Losing Streak Continues for U.S. Coal Export Terminals

The U.S. coal export industry continued its losing streak as 2014 ended and 2015 began.  A coal terminal project in Louisiana lost its permit in state court, and one in Washington ran into a stiff legal challenge.  Last month, the company behind several other planned terminals sold its remaining projects to a high-risk investment firm at a major loss.

The developments continue a string of victories for environment groups fighting the export of coal to developing economies such as China. Of 15 proposals to build major new coal export facilities across the U.S., all but four have been defeated or canceled within the past two years.  And only a few existing facilities have won approval to expand.

"This is an ugly, ugly time for coal exports," said Clark Williams Derry, research director for the Seattle-based Sightline Institute, a nonprofit think tank that promotes sustainable policies for the Pacific Northwest.

As U.S. demand for coal plunged in 2011 due to the boom in natural gas production, the industry began planning to ship the energy abroad as a way of supporting production and sales.  Doing so would require a substantial expansion of infrastructure, including more coal-by-rail systems and coastal export centers to load the fuel onto ships.

But dozens of grassroots campaigns sprang up in the areas surrounding proposed export terminals in Oregon, Washington, Texas, Alabama and Louisiana. Community and indigenous groups objected to environmental damage from coal dust in the air and spillage in the water during rail transport, preparation and loading of coal onto ships. Joining them on picket lines and in court challenges were national environmental groups, such as the Sierra Club, that are fighting the climate threat from the burning of carbon fuels.

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