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Cogen plant hopes for tax break from state

For decades, coal was king in Carbon County.

But as mining operations shut down, the once pristine earth was left barren, with gaping holes and uninhabitable lands.Coal piles, commonly called culm banks, dotted the landscapes of many communities throughout the region, polluting waterways and creating an appearance of desolation, instead of life.Over the last nearly three decades, Panther Creek Power Operating LLC in Nesquehoning has taken these piles, created electricity and helped reclaim hundreds of acres into the beauty that Pennsylvania can be.On Thursday, representatives from Panther Creek approached the Carbon County Commissioners to urge them to sign a resolution supporting the enactment of the Coal Refuse Energy and Reclamation Tax Credit bill.House Bill 1370 aims to amend the act of March 4, 1971, known as the Tax Reform Code of 1971 to help cogeneration plants that use waste coal to reclaim lands once impacted by coal mining.Benefit of the plantVincent J. Brisini, director of environmental affairs at Olympus Power LLC in Johnstown, which oversees operations at Panther Creek, spoke on behalf of the company."The energy industry here provides benefits to Pennsylvania in the form of both economic and environmental areas," he said."What's unique about the coal refuse to energy process is it removes the material (waste coal), burns it to make electricity and then takes the resulting beneficial use ash and remediated and reclaims mine affected sites."He noted that if cogeneration plants like Panther Creek were to close, reclamation would cost the state approximately $16.1 billion.In addition, the process cuts down on the possibilities of mine fires in culm banks and helps the communities because it removes mine acidic fluid from the lands and recreates green space."The legislation would provide a tax credit of $4 per ton of coal refuse that is used annually," Brisini said, adding that to qualify the facility must use meet certain criteria, including having a fluidized combustor, have certain pollution control equipment installed and use at least 50 percent of the resulting ash to reclaim mine affected lands."The tax credit is necessary to help facilities such as Panther Creek to continue to operate," he said.Matthew Cochran, asset manager at Panther Creek, said that the company's business model reaches an approximate 65-mile radius from Nesquehoning."In Carbon and Schuylkill, we are getting about 300,000 to 400,000 tons a year of waste coal and taking it, consuming it and using about 300,000 tons of ash to remediate per year."Our business model is to run this plant another 40 years, but in order to do this, this tax credit is needed and will allow us to move forward."Nesquehoning Mayor Samuel Kitchko, who also serves as the Nesquehoning Conservation Club secretary/treasurer; and borough council President David Hawk, who also is a borough water authority member, spoke about the benefits of having this operation in the town. Both Kitchko and Hawk are also 23-year employees of Panther Creek."Twenty years ago, the creek that runs through Nesquehoning was called the Black Creek because sewage ran into the creek, as well as runoff from the culm banks," Kitchko said. "Since the sewer project went in about 20 years ago and the cogen plant came in and reclaimed the biggest culm bank in the borough, it doesn't have that runoff. It is cleaned up to the point where the Pennsylvania Fish and Boat Commission stock trout now. The plant is doing a good job."As far as Nesquehoning goes, we collect taxes from the company. It's a business that has been good to the community and this will help them stay here."Hawk noted that in addition to the benefits Kitchko outlined, Panther Creek has been a committed member of the community, donating to the local police department, EMS services, area nonprofit organizations and recreation initiatives, as well as patronizing local businesses.The commissioners thanked the group for coming to the meeting. They then voted to approve the resolution asking the state to pass the bill to support cogeneration plants through the tax credit.

Panther Creek Power Operating LLC in Nesquehoning burns coal refuse to create electricity. Carbon County Commissioners, on Thursday, voted to urge lawmakers to support House Bill 1370, which would provide a tax credit to cogeneration plants working to use coal refuse. TIMES NEW FILE PHOTO