For Immediate Release, March 2, 2016
Utah Lawmakers Launch Last-minute Scheme to Fund California Coal Terminal
Risky Gambit Would Divert State Tax Revenues to Worsen Climate Crisis,
Risk Community Health, Sustainability
SALT LAKE CITY— Republican lawmakers in Utah are attempting an eleventh-hour maneuver that would use $53 million in state sales tax money to pay for a California coal-export terminal.
According to the Salt Lake Tribune, Senate Majority Whip Stuart Adams (R-Layton) has proposed using $53 million in sales-tax revenue targeted for highway improvements to fund a proposed coal terminal in Oakland. The scheme would ship millions of tons of coal from four Utah counties to be burned abroad, further deepening the climate crisis. Under legislative rules, Wednesday is the last day bills can be taken up in committee to be considered this session, which has eight scheduled days remaining.
“This is clearly a cynical maneuver to sneak legislation into the waning days of the session,” said Wendy Park of the Center for Biological Diversity. “It makes no sense to use highway-improvement money from Utah to build a coal terminal in California. On top of that, Utah would be doubling down on coal, one of the dirtiest fossil fuels on the planet and one of the primary reasons our climate’s in serious trouble.”
“With China’s coal consumption falling, and coal exports down more than 20%, this bill is a risky bet,” said Ted Zukoski, an attorney at Earthjustice. “Apparently, one of the few places it’s legal to gamble in Utah is at the state legislature, where it’s OK to raid taxpayers’ wallets to wager on an industry in historic decline.”
Utah’s Permanent Community Impact Fund, designed to offset the effects of mining on rural communities, last year agreed to loan $53 million to four Utah coal-producing counties, which planned to invest the money in the coal terminal. The state agency asked state Attorney General Sean Reyes to review the deal’s legality. The results of the review have not been made public.
“The lack of transparency in the attorney general’s office on this review makes one wonder whether there is a legal reason that the Community Impact Board review has not been made available and could explain this last-minute attempt to shift the burden of this scheme to taxpayers,” Park said.
“It’s clear this bill is being pushed because there’s concern that the CIB loan is illegal,” said Zukoski. “The Attorney General should release his analysis now – before the bill is considered – so the public can know whether SB 246 is also vulnerable to challenge.”
In a letter to Reyes in November, environmental groups, including the Center, Sierra Club, Earthjustice and Grand Canyon Trust, argued that the $53 million loan violated federal and state laws.
The proposed coal terminal that is to be built on a former Army base in Oakland has been vigorously opposed by Mayor Libby Schaaf and many city officials, faith leaders, residents and environmental groups in the Bay Area who do not want to see trainloads of dusty coal pass through their neighborhoods. Several bills have been introduced in the California legislature to block funding for the $1.2 billion terminal project over concerns about effects of transporting coal locally and the burning of coal globally.
China announced last week that it is closing more than 1,000 coal mines due to a “price-sapping supply glut” and the government’s new determination to clean up dangerous air pollution across the country.
The Obama administration has also paused all new federal coal leasing until a comprehensive review of the federal coal-leasing program is completed. Some of the coal that would supply the Oakland terminal could come from the publicly owned coal from the Greens Hollow mine, but the president’s coal moratorium offers no guarantee that this coal will be mined, making the legislature’s gambit to bet state sales tax revenue on the coal-export terminal a very questionable move.