MATTHEW BROWN Associated Press Writer COLSTRIP
Beneath the towering smokestacks of the state's largest single producer of greenhouse gases the Colstrip coal-fired power plant Montana lawmakers this week began to unravel the daunting legal and economic questions raised by the state's drive to mi t igate cl imate change. Neutralizing emissions by capturing carbon dioxide from smokestacks and storing it underground, in vast geological formations, has emerged as a favored solution to the global warming quandary. But how to translate that strategy into action remains largely unsettled from who would be liable if the stored gas leaked into the atmosphere, to whether it should be regulated as pollution, a hazardous waste or even a commodity. "It's important as a state that we get in front of this and identify our problems, as well as for the industries of our state to figure out a way they can keep producing electricity," said Republican state Rep. Duane Ankney of Colstrip. Future federal caps on carbon dioxide emissions are considered inevitable by policy makers in Montana and other states. Eight northeastern states have adopted such r e s t r i c t i o n s vo l u n ta r i l y. Meanwhile, energy use in Montana and around the globe is projected to continue to grow raising the stakes for finding a way to reconcile those divergent trends. Over two days of meetings, Ankney and other legislators f r om t h e En e r g y a n d Telecommunications Interim Committee confronted a tangle of issues that stem from the plan to capture and store carbon dioxide, a byproduct of burning fossil fuels that is considered the prime factor in global warming. On the regulatory side, divisions between state agencies already have emerged, over whether carbon should be handled as hazardous waste or a benign commodity. That's likely a prelude to arguments that c o u l d o c c u r wh e n t h e Legislature attempts to craft laws on the issue in its 2009 session. On Friday the energy committee heard from Department of Environmental Quality representatives who said they view carbon dioxide as potentially hazardous pollution. Bonnie Lovelace, the agency's water protection bureau chief, said mercury present in carbon dioxide that is removed from smokestacks could taint groundwater supplies. If an underground storage chamber leaked, she said the gas could kill nearby livestock. A different view was offered by Montana Oi l and Gas Conservat ion Commission administrator Tom Richmond. He pointed to the long-standing use of carbon dioxide to boost production in declining oil fields. In North Dakota, Wyoming, Texas and other states, carbon dioxide from power plants and natural sources is bought and sold as a commodity, to be pumped into old fields to push out remaining reserves of oil. That use of the gas has been proven safe over 35 years of the practice, said Richmond, adding that regulators should treat it as a commodity. "Bottom line," said Lovelace, "is there is no regulatory regime right now related to carbon capture and storage." An even larger unknown in the carbon debate is who will cover the enormous costs involved. Montana's total greenhouse gas production is relatively small compared to other states, accounting for less than 1 percent of national emissions. Yet at Colstrip alone, the equipment costs for removal and storage of the 18 million tons of carbon dioxide produced annually by the plant is staggering: from $430 million to $1.7 billion. Because of the energy intensive nature of that process, operating costs could tack on an additional $417 million to $900 million every year, said Gordon Criswell, environmental manager for PPL Montana, which runs the 2,200 megawatt coal plant. By comparison, the federal government will spend just over $100 million nationwide this year on research and development of carbon capture and storage, said William Purvis, spoke sman fo r the U.S. Department of Energy. Ankney, the Colstrip legislator, said any increased costs born by Colstrip or other plants would likely be passed to consumers. He cautioned that before policy makers commit to new regulations for industry, they should first consider the potential to store more carbon naturally, through changes in agricultural and forestry practices take advantage of the use of carbon dioxide by plants. "We've also got to look at conservation," Ankney added. "My God, look at the truck I drive. It's a 2001 three-quarter ton Chevy pickup ... But is somebody going to tell me to
