Pennsylvania Senators Introduce Tax Breaks and Regulatory Reform for Energy Producers

Doug Mastriano and Scott Hutchinson

Pennsylvania State Senators Doug Mastriano (R-Chambersburg) and Scott Hutchinson (R-Oil City) last week proposed a measure to lighten the tax and regulatory burden for fossil-fuel producers.

Their legislation, entitled the PA Energy Independence Act, would immediately pause income taxation for natural-gas developers, reduce state gas-extraction fees by 200 percent and end Governor Tom Wolf’s (D) moratorium on new state-land leases for fossil-fuel drilling. It would also suspend the state’s participation in the Regional Greenhouse Gas Initiative (RGGI), which would amount to a tax on carbon emissions.

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Bill Would Lift Gov. Wolf’s Moratorium on New Leases for Drilling in Pennsylvania

Republicans in Pennsylvania’s House of Representatives this week introduced several measures to boost fossil-fuel production in the Keystone State, including a resumption of new state-land drilling leases.

Gov. Tom Wolf (D) imposed a moratorium on new leases for oil and gas development on state-owned areas in January 2015. A bill authored by State Rep. Clint Owlett (R-Wellsboro) would rescind that order and stipulate that all energy exploration performed under any resulting leases be subsurface. That means that the well site must be built off of commonwealth property and that underground channels would reach horizontally into the public lands, allowing for better environmental preservation than older drilling methods.

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25 States Line Up Against Biden Attack on Natural Gas Industry

Half of all U.S. states penned a letter to the Biden administration, arguing against its decision to reverse a Trump-era rule allowing energy firms to transport natural gas via rail.

The 25-state coalition said that proposed prohibition of natural gas rail transport would have “devastating effects” on the economy and national security, according to the letter led by Republican Louisiana Attorney General Jeff Landry. The Monday letter was addressed to Pipeline and Hazardous Materials Safety Administration (PHMSA) Acting Administrator Tristan Brown.

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Pennsylvania Lawmaker Urges New Jersey and New York to End Pipeline-Construction Bans

Pennsylvania State Representative Stan Saylor (R-Red Lion) announced Monday he’ll introduce a resolution exhorting New Jersey and New York’s respective governors to allow construction of natural-gas conduits.

In 2014, Democratic New York Governor Kathy Hochul’s predecessor Andrew Cuomo (D) banned hydraulic fracturing (or “fracking”) for natural-gas extraction and thenceforth barred the creation of new natural-gas pipelines. Last month, Hochul endorsed a statewide prohibition of gas power for new buildings, the first such state-level interdiction in the U.S. 

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Industry Groups Raise Questions After Study on Gas Stoves

Industry groups and others are pushing back after a study found gas stoves contribute more to global warming than previously thought at a time when some elected officials are considering policies to limit natural gas connections.

The study, published in Environmental Science & Technology, found methane that leaks from natural gas stoves in U.S. homes has a climate impact equivalent to the carbon dioxide emissions from about 500,000 gas-powered cars.

The study also tested emissions from stoves in homes. A Stanford news release that accompanied the study raised concerns about indoor air quality because of the levels of nitrogen oxides.

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Pennsylvania Bill Prohibiting Municipalities from Banning Natural Gas Passes State House

Legislation disallowing local bans on new buildings’ use of natural gas passed the Pennsylvania state House of Representatives Wednesday by a vote of 118 to 83. 

A number of major U.S. cities, including San Francisco, Seattle, Denver and New York, have prohibited the supply of natural gas to most new buildings. The sponsor of the Pennsylvania bill, Rep. Tim O’Neal (R-Washington) said that while local governments in the Keystone State haven’t yet officially barred the fuel’s use, some climate-action plans generated by state and local governments call for such measures. 

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Commentary: U.S. Natural Gas Is Critical to Strengthening America’s National Security

In recent months, European gas prices have risen as much as 700 percent, leaving millions of citizens vulnerable to a dangerously unstable grid and burdened with high electricity costs heading into this winter. Disruptions from this energy crisis have been felt by households and many industries that rely on affordable power to provide goods and services.

Until the recent escalation of Russia’s confrontation with NATO over Ukraine, the Biden administration’s solution to Europe’s energy crisis had been to implore Russia to send more gas to Europe. EU member states are already dependent on Moscow for roughly 40 percent of their gas supply. Initially, the White House made a deal with Germany, letting the Nord Stream 2 gas pipeline move forward. As part of an effort to repair relations with Germany, this decision allows Russia to tighten Putin’s grip over European energy security at the expense of our strategic partner Ukraine. Fortunately, German regulators refused to approve the pipeline, effectively delaying the certification of the project before July 2022. As part of the growing confrontation with Europe and the U.S. over Ukraine, Russia has further cut gas exports to Europe.

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Commentary: America’s Energy Future Depends on Pennsylvania

Pittsburgh by night, Duquesne Incline in front.

For decades, many of us in northeastern Pennsylvania have talked about knocking the rust off our regional economy and creating not only new jobs but also new industries.

Diversifying the economic portfolio of northeastern Pennsylvania means creating an ecosystem for entrepreneurs that helps small businesses prosper in our downtowns through partnerships with the region’s great institutions of higher education – partnerships like the Invent Penn State launchbox at Penn State Hazleton and the Idea Hub at the Wilkes-Barre Innovation Center.

Creating a strong regional economy also means investing in the economic assets – like Pennsylvania natural gas – that enable us to compete for good manufacturing jobs. Affordable, Pennsylvania-produced natural gas is a foundational component of our national economy, fueling America’s manufacturing plants, farms, hospitals, schools, and homes. The Keystone State’s natural gas powers our energy economy and produces thousands of family-sustaining jobs, ranging from the scientist in the laboratory to the union laborer on the pipeline. 

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‘Political Uncertainty’: Energy Firm Abandons Oregon Pipeline Project After Years of Environmentalist Pushback

The newest inflatable pipeline prop had it's debut action at the Capitol in Salem, OR. 350Eugene mobilized the creative imagery joining with people across the state to call on the governor to take concrete action to halt the proposed LNG pipeline and export facility in Jordan Cove. The prop was used to highlight the first life-cycle greenhouse gas emissions analysis and climate impacts of the project from the fracking in Colorado, Wyoming or Canada, to the export facility and the burning of gas overseas. The rally in Salem, Oregon during Lobby Day with Governor Brown and Legislators amplified the call to end the Pacific Connector Pipeline and Terminal plans for Jordan Cove, Coos Bay, Oregon. Activist from all over the state took part with diverse rally speakers, songs, chants, a skit with bobble head Puppet Gov Brown & the actions she must take to halt the project. They walked the pipeline to the Department of State Lands Board building then back to Capitol steps. Photos by 350Eugene, Don Ewing.

Canadian energy firm Pembina Pipeline Corp. pulled the plug on a years-long project that would have led to greater natural gas exports from to Canada to the U.S.

The multi-billion-dollar Jordan Cove project included plans to construct a marine export terminal, which would have been the first of its kind in the continental U.S., and a 230-mile pipeline across Oregon, The Associated Press reported. The terminal would have liquefied up to 1.04 billion cubic feet of natural gas per day for export and hosted two full-containment storage tanks on site, according to previous federal permit records.

But the project, which dates back to 2004, was fiercely opposed by environmentalists while state officials created permitting roadblocks that Pembina struggled to hurdle. In 2020, the Republican-majority Federal Energy Regulatory Commission approved the project, but the agency rescinded approval in January, upholding Oregon’s rejection of the plans.

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Texas Democrats: Biden’s Energy Policies Will Cost Jobs, Create Dependence on Foreign Oil

Henry Cuellar

Seven Democratic U.S. representatives have asked Speaker of the House Nancy Pelosi, D-Calif., and Senate Majority Leader Chuck Schumer, D-New York, to not target the oil and gas industry in the budget reconciliation bill before Congress.

Despite the concerns they and those in the industry have raised, Democrats in the U.S. House Natural Resources Committee pushed through a section of the bill, which includes billions of dollars in taxes, fines and fees on the oil and gas industry in the name of climate change.

Committee Chair Raúl M. Grijalva, D-Ariz., said the section of the bill that passed “invested in millions of American jobs” and put the U.S. “on a more stable long-term economic and environmental path.”

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Michigan Missing Out on Ford’s Joint $11.4B Electric Vehicle Factories in Tennessee, Kentucky

Despite Gov. Gretchen Whitmer’s claim that Michigan is the future of electric vehicles (EVs), Ford Motor Company and battery maker SK Innovation announced plans to build three new plants in Kentucky and Tennessee.

The new plants, which will host production of electric vehicles and advanced lithium-ion batteries by 2025, will cost roughly $11.4 billion to build and create a projected 11,000 jobs.

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Commentary: The Proposed Methane Fee Is an All-Downside Proposal

Person filling up red car with petrol/gasoline

The Methane Emissions Reduction Act of 2021 has been proposed as a “pay-for” – a source of revenue – in the reconciliation infrastructure package. It would impose a “fee” on methane emissions from natural gas and petroleum production systems and related processes, but not on such emissions from agricultural and other operations. Accordingly, it is worse than a mere money grab: it’s a blatant exercise in punitive politics directed at the fossil-fuel energy sector, a tax on conventional energy.

Not so, says Representative Diana DeGette (D-CO), as summarized by the Washington Examiner:

“This is not a tax. It’s a fee on natural gas waste,” adding oil and gas operators have the technologies to combat methane leaks at low cost. “The smart players want to prevent waste because they can capitalize it to make money. Customers won’t be paying a fee on gas delivered. The only fee will be paid [by an operator] on what doesn’t make it to the consumer.”

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Commentary: Biden Has Given Putin a Huge Win on the Nord Stream 2 Pipeline

For years, Democrats and their cable news echo chamber conjured up and broadly disseminated the most lurid and patently ludicrous rumors about former President Donald Trump being a corrupted and (literally) compromised agent of Vladimir Putin and the Kremlin. Democratic talking heads ultimately tried in vain to distance themselves from this sordid oeuvre‘s most far-fetched talking points, such as the infamous “pee video kompromat” from the discredited Steele dossier. But for four years, Democrats’ unquenchable obsession with the “Russiagate” hoax pervaded, distorted and sullied our politics.

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Biden Clears Way for Russian Gas Line After Nixing Keystone XL

Joe Biden waving

Following a Biden administration move to lift U.S. sanctions blocking completion of Russia’s Nord Stream 2 gas pipeline, critics are charging that the new president — who canceled the Keystone XL pipeline on his first day in office — is more concerned about Russian energy jobs and independence than he is about America’s own.

“President BIden, if [you] can’t put America First, can you at least not put Russia first?” form Secretary of State Mike Pompeo tweeted.

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Oil and Gas Production to Account for 68 Percent of Energy Consumption Over Next Two Decades

Over the next two decades, oil and gas production is projected to account for 68 percent of energy consumption in the U.S. and will play a key role in the energy transition to a low carbon future, according to a new report published by the U.S. Department of Energy.

Natural gas is increasingly powering plants to produce electricity, but oil and natural gas are revitalizing the U.S. petrochemical industry, growing the liquefied natural gas industry, and boosting high-tech materials, the report states.

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Despite Supreme Court Win, Energy Companies Cancel $8 Billion Atlantic Coast Pipeline

The developers of the long-delayed, $8 billion Atlantic Coast Pipeline announced the cancellation of the multi-state natural gas project Sunday, citing uncertainties about costs, permitting and litigation.

Despite a victory last month at the United States Supreme Court over a critical permit, Dominion Energy and Duke Energy said in a news release that “recent developments have created an unacceptable layer of uncertainty and anticipated delays” for the 600-mile project designed to cross West Virginia and Virginia into North Carolina.

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Supremes Revive Permit for Pipeline Under Appalachian Trail

The Supreme Court on Monday paved the way for a critical permit for a proposed natural gas pipeline that would cross under the Appalachian Trail, siding with energy companies and the Trump administration.

The justices ruled 7-2 to reverse a lower court ruling that had thrown out the permit for the Atlantic Coast Pipeline. It would bring natural gas from West Virginia to growing markets in Virginia and North Carolina. Its supporters say the pipeline would bring economic development, thousands of jobs and reduced energy costs for consumers.

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Commentary: Trump’s Energy Policies Are Paying Off for Workers and Consumers

by Richard McCarty   With the liberal media busy looking for excuses to attack President Trump and his administration, you might have missed some good news on the energy front. American energy jobs are being created, gas prices are dropping, energy imports are dropping and energy exports are rising. Since Trump took office, there have been thousands of coal mining jobs created; and tens of thousands of oil and gas industry jobs have been created. Many of these jobs pay well. Thanks to Trump, coal’s future is looking brighter. In the early months of the Trump Administration, the Interior Department ended the moratorium on new coal leases on public lands that the Obama Administration had put in place. In FY 2017, coal production on federal lands increased by more than 12 percent. While environmentalists work to shut down reliable coal plants reducing domestic needs for coal, coal exports increased by 61 percent last year as coal shipments to Europe rose and shipments to Asia more than doubled. The domestic natural gas industry is growing rapidly. Last year, for the first time since the Eisenhower era, the U.S. has become a net exporter of natural gas. The U.S. is expected to…

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Commentary: President Trump Eyes American Energy Dominance

by Printus LeBlanc   Despite what the media is spewing, President Donald Trump is continuing his push to improve the American economy. The President made not just energy independence a priority of his campaign and now administration, but energy dominance. The President knows the U.S. has been blessed with vast quantities of energy, but the previous administration spent eight years trying to kill the energy industry and the hundreds of thousands of high paying jobs that go with it. President Trump and Secretary Zinke are taking steps to correct eight years of bureaucratic war waged against the petroleum extract industry. An independent study conducted by Rystad Energy released in 2016 estimates the U.S. now holds more recoverable oil than both Saudi Arabia and Russia. If the report is accurate, it would be worth an estimated $50 trillion. Even if the estimates are off by half, it is still $25 trillion just waiting for U.S. firms to pull out of the ground. Unfortunately, much of that is on federal lands. On June 29, while speaking at the Department of Energy, President Trump outlined six concrete steps his Administration is immediately taking to promote strength and innovation in America’s energy sector. The President’s sixth step…

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