We are a group of central Illinois residents who have been fighting the Deer Run Coal Mine in Hillsboro, IL since 2004. We are opposed to coal mining practices such as longwall mining that destroy our fertile farmland, as well as coal ash and coal slurry disposal methods that threaten the health of our communities, lands and waters.
Once again the question needs to be asked, ”Is the Illinois Government making the right
decision?” Last year Illinois was the only state in the nation to have increased its coal
production. The Illinois Government has promoted Illinois coal and has worked toward
establishing coal as the 21st century energy source. Considering the dire outcomes from
climate change and the ongoing accumulation of toxins from use of coal, the Illinois
Government should reconsider the wisdom of establishing coal mining that will involve
as much as two-thirds of land resources in Illinois.
The influence of the coal industry in Illinois is not demonstrated by the amount of
electricity produced by coal-fired utilities, but rather the control over the state regulatory
agencies and legislative bodies. In Illinois, the term, “King Coal” is truly descriptive
of the coal industry’s pervasive influence on legislative statutes, appropriations, mining
permits, and environmental protections. The government in Illinois has determined
that coal is the energy solution for the state, and the citizens through their taxes are
subsidizing the very industry that pollutes their backyard.
Is the state’s rationale for coal based on the hope of improving Illinois economy through
coal development? It is difficult to understand how Illinois is financially benefiting
from coal. Sales tax is paid only if the coal is sold in state. Most of the coal goes out of
state or is exported. Unlike other coal states, there is no severance tax for extracted coal.
Illinois exempts mining machinery from sales tax and new mines are often in enterprise
zones for additional tax breaks. Does the State of Illinois and its citizens really profit
from coal?
In addition to the millions of dollars in subsidies for the coal industry administered by
DCEO, the taxpayer also covers the administrative costs of coal mining permits since
the fees paid by coal applicants are insufficient. Insignificant revisions (no public
participation) and significant revisions are approved at no extra charge to the coal
operator. Deer Run Mine in Hillsboro, Illinois has 16 revisions (last count) and one
significant revision after Permit #399 was approved in 2009 for the same administrative
fee. This process encourages mine operators to submit inadequate and misleading
permit applications since Illinois Department of Natural Resources/Office of Mines and
Minerals is very obliging with no cost revisions.
At one time, the public trusted that Illinois regulatory agencies enforced mining laws,
the Clean Water Act, and the Clean Air Act. These laws should protect citizens and the
environment while mining operations are conducted. The reality is that our communities
are subjected to harmful air, contaminated water resources, subsided land, damaged
roads, and permanent coal slurry structure impoundments. There is no monitoring or
protection from the most harmful components from coal mining in the community.
Illinois citizens are entitled to a government that minimizes community contamination
from coal and sustains water and farmland for future generations. Instead, the Illinois
coal industry is entitled to preferential treatment that increases contamination in
communities and damages water and farmland resources.
Annual funding to the Coal Technology Development Assistance Fund starts with $10
million dollars and to this is added by the Department of Revenue 1/64 of the revenue
realized during the preceding month from the taxes imposed by the Electricity Excise Tax
Law, the Public Utilities Revenue Act, the Messages Tax Act, and the Gas Revenue Tax
Act. The Illinois Department of Commerce and Economic Opportunity (DCEO) with
revenue from taxpayers promotes, subsidizes, and markets the private coal industry in
Illinois. Renewable energy sources are not the focus in the energy plan of Illinois.
Grants administered by DCEO’s Office of Coal Development to establish coal
resources as a fuel for the 21st century. Deputy Director of the Office of Coal
Development is Bill Holback, 217-782-6370.
1. Illinois Coal Competitiveness Program. Contact John McCarthy 217-785-1671
In FY 2012, DCEO awarded $9.1 million in state funds for 13 coal production
and utilization projects. Since its inception in 1996, the program has
produced more than $2.1 billion in private infrastructure investments in
Illinois. Approximately $15 million from the Coal Technology Development
Assistance Fund is appropriated annually for the Coal Competitiveness Program.
2. Illinois Coal Demonstration Program. Contact Dan Wheeler 217-558-2645.
Since its inception in 1981, IL has provided nearly $191.8 million from the
Coal and Energy Development Bond Fund for 40 projects. Grants are typically
between $1 million and $30 million. DCEO is authorized to issue $185 million
in IL General Obligation Bond funds to finance selected projects. A project-
specific appropriation must be made and projects are subject to final approval by
the governor.
3. Illinois Coal Research Program. Contact Dan Wheeler 217-558-2645. To date,
the Coal Research Program has provided grants totaling more than $71.5 million
in state, federal, and private industry funds to more than 15 universities and
other research institutions engaged in coal research activities focusing on, carbon
management advanced coal mining technologies, power generation and plant
efficiencies, coal gasification, flue gas cleaning, and coal chemistry. In FY
2012, DCEO awarded $1.1 million in state funds to conduct 11 research projects.
Approximately $3 million from the Coal Technology Development Assistance
Fund is made available to the IL Clean Coal Institute (ICCI) for research projects
annually.
4. Illinois Coal Development Program. Provides a 50/50 match with private industry
dollars. To date, nearly $14.7 million has been awarded to 76
projects.
5. Illinois Coal Revival Program. Contact Dan Wheeler 217-558-2645. This
program provides financial assistance in the form of grants to assist with the
development of new, coal-fired electric generation capacity or coal gasification
facilities in IL. The grant is based on State Retail Occupation Taxes that will be
paid on Illinois coal purchases for new facilities. Qualifying facilities may be eligible
for grants roughly equal to the present value of future sales taxes paid on Illinois-
mined coal over a 25 year period, up to a maximum amount of $100 million.
Source of Funds: The Illinois Resource Development and Energy Security Act
(Public Act 92-0012) authorizes DCEO to expend $500 million Coal and Energy
Development Bond Funds to promote the development of new, coal-fired electric
generation capacity in Illinois
6. Illinois Coal Education Program. Contact Linda Dunbar 217-558-2648.
DCEO’s program “strives to preserve and enhance the marketability of Illinois coal;
heighten awareness and understanding of the importance of the coal industry
to the socioeconomic structure of IL; and promote the mining and utilization
of coal in IL. Program activities include the development and distribution of
comprehensive coal education resource materials for use in Illinois classrooms.”
DCEO also sponsors an art and essay contest and
a 4 day workshop for teachers at Rend Lake. The “coal curriculum” distributed by DCEO is a pro-coal program that does not reveal the environmental and health consequences produced by coal mining and coal use.
DCEO’s Coal Education Program has attracted criticism from environmentalists and
educators who object to the unbalanced view of coal as the necessary energy source for
national security. The “coal curriculum” distributed by DCEO is a pro-coal program that
does not reveal the environmental and health consequences produced by coal mining and
coal use.
The program lacks facts on the effect of coal in communities and on climate change.
Coal slurry impoundments, coal combustion waste, damage to health, contaminated and
loss of water resources, etc. are not addressed. Subsidence was only mentioned once
with respect to abandoned mines, but nothing on longwall mining effects on farmland,
water resources or roads. Air pollution is “not a problem” since the Clean Air Act has
regulated air emissions. There is no recognition of polluting coal-fired plants that are
exempt from the emission standards.
This coal material is nothing more than the coal industry and coal-fired utilities attempt
to sell coal as a 21st century solution to US energy needs. It is tragic that the state of
Illinois distributes coal misinformation and coal propaganda to our youth in Illinois on
the taxpayer’s dime.
Although the Illinois Legislature in 1977 mandated that the Department of Commerce
and Economic Opportunity educate and promote solar energy to the citizens of Illinois,
that mandate was superseded by the influence of the coal industry. Solar and wind
energy programs have not been developed or considered to be an important consideration
of Illinois energy policy. The lack of funding and tax applications to renewable energy
indicate loud and clear the direction Illinois is headed. Fossil fuel dominates now and
will do so in the future.
There is a Solar and Wind Energy Rebate Program handled through the Illinois
Department of Commerce and Economic Opportunity that is focused on smaller-
scale solar and wind energy systems in Illinois. Applicants who are eligible include
customers of an electric or gas utility that pay the Renewable Energy Resources and Coal
Technology Development Assistance Charge. The rebate program was so successful that
the budget for this program at DCEO is depleted and the FY 2013 Solar and Wind Rebate
Program is closed.
On DCEO’s Renewable Energy web site, it was stated that there may be funding for
this program in September 2013. Wayne Hartel is the contact at DCEO, and his phone
number is 217-785-3420.
