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P R I M E R

Climate Action Moreland

June 2015

2 REPLACE HAZELWOOD PRIMER

P R I M E R

• TheVictorianGovernmenthasexpressedadesire(thoughitdoesnotyethaveapolicy)forasignificantexpansionofrenewableenergyinVictoria.Thishaswidespreadcommunitysupportandmustbedonequicklyandatalargescalebecauseclimatechangeisalreadydangerous.ScientistswarnthattwodegreesCelsiusofwarmingcouldoccurinjusttwodecades,sopreservingasafeclimateandahealthyfuturerequiresrapidde-carbonisation.

• Expandingrenewableenergyrequirescoal-generatingcapacitytoberemovedfromthemarketbecauseoversupplyiscrowdingoutandpreventingnewinvestment.TheAustralianenergymarketoperatorsaysthereareabouteightgigawattsofsurplusgeneratingcapacityacrossthenationalmarket,equivalenttofiveHazelwoodpowerstations.Thisincludesupto2.2gigawattsofbrowncoalgenerationthatisnolongerrequiredinVictoriain2015,whichisgreaterthanHazelwood’scapacity.Powercompanieshavebeenlobbyinggovernmentforcapacitytobereduced,andseniorVictorianenergydepartmentbureaucratsareawareof theneedtoclosecoalpowerstationsinordertorolloutrenewables.

• TheVictorianGovernmenthascommittedtobeingaleaderonclimatechange.Closingdownexcesscoalgenerationisakeytestofthegovernment’sclimatecredentials.Coal-firedpowerstationsaretheworld’slargestsourceofplanet-warmingcarbondioxideemissions.VictoriacannotmakethenecessaryemissionsreductionswithoutaddressingtheoperationsofHazelwoodand/orYallournpowerstations.

• Hazelwoodpowerstationisold,unsafeanddirty.

Basedonemissionsintensity,itisthethird-dirtiestcoalpowerstationintheworldandthedirtiestinAustralia,releasingaround16milliontonnesofgreenhousegasesannually,almostthreepercentoftotalAustraliangreenhouseemissions.TheHazelwoodmajorityowner,Engie(formerlyGDFSuez),ownsthethird-mostpollutingcoal-powerstationfleetintheworld.Thefull–healthandcarbonpollution–socialcostsofHazelwoodtotalling$900millionperyeararebornebythecommunity,ratherthantheplant’sowners.

• AsteadystreamoflocaljobscanbecreatedintheLatrobeValleywiththerehabilitationofminesanddecommissioningofplant,whichwillrequireasignificantworkforcestretchingwelloveradecade.TheLatrobeValleyneedsastrongjobspackageandaneconomictransitionplanandnewindustriesbecausethemovefromcoaltocleanwindandsolarrenewableenergyisnowbothurgentandinevitable.

• Hazelwoodpowerstationandmineareahealthhazardtolocalresidents,exemplifiedbytheautumn2014minefire.TheownersofHazelwoodhaveabusedtheirsociallicenceandforfeitedtherighttoprofitfromapowerstationthatisnowamajorhealthhazard–bothtolocalpeopleandtoallpeopleswhofacetheuncertaintiesoflivinginahotterandmoreextremeclimate.

• InJuly2010,theVictorianLaborgovernmentpromisedtostartshuttingHazelwoodandpassedclimatelegislationprovidingthereservepowertoregulateemissionsfromexistingbrowncoal-firedgenerators.Restoringthegovernment’scapacitytoregulateemissionswouldbecomplementarytoactionsbeingtakenbyothergovernments,includingintheUnitedStatesandEurope.

SUMMARY

ReplaceHazelwoodPrimeriswrittenbyDavidSprattandproducedbyClimateActionMoreland.www.climateactionmoreland.orgwww.facebook.com/groups/climateactionmorelandThankstoJohnEnglartforphotos.June2015v1

REPLACE HAZELWOOD PRIMER 3

HAZELWOOD POWER STATIONHazelwoodPowerStation(HPS)wasbuiltbetween1964and1971,andcomprises1542megawatt(MW)ofcapacityovereightgenerators.ItwasprivatisedbytheVictorianLiberalPartyKennettgovernmentin1996for$2.35billion.

IfHPShadstayedinpublichands,itwouldlikelyhavebeendecommissionedin2005,butin2004theBracksLaborgovernmentextendeditsoperationstill2031,allowingHazelwoodtomovearoadandarivertoaccess43milliontonnesofbrowncoaldepositsinarealignmentofthemininglicenceboundaries.Theownershavea30-yearmininglicencedueforrenewalin2026.

HPSandthelandonwhichitoperatesareownedbytheHazelwoodPowerPartnership.Since7June2013,thefourpartnershavebeensubsidiariesofInternationalPower(Australia)HoldingsPtyLtd.ThiscompanyisinturnjointlyownedbysubsidiariesofEngie(formerlyGDFSuezSA)(72percentownership)andMitsui&CoLtd(28percentownership).EngieisaglobalenergycompanywithcorporateheadquartersinFrance.Mitsui&CoLtdisaglobaltradingcompanywithcorporateheadquartersinJapan.

CurrentlyHPSproducesmorethan10,ooogigawatthours(GWh)ofenergyannuallyandissuppliedwithupto18milliontonnesofcoaleachyearfromtheadjacent

Hazelwoodmine,releasingaround16milliontonnesofgreenhousegasesannually.TodayHPSprovidesapproximately21percentofVictoria’sbaselineelectricitysupply.

POLLUTIONEmissions intensity:In2010,HPSwaslistedbyTheClimateGroupasbeingthesecondlargestpowerstationemitterofcarbonpollutioninAustraliabytotalvolume,butwiththehighestemissionsintensity.1TheClimateGroupestimatedthatin2010HPSemitted15.7milliontonnesofcarbondioxideequivalentgreenhousegases,whichis2.8percentofAustralia’stotalcarbondioxideemissions,and9percentofAustralia’stotalcarbondioxide(CO2)fromelectricitygeneration.ArecentenvironmentalreportreleasedbytheEUEnergyCommissionfoundthatbasedonCO2emissionsperunitofoutput(asof2013),Hazelwoodisthethirdmostpollutingthermalpowerplantintheworld.2HPSwaslistedastheleastcarbonefficientpowerstationintheOECDina2005reportbyWWFAustralia,withCO2intensityof1.58tonnesofcarbondioxidepermegawatt-hour(t/MWh),makingit“themostpollutingofallpowerstationsoperatingintheworld’smajorindustrialisedcountries”.3Morerecently

Photo: John EnglartPhoto: John EnglartPhot

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CLIMATE CHANGE AND COAL EMISSIONSAustraliaistheworld’slargestpercapitaemitterofgreenhousegases.

AccordingtothePitt&SherryCedexreport,carbonemissionsfromAustralia’smainelectricitynetworktotheendofFebruary2015hadincreasedbyanannualrateof4.1milliontonnescomparedwiththeendofJune2014,whentheAbbottgovernmentscrappedthecarbonprice.Overthesameperiod,theshareofblackandbrowncoalintheenergymixoftheNationalElectricityMarketincreasedto74.9percentcomparedto72.9percentinJuly2014,andisclosinginonthe75.1percentshareheldbeforethecarbontaxbeganinmid-2012.4

Recentresearchhasdemonstratedthattheglobalcarbonbudgethasexpiredifwewishtokeepglobalwarmingto2degreesCelsius(2C°),itselfadangerouslyhightarget.5Thatis,noadditionalemissionsarerequiredtopushtheplanetto2C°ofwarming,assoonastwodecadesfromnow.6InAustralia,2C°ofwarmingwouldresultinthesalinationofKakadu,thelossoftheQueenslandwettropicsrainforestsandthelossoftheGreatBarrierReef,aswellasasea-levelriseinthetensofmetres.2C°ofwarmingisconsideredtobetheboundarybetweendangerousandverydangerousclimatechange.

Globalactionatemergencyspeedisessentialtodrivearapidtransitionfromdirtyfossilfuelstocleantechnologiesandrenewableenergy.Replacingthefossilfuelindustryisnowapressingpriority.Thetidemaybestartingtoturnagainstcoalandfossilfuels,butprofitableexistingcoalinfrastructuresuchasAustralia’sbigbrown-coalgeneratorswillnotclosethemselvesdown.

theAustralianEnergyMarketOperator(AEMO)hasstateditsemissionsintensityat1.52t/MWh.7PollutionfromHazelwoodincreased2.7percentfrom1998to2004,despiteinvestmentin“cleaningup”thefacility.

Water:In2005,1.31megalitresofwaterwasconsumedpergigawatt-hourofpowergeneratedatHazelwood.Thataddsupto27billionlitresayear,whenwaterusedinthemineisincluded.8

Pollutants:Ina2012-2013report,theNationalPollutantInventory(NPI)measuredthepowerstation’sannualpolychlorinateddioxinsandfuransemissionsat0.0016kg;arsenic,cadmiunandcompounds95kgs;mercuryandcompounds450kgs;hydrochloricacid8millionkgs;oxidesofnitrogen25millionkgs;sulphuricacid13millionkgs;particulatematter2.5μm550,000kgs;andboronandcompounds110,000kgs.9

Asbestos:A2001VictorianStateGovernmentstudyfoundtherateofpleuralandperitonealmesotheliomaamongpowerindustryworkerswasseventimesthenationalaverage.LatrobeValleypowerindustryworkersdie15yearsyoungerthanthenationalaverage.ThepowerstationsoftheLatrobeValleyusedasbestoswidelyintheirconstruction.ThesubstancewasbannedinVictoriain2003.However,it’sestimatedthat146,000employeesandcontractors,whoworkedinStateElectrictyCommissionofVictoria(SECV)plantsfrom1921tothe1980s,wereexposedtoit.Between1976and2008,$52.6millionwaspaidtoformerSECVemployeesbytheStategovernmentinsuranceauthority,anditisexpectedafurther$369millionwillpaidoutbytheVictorianManagedInsuranceAuthoritytoformeremployees.InJune2010,theEPAconfirmeditwasinvestigatingreportsoneofHPS’ssmokestackscontainedasbestos.10

Breaches:InNovember2009,EnvironmentVictoriareleasedInternationalPower’s2009Statement of

Complianceinwhichthecompanyrevealedthatithadbreachedfourofthe22conditionsofitsEnvironmentProtectionAuthoritylicence.Thegroupalsoreportedthatthecompanyhadbreacheditslicenceconditionsin2007and2008.EnvironmentVictoriasaidthebreaches:

relatetowaterqualityindischargesfromtheplant’scoolingpondtotheMorwellRiver;dustandparticulatelevels.Thereportsalsooutlinethatenvironmentaltargetsrelatingtogaseousemissionsfromthesmokestacks,includingcarbonmonoxide,sulphurdioxideandsulphurtrioxidewerealsoexceeded.

EnvironmentVictoriaaddedthat:“onseveraloccasionswhentheplantexceededitslicencelimits,theEPAgrantedthecompanyanemergencyapprovaltopollute,protectingInternationalPowerfromprosecutionunderenvironmentallaws.”11

SOCIAL COSTThefullsocialcostofHazelwood–healthandcarbonpollutioncosts–is$900millionperyearaccordingtoarecentlyreleasedreportfromHarvardUniversityresearchers.12ThesecostsarebornebytheLatrobeValleycommunity(health)andglobalcommunity(carbonpollution),ratherthantheplant’sowners.

Theresearch,promptedbythehealtheffectsofthe2014Hazelwoodminefire,calculatesthesocialcostsforeachelectricitygeneratorinVictoriaandhighlightstheimportanceofaccountingfortheseexternalisedcostswhenconsideringtheState’sfutureenergymix.Thereportconcludesbynotingthatafailuretopricetheenvironmentalandairpollutioncosts“isdistortingthemarketandpreventingashifttocleanergeneration.”

Thereportsauthorssay:

ThehistoricaldominanceofbrowncoalgeneratorslikeHazelwoodinVictoria’senergymarketisbasedontheirverylowprivatecosts,drivenbycheapandplentifulfuel

REPLACEHAZELWOODPRIMER5

EXCESS CAPACITY IN THE ELECTRICITY MARKETAEMO,theAustralianEnergyMarketOperator,reportedinits2014Statement of Opportunitiesthatthereispotentiallybetween7650MWand8950MWofsurpluscapacityacrosstheNationalElectricityMarket(NEM)in2014–15.Approximately90percentofthisisinNewSouthWales,QueenslandandVictoria.Itsaysmorethan7500MWofgenerationcapacitywouldneedtoberemovedfromthemarkettoaffectsupplyadequacyin2014-15.15

ThisisequivalenttoaroundfiveHazelwoodpowerstations.AEMOhasidentifiedupto2200MWofbrowncoalgenerationthatisnolongerneededinVictoriain2015.

ElectricityconsumptionintheNEMisforecasttodeclineoverthenextthreeyears,followinganaverageannualdeclineof1.8percentthatoccurredbetween2009–10and2013–14.TherehasbeenreducedresidentialandcommercialconsumptioninmostNEMregionsduetostronggrowthinrooftopphotovoltaic(PV)systeminstallations,ongoingenergyefficiencysavings,responsestohighelectricitypricesoverrecentyearsandretirementofsomeenergy-intensiveheavyindustry.In2013-14,rooftopPVresultsina2.9percentreductioninconsumptionfromthegrid.16

ReplacingHazelwoodwouldreduceexcesscapacityandhelprestoreinvestorconfidencetobuildnewcleancapacity,accordingtoRogerDargavilleoftheEnergyResearchInstituteatUniversityofMelbourne:

Hazelwoodrunsatanaverageofaround85percentcapacity,or1.4GW.Sothe1GWdecreaseindemandisclosetothetotalcontributionofHazelwood.Turningitoffwouldmoreorlesstakeusbacktothesupplyanddemandbalanceof2008.Thiswouldhavetheeffectofincreasingwholesaleelectricitypricesbyaround2c/kWh–returningpricestothelevelsseenbefore2008,andrestoringsomeinvestorconfidencetobuildnewandcleanercapacity.Evenwithoutnewcapacity,theeffectofshuttingdownHazelwoodandtheslackbeingtakenupbyexistinggeneratorsthathaveonaverage30percentloweremissions,wouldreduceCO2emissionsby5Mtperyear,orthreepercentofAustralia’selectricitysectoremissions.17

andlowoperatingcosts.However,thisisonlypartofthepicture,ignoringthesignificantexternalcoststhatthesegeneratorsimposetohumanhealth,theenvironment,climatechangeandpublicinfrastructure.InthispaperweestimatetruecostofHazelwoodin

bothprivateandsocialterms.Asexpected,wefindverylowprivateshortrunmarginalcosts,intheorderof$3/MWh.Wealsofindveryhighexternalcosts.Ourcentralcaseestimatesoftheexternalcostsofcarbonemissionsandairpollutantsare$64/MWhand$8/MWhrespectively.Thisgivesasocialmarginalcostof$75/MWh,andsocialaverageunitcostof$87/MWh,wellabovethecurrentVictorianwholesaleelectricitypriceof~$30/MWh.ThismeansHazelwoodimposesanexternaleconomiccostonAustraliansintheorderof$900millionperyear,andover$2.5billioninourhighcaseestimates.13

DrNicholasAberleofEnvironmentVictoriacommented:

Ithasbeenknownforalongtimethatburningcoalcauseshealthandenvironmentaldamage,butthisisthefirsttimeresearchhasattemptedtoquantifythatcostinVictoria.Themodellingshowsthatthelarge

powerstationsintheLatrobeValleyareresponsibleforcostsbetween$500mand$1.2beachinhealthandenvironmentaldamageeveryyear.”

InanopinioncolumninThe Age in2010,“WrongtodismissthedirtonHazelwood”,ProfessorintheSchoolofEarthSciencesattheMelbourneUniversityDavidKarolyestimatedthatsincetheHPSbeganoperatingin1971ithasemittedapproximately600milliontonnesofcarbondioxideandwouldcontributeafurther320milliontonnespriortoitscurrentlyscheduledclosuredateof2031.Karolyestimatedthatthisonepowerstation:

willcontribute0.01percentoftotalglobalemissionsfrom1970to2100.Giventhedirectlinkfromemissionsofgreenhousegasestoclimatechangeandsealevelrise,theemissionsfromHazelwoodcanbepinpointedasapartialcontributortofuturesealevelrise.Sincetheriseisconservativelyexpectedtoaffect100millionpeopleby2100,Hazelwood’s0.01percentcontributionwillcausetheannualfloodingofmorethan10,000peoplesomewhereintheworld.14

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Excess generation capacity in Australian (left) and Victorian (right) elecricity markets. AEMO data


THE MINE FIRE AND REHABILITATIONAfirecommonlyreferredtoastheMorwellcoalminefirestartedindisusedandpoorlyrehabilitatedsectionsoftheHPSopen-cutmineon9February2014andwasofficiallyconsideredcontrolledon10March2014.After45daysitwasdeclared“safe”.TheChiefOfficeroftheCountryFireAuthoritydescribedthefireas“oneofthelargest,longestrunningandmostcomplexfiresintheState’shistory.”ThemineandthefirewereextremelyclosetoresidentialareasofMorwell.18

TheStategovernmentanditschiefmedicalofficerwerereluctanttoactquicklyanddecisivelyinthefaceofverysignificantthreatstohealthofthe12,000residentsofMorwell,andinresponsetocompellingevidencecompiledbyresidentsandunions.Men,womenandchildrencomplainedofheadaches,bleedingnosesandbloodyeyes,coughing,breathingdifficulties,insomnia,lethargy,skinirritations,throat,eyeandearinfections,depression,agitationandanxiety.Somesymptomshavepersistedsincethefire,andthereconvenedroyalcommissionwillexamineconcernsaboutlong-termhealthimpacts.

Oneextensivestudy,publishedintheBritish Medical JournalinFebruary2014,foundthatatinyincreaseinannualexposuretoPM2.5fineparticulates(whichMorwellresidentsbreathedin)increasesriskofaheartattackby13percent,accordingtoresearcherDrGuiliaChiseroni.19

PM2.5particulatesduringthefireweremeasuredatlevelsupto28timesthesafestandard.

Twenty-threefirefighterslodgedclaimswithWorkCoverasaresultofattendingtheHazelwoodfire,while15receivedhospitaltreatment.Fourteenofthose15weretreatedinhospitalforcarbonmonoxidepoisoning,aswellas12HPSstaff.

Thereport20oftheinquiryintothefire(ABoardofInquiryintotheHazelwoodCoalMineFire,appointedon21March2014andreportingon29August2014)concludedthat:

ThecostbornebytheVictorianGovernmentforfiresuppressionactivitiesalonewasapproximately$32.5million,nottakingintoaccountthevalueofvolunteerlabourandcostsincurreddirectlybythecommunity.ThissumdoesnottakeintoaccountcostsincurredbytheEnvironmentProtectionAuthority,DepartmentofHealth,DepartmentofHumanServices,DepartmentofEducationandEarlyChildhoodDepartmentorLatrobeCityCouncil.TheCFAmayseektorecoversomeofitsfirefightingcostsfromGDFSuez.TheBoardestimatesthetotalcostbornebytheVictorianGovernment,localcommunityandGDFSuezexceeds$100million.

Theinquiryheardthatthegovernmentregulatorhadnocontactwiththeminemanagersaboutrehabilitationworksinthefiveyearsleadinguptothefire.

Theinquirygaveadamningassessmentofthemine’sfirepreparednessandresponse:• “GDFSuezwasnotadequatelypreparedforafireof

thekind,severityandcomplexityoftheHazelwoodminefire”;

• “insteadofplanningfortheworst,minemanagementhopedforthebest”;

• “allofthefactorscontributingtotheignitionandspreadofthefirewereforeseeable…yetitappearstheywerenotforeseen”;

• managementfailedtounderstandcomputermodelson8February2014showingsignificantfirethreattothemineand“failedtofullyappreciatetherisksfacing


Carbonintensityofelectricitygeneration. Thegreyshading

indicatesthezonearoundthe0.6t/MWhthreshold.EU27isthe27memberstatesoftheEuropean

Union. DatafromEnergy

Technology Perspectives 2014: Harnessing

Electricity’sPotential(IEA,2014).http://www.iea.org/Textbase/npsum/ETP2014SUM.pdf

themine”;• theinitialresponsetothefirewas“inadequate”and

therewasafailuretoactivatethemine’sEmergencyResponsePlanuntilmorethananhourafterthefirewasfirstreportedandmanagementfailedtoliaisewithemergencyservices,ortonotifytheCFAorrequestCFAresourcesforseveralhours;

• themine“lackedreadilyavailableequipment”;• “firefightingwassignificantlyimpededbythefact

thatthereticulatedfireserviceswatersystemor‘fireservicenetwork’didnotextendtolargesectionsoftheworkedoutareasoftheHazelwoodmine”;

• “firefightingeffortswerefurtherimpededbyfiredamagetothetwoSPAusNet66kVpowerlinesthatrunacrossthenorthernbattersofthemine”resultinginpowerlosstothetwomajorwaterpumpingstations,triggeringasignificantdropinwaterpressureinthefireservicenetworkandhamperingtheabilitytofillupfiretankerswithwater;

• “therewerenointernalback-uppowersupplygeneratorsattheHazelwoodmine”;and

• therewere“difficultiesanddelaysintryingtoaccessandnavigatethemine”.

Aswell,from1994–2007,“degradedorleakingpipeworkwasprogressivelyremovedfromthefireservicenetworkinworkedoutareasoftheHazelwoodmine”andhadnotbeenreplacedpriortoFebruary2014.Thisandothershortcomingsmeantthatthere“wasnopreventivemeasureinplacetoprotecttheworkedoutareasfromemberattack”.

Theinquiryreportsays:

ThestrongestcriticismtheBoardmakesofGDFSuezisitsfailuretoundertakeafireriskassessmentoftheworkedoutareasofthemine,includingacost/benefitanalysis.NotundertakingthisriskassessmentwascontrarytoarecommendationmadeafterthefireinthemineinSeptember2008.

Theinquiryconcludedthat:

InnotproperlyidentifyinghazardsassociatedwithafireintheworkedoutareasoftheHazelwoodmineandtheriskstotheMorwellandsurroundingcommunities,GDFSuezfellshortofitsobligationsunderOHSlaws.GDFSuezalsofailedtoadoptreasonablypracticableriskcontrolmeasurestoeliminateorreducethehealthandsafetyrisksassociatedwithafireintheworkedoutareasoftheHazelwoodmine.

Inaddition,atgovernmentleveltherewas“agapinregulationoftheHazelwoodmineinrespectoffireriskswiththepotentialtoimpactonMorwellandsurroundingcommunities,suchasthatwhichmanifestedin2014”.TheHazelwoodminefirewas“aforeseeableriskthatslippedthroughthecracksbetweenregulatoryagencies”andgovernmentagencies“didnotintervenedespitethesekindsofrisk[tothecommunity]beingentirelyforeseeable.”

InMay2015,thenewLaborgovernmentreconvenedtheinquirytolookatthreespecificissuesandtoreportbackontheAngleseacoalmineclosureandfirerisksby31August2015,healthandincreasedmortalityissuesassociatedwiththeMorwellfireby2December2015, andLatrobeValleyminerehabilitationoptionsby 15March2016.21

OTHER INCIDENTS TherehavebeenseveraldisastersintheHazelwoodandYallourncoalminessince2006,whichunionrepresentativeLukevanderMeulensaysare‘’allbecauseoflaxornon-existentregulation’’.22

Intheperiod2001–2008,fivesignificantHazelwoodfireeventswerenotifiedtotheMiningRegulator,anddetailedatpage213oftheinquiry’sreport.

Majoreventsinclude:• 2006October:AlargefireattheHazelwoodmine


triggeredbyequipmentfailuredamagedconveyorsandcausedalossofgeneratingcapacity.Aninvestigationfoundthatasignificantfactorinthe“escalationofasmallfireintoanuncontrollablefirewithinashorttime[was]duetoextremeweatherconditionsandthedelayin[themineowners]provingsufficientresourcestocombattheinitialfire”.Inaddition,theinternalauditoffireservicesfacilitieshadnotbeencompleted,andfiretrainingfortheseasonhadnotbeencompletedbecauseOctoberwasnotdesignatedaspartofthefireseason.Thelevelofdamagewasestimatedat$28,830,000bytheCFA.AccordingtoProfDavidCliff:“Thepreviousfirein2006shouldhavetriggeredareviewofthesafetymanagementsysteminaccordancewiththerequirementsofAustralianStandardAS4804andtheOHSregulations.Thecontrolsbefore2006andimplementedasaresultofthateventareclearlynotadequate.”23

• 2007:TheLatrobeRivercollapsedthroughYallournmine’snorthernbatters,floodingthemine.24

• 2008:Hazelwoodminesouthernbattersfire.• 2011:MorwellRiverdiversioncollapse,closingPrinces

FreewaybetweentheHazelwoodmineandMorwellresidentialareasforsevenmonths.25

• 2012-13:LatrobeRiverdiversioncollapsed,floodingYallournmine.26ThewaterwasstillbeingpumpedfromthemineinJune2105.

MINE REHABILITATIONMinerehabilitation(coveringexposedcoalseamindisusedpartsoftheminewithtopsoilandoverburden,followedbyrevegetation)isakeyissuebecausethefailuretodosocontributedtothescaleofthe2014andpreviousfires.Themine’sworkplanincludessomerehabilitationbuttheassociatedtimelineisflexible,anditisacostthatdoesnotinanyimmediatewayincreaseprofitability,sotheownersseemintentondoingtheminimum.Governmentoversightoftheworkplanhasbeenpoor.

Thecurrentrehabilitationbond–setatan“interim”

valueof$15millioninthemid-1990s–innowayreflectsrehabilitationcostsshouldtheownersabandonthesite.GDFSueztoldtheinquirythatcoststocompleterehabilitationwouldbelessthan$100million,orabout“$80-somethingmillion”.

EnvironmentVictoriasubmittedtotheinquirythat:

FinancialassurancecalculationsinQueenslandminessuggestbondsofasmuchas$483millionwouldbemoreappropriateforHazelwood.ThesevereunderestimationofrehabilitationcostsandthelevelofthebondpotentiallycreatesamassivefinancialinabilityforVictoriantaxpayers…

TheCFMEUaskedtheinquiry:ifadequatefirefightinginfrastructurewasintroducedtounusedsectionoftheminebutrehabilitationwasnotcarriedout,then:

whowillpayfortheindefiniteinstallation,maintenanceandoperationofthisinfrastructurelongaftertheprivatepowercompanieshaveabandonedthesemines?Inourassessment,rehabilitationisthebestandonlylong-termworkablesolution….therearemanyfineexamplesofrehabilitationintheLatrobeValleywherebattershavebeeninfilledwithoverburdenandtopsoil…

EnvironmentVictoriahasproposedraisingrehabilitationbondstoappropriatelevels(andbeingheldascashbondsratherthanbankguarantees)withinterestpaymentsusedtosupporttransitioninitiatives,andtoraisetherateofcoalroyalties,withtheproceedsbeingusedforrehabilitationworks.Theirreportestimatestotalrehabilitationcostsatupto$200millionforeachofthethreemajorminesintheLatrobeValley.27

InJanuary2015,PremierAndrewsannouncedthere-openingofthe2014inquirytolookintoareportedspikeindeathsandimplementationofnewfiremanagementrules:

Andifanyonedoesn’tcomplywiththisregime,anymineoperator,welltheydofacepenaltiesrangingfrombeingbreachedandhavingtostopworkatthemine,rightthroughtosubstantialfinancialpenalties,finesandultimatelylosingtheirlicences.28

Theupdatedtermsofreferenceexplicitlyincludeminerehabilitationandbonds,andLaborwillrequirecoalminestoreportannuallyonrehabilitationprogress.Theenergy

A view of the Hazelwood mine. The pit is 100 metres deep. Photo: John Englart


ministermayrequirethelicenseetoenterintoafurtherbondduringtheoperationofthelicence,iftheministerconsidersthattheexistingbondisinsufficient.

EnvironmentVictoriaresponded:ThefirstHazelwoodinquiryheardclearevidenceofthebenefitsofrehabilitationworksinpreventingminefires,andrehabilitationmustbeakeyfeatureofnewfirepreventionplans.Itisessentialthatthere-openedHazelwoodMineFireInquirymakesfirmandclearrecommendationstospeeduprehabilitationworksinbrowncoalmines.29

AccordingtotheNSWAuditor-General,asof30June2012therewereabout573derelictminesitesinNSW(includinggoldandotherminerals,aswellasformercoalmines).Andonlyasmallfractionofthosederelictmineswerebeingrehabilitated.30

Apollinlate2014foundthatlarge-scaleandacceleratedminerehabilitationprogrammehascommunitysupport.On13November2014,theLatrobe Valley Expressreported:

MorethanhalfofLatrobeValleyresidentswouldswingtowardsacandidateadvocatingforacceleratedrehabilitationoftheregion’sageingcoalminenetworkatthegelection.Anautomated‘robopoll’conductedbyEssentialResearchinlateOctoberonbehalfofEnvironmentVictoriafound57percentofMorwellvotersand52percentofNarracanvoterswouldbe“morelikely”tosupportacandidatewhostronglysupported“apolicytospeeduprehabilitationworkatcoalmines”.Samplingmorethan400residentsineachelectorate,thepollingalsofound91percentofMorwellvotersweresupportiveofrehabilitationasamethodtotransformminesintosafeandusableenvironments.31

UnionleaderssaytheStategovernmentcouldunlockjobcreationintheLatrobeValleyifitforcedoperatorstofast-trackrehabilitationofdisusedmines:32

ConstructionForestryMiningandEnergyUnionminingandenergy[division]presidentLukevanderMeulenhascalledonbothmajorpoliticalpartiestoconsidertheeconomicandemploymentbenefitsassociatedwiththelargescaleexcavationprojects,opportunitiesforwhichare“plentiful”and“ripeforthetaking”.“Thesejobsarethererightnow.”“We’vegotthepeopleandthetechnologyandthe

know-how,butitneedstostartrightnowbecauseit’sgoingtotakealongtime.”MrvanderMeulensaidifrehabilitationtimelineswere

fast-tracked,theLatrobeValleycouldenjoyaconstantstreamofjobcreationsimilartothelevelsofemploymentseenduringtheeight-kilometrediversionoftheMorwellRiveraroundthewesternendoftheHazelwoodopencut.“Therewerehundredsandhundredsofpeopleworkingonthatjobforyears,itwassimplymassive;it’slandscapingonamassivescale,”MrvanderMeulensaid.“Rehabilitationisexactlythesame,ontopofallthe

bulldozers,frontendloadersandexcavators,there’stherevegetationpart–there’streereplanting,re-grassingandgettingtheecologicalhealthbackintothesite.“It’sonlymorallyrightforthistypeofworktogo

tolocalworkers,sotheywouldhavetobegivenfirstpreferenceforthejobs.There’snopointingovernmentsthrowingmoneyintoaregionjustforsomeonetocomeoutofMelbourneandsnatchitup,”[GippslandTradesandLabourCouncilsecretaryJohn]Parkersaid.“Wearealwaystalkingabouttransitionindustriesof

thefuture,butthisisalegitimatetransitionopportunityfortheLatrobeValleyrighthereandrightnow.It’sabouttimeLaborand[theCoalition]stoppedblamingeachotherforwhattheydidn’tdowhiletheywereinpower,andtellushowtheyaregoingtofixthisplace,”hesaid.“Thisisamajorworkthatneedstogetdone,andwill

createalastinglegacythatgenerationscanenjoy–ifwedothesethingswecanstartputtingvaluebackintotheLatrobeValleyenvironment,whichpeoplecanonedayappreciateagaininsteadofitbeingaderelictwasteland.”

WHO PAYS FOR REHABILITATION?ThelicenceconditionsforHazelwoodpowerstationincludearequirementfortherehabilitationofthemine.Muchofthatworkhasnotbeendone,andthecurrentrehabilitationbondof$15million(beingreviewedbythereconvenedminefireinquiry)ispaltrycomparedtothecost.In2010,anexternalauditputtotalclose-downandrehabilitationcostsat$350million.

Nowthecompanyistellingthegovernmentthereisaveryreallimitonhowmuchrehabilitationitcanaffordbywayofbond.Theyhavetoldunionsthatthelong-termelectricity-productioncost(includingpropermaintenance,depreciationandinterest)isover$30/MWh,whichhasbeenhigherthanthewholesalepriceforconsiderableperiods.AsmaintenancecostsarereducedandtheHazelwoodworkplacerisksincrease,onemessagethecompanyseemstobesendingisthatitcannotaffordtoshutdown,ortomaintaintheplanttoahighsafetystandard.

However,thismissesthekeypointthatthecompanyislegallyobligedtocarryoutthefullrehabilitationworksincorporatedintothelicenceworkplan.Ifitfailstodoso,thereshouldbelegalrecoursethroughtheparentcompaniesifnecessary.

Ontheissueofcostsversusincome,arecentCitibankanalysisfoundthat“atforwardwholesalepowerpricesofabout$33amegawatt-hourforthe2015-17period,allthebrowncoalplantsarecashpositivewithahealthycashmarginonalongruncostofabout$15/MWh.”33ThisishalfthecosttheHazelwoodownersclaim.Aswell,thewholesalepricehasincreasesignificantlyin2015tocloseto$50/MWh.Otheranalyseshavealsofoundthebrown-coalgeneratorstoallbecash-flowpositive.


ECONOMIC TRANSITION AND NEW JOBSTheLatrobeValleyneedsaneconomictransitionplanandastrongjobspackagebecausethemovefromcoaltocleanwindandsolarrenewableenergyisnowbothurgentandinevitable.Asalreadydiscussed,minerehabilitationmustbeonekeyelementinsuchaplan.

Theneedfor“justtransitions”hasbeenafocusforenvironmentandclimatelobbyandactivistgroupsforsomeyears,ashaveallianceswithunionsandunionactivists.In2008,GreenpeaceandtheCentreofFullEmploymentandEquitypublishedA Just Transition to a Renewable Energy Economy in the Hunter Region Australia.34

Thenationalgrassrootsclimateactionsummitsfrom2009onwardshaveemphasisedjusttransitionswithdiscussionsessions,speakersfromunionsandaffectedcommunities,andresolutions.Sinceatleast2009,activistsandNGOcampaignershavebeenmeetingwithbothunionsandcommunitygroupsintheValley,andcontinuetodoso.DanMusilhasdocumentedthisoftenarockyprocess,as“competinginterestshavebroughtvariousstakeholdersintoconflictandsuchconflictisseenasanimpassetodecisiveandeffectiveaction”.35

In2010,localgovernmentintheLatrobeValleywasgivenfundstodeveloptransitionplans.Onesucheffortwasthe2010Positioning Latrobe City for a Low Carbon Emission Futurereport.36

Justtransitionsarenoteasyworkand,aseverybodyinvolved–includingactivists,researchers,unionsandtheEarthWorkerCooperative37andcommunitygroups–hasfound,itiseasiertoagreeontheprinciplethandevelopspecific,realistic,large-scale,on-the-groundinitiativesthatgovernmentwillfund,aswasthecasewiththecampaigntoreplacecoalgeneratorsatPortAugustawithasolarthermalplant.

Bothunionandcommunitygroupshaveemphasisedtheneedforaneconomictransitionplaninwhichtheyfullyparticipateandwhichreflectstheirneeds.Inaninterview,unionleaderLukevanderMeulentoldABCRadioNational:

Ithinkthedebateaboutwhethertheclosureisgoingtooccurisoverandwhatwe’vereallygottodonowislookattheimpactontheworkersinthecommunity.Andwhatwe’rereallysayingis[that]onthisoccasion,asdifferenttolasttimewhentheyprivatisedtheindustry,wewantthecommunityandtheunionstobeinvolvedatthetable,involvedinthediscussions.Andthedecision-making…whentheyprivatisedtheindustryweweresayingthenthatthereneedstobereplacementindustriesintheValley.Weweretalkingaboutwindandsolarthen.AndifthenationalandStategovernmentshadhavegotofftheirbehindsthen,thenwecouldhavehadawholerangeofdifferentindustriesintheValleythatcouldhelpusoutofthissituation.Thesecanbedone,butthereneedstobesomerealeffortataStateandnationallevelandthat’snotreallybeingseenatallatthemoment…Wedon’t

thinkanycompensationshouldbepaidtoHazelwooduntilthecommunityandworkerissuesarefullysortedout.38

WendyFarmer,VoicesoftheValleypresident,says“Wecan’tlettheprivatisation(oftheSECV)andthedestitutionthatitcausedhappenagain.”Inanopenletter,VoicesoftheValleysays:

Whatwewantistoensurethatwecantransitiontoacleaner,fairereconomyinawaythatwon’tfurtherdevastateourcommunity.Weurgetransitionplanstobeinplacebeforethere’sanymovetoshutdownanindustry–notjust‘talk’ofplans,butactualpathwayswithrealresourcesandsupport.WhatweneedarenewopportunitiesandchoicesforLatrobeValleypeople,notthe‘putuporshutup’thatweareofferedbythecompaniesthatrunourpowerstations,orthosethatdemandthatpowerstationsmustbeimmediatelyshut.Webelievethattherearemanythingsthatcouldbe

doneheretofacilitateatransitiontoabetterfuture,andtoensurethattheinevitableclosureofHazelwooddoesn’tleaveushighanddry.Localpeoplethemselveshaveinvaluableknowledgeandideas.AllowingLatrobeValleypeopletoarticulatehowatransitioncouldwork,andwhattotransitionto,isakeychallenge.Drivenbylocalvolunteers,VoicesoftheValleyhave

builtastrongpresenceinthepastyear.Wearecurrentlysucceedingingettinghigh-levelattentionontheissuesofhealth,pollutionmonitoringandreporting.Webelievethattighteningairqualitystandardscouldprovidepositiveoutcomesforlocalpeopleandtheclimate.Wewouldlikethechancetopushforandcreatenewopportunitiesandindustrieshere.Anyassistancewiththesegoalswouldbewarmlywelcomedandappreciated.VoicesoftheValleyarepreparedtoworkwithany

groupswhoalsowanttohelpourcommunitymovetowardabetterfuture.Wearewillingtomeet,talk,collaborateandcooperate.Butthiscanonlyhappenifothersarewillingtoappreciateandworkinwaysappropriatetoourlocalcontext,concernsandaims.

TomDoig,authorofthebook The Coal FacewhichtellstheHazelwoodminefirestory,saysreplacingHazelwoodisbothanenvironmentalandsocialjusticeissue:

ObviouslyforpeopleintheValleyinparticular,it’sconfrontingandpotentiallydisturbingwhenenvironmentalistsstarttalkingaboutclosingdownHazelwood,andit’seasyandjustifiabletosay,‘Whatisthetransitionplan?’…IsupporttheclosureofHazelwoodaslongasitisdoneintandemwithawellthoughtouttransitionplantocreatingjobsintheregion,andminerehabilitationisamassiveone.39

Thereisalsoalargerquestionoflabourandskillmanagementduringthegreattransition.Theworldishurtlingtowardsaclimateabyss:thereisnocarbonbudgetleftforlimitingwarmingto2C°.Manyclimatechangeimpactsarehappeningmorequicklythanmost


scientistsprojected,andpositivefeedbacksarealreadybecomingmateriallyimportant,fromtheArctictotheAntarctic.40

Wenowfaceaglobalclimateemergencythatrequiresaglobalemergencyresponse,asFrenchEnvironmentMinsterSégolèneRoyalrecentlyrecognised.41Morepeopleareacceptingthisproposition,butwonderwhetherwecangatherthesocialandpoliticalwilltomakeithappen.

Ifwearereallygoingtogetbeyondthebrowneconomy,whatwillindustrieslooklike?Takethetravelindustry,asoneexample.Theideathatthegrowingoverloadofinternationalairtravelcanbezerocarbonthroughefficiencyandbiofuelsisunsupportable.Soisthenotionthatsuchactivitywouldbeasocialpriorityinanenergy-constrainedworld(especiallyforliquidfuels)and

inthemidstofahugetransformation.ThesameanalysiscouldapplytoAustralianuniversitiesandtheirrelianceofair-travel-dependentinternationalstudentincome,orthe

air-transport-dependentglobalsoftfruit,vegetableandflowerindustries.Andtheseexamplesarejustthetipoftheiceberg.

Thequestionofactingonclimatechangeandthejobsconsequencesishuge.Itrequiresaworkforceplanningandmanagementstrategysimilartothoseemployedbygovernmentsinthepastattimesofhuge,abruptchange,suchasattimeofwar.Workingforajusttransitionalsomeansworkingforanationalclimateandenergyworkforcestrategy.

From2016,asteadyflowofincomefromtheelectricitysectorofaround$100millionperyearisavailabletofundnewjobsandindustriesintheLatrobeValley.Here’show.

AsaninducementtoAlcoatoestablishanaluminiumsmelteratPortland,theVictorianGovernmentin1984offeredalargesubsidyonelectricitypricestorunfor30years,fromtheopeningofthesmelterin1986till2016.

Thissupersededanolderdealthathadrunsince1962.Thediscountwasupto50percentonpricesavailabletootherindustrialusers.ThetwosmeltersatPortlandandnearGeelongwereusingupto25percentofVictoria’spowerproduction.TheGeelongrefineryhasalreadyclosed,andthedealexpiresnextyear.

Thesubsidywaspeggedtotheworldpriceofaluminium:theweakertheprice,thegreaterthesubsidy.Thevalueofthedealissecret,buthasbeenestimatedtohavecostVictorians$4.5billion.42SincetheprivatisationoftheStateElectricityCommission(SECV)in1998,thedealhasbeenfinancedbyalandtaxlevyontheelectricitydistributors’propertyundertransmissionlines.The Age reportedin2009that:“Coupledwithspecialleviesandtaxesonelectricityconsumers,imposedbytheKennettandBracksgovernmentstocoverthesubsidies,thepublicbillforthecontractsby2016wouldbecloserto$6billion.”43Therearealsoreportsthatthedealcost$1.022billioninsubsidiesintheperiod1986-1995,and$915.8millionfrom1997to2006.

InMarch2010,LoyYangApowerstationsignedacontracttosupplyelectricitytopowerthePortlandaluminiumsmeltersuntil2036.

In2014,FairfaxbusinesseditorMathewDunkleywrotethat:

ausefulstartingpointforthecalculationwouldbethe$100millionayearthegovernmentleviesonthelandunderpowerlinestohelppaythestate’sliabilitytotheglobalaluminiumgiant.TreasurerMichaelO’Brienconfirmedthisinastatement,sayingtheaveragesubsidyinthepastthreeyearswas$90million.44

Afterprivatisation,thedealwasadministeredbythecorporateshelloftheSECV.InOctober2013,theAustralian Financial ReviewreportedthatVictorianStateGovernmentaccountsfor2012-13showed:

thegovernmentpocketed$350millionfromtheSECVasaspecialdividend.TheSECVisacorporateshellthatlargelyadministersthestate’selectricitycontractswithAlcoa.ThisdividendstemmedfromtheSECV’stradingactivitiesandwasquietlybankedagainstthe2012-13financialyearwhenthe2013-14budgetwasannouncedinMay.45

SincetheSECV’sonlysignificantroleiscollectingrevenue,andpaying,fortheAlcoadeal,itseemsinsomeyearstheprofitwasbankedbythegovernment.Attheveryleast,thisisaclearprecedentforSECVrevenuesinexcessofcostsbeingpassedbackintotheStatebudget.

UnionsourcessaythatthewagesbillatHazelwoodisjustover$100millionayear.Theevidenceabovesuggeststhattherevenue-raisingmeasuresassociatedwiththeAlcoasubsidyarearoundthesameamount.

WhentheAlcoasubsidyendsin2016,thereisaperfectopportunityforthemoniesof$100millionayeartobeswitchedtonewjobandindustry-creationinitiativesintheLatrobeValleyasbrown-coalgeneratingcapacityisreduced.

When the Alcoa subsidy ends in 2016,

there is a perfect opportunity for the

monies of $100 million a year to be switched to new job and industry-creation initiatives in the Latrobe Valley as

brown-coal generating capacity is reduced.

FUNDING THE JOBS TRANSITION


OPTIONS FOR CLOSUREInternationalPowerrejectsanyproposaltointroduceclimatechangepolicy,undertheguiseofenergyeffic-iencymeasures,whichhasthepotentialtodestroythevalueofexistinginvestmentsinthegeneratorsector.46

Excesscapacityintheelectricitymarketdrivenbyenergyefficiencyandmorerenewableenergyhasbeenholdingdownwholesalepowerprices.OwnerssuchasAGLandOrigin–withvertically-integratedoperations(andcustomerbases)andwithlessancientandlower-pollutingplant–havebeenlobbyinggovernmenttotakeexcesscapacityoutofthemarket.Butgovernmentshavesofarbeenunwillingtointerveneand/orsubsidisesuchaction.

OneproblemisthatalthoughLatrobeValleygeneratorsaremorepollutingandtwoofthethreefacilitiesaretheoldestinAustralia,theyhavelowercoststhanblackcoalandgasgeneratorsandwouldsurviveanymarket-basedrationalisationintheabsenceofacarbonpriceortradingscheme.47

SeniorStatebureaucratsintheenergydepartmentareawareoftheneedtoclosedowncoalinordertoroll-outrenewables.Thequestionisbywhatmechanism:plantage,emissionsstandardsorsomeothermeasure?

VictorianPremierDanielAndrewshasflaggedthecapacityandwillingnessofthegovernmenttomodify and/orcancelHPS’slicence.

Thetermsofreferenceforthereconvenedinquiryandgovernmentstatementsindicateitislikelythatthegovernmentwillincreasetherehabilitationbondfromthecurrentlevelof$15million.Asdiscussedabove,totalrehabilitationcostswillbeseveralhundredmilliondollars.The2014firecost$100million,including$32millionbornebytheStategovernmentforfiresuppressioncostsalone.

TheStategovernmenthasastrongcaseforrecoupingthosecosts,inadditiontoincreasingtherehabilitationbond.ThestatehasborneawiderangeofcostsrelatedtotheoperationofHazelwood,apartfromthe2014fire.TheseincludecostsassociatedwiththeMorwellRiverdiversioncollapseandtheclosureofthePrincesFreewayforsevenmonthsandotherpriorincidents,asbestosissues,thecostsofinquiries,andelevatedcarecostsforMorwellandLatrobeValleycommunitiesassociatedwithboththe2014fireandincreasedincidentsofsomechronichealthconditionsintheregionoveralongperiod.

Aswell,legalrecoursetocompensateresidentsforthephysicalandemotionalcostsoftheMorwellfirecouldbelaunchedifHPScouldbeshownliableunderVictorianlawforhavingfailedtocomplywithminingandenvironmentallaw.Prof.SamanathaHepburnofDeakinUniversitysaysthat:

GDFSuezcouldalsobeliableunderVictoria’sEnvironmentProtectionAct.Iftheenvironmentispollutedasaresultofadischarge,emissionordepositofanysubstancefromminingpremises,theoccupierwillbedeemedtohavecausedthepollution.48

Couldthelicencebewithdrawnwithoutcompensationifitcanbedemonstratedthatthetermsofthelicencehavebeensignificantlybreached,forexampleinrelationtothe2014fire?Theinquiryconcludedthat:

OntheevidencebeforetheBoard,GDFSueziscurrentlycompliantwithitsobligationsundertheMineralResourcesActandrelatedregulations,aswellastheconditionsspecifiedinitscurrentmininglicence,approvedworkplanandapprovedrehabilitationplan.

Howeveritexpressedconcerninrelationtosomecomplianceissues,whichfellintoa“grey”area,andfoundthat:“TheBoardisnotsatisfiedthatGDFSuezhascompliedwithr.5.3.7oftheOHSRegulations.”

EMISSION STANDARDSAnemissionsperformancestandard(EPS)isaspecificlimittotheamountofpollutantsthatcanbereleasedintotheenvironment,usuallyperunitofproduction.AnEPScanregulatepollutantsreleasedbyautomobilesandotherpoweredvehicles,andsmallequipmentsuchaslawnmowersanddieselgenerators,buttheycanalsoregulateemissionsfromindustryandpowerplants.WhilstseveralStateshaveanEPSfornewpowerstations,nonedosoforexistingplant.49

AnalysisfromBloombergNewEnergyFinancefindstheUnitedStateswillshutsevenpercentofitscoalpowercapacitythisyear:

ThisisbecauseanewMercuryandAirToxicsStandardwilltakeeffect...Thishasactedtobringtoaheadthedemiseofagingpowerplants,withownersunwillingtoinvestsubstantialfundstocontroltheirairpollutants.Ontopofthe23GWofclosurestheyexpectthisyearwillbeafurther30GWshutbefore2020.50

EmphasishasbeenplacedonregulatingHPSemissionssuchthattheownerswouldhaveachoiceofinvestinginlowemissionstechnology,orclosingtheplant.In2010,thenVictorianPremierBrumbydeclared:

theBillprovidesthereservepowertoregulateemissionsfromexistingbrowncoal-firedgeneratorsifanegotiatedphasedowncannotbeachieved.51

Inintroducinghis2010climatebill,Brumbysaid:

Asafirststepfollowingthepassageofthisbill,itisintendedthattheEnvironmentProtectionAuthoritywillusethispowertosetanemissionsintensitystandardfornewpowerstations.Thegovernmentisproposingastandardof0.8tonnesofcarbondioxideequivalentpermegawatthour(tCO2/MWh),whichwillpreventtheconstructionofanynewpowerstationsbasedonconventionalbrowncoaltechnologies.Theintroductionofthestandardwillbesubjecttopublicandindustryconsultation,andanassessmentofeconomicandsocial


impacts.TheseamendmentstotheEnvironmentProtectionAct

willalsoclarifythatregulationsmaybeintroducedthatsetagreenhousegas‘trigger’torequirelicensingandworksapprovalsforgeneralindustrialandcommercialsitesthatarelargeemittersandenergyusers.ThiswillenablethegovernmenttoensurethatbestpracticestandardsandtechnologiesareusedbyVictorianindustry—givingourbusinessesanedgeinalow-carboneconomyandavoiding‘lockingin’inefficient,long-lastingtechnologies.Anychangesinthisregardwillalsobesubjectto

consultationthroughregulatoryimpactstatementsorequivalentprocesses.Thispowermaybeusedforotherpurposesinthefuture,suchasestablishingemissionsstandardsforexistingpowerstations—withtheaimofmovingVictoria’sbrowncoalgeneratorsintolinewithinternationalbestpracticeandprovidingastronginvestmentsignaltoupgradetechnology.Again,anynewstandardsinthisareawillbesubjecttofullpublicconsultationandregulatoryimpactstatements.52

Bywayofcomparison,theUSEPAemissionsstandardsproposedbytheObamaadministrationforexistingplantaverageabout0.5tCO2/MWhby2030.53Recentresearchfindsthatforthe2C°goal,andtoreducegreenhouse-gasemissionsintheshorttermandcatalyselonger-termcuts,countriesshouldreducethecarbonintensityofelectricitygener-ationtobelowauniversaltarget0.6tCO2/MWhby2020.54ThisislessthanhalfofHazelwood’semissionsintensity.

SodoestheministerorEPAcurrentlyhavethepowertoregulateemissionsabove0.8tCO2/MWh?

The0.8tCO2/MWhstandardwasremovedbyBaillieugovernmentamendmentsin2012.55HowevertheEPAwouldbeabletoregulateemissionsifappropriatelegislationforanenvironmentprotectionpolicy(includingCO2emissionsstandards)ispassedbyParliament,andthatfailuretoconformtothestandardwouldbeasoundbasisforwithdrawaloflicence.

Inadraftofhisclimatereviewreport,economistProf.RossGarnautnotedthat:

Governmentdoesnotgenerallycompensateforlossofassetvaluebecauseoftheinternalisationofanenvironmentalexternality.Pastcaseswhereatakenrightwasremovedwithoutcompensationincludepolicychangesapplyingtoasbestosandtobacco.56

Germanyhasrevealedplanstoforcetheclosureofthenation’soldestanddirtiestcoalpowerplantsbyintroducingmeasuresthatwouldallowcoalplantstoproducenomorethansevenmilliontonnespergigawattofinstalledcapacity,withfinesof$A25-28/tonneover that.57Bywayofcomparison,thatwouldsetabenchmarkforHazelwoodoflessthan11milliontonnesofCO2peryear,comparedtopresentpollutionof16milliontonnesofCO2peryear.

POSITION ON CLOSUREInSeptember2008,InternationalPoweritselfflaggedthattheHazelwoodplantcouldbeshutdown,subjecttothenegotiationofadequatecompensation.Inasubmissiononthefederalgovernment’sthenCarbonPollutionReductionScheme(CPRS),InternationalPowerAustralia’sExecutiveDirectorTonyConcannonstatedthatthecompanysupportedmeasuresthatwouldresultintheclosureofthemostpollutingpowerstationsontheprovisionthatthey“arecompensatedforthefulllossofassetvalue.”

Thecompanyestimatedthatthepre-CPRSassetvalueofboththeHazelwoodandLoyYangBpowerstationswas“over$4billion”,butthiswasdisputedbyenvironmentgroups,particularlyinlightoftheCommonwealthBankdecisionin2010towritedownthevalueofitsshareholdinginHPSfrom$24millionto$1million.58OtherLatrobeValleygeneratorshavebeenresoldatasmallfractionoftheirprivatisationprice.

On28July2010,the AFRreported(“Hazelwoodownerswantclosure”)anInternationalPowerspokespersonassayingthecompanywouldratherworkwiththefederalgovernmenttoclosedowneightturbinesthanthetwoproposedbytheBrumbygovernment.59

Federal MP for Wills Kelvin Thomson at CERES environment park, 2012


REPLACE HAZELWOOD CAMPAIGNSCampaignstoreplaceHPShavebuiltsince2005withanumberofcampaignsanddirectactions.Alargecivil-disobediencerally,thelargestofitskindatanyAustralianpowerstation,wasundertakenon13September2009,whenanestimated500peopleparticipated,withmanycampingnearbyonthepreviousnight.

Protestorsbreachedthenewlyinstalledsecurityfenceand22peoplewerearrested,manyforillegallytrespassingonHazelwoodproperty.Manyprotesterswereofficiallychargedandsubsequentlywererecipientsofdiversionordersandvariousfines.

AftertheSeptember2009rally,theVictorianLaborenergyministerunveiledlawsdesignedtoprotectthebrowncoal-firedpowerstationsfromprotests.TheElectricityIndustryAmendment(CriticalInfrastructure)Billcreatedtwonewoffences.Ifapersonisfoundonapowerstation’slandorpremiseswithoutauthoritytheycangotojailforayear.Andifapersondamages,interfereswith‘’orattachesathing’’tothepowerstation’sequipment,theyrisktwoyears’jail.Forthisoffence,thepersonmustbefound‘’reckless’’inrelationtowhethertheiractwillresultindisruptingelectricitysupply.61

The2009-2010“SwitchoffHazelwood”and“ReplaceHazelwoodwithcleanenergy”campaignsbroughttogetherabroadanddiversecoalition,whichfocusedattentionontheissueinthelead-uptotheNovember2010stateelection.ThecampaignframedHazelwoodasatestoftheLaborstategovernment’sclimatecredentials.

Theissuereceivedsustainedmediacoverageandbroadpublicsupport,withmanyeventsincludingprotestsonparliamentsteps,asecondrallyatHazelwood,andclimateactiongroupsininner-northseatsandelsewhereconductinganextensivedoor-knockingcampaignwhichreachedseveralthousandhouseholdsandamplifiedinternalLaborconcernthatseatscouldbelost.

ThepoliticalterrainatthetimewaswellanalysedbyMelissaFyffeinThe Ageon16May2010in“Beardingthedragon”.62

TheLaborcabinetagreedtoapolicyofphasedclosureofHazelwood,whichwasannouncedinThe Ageon 10July2010.63

Coal Swarmreportedtheevents:

Intherunuptothe2010electionthethenBrumbyLaborgovernmentsoughttoblunttherisingvotersupportfortheGreensbyproposingtheshutdownofpartoftheHazelwoodpowerstationandreleasedTaking Action for Victoria’s Future,aclimatechangeWhitePaper.InitsWhitePaper,theBrumbygovernmentcommittedtocutgreenhousegasemissionsby20percentby2020.‘Themostcost-effectivewaytocleanupourenvironmentandachievethisreductioningreenhousegasoverthenextfouryearsistoclosetwooftheeightunitsatHazelwoodPowerStation,’PremierBrumbystated.64

TheVictorianClimateChangeBillwasintroducedintoParliamenton27July2010,andamendedtheEnvironmentProtectionAct1970(Vic)toallowfortheimpositionofatargetemissionslevelfornewpowerstationsandtoenabletheregulationoflargeemitters.

TheVictorianLaborgovernmentnarrowlylosttheNovember2010electionbeforeitcouldbeginnegotiationswiththepowerstationowners.

InSeptember2008,InternationalPowerflaggedthattheHPScouldbeshutdownsubjecttothenegotiationofadequatecompensation.In2012,thefederalgovernmentabandoneditsContractforClosureProgramwithoutenteringintoseriousnegotiationswiththeHPSowners.

Inthelead-uptothe2014Victorianelection,acommonly-agreedplatformforVictorianclimategroupsandNGOsincluded:

Planningfortheorderlyphase-outofouroldestanddirtiestpowerstationsstartingwithHazelwood,YallournandAngleseapowerstations.

During2014,theLaborPartyoppositioninVictoriarefusedtoruleoutneworexpandedfossilfuelprojectsincludingfurthercoalallocationsorthedevelopmentofanunconventionalgasindustry.Nordiditmakeanycommitmenttoclosedownanyexistingcoalgeneratingcapacity,unlikeitsstandin2010.

InJanuary2015,theAndrewsgovernmentannouncedthatthe2104minefireinquirywouldbereopenedtolookintoareportedspikeindeathsandconsideroptionsforthemine’srehabilitation.

Bike commuters take a message to local MP at Climate Action Moreland event, May 2105. Photos John Englart.


LABOR IN 2010Labor’s2010climatechangeWhitePaperstated:

VictorianGovernmentwillreservetherighttoconsiderregulatingemissionsfromexistingbrowncoal-firedelectricitygeneratorsifagreementonaphasedowncannotbenegotiatedandanationalcarbonpriceisnotinplace.66

PremierJohnBrumbycalledHPSAustralia’s“dirtiestandmostpollutingpowerstation”.67

SpeakingtoABCradiotoJonFaineinJuly2010,BrumbyexplainedhisHazelwoodpolicy:

Brumby:I’mnotsureofthepointofthecaller’squestion…eitheryoubelieveinclosingHazelwoodoryoudon’t,andIdo.AndsowhatIannouncedyesterdaywasastagedclosureofHazelwoodwiththefirsttwounits–theyhaveeightunits,it’sthedirtiestpowerstationinAustralia,mostcommentatorsbytheway,ifyou’vereadtheFinancialReviewthismorningtheywouldsayit’sprobablythedirtiestanywhereintheworld–andI’veputforwardaplanthatwewillhaveastagedclosureofit.

Faine:Butyoudon’thavethemoneytopayforit?

Brumby:Well,wedoactually,sowehaveastrongeconomyandastrongbudgetposition,soasIsaidyesterdayreleasingthispolicyJohn,ourGovernmentinVictoriaisinapositiontotakeleadershiponclimatechangeinlargepartbecausewehavemanagedthebudgetandtheeconomywellandwecanaffordtomakethesechanges.ButasIsaidyesterday,ifyouwanttodothisjobproperlyitwillrequireapartnershipbetweenourgovernment,theFederalgovernmentandnegotiationswithInternationalPower,sowhatIannouncedyesterdayisacleardefinedstrategywithastagedclosure.68

On10July2010,Stock and Landreported:

Cut emissions or else, says Brumby

Victoriahasthreatenedtouseitsenvironmentalregulatorypowerstoforcebigcarbonemitterstoreduce

greenhousegasemissionsifnegotiationsoverplannedshutdownsfail.Apolicydocumentpublishedbythegovernmentthis

weekpromisedtoreducecarbonemissionsby20percenton2000levelsby2020.Italsobackedanationalpriceforcarbonasthebest

meanstoachievethecarbon-reductiongoalandflaggeditwouldseektonegotiateaphasedshutdownoftheemissions-intensiveHazelwoodpowerstation.VictorianPremierJohnBrumbyusedasecond-

readingspeechofhisgovernment’sclimatechangebillinParliamentyesterdaytodetailhowhisgovernmentcouldusetheEnvironmentalProtectionAgencytoregulateemissionsintheabsenceofacarbonpriceorifnegotiationswiththeownersofHazelwood,InternationalPower,stalled.“Whilethegovernmenthasalreadycommenced

preliminarydiscussionswithInternationalPowerandotherstakeholdersinHazelwoodaboutourcommitmenttoastagedclosureofHazelwood,theBillprovidesthereservepowertoregulateemissionsfromexistingbrowncoal-firedgeneratorsifanegotiatedphasedowncannotbeachieved,”hesaid.69

THE GREENS Intheleaduptothe2014stateelection,theVictorianGreensannouncedapolicytophaseoutHazelwood,AngleseaandoneofYallourn’sfourunitsin2015,andtheotherthreeunitsofYallournandLoyYangBby2023.TheGreenssaidtheirplanwillrequireamendmentstotheElectricityIndustryAct2000orrequiretheministertowithdrawgenerationlicences,andthat:

TheGreensplanwouldre-bootAustralia’sinevitabletransitiontoacleanenergysystemwithouttaxpayerhandouts.70

ThepolicysaysasteadystreamoflocaljobswouldbecreatedintheLatrobeValleyandAngleseaastherehabilitationofminesanddecommissioningofpowerstationsrequiresasignificantworkforcestretchingwell

“We have a plan for the first phase-down of brown coal in Australia, ever…We are the only party with a specific plan and timeline for the closure of Hazelwood.” 65Jane Garrett, Victorian emergency services minister and Brunswick MP, in 2010


COMMUNITY CAMPAIGNINGPoliticalpartieswillpayarisingpriceforafailuretoplanthephasedclosedownofthecoalindustryinthefaceofescalatingclimatechangeandextremeevents,especiallyastheclimatemovementadoptsacommunity-organisingmodelfocusedonbuildingdirectpoliticalpower.

Ayear-longreviewhasresultedinmanykeyplayersintheclimatemovementmovingtoalignstrategy,improvecommunications,revitalisegrassrootsconstituencies,andbuildelectoralpowerbyadoptingnewmodelsofface-to-facecampaigningthatbuildonrecentexperiencesinstateelectionsandoverseaslessons.

Climateandclean-airgroups,bothbigandsmall,havealonghistoryofcampaigningondirtycoalandviewtheclosureofpowerstationssuchasHazelwoodandAngleseaasasignificantstepinbuildingazero-emissionseconomy.FriendsoftheEarthsaysthat:

ThefullclosureofHazelwoodwouldbeaprofoundactonatleasttwolevels.ItwouldbeapowerfulsymbolthatVictoriaisnowfinallyshiftingfromitshistoricrelianceoncoal,andwouldremoveabout12percentofourgreenhouseemissions.77

EnvironmentVictoriacontinuesastrongfocusonHazelwood,withattentiongivenrecentlytothefiresinquiry,andreportsonminerehabilitationandthesocialcostofHazelwood.

Significantly,Australia’slargestenvironmentalNGO,theAustralianConservationFoundation,hasindicateditwillgivemorefocustoHazelwoodandAustralia’sbiggestpollutersthanpreviously.Inlaunchingitsnewstrategyin2015andareporton Australia’s Top 10 Polluters,ACFmadeitclearthat:

TheFederalGovernmentmuststartplanninghowitisgoingtoretirethemostpollutingandout-datedcoalplantsandreplacethemwithcleanenergy.78

WritinginThe Australian,ACFPresidentGeoffreyCousinsreiteratedthat:“Wemustconsiderhowtostartretiringthemostpollutingandoutdatedcoalplantsandreplacingthemwithcleanenergy…”.79AndACFCEOKellyO’ShanassytoldThe Guardian:

It’snotgoingtoworkanymoretobejustquietlyaskinggovernmentstodotherightthing.Sothepurposeofthisreportistosay–wearegoingtoholdyoutoaccountandwearegoingtogoouttoallAustraliansandbuildahugeconstituencyinthiscountrytomakesureyoudowhatAustralianswantyoutodo.IfgovernmentsputtheinterestsofpollutersabovethoseofAustraliansthenweneedtostarttogrowaforcetosupportcleanenergy,notcoal.Thisisdefinitelyashiftinourfocus…Werespecttheroleofpoliticians,butwedon’tthinktheyaredoingenough.There’sagreatsayingthatthepowerofthepeopleisgreaterthanthepeopleinpower.Ithinkthepeopleinpowerforgetthatsometimes.Wearegoingtoremindthem.80

Aswell,Australia’semissionsreductionperformanceandgoalswillcomeunderincreasingscrutiny,bothathomeandabroad,intheleaduptothe2015UNclimatechangeconferenceinParisinlate2015.TheclimatemovementwillbeoneofseveralplayerspointingtoAustralia’spoorperformanceandtheresponsibilityoffederalandstategovernmenttoworktogethertoclosedownold,dirty,sub-criticalcoalpowerstations.

Recentmediareportingonthecoalindustrycrisisandpowerstationclosureshassteppedupwiththereleaseofvariousreports,butalsobecauseinbusinessandpoliticalcirclesthereisgrowingrecognitionthatthecoalindustryisbecomingtoohottohandle.

overadecade:

Rehabilitatingcoalminesanddecommissioninggeneratorsisfullofjobs-richpotentialifdoneunderaplannedandstagedprogram.71AmajorityofLatrobeValleyresidentsandthelocalCFMEUwantrehabilitationplansbroughtforward.72TheGreensaredeterminedtocreatethesejobsnow.MinerehabilitationacrosstheLatrobeValley,accordingtoEnvironmentVictoriawouldcreatearound450skilledandunskilledjobsformorethanadecadeandprovideabilliondollareconomicstimulustotheregion.73

On20November2014,federalGreensleaderChristineMilneannouncedthelaunchingof“atwo-prongedfederalandStatepushtophaseoutVictoria’sdirtycoal,whileusingfundsfromtheCommonwealth’sBuildingStronger

RegionsFundtodeliverajobstaskforce.”74 On23January2015, The Agereported:

TheVictorianGreenswillusetheirupperhouseclouttopushfortheclosureoftheHazelwoodpowerstation,claimingitisarisktothecommunityandnolongerneeded.GreensMPEllenSandellsaidHazelwoodwasoneofthedirtiestcoalplantsintheworldandshouldbeclosed.75

GreenMPsEllenSandellandAdamBandthaveannouncedtheyaremakingReplaceHazelwoodafocusoftheirworkfortheyearandare“callingonthegovernmenttoreplaceHazelwoodwithcleanenergyandtosupportacommunity-ledtransitionplanforminerehabilitationandjobcreation”.AGreens-initiatedrallywasheldonParliamentHousestepson16April.76


IT’S OVER FOR COALCoal’slustreisrapidlyfadingasitssociallicencedegrades,andacrisisofoverproductionresultsinplummeting prices81andmineclosureinAustralia,with50,000jobsinallminingincludingcoallostinthelastthreeyears.

Business Spectator,undertheheadline“Acoalgiantontheropes”,saysthatUS-basedPeabody,theworld’slargestprivatepure-playcoalminingcompanybyvolume,reportedayear-to-datenetlossof$US272million,followinganetlossof$US955millionin2013and$US432millionin2012.Itssharesaredown62percentoverthelasttwoyearsrelativetotheS&P500index.82

BHPishalvingitsexposuretocoalbymovingsomeminestoaspin-offcompany(South32)thatismadeupofholdingsBHPnolongerwants.Riohassignaledamoveawayfromcoalmining.Renew Economyconcludesthat:

Thetakeawayinsumisthatfiveoftheworld’slargestminingconglomeratesarerapidlyreducingtheircoalexposureasthehorsesbolttheburningbarn.83

Anewreport,Boom and Bust: Tracking The Global Coal Plant Pipeline,showsthat,aroundtheworld,two-in-threeproposednewplantsarenotbeingbuilt.InChina,coalusefellin2014forthefirsttimein14years,whiletheeconomygrewby7.3percent.From2003to2014,theamountofcoal-firedgeneratingcapacityretiredintheUSandtheEUexceedednewcapacityby22percent.84Expertsare

warningthatChinais“pastpeakcoal”.85 Increasinginternationalfocusisbeinggiventothe

old,dirtyandinefficientcharacterofAustralia’scoalgenerators.ArecentreportfromOxfordUniversity’sStrandedAssetsProgrammeidentifiesthe100globalpowercompaniesmostatriskfromgrowingpressuretoshuthighlypollutingcoalplants.86Theanalysis,producedtohelpinvestorsassesstheriskofmajorfinanciallosses,alsofoundHazelwoodmajorityownerEngiewasthirdinthelistofmostpollutingcoalstationfleetsintheworld.

Thereportidentifiedthemost-polluting,least-efficientandoldest“sub-critical”coal-firedpowerstations.Itfound89percentofAustralia’scoalpowerstationfleetissubcritical,“byfar”themostcarbon-intensivesub-criticalfleetinworld.87

TheInternationalEnergyAgencycalculatesthatoneinfourofthesesub-criticalplantsmustclosewithinfiveyears,iftheworld’sgovernmentsaretokeeptheirpledgetolimitglobalwarmingto2C°.Thismeansthat22percentofAustralia’scoalpowerstationfleetmustclosewithinfiveyearsifwearetoplayanequitablepartinkeepingtogovernmentpledgestolimitglobalwarmingto2C°.

PressurewillbuildonnationalandStategovernmentsrespondtothisneed.Willtheystartclosingdownpowerstations,orthrowinthetowel?

‘The smoke got thicker and darker and then it seemed to be coming from everywhere, swirling around until it blanketed the entire town…’

On 9 February 2014 a fire took hold in Victoria’s Hazelwood coal mine next to Morwell and burned for one and a half months. As the air filled with toxic smoke and ash, residents of the Latrobe Valley became ill, afraid – and angry. Up against an unresponsive corporation and an indifferent government, the community banded together, turning tragedy into a political fight.

Tom Doig reveals the decades of decisions that led to the fire, and gives an intimate account of the first moments of the blaze and the dark weeks that followed. The Coal Face is a gripping and immediate report of one of the worst environmental and public health disasters in Australian history

OUT NOW $9.99


NOTES1. http://www.theclimategroup.org/_assets/files/Generation-

Report-2007-2010.pdf

2. http://energynewsletterturkey.blogspot.com.tr/2014/04/hazelwood-morwell-australia.html

3. http://www.wwf.org.au/news_resources/?2320/hazelwood-tops-international-list-of-dirty-power-stations

4. http://www.theage.com.au/environment/climate-change/emissions-from-power-sector-still-climbing-as-coal-use-rises-20150303-13twq8.html

5. http://www.climatecodered.org/p/myth-and-reality.html

6. http://www.climatecodered.org/2015/02/two-degrees-of-warming-closer-than-you.html

7. http://www.aemo.com.au/Electricity/Settlements/Carbon-Dioxide-Equivalent-Intensity-Index

8. http://web.archive.org/web/20080719151643/http://www.aboutcarbon.com.au/Display.aspx?tabid=2546

9. http://www.npi.gov.au/npidata/action/load/emission-by-individual-facility-result/criteria/state/VIC/year/2013/jurisdiction-facility/00004337

10. http://en.wikipedia.org/wiki/Hazelwood_Power_Station#Asbestos

11. http://environmentvictoria.org.au/index.php?q=media/repeat-offender-documents-highlight-hazelwood-environmental-breaches

12. “CleaningupVictoria’sPowerSector:thefullsocialcostofHazelwoodpowerstation”,byJordanWardandMickPower,http://environmentvictoria.org.au/sites/default/files/Hazelwood%20Report_Social%20cost%20of%20carbon.pdf

13. http://environmentvictoria.org.au/newsroom/report/cleaning-victoria%E2%80%99s-power-sector

14. http://www.smh.com.au/federal-politics/political-opinion/wrong-to-dismiss-the-dirt-on-hazelwood-20101105-17hei.html

15. http://www.aemo.com.au/Electricity/Planning/Electricity-Statement-of-Opportunities

16. http://www.aemo.com.au/News-and-Events/News/2014-Media-Releases/NEM-Electricity-Demand-Continues-Downward-Trend

17. http://theconversation.com/the-case-for-shutting-down-hazelwood-power-station-some-facts-and-figures-7940

18. Thissectiondrawnfromsubmissionstoandreportoftheroyalcommissionhttp://report.hazelwoodinquiry.vic.gov.au/

19. http://www.abc.net.au/worldtoday/content/2014/s3955568.htm

20.http://report.hazelwoodinquiry.vic.gov.au/executive-summary/hazelwood-mine-fire

21. http://www.abc.net.au/news/2015-05-26/hazelwood-inquiry-reopened-to-examine-deaths-related-to-morwell/649823

22. http://www.theage.com.au/victoria/gdf-suez-rejects-claims-it-was-not-prepared-for-morwell-fire-20140304-345bq.html

23. http://theconversation.com/victorias-coal-fire-poses-a-rare-challenge-for-firefighting-23698

24.http://www.sourcewatch.org/index.php/Yallourn_mine

25. http://environmentvictoria.org.au/index.php?q=media/vic-freeway-closed-amid-landslip-fears

26.http://www.smh.com.au/environment/weather/floodwaters-pour-into-coal-mine-but-power-supplies-safe-minister-20120606-1zv5e.html

27. http://issuu.com/environmentvictoria/docs/preventing_the_preventable_final

28.http://www.theage.com.au/victoria/greens-to-use-upper-house-numbers-to-seek-closure-of-hazelwood-power-station-20150123-12wzyx.html

29.http://environmentvictoria.org.au/media/environment-victoria-statement-hazelwood-coal-mine-fire-one-year

30. http://theconversation.com/disused-mines-blight-new-south-wales-yet-the-approvals-continue-39059

31. http://www.latrobevalleyexpress.com.au/story/2692356/mine-rehab-an-election-winner/

32. http://www.latrobevalleyexpress.com.au/story/2543151/jobs-ripe-for-the-taking/

33.http://www.afr.com/business/nsws-vales-point-power-plant-seen-vulnerable-if-ret-deal-is-struck-20150514-gh198d

34.http://www.resourcesandenergy.nsw.gov.au/energy-consumers/solar/sustain-renew-fit-subs/sustain_renew_fit_subs_greenpeace_australia_pacific_attach_a.pdf

35.DanMusil,“’GreeniesvsCoalCommunities?’–GeographiesofdeliberationinVictorianclimatechangeandenergydebates”,BachelorofArts(Honours)thesis,UniversityofMelbourne

36.http://www.latrobe.vic.gov.au/Our_Community/Transition_to_a_Low_Carbon_Economy

37. http://earthworkercooperative.com.au/

38. http://www.abc.net.au/radionational/programs/nationalinterest/down-and-dirty-the-stoush-over-hazelwood-power/2988246

39.http://www.latrobevalleyexpress.com.au/story/3021868/push-to-shut-down-hazelwood/

40. http://www.climatecodered.org/2015/04/its-time-to-do-math-again.html

41. http://www.lemonde.fr/planete/article/2015/06/01/segolene-royal-les-negociations-de-l-onu-sont-totalement-inadaptees-a-l-urgence-climatique_4644359_3244.html

42.http://www.theage.com.au/environment/secrecy-on-aluminium-subsidies-to-remain-20091126-juon.html

43.http://www.theage.com.au/national/smelters-costing-us-45-billion-20091016-h17r.html

44.http://www.afr.com/business/manufacturing/alcoa-subsidies-cost-victorians-billions-20140218-ixrh7

45.http://www.afr.com/p/national/dividends_and_windfalls_inflate_bCF03hjqQ3nJ8DCSlWNNh

46.http://www.theage.com.au/victoria/hazelwood-to-resist-energy-efficiency-bid-20100519-vfhx.html

47.http://www.afr.com/business/nsws-vales-point-power-plant-seen-vulnerable-if-ret-deal-is-struck-20150514-gh198d

48. https://theconversation.com/stronger-laws-needed-to-prevent-another-hazelwood-coal-mine-fire-24215

49.http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BN/1011/PerformanceStandardsemissions

50.http://www.businessspectator.com.au/article/2015/4/10/energy-markets/grim-and-grimmer-analysts-deliver-double-blow-coal

51. http://www.stockandland.com.au/news/agriculture/agribusiness/general-news/cut-emissions-or-else-says-brumby/1899959.aspx

52. ParliamentofVictoria,ParliamentaryDebates(Hansard),LegislativeAssembly,Thursday29July2010

53.https://www.federalregister.gov/articles/2014/01/08/2013-28668/standards-of-performance-for-greenhouse-gas-emissions-from-new-stationary-sources-electric-utility

54.http://www.nature.com/nclimate/journal/v5/n3/full/nclimate2494.html?WT.ec_id=NCLIMATE-201503

55.http://www.theage.com.au/victoria/no-emission-limit-on-new-coal-plants-20120327-1vwmu.html

56.http://www.garnautreview.org.au/CA25734E0016A131/pages/draft-report-chapter-20.html#20A

57. http://reneweconomy.com.au/2015/germany-to-force-closure-of-oldest-dirtiest-coal-plants-95632

58.http://www.smh.com.au/environment/bank-slashes-value-of-share-in-hazelwood-20101026-172dr.html

59.http://environmentvictoria.org.au/media/hazelwood-owners-want-closure#.VPz1lGaDqiA


60.http://www.theage.com.au/comment/why-dan-andrews-should-close-the-hazelwood-power-station-20150524-gh6ynv

61. http://www.theage.com.au/federal-politics/a-show-of-power-20091024-he1f.html

62.http://www.theage.com.au/federal-politics/political-opinion/bearding-the-dragon-20100515-v5he.html

63. http://www.theage.com.au/environment/power-cut-for-big-polluter-hazelwood-20100709-1045o.html

64.http://www.sourcewatch.org/index.php/Victoria_and_coal

65.https://www.youtube.com/watch?v=WhkuuWh6juU

66.http://www.climatechange.vic.gov.au/__data/assets/pdf_file/0020/125417/Victorian-Climate-Change-White-Paper-Action-Plan-July-2010.pdf

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70.http://greensmps.org.au/sites/default/files/141119_final_victorian_coal_closure-_policy_initiative_final.pdf

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73. http://issuu.com/environmentvictoria/docs/preventing_the_preventable_final

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84.http://www.climatenewsnetwork.net/old-king-coal-is-sick-but-not-yet-dying

85.http://www.theaustralian.com.au/business/mining-energy/shenhua-cutback-shows-china-past-peak-coal-expert-warns/story-e6frg9df-1227273695080

86.http://www.theguardian.com/environment/2015/mar/13/us-and-chinese-companies-dominate-list-of-most-polluting-coal-plants

87.http://www.smithschool.ox.ac.uk/research-programmes/stranded-assets/Stranded%20Assets%20and%20Subcritcial%20Coal%20-%20The%20Risk%20to%20Investors%20and%20Companies%20-%20mid%20res.pdf

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