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Appeals Court Upholds Costly California Fuels Regulation

Houston, TX – The 9th Circuit U.S. Court of Appeals decision to uphold California’s Low Fuel Carbon Standard will keep a costly program on the books that has the potential to strap California drivers with gasoline prices significantly higher than the current $4.03 average that they are paying today, said Consumer Energy Alliance Executive Vice President Michael Whatley.

Michael Whatley:

“This is bad news for energy consumers. The court is upholding an untested program that even the EPA has no plans to pursue. Study after study has concluded that an LCFS would unnecessarily raise gasoline and diesel prices, leading to significant decline in GDP. Even with the court’s ruling Consumer Energy Alliance will continue our campaign to educate lawmakers and consumers on what can be done to keep fuel affordable – both in California and across the United States.”

Consumer Energy Alliance is a plaintiff in the case, Rocky Mountain Farmers Union vs. Corey. Others included: Rocky Mountain Farmers Union; Redwood County Minnesota Corn And Soybean Growers; Penny Newman Grain, Inc.; Rex Nederend; Fresno County Farm Bureau; Nisei Farmers League; California Dairy Campaign; Growth Energy; Renewable Fuels Association; American Fuel & Petrochemical Manufacturers Association, Fka National Petrochemical & Refiners Association; American Trucking Associations and Center For North American Energy Security.

AAA reported this week gasoline prices have been above $3.00 a gallon for the past 1,000 days.

 

 

Shale Can Boost Manufacturing and Middle Class in the Midwest

A natural gas platform near Carrollton, OH

A recent IHS CERA study confirmed what many observers already know. Namely, that a growing U.S. oil and natural gas industry is lifting the economic prospects of millions of Americans in areas where it’s occurring.

Specifically, the review found that shale development has already created 1.2 million jobs. What’s more? That number is expected to grow to 3.3 million in just seven years.  That’s welcome news for states like Michigan and Indiana that have struggled to regain jobs lost during the economic downturn.

In the Wolverine State, unemployment has actually increased in recent months and now stands at a lofty 8.8 percent.  Meanwhile, the Hoosier State’s unemployment rate remains at a stagnant 8.4 percent.

Luckily, both states have largely untapped shale basins that can provide a much-needed economic boost. Michigan hosts the Antrim and Indiana overlays the New Albany Shale, two resources that hold significant economic potential.  In Michigan alone, studies have shown that development could support more than 46,000 jobs by 2020.

However, what’s most promising for these states is a little noticed trend.  Where shale development has increased, so too has the economic well-being of middle class families.

In the Eagle Ford Shale, a San Antonio Express-News review found that counties hosting development saw an average increase in per capita income of 13.62 percent between 2008 and 2011.  For comparison, Texas saw a 1.3 percent increase over that time.

In Pennsylvania, Marcellus Shale development supports over 239,000 jobs. More than 30,000 of these jobs pay upwards of $80,000 per year. This exceeds average wages for all other industries by nearly $35,000.  It even exceeds the Keystone State’s average household income of $51,651 according to the 2010 Census.

It’s also worth noting that a burgeoning natural gas industry also boosts manufacturing jobs; a long-time staple of the Midwest economy.  In fact, a Washington Post feature earlier this year noted the shale boom is driving overseas industry to the United States in droves.

Since a manufacturing renaissance would be good news for Michigan and Indiana as the industry accounts for 12 percent and 16 percent of the workforce, respectively, Consumer Energy Alliance has recently been working to educate consumers in Michigan and Indiana on the positive impacts that shale resource development could offer.

In addition to shale resource development increasing wages and well-paying jobs, it’s also decreasing expenses for most Americans.

According to a recent IHS CERA study, the average U.S. family gained $1,200 in discretionary income last year thanks to reduced natural gas prices.  This is especially true where development is taking place. In Pennsylvania, shale development reduced ratepayers’ bills by $3,200 over the past few years.

While shale development is lifting our communities, it’s also increasing our nation’s energy security.  Just this past week, a review by the Energy Information Administration found that U.S. oil production reached its highest level in over 24 years this month.  To provide some needed context, Texas is now producing more oil than Iran and six other OPEC nations. It goes without saying this is making our nation more secure. In fact, the Energy Information Administration found the U.S. met 87 percent of its own energy needs during the first five months of 2013.

All of this lines up to create a very welcoming environment for the U.S. economy and consumer.  After all, nearly every sector of the economy relies on affordable and reliable energy supplies.  That’s especially true in the Midwest where so much of the economy is dependent on manufacturing, agriculture and reliable and affordable transportation networks.

Taken together then, a pretty clear picture emerges.  Namely, a growing and well-regulated shale industry holds significant promise for middle class families and manufacturing in the nation’s heartland.

Originally posted at FuelFix.com

Ron Rocco – Ohio Energy Voices

How Congress can support America’s manufacturing renaissance

The Hill | Thomas J. Gibson

Increased energy production within North America is expected to add 1.4 million jobs and create almost $803 billion in revenues by 2030. These benefits should not be overlooked, especially in light of the fact that each day we find ourselves with more energy resources than we had previously anticipated.  The U.S. steel industry is the solutions-provider in the energy renaissance, as the pipe and tube products that steelmakers produce are integral to the exploration, production and transmission of natural gas and oil.

The domestic steel industry has voluntarily reduced its energy intensity by 27 percent since 1990, while reducing its greenhouse gas (GHG) emissions by 33 percent over the same time period.  Despite our world-leading levels of energy efficiency, the steel industry consumes substantial amounts of energy each year primarily in the form of coal, natural gas and electricity.  Energy is typically 20 percent or more of the cost of making steel.

As major consumers of energy, steel companies are negatively impacted by high fuel prices.  Reliable and plentiful sources of energy are essential to our productivity and international competitiveness.  Increasing production of all of these sources is essential for the industry, which directly and indirectly employs more than one million people in the U.S.

In September of last year, the Consumer Energy Alliance (CEA) released its report, “North America’s New Energy Future: A Roadmap for energy self-sufficiency. If we choose it.” In its findings, CEA notes that, after several decades of preparation, the United States is finally in a place to substantially increase its energy generation and reduce oil imports. Part of this new energy reality for the U.S. includes a sweeping national shale gas boom that has brought economic growth, increases in state and local revenue and a revival for struggling manufacturing sector – including the steel industry. The shale gas revolution has helped to drive up production for many steel plants while reducing operating costs.

To make any further significant improvement in energy use, new breakthrough technologies are also needed.  A decade ago the industry began investing, often in partnership with the Department of Energy (DOE), in the CO2 Breakthrough Program — a suite of research projects designed to develop new ironmaking technologies that emit little or no CO2 while conserving energy.  We have developed two key technologies to achieve those goals since that time and they are now ready for pilot scale testing.  The research is being done at MIT and University of Utah and both projects are the subject of proposals currently under consideration for DOE cost-sharing.  This successful partnership with DOE, along with the continued support of Congress, will accelerate the development and deployment of these critical technologies.

For our new energy reality, CEA predicts that while “technology will play a leading role in boosting domestic supplies…  the real variable in it all is public policy.”  As such, Congress must:

* Promote an abundant and affordable energy supply by fully developing domestic natural gas, oil, coal, and nuclear power resources; including, harnessing the energy and economic benefits of natural gas from shale formations.  It is also essential that Congress act to ensure the approval of the Keystone XL Pipeline without further delay.

* Ensure that federal regulations do not unilaterally raise the cost of all domestic energy sources.  Several EPA regulations of the utility sector, including for greenhouse gas emissions, could raise the costs of electricity to large industrial customers like steel while potentially lessening the reliability of electricity supply. Proposals to subject shale gas drilling to new federal regulations must maximize the potential economic and environmental benefits of this important domestic resource.

Manufacturing on the whole supports an estimated 17.2 million jobs in the United States—about one in six private-sector jobs. Nearly 12 million Americans are employed directly in manufacturing. Greater development of energy resources means greater demand for manufactured goods, including steel.  That translates into more jobs, and that’s good for everyone.

Gibson is the president of the American Iron and Steel Institute.

Read more: http://thehill.com/blogs/congress-blog/economy-a-budget/320461-how-congress-can-support-americas-manufacturing-renaissance#ixzz2e9Qb8bsV
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Six Reasons to Approve The Stalled Keystone XL Project

USA TODAY | Merrill Matthews

The biggest mystery about the Keystone XL pipeline is why its final stage hasn’t already been approved by the Obama administration.

There are six things most people don’t know that make the mystery deeper:

  • From following the contentious Keystone pipeline debate, you can be forgiven if you think that the fight is over whether to build it. That’s not quite right. The Keystone system has already been transporting oil sands from Canada to U.S. refineries in the Midwest for three years — with no major leaks. The Keystone XL project that has received so much attention is the last phase of a larger project. Phase 1 has been operating since 2010, carrying oil from Alberta across three Canadian provinces and six states to refineries in Illinois. Phase 2 expanded the system from Steele City, Neb., to Cushing, Okla., a major U.S. oil refining and storing hub. It wentoperational two years ago, again with no major problems. Phase 3, under construction, extends the pipeline from Oklahoma to the Gulf Coast refineries in Texas. President Obama even gave a speech in Cushing in March 2012 — during his re-election bid — praising the pipeline extension as good for the economy. Phase 4, the Keystone XL, would build another extension to the pipeline system from Alberta, crossing only three states (Montana, South Dakota then Nebraska).
  • The new pipeline will disturb less land than the pipeline that has already been built. While the Keystone XL will have the capacity to deliver more oil — 830,000 barrelsa day vs. 590,000 for Phase 1 — its U.S. footprint is more than 200 miles shorter than Phase 1.
  • Pipeline builders have already addressed the major environmental objection. Environmentalists argued that Phase 4 would transport oil across environmentally sensitive areas of Nebraska. Gov. Dave Heineman expressed similar concerns. So the builder, TransCanada Corp., rerouted the pipeline, which satisfied the governorand the Nebraska Legislature.
  • The expanded pipeline doesn’t move just Canadian oil; TransCanada routed the expansion to transport up to 100,000 barrels a day of U.S. crude oil from theBakken reserves in North Dakota and Montana.
  • Keystone XL isn’t just another way to import oil to the USA, it could actually lower the U.S. trade deficit. The U.S. trade deficit has been at a four-year low, primarily due to declining oil imports. Approving the Keystone XL will improve that trend, allowing the U.S. to export more refined petroleum products that build jobs at U.S. refineries while lowering the trade deficit.
  • Many say that by not building the Keystone XL, the U.S. would be taking a stand against importing the Canadian tar sands oil that environmentalists claim is particularly damaging. Such a stand would only be symbolic. According to The Wall Street Journal, the number of train cars carrying Canadian oil is up 20%, and U.S. refineries are expanding their ability to take delivery by rail. Rival pipelines are expanding their existing capacity because they don’t require new approvals. The oil is coming, the only question is how much new investment there will be in U.S. energy infrastructure.

The fact is that the Keystone XL pipeline is simply an extension of an already existing program that is working well, creating jobs and expanding U.S. manufacturing. It should be an easy decision for anyone concerned about the economy.

Merrill Matthews is a scholar at the Institute for Policy Innovation.

In addition to its own editorials, USA TODAY publishes diverse opinions from outside writers, including our Board of Contributors . To read more columns like this, go to the opinion front page or follow us on Twitter @USATopinion or Facebook.

Allday: Let’s Not Grind Our Roads to Ruin

Writing for the Corpus Christi Caller-Times, Marty Allday says Texas needs to increase road and infrastructure funding to continue its economic growth.

RoadsThe Texas Department of Transportation’s (TxDOT) recent announcement of its plan to convert some 83 miles of paved roads to gravel should set off alarms in the heads of Texas voters. The move is one of the first outward signs that the state’s road funding situation needs to be tackled head on.

Although TxDOT has given affected counties 60 days to appeal proposed conversions, the agency says it will begin the process soon, once it gets permission from the affected counties (mainly in west and south Texas) to lower the speed limits to 30 mph on the stretches in question. Considering the possible impacts, namely reduced traffic flow, further congestion on roads that remain paved, increased maintenance, etc., the TxDOT plan has received very little, if any stakeholder input.  And that’s part of the problem. Texans across the state must quickly be made aware of the looming road problem and recognize the importance of the state’s infrastructure to their economic success.

A quality transportation system is critical to the success of the Texas energy industry. We doubled our oil production to 2.25 million barrels per day in only 27 months. This exponential growth has provided hundreds of thousands of direct and indirect jobs, and billions in economic growth, making the state the economic powerhouse it is. This growth has also had an impact on our great state’s infrastructure. Many country lanes and Farm to Market roads are subject to truck traffic never before imagined and are showing their wear.

TxDOT’s plan is especially disappointing in the afterglow the legislature’s creation of county energy transportation reinvestment zones (TRIZ’s) that provide temporary increases in broad based local taxes to be used for roads.  Where the new TRIZ funds, created by S.B. 1747 by Sen. Carlos Uresti (D-San Antonio) and Rep. Jim Keffer (R-Easland), provided funding to Granite Wash, Permian Basin and Eagle Ford roads battered by heavy oil field truck traffic, it appears these new road dollars could go to improve county roads that connect to state roads destined for the conversion to gravel under TxDOT’s new plan.

The timing of TxDOT’s announcement is also curious. The Texas legislature just passed a ballot referendum (on their third try) providing about $1.2 billion per year from the Rainy Day Fund for road maintenance and construction. But voters won’t get the chance to weigh in until the 2014 general election.

Though Texans should easily pass the proposed measure, they should also begin the more difficult process of providing adequate funding to TxDOT and the counties enduring the brunt of the degradation of roads. While calls for fiscal restraint will surely grow louder as the election draws near, voters in the eastern half of the state must realize how closely their good fortunes are tied to dusty oil patch roads, and vote accordingly. In the meantime, TxDOT could surely find a better temporary solution to the problem.

Despite the new 60 day appeal window, TxDOT should work to further open it’s pavement-to-gravel plan to stakeholder and community input.The plan could be strengthened by ensuring that converted state roads don’t conflict with planned county TRIZ improvements, along with anticipated improvements under the proposed road funding amendment.  Turning paved roads to gravel will be a less bitter pill if gravel conversion of some roads were part of a broader infrastructure upgrade made possible by increased funding.

TxDOT should reconsider its short term plans to solve budget problems in light of broader future efforts to provide legislative solutions. It should also take input from impacted communities in the oil patch and key stakeholders like energy and service companies. Texans across the state must quickly be made aware of the looming road problem and recognize the importance of the state’s infrastructure to their economic success. Its going to be a long and bumpy road.

Marty Allday is Executive Director of Consumer Energy Alliance- Texas.

KXL Decision This Year? Still Possible.

From the Nebraska  Radio Network:

Keystone XL Oil Pipeline 5th environmental study complete

September 4, 2013 by Karla James

The fifth environmental review regarding the Keystone XL Oil Pipeline and we will once again enter a national comment period. Michael Whatley with the Consumer Energy Alliance says at the end of the day this is called a “presidential permit” meaning President Obama’s decision will be delivered to the Secretary of State office where the decision will be announced. He has analyzed the situation and believes in the end it will be a go.

Whatley says a year ago President Obama didn’t want to take the chance and upset supporters or opponents of the pipeline so the issue was tabled during the election. He says now, with unrest in Syria and Egypt, one bad action could cause a big price hike and the president will give the green light. The Consumer Energy Alliance has been polling Americans and they report upwards of 70% approve of the project.

Whatley says there have been enough delays that TransCanada is making alternate plans. There are two other pipelines under proposal to go across the Canadian mountains to the Pacific coast and TransCanada announced last month they will build another pipeline to Montréal and then to the coast. He says this oil will find a way to the world market and the other countries that want to buy it and understand it is coming at a discount and from a reliable trade partner.

An answer from the U.S. regarding the Keystone XL Pipeline is likely yet this year. Whatley says if it is approved there will likely be many lawsuits filed by environmental groups opposing the pipeline.

U.S. Rep. Blackburn to address President’s Climate Action Plan, future of affordable power at regional Nashville forum

Nashville, TN – The potential impacts of President Obama’s Climate Action Plan on the affordability and reliability of power in the Southeast will be among the topics addressed by Rep. Marsha Blackburn (R-TN), when both energy consumers and producers convene in Nashville for the Southeast Powering our Future Forum on September 25.

http://southeastpoweringourfutureforum-affiliate1.eventbrite.com
The forum will come just days after the Environmental Protection Agency’s September 20 deadline, by which point the agency is expected to release a draft regulation on new coal-fired power plants.

“We need to understand the impact of changing regulations or else we risk driving up electricity prices,” said U.S. Rep. Blackburn, who serves as Vice Chair of the U.S. House Energy & Commerce Committee. “If we hope to protect every American’s right to pursue happiness and create a better future, we need to keep the lights on for our families and job creators.”

CEA’s Southeast Powering our Future Forum (http://southeastpoweringourfutureforum-affiliate1.eventbrite.com) is September 25th from 11am – 3pm at the Bridgestone Arena in Nashville. Electricity consumers and producers representing at least six Southeastern states will discuss the best way to ensure a future of low-cost, reliable electricity if the Obama Administration regulates new and existing coal-fired power plants.

“A key reason the Southeast has become a magnet for jobs and investment is reliable, affordable power,” said Adam Waldeck, Executive Director of Consumer Energy Alliance (CEA) Southeast, a Host of the forum. “People want to know what these new regulations will look like, how they’ll impact their bottom line, and what they can do about it.”

Joining the Consumer Energy Alliance (CEA) as Hosts for the Southeast Powering our Future Forum are the Tennessee Chamber of Commerce & Industry, Nucor and Piedmont Natural Gas, while TVA, Georgia Power, Alpha Natural Resources and the Tennessee Farm Bureau will serve as Co-Hosts.

The Southeast Powering Our Future Forum (http://southeastpoweringourfutureforum-affiliate1.eventbrite.com) is part of a series of regional CEA Southeast events. Earlier this year CEA Southeast hosted an offshore energy forum in Myrtle Beach, South Carolina and a gubernatorial candidates forum in Arlington, Virginia.

Tenn. U.S. Rep. Blackburn to Address Expected EPA Regulations

Coming just days after the EPA is expected to release a draft regulation on new coal-fired power plants, U.S. Representative Marsha Blackburn (R-TN), Vice Chair of the U.S. House Energy & Commerce Committee, will address both the potential impacts of President Obama’s Climate Action Plan and the future of affordable, reliable power in the region at the Southeast Powering our Future Forum in Nashville on September 25.

“We need to understand the impact of changing regulations or else we risk driving up electricity prices,” said U.S. Rep. Blackburn. “If we hope to protect every American’s right to pursue happiness and create a better future, we need to keep the lights on for our families and job creators.”

CEA’s Southeast Powering our Future Forum is September 25th from 11am – 3pm at the Bridgestone Arena. Electricity consumers and producers representing at least six Southeastern states will discuss the best way to ensure a future of low-cost, reliable electricity if the Obama Administration regulates new and existing coal-fired power plants.

“A key reason the Southeast has become a magnet for jobs and investment is reliable, affordable power,” said Adam Waldeck, Executive Director of Consumer Energy Alliance (CEA) Southeast, a Host of the forum. “People want to know what these new regulations will look like, how they’ll impact their bottom line, and what they can do about it.”

Joining Consumer Energy Alliance (CEA) as Hosts for the forum are the Tennessee Chamber of Commerce & Industry, Nucor and Piedmont Natural Gas, while TVA, Georgia Power, Alpha Natural Resources and the Tennessee Farm Bureau will serve as Co-Hosts.

Why so much fuss?

This week in Afternoon Energy, Joe from Georgia asks : “Why is the Keystone XL pipeline causing so much debate even though other pipelines that run between the U.S. and Canada have been approved before?”

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