Coal’s Support by Illinois Department of Commerce and Economic Opportunity

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.

Illinois Coal Industry’s PR in Schools

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.

Where are the Renewable Energy Programs in Illinois?

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.

Open Letter to Simmons Cancer Institute Regarding High Incidence of Cancer in Montgomery County

Simmons Cancer Institute at SIU
Dr. David Steward, Director of
Internal Medicine-Population Science
P.O. Box 19636
Springfield, IL 62794-9636

February 23, 2013

Dear Dr. Steward:

Montgomery County Cancer Association has established a fine tradition of raising funds to help cancer patients and finance cancer research.  Richard Small announced recently that MCCA donated $30,000 to Simmons Cancer Institute to study why there is such a high incidence of cancer in Montgomery County.  To help you with historical and current background information, I have listed some of the most harmful environmental influences on Montgomery County’s air, land, and water.

  1. Eagle-Picher Corporation in Hillsboro, IL was placed on the Superfund list in September, 2007 by the U. S. EPA.  In 1916, the Picher Lead Company of Missouri merged with Eagle White Lead to form Eagle-Picher Lead.  This merger made it the second largest producer of lead and zinc products in the world.  It declared bankruptcy protection in January 1991 and for the second time in April 2005.  The clean up of the contaminated area is in the preliminary stages and will be covered by federal funds.
  2. American Smelting and Refining Company (ASARCO) in Taylor Springs was added to the National Priorities List of Superfund hazardous waste sites on September 2006.  Sites on the NPL are eligible for added resources under the Superfund program.  The 181-acre site contained a zinc smelter and zinc oxide production facility.  The extensive pollution on the property dates back to 1911 and includes contaminated soil and two production waste slag piles containing lead, arsenic, cadmium, and other metals.  This site is in the watershed of the Middle Fork of Shoal Creek.
  3. Hillsboro, as well as many other sites in Illinois, is contaminated with coal tar residues left over from manufacturing gas from coal during World War II.  In 1995, the area north of the former ice plant adjacent to Illinois Power (now Ameren Power) was established as a hazardous site by the EPA due to coal tar contamination. Coal tar is known to contain polycyclic aromatic hydrocarbons (PAHs) that can cause cancer and other health problems.  Coal tar can leach toxic materials such as PAHs, benzene, benzo (a) pyrene, pyrenes, and toluenes into waterways.  Coal tar based pavement sealant was found to be the major source of PAHs found in 40 urban lakes studied by the U.S. Geological Survey.  The study titled, “Coal Tar Sealant Largest Source of PAHs in Lakes,” was released 12/1/2010.
  4. U. S. Minerals, LLC in Coffeen, IL receives coal combustion bottom ash from Ameren Energy Generating Company-Coffeen Station.  The bottom ash is stored on site until it is processed. This includes drying, crushing and screening in order to make products for roofing shingles, blasting abrasives, road base materials, and filler for seal coating, plastic, paint, and ceramic tile.  No additional ash has been shipped from Ameren since May 2002 although at one time the site contained eight acres of 45-feet deep stockpiled ash and eight more acres paved with ash.Residents living near U.S. Minerals petitioned the Agency for Toxic Substances and Disease Registry (ATSDR) to determine if the contaminants in air and dust were a health risk for them.  McCrone Associates did a comparative study on the coal dust from U.S. Minerals to the dust from an outside table off site and to the dust found inside the house.  The conclusion was that the particle types matched for the outside dust and to a lesser degree the inside dust. The American Testing Company analyzed the dust for 10 metals and concluded the metal levels were consistent with levels available in Illinois soil.  There were no air emission data, stack testing, or organic analyses like PAHs performed.  Illinois Department of Public Health concluded that exposure to metals in ambient air near U.S. Minerals was indeterminate since no air sampling data exist.There was a news release in December 2010 from Region 5 of the U.S. Department of Labor’s Occupational Safety and Health Administration that cited U.S. Minerals LLC for 28 violations and a fine of $396,000.  The company has received serious citations in prior years and this time the citation was listed as willfully exposing its workers to dangerously high levels of hazardous dust, and not providing adequate breathing protection and training for workers at its facility in Coffeen.
  5. Coffeen Power Station is a coal-fired power plant owned and operated by Ameren Energy Resources located south of Hillsboro.  At the end of 2009, Ameren announced it had spent $1 billion for the installation of scrubbers at two of its facilities, Coffeen Power Station and Duck Creek Station.  Scrubbers reduce nitrogen oxides and sulfur dioxide emissions.  In 2006, there were 22,007 tons of sulfur dioxide and 11,680 tons of nitrogen oxides emitted by the Coffeen Power Plant.  Coffeen Lake that cools the plant operations has mercury contamination and fish consumption should be limited.  In 2005, 80 lb. of mercury was emitted at the plant.  Data provided by SourceWatch.org.Of the contaminants emitted by coal-fired plants, the fine particle pollution of 2.5 microns is considered one of the most damaging to health.  In 2010, Abt Associates was commissioned by the Clean Air Task Force to quantify the deaths and other health effects resulting from fine particle emitted by coal-fired plants similar to Coffeen Power Plant.  Abt’s study reported that each year over 13,000 deaths and tens of thousands of reported cases of chronic bronchitis, acute bronchitis, asthma, congestive heart failure, acute myocardial infarction, dysrhythmia, ischemic heart disease, chronic lung disease, and pneumonia are contributable to U.S. coal plant emissions.  Fine particle contaminants are a mixture composed of soot, heavy metals, and oxides of sulfur and nitrogen.  PAHs are not monitored, although they are the most carcinogenic compounds found in coal. There is no ambient air monitoring station in Montgomery County to document the 2.5 micron particulate emission of Coffeen Power Plant.
  6. Deer Run Mine is located in Hillsboro just a short distance from a nursing home, day care, and Hillsboro Hospital that is so close to the hospital that the air filters are contaminated with coal dust.  This mine exposes the residents to toxic materials in coal products such as arsenic, mercury, selenium, chromium, beryllium, lead, and sulfur and nitrogen oxides.  PAHs are not monitored locally or nationally, but are present in coal dust, coal slurry, coal tar, and coal combustion waste.  The city leaders must not have realized the damage to health caused by coal or they would not have promoted the mine, knowing it was to be located in the city so close to residents.  In addition to coal dust, on occasions the processed coal spontaneously combusts.  Smoldering coal produces noxious fumes, smoke, and particulate matter.The community is also exposed to contaminated runoff from the mine site.  There was an exemption given to Deer Run so rain water and spray water at railroad loading docks and roads are not confined to the mine site.   Another source for polluted mine water in Hillsboro comes from Structure Five.  This body of water collects overflow from mine outfalls and then drains into Central Park Creek.  This flows through the area that has the high school on one side and the middle school on the other side and then proceeds through the community.Over time the 80 ft. high hazard coal slurry structure impoundment will leak toxic chemicals off the mine site resulting in surface and ground water contamination.  Failure of the impoundment can cause loss of life and considerable property damage. The impoundment will never be removed and 5-6 more will be constructed over the 20-30 year life of the mine.  This means that there is a permanent source of water contamination forever in Hillsboro.  The watershed of Hillsboro and Middle Fork of Shoal Creek will help to distribute the mine pollution farther downstream affecting other communities.

A summary of coal’s effect on health can be found at:  http://www.psr.org/coalreport

There is also an informative book titled, “The Silent Epidemic:  Coal and the Hidden Threat to Health by Alan H. Lockwood, MD.  I appreciate your efforts to help the residents in Hillsboro and Montgomery County to escape from the devastation of cancer.

cc: Chairman of the Montgomery County Board, Mayor of Hillsboro, Montgomery County Cancer Association, and the Director of Montgomery County Public Health.