Environmental

Coal to Liquid Fuel Promotion Act

Background:  In the 110^th Congress, S 155 and HR 370, sponsored by Kentucky Senator Jim Bunning and Kentucky Congressman Geoff Davis would establish a “Coal To Liquid Fuel Promotion Act”, and establish incentives to increase production of synthetic fuels from coal. The so-called Fischer-Tropsch technology of conversion is proven and economically viable when crude oil prices exceed $50 a barrel. Without question, U.S. and Kentucky economic prosperity is closely tied to the availability of reliable and affordable supplies of energy. Since 1973, U.S. energy production has only grown by 13 percent, while U.S. energy consumption has increased by 30 percent. According to the U.S. Energy Information Agency, the United States, by 2015, is expected to need 44% more petroleum, 38% more natural gas, 43% more coal, 54% more electricity, and 54% more renewable energy.

The Northern Kentucky Chamber supports:  a comprehensive approach to national energy  policy. Further, we support the development of proven energy technology, with the added benefit that these particular fuels could increase national security by providing a secure fuel source for our military.

Promoting Energy Efficiency and Clean Energy Technologies to Reduce Greenhouse Gas and Traditional Air Pollutant Emissions

Background:

As the production, distribution, and consumption of energy is associated with the release of greenhouse gases and traditional air pollutants, and the effects of these emissions occur at both a national and international scale, effective leadership and coordination from the Federal Government to tackle integrated energy and environmental challenges is needed. 

To ensure the availability of clean, reliable, affordable energy and to reduce adverse air quality associated with energy production, distribution, and consumption, federal lawmakers should consider legislation that:

• Provides for a comprehensive approach to national energy policy. This energy policy should also be integrated with environmental protection policies.
• Provides for research and programs to reduce total energy consumption and energy consumption per capita while not constraining GDP growth or productivity.
• Provides for research to develop, promote, and implement renewable energy technologies for power production and transportation.
• Provides for development of technologies to extract energy from coal, such as through gasification or liquification, while capturing and sequestering CO₂.
• Creates a stable energy market for traditional fuels to protect businesses making investments in the renewable and clean coal technologies necessary to transform the nation’s power and transportation energy systems.

Regulation of Greenhouse Gases

Background:

Continuing access to and availability of low cost energy remains vital to Northern Kentucky’s economy. In addition, limiting new regulation, especially in a time of economic uncertainty, is essential. As the 111^th Congress develops a comprehensive plan to manage the nation’s greenhouse gas emissions, care must be taken to protect consumers and businesses from significant and sudden price increases for energy and other goods.  Coal-fired electric power generation represents over 50% of the electricity generated in the United States and over 90% of that generated in Kentucky.  States and regions that are heavily dependent on coal used in electricity generation, such as Kentucky and the Midwest, must not be disproportionately impacted by climate change regulation.

The Northern Kentucky Chamber of Commerce encourages Congress to incorporate the following principles and policy attributes into potential climate change legislation:

1.   Regulation of greenhouse gases should not be done within the framework of the existing Clean Air Act.  New legislation should be developed that is separate but compatible with existing Clean Air Act programs.

2.   Must be broad reaching and market-based, with price signals leading to technological innovation and investment, energy efficiency, and conservation.

3.   Must consider varying impacts on consumers across regions and economic sectors.

a.   Emission allowances should be allocated at no cost rather than auctioned so that customers in coal dependent states do not pay twice-once for the cost of the allowances and again for the cost of replacing generation with lower-carbon alternatives.

b.   Emission allowances should be based on and equal to recent historical emissions to minimize the disproportionate state and regional impacts to consumers in coal dependent states.

4.   Must contain an emission trajectory that begins to reduce greenhouse gas emissions gradually while providing price certainty for consumers and allowing needed technologies to be developed and deployed.