A Step in the Right Direction: Commerce Lexington Changes Policy to Pro-Coal

For the first time, Commerce Lexington--the business organization that promotes business issues in the greater Lexington, Kentucky area--acknowledged the positive impact that coal has had not only for the Bluegrass Region, but the entire Commonwealth of Kentucky.

In part to a response to calls from WTUK Radio and on-air personality Randy Walters, in Harlan, Commerce Lexington changed its 2010 policy statement to a strongly-worded statement acknowledging the importance of coal and calling pending energy legislation the "most immediate threat to Kentucky's business climate" while further stating the group’s efforts to "protect the viability of Kentucky's coal industry".

What brought about this positive revelation was an October trip to East Kentucky organized by Commerce Lexington of nearly 70 business leaders from the Bluegrass Region.

Given the fact that millions of dollars from East Kentucky patrons are spent in the Lexington area each and every year, it is refreshing to see the business community speak up for itself and let the people in East Kentucky know that the Lexington Herald-Leader Editorial Board does not set policy for the Lexington business community. The change in policy to a more pro-coal position is just the first step. Now, action must be taken that demonstrates a long-term commitment to keep the business from East Kentucky coming to Lexington and the Bluegrass Region.

A great next step would be for Commerce Lexington to get behind a long overdue improvement and that is to upgrade and improve the Mountain Parkway to a main transportation artery to central Kentucky.

The proverbial saying that people vote with their pocketbooks aptly applies in this case. With competition come options. And, for the people of East Kentucky, improved transportation networks throughout the East Kentucky region give people options. Major business centers in Ashland, Kentucky; Charleston and Huntington, West Virginia; Johnson City, Bristol (Virginia), and Kingsport, Tennessee; and, Knoxville, Tennessee are options for starters that provide a diverse dining, shopping, and entertainment experience. In terms of available healthcare and other business opportunities, these regional business centers provide as much or more than the Bluegrass Region. Geographically, with the improved transportation network, the cities are closer and easier to travel to than Lexington.

Lexington must continue to earn the dollar of the people of East Kentucky through action in support of coal and the cheap electricity it provides industry, including Toyota, in central Kentucky. Without this long-term commitment, Lexington will suffer from the people of East Kentucky voting to do business where their region is appreciated.

A great next step would be for Commerce Lexington to get behind a long overdue improvement and that is to upgrade and improve the Mountain Parkway to a main transportation artery to central Kentucky. The expansion of the Parkway to a four-lane with multiple access points to Hazard, Paintsville, Pikeville, and Prestonsburg--all major centers of population and business in East Kentucky. This expansion would truly connect the Commonwealth and make us whole as a state. Commerce Lexington can be a voice of support for this effort and make the strong case that it will strengthen their business and industry; that it is vital to the long-term well-being of the Bluegrass Region.

And, let us not have the silly notion advanced that we need to put toll-roads on the Parkway. We have paid enough in coal severance tax and sales tax that more than makes up for the nearly 50 years of a lack completed East-West transportation artery to the Bluegrass Region. Some politicians, in an effort to grab headlines, promote this idea of toll-roads, but that's an insult to the people of East Kentucky. Sadly, it comes from some of our own politicians who think of themselves more than long-term solutions.

Now is the time to seize the day and have a solid partnership between the business community in East Kentucky and Central Kentucky. Let's take the next best step: complete the Mountain Parkway. Show your true support for coal and for East Kentucky is more than words.

East Kentucky awaits your answer.

Impact of the Waxman-Markey Climate Change Legislation on Kentucky

Kudos to The Heritage Foundation for very informative analysis about the direct impact of Waxman-Markey on Kentucky. As the national media continue to focus on healthcare reform, we should continue to focus our concerns on how this energy bill will impact each and every individual now and in the future.

Please take time to read this important analysis of the real impact on the Kentucky economy. You have read the full report by clicking here.

"Workers and families in Kentucky may be wondering how cap-and-trade legislation would affect their income, their jobs, and the cost of energy. Implementing Waxman-Markey would put a chokehold on Kentucky's economic potential, reducing gross state product by $5.94 billion in 2035."

Pike County Energy Company Funded for NGV Research

(PIKEVILLE,KY) Pike County-based CNG Energy, LLC, an alternative energy company, was one of the companies hosted by Governor Steve Beshear on Monday at a luncheon and press conference announcing their selection by the Kentucky Science and Technology Corporation to receive a Kentucky New Energy Venture Fund grant for their natural gas-to-vehicle project.

The $30,000.00 grant will fund a technology and economic feasibility study to aid the company's planned commercialization of its natural gas vehicle business and utilization of natural gas resources throughout Kentucky as an alternative transportation fuel.

In partnership with the University of Kentucky Center for Applied Energy Research, CNG Energy, LLC will conduct a technical review which will evaluate proven technologies and processes; in addition, CNG Energy will work with leading business experts to determine the proper commercialization path for natural gas-to-vehicle conversion and transportation fueling systems, including how to harness underutilized natural gas currently not in production.
Local attorney Jamie Hamilton, a senior partner in CNG Energy, LLC, said he was excited about the prospects for the new energy venture.

"In my opinion, this grant will provide the framework to enable us to implement a solid plan for natural gas vehicles. We need alternatives to petroleum-based transportation fuels and natural gas is the most readily available domestic energy source that can be utilized for transportation fuel."

Natural gas vehicles promoters, such as T. Boone Pickens, say natural gas provides a more reliable, cleaner, cheaper, and cost efficient fuel to traditional transportation fuels.
Roger Ford, a senior partner in CNG Energy, LLC, points to the need for energy independence as a need to look at domestic energy sources for transportation fuels.

"When you look at where we need to focus the effort to reduce dependence on foreign oil, it is in the area of transportation fuels. Our dependence on foreign oil is increasing. When you look at what are the most viable resources, clearly natural gas is one source that is abundant, and environmentally sound. Natural gas has some transmission infrastructure in place to utilize it for transportation fuel supply," Ford said.

CNG Energy, LLC points to the success of its proposal that won the funding. The company met recently with Dr. Rodney Andrews and the staff at U.K. CAER to develop the specific scope of work for the study and is moving forward with the research on the project.

"We plan on building a solid set of deliverables--a plan that shows the best technology-- a plan that will be successful. Natural gas-to-vehicles is not experimental technology; it is being supported by both the public sector and by private industry worldwide. Thanks to support form Governor Beshear, Energy Secretary Len Peters, along with the Kentucky Science Technology Corporation, the Morehead State University Innovation Center, as well as Senators Mitch McConnell and Jim Bunning and Congressman Hal Rogers, Kentucky will be an energy leader. Through strategic partnerships and bi-partisan support, CNG Energy, LLC hopes to play a part in the effort," Ford said.

SPECIAL REPORT: 10 Questions on Energy for State Representative Robin Webb

In an effort to highlight the issues related to energy independence and security, the Kentucky Energy Forum is highlighting the candidates for District 18 State Senator in the special election to be held on Tuesday, August 25.

You may visit State Representative Robin Webb's campaign website by clicking here.

Personal statement by State Representative Robin Webb: As a former coal miner and having an energy educational background as having an A.A.S. in Mining Technology (Surface Mine Production), and B.S. in Energy and Reclamation (emphasis in Underground Mine Safety) from Morehead State University, and having many law school hours from Chase College of Law in Coal, Oil, Gas, Environmental and Public Utilities Law, I have much experience in the energy field. I have been an environmental prosecutor with the Natural Resource Cabinet, and In House General Counsel for the fourth largest coal producer in the nation with operations in eight states.

I presently serve on the Energy and the Natural Resources standing committees of the House, as well as the First Vice-Chair of the Appropriations and Revenue Committee. I serve on the Council of State Governments Energy Committee and Chair the Energy Committee for the National Federation of Women’s Legislators. I have served on every working group on energy legislation during my tenure in the House.

QUESTION ONE

KENTUCKY ENERGY FORUM: Do you believe that tax incentives should be awarded to energy companies to encourage investment in Kentucky? Do you believe these incentives should be extended to promote increased coal mining and natural gas development? Do you believe these incentives should be expanded to existing companies?

WEBB: I support and have voted for incentives for energy exploration and production. I have assisted in the drafting of and participated in the work group for all the major energy legislation and incentive packages during my tenure in the legislature. I have been involved with the promotion of fossil fuel and in the expansion of our energy portfolio.

QUESTION TWO

KEF: Do you support tax incentives for ‘thin-seam’ coal mining to encourage extraction of hard-to-mine coal?

WEBB: I support and have voted for thin seam mining initiatives for maximization of existing resources.

QUESTION THREE

KEF: Do you support the general principal of cap-and-trade to lower air emissions and/or reduce the carbon footprint? Please explain you position in detail on this issue.

WEBB: I am very concerned that cap and trade legislation will have an adverse impact on the existing energy supply and the output of electricity that would have devastating effects for business and consumers. I am for lowering the carbon footprint worldwide, yet feel the best way to do so is clean coal technology and carbon sequestration technology which I have supported and funded in Kentucky for years.

QUESTION FOUR

KEF: How would you propose to encourage development of alternative transportation fuels in Kentucky? What would you view as the top three alternative transportation fuels?

WEBB: Clean coal technology and biomass are alternative options.

QUESTION FIVE

KEF: In your opinion, does the growing of industrial hemp present itself as a viable option for biomass feedstock? Please explain why or why not? What other sources of biomass feedstock do you consider as a viable feedstock?

WEBB: Hemp was originally utilized in the development of the diesel engine and it is a viable option but for cannabis classifications and restrictions in existing law. The Kentucky General Assembly previously authorized a study at the University of Kentucky for evaluation of development as a feedstock. Federal law would be a hindrance of the development of hemp. The University of Kentucky is presently evaluating the value of a variety of feedstock, including switch grass.

QUESTION SIX

KEF: What role does energy efficiency play in a comprehensive energy plan for Kentucky?

WEBB: Energy efficiency is a component of a comprehensive energy policy that is needed for Kentucky. I feel the state and its agencies should lead by example and we have incorporated initiatives along those lines in previous energy legislation. Enhancement of these initiatives will be sought in future sessions.

QUESTION SEVEN

KEF: What steps should State Government take to reduce and/or improve energy use in its functions, such as transportation fuels and energy efficiency?

WEBB: Fleet management, energy utilization evaluations of buildings and facilities management, diversification of fleet, i.e. hybrids, fuel efficient cars, and other measures can achieve cost savings and set an example.

QUESTION EIGHT

KEF: Do you see renewable energy, such as wind, solar and hydro, as viable options for energy diversification in Kentucky? What would you do to promote implementation of these energy sources, if they are viable?

WEBB: Yes, all forms of renewable energy should be promoted and utilized to their maximum potential. Our energy portfolio must be diverse to meet the demands of the population and our economy.

QUESTION NINE

KEF: What would you do to support energy workforce training and education, besides existing workforce development and higher education programs?

WEBB: We must adapt existing programs to incorporate and include training and educational components in the existing and potential renewable energy economy.

QUESTION TEN

KEF: Including specifics in your district, what impact does the energy industry have on your district? What future prospects are there for energy development in your district and how you would work to promote that development?

WEBB: My district is historically a coal, oil and gas economy, both in production and employment impact. Energy transportation on the river and rail, and trucking is an important part of our regional economy. Alternative renewable crops are being grown in the district along with initiatives involving energy production from waste materials. Consumption of energy and the impact of additional costs impact the district because of the major industrial users in the district. Along with the economics of the consumer impact, major users are an important consideration in the formulation of our regional energy plan.

SPECIAL REPORT: 10 Questions for Dr. Jack Ditty

In an effort to highlight the issues related to energy independence and security, the Kentucky Energy Forum is highlighting the candidates for District 18 State Senator in the special election to be held on Tuesday, August 25.

You may visit Dr. Jack Ditty's campaign website by clicking here.

QUESTION ONE

KENTUCKY ENERGY FORUM: Do you believe that tax incentives should be awarded to energy companies to encourage investment in Kentucky? (part one)

DITTY: Yes, we should make every attempt to encourage companies to invest here. Kentucky has the workforce and natural resources that are a perfect fit for energy companies looking to relocate.

KEF: Do you believe these incentives should be extended to promote increased coal mining and natural gas development? (part two)

DITTY: Yes, coal and natural gas will continue to be an integral part of energy production in the future, and these incentives will help companies to find new ways to burn coal more efficiently and safely.

KEF: Do you believe these incentives should be expanded to existing companies? (part three)

DITTY: Yes, we should protect existing companies that are currently providing jobs in our communities; they should not be excluded simply because they are already in Kentucky. Please provide detailed answers. Any incentives offered to companies should be performance-based and tied to new job creation.

QUESTION TWO

KEF: Do you support tax incentives for ‘thin-seam’ coal mining to encourage extraction of hard-to-mine coal?

DITTY: Yes.

QUESTION THREE

KEF: Do you support the general principal of cap-and-trade to lower air emissions and/or reduce the carbon footprint? Please explain you position in detail on this issue.

DITTY: Lowering air emissions is a worthwhile goal, but using a utility tax, and dressing it up as “cap and trade” is not the solution. Funding research that will create full-scale production methods that burn coal cleanly will significantly lower emissions at a faster rate than cap and trade. States like Kentucky will suffer dire consequences if a utility tax is passed. We have an electricity rate that is one of the lowest in the country, which helps us to attract business and create jobs. Cap and trade would, by some estimates, triple the average Kentucky electricity bill, while allowing New York and California to lower their rates.

QUESTION FOUR

KEF: How would you propose to encourage development of alternative transportation fuels in Kentucky? What would you view as the top three alternative transportation fuels?

DITTY: Funding performance-based grants will give companies the tools they will need to advance research that is underway in Eastern and Western Kentucky. Coal to Diesel, Coal to Synthetic Natural Gas, and Biomass

QUESTION FIVE

KEF: In your opinion, does the growing of industrial hemp present itself as a viable option for biomass feedstock? Please explain why or why not? What other sources of biomass feedstock do you consider as a viable feedstock?

DITTY: Hemp was at one point one of Kentucky’s biggest exports, but it has been over 150 years since hemp was grown on a commercial basis. Switchgrass or wood fiber seems to be the best feedstock for biomass energy production. Corn was under consideration, but the recent spike in corn prices due to ethanol production makes it a less appealing source.

QUESTION SIX

KEF: What role does energy efficiency play in a comprehensive energy plan for Kentucky?

DITTY: Everyone should take steps to consume as little energy as possible. This will result in lower utility bills, a cleaner environment, and higher quality of life in Kentucky.

QUESTION SEVEN

KEF: What steps should State Government take to reduce and/or improve energy use in its functions, such as transportation fuels and energy efficiency?

DITTY: We should make sure that tax dollars are spent in the most efficient way possible. Any state agency or equipment should be held to a higher standard when it comes to energy efficiency. Kentucky should lead by example and make every aspect of state government as efficient and productive as possible.

QUESTION EIGHT

KEF: Do you see renewable energy, such as wind, solar and hydro, as viable options for energy diversification in Kentucky? What would you do to promote implementation of these energy sources, if they are viable?

DITTY: Renewable energy is more suitable in other parts in the country, than in Kentucky. Our topography is not suited for wind and solar, and Kentucky does not have a large supply of running water that could be used to consistently supply electricity. However, if any renewable energy source is shown to be effective and consistent, they should be open to receive incentives just like any other source of alternative energy.

QUESTION NINE

KEF: What would you do to support energy workforce training and education, besides existing workforce development and higher education programs?

DITTY: I would push for an increase in focus on the science and math curriculum in our schools. Science and math have proven to be the cornerstone of creating a workforce that has the technical knowledge to compete in our rapidly changing workplace. I would also advocate to increase the number of programs offered by KCTCS that are specific to the energy field. Energy companies look for a workforce that is well skilled in math and science, and Kentucky can level the playing field when we are competing with other states for new industry by providing graduates with the critical knowledge needed to be engineers and technicians.

QUESTION TEN

KEF: Including specifics in your district, what impact does the energy industry have on your district? What future prospects are there for energy development in your district and how you would work to promote that development?

DITTY: Naturally, Ashland Oil is a great example of a company that has been an integral part of our community for generations. Ashland Oil has been able to survive all these years by paying attention to the changing landscape in which they operate. New processes are evolving every day and businesses have to be flexible and proactive to keep their company on the cutting edge. Our district has been, and we will continue to be tied to energy production. By finding ways to burn coal cleaner and extracting hard to reach oil and natural gas, we will utilize our abundant gift of natural resources in new ways, which will keep Kentucky competitive in the fight to make our country more energy independent.

Stanford University Studies Ways to Make CCS Effective and Safe