Consumer Energy Alliance

Consumer Energy Alliance (CEA) is a nonprofit, nonpartisan organization created to help expand the dialogue between the energy and consuming sectors to improve understanding of energy security, more effectively develop and use both renewable and oil & gas energy resources in an environmentally conscious manner, create sound energy policy and maintain stable energy prices for consumers.

Affiliate News

James L. Martin: Our Self-Imposed Obstacles to Energy Independence

Thursday, February 18th, 2010

James L. Martin of 60 Plus Association, a CEA affiliate, submitted the article, Our Self-Imposed Obstacles to Energy Independence, to the Winter 2010 Journal of the James Madison Institute. Please click the link below to view a pdf of the article placement, which appears on page 27.

Our Self-Imposed Obstacles to Energy Independence (pdf)

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New EIA Energy Web Portal Explains Topics in Plain Language

Friday, October 9th, 2009

Energy Explained , a new web portal launched today by the U.S. Energy Information Administration (EIA), celebrates Energy Awareness Month with the most comprehensive energy education resource available from the U.S. Government.

The site explains where gasoline comes from, what determines the price of electricity, how much renewable energy the United States uses, and hundreds of other energy topics.

“Energy touches us in many ways every day, from the electricity that lights our homes to the fuel we use in our cars,” said EIA Administrator Richard Newell. ”Energy Explained uses plain language and clear graphics to help explain a sometimes complex, but vital subject.”

Energy Explained allows easy navigation between major energy topics:

Energy Explained includes a “rate this page” feature so visitors can easily give EIA feedback on any page.

Visit Energy Explained at: www.eia.doe.gov/energyexplained.

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National Oilheat Summit Sees Bright Future For Industry

Tuesday, September 22nd, 2009

Baltimore, Md. – September 18, 2009   NEFI joined nearly every national, regional and state oilheat industry association, along with various industry leaders, for a national oilheat industry policy summit in Baltimore, MD on Tuesday, September 15th.  The big news coming out of the summit – these various oilheat stakeholders are joining together to pursue a brave new future for the industry and its consumers.

Those attending the summit overwhelmingly approved a statement encouraging Congress and appropriate state bodies to help the industry move towards a “leaner, greener and cleaner” new product through adoption of an ultra low sulfur standard and expanded use of bio components.  The group also embraced solar technology as a key component of the overall industry effort to lower the carbon intensity of heating oil applications.

The summit also heard many presentations on the benefits of pursuing a lower sulfur bio-blended product, supplemented with solar technology, as well as how best to “tell the story” nationwide.  “It is an exciting time for the industry,” said Peter Carini (NEFI-member) of Champion Energy, New York, which was echoed by Robert Boltz of Pennsylvania, NEFI member Jim Townsend of Townsend Oil, and  Don Allen of E.T. Lawson of Virginia, the moderator for the summit.  He added: “As an industry, we face many challenges, but most of them can be met if we embrace this exciting opportunity to create a new product that will be environmentally responsible and competitive, ensuring that our industry is part of the solution to the energy, security and climate change challenges that face our Nation.”

Over 80 industry representatives participated in the Summit.

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NSBA Report Shows On-Bill Financing Improves Energy Efficiency

Tuesday, September 22nd, 2009

Washington, D.C. – September 16, 2009   The National Small Business Association today released a report showing that small business collectively could reduce greenhouse gas emissions by 259 million tons each year if they improved their energy efficiency by just 25 percent. The report, “On-Bill Financing:  Helping Small Business Reduce Emissions and Energy Use While Improving Profitability,” goes on to highlight the significant savings small businesses stand to achieve through on-bill financing.

“This report obliterates that old paradigm that environmental conservation is anathema to economic growth,” said NSBA President Todd McCracken. “Quite simply, small businesses can increase their profitability while reducing their carbon footprint.”

On-bill financing is a mechanism that enables small businesses to work with their utility company to improve their energy efficiency. In practice, a local utility company identifies a small business with potential savings and evaluates their energy use and the company’s financial stability. The utility company then extends a low- or no-interest loan to the small business to make energy-efficient upgrades. The small-business owner repays the loan by continuing to pay the average monthly bill and any money paid in excess of what their actual costs are will go directly to pay down the loan.

Currently implemented in several states, on-bill financing programs have made thousands of loans to small businesses with unparalleled success. According to the report, energy-efficiency programs such as on-bill financing can help the average small business save $4,932—and oftentimes more—every year on its energy bills. The report also makes recommendations on how the federal government can help facilitate additional on-bill financing programs.

“The number one reason small-business owners cite for their inability to make their firms more energy efficient is cash-flow,” stated Keith Ashmus, NSBA chair and co-founding partner at Frantz Ward LLP, Cleveland, Ohio. “Programs such as on-bill financing can eliminate this very significant barrier many small businesses simply can’t overcome.”

NSBA has long held the belief that energy efficiency and entrepreneurial growth can and do go hand-in-hand. The current state of the U.S. economy makes it absolutely crucial to have government policies that foster, not hinder, entrepreneurial growth. With 29.6 million small firms—comprising 99.7 percent of all U.S. employer firms—small businesses stand to make significant, positive and lasting improvements to both the economy and the environment.

This report was sponsored by NSBA with funding from the Bipartisan Policy Center. Please click here to access the full report.

Since 1937, NSBA has advocated on behalf of America’s entrepreneurs. A staunchly nonpartisan organization, NSBA reaches more than 150,000 small businesses nationwide and is proud to be the nation’s first small-business advocacy organization. For more information, please visit www.nsba.biz

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Airlines Sign First-of-Its-Kind Ongoing Supply Agreement with Rentech and ASIG For Renewable Synthetic Diesel Fuel to Be Used in LAX Ground Service Equipment

Tuesday, August 25th, 2009

WASHINGTON, D.C., August 18, 2009 — The Air Transport Association of America, Inc. (ATA), the industry trade organization for the leading U.S. airlines, announced today that eight of its member airlines have signed an unprecedented agreement with Rentech, Inc. and Aircraft Service International Group (ASIG) to purchase up to 1.5 million gallons per year of renewable synthetic diesel fuel (RenDiesel) for use in ground service equipment at Los Angeles International Airport (LAX) beginning in late 2012, when Rentech’s plant to produce the fuel is scheduled to go into service.

The initial airline purchasers of RenDiesel are Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and US Airways, with the potential for adding other airline partners.

“We are proud to take part in this innovative, collective endeavor that over time, will further reduce greenhouse gas emissions and improve local air quality through the use of greener fuels,” said Glenn Tilton, ATA board chairman and UAL Corporation chairman, president and CEO. “This transaction promises to be the first of many such green fuel purchase agreements by the commercial aviation industry. It exemplifies the ongoing commitment of airlines and energy suppliers to diversify our fuel sources while contributing to a cleaner environment and adding new jobs to the economy.”

The renewable RenDiesel will be produced at the commercial-scale facility that Rentech is developing in Rialto, Calif., primarily from urban woody green waste such as yard clippings. The fuel is expected to have a low carbon footprint and minimal particulate and other emissions while meeting or exceeding all applicable fuel standards. ASIG, which provides fueling services to many airlines that operate at LAX, will handle receipt and dispensing of the RenDiesel. Other discussions regarding potential alternative fuels agreements are continuing through the Commercial Aviation Alternative Fuels Initiative, of which ATA is a founding member.

“This commercial purchase contract among Rentech, ASIG and the airlines validates the growing demand for synthetic fuels produced by the Rentech Process,” said D. Hunt Ramsbottom, Rentech president and chief executive officer. “The low-emissions profile and near-zero carbon footprint of our renewable RenDiesel will guarantee that the LAX ground service vehicles using this fuel will be among the cleanest and greenest of their kind.”

Ramsbottom added, “We expect this agreement to serve as a model for future supply relationships at other airports and for other fuels, including Rentech’s synthetic jet fuel, which was recently approved for commercial airline use.”

“ASIG is thrilled to have been instrumental in reaching this landmark deal with the airlines and Rentech, reinforcing our strong commitment to our airline customers and environmental stewardship,” said ASIG President Keith P. Ryan. “We are proud to be on the forefront of this innovative effort to advance aviation environmental progress.”

“This collaborative effort is yet another environmentally friendly initiative that we and the airlines are pursuing at Los Angeles-area airports. It shows what we can accomplish by working together toward a common and necessary goal,” said Gina Marie Lindsey, executive director of Los Angeles World Airports (LAWA).

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National Association of Manufacturers: State-by-State Analysis of Waxman-Markey Cap and Trade Legislation Paints Dour Picture for Nation’s Economy

Wednesday, August 12th, 2009

WASHINGTON, D.C., August 12, 2009 —  The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) today unveiled a comprehensive study on the impact of The American Clean Energy and Security Act of 2009, also known as the Waxman-Markey Bill (HR 2454). The bill aims to reduce greenhouse gas emissions and to cap the amount of carbon that is emitted by U.S. industry. The legislation does so by mandating a cap and trade program and other provisions governing fuel choices available to businesses and consumers. This bill passed the House of Representatives by a slim margin (219-212) earlier this summer. The Senate is expected to release its version of climate legislation in September.

The study, which was commissioned by the NAM and ACCF and conducted by Science Applications International Corporation (SAIC) using NAM and ACCF input assumptions, assesses the impact of the Waxman-Markey Bill on manufacturing, jobs, energy prices and our overall economy. The NAM and ACCF released national data as well as the analysis for 15 industrial states that would be impacted greatly if this or similar legislation is signed into law. The full report, including the data covering the remaining 35 states will be released in the coming weeks.

Jay Timmons, executive vice president of the NAM said, “Climate change is a very complex issue and I hope Senators will look closely at this study as they consider climate change legislation this fall. At a time when our country is struggling to come out of our longest and deepest economic downturn since the Great Depression, lawmakers should be focused on policies that provide incentives for businesses so they can create jobs and grow. Unfortunately, this study confirms that the Waxman-Markey Bill is an ‘anti-jobs, anti-growth’ piece of legislation. Further, leaders of countries such as China and India have made it clear they have no intention of reducing their own emissions. Waxman-Markey would give an edge to overseas competitors, discouraging domestic investment and the creation of American jobs.”

The NAM/ACCF study accounts for all federal energy laws and regulations currently in effect. It accounts for increased access to oil and natural gas supplies, new and extended tax credits for renewable generation technologies, increased World Oil Price (WOP) profile, as well as permit allocations for industry and international offsets. Additionally, the provisions of the stimulus package passed in February are included in this study. Key findings include:

Dr. Margo Thorning, senior vice president and chief economist for ACCF, highlighted the importance of reviewing economic findings while debating the climate change legislation. “This data shows that we cannot divorce the environmental impacts from potential economic damages. Policymakers may have the best of intentions when it comes to the environment, but it’s crucial that we compare the economic cost to the legislation’s actual impact on global GHG reductions. Considering that developing countries such as China and India have publicly stated that they will not undertake similar emissions policies, there would be almost no global environmental benefits from the bill. Ultimately, this study shows that Waxman-Markey, would significantly decrease employment and increase energy prices at a time when we can least afford it.”

Further, this study shows industrial states would be disproportionately impacted by high energy prices, loss of jobs and income. The 15 states analyzed in the initial study include:

1. Arkansas
2. Illinois
3. Indiana
4. Iowa
5. Kentucky
6. Michigan
7. Minnesota
8. Missouri
9. North Carolina
10. Ohio
11. Pennsylvania
12. Tennessee
13. Virginia
14. West Virginia
15. Wisconsin

SAIC used a modified version of the National Energy Modeling System, NEMS/ACCF-NAM 2, and the NAM and ACCF input assumptions, to quantify the impact of the Waxman-Markey bill.

“Policymakers and the public must have a clear understanding of the potential impact of climate change legislation to assess whether it will cause more economic harm than environmental good,” concluded Timmons.

The national and 15 state-by-state economic impacts can be found by visiting: http://www.accf.org/publications/126/accf-nam-study

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American Trucking Associations Tells Congress that Climate Change Legislation Comes at Great Cost to American Consumers

Wednesday, August 12th, 2009

ARLINGTON, Va., August 10, 2009 —  The American Trucking Associations (ATA) today told the U.S. Senate Committee on Environment and Public Works that climate change legislation would impose significant costs on American consumers.

In his statement on behalf of ATA, Ray Kuntz, Chairman of ATA’s Executive Committee and Immediate Past Chairman of the associations, said that any substantial cost increases imposed directly or indirectly on trucks by climate change legislation will curtail the delivery of vital consumer goods across the nation such as food, medicine, and clothing.

“Constraining the country’s freight delivery system would change our way of life for the worse by significantly increasing the cost of everything we buy,” said Kuntz, who is Chairman and CEO of Watkins and Shepard Trucking, based in Helena, Montana.

A one-cent increase in the average price of diesel costs the trucking industry an additional $390 million in fuel expenses. Petroleum suppliers indicate that climate change legislation could increase the cost of gasoline by 77 cents per gallon and 88 cents per gallon for diesel fuel. As trucking companies struggle with already miniscule margins, additional costs for fuel would be passed on to shippers of goods and materials and ultimately to consumers.

In addition to increased fuel costs, Kuntz addressed six other issues in his testimony relating directly to climate change legislation and the trucking industry:

Kuntz serves on ATA’s Sustainability Task Force, which developed a progressive sustainability agenda that will reduce fuel consumption by 86 billion gallons and CO2 emissions by 900 million tons for all vehicles over 10 years by: setting governors on trucks manufactured after 1992 to limit speeds to no more than 65 mph and reducing the national speed limit to 65 mph for all vehicles; reducing engine idling; reducing congestion by improving highways; using more productive truck combinations; supporting national fuel economy standards for trucks; and increasing fuel efficiency by encouraging participation in the U.S. EPA SmartWaySM Transport Partnership Program.

These reasonable measures will bring real results for reducing the trucking industry’s carbon footprint, while at the same time further reducing other regulated emissions, enhancing safety, helping to achieve energy independence, and keeping the nations economic engine churning.

For ATA’s entire sustainability report with detailed explanations, visit www.trucksdeliver.org.

Click here to read the entire testimony from Ray Kuntz.

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American Iron and Steel Institute Wins Energy Efficiency Award

Wednesday, August 12th, 2009

WASHINGTON, D.C., July 30, 2009 —  The American Iron and Steel Institute (AISI) has been honored with the American Council for an Energy-Efficient Economy’s (ACEEE) Champion of Industrial Energy Efficiency Award for Achievement in Promoting Energy-Efficient Economies in the category covering Industrial Leadership.   The award, presented at the 2009 ACEEE Summer Study on Energy Efficiency in Industry in Niagara Falls, NY, recognizes leadership and accomplishment in the energy efficiency field.

“The domestic steel industry is very appreciative of receiving this award as we have worked tirelessly to become the greenest place on the planet to make steel,” said Thomas J. Gibson, AISI president and CEO.

Under the leadership of AISI, the U.S. steel industry has been focused on reducing its energy intensity since 1990 (the Kyoto base year). Through widespread implementation of new technology, such as flat-rolled steelmaking via electric furnace and thin slab caster and application of advanced process modeling, increased recycling, and internal efficiencies, the U.S. steel industry has reduced energy use per ton of steel produced by 33 percent.

AISI tracks energy intensity annually and publishes this industry average in order to assist its members in determining their position versus the average.  By setting up this system, individual companies continue to strive for greater energy efficiencies, leading to reduced CO2 generation.

In terms of recycling performance, over the past two decades the U.S. steel industry initiated an innovative approach to increase the recycling of steel containers.  This effort increased the recycling rate of this particular category from the mid-teens in 1990 to the latest EPA published achievement of 64.3% in 2007.  This achievement positions the steel package as the most recycled food and beverage package in the United States and provides the U.S. steel industry with over one million extra tons of steel scrap per year, resulting in reduced energy consumption.

In addition, the Institute’s research programs occur in large part in cooperation with the U.S. Department of Energy (DOE) and have been focused on process control, process modeling and energy improvements since 1990.    Together, the steel industry and DOE have invested over $70 million dollars of industry and government funds on the issue of energy efficiency.

AISI is one of three 2009 “Champions” who were nominated by their peers and selected by the Awards Committee of ACEEE’s Board of Directors. ACEEE received 56 nominations for this year’s Champions of Energy Efficiency in Industry Award. Selection criteria were based on the nominee’s impact, innovation, and leadership in the energy efficiency field.

AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the material of choice.  AISI plays a lead role in the development and application of new steels and steelmaking technology.  AISI is comprised of 24 member companies, including integrated and electric furnace steelmakers, and 138 associate and affiliate members who are suppliers to or customers of the steel industry.  AISI’s member companies represent over 75 percent of both U.S. and North American steel capacity.  For more news about steel and its applications, view AISI’s Web site at www.steel.org.

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American Forest & Paper Association Relaunches Website With New Content, Organization

Wednesday, August 12th, 2009

WASHINGTON, D.C., August 4, 2009 —  The American Forest & Paper Association (AF&PA) has relaunched its website, www.afandpa.org, with new technology and content that will help policymakers, AF&PA members, the media and others interested in forest products find useful information about the industry and the policy issues critical to its global competitiveness.  The new website is part of a larger initiative by the Association to make broad use of technology to meet the needs of its members.

“We strive to continually improve our member services and to help policymakers make good decisions about issues affecting our companies, workers and communities.  In addition to maintaining our expertise in our industry and the issues impacting it, we share our information widely and the website is an important part of that strategy.  I’m proud that this new resource will help us further enhance our advocacy efforts in support of policies that advance the industry,” said AF&PA President & CEO Donna Harman.

Highlights of the new website include easy-to-use navigation that provides direct access to the association’s policy positions, recent news, information on the industry and details of its economic contributions in each state.  Additionally, all of AF&PA’s main online tools are easily accessible from the front page, including industry statistics, the grassroots Grow the Vote program, recycling information, and the American Wood Council.

Since the new website went online, visits to it have nearly doubled.

Visit the American Forest & Paper Association website here.

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Jim Martin of 60 Plus: Seniors Hard Hit

Monday, June 15th, 2009

James L. Martin, the president of the 60 Plus Association, submitted this op-ed to The Washington Times in June 2009. View on The Washington Times website here.

WASHINGTON, D.C., June 14, 2009 — Very few Americans have been able to isolate or immunize themselves from today’s economic hardships, but for America’s seniors and working families, the impact is even more severe. Savings built and strengthened over a lifetime have been erased. The cost of living continues to climb. And golden years for many that should be filled with travel, relaxation and quality time with grandchildren are instead filled with apprehension and anxiety.

But hey: At least gas and electricity prices are low, right? Wrong. Time to update your calendar. As we welcome in this year’s summer driving season, the price for our essential fuel is on the rise again. Just 10 months removed from record-breaking gas prices, we’ve wasted no time in making another serious run at that mark. Worse yet, all indicators suggest prices have only one direction to go from here (hint: not down).

Unfortunately, even as energy continues to be a topic of active discussion in Washington, not very much of what’s being talked about will do a whole lot of good for our nation’s retirees. Cap-and-trade, renewable-electricity mandates, low-carbon fuel standards – all are part of a plan to hand over control of your gas tank, refrigerator and thermostat to the federal government. And don’t forget about your light bulbs.

What alternatives to a tax-and-mandate-driven energy policy exist? You don’t have to be old enough to remember the days of President Carter to be up on the fact that there’s no silver bullet to achieving long-term energy security and independence. But if we are to make America a more prosperous, more competitive, more secure place in which to live and retire, we must aggressively move forward with the responsible development of abundant energy resources along our nation’s outer continental shelf (OCS).

However, not only aren’t policymakers doing enough to expand the playing field and give American taxpayers more and better access to the resources they own, some are actively working to take away existing areas. It started earlier this year with the decision by Interior Secretary Ken Salazar to rescind already awarded leases on 130,000 acres of energy-rich land in Utah. Then Mr. Salazar shut down a pilot program in Colorado that had turned the corner on cleanly and efficiently developing oil from shale. To add insult to injury, he also announced that a new energy plan – written in the months after Congress allowed its 28-year ban on safe energy exploration offshore to expire – would have to wait an additional six months before his department would even consider putting it into practice.

Actually, it didn’t end there. In April, a court in Washington took the unprecedented step of throwing out the current policy governing our nation’s offshore energy program – casting doubt on whether future energy exploration could take place in Alaska and even if current exploration can continue in the Gulf of Mexico. What did the interior secretary say about that? What did he do to ensure the judges’ orders were complied with and the disaster was averted? We’re still waiting. Check back later.

Only five months into the job, Mr. Salazar may not get it yet – but the American people do. They understand that more energy – especially the estimated 420 trillion cubic feet of American natural gas and 86 billion barrels of American oil that lie off the OCS – will help create good jobs and keep energy prices affordable. They also understand that expanded access to homegrown American energy will help alleviate the financial troubles facing so many retirees struggling on fixed incomes.

The message is spreading. A Monmouth University poll out of New Jersey last week found a whole lot more people living in the Middle Atlantic region favor environmentally sound offshore energy exploration than oppose it. You would expect a poll like that from Texas. Turns out, Paterson,, N.J., and Plano, Texas, have a lot more in common than we think.

Plainly put, America’s seniors deserve an energy policy that ensures that energy remains stable, secure and affordable. Plainer still: We’ve earned it.

Today’s retirees have weathered our share of tough times. We’ve lived through world wars and not-so-great depressions. We’ve overcome every challenge. Our energy security is one of the most important challenges we face. If our government listens to its people and allows us to embrace new, 21st-century technologies that can produce more American energy safely and use what we have more wisely, we will overcome this challenge, too.

James L. Martin is the president of the 60 Plus Association, a nonpartisan seniors-advocacy group with a free-enterprise, less-government, fewer-taxes approach to seniors issues.

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New Report to Announce the Unprecedented Abundance of U.S. Natural Gas Supply

Monday, June 15th, 2009

Experts to discuss growth in U.S. resource base and future consumer impacts

Washington, DC – The American Gas Association (AGA) and the Potential Gas Committee (PGC) will hold a press conference Thursday, June 18, 2009 to release the major findings of the PGC’s year-end 2008 biennial report: Potential Supply of Natural Gas in the United States. The report is expected to reveal that domestic natural gas reserves and estimates of undiscovered resources have grown significantly, in great part due to the emergence of technologies that unlock newly discovered reserves such as natural gas from shale.

WHO:

Chris McGill, supply expert and Managing Director Policy Analysis for the American Gas Association

Dr. John B. Curtis, Director of the Potential Gas Agency, Colorado School of Mines.

WHAT:

With climate change and energy proposals being considered on Capitol Hill this summer, new domestic natural gas discoveries are changing the national debate on energy and future domestic energy supplies. As a part of this dialogue, McGill and Curtis will discuss new natural gas resources, the outlook for natural gas supply, recent trends and consumer impacts.

WHEN:

10:00am Thursday, June 18, 2009 *breakfast will be served

WHERE:

American Gas Association Offices

400 North Capitol Street, NW, 4th Floor

Washington, DC

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NAM Urges Congress to Act Expeditiously to Approve U.S./UAE “123 Agreement”: Vargo Says Agreement Will Create U.S. Jobs

Friday, May 22nd, 2009

Washington, D.C., May 21, 2009 – National Association of Manufacturers (NAM) Vice President for International Economic Affairs Frank Vargo today issued the following statement in response to the Obama Administration’s announcement that it will soon formally submit the U.S./UAE Agreement on Commercial Nuclear Technology to Congress:This U.S./UAE Agreement, formally called the “123 Agreement on Commercial Nuclear Technology,” represents the gold standard across the board in the nuclear cooperation field, and clearly merits approval by Congress. This agreement will provide the legal basis for U.S. companies, large and small, to engage fully with Emirati counterparts, and to compete in the bidding process to supply U.S. goods and services to the nuclear power industry in the UAE.

The UAE has very ambitious plans to invest upwards of $40 billion to develop nuclear power and has demonstrated a clear commitment to the highest standards of safety, environmental protection, and nuclear non-proliferation. Until the formal agreement enters into full legal force, however, U.S. firms cannot move forward on contracts or other key steps with the Emirati authorities.

U.S. manufacturers and suppliers in the nuclear industry have the best products, the best workers, and the best technology. They are well positioned to compete aggressively for this huge commercial opportunity in the UAE’s ambitious nuclear power development program. Further, this agreement includes the strongest-ever non-proliferation commitments. Nuclear power provides clean, safe, and reliable technology.

Top suppliers from around the world are lining up to compete for contracts under this program. It is critical, especially in the current economic environment, that U.S. manufacturers as well as service providers be positioned to compete for this business. We urge the U.S. government to move forward expeditiously. Delay now could cost U.S. firms, workers, and communities.

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ExxonMobil Outlines Achievements in Environmental, Economic & Social Performance

Friday, May 22nd, 2009

2008 Corporate Citizenship Report Details Industry Leading Results•ExxonMobil leads the industry in workforce safety.
•ExxonMobil reduces greenhouse gas emissions.
•Vice President of Public Affairs to host online discussion of Corporate Citizenship Report.

IRVING, Texas–(BUSINESS WIRE)–Exxon Mobil Corporation (NYSE:XOM) today issued its 2008 Corporate Citizenship Report detailing actions to improve environmental, economic and social performance, while providing energy to meet the worlds’ growing demand.

The report details how ExxonMobil reduced greenhouse gas emissions, led the industry in worker safety and oil-spill prevention, and contributed more than eight times its earnings — a record $402 billion — to economies around the world through taxes and purchases of goods and services.

“ExxonMobil’s role is to provide energy to sustain and improve standards of living for people worldwide while delivering a return to our shareholders,” said Rex W. Tillerson, chairman and chief executive officer. “We are committed to taking on this challenge in a manner that reflects our own culture of integrity while balancing the components of sustainability – economic growth, social development and environmental protection.”

The report details how ExxonMobil:

•Leads the industry in workforce safety with a 12 percent reduction in lost-time incident rate on average, each year since 2000.
•Reduced direct greenhouse gas emissions from its operations.
•Invested more than $1.5 billion in the past five years to increase energy efficiency and reduce greenhouse gas emissions.
•Achieved zero spills from ExxonMobil-operated and long-term chartered marine vessels in 2008 and reduced the number of spills greater than one barrel by 60 percent since 2001.
•Strengthened corporate governance by enhancing the role of the presiding director. The presiding director has the authority to call and chair executive sessions of non-employee directors, and chairs all board meetings in the absence of the chairman. The presiding director reviews board meeting topics, agendas and schedules with the chairman prior to distribution to the board, which consists of one employee and 10 non-employees.
•Provided $225 million in combined corporate giving in the form of cash, goods and services worldwide.
•Employed a variety of economic support and incentive programs for capacity building – collectively referred to as national content development. In Angola for example, ExxonMobil enhanced local capacity through business development and expenditures on local goods and services which totaled $1.5 billion.
In a new initiative this year, ExxonMobil invited a group of experts in non-financial reporting and corporate citizenship to review and provide feedback on the reporting process. The panel provided guidance and comments which reinforced the effectiveness of the ExxonMobil reporting process in addressing a wide range of challenging issues. The panel also provided feedback on areas for future improvement, such as the inclusion of a more detailed description of future action plans and broader discussion of the challenges faced in balancing the drivers of sustainability.

“In all areas of corporate citizenship, we listen to others in order to understand different perspectives, to regularly assess our progress, and to know where we need to improve,” Tillerson said. “While proud of our achievements in 2008 we are not complacent. That is why we retain a relentless focus on all key indicators of our performance.”

To underscore the importance of community engagement as a critical component of good corporate citizenship, Ken Cohen, ExxonMobil’s vice president of Public Affairs will be available for an online web chat to answer questions about ExxonMobil’s 2008 Corporate Citizenship Report. The online discussion will take place at 2:30 pm, Central Time on Friday, June 5 at Live Q&A on the washingtonpost.com. Questions can be submitted live during the event or in the lead up to the event.

About the Corporate Citizenship Report

The Corporate Citizenship Report was prepared in accordance with the reporting guidelines and indicators of the International Petroleum Industry Environmental Conservation Association and the American Petroleum Institute Oil and Gas Industry Guidance on Sustainability Reporting. The majority of these indicators are also consistent with the indicators used by the Global Reporting Initiative in the G3 Sustainability Reporting Guidelines Version 3.0.

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to find better, safer and cleaner ways to provide energy to support development and improved living standards around the world. ExxonMobil holds an industry-leading inventory of resources, is the largest refiner and marketer of petroleum products and its chemical company is one of the largest in the world.

Exxon Mobil Corporation and the ExxonMobil Foundation engage in a range of philanthropic activities that advance education, health and science in the communities where ExxonMobil has significant operations. In the United States, ExxonMobil supports initiatives to improve math and science education at the K-12 and higher education levels. Globally, ExxonMobil provides funding to improve basic education and combat malaria and other infectious diseases in developing countries.

In 2008, together with its employees and retirees, Exxon Mobil Corporation, its divisions and affiliates, and ExxonMobil Foundation provided $225 million in contributions worldwide, of which more than $89 million was dedicated to education. Additional information on ExxonMobil’s community partnerships and contributions programs is available at www.exxonmobil.com/community.

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ConocoPhillips Statement on American Clean Energy and Security Act of 2009

Friday, May 22nd, 2009

HOUSTON, May 19, 2009 — ConocoPhillips views the current Congressional debate regarding climate as important because it underscores the complexity in developing legislation that balances our nation’s economic growth, national security and greenhouse gas (GHG) emission reduction needs. The American Clean Energy and Security Act of 2009 represents an important step in this process.While the American Clean Energy and Security Act of 2009 addresses some of the policy issues critical to our company, some key issues remain unresolved. The proposed bill will establish a cap on GHG emissions, and regulated entities must submit allowances, or permits, to cover their emissions. The government will distribute some of these allowances to some industries without being subject to auction in order to dampen the economic impact of the cap-and-trade program on these industries and their consumers. ConocoPhillips supports fair and equitable allocation of allowances to fuel producers and their consumers and we are concerned that the current draft of the American Clean Energy and Security Act does not meet this threshold.

Under the provisions of the proposed bill, U.S. refiners will have a legal compliance obligation to purchase allowances for GHG emissions from their manufacturing facilities, as well as allowances for consumer GHG emissions associated with using refined petroleum products, such as transportation fuels. This means that U.S. refiners will be bearing the cost for roughly one-third of the nation’s GHG emissions but only receiving 2 percent of the total allowances under the current proposal. It is likely that refiners will not be able to pass along 100 percent of the costs of securing allowances, and they should be provided an allowance allocation for unrecovered costs.

This situation also will be impacted by imports of fuels from outside the United States. Like other trade-exposed U.S. industries, the domestic refining industry will face competition from fuel producers in countries that either choose not to regulate GHG emissions or choose to protect their domestic industries. We expect our exposure from foreign refiners to increase in the future in large part due to several very large refineries being constructed overseas that are targeting the U.S. market.

The current emission allowance allocation proposal in the bill fails to provide adequate protection to domestic refiners from unregulated foreign competition and leaves the sector exposed to undue economic harm. The reduction in U.S. refining capacity that could result from this policy would lead to increased imports of transportation fuel, erosion of national energy security, and loss of American jobs.

ConocoPhillips remains committed to the development of a comprehensive, national climate protection program that addresses greenhouse gas emissions while ensuring the availability of the secure, affordable and reliable energy supply necessary for continued economic recovery and growth. We look forward to continued constructive collaboration on this important issue.

ConocoPhillips is an integrated energy company with interests around the world. For more information, go to www.conocophillips.com.

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ATA’s Remarks about Energy Day 2009

Thursday, May 14th, 2009

http://www.airlines.org/economics/energy/CEA+Energy+Day+May+13.htm

ATA Articulates Energy/Economy Nexus

Remarks of John P. Heimlich, ATA Vice President and Chief Economist
Consumer Energy Alliance (CEA) Energy Day on Capitol Hill
May 13, 2009

On behalf of the U.S. airline industry, I thank you for the opportunity to speak today. In the not-too-distant past, our industry was notably larger. Employment at U.S. passenger airlines peaked in May 2001 at more than 542,000 full-time jobs. Today that number stands at just 392,000, a drop of 150,000 jobs; regrettably, further cuts are likely. You might also be interested to know that commercial aviation ultimately drives more than 10 million U.S. jobs and more than five percent of the nation’s economy.

While virtually every U.S. industry has been harmed by the scope of today’s global recession, the airlines’ ability to rehire, to grow its employment ranks and to enable the growth and competitiveness of so many other industries depends immensely on the stability and security of our nation’s energy portfolio. In 2008, U.S. passenger and cargo airlines spent a record $58 billion on jet fuel, nearly three-and-a-half times the fuel bill for 2000. Unprecedented volatility in fuel prices and far-too-frequent disruptions to our fuel supply have rendered unsustainable significant levels of air service and staffing, forcing cuts in routes and frequencies in communities across the nation. Many of those communities lost all scheduled air service, with no sign of restoration anytime soon.

Yet, we embrace the future with great expectations. The transformation of our aging air traffic control system from radar-based to satellite-based navigation, along with the development of alternative jet fuels, offers aviation a golden opportunity to enhance U.S. energy efficiency and competitiveness while yielding tangible environmental benefits and creating tens of thousands of jobs.

The nation’s airlines applaud today’s congressional hosts, as well as President Obama and his administration, for their leadership and keen focus on the energy challenge facing America. We are extremely proud of our industry’s unrelenting environmental progress, having increased fuel efficiency more than 110 percent since 1978, including more than 25 percent since 2000 alone. And we have committed voluntarily to continue along that path, pursuing new equipment, environmentally friendly alternative fuels, and more efficient air navigation services.

But these efforts are not sufficient by themselves. Our industry, and many others, will long depend on fossil fuels for a substantial share of our energy. In addition to the development of wind, solar, nuclear and the like, a truly comprehensive, meaningfully balanced U.S. energy policy must include the expanded cultivation of conventional domestic resources, including oil and gas, as well as coal. To deny that is to deny reality. The good news is that twenty-first century technologies, engineering know-how and industry best practices allow us to tap these sources in a far more environmentally responsible manner than most are aware.

Let me be crystal clear on this – the Air Transport Association of America supports a balanced, comprehensive U.S. energy policy that enhances a secure supply of environmentally friendly energy characterized by increasingly stable costs. What does that mean? First, I cannot stress enough the importance of promoting conservation and efficiency by upgrading our air traffic infrastructure and redesigning congested airspace. Second, we must accelerate the development and deployment of alternative aviation fuels. In 2006, ATA co-founded the Commercial Aviation Alternative Fuels Initiative, working in concert with the Federal Aviation Administration, the Air Force and several other government agencies, as well as academia and the energy community. Third, we must ensure that energy prices are determined by the fundamentals of supply and demand rather than the whims of financial players with no ties to the physical product. Reform of our energy commodities markets is essential, adding sorely needed transparency and oversight to the trading of petroleum, heating oil and, potentially, carbon futures. Last, but not least, we must expand access to traditional domestic sources of energy such as oil and gas, simultaneously cultivating alternatives.

With every new proposal emanating from Congress, let’s be sure to score each one not only on its environmental merits but also on its contribution to both energy security and economic security. After all, a truly comprehensive energy policy should treat these as compatible – not conflicting – goals. Too often, crafters of legislation have failed to appreciate the interrelationship among different petroleum products, for example not realizing the impacts that a policy aimed at motorists might have on trucking, maritime or aviation.

There are lots of paths to a greener future, but reducing the viability of air service and the thousands of associated jobs is not the right one – especially in our increasingly global society. As one UNC professor has written, aviation is the physical Internet. Others have called us the nation’s circulatory system. Constraining our growth is tantamount to constraining our economy. Let me assure you – the airlines want to help, and we are confident that a policy embracing technology, operations and infrastructure is the best way to ensure that America’s future is not only greener on the environmental scale, but also on the financial scale.

A thoughtfully crafted U.S. energy policy will recognize these goals as entirely compatible. In our case, we are certain that smarter skies will translate to smarter energy and vice versa, fostering air service levels that are both economically and environmentally sustainable. Simply put, when it comes to aviation and the jobs that depend on it, energy matters.

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U.S. Natural Gas and Oil Producers Launch “Energy In Depth” Initiative to Educate the Public, Prevent Losses

Wednesday, May 6th, 2009

WASHINGTON, DC – A coalition of America’s oil and natural gas producers today released the findings of a major research initiative, which, among other things, concludes that enacting new federal environmental regulations – especially related to hydraulic fracturing – could have disastrous economic consequences and increase our dependence on foreign sources of oil.

Known as Project BRIEF – Bringing Real Information on Energy Forward – the research initiative is comprised of studies on the history and progress of effective state regulation of energy development, the proper role of the federal government in regulating development, and the economic consequences associated with changes to existing regulatory frameworks. To highlight the Project BRIEF findings and educate the public, the coalition also launched a new website, which can be found at www.EnergyInDepth.org.

“The scope of the Project BRIEF research project is unprecedented, and its findings are stark,” said Lee Fuller of the Independent Petroleum Association of America, one of the coalition organizers which represents the 5,000 smaller, independent producers that drill 90 percent of the nation’s wells. “Implementing new federal regulations that threaten domestic energy production and increase costs – without creating any additional environmental benefits – is the wrong policy course for the country, and could cost thousands of hard-working Americans their jobs. That’s the bottom line in the BRIEF reports, and the reason we’ve launched this public education initiative.”

America’s natural gas and oil producers provide massive untold contributions to the national economy, and play a critical role in ensuring that America’s energy needs are – and will continue to be – met. Saddling these producers with new, unnecessary, and ineffective environmental regulations could put them out of business, destroy jobs, and increase our U.S. dependence on foreign sources of energy. That’s especially true if lawmakers in Congress move forward with plans to target hydraulic fracturing, a safe and commonly used production technology that renders possible the efficient extraction of energy resources from shale rock.

“Energy is the lifeblood of our economy and the fuel that sustains and creates good jobs here at home,” Fuller continued. “The men and women who work for America’s roughly five thousand small and independent oil and natural gas producers are using 21st century technology to develop supplies safely, efficiently, and effectively – as their long record of achievement illustrates. Policymakers and the American public need to get unvarnished facts and see firsthand the environmentally-sensitive technology we have at our command today to produce energy safely. They’ll get both, and more, with Energy in Depth.”

Key Findings of the Project BRIEF reports include:

Potential new regulations now circling around Washington could:

For more information on Project BRIEF and to learn more about American energy production, visit www.EnergyInDepth.org – a first-of-its kind, insider’s look at domestic energy production. It features a virtual well site, a storehouse of interactive features and videos aimed at giving users an up-close view of American oil and natural gas production.

Some of the other features visitors will find useful on Energy In Depth:

For more information or to test out the available features, visit www.EnergyInDepth.org.

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IPAMS Expresses Concern Over Senate Bill on Energy Security, Climate Change

Wednesday, January 21st, 2009

The Independent Petroleum Association of Mountain States
News Release
Date: January 14, 2008
Contact: Jon Haubert
         (303) 623-0987
         jhaubert@ipams.org

First Week: Congress Deals Blow to Energy Security, Climate
Passage of S. 22 will impede domestic energy development, hinder goals of increasing energy security and decreasing carbon footprint

(DENVER)- The Independent Petroleum Association of Mountain States (IPAMS) expressed concern over the 111th Congress’ apparent lack of interest in helping President-elect Obama achieve his twin goals of increasing energy security and reducing greenhouse gas emissions.

“By further restricting access to the abundant, domestic, and clean natural gas in the Intermountain West, the U.S. Senate is sending a clear message to President-elect Obama and to the American people— ‘We have no interest in increasing energy security and reducing our carbon footprint,” said Marc W. Smith, IPAMS Executive Director.

While most Americans are anxious about the faltering economy and rising unemployment rates, today the Senate moved forward on S. 22, Public Lands Omnibus Bill, which restricts the development of energy resources on federal lands, and puts into place another layer of bureaucracy by creating the National Landscape Conservation System. Senate Majority Leader Harry Reid (D-NV) brought the bill to a vote under an obscure rule that circumvented the committee process and did not give new members of Congress the chance to debate or amend the bill. The NLCS is also the subject of a Department of Interior Inspector General investigation into possible illegal coordination between lobbyists for environmental groups and federal officials.

“It is unconscionable to pass a 1,294 page bill just a week after new members of Congress were sworn in,” said Smith. “Clearly there has been no deliberative process or thoughtful consideration of the consequences of this bill.”

“Congress should have taken more time to analyze the impact of this broad-sweeping legislation on domestic energy production before it acted. The Intermountain West is a critical energy supplier to the country, contributing 27% of the nation’s natural gas. America’s dual goal of increasing energy security and reducing greenhouse gas emissions simply cannot be achieved if Congress continues to restrict domestic energy development,” concluded Smith.

Natural gas production on public lands in the Intermountain West will become even more important as President-elect Barack Obama and the 111th Congress seek to fulfill their campaign promises of making our nation less dependent on foreign sources of energy and reducing greenhouse gas emissions. Ninety-seven percent of the natural gas consumed in the U.S. is produced in North America (27 percent of it in the West), and since it emits just over half the CO2 of coal, we will need even more natural gas in order to reduce our carbon footprint in coming years.

S. 22 also creates a whole new Federal lands classification for National Heritage Areas (NHA) that would extend National Park Service jurisdiction beyond national park and monument boundaries, and sets aside the energy-rich Wyoming Range, where enormous supplies of domestic, clean natural gas are located.

“Less than six months ago, Congress wouldn’t have dared restrict domestic energy development. Since then, prices have fallen with reduced world demand and increased supplies of domestic natural gas. Even so, the underlying challenges of energy security remain. Placing even more lands off limits will limit where natural gas, wind, and other clean sources of energy can be produced.”

“It’s important for Congress to remember that natural gas development is a very small and temporary impact on our federal lands. Independent energy producers go above and beyond the literally thousands of environmental regulations now in place to ensure that wildlife and the environment are protected. The energy resources located beneath these lands belong to all of us, and Congress should allow them to be developed for the benefit of all Americans,” concluded Smith.

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The Independent Petroleum Association of Mountain States (IPAMS), founded in 1974, is a non-profit trade association representing more than 400 independent natural gas and oil producers, service and supply companies, banking and financial institutions and industry consultants committed to environmentally responsible oil and natural gas development in the Intermountain West. More information on IPAMS and its members is available at www.ipams.org.

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Lamar McKay To Lead BP America

Wednesday, January 21st, 2009

BP
Release date: 06 January 2009

Lamar McKay to Lead BP America

HOUSTON – Lamar McKay has been appointed Chairman and President of BP America, Inc. and will serve as BP’s chief representative in the United States. He will succeed Robert A. (Bob) Malone who has elected to retire after 34 years with the company.

Commenting on the change, BP Chief Executive Officer Tony Hayward said: “Bob Malone has made an extraordinary difference during his tenure at BP America and during his long career with BP. We are a better company because of his ability to connect with the men and women who operate and maintain our facilities and his unflagging commitment to safe operations. All of us at BP appreciate what he has done and wish him well in his next endeavours.”

Mr. McKay, a member of the BP p.l.c. Executive Management Team, has led the company’s Special Projects Team since early 2008. In that capacity, he played a major role in establishing a new governance model for TNK-BP, BP’s Russian joint venture. Prior to that assignment, he served as executive vice president and chief operating officer for BP America and brings deep knowledge of BP’s US operations to his new position.
Mr. McKay joined Amoco Production Company as a petroleum engineer in 1980 and later served in a variety of operating and commercial roles. During his career he has led upstream production businesses in the Arkoma Basin, the Gulf of Mexico and the North Sea. After working on the BP-Amoco merger, he led BP’s worldwide exploration and production strategy efforts followed by a posting as chief of staff for the company’s global exploration and production business. Prior to his first assignment with BP America, he served as group vice president for Russia and Kazakhstan.

Mr. McKay holds a Bachelor of Science degree in petroleum engineering from Mississippi State University. He and his wife Nancy will be based in Houston, where BP business units are involved in oil and gas exploration and production, refining, chemicals, supply and trading, pipeline operations, shipping, and alternative energy. Houston is home to nearly 7,000 BP employees.

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Further information:
Name: BP press office
Location: Houston
Phone : +1 281 366 5174

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AISI Reports Steel Industry Reaches New Milestone in Energy Efficiency

Wednesday, January 21st, 2009

The American Iron and Steel Institute
For Immediate Release
January 14, 2009

STEEL INDUSTRY REACHES NEW MILESTONE IN ENERGY EFFICIENCY
33 percent improvement in energy intensity achieved since 1990

WASHINGTON, D.C. – The American Iron and Steel Institute (AISI) reported today that the United States steel industry has achieved a new milestone in energy efficiency by reducing its energy intensity per ton of steel shipped by approximately 33 percent since 1990.   This represents a further improvement since AISI announced a 29 percent reduction in 2006.  Because of the close relationship between energy use and greenhouse gas emissions, the industry’s aggregate carbon dioxide (CO2) emissions per ton of steel shipped have also been substantially reduced.    Compared to the Kyoto Protocol’s call for an average U.S. reduction of 7 percent in greenhouse gas emissions between 1990 and 2012, this means the American steel industry has already surpassed the Kyoto target.

“This improvement in energy efficiency is evidence of the steel industry’s longstanding commitment to sustainability,” Thomas J. Gibson, AISI president and CEO, said.   “This commitment has brought our processes almost to the limit of energy-efficiency. Our future plans are built round sectoral programs, such as the Asia Pacific Partnership—where steelmakers and their governments in China, India, Australia, Canada, Japan, and Korea, with us, are discussing energy intensity reduction targets until 2020. In the long-term, we are working on developing breakthrough steelmaking processes that emit little or no CO2.”

On average, 1.14 tons of carbon dioxide was emitted in 2007 for every ton of steel produced in the United States.  The low CO2 intensity of American-manufactured steel coupled with its infinite recyclability is why products made of steel have such low environmental impacts during their life cycle.  It is why steel is the material of choice in so many applications.

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AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice.  AISI also plays a lead role in the development and application of new steels and steelmaking technology.  AISI is comprised of 25 member companies, including integrated and electric furnace steelmakers, and 130 associate and affiliate members who are suppliers to or customers of the steel industry.  AISI’s member companies represent over 70 percent of both U.S. and North American steel capacity. 

For more news about steel and its applications, view AISI’s website at www.steel.org.

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NEI Responds to Obama’s Selection of Steven Chu as Energy Secretary

Wednesday, December 31st, 2008

Nuclear Energy Institute
FOR IMMEDIATE RELEASE
Contact:202-739-8000 For Release:December 15, 2008

NEI Responds to President-elect Obama’s Selection of Steven Chu as Energy Secretary

WASHINGTON, D.C.— President-elect Obama has selected Steven Chu, director of the Lawrence Berkeley National Laboratory, to be Secretary of Energy.  Marvin S. Fertel, acting president and CEO at NEI, made the following statement about the nomination.

“In nominating Steven Chu to be Secretary of Energy, President-elect Obama has sent a strong message that America’s energy leadership will be entrusted to an advocate for the expanded development of carbon-neutral sources of energy. Dr. Chu recognizes the role that nuclear energy plays in reducing greenhouse gases in our electricity generation portfolio.

“In August, Dr. Chu joined his fellow directors of the DOE National Laboratories in signing an important white paper on the role of nuclear energy: A Sustainable Energy Future: The Essential Role of Nuclear Energy. Dr. Chu and his colleagues concluded that nuclear energy ‘must play a significant and growing role in our nation’s – and the world’s – energy portfolio.’ The national laboratory directors identified nuclear energy as the only existing expandable base-load electric generation technology that can provide security through reliable fuel supply and environmental stewardship by avoiding emissions of greenhouse gases and other pollutants.

“Dr. Chu is an internationally renowned physicist, highlighted by his Nobel Prize in physics in 1997. He is acclaimed for his technical competence and his commitment to breakthrough energy technologies, and he has acquired a reputation for challenging scientists to find environmentally friendly energy technologies. We look forward to working with Dr. Chu and the department as America confronts unprecedented challenges in expanding its domestic energy generation in an environmentally responsible way.”

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The Nuclear Energy Institute (NEI) is the policy organization of the nuclear energy and technologies industry and participates in both the national and global policy-making process. NEI’s objective is to ensure the formation of policies that promote the beneficial uses of nuclear energy and technologies in the United States and around the world.

For more information on Nuclear Energy Institute, please visit their website at www.nei.org.

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