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Allegheny Institute for Public Policy: Regional Greenhouse Gas Initiative is wrong for PA
The following is a Policy Brief issued last week by the Allegheny Institute for Public Policy.
 
Summary.Governor Tom Wolf has announced plans to have Pennsylvania join the Regional Greenhouse Gas Initiative (RGGI). He wants to use the proceeds from its cap-and-trade program to fund his $4.5 billion "Restore Pennsylvania Infrastructure" initiative. But Wolf 's desire to join RGGI seems to be more about imposing a carbon tax and little to do with actual environmental concerns. A closer look at RGGI reveals that the cooperative is more of a taxing entity and less of the environmental proponent it claims to be.
 

 
 The RGGI is the first mandatory "market-based" program in the United States to implement a cap-and-trade regimen aimed at decreasing greenhouse gas emissions. Initially 10 states-Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, Vermont and New Jersey-joined in January 2009. New Jersey left the cooperative in 2011 but will rejoin in 2020. The RGGI sets the emissions cap for all states within the cooperative.
 
RGGI rules require fossil-fueled electric power generators with a capacity of 25 megawatts (MW) or greater to buy allowances equal to their carbon dioxide emission caps. RGGI Inc., the group responsible for overseeing the program, determines the cap and each plant must purchase allowances to equal its carbon dioxide emissions over a three-year compliance period. Each state sells the emissions allowances via auctions and is supposed to invest the proceeds in energy efficiency, renewable energy and other consumer-benefit programs. Currently, 165 facilities are governed by RGGI emissions allowance rules.
 
RGGI has several key features: three-year compliance periods, emission allowances, emissions auctions and cost-containment procedures. Each state is responsible for ensuring compliance. RGGI Inc. has no enforcement powers.
 
The specific carbon dioxide cap is in place for a three-year period. The goal is to offset price fluctuations caused by short-term market volatility. RGGI distributes 80 percent of allowances at quarterly auctions. Each state is responsible for implementing these auctions.
 
RGGI mandates a price floor for the emissions allowances. It determines the lowest price that an allowance can be sold for (i.e. in 2008 the price floor was $1.86 per allowance; in 2019 the price floor was $2.26 per allowance). RGGI permits emission allowance banking, allowing facilities to save allowances for future use in order to prevent potential allowance price volatility. Facilities are also able to sell their unused allowances on secondary markets.
 
However, in 2014 a cost-containment program was established so that reserve allowances can only be sold if the prices exceed the predefined price levels. In effect, the facilities are only able to sell if emission reduction costs are higher than projected. Each year the cost-containment reserve price will increase by 2.5 percent through 2020.
 
This is anti-market at best.

M2M 2019: Competitive Energy for Sustainable Growth
Organized by PIOGA's Market Development Committee, this year's Marcellus to Manufacturing end-use conference is chock-full of presentations from influential and tactical subject matter experts on energy policy, projects, economics and analytics. The program is intended to open discussions that willassist participants in forming long term strategic energy considerations for their company.
 
The event takes place on Thursday, November 7, at the Energy Innovation Center in Pittsburgh. Additionally, on Wednesday the 6th there will be free educational workshops for conference registrants (more below) and a welcome reception.
 
M2M is for commercial and financial decision makers and the professionals who support them: energy buyers, project managers, engineers, plant managers, legal professionals, economists, business agents, government affairs experts and business development professionals.
 
Among the presenters are House Speaker Mike Turzai, who is expected to discuss the Energize PA legislative package and the governor's Regional Greenhouse Gas Initiative; Kevin Sunday of the PA Chamber of Business and Industry talking about navigating the complex and changing policy environment; Denise Brinley, executive director of the Department of Commerce and Economic Development's Office of Energy addressing "Pennsylvania is Open for Business"; Allegheny County Executive Rich Fitzgerald on Development at the Pittsburgh International Airport; and many others on topics ranging from the Appalachian Storage and Trading Hub to an energy buyers roundtable to power generation and supply.
 
Wednesday workshops. Those registered for the conference, also can attend Wednesday afternoon educational workshops on lessons learned from a project converting a marine vessel to LNG; the societal costs of opposing energy infrastructure; partnering to support jobs in energy and advanced manufacturing; and an update by Peoples Gas on natural gas vehicle adoption and combined heat and power projects. A welcome reception will cap off the day.

Be sure to visit the event page for complete details - including sponsorships and a small number of exclusive vendor table opportunities. Seating is limited, so don't put off registering!
PIOGA online Buyers Guide opportunities
PIOGA is pleased to partner again with Strategic Value Media to produce the 2019 edition of the PIOGA Buyers' Guide, the premier resource of relevant products and services for oil and gas professionals. Like the 2018 version, the 2019 edition will feature updated and expanded company and product listings, in addition to other valuable information relating to the oil and gas industry. The Buyers' Guide provides users with an efficient way to browse for goods and services and offers companies exceptional visibility by showcasing their products and services to a targeted, industry-specific buyer group.

All PIOGA Service Provider and Professional Firm members receive a complimentary listing in the guide with the PIOGA logo to indicate your company is a member. Contact Strategic Value Media to discuss other options of getting your business more visibility in the Guide. Click here to view all the categories.

The Buyers' Guide is accessible through the PIOGA website and will be updated soon. We encourage you to take advantage of this exceptional opportunity to highlight your products and services in this online guide. To learn more about advertising your products or services, email pioga-advertise@svmmedia.com.

A representative from Strategic Value Media may contact you by email or phone to inquire if you want to enhance your listing in the Buyers' Guide. Please know this is a legitimate call and that SVM is partnering with PIOGA to provide our members this resource for advertising your products and services.
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The Power of PIOGA: How to add value to your membership
Two years ago, we put together a packet of information that we called "What has PIOGA done for you? What can PIOGA do for you?" The packet was mailed to all members and included information about the many things PIOGA is involved with and how companies can add value to their membership by participating in committees, attending events and other means.

We have just finished updating the packet and have refocused it somewhat as a member-recruitment tool to let companies know about the advantages of PIOGA membership. It's now called "The Power of PIOGA - Influence, Information, Ideas: Why Membership Matters." We still think it's still a must-read for members too. You can find an electronic version here on our website.

We encourage you to share the link with prospective members, or provide us with their name and address and we will be happy to mail them a hard copy.
Events

10/30/2019
PIOGA Ghoulish Gathering

11/6/2019 » 11/7/2019
2019 Marcellus to Manufacturing Conference

11/21/2019
2019 Oil & Gas Tax and Accounting Seminar

PIOGA News


PIOGA Ghoulish Gathering Halloween Networking Event. Interested in a bit of Halloween-themed fun? You won't want to miss our next networking event on Wednesday, October 30, at Maggies Farm Run Distillery in Pittsburgh. It will run from 6-9 p.m., and those who attend in costume will be eligible for a delicious surprise! Space is limited, so don't procrastinate. Details, registration and sponsorship opportunities are available here.
 

 


Still available: PIOGA Centennial knives. As part of PIOGA's celebration of 100 years of working together on behalf of Pennsylvania's crude oil and natural gas industry, we  commissioned a commemorative knife from W.R. Case & Sons Cutlery Company. The limited edition, collector quality knife and wooden display box feature PIOGA's 100th Anniversary logo. It's a great collector's piece and also makes a unique gift for coworkers, industry colleagues and petroleum history enthusiasts. Order yours now!

 

 

2019-2020 Membership Directories Now Available!  All members should have received one copy per location in the mail. If you would like to order additional copies for $10 (to cover fees for the directory and shipping) please click here to order.