Fact Sheet: Longview Power Proposed Gas-Fired Power Plant

What is Longview proposing?

Longview Power proposes to construct a 1200-MW gas-fired power plant in Monongalia County on 54 acres adjacent to their existing coal-fired plant near Fort Martin. They also propose adding a 20-MW solar farm to cover 127 acres on lands to the north of that site. Gas would be supplied by a 20-inch diameter pipeline from the TransCanada line in Pennsylvania1. New roads, water lines and transmission lines would also be needed.

What else does Longview want?

Longview is also requesting a Payment In Lieu Of Taxes (PILOT) Agreement with Monongalia County2. The proposed 30-year PILOT has not yet been approved, but would reduce Longview’s property taxes by over $200 million3.

Doesn’t Longview already have a PILOT Agreement?

Longview has a PILOT Agreement for the existing coal-fired plant (Longvew I). This 30-year PILOT provided $108 million to Monongalia County. The coal-fired Longview I plant is rated at 695 MW, so the proposed 1200-MW plant (Longview II) is almost twice as large. Longview proposes to pay only $58,222, 513 under the proposed new PILOT for Longview II.

What are the environmental impacts?

While the air pollution emissions include 282 tons nitrogen oxides, 552 tons VOCs, and 175 tons fine particulates, and others pollutants each year, the emissions of over 3 million tons of greenhouse gases will be an important impact that is currently unregulated1. Gas-fired power plants often claim that greenhouse gas emissions are reduced, however this ignores all the upstream emissions of methane associated with well drilling, pipelines, compressors, etc.

The Intergovermental Panel on Climate Change recommends that, to prevent global temperatures from rising more than 2 C, there must be a rapid reduction in greenhouse gas emissions. Numerous scenarios are possible, but all involve rapid reductions in emissions of fossil fuel carbon, at least 50 % reduction by 2030, and almost all fossil fuel emissions must end by 2050.

How can this be achieved?

Technologies called Carbon Capture and Sequestration (CCS) can capture the carbon dioxide from the exhaust stream, concentrate it, and pump it deep into the Earth, where it will remain indefinitely. Such technologies are already being used in some areas to enhance oil production. But the cost of retrofitting a plant is high, and the energy demand reduces the efficiency of power plants.

Use of biomass fuels is one alternative that recycles carbon dioxide in the air through photosynthesis, so no net emissions of carbon dioxide occurs. But if biomass fuels are used in power plants with CCS, the net effect is to remove carbon dioxide from the air. Currently, this is costly, but would become competitive if a carbon tax or cap and trade program were implemented.

Will the Longview II plant be economically competitive?

That depends on whether the electricity is needed. Under current market conditions, electricity from gas-fired power plants is cheaper than from coal. However, demand for electricity is not growing, so new generation facilities will compete directly with existing power plants. Longview’s economic analyses assume that electricity markets will remain stable, and ignores the need to address climate change. If greenhouse gas emissions are restricted, power plants may need CCS to remain compliant. Alternatively, as renewables become cheaper, even gas-fired plants may not be competitive.

References:

1. PSC. Joint Application of Longview Power…. (Siting Certificate). Case # 19-0890-E-CS-CN. Available at: http://www.psc.state.wv.us)

2. Longview. 2019. Non-Binding Term Sheet – Longview Expansion Project. Sept. 11, 2019. Submitted to Monongalia County Commission.

3. Boettner, T. 2019. PILOT Agreements Cost State Millions in Tax Revenue: An In-Depth Look at Longview Power Plant. WV Center on Budget and Policy. Available at: https://wvpolicy.org/pilot-agreements-cost-state-millions-in-tax-revenue-an-in-depth-look-at-longview-power-plant/

Position Statements Regarding Proposed PILOT Agreement for Longview II and III

The Monongahela Group of Sierra Club supports renewable energy sources and a rapid phase-out of the burning of fossil fuels. We oppose hydraulic fracturing for natural gas and new fossil fuel infrastructure. If the proposed Longview Power II gas-fired power plant is to be constructed it must reduce greenhouse gas emissions and environmental damage as much as possible by incorporating use of carbon capture and sequestration and biofuels.

As it considers tax breaks for this facility, the Monongalia County Commission must include the following:

The Monongalia County Commission should insist on carbon capture and sequestration for the proposed Longview II gas-fired power plant. Failure to consider the need for a carbon-constrained economy means the Longview II plant is unlikely to remain open for its operational lifetime.
In the absence of carbon capture, the Monongalia County Commission should insist on separate PILOT Agreements for the Longview II and Longview III facilities. The economic outlook for a solar farm is much more favorable over the long term than for fossil fuel facilities.
The Monongalia County Commission should consider the potential for the Longview II facility to adversely affect competitiveness of the Fort Martin power plant. There is significant oversupply of electric generation in the PJM area, and additional facilities will almost certainly constrain the ability of Fort Martin to compete. The Mon County Commission should carefully consider the implications of offering tax exemptions to one facility that may directly compete with other tax-paying facilities. Even if Fort Martin does not close immediately, captive ratepayers for Mon Power may see increased electric rates to cover the increased costs of operating Fort Martin, and mine workers may see reduced hours of operation. While these changes are inevitable in a carbon-constrained economy, exacerbating these economic strains in order to provide incentives to another fossil fuel plant is short-sighted.
The Monongalia County Commission should require economic analyses of the proposed Longview II plant that consider the long-term costs of greenhouse gas emissions. Realistic estimates of the economic impacts of greenhouse gas emissions are in the range of $50-75 per ton. Analyses that do not consider this cost of carbon implicitly assume the cost is zero, a number everyone knows is wrong.
The Monongalia County Commission should consider the potential for methane from biofuels to be used at the proposed Longview II facility. If coupled with carbon capture and sequestration, this could result in a facility that generates net negative greenhouse gas emission. The UN Intergovernmental Panel on Climate Change has determined that such technologies will be essential to meet goals of the Paris Climate Agreement and to keep global temperature increases below 2 C. Such a Bio-energy facility would assure a lifetime of operation for the Longview II facility.
The Monongalia County Commission should pro-rate any PILOT Agreement to the actual construction cost of the facility. When the Commission negotiated the last PILOT with Longview, Longview low-balled their cost estimates. In 2004, they claimed that plant would cost around $940 million, and that first PILOT was based on that estimate. The actual cost was over $2.2 billion, more than double the value used to negotiate the first PILOT. The County Commission needs to be very skeptical of any estimates proposed by Longview, and make sure that payments are proportional to the actual cost of the facility. This would give an incentive to Longview to be more realistic in their budgeting, and would be more fair to every other taxpayer in Mon County.

Prepared by the West Virginia Chapter of Sierra Club

PO Box 4142, Morgantown, WV 26504

Longview Power proposes 1200MW gas-fired power plant

Jim Kotcon

Longview Power, LLC proposes to construct a 1200-MW gas-fired power plant in Monongalia County on 54 acres adjacent to their existing coal-fired plant near Fort Martin. They also propose adding a 20-MW solar farm to cover 127 acres on lands to the north of that site. Gas would be supplied by a 20-inch diameter pipeline from the TransCanada line in Pennsylvania. New roads, water lines and transmission lines would also be needed.

Longview is requesting a Payment In Lieu Of Taxes (PILOT) Agreement with Monongalia County. The proposed 30-year PILOT has not yet been approved, but would reduce Longview’s property taxes by more than $200 million.

Longview received a PILOT Agreement for the existing coal-fired plant (Longview I) in 2004. That 30-year PILOT provided $108 million to Monongalia County. The coal-fired Longview I plant is rated at 695 MW, so the proposed 1200-MW plant (Longview II) is almost twice as large. Longview proposes to pay just over $58 million under the proposed new PILOT for Longview II.

While the air pollution emissions include 282 tons nitrogen oxides, 552 tons VOCs, 175 tons fine particulates, and other pollutants each year, the emissions of over 3 million tons of greenhouse gases will be an important impact that is currently unregulated. Gas-fired power plants often claim that greenhouse gas emissions are reduced; however, this ignores all the upstream emissions of methane associated with well drilling, pipelines, compressors, etc.

The Intergovernmental Panel on Climate Change recommends that, to prevent global temperatures from rising more than 2 o C, there must be a rapid reduction in greenhouse gas emissions. Numerous scenarios are possible, but all involve rapid reductions in emissions of fossil fuel carbon, at least 50% reduction by 2030, and almost all fossil fuel emissions must end by 2050. These scenarios seem fundamentally incompatible with new gas-fired power plants.

Our Position:

The Monongahela Group of Sierra Club supports renewable energy sources and a rapid phase-out of the burning of fossil fuels. We oppose hydraulic fracturing for natural gas and new fossil fuel infrastructure. If the pro-posed Longview Power II gas-fired power plant is to be constructed it must reduce greenhouse gas emissions and environmental damage as much as possible by incorporating use of carbon capture and sequestration and biofuels.

What you can do:

File a Letter of Protest with the WV Public Service Commission. Ask that the Certificate of Site Approval be denied unless Longview installs carbon capture to reduce emissions of greenhouse gases. Be sure to include the reference to Case # 19-0890.

Mail letters to: Connie Graley, Executive Secretary, West Virginia Public Service Commission, 201 Brooks Street, Charleston, WV 25301.

Or file comments Protesting Case Number 19-0890 on line at: http://www.psc.state.wv.us/scripts/onlinecomments/default.cfm

Attend the Public Hearing. The PSC will hold a public hearing on Monday, Jan. 6, 2020 at 5:30 PM at the Monongalia County Courthouse, 243 High Street, Morgantown. You can present your comments in person at that time.

Longview proposes to get its gas from a Transcanada pipeline crossing southern PA and West Virginia’s Northern Panghandle. When it opened in January, 2018, the company insisted it was safe, but a landslide and explosion six months later is depicted below. Approximately ten acres were incinerated.