Energy Issues Electrify Ohio Senate Race
By Deidre Shesgreen
WASHINGTON -- When it comes to energy issues, Democrat Sherrod Brown and Republican Josh Mandel agree on two things -- and maybe only two things: First, energy issues and economic issues are inextricably linked. Second, they probably will play an outsized role in Ohio's U.S. Senate race.
"Energy is about jobs to me," said Brown, using almost the exact same words as Mandel to describe what's at stake when it comes to Washington policies and Ohio's energy sector.
Energy issues will be high-profile nationally as the 2012 elections heat up, helping to shape the presidential contest and other races. "Both sides will use energy to play to potential swing voters in presidential swing states," said Chris Foreman, a professor of public policy at the University of Maryland.
But in Ohio -- with its natural gas boom, its teetering coal industry, and its burgeoning clean-energy sector -- energy policy questions could play an even more influential role in framing the debate, Foreman said.
It's no wonder then that both Brown and Mandel have made energy a key focus of their campaigns. Both have embraced the cause of "energy independence," touting plans to wean the U.S. off foreign oil and boost domestic jobs in the process.
But even as their top-line rhetoric sounds strikingly similar, the two competing Senate candidates have taken divergent positions on a range of hot-button policy questions that could have a direct effect on Ohioans. Here's a run-down of the two candidates' position on key issues, spelled out in separate interviews this past week.
Coal
Ohio is one of the top coal-producing states in the nation, ranking 10th in 2010, according to the Ohio Coal Association. The fossil fuel provides about 86 percent of Ohio's electricity, and the industry employs about 2,880 Ohioans. But coal and oil-fired power plants also churn out tons of toxins, with the state ranking third nationwide in mercury air pollution, for example.
Brown and Mandel have skirmished over a rule proposed by the Environmental Protection Agency, called the Utility MACT rule. The proposed EPA rule -- issued in 2013 to comply a court order stemming from the 1990 Clean Air Act -- would require coal and oil-fired power plants to reduce emissions of mercury and other pollutants. MACT stands for Maximum Achievable Control Technology
Mandel said the rule would cripple Ohio's coal industry and has criticized Brown sharply for a vote in June in the Senate against legislation to block the rule from taking effect.
"Sen. Brown had the opportunity to stand up for Ohio manufacturing jobs, but instead he stood with Washington bureaucrats and fringe extremists," said Mandel, pointing to figures from the Ohio Manufacturing Association that estimate the rule could cost 50,000 jobs in the state.
Brown said the rule will not cost jobs and said his position is based on protecting public health. "Mercury is a very toxic substance," he said. "I reject the false choice between having clean air to breath and a job to support a family."
Natural gas
Ohio is among a handful of states enjoying an economic boomlet driven by drilling for natural gas. A bevy of energy companies have landed in eastern Ohio, home to the rich Utica Shale, where they are seeking to lease oil and gas rights. Environmentalists, however, have raised concerns about possible water contamination caused by hydraulic fracturing, or fracking. That's the process used to extract the gas, and it involves injecting water, sand and chemicals into the ground. Fracking also appears to have caused a series of earthquakes in 2011 around Youngstown, prompting Gov. John Kasich to order a moratorium on drilling in about a half-dozen wells there.
Mandel and Brown say they support safe and responsible development of the natural gas industry. The two candidates, however, have clashed about a decision by officials with Wayne National Forest, in southeastern Ohio, to remove about 3,300 acres of park property from federal auction for oil and gas exploration because of concerns about the effect of fracking on forest land.
Brown expressed support for that decision, saying it was made by local officials at the park and in the surrounding community who know best about the possible effect of gas exploration.
Mandel said if elected, he would work to reverse that decision. He blasted Brown for siding "with the federal government to block exploration of shale gas in southeastern Ohio."
More broadly, Mandel is more outspoken in his promotion of natural gas exploration.
"The natural resources we have in our country are an opportunity for win-win-win," he said, arguing that exploration for natural gas will create jobs, lower energy prices and lessen American dependence on foreign oil.
Brown by contrast touts his efforts to secure job-training funds for Ohio programs that help laid-off workers get the skills needed for jobs in the natural gas and other industries. "I take a back seat to nobody to make sure that as we do (explore for natural gas) those are Ohio jobs," he said.
Keystone Pipeline
A Canadian company, TransCanada, has applied for a permit to build a 1,700-mile pipeline to carry crude oil from Alberta to the U.S. Gulf Coast. Environmentalists have expressed concern that it would damage wetlands and other environmentally sensitive areas. President Obama denied the permit in January, but Republicans in Congress have been pressing to overturn that decision.
Like other Republicans, Mandel said the Keystone Pipeline is a potential energy and economic boon for the country.
"It's shovel ready jobs immediately," he said. "And I think we should be sending the message to Canada that we would rather them partner with us than with the Chinese."
Brown voted against the GOP proposal to reverse Obama's decision on the pipeline. He expressed concern that it actually could lead to an increase in gas prices in Ohio, because it would bypass Midwestern refineries. And he wants "professionals, rather than politicians" to decide on an appropriate route for the pipeline.
Oil subsidies
The oil and gas industry benefits from tax breaks and federal subsidies worth billions of dollars each year.
A report by the watchdog group Taxpayers for Common Sense concluded that under current laws, the industry will get $80 billion in federal subsidies during the next five years. Democrats have tried to repeal some of these breaks, but Republicans successfully have opposed those efforts.
Brown is a vocal proponent of nixing those subsidies, arguing they are remnants of an era "when oil was selling for $10 or $20 per barrel, not (today's price of) $90 or $100." He accused Mandel and other Republicans of doing the bidding of the oil industry in their opposition to repealing the breaks.
Mandel was noncommittal on the issue.
"In general, the more we apply free market principals the better," he said. When asked if that meant he would support repealing the subsidies, he said, "Don't put words in my mouth. I didn't say yes or no."
Clean Energy
Ohio's clean-energy sector is another bright spot, accounting for as much as 97,000 private sector jobs, according to the Bureau of Labor Statistics. There are about 2,500 clean technology companies in the state, and the industry has continued to grow despite the recession, according to the Ohio Business Council for a Clean Economy.
Brown has been a champion of renewable energy and green jobs. For example, he has proposed legislation to expand incentives for offshore wind development and encourage more wind-energy research. He also is backing the creation of a nonprofit solar-power research consortium, which would involve the University of Toledo and several clean energy companies in Ohio and Michigan. The aim, part of an initiative he's working on with Michigan's two U.S. senators, would be to create a public-private partnership that spurs solar-power research and product development.
Brown said those measures would increase domestic energy production and are part of a true "all-of-the-above approach to energy."
Mandel said he supports developing renewable energy, like wind and solar, but does not think those industries should receive tax breaks or other federal investments.
"If they can stand up in the free market, they could be good opportunities," he said. But "we need to learn our lessons from boondoggles like Solyndra," he said, referring to the solar-panel manufacturer that went bankrupt after receiving a loan from the federal Department of Energy. "The federal government should not be picking winners and losers."
Energy Issues Electrify Ohio Senate Race (Chillicothe Gazette)
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