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Renacci lauds LMRE members grassroots efforts
4/30/2012 4:11:45 PM
Congressman Jim Renacci believes the U.S. EPA regulations are “over-reaching” and groups like Lorain-Medina Rural Electric Cooperative’s Co-op Owners for Political Action® must remain committed in voicing their views to curb “job-killing” initiatives such as cap and trade.
Congressman Jim Renacci believes the U.S. EPA regulations are “over-reaching” and groups like Lorain-Medina Rural Electric Cooperative’s Co-op Owners for Political Action® must remain committed in voicing their views to curb “job-killing” initiatives such as cap and trade.
Rep. Renacci, who serves the 16th District in LMRE’s service territory, spoke to approximately 75 members and guests of the ACRE Co-op Owners for Political Action (COPA). Approximately 250 have joined LMRE’s COPA, a branch of the Action Committee for Rural Electrification (ACRE), the Political Action Committee for the nation’s electric cooperatives. Many LMRE members have $2.08 applied to their monthly bill to cover the $25 annual membership fee.
Currently, LMRE’s service territory is represented by four Congressional districts. Renacci represents about 35 percent of LMRE members in Medina and Wayne counties.
U.S. Rep. Marcy Kaptur (District 9) of Toledo serves Lorain County in LMRE’s service area and represents about one-half of the cooperative’s service area. She addressed LMRE’s COPA in 2011.
U.S. Rep. Bob Latta’s district (District 5) includes northern Ashland and Huron counties and represents about 15 percent of LMRE’s service. U.S. Rep. Betty Sutton of District 13 serves a small percentage of LMRE members in Lorain and Medina counties.
General Manager Markus Bryant summarized the COPA mission. “We are nonpartisan, but we aggressively focus on and promote issues important to the cooperative and its members. We work with friends in both parties. And occasionally, we have disagreements with members of either party depending on the issue.
“Affordability is a very big issue to us, since our members use about 40 percent more electricity per home than the typical city residence. We are in a long fight to keep rates affordable in the face of expanding EPA regulations.”
Bryant provided members with an overview of key energy issues affecting cooperatives today. (See article below.)
Renacci believes EPA regulations are over reaching.
“That’s why it is so important to have all of you who have come together because of what government’s over reach is doing.
“What you have to do is to start voting out the people who aren’t representing you. You have to get more involved.
“With all of you working together we can make a difference in the energy sector. We can make a difference in the direction this country is going, but we have to work together, that’s why it’s so great to have a group like yourself that is committed to doing that and understands that we can’t go down the path of cap and trade. As long at there is a Republican house there will never be cap and trade that will rise its head up again.”
Many LMRE members enrolled in COPA when cap and trade was passed in the House in 2009.
“Cap and trade was a job-killing bill,” Renacci said. “I said this two year’s ago in the campaign and I would say it today. Any congress person in Ohio who voted for cap and trade never should have the right to go back to Congress.”
He said 88 percent of Ohio’s energy production comes from coal. “If you think about it, they violated the number one thing they should be doing— serving the state of Ohio and their constituents in Ohio.”
He added, “We should never be attacking coal or fossil fuel.
“If regulations force carbon based energy prices to rise, other alternatives will be sought. The problem is we have too much of a supply in Ohio, especially when it comes to coal and now natural gas.
“Independent groups estimate new rules regulating mercury emissions will increase costs between $70 to $200 billion annually. Those costs will result in higher energy costs to consumers and businesses and less being produced.”
Renacci supported a bi-partisan bill that blocks the EPA from regulating coal ash as hazardous waste, an issue that gained attention after a 2009 spill at a Tennessee Valley Authority plant. The bill is now in the Senate.
He believes the states are better suited to regulate coal ash than a blanket mandate from the federal government. He said coal ash is a valuable resource in construction materials such as dry wall. Approximately 45 percent of all electric utility coal combustion residuals are recycled for beneficial purposes. He added these proposed regulations puts jobs at risk.
Renacci is excited about natural gas exploration in Ohio. “With the improvements of the process of extracting natural gas, Ohio has an opportunity to become a major player in domestic energy. Increase in natural gas production would of course come on top of an already massive supply of coal, which can now be burned more cleanly and efficiently than at any time in history. Several companies are looking into northeast Ohio to tap into the Marcellus Shale formation, one of the largest natural gas reserves in the world.
“They say the natural gas reserves underneath us are as great if not greater than what Texas has. That is such an opportunity for us here in Ohio. This means more jobs in Ohio, more domestic energy for Americans, which is really a key.
“New employment would come from natural gas wells themselves, but even in the steel mills. Look over to what is going on in the Youngstown area, things are starting to boom. The Ohio steel industry and the energy sector have such great opportunities.
“In Ohio we should very cautious not to be attacking coal, natural gas and oil which are really some of our greatest assets.”
Co-ops seek support on key energy issues
Coal ash regulation: The House passed HR 2273 (Rep. McKinley RWV). The Senate needs to act on the issue. By-products from burning coal have many beneficial uses. The coal ash pond spill in Tennessee in 2008 caused EPA to change course and regulate ash as a hazardous material. The cooperatives are asking Congress to tell EPA to classify coal ash as non-hazardous to save jobs and keep operating costs down.
Rural Utilities Service funding: Each year since fiscal year 2008, Congress has approved a $6.5 billion loan level for the RUS Electric Loan program. This loan level has not cost the federal government a single cent over that time, since the interest on the federal borrowing rate is less than the rate on RUS outstanding loans. In 2010, the RUS program earned $53.456 million for the U.S. Treasury. Electric cooperatives and RUS are careful when it comes to loan management, resulting in an excellent loan payment repayment record.
The president’s budget for Fiscal Year 2012 recommends a $6 billion loan level, which is an improvement over past budgets. However, the proposal would restrict lending on $4 billion of the total to his priorities on renewable-related or carbon sequestration projects. While some electric cooperatives are in need of financing for these specific purposes, locally-driven business decisions, not Washington, D.C., should determine what type of projects are constructed.
