The U.S. Extractive Industries Transparency Initiative (USEITI) is an international standard that promotes open and accountable management of natural resources. Peabody is committed to transparent and accurate accounting of our payments made to various governments. We respect and comply with all applicable laws and regulations wherever we operate, and we voluntarily participate in the USEITI.
In 2016, the USEITI released its second annual report that conveys where participating companies and governments publicly disclose revenues paid and received from extractive company resources. The report provides a benchmark for good governance and a valuable means of showing the importance of extractive industries to national, state and local community economies. The 2016 USEITI report may be viewed in its entirety at doi.gov/eiti.
Peabody is a strong supporter of the USEITI. We have worked closely with government, civil society and our industry partners in the USEITI multi-stakeholder group since it was established as a federal advisory committee in 2012, and several of our employees have been appointed by the U.S. Secretary of Interior as a primary member of the committee. Through our participation we provide guidance on the tasks required to achieve EITI compliant status and validation.
Energy Security through Enhanced Oil Recovery
The National Enhanced Oil Recovery Initiative (NEORI) was launched in 2011 to help realize the economic, environmental and national energy security benefits achieved by increasing enhanced oil recovery production by using captured carbon dioxide (CO2). NEORI involves a unique and bipartisan coalition of leaders and representatives from government, industry, environment and labor, and Peabody is a leader in this effort.
The organization has released recommendations to boost domestic oil production and reduce CO2 emissions through the expanded use of enhanced oil recovery. In 2014, the Expanding Carbon Capture through Enhanced Oil Recovery Act was introduced, calling for the expansion and reform of an existing federal tax incentive that would, according to NEORI’s analysis, increase U.S. oil production from enhanced oil recovery by billions of barrels over time, while storing billions of tons of CO2 from man-made sources underground. The program could pay for itself within 10 years through increased federal revenues generated by boosting domestic oil production, with an estimated net return of $100 billion over 40 years. The improved incentive would also reduce the trade deficit by saving the U.S. billions in expenditures on imported oil over the same period.
In 2016, NEORI’s efforts on Capitol Hill lead to the introduction of bipartisan bills in both the House and the Senate that demonstrated expanded support for carbon capture in Congress. Peabody continues as a leader in growing awareness and support for carbon capture in Washington D.C. and beyond.
Source: NEORI.org. Web, 17 March 2017.
U.S. Environmental Protection Agency’s Power Plant Regulations
As an energy leader, our charge is to expand energy access for families living without power, maintain a reliable supply to satisfy existing needs and plan for long-term growth. We all share the goals of affordable energy, strong economies and a clean environment. Keeping electricity costs low is why coal is essential to the energy mix.
Emissions progress for coal begins with deployment of high-efficiency, low-emissions (HELE) power stations using technology that is available today. Longer-term investments in next-generation carbon capture, use and storage (CCUS) technologies are necessary to transition to the ultimate goal of near-zero emissions from coal-fueled power. HELE and CCUS technologies must be part of the solution to achieve goals of substantial reductions in greenhouse gas emissions.
In the U.S., the Clean Power Plan was first proposed by the Environmental Protection Agency (EPA) under the former President Obama administration in June 2014 and was formally published in the Federal Register in October 2015. It is a policy focused on setting limits on CO2 emissions produced from existing power plants, with an agenda to reduce coal-fueled power at a time when coal is used to generate electricity in 48 states.
Peabody believes the Clean Power Plan is fundamentally flawed on legal, policy and practical grounds. Swiftly after the EPA announced the final rule, Peabody joined an extensive coalition of industry participants and attorneys general from dozens of states to challenge the legality of the regulations. In February 2016, the U.S. Supreme Court voted to temporarily halt implementation of the EPA’s Clean Power Plan while the U.S. Court of Appeals for the District of Columbia continues to review the rule’s legality. In September 2016, the U.S. Court of Appeals District of Columbia Circuit began to hear arguments.
In March 2017, President Trump issued an executive order promoting energy independence and economic growth. The order requires the EPA to immediately review the final rules of the Clean Power Plan, and if appropriate, take lawful action to suspend, revise or rescind the rule.
The court and President Trump’s actions counter implementation of onerous rules that would raise U.S. power costs and damage reliability of the electric grid with no significant environmental benefit. Peabody has advocated use of technology to lower greenhouse gas emissions for nearly two decades, while investing hundreds of millions of dollars in clean coal technologies. We applaud the Supreme Court and President Trump’s unprecedented decisions to protect affordable energy for families and businesses across the U.S. who value reliability and diversity of fuel supply.
Sources: U.S. Energy Information Administration, Electric Power Monthly, February 2017; “Promoting Energy Independence and Economic Growth,” The White House, Office of the Press Secretary, Executive Order, March 2017.