FLOYD COUNTY — The public hearing was in Louisville, but the ramifications of a decision by the U.S. Environmental Protection Agency regarding the classification of coal ash certainly impacts Indiana residents.

Though exempted under the Resource Conservation and Recovery Act, the EPA is considering, for the first time, regulating coal combustion residuals.

One option would rule large volume coal ash as a hazardous material, forcing utility companies and coal producers to dispose of the waste in landfills or surface impoundments approved to handle such products.

Another option would essentially regulate coal ash without labeling it a hazardous material. Power plants would be allowed to store coal ash in a composite liner under the second proposal.

The EPA has had a series of public hearings on the matter, and the closest  to Southern Indiana occurred Tuesday in Louisville with more than 200 people signed-up to speak.

Proponents of stiffer regulations say coal ash is a harmful byproduct of the coal industry that seeps into lakes and streams and pollutes groundwater.

Those opposed to the EPA’s stance say the federal entity is overstepping its bounds, and could potentially cost the country thousands of jobs and higher utility rates by imposing harsher guidelines on the disposal of coal ash.

Indiana and Kentucky are among the top coal ash producing states in the nation.

Duke Energy’s Gallagher Station in New Albany utilizes a coal ash pond. According to a recent Associated Press story, it’s one of the largest in the state containing 125,600 tons of combusted coal material.

Bryan Walsh, manager of Gallagher Station, stated at the public hearing that many coal-fired power plants across the country that aren’t base-load facilities could be driven toward retirement depending on how coal ash is classified.

He said that would have a direct economic impact on the communities where those plants are located.

“For example, Gallagher Station is the largest tax payer in New Albany, makes enough power to supply almost 200,000 homes, employs 77 Duke Energy employees, and also puts numerous contractors to work on our site any given day,” he said.

A similar view could be found at a rally sponsored by the Federation for American Coal, Energy, and Security and the Kentucky Coal Association at Jefferson Square Park on Tuesday.

Coal industry supporters and officials joined Kentucky politicians including State Rep. Leslie Combs to protest the EPA’s push to instill more regulations.

Jobs, public infrastructure and families are dependent on coal in Eastern Kentucky said Combs, who represents three of the largest coal producing counties in the state.

“We cannot live without it,” said Combs.

But there are also many that welcome EPA oversight on the matter.

Indiana does require lining for coal ash ponds, which is why the federal government must step-in, Sierra Club members said.

While many local coal industry supporters were pushing their followers to speak against the EPA’s proposals, area Sierra Club chapters were encouraging their members to let their voices be heard in favor of regulations.

The Hoosier Chapter of the Sierra Club posted several articles on its website about the issue, stating that “special interests are trying to water down” the EPA proposals.  

An Eastern Tennessee coal ash spill in 2008 has fueled much of the conversation about federal regulation. An estimated 5.4 million cubic yards of coal ash spilled about 40 miles west of Knoxville when a retaining wall for an ash pond collapsed.

Initial tests showed a river adjacent to the spill had elevated levels of lead and thallium, which have been linked to birth defects and other physical disorders.

But forcing utility companies to store coal ash in a hazardous materials site eliminates any chance the byproduct can be recycled for other uses, Duke Energy spokeswoman Erin Culbert said.

She said Duke recycles about 45 percent of its coal ash for materials such as concrete and substances used for road paving.

Duke Energy isn’t opposed to more government regulation, Culbert said. But Culbert added that shouldn’t come without a reasonable balance of affordability and reliability of service.

“We invest a lot of money and work into these facilities to make sure they’re handling these residuals safely,” she said. “We certainly want to see water quality protected, we want to see the communities surrounding our plants protected.”

If coal ash is ruled a hazardous substance, it will likely result in utility rate increases for Duke customers as the company will have to find places where it can store the combusted materials, she continued.

According to Culbert, there aren’t hazardous material landfills  in North Carolina where Duke Energy is based.

U.S. Rep. Baron Hill, D-Ind., has been a proponent of a cap-and-trade policy that would limit emissions by power plants. Hill Communications Director Daniel Altman said Tuesday allowing a percentage of coal ash to be recycled reduces the raw tonnage left over, which is a positive.

“Coal is an important part of our economy and this issue highlights our need for energy reform,” Altman said. “By investing in clean coal technology, and other clean energy sources, we can lessen our dependence on foreign oil, increase Indiana’s energy production and create jobs.”

An e-mail seeking comment from Hill’s challenger, Republican Todd Young, had not been returned as of press time.

The EPA will have a final  hearing on the proposals in Knoxville before closing the public comment period Nov. 19.

Comments can be submitted online through the website www.regulations .gov.