Coal Industry Group Asks Federal Lawmakers to Cut Funding for Black Lung Program, Citing COVID-19

1-DSC09675
on

The National Mining Association (NMA) on Wednesday called on President Donald Trump and federal lawmakers to respond to the COVID-19 pandemic by cutting a tax used to support coal miners affected by black lung disease, to cut fundingย to clean up high-priority abandoned coal mine sites, and taking other steps that would financially benefit the coal miningย industry.

โ€œTo minimize the impact of this crisis on the coal industry, Congress should ensure all businesses have the financial resources necessary to ride out the pandemic,โ€ the March 18 letter says.

One way to achieve that goal, the NMA suggested, would be to make a $220 million cut to the per-ton tax on coalย used to fund the federal Black Lung Disability Trustย Fund.

โ€œCongress should immediately reduce โ€” not eliminate โ€” the [Black Lung Excise Tax] to its 2019 levels,โ€ the NMAย wrote.

The letter cites not only the impacts of COVID-19, but also the coal mining industryโ€™s financial struggles predating theย pandemic.

It begins by highlighting the fact that coal miners have continued to work during the pandemic, amid business shutdowns that have spread across the United States in a patchwork manner. That same day, COVID-19 cases were confirmed in all 50 U.S.ย states.

โ€œAs the country faces this unique and mounting challenge around the COVID-19 pandemic, U.S. coal miners continue to work to provide the resources necessary to power America,โ€ NMA wrote, โ€œwhile bracing for the severe financial distress facing all sectors across theย nation.โ€

The Black Lung Disability Trust Fund was first established in 1978. It pays benefits to coal miners affected by black lung disease when the company responsible for their illness isnโ€™t able toย pay.

The trust fund is primarily funded by an excise tax on coal, which was originally set at between $0.25 and $0.50 per ton. In 1986, it was raised to between $0.55 and $1.10 per ton โ€”ย but those rates dropped back down in 2019 because those termsย expired.

It has long been underfunded. โ€œThe Black Lung Disability Trust Fund and associated excise tax on coal were established so that the coal industry, as opposed to taxpayers in general, would bear the burden associated with providing black lung benefits,โ€ the United States Congressional Research Service said in a January 18, 2019 report on the program. โ€œThroughout its history, the Black Lung Disability Trust Fund has not raised revenues sufficient to meetย obligations.โ€

Coal miners with black lung are thought to be one of the groups at significant risk from COVID-19, which affects the respiratoryย system.

โ€œMiners also face greater health risks,โ€ Bloomberg reported on March 12. โ€œAs many asย 20 percent of long-time minersย may have black lung in central Appalachia, a historic bastion of U.S. coal production that includes parts of West Virginia, Virginia, Kentucky and Tennessee. That would be an underlying health condition that could exacerbate the symptoms of COVID-19, the disease caused by the virus that was officially labeled a pandemic onย Wednesday.โ€

The NMA letter, which was obtained by E&E News, also calls on federal lawmakers to cut funding for abandoned mine cleanups by 50 percent. And it asks Congress to suspend or reduce federal royalty payments for coalย leases.

The Abandoned Mines Lands Fund focuses on reclaiming coal mining sites that would have otherwise fallen through the cracks of federal and state law. It funds efforts by state regulators to repair dangerous old coal mining sites, including those that could cause sinkholes and otherย hazards.

Phil Smith, director of communications and government affairs for the United Mine Workers of America, told DeSmog that the union opposes cuts to both the Black Lung Disability Trust Fund and the Abandoned Mine Landsย Fund.

โ€œWhile those who currently receive Black Lung benefits through the trust fund would not be in danger of seeing those benefits cut, it sends a very bad message to them and their families,โ€ Smith said in an email. โ€œHow long is temporary? Once these contributions are cut, the industry will argue that they should never beย restored.โ€

The NMA letter prompted a written response from two members ofย Congress.

โ€œIt is disappointing that the coal industry is advocating for policies that would not help the tens of thousands of sick, retired, and out-of-work miners that need immediate help and the communities that are still recovering from the legacy of environmental damage caused by the coal industry,โ€ a letter released today by Rep. Raul M. Grijalva and Rep. Matt Cartwrightย says.

โ€œAt a time when the country is facing a pandemic due to a respiratory illness,โ€ they wrote, โ€œit is particularly egregious for the coal industry to advocate reducing the Black Lung Excise Tax, which is essential for providing medical services for approximately 25,000 sickย miners.โ€

Asked for comment, the NMA emphasized that there was โ€œno riskโ€ from the policy they requested to the beneficiaries of the Black Lung Disability Trust Fund from a funding perspective. โ€œEven in the midst of this crisis, the industry is working to ensure uninterrupted operations so that the fuel that provides a quarter of the U.S.โ€™s electricity generation remains available,โ€ a spokesperson added in an email toย DeSmog.

The energy market has in recent years undergone enormous changes, and coal has gone from generating roughly half of American electricity in 2005 to producing just six percent more of the nationโ€™s power than renewable energy inย 2019.

Last year, the U.S. used 966 billion kilowatt hours of coal-generated electricity, according to a February 27 Energy Information Administration report, representing a little less than a quarter of total US electrical generation. Natural gas represented 38.4 percent of the total, while nuclear power made up 19.7 percent and renewables 17.5ย percent.

Main image credit: National Institute for Occupational Safety andย Health
1-DSC09675
Sharon Kelly is an attorney and investigative reporter based in Pennsylvania. She was previously a senior correspondent at The Capitol Forum and, prior to that, she reported for The New York Times, The Guardian, The Nation, Earth Island Journal, and a variety of other print and online publications.

Related Posts

Analysis
on

Premier Danielle Smith can expect new tariffs, fewer revenue streams, and a provincial deficit brought on by lowered oil prices.

Premier Danielle Smith can expect new tariffs, fewer revenue streams, and a provincial deficit brought on by lowered oil prices.
on

Jeremy Clarkson spreads well-worn conspiracy theory that casts inheritance farm tax policy as plot to โ€œreplace farmers with migrantsโ€.

Jeremy Clarkson spreads well-worn conspiracy theory that casts inheritance farm tax policy as plot to โ€œreplace farmers with migrantsโ€.
on

Premier Danielle Smith declared sheโ€™s pursuing โ€˜every legal optionโ€™ in her fight against Trudeauโ€™s federal proposal to curb emissions.

Premier Danielle Smith declared sheโ€™s pursuing โ€˜every legal optionโ€™ in her fight against Trudeauโ€™s federal proposal to curb emissions.
on

The Climate Policy Institute attending the UN summit was founded by a state-backed think tank which has received fossil fuel funding.

The Climate Policy Institute attending the UN summit was founded by a state-backed think tank which has received fossil fuel funding.