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Energy Update, April 6, 2012

In the States

CA – Governor Jerry Brown has said that he is considering allowing wider use of hydraulic fracturing in California as a means of obtaining oil from shale.  Governor Brown says that he is not considering new taxes on the procedure and did not comment on legislation that would require companies to disclose the site locations or chemicals used in the process, but said the process would self-regulate due to the State’s “very vigorous tort system.”  According to a U.S. Energy Department estimate, California has two-thirds of the country’s oil shale, which is enough to supply every west coast refinery for 17 years.  California’s Brown says he’ll consider fracking standardsBloomberg BusinessWeek and Gov. Jerry Brown says he’s studying ‘fracking’ in CaliforniaLos Angeles Times

GA – Governor Nathan Deal welcomed PyraMax Ceramics, a company that manufactures ceramic pellets used in the hydraulic fracturing process, to the State, along with the estimated 60 jobs the company plans to establish at the plant it is building in Jefferson County.  PyraMax will save an estimated $1 million per year in taxes – due to a recently-enacted law exempting manufacturing companies from energy sales taxes – and will receive employee training benefits from the State.  The company chose the site due to the benefits that Georgia offered, as well as the availability of kaolin -- a soft white clay used to make the pellets -- and assistance provided by State officials to complete the permitting process and secure contracts from natural gas and electricity companies.  Governor Deal said, “Now that Georgia knows that Jefferson County can make something happen, we look forward to future opportunities to work with other new industries like PyraMax Ceramics that the state of Georgia brings.”  Gov. Deal welcomes PyraMax Ceramics to GeorgiaAugusta Chronicle and Pellet plant bringing jobsGeorgia Public Broadcasting

VA – Governor Bob McDonnell has announced the approval by the Virginia Marine Resources Commission of a proposal from Gamesa Energy USA, in partnership with Huntington Ingalls Newport News Shipbuilding, to build and install a prototype wind turbine in the Chesapeake Bay.  While Gamesa will use this project primarily to ensure optimal performance and reliability of its technology, the turbine will also produce five megawatts of clean, renewable wind power. In discussing the project in the context of his “all of the above” energy approach, Governor McDonnell said:  “This is an important next step in developing all of Virginia’s domestic energy resources to help power our nation’s economy and puts Virginia at the forefront of clean energy technology development.” The turbine will stand 479 feet tall and will be located about three miles off the coast near the town of Cape Charles on the Eastern Shore.  It is expected to be in service in 2013, which would make it the first offshore wind turbine in the country.  However, the project still needs the approval of the U.S. Army Corps of Engineers and review by the U.S. Coast Guard.  State approves construction of bay wind turbineLuray Page Free Press

National News

Ten Federal agencies and five U.S. States have signed a memorandum of understanding (MOU) creating the Great Lakes Offshore Wind Energy Consortium that will help coordinate permitting processes and expedite the development of wind power off the coasts of those states.  The MOU, which is modeled after a similar agreement involving Atlantic coast states, was signed by Governors from Illinois, Michigan, Minnesota, New York, and Pennsylvania as well as the U.S. Departments of Energy, Defense, and the U.S. Army, among other Federal agencies.  Nancy Sutley, chairwoman of the White House Council on Environmental Quality, another signatory, said the goal of the MOU “is to cut through red tape” in order to “create jobs and reduce pollution.”  Pennsylvania Governor Tom Corbett said, “This agreement will enable states to work together to ensure that any proposed offshore wind projects are reviewed in a consistent manner, and that the various State and Federal agencies involved collaborate and coordinate their reviews.”  Feds, 5 states to push for Great Lakes wind farmsAlbert Lea Tribune

U.S. Secretary of Interior Ken Salazar has announced that companies will be allowed to perform seismic mapping surveys off the Atlantic coast between Delaware and Florida to determine the location and scope of offshore oil and gas reserves early next year.  The surveys could pave the way for expanded offshore drilling by providing oil and gas companies updated information they can use in deciding where to drill.  Seismic testing could also be used to determine the most suitable locations for wind turbines and other renewable energy projects, locate sand and gravel for restoring eroding coastal areas, and identify cultural artifacts such as historic sunken ships. Some environmental groups, including the Sierra Club’s Virginia chapter, objected to the surveys because of their concern that the requisite sonic booms emitted by air guns will harm marine life, including endangered species like whales.  Virginia Governor Bob McDonnell said the announcement is “a small step forward in the development of our offshore energy resources,” but also criticized the Obama administration for not allowing offshore oil exploration off the coast of Virginia last year.  Drilling off the Atlantic coast moves a step closerWashington Post

The U.S. Environmental Protection Agency (EPA) has issued a proposed rule that would limit the amount of greenhouse gases that new power plants can emit.  Existing plants are exempt from the rule, which requires plants to emit less than 1,000 pounds of carbon dioxide per megawatt-hour of energy produced.  The rule also allows new coal plants to begin operation and implement carbon restrictions later, as long as they meet the required limit on emissions on average over a 30-year period.  Newer natural gas-fired power plants generally meet the emissions limit, but coal-fired plants would need to use a method of lowering emissions such as carbon capture and sequestration, in order to comply with the proposed rule.  Most environmental groups expressed support for the rule, but some also want emission limitations applied to existing plans.  Republicans in Congress criticized the proposal and Senator Jim Inhofe (R-OK) indicated he would seek a Congressional Review Act vote to stop the rule before it is implemented.  EPA unveils green house gas standard for new power plants - Politico and For new generation of power plants, a new emission rule from the EPANew York Times

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