LP Gas, November 2011

COLUMNIST LISA BONTEMPO Touchy subjects Growing energy issues giving rise to heated political debate W hile energy issues have not generally been leading the headlines across America there are several issues within the energy debate that illustrate the current state of our countrys political debate It would be hard not to have some recognition of the Solyndra issue Solyndra is a solar company held up by President Barack Obama as a symbol of clean energy and green jobs something he staked a great deal of political capital upon and to which he pegged future job growth This manufacturer declared bankruptcy after having received a loan guarantee from the federal government for 535 million leaving taxpayers on the hook for the loan The issue has become a lightning rod for Republicans who are accusing the White House of approving the loan based on political decisions and accusing the Department of Energy of underestimating the companys financial outlook While not a death knell for renewable energy policy the renewable energy interests are smarting from this one The Solyndra issue is keeping Reps Fred Upton R Fla chairman of the Energy and Commerce Committee and Cliff Stearns R Fla chairman of the Oversight and Investigations Subcommittee working overtime This growing scandal also raises a question Is the federal government capable of and should it be in the business of acting as a venture capital enterprise The issue goes to the heart of the debate between Republicans and Democrats Can a green economy produce jobs to propel our economy and should the government be in the business of Renewable energy interests are smarting from the Solyndra issue trying to pick winners and losers when it comes to competing technologies The second storyline is the Keystone XL pipeline This Canadian project to bring heavy crude oil from Canadas oil sands to the United States Gulf Coast refineries has drawn clear and deep political lines in this country The president is alienating some in his party who see the pipeline project as an environmental disaster waiting to happen Other Democrats and Republicans are touting this project and other energy investments in deepwater drilling and hydrofracturing of shale gas supplies for the potential for thousands of jobs a positive economic impact and stronger energy security While these far apart lines of political thinking are not new the presidents Council on Jobs and Competitiveness has shown support for the project The Department of State is reviewing the project too and some environmental groups have made accusations that the department is biased based on emails between department staff and representatives of TransCanada Corp Even though jobs and the economy are the recurring presidential campaign themes the greens and environmental policy makers are growing more and more disappointed in the president A third energy issue represents the challenge we have in preserving our safety net programs while addressing our budget challenges Programs like the Low Income Home Energy Assistance Program LIHEAP may get a lot more attention than normal Octobers Winter Fuels Outlook published by the Energy Information Administration projects average household heating expenditures for natural gas propane and heating oil will increase by 3 percent 7 percent and 8 percent respectively this winter compared with last winter In this difficult economy those potential cost increases especially for those on fixed incomes can be devastating For LIHEAP the challenges come from all sides The pending appropriations bill cuts funds for the program for the next fiscal year at the same time the program is under the microscope of Congress Super Committee which is charged with coming up with 12 trillion or more in federal spending cuts over the next 10 years To make matters worse if the Super Committee fails to come up with a plan that gets enough committee votes or if Congress fails to vote in support of a particular plan nearly all federal programs are subject to a 2 percent cut beginning in 2013 Either way LIHEAPs beneficiaries may feel a real impact These scenarios raise the question of what is a safety net program and how do we judge one against another in making these difficult decisions LPG Lisa Bontempo was a longtime energy lobbyist including 13 years with NPGA She remains involved in national politics and can be reached at lisabontempo@ msn com 44 LPGas November 2011 www LPGasmagazine com