Consumer Energy Alliance Releases Report Highlighting the Economic Harm that a Line 5 Closure Will Have on Indiana’s Families, Businesses and Industries
INDIANAPOLIS, IN – Shutting down the Line 5 pipeline, the reckless proposal pursued by Michigan Governor Gretchen Whitmer, would force families, businesses and industries in Indiana to pay more than $272 million more for transportation fuel every year, according to an independent third-party analysis commissioned by Consumer Energy Alliance (CEA).
Weinstein, Clower and Associates examined the impacts that a Line 5 closure would have on the region and found that shutting down this critical infrastructure would have a devastating impact on the supply of transportation fuels in regional markets, and hurt petrochemical refiners that rely on the pipeline to safely and efficiently deliver feedstock. Such a supply shock would create significantly higher gasoline and diesel prices for Indiana families and businesses, who will spend at least $272 million more every year on transportation fuels, or $1.3 billion more over five years.
The study also found that families and businesses across the Midwest will spend at least $29.2 billion more for gasoline and diesel over the following five years due to the resulting loss of production at area refineries.
The report dovetails with previous findings that closing Line 5 would cause at least $20.8 billion in economic losses to Michigan, Ohio, Indiana and Pennsylvania.
“At a time when consumer prices are rising at their fastest pace in more than 40 years, and Americans are suffering from the highest gasoline prices in over seven years, choking the region’s fuel supply by closing Line 5 would be economically ruinous,” CEA Midwest Director Chris Ventura said. “Indiana’s families are already struggling to pay their bills, with many on fixed incomes or living below the poverty line having to choose between putting gas in their tank, buying groceries, or filling their prescriptions.”
Ventura added, “From an environmental perspective, the proposal is just as careless. Line 5 hasn’t leaked in the Straits during its 68-year history, and it is inarguably the safest, most reliable method to transport the fuel Indiana needs. Recklessly raising energy bills on Indiana’s families and businesses by disrupting their fuel supplies – notably oil and propane – while harming the economy and the environment is irresponsible, especially when solutions like the Line 5 Tunnel Project have been proposed.”
Concerned for how the economic impacts of a Line 5 closure will harm Indiana’s businesses and individuals Indiana Chamber of Commerce Vice President of Environmental and Energy Policy and Federal Relations Greg Ellis said: “The Indiana Chamber of Commerce is concerned with the potential impacts on businesses and citizens of the state of Indiana by shutting down Line 5 in Michigan. With inflation at a 40-year high and energy costs rising, increasing fuel prices by billions of dollars across our region – upwards of $270 million per year in Indiana alone – greatly harms our economic competitiveness.”
To view the full report, click here.
To view findings specific to Indiana, click here.
About Consumer Energy Alliance
Consumer Energy Alliance (CEA) is the leading voice for sensible energy and environmental policies for consumers, bringing together families, farmers, small businesses, distributors, producers, and manufacturers to support America’s environmentally sustainable energy future. With more than 550,000 members nationwide, we are committed to leading the nation’s dialogue around energy, its critical role in the economy, and how it supports the vital supply chains for the families and businesses that depend on them. CEA works daily to encourage communities across the nation to seek sensible, realistic, and environmentally responsible solutions to meet our nation’s energy needs.