U.S. senators target $1 billion a year coal subsidy, ask IRS for test results

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U.S. senators target $1 billion a year coal subsidy, ask IRS for test results
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Three U.S. senators on Monday urged the Internal Revenue Service to crack down o...

BOSTON - Three U.S. senators on Monday urged the Internal Revenue Service to crack down on a $1 billion-a-year subsidy for burning chemically treated refined coal, after a new study showed some power plants using the fuel produced surging amounts of mercury and smog instead of cutting pollution.

“We have evidence to show that Wall Street is raking in hundreds of millions in tax credits each year for pollution reductions they aren’t coming close to delivering in the real world,” Whitehouse said in a statement. “That’s a massive boondoggle for taxpayers, a blow to air quality and Americans’ health, and a setback for our climate.”

The senators have written a letter to IRS Commissioner Charles Rettig asking him to provide data by June 14 that shows burning refined coal under real-world conditions generates the pollution cuts required to qualify for the tax credit. They also are seeking evidence that lab results are a reliable measure of pollution at actual power plants, according the letter.

At one unnamed plant, the study said mercury and nitrogen oxide pollution climbed nearly 60 percent and 10 percent, respectively.

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