WSPA Priority Issues November 11, 2014 1 Western States Petroleum Association // wspa.org // @wspaprez The Best Of Times… U.S. crude oil production has reached its highest point since 1997, due to production from shale and other tight rock formations, while reducing imports to their lowest level in more than 20 years. American Petroleum Institute 2 The Worst Of 2 - ??mlv?Vkvgi?a' I va :i .. I??53,3 A 3?1: 3 ENEHEY PHIJUIJ The Worst Of 3 ENEHEY FHIJUIJ The Worst Of We need to go stta?;htgn?n?e .?h?mYziua/an?usa?y Bill McKibben 3 ENEHEY FHIJUIJ The Worst Of ENEHEY PHIJUIJ The Worst Of 3 ENEHEY FHIJUIJ The Worst Of Times… The goal here is not to win. The goal here is to destroy these people, we want a smashing victory. Tom Steyer 8 In 2014. WSPA has activated a significant number of campaigns and coalitions that have contributed to WSPA's advocacg goals and continue to respond to aggressive anti-oil initiatives in the West. Each campaign was structured to address specific state or local issues and provide an excellent opportunitg for the petroleum industrg to educate consumers and voters in all of five Western states. WSPA has also invested in several coalitions that are best suited to drive consumer and grassroots messages to regulators and policgmakers. Local Hgdraulic Fracturing Campaigns Californians Against Higher Oil Taxes Concern ed Mineral Owners Of California Californians For nergg Independence Kern Citizens For Energy California Drivers Alliance FueHng California California Fuel Facts Invest Engage Guide Californians Upstream Against Higher Taxes Dow nstrea Washington Consumers For Sound Fuel Policg Save Our Jobs AB 32 Implementation Group Oregonians For Sound Fuel Policy Californians For Affordable Reliable Energg ENEHEY West Coast Climate Change Issues  California  AB 32  Cap-and-trade for stationary sources  Cap-and-trade for fuels (January 1, 2014)  Low Carbon Fuel Standard  Washington  Low Carbon Fuel Standard  Cap-and-trade  Carbon tax  Oregon  Low Carbon Fuel Standard  Carbon tax 10 Upcoming Climate Change Milestones Items and Deadlines frer?n Detelser E?l?r te February,r 2615 OCT Oct 23-24 CARE Heard Heatni: California Press Berletenee- OCT {Jet 21 Draft expected I'et Wadumten OFII Clean Study- IDICT IT Gill! an LEFS Empllal'lce aid Gui-? Earlaltl'nent - DIET 21114 Etta-Hes ?eeting: ?11h Ore-nan EDIE limb-ers- OCT 2411! Hit! DFII Clean Fuels Study Due - Em Hetr 1? Fltal BERT ripe-rt pres-smitten be Sumner hale:- I release - HOV Ill'l-l Jan'l lEallttiil'nla of Fll?l'll: - JMII 2015 Jan 1 New lteptlatlons Int Mandatory Renown Rule. Cap-antl-Tlatle I. C051 Implementation. Follow-mm D1 - JAN 1015 Jan sec Hearing en [treat-n Clean Fuels Pregram - JAH 21115 Jan10 BARB Release? LIFE 45 day review package - JAN 2015 Feb Legislative Sessien?. LEZFS sunset - FEB 11315 Feb Washingten Legislative Session: Ca panel-Trade debate - FEB 11115 Feb 19-20 CARE Board HeaIIn-l ll'l LEFS - FEB 2015 Deadlines are subject te- change. The time-line and mllestenes Included abs-are w1 be Lidia-sited In .Januarj,r 3315-. California items In Ught Ellue. Urey-en Items in Din-it Elna. Items In Green California Climate Change Campaign Engaging Business Allies  Organized coalition activities  CIOMA (Fed Up at the Pump)  IWLA (Tank the Tax)  CAHT  CTA  NFIB  CARE 12 California Climate Change Campaign How Big Oil is using front groups to attack global warming regulations 13 California Climate Change Campaign Engaging Business Allies “To ensure that the program continues to function well, and to avoid a situation in which allowance prices spiral upwards as we approach November 1, 2015, it is imperative to address a number of outstanding design flaws in the program.” “Market design flaws can result — and have resulted — in catastrophic implications for environmental markets around the globe.” 14 Source: Jean-Philippe Brisson, Latham & Watkins, Outstanding Design Flaws in Californians Cap-and-Trade Program, October 16, 2014 California Climate Change Campaign Engaging Business Allies “On December 14, 2011 the Government of Québec adopted the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances. Québec thus became the first Canadian partner to adopt its own regulation, placing it shoulder to shoulder with California..” “57 percent of Quebecers aren’t even aware of the cap-andtrade program for GHG emissions. The program will require Quebec companies that produce or import fuels into the province, to buy credits in a carbon market involving Quebec and California, as of January 1, 2015.” 15 Oregon Climate Change Campaign Engaging Consumers . Oregonlans FOR SOUND FUEL POLICY About Members News Resources Take Action Contact yusr about everything you touch in a grocery store or in a lumber yard gen; [0 you by (ruck. When you start increasing the costs on transporter/0n. [he cosrs wi/Iger passed onro [he consumer.? And; Omens "anspon If Oregonians for Sound Fuel Policy is a coalition of fuel users. consumers and business organizations opposed to the adoption of the proposed Clean Fuels Program in Oregon, also known as a Low Carbon Fuel Standard. 3 ENEHEY 16 17 Oregon Climate Change Campaign Engaging Consumers ENERGY PHIJUII 18 Oregon Climate Change Campaign Engaging Consumers 7ust about eve/yth/ng you touch a grocen/ store or a /umber yaro? gets to you by truck. When you start increasing the costs on transportat/on, the costs get passed onto the consumer. Andy Owens, Transport 3 EHEHEY Andy Owens video pnnun Oregon Climate Change Campaign Engaging Consumers $4 Low Carbon Fue/ Standard.-. wou/d be a d/S/hceht/Ve for compah/es me that are mow/7g the r/ght direct/on, o?o/hg the r/ght th/hg and peha/fze us for do/hg that.? Matt Miller, Oregon small?business owner and ?eet operator nd winner ofthe 2014 Columbia Wiliamette Clean Cities Coalition 3 . . EHEHEY Matt Miller Video P??ul] Washington Climate Change Campaign Engaging Consumers Washington I Consumers FOR SOUND FUEL POLICY About the Issue Members News Resources Take Action Contact Washington Consumers for Somid Fuel Policy is a coalition energy consumers, businesses, community leaders and industry stakeholders committed to representing the interests of businesses and consumers in the debate Over how best to reduce greenhouse gas emissions. C's :5 :0 3.33312: 5"{1 .3. 5.02 ai?f: PIE 73?. YES (16; .5337 3 ENEHEY 20 PHIJUIJ Washington Climate Change Campaign Washington . Consumers LOW CARBON FUEL STANDARI An Infeasible Solution To A Serious Pro I onsumers As adopted elsewhere (California), a Low Carbon Fuel Sta mandates the reduction at carbon inten5ity ol convention l: diesel - as a strategy to reduce greenhouse gas enii55iorr While the coalition supports appropriate and cost effectiv fuel and energy polICies,aLCFS hasbeen shovrn to be an A . that Will likely result in fuel supply disruptions and extra-mt volatility At a time when lob creation and economrc grow i: State should be Olympia's number one focus, regulations No one knows exactly how much a Low Carbon Fuel Standard I address climate change must be carefully consrdered. As cost washing-ran state's economy but the estfmates high.- a LCFS regulation could adversely impact the state's econ Washington State Estimate ?Climate Legislative and Execut SUPPORT FORM: Our Members Include: Work rou (CLEW) Leidos (formerl Scienti?c lications - - - . . . The Egotentit: economichonsequences ofla Corp}, the expert consultanigzs?mate .lOll'i Our Coalition a 05?0" on? ?mp that the cost of gas and diesel fuels would have to increase be A - - A low carbon fuel standard is not read for rime time in Washin ton. AB 32 dated June 2012 and updated in October 2013. It 3093 and $113 pergallon for a State LCFS to Produce results. implemented in Washington State we believe similar Imp: Associated General Contractors occur here at home More detailed Washington State mo LCFS program was identifiec? as one Ofthe "105?: Expenswe You may publicly list our organization as being opposed to a low carbon fuel deveiop de?an .mpaas .n .f a LCFS weret Strategies for redUCing greenhouse 95? emiwons' standard for Washington, and list our group as a member of the Washington Automotive United Trades Consumers for Sound Fuel Polic . r? California Estimate Boston Consulting Group Analysis Th orgamzat'on (AUTO) proposal reviewed by the CLEW appears to be modeled after (Hesse prim] program. The Boston Consulting Group has estimated t] compliance costs there will be between $0.33 and $1.06 per ?Could Put Washingtonls Economyl Businessesl an The Boston Consulting Group (BCG) report determined It would likely result in the closure of up to half of Calilornia National Federation of Independent Businesses In addition the report projected a loss ol 28.000-51.000 jc Washington billion in lost tax revenue to state and local governments analys's also Shows mat ?"959 (0515 to Cl'mb as scarce credits become more expensive and if other states impose sim Pulp Paper A LCFS could create fuel shortages ii luel prowders are l99l5latl?3n- Association the regulation, leavrng them no choice but to reduce fuel I organizatlcm 0T Name competition tor scarce low-carbon biofuels could result in A VEHEFY Of Other 59513 and "17pm have been identi?ed Washington Aggregates 8. costs, which could be passed along to businesses and cor 1?0 3 LCFS- These Concrete Association cost of domg business increases employers are left With i decrsions which can lead to iob loss, greater unemployme Potential loss of manufacturing jobs ECG projected that CU Washington Asphait pavement economic growth. California 5 refinery capacityI as a result of would resu Title Printed Name Associatim loss of 28,000 to 51,000Jobs in that state. This did not include According to a Charles River Associates study, a national potential for job losses in other industries as the result of increi Washington Construction Industry to major compliance costs that could drastically increase i costs or supplyI constraints. Washington State's re?ning industry Council indeed, the study found consumer costs could rise betwe be 5im1 ar y affecte?i within five years of adoption of a national LCFS regulation Washington Food industry ii? Potential loss of tax revenues The ECG report estimated tJ1 Association Po'mmg ?0 the ?will? '"leas'b'l'ly 0f 3 LCFS: wash'"9 and local governments around California would lose $4 billion Assoc'al'on Wamed a 20?0 lem? LCFS 'egulat'ons in tax payments as a result of diat state?s LCFS. Again, criu?cal ti Washington Highway Users cost of consumer products because busrnesses often rely in Washington would be at risk. Federation deliver their goods to market if Potential impact on transportation funding The Washingto my State Washington on Marketers Association has alre-adiiI indicated that its members? support fo Association transportation funding package is waning in light of concern re potential fuel cost impacts of a LCFS and other climate-related Washington Trucking Associations that would liker impact fuel availability and costs. Western States Petroleum in addition to meeting the transportation and other needs of Wash Phone Fax Ema? Association families and businesses, Washington?s ?ve- re?neries support more jobs, create $1.7 billion in economic actnrity, and pay more than 52 Western Wood Preservers in taxes each year. The c0513 ofa state Low Carbon Fuel Standard Institute these economic bene?ts at risk. Authorized Signature. Date Please return the form to Greg Hanon: greg?greghanon.com 22 California Climate Change Campaign Engaging Consumers Put the brakes on the ?Hidden? Gas Tax! On January 1, 2015, California drivers can expect a large ?hidden? gas tax that the California Air Resources Board notes may climb to an additional 76 cents per gallon. For further information, or no SIGN to Stop the Hidden Gas m, visitENEHEY 23 Drivers ABOUT Alliance About The California Driver's Alliance is a nonpartisan movement of motorists, smau businesses, fuel providers and consumers who are concerned about new government-imposed regulations that could increase the cost of gasoline and impact the quality of life for millions of Californians. About the Hidden Gas Tax Campaign On January 1. 2015. the California Air Resources Board (CARB) will expand the state's cap-and-trade program to include gasoline and diesel fuels for the first time ever. This expansion could increase the cost of gasoline from 16 cents per gallon to as much as 76 cents per gallon or more, according to CARB. CARB has made no effort to educate the public about the program expansion or its expected impact on gas prices. In fact. nearly 70 percent of Californians are unaware that it is coming. That?s why motorists. small businesses and consumers are calling this program a "hidden gas tax.? This new gas tax will hurt the very people who can least afford to pay more at the pump working families, small businesses, and lower income consumers. It will costjobs. And it will create a 'Greenhouse Gas Reduction Fund? worth billions of dollars for Sacramento lawmakers to spend at their discretion - with no input from those of us footing the bill California Climate Change Campaign CONTACT NEWS Take Action The cap-and-trade system should not be used to raise billions of dollars in new state funds at the expense of consumers who are struggling to get back on their feet after the recession. Henry T. Perea. EHEHEY California Climate Change Campaign “This program, unless delayed or modified, will have a major impact on California fuel markets and very possibly, consumers. We believe the State has an obligation to Californians to provide widely available, accurate and consistent information.” 24 California Climate Change Campaign SAN DIEGO - California already has the highest gas prices in the nation, and any further increase could adversely impact family budgets, our economy, and small businesses. "Higher taxes, employer mandates, and generally anti business legislation seems to be the only thing that comes out of our elected officials," said Ann Kinner. Ann Kinner is chair of the local chapter of the National Federation of Independent Business. 25 California Climate Change Campaign “From our analysis, we anticipate a 76 percent likelihood of allowance prices adding around $0.10 per gallon of gasoline in 2015 and around $0.12 per gallon in 2020 (both in 2012 dollars). Here, allowance prices would be near the Auction Reserve Price (ARP). This would cause net job losses in California of 18,050 jobs in 2015 and a net reduction in economic output of $2.940 billion as households across the state cut back their spending to afford higher priced gas.” 26 Washington Climate Change Campaign Engaging Politically (Forthe?rst timein 26 yearsthelegislaturedid notincrease Keep'"g C??ege M?re Aff?r SENATOR DOUG ERICKSEN, (Over $1 Billion morewas invested inour K-12education $1 Billion More For Public the right path with a (And Senator Ericksen sponsored legislation requiring oilcompanies usingtrains that oilthrough 0 Washin ton State to a for oil 5 ill revention. re aredness communities and our environment. (SB 6567) not rely on tax increases. We need more leaders like Doug Ericksen, who are focused on solving our state's problems and creating new job opportunities so everyone can prosper in Washington State. 7W you, Sandal? Thankyou, SENATOR DOUG ERICKS Pald for by Enterprise 1603 116thAvenueNE,Sulte120 Bellevue, WA 98004 Cz? Sena/60%, Doug etickuhvat (360) 786?7682 and THANK HIM for fighting for a better future for Washington. ENEHEY 28 California Climate Change Cam ai Engaging Politically son 1 . January ldden gas tax! 9 Ail Resources Board says regulations could add a. . .I . ?y . Stop the Hidden Gas Tax! he Au Resources Bould (CARB) has Ielused to hold any Theanngs to allow those Impacted by a January 15! Hidden Gas Tax to be heard Why are Cahlomla dnvexs and other fuel consumers being shut out? Call the All Resources Board at (800) 242-4450 and demand that 011's costly regulation be delayed until Cahlorma duvets have lhe opponumly to be heard' -- 3 ENEHEY Drivers mm. California Climate Change Campaign Engaging Politically I. 3.4 WM ?ll?a/ike Gipson for pledging to protect California families from new, hidden gas taxes. Tell Dickinson to sto; Um. Er; California Drivers Alliance P. 0. Elm 160534 US Postage- . . Sacramenbl CA 95816 PAID 3 ENEHEY 29 30 Oregon Climate Change Engaging Politically Campaign . Take Action Now Ask your legislator to oppose the hidden gas tax! Join the conversation on Facebook Follow us on Twitter Together, we can stop them. Al TAKE ACTION NOW: Ask your legislator to oppose the hidden gas tax! Politicians in Oregon are considering a Low Carbon Fuel Standard (LCFS), otherwise known as the Clean Fuels Program. If implemented, tax designed to increase your cost of fuel. These policies hurt poor and middle income families the most. And because these policies are not transparent, consumers often have no idea why their fuel costs are rising. Gov. Kitzhaber has made it clear he plans to move forward with a LCFS even without the support of the state?s elected legislators. Oregonians FOR SOUND POLICY it will become a new hidden gas 3 ENEHEY PHIJUIJ ENEHEY PHDIJIJ EV