Fighting against attempts to kill Montana coal

Montana’s vast energy resources have been a blessing to our state for generations. Developing our natural resource wealth has provided thousands of jobs, been a cornerstone of tax base and provided funding for schools, infrastructure and services in every community in Montana.

But Montana’s energy resources will be valuable into the future only if they are able to reach the customers who want that energy. The ability of Montana energy to reach market is being challenged like never before and in ways that are completely incompatible with the American free-market ethic.

The first is straight out of the playbook used by environmental groups for any given economic-development project. There have been a number of proposals to build additional export capacity on the Pacific Coast in order to meet the growing demand globally for coal. One of the most promising of those proposals is the Gateway Pacific proposal near Cherry Point, Washington.

Washington state elected officials have put up one roadblock after another to that export facility, raising a litany of environmental concerns before any substantive environmental assessment has even been conducted.

Blocking the Gateway Pacific facility in Washington will have some negative consequences for their state’s economy, what with killing the jobs that would have come with that port. But the even larger economic consequences will be felt by Montana if Washington is successful.

That’s because in order to develop more of Montana’s incredibly-valuable coal resources requires that we be able to reach the markets where demand is growing the fastest. And demand for coal is projected to increase by 65 percent in Asia over the next 25 years. Without new export capacity, Montana will suffer the loss of thousands of jobs and hundreds of millions of dollars of lost tax revenue each year.

At a March 16 reception, Ambassador to China Max Baucus spoke. He said that if we are concerned about China’s emissions that we need to export our low sulphur coal. There’s demand for coal in Asia, but especially for the low-sulphur PRB coal we produce in Montana.

Of course, the vast majority of the negative impacts of a Colstrip closure would be felt in Montana. It would impact thousands of jobs, decimate the tax base of Eastern Montana communities, and drive up electricity costs for many Montanans.

That’s why I’ve introduced legislation to fight back against the hostile maneuvers Washington has taken. Under my Senate Bill 402, those Washington utilities would be on the hook for an annual fee of five times the taxable value of Colstrip for 20 years in order to offset the economic and tax-base impacts of a premature closure.

This bill is neither unconstitutional nor does it impede commerce. It is not punitive to the owner. It simply says that if the Washington Legislature is going to pass legislation to close the plants, then they will pass the cost of those impacts on to their rate payers.

If we’re serious about protecting Montana jobs, and moreover if we’re serious about providing the next generation of Montanans real employment opportunities, we need to fight back against attempts by states like Washington to undermine our industries.

My bill isn’t the only one designed to protect Montana’s interests. House Bill 244 establishes a $1 million litigation fund to “protect Montana products in interstate commerce.” That fund will be invaluable if litigation is necessary to prohibit Washington from interfering with Montana’s economy.

There is no greater opportunity for our state than developing our natural resource wealth. We have the largest coal reserves in the country, and to increase our annual production even a modest amount would have a highly positive impact felt in every community in the state. But in order to see that opportunity through, we’re going to have to fight for it.

In closing, I would like to pass this on: Washington State Sen. Kevin Ranker, D-Orcas Island, commented in a hearing on closing the plants thta “they have a moral imperative” to stop coal. Right out of the Sierra Club play book.

Sen. Duane Ankney, R-Colstrip, represents Senate District 20, which includes Rosebud County.