The Politics of Energy Delivery: Public need meets environmental impacts and private costs

1. The Politics of Energy Delivery: Public need meets environmental impacts and private costs National Farmers Union Jeremy Peters February 16, 2012 The Politics of Energy Delivery

2. The Politics of Energy Delivery

3. NFU In the States The Politics of Energy Delivery

4. NFU’s Mission To advocate for the economic and social well-being, and quality of life of family farmers, ranchers, fishermen and consumers and their communities through education, cooperation and legislation. NFU advocates sustainable production of food, fiber, feed and fuel. The Politics of Energy Delivery

5. Agriculture and Energy Development • Unique Nature of Agriculture • Immediate Concerns • Long-term Concerns • NFU perspectives The Politics of Energy Delivery

6. Unique Nature of Agriculture • Production agriculture – row crops – livestock – fruits and vegetables – dairy – all rely on fundamental natural resources to maintain economic productivity and viability. • Soil Health • Water Availability • Climate (mother nature) • Must be kept in appropriate balance • What are 5-year, 10-year, 50-year needs? The Politics of Energy Delivery

7. Unique Nature of Agriculture • Any resource development on agriculture lands must recognize these fundamentals. • Fossil fuel development (gas, oil, coal) • Renewable energy development (wind, solar, geothermal) • Transmission (lines, pipelines) The Politics of Energy Delivery

8. Farmer Perspective: Immediate Concerns What are immediate impacts to my operation: • How long will land be out of production? • How do farmers maintain production levels? • What compensation is being provided? Will it provide against losses incurred? Is it a one-time payment or annual payment? • When land returns to production, will it be as productive? • Will infrastructure development render some acres unusable? • How long until soil health is restored? • Is there an impact to water availability? The Politics of Energy Delivery

9. Farmer Perspective: Medium Term Concerns What are the medium term impacts to my operation: • How frequently will maintenance be done on the resource development? • How often are trucks/equipment going to be disrupting production? Damaging soils? • Liability? • What if an employee is injured/killed on my property? • Accidents happen, what then? • Spills, lines down, other infrastructure damage • Who is responsible? What is the plan for clean up? What will that mean for production? The Politics of Energy Delivery

10. Farmer Perspective: Long Term Concerns Long term considerations: • In what state am I passing the farm on to kids/grandkids? Do they need to inherit my bad decisions? Can I offer them additional financial security by providing other forms of income from energy? • Are easements single use or does that mean other development (more lines, pipelines, turbines, etc..) can be sited on my property? • How long will the infrastructure be present on property? 30 years, 40 years, 50 years? Permanently? • When will the infrastructure be decommissioned and what happens then? What are the plans for reclamation? The Politics of Energy Delivery

11. What are non-starters? • Loss of Economic Competitiveness • All other land uses are secondary to agricultural production • Eminent Domain • Will generate the most vehement backlash from the agriculture community • We are a nation founded on the principle of private property rights • Bribery Tactics The Politics of Energy Delivery

12. NFU Perspective on Keystone XL • DEIS on original proposed route was inadequate • Alternatives were not sufficiently considered • Permit on basis of original proposed route was not in national interest • Supported President in denying permit The Politics of Energy Delivery

13. NFU Perspective on Community Wind • Local Benefits of Community Wind • Economic development and job creation potential stays in local and rural areas. • Profits from CW projects are put back into the U.S. economy • Less transmission requirement • Job multiplier 2.6 times as many jobs and 3.1 times as much economic benefit as wind projects with outside ownership The Politics of Energy Delivery

14. NFU Perspective on Biofuels • NFU seeks 25 percent renewable energy by 2025 • We have a choice—fossil fuels or transition to ethanol and advanced biofuels • Advanced biofuels coming to market, largely because of ethanol The Politics of Energy Delivery

15. The Farmer’s Share • Farmers receive on average just 15 cents of every dollar consumers spend on food • Off farm costs including marketing, processing, wholesaling, distribution and retailing account for more than 80 cents The Politics of Energy Delivery

16. Food and Energy Prices • The cost of transportation, manufacturing and packaging of food goes up as the price of oil goes up The Politics of Energy Delivery

17. Larger Context • Farmers must feed a global population of 9 billion by 2050 • Food security is an issue of national security • Nations must be able to feed themselves • Food crises around the world i.e. Greece, Egypt • U.S. agriculture system is the envy of the world • Strongest part of U.S. economy • Exports resulted in over $3.1 billion trade surplus in 2011 (USDA) The Politics of Energy Delivery

18. Questions? National Farmers Union 20 F St. NW, Suite 300 Washington, DC 20001 202-554-1600 jpeters@nfudc.org The Politics of Energy Delivery