	Introduction

The Bush Administration considers coal a major component of its National Energy Strategy.The Administration anticipates a long-term reliance on coal because of its low-cost abundance.Numerous issues arise when harnessing this cheap, abundant fuel source. This report examines someof the major legislative issues related to coal in the 109th Congress, including coal and energysecurity, clean air and environmental concerns, funding strategies for technology R&D, loanguarantees for coal gasification projects, and the Abandoned Mine Land program. Coal supplies 22% of U.S. energy demand but over 50% of the energy used by the electricpower sector (both utility and non-utility consumers). (3) The increase in demand is largely to be met by new coal-fired ornatural gas-fired power plants. Clear Skies Legislation(7)

By mandating significant reductions in three pollutants emitted by coal-fired electricgenerating units, proposed Clear Skies legislation could have significant impact on coal productionand distribution, if enacted. (9) 

		Legislative Issues

When Clear Skies was introduced in the 108th Congress, EPA conducted an analysis of itseffects on the coal industry. (10) While the analysis indicated growth in coal production forelectric utility consumption (from 905 million tons in 2000 to 998 million tons in 2020), coalgeneration's share of the 2020 generation mix (11) was projected to decline from 46% to 44%. In March 2005, the Senate Environment and PublicWorks Committee killed S. 131 on a 9-9 vote. President Bush, however, has revived the CCT program under a newbanner -- the Clean Coal Power Initiative (CCPI) -- focusing on advanced coal combustiontechnology for removal of SOx, NOx, mercury, and fine particulate matter and carbon sequestration. The CCPI is a 10-year, $2 billion government-industry cost sharing program structuredsimilarly to the original CCT program. Outlook

The FY2006 funding request for Fossil Energy R&D is heavily weighted towards clean coaltechnology, potentially at the expense of other fossil technologies -- such as natural gas orpetroleum technology R&D. The House-passed version of the FY2006 Energy and Water Development appropriations bill( H.R. Legislative Issues

Legislation in the 109th Congress for an omnibus energy bill ( H.R. 6 ) wasapproved by the House on April 21, 2005. 6 includes provisions for coal nearlyidentical to the H.R. 6 conference report filed in the 108th Congress. (17) Within the Clean CoalPower Initiative section there would be loan guarantees for specific IGCC projects. Legislative Issues

Authorization for collection of AML fees was scheduled to expire at the end of FY2004 andwas extended nine months to the end of June 2005 by the Consolidated Appropriations Act for 2005( P.L. 108-447 ). Subsequently, H.R. 1268 ( P.L. 109-13 ), a supplemental appropriationsbill for FY2005, extended AML authorization to the end of FY2005. 2721 , was introduced May 26,2005.
Major legislative issues related to coal in the 109th Congress include coal and energy security,clean air and environmental concerns, funding strategies for technology R&D, loan guarantees forcoal gasification projects, and the Abandoned Mine Land (AML) program.
The Administration anticipates a long-term reliance on coal because of its relatively low-costabundance. Coal supplies 22% of U.S. energy demand but over 50% of the energy used by theelectric power sector. The Energy Information Administration forecasts electricity consumption togrow by 1.9% per year through 2025. The increase will largely be met by new coal-fired or naturalgas-fired power plants.
By mandating significant reductions in three pollutants emitted by coal-fired electricgenerating units, proposed Clear Skies legislation ( S. 131 ) could have significantimpact on coal production and distribution, if enacted. When Clear Skies was introduced in the 108thCongress, the Environmental Protection Agency (EPA) conducted an analysis of its effects on thecoal industry. While the analysis indicated growth in coal production for electric utility production(from 905 million tons in 2000 to 998 million tons in 2020), coal generation's share of the 2020generation mix was projected to decline from 46% to 44%. Clear Skies legislation, however, facesan uncertain future. In March 2005, the Senate Environment and Public Works Committee killed S.131 on a 9-9 vote.
In FY2002, President Bush initiated the Clean Coal Power Initiative (CCPI) focusing onadvanced coal combustion technology for removal of SOx, NOx, mercury, and fine particulatematter and carbon sequestration. The CCPI is a 10-year, $2 billion government-industry cost sharingprogram. The FY2006 funding request for Fossil Energy R&D is heavily weighted towards cleancoal technology, potentially at the expense of other fossil technologies -- such as natural gas orpetroleum technology R&D.
Legislation in the 109th Congress for an omnibus energy bill ( H.R. 6 ) wasapproved by the House on April 21, 2005. H.R. 6 includes provisions for coal nearlyidentical to the H.R. 6 conference report filed in the 108th Congress. Within the CCPIsection there would be loan guarantees for specific integrated gasification combined cycle projects. The Senate Committee on Energy and Natural Resources approved its version of the bill( S. 10 ) on May 26, 2005.
Authorization for collection of AML fees was scheduled to expire at the end of FY2004 andwas extended nine months to the end of June 2005 by the Consolidated Appropriations Act for 2005( P.L. 108-447 ). Subsequently, H.R. 1268 ( P.L. 109-13 ) a supplemental appropriationsbill for FY2005, extended AML authorization to the end of FY2005. In its FY2006 budgetsubmission for the Office of Surface Mining, the Administration once again proposed the changesin the AML program included with the FY2005 budget, this time seeking a $58 million increase inthe appropriation for the fund. This report will be updated.