Coal Industry Unhappy With Obama Mining Plan

By: Clean Skies News, Published: 02/08/10 11:58am

President Obama's plan to cut federal payments for mining regulation isn't sitting well with coal companies.

National Mining Association President Hal Quinn calls the budget proposal a new tax that will cost jobs and hurt the economy.

The federal spending plan released last week would cut $16.7 million for support payments to states from the federal Office of Surface Mining Reclamation and Enforcement, and ask states to raise the money with fees on the mining industry.

Agency chief Joe Pizarchik says the plan reflects the Obama Administration's priority of scaling back on fossil fuel subsidies.

But Quinn called the plan a job killer.

"The more than 375,000 people who work in America's mines are the backbone of our economy and are essential to our recovery," he said in a statement. "Their efforts should not be stopped by new taxes."

The move comes as the Department of Energy reports declines in both coal production and the amount of electricity generated from coal. DOE reports coal production was down 8.3 percent through January from the previous year, and as of October, generation at coal-fired power plants fell 7.6 percent from a year earlier.

Overall, DOE says about 45% of U.S. power came from coal in 2009.