Did the Daniels administration factor in carbon legislation taxes in the strategic decision to introduce yet another “clean” (clean…ha!) coal plant in the state? Could be trouble in paradise for the state of Indiana after some basic sleuthing a $2-$4.7 billion dollar cost for Indiana’s CO2 emissions from its 54 coal fired power plants alone.
Public Citizen, an organization fighting new investment in the coal industry, states that an eventual cap and trade system for carbon will be introduced to the country and that this system will most certainly have an adverse economic impact on states that produce a lot of CO2. This legislation will effectively calculate a more accurate cost of coal, essentially making it more expensive to burn. That’s kind of the point of a cap and trade system. This is something Obama and McCain endorse in some form or another. So, now the Daniels administration’s plan to charge ahead with a new coal fired power plant is troubling from both an environmental and financial standpoint.
U.S. Rep. Emanuel Cleaver II, D-Mo states, “There’s no point in arguing about whether or not we ought to do something. I think that the discussion now is to put the best system in place possible.” The consensus is growing, yet our state leadership does not have the foresight to recognize this.
What’s the impact? Well, we currently have the 4th and 12th dirtiest coal power plants in the county:
#4 – The Gibson plant in Owensville, IN — 20.4 million tons (annually)
#12 – The Rockport plant in Rockport, IN — 16.6 million tons (annually)
CARMA, the Carbon Monitoring for Action project, calculates the states annual CO2 emissions from the state’s 54 existing coal plants at 137 million tons of CO2 emitted a year. Public Citizen (Using the Texas Public Utilities commission) estimates CO2 could be priced from $30 to $45 per ton of CO2, annually. Other estimates, based on a system allowing states to purchase carbon credits from the developing world, put the price per ton of CO2 between $15 and $20 per ton. Using my fabulous basic math skills, this translates to a cost of $2 billion ($15 per ton) to $4.7 billion ($35 per ton) dollars annually that Indiana. Can this be? Someone please disprove this for me and put my mind at ease.
