California bans state funding of coal projects

Legislation signed last week by Gov. Jerry Brown may have dealt the final blow to a Port of Oakland plan to bring coal cargoes to its terminals by prohibiting the state from providing funds for such projects.    The state of California has passed legislation banning the state from providing transportation funding for the construction of expansion of coal export terminals.
   The bill (SB 1279), signed by Gov. Jerry Brown less than 48 hours after it was passed, may have dealt the final blow to a proposed plan to bring coal export cargo from Utah through the Port of Oakland.
   The majority of coal exports from the United States West Coast are destined for Asia, especially China.
   The coal terminal, proposed as part of a $250 million plan by Terminal Logistics Solutions (TLS) to develop and operate a bulk terminal on a portion of the former Oakland Army Base, would create thousands of jobs in a city where unemployment is high and housing costs are skyrocketing because of gentrification, according to TLS Chairman and CEO Jerry Bridges, also the former executive director of both the Port of Oakland and the Virginia Port Authority. 
   Opponents of the plan include environmental groups and local politicians, who say it would contribute to health concerns for area residents and increased greenhouse gases.
   TLS, however, argued that objections due to concerns about coal dust escaping from the terminal or by trains carrying material to the terminal were misguided, as all products handled at the terminal would be stored in covered domes and moved in covered conveyors. The company planned to use rail hopper cars mounted with covers made by Ecofab to move the coal to prevent coal dust from escaping.
   The Oakland City Council in June passed an ordinance to prohibit the storage and handling of coal and coke at bulk material terminals in the city that was confirmed by a second vote last month.
   Specifically, SB 1279 will bar the California Transportation Commission from allocating state funds for new coal-related projects, effective Jan. 1, 2017.
   “When I introduced this measure, many people thought a coal-export terminal in West Oakland was a done deal,” Sen. Loni Hancock, D-Calif., said in a statement. “Today, people can breathe easier knowing that beginning in January no coal-related projects will receive state funding.”
   “Other localities should follow suit – and the state should, too – to reduce and, ultimately, eliminate the shipment of coal through all California ports,” added Brown.
   “I believe action on multiple fronts will be necessary to transition away from coal,” he said. “In California, we’re divesting from thermal coal in our state pensions, shifting to renewable energy, and, last year, coal exports from California ports declined by more than one-third, from 4.65 million to 2.96 million tons. That’s a positive trend we need to build on.”