| Downstream Strategies Press Release New Report Warns of Decline of Central Appalachian Coal
Argues for New Focus on Economic Diversification and Renewable Energy for the Region
MORGANTOWN, WV - As the legislative season begins across Central Appalachia, a new report by Downstream Strategies details future challenges to coal production in the region and argues that policy-makers should strongly support renewable energy and the development of new economic opportunities for coal-producing areas.
"Coal has contributed significantly to local and state economies in Central Appalachia, but production has fallen substantially over the last 12 years as other coal basins and sources of fuel have become more competitive," said lead author Rory McIlmoil. "This trend is expected to continue as mining costs increase due to the depletion of the lowest cost coal reserves, and as new environmental regulations are implemented. As this happens, local and state economies will need new sources of jobs and revenue to replace coal mining jobs and taxes."
According to the report, Central Appalachian coal production is projected to fall by nearly 50% within the next ten years. Central Appalachia includes the coal-producing counties in southern West Virginia, eastern Kentucky, southwest Virginia, and eastern Tennessee
The report points to renewable energy and energy efficiency as two sectors where new jobs and tax revenues can be created, as the region has a wealth of clean energy resources. The report concludes that losses related to the decline of the coal industry can be recaptured by gains from wind, solar, low-impact hydro, and sustainable biomass production, and from a strong focus on energy efficiency improvements.
To support the diversification of the regional energy economy, the report outlines a series of policy instruments, including requiring each state to provide 25% of their energy from renewable sources; the provision of grants, tax credits, clean energy bonds, or low-interest loans to support renewable energy development and manufacturing; the implementation and strengthening of net metering laws; and the development of workforce programs aimed at providing the skills and knowledge required for renewable energy industries. The study also argues for strong incentives for local ownership of energy development, to help maximize the local economic benefits of renewable energy projects.
"Given that coal production is projected to decline significantly in the coming decades, diversification of Central Appalachian economies is now more critical than ever," said co-author Evan Hansen, President of Downstream Strategies. "State leaders should use this legislative session to increase support for new economic development across the region, especially in the rural areas set to be the most impacted by a sharp decline in the region's coal economy."
In December 2009, West Virginia Senator Robert C. Byrd stated, "West Virginians can choose to anticipate change and adapt to it, or resist and be overrun by it. The time has arrived for the people of the Mountain State to think long and hard about which course they want to choose."
According to McIlmoil, "The same is true for all of Central Appalachia, and we hope this report helps policy-makers understand the changes that are coming so that they can support new industries. The renewable energy sector offers one of the greatest opportunities for economic development."
Downstream Strategies is an environmental consulting company in Morgantown, West Virginia, with program areas in environmental policy, environmental science, and geographic information systems. The company provides science, research, and tools to organizations, businesses, and agencies. It offers clients an alternative to mainstream environmental consulting by combining sound interdisciplinary skills with a core belief in the importance of protecting the environment and linking economic development with natural resource stewardship. |
