SALT LAKE CITY (AP) — A Utah board overseeing a plan to spend more than $50 million in public money to help build a California shipping port that would export locally mined coal wants to hire a financial consultant to work on the deal.

Supporters of the contentious plan argue that Utah needs to invest in the project to help rural, energy-producing counties grappling with high unemployment ship their coal outside the waning U.S. market. The Legislature and Gov. Gary Herbert signed off on the plan last month.

Environmental groups say the deal is a misuse of public money to prop up the struggling coal industry. A California lawmaker opposed to the project has proposed legislation in that state that would restrict coal exports in Oakland, where the port is planned, but it's unclear if the bill will pass and exactly how it could hamper Utah's plans.

Members of Utah's Permanent Community Impact Fund Board said Wednesday that they plan to hire a consultant to review contracts and documents from investors who would bring an additional $200 million to the project.

The board plans to start the search for a potential consultant next month and is expected to hang on to the money it's contributing for about a year while details are worked out, chairman Keith Heaton said.

"We're standing here now ready, saying we have our money. We have a seat at the table," said Jae Potter, a board member and Carbon County commissioner.

The plan would give the state's coal-producing counties — Carbon, Emery, Sanpete and Sevier — the ability to use almost half of the port's capacity. Supporters also say they can use the port to ship other Utah products such as salt or potash to other countries.

Related:

Controversy fires up over Utah push for coal terminal

A clearly frustrated Sen. David Hinkins, R-Orangeville, lashed out at critics in a legislative hearing earlier this week, defending a proposed $53 million investment in an Oakland, California, export terminal for Utah goods, including coal.

The deep-water terminal would be built on a former U.S. Army site and operated by a private company.

Utah counties interested in the project originally proposed using money from fees generated from mineral and energy royalties. They are meant to mitigate the effects of federal mining on local communities and usually go toward public improvement projects.

In recent years, the funds have been used for major economic development projects, including a proposed rail line.

Board members and environmental groups challenged whether the money could legally be used for the Oakland port, so Utah lawmakers came up with a workaround this year. It reshuffles other state funds but still leaves the board overseeing the $53 million project.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Related topics