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CEA Commends U.S. District Judge O’Neill for Enforcing Original Ruling Against Unconstitutional LCFS Program

CEA Commends U.S. District Judge O’Neill for Enforcing Original Ruling Against Unconstitutional LCFS Program

Fresno, California – Monday night, U.S. District Judge O’Neill rejected a request to lift a stay on low carbon fuel standards (LCFS) in California.  Judge O’Neill stated that he would not reverse his original ruling that an LCFS in California is unconstitutional as it would violate the commerce clause.

In response to the development, Consumer Energy Alliance (CEA) Executive Vice President Michael Whatley stated:

“We commend Judge O’Neill for standing firm on his initial decision against this harmful and unlawful policy.  Not only is an LCFS unconstitutional, but it would also hurt the California economy, farmers, consumers and truckers by raising fuel prices sharply and burdening consumers.

“As proposed, the LCFS favors oil from unfriendly regimes and blocks the use of oil from friendly nations like Canada.  And ironically, the policy will have the opposite of its intended effect by creating more greenhouse gases in the long run.”

The federal district court finding on December 29th found an LCFS in California to be unconstitutional.  Specifically the court found that “LCFS discriminates against out-of-state and foreign crude oil while giving an economic advantage to in-state crude oil.” It also found that “the LCFS discriminates against out-of-state corn ethanol and impermissibly controls extraterritorial conduct.” Because the state had failed “to establish that no alternative means exist to address their legitimate concerns of combating global warming,” the LCFS is invalid. The court stayed enforcement of the LCFS pending further judicial review.

On January 5, CARB appealed the ruling and followed up Friday with a filing to lift the stay on the potential program.  Last night, Judge O’Neill rejected that petition.

A copy of yesterday’s amended decision can be found here.

A copy of the court’s original decision can be found here.

Consumer Energy Alliance Welcomes Missourians for a Balanced Energy Future

Consumer Energy Alliance Welcomes Missourians for a Balanced Energy Future

HOUSTON, TX– Consumer Energy Alliance (CEA) is pleased to welcome Missourians for a Balanced Energy Future (MBEF) as its newest affiliate member.

Missourians for a Balanced Energy Future (MBEF) is a nonprofit, nonpartisan organization comprised of small and large businesses, chambers of commerce, labor organizations, farmers associations, trade groups and Missouri citizens who understand that securing Missouri’s affordable, reliable energy sources for tomorrow means making common sense decisions today. MBEF calls on Missouri legislators and state leaders to educate Missourians about energy issues and enact legislation that promotes more balanced and sustainable energy solutions while providing accountability and regulatory oversight in the interest of Missouri consumers. To learn more about MBEF, please visit their website.

Missourians for a Balanced Energy Future is proud to announce its partnership with CEA. “Missourians have a unique opportunity to stand on the front lines of our nation’s battle for forging a balanced energy policy that embraces the innovative work-ethic that Missourians possess,” said Iri Scissors, Executive Director of MBEF. “It is imperative that we have an all-of-the-above approach to our energy policy in order to create family-supporting jobs and stop subsidizing antagonistic nations who oppose our freedoms and democracy.”

“Consumer Energy Alliance is very pleased to have MBEF as a partner in the national energy debate,” said CEA Midwest Director Ryan Scott. “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 voice for Missourians, MBEF has shown it is a vital part of the energy policy dialogue in Missouri and we look forward to working closely with them to address the key energy and environmental issues facing both Missouri and the nation as a whole.”

CEA Responds to CARB’s Filing to Lift Stay on Low Carbon Fuel Standard in California, Defends Constitution.

CEA Responds to CARB’s Filing to Lift Stay on Low Carbon Fuel Standard in California, Defends Constitution

WASHINGTON, DC – On Friday, the California Air Resources Board (CARB) filed to lift the stay on a low carbon fuel standard (LCFS) in California.  This follows a federal district court finding on December 29th that found an LCFS in California to be unconstitutional.  Specifically the court found that “LCFS discriminates against out-of-state and foreign crude oil while giving an economic advantage to in-state crude oil.” It also found that “the LCFS discriminates against out-of-state corn ethanol and impermissibly controls extraterritorial conduct.” Because the state had failed “to establish that no alternative means exist to address their legitimate concerns of combating global warming,” the LCFS is invalid. The court stayed enforcement of the LCFS pending further judicial review.

On January 5, CARB appealed the ruling and followed up today with a filing to lift the stay on the potential program.

In response to the development, Consumer Energy Alliance (CEA) Executive Vice President Michael Whatley declared:

“CARB’s decision isn’t surprising to us.  They have attempted to subvert the intent of the Constitution at every turn and the courts agree.  No matter whether the stay is lifted or not we will continue to fight this blatant attack on the commerce clause and the ripple effects that CARB’s misguided Low Carbon Fuel Standard will have on farmers, families, truckers and energy consumers around the U.S.”

A copy of the court’s decision can be found here.

Issue of the week: Natural Gas

The United States continues to see breakthroughs in natural gas: Not only in the multiple shale formations around the country, that are producing volumes of fuel large enough to transform the nationwide energy outlook, but also in Washington, where the White House recently issued a report outlining the multiple economic and environmental benefits of natural gas.

“The surge in domestic natural gas production can lower energy costs, reduce pollution and drive investment,” the new report states.

Those of us advocating for energy policies that work for working Americans have long known about the natural gas boom, and we have appreciated its significance. But because so much of our energy security depends not just on the resources in the ground but on the policies out of Washington, we celebrate this public recognition of this important natural resource.

The White House report, Investing in America: Building an Economy that Lasts, was written to outline the best strategies for accelerating job growth and rebuilding an economy based on “investment, production and innovation.” It cites natural gas several times in its 14 pages, noting the dramatic change over the past decade that has turned the United States from a country building facilities to aggressively increase its natural gas imports, to one that has enjoyed a 24% increase in domestic natural gas extraction since 2006.

More important, the report connects the dots, showing what this massive increase in production of affordable, domestic natural gas means to the economy and the employment picture. It notes that natural gas supports energy-intensive manufacturing, one of the sectors of the economy hardest hit by the downturn. Affordable fuel makes American industry more competitive.

Today’s natural gas industry contributes $385 billion to the national economy. It supports millions of U.S. jobs directly and indirectly and is adding jobs at a much faster pace than the overall economy. On a microeconomic level, one report finds that the rise in affordable natural gas has returned almost $1,000 a year in disposable income to the typical household.

And, while the White House report makes reference to some of the most productive shale formations like the Marcellus Shale, it arguably does not sufficiently credit shale for the game-changing role it has played in the natural gas industry. As recently as the year 2000, shale accounted for just one percent of natural gas production. Today, it accounts for about 20% of our natural gas and that could grow to 50% by 2035.

With the White House’s recognition that increased natural gas supplies have been a boom to our economic recovery, we urge the Administration and Congress to now support policies that enhance the ability to find and develop shale gas resources. Clean, affordable, and plentiful supplies exist right here in the United States. But, what we need now are clear, thoughtful policies that support the long-term development of these vital energy resources.

CEA ‘Extremely Disappointed’ With Keystone XL Decision

CEA ‘Extremely Disappointed’ With Keystone XL Decision
Pipeline could create thousands of immediate jobs

WASHINGTON, DC – Today the Obama Administration will announce that it is not going to approve the Keystone XL pipeline, a project that has the potential to create 20,000 immediate jobs and deliver 700,000 barrels of oil per day to U.S. markets. The pipeline has been under consideration by the State Department since 2008.

In response, Consumer Energy Alliance (CEA) Executive Vice President Michael Whatley issued the following statement:

“CEA is extremely disappointed with the Administration’s announcement. It is mystifying that they would make this announcement less than 24 hours after the President’s own Council on Jobs and Competitiveness specifically called for growth in the energy sector to increase job creation. With gasoline prices at record annual highs and Iran threatening the Straits of Hormuz, there is simply no excuse for the Administration not to move forward with this project now.”

Last fall, CEA delivered more than 450,000 public comments from across the country supporting construction of Keystone XL.

CEA to Co-host 2012 Colorado Election Energy Summit

CEA to Co-host  2012 Colorado Election Energy Summit

HOUSTON, TX: Consumer Energy Alliance (CEA) will co-host the 2012 Colorado Election Energy Summit. The first of its kind event, also sponsored by the Colorado Oil & Gas Association and the Colorado Farm Bureau, will bring together presidential candidates, federal, state and local elected officials to discuss the importance of safe and responsible energy development to the State of Colorado and the United States.

The summit aims to further explore and discuss issues relevant to the oil and gas industry, which supports over nine million jobs nationally. Colorado contains 40,000 active oil and gas wells and consistently remains one of the larger domestic sources of energy, providing hundreds of thousands jobs and 6% of Colorado’s job market. This event will provide an in-depth discussion of the nation, and Colorado’s, energy portfolio and its importance to continued economic development, growth and prosperity.

WHAT:             Colorado Election Energy Summit

WHO:              Invited participants include: Republican candidates Governor Mitt Romney (R), Speaker of the House Newt Gingrich (R-GA), U.S. Representative Ron Paul (R-TX),and Senator Rick Santorum (R-PA), the Honorable Ken Salazar, Secretary of the Department of Interior, Senator Mark Udall (D-Colo.), and U.S. Representative Cory Gardner (R-Colo.).

WHERE:           Colorado School of Mines
1500 Illinois Street
Golden, CO 80401

WHEN:             February 6 2012, 1:00pm- 5:00pm MST

RSVP:              Andrew Browning, (312)768-4736, ABrowning@hbwresources.com

Issue of the week: Eagle Ford Shale

There was a bit of unusual news in the oil sector this week when a major Tokyo company paid $1.3 billion for a 35% stake in Hunt Oil Company’s holdings in the Texas shale formation, Eagle Ford, and said it planned to drill several hundred wells on the site over the next five to ten years.

People often think of the state of Texas when you bring up the topic of oil and gas. But they don’t think as often about shale, which only in recent years has emerged as one of the most promising new sources of fuel. And, they’re even less likely to think of foreign investors. Yet, here we have foreign investors betting on southeast Texas as the next big thing in the energy world. The fact that the Eagle Ford Shale is generating so much worldwide interest is a strong testament to the ability of the American oil and gas industry to evolve. It also shows how we have, right here within our borders, a resource that is a potential game changer in geopolitics.

The Eagle Ford Shale in Texas is one of several shale formations around the U.S. that have been identified as major sources of oil and gas. Like Eagle Ford, several of these formations have recently generated international investor interest from China to France. Last year, overseas offers for U.S. oil and gas topped $51 billion. The oil and gas reserves of Eagle Ford alone are estimated at three billion barrels with potential output of 420,000 barrels per day, an amount that could make a meaningful reduction in the quantity of oil we import.

When we make the most of our natural resources like Eagle Ford, we can also make a meaningful difference in the amount we all pay for fuel, not just at the pump but in our homes, and in all the food and consumer goods whose prices are influenced by fuel costs. At a time when just the threat of a blockage of the Strait of Hormuz in Iran is rattling world oil prices, it is difficult to overemphasize the value of our own fuel reserves, not only in ensuring steady supply, but in helping to stabilize prices.

And like many of the shale formations around the country where development has recently commenced, the Eagle Ford shale also offers potential as a powerful economic engine. Now in its infancy, it already supports more than 12,000 full-time jobs and generates about $60 million in revenues for the state of Texas. If development continues to accelerate, it could support the construction of pipelines in the region, leading to more jobs and more revenue.

The Eagle Ford, along with a handful of other U.S. shale plays, could revolutionize domestic energy production, revitalize our economy, and shield us from the geopolitical volatility beyond our borders.  This could truly be a game changer.

 

January 2012 Newsletter

January 2012 CEA Newsletter
Issue 58


Off to the races

It feels hard to believe from the cozy comfort of our living rooms, where many of us still have Christmas trees standing or other reminders of the holiday season. But the Iowa Caucus – an event that will set off the start of a long and contentious primary election season – is now just days away.

As a Presidential election year, the year 2012 is also certain to be a pivotal year for energy policy. The goal for those of us at CEA and all our supporters will be to remind the candidates, the media, and most of all, the voters, that energy policy is economic policy.  In an atmosphere where sound bites are repeated more often than depth is pursued, it is indeed a challenge to make the point that “the economy” is not just an abstract concept, but a direct reflection of the policies we pursue and the jobs we create. The simple fact is that when we undertake large domestic energy production projects, we create jobs and when we drag our feet approving these projects, all of us suffer from higher unemployment and more volatile energy policies.

For these reasons, it’s important that we approach the 2012 Presidential election as an opportunity to make the case for the issues we support every year, including increased development of all our energy resources from wind and solar to oil and gas to nuclear power – which will bolster our domestic energy supply and create the sort of large infrastructure projects that support well-paying jobs. The year 2011 was a year that showed some tentative progress with a return to lease sales in the Gulf of Mexico and conditional approval of some exploration projects in Alaska. In the coming year, it will be important to see follow through, in the form of continued support for environmentally-safe exploration and production in Alaska and the Gulf of Mexico, the creation of more infrastructure to support the transmission of renewable power, and increased support for hydraulic fracturing, which is helping us tap into a large supply of fuel that was long considered inaccessible. We also enter 2012 with the fate of the proposed Keystone Pipeline still uncertain, even though this major infrastructure project would clearly stimulate job growth and improve our domestic energy security.

It is not a stretch to see how all of these economic and energy policies touch our lives over the holidays – from the lights with which we adorn our homes, to the warm shelter we seek inside, the travel we undertake to see loved ones, and the hard-earned money we spend on gifts. Of course, shining lights and road travel must continue after we put another holiday season behind us. Energy is not a luxury, but a necessity to everyday life. That is why we must hit the new year running, with a full recognition for what is at stake in the election season.

David Holt

 

Tell the Obama Administration That We Need Jobs and Thoughtful Access to Offshore Resources

The future of our nation’s energy and economic security depends on thoughtful, consistent policies that utilize our domestic resources to spur economic growth.  Now, the Obama Administration has released its plan for offshore leasing for the next five years, 2012-2017.  Although the proposed plan does permit for lease sales in areas that are currently under development, the plan falls short of opening access to new areas including offshore Virginia. Denying access to new areas is a significant blow to our energy security, but even more troubling are the ways this plan – and other actions by the Administration – are discouraging offshore development.

We will still rely on oil and natural gas for transportation, electricity, manufacturing, consumer goods and several other uses that are part of our everyday lives. Even more, our economy depends on the millions of jobs and billions in revenues offshore production generates. As the economy recovers, let’s make sure we have policies in place that support long-term economic growth.

Take Action Now!

 

Looking Forward to Energy Day 2012

Now that the inaugural Energy Day festival has come and gone, it is time we look forward to the future and Energy Day 2012. Energy Day 2012 will take place at Hermann Square, City Hall in Downtown Houston, Texas on Saturday, October 20, 2012. The festival will once again feature  live music, food, contests and most importantly interactive exhibits and demonstrations showcasing all forms of energy from oil and natural gas to solar and hydropower and everything in between, as well as efficiency and conservation.

CEA will also continue working with our Academic Partners to engage students in energy education through the Energy Day Academic Program (EDAP).  EDAP was created to reward students who strive for greatness in energy-related academic competitions that run throughout the school year.   Those who win at an Energy Day Academic Program event will be awarded for their excellence and commitment to energy and education.  The 2012 Energy Day Academic Program consists of the following competitions:

February 18, 2012: The HoustonWorks USA & Schlumberger E2 Engineering Excellence Competition

March 1-3, 2012: The Science and Engineering Fair of Houston

March 31, 2012: The CSTEM Challenge

May 2012: Houston: Energy City of the Future 2050 Competition

May 19, 2012: The Children’s Museum of Houston Young Inventors’ Showcase on

Spring 2012: The HGS/HMNS/CEA Art, Essay & Media Contests

For more information on Energy Day 2012 or the 2012 EDAP events, please contact Kathleen Koehler at KKoehler@consumerenergyalliance.org.

CEA In the News

CEA finished 2012 with a strong presence in the media.  Throughout the month of December CEA received media hits from all forms of media including radio, TV, blogs, news articles, press releases and more.  The topics with significant contributions to this success are the Keystone XL Debate and the efforts of the newly formed CEA-Pennsylvania.

A few of the highlights of CEA’s recent media success:

  • Keystone XL
    • This blog details how indecision has cost this country jobs.
    • Read here how Keystone XL is being turned into an election issue.
    • CEA helped place this piece which discusses the heated debate on Keystone XL.
    • Instapundit shows its support for the construction of the Keystone XL Pipeline by discussing current fuel prices.
    • CEA Pennsylvania
      • CEA-PA Director Mike Mikus wrote this LTE in the Mt. Airy Patch.  The letter addresses the benefits of developing the Marcellus Shale.
      • CEA-PA was interviewed by WHCU in Ithaca, NY.  Hear the interview here.

That is just a small sampling of CEA’s public presence in the media over the past 30 days.  If you have any questions, please feel free to contact Craig Koshkin at CKoshkin@consumerenergyalliance.org.

Upcoming Events

HoustonWorks USA & Schlumberger E2 Engineering Excellence Competition

February 18, 2012

Rice University, Houston, Texas

The Fourth Annual E2 Engineering Excellence Competition sponsored by HoustonWorks USA and Schlumberger invites students from elementary, middle, and high schools to compete during this city-wide event. The competition is open to public, private, charter, and home school students who have an interest in science, technology, engineering, and mathematics (STEM).

This competition provides students with a STEM foundation to successfully compete with their peers, and it encourages them to create and explore a vision of future technology by combining their imaginations with the tools of science. It also provides students an opportunity that requires them to use skills such as problem-solving, research and presentation skills, practical math, science applications, and computer skills.

For information on entering or questions, please contact Francheska Williams at 713.654.1919 Ext. 1212 or STEM@Houstonworks.org.

Winning students will be recognized at the E2 Engineering Excellence Competition Awards Ceremony, will receive awards at Energy Day, and will be invited to display their projects at Energy Day on October 20, 2012.

Economic Opportunity and Energy Security, Not False Choices

Economic Opportunity and Energy Security, Not False Choices
By Michael Whatley

Last week the newly appointed head of the Sierra Club, Michael Brune, penned a scathing opinion piece that claimed the Keystone XL pipeline would “cost the American people far more than we can afford.” To paraphrase an old saw, the author is entitled to his opinion, but he is not entitled to his own facts.

Indeed, the final environmental impact statement (EIS) issued by the State Department, which worked in conjunction with multiple federal agencies and leading environmental consultants over a two and a half year period, concluded that Keystone XL will be the safest pipeline ever constructed in the United States. The project must comply with more than fifty special requirements, rules, and regulations designed to ensure the project will be safer than the 175,000 miles of oil and gas pipelines that currently criss-cross the entire United States, including portions of the Ogallala Aquifer.

Keystone XL opponents also argue that development of Canada’s oil sands will increase air pollution and intensify “climate disruption,” but blocking the pipeline won’t stop development of the oil sands, as Canada’s Prime Minister has made abundantly clear. Instead, it will only guarantee that the United States misses out on enormous economic benefits. Moreover, a study from Barr Engineering shows that not building Keystone XL would actually be worse for the environment, as it would create the need for more ocean tankers (pipelines are a much safer method of transporting oil than tankers) and, in turn, increase global greenhouse gas emissions.

Even President Obama’s own Secretary of Energy Steven Chu agrees that Canadian oil is a vital source of energy, noting also that companies active in the oil sands are making “great strides” in terms of reducing environmental impacts.

Brune also questions the idea that construction of the pipeline will benefit our national security, despite the fact that each barrel we import from Canada is one less barrel we import from unstable regimes overseas. General Jim Jones, President Obama’s former National Security Advisor and someone who is actually an expert on international relations, also strongly disagrees with Brune. Jones had this to say about the project:

 

“I feel strongly approving the project [Keystone XL] serves the economic and security interests of the United States…Every day it becomes more evident for our nation to achieve true energy security we must engage our stable and reliable neighbors — Canada in particular. The country can’t afford to pass up the opportunity for reliable supply from a close ally and neighbor…”

 

Anti-pipeline arguments like those advanced by Brune suggest the oil flowing through Keystone XL will be shipped overseas. But America imports approximately 11 million barrels of crude oil per day. The 700,000 barrels of oil per day that will flow through Keystone XL is significant in terms of energy security, but it won’t change the reality that America will continue to need affordable and reliable sources of oil.

Construction of Keystone XL will have tremendous impacts on our national economy at a time when we need them most.  Opponents try to trivialize the type of employment provided by the pipeline, but hardworking men and women across the country understand that criticizing certain lines of work while millions of Americans remain out of work – opponents frequently mock the “temporary” construction jobs to be created – is simply the wrong position.

With 20 million Americans unemployed or underemployed, the 20,000 immediate manufacturing and construction jobs this $7 billion private sector project will create are needed more than ever. That is why organizations like the AFL-CIO and the Teamsters – folks who have experience building pipelines and other infrastructure – strongly support the pipeline. Keystone XL will also provide $5.2 billion in tax revenue to the corridor states, which will allow local governments the ability to fill budget gaps without raising taxes.
Opposition to Keystone XL has been spearheaded by organizations that regularly place opposition to affordable energy production among their highest goals. These groups, which include the Sierra Club, believe that we must stop the production of oil and gas to move forward with an aggressive renewables program.

It is true that America should pursue a policy that diversifies our energy resources through the development not only of oil and gas, but also alternative energy sources and energy efficiency technologies. But it is also true that renewables and alternatives won’t be able to make a meaningful difference to U.S. energy demand for decades.

Brune callously suggests, against all evidence, that Keystone XL advocates “aren’t really concerned about what’s best for the U.S.” But are we really to believe that the result of blocking Keystone XL – more dependence on OPEC, higher energy prices, and more greenhouse gas emissions – is actually good for American families?

Consumer Energy Alliance Announces New Officers for 2012 Board Elects John Heimlich, Airlines for America, as Chairman

Consumer Energy Alliance Announces New Officers for 2012
Board Elects John Heimlich, Airlines for America, as Chairman

HOUSTON – The Consumer Energy Alliance (CEA) Board of Directors has elected a slate of new officers for 2012 with John Heimlich, Vice President and Chief Economist for Airlines for America,™ leading the organization as Chairman and Jennifer Diggins, Director of Public Affairs for the Nucor Corporation, as Vice Chairwoman.  Mark Pulliam, a Solution Partner with Sabre Airline Solutions, will continue to serve on the Board as Treasurer.

“CEA and the Board of Directors are all very pleased to have such a distinguished and enthusiastic group of officers for 2012,” said CEA President David Holt. “As CEA confronts a host of challenges facing energy consumers, we will need the dedication and expertise that Mr. Heimlich, Ms. Diggins and Mr. Pulliam demonstrate to lead our organization and further the goal of a balanced energy policy for America.”

Mr. Heimlich added, “America’s airlines depend on secure, affordable supplies of energy to fuel our business and grow the broader economy. To remain competitive and serve our customers, the airline industry must have access to stable energy sources now while we continue to explore opportunities for future alternative fuels. Consumer Energy Alliance plays a pivotal role in advocating for energy consumers, and I look forward to helping CEA promote a thoughtful, balanced ‘all-of-the-above’ energy policy.”

“Energy is the lifeblood of the steel industry.  In an ever-increasing global marketplace, the price of energy is key in determining the competitiveness of manufacturing both at home and abroad.  We are committed to the CEA mission of accessing our natural resources and supporting an energy policy that does not pick winners and losers,” said Ms. Diggins.

Mr. Heimlich, who has served as an advisor and director to CEA since 2009, has extensive experience in the airline industry, having joined Airlines for America in April 2001 after five years at United Airlines.  Throughout his tenure at these organizations, Mr. Heimlich has received several accolades for his expertise in energy and aviation including being named one of the top 50 persons in bioenergy in 2011. Ms. Diggins, who has also been active with CEA as an advisor and director since 2009, joined the Nucor Corporation in 2011 and gained previous experience in the steel industry as Vice President of Government Relations at the American Iron and Steel Institute.

In addition to these officers, the Board of Directors includes: Dave Blackmon (El Paso Corporation); Troy Bredenkamp (Colorado Farm Bureau); Dave Harbour (former Commissioner, Alaska Regulatory Commission);  Richard Moskowitz (National Petrochemical and Refiners Association); and Wayne Zemke (Caterpillar, Incorporated).  David Holt, President of CEA, serves on the Board in an ex officio capacity.

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