We have been living through some very difficult times during the first half of 2020. On top of the difficult environment that our industry has operated in for many years, our country faced an unprecedented global pandemic known as COVID-19 that resulted in 100,000 deaths nationwide and the loss of trillions of dollars in economic output.

Although we have faced these extreme circumstances, the LEC has been hard at work making sure that the industry continues to push forward during difficult times. I wanted to take this opportunity to share a brief overview of what we have been up to on behalf of our membership.

Jason Bohrer

In early May, we received word from Great River Energy that Coal Creek Station is scheduled to close in the middle of 2022 if a buyer can’t be found. The Station has been a mainstay of the lignite industry since the early 1980s and remains environmentally compliant and extremely efficient. We continue to be hopeful that with the right engagement, a solution can be found to keep this plant operating.

Recently, the Lignite Research Council approved a carbon capture and storage project at the adjacent Blue Flint Ethanol Plant to identify suitable geologic structures to store carbon dioxide underground. Although not the primary motive for this project, this type of work decreases the research a new operator of Coal Creek would have to do in order to begin capturing and sequestering its CO2.

From a public affairs standpoint, we released our documentary “Coal: Powering the Past, Present and Future” which was viewed more than 30,000 times on Facebook and 6,000 times on YouTube. We have submitted op-eds in defense of the coal industry regarding the amount of government subsidies that are negatively impacting coal in electricity markets. We have also been very active on social media directly reaching many North Dakotans to continue to highlight the positive impact lignite has for North Dakotans and the state’s economy.

In our government action program, we remain active in the Minnesota legislative arena as our members continue to face harmful energy mandates in our largest export market. LEC staff held meetings with 45 legislators during the session to provide updates and provide polling data that showed the value of the coal industry to their constituents. Our persistence paid off as the regular session ended without legislation being passed that would hamper our operations.

We held a virtual Townhall meeting with U.S. Senator Kevin Cramer. More than 100 attendees heard his congressional update and ideas to help improve conditions on a number of fronts for the lignite industry. The LEC has provided the North Dakota Congressional Delegation with a list of items that we would want included if and when more legislation is taken up to deal with economic stimulus or an infrastructure spending bill. Some of the items included are a resiliency value for baseload power plants, Section 45Q tax credit guidance and adjustments, refined coal tax credit extension and to repeal the extension of the production tax credit for renewables and funding for the commercialization of rare earth elements.

Finally, LEC has been working to join the Midwest Independent System Operator (MISO) and provide a voice for baseload energy in the marketplace. For the past two years, we have been navigating a difficult process to become a member and have a voice on the Advisory Committee, which is a representation of all of the MISO members and have a direct interface with the Board of Directors. While this experience has been very frustrating at times, there is a light at the end of the tunnel.

Recently, the MISO Advisory Committee and the Board of Directors voted to create a new stakeholder group that will be led by the LEC and will give coal generation a seat at the table. We have recruited local and national coal mining associations and companies, statewide chambers of commerce and other organizations to join us in the new group. This will allow our members to have a strong voice in the marketplace and put us in a position to push for a variety of changes that will make the market fairer for baseload energy. Once a FERC filing completes its process and is approved, LEC should be placed on the Advisory Committee in August. There will be more to come on this important pursuit in the near future.

While this year has had more than its share of challenges, the power plants and the mines have continued to operate without a blip, and the Lignite Energy Council has continued to represent its members.

Jason Bohrer
President and CEO
Lignite Energy Council