‘Clean coal’ chasing clean jobs out of Michigan

DETROIT -- So-called “clean coal” was a major topic of discussion for a panel sponsored by the Michigan Democratic Party Environmental and Energy Caucus at the party’s winter convention at Cobo Hall Saturday.

The panel featured Rep. Ellen Cogen Lipton, D- Huntington Woods, Rep. Jon Switalski, D-Warren, a member of the House Energy and Technology Committee, and Cyndi Roper, State Director of Michigan Clean Water Action. News that the Michigan Department of Natural Resources and Environment (DNRE) approved the construction of a new 78 megawatt coal-fired power plant planned by the Holland Board of Public Works broke late Friday that environmentalist had been fighting.

Former Gov. Jennifer Granholm put out an executive order last year requiring the Michigan Public Service Commission (PSC) to consider the need for new power or it could not be generated by a renewable source as a new requirement for granting a permit for a new coal plant, and that led them to reject the permit. However, a Circuit Court judge ruled that the PSC could not take need into account when considering a permit and the Snyder Administration issued the permit.

Clean coal has been a buzz word the last couple of years, but the fact is there is no such thing. Burning coal is a leading cause of smog, acid rain, global warming and air toxics.

“This idea of clean coal; my kids are like, what’s clean about coal,” Roper said. “It maybe cleaner, but it’s not a clean industry.”

Despite all the Democrats in the room, Roper was critical of House Democrats and their jobs plan that included the building of the two coal-fired power plants.

She said because not an ounce of coal is mined in Michigan, millions of dollars fly out of Michigan at the expense of clean and renewable energy jobs, which is the fastest growing segment of Michigan jobs. In fact, a new power plant would lock Michiganders into sending money out of state to import more than $9 billion worth of coal for the next 50 years.

A coalition of Michigan environmental groups criticized the plan last month, calling the decision short-sighted when Michigan is positioned to attract tens of thousands of new clean energy jobs – on top of the 109,000 we already have.

In their defense, the House Democrats in the room said they were allowed to voice their disagreement with that portion of the plan that included the Hire Michigan First plan and building the Detroit River International Crossing (DRIC) bridge.

“We have lost our biggest cheerleader for clean energy,” Roper said. “Fortunately, the Senate Dems have not given cover to Snyder’s plan to build coal plants.”

The restively new topic of “Fracking” was also discussed.

Fracking, or hydraulic fracturing, is a process that can be used to retrieve natural gas. It involves injecting chemicals, sand, and millions of gallons of water into shale rock. The shale is then shattered, releasing trapped gas. The problem is that when the gas comes to the surface, some water returns as well, and this water is often tainted with poisonous, carcinogenic chemicals.

Recently located natural gas reserves in the northern Lower Peninsula have led to a flurry of fracking. However, gas production companies are not required to disclose the chemicals they pump into the ground unless there is an accident, but an accident in Benzie County should change that.

“For the first time ever, we will be learning what chemicals are being injected into the ground,” Roper said. “We expect we will have to FOIA it, and Halliburton is the biggest obstacle to disclosure.”

Bipartisan brownfield package brings out financial trouble of county townships

LANSING – A package of bills making it easier to redevelop contaminated Brownfield sites illustrated what bipartisanship and moderate Republicans can accomplish, but it also brought out how much financial trouble Livingston County is in.

The House Committee on New Economy and Quality of Life took testimony Thursday on House Bill 6416 and Senate Bills 437 and 1345-1349. A workgroup has been working on the bipartisan package for at least a year, and all of the various advocacy groups are behind it.

“This has been more difficult than birthing my three sons and twice as long,” said Sen. Patty Birkholz, R- Saugatuck, the Chair of the Senate Natural Resource and Environmental Affairs Committee.

Many cities and even some townships have contaminated sites that would be ideal for new development if they were not contaminated. The City of Detroit alone has some 1,000 Brownfield sites.

The only opposition came from one environmental group, Clean Water Action, and they objected to how the clean-up will be funded. The plan is to use under-utilized funds from the Great Lakes Water Quality bonds. The fund was approved by voters in 2001 to pay for reducing sewer runoff into lakes and streams and improving water quality.

Clean Water Action said the money was only supposed to be used for protecting the waters, and they suggested closing tax loopholes to finance the cleanup up of brownfields. The Michigan Townships Association (MTA) testified that they support the package, but they also have some concerns with financing, including the State Revolving Fund (SRF).

The MTA’s lobbyist, Tom Frazier, testified that many townships are facing financial hardship because developers have simply walked away from developments after the townships established Special Assessment Districts (SAD) to pay off the bonds for installing sewer and water infrastructure, leaving townships holding the bag. Frazier even mentioned Rep. Cindy Denby, R-Handy Township, a member of the committee and the former Handy Township supervisor.

It turns out that the MTA wanted a special provision to the package, a bailout, that would allow the state to pay off the bonds, and the townships would only have to pay the interest on the bonds for the first 10 years.

Livingston County is one of the hardest hit, and county and now perhaps state taxpayers may be on the hook for $101 million in principal and interest backed by the good faith and credit of the county. Half of Livingston County’s 16 townships are in this boat, but Handy may be the worse off. It was estimated that it would cost about half of the township’s annual tax revenue to meet the bond obligations.

The local newspaper has been almost silent on this after a national business publication broke the story that the county’s townships are in such dire straights. The local Democratic Party issued a press release demanding the all-GOP Board of Commissioners hold a townhall meeting, but that has not yet happened.

The county has even refused to say what townships are in danger of defaulting, and no one but the local Democrats have demanded answers. The Bloomberg News that broke the story mentioned Howell and Hartland Townships. It says Hartland came up $951,000 short in collecting special assessments last year, according to an April 2009 report by Standard & Poor’s.