $1,601,060 - Total Federal Tax $2,548,304 $179,628 $2,701,636 $1,601,060 $1,264,168

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Lackawanna County

Lackawanna County was created in 1878 from the northern portion of Luzerne County, and soon became the heart of the anthracite coal mining industry in Northeastern Pennsylvania. The entirety of Lackawanna County sits atop a large portion of the Northern Anthracite Field, the second-largest anthracite field in the United States. In Lackawanna County, the field is found in a continuous, thick line from the central-west border of the county to the northwest corner, where Lackawanna, Susquehanna, and Wayne counties meet.

Joining the ranks of other regional coal-mining hubs in Wilkes-Barre and Jim Thorpe, Scranton became the center of the nation’s top anthracite-producing county. As early as the late 1820s, speculators from throughout the state began to purchase land across Lackawanna County, in both the Scranton area and near the town of Carbondale, form mining operations like the Delaware & Hudson Canal Company, and begin extraction. Starting in the mid-1840s, the coal mining economy of Lackawanna County built an economic ecosystem in Northeastern Pennsylvania, as coal was transported from Carbondale’s mines to Honesdale in Wayne County through a gravity railroad, and from Honesdale to Roundout, New York by canal. From Roundout, the coal was transported down the Hudson River to New York City. With the success of the gravity railroad and canal system, additional gravity lines were extended from Carbondale down throughout the valley.

As further exploration of the Northern Anthracite Field expanded, Lackawanna County and its seat, Scranton, became wealthier. Growing coal demand throughout the early 1900s and the First World War established an era of immense prosperity for Lackawanna County through the 1920s. However, as demand began to wane through the early 1920s and the beginning of the Great Depression, so did the region’s fortunes. While the Second World War temporarily increased demand for coal (coupled with a decreased labor supply due to conscription), employment in coal mining began an irreversible decline from the 1950s onward, falling to 17,000 by 1961 and 2,000 by 1974.

By most calculations, the coal mining industry has completely vanished in Lackawanna County as of 2001. While most publicly available data suggests that Lackawanna County has no current employment in this industry as of 2018, the county does have two active surface mining permits, which may employ up to six employees in total. Today, Lackawanna County produces only 0.05 percent of Pennsylvania’s total anthracite, and actually employs more individuals in mineral mining (48 in total). The county is now home to 165 abandoned mines, which some communities have sought to exploit for coal mining attractions, such as the Anthracite Heritage Museum, railroad rides, and coal mine tours. Recent interest in economic revitalization programs for the region led to the county’s selection for the Abandoned Mine Lands Economic Revitalization Pilot Program, an initiative spearheaded by Pennsylvania’s Department of Environmental Protection’s Bureau for Abandoned Mines Lands.

Lackawanna County’s proximity to the natural gas boom from the Marcellus Shale exploration has opened up new economic opportunities in an industry that, in other counties, still relies on coal: Fossil Fuel Electric Power Generation. In 2015, UGI Utilities, Inc. announced a partnership with Invenergy to establish Lackawanna Energy Center LLC, an entirely natural gas-fired electric generation facility in the town of Jessup. This investment has resurrected Lackawanna County’s Fossil Fuel Electric Power Generation industry, which had been effectively wiped out since 2006, as seen in the graphic below.

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With the establishment of Invenergy, Lackawanna County is now home to the revitalization of an industry waning in other regions due to a decreased demand in coal.

FOSSIL FUEL ELECTRIC POWER GENERATION EMPLOYMENT LACKAWANNA COUNTY, 2004-2018

122 69 36 32 21 29 0 0 0 0 0 0 0 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Due to increased demand for natural gas-supplied electric power generation, this industry now employs 36 individuals in Lackawanna County, creating about $5.5 million in labor income and approximately $48 million in economic output directly from those employees. This industry supports an additional 55 workers through supply chain vendors, as well as another 55 jobs through consumption patterns and community investment – jobs that generate another $6.3 million in labor income and $14.8 million in economic output combined. Finally, the jobs supported by this industry in Lackawanna County are found in a wide range of industries, from commercial facility maintenance and repair and wholesale trade to real estate, legal services, and market research.

Fossil Fuel Electric Power Generation Economic Impact: Lackawanna County, 2018 Impact Type Employment Labor Income Value Added Output Direct Effect 36.0 $5,537,397 $19,587,421 $48,015,093 Indirect Effect 55.2 $3,959,631 $4,894,838 $8,105,204 Induced Effect 55.9 $2,324,427 $3,873,798 $6,729,805 Total Effect 147.1 $11,821,455 $28,356,057 $62,850,101

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Employment Impact of Fossil Fuel Electric Power Generation Industry: Lackawanna County, 2018 Labor Industry Sector Employment Value Added Output Income Electric power generation - fossil fuel 36.0 $5,544,503 $19,612,556 $48,076,707 Employment services 9.1 $233,335 $326,030 $513,349 Full-service restaurants 7.5 $141,928 $161,609 $340,631 Scenic and sightseeing transportation and 6.6 $348,961 $426,653 $939,638 support activities for transportation Marketing research and all other miscellaneous professional, scientific, and 4.5 $169,032 $151,052 $253,108 technical services Maintenance and repair construction of 4.5 $267,334 $362,378 $727,456 nonresidential structures Monetary authorities and depository credit 4.2 $276,639 $458,373 $923,325 intermediation Wholesale trade 3.5 $224,541 $455,647 $720,001 Real estate 3.4 $58,576 $299,893 $483,777 Legal services 3.2 $214,973 $378,573 $550,495

Beyond the 147 jobs, $11.8 in labor income, and $62.9 million in economic output sustained by the Fossil Fuel Electric Power Generation Industry in Lackawanna County, this industry also provides approximately $9.4 million in revenue for state, local, and federal governments. For state and local governments, this industry creates approximately $6.1 million in tax revenue annually as of 2018, including $5.7 million in indirect business taxes and fees, $288,000 in personal income taxes, $108,000 in corporate taxes and dividends, and $5,700 in social insurance taxes. Moreover, the federal government gains an average of $3.2 million in annual tax revenue from this industry’s activity in Lackawanna County, including $1.2 million in social insurance taxes, $865,000 in personal income taxes, $628,000 in excise taxes, custom duties, and other fees, $454,000 in corporate taxes and dividends, and $78,000 in proprietor income.

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State and Local Tax Impact of Fossil Fuel Electric Power Generation Industry: Lackawanna County, 2018 Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - $7,919 Social Insurance Tax - $1,911 - - - - Employee Contribution Social Insurance Tax - $3,823 - - - - Employer Contribution Sales Tax - - $2,860,496 - - Property Tax - - $2,359,084 - - Motor Vehicle Licensing - - $42,238 - - Severance Tax - - - - - Other Taxes - - $481,115 - - Miscellaneous Indirect - - $283 - - Business Taxes Corporate Profits Tax - - - - $100,087 Personal Tax: Income Tax - - - $245,610 - Personal Tax: Non Taxes - - - $24,023 - (Fines-Fees) Personal Tax: Motor Vehicle - - - $9,063 - License Personal Tax: Property Taxes - - - $5,128 - Personal Tax: Other Tax - - - $3,682 - (Fish/Hunt) Total State and Local Tax $5,733 $0 $5,743,215 $287,506 $108,006

Federal Tax Impact of Fossil Fuel Electric Power Generation Industry, Lackawanna County: 2018 Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Social Insurance Tax- $621,592 $77,969 - - - Employee Contribution Social Insurance Tax- $589,683 - - - - Employer Contribution Excise Taxes - - $424,623 - - Custom Duty - - $176,105 - - Miscellaneous Federal Fees - - $27,559 - - Corporate Profits Tax - - - - $453,507 Personal Tax: Income Tax - - - $865,284 - Total Federal Tax $1,211,275 $77,969 $628,287 $865,284 $453,507

Lackawanna County has a population of 211,960 residents – a 1.1 percent decline since 2013, and a 0.5 percent decrease since 2000. Once a center of the coal mining industry, Lackawanna County’s economy

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has diversified over the last few decades: the county’s largest industries include education services, healthcare and social assistance, manufacturing, and retail trade, while its smallest industries include agriculture and mining, information, and wholesale trade. Additionally, the county’s unemployment rate has fallen from 8 percent in 2013 to 5.4 percent in 2017, and approximately 47 percent of residents hold a high school diploma or less, roughly on average with Pennsylvania averages. However, public policy challenges remain: the percentage of Lackawanna County residents living in poverty has significantly increased from 13.2 percent in 2013 to 15.4 percent in 2017 – a 13.2 percent increase in the absolute number of Lackawanna residents falling beneath the poverty line. Moreover, Lackawanna County also has a housing vacancy rate of 13.2 percent, above the 11 percent statewide average. In sum, while interest in Lackawanna County as a home for natural gas electric power generation has lifted prospects for some workers, the county is far from recapturing the broad-based economic prosperity from the halcyon days of coal mining.

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Montour County

Created from a part of Columbia County in 1850, Montour County built an economy that was greatly enriched by the coal-based economy of its neighboring county. In support of Columbia County’s successes in coal mining, Montour County soon became a hub for rail transportation. In particular, Danville became a highway, canal, and railway link on the North Branch route from Sunbury in Northumberland County to Wilkes-Barre in Luzerne County. Although the practice of coal mining never expanded into Montour County, the region still benefits from the nearby production of coal for electric power generation. Since 1971, the Borough of Washingtonville has been home to a prominent coal- powered Talen Energy power plant, which burns approximately 4 million tons of coal annually, and can produce enough electricity to serve nearly 1 million homes.

Despite the success of Talen Energy’s coal-fired plant in Montour County, interest in transitioning to alternative sources of fuel is growing. The comparative affordability of natural gas has damaged the competitiveness of solely coal-burning plants like Talen’s Montour branch because they are more expensive to operate. Thus, due to the plant’s relative proximity to the Marcellus Shale natural gas deposits, Talen announced a $70 million capital investment to convert its Montour County coal-fired power plant into a natural gas co-firing plant, as well as extending a 15-mile natural gas pipeline onto the power plant site itself. Although these plans to add natural gas burning capability to Talen Energy have since been delayed for logistical reasons, the company still aims to convert the plant’s burning capabilities to burn natural gas, coal, or a combination of the two in the near future. Additionally, as demonstrated below, total employment in the Fossil Fuel Electric Power Generation industry in Montour County has decreased by nearly one-third since 2014, and by nearly 48 percent since 2009.

FOSSIL FUEL ELECTRIC POWER GENERATION EMPLOYMENT MONTOUR COUNTY, 2004-2018

317

179 177

114 99 104 88 81 74 55 57 59 65 59 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

As of 2018, the Fossil Fuel Electric Power Generation industry employs 59 workers in Montour County, and generates approximately $11.4 million in labor income and $84.7 million in economic output from those directly employed within this industry. This industry also supports 25 workers in Montour County through supply chain vendors, as well as an additional 24 jobs through consumption patterns and community investment – jobs that generate another $4.4 million in labor income and $8.5 million in economic output combined. Additionally, the jobs supported by the Fossil Fuel Electric Power Generation industry in Montour County span a wide variety of industries, from the maintenance and

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repair of commercial structures and the extraction of natural gas and crude petroleum to full-service restaurants, hospitals, and depository credit intermediation.

Fossil Fuel Electric Power Generation Economic Impact: Montour County, 2018 Impact Type Employment Labor Income Value Added Output Direct Effect 59.0 $11,482,217 $38,111,167 $84,674,265 Indirect Effect 25.4 $3,385,594 $3,674,087 $5,501,033 Induced Effect 24.5 $1,009,538 $1,723,198 $2,996,306 Total Effect 108.9 $15,877,350 $43,508,452 $93,171,604

Employment Impact of Fossil Fuel Electric Power Generation Industry: Montour County, 2018 Labor Value Industry Sector Employment Output Income Added Electric power generation - fossil fuel 59.0 $11,487,090 $38,127,340 $84,710,198 Full-service restaurants 3.9 $71,150 $81,424 $174,124 Monetary authorities and depository credit 3.3 $205,121 $343,035 $711,758 intermediation Other state government enterprises 2.4 $140,087 $112,973 $290,145 Maintenance and repair construction of 2.3 $119,659 $140,780 $328,448 nonresidential structures Limited-service restaurants 1.8 $35,985 $89,358 $156,900 Wholesale trade 1.5 $124,026 $238,747 $351,821 Retail - food and beverage stores 1.4 $40,294 $52,194 $86,553 Hospitals 1.2 $84,019 $93,953 $182,182 Extraction of natural gas and crude 1.2 $15,794 $42,482 $153,166 petroleum

In addition to the 109 jobs, $15.9 million in labor income, and $93.2 million in economic output generated by the Fossil Fuel Electric Power Generation industry in Montour County, this industry also provides approximately $13.3 million in revenue for state, local, and federal governments. For state and local governments, this industry generates approximately $8.2 million in revenue annually as of 2018, including $7.7 million in indirect business taxes and fees, $254,000 in personal income taxes, $302,000 in corporate taxes and dividends, and $7,700 in social insurance taxes. Moreover, the federal government gains an average of $5.1 million from this industry’s activity in Montour County, including $2.1 million in excise taxes, custom duties, and other fees, $1.3 million in social insurance taxes, $811,000 in corporate taxes and dividends, $736,000 in personal income taxes, and $102,000 in proprietor income.

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State and Local Tax Impact of Fossil Fuel Electric Power Generation Industry: Montour County, 2018 Tax on Employee Proprietor Description Production and Households Corporations Compensation Income Imports Dividends - - - - $122,648 Social Insurance Tax - $2,568 - - - - Employee Contribution Social Insurance Tax - $5,138 - - - - Employer Contribution Sales Tax - - $3,472,949 - - Property Tax - - $3,382,165 - - Motor Vehicle Licensing - - $89,484 - - Severance Tax - - - - - Other Taxes - - $695,304 - - Miscellaneous Indirect - - - - - Business Taxes Corporate Profits Tax - - - - $178,910 Personal Tax: Income Tax - - - $221,293 - Personal Tax: Non Taxes - - - $18,958 - (Fines-Fees) Personal Tax: Motor Vehicle - - - $7,592 - License Personal Tax: Property Taxes - - - $2,870 - Personal Tax: Other Tax - - - $3,086 - (Fish/Hunt) Total State and Local Tax $7,705 $0 $7,639,902 $253,799 $301,558

Federal Tax Impact of Fossil Fuel Electric Power Generation Industry, Montour County: 2018 Employee Proprietor Tax on Production Description Households Corporations Compensation Income and Imports Social Insurance Tax- $686,126 $101,659 - - - Employee Contribution Social Insurance Tax- $650,903 - - - - Employer Contribution Excise Taxes - - $1,401,258 - - Custom Duty - - $581,147 - - Miscellaneous Federal Fees - - $90,944 - - Corporate Profits Tax - - - - $810,661 Personal Tax: Income Tax - - - $735,776 - Total Federal Tax $1,337,029 $101,659 $2,073,349 $735,776 $810,661

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As of 2018, Montour County has a population of approximately 18,302 residents – a 0.4 percent decrease since 2013, but a 0.4 percent increase since 2000. Despite the county’s reliance on coal production, the region’s economy has certainly diversified over time: the county’s largest industries include education services, healthcare and social assistance, retail trade, and manufacturing, while its smallest industries include agriculture and mining, information, and wholesale trade. Moreover, the county’s unemployment rate has fallen from 7.6 percent in 2013 to 4.4 percent as of 2018. However, Montour County workers still face many challenges. For instance, approximately 51 percent of Montour County residents have attained a high school degree or less, compared to 46 percent of Pennsylvania residents. Moreover, Montour County’s poverty rate has slightly increased, from 10 percent in 2013 to 10.5 percent by 2017. Thus, transitions toward cleaner and more affordable energy sources, coupled with declines in employment figures in the Fossil Fuel Electric Power Generation, signal that the changing demand for fossil fuel-supported industries may start to impact Montour County, as well.

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Community Impacts of Blight Beyond the modeled economic impacts, it is likely that the decline of coal mining and related industries has had a negative effect on community stability. Though these phenomena are complex and causal links are difficult to establish, the data that follows indicates correlation between past industry activity and factors associated with neighborhood-scale blight and communitywide disinvestment.

It is hypothesized that residential blight, as measured by long-term vacancy of residences, is an indicator of community instability. The map below shows the percentage of all residential addresses that were classified as vacant for 36 months or longer in data tabulated by the U.S. Postal Service. For the 13- county study region, census tracts shown on the map are colored by quintile, with darker colors indicating higher rates of long-term residential vacancy.

The map below shows the same data with an added overlay of Pennsylvania’s anthracite coal fields. Tracts with higher long-term residential vacancy appear to correspond closely with the location of the coal fields.

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Statistical analysis further demonstrates this correlation. Of the 333 census tracts in the 13-county region, 176 have boundaries bordering the anthracite fields, while 157 do not. In aggregate, the 36- month vacancy rate for the anthracite-adjacent tracts was 1.9 percent, compared with 0.33 percent for non-adjacent tracts.

Summary of Tract Analysis: 36 Month Residential Vacancy Anthracite - Non- By Tract, N=333 Adjacent Anthracite Tracts Tracts Total Residential Addresses 292,681 325,471 Total Vacant 36 months or more 5,676 1,073 Aggregate 36 month vacancy rate 1.9% 0.33% Average # of 36 month vacancies 32 7

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The average 36-month vacancy rate for the 176 anthracite-adjacent tracts was 2.1 percent, compared with 0.32 percent for the remaining 157 tracts. Using Welch’s t, this difference was determined to be extremely statistically significant with p < 0.0001.

The 13-county anthracite coal region has an aging housing stock as a result of coal mining; an average of 28.8 percent of housing was built before 1939. Schuylkill County has the highest percentage of aging housing, at 48.1 percent. Pike County has the smallest, at 7.3 percent. The four counties which contain most of the anthracite seams (Lackawanna, Luzerne, Schuylkill, and Carbon) are also the counties with the higher percentages of homes built before 1939. Pennsylvania’s lead in the coal boom lasted until 1927, so a connection between these two phenomena is plausible.

Percent of all homes built before 1939 County Percent Schuylkill 48.1 Lackawanna 39.5 Luzerne 35.8 Bradford 33.4 Columbia 33.0 Carbon 32.9 Susquehanna 29.9 Sullivan 28.6 Wyoming 28.5 Montour 27.9 Wayne 19.8 Monroe 10.0 Pike 7.3

Lackawanna, Luzerne, and Schuylkill Counties have all established land banks within the last four years.39 These organizations attempt to find new owners and uses for the vacant properties.

39 PA Blight Library. 2017. Interactive Pennsylvania Land Bank Map. Available at: . Page | 87

Railroad Industry Impact According to the Association of American Railroads May 2018 report, the volume of coal transported by rail has decreased in recent years. This follows the decreased production and use of coal in U.S. electric power generation. In 2008, railroads transported 7.71 million carloads of coal. By 2017, this number had decreased by 42 percent, thereby negatively affecting overall railroad revenue and employment. The overall drop in rail freight cargo coincides with the decrease in coal production after 2008.

The table below demonstrates the job change in the rail industry by county from 2013 to 2018. There were 94 jobs lost during this time and it is projected that the industry will lose another 45 jobs in the next five years. Given the average rail industry wage compared to the county wage identified below, the economic impact is significant.

Rail Industry Job Change Average Rail 5 - Year Jobs Average 2013 - 2018 Industry Wage Forecast County Wage Bradford -5 $74,771 -2 $45,169 Carbon -5 $74,771 -1 $47,355 Columbia 1 $74,771 0 $39,362 Lackawanna -18 $74,771 -6 $42,004 Luzerne 5 $74,771 -5 $42,702 Monroe -23 $74,771 -11 $42,028 Montour 2 $74,771 0 $66,612 Pike -7 $74,771 -6 $34,504 Schuylkill 6 $74,771 -8 $41,472 Sullivan 0 0 Susquehanna -19 $74,771 -4 $40,528 Wayne -12 $74,771 -1 $38,479 Wyoming -5 $74,771 -1 $47,355

Job Loss -94 -45 Job Gain 14 0 Net Job Loss -80 -45

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The 94 jobs lost in the region affect 123 jobs in other sectors and result in over $41.3 million in annual economic loss to the counties in the study region. In addition, nearly $4.2 million in federal taxes and another $409,000 to state and local government is lost annually.

Impact Summary Labor Total Value Impact Type Employment Income Added Output Direct Effect -94.0 -15,915,062 -14,470,385 -25,601,701 Indirect Effect -31.9 -1,471,136 -2,509,169 -4,754,557 Induced Effect -91.0 -3,598,211 -6,146,566 -10,972,203 Total Effect -216.9 -20,984,409 -23,126,120 -41,328,462

The ARC study, An Economic Analysis of the Appalachian Coal Industry Ecosystem by West Virginia University and the University of Tennessee devoted an entire module to the implications of decreased coal production on transportation – specifically rail. The study indicates that just between 2015 and 2016, the reduction in coal rail transportation was responsible for the loss of 2,000 jobs and $150 million in income in Appalachia.

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Health Impacts and Loss of Human Capital Mining has always been recognized as a dangerous profession. From 1870 to the time the Federal Mine Safety and Health Act was passed in 1977, 31,085 people died on the job in the mining industry. This is compared to 35 deaths from 1978 to 2017.40 The Act was amended in 2006, after which only two people died. More specifically, mining disasters killed 2,966 Pennsylvanian coal miners from 1870 to 1930, compared to the 960 miners who were lost from 1948 to 2008. Despite broad improvements in industry safety, there are remaining health risks associated with working in the mines. General health concerns associated with working in the mines has changed as the industry began using more machines and employing fewer laborers.

More than 76,000 miners throughout the U.S. have died since 1968 as a result of black lung disease, coal workers’ pneumoconiosis (CWP). Today, the disease sickens roughly one in 14 underground miners41 with more than 25 years’ experience and who submit to voluntary checkups. This rate is nearly double that from the disease’s lowest point between 1995 and 1999. 42 Though there may not be much underground mining within NEPA currently, this disease has affected miners since the birth of the industry. From the loss of lives to black lung to the dangerous mining work itself, being a dangerous profession, the loss of working population contributed to the lack of economic development.

The U.S. Coal Workers Health Surveillance Program produces data on black lung disease, which has long been limited to underground coal miners. There is relatively minimal data on the risk for pneumoconiosis exists for surface miners, although the illness certainly affects these individuals. Drill crew workers are at a significantly increased risk for black lung relative to other surface coal miners. “Medical examinations of surface coal miners in Pennsylvania conducted in 1984-1985 documented radiographic evidence of black lung in 4.5 percent of men with no history of dusty work other than surface coal mining. 43

From 2010 to 2011 there was documented evidence of black lung as well as the more severe, progressive massive fibrosis, in American miners (two and 1.2 percent respectively). Though Pennsylvania’s Air Quality index scores meet the quality standard in the U.S., it has levels above the limit recommended by the World Health Organization. Pennsylvania’s levels correlate with the abundance of coal-fired power plants in the state. 44

The same study also reviewed years of potential life lost (YPLL), a measure of premature mortality based on the Centers for Disease Control and Prevention’s National Center for Health Statistics multiple cause of death data field. It showed that the annual trend in YPLL is similar to the trends in CWP prevalence. It

40 PA DEP Anthracite Coal Mining Activities 1870 to 2017- Historical Summary. 41 Data only goes back to 2011- only Columbia and Schuylkill 42 Wei-Haas, Maya. 2017. “Why Black Lung Disease is Deadlier Than Ever Before.” 15 May. Smithsonian Magazine. Available at: . 43 Laney and Weissman. 2014. Respiratory Diseases Cause by Coal Mine Dust. Journal of Occupational and Environmental Medicine. 56 Suppl 10(0 10):S18-22. Available at: . 44 American Lung Association. 2018. American Lung Association State of the Air 2018. Available at: < https://www.lung.org/assets/documents/healthy-air/state-of-the-air/sota-2018-full.pdf>. Page | 90

indicates a decline from the 1970s through 2000 and a subsequent increase since that period. In 2010, mortality from CWP led to an average 8.2 YPLL among descendants of CWP. 45

Graph from Laney and Weissman 2015. "Years of potential life lost (YPLL) before the age of 65 years and mean YPLL per decedent for decedents 25 years or older with coal workers’ pneumoconiosis as the underlying cause of death—United States, 1968–2010. Based on annual underlying cause of death from multiple cause-of-death files, National Center for Health Statistics, Centers for Disease Control and Prevention."

The coal industry has also affected potential workers and populations of the counties in which mining was present and which hosted supply chain industries. As previously stated, death on the job contributed to lack of economic development through loss of human capital. The area has been affected by YPLL but also by potential and economic lives lost due to the about 3,000 workers who died from 1870 to 1930. These workers could have helped grow the local populations with families, and would have contributed to and invested in local economies by spending capital. The growth of the population and capital in local economies would have grown or fortified patch towns.

45 Laney and Weissman. 2014. Respiratory Diseases Cause by Coal Mine Dust. Journal of Occupational and Environmental Medicine. 56 Suppl 10(0 10):S18-22. Available at: . Page | 91

Environmental Impacts In addition to its negative impacts on health, the coal industry and its subsequent decline has resulted in negative impacts on the environment. When mining practices have ceased, the past and ongoing effects on the environment become more visible. Though much has improved with the current mining industry due to PA DEP laws and EPA regulations, the area still suffers from past approaches and work. The region continues to pay to remediate environmental hazards caused by coal mining; the amount of money, time, and hours put into these efforts could have been put forth to revitalize the region. The following issues result from mining practices and closed mining operations.

Subsidence

Millions of structures throughout Pennsylvania are located over abandoned coal mines. These mines are at risk of collapsing due to lack of upkeep, rot, and age. There is a history of mine subsidence in the region, so much so that the Commonwealth offers a Mine Subsidence Insurance (MSI) program through the Department of Environmental Protection. In 1992, there were 40,000 holders in all of PA. These claims comprise 5 percent of all claims in anthracite region; the numbers are highly variable.46 The insurance program has paid over $30 million in homeowner claims since 1961.47

The program has an interactive website where residents can learn whether their properties lie atop previously mined land. Insurance is recommended if property is on top of underground mines. If property is located where coal exists and was possible mined, insurance is available if the owner would like it.

In the figure below, underground mines and coal deposits can be seen throughout the northeast region. There was coal mining in parts of Susquehanna, Wayne, Columbia, Lackawanna, Luzerne, Schuylkill, and Carbon Counties, so MSI is recommended for those residents. There are coal deposits that may have been mined in parts of Bradford, Sullivan, Wyoming, and Wayne Counties, so MSI is available to residents. Of the 13 counties, only three do not have any coal deposits or risk of mine subsidence (Montour, Monroe, and Pike Counties).

46 Ingram, David. 1994. 47 PA DEP. Mine Subsidence Insurance: Frequently Asked Questions. Department of Environmental Protection. Available at: < https://www.dep.pa.gov/Citizens/MSI/Pages/Frequently-Asked-Questions.aspx>. Page | 92

Screenshot of MSI Risk Map covering the 13 county region. The grey shaded areas are where underground mining occurred and the pink areas are where coal exists and was possibly mined. Further enlarged images show smaller areas with underground mining. The located point is The Institute’s address.

There have been many instances of mine subsidence in the region over the years. Perhaps the most infamous account of subsidence is the Knox Mine Disaster in 1959, during which the underground mine ceiling close to the bed of the Susquehanna River collapsed under the weight of the ice-heavy water and trapped miners inside, causing twelve fatalities.

Another major incidence of subsidence occurred in 1993 at the Washington West Apartments in Scranton. 48 At the time, 150 elderly persons lived there. The damage included broken gas and water lines, cracked pavement and sidewalks, and architectural damage to the seven-story apartment building.

48 Wilson et al. 1994. Mine Subsidence at Washington West Apartments. April 24-29. In International Land Reclamation And Mine Drainage Conference And Third International Conference On The Abatement Of Acidic Drainage, Volume 4: Abandoned Mine Lands and Topical Issues. Available at: < https://www.osmre.gov/resources/library/proceedings/94IntlVol4.pdf>. Page | 93

From 2002 to 2012 there were 150 reports of subsidence in Pittston, a community in Luzerne County.49 Recent news reports on mine subsidence cover Scranton (2012, Lackawanna County)50, Peckville (2012, Lackawanna County)51, Archbald (2013, Lackawanna County)52, Cass Twp. (2014, Schuylkill County)53, Wilkes-Barre (2016, Luzerne County)54, Mahanoy Twp. (2016, Schuylkill County)55, within the Minersville Little League complex (2018, Schuylkill County)56, and outside a Pottsville elementary school (2018, Schuylkill County)57.

Fires

There were 17 mine and culm bank fires in the Anthracite region, the large majority of which of which were in Schuylkill, Luzerne, and Lackawanna Counties.58 The most prolific and notorious fire is the one still burning under Centralia, necessitating the relocation of virtually all of the borough’s population. From its start to 1983, $7 million was spent on fire control projects and emergency relocation. From 1983 to 2012 $41.6 million was spent relocating the residents.59 Residents were evacuated due to health and safety concerns presented by toxic combustion-related gases as well as accelerated surface subsidence due to the burning of remaining coal pillars. The environmental hazards presented by the fire include air pollution and greenhouse gas emissions, vegetation die off (possible brush fires), and unnaturally heated ground.

49 Wadell, Bill. 2013. “State to Begin Mine Subsidence Work.” 30 October. WNEP. Available at: . 50 Singleton, David. 2012. “DEP: South Scranton Hole is Apparent Mine Subsidence.” 21 September. The Times Tribune. Available at: . 51 Vojtko, Mike. 2012. “Subsidence is Filled in Lackawanna County.” 21 March. WNEP. Available at: . 52 Lange, Stacy. 2013. “DEP Investigating Archbald Mine Subsidence.” 10 January. WNEP. Available at: . 53 Ratchford, Dan. 2014. “Miners Recovering After Mine Collapse.” 4 March. WNEP. Available at: . 54 Petrillo, Matt. 2016. “Hole Filled, Concern Remains Over Possible Subsidence.” 28 June. ANEP. Available at: . 55 Gallo, Alexandra. 2017. More Holes Open on Property of Family Who Nearly Lost Home. 30 January. WNEP. Available at: . 56 Senior, Chase. 2018. Massive Hole Opens in Minersville Little League Complex.” 13 September WNEP. Available at: . 57 Albert, Jessica. 2018. “Mine Subsidence Forms in Pottsville.” 10 April. WNEP. Available at: . 58 PA DEP. Pennsylvania Mine Fire Locations. Available at: < http://files.dep.state.pa.us/Mining/Abandoned%20Mine%20Reclamation/AbandonedMinePortalFiles/Centralia/P AFireLocationMap.pdf>. 59PA DEP Bureau of Abandoned Mine Reclamation. The Centralia Mine Fire: Frequently Asked Questions. Available at: . Page | 94

Pennsylvania Mine Fire Locations.

Coal fires cause high amounts of environmental damage, as well as fiscal damage incurred when controlling them and their effects. In 1988 it was reported that 33 surface fires on abandoned mine lands cost the state $11,963,000.60

Mine fires like Carbondale (2016)61 have been burning for over 20 years and have only recently been extinguished. The fire in Centralia, however, has been burning since 1962 and has enough fuel to burn for more than 100 years (according to the fact sheet from the Bureau of Abandoned Mine Reclamation).62 The cost of putting out the Centralia fire was deemed too high for the state’s AML program. A contractor was given $9.3 million to put out the Jeansville fire in Carbon County,63 and as of late fall 2018 the DEP could not confirm that the fire had been extinguished and was conducting further

60 Kim, Ann and Andrew Kociban. 1994. Cryogenic Slurry Method to Extinguish Waste Bank Fires. In the conference proceedings of International Land Reclamation and Mine Drainage Conference and Third International Conference. 61 Lange, Stacy. 2016. Mine Fire in Carbondale to Finally be Extinguished. 7 September. WNEP. Available at: . 62 PA DEP Bureau of Abandoned Mine Reclamation. The Centralia Mine Fire: Frequently Asked Questions. 63 Michlowski, Bill. 2015. “Hazleton Shaft Corp Hired to Put out Jeansville Mine Fire.” 24 November. WNEP. Available at: . Page | 95

tests to verify. Extinguishing the coal refuse fire in Lackawanna County’s Fell Township cost $2.2 million (2014).64, 65

Water Pollution

Abandoned mine drainage is water that is polluted from contact with coal mining activity. One type of abandoned mine drainage is acid mine drainage. Acid mine drainage (AMD) is highly acidic water rich in heavy metals. The acid water forms from surface water and subsurface water with rocks that contain sulfur-bearing minerals forming sulfuric acid. Heavy metals can be extracted from rocks that contact the acid water.66

AMD is listed as a type of nonpoint source pollution by the Environmental Protection Agency. The AMD river pollution can corrode bridges67 and harm other aspects of the river, like wildlife. 68 It affects the Susquehanna River, which runs through Bradford, Susquehanna, Wyoming, Luzerne, Lackawanna, Columbia, and Montour Counties. The Susquehanna River Basin, the surrounding watershed area of the river, covers all or parts of Bradford, Susquehanna, Wayne, Sullivan, Wyoming, Lackawanna, Luzerne, Columbia, Montour, and Schuylkill Counties. The figure below shows a map of the Susquehanna River basin in light green. Specifically, Shamokin Creek has been impacted by local AMD from former underground mines. Also, the Knox Mine Disaster continues to negatively affect the region long after the disaster in 1959. To try to plug the hole in which the river was pouring into the mine, workers dumped large railroad cars, coal refuse, and other debris into the whirlpool. Water still infiltrates the mine, as well as all the material that clogged the hole, and resurfaces into the Susquehanna producing acid mine drainage.69

64 Ratchford, Dan. 2014. “Massive Coal Refuse Fire Finally Out.” 21 May. WNEP. Available at: . 65 PA DEP Office of Active and Abandoned Mine Operations. 2014. Simpson Northeast coal Refuse Bank Fire Abandoned Mine Reclamation Project Contract No. OSM 35(4294)101.1. Available at: . 66 EPA. 2018. Polluted Runoff: Nonpoint Source Pollution: Abandoned Mine Drainage. 14 February. Available at: . 67 Center for Water, Earth Science and Technology. “Acid Mine/ Rock Drainage. University of Colorado Boulder. Available at: . 68 Marsh, Ben. 1987. Continuity and Decline in the Anthracite Towns of Pennsylvania. In Annals of the Association of American Geographers, 77:3. 69 Fuller Center for Productive Landscapes. Knox Mine disaster (coal). University of Oregon, Department of Landscape Architecture. Available at :< https://fuller.uoregon.edu/knox/>. Page | 96

Pennsylvania's Major River Basins. From PA DEP.

Abandoned Mine Lands, Abandoned Coal Mine Land Reclamation

The Bureau of Abandoned Mine Land Reclamation (AMLR) administers the AMLR program. The program acts in accordance with requirements established by the Office of Surface Mining under the Surface Mining Control and Reclamation Act of 1977 (amended in 2006). Abandoned Mine Land problems include mine fires, subsidence, dangerous highwalls, open shafts and portals, mining impacted water supplies, and other hazards that arose from past coal mining practices. Some of these problems have already been mentioned.

As a result of improper closing and restoration of former mine lands, the Office of Surface Mining Reclamation and Enforcement developed an Abandoned Mine Land (AML) pilot program for FY 2016 - FY 2017. The program provided $30 million to the three Appalachian state AML programs that have the highest amount of underfunded coal-related problems classified as priority 1 and priority 2 AMLs, including Pennsylvania’s anthracite region. Congress has since authorized AML Pilot Program funding for FY 2017 and FY 2018. Each year provides $25 million from the U.S. Treasury funds.

Six of the 14 projects in Pennsylvania were located in the 13-county region. Schuylkill County received $50,000 from the pilot program and an additional $119,000 to address physical hazards for a preservation project. Luzerne County received $2 million from the program and an additional $800,000 to address physical hazards for reclamation of a 70-acre abandoned surface mine. The project is estimated to create a yearly economic benefit of $230,000. Schuylkill and Luzerne Counties received $2.5 million and an additional $9.5 million to address physical hazards to treat mine water discharge.

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Lackawanna County received $2 million and an additional $8 million to address physical hazards to extinguish a mine fire. Schuylkill County received $3.6 million to remove AML refuse piles and re-grade land. Carbon and Schuylkill Counties received $5 million and an additional $7 million to address physical hazards and reclaim 298 acres of previous mine land.

Map of AML Economic Revitalization Pilot Projects in Pennsylvania. From the PA DEP Bureau of Abandoned Mine Reclamation.

Coal waste, also known as coal refuse or culm (in specific reference to anthracite), is a hazard and an extension of AMLs – if not part of them. They are permanent fixtures on the consequently barren landscape. They are potentially hazardous and sources of AMD. ARIPPA estimates that the anthracite region has one billion cubic yards of coal refuse.70 There are some reclamation and reprocessing methods in use. The first plant to utilize the coal refuse-to-power solution is in Schuylkill County. The four million ton culm bank in Swoyersville (Luzerne County) will be removed and used to power a plant in Northampton County.71 With culm removal, however, there is worry about air pollution due to dust (Pennsylvania has a law that addresses air pollution associated with coal refuse disposal).72

70 Patel, Sonal. 2016. The Coal Refuse Dilemma: Burning Coal for Environmental Benefits. 1 July. Power Magazine. Available at: < https://www.powermag.com/coal-refuse-dilemma-burning-coal-environmental-benefits/>. 71 Golias, Paul. 2018. 4 Million Tons of Potential. 4 November. The Citizen’s Voice. Available at: < https://www.citizensvoice.com/arts-living/4-million-tons-ofpotential-1.2405734>. 72 Patel 2016. Page | 98