Quantcast
Environmental News for a Healthier Planet and Life

GAO Report Confirms Coal Leasing Program 'Out of Date,' Costs Taxpayers Nearly $30B

Energy
GAO Report Confirms Coal Leasing Program 'Out of Date,' Costs Taxpayers Nearly $30B

The U.S. Government Accountability Office (GAO) today released the result of its investigation into coal leasing practices at the Bureau of Land Management, which confirmed earlier reports that coal companies have taken advantage of a lax bidding process for leasing coal on publicly owned lands, resulting in nearly $30 billion in loss for U.S. taxpayers. Sen. Ed Markey (D-MA) echoed the Sierra Club, Greenpeace and other environmental and community advocacy groups in calling for a temporary suspension of the federal coal leasing program.

[slideshow_deploy id='346837']

"The Interior lacks rigor and oversight in determining the fair market value of federal coal leases," said Sen. Ed Markey and Rep. Peter DeFazio in a joint statement on the report.

"Given the lack of market competition in coal leases, if the fair market value set by Interior is low, it can lead to significant losses for taxpayers. For instance, for every cent per ton that coal companies decrease their bids for the largest coal leases, it could mean the loss of nearly $7 million for the American people."

This is the second federal report, after the Inspector General’s report in June of 2013, showed significant financial losses from the troubled coal leasing program.

"For decades coal companies have exploited a flawed and lax federal leasing program to buy coal on public lands for pennies on the dollar, costing the U.S. taxpayer billions and subsidizing dirty, coal-fired power plants that have contributed to health problems and premature deaths for thousands of American," said Bill Corcoran, deputy director of the Sierra Club’s Beyond Coal campaign.

“This independent assessment shows why change must happen in the federal coal leasing program. Interior Secretary Sally Jewell and the Bureau of Land Management owe it to American taxpayers to suspend the current leasing program until coal companies are paying a fair price for publicly-owned coal.

The GAO report adds to the mounting pressure to reform the federal coal leasing program. However, this report does not address broader problems with the federal coal leasing program such as its role in unlocking huge quantities of carbon pollution. In December 2013, a report from the Bicameral Task Force on Climate Change recommended that the Department of Interior reform the federal coal leasing program to help implement President Obama’s Climate Action Plan, stating, “BLM should also revisit policies that subsidize fossil fuel development on federal land by increasing royalty rates for federal coal leases, reviewing its procedures for determining “fair market value” during its coal leasing process, and reforming its leasing practices in the Powder River Basin.”

“The GAO report is the latest to highlight flaws with a coal leasing program that is rigged to benefit a handful of coal mining companies like Peabody and Arch, and is yet another reminder of the BLM’s failure to account for the coal industry’s plans to boost exports," said Greenpeace climate and energy campaigner Kelly Mitchell.

"But the larger problem is that the BLM is undermining President Obama’s Climate Action Plan by subsidizing the extraction of hundreds of millions of tons of publicly owned coal. Secretary Jewell should put an end to the BLM's coal giveaways and start accounting for the costs of carbon pollution and other damage to the environment when setting royalty rates for the sale of publicly owned coal.”

Beyond lost revenue, selling publicly owned coal at such low rates amounts to a major fossil fuel subsidy, favoring coal at the expense of cleaner forms of energy, said Greenpeace. Between 2011-2012, BLM leased more than 2.1 billion tons of coal in the Powder River Basin, unlocking nearly 3.5 billion metric tons of CO2. These and other concerns about the federal coal leasing program were detailed in a letter sent to Interior Secretary Sally Jewell on her first day on the job from the leaders of 21 environmental, health and consumer organizations. More than 135,000 have called on Secretary Jewell to establish a moratorium on federal coal leasing in the Powder River Basin.

Visit EcoWatch’s COAL page for more related news on this topic.

Ningaloo Reef near Exmouth on April 2, 2012 in Western Australia. James D. Morgan / Getty Images News

By Dana M Bergstrom, Euan Ritchie, Lesley Hughes and Michael Depledge

In 1992, 1,700 scientists warned that human beings and the natural world were "on a collision course." Seventeen years later, scientists described planetary boundaries within which humans and other life could have a "safe space to operate." These are environmental thresholds, such as the amount of carbon dioxide in the atmosphere and changes in land use.

Read More Show Less

EcoWatch Daily Newsletter

A 3-hour special film by EarthxTV calls for protection of the Amazon and its indigenous populations. EarthxTV.org

To save the planet, we must save the Amazon rainforest. To save the rainforest, we must save its indigenous peoples. And to do that, we must demarcate their land.

Read More Show Less

Trending

UN Secretary General Antonio Guterres delivers a video speech at the high-level meeting of the 46th session of the United Nations Human Rights Council UNHRC in Geneva, Switzerland on Feb. 22, 2021. Xinhua / Zhang Cheng via Getty Images

By Anke Rasper

"Today's interim report from the UNFCCC is a red alert for our planet," said UN Secretary General Antonio Guterres.

The report, released Friday, looks at the national climate efforts of 75 states that have already submitted their updated "nationally determined contributions," or NDCs. The countries included in the report are responsible for about 30% of the world's global greenhouse gas emissions.

Read More Show Less
New Delhi's smog is particularly thick, increasing the risk of vehicle accidents. SAJJAD HUSSAIN / AFP via Getty Images

India's New Delhi has been called the "world air pollution capital" for its high concentrations of particulate matter that make it harder for its residents to breathe and see. But one thing has puzzled scientists, according to The Guardian. Why does New Delhi see more blinding smogs than other polluted Asian cities, such as Beijing?

Read More Show Less
A bridge over the Delaware river connects New Hope, Pennsylvania with Lambertville, New Jersey. Richard T. Nowitz / Getty Images

In a historic move, the Delaware River Basin Commission (DRBC) voted Thursday to ban hydraulic fracking in the region. The ban was supported by all four basin states — New Jersey, Delaware, Pennsylvania and New York — putting a permanent end to hydraulic fracking for natural gas along the 13,539-square-mile basin, The Philadelphia Inquirer reported.

Read More Show Less