PubPol481 Policy Briefing 4-9-13

Doug Kripke

TO: Robert P. Casey, Jr. (Democratic US Senator from PA)

Since announcing the plan for an Energy Security Trust in his 2nd inaugural address, Obama has been actively pursuing the

idea, and it will likely come to a vote in the next year. The Trust will be invested in clean and renewable energy

technologies while being funded by natural gas and oil revenue. While natural gas is much cleaner burning than coal and

oil, it is not a renewable source of energy and its environmental harm stems from the associated front end processes

(drilling and refining). Also, the decision of building the Keystone pipeline is currently unresolved, but if it is approved it

will mean an increase in our energy dependence as a nation on oil from non-environmentally friendly tar sands.

Considerations on the Energy Security Trust must be made with this taken into consideration. As a nation we need to meet

our increasing energy demand while reducing emissions and protecting other resources such as our drinking water. With

the recent exploitation of natural shale gas in the Marcellus Shale, Pennsylvania is projected to become the energy capital

of our nation. As a key player in the United States energy future, our energy stance will be highly influential, and so

careful contemplation of the Energy Security Trust must occur.

The beauty of the plan is that it links the problem to the solution. The greater the success of oil and gas, the greater the

funding for oil and gas alternatives, and hopefully the quicker our dependence on them will be minimized. Most recent

data show the increased revenue from natural gas will allow $2 billion dollars to be added to the trust over ten years

without hurting its further expansion and finical viability. Should the Keystone pipeline project be approved, the Trust

would serve to accelerate the development of alternative energy technologies. Yet, one must be careful with this way of

thinking. The Energy Security Trust should not be used to give a free pass to irreparable environmental damage. There is

a finite amount of damage to our environment that we are approaching that if we succeed will greatly impair the livability

of our planet. With the budget sequester, scientific funding has been cut, and the Trust will help to turn this around.

Alternative solutions have proposed a tax hike to fund renewable energy research; however, the amount of money obtained

as a result as well as public approval would be significantly less. Furthermore, results of the investment are not a guarantee.

It is possible that the increased funding would yield fruitless results, and thus the money will have gone completely to

waste.

When it comes to pass, you should fully support Obama’s Energy Security Trust. Most importantly, the figures show that

the revenue taken from Marcellus shale natural gas development will not hinder their expansion. Pennsylvania will still

become the energy capital of our nation, and we will enjoy the resulting economic stimulus regardless. Your recent

legislation, the Natural Gas Energy and Alternative Rewards Act, will help integrate natural gas into our transportation

energy profile. You have long supported cautious natural gas development to both protect the environment, encourage job

creation, and reduce foreign energy dependence. With all your support of the natural gas industry, you could additional

make the claim of supporting the renewable energy development if you vote in favor of the Energy Security Trust. This is

because all of your help in expanding the natural gas industry, which is considerably more environmentally friendly than

the oil industry, will indirectly lead to increased alternative energy research and development.

Sources:

“Casey Introduces Legislation to Boost Pennsylvania Natural Gas Industry.” 22nd March, 2013. Robert P. Casey, Jr.

<http://www.casey.senate.gov/ >

Johnson, Theodore R. “Trust Our Energy Future.” 28th March, 2013. The Hill. <http://thehill.com/blogs/congress-

blog/energy-a-environment/290823-trust-our-energy-future>