America faces significant energy and environmental challenges that necessitate a transformation in our policies and practices in these areas. Among these challenges are extreme price volatility in the oil and natural gas markets, costly electricity reliability issues, ever-increasing dependence on oil from unstable foreign nations and mounting environmental concerns, such as global climate change. Additionally, the United States economy depends heavily on the consumption of fossil fuels to produce energy. The burning of fossil fuels is one of the largest sources of carbon dioxide and other greenhouse gases that  cause climate change. The country is in the midst of an ongoing national dialogue regarding climate change and how to address the nation’s greenhouse gas emissions without jeopardizing national or regional economies.   

Within our federalist system, states have responsibility for the following areas:  land use planning; environmental protection; implementation of national clean air policies, public health and safety; and natural resources conservation and management. Because of their purview in these areas, many states are implementing or participating in initiatives to address greenhouse gas emissions. Successful development of national energy policies requires the active participation of state and local governments and must be flexible enough to allow for regional differences and diversity among states. In addition, any national greenhouse gas program must be informed by and recognize state-based activities, support their further development and not preempt or dilute their effectiveness.

NGA Position

Governors support using a variety of resources and tools to promote our nation's energy security while protecting its environment and addressing climate change. To begin, governors continue to promote the expansion of alternative fuels while moving toward the goal of life-cycle greenhouse gas reductions and being mindful of the effects on the agriculture industry and economic development.

Governors also support a variety of incentives, including those to speed domestic commercialization of advanced hybrid, clean diesel, electric, flex-fuel and hydrogen technologies; the solar and fuel cell investment tax credit and energy production tax credit; credits for carbon sequestration; and tax credits for energy efficiency and conservation.

Further, governors support the State Energy Program and the Weatherization Assistance Program as a means to address rising energy costs and help homeowners, small businesses, schools and hospitals save energy and reduce energy costs.  To maximize energy efficiency and conservation efforts, governors support programs to increase consumer awareness; increase technology transfer opportunities; encourage incentives for greater investment in energy efficiency and conservation technologies; promote and expand the U.S. Department of Energy (DOE) Energy Star programs; and eliminate unnecessary regulatory barriers to achieving greater energy efficiency.

The national security and economic well-being of this nation are predicated on securing economic and environmentally sustainable supplies of energy. To do so, governors support exploration and development of the nation's energy resources, to the extent they are competitive in energy markets and can be developed consistent with federal, state and local environmental requirements.

Global Climate Change
Governors recommend the federal government begin to curtail the emissions of greenhouse gases through a program covering multiple sectors of our economy. In the development and implementation of federal policy options, each state must retain the flexibility to tailor an approach that makes the most sense given its individual socioeconomic and geographic conditions. Governors also recommend that any escalation of greenhouse gas reductions be achievable without undue harm to the national or regional economies and that states have an active role in the implementation of any program impacting our citizens.

To mitigate the cost increases to consumers generated by any potential greenhouse gas reduction policy, and to prevent regional or state disparities, governors support large investment into research and development of new, alternative, cleaner energy sources as well as energy efficiency and conservation technologies and practices. This approach should include means to incentivize private sector investment in the research, development and deployment of these alternatives.

Governors also recommend the federal government continue research to improve its scientific understanding of global climate change and how to more accurately measure greenhouse gas emissions. In addition, the research should include potential impacts of climate change in federal, state and local infrastructure as well as water resources.

Governors recognize that climate change is a global issue that cannot be addressed solely at the state and local level. The United States should establish itself as a leader in achieving emissions reductions by engaging in international negotiations and should accept our international responsibility for addressing climate change while protecting our economic interests and vitality. In the context of any international discussion, the federal government should consult with states, local officials and non-governmental entities to assess the potential economic and environmental consequences of proposed policies and measures, including a thorough cost-benefit analysis.

Pipeline Safety
The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration's (PHMSA) Office of Pipeline Safety (OPS) is responsible for regulating 2 million miles of natural gas and hazardous liquid pipelines. OPS retains oversight authority unless it grants authority to individual states. Most states have assumed inspection and enforcement oversight responsibility for intrastate gas and liquid pipelines within their borders following certification by OPS. Eleven states are responsible for inspection of interstate lines, but enforcement authority resides with OPS.

OPS authority derives from the Pipeline Inspection, Protection, Enforcement and Safety (PIPES) Act of 2006, the Pipeline Safety Improvement Act of 2002, the 1968 Natural Gas Pipeline Safety Act and the 1979 Hazardous Liquids Pipeline Safety Act, which were substantially amended in 1992 and 1996. The OPS is responsible for establishing and enforcing safety standards for the construction, testing, operation and maintenance of pipelines. Since 1968, OPS has entered into agreements with various states to participate in the inspection oversight of interstate pipelines while leaving the enforcement authority to OPS. The 2002 statute codified those arrangements.

Policy References:

• NR-18. Comprehensive National Energy and Electricity Policy
• NR-20. Improved Pipeline Safety
• NR-11. Global Climate Change

Committee Letters:

• NGA Letter Regarding Renewable Energy Tax Credits
  July 23, 2008, letter to House and Senate leadership urging Congress to extend tax provisions that encourage the development of renewable energy sources and promote energy efficiency.

• NGA Letter Regarding the State Energy Program and Weatherization Assistance Program
  June 16, 2008, letter to Senate Appropriations Subcommittee on Energy and Water Development Chairman Dorgan and Ranking Member Domenici and House Appropriations Committee Chairman Obey and Ranking Member Lewis urging Congress to support federal-state programs that assist states in promoting energy security.

• NGA Letter Regarding Energy Tax Credits
  February 26, 2008, letter urging Congress to extend expiring tax provisions that encourage the development of renewable energy sources and promote energy efficiency.

• NGA Letter Regarding Energy Programs Contained in the Farm Bill
  October 30, 2007, letter to Senate Agriculture Committee Chairman Harkin and Ranking Member Chambliss urging Congress to maximize a feasible level of funding for the programs in the energy title of the Farm Bill.

• NGA Letter on Governors' Priorities in the Energy Bill
  October 26, 2007, letter to Senate Energy and Natural Resources Committee Chairman Bingaman and Ranking Member Domenici and House Energy and Commerce Chairman Dingell and Ranking Member Barton, detailing the governors' priorities in the Energy Bill.

• NGA Letter Regarding the State Energy Program and Weatherization Assistance Program
  June 15, 2007, letter to Senate Appropriations Subcommittee on Energy and Water Development Chairman Dorgan and Ranking Member Domenici and House Appropriations Committee Chairman Obey and Ranking Member Lewis urging Congress  to provide $74 million for the State Energy Program and $275 million for the Weatherization Assistance Program from  the fiscal year 2008 Energy and Water appropriations bill.

• NGA Letter Regarding the State Energy Program
  June 26, 2006, letter to Senate Appropriations Subcommittee on Energy and Water Chairman Domenici and Ranking Member Reid urging Congress to fund the State Energy Program at the President's fiscal year 2007 request of $49.5 million.

• NGA Letter Outlining Strategies to Reduce Energy Prices
  October 19, 2005, letter to Senate Environment and Public Works Committee Chairman Inhofe and Ranking Member Jeffords and to Senate Energy and Natural Resources Committee Chairman Domenici and Ranking Member Bingaman urging that any new legislation ensures that federal jurisdiction fits with existing state authority, preserve environmental standards, and focus on directly relieving energy prices by promoting domestic energy production, increasing refining capacity, and further encouraging energy conservation and efficiency.

• NGA Letter Regarding Liquefied Natural Gas Facilities
  June 21, 2005, letter to Senate Energy and Natural Resources Committee Chairman Domenici and Ranking Member Bingaman urging Congress to pass an amendment to the Senate energy bill that requires gubernatorial approval of proposed projects that would site liquefied natural gas (LNG) facilities onshore or in state waters.