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Press Release: Democratic Governors lead the way on energy solutions

Innovative policies have widespread appeal beyond state borders

Washington, D.C. – With record high gasoline prices expected to be accompanied by record home heating bills this winter, Democratic Governors are doing their part to protect America’s families from escalating energy costs and to stop our reliance on foreign oil. The Governors’ innovative policies have widespread appeal beyond state borders. From special legislative sessions to waste-coal fuel plants to gasoline price-gouging investigations to ethanol and solar production, Democratic Governors are leading the way to energy independence.

“Families in all of our states have already been hard-hit by prices at the gas pump and now they’ll be looking at as much as a 50 percent jump in heating bills. Americans deserve better and America can do better,” Democratic Governors Association Chair New Mexico Governor Bill Richardson said. “Our nation stands at a crossroads on energy issues and that we must act now to plan for our future and reduce our dependence on foreign oil and develop alternative fuels. Our national security is tied to our energy security and our ability to plan for the future.”

Governor Richardson, a former U.S. Energy Secretary, added, “Democratic Governors are helping America reach sustainable solutions to energy problems. My fellow Governors and I have worked to reduce our country’s dependence on foreign oil and are pushing for energy independence. In our states, we are doing our part to develop energy policies that promote renewable energy sources, reduce greenhouse gas emissions and keep energy prices affordable for American working families. A strong America begins at home, and we urge President Bush and his friends on Capitol Hill to do their part as well.”

The Democratic Governors Leading the Way: Controlling Energy Costs and Achieving Energy Independence report highlights the far-reaching potential that many of the Governors’ policies have beyond state borders. Below are just a few examples from the attached report:

Gasoline Price-Gouging

Last week, amidst reports of record profits for oil companies, Democratic Governors renewed their call for a federal investigation into gasoline price-gouging following Hurricane Katrina. More than half of the Democratic Governors have taken actions in response to record gas prices. Last month, eight Democratic Governors (Illinois, Iowa, Michigan, Montana, Oregon, New Mexico, Washington and Wisconsin) asked President Bush and Congressional leaders to investigate possible gasoline price-gouging following this national crisis and urged oil companies to refund excessive profits to consumers. President Bush asked Attorney General Alberto Gonzales to handle price-gouging allegations and the Federal Trade Commission has undertaken an investigation.

Immediately following Hurricane Katrina, Democratic Governors took the lead on skyrocketing gasoline prices and ordered their state Attorneys General and other state officials to investigate possible price-gouging. New Jersey alone visited more than 400 gas stations in one week and found more than 100 violations, leading Acting Governor Richard Codey to file lawsuits against oil companies and independent gas station operators for price violations. Tennessee Governor Phil Bredesen encouraged businesses to be responsible and outlined two legal avenues the state could use to prosecute price-gouging; and Puerto Rico Governor Aníbal Acevedo Vilá issued two gas price-profit directives limiting the inflation of fuel prices on the island.

Michigan Governor Jennifer Granholm declared an Energy State of Emergency immediately following the hurricane and signed several executive orders that eased oil and gas supply constraints, allowing refineries servicing Michigan to immediately increase gasoline production by five percent. After she spoke to the president of a major Michigan refinery to ask that those supply-based savings be immediately passed on to consumers, gasoline pump prices dropped 40-cents the same day at one of the refiner’s major service station chains across the state.

Home Heating Assistance for Low-Income Families

Earlier this month the U.S. Energy Information Administration forecasted that home heating costs for all fuel types will increase this winter by as much as 50 percent. Millions of Americans rely on the Low-Income Home Energy Assistance Program (LIHEAP) and the Democratic Governors strongly support the Reed-Collins-Kerry-Kennedy-Snowe amendment to add $3.1 billion to the program. Federal funding for LIHEAP is currently at the same level it was in 1982. “Energy costs have emerged as the number one issue in Wisconsin. We’re going to double our state’s low-income home heating aid this winter and the federal government should do the same. Real help is needed,” Wisconsin Governor Jim Doyle said.

More than half of the Democratic Governors have innovative programs to extend home heating relief. For example, Illinois’ major utilities have agreed to Governor Rod Blagojevich’s request to waive reconnection fees and suspend deposit requirements for customers receiving LIHEAP benefits. Governor Dave Freudenthal is proposing a “utility sales tax holiday” for Wyoming that could last as long as two years. Beginning next week, New Mexicans will begin receiving state rebate checks as part of a Governor Bill Richardson’s plan to help ease the pain of higher gasoline and home heating costs. Several other Governors, including Governors John Baldacci (Maine), Brian Schweizter (Montana), Brad Henry (Oklahoma) and Mark Warner (Virginia), are working to increase low-income heating
funds.

State Heating and Conservation Programs

More than a dozen states with Democratic Governors have programs to help citizens with winter heating costs and energy conservation. For instance, Governor John Baldacci has launched Operation Keep ME Warm, a publicprivate partnership using volunteer teams to winterize the homes of Maine’s most vulnerable senior citizens. Governor Schweitzer’s Warm Homes Montana program is using the Montana Conservation Corps to weatherize 500 homes around the state. On Nov. 1, Governor Ed Rendell, working with non-profit, religious and labor organizations, is convening the Stay Warm PA Summit in six cities across Pennsylvania to help residents prepare their homes for winter temperatures.

Energy Summits and Regional Consortia

Wisconsin Governor Doyle and Iowa Governor Tom Vilsack spearheaded an agreement between eight Midwestern states to reduce natural gas consumption by one percent annually for five years. Not only will this help lower bills for families, a recent study shows a five percent reduction by the eight states could reduce the cost of natural gas by as much as 13 percent nationally. Governor Baldacci has also initiated a New England regional conservation campaign to collectively address a potentially serious energy problem this winter. Governor Dave Freudenthal has worked with Western Governors to create the “Frontier Line” that will deliver Wyoming resources to consumers across the West.

Earlier this month, Governor Schweitzer convened the Montana’s Energy Future Symposium to begin development of a comprehensive, long-term energy policy for Montana and the rest of the region. Governors Ted Kulongoski (Oregon), Christine Gregoire (Washington) and Freudenthal (Wyoming) joined Governor Schweitzer and energy experts to discuss energy production, renewable energy, conservation, transmission issues, environmental concerns, and other relevant topics.

Special Legislative Sessions and Joint Hearings

Earlier this month, the Governor Richardson special legislative session to provide immediate relief for high home heating and gas costs. Because of this session, real help will soon be on the way to 1.7 million New Mexicans, including working families, low-income citizens, and seniors. Every New Mexico taxpayer will receive a rebate check ranging from $64-$289, an average of $l25. Governor Gregoire also requested state legislators to address the high costs of fuels, emergency preparedness and alternative energy sources and participated in a joint legislative hearing in Seattle on Oct. 20. Louisiana Governor Kathleen Babineaux Blanco has provided testimony to the U.S. Congress on energy supply issue, impacts of infrastructure damage and needed energy policy changes.

Energy Independence Initiatives: Coal

“We’ve all paid the price for lacking energy independence. We pay the price at the pump, when we heat our homes and fuel our factories. The number one domestic need for this country is to develop energy independence,” Governor Rendell said. Dealing with soaring energy prices head-on, Pennsylvania will build America’s first wastecoal- to-diesel conversion plant that will create 1,600 good-paying jobs and produce 41 megawatts of power and 40 million gallons of fuel annually.

In Montana, Governor Schweitzer has championed “synfuels,” the technology to produce gasoline, diesel, jet fuel and other petroleum products out of coal. Liquefaction and gasification are two technologies Governor Joe Manchin wants to explore in West Virginia, another state rich in coal mines.

Renewables: Biofuels, Ethanol, Wind, Solar

Last week Pennsylvania opened the East Coast’s first, state-of-the-art biofuels injection facility in Middletown. The plant will replace 3.2 million gallons of foreign oil with domestically produced biodiesel, and will keep about $6 million worth of energy dollars in the commonwealth. Oregon also promotes the expansion of biomass energy and biofuels, including the development of biodiesel and ethanol production facilities.

Iowa’s ethanol production has more than doubled in the past five years and is positioned to become the nation’s leading producer of ethanol in 2006. Governor Vilsack has also expanded consumer access to E-85 fuel, a blend containing 85 percent ethanol. Wisconsin Governor Doyle supports a plan in the state legislature that would require all gas sold in the state to contain 10 percent ethanol by July 2006. Michigan has approved tax-free “Agricultural Renaissance Zones” to encourage the construction of new ethanol production plants.

Maine purchases 30-40 percent of its government electricity from renewable power. Delaware Governor Ruth Ann Minner and about a dozen other Governors require companies supplying energy to state facilities produce at least 10 percent of their power to come from renewable resources. Governor Kathleen Sebelius has called for Kansas to emphasize increased renewable energy production, one of the goals is for the electric utilities to have a total of at least 1,000 megawatts of renewable energy capacity installed in the state by 2015. New Hampshire Governor John Lynch provides financial incentives for school districts that build more energy efficient and healthier school buildings.

Washington Governor Gregoire has signed the permit for the Wild Horse Wind Power Project, the first major wind farm to go through the state permitting process. Washington also has tax incentives for using renewable energy and for manufacturing solar energy systems or components. New Jersey has been named the “Solar Capital of the Nation” by the national Solar Energy Industries Association for its renewable energy and energy efficient technologies.

Air Quality and Climate Change

Under Governor Janet Napolitano’s direction, Arizona issued the first air quality permit for a U.S. refinery in 20 years – the permit was issued in less than a year from the date of application and is the strongest such permit in the country. The permit takes a strong stand in support of air quality and moves forward the potential for a new U.S. refinery in Arizona.

Governor Gregoire has adopted tough emissions standards for new cars beginning with 2009 model cars, and Governor Kulongoski has also directed Oregon to move toward stricter vehicle emission standards.

In North Carolina, Governor Mike Easley charged the Legislative Commission on Global Climate Change to address the threats of global warming and determine the costs and benefits of various mitigation strategies.

The entire report can be seen here:
http://www.democraticgovernors.org/energy

Copyright & Paid for by The Democratic Governors Association

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