Consumer Energy Alliance

LCFS

Now We’re Talking, Part 1

Monday, March 8th, 2010

By David Holt, President of Consumer Energy Alliance

Higher energy costs lead to higher utility and gasoline prices for consumers.  Enacting a national Low-Carbon Fuel Standard (LCFS) will divert affordable, previously U.S-bound energy supplies from Canada to our competitors, reduce access to critical energy products such as diesel and home heating fuel, and increase prices at the pump – all without doing a thing to reduce global greenhouse gas emissions.  In fact, greenhouse gas emissions will increase as we turn our back on North American sourced oil and begin importing increasing amounts of energy from other continents via long ocean voyages.  We won’t use less energy because there is a LCFS; we’ll just obtain it elsewhere.

These conclusions are well documented.  Please download the PowerPoint on LCFS presented by one of the top energy policy analysts at the U.S. Department of Energy at a transportation conference last summer – and be sure to take a look at slides 16 and 17. You might also scan an LCFS study published in the American Economic Journal by professors from North Carolina and California. According to their research, an “LCFS cannot be efficient…,” and,  “…contrary to the stated purpose, an LCFS can actually raise carbon emissions.”

Since it was founded in early 2006, Consumer Energy Alliance has worked to promote policies that ensure an adequate supply of energy.  CEA is not opposed to using cleaner, more environmentally-friendly sources of energy and has embraced a “we need it all approach.”  In light of this mission, we were surprised at the recent statement from Natural Recources Defense Council (NRDC) lawyer, Liz Barratt-Brown, who asserted in an environmental advocacy blog that CEA’s opposition to the LCFS must mean that our organization is “against shifting to cleaner fuels”.   She alleged that CEA uses “deception” to represent ourselves.

While conducting its research project on CEA, it appears NRDC missed a recent post on our blog hailing the administration’s commitment to energy conservation programs, especially its efforts to promote and sustain a robust plan for home weatherization and re-insulation.  NRDC also missed CEA’s press release applauding the mayor of Houston for getting an important solar energy project across the finish line in that great city. And it must have missed CEA’s many public statements in support of wind power where  more needs to be done, and done now, to cut through the red tape and bring more of these installations online in parts of the country where wind generated electricity is both needed and efficient.

It’s true that CEA counts producers of conventional energy sources among its coalition, after all we are the Consumer Energy Alliance; a complete listing of our affiliates has always been available online. In her NRDC blog, Ms Barratt-Brown  finds it convenient to characterize our organization as an assemblage of “Big Oil” interests.  Were her blog even handed, it would note that we represent an even larger number of energy consumers: a full 60 percent of our affiliates are energy consumers.  While these consuming groups don’t see eye-to-eye with the producing groups on every issue all of them embrace and support CEA’s broad mission to advance a national energy policy that encourages us to conserve what we have, allows us to safely produce what we need, and invests in the kind of technology we believe will be critical in creating jobs, revenue and opportunity in the future.

It’s a big effort, to be sure, but it is one supported by a larger and more diverse group of interests than NRDC may realize. Among our more than 130 member companies, we’re proud to work with steel manufacturers, plumbing and heating contractors, community and neighborhood organizations, seafood producers, biodiesel producers, fertilizer groups, truckers, airlines, tourism officials, and many, many others. But the backbone of our organization isn’t found there. It’s made up of the more than 265,000 everyday Americans who have signed up over the years to support our cause, men and women who believe in a balanced, sensible energy strategy for this country, and understand the relationship between such a strategy and the creation of jobs, security and affordable energy.

Yes, we disagree with NRDC on some issues.  However, there is reason to believe that we agree on a number of other matters.  We know that NRDC is not anti-consumer just as we are not anti-environment.

I’m delighted to continue a dialogue in the future, and I’m also hopeful that we can dispense with the personal attacks and schoolyard insults, and get down to the serious business of crafting commonsense energy solutions for the American people.

Tags: American Economic Journal, American energy, balanced energy, CEA, Consumer Energy Alliance, David Holt, greenhouse gas, LCFS, Liz Barratt-Brown, Low-Carbon Fuel Standard, Natural Resources Defense Council, NRDC
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Truckers join fight against low carbon fuel standard

Thursday, February 18th, 2010

In states like California that have adopted low carbon fuel standards, truckers are emerging as one of the biggest opponents – and with good reason. The American Trucking Association recently joined in a lawsuit against the California Air Resources Board over the state’s low carbon fuel standard, which it says would not only open the door to an increase in foreign crude oil, but would also make it harder for truckers in California to compete with those in neighboring states.

The truckers have a point. While we here at CEA have been largely focused on the threat such standards posed the overall domestic oil industry, low carbon fuel standards could also make interstate commerce a lot more difficult, especially if different states pass different variations of the law.

It’s very similar to what could happen on a global scale. While a preference for lighter crudes from far away could trigger a surge oil imports, businesses looking to save costs locally could simply hire truckers from, say, Nevada, instead of California, who must pay dearly to comply with the low carbon fuel standard and inevitably will pass that cost along to their customers.

In some instances, a low carbon fuel standard might require truckers to buy new trucks capable of running on so-called low-carbon fuels, at a cost of $100,000 or more per vehicle. It’s a staggering amount that truckers will be hard pressed to afford, particularly if they see increase competition from out-of-state fleets.

This story notes that out-of-state truckers running on more affordable heavy fuels “might continue to pass through parts of California with impunity.” Alternatively, in-state truckers based close to the border could just drive to another state to fill their tanks. A new set of winners, losers … and scammers would emerge. And all for what? Increased dependence on oil from Saudi Arabia and other places far from home.

Tags: american trucking association, california air resources board, domestic oil industry, LCFS, Low-Carbon Fuel Standard, truckers
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CEA February 2010 Newsletter

Tuesday, February 2nd, 2010

CEA Newsletter
Issue 35

Message from CEA President David Holt
In recent days, President Barack Obama delivered his first State of the Union address which focused on an increase in government action to combat the nation’s existing economic problems. The President called for assertive development of safe, clean nuclear power as well as increased energy efficiency and renewable energy.

CEA is in complete agreement with the President’s emphasis on these areas of American energy production, but stand strong on our stance that responsible development of these resources must occur as part of a balanced, all-of-the-above energy policy that includes traditional resources, such as oil and natural gas, in addition to alternative sources.

Currently, actions are speaking louder than the words of the President’s recent speech. Over the past year, the Administration has put the brakes on many essential American energy developments, including production of oil shale in the western United States and American offshore resources. The Administration has revoked many oil and gas leases which had already been issued resulting in the potential loss of millions of dollars in royalties for the nation and numerous jobs for its people.

Numerous other initiatives promoted by the Administration would have negative impacts on the economy, including hiking taxes on America’s oil and gas companies – a policy that would lower domestic energy production at a time when the nation needs increased energy sources.

When the nation is calling out for more energy, the Administration is taking action to restrict its development. During the past year, fewer onshore and offshore acres have been leased than in any previous year on record and the government brought in less than 1/10^th of the revenue from oil and gas lease sales in 2009 than the year before.

Words are only as strong as the actions behind them. Right now, the United States needs robust and stable energy policy that will encourage economic recovery and job creation. The Administration’s actions are in direct conflict with progress in these areas.

The United States must not unreasonably restrict development of traditional energy sources, such as oil and natural gas. Unnecessary restriction of American resources would put a heavier burden on an already struggling economy and hinder the future success of the United States and her citizens while forcing a stronger national dependence on unstable foreign resources.

The focus of our nation’s energy policy should be balance – a balance between concerns over the environment and climate with the responsibility of ensuring the well-being of the American people, job creation and economic growth. To keep the nation’s interests in balance, it is essential that U.S. energy policies reflect an all-of-the-above approach that includes reasonable and responsible development of traditional resources as well as alternative sources, including solar, wind, wave and more.

As the Administration develops its energy initiatives, CEA is working hard and moving forward in promoting policies and education that will benefit all American consumers. We recognize the importance of American energy development of all types of energy and are working with lawmakers and stakeholders to develop policies favorable to domestic production of renewables and traditional sources.

Thank you for being an active part of CEA. Working together, we will meet our nation’s energy challenges and help secure a successful economic future for America. Your support is critical.

David Holt
President

Ensure a Balanced Approach to America’s Offshore & Ocean Resources!
Currently, the federal government is considering a plan for our nation’s oceans that, if implemented, would significantly impair our nation’s ability to safely develop its own offshore energy, including oil, natural gas and renewable energy. To help ensure that the Administration and the Ocean Policy Task Force adopt a framework that will strengthen the American economy and improve energy security, please submit a comment in support of the safe and responsible development of U.S. offshore resources. Send in your comments today!

Help Defeat Efforts to Ban North American Energy and Increase Prices at the Pump!
The Low-Carbon Fuel Standard (LCFS) is being sold to the American public as a way to blend transportation fuels with low-carbon alternatives so that tailpipe CO2 emissions can be reduced. But the fact is that affordable and reliable lower-carbon fuel options are not yet available. As a result, an LCFS simply will increase the cost of diesel fuel and gasoline and will place certain domestic supplies of transportation fuels off limits. Increasing the cost of transportation fuel and U.S. dependence upon foreign sources of petroleum is simply unsound energy policy.

Join our effort to defeat these measures, which would put an economic stranglehold on America and leave U.S. consumers stuck with higher prices at the pump. Send in your comments today!

Visit the CEA Store – Show your support!
CEA recently launched an online store complete with CEA and domestic energy development-themed merchandise. We’ve included many unique items that will appeal to every taste and budget, such as T-shirts, sweatshirts, bags, yard signs, buttons, mugs and even a doggie-sized T-shirt for your four-footed friend. Help CEA spread the word regarding the necessity of a balanced energy policy for America! Visit the CEA Store today.

CEA Welcomes New Affiliate Members
CEA is proud to announce the addition of several new affiliate members who have joined our alliance in recent months: American Public Power Association, Association of Oil Pipelines and Nucor Steel. For a complete list of CEA’s valued affiliates, click here.

CEA Blog: One Year Later, Actions Speak Louder Than Words
Check out CEA’s recent blog entry about the actions and restrictions of the Obama Administration during 2009 related to American energy development. Join the conversation at CEA’s website. Read blog…

Consumer Corner: Bring Your Green To WORK!
Maybe you’ve already made your home energy-efficient – now it’s time to take your green to work! EnergyStar.gov is currently promoting a nationwide campaign that encourages all Americans to practice energy efficiency not only in their homes, but also their workplaces.

First things first – create a “Green Team” at your office that encourages others to make an effort when it comes to saving energy. Then, follow a simple checklist to implement green tips. Included on the list are: 1. Set your computer and monitor to automatically enter “power save” mode when not in use, 2. Use a power strip as a central turn-off spot, 3. Unplug laptops, cell phones and chargers after use – leaving them plugged in wastes energy!, 4. Swap out old-fashioned light bulbs for new Energy Star qualified bulbs – last 10 times longer and use 75% less energy!, and 5. Keep air vents unblocked so that air can flow freely. Start your Green Team today!

China Surging Ahead With Clean Energy Development
Over the past year, China has greatly expanded clean energy development efforts, including attaining the position of the world’s largest maker of wind turbines, sparking concern that the United States is falling behind. Read article…

Federal Government Announces Energy Efficiency Plans
The White House recently announced plans to reduce the federal government’s energy use and emissions by 28 percent (from 2008 levels) by 2020. Read article…

Opinion: Highway Users & Energy Companies: Where do our interests meet?
By Greg Cohen, American Highway Users Alliance

With motorists, bus drivers, truckers, RVers, and motorcyclists dependent on reliable and affordable energy, the inseparable relationship between highway users and energy is clear and unquestionable.  Thus, it is not surprising that both the highway and energy industries often support the same policies, including support for additional, stable supplies of fuel and maintaining a strong user fee principle for highway funding.

Both highway users and the energy community agree that an excise tax on gas is necessary to maintain our roads.  And as long as the tax on petroleum is seen by politicians and the public as a user fee specifically for highway usage, legislators cannot use it as a blank check to pursue broad ideological agendas. With this in mind, as long as the user fee is maintained, the United States will continue to have among the lowest taxes on petroleum among industrialized nations. For highway users, this means a cheaper and safer trip.  For energy companies, this means limits to taxation and a better bottom line.

Every day, energy companies and highway users encounter many of the same painstaking issues as we attempt to make the improvements and innovations necessary to keep America moving.  Despite incredible engineering advances that make our modern projects overwhelmingly beneficial for people and the environment, we face the same adversaries.  Both energy and highway projects are routinely delayed for decades by bureaucratic red tape, and opponents remain ever hungry to target our industries for taxation and regulation.  Our consumers are also targeted by those who wish to change our behaviors – sometimes through coercive measures developed by unelected bureaucrats.  We therefore share a unique set of challenges and typically share the same supporters and opponents.

Politically active highway users recognize this, and have reacted to many of these challenges by cooperating hand-in-hand with the energy industry to raise awareness of the benefits of each other’s projects.  Often, the solutions to project delays in the highway and energy fields are similar.

On the nation’s most prominent topic of energy discussion, “cap-and-trade”, the American Highway Users Alliance has joined with some energy companies and many other partners to oppose legislation that places a disproportionate burden on the oil industry.  While we envision a cap-and-trade bill that could garner our support, we have not found one in either the House Waxman-Markey bill or the Senate Kerry-Boxer bill.  We continue to look for Senators who are open to a plan that would exempt downstream fuels from the cap and apply fuel cost increases to highway project funding.  And we have worked tirelessly to publicize the damaging effects that the Waxman-Markey bill would have on fuel prices.

The mutual interests of the highway and energy communities will continue to intersect, just as they do at every gas pump in America, and we will continue to work together on these issues to help make America safer and more mobile.  As two industries that are so vitally important to America’s economy and culture, it is a great relationship to be in.

For more information on the American Highway Users Alliance, visit www.highways.org.

Affiliate Spotlight: Independent Petroleum Association of America
The Independent Petroleum Association of America (IPAA), headquartered in Washington, D.C., is the leading, national upstream trade association representing 5,000 independent oil and natural gas producers and service companies located throughout the United States.

“IPAA is dedicated to ensuring a strong, viable oil and natural gas industry in America, recognizing that an adequate, reliable, affordable and secure supply of American energy is essential to the national economy,” says President and CEO Barry Russell.

From its roots 80 years ago when IPAA began protecting the business interests of America’s independent oil and natural gas producers, the organization continues its mission today. Independent producers currently develop 90 percent of the oil and gas wells in the U.S., produce 68 percent of American oil and produce 82 percent of American natural gas.

“Independent producers are the small, high tech businesses that employ on average 12 employees and drill nine out of every ten wells across the country today. Our members are in the business of energy, which is why America’s national energy policy is of great concern to our association,” explains Russell.

IPAA believes that policymakers should encourage the growth of all energy sources.

“When you reduce investment in American energy resources the result is less American production, lost jobs, more foreign dependency, weakened national security and higher prices for Americans. This is the wrong course for America, especially during an economic recession when American oil and natural gas production has proven to be a job creator and revenue provider for decades,” he emphasizes. “American oil and natural gas investment can be a real economic stimulus package if federal policies would encourage its production here at home.”

IPAA believes that America must embrace conservation, efficiency and all forms of American energy for the future.

“Today, oil and natural gas provide two-thirds of our nation’s energy needs, as well as the fuel for many alternative energy projects. The fact remains, that for the foreseeable future, oil and natural gas will be our main fuel source,” Russell notes. “We urge the administration to move forward with commonsense, long term solutions that encourage domestic energy production. American jobs and our national security are at stake.”

IPAA is an affiliate of Consumer Energy Alliance (CEA) because it brings together industries representing diverse sectors of the U.S. economy who are concerned about securing reliable, affordable, American energy for consumers all across the country.

“IPAA believes there is strength in numbers, and playing an active role in CEA affords IPAA a stronger voice on Capitol Hill,” Russell concludes. “We all agree that the United States needs to find commonsense, long term energy solutions that will benefit the economy and strengthen our national security. This can only be done by promoting an all of the above approach to developing America’s energy resources.”

For more information on the Independent Association of America, visit www.ipaa.org.

Tags: Barack Obama, CEA newsletter, consumer corner, February 2010 newsletter, highway users, IPAA, issue 35, LCFS, oil and gas
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CEA: California LCFS Bad for Consumers, Bad for Producers, and Violates Federal Law

Tuesday, February 2nd, 2010

Consumer Energy Alliance files complaint with District Court in Fresno asking for immediate injunction on Low-Carbon Fuel Standard

FRESNO – February 2, 2010   California’s recently implemented Low-Carbon Fuel Standard (LCFS) violates federal law by attempting to regulate “commerce and conduct” outside of the state, while imposing a mandate that even regulators admit will result in “little or no net change” to the carbon intensity of fuels on “a global-scale.” Such is the formal complaint filed by Consumer Energy Alliance (CEA) in the U.S. District Court for the Eastern District of California today, asking the court to suspend the imposition of a statewide LCFS until a number of substantive legal concerns can be addressed.

“The practical outcomes of the California LCFS are higher fuel costs for consumers, dramatic reductions in the availability of those fuels, and a rapid expansion of the state’s already unacceptable level of dependence on foreign, unstable regimes for its energy,” said Michael Whatley, vice-president of CEA and former chief counsel for the U.S. Senate subcommittee on clean air and climate change. “More relevant to today’s filing, the California LCFS also actually violates federal law – and stands in direct contravention of key consumer protections and safeguards enshrined in the U.S. Constitution.”

Formally adopted last month after the state’s Office of Administrative Law (OAL) issued its final approval, the California LCFS, according to its authors, seeks to reduce the carbon-intensity of fuels included in the state’s transportation mix “while stimulat[ing] the production and use of alternative, low-carbon fuels.” But under the bizarre accounting methodology of the plan, energy sources with physically identical chemical properties and carbon contents can – and, in fact, must be – treated differently under the law, with in-state sources significantly advantaged over resources that are found and produced outside California.

“Perhaps it wasn’t the state’s intent, but as written, the California LCFS is an example of parochial protectionism run amok,” added Whatley. “But make no mistake: This isn’t the type of protectionism that will benefit California consumers; it’s the type that will ensure sources of essential energy are harder to find in the future, and much more expensive to purchase.”

In support of that statement, Whatley pointed to a recent analysis of the proposed state LCFS completed by California-based Sierra Research. In that study, analysts from Sierra found that an LCFS will increase the cost of fuel in California by $3.7 billion over the next decade – all while producing “no detectable change in climate.”

With more than 260,000 grassroots supporters and 130 affiliates representing both the major consuming and producing segments of the U.S. energy sector, CEA has been an active contributor to the national debate on LCFS – including the proceedings in California – for the better part of the last two years.

Last August, the Washington, D.C.-based Center for North American Energy Security, a CEA member, sent a letter to the California Air Resources Board (CARB) detailing the myriad short-comings with the LCFS, and several CEA members (including the National Petrochemical & Refiners Association and the American Trucking Associations – which joined CEA in filing the complaint today) have lodged formal comments with CARB objecting to the plan as well. In addition, CEA wrote directly to U.S. Sen. Barbara Boxer (D-Calif.) in October identifying several significant consequences that consumers should expect to encounter under the initiative.

What follows are several key excerpts taken from the CEA complaint filed in Fresno this morning:

42.        Because “carbon intensity” is designed to account not only for a fuel’s physical characteristics, but also the energy necessary to bring the transportation fuel to market in California, chemically identical fuels are assigned different carbon intensities under the LCFS.  LCFS  § 95486(b), Tables 6–7.
44.        By regulating the “fuel pathway” of transportation fuels – i.e., the manner in which transportation fuels are produced and ultimately reach the California market – the LCFS directly regulates interstate commerce and conduct occurring outside of California.
47.        CARB has admitted that, because no other states have adopted a similar standard, “fuel producers are free to ship lower-carbon-intensity fuels to areas with such standards, while shipping higher-carbon-intensity fuels elsewhere.”  CARB, California’s Low Carbon Fuel Standard: An Update on the California Air Resources Board’s Low Carbon Fuel Standard Program (Oct. 2009) at 1.
48.        According to CARB, “[t]he end result of this fuel ‘shuffling’ process is little or no net change in fuel carbon-intensity on a global scale.”  Id.
49.        In fact, the “fuel shuffling” promoted by the LCFS likely will lead to an overall increase in GHG emissions, because it will mean redirecting fuels and feedstocks destined for California to other states through less efficient and redundant supply lines.  Id.; see also CARB, Final Statement of Reasons (Dec. 2009) at 234–35.
50.        The burdens imposed by the LCFS on the interstate market for transportation fuels and fuel feedstocks in California are clearly excessive when measured against the putative local benefits of the LCFS in California.

More from Consumer Energy Alliance’s Secure Our Fuels campaign:

• Memorandum of Understanding: Draft NESCAUM MOU dated Nov. 17, 2009
• Analysis: CEA comments to NESCAUM on draft LCFS plan
• Study: LCFS would do nothing to lower global GHG emissions; it may even increase them
• PowerPoint: Carmen Difiglio presentation on LCFS
• Interactive Map: See which states stand to lose the most under an LCFS
• Column: Why Are We Conceding Canadian Oil to China?
• Issue Alert: Happy Birthday, China

Tags: carbon footprint, climate change, domestic energy, emissions, Fresno, GHG emissions, LCFS, Low-Carbon Fuel Standard, oil and gas, Secure Our Fuels, U.S. District Court for the Eastern District of California
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Wicked Cold: Draft MOU Asks Northeast Guvs to Endorse Future of Higher Gas, Heating Oil Prices

Monday, January 4th, 2010

Consumer Energy Alliance sends letter to 11 Northeast governors asking officials to look before they leap on regional LCFS

WASHINGTON – December 28, 2009   The imposition of a California-style Low-Carbon Fuel Standard (LCFS) on 11 Northeast and mid-Atlantic states would dramatically restrict consumers’ access to local and affordable supplies of motor and home heating fuel – all without doing a thing to limit global greenhouse gas emissions. That’s the message conveyed this week by Consumer Energy Alliance (CEA), as the governors of these states decide whether to formally commit their constituents to a plan that could pave the way for higher prices at the pump, and sharp reductions in the availability of home heating oil.

“An LCFS isn’t about reducing carbon emissions, it’s about restricting access,” said CEA vice president Michael Whatley, who represented the organization in two regional LCFS hearings held earlier this winter. “Unfortunately, for residents of the Northeast, that means less access not only to affordable gas and diesel fuel, but to the critical fuel oils that are used to heat more than two million homes in the region.”

Earlier this month, CEA obtained a draft copy of the LCFS Memorandum of Understanding (MOU) currently in circulation among the 11 states involved in the Northeast States for Coordinated Air Use Management (NESCAUM), a group actively lobbying for an LCFS. In it, states are asked to endorse the statement that an LCFS is “a market-based, fuel-neutral program to address the carbon content of fuels” – even though in reality the plan is government- (not market-) directed, fuel-discriminatory (especially against those from Canada), and does nothing to reduce the carbon content of fuel (which is constant).

Additionally, the MOU demands that states “commit to promote and support a national LCFS program,” the clearest admission yet that a regional LCFS scheme cannot succeed unless its burden is extended via federal mandate to competitors in neighboring states. “That’s been the purpose of this effort all along,” added Whatley. “In regional stakeholder meetings and in the draft MOU, NESCAUM has stated its ultimate goal is to implement a bad regional policy that will push the federal government into passing a national mandate – even if it means the Northeast ends up isolating itself from critical national and international fuel markets.”

According to reports, NESCAUM officials have asked each state’s governor to sign the MOU by December 31, 2009. In anticipation of that deadline, CEA last week sent each of the 11 governors participating in the NESCAUM effort a letter outlining several key considerations related to an LCFS – from the logistics involved in converting hundreds of thousands of vehicles to flex-fuel capable, to the realities inherent in the fact that 80 percent of transportation sector carbon emissions comes from the combustion of fuel, not the lifecycle components an LCFS will supposedly address.

More from SecureOurFuels.org:

• Memorandum of Understanding: Draft NESCAUM MOU dated Nov. 17, 2009
• Analysis: CEA comments to NESCAUM on draft LCFS plan
• Study: LCFS would do nothing to lower global GHG emissions; it may even increase them
• PowerPoint: Carmen Difiglio presentation on LCFS
• Interactive Map: See which states stand to lose the most under an LCFS
• Letter: GOP state rep from Tenn. asks Sen. Alexander to reconsider support for LCFS [WSJ]
• Column: Why Are We Conceding Canadian Oil to China?
• Issue Alert: Happy Birthday, China

Tags: cold weather, consumer prices, heating oil, higher gas, LCFS, low carbon, Low-Carbon Fuel Standard, memorandum of understanding, michael whatley
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The consumer energy year in review

Monday, January 4th, 2010

New Year’s brings a time for all of us to review what we’ve accomplished over the past 12 months and chart a course for the future. It may sound cliché, but with such an eventful year behind us, and so many momentous challenges ahead, those of us here at Consumer Energy Alliance couldn’t resist the urge to compile our own Best of 2009 list. What follows are some of the milestone moments of the past year, in which our strong network of supporters significantly advanced our goal of making our country more energy secure and economically sustainable.

• New respect for Offshore Drilling. Yes, many key offshore sites remain off limits to exploration and production but 2009 was a year that policymakers from California to Florida revisited longstanding bans on offshore drilling. They recognized the advances in technology that are making it possible to conduct major projects with minimal footprint and conducted level-headed debates about reversing longstanding bans. Stay tuned – and stay engaged — for more in 2010.

• The sun rises over the Gulf of Mexico. From the appeals court ruling over the summer allowing drilling to go forward in a vast swath of the Gulf, to new data showing strong yields from some of the older properties in the Gulf, to BP’s massive discovery in that same region, you could say that everything old became new again in the Gulf.

• Silent majority finds its voice. It’s not easy competing against protestors who play fast and loose with the facts and even resort to donning furry animal costumes to get attention. Nonetheless, when the Interior Department solicited feedback on some contested offshore drilling sites, the supporters of responsible drilling significantly outnumbered those who cried “not in my backyard.” This letter writing campaign to Interior Secretary Ken Salazar was a major CEA initiative throughout much of the year, and turned out to be a major success. Thank you!

• Alaska’s oil industry gets some needed relief. Speaking of Ken Salazar, the Interior Department’s recent decision allowing Shell Oil to drill three exploratory wells in the contested Chukchi Sea was a significant milestone in efforts to tap the state’s vast oil and gas reserves.

• Renewable energy tapped for practical purposes. Renewable energy has always been a topic of interest to consumers but in 2009 the country made great strides in incorporating renewable power sources into our overall power supply, while recognizing both the limits of these sources as well as some niche applications ideally suited for renewables. Consider the solar powered trash can and some of the new uses for cow manure.

• The argument against exporting emissions gains traction. Politics might all be local, but emissions can travel halfway around the world in no time. Those of us who support a strong domestic oil industry have always understood the folly of exporting oil production, particularly to distant destinations that lack the environmental standards we have here at home. It’s one of the reasons, we’re so opposed to low carbon fuel standards. We clearly haven’t won this argument yet, but thanks to some of our vocal supporters – and some advanced science that can actually track the movement of things like toxic clouds from coal burning power plants in China – the not-in-my-backyard line of thinking is losing some power.

• Ocean Policy Task Force faces tough questions. If the Administration thought that while no one was looking, it could just impose a new layer of regulations on all of the industries that conduct business along the country’s waterways, it was mistaken. Shortly after the Ocean Policy Task Force was convened, lawmakers began raising questions about who would be setting the new rules and whether they could cost the country jobs.

Of course, we are a long way from winning the battle to prevent regulators from taking control of our oceans. Likewise the effort continues to bring responsible drilling and production to more of our coastal waters and ultimately produce more of the oil we consume in the U.S. In the coming weeks, we’ll outline some of the challenges for the New Year.

But for now, we leave you on an optimistic note. We thank you as always for your support.

Tags: 2009, 2010, Alaska, domestic energy, emissions, five year program, Gulf of Mexico, LCFS, new year, ocean policy, ocean policy task force, oceans, ocs, offshore drilling, renewable energy, year in review
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Our robots chime in on energy policy

Monday, January 4th, 2010

Please listen to this message regarding important energy issues from our CEA robots!

Tags: LCFS, Low-Carbon Fuel Standard
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What research says about Low Carbon Fuel standards (and low chocolate standards)

Friday, December 11th, 2009

The Low Carbon Fuel Standard is making the rounds again in news reports about national and global energy policies. And why not? What’s not to like about low carbon fuels? With such an innocuous name, this looming legislation is bound to resurface every time people talk about policies for reducing emissions.

But you know what they say about things that seem to be true.

As we’ve said before, low carbon fuel standards just don’t make a lot of sense. There’s no evidence that such a law would actually reduce emissions, and many reasons to conclude it would actually result in the U.S. increasing its dependence on Mideast Oil.

But since we’re all likely to be hearing more about the Low Carbon Fuel Standard in the months ahead, it’s worth broadening the argument beyond what those of us here at CEA have to say about it and showing what the science says.

Earlier this year the American Economics Journal published a paper which concluded that a low carbon standard does not decrease overall emissions. Rather, it simply changes the mix of fuels consumed in a manner that might actually have the completely unintended consequence of increasing overall consumption and emissions.

That’s essentially because this fuel standard does not seek to limit actual emissions. Rather it would try to limit production and consumption of certain carbon-intensive fuels, while inadvertently promoting the carbon-light ones. It sounds confusing and it is. Attempting to judge different types of oil or natural gas on the basis of their carbon content – with no regard for shipping costs and multiple other factors – is in the end a dangerous guessing game.

The authors of the study, Greenhouse Gas Emissions Reductions under Low Carbon Fuel Standard? argue that energy consumers told to low-carbon fuels are likely to respond the same way as a child who eats a lot of chocolate and is told to eat more bananas. Rather than replacing the chocolate with a banana, the child would most likely eat the chocolate and the banana, increasing his overall calories.

It’s a useful analogy to remember when trying to make sense of the Low Carbon Fuel Standard … one that gives new meaning to the idea of a kid in a candy store.

Tags: American energy, chocolate, energy policies, LCFS, low carbon, Low-Carbon Fuel Standard
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CEA Analysis Finds LCFS a Bad Option for Northeast

Monday, November 23rd, 2009

Consumer Energy Alliance analyzes Low-Carbon Fuel Standard compliance scenarios for 11 northeast states

WASHINGTON – November 13, 2009   A regional Low-Carbon Fuel Standard (LCFS) imposed on 11 Northeast and Mid-Atlantic states would result in prohibitively high gasoline, diesel and home heating oil prices, and would likely be logistically impossible to meet under any of the compliance scenarios currently being considered. That’s the conclusion reached in a new analysis produced by Consumer Energy Alliance (CEA) and submitted this week to the Northeast States for Coordinated Air Use Management (NESCAUM).

“Our analysis shows that under each of the compliance scenarios contemplated by NESCAUM, the imposition of an LCFS on the Northeast will lead to substantially higher prices at the pump and restricted access to essential fuels such as gasoline, diesel and home heating oil – without doing a thing to reduce global greenhouse gas emissions,” said CEA vice president Michael Whatley, who participated in two public meetings hosted by NESCAUM in Newark, N.J. and Boston last month.

Created in the 1960s to advocate for the Clean Air Act, NESCAUM is currently working to develop a framework to encourage Northeast and Mid-Atlantic states to adopt model LCFS requirements, thus creating the nation’s first regional standard.  At its core, an LCFS seeks to reduce greenhouse gas (GHG) emissions by restricting the use of conventional fuels such as gasoline and diesel, while increasing the use of alternatives.

In analyzing potential methods for designing an LCFS, CEA considered the consequences of two compliance scenarios reportedly under consideration by the group: 1) forcing fuel producers to meet LCFS mandates by injecting enormous amounts of corn-based ethanol into fuel stocks, or 2) forcing them to purchase carbon credits for the right to remain in business.

Under the ethanol compliance scenario, CEA found that in order to meet a 10 percent emissions reduction target, ethanol would need to comprise a full 50 percent of the region’s fuel supply. To handle this E-50 ethanol, every single car in the 11-state region would need to become a “flex-fuel” vehicle, a significant feat considering that today less than one percent of vehicles on the road meet that standard.

Logistics aside, the plan would also cost some serious money:

In order to handle gasoline with an ethanol blend over 10%, gasoline storage tanks and pumps … will need to be replaced with special tanks and equipment … currently projected to cost between $50,000 and $200,000 per location.

Under the credit purchase scenario, fuel retailers would need to purchase credits from alternative energy producers to comply with an LCFS. However, given the relative lack of commercially available technology in this space at present, it’s not entirely clear how compliance could be met under this scenario — a fact that NESCAUM admits in its report (page 21):

While the outlook of these technologies is promising, the volumes that would be required in order to meet a 10 percent LCFS by 2020 greatly exceed the volumes that have been produced to date.

In formal comments submitted to NESCAUM following its LCFS meetings, CEA also analyzed policy alternatives that could achieve emissions reductions in ways that are cheaper and more efficient than an LCFS. Comparing these alternatives to current LCFS proposals, CEA concludes that an LCFS will raise fuel costs substantially higher than would be the case under new CAFE requirements or the implementation of Renewable Fuels Standards – and will achieve significantly lower emissions reductions.

More from SecureOurFuels.org:

• Analysis: CEA comments to NESCAUM on draft LCFS plan
• Study: LCFS would do nothing to lower global GHG emissions; it may even increase them
• PowerPoint: Carmen Difiglio presentation on LCFS
• Interactive Map: See which states stand to lose the most under an LCFS
• Letter: GOP state rep from Tenn. asks Sen. Alexander to reconsider support for LCFS [WSJ]
• Column: Why Are We Conceding Canadian Oil to China?
• Issue Alert: Happy Birthday, China

Tags: CEA, Consumer Energy Alliance, consumers, LCFS, Low-Carbon Fuel Standard, Secure Our Fuels
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High unemployment and low carbon fuel standards: Two not-so-great things that are even worse together

Friday, November 13th, 2009

What could possibly be worse than the 10.2% nationwide unemployment we recently highlighted? How about the jobless rates of 11% in Florida, 12.2% in California, and a staggering 15.3% in Michigan?

If you didn’t think Michigan had a big part in the debate over domestic fuel production, think again. The state, which has been bleeding jobs, faces even more economic devastation if a low carbon fuel standard is adopted.

As we’ve outlined previously on this blog, a low carbon fuel standard ostensibly designed to reduce emissions, would actually play out with many unintended consequences. They would favor many types of foreign oil over those located in the U.S. and the Canada – not because Saudi fuel is cleaner fuel, but because it takes less energy to get out of the ground. Factor in the cost of transporting all that light, sweet crude oil halfway around the world, and you have a low carbon fuel standard in name only.

Now, back to Michigan. One of the industries that hasn’t fled the state is an oil refinery in Detroit, which refines fuel from nearby Canada. Heavy fuel, that is, which would not pass muster under new low carbon fuel standards.

This recent editorial in the Detroit News outlined the problem:

“In Detroit, the Marathon refinery produces nearly 100,000 barrels of affordable, reliable fuel a day, and provides thousands of jobs that support families, pay pensions, and provide good-quality health care…. As complex and convoluted a plan as a low-carbon fuel system is, the negative impact it would have on our country’s economic and strategic well-being is simple to understand. The low-carbon fuel proposal is engineered to produce higher prices at the pump, higher unemployment … and expanded dependence on foreign, unstable regimes.”

And further south, residents in Tennessee are also concerned, not just by what a low-carbon fuel standard will mean for their local economy, but by the seemingly arbitrary standards by which fuels would be in or out.

“Fuels are assigned a carbon energy ‘score,’ based on the energy required to bring them to market,” explains this editorial. “The U.S. would be forced to rely on lighter crude from the Middle East.”

“A low carbon fuel standard will also result in volatile gas and commodity prices, the loss of U.S. refinery and pipeline jobs, and an increase in global greenhouse gas emissions.”

That’s right. As we’ve also pointed out here, emissions know no borders. Nor does a balanced energy policy. We’re working on behalf not just of the oil rich states but of the country as a whole, and we’re happy to see that our message resonates widely.

Tags: CEA, Consumer Energy Alliance, fuel, LCFS, low carbon, Low-Carbon Fuel Standard, unemployment
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CEA November 2009 Newsletter

Wednesday, October 28th, 2009

CEA Newsletter
Issue 32

Message from CEA President David Holt
As we prepare for the upcoming winter season and the excitement of celebrating holidays with family and friends, increased heating bills and energy concerns are also on the minds of many Americans. The higher energy costs associated with cooler temperatures highlight the need for a balanced American energy policy which focuses on reasonable and responsible use of all resources, including traditional and alternative.

One significant resource of American energy is our nation’s offshore area. The Obama Administration recently established the Ocean Policy Task Force to propose policies for the management of our oceans and coasts, as well as the resources and activities within those waters.

While the Task Force is rightly concerned with the environmental stewardship of our oceans and coasts, they released an Interim Report that proposes a system of oceans governance that could significantly impact our nation’s ability to safely develop its own offshore energy, including oil, natural gas and renewable energy.

In September, the Obama Administration closed its public comment period on a new Five Year Program to oversee offshore energy leasing. The Interim Report proposes policies that could undermine such a program and hurt consumers in the long-run.

We must urge President Obama and his Task Force to issue an oceans governance policy that successfully recognizes the importance of striking a balance between the protection of our oceans and their economic uses, particularly where responsible energy production is concerned.

Join CEA in this effort to secure a balanced approach to regulation of America’s offshore and ocean resources. Visit CEA’s website to learn more and participate in this important effort.

Thank you for being part of CEA’s valued membership and participating in our efforts to empower America.

David Holt
President

Ensure Balanced Approach to America’s Offshore & Ocean Resources
To help ensure a balanced oceans policy that will secure our energy and economic future, please tell President Obama and the Ocean Policy Task Force today that you support the development of a policy that does not actively prohibit the safe and responsible development of our offshore energy resources. Send in your comments today!

Help Defeat Efforts to Ban North American Energy and Increase Prices at the Pump!
The Low-Carbon Fuel Standard (LCFS) is being sold to the American public as a way to blend transportation fuels with low-carbon alternatives so that tailpipe CO2 emissions can be reduced. But the fact is that affordable and reliable lower-carbon fuel options are not yet available. As a result, an LCFS simply will increase the cost of diesel fuel and gasoline and will place certain domestic supplies of transportation fuels off limits. Increasing the cost of transportation fuel and U.S. dependence upon foreign sources of petroleum is simply unsound energy policy.

Join our effort to defeat these measures, which would put an economic stranglehold on America and leave U.S. consumers stuck with higher prices at the pump. Send in your comments today!

CEA Blog: Lawmakers voice concern over Ocean Policy Task Force
Check out CEA’s recent blog entry about President Obama’s Ocean Policy Task Force and concerns that it would block American offshore oil development and impose restrictions that would cost Americans jobs.  Join the conversation at CEA’s website. Read blog…

Consumer Corner: Prepare To Cut Costs This Winter!
As you prepare your home for colder temperatures this winter season, use a few of these easy, energy-efficient tips from Energy Star and the U.S. Department of Energy to save both energy and money.

1. Set the thermostat comfortably low to save big – for instance, resetting your temperature from 72 degrees to 65 will save 10 percent on your heating bill.
2. Save on hot water by setting your electric water heater temperature to 120 degrees Fahrenheit and taking shorter showers.
3. Open window coverings during the day to allow the sun’s warmth in and close them at night to keep the chill out.
4. Make sure your home is leak-free – check all the nooks and crannies around windows, doors, plumbing and more.
5. Insulate your hot water heater and hot water pipes to prevent heat loss.
6. Install storm windows to reduce heat loss by 25 to 50 percent.
7. Keep your heating equipment in tip-top shape and replace all filters regularly.

President Announces Multi-Billion Dollar Investment in Smart Energy Grid
President Obama recently announced plans and funding of a more efficient, reliable and stronger modern energy smart grid to meet American electricity needs. Read article…

Arizona’s First Commercial-Scale Wind Energy Development Keynoted by Salazar
Noting America’s need to reduce its “dangerous dependence on foreign oil,” Secretary of the Interior Ken Salazar recently participated in a dedication ceremony for a large wind energy project in Arizona. Read article…

American Association of Petroleum Geologists: Informing Policy with Science
By David Curtiss
The American Association of Petroleum Geologists (AAPG) is the world’s largest scientific and professional geological association, with more than 34,000 members in 116 countries. Founded in 1917 and headquartered in Tulsa, Oklahoma, AAPG is not a trade association.  We do not represent the petroleum industry.  Rather we represent the science and profession of petroleum geology.  Our members include professionals active in industry, government, and academia.  They are practitioners of the science.

AAPG’s purpose is to foster the spirit of scientific research among its members and to advance the science of geology, particularly as it relates to petroleum, natural gas, other subsurface fluids, mineral resources, and the environment.  To achieve these goals, AAPG publishes the Bulletin, a juried monthly geologic science journal and the Explorer, a monthly newspaper with upstream information news; sponsors continuing education schools, seminars, and field trips; holds annual scientific meetings both in the U.S. and internationally; publishes specific geologic books and materials; and provides geologic information to the general public.

The Association has three divisions.  The Division of Professional Affairs certifies petroleum geologists, petroleum geophysicists, and coal geologists.  It also enforces the code of ethics that AAPG members agree to uphold.  The Division of Environmental Geosciences uses geologic knowledge to solve environmental challenges, and publishes Environmental Geosciences, a juried quarterly geologic science journal.  The Energy and Minerals Division focuses on energy minerals (e.g., coal and uranium), geothermal, hydrates, and unconventional petroleum resources.

Four years ago, AAPG opened the Geoscience & Energy Office in Washington, DC (GEO-DC) to bring the collective scientific expertise of AAPG members to policy makers.  Our objective is to provide the scientific understanding that enables policy makers to craft more informed laws and regulations.

For example, for the Energy 101 briefing at the CEA October meeting in Washington, D.C., my colleague Don Juckett focused on a key point that is often misunderstood in policy circles:  the difference between a petroleum resource and petroleum reserves. In brief, a petroleum resource denotes the total endowment of hydrocarbons in a particular exploration area or geologic basin.  It is an estimated amount based on geologic knowledge and conditions, and includes both discovered and undiscovered hydrocarbons.

A petroleum reserve is a more narrowly defined estimate of hydrocarbons, including geologic, engineering, and economic factors.  For publicly traded companies the definitions of reserves are set forth by the U.S. Securities and Exchange Commission.  Reserves are discovered hydrocarbons that can be produced at a given price (or price range) – it is an oil company’s inventory in storage.  When you produce oil or natural gas, you are pumping and selling from your reserves.

Converting an oil and natural gas resource into an oil and natural gas reserve takes three things: 1. Access to the resource, which in the U.S. is located either on public or private lands both onshore and offshore; 2. Technology that improves our ability to find and produce oil and natural gas; and 3. Investment climate conducive to the significant capital expenditures needed to produce oil and natural gas and deliver it to consumers.

As we speak to policy makers we spend a lot of time focusing on these issues – access, research and development, and tax reform – as well as other policy and regulatory issues.

Another topic we have been working on is the dramatic energy workforce shortage facing the United States and the world in the next decade.  We are talking about everyone, from petroleum geologists and geophysicists and electrical power line workers, to nuclear engineers and the skilled trades working in energy.  No part of the energy sector, including the government and regulatory arena, is immune from the dramatic “graying” of the workforce.  This is an issue where the Consumer Energy Alliance has provided significant leadership since its inception.

For more information about AAPG, the issues we are working on, or if you have a question about the science of finding oil and natural gas please contact David Curtiss at 202-684-8225 or dcurtiss@aapg.org.

Affiliate Spotlight: Air Conditioning Contractors of America
For more than 40 years, the Air Conditioning Contractors of America has served the nationwide educational, policy, and technical interests of the small businesses who design, install, and maintain indoor environmental systems.

“ACCA members characterize the extent of America’s economic diversity. The typical ACCA contractor member employs less than 10 people, but many of our members have hundreds of workers. ACCA protects the interests of the small business residential and commercial contractors of the HVACR industry,” says Vice President of Government Relations Charlie McCrudden.

Affordable and reliable energy sources help control the fluctuation of fuel prices and allow the small business contractors of the HVACR industry to grow their businesses.

“The typical ACCA member has a fleet of vehicles used to service and install HVACR systems in homes and buildings. Fuel expenses represent a significant cost of doing business as a service contractor,” explains McCrudden.

ACCA has a longstanding history of supporting efforts to encourage energy efficiency in residential and commercial buildings though increased building performance.

“Every day, thousands of ACCA members help homeowners and building managers realize the comfort and cost benefits of energy efficient heating, ventilation, and air conditioning, (HVAC) equipment.  ACCA members would like to see more incentives for building owners and homeowners to reach for higher efficiency HVACR appliances. At the same time, ACCA members would like to see more access to affordable energy sources so that normal market conditions can keep fuel prices low,” he emphasizes.

As a member of Consumer Energy Alliance, ACCA’s goal is to work with other stakeholders to ensure access to energy at reasonable prices.

“ACCA is a member of CEA because the collective voice of the Alliance membership is louder than the individual organizations combined,” McCrudden notes. “As a trade association representing small business contractors who rely on their fleet vehicles, ACCA is very concerned about access to energy and its effect on price.”

For more information on Air Conditioning Contractors of America, visit www.acca.org.

Tags: AAPG, ACCA, air conditioning contractors of america, American Association of Petroleum Geologists, CEA, Consumer Energy Alliance, LCFS, Obama, ocean policy task force, oceans, ocs, offshore energy
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New Campaign Seeks to Educate South Dakotans on Negative Impacts of a Nationwide Low-Carbon Fuel Standard (LCFS)

Thursday, September 3rd, 2009

CEA radio, TV ads appear across the state, remind residents that under a nationwide LCFS, South Dakota’s Hyperion refinery is toast

WASHINGTON, D.C. - August 31, 2009   Today, as part of a multi-state campaign to educate American energy consumers on the economic and national security impacts associated with a national Low-Carbon Fuel Standard (LCFS), Consumer Energy Alliance (CEA), a nonprofit, nonpartisan coalition comprised of 120 affiliates and more than 180,000 grassroots supporters, launched a major television and radio advertisement buy in South Dakota.

The ads (click HERE and HERE to view and listen), which will run over the next two weeks, highlight that if an LCFS is enacted into law, American jobs would threatened, prices at the pump would increase, and U.S. dependence on energy imports from unstable foreign regimes would expand.

An LCFS would be especially devastating for South Dakota in light of DENR’s recent decision to grant a critical air quality permit to the Hyperion refining project in Elk Point – a facility that, when complete, will receive and process 400,000 barrels of Canadian oil a day. Under an LCFS, those shipments of Canadian crude would be prevented from crossing the border – and no permit in the world will be able to save the project from elimination.

“In any form, a Low-Carbon Fuel Standard would represent a major blow to America’s economic health and strategic position,” said CEA’s Michael Whatley, a leading expert on LCFS proposals. “That’s because the energy we import daily from friends like Canada would essentially be prohibited from crossing our border. If these abundant resources are cut off, our dependence on unstable regions of the world would skyrocket, and so would the price American consumers pay at the pump.”

Added Whatley: “This campaign seeks to alert the American public of the implications of this policy, and enlist their support in ensuring it does not come to pass.”

Known as CEA’s “Secure Our Fuels” campaign, the work of enlisting the American people in support of affordable energy begins nationwide today, with radio and television ads running in several key states to engage those who stand to be most impacted under an LCFS. Efforts aimed at those initial states – South Dakota among the most important – will eventually broaden out to include many more, from the Intermountain West to the Atlantic coastline.

As part of the national launch, CEA also unveiled a new website to serve as a networking tool and information repository for its coalition: SecureOurFuels.org.

Throughout this campaign, CEA will work with and engage its regional affiliates to ensure that working families, small businesses, organized labor, and everyday American consumers understand the threat posed by an LCFS.

Visit SecureOurFuels.org to view our latest television and radio ads, and learn more about how an LCFS will increase energy costs for American consumers and expand our dependence on foreign, unstable regions of the world to fuel our economy.

Tags: CEA, Consumer Energy Alliance, LCFS, Low-Carbon Fuel Standard, South Dakota
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New Campaign Seeks to Educate Public on Negative Impacts of a Nationwide Low Carbon Fuel Standard (LCFS)

Thursday, September 3rd, 2009

Multi-State Effort Includes Major TV/Radio Ad Buy, Warns of Increased Energy Costs and Expanded Reliance on Energy from Unstable Regions

WASHINGTON, D.C. - August 31, 2009   Consumer Energy Alliance (CEA), a nonprofit, nonpartisan coalition comprised of 120 affiliates and more than 180,000 grassroots supporters, today launched a multi-state campaign to educate American consumers on economic and national security impacts associated with a national Low-Carbon Fuel Standard (LCFS).  If enacted, an LCFS would threaten American jobs, increase prices at the pump, and expand U.S. dependence on energy imports from unstable foreign regimes.

“In any form, a Low-Carbon Fuel Standard would represent a major blow to America’s economic health and strategic position,” said CEA’s Michael Whatley, a leading expert on LCFS proposals. “That’s because the energy we import daily from friends like Canada would essentially be prohibited from crossing our border. If these abundant resources are cut off, our dependence on unstable regions of the world would skyrocket, and so would the price American consumers pay at the pump.”

Added Whatley: “This campaign seeks to alert the American public of the implications of this policy, and enlist its support in ensuring it does not come to pass.”

Known as CEA’s “Secure Our Fuels” campaign, the work of enlisting the American people in support of affordable energy begins nationwide today, with radio and television ads running in several key states to engage those who stand to be most impacted under an LCFS. Efforts aimed at those initial states – Tennessee, Montana, North and South Dakota – will eventually broaden out to include many more, from the Intermountain West to the Atlantic coastline.

As part of the national launch, CEA also unveiled a new website to serve as a networking tool and information repository for its coalition: SecureOurFuels.org.

Most Americans might not know what an LCFS is, what it stands for, or even that its stated goal – reducing the carbon content of fuel – isn’t the true intent of the policy. Unfortunately, that’s precisely how advocates of a nationwide fuels mandate want it to remain, hoping to use the pending climate bill to advance a policy that will kill American jobs, expand our foreign energy dependence, and discriminate against secure supplies of energy available in our hemisphere.

Throughout this campaign, CEA will work with and engage its regional affiliates to ensure that working families, small businesses, organized labor, and everyday American consumers understand the threat posed by an LCFS.

Visit SecureOurFuels.org to view our latest television and radio ads, and learn more about how an LCFS will increase energy costs for American consumers while expanding our dependence on foreign, unstable regions of the world to fuel our economy.

NOTE: To view these television and radio advertisements, click HERE.

Tags: CEA, Consumer Energy Alliance, LCFS, Low-Carbon Fuel Standard, Secure Our Fuels
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CEA September 2009 Newsletter

Tuesday, September 1st, 2009

CEA Newsletter
Issue 30

Message from CEA President David Holt
Consumer Energy Alliance continues to work toward a national energy policy that fully leverages America’s abundant offshore energy resources into new jobs, revenue and security for American energy consumers.

As part of this effort, CEA is proud to announce a new nationwide educational campaign – Secure Our Fuels, which highlights the damaging economic effects associated with the national Low Carbon Fuel Standard (LCFS) currently being considered by Congress. For more information on the Secure Our Fuels campaign, click here.

Though it is important to continue expansion of alternative energy resources through greater development of wind, solar, nuclear and other renewables, responsible access to America’s abundant oil and natural gas resources must be maintained to ensure stable sources of traditional energy to meet American needs. Affordable and secure energy resources are vital to the recovery of the national economy and its future growth.

Currently, the federal government is accepting comments from the public regarding another campaign and access to America’s offshore areas for development of oil and natural gas resources. CEA recognizes the necessity of reasonable and responsible access to these offshore areas, which will stimulate economic growth, create new jobs for Americans and provide much-needed revenue to states and the federal government.

Consumer Energy Alliance, made possible through the hard work and dedication of our affiliate members and individual consumers like you, stands strong in our support of offshore oil & gas drilling, as well as offshore alternative energy development.

To join our efforts and show your support of sensible energy production off of American coasts, please share your views with the Administration by submitting a comment (click here to send in a letter). The deadline to have your voice heard in this important discussion is September 21, 2009.

David Holt
President

Final deadline fast approaching – Support the Five-Year Plan Draft Proposed Program to Develop Offshore Oil & Gas Resources! Act by September 21!
A significant domestic supply of energy can be safely and efficiently found right here off of America’s shores. The federal government administers the considerable energy resources contained in our offshore waters and wants to hear from you about offshore oil & gas and alternative energy development.

Opposition to offshore energy development is mounting. We need you to let Washington know you support reasonable access to America’s offshore energy resources. Send in your comments today!

Support Development of Alaska’s Offshore Oil & Gas Resources!
At a time when the American public is crying out for more domestic energy, Alaska has enormous untapped oil and gas potential, especially in its offshore areas. The waters off Alaska’s coasts hold about 27 billion barrels of oil and 132 trillion cubic feet of natural gas, according to federal government estimates.

To begin producing energy from these resource basins, the federal government must take action. Join us in our effort as we build public support for offshore minerals exploration and development in Alaska. Send in your comments today!

CEA Blog: Talk about thinking outside the box, check out Chevron’s latest project
Check out CEA’s recent blog entry about Chevron Corp.’s new project to use solar power to produce oil at a field in California. Join the conversation at CEA’s website. Read blog…

Consumer Corner: Saving Energy at Your Workplace
Did you know that about half of American energy use occurs at workplaces, schools, entertainment venues and shopping malls? If we are mindful of utilizing energy conservatively in these locations, as well as our homes, we can save energy and reduce unnecessary expenditures.

To cut energy use and costs in the workplace, try these tips from Energy Star, a U.S. Environmental Protection Agency program that promotes energy efficiency:

• Unplug devices that aren’t being used
• Replace traditional light bulbs with long-lasting energy efficient bulbs
• Turn off lights before you leave
• Don’t block air vents with papers and office supplies
• Create an office team to promote energy efficiency
• Encourage your coworkers to unplug, turn off and unblock!

Check out more energy-saving tips that can be applied at the office at the Energy Star for the Workplace website.

Airlines to Use Renewable Synthetic Diesel Fuel for LAX Ground Equipment
Beginning in late 2012, eight airlines will begin fueling ground service equipment at Los Angeles International Airport (LAX) with renewable synthetic diesel fuel, known as RenDiesel, as part of recent agreement with the fuel’s manufacturer. Read article…

Offshore Lease Sales for Oil and Gas Generate $115 Million in the Gulf of Mexico; Utah Onshore Lease Sales Generate $1.1 Million
The U.S. Department of the Interior recently announced millions of dollars in additional federal revenue generated by offshore and onshore lease sales, bringing the year-to-date total to more than $875 million. Read article…

CEA Launches New Campaign to Educate, Engage Public in Opposing Increased Energy Costs, Expanded Reliance on Energy from Unstable Regions
This month, CEA launched a nation-wide educational campaign that highlights the damaging economic effects associated with a national Low Carbon Fuel Standard (LCFS), which is being considered in Congress and currently enjoys the full support of the White House.

Throughout this campaign, CEA will work to mobilize its members to educate and engage the public, the press and state and federal elected officials about the devastating impact an LCFS would have on American consumers, our economy and our security.

Michael Whatley, vice president of CEA and a leading LCFS expert, said, “A Low Carbon Fuel Standard would be a major blow to America’s energy security. In short, the energy we import daily from friendly nations like Canada would essentially be prohibited from crossing our border. Canadian crude represents a critical component of the North American energy portfolio and an important source of energy our nation relies on to run its economy.”

Whatley added, “If these abundant resources were cut off, our dependence on unstable regions of the world would skyrocket and so would the price American consumers pay at the pump. This campaign seeks to alert the American public of the implications of this policy and enlist their support in ensuring it does not come to pass.”

Most Americans might not know what an LCFS is, what it stands for, or even that its stated goal – reducing the carbon content of fuel – isn’t the true intent of the policy. Unfortunately, that’s precisely how advocates of a nationwide fuels mandate want it to remain, hoping to use the pending climate bill to advance a policy that will kill American jobs, expand our foreign energy dependence and discriminate against secure supplies of energy available in our hemisphere.

Throughout this campaign, CEA will work with and engage its regional affiliates to ensure that working families, small businesses, organized labor and every American consumer understands the threat posed by an LCFS.

Visit SecureOurFuels.org to learn more about how an LCFS will increase energy costs for American consumers and our dependence on foreign, unstable regions of the world to fuel our economy.

Affiliate Spotlight: Apache Corporation
Established in 1954, Apache Corporation explores for and develops oil and gas in the United States, Canada, the North Sea, Egypt, Australia and Argentina.

“Development of the nation’s energy resources in an environmentally responsible manner is a win-win: For consumers, domestic production provides reliable supplies at affordable prices, reduces the nation’s reliance on imported oil and generates tax revenues for many communities. For producers, domestic operations provide good jobs for our employees and investment returns for our shareholders,” says Director of Governmental Affairs and Corporate Outreach Obie O’Brien.

Apache’s mission has been to build a profitable, upstream independent oil and gas company for the long-term benefit of its shareholders, employees and constituents. Although Apache’s operations reach around the globe, its headquarters is in Houston, Texas, with a historical base in the United States, including significant operations in the Gulf of Mexico, the Anadarko Basin of western Oklahoma and the Permian Basin of West Texas and New Mexico.

Educating consumers and policy makers regarding the importance of development of American energy sources is a top priority at Apache, according to O’Brien.

“We want the American people – and especially our elected leaders – to understand the positive benefits that flow from a strong domestic oil and gas industry and development of our nation’s resources,” he emphasizes.

“Even with development of alternative energy sources, the nation will need fossil fuels for decades to come. Restricting responsible development in known oil and gas basins or discouraging investment through misguided tax and environmental policies will increase oil imports, reduce jobs and diminish the nation’s economic well-being.”

As a member of Consumer Energy Alliance, Apache Corporation participates in a national dialogue between the consumers and producers of energy, as well as policy makers.

“This conversation is vital if the nation is going to achieve a greater understanding of the nation’s energy challenge,” O’Brien notes. “People who use energy can provide a ‘Main Street’ perspective on issues such as responsible access to natural resources; the impact of energy prices on business, agriculture and consumers; and the most effective ways to transition to a lower-carbon economy that utilizes renewable energy sources and encourages energy efficiency and conservation.”

For more information on Apache Corporation, visit ApacheCorp.com.

Tags: Apache, Apache Corporation, CEA, Consumer Energy Alliance, LCFS, newsletter, September 2009
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CEA: LCFS a Road Map to Higher Fuel Costs, Expanded Foreign Energy Dependence, Loss of U.S. Jobs

Friday, August 14th, 2009

Consumer Energy Alliance responds to ethanol coalition’s support for a Low-Carbon Fuel Standard

WASHINGTON - August 14, 2009   Earlier this week at an energy forum in Nevada, a national coalition representing ethanol producers unveiled a “road map for a greener America” founded on the adoption of a policy known as the Low-Carbon Fuel Standard (LCFS).

In response to that effort, and with an eye on separating fact from fiction on the economic and strategic consequences that such a proposal would create, Consumer Energy Alliance (CEA) vice president Michael Whatley released the following statement:

“A LCFS would have serious consequences on America’s economic and strategic position in the world. An LCFS isn’t about making our environment any better, but it would make fuels from existing and future sources — sources we need — so expensive and scarce that Americans will be forced to look elsewhere for the energy they need to drive their cars, heat their homes and live their lives.”

Added Whatley: “Worse than that, an LCFS would prevent America’s fuel producers from accepting oil supplies from our closest, most important allies in the hemisphere – especially Canadian oil, of which we import more than 2.5 million barrels a day. In fact, under an LCFS, even some of America’s own homegrown reserves of crude oil would be targeted for elimination – creating a dangerous vacuum that some of the most unstable regimes in the world will be happy to fill.

“That’s not an effort that American energy consumers can support – especially when all the facts are laid out on the table. And while CEA members continue to fight for an ‘all of the above’ approach to leveraging America’s homegrown energy potential, which includes finding ways to expand our use of advanced sources of biofuels, a nationwide LCFS falls squarely outside that mandate.”

NOTE: At its core, an LCFS is a mandate on our nation’s refiners to reduce the “lifecycle” carbon emissions of the fuels they produce. But since the actual carbon content of most fuels is constant, the only options available for refiners under an LCFS is to either stop accepting shipments of “heavy” crude from Canada, Mexico, and much of the American Intermountain West, or buy up government-issued credits for the right to remain in business.

Either way, American jobs will be put in danger, the price we pay for gasoline will go up, and the amount of oil we import from unstable regimes abroad will increase substantially.

Tags: Consumer Energy Alliance, ethanol, LCFS, Low-Carbon Fuel Standard
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