/PRNewswire/ -- President Obama and the EPA are gearing up to put the nation on a low-carbon diet and their strategy would do Weight Watchers proud: Count first, cut later.
The counting begins on Jan. 1, 2010 when some 10,000 companies and other entities, including municipalities and even some universities, must start measuring their greenhouse gas (GHG) emissions.
And while it's uncertain when mandatory cuts will be announced - and whether Congress or the EPA will act first - the law firm of Plunkett Cooney said today that polluters might want to start dieting sooner rather than later because their GHG emissions, down to the plant level, will become part of the public record after March 31, 2011.
"New regulations to reduce carbon emissions are coming but public scrutiny will come first," said Plunkett Cooney Senior Attorney. "Companies need to understand that from the standpoint of government regulation and public opinion, the debate about global warming is over. That means it's time for them to develop sustainability plans and carbon reduction strategies before regulators, environmental advocates, shareholders and other groups force them to act."
According to Mikalonis, entities that annually generate or emit at least 25,000 metric tons of carbon dioxide equivalents, which includes gases such as methane, nitrous oxide or several fluorinated gases, must measure and report their emissions to the EPA or face fines of up to $37,500 per day for each violation. The reporting threshold is equivalent to the annual GHG emissions from approximately 4,600 passenger vehicles.
Entities covered under the new rules include fossil fuel-fired power plants, landfills, fuel production facilities, chemical plants, steel and aluminum works, cement factories and large livestock operations. Data collection for motor vehicle and engine manufacturers begins in 2011.
"The reporting rules will drive a lot of transparency and allow company-to-company and plant-to-plant comparisons," Mikalonis pointed out. "They will create public relations issues and potential legal problems for some companies, especially if they have been marketing themselves as 'green' when the emissions report says otherwise. But they also may speed up the adoption of energy-saving technologies, which can flow straight to the bottom line."
In Michigan, carbon dioxide accounts for the vast majority of GHG emissions, which are due in large part to burning fossil fuels for transportation and electricity. Methane is the next largest contributor, mostly from the anaerobic decay of solid waste in landfills. Nitrous oxide, the third largest contributor, comes chiefly from agricultural soil management and mobile source combustion.
In 2002, a study conducted for the Michigan Department of Environmental Quality estimated per capita GHG emissions in Michigan were 6.2 million metric tons of carbon equivalents (MMTCE), which is slightly below the national average.
In terms of mandatory GHG cuts, Mikalonis said new rules are a fait accompli now that the EPA has said that rising levels are a danger to present and future populations. Companies must therefore decide how they want to influence the regulatory process.
"The EPA is obligated to enact rules to drive down greenhouse gas emissions if Congress does not act," Mikalonis said. "Congress must decide if it is willing to compromise on issues like carbon cap and trade and energy taxes, or accept the risk that EPA may implement 'command and control' solutions. Businesses may prefer a mix of voluntary and legislative solutions and that approach should inform their overall sustainability strategy."
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Showing posts with label federal regulations. Show all posts
Showing posts with label federal regulations. Show all posts
Monday, December 28, 2009
Wednesday, May 6, 2009
New Study: Proposed Energy Regulations Could Cost Thousands of American Jobs, Billions in Public Revenues
/PRNewswire / -- A coalition of America's oil and natural gas producers today released the findings of a major research initiative, which concludes enacting new federal regulations - especially related to hydraulic fracturing - could have disastrous economic consequences and increase our dependence on foreign oil.
Project BRIEF - Bringing Real Information on Energy Forward - covers the history and progress of effective state regulation of energy development, the proper role of the federal government and the economic consequences of changes to existing regulatory frameworks. To highlight these findings and educate the public, the coalition also launched a new website: www.EnergyInDepth.org.
"Project BRIEF's scope is unprecedented, and its findings are stark," said Lee Fuller of the Independent Petroleum Association of America, one of the coalition organizers which represents the 5,000 smaller, independent producers that drill 90 percent of America's wells. "Implementing new federal regulations that threaten domestic energy production and increase costs - without creating any additional environmental benefits - is the wrong policy course for the country."
America's natural gas and oil producers provide massive contributions to our economy, and play a critical role in ensuring America's energy needs are met. Saddling them with new, unnecessary and ineffective regulations could put them out of business, destroy jobs and increase our dependence on foreign energy. That's especially true if Congress moves forward with plans to target hydraulic fracturing, a safe and common production technology that renders possible the efficient extraction of energy resources from shale rock.
Key Findings of Project BRIEF:
-- 1.2 million Americans are directly employed by domestic oil and natural gas producers
-- In 2007, the industry invested a record $226 billion in domestic exploration and production, and paid landowners $30 billion in royalties
-- Potential new regulations now circling around Washington could:
-- Force the closure of more than half of America's oil wells and a third
of our gas wells
-- Cost the federal government $4 billion in revenue; state treasuries
would lose $785 million
-- Slash domestic oil production by 183,000 barrels per day; natural gas
by 245 billion cubic feet per year
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Project BRIEF - Bringing Real Information on Energy Forward - covers the history and progress of effective state regulation of energy development, the proper role of the federal government and the economic consequences of changes to existing regulatory frameworks. To highlight these findings and educate the public, the coalition also launched a new website: www.EnergyInDepth.org.
"Project BRIEF's scope is unprecedented, and its findings are stark," said Lee Fuller of the Independent Petroleum Association of America, one of the coalition organizers which represents the 5,000 smaller, independent producers that drill 90 percent of America's wells. "Implementing new federal regulations that threaten domestic energy production and increase costs - without creating any additional environmental benefits - is the wrong policy course for the country."
America's natural gas and oil producers provide massive contributions to our economy, and play a critical role in ensuring America's energy needs are met. Saddling them with new, unnecessary and ineffective regulations could put them out of business, destroy jobs and increase our dependence on foreign energy. That's especially true if Congress moves forward with plans to target hydraulic fracturing, a safe and common production technology that renders possible the efficient extraction of energy resources from shale rock.
Key Findings of Project BRIEF:
-- 1.2 million Americans are directly employed by domestic oil and natural gas producers
-- In 2007, the industry invested a record $226 billion in domestic exploration and production, and paid landowners $30 billion in royalties
-- Potential new regulations now circling around Washington could:
-- Force the closure of more than half of America's oil wells and a third
of our gas wells
-- Cost the federal government $4 billion in revenue; state treasuries
would lose $785 million
-- Slash domestic oil production by 183,000 barrels per day; natural gas
by 245 billion cubic feet per year
-----
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Follow on Twitter @GAFrontPage
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
www.artsacrossgeorgia.com
Arts Across Georgia
Monday, May 4, 2009
Energy Independence Not Attainable Until 2030 or Beyond, Says KPMG Survey of Oil and Gas Executives
/PRNewswire/ -- More than three-quarters of oil and gas executives surveyed by KPMG LLP's Global Energy Institute say that energy independence is not attainable until 2030 or beyond, despite the emphasis on alternative energy sources in current and proposed government energy policies. The executives also said mass production of alternative energy is not viable in the short term. While there is a marked shift upward in the number of executives who acknowledge that global warming is occurring, the vast majority still don't support proposed regulations to stem CO2 emissions.
The KPMG Global Energy Institute survey polled 382 financial executives from oil and gas companies in April 2009. A total of 63 percent of respondents believe energy independence will not be attainable until after 2030; sixteen percent say it can happen by 2030, while nine percent deem it possible before 2020.
"Despite the increased focus on domestic energy sources, energy infrastructure, and alternative energy sources, a realistic assessment of technology and investment in the industry suggests energy independence is not realistic for at least two decades," said Bill Kimble, executive director of the KPMG Global Energy Institute. "The executives' perceptions of energy independence mirror their views on the viability of alternatives in the near-term as well."
Executives expect alternative and renewable energy sources to receive the most focus in President Obama's energy policy, the KPMG survey found. However, 52 percent said it will not be viable to mass produce any alternative energy sources by 2015, compared to 54 percent last year and 60 percent two years ago.
Winners and Losers in the New Energy Policy
Although executives did not think alternative energy sources were immediately viable, they did have clear opinions on which ones would benefit most from the Obama administration's energy policy. Thirty-five percent of respondents said that wind energy would be the biggest winner as a result of Obama's policy, followed by 18 percent for natural gas and 17 percent for biofuels. Conversely, 42 percent of executives see coal as the biggest loser while 36 percent say oil.
"These results clearly show the momentum wind energy has gained as a clean energy solution," said Kimble. "But 93 percent of our respondents see wind generation growing to only six percent of our energy generation by 2015 and only 17 percent say wind energy is viable for mass production by that year."
Marked Shift: More than Half Now Acknowledge Human Impact on Global Warming
When asked which areas in the Obama administration's energy policy would receive the most focus after alternative energy, executives cited greenhouse gas emissions and cap-and-trade. And, though the EPA recently pointed to CO2 emissions from burning fossil fuels as the main cause of global warming, nearly half (47 percent) of executives still believe that global warming, is a natural weather cycle, although this number is down from 62 percent in 2008.
"Our data shows a noted swing in executive perceptions on the issue of greenhouse gases and global warming," said Kimble, "but there is clear reluctance to support proposed actions and regulations to stem CO2 emissions."
In fact, when asked if they would support a cap-and-trade or carbon tax to reduce CO2 emissions, KPMG found that 59 percent do not support either, 23 percent would support carbon tax, and 18 percent would support a cap-and-trade system.
Spending and Business Challenges
When asked about capital spending and key business challenges in the coming year, KPMG found that executives have a subdued view. Sixty-five percent of those surveyed expect their company to decrease capital spending, including 47 percent who predict a drop of greater than 10 percent. Only 17 percent expect an increase over 2008 levels. These views are in stark contrast to those from KPMG's 2008 survey, when 70 percent expected an increase in capital spending and only five percent saw a decrease.
While oil prices have stabilized after extreme volatility in 2008, KPMG found that executives still rank commodity pricing the most significant challenge facing their companies in the coming year. Other key business challenges in order of significance include the economy, access to capital and regulatory concerns.
Also, 63 percent believe eliminating intangible drilling costs (IDC) will result in companies drilling outside the U.S. and unconventional wells not being drilled, a factor that may further slow the race toward energy independence
"There is no question that the economy has had an impact on U.S. energy companies, both in terms of pricing and capital," said Kimble. "However, with the current regulatory and legislative environment, oil and gas executives are also faced with the challenges of an evolving and dynamic industry pushing toward non-traditional energy sources."
KPMG will be discussing these survey results during its Seventh Annual Global Energy Conference, the event for financial executives in the energy industry on May 12th and 13th at the Intercontinental Hotel in Houston. This year's keynote speakers will be Madeleine Albright, Former United States Secretary of State, and Marvin Odum, President, Shell Oil Company.
The KPMG Global Energy Institute (GEI) has been designed to provide an open forum where industry financial officers, risk officers, internal audit directors, and tax executives can share knowledge, gain insights, and access thought leadership about key oil and gas or power and utilities issues and emerging trends. It offers ideas and innovative tools that help organizations apply rigor to compelling, real-world business and energy issues. GEI interacts with their members through a variety of channels, including Web-based videocasts, podcasts, conferences, share forums, and a web portal, www.kpmgglobalenergyinstitute.com.
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The KPMG Global Energy Institute survey polled 382 financial executives from oil and gas companies in April 2009. A total of 63 percent of respondents believe energy independence will not be attainable until after 2030; sixteen percent say it can happen by 2030, while nine percent deem it possible before 2020.
"Despite the increased focus on domestic energy sources, energy infrastructure, and alternative energy sources, a realistic assessment of technology and investment in the industry suggests energy independence is not realistic for at least two decades," said Bill Kimble, executive director of the KPMG Global Energy Institute. "The executives' perceptions of energy independence mirror their views on the viability of alternatives in the near-term as well."
Executives expect alternative and renewable energy sources to receive the most focus in President Obama's energy policy, the KPMG survey found. However, 52 percent said it will not be viable to mass produce any alternative energy sources by 2015, compared to 54 percent last year and 60 percent two years ago.
Winners and Losers in the New Energy Policy
Although executives did not think alternative energy sources were immediately viable, they did have clear opinions on which ones would benefit most from the Obama administration's energy policy. Thirty-five percent of respondents said that wind energy would be the biggest winner as a result of Obama's policy, followed by 18 percent for natural gas and 17 percent for biofuels. Conversely, 42 percent of executives see coal as the biggest loser while 36 percent say oil.
"These results clearly show the momentum wind energy has gained as a clean energy solution," said Kimble. "But 93 percent of our respondents see wind generation growing to only six percent of our energy generation by 2015 and only 17 percent say wind energy is viable for mass production by that year."
Marked Shift: More than Half Now Acknowledge Human Impact on Global Warming
When asked which areas in the Obama administration's energy policy would receive the most focus after alternative energy, executives cited greenhouse gas emissions and cap-and-trade. And, though the EPA recently pointed to CO2 emissions from burning fossil fuels as the main cause of global warming, nearly half (47 percent) of executives still believe that global warming, is a natural weather cycle, although this number is down from 62 percent in 2008.
"Our data shows a noted swing in executive perceptions on the issue of greenhouse gases and global warming," said Kimble, "but there is clear reluctance to support proposed actions and regulations to stem CO2 emissions."
In fact, when asked if they would support a cap-and-trade or carbon tax to reduce CO2 emissions, KPMG found that 59 percent do not support either, 23 percent would support carbon tax, and 18 percent would support a cap-and-trade system.
Spending and Business Challenges
When asked about capital spending and key business challenges in the coming year, KPMG found that executives have a subdued view. Sixty-five percent of those surveyed expect their company to decrease capital spending, including 47 percent who predict a drop of greater than 10 percent. Only 17 percent expect an increase over 2008 levels. These views are in stark contrast to those from KPMG's 2008 survey, when 70 percent expected an increase in capital spending and only five percent saw a decrease.
While oil prices have stabilized after extreme volatility in 2008, KPMG found that executives still rank commodity pricing the most significant challenge facing their companies in the coming year. Other key business challenges in order of significance include the economy, access to capital and regulatory concerns.
Also, 63 percent believe eliminating intangible drilling costs (IDC) will result in companies drilling outside the U.S. and unconventional wells not being drilled, a factor that may further slow the race toward energy independence
"There is no question that the economy has had an impact on U.S. energy companies, both in terms of pricing and capital," said Kimble. "However, with the current regulatory and legislative environment, oil and gas executives are also faced with the challenges of an evolving and dynamic industry pushing toward non-traditional energy sources."
KPMG will be discussing these survey results during its Seventh Annual Global Energy Conference, the event for financial executives in the energy industry on May 12th and 13th at the Intercontinental Hotel in Houston. This year's keynote speakers will be Madeleine Albright, Former United States Secretary of State, and Marvin Odum, President, Shell Oil Company.
The KPMG Global Energy Institute (GEI) has been designed to provide an open forum where industry financial officers, risk officers, internal audit directors, and tax executives can share knowledge, gain insights, and access thought leadership about key oil and gas or power and utilities issues and emerging trends. It offers ideas and innovative tools that help organizations apply rigor to compelling, real-world business and energy issues. GEI interacts with their members through a variety of channels, including Web-based videocasts, podcasts, conferences, share forums, and a web portal, www.kpmgglobalenergyinstitute.com.
-----
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Friday, February 27, 2009
AJC: Feds’ Energy Rules Will Hit State Hard
GEG Note: What an excellent look at the potential problems all Georgians could face with Obama's plans.
By Bob Keefe
The Atlanta Journal-Constitution
Friday, February 27, 2009
Georgia simply doesn’t have the wind, solar or biomass resources required to meet proposed new federal regulations for renewable energy generation, Georgia Public Service Commissioner Stan Wise told members of Congress on Thursday.
As a result, Georgians’ electricity bills would rise by as much as 25 percent and billions in taxpayer money would flow out.......http://www.ajc.com/business/content/printedition/2009/02/27/wise0227.html
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By Bob Keefe
The Atlanta Journal-Constitution
Friday, February 27, 2009
Georgia simply doesn’t have the wind, solar or biomass resources required to meet proposed new federal regulations for renewable energy generation, Georgia Public Service Commissioner Stan Wise told members of Congress on Thursday.
As a result, Georgians’ electricity bills would rise by as much as 25 percent and billions in taxpayer money would flow out.......http://www.ajc.com/business/content/printedition/2009/02/27/wise0227.html
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