There’s a Big Coal Giveaway in the Cromnibus Bill

Miloslav78/Thinkstock


This story originally was originally published by The Huffington Post and is republished here as part of the Climate Desk collaboration.

The 1,000-page omnibus spending package released Tuesday night is reigniting a fight over rules for U.S. financing of coal plants abroad.

In October 2013, the Treasury Department announced that it would stop providing funding for conventional coal plants abroad, except in “very rare” cases. And in December 2013, the Export-Import Bank announced a new policy that would restrict financing for most new coal-fired power plants abroad. The bank, often called Ex-Im, exists to provide financial support to projects that spur the export of U.S. products and services. The change in coal policy aligned with President Barack Obama’s June 2013 call to end US funding of fossil fuel energy projects abroad unless the products include carbon capture technology.

But the language in the omnibus blocks both Ex-Im and the Overseas Private Investment Corporation (OPIC), the US’s development finance institution, from using any funds in the bill to enforce these new restrictions on coal projects.

Rep. Hal Rogers (R-Ky.), chair of the House Committee on Appropriations, touted this prohibition in his statement on the spending package. He said the measure would help “to increase exports of US goods and services.” Rogers told The Hill that coal exports “are just about the only bright light in the coal business these days.”

Environmental groups have fought for years to get the government’s financial institutions to stop funding fossil fuel projects abroad, including a number of coal-fired power plants, mines, pipelines and natural gas export terminals. Friends of the Earth President Erich Pica said in a statement that including this rider in the omnibus “undercuts one of the most important contributions President Obama has made to climate policy internationally.”

“This continued desperate attempt by Republicans to prop up the moribund coal industry is a fools errand,” Justin Guay, associate director of the international climate program at the Sierra Club, told The Huffington Post. “The coal industry is a dead man walking; it’s time to align our economy with an industry that actually has a future.”

More MotherJones reporting on Climate Desk

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

Share your feedback: We’re planning to launch a new version of the comments section. Help us test it.