10 Years On, KKKing KKKlown Handing $75 Million To Coal Export Terminal In Oakland, w. No Guarantee It Will Be Built

When investor Phil Tagami first proposed building an export terminal in Oakland, California, more than a decade ago, he probably didn’t anticipate the firestorm of litigation and controversy that would follow, in a saga that has now spanned three presidential administrations. There were early rumors that the terminal would export coal, much to the consternation of local residents, but Tagami said in a newsletter that the naysayers were “misinformed.” It was all downhill from there.

Tagami and others entered into a development agreement with the city of Oakland in 2013 after the city decided to redevelop a defunct army base on the city’s west side. At the time, Tagami was adamant that the developers were interested in building an all-purpose bulk terminal and capturing some of the traffic that Oakland was losing to other West Coast ports. But two years later, Oakland residents and environmental groups had their suspicions confirmed when the Salt Lake Tribune reported that the developers had quietly entered into an agreement to use the terminal to ship coal from Utah to buyers overseas. The revelation sparked intense backlash in the progressive city, and the ensuing conflict has put both the developers and the city on the hook for million-dollar losses at various times, though litigation is ongoing.

Now, in the latest twist, the U.S. Department of Energy has stepped in to provide up to $75 million for building the terminal. The funding is the latest effort by the Trump administration to prop up the country’s coal industry — the Energy Department’s announcement last week also included over $400 million in support for coal-fired power plants — even as the fossil fuel’s role in generating U.S. electricity continues to collapse. Over the last year, the administration has loosened regulations that apply to the country’s coal fleet, ordered aging plants scheduled for retirement to keep running, and shifted the responsibility of overseeing coal contamination to states.

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By then, Insight Terminal Solutions, the company that was slated to operate the terminal, had filed for bankruptcy in Kentucky and decided to pursue claims against the city. During the bankruptcy proceedings last year, the company claimed that the protracted legal battles with Oakland were to blame for its financial woes — and that it was owed more than $650 million in damages. A sympathetic bankruptcy court judge agreed with the firm’s rationale, but on appeal in a federal district court, the ruling was vacated late last year, much to the historically cash-strapped city’s relief. Despite the influx of federal support for the terminal, the project’s backers still have a long road ahead. The terminal needs to secure a range of permits, including air quality permits from the Bay Area Air Quality District, and local advocates have already mounted a campaign to require stringent regulations for the facility. (Tagami and another representative of California Capital & Investment Group, the lead developer of the project, did not respond to multiple requests for comment.)

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https://grist.org/energy/trump-oakland-coal-terminal-funding/