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Energy Update, April 8, 2011

April 8, 2011

In the States

SD –  Governor Dennis Daugaard has signed a bill into law that he proposed earlier this year that will divert a portion of funds that previously would have gone to ethanol production plants toward grants to fuel stations for installation of blender pumps that will allow motorists to purchase fuel containing higher levels of ethanol.  Governor Daugaard referenced the recent U.S. Environmental Protection Agency (EPA) decision that allows cars made in the past decade to use fuel containing 15% ethanol, higher than the previous 10% limit.  The blender pumps will allow consumers to choose the amount of ethanol in the fuel they purchase.  SD Governor signs bill to boost ethanol industryRapid City Journal

State Fiscal News

Energy production appears to be a driver of economic recovery in some States.  In Wyoming, thousands of new mining jobs have opened up, increasing by 8.8 percent in the fourth quarter of 2010 over the same period in 2009.  Higher demand in developing countries, particularly in Asia, is leading companies to hire more workers to extract coal, soda ash, and uranium.  Rising oil prices and demand for natural gas may soon contribute to job growth in those industries as well.  These industries have increased sales tax revenues for Wyoming by 10% in 2010.  In Montana, unemployment numbers are higher on the west side of the State, where workers rely more on wood-product manufacturing jobs dependent on the housing market.  On the east side of the State, energy jobs in the coal, oil, and wind industries have kept unemployment rates much lower.  Energy powers robust Wyoming economyStar-Tribune and Montana growth slows but withstands recessionUSA Today

National News

In a series of recent appearances, President Barack Obama has called for a one-third reduction in oil imports within 14 years.  The President addressed shortcomings in previous methods in reducing oil imports, stressing that “there are no quick fixes” and that efforts must continue once drivers see relief at the gas pump.  Proposals for reducing oil imports include greater use of natural gas in fleet vehicles and buses, increased production and use of biofuels such as cellulosic ethanol (for which the President said four refineries will be built in the next two years), higher fuel efficiency standards for heavy trucks, and increasing domestic oil production both on- and offshore.  President Obama also said that “we simply cannot take [nuclear power] off the table, regardless of concerns over the ongoing nuclear crisis in Japan.  Part of the President’s message on energy independence includes an economic aspect: that transitioning to a less oil-intensive economy could create jobs.  The President cited new lower unemployment numbers adding “we need to keep the momentum going” by “making a transition to a clean energy economy.”  President Obama calls for one-third cut to oil importsWashington Post and Reviving elusive goal, Obama calls for one-third reduction in U.S. oil importsWashington Post and Obama promotes his energy agenda by showcasing energy-efficient vehiclesWashington Post

U.S. EPA regulations on greenhouse gases and mountaintop removal have become major points of contention in Congress, and attempts to limit the agency have thus far been unsuccessful.  Nineteen House Democrats joined all Republicans in voting for a bill that would prevent the EPA from regulating greenhouse gases under the Clean Air Act and, beginning in 2017, from granting waivers to States for stricter emissions standards for automobiles.  A similar bill was defeated in the Senate.  Although four Democrats joined 46 Republicans in supporting a ban on the EPA regulations, the bill needed 60 votes to pass.  The fate of appropriations riders that would have restricted EPA greenhouse gas and mountaintop removal regulations in the fiscal year omnibus 2011 funding bill appeared settled as of the afternoon of April 8, when Republicans agreed to drop the measures.  If Congress does pass a bill limiting EPA’s oversight of greenhouse gases, the Obama Administration has signaled that the President would veto such a measure.  Senate rejects bill that would limit EPA’s authority to regulate greenhouse gasesWashington Post and House votes to stop EPA from regulating greenhouse gasesWall Street Journal and EPA riders axed, lawmakers sayPolitico

 

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