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Bipartisan Policy Center Energy Project

Bipartisan Policy Center Energy Project. December 14, 2011. Overview of BPC and BPC Energy Project Current energy landscape Near and medium-term energy drivers. Founded in 2007 by former Senate Majority Leaders Howard Baker, Tom Daschle, Bob Dole and George Mitchell .

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Bipartisan Policy Center Energy Project

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  1. Bipartisan Policy Center Energy Project December 14, 2011

  2. Outline • Overview of BPC and BPC Energy Project • Current energy landscape • Near and medium-term energy drivers

  3. What is the bipartisan policy center (bpc)? • Founded in 2007 by former Senate Majority Leaders Howard Baker, Tom Daschle, Bob Dole and George Mitchell. • BPC is the only Washington, DC-based think tank that actively promotes bipartisanship . • We work to address the key challenges facing the nation. Projects include Energy, Housing, Health, National Security, Debt Reduction, Transportation, and Economic Policy. • We develop policy solutions through rigorous analysis, reasoned negotiation, and respectful dialogue. • We combine politically-balanced policymaking with strong, proactive advocacy and outreach.

  4. Overview of BPC’s Energy Project • Energy Board • Co-chairs: Former Senators Trent Lott and Byron Dorgan, former National Security Advisor General (ret) Jim Jones, and former EPA Administrator William Reilly. • Board (18 members) includes industry executives, scientists, former government and elected officials, economists, environmental representatives and labor leaders. • Will issue major energy policy report in late 2012. • Energy Project Staff • 8 professional staff. • Support Board’s efforts. • Facilitate other activities lead by bipartisan teams. • Conduct staff-level analysis on range on energy topics.

  5. ENERGY project 2012 and 2013 goals Energy Policy. Reframe the national energy policy. Natural Gas. Assess full impacts of expanded U.S. natural gas production. Nuclear Energy. Develop policy options for nuclear energy. Energy Incentives / Subsidies. Examine effectiveness of energy incentives/subsidies. Electric power and Grid. Develop options to improve reliability of the electric system. Innovation in Energy. Expand BPC’s energy innovation policy analysis.

  6. Current energy landscape / Policy Related issues • Natural Gas: Abundant gas supplies; low prices. • Will it last? To what effect on U.S. energy mix? At what cost? • Can states and industry address environmental concerns? • Petroleum and liquids: U.S. output up; imports as % of energy demand down (recession + efficiency); imports from “friends” up; prices high. • Outlook for prices? How to achieve prices stability? • Can U.S. further reduce dependency on oil? • Coal: Abundant; relatively cheap; output down slightly; exports up; declining as percent of U.S. power generation . • How is coal responding to regulatory challenges, aging infrastructure? • Will U.S. fund clean coal projects? • Renewables: Share of power generation small but growing; prices falling. • Will this trend continue w/o government support? • Energy Demand: Slow (partly recession related; partly due to structural change and efficiency). • Is U.S. prepared for post-recession (U.S. and global) demand growth?

  7. NEAR TERM energy policy DRIVERS • Reduce debt; stimulate economy; create jobs; spur long-term economic growth • Implies less funding for science, R&D, grants, infrastructure investments • All energy incentives/subsidies at risk • Continued discussion on appropriate role of government in energy. • Subsides / tax incentives / loan guarantees • Role of private /public sector in developing and deploying new technologies • EPA regulatory calendar • Cross State Air Pollution Rule (Transport Rule): Final 7/11, reconsidered • Air Toxics Standards (Utility MATS): Proposed 3/11, Final expected 12/16/11 • GHG New Source Performance Standards: Proposal expected early 2012 • Cooling Water Intake §316(b): Proposed 3/11, Final expected 7/12 • Coal Ash: Proposed 6/10, Notice of Data Availability 10/11, Final TBD • Industrial Boiler MACT: Final expected 4/12. 12/2 EPA released the re-proposed Industrial Boiler MACT. • All can affect compliance costs and end-use prices, and raise reliability concerns.

  8. Medium term DRIVERS • Increasing GHG emissions. • Increasing global competition for transportation fuels and electric power. • Maintaining R&D and innovation edge to provide low-carbon, reliable and relatively cheap energy.

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