CEA Urges Interior to Not List Dunes Sagebrush Lizard

CEA Urges Interior to Not List Dunes Sagebrush Lizard:

CEA Submits Over 13,000 Comments Highlighting Concern for Energy Development

HOUSTON, TX: Consumer Energy Alliance (CEA) submitted over 13,000 public comments on Friday from its U.S. consumer-advocates to the U.S. Fish and Wildlife Service that urge the agency not to list the dunes sagebrush lizard as either “endangered” or “threatened” under the Endangered Species Act (ESA). A decision by the federal government could come at any time.

Commenting on CEA efforts, CEA President David Holt released the following statement:

“For years, CEA has remained concerned about the impact that ESA protection not grounded in sound science can have for domestic energy access. For the dunes sagebrush lizard, CEA understands that little practical difference exists between the ‘threatened’ and ‘endangered’ designations and that either classification could be disastrous for energy producers in the resource-abundant areas of the Permian Basin in Texas and New Mexico. Even further, serious doubts have been raised about the adequacy of existing science and data to support a decision to list the species.

“CEA and its consumer-advocates recognize the value that American energy production has for our nation’s economic growth and energy self-sufficiency. Arbitrary decisions based on questionable science must not be used as a way to prevent Americans from developing domestic resources. Rather, federal regulators and industry must strive to work cooperatively to assess and implement sensible conservation plans that balance the need for energy production and environmental protection.”

As part of a litigation settlement with environmental groups, the U.S. Fish and Wildlife Service must evaluate certain candidate species and make determinations as to whether the species should be listed as either “threatened” or “endangered,” including species such as the dunes sagebrush lizard whose listings had previously been proposed but not yet finalized. Following its proposed listing of the dunes sagebrush lizard as “endangered” and subsequent public comment periods, the agency has recently signaled that it may seek a “threatened” classification for the species.

Consumer Energy Alliance Welcomes Keystone XL Permit, Pledges Support

HOUSTON, TXConsumer Energy Alliance (CEA) applauds TransCanada’s re-submission of its presidential permit application for the Keystone XL pipeline.  The action is a critical step for a project that is integral in securing reliable energy supplies for the benefit of the U.S. economy, consumers and our nation’s energy security, while providing thousands of jobs for hard-working Americans.

The final application includes the already reviewed route in Montana, South Dakota, and Oklahoma.  TransCanada will add the alternative route identified in Nebraska once negotiations have finalized in the coming weeks.

Even before the pipeline was re-routed, TransCanada agreed to adopt 57 special conditions that will make the pipeline one of the safest in our nation’s history.  This resulted in previous reviews by the State Department indicating the project would have a minimal environmental impact and “would have a degree of safety over any other typically constructed domestic oil pipeline system under current code.”

For these reasons, CEA encourages the Obama Administration to approve the project as expeditiously as possible and stands ready to provide full support as the project enters the final stages of the approval process.

CEA Executive Vice President Michael Whatley offered the following in regards to the projects presidential permit re-submission:

“The vital role that this pipeline plays by carrying 700,000 barrels of discounted oil into the U.S. refineries and U.S. markets will have on gasoline prices is why we’re working as hard as we can to support the project.

“The bottom line is that the advancement of this project is important to everyday Americans. From farmers, to families, to our nation’s businesses, all Americans will benefit from a reliable and affordable source of oil from one of our nation’s most loyal allies.

“It is imperative for the benefit of the majority of Americans that this project move forward, even if it upsets special interests along the way.  Unfortunately for these interests, our nation is not in the luxurious position of being able to cherry-pick our energy sources.  As the president stated, we need an ‘all of the above’ approach and we need it now.”

Hurdles to Offshore Energy Remain

As tens of thousands of energy professionals descend upon Houston this week for the 2012 Offshore Technology Conference, we are reminded just how far technology has come in such a short time.  In the two years since the Deepwater Horizon tragedy, both the private sector and federal regulators have advanced new technologies and practices that enhance the safety of offshore development.

Despite these advancements, the future of Outer Continental Shelf (OCS) exploration and production remains in limbo.  In a recent Wall Street Journal Op-Ed, Virginia Governor Bob McDonnell underscored how pervasive some of the political hurdles in offshore development have become. From Virginia to Texas and up to Alaska, access has been curtailed through limited leasing programs and regulatory hurdles.   In November of 2011, the Administration inexplicably removed leasing off Virginia from its five-year leasing plan, despite strong bipartisan and public support for offshore development.   At a time when economic growth remains the top priority for most states, the federal government has denied Virginia the immense economic benefits that offshore development brings.

Virginia is not the only state affected by limited access to its offshore resources.  Nearly two years after the drilling moratorium, investment in offshore production continues to lag.  As a result, the Energy Information Administration has stated that Gulf oil production will decrease by roughly 200,000 barrels of oil a day this year when compared with production levels prior to the moratorium.  Last year, independent research firm IHS-CERA issued a report that indicated that a return to pre-Macondo production levels could create anywhere from 110,000 to 230,000 jobs.

Meanwhile off Alaska, Shell has invested nearly $4 billion dollars to explore areas of the Chukchi and Beaufort Seas.  After years of planning, Shell has amassed one of the largest, most comprehensive safety and response capabilities in the history of offshore exploration and is ready to move forward with its exploration program this summer.  Both the federal Bureau of Ocean Energy Management and the U.S. Coast Guard have signaled that, given the level of coordination between the operator and federal agencies, they are confident operations can and will proceed safely off Alaska this summer.  However, some dissenters now argue that no level of safety preparedness is sufficient.   Alaskan OCS development has the ability to create upwards of 55,000 jobs per year nationwide over the next 50 years.  Over that same timeframe, federal and state treasuries would collect an estimated $193 Billion in tax revenue.

We cannot afford to turn our backs on the enormous economic potential of our OCS resources out of remote fear.  Rather, federal regulators and private industry must continue to advance environmentally friendly practices and technology. We applaud the thousands of companies at OTC who are doing exactly that: demonstrating that energy development and environmental protection are not mutually exclusive.

Consumer Energy Alliance Welcomes Newest Affiliate Member, Mississippi Energy Institute

Mississippi Energy Institute

 

Consumer Energy Alliance Welcomes Newest Affiliate Member, Mississippi Energy Institute

HOUSTON, TX: Consumer Energy Alliance (CEA) is pleased to welcome Mississippi Energy Institute (MEI) as its newest affiliate member.

MEI began meeting in July 2009 as an initiative of “Momentum Mississippi,” former Governor Haley Barbour’s long-term economic and education plan for Mississippi. One of the Momentum Mississippi’s high priority goals is to diversify and improve Mississippi’s economic base, by developing the state’s abundant energy resources. Current Mississippi Governor Phil Bryant has also highlighted energy as a major platform of his economic development agenda, “Mississippi Works.”

“MEI is proud to announce its new partnership with CEA,” said Patrick Sullivan, MEI’s President. “We look forward to working with CEA and its partners in order to elevate the conversation about the future of energy so that we can collectively define the path forward. MEI will help Mississippi capitalize on the development of its energy resources and supportive policy environment. In so doing, MEI can play a large part in helping Mississippi to realize its full economic potential.”

“CEA is very pleased to have MEI as a partner in the discussion on a balanced energy policy,” said CEA President David Holt. “The primary function of CEA is to provide energy consumers and producers with a forum to discuss the development and implementation of a national energy policy that supports affordable energy. With the summer driving season on the horizon and rising energy costs, CEA looks forward to working closely with MEI to address the key energy and environmental issues facing Mississippi as well as the nation as a whole.”

 

CEA Commends New Hampshire Senate Passage of HB 1487

CEA Commends New Hampshire Senate Passage of HB 1487

Bill will prohibit funding for costly low carbon fuel standards without legislative due process

WASHINGTON – Earlier today, the New Hampshire Senate passed HB 1487, an act that will prohibit the State from funding participation in any national, state or regional low carbon fuel standard (LCFS) without legislative approval.

Upon the announcement, Michael Whatley, Executive Vice President of the Consumer Energy Alliance, made the following statement:

“Today’s vote by the New Hampshire Senate is a victory for energy consumers in the Granite State. With recent studies indicating that a regional LCFS would more than double gasoline prices in New Hampshire, reduce disposable income, hammer the State’s GPD and threaten thousands of jobs, passage of this legislation is a win for New Hampshire drivers and home heating oil users.

“On the heels of a winter with record home heating oil costs, and in the midst of record spring gasoline prices, consumers should not be asked to pay more to take care of their families, heat their homes, and drive to work.  We hope that the Legislature will be able to work out the differences between the House and Senate versions of the bill quickly and send it to Governor Lynch shortly.

A recent report by Consumer Energy Alliance, with modeling conducted by SAIC, found that a Northeast/Mid-Atlantic LCFS would have a costly impact on all eleven states within the region including a cumulative loss of 147,000 jobs, an overall 10-year economic impact of $306 billion, and a doubling of gasoline prices—all while failing to reach standard’s intended carbon reduction goal.

A copy of the bill can be found here.

A copy of the report from CEA can be found here.

Consumer Energy Alliance Welcomes Newest Affiliate Member, Chemistry Industry Council of Illinois

Consumer Energy Alliance Welcomes Newest Affiliate Member, Chemistry Industry Council of Illinois

 

HOUSTON, TX: Consumer Energy Alliance (CEA) is pleased to welcome the Chemistry Industry Council of Illinois (CICI) as its newest affiliate member.

The Chemical Industry Council of Illinois (CICI) is a state-wide business trade association which represents the interests of the chemical industry in the state of Illinois. CICI was first founded in 1951 as the Drug and Chemical Industries Activities Committee (DACIAC) formed by 16 companies with the main objective to promote excellence in education. Today, CICI represents 115 companies engaged in the manufacture, blending, distribution and sale of beneficial chemicals. CICI’s primary role has also changed to focus on representing the industry on legislative and regulatory issues in Illinois.

“CICI is proud to announce its new partnership with CEA,” said CICI Executive Director Mark Biel. “We look forward to working with CEA in order to give the chemicals sector a stronger voice in the discussion of rational energy policy. Natural gas and electricity are the lifeblood of the state’s chemical industry. CEA will help Illinois capitalize on the development of its energy resources as it relates to the chemicals industry and a supportive policy environment. In so doing, CICI can play a large part in helping Illinois to realize its full economic potential.

“Consumer Energy Alliance is excited to have CICI as a partner in the discussion on a balanced energy policy,” said CEA Midwest Director Ryan Scott. “The fundamental function of CEA is to provide energy consumers and producers with a forum to discuss the development and implementation of a national energy policy that supports affordable energy. With the specter of high rising energy costs, CEA looks forward to working closely with CICI to address the key energy issues facing Illinois as well as the nation as a whole.”

In 2011, Illinois’ chemical industry produced over $36 billion worth of chemical products annually making it Illinois’ third largest manufacturing sector. Additionally, the state’s chemical industry exported $8.5 billion worth of products, making it the second largest exporting sector in Illinois. CICI members employ over 45,000 people at an average annual wage of $80, 748.

The uncertain state of regulation

The uncertain state of regulation

Last week, we learned about plans for a new set of regulations covering natural gas production from hydraulic fracturing. And this week, the Interior Department has said that those forthcoming rules are still being defined and it’s unclear when they will be released.

If it sounds familiar, that’s because it is. The U.S. oil and gas industry, already slowed by uncertain policies covering exploration and production in Alaska and Texas, and by mixed messages surrounding the Keystone XL Pipeline, now is bracing for another set of rules covering a sector that has been a major growth engine for the national economy.  Hydraulic fracturing has lead the resurgence in natural gas and oil development in our country, allowing producers from North Dakota to South Texas and Pennsylvania tap into shale rock to bring these resources to consumers. Meanwhile, manufacturers are building new plants and bringing jobs back to the United States, thanks to lower natural gas prices and better access to stable supplies.

While CEA has always promoted the responsible production of all of our natural resources, we also know it’s important to draw a distinction between safe, environmentally friendly practices and excessive regulation. Indeed, the layering of regulations on top of other regulations results in a high cost to industry, and, therefore, higher costs for consumers.

At a time when we need businesses to move forward and commit to new investments and hiring, uncertainty over new regulations that may be imposed in the future makes it hard for businesses to commit to much of anything. Indeed, the chief economist of the National Association of Manufacturers said recently that the uncertain U.S. regulatory environment ranks among the top concerns among manufacturers seeking assurance about a steady supply of shale gas. “We depend heavily on energy and we need affordable sources of energy to allow manufacturers to expand,” the economist, Chad Moutray, said. That same story quotes the chief economist of the American Petroleum Institute describing U.S. energy and economic policy as being at a crossroads, where the abundance of home-grown resources is often at odds with tax and regulatory policy.

As the U.S. continues to slowly recover from the economic downturn, we need policies that give businesses and manufacturers a level of certainty about the climate they will be operating in going forward rather than leaving them with the impression that additional costs on them may be imposed at any time.

CEA: 9th Circuit Action Places Jobs and Consumers at Risk

CEA: 9th Circuit Action Places Jobs and Consumers at Risk

SAN FRANSISCO  – On Monday, the U.S. 9th Circuit Court of Appeals issued a stay of a federal judge’s injunction blocking California’s low-carbon fuel standard.  The action will allow for the continued implementation of a low carbon fuel standard program in California during the appeals process.

In December, U.S. District Judge Lawrence O’Neill ruled that the program is unconstitutional because it violates the commerce clause.  In response to the 9th Circuit’s ruling, CEA Executive Vice President Michael Whatley stated:

“We are disappointed that the 9th Circuit Court of Appeals has chosen to allow, pending resolution of the appeal, a costly and  destructive program to continue while placing countless American jobs and consumers at risk. Even those supporting California’s LCFS have acknowledged its legal risk.  CARB’s claims that ‘the Low Carbon Fuel Standard drives investment and innovation, creates new jobs and provides the next generation of clean fuels to all Californians,’ have been debunked by study after study.  At the end of the day the LCFS will fail to reduce CO2 emissions, double gas prices, place thousands of jobs at risk, and will cost our economy billions of dollars.”

“As the Court moves forward with the appeals process, CEA will continue to pursue our challenge to this unconstitutional and costly state program that will have little to no impact on global carbon emissions.”

Even those spearheading the program’s development have recognized the legal uncertainty surrounding the LCFS. In the Northeast, NESCAUM executive director Arthur Marin expressed concern this week in an interview about the constitutionality of California’s LCFS program, pushing NESCAUM to examine alternative models for a low carbon fuel standard.

Consumer Energy Alliance Welcomes Great Plains- The Camelina Company

Consumer Energy Alliance Welcomes Great Plains- The Camelina Company

HOUSTON, TXConsumer Energy Alliance (CEA) is pleased to welcome Great Plains- The Camelina Company as its newest affiliate member.

Great Plains – The Camelina Company is the world’s largest producer of camelina oil, a proven alternative to petroleum crude oil, in demand by biofuel refiners worldwide.  The Company pioneered the manufacturing, marketing and production of fuel from camelina and is the leader in its science, agronomy and production, with market-leading intellectual property and a 14-year history with camelina R&D.  Over the last few years, the company has demonstrated its ability to produce at commercial scale, and has recently completed the largest camelina oil delivery in history at nearly one million gallons.  The company delivered this amount of fuel at competitive pricing and anticipates the ability to deliver renewable crude at petroleum equivalent pricing at scale production within three years.

Sam P. Huttenbauer, Chief Executive Officer of Great Plains- The Camelina Company, offered the following statement upon joining CEA:

“We were delighted to see this past fall bring the first commercial airline flights powered by camelina, a renewable alternative to crude petroleum which our company has been developing for the last 14 years.  Airlines need a fuel option which both helps them to level out commodity fuel spikes while addressing their goals to reduce their carbon emissions.  Camelina has been proven to be a reliable drop-in alternative to crude petroleum for use in aviation fuel, and with a greatly improved CO2 footprint and slightly improved performance over petroleum, provides a perfect US derived energy source to compliment domestic fuel supplies, both for our military’s and commercial career’s needs.  Our Country requires a balanced energy policy that both takes advantage of the natural resources we have as well as promotes renewable ones which are quickly being developed and Great Plains looks forward to being able to join in these important energy conversations via the Consumer Energy Alliance.”

Ryan Scott, CEA Midwest Executive Director, offered the following statement welcoming the company:

“Consumer Energy Alliance is very pleased to welcome Great Plains – The Camelina Company as a partner in the discussion on rational energy policy. The primary function of CEA is to unite energy consumers and producers in order to develop and implement a balanced, national energy policy that supports domestic energy production.  By providing a clean and commercially viable alternative fuel, Great Plains – The Camelina Company has shown its products are a vital part of any all of the above energy policy in this country.  We look forward to working closely with them to address the key energy and environmental issues facing both Great Plains – The Camelina Company and the nation as a whole.”

CEA: TransCanada to Present Alternative Keystone XL Route Following Approvals

HOUSTON, TX: Consumer Energy Alliance (CEA) strongly supports yesterday’s approval of legislation that provides the Nebraska Department of Environmental Quality with authority to evaluate the new route within Nebraska for the Keystone XL pipeline. The legislation will now allow TransCanada to submit a new route to NDEQ, which will initiate the environmental review of the project.

In response, CEA Executive Vice President Michael Whatley released the following statement:

“CEA is extremely pleased to see that the Nebraska Legislature has passed this comprehensive, thorough and fair legislation that will allow Nebraska to ensure that its environment is protected and allow TransCanada to move forward with the Keystone XL project.”

“We are also pleased that the selection and environmental review of the new route should start shortly and hope that the Obama Administration will work with the State of Nebraska to review the new route, expiditiously grant the Presidential Permit and allow construction of this critical project.”

“This is truly an important step forward towards the realization of an “all of the above” energy policy and CEA looks forward to working with both NDEQ and the Administration to ensure the project’s approval moving forward.