State Activity Report
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1 Legislative Analysis Political Outlook State Activity Report May 19, 2014 State Legislative Analysis and Political Outlook State Legislative Trends: As we approach the midpoint of 2014, and as many state sessions have either ended or are winding down, we thought it would be helpful to provide you with a snapshot of the natural gas related issues that legislators have considered this year. AGA s State Affairs team recently completed a review of legislation that has been introduced in all fifty states in an effort to identify and analyze any legislative trends. We have compiled and analyzed bills introduced through May 1, 2014 in order to identify those issues that state legislators are focusing on most often, both overall and from regional perspectives. Below, we provide you an overall picture of legislative activity, as well as regional break-outs. Some general highlights which may be of interest include: Supply was the topic of most interest among legislatures, representing 40% of bills introduced nationally The Northeast region introduced the most bills - 54% of those bills being related to supply New York introduced more bills than any other state - 80% of those bills being related to supply Fuel Switching received the least amount of focus from legislators, with only 2 bills being introduced New Jersey and Minnesota led the nation with regard to CHP development - Governor Chris Christie has demonstrated himself as a supporter of CHP through the adoption of New Jersey s 2011 Energy Master Plan, which specifically calls for CHP development within the state. Similarly, the Minnesota Department of Commerce s State Energy Office has been highlighted by the EPA as a part of the EPA CHP Partnership for its development and promotion of CHP. West VA had the most energy efficiency related legislation half of which was introduced by Del. Mannypenny (D)
2 New Jersey considered the most related legislation, while Mississippi considered the most specific legislation New York and Massachusetts led the nation with regard to pipeline safety related legislation Alaska led the nation regarding pipeline expansion - The Alaska Pipeline Project and LNG development in Alaska have been in the spotlight for years now. Pennsylvania introduced the second largest number of pipeline expansion related bills. Below, we have included a broad look at the legislation so as to provide a national outlook. Legislation was reviewed for relevance according to the following categories: Alternative Fuel Vehicles () Energy Efficiency (EE) Public Utility Commission/Rates (PUC) Combined Heat and Power (CHP) Supply (S) Pipeline Expansion () Pipeline Safety () Natural Gas Vehicles () Energy Planning (EP) Cyber Security (C) Fuel Switching (FS) A detailed description of each category and sample bills are provided below, immediately after the regional graphs. TOTAL RCENTAGE OF BILLS INTRODUCED R CATEGORY OTHER 4% PUC 7% EE 7% Other: CHP, EP, C, FS S 40% 10% 10% 11% 11%
3 The graph below represents the action taken on all of the legislation we reviewed Introduced Pending Died Enacted Regional Trends: Northeast: 6% 5% PUC 4% CHP C EP 2% 1% 1% EE 7% 9% S 54% 11% South:
4 EE 8% 8% EP CHP 2% 1% 25% PUC 12% 12% S 16% 16% Midwest: 5% EE 5% CHP 3% FS 1% 7% S 40% 9% PUC 10% 20% Southwest:
5 EE 6% 6% FS 6% PUC 6% 41% 12% 23% West: 8% EE 8% C 3% 26% 8% PUC 13% 18% S 16% Categories Explained: Supply Any bills which related to supply of natural gas generally. This category includes bills related to exploration (e.g. AK SJR 3), workforce development (e.g. OH S 12), royalties from drilling and exploration (e.g. VA S 25), hydraulic fracturing (e.g. IA HB 128) or the prohibition of (e.g. MD HB 292), drilling of horizontal gas wells (e.g. WV HB 2260), local regulations (e.g. IN HB 1299), water abatement/treatment initiatives or regulations on pooling (e.g. WV SB 68, MD HB 409), disposal of drill cuttings (e.g. WV SB 474), mining for silica sand (e.g. IA HB 2028), creation of public databases (e.g. TN HB 372), severance taxes collected on the production of natural gas (e.g. WV HB 2435), fees imposed on any aspect of the drilling process (e.g. WV HB 3051), leases and liens (e.g. KY H 439), etc
6 Pipeline Expansion Pipeline Safety Any bills relating to the expansion of natural gas infrastructure whether through appropriations (e.g. NM H 2), eminent domain (e.g. NE L 580, NC S 636), taxes (e.g. TN H 1536), LNG development (e.g. KY H 387, AK H 58), public-private sector partnerships (e.g. DE SJR 7), or the creation of natural gas districts (e.g. MS H 1641). Any bills relating to the following subcategories: leak mitigation and repair (e.g. MA H 3873, NY A 9336); excavation damage prevention (e.g. NE L 930, MO H 1867); fines (e.g. MD S 362, ME H 1192); reporting (e.g. NY A 8143, RI H 5615); radon (e.g. DE SCR 31, NY A 6863); operations (e.g. CA S 1389, OK H 2426); emergency services (e.g. NM H 240, NJ A 1161); cost recovery (e.g. MN S 1040, NE L 404); and LUAF (e.g. CT H 5410). Any bills which referred solely to s, taxing of s, or CNG/LNG development in reference to vehicles (e.g. AL H 552, WA H 2753, MS H 1622). Any bills referring more generally to s, but also mentioning s (e.g. OR H 4131, GA H 994, SC H 4619). Any bills discussing energy efficiency which mention natural gas (e.g. IA H 56, MA H 2919, MI H 5397). Energy Efficiency PUC These bills related to the power of PUCs including regulatory authority (e.g. AK S 217, ID H 471), procedures (e.g. OK H 2533), rates (e.g. NM H 296), and tasks required of PUCs (e.g. HI H 448). CHP Energy Planning Cyber Security Fuel Switching Notes: Any bills which call for CHP development (e.g. VT H 297), incentives for distributed energy generating facilities (e.g. NJ A 1410, MN S 642), or authorization to produce/sell CHP (e.g. NJ A 2751). Any bills outlining state energy plans which specifically mention natural gas (e.g. CA AB 1763) or bills discussing state energy policy with regard to natural gas (e.g. NC HB 298, WV HB 4469). Also included was West Virginia s SB 461, which establishes the Future Fund in order to conserve a portion of proceeds from certain severance tax revenues for future expenditures. Any bills focusing on cyber security with mention of or directives on infrastructure. Some bills mentioned cyber security and infrastructure generally (e.g. MD HB 804 and NJ AB 1330) while others were more specific such as NH HB 1552, which would establish a commission to study cyber security for critical state infrastructure, and CA AB 2200, which would create the California Cyber Security Commission, requiring a representative from the Public Utilities Commission. Any bills related to switching from other fuels to natural gas. The two recorded bills were: UT HB 154, which requires the Department of Air Quality to implement a conversion program for dwellings in which the sole source of heat is a wood burning stove; and, MN HB 2866, which requested the Legislative Energy Commission to study strategies for converting propane gas users. This review was completed on May 1, Legislation was recorded if a) it was introduced in 2014 prior to May 1, 2014 or, b) it was introduced in 2013 and carried over or otherwise still pending or acted upon by May 1, 2014 Companion bills were treated as one, with the best outcome recorded. For example, TN HB 1272 was substituted for by its companion, SB 852, which was enacted. These two bills were counted as one for the purposes of this analysis. A limited number of resolutions were included in the analysis. Of special note with regard to the West region: a number of supply bills were introduced in 2013, but did not get carried over to Thus, the West region s seemingly less than predicted interest in supply issues. The following states did not have a regular session in 2014 and thus were not included in this analysis: Montana, Nevada, North Dakota, and Texas.
7 Political Outlook for 2014: Governors: The map below highlights those states holding gubernatorial elections this year. Of these 36 seats up for election, 29 will be vied for by incumbents. Illinois, Ohio, Nebraska, and Texas have already held primary elections while Indiana, West Virginia, North Carolina, and Kentucky will hold primaries, but will not elect a governor in Here are a few of the gubernatorial elections that we will be keeping an eye on: Arkansas: Governor Mike Beebe (D) will not be able to seek re-election this term. The primary is on May 20 th with polls showing strong support for former Congressman Asa Hutchinson (R) and former Congressman Mike Ross (D). General polls are showing it too close to call at this point between these two frontrunners. Colorado: Polling shows Governor John Hickenlooper is holding strong against his potential Republican opponents. Four candidates will be competing for the Republican party nomination on June 24 th : former Congressman Bob Beauprez, Secretary of State Scott Gessler, former State Senator Mike Kopp, and former Congressman Tom Tancredo. Florida: The Florida primary election is on August 26 th. Former Governor Charlie Crist is the Democratic frontrunner and has already been leading some polls. Governor Rick Scott (R) recently began his re-election campaign and will be able to focus more attention on his campaign now. Pennsylvania:
8 Governor Tom Corbett (R) has been argued by many as the most vulnerable incumbent governor in the country. He will face one of four possible Democratic candidates: State Treasurer Rob McCord, former Secretary of the Pennsylvania Department of Environmental Protection Katie McGinty, Congresswoman Allyson Schwartz, and former Secretary of the Pennsylvania Department of Revenue Tom Wolf. The Pennsylvania primary in May 20 th. Attorney Generals We will also be keeping track of Attorney General elections this year. Below is a map highlighting those states with AG elections in 2014: In addition, there are thousands of state legislative seats in 46 states that are up for election this year. The map below represents the current political composition of all state legislatures.
9 Here are just a few of the state legislatures that we will be monitoring. Washington: The Washington State Senate is currently held by the mostly Republican Majority Coalition Caucus with 26 seats to the Democrats seats are up for election this year. The State House of Representatives is solidly Democratic right now (55-43). All 98 seats are up for election this year. Minnesota: The Democratic-Farmer-Labor Party (DFL) currently holds the majority in both the State Senate and the State House of Representatives after winning the majority back in Republicans had secured control of the state legislature in 2010 for the first time in over three decades. All 134 House seats are up for election this year, but no Senate seats are up. New York: The New York State Senate has generally been held by Republicans, while the Assembly is usually held by Democrats. However, Democrats took over the Senate in The Democratic majority in the Assembly is solid 99 seats to 40 Republican seats (plus 1 independent and 10 vacant). All 150 seats of the Assembly are up for election. Kentucky:
10 Republicans currently hold the majority in the Kentucky State Senate (23-14), while Democrats hold the majority in the State House of Representatives (54-46). Only 19 Senate seats are up for election in 2014 while all 100 House seats are up. Kyle Rogers Vice President, Government Relations Ashley Duckman Director, State Affairs American Gas Association 400 N. Capitol St., NW Washington, DC
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