In a peculiar move, coal companies were successful Monday in pushing a bill through the Kentucky legislature that will increase the fees they pay to apply for mining permits.
Gov. Steve Besehar said he intends to sign the legislation that will cost coal companies an additional $800,000 a year.
The money would be used to help pay the operational costs of the Kentucky Division of Mine Permits, including the hiring of staffers to speed up the permitting process. The Beshear administration and coalfield lawmakers joined with the coal industry to pass the measure that they said would allow new coal mines to create jobs for unemployed Kentuckians.
The legislation takes effect as soon as the governor signs it.
"I am pleased that the industry, the administration and the General Assembly were able to work together to increase the number of coal mining permit applications that can be reviewed during these tight budgetary times," Beshear said.
Kentucky Coal Association President Bill Bissett hailed the legislation as "a clear public-private partnership to make certain the state has the funds it needs to accomplish its mission."
The environmental group Kentucky Resources Council had warned that expediting the permit process would result in the opening of more mines, which could overwhelm the state inspectors responsible for enforcing safety laws and regulations.
But this can happen only when there is a barrier to entry, and the increased cost breaks down that barrier.
