ICYMI: Give affordable energy a seat at table

American Energy Alliance President Tom Pyle recently penned an op-ed for the Coloradoan titled, “Give affordable energy a seat at table.” The text of the piece follows:

The Coloradoan
Give affordable energy a seat at table
By Thomas Pyle

There’s an old and unfortunate truth about Washington, DC: “If you don’t have a seat at the table, you’re probably on the menu.”

For the past eight years, the Obama administration’s “keep-it-in-the-ground” policies have kept the oil and gas industry “on the menu” and stymied responsible energy development and threatened to make energy more expensive for Colorado families.

Fortunately, much has changed with the election of Donald Trump as the 45th president of the United States. The new administration, along with Republican majorities in the House and Senate, provide a real opportunity to enact pro-growth policies that get Washington out of the way of Colorado’s energy producers.

Unleashing our country’s energy resources was an integral part of President Trump’s economic pitch to the American people, and after just a few weeks in office, it appears he’s following through on that commitment.

For example, one of President Trump’s first actions was reviving the Keystone XL and Dakota Access pipelines — signaling that he is serious about delivering affordable energy to American families, invigorating the economy, and creating more opportunities for future generations. And Congress passed a resolution to repeal an unnecessary Obama-era methane regulation aimed at discouraging oil and gas development on federal lands. This resolution now heads to the president’s desk.

This is likely just the beginning. Opening up more federal lands — including those in Colorado — for energy development, evaluating taxpayer-funded green energy subsidies, and reining in unelected Washington bureaucrats are all on the president’s menu.

This is welcome news to a state like Colorado, where energy production is a critical driver of economic growth. In fact, according to the most recent edition of Resource Rich Colorado, an annual study published by Denver Metro Economic Development Corp, there are 44,370 direct fossil fuels workers supporting an additional 118,020 indirect workers, with an economic impact of $10.3 billion. In 2015, the average annual salary for a fossil fuels worker in Colorado was $106,996. With that level of economic impact, it is critical that there are policies in place that encourage more energy development, not discourage it.

However, while the tenant at 1600 Pennsylvania Avenue has changed, the radical “keep-it-in-the ground” campaign remains.

In recent years, Colorado has become a hotbed for this campaign, which is dedicated to ending the use of our most affordable and reliable energy resources. Last fall, my organization released a report exploring the dangers of this effort and analyzing the ramifications of their agenda. It’s clear that promoting hydraulic fracturing bans, monstrous drilling setbacks, unattainable ozone standards, and ending oil and gas development on federal lands is just the first course.

Some may brush off these protesters on television as mere agitators, but it’s what’s happening behind the scenes that should concern any Coloradan who cares about low-cost energy for their family and jobs that keep the state’s economy moving forward.

The “keep-it-in-the-ground” campaign isn’t a ragtag group of activists, but rather a highly organized, multi-million dollar effort by the national environmental lobby. If successful, this campaign will rob Coloradans of the jobs, opportunities for future generations, and the energy we all need to work and grow the economy.

While the Trump administration’s platform presents an opportunity, change doesn’t come easy. We have the resources, we have the technology, and we have the men and women ready to go to work. All we need are the right policies in place. That’s why it’s critical that Coloradans and all Americans make sure their voices are heard in Washington.

Fortunately, the facts and intellectual ammunition are on our side. The key is to utilize that information to educate administration officials, lawmakers, state leaders, and the American people so they embrace a pro-energy, pro-growth platform with one voice.

Only then can we steer the conversation toward policies that favor affordable energy for Colorado families and ensure that the Centennial State has its place at the table and not on the menu.

Click here to view the original piece.

AEA Congratulates Secretary Perry

WASHINGTON — American Energy Alliance (AEA) President Thomas Pyle issued the following statement after the Senate voted to confirm Governor Rick Perry as the Secretary of Energy:

“AEA congratulates Governor Rick Perry on being confirmed as the next Secretary of Energy. As the longest-serving Governor of Texas, Perry has a proven track record as an effective manager. We are confident that under Secretary Perry’s leadership, the Department of Energy will harness the intellectual power of our national labs, work toward substantive nuclear waste reform, protect and modernize our strategic nuclear arsenal, and remove politics from the science and research functions of the agency.

“In recent years, the agency has overstepped its mission by tipping the scales in favor of certain technologies like wind and solar power. We look forward to Secretary Perry returning the Department of Energy to its core mission and making sure the agency acts in the best interest of the American people.”

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House Science Subcommittee Holds Hearing on the Social Cost of Carbon

This week, the House Science Committee Subcommittee on the Environment held a hearing exploring the social cost of carbon (SCC) and its use in policy-making. The Subcommittee sought to discover what, precisely, carbon dioxide emissions cost the economy. Unsurprisingly, the panel reached a verdict that there was no consensus. The SCC is an arbitrary metric and should not be used in federal rulemaking.

AEA has noted the unscientific, flawed nature of the SCC in the past. The metric fails on three major fronts: incorrect use of discount rates, inaccurate economic modeling, and the improper calculation of costs and benefits as it pertains to Office of Management and Budget (OMB) Guidance. These arguments are summarized here.

Kevin Dayaratna of The Heritage Foundation also notes that the SCC, in its current iteration, fails on another front — the time horizon. The Interagency Working Group that came up with the SCC based their work on three separate models that would calculate how much carbon emissions would theoretically “cost.” As Dr. Dayaratna explained, “It is essentially impossible to forecast technological change decades, let alone centuries, into the future. Regardless, however, these SCC models are based on projections 300 years into the future.”

Making economic assumptions three centuries into the future, and basing public policy off these assumptions, is unwise. In fact, there seemed to be general agreement on the panel that the SCC is improperly calculated. Dr. Ted Gayer of the Brookings Institute highlighted the trend of federal agencies to use the SCC to assess domestic costs while assuming global benefits. As AEA has argued before, this is akin to comparing apples and oranges. It is also in clear violation of OMB Circular A-4, which states that agencies must calculate costs and benefits domestically (they are permitted to separately provide information for global benefits). Dr. Gayer agrees:

I believe that the exclusive focus on a global measure runs counter to standard benefit–cost practice, in which only the benefits within the political jurisdiction bearing the cost of the policy are considered. It also seems at odds with the expressed intent of long-standing executive orders and of authorizing statutes…

Dr. Gayer continues:

By using the global social cost of carbon, the agencies are claiming that their rules—which impose substantial domestic costs—provide benefits that in fact largely accrue to foreign citizens. Of course, many Americans are altruistic and care about the welfare of people beyond our borders. But foreign aid decisions should be made openly, not hidden in an obscure metric used in rulemaking.

Accountability is paramount when it comes to public policy formation. Bureaucrats must be held to a standard that ensures compliance with Congressional and Executive direction, and the data and metrics produced and used should be transparent. It is abundantly clear that the SCC is improper, and its use should be discontinued. As Dr. Patrick Michaels of the Cato Institute alluded to during the hearing, the SCC simply is not ready for the Big Game.

Fortunately, Congress has acted in the past on this issue. Last Congress, several Representatives introduced the Transparency and Honesty in Energy Regulations Act. This bill sought to rein in rulemaking via the SCC (and the similar “social cost of methane”) and force a review of all regulations that use them as justification. This is a great first start to ensuring public policy be made using sound information and data. Congress should look to further explore the SCC and work to prevent its use in federal rulemaking.

With Zinke Finally Confirmed, Let’s Get to Work Unleashing America’s Potential

WASHINGTON – The American Energy Alliance (AEA) congratulates Ryan Zinke on being confirmed as the next Secretary of the Interior. AEA President Thomas Pyle issued the following statement:

“I am confident that Secretary Zinke will follow through on President Trump’s campaign promises to put America’s onshore and offshore energy resources back in the game. We are an energy-rich nation with some of the greatest natural gas, oil, and coal resources in the world—much of which are located on federal lands. In recent years, leaders at the Interior Department have disregarded the multiple-use concept for federal lands and have been outright antagonistic toward oil, gas, and coal leasing. By opening more areas for energy exploration, President Trump and Secretary Zinke have a great opportunity to deliver more jobs, higher wages, and much-needed economic growth to the American people. We look forward to the administration seizing that opportunity.”

Background
“ICYMI: Trump Cites IER Study in Speech on Energy,” by the Institute for Energy Research

“The Economic Effects of Immediately Opening Federal Lands to Oil, Gas, and Coal Leasing,” by Dr. Joseph Mason

“Trump’s Interior Dept. Has Opportunity to Turn Around Dismal Leasing Policies,” by the Institute for Energy Research

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Scott Pruitt Will Be a Champion for the American People and the Environment

WASHINGTON – The American Energy Alliance (AEA) congratulates Scott Pruitt on being confirmed as the next Administrator of the Environmental Protection Agency (EPA). AEA President Thomas Pyle issued the following statement:

“Scott Pruitt will be a true champion for the American people and our environment. Throughout his career, Pruitt has fought to uphold the rule of law and to protect the rights of Oklahoma families and communities. He will do the same for all Americans as EPA Administrator.

“In recent years the EPA has far exceeded its mandate and has used regulations as a cudgel to force states to adopt a political agenda. This agenda has upended whole communities—destroying jobs and subjecting Americans to higher energy costs. That will no longer be the case under Administrator Pruitt, who respects the rights of states and individuals and understands that clean air and water and a robust economy go hand in hand.

“We look forward to Administrator Pruitt advancing policies that grow the economy, protect the environment, and make life better for American families and workers.”

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Key Vote: Pruitt Nomination

Today the Senate is expected to vote on the nomination of Oklahoma Attorney General Scott Pruitt to serve as the next Administrator of the Environmental Protection Agency (EPA). The American Energy Alliance (AEA) urges all Senators to vote YES on Mr. Pruitt’s nomination.

As Oklahoma’s Attorney General, Pruitt has consistently fought to protect Oklahoma families and communities from federal intrusion and has been a stalwart defender of the rule of law. Notably, Mr. Pruitt led a multi-state effort opposing the EPA’s unlawful attempt to take over the nation’s electricity grid under section 111(d) of the Clean Air Act. This regulation would shutter an estimated 40 GW of reliable and affordable energy, unnecessarily harming American families for little to no environmental benefit.

Mr. Pruitt also stood up for states, families, and the Constitution by opposing the Obama Administration’s overreaching “Waters of the United States” regulation. This rule was so invasive that even small ponds and waterways on family farms would have been subject to federal regulation. Mr. Pruitt filed suit against the EPA, refusing to subject Oklahomans and other Americans to this unconstitutional regulation without exhausting all legal pathways.

Mr. Pruitt respects and upholds the Constitution and recognizes that the best way to protect our environment is not through federal diktats, but through a system where the EPA cooperates with states and local communities. As he explained in his confirmation hearing:

“Environmental law, policy, and progress are all based on cooperation: cooperation between the States, cooperation between the States and EPA, and cooperation between the regulators and the public. Such cooperation is essential because clean air and water and a healthy environment are essential to the American way of life and key to our economic success and competitiveness.”

In other words, the federal government is not the end-all, be-all solution. Empowering states to address their own environmental concerns promotes responsiveness, instills accountability, and ensures that the people closest to the issues and with the most local knowledge have the resources they need.

Mr. Pruitt has a stellar record of fighting for families and communities in Oklahoma and upholding the rule of law. As Administrator, he will reset energy and environmental policy in ways that will grow the economy, improve the environment, and make life better for the American people. Senators should vote YES on Scott Pruitt’s nomination to lead the EPA. AEA will include this confirmation vote in its American Energy Scorecard.

Coalition Opposes Carbon Tax; Requests Meeting with White House 

WASHINGTON – Today the American Energy Alliance (AEA) and a coalition of free-market and conservative organizations sent a letter to White House chief economic advisor Gary Cohn to request a meeting with the Administration on the issue of a carbon tax. The signers of the letter include Thomas Pyle of AEA, Grover Norquist of Americans for Tax Reform, Michael Needham of Heritage Action for America, Myron Ebell of the Competitive Enterprise Institute, and Adam Brandon of FreedomWorks. The following is an excerpt from the letter:

We are reaching out to you following the widely publicized meeting you attended on February 8 with members of the “Climate Leadership Council” to discuss their ideas regarding the establishment of a nationwide carbon tax.

Our organizations have significant concerns regarding any prospective carbon tax proposal. Such a policy would place undue economic burdens on American families and businesses by intentionally increasing the cost of the energy they rely on every day. A carbon tax would also be regressive – doing the most harm to our nation’s economically disadvantaged – and would destroy American jobs, particularly in the manufacturing sector.

We are heartened by the fact that President Trump flatly rejected the notion of a carbon tax during his 2016 candidacy for the Republican presidential nomination. We are equally heartened that streamlining our nation’s vastly overgrown and economically destructive regulatory system remains one of the President’s top priorities. This Administration is already taking steps to eliminate harmful regulations such as the so-called “Clean Power Plan,” because doing so will be good for American workers, families, and businesses. Adding a new tax on energy in return would represent an extremely costly step in the wrong direction – one that those workers, families, and businesses cannot afford.

We respectfully request a meeting with you to further discuss our concerns regarding a carbon tax and to provide additional information that may be helpful in your assessment of the issue. Each of our organizations has a unique perspective to offer; together, we represent a nationwide coalition of activists, concerned citizens, and stakeholders who have a vested interest in ensuring the formulation of sound energy and tax policy that will best support, serve, and strengthen our great nation.

Click here to view the full letter.

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Key Vote: Senate BLM Methane CRA

Several weeks ago, the House of Representatives passed a Congressional Review Act (CRA) resolution to repeal the Bureau of Land Management (BLM) regulation for methane venting and flaring. We urge Senators to vote YES on this CRA resolution.

The Congressional Review Act allows for Congress to halt certain regulatory actions. Congress can pass a joint resolution of disapproval for a rule within 60 legislative days of publication and prohibit agencies from enacting any substantially similar rules. The BLM methane rule, which was finalized in December of 2016, is a prime example of costly regulatory excess and is ripe for review under the CRA. According to the American Action Forum, this rule will cost $1.8 billion.

The BLM methane rule would require the oil and gas sector to take unnecessarily costly measures to reduce methane emissions on federal lands by up to 45 percent by 2025. However the rule would reduce global greenhouse gas emissions by a mere 0.0092 percent, making this “all economic pain for no environmental gain” rule the poster child for excessive and unnecessary government regulation.

Furthermore, this regulation ignores the significant strides that the industry is already making. According to the EPA, methane emissions fell by 13 percent from 2011—2014—a time when natural gas production significantly increased. In addition, methane emissions from hydraulic fracturing fell by 81 percent from 2012—2014. We don’t need a federal regulation to force oil and gas producers to control their methane emissions—methane itself is a versatile fuel source and valuable commodity.

The BLM methane rule is an unnecessary regulation that will destroy jobs and make energy more expensive for American families. AEA will score this vote in its American Energy Scorecard. Senators should vote YES on the CRA resolution to repeal the BLM’s methane rule.

AEA Applauds Congress for Passing Stream Rule CRA Resolution

WASHINGTON – The American Energy Alliance (AEA) applauds Congress for passing a Congressional Review Act (CRA) resolution to repeal the previous administration’s costly Stream Protection Rule. AEA President Thomas Pyle issued the following statement:

“We applaud Congress for taking swift action to halt this costly and duplicative regulation. This midnight regulation from the Obama administration was a direct attack on responsible coal production and would have threatened tens of thousands of jobs, while making energy more expensive for American families. This is an important step in resetting years of bad policy and ensuring that Americans continue to benefit from one of our most abundant, affordable, and reliable sources of energy. We look forward to President Trump signing the resolution and officially putting an end to this senseless regulation.”

AEA is including both the Senate and House votes in its American Energy Scorecard.

Click here to read AEA’s key-vote alert.

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EPW Democrats Should Do Their Job

WASHINGTON – American Energy Alliance President Thomas Pyle issued the following statement after Senate Democrats boycotted the Environment and Public Works Committee’s vote on Scott Pruitt’s nomination to lead the EPA:

“The EPW Democrats should stop their political grandstanding and do their job. President Trump should be afforded the same long-honored tradition as previous first-term presidents to quickly assemble his cabinet and execute the policies that he promised and that the American people voted for. Scott Pruitt has proven throughout his career and again during his confirmation hearing that he will be a champion for American families, real environmental improvement, and the rule of law. That’s the sort of leadership that has long been missing at the EPA. Senators should of course vote their conscience, but they should not stand in the way of the will of the American people.”

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