[Congressional Record (Bound Edition), Volume 158 (2012), Part 9]
[Extensions of Remarks]
[Page 12280]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   THE TRUE COST OF COAL ACT OF 2012

                                  _____
                                 

                           HON. JIM McDERMOTT

                             of washington

                    in the house of representatives

                        Wednesday, July 25, 2012

  Mr. McDERMOTT. Mr. Speaker, I rise today to introduce the True Cost 
of Coal Act of 2012 that protects  the American taxpayer from bearing 
the costs of transporting coal for private companies to sell. If you 
were to listen to the coal companies, you would hear them decry the 
decline in domestic coal consumption. And while it is true that our 
domestic appetite for coal is waning, much of the rest of the world is 
still hungry for it.
  U.S. coal producers and suppliers are considering the construction of 
up to 9 coal export terminals in Washington and Oregon. These terminals 
will have a combined annual export capacity of 170 million tons of 
coal. To put this in perspective, the U.S. exported just 26 million 
tons of coal in 2011. This sharp increase in coal exports will be 
transported primarily through Oregon and my home State of Washington. 
Without question, this staggering increase will have serious 
implications on the Northwest's environment, safety, commerce, and 
public health.
  But what does it take to ship 170 million tons of coal through the 
Pacific Northwest annually? We're talking about a 1.5 mile long train 
packed with coal travelling thousands of times a year next to pristine 
waterfronts and through cities along the Puget Sound--each train 
spewing up to 500 pounds of toxic coal dust into the environment while 
increasing traffic on already congested rail tracks. These trains will 
run straight through the heart of my district, the city of Seattle, 
wreaking havoc on people's health, the environment, commerce and 
shipping, and traffic. All of these costs will be endured for the sake 
of transporting coal that we get no benefit from.
  And who will pay for this added cost? Without legislation like this, 
the taxpayers will pay the costs of mitigating the negative impacts of 
coal. As traffic increases, and public health risks are exacerbated, 
coal companies will continue to reap the profits of cheap coal, mined 
from public lands, and remain largely free from responsibility for any 
of the negative impacts. This means that States and local governments 
will need to raise taxes to pay for the additional crossings, the 
environmental cleanup, and increased health costs. It is time we opened 
our eyes to the true cost of coal.
  This legislation would impose a 10 dollar per ton excise tax on all 
extracted coal. This money will go to mitigating the negative impacts 
of coal transportation, and ensure the true cost of coal is paid for by 
the responsible parties, and not the taxpayers. The money is allocated 
to the affected States, who are in the best position to determine how 
best to use their funds.
  Make no mistake, these coal exports are not about jobs, they are 
about profits. The U.S. Energy Information Agency (EIA) estimates that 
it costs about $20 per ton to ship coal mined from the Powder River 
Basin to the Pacific Northwest. The EIA also has data that shows the 
average price per ton of coal exports is $148 per ton. I cannot 
emphasize enough that none of the profits will go to helping the 
affected communities.
  It's time we shine a light on the true cost of coal and protect the 
American taxpayer from the negative impacts of transporting coal 
through our States. I have dedicated my career to keeping Washington 
and the Northwest a place where the environment, public health and 
efficient transportation do not get trumped by narrow interests. In 
1980, I led the successful ``Don't Waste Washington'' initiative, to 
keep Washington from becoming the country's nuclear waste dumping 
ground, and 30 years later I remain just as committed to keeping it 
that way.

                          ____________________