Committee hears bill proposing $13/ton coal transport fee to fund coal dust clean-up, asthma treatment

Delegate Stein presented House Bill 1088 (Coal Dust Cleanup and Asthma Remediation Act) to the House Environment and Transportation Committee on March 11, proposing a $13 per short ton fee on coal transported through Maryland. The sponsor said the fee could generate as much as $300 million annually and that roughly 80% of the revenue would be paid by exporters.

The bill would direct revenue to a fossil fuel mitigation fund that allocates 40% to overburdened and underserved communities along coal transportation routes, and would dedicate $5 million each year for asthma treatment programs. Other proposed uses include home energy efficiency and electrification, mass transit, electric vehicle and school bus adoption, and funding for the Maryland Clean Energy Center (MCEC) to leverage private capital.

Supporters said coal dust from open rail cars and coal piles has longstanding health impacts in communities such as Curtis Bay and areas along CSX rail lines. Kim Coble of the Maryland League of Conservation Voters and public health witnesses described high asthma rates and local monitoring that shows coal dust and higher particulate concentrations downwind of coal terminals. Johns Hopkins researchers testified they measured particulate and black carbon increases when wind carried emissions from coal yards into neighborhoods and that scanning electron microscopy confirmed coalaceous particles at fence lines.

Delegate Stein cited an independent analysis by University of Maryland Center for Environmental Science researchers that found the $13 fee is less than average additional transportation costs exporters would incur by diverting shipments to Virginia. The committee heard from the Maryland Clean Energy Center, which said it could leverage public funds to attract private investment for climate projects.

Opponents including CSX Transportation, Core (Consol/Arch Resources successor) and the Baltimore Port Alliance said the fee would harm the Port of Baltimore's competitiveness and could prompt exporters to shift volumes to Virginia, resulting in severe local economic impacts and job losses. CSX argued the fee would be preempted by federal railroad statutes and that long'distance interstate commerce should not be taxed by states.

Committee members asked about potential Commerce Clause and preemption challenges and whether the fee would actually divert coal to other ports. University of Maryland researchers testified that coal from Northern Appalachia is unlikely to divert because the additional cost of rerouting averages about $27 per short ton (greater than the proposed $13 fee), while some Central Appalachian volumes might divert to Virginia. Several members also questioned the fund's distribution (why $5 million for asthma and 40% for overburdened communities) and whether fee proceeds would reach rural coal'producing counties that also bear economic consequences.

The committee did not take a vote at the hearing. The bill attracted broad and divided testimony from public health experts, community residents, energy and port industry representatives, and economists.