The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

e1534  ethanol-in-gasoline  renewable-fuel-standard  rfs34  consumers  engine-safety  economic-impacts 

Mark Green

Mark Green
Posted December 16, 2014

Chicago Mayor Rahm Emanuel and his allies on the city council deserve credit for putting a stop – for now at least – to an ill-conceived proposal that would mandate the sale of higher ethanol blend E15 fuel at city service stations.

We say ill-conceived because, as argued here and here earlier this year, the E15 requirement could be full of risk for consumers and small business owners – while mainly benefiting ethanol producers. Recently, AAA urged Chicago lawmakers to vote against the ordinance.

Read More

ozone-pollution-standard  epa-regulation  economic-impacts  air-quality 

Mark Green

Mark Green
Posted November 25, 2014

Experts believe EPA soon will issue its proposal for the five-year review of Ozone National Ambient Air Quality Standards, perhaps as early as this week. Some important points to consider as the agency prepares what could be the costliest regulation ever imposed on Americans:

First, our air is getting cleaner under the current 75 parts per billion (ppb) standards set in 2008. EPA reports that national average ozone levels have fallen 33 percent since 1980 – including 18 percent since 2000.

Read More

ozone  ozone-standards  economic-impacts  arkansas  epa34  emissions  jobs  economy 

Mark Green

Mark Green
Posted August 22, 2014

The national standard for ground-level ozone hardly needs tinkering. As noted  earlier this year by Howard Feldman, API’s director of scientific and regulatory affairs, air quality in the U.S. has been steadily improving in recent years, and the health case for a more stringent ozone standard, which EPA may propose, hasn’t been made:

“We recognize that EPA has a statutory duty to periodically review the standards. However, the current review of health studies has not identified compelling evidence for more stringent standards. Tightened standards could impose unachievable emission reduction requirements on virtually every part of the nation, including rural and undeveloped areas. These could be the costliest EPA regulations ever.”

Costly nationally and to the states individually. A report for the National Association of Manufacturers says the U.S. could see a $270 billion per year reduction in GDP and 2.9 million fewer job equivalents per year on average through 2040. We’ve looked at potential state impacts in North CarolinaOhioLouisianaKentucky and Michigan. Today, Arkansas:

Read More

ozone-standards  economic-impacts  michigan  epa34  emissions 

Mark Green

Mark Green
Posted August 21, 2014

As with other states we’ve recently highlighted – North CarolinaOhioLouisiana and Kentucky – the impacts of more stringent standards for ground-level ozone on Michigan could be wide and significant. According to a recentreport from the National Association of Manufacturers (NAM), Michigan could see $75.3 billion gross state product loss from 2017 to 2040 and 83,092 lost jobs or job equivalents per year.

Read More

ozone-standards  epa34  louisiana  economic-impacts 

Mark Green

Mark Green
Posted August 18, 2014

Louisiana is an important energy-producing state – the country’s No. 2 crude oil producer at nearly 1.45 million barrels per day when federal offshore output is included. The state also is No. 2 in petroleum refining capacity.

Energy development is boosting Louisiana’s economy. Oil and natural gas extraction, refining and the pipeline industries support 287,000 state jobs and billions in household earnings and sales to state businesses, according to arecent study. At the same time, energy activity is part of the reason new, stricter ground-level ozone standards could have major impacts in Louisiana.

Read More

ozone-standards  ohio  epa-regulation  economic-impacts  emissions 

Mark Green

Mark Green
Posted August 15, 2014

Yesterday, we highlighted the potential impacts of a new, stricter ground-level ozone standard for North Carolina – reduced economy, job losses and more. Today, a look at Ohio. 

Every county in Ohio would be in nonattainment or non-compliance with an ozone standard of 60 parts per billion (ppb), which EPA is considering to replace the current 75 ppb standard. Counties in red are those with ozone monitors located in them; those in orange are unmonitored areas that could be expected to violate the 60 ppb standard, based on spatial interpolation.

The potential economic costs to Ohio would be significant. The state could see $204.3 billion in gross state product loss from 2017 to 2040 and 218,415 lost jobs or job equivalents per year. On a practical level, manufacturers wouldn’t be able to expand to counties in red or orange unless other businesses shut down, and federal highway funds could be frozen. 

Read More

ozone-standards  epa34  regulation  economic-impacts  emissions 

Mark Green

Mark Green
Posted August 14, 2014

Earlier this month the National Association of Manufacturers issued a report measuring the potential impacts of a new, stricter ground-level ozone air quality standard that’s being proposed by EPA. The estimated national results are economically devastating: reduction of U.S. GDP by $270 billion per year, 2.9 million fewer job equivalents per year on average through 2040 and potentially increased natural gas and electricity costs for manufacturers and households.

The picture is the same on a state-by-state basis. Over the next few days we’ll highlight some of the individual state impacts from the report, starting with North Carolina.

Read More

epa-regulations  emissions  ozone-standards  economic-impacts 

Mark Green

Mark Green
Posted July 31, 2014

A couple of new warning lights concerning EPA’s regulatory approach in proposed standards for power sector emissions as well as the anticipated standard for ozone. In both cases the agency appears poised to regulate without thoroughly reckoning potential impacts that could harm the economy and individual consumers.

First, there’s EPA’s effort to regulate power sector emissions – with carbon pollution guidelines proposed for existing power plants, on top of the already proposed guidelines for new electric utility generating units.

Howard Feldman, API’s director of regulatory and scientific affairs, testified at EPA field hearings this week that the agency’s proposals could result in higher energy costs, impacting the oil and natural gas industry’s international competitiveness and negatively affecting the broader economy. Feldman also warned that the proposals could set a precedent for EPA incursion into management of the power sector that’s beyond its authority under the Clean Air Act.

Read More

ozone-standards  epa34  oil-and-natural-gas-development  regulation  economic-impacts  energy-101 

Mark Green

Mark Green
Posted May 27, 2014

When EPA proposed tightening the national ozone standards a few years ago, President Obama told the agency to stand down. The existing standard of 75 parts per billion (ppb) wasn’t due for review, and there was concern stricter standards might harm the economy.

It’s a concern that hasn’t diminished as the agency starts regular review of ozone National Ambient Air Quality Standards. Howard Feldman, API’s director of regulatory and scientific affairs, discussed the review during a conference call with reporters:

“We recognize that EPA has a statutory duty to periodically review the standards. However, the current review of health studies has not identified compelling evidence for more stringent standards. Tightened standards could impose unachievable emission reduction requirements on virtually every part of the nation, including rural and undeveloped areas. These could be the costliest EPA regulations ever.”

Read More

renewable-fuel-standard  economic-impacts  blend-wall  ethanol 

Mark Green

Mark Green
Posted April 15, 2014

Yesterday we looked started looking at the oil and natural gas industry’s economic impact on individual states with a focus on Kentucky. Today, let’s talk about the importance of having the right energy policies in place to avoid negative impacts on local economies and individual consumes. Again, we’ll consider Kentucky.

Last month White Castle restaurant chain CEO Lisa Ingram wrote an op-ed piece for the Louisville Courier-Journalthat explained how the federal Renewable Fuel Standard (RFS) is having local, negative impact. Though the first White Castle opened in Wichita, Kan., nearly a century ago, Ingram writes, the chain has deep ties to Kentucky and serves more customers in Louisville than all but a few other markets. The city is home to one of the company’s frozen food plants, which employs nearly 200.

Yet the RFS – energy policy that has become obsolete and counter-productive in the midst of the U.S. domestic energy revolution – is putting upward pressure on food prices by requiring ever-increasing use of ethanol in the fuel supply.

Read More