Article published Jan 18, 2008

Schweitzer shares ideas on proposed plants and energy issues

By PETER JOHNSON

Tribune Staff Writer

Gov. Brian Schweitzer said Thursday that he is skeptical whether the proposed coal-fired generating plant east of Great Falls will ever be built and declined to say whether he supports it.

The Democratic governor told the Tribune Editorial Board that he "absolutely" supports a coal-to-liquid-fuel plant proposed for Malmstrom Air Force Base because it would generate hundreds of ongoing jobs with very few emissions.

Schweitzer said he has taken no stand on the more conventional Highwood plant, but noted that the State Department of Environmental Quality has issued a permit for the plant.

"Very few traditional coal plants announced in the last three years will be built," he said. "The reason they're canceling them nationwide is they're unable to get financing because there is concern about the possible consequences of a carbon tax."

Schweitzer predicted no action will be taken to complete such power plants until Congress passes a law clarifying what should be done with carbon emissions.

However, he said he agreed with a recent 5-1 ruling by the Montana Board of Environmental Review rejecting arguments by the Montana Environmental Information Center and Citizens for Clean Energy that the state should require the developer of Highwood Generating Station proposed near Great Falls to limit emissions of carbon dioxide.

Carbon dioxide, a greenhouse gas some scientists say contributes to climate change, currently isn't a regulated pollutant.

Schweitzer said he's a strong proponent of efforts to develop technology to capture and store carbon and is supporting regional efforts that "decrease our carbon footprint." But if the board had required carbon controls at Highwood Generating Station, Montana would have been the only state in the nation taking such action, he said.

"We can have a greater influence working in a regional way," Schweitzer said.

The governor took partial credit for the Air Force's proposal to have a private developer build a large coal-to-liquid fuel plant at Malmstrom. He said Air Force officials made the suggestion after hearing him advocate clean-coal technology at a conference in New York. They realized Montana had coal, Malmstrom had unused land and was looking for a second mission and the Defense Department needed to wean itself from imported oil, he said.

Schweitzer agreed with local officials that federal subsidies will be needed to build such an expensive plant, with an estimated price tag of more than $1 billion, adding the state would consider making land swaps to aid the project.

The Air Force has scheduled a Jan. 30 public meeting to discuss the coal-to-liquid plant proposal and a closed Jan. 31 "Industry Day" to show potential business developers and financiers the proposed site's assets.

On other topics, Schweitzer:

Defended and expanded upon his controversial statement that education leaders should not expect another big funding increase and that school districts should find ways to save money.

Schweitzer had charts showing that both K-12 and university funding had increased more under his administration than any other in 15 years. He said the increases came partly because of a successful lawsuit by K-12 supporters who said the school system was underfunded but also because he felt education increases would help the state grow economically.

The governor said that some of those spending gains were offset by declines in students, since funding is based largely on enrollment.

Schweitzer said he will have trouble justifying further increases to the Legislature unless school districts can prove they've been efficient in focusing most of their spending on classroom teaching and taking steps to reduce energy costs.

Said his administration got the jump on recent national suggestions that Congress stimulate the economy to avert recession by providing tax rebates. At Schweitzer's urging, the 2007 Legislature used part of the state budget surplus to give $400 tax rebates to homeowners.

"More than 40 states are recognizing declining revenue," he said. "But we think Montana is doing OK. Maybe we were ahead of the curve."

Projections remain solid for Montana's wheat, cattle, oil and gas and mineral products, he said, and construction is still going strong across the state despite concerns about the industry on a national level.