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Energy Summit Sparks New RFS Discussion

Farm Journal Technology: An energized summit was held this week – literally. Not only was the discussion lively, the topic itself was about the current and future energy needs of the agriculture industry and new ways farmers can help contribute to energy production. The Southeast Energy Alliance (SEA) held its 2012 Southeast Ag-Energy Summit on Monday, Dec. 17. The event gathered up regional Farm Bureau representatives, politicians, agriculture association representatives and others to strike up a dialogue about the importance of affordable, reliable energy, challenges of renewable fuel and electricity, and more.

“Agriculture is very dependent on energy,” says SEA executive director Adam Waldeck. There is a ton of opportunity for them to be energy producers as well.”
Four panels held at the summit focused on a variety of topics, including the large energy needs of the agricultural sector.

“Twenty-five to 30% of our production costs are tied directly to energy,” says panelist Larry McKenzie with the South Carolina Farm Bureau. “Farmers have to make decisions looking 20 years down the road. We need a strong national energy policy so that our farmers can have certainty to make decisions about their energy use.”

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Washington Post: Oil prices drop as talks stall between Obama and Republican leaders to avert a ‘fiscal cliff’

Washington Post: Oil prices drop as talks stall between Obama and Republican leaders to avert a ‘fiscal cliff’

Oil closed above $90 a barrel for the first time in two months Thursday as it tracked an upward move in U.S. stock markets. Benchmark crude for February delivery ended the day at $90.13 per barrel, up 15 cents, on the New York Mercantile Exchange. Brent crude, used to price international varieties of oil, dropped 16 cents to finish at $110.20 per barrel in London. Meanwhile, gasoline prices continued to drop, while natural gas prices surged more than 4 percent.

Top 10 energy stories of 2012

Electric Transmission Line Repair

Writing at The Daily Caller, David Holt recaps the top ten energy stories of 2012:

Over the past year, energy has moved from newspapers’ business and science sections to their front pages. From the president’s highly controversial decision on the Keystone XL pipeline to new assessments of prolific U.S. oil and natural gas reserves, American energy dominated the headlines this year — and for good reason. High gasoline and diesel prices threaten to curtail the economic recovery and ongoing turmoil overseas has refocused the country’s attention on the importance of energy security.

1. North America on track to become energy self-sufficient within the decade. Since the Carter administration, every president has pontificated about the need for U.S. energy independence, yet each has failed to produce it. Following reports of increased shale energy production, Citigroupissued a report in March that concluded that by 2020 the United States could see domestic crude production and Canadian imports surpass U.S. demand. The report noted that the main challenges facing energy development would be “political rather than geological or technological.”

2. American drivers spend more at the pump than any year on record. Thus far in 2012, theaverage cost of gasoline has been $3.52 a gallon, exceeding last year’s record of $3.47 a gallon. However, relief for motorists may be in sight: The federal government is predicting gasoline will be$3.43 a gallon in 2013, which would be the lowest average annual gas price since 2010.

3. The “war on coal.” Coal use in U.S. utilities fell dramatically in 2012 as power providers switched to lower-priced natural gas. Pending environmental regulations also contributed to coal’s precipitous decline and led Governor Romney to accuse President Obama of waging a “war on coal.”

4. Obama, Romney campaigns duel over who’s more “pro-energy.” In a year of record-high fuel costs, it shouldn’t have come as a surprise that both President Obama and Governor Romney would support domestic energy. Yet few would have predicted that the candidates would try to out “drill, baby, drill” each other in the second presidential debate.

5. U.S. carbon emissions at lowest levels in 20 years. Despite the absence of a federal program to cap carbon emissions, the U.S. Department of Energy reported in August that U.S. carbon dioxide emissions in the first part of 2012 fell to 1992 levels. According to the DoE, this dramatic decline was driven purely by market forces, mostly the availability of cheap, plentiful supplies of cleaner-burning natural gas.

6. Low-cost natural gas ignites resurgence in domestic manufacturing. Large supplies of affordable natural gas have prompted manufacturers to reinvest in America. In fact, Dow Chemical has identified over “$80 billion in new spending along with 3 to 5 million new jobs” that have been announced by the industrial sector in response to available and low-price domestic natural gas.

7. Obama blocks Keystone XL but supports Gulf Coast portion. In a move watched closely by environmentalists and labor unions, President Obama rejected the Keystone XL pipeline’s application for a presidential permit in January. The president said that the 60-day timeline set by congressional Republicans wouldn’t allow his administration to properly review the proposed project. Just a few months later, he enthusiastically supported the project’s southern portion, extending from Oklahoma to Texas.

8. Nuclear industry introduces plans for smaller reactors. The start of 2012 looked bleak for the American nuclear industry: increased scrutiny of facilities after the 2011 Fukushima tragedy in Japan and mounting construction costs had doomed the much-hyped American nuclear renaissance. Then, in late 2012 the industry announced plans to move forward with a new generation of “small modular reactors” — portable, cost-effective reactors that would be designed with unique safety features.

9. Obama administration blocks offshore leasing in Atlantic for oil, moves forward with offshore wind. Despite vocal support for offshore drilling from politicians along the East Coast, the Obama administration announced it would prohibit drilling in the Atlantic in its next five-year leasing plan. A few months later, the administration announced plans for its first-ever renewable energy lease sales on the Outer Continental Shelf, opening significant blocks of the Atlantic to offshore wind development.

10. EPA denies Renewable Fuel Standard waiver despite worst drought in decades. On the heels of one of the worst droughts to hit the United States in decades, nearly a dozen states called on the EPA to waive the federal Renewable Fuel Standard in order to provide some relief to those industries hit hardest by high corn prices, namely the livestock industry. Despite bipartisan calls for a waiver, the EPA rejected the waiver request in November.

David Holt is the president of the Consumer Energy Alliance.

Source: http://dailycaller.com/2012/12/18/top-10-energy-stories-of-2012/

SEA Applauds Participation from Incoming GA PSC Chair Eaton, GA Ag Commissioner Black and Stakeholders from Six States at the 2012 Southeast Ag-Energy Summit


Consumer Group Brings Together Regional Stakeholders to Discuss Importance of Affordable, Reliable Energy to the Agricultural Community

Atlanta, GA — Today, Southeast Energy Alliance (SEA) held its 2012 Southeast Ag-Energy Summit with a number of key stakeholders and representatives in an intriguing discussion and debate over the importance of affordable, reliable energy to the agricultural community, the challenges presented by renewable fuel and electricity, and upcoming legislative priorities for the region. High-level officials included the incoming Georgia Public Service Commission (PSC) Chairman Chuck Eaton, Georgia Agricultural Commissioner Gary Black, Chief Environmental Counsel of the National Pork Producers Council (NPPC) Michael Formica, Charles Hall of the North Carolina Soybean Producers Association, and Executive Director of the Alabama-based Partnership for Affordable Clean Energy (PACE) Lance Brown, and many others.

As the keynote speaker for the event, incoming Georgia PSC Chairman Chuck Eaton stated: “As a regulatory body concerned with future capacity, I am concerned with removing generation sources or choosing one source over another without a mind to the future cost. And scarcity of sources will only make for higher costs in the future.”

Additionally, Georgia Agricultural Commissioner Gary Black discussed the importance of energy to the agriculture industry. “Sometimes we think of agriculture being in yesteryear. But it is as technologically advanced an industry as any other. And energy production is an important part of that $70 billion industry.”

The first panel of the program focused on the energy needs of the agriculture industry. Several of the panel participants focused on the large energy needs of the agricultural sector.

“25 to 30% of our production costs are tied directly to energy,” said Larry McKenzie of the South Carolina Farm Bureau. “Farmers have to make decisions looking 20 years down the road. We need a strong national energy policy so that our farmers can have certainty to make decisions about their energy use.”

The panel also focused on ways in which agriculture producers can help contribute to energy production. Frankie Hall, policy director for Florida Farm Bureau said that often “the problems come when farmers try to interface with the public utilities and various policies like net metering. If our producers can’t get a fair price for the electricity they generate, they have little incentive to spend money installing the systems.”

Most of the panel agreed that most of the regulatory challenges to the energy industry stem from the federal level. “They key is to have the state and federal regulators work together in a collaborative effort, or else you won’t get anything done because one entity will always overrule the other,” said McKenzie.

Another panel focused on the challenges and opportunities associated with the Renewable Fuels Standard (RFS). Participants included Michael Formica of the NPPC, Charles Hall of the North Carolina Soybean Growers Association and Benita Dodd of the Georgia Public Policy Center. Formica and Dodd both noted the need to reform the current RFS and to better utilize some of the “safety valves” included in the legislation.

“We pushed for a safety valve in the 2007 RFS as a way to offset price impacts from the combination of the RFS and weather based events,” explained Formica. “We were told that there were waiver programs already included in the program. The EPA this month denied our waiver request, leaving livestock producers to find other ways to compensate for large increases in operating costs.”

Asked if he thinks there will be any legislation to repeal or reform the RFS in the next Congress, Formica was hopeful, but focused on EPA’s waiver authority. “As far as EPA granting a waiver, there will be another round of requests in 2013. EPA has admitted they see the economics of a waiver changing once we hit the blend wall in 2013,” he said.

“Much of the national debate over the RFS has circled around corn ethanol, but one aspect of the program that is working is the bio-diesel standard,” said Hall. He stressed the importance of recognizing that soy-based fuels operate on a different standard and have a different economic profile, one that is free from the negatives associated with corn ethanol. Because of that, “we would not want to see legislative attempts to remove the bio-diesel requirements of the RFS,” he said.

According to Michael Whatley, Executive Vice President of Consumer Energy Alliance (CEA), the success of the 2012 Ag-Energy Summit will lead to several more energy events in the future. “Given today’s dialogue on a number of key energy and ag issues – including the RFS – it is clear that a number of topics will require a meaningful and responsible discussion by our policymakers in 2013. We were pleased to bring together these key industry experts today and look forward to continuing the conversation on these important issues to promote an all-of-the-above approach to energy diversification.”

The 2012 Southeast Ag-Energy Summit, co-hosted by the Georgia EMC and the Georgia and Alabama Agribusiness Councils, brought together regional stakeholders including Agriculture Commissioners, Farm Bureaus, Agribusiness Councils, elected officials, energy consumer groups and producers from six states. Participants included representatives from: South Carolina Farm Bureau, North Carolina Soybean Producers Association, Georgia Chamber of Commerce, South Carolina Forestry Association, Duke Energy, the Tennessee Poultry Association and the National Pork Producers Council, among others.

Incoming Georgia Public Service Commission Chair Chuck Eaton to Speak at 2012 Southeast Ag-Energy Summit

Key Agriculture and Energy Industry Experts to Discuss Significance of Affordable, Reliable Energy Supplies, the Challenges Presented by Renewable Fuel and Electricity, and Upcoming Policy Priorities for the Region

ATLANTA, GA: Today Southeast Energy Alliance (SEA) announced that the incoming Georgia Public Service Commission Chair Chuck Eaton will be a featured speaker at the 2012 Southeast Ag-Energy Summit beginning at 11am on Monday, December 17 at the Commerce Club in Atlanta, GA. Eaton will join a stirring lineup of speakers at the event including Michael Formica, Chief Environmental Counsel of the National Pork Producers and Lance Brown, Executive Director of the Alabama-based Partnership for Affordable Clean Energy (PACE). They willdiscussthe importance of affordable, reliable energy to the agricultural community, the challenges presented by renewable fuel and electricity, and upcoming legislative priorities for the region.

“With the Southeast being home to a number of energy-intensive industries such as agriculture, we are pleased to bring together these key industry experts at the 2012 Southeast Ag-Energy Summit,” said Michael Whatley, Executive Vice President of CEA. “We look forward to having a thoughtful discussion on the importance of effectively utilizing the nation’s abundant energy resources and how affordable, reliable energy is a key component to sustaining the agricultural community.”

“As debate continues about the responsible production of offshore energy resources, the growth of nuclear power generation and the role of renewable fuel and electricity in the Southeast, it is clear that there are a number of energy issues that will require a more prudent and responsible discussion in 2013,” said Southeast Energy Alliance Director Adam Waldeck. “We look forward to engaging with the 2012 Southeast Ag-Energy Summit speakers in a thoughtful dialogue on promoting an all-of-the-above approach to energy diversification.”

2012 Southeast Ag-Energy Summit speakers include:

  • Larry McKenzie; South Carolina Farm Bureau
  • Jeff Pratt; Georgia EMC
  • Charles Hall; North Carolina Soybean Producers Association
  • Lance Brown; Partnership for Affordable Clean Energy (PACE)
  • Paul Sherman; North Carolina Farm Bureau

The 2012 Southeast Ag-Energy Summit, co-hosted by the Georgia EMC and Georgia and Alabama Agribusiness Councils, will bring together regional stakeholders, consisting of Agriculture Commissioners, Farm Bureaus, Agribusiness Councils, elected officials, energy consumer groups and producers from six states. Such stakeholders will include representatives from the South Carolina Farm Bureau, North Carolina Soybean Producers Association, Georgia Chamber of Commerce, South Carolina Forestry Association, Duke Energy, the Tennessee Poultry Association and the National Pork Producers Council, among others.

Members of the national, state and local media are strongly encouraged to attend. The Summit is open to the public. Attendance is free, but registration is required. For more information, please contact Adam Waldeck at 203.535.2668 or adam.waldeck@southeastenergyalliance.org.

Utilize Domestic Oil, ESLC Recommendation Says

CEA Praises Energy Security Leadership Council Recommendations: In a press release issued on Monday, CEA called for the adoption of recommendations released by the Energy Security Leadership Council (ESLC) that are designed to safeguard the physical and economic security of the U.S. by reforming current energy policy. ESLC calls for the U.S. to reduce our exposure to the dangers of the global oil market by harnessing our abundant domestic energy resources and American innovation.

Natural Gas Is the Future. Let’s Get Ready for It

Natural Gas Is the Future. Let’s Get Ready for It

By Andrew Browning

The public has been confronted with a barrage of information about shale gas: its impacts on drinking water, its benefits – and threats – to local communities, and its effects on the environment. Much of this conversation is not driven by science and sound, public discourse of the issues, but by fear and hyperbole on both sides. Now that the campaigns have concluded, President Obama must help lead a real, honest discussion about shale gas development and hydraulic fracturing.

Throughout the presidential campaigns, both Governor Romney and President Obama enthusiastically endorsed increased American natural gas production, making it seem as if there was nationwide consensus on this issue. In reality, the debate over natural gas is increasingly polarized, punctuated by protests and TV commercials.

In September, the environmental group Environmental Defense Fund (EDF) elaborated its position in support of safe natural gas production. Few other organizations publicly supported EDF’s moderate position. Sadly, EDF’s announcement only elicited criticism from dissenters who urged the organization to either embrace a moratorium on drilling or admit it was in cahoots with industry. Dissenters opined that it was inappropriate and even immoral for an environmental group to fight for scientifically based regulation of gas production; the only option was to oppose production outright.

EDF’s balanced outlook is underscored by the position that scientific understanding should drive public policy debates. EDF has taken this position on natural gas development based not on political positioning, but on a pragmatic approach that focuses on three key facts:

· Hydraulic Fracturing is widely used in the oil and gas industry and “is not going away anytime soon”

· Substituting natural gas for coal can provide a net environmental value, including a lower greenhouse gas footprint

· Hazards and risks from hydraulic fracturing can be eliminated by effective oversight and enforcement

While my organization is not an environmental group – Consumer Energy Alliance focuses on energy and consumer issues – we, just like all Americans, are environmentalists who have a right to safe air and water for our families. As a consumer-driven organization, we understand that unsafe energy production can cost consumers and communities dearly, and thus we support sound oversight of safe natural gas production similar to EDF. Public concerns on trucking safety, water use, water impact, and emissions are real and must be addressed by industry.

Moreover, if you do believe that global climate change is the most serious environmental issue facing society today, increased natural gas production and use (along with other policies such as increased vehicle efficiency standards) is the low-hanging fruit in today’s economic and political environment to help reduce global greenhouse gas (GHG) emissions. In fact, increased use of natural gas for electricity generation has led to a 20-year low in U.S. carbon emissions – without a federal or international carbon tax or cap and trade scheme. The United States leads the world in carbon dioxide reductions since 2006, and we’re on track to surpass our objectives agreed to in the Copenhagen Accords of 2009.

Positive economic news is projected to continue with the current trends in natural gas production and use. As President Obama stated during his DNC acceptance speech in Charlotte, natural gas development holds the potential to create 600,000 new American jobs. Manufacturers that rely on natural gas to create products such as chemicals, fertilizers, plastics, and steel are expanding left and right. Recently, Dow Chemical noted that it had assembled a list of 91 announced manufacturing projects in the United States, representing $70 billion in potential investment and up to 3 million jobs that various companies have proposed or begun because of the depth and breadth of newly realized, low-cost, lower-carbon, natural gas resources.

As someone who has worked in energy, policy and politics for almost 20 years, I understand that compromise and consensus building, when they are actually practiced, can create positive change and progress in our societal debates, and an honest, workable discussion on natural gas development is sorely in need. In that context, I would like to offer the following ideas:

First, do not dismiss environmental groups who believe a safe path forward is best determined by working with industry and government, not against them. With a seat at the table, EDF holds more influence in the discussion than an organization that only views energy development in black and white would. Moreover, EDF is better positioned to criticize industry and government if they believe the latter have failed to keep their promises to protect public health and the environment.

Second, minimize the politicization of scientific studies by encouraging regulatory agencies not to shoot first and ask questions later. U.S. Environmental Protection Agency reports that aquifers near Pavillion, Wyoming and Dimock, Pennysylvania had both been contaminated due to energy production have since been reversed. Though the EPA has confirmed the drinking water in these areas is safe, this has not prevented groups from politicizing EPA’s motives and proliferating myths about hydraulic fracturing. On the flip side, this has greatly eroded EPA’s credibility and provided ammunition to the other side of the debate that the Obama administration has an anti-fossil fuel agenda that is only concerned with finding smoking guns.

Third, press elected officials have a comprehensive, fact-based discussion on shale gas development. Ask the real questions: How can government mitigate the impact of production on our environment in a way that is practical for industry yet satisfies the concerns of environmental groups and citizens in those communities? How should communities manage the real impacts – both good and bad – that come with increased production?

Finally, continue the conversation in your community and consider all viewpoints. The debate on U.S. energy production need not be so polarized. The United States can produce energy in a safe, responsible manner, but we the discussion must be led by smart policy, not clever politics.

Andrew Browning is Executive Vice President of Consumer Energy Alliance and a former Department of Energy official during the Clinton Administration.

Page Printed from: http://www.realclearpolicy.com/articles/2012/12/05/natural_gas_is_the_future_lets_get_ready_for_it_366.html at December 23, 2012 – 08:33:58 PM EST

CEA Testifies In Support Of New Pipeline Route

CEA Testifies In Support Of New Pipeline Route: On Tuesday, CEA Executive Vice President Michael Whatley testified at a public hearing held by the Nebraska Department of Environmental Quality (DEQ) on the agency’s draft evaluation report for the Keystone XL pipeline. Concurring with the report’s findings, Whatley said in part that the draft “clearly demonstrates that the Keystone XL pipeline will be one of the safest pipelines ever constructed,” adding that naysayers “will be hard-pressed to find any legitimate flaws in either this process or in this report.” After DEQ issues a final version of the report, Nebraska Gov. Dave Heineman will determine whether to approve the new route and allow the U.S. Department of State to proceed with its presidential permit application review.

Southeast Energy Alliance Announces the 2012 Southeast Ag-Energy Summit

Energy, Agribusiness, Farming and Forestry stakeholders and elected officials from six states to converge on the Atlanta Commerce Club to discuss critical post-election energy issues

ATLANTA, GA – Southeast Energy Alliance (SEA), the southeastern regional chapter of the Consumer Energy Alliance (CEA), today announced the 2012 Southeast Ag-Energy Summit, scheduled for Monday, December 17, 2012 at the Commerce Club in Atlanta, GA from 11:00am to 3:30pm. The Summit, co-hosted by the Georgia EMC and Georgia and Alabama Agribusiness Councils, will bring together regional Agriculture Commissioners, Farm Bureaus, Agribusiness Councils, elected officials, energy consumer groups and producers for a discussion about the importance of affordable, reliable energy supplies to the agricultural community, the challenges and opportunities presented by renewable fuel and electricity, and upcoming legislative priorities for the region.

At least 30 companies, industries and elected officials from six states will be represented at the 2012 Southeast Ag-Energy Summit, such as South Carolina Agriculture Commissioner Hugh Weathers, North Carolina Farm Bureau, South Carolina Forestry Association, Georgia Chamber of Commerce, Santee Cooper, and Tennessee Poultry Association.

Members of the national, state and local media are strongly encouraged to attend. The Summit is open to the public. Attendance is free, but registration is required.

WHAT:           2012 Southeast Ag-Energy Summit

Lunch will be served. Attendance is free, but registration is required.

WHEN:           Monday, December 17, 2012; 11:00 AM – 3:30 PM

WHERE:         The Commerce Club, 191 Peachtree Street NE, Atlanta, GA

WHO:              Regional Agriculture Commissioners, Farm Bureaus, Agribusiness Councils, elected officials, energy consumer groups and producers.

RSVP:             Adam Waldeck (203)535-2668 adam.waldeck@southeastenergyalliance.org

CEA: U.S. Should Adopt Recommendations to Strengthen America’s Energy Security

HOUSTON, TX: Consumer Energy Alliance (CEA) praises the recommendations released today by the Energy Security Leadership Council (ESLC), which are designed to safeguard the physical and economic security of the United States by reforming current energy policy. The report calls for the United States to reduce our exposure to the dangers of the global oil market by harnessing our abundant domestic energy resources and American innovation.

The recommendations, outlined in a report titled “A National Strategy for Energy Security: Harnessing Resources and Innovation”, urges policymakers to pursue the task of strengthening U.S. energy security as a necessity for the future security and prosperity of our nation.

CEA President David Holt offered this statement following the release of the report:

“The Energy Security Leadership Council correctly asserts that America’s energy security can be strengthened through an immediate increase in domestic energy production, and by advancing needed attention and reforms to energy-related regulations.”

“As previously emphasized in CEA’s “New Energy Future Report”, our country needs sound energy policy to help facilitate the responsible development and utilization of our abundant energy resources, and support our nation’s continued economic growth. American innovation in oil and natural gas has already buoyed the economy absent this sound guidance and is expected to support 1.5 million U.S. jobs by 2015 and 2.4 million jobs by 2035.”

“In order for our nation to reach its full economic potential and meet our growing energy needs, the President should follow the advice offered by multiple bipartisan groups in recent weeks.  That being to advance development of our domestic resources – including oil and gas – and reject political posturing designed to advance one energy source at the expense of another. Pursuing such a strategy is the single most important action our nation can take to ensure our economy remains competitive for generations to come.”

 

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