Burning Coal, Burning Cash: Ranking the States That Import the Most Coal 2014 Update
What is a Coal State?
Major Producers
Major Consumers
Their economic interests differ
Main Findings of our Analysis
• 37 states were net importers of coal in 2012, paying $19.4 billion to import 433 million tons of coal from other states and countries
• 8 states spent > $1 billion on net coal imports
• Between 2008 and 2012, expenditures on net coal imports fell by nearly 25% as more utilities switched to natural gas and renewable energy
• Renewable energy and energy efficiency can cut coal imports, boost local economies, protect consumers, reduce overreliance on natural gas, and lower climate emissions
Our Methodology
• Update of findings from our 2010 Burning Coal, Burning Cash report
• Based on 2012 data (most recent available)
• Data from publically available reporting of monthly coal deliveries to power plants (accessed through SNL Financial)
• State rankings based on net imports – coal imported to a state less any coal exported out of the state from local mines
• Rankings for expenditures, weight, per capita spending, and international imports
• Expenditures include transportation costs
National Findings
37 States are Net Importers of Coal (2012)
8 states spent > $1 billion each on net coal imports
WA
24
NH ME
33 36
ND
35
OR
30
MN
18
WI
10
SD
28
IA
13
NE
20
NV
25
KS
15
CA
29
OK
12
AZ
14
TX
1
NY
22
MI
6
IL
23
IN
27
OH
16
MO
4
DE
31 MD
19
TN
9
AR
11
LA
17
MA
32
CT
NJ 37
26
MS
21
AL
8
GA
3
HI
34
Note: Three states – Idaho, Rhode Island, and Vermont have no coal power plants.
NC
2
SC
7
FL
5
Spent > $1 billion
on net coal imports
Net coal importer
82% of Coal Exports to Other States Originating from just 3 States (2012)
Top Coal Exporters to Other States (million tons):
1. Wyoming: 353
2. West Virginia: 44
3. Kentucky: 40
Most Coal Import‐Dependent U.S. Power Providers (2012)
Power Provider
Expenditures on Net Coal Imports
(billion $)
(1) Southern Company
2.24
(2) Duke Energy Corporation
2.22
(3) Tennessee Valley Authority
1.40 (4) NRG Energy, Inc.
1.26 (5) American Electric Power Company, Inc.
1.25 (6) Ameren Corporation
1.12 (7) FirstEnergy Corp.
1.09 (8) Xcel Energy Inc.
0.63 (9) Dominion Resources, Inc.
0.60 (10) DTE Energy Company
0.60 Coal generation is declining
• Coal‐fired electricity fell from almost half of the U.S. power mix in 2008 to 37 percent in 2012
• Contributions of natural gas and renewable energy to the U.S. power supply are growing Sources: U.S. EIA, 2013; SNL 2013
Coal imports are also declining
Total Expenditures on Net Coal Imports
30
2008
25
2012
Billion $
20
15
25.7
10
5
0
19.4
Between 2008 and 2012:
• Expenditures on net coal imports fell by nearly 25%
• Net coal imports by weight declined by 30% • Expenditures on coal imports from other countries down by 75% – from 16 states spending $1.8 billion in 2008, to seven states spending $464 million in 2012
Coal prices are rising
Price of Coal
70
Price of Coal ($/ton)
60
50
40
30
20
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year
Bituminous Coal
Subbituminous Coal
Lignite
Anthracite
Total
State‐level Rankings and Findings
The 10 Most Coal‐Dependent States: Expenditures on Net Coal Imports (2012)
2.0
1.85
1.8
1.76
1.66
1.6
1.41
Billion 2012 $
1.4
1.27
1.2
1.16 1.14
1.02
1.0
0.91
0.84
0.8
0.6
0.4
0.2
0.0
TX
NC
GA
MO
FL
MI
SC
AL
TN
WI
The 10 Most Coal‐Dependent States:
Net Coal Imports by Weight (2012)
60
57.0 50
Million tons
43.3 40
30
23.4 23.0 22.3 21.0 20.0 18.7 18.6 18.5 MI
WI
NC
OK
AL
20
10
0
TX
MO
GA
IA
IL
The 10 Most Coal‐Dependent States:
Per Capita Expenditures (2012)
$300
$250
$242 $233
$212 $203
$197 $197 $193
2012$
$200
$180
$168 $165
$150
$100
$50
$0
SC
MO
AL
NE
KS
AZ
IA
NC
GA
OK
The Most Coal‐Dependent States:
Expenditures on International Imports (2012)
$300
$282.2
Million 2012$
$250
$200
99% of foreign coal imports came from Colombia, with the remaining sourced from Venezuela and Indonesia $164.8
$150
$100
$50
$6.0
$3.9
$3.3
$2.7
$1.2
VA
HI
ME
MA
CT
$0
AL
FL
$1.85 Billion Leaving Texas to Pay for Imported Coal
Note: Based on 2012 data. Not all these funds will necessarily land in the state where the mining occurs. Mine owners may divert the profits to parent companies in other locations, for example. Amounts also include the cost of transportation. © Union of concerned scientists 2014; WWW.UCSUSA.ORG/BCBC2014UPDATE
$1.76 Billion Leaving North Carolina to Pay for Imported Coal
Note: Based on 2012 data. Not all these funds will necessarily land in the state where the mining occurs. Mine owners may divert the profits to parent companies in other locations, for example. Amounts also include the cost of transportation. In addition, North Carolina spent $600,000 on coal imports from unreported sources.
© Union of concerned scientists 2014; WWW.UCSUSA.ORG/BCBC2014UPDATE
$1.66 Billion Leaving Georgia to Pay for Imported Coal
Note: Based on 2012 data. Not all these funds will necessarily land in the state where the mining occurs. Mine owners may divert the profits to parent companies in other locations, for example. Amounts also include the cost of transportation. In addition, Georgia spent more than $13 million on coal imports from unreported sources.
© Union of concerned scientists 2014; WWW.UCSUSA.ORG/BCBC2014UPDATE
$1.16 Billion Leaving Michigan to Pay for Imported Coal
Note: Based on 2012 data. Not all these funds will necessarily land in the state where the mining occurs. Mine owners may divert the profits to parent companies in other locations, for example. Amounts also include the cost of transportation. © Union of concerned scientists 2014; WWW.UCSUSA.ORG/BCBC2014UPDATE
$1.02 Billion Leaving Alabama to Pay for Imported Coal
Note: Based on 2012 data. Not all these funds will necessarily land in the state where the mining occurs. Mine owners may divert the profits to parent companies in other locations, for example. Amounts also include the cost of transportation. © Union of concerned scientists 2014; WWW.UCSUSA.ORG/BCBC2014UPDATE
Most States’ Spending on Net Coal Imports Declined from 2008 to 2012
State
Spending on Net % Change 2008 Coal Imports in from 2008 Ranking
2012 (billion $)
(1) Texas
1.85 ‐3%
3
(2) North Carolina
1.76 ‐25%
2
(3) Georgia
1.66 ‐36%
1
(4) Missouri
1.41 +23%
10
(5) Florida
1.27 ‐18%
4
(6) Michigan
1.16 ‐15%
7
(7) South Carolina
1.14 +4%
11
(8) Alabama
1.02
‐33%
6
(9) Tennessee
0.91 ‐33%
8
(10) Wisconsin
0.84
‐1%
12
Top 10 most coal dependent states remained largely the same, but fewer states spent > $1 billion on imported coal (8 in 2012 vs. 11 in 2008) Many states are making large‐scale shifts from coal to natural gas Change in Share of Georgia’s
Power Supply, 2008 vs. 2012
100%
Change in Share of Ohio’s
Power Supply, 2008 vs. 2012
100%
Coal
Natural Gas
75%
63%
50%
Coal
Natural Gas
85%
75%
67%
50%
33% 35%
25%
18%
25%
10%
2%
0%
0%
2008
2012
2008
2012
Source: EIA, 2013
Risks of Overreliance on Natural Gas
Natural gas offers some near‐
term air quality and cost benefits, but risks include:
•
•
•
•
•
Price volatility Public health and safety
Water and land resources
Climate change
Crowding out renewables
Instead of over‐relying on natural gas to replace polluting coal generation, a better solution for consumers and the environment would be to invest more in homegrown renewable energy and energy efficiency. All states have untapped potential for renewable energy and energy efficiency.
States with Renewable Energy & Energy Efficiency Standards
$78
State spending per person on electricity efficiency programs (2012)
10 States Most Dependent on Net Coal Imports
Source: American Council for an Energy Efficient Economy. 2013. The 2013 State Energy Efficiency Scorecard.
Recommendations
• Adopt new and strengthen existing state and federal‐level clean energy policies, including –
–
–
–
–
–
Renewable energy standards
Energy efficiency resource standards
Tax credits
Net metering
Stronger building codes
Increased research & development funding
• Develop Strong EPA Power Plant Pollution Standards, including for carbon dioxide emissions
• Improve resource planning by regional grid operators & utilities
For more information, please contact: Jeff Deyette
Assistant Director, Energy Research
jdeyette@ucsusa.org
Available online at: www.ucsusa.org/bcbc2014update