It is reported that coal companies are objecting to Mr Obama administration proposal that could raise their state taxes to cover the cost of regulating surface mining.
The federal Office of Surface Mining Reclamation and Enforcement is floating the idea to help cut its spending by USD 16.7 million. The agency proposed USD 146.1 million budgets for fiscal 2011 would cut the funds given to coal states to regulate surface mines.
Mr Joe Pizarchik agency director said instead, the agency is encouraging states to raise more money from industry with higher fees. The proposal reflects Mr Obama commitment to cut subsidies for fossil fuel industries
He said that "I know it's going to be difficult for the states to deal with that."
Mr Hal Quinn National Mining Association President said in a statement "The more than 375,000 people who work in America's mines are the backbone of our economy and are essential to our recovery. Their efforts should not be stopped by new taxes that will cost jobs and hurt our economy."
Coal producers are already struggling with weak demand from their largest market, electric utilities. Slumping industrial production has cut demand for electricity. As of October, US Department of Energy figures show generation overall was down 3.8% from a year earlier. The figures also show a 7.6% drop in generation at coal-fired power plants.
According to the Energy Department the result has been steady string of mine closures and other cutbacks across coal country. Through January, coal production was down 8.3% from the prior year.
(Sourced from http://www.steelguru.com/news/index/2010/02/08/MTMyMDE1/US_coal_industry_balks_at_proposal_for_higher_taxes.html)
Monday, February 8, 2010
US coal industry balks at proposal for higher taxes
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