Gov. Herbert Stands Up for Utah Families

WASHINGTON — Yesterday, Utah Governor Gary Herbert announced that his state has stopped working on all efforts to comply with EPA’s carbon regulation. In response, American Energy Alliance President Thomas Pyle issued the following statement:

“By stopping all efforts to comply with EPA’s regulation, Governor Herbert is taking a crucial step toward protecting Utah families from higher energy costs. With the rule on hold, the governor clearly recognizes that it is a waste of time and taxpayer-funded resources to move forward with any efforts to comply.

“States should focus their efforts on promoting affordable and reliable energy for their citizens, not on complying with a legally suspect regulation that will make energy more expensive. We encourage other governors and state leaders to join the growing chorus of opposition to this unlawful regulation by ceasing all efforts to comply.”

AEA recently issued “Stop Work” orders to leaders in every state urging them to cease all efforts to comply with EPA’s unlawful regulation. Find out more about this initiative at www.StopWorkNow.org.

Click here to visit SmartPowerPlan.org and stay up to date on how states are dealing with EPA’s rule.
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ICYMI: States Should Stop Work on Obama’s Carbon Rule

Today, American Energy Alliance President Thomas Pyle published an op-ed at National Review Online explaining why states should cease all efforts to comply with EPA’s carbon regulation. Below is an excerpt from the piece:

national review online logo
“The states should stop work on the EPA’s climate agenda”
By Thomas Pyle
2/25/16

One of Justice Antonin Scalia’s last official acts may be among the most important of his distinguished career. Last week, he joined with four other justices to halt implementation of President Obama’s new carbon regulation for so long as it is under legal review — an unprecedented move to stay an unprecedented federal overreach into states’ energy decisions.

Titled by the administration the “Clean Power Plan,” the regulation would be one of the costliest ever, dramatically increasing electricity prices across the nation — all while producing essentially zero climate benefits, according to the Environmental Protection Agency’s own models.

Thanks to Justice Scalia and the four other justices who voted with him, Americans won the first battle against this reckless plan. But the fight is far from over. Even though the Supreme Court is not expected to issue a final ruling until at least 2017, the EPA is essentially flouting the stay order and encouraging states to continue developing their plans.

State officials — governors, legislators, regulatory agencies, public-utilities commissions, and utilities themselves — should reject the EPA’s offers of assistance. In fact, they should be issuing stop-work orders to prevent the regulation’s implementation until the courts have completed a full review.

That’s especially necessary with a regulation as harmful and unlawful as this one, which would force a dramatic shift in electricity generation over a period of just 15 years. NERA Economic Consulting predicts compliance costs of up to $39 billion per year during the regulation’s implementation. Most of this burden would fall on families through higher electricity bills and higher prices on the products they use each and every day. In fact, NERA estimates the regulation would hike energy bills in each of the 47 states subject to the regulation. Annual electricity price increases would reach as high as double digits across 41 states, with residents of 28 states facing yearly cost increases greater than 20 percent.

Thanks to the Supreme Court’s stay, however, states can halt developing implementation plans at no risk to taxpayers. As EPA Administrator Gina McCarthy testified to Congress after the Court issued its stay, “Nothing is going to be implemented while the stay is in place.” In the unlikely event the regulation is eventually upheld, legal experts believe any new compliance deadline before mid-2018 would be extremely unlikely.

Click here to continue reading.

AEA recently issued “Stop Work” orders to leaders in every state urging them to cease all efforts to comply with EPA’s unlawful regulation. Learn more about this initiative at www.StopWorkNow.org.

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Why Oil Prices Are Low in One Chart

With all the discussion in the media about OPEC, about the Saudis and the Russians, and about the relationship between oil prices and the stock market, there seems to be no discussion about the elephant in the room. The real reason we have low oil prices today is because since 2008, U.S. oil producers – along with some help from Canada – dramatically increased oil production. The U.S. government did nothing to help; in fact, oil production from U.S. federal lands and waters actually decreased since 2010. Private enterprise and free markets, here and in Canada, drove oil production up and oil and gas prices down.

In fact, 97 percent of the total increase in world oil production came from the U.S. and Canada alone.

Increase-in-Oil-Production---U.S.-+-Canada-vs.-Rest-of-WorldAEA

From 2008 through 2014 (the most recent year for which data is available), world oil production increased by 6.686 million barrels per day. 6.491 million barrels per day of that increase came from the U.S. and Canada. In fact, 5.457 million barrels a day, or 82 percent, came from the U.S. alone.

Obviously, supply is just one half of the supply and demand equation that determines the price of oil. Oil consumption has not kept up with the increases in supply, and as a result, prices have dropped. The Energy Information Administration reports that global oil inventories increased by 1.8 million barrels per day in 2015 after also increasing in 2014. Greater supply than demand equals cheaper oil.

The problem today for U.S. and Canadian oil producers is that they’ve done too good of a job of producing oil. In fact, thanks to technological advancements in hydraulic fracturing, subsurface imaging, and horizontal drilling, 95 percent of oil producers can now extract oil at $15 a barrel.

Oil prices in the low $30 range are great for American motorists, who benefit from low gasoline prices. Unfortunately, low prices can be tough for oil producers, especially smaller independent companies, who may be forced to lay off workers and delay planned investments for future oil developments.

The good news out of all of this market turmoil is that Americans have proven that we can drill our way to cheaper prices for consumers – something President Obama said we couldn’t do – and that we have a lot more energy wealth than our own government would admit. The only thing that can go wrong is if the government makes it harder to produce energy, or tries to increase taxes on the energy producers and consumers that drive our economy forward.

Coalition to Congress: Reject a Carbon Tax

WASHINGTON — Today the American Energy Alliance and over 20 free-market and conservative groups sent a letter to Majority Whip Steve Scalise in support of his resolution opposing a carbon tax. As the budget and appropriations process gets underway, Congress should reject efforts that would impose a carbon tax on American families, including President Obama’s recent proposal to levy a $10.25 per barrel carbon tax on oil. Below is an excerpt from the letter:

We write to collectively voice our support for House Concurrent Resolution 89, expressing the sense of Congress that a carbon tax would be detrimental to the United States economy.

As organizations that support free markets as a fundamental pathway to American prosperity, we oppose government policies – such as a carbon tax–that punish some and reward others in accordance with the government’s prevailing viewpoint on market ideals. Such marketplace manipulation represents a recipe for unintended consequences and self-inflicted economic damage. Too often, poor and middle class families bear the burden.

Indeed, independent studies demonstrate that a carbon tax would impose considerable harm on Americans. Such a tax will lead directly to higher electricity and transportation fuel costs for American families and businesses. This, in turn, will inexorably lead to increased costs for consumer goods across the board. Furthermore, a carbon tax would be regressive, imposing disproportionately high costs on middle- and lower-income families and thereby harming most those who can afford it least.

The Congressional Budget Office (CBO), in its 2013 assessment titled “Effects of a Carbon Tax on the Economy and the Environment,” plainly states: “A carbon tax would increase the prices of fossil fuels in direct proportion to their carbon content. Higher fuel prices, in turn, would raise production costs and ultimately drive up prices for goods and services throughout the economy.” 

Click here to read the full coalition letter.

Click here to read AEA’s 10 Reasons to Oppose a Carbon Tax.

Sorry, Mr. President: Turns Out We Can Drill Our Way to Lower Gas Prices

Four years ago today, President Obama proclaimed, “we can’t just drill our way to lower gas prices.” Once again, President Obama is on the wrong side of history. In 2012, gasoline was $3.72 per gallon. Today, it is $1.73 a gallon.

 

What’s changed is a massive increase in world oil production—almost all of which came from the United States. The chart below shows the increase in total world oil production in red and the increase in oil production from the U.S. Nearly 82 percent of the total increase came from the U.S. alone.

Screen Shot 2016-02-23 at 9.58.58 AM

Source: EIA, International Energy Statistics, Total Oil Supply,
https://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=5&pid=53&aid=1

increase in us oil production vs canada

Since the president made his claim, U.S. monthly oil production has increased by 52 percent. The price of a barrel of oil has fallen by over 70 percent since June 2014. And thanks in large part to technological advancements in hydraulic fracturing, subsurface imaging, and horizontal drilling, 95 percent of oil producers can extract crude oil for under $15 a barrel; a 30 percent increase since June of 2014.

The benefits of these innovations have rippled throughout the economy. Gas prices have dropped by more than 50 percent since February 2012, putting more money in Americans’ pockets. That means many low-income households, who spend a larger portion of their incomes on energy than wealthier households, may no longer have to choose between essentials like food, heating, and electric bills.

And as a recent study from the Institute for Energy Research shows, Americans would have even more money to save and spend if the Obama administration stopped holding our resources under lock and key. According to the study, opening federal lands to energy production would increase annual GDP by $127 billion, create 552,000 jobs a year, and raise annual wages by $32 billion over the next seven years. It’s the best economic stimulus the American people could ask for.

But instead, President Obama recently proposed a $10 tax on oil, which will raise gas prices by 24 cents a gallon. The oil tax sums up the president’s energy policy, which has consistently ignored the benefits of promoting affordable, reliable energy production—and endeavored to shut it down.

Much has changed in the last four years, as American energy producers have consistently innovated and reduced costs for families and motorists. In spite of President Obama’s previous claims and restrictive policies, increased energy production has provided hard-working Americans with lower gas prices. Imagine what we could do if the next administration simply let Americans get back to work?

Gov. Pence Stands Up for Indiana Families

Governor Confirms that Indiana Will Not Begin Work on EPA Carbon Rule

WASHINGTON — In a recent interview, Indiana Governor Mike Pence confirmed that Indiana would remain steadfast in their opposition to EPA’s carbon regulation following the Supreme Court’s stay of the rule.

American Energy Alliance President Thomas Pyle issued the following statement:

“Governor Pence’s decision is a great sign for Indiana families and businesses. The governor recognizes there is no reason for his state to waste precious time and resources on an increasingly legally dubious regulation, especially one that would increase electricity rates for his citizens. Even EPA Administrator Gina McCarthy acknowledged that nothing is going be implemented while the stay is in place.

“We encourage other governors and state leaders to follow the lead of Governor Pence, as well as Governor Walker of Wisconsin, and protect their citizens by ceasing all efforts to comply with EPA’s regulation.”

AEA recently issued “Stop Work” orders to leaders in every state urging them to cease all efforts to comply with EPA’s unlawful regulation. Find out more about this initiative at www.StopWorkNow.org.

Click here to visit SmartPowerPlan.org and stay up to date on how states are dealing with EPA’s rule.

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Why the Colorado Coal miners need you

In March of last year, I had the privilege of traveling to northwest Colorado to film AEA’s “Eye of the Storm” video which chronicled the threats radical environment activists were making against the communities of Craig and Meeker. Thankfully, with your help, we were able to convince the federal government that the Colowyo mine should stay open. Unfortunately, the mine and these communities are under threat yet again.

While in Craig and Meeker, Colorado, I was blown away by the people that I met. Every person knew just how important energy is to their community. From the mayor to the hotel concierge, every single person I spoke with had a personal story about how the energy their community produces and responsibly utilizes makes their lives better. And as many miners pointed out to me, their work provides affordable, reliable energy to the entire region.

Father and son, who work together at Colowyo

Father and son, who work together at Colowyo

Visiting the Colowyo mine was a surreal experience. At first, you drive up a winding dirt road through checkpoints, until you finally reach the mining area. Colowyo is a surface mine situated between the towns of Craig and Meeker. Cresting the ridge and looking down on the pit, you see these bright yellow trucks scurrying around with dirt and coal, but from that distance you can’t tell how massive they are. Realizing the immense scale of this project and the work these men and women do every day is profound—and in a way, beautiful.

One real surprise to me is that soon after stepping out of the truck at the mine, I noticed wildlife. You do not expect to visit a mine and see elk, antelope, deer, and even an owl, but I saw all four within the first hour of our time there. The staff pointed with pride to the areas that had been previously been mined, but were now restored and how well the land and wildlife were thriving.

After an area is mined, the company is obligated to return the land to “reclaim” the land which means to restore it to its prior state. This can take decades of care. The workers proudly pointed out previously reclaimed land, showing us areas where deer routinely bed down to sleep and eat. Nearly every miner was also an avid outdoorsman, enthralled with hunting and fishing, which the area offers in abundance. Clearly, responsible resource management was important to this talented crew.

Unfortunately, the mine and the wonderful communities it supports are now at risk. The federal government owns this land and President Obama has imposed a moratorium on new coal leasing. At the same time, EPA is trying to impose their “power plan” to reduce the use of coal to generate electricity, which would inevitably drive up electricity rates across the country. The president’s attacks on energy production, if they succeed, will devastate rural communities and threaten the continued operation of the Colowyo mine.

Right now the Office of Surface Mining Reclamation and Enforcement (OSMRE) is taking citizen comments on the Colowyo coal mine’s continued operations. They are considering whether the miners should be allowed to finish their planned work, or if the project should be ended early. Any shutdown would result in the immediate loss of more than 220 jobs and more than $200 million in economic activity in the community. Thankfully, the OSMRE wants to hear what you think about this project.

Downtown Craig, CO

Downtown Craig, CO

You can help support this wonderful community and the energy they provide by sending an official comment to Obama’s Office of Surface Mining Reclamation and Enforcement (OSMRE). It’s important that the OSMRE hears that citizens support energy production and the responsible use of federal resources. We’ve made it easy to send a comment in: simply use this tool and send your official comment today. Together, we can send a message to the Obama Administration and help communities like Craig and Meeker across the country.

STOP WORK: States Should Cease All Efforts to Comply w/ Carbon Rule

WASHINGTON — In response to the Supreme Court’s stay of the EPA’s carbon rule, or “Clean Power Plan,” AEA is mailing “Stop Work” orders to all Governors and other state officials urging them to immediately cease all efforts to comply with the rule.Stop-Work-Web-Gen-brdr

Any action to comply with the rule before full legal resolution would be imprudent and a disservice to ratepayers. Speaking to a Congressional committee, EPA Administrator Gina McCarthy said, “Nothing is going to be implemented while the stay is in place. It is clearly on hold until it resolves itself through the courts.”

Thus, we’re delivering these orders to GovernorsState Environment DepartmentsPublic Utility Commissions, and State lawmakers.

States cannot be punished for waiting, since under the stay the compliance timeline no longer applies. With the stay in place and the future of the rule in jeopardy, there is no reason for states to move forward until litigation concludes.

AEA President Thomas Pyle issued the following statement:

“The Supreme Court rightly put the brakes on President Obama’s harmful climate agenda when it stayed EPA’s carbon regulation. But the fight doesn’t stop there. We are urging state leaders, including governors, public utility commissioners, legislators, and environmental agencies to put down their pencils and cease all efforts towards complying with the carbon regulation until the legal challenges have fully run their course.

“This ‘Stop Work’ approach is the best way for state leaders to protect their citizens from the higher energy costs and job losses that this unlawful regulation would undoubtedly cause. As a country, we should focus on ways to make electricity more affordable, not on implementing regulations that will raise energy costs, which hit the poor and middle class the hardest.”

You can visit www.StopWorkNow.org to find out more. 

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On EPA Rule, SCOTUS Stands Up For The Little Guy

WASHINGTON – American Energy Alliance President Thomas Pyle issued the following statement on the Supreme Court’s decision to issue a stay on the Obama administration’s carbon rule:

“This is a significant victory for the American people and a strong rebuke of the Obama administration’s heavy-handed regulatory agenda. The Supreme Court should be applauded for standing up for American families after the D.C. Circuit failed to do so.

“The Supreme Court’s decision sends a clear signal to state leaders that they must avoid making any binding commitments until the legal process plays out, especially because EPA’s regulations are looking increasingly legally dubious. States should continue to pursue actions, such as legislation, to stop utilities from continuing their trend of shutting down low-cost, reliable power plants. A ‘do no harm’ approach, meaning avoiding binding commitments, is the best way to protect the American people from higher electricity costs. Now more than ever, states should follow this ‘do no harm’ approach.

“It is far too rare for the courts or Congress to back the little guy against red tape from Washington bureaucrats. Fortunately, that’s exactly what happened today.”

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Key Vote: Senate Energy Bill Amendments

The Senate is poised to consider broad energy legislation, the first of its kind since 2007. S.2012, the Energy Policy Modernization Act, seeks to address various facets of energy policy, from efficiency standards to power supply and the electric grid. Overall, this bill fails to shepard in significant energy policy reform and instead increases regulation and spending in an effort to fix perceived problemssimilar to the 2005 and 2007 energy bills. In reality, few energy issues are improved through additional federal regulation and subsidies. Instead, legislation should be focused on limiting the scope of the federal government and promoting American energy prosperity.

Several amendments to this bill are worth highlighting. The American Energy Alliance will key vote these amendments, should they receive a vote on the Senate floor.

YES on Cassidy Amendment Repealing the Renewable Fuel Standard (RFS): Sen. Cassidy introduced an amendment that would fully repeal the Renewable Fuel Standard. The RFS was created in the 2005 energy bill and amended by the 2007 energy bill. This costly mandate has hurt American families and businesses for over a decade by driving up fuel prices and requiring expensive, uneconomical, and commercially unavailable “advanced” biofuels to be blended into gasoline by refiners. Sen. Cassidy’s amendment would fully repeal the RFS, thus ending the ethanol and advanced biofuels blending mandates. The American Energy Alliance supports full repeal of the RFS and urges all Senators to vote YES on SA 2977, the Cassidy RFS repeal amendment.

YES on Lee Amendment Blocking Permanent Reauthorization of the Land and Water Conservation Fund (LWCF): Sen. Lee introduced an amendment striking language that would permanently reauthorize the Land and Water Conservation Fund (LWCF). The LWCF is funded through offshore drilling fees and royalties, which then go into an account that is used to finance federal land acquisition and management. However, the federal government is a historically poor steward of our nation’s land. From environmental mismanagement to the stifling of natural resources development, the federal government has proven inept as a caretaker of America’s lands. States, not the federal government, should be in charge of maintaining public lands, as states have more local knowledge and are more invested in maintaining the lands in which they live. While the LWCF was extended for three years in the recent Omnibus bill, Sen. Lee’s amendment striking permanent reauthorization of the LWCF is a step toward holding the federal government in check. The American Energy Alliance urges all Senators to vote YES on SA 3022, Sen. Lee’s LWCF amendment.

NO on Reid-King Amendment on Net Metering: Sens. King and Reid introduced an amendment that would increase energy prices for consumers and trample on the abilities of states and localities to best serve their electricity users. Their amendment, which aims to federalize net metering policy, would limit the ability of state electricity regulators to change net metering policies. State regulators already oversee net metering of distributed energy generation, including rooftop solar, and the regulation of electricity rates has always been the prerogative of state and localities, not the federal government. Further, the amendment would force utilities to increase fees for all customers, not just those who opt to participate in net metering services. This would make net metering even more regressive by levying additional fees on non-net metering customers, who tend to have lower incomes than net metering customers. The King-Reid amendment unnecessarily increases the scope of the federal government and would harm American families, especially the poor and middle class who cannot afford expensive solar systems. The American Energy Alliance urges all Senators to vote NO on SA 3120, the King-Reid net metering amendment.