With Calif. LCFS, Supreme Court Leaves Questions Unanswered
Houston, TX – Consumer Energy Alliance Exec. VP Michael Whatley raised concerns the Supreme Court decision to deny a request to review the judgment made by the U.S. Court of Appeals for the Ninth Circuit in Rocky Mountain Farmers Union v. Corey, No. 12-15131, which challenged California’s Low Carbon Fuel Standard (LCFS).
The Supreme Court is leaving important Constitutional questions unanswered and leaving in place an LCFS program which discriminates against fuels that come into California from out of state. Not addressing this issue will cause further distortions in the transportation fuel markets and will raise gasoline and diesel prices for drivers all across the state. We are going to continue to work with lawmakers to develop public policy that protects energy consumers from higher prices while at the same time addressing concerns to the environment.
Consumer Energy Alliance (CEA), American Fuel & Petrochemical Manufacturers (AFPM), and the American Trucking Associations (ATA), filed a petition for writ of certiorari to the Supreme Court of the United States to review the judgment on March 21, 2014.
Consumer Energy Alliance Welcomes New Member: Texas Association of Manufacturers
HOUSTON – Consumer Energy Alliance (CEA) is pleased to welcome the Texas Association of Manufacturers as its newest affiliate member.
The Texas Association of Manufacturers (TAM) represents over 450 large and small companies from every manufacturing sector, employing more than 894,000 Texans with an average compensation of $79,350 a year (the highest in the private sector). Texas manufacturers contributed $211 billion to the Texas economy in 2012 and one-third of all corporate taxes collected by state and local governments. Manufactured goods account for 94.6 percent of all Texas exports and Texas has held the distinction as the #1 exporting state in the U.S. for several consecutive years.
“Energy is the lifeblood of all Texas commerce. All facets of the Texas economy are undeniably affected by high energy costs, none perhaps so critically as manufacturers and the 894,000 Texans they employ,” said Tony Bennett, President of TAM. “Energy costs and reliability directly impact the ability of our state to prosper, grow jobs and compete in the global marketplace, so we welcome CEA’s dedication and focus keeping electricity affordable and reliable for all Texans.”
“We’re looking forward to working with the Texas Association of Manufacturers to defend and expand Texas’ competitive edge in attracting manufacturers and moving more jobs here,” said CEA-Texas Executive Director Marty Allday. “Manufacturers create high quality jobs in Texas and CEA-Texas is working to reinvigorate consumer pride in the state’s energy abundance as a principle consideration in manufacturers’ decisions to invest and create jobs here.”
For more information on Texas Association of Manufacturers, follow TAM on Facebook, Twitter and online.
For more information on Consumer Energy Alliance, please visit ConsumerEnergyAlliance.org or contact Amelie Hereford at (713) 337-8833, ahereford@consmerenergyalliance.org.
EPA mandate puts at risk Florida’s energy supply
Kevin Doyle, executive director of Consumer Energy Alliance – Florida, penned an op-ed for the Orlando Sentinel about how the proposed EPA mandate puts Florida’s energy supply at risk.
Due to its tourism, growing economy and tax-friendly policies, Florida has been, and will continue to be, a destination for many across the United States and the world. With the University of Florida recently projecting that Florida’s population could reach 29 million by 2040, it’s clear that the state’s consumers will need increasing amounts of energy. The Florida Reliability Coordinating Council expects the state’s electricity demand will rise by more than 10 gigawatts, or roughly 20 percent, through 2035.
With much of Florida’s economy dependent on tourism, millions of retirees calling the state home, and projected population growth on the way, it is essential that one of the largest energy-consuming states in the nation has a stable, abundant, and affordable supply of energy. However, a new set of rules announced this week by the U.S. Environmental Protection Agency puts Florida’s energy sector — and the economic security and stability that it supports — at risk.
The EPA’s proposal will set a national target of lowering carbon-dioxide emissions — from 2005 levels — by 25 percent by 2020 and 30 percent by 2030. The rule will not be finalized until next year, but then Florida will have only until June 2016 to develop and submit plans for cutting CO2 emissions about 38 percent.
As a result, the EPA’s proposed regulations will more than likely increase electricity prices for every Floridian. They will certainly add confusion and a much larger regulatory burden on every man, woman and child in the Sunshine State, because the rules allow the state so little time to prepare a sensible plan.
At a time when electricity consumption in the state is projected to grow, these new rules will require coal-fired power plants to significantly reduce their carbon emissions, leaving these facilities with the difficult choice to either upgrade or shut down. Both options mean higher electricity prices for Florida consumers.
Essentially, the EPA is handing the states an unfunded mandate and targeting coal, an energy source that accounts for nearly a quarter of Florida’s electricity generation. But if coal-fired utilities close prematurely, how will Florida fill the gap while meeting growing consumer energy demands?
Instead of eliminating energy sources for Floridians, we need to have all options on the table — including nuclear, natural gas, renewables and coal — to ensure that utilities and electric cooperatives can deliver affordable and reliable electricity to America’s families, factories and farms.
Unfortunately, the level of cuts in coal-based generation and the timelines for implementation that are proposed will cause substantial reliability concerns and ensure higher electricity prices across the board. Right now there are no clear answers, and such a predicament would put Florida — whose annual per capita electricity expenditures are 40 percent higher than the U.S. average — in a very precarious energy and economic position.
Ultimately, the prospect of carbon regulation under EPA’s proposed rules should create much concern across Florida. They demand close attention from both our policymakers and every Florida energy consumer, whether you’re a farmer, small business owner, manufacturer or senior.
For all of these reasons, the Consumer Energy Alliance encourages Floridians and our elected leaders to support policies that protect the environment, but have a balanced approach that protects our energy and economic security as well.
During this exciting time of growth for Florida, supporting an all-of-the-above approach will prove itself as a successful path for the future, allowing energy supplies to be more secure and more affordable for our citizens. That means all energy sources — nuclear, natural gas, renewable electricity and, yes, coal — must remain strongly in the equation.
Changing the public perception of shale energy development
In this 90.5 WESA news story, CEA Executive Vice President Andrew Browning discusses how the public perception of shale energy development remains a challenge for industry.
Thousands of people with ties to the natural gas industry are gathered in Pittsburgh this week for the Developing Unconventional Gas, or DUG East Conference.
With ongoing debate around natural gas development, one of the key areas of focus is changing public perception. Environmental groups and anti-fracking groups are concerned about how fracking affects water supplies and the environment and also about long-term effects of the technology. Some allege that industry officials put profits before people.
The Consumer Energy Alliance said that’s not the case.
“They’re citizens too,” said CEA Executive Vice President Andrew Browning. “They breathe the air. Their children drink the water. They’re not going to turn a blind eye on the environment. You know companies should be held to a high standard.”
Browning said there are risks associated with natural gas development, though he said they are mainly above ground, but he added that there are risks associated with all forms of energy development. Ultimately, he said, the environment is something taken into consideration by industry leaders.
“Companies are kind of raising the level of the game, using more environmentally benign products, using better environmental safety health procedures, best practices and kind of laying out those procedures for the entire industry,” said Browning.
But anti-fracking activists remain unconvinced and continue to take action to slow or halt development in areas such as public parks. Also surrounding natural gas is an increasing number of lawmakers calling for a tax on extraction. Democrats largely support the move as do some Republicans from both the House and Senate, including leadership, Gov. Tom Corbett is opposed.
As for the future of the Marcellus Shale industry, Browning said it likely will continue to grow.
“Right now you’re seeing a lot of companies coming back here, you’re looking at the possibility of an ethane cracker in western Pennsylvania, so huge opportunities for development, manufacturing, jobs,” he said. “I think it’s going to continue booming here, so huge opportunities for the future.”
The DUG conference featured a keynote address from former CIA Director and Secretary of Defense Leon Panetta. It wraps up Thursday.
7 Things Pipeline Construction Did for Rural Oklahoma and Texas
Over 17 months beginning in August of 2012 TransCanada spent $2.3 billion to build a 485 mile pipeline from Cushing, Okla. to the Gulf Coast. Here are seven important outcomes:
- TransCanada’s $2.3 billion infrastructure investment over 17 months turned into $5.7 billion in economic activity for Texas and Oklahoma (Texas: $3.6 billion, Oklahoma: $2.1 billion).
- The economic activity from Gulf Coast construction supported $1.04 billion in labor income in Oklahoma and $1.7 billion in Texas.
- 50 contractors located in 19 states were utilized to provide parts and services during construction.
- A locally owned Texas small business provided 30,000 pounds of ice a week to construction workers to keep them cool and hydrated.
- Construction required 11 million hours of labor from 4,844 construction workers, heavy equipment operators, welders, laborers, transportation operators, environment, safety and quality control inspectors and supervisory personnel.
- In Texas, Delta and Wood counties saw over 20% of personal income stem from Gulf Coast Pipeline construction. In Oklahoma, seven of the eight counties saw more than 20% of their personal income derive from pipeline driven economic activity.
- Even after building the Gulf Coast Pipeline, the United States still lacks the necessary pipeline infrastructure to keep pace with energy development happening throughout North America.
CEA discusses shale energy development at the 2014 DUG Conference
Reported in this article by the Pittsburgh Business Times, CEA’s Andrew Browning speaks about shale energy development at a panel discussion at Hart Energy’s DUG East Conference.
By its nature, natural gas drilling and extraction is a polarizing topic. But opening the lines of communication between all parties holds the best potential for changing public perceptions, experts in the industry say.
“Fracking has become a four-letter-word and in the long run, it is going to take a lot of work to change that narrative,” Andrew Browning, executive vice president of the Consumer Energy Alliance, said while speaking in a panel discussion on the topic at Hart Energy’s DUG East conference and exhibit Wednesday.
For his organization, Browning said that means getting information to the public so that when people hear fracking it’s associated with jobs and American industrial competitiveness, not “Gasland” and flames coming out of people’s faucets.
CEA Reacts to EPA’s Proposal to Cut Power-Plant Emissions
Consumer Energy Alliance’s Michael Whatley is quoted in a Bloomberg story about the Obama Administration’s proposed cuts to power-plant emissions, warning the proposal will hurt consumers.
The administration is arguing that the plan would both have meaningful health benefits, because it would lead to less soot and smog as old coal plants shutter, and will lower customers’ electricity bills as they use less power. McCarthy said it would fuel investment and economic growth by promoting clean energy innovation.
In a call with Democratic lawmakers yesterday, Obama dismissed complaints that the rule will hurt the economy by driving up electricity prices, and told the Democrats listening: “Please go on offense” to promote the health impacts of the measure, said two people on the call, including Representative Gerry Connolly, a Virginia Democrat.
Coal producers, industry groups and Republicans in Congress criticized the plan.
Higher Prices
“The president’s plan is nuts, there’s really no more succinct way to describe it,” House Speaker John Boehner said in a statement. “Americans are still asking ‘where are the jobs?’ and here he is proposing rules to ship jobs overseas for years to come.”
The Consumer Energy Alliance, a Houston-based group whose members include Exxon Mobil Corp. (XOM) and some coal groups, warned the proposal will hurt companies.
“Unfortunately, both the level of cuts in coal-based generation and the timelines for implementation that are proposed today will cause substantial reliability concerns and will ensure higher electricity prices across the board,” Michael Whatley, executive vice president for the group, said in a statement.
The proposed regulation will permit states to achieve the reductions in climate-warming pollutants by promoting renewable energy, encouraging greater use of natural gas, embracing energy efficiency technologies or joining carbon trading markets. The regulations apply to existing power producers. Separate regulations governing new plants have already been proposed.
