Republican Governors “All of the Above” Energy Strategy

1. Republican Governors “All of the Above” Energy Strategy Marie Sanderson Policy Director Republican Governors Public Policy Committee

2. Jobs, jobs, jobs • Manufacturing Renaissance? • Natural gas has catalyzed a renewal of chemical manufacturing in the United States. The U.S. has a competitive advantage in producing products such as petrochemicals which use natural gas-derived resources as raw materials. • Fueling our “All of the Above” energy strategy • Governors Mary Fallin (R-Ok) and John Hickenlooper (D-Co) have spearheaded a bipartisan MOU between 12 states to encourage the development, manufacture, and purchase of NGV for state fleets.

3. Governors leading the way • VA: This month, Governor Bob McDonnell ceremonially signed 13 pieces of legislation that will advance Virginia as the "Energy Capital of the East Coast". • ID: Governor Butch Otter announced in October that the Center for Advanced Energy Studies (CAES) during the past year provided Idaho taxpayers with an 11-to-1 return on their $1.6 million investment in the partnership – a rate most investors would envy.

4. Governors leading the way NJ: On December 6, 2011, Governor Chris Christie released New Jersey’s final 2011 Energy Master Plan (EMP) which strategically balances the development of new sources of clean energy, including natural gas, with renewables OK: In Nov, 2011, the Oklahoma Energy First Plan was released which fosters economic development, transitioning transportation fuels, & optimizing the existing energy system

5. Governors leading the way TX: In June 2011, Governor Rick Perry signed Senate Bill 20, most commonly known for containing legislation to implement what has been termed the “Texas Clean Transportation Triangle UT: In 2010, Governor Herbert appointed the Utah Energy Task Force to develop a 10 year strategic energy plan.

6. Governors leading the way MS: Back to back Republican governors who consider energy policy as a HUGE component of economic development and job creation. MS embraces oil, gas, nuclear, coal renewables, and efficiency,

7. Governors leading the way With natural gas resources in 48 states, fracking regulatory authority resting with the states, and technological innovations; state policymaking is more important than ever.

8. Regulatory Concerns States are concerned about the overburdensome regulations from EPA MS, TX, LA, AK, and VA continue to be concerned about this Administration's offshore drilling policy

9. State Regulatory Developments Several states have developed innovative policy solutions in anticipation of potential challenges: • Pennsylvania: In February, Governor Corbett signed legislation which governs the extraction of natural gas in Pennsylvania . The Legislation allows municipalities to levy impact fees dictated by a sliding scale based on natural gas prices. The law also expands environmental regulations including increased penalties and setbacks from waterways as well as fracking chemicals disclosure.

10. State Regulatory Developments, Wyoming: Wyoming has rules that address flowback water, require the disclosure of fracking fluid ingredients and apply on federal, state, and private lands. Texas has laws which require disclosure of most fracking chemicals but allows drillers to withhold information about certain chemicals if a company views them as proprietary.

11. Conclusion Natural gas is a game-changer for the United States and Republican Governors are leading the way in ensuring we take advantage of this domestic resource. However, we recognize the importance of gas in any energy portfolio and are working to ensure reliable access to affordable, abundant, American gas.