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

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.

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. Will talk about Republican governors goal to lead. The importance of having an energy strategy. Republican governors are leading in many ways. The next few slides will indicate where we are leading. I will be getting more talking points from VA and ID

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 Getting more talking points from NJ and OK

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. Getting more talking points on TX and UT

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,

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.

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 How detailed do I get here? Need to do some research regarding how far we go.

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. Governor Corbett serves as our Energy Committee Vice Chairman at the RGPPC.

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. Governor Mead has been very active on energy issues and serves as the Energy Policy Chairman for the RGPPC. Governor Mead speaks for our caucus when he recently wrote to Secretary Salazar about proposed new rules for fracking on Federal lands, saying that “…layering of federal rules on top of existing state rules is unnecessary, burdensome, and unreasonable.” http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6185660

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.