No Account Yet?
A Huge and Influential Political Machine is Promoting Coal and Receiving Massive Subsidies

Outside of the few States which have deregulated electric production, large utilities are a government-regulated monopoly.  As documented below, they spend tens of millions of dollars annually influencing government energy policy and public opinion.  Rate payers, however, have little to no influence over who provides their electricity, how it is generated or how much it costs.  Based on the massive tax breaks, research grants, loan guarantees, the non-enforcement of environmental cleanup, additional subsidies, and the number of politicians supporting hundreds of millions in government support for “clean coal”, it appears their lobbying efforts have been successful.  This is merely a continuation of what has become commonplace.  Each time the government takes steps to restrict pollution, tax dollars flow to help polluters meet those restrictions.  Where it is too costly to abate or abandon the pollution-generating activity, like with Mountainop Removal Mining and Slurry Impoundments, the government finds ways to make the pollution legal, or looks the other way.  Truly clean, renewable methods can’t compete fairly in a market where coal and coal-fired electricity receives seemingly unlimited support. 

  • The coal industry has given a combined $38 million to federal candidates since stepping up their climate change campaign three years ago.  The industry group Americans for Balanced Energy Choices has paid $5 million to CNN to co-sponsor at least six presidential debates and air other network advertisements.  The group expects to spend some $40 million this year.  Traverse City Record Eagle
  • As proponents for a coal moratorium gain ground, the coal mining industry is fighting back. It increased the budget of the National Mining Association, the industry's main lobbying group, by 20% this year, to $19.7 million.  Last September, the industry also boosted the budget of Americans for Balanced Energy Choices more than fourfold ($35 million). The roster of backers includes 28 companies and trade associations such as Peabody Energy, Arch Coal, Duke Energy, Southern Co. and the National Rural Electric Cooperative Association.  The group (ABEC) has also deployed teams on the campaign trail; about 50 people, many of them paid canvassed outside the Democratic debates in Nevada and elsewhere with questions for voters to ask the candidates. Washington Post.  See also Coal's Dirty Little Secrets, for details of these groups activities (partisan site, but well documented report).
  • Sen. Mitch McConnell (Ky), who represents the state with the most coal mines, and Rep. Hal Rogers, who represents the Eastern Kentucky coalfields, were among the top 20 recipients of industry contributions in the past two campaign cycles, according to the Center for Responsive Politics. The Republican Party took some $2 million from the mining industry in the 2006 cycle alone. Sen. McConnell objects to any suggestion of impropriety. Louisville Courier Journal
  • Peabody Coal spends a higher percentage of its profits on campaign contributions than any other large Corporation in America. See graph.
  • Political expenditures for a recently formed group, "Kansans for Affordable Energy" (KAE), show that they received $145,400 in total contributions. Of that amount, $120,000 came from the world's largest coal company, Peabody Energy and another $25,000 came from Sunflower Electric Power Corporation. In other words, all but $400 of the money provided to this group of Kansans "concerned" about "affordable energy" came from Big Coal.  DeSmogBlog
  • A white paper noting $3.5 Billion in federal subsidies for coal, and that federal funding for coal R&D is at $427 million – while solar power received just $159 million. Here.
  • Federal money directed to Coal, nuclear, renewables in 2006.  Chart.
  • The Department of Energy's Office of Fossil Energy FY 2009 coal budget request of $648 million focuses on technology allowing the United States to maintain its technological lead in coal use in a way that will not raise climate concerns. This is the largest budget request for coal research development and demonstration in over 25 years and leverages a nearly $1 billion investment in what the industry calls “Clean Coal Technology.” Department of Energy 2009 Budget for fossil fuels.
  • The group Taxpayers for Common Sense tracks government subsidies.  Here is their page on Energy subsidies, and here is a paper reviewing the history of coal subsidies.
 
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