Ohio Energy. America s Energy Future & the New Trump Administration Common Sense Energy Strategies, Policies & Initiatives and What to Expect

Transcription

1 Ohio Energy America s Energy Future & the New Trump Administration Common Sense Energy Strategies, Policies & Initiatives and What to Expect Karen A. Harbert, President & CEO U.S. Chamber of Commerce s Institute for 21st Century Energy, Washington, DC Tuesday, February 21, :55 a.m. to 9:30 a.m.

2 Karen Alderman Harbert President and Chief Executive Officer Institute for 21st Century Energy U.S. Chamber Of Commerce Karen Alderman Harbert is president and chief executive officer of the U.S. Chamber of Commerce s Institute for 21st Century Energy (Institute). Harbert leads the Institute s efforts to build support for meaningful energy action nationally and internationally through policy development, education, and advocacy. Under Harbert s leadership, the Energy Institute has evolved into a premier national and international organization dedicated to advancing a constructive energy agenda with the business community, policymakers, and consumers. Harbert frequently testifies in front of Congress and provides analysis to the media, policymakers, and industry leaders. Harbert led the Energy Institute s development of its comprehensive Energy Works for US platform, which provides policy recommendations to secure our nation s energy future and create millions of jobs, billions of dollars in revenue, and trillions of dollars of private investment. The Institute has attracted grassroots advocates across the nation supporting its efforts to capitalize on America s tremendous energy promise. Under Harbert s leadership, it established the groundbreaking Index of Energy Security Risk and the International Index of Energy Security Risk, the first tools to quantify America s energy security on an annual basis. Harbert is an appointed member of the National Petroleum Council, an industry advisory organization that advises the Secretary of Energy on issues related to the oil and gas industries. Harbert is the former assistant secretary for policy and international affairs at the U.S. Department of Energy (DOE). She was the primary policy adviser to the secretary of energy and to the department on domestic and international energy issues. She negotiated and managed bilateral and multilateral agreements with other countries and also served as vice chairman of the International Energy Agency, which advises its 28 member nations on energy policy issues and orchestrates international responses to energy supply disruptions. Prior to joining the DOE, Harbert was deputy assistant administrator for Latin America and the Caribbean at the U.S. Agency for International Development (USAID). She had oversight of programs in 11 countries, totaling more than $800 million and 1,000 employees. In the private sector, Harbert worked for a developer of international infrastructure and power projects valued at more than $9 billion in countries in the Middle East, Asia, and Latin America. Harbert gained experience on issues associated with economic reform and privatization through earlier positions at the USAID, the Organization of American States, and the International Republican Institute. She received a degree in international policy studies and political science from Rice University in Houston, Texas. Institute for 21st Century Energy 1615 H Street, NW Washington, DC facebook.com/energyinstitute Harbert resides in Washington, D.C., with her husband and two children. The mission of the U.S. Chamber of Commerce s Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels. The U.S. Chamber of Commerce is the world s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. Rev. Oct. 2016

3 Ohio Energy Management Conference Karen A. Harbert

4 Monumental Changes by 2050

5 Global Energy Demand U. S. C h a m b e r o f C o m m e r c e

6 From Scarcity to Abundance 4

7 Future U.S. Energy Demand U.S Energy Demand Increases 9% through 2040

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9 Energy Security Rapidly Increasing Source: Energy Information Administration

10 Energy Independence Soon to be Reality U.S. net oil imports are now at their lowest level since 2005 Net imports represent just 27 percent of U.S. petroleum demand the lowest share since the mid-1980s.

11 Gas Demand Growth: Electricity 2016 is projected to be first year where natural gas is leading source of electricity generation

12 Gas Demand Growth: Manufacturing Beaver, PA Ethane Cracker $6-$7 billion polyethylene / petchem manufacturing facility. 6,000 construction jobs, 600 permanent jobs

13 LNG Exports November 2016: U.S. becomes net exporter of natural gas for first time in 60 years By 2040, LNG exports will exceed 6.7 trillion tcf

14 Energy is 1/3 of all US investment

15 The Regulatory Landscape 13

16 Regulation Nation 79,000 pages of federal regulations in pages of new laws Source: Senator Mike Lee (R-UT)

17 The Decline of Cooperative Federalism Clean Air Act: air pollution prevention at its source is the primary responsibility of States and local governments. Clean Water Act: It is the policy of the Congress to recognize, preserve, and protect the primary responsibilities and rights of States to prevent, reduce, and eliminate pollution.

18 The Decline of Cooperative Federalism As of November 2016, the Obama EPA had Promulgated a record 57 FIPs! State Regulatory Takeovers By Administration Source: Competitive Enterprise Institute

19 What is and What Should Never Be Recently Finalized and Upcoming Regulations Impacting Energy: Stream Protection Rule (Interior) PM 2.5 NAAQS (EPA) NEPA Guidance (White House) Regional Haze (EPA) CO2 Regulations for New Power Plants (NSPS) (EPA) CO2 Regulations for Existing Power Plants (ESPS) (EPA) Cross State Air Pollution Rule (CSAPR) (EPA) Methane Venting/Flaring (BLM) Ozone NAAQS (EPA) Renewable Fuels Standard (EPA) Methane NSPS/ICR (EPA) Coal Lease Moratorium (Interior) Waters of the U.S. (EPA) Well Control Rule (Interior) Offshore Leasing Plan (Interior) ESA Designations (Interior) Nationwide Permits (Army Corps) Monument Designations (POTUS)

20 CPP: Unprecedented Legal Opposition Chamber et al lawsuit includes: National Association of Manufacturers American Fuel and Petrochemical Manufacturers National Federation of Independent Business American Chemistry Council American Coke and Coal Chemicals Institute American Foundry Society American Forest and Paper Association American Iron and Steel Institute American Wood Council Brick Industry Association Electricity Consumers Resource Council Lignite Energy Council National Lime Association National Oilseed Processors Association Portland Cement Association.

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22 Clean Power Plan Looking Ahead President Trump campaigned on repeal Four potential paths: Courts (DC Circuit/SCOTUS) Formal executive withdrawal/rescinsion Light enforcement/interpretation Congressional repeal Regardless of path, CPP planning is likely to end immediately.

23 Waters of the U.S. Permit Expansion Source: Farm Bureau

24 Trump Considerations Personnel is policy Energy/Environment Policy Outlook Early emphasis: Executive Actions (rescind EOs, freeze new regs, enforcement discretion) Congressional Review Act (CSAPR, Methane, Stream Protection Rule) Energy likely to be key aspect of infrastructure, tax reform legislation Comprehensive energy bill? Clean Air Act and Clean Water Act reforms? Litigation strategy

25 Can Trump Help Coal Country? CPP Repeal Projected to Hold Production Flat

26 What About Paris? Since 2005, U.S. emissions have fallen by 13 percent while China s have grown by 69 percent and India s by 53 percent. Globally there are 510 coal-fired power plant units under construction, with a further 1,874 planned, a total of 2,384 (including 765 in China). India has announced that it plans to double coal production by Russia has committed to increas emissions up to 40% President-elect Trump has promised to cancel Paris. Mechanism/priority remains unclear

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28 Anti-Energy Environmentalism Evolves and Goes Mainstream 26

29 Economic Growth + Environmental Progress Source: EPA

30 The New Environmentalism 1970s 2000s: pursue safer and cleaner fossil fuel use that is achievable at a reasonable cost. Today: Eliminate fossil fuels entirely. AEP/SWEPCO Turk Plant: 1 st Ultra Supercritical plant in the country is now illegal to build and operate because of CO2 regulations.

31 Keep It In The Ground Goes Mainstream 2012 This country needs an all-out, all-of-the-above strategy that develops every available source of American energy. President Obama, January "By the time we get through all of my conditions, I do not think there will be many places in America where fracking will continue to take place. Hillary Clinton, March 2016

32 Keep It In The Ground Intensifies No Mining No Fracking No Power Plants No Pipelines No Exports

33 Activist Pivot from Upstream to Midstream Google search index for fracking, Gasland NY fracking ban Google search index for pipeline, Keystone rejected DAPL

34 New Battleground: Pipelines 2.5 million miles of natural gas pipelines 190,000 miles of oil pipelines

35 Energy Infrastructure Under Assault

36 No Coal, No Gas, No Nuclear, No New Hydro 2003: Sierra Club announces Beyond Coal campaign 2010: We do need natural gas as a bridge fuel a temporary bridge fuel to bring about a clean energy revolution Sierra Club Executive Director Michael Brune 2012: Sierra Club announced Beyond Gas campaign. As we push to retire coal plants, we re going to work to make sure we re not simultaneously switching to natural gas infrastructure. And we re going to be preventing new gas plants from being built wherever we can. Sierra Club Executive Director Michael Brune The Sierra Club opposes the licensing, construction and operation of new nuclear reactors utilizing the fission process, pending: 1) Development of adequate national and global policies to curb energy over-use and unnecessary economic growth (emphasis added). The Sierra Club strongly opposes the construction of new large hydroelectric dams.

37 TAKE ACTION! Join us and help secure America s Energy Future Institute for 21st Century