2015 Washington Report Khary Cauthen Sr. Director, Federal - - PowerPoint PPT Presentation

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2015 Washington Report Khary Cauthen Sr. Director, Federal - - PowerPoint PPT Presentation

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2015 Washington Report Khary Cauthen Sr. Director, Federal Relations American Petroleum Institute Prepared for API Spring Accounting Meeting Washington, DC 1220 L Street, NW Washington, DC 20005 - 4070 www.api.org 1 A Review of

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1220 L Street, NW • Washington, DC 20005-4070 • www.api.org 1

2015 Washington Report

Khary Cauthen

  • Sr. Director, Federal Relations

American Petroleum Institute Prepared for API Spring Accounting Meeting – Washington, DC

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1220 L Street, NW • Washington, DC 20005-4070 • www.api.org 2

A Review of API

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1220 L Street, NW • Washington, DC 20005-4070 • www.api.org 3

Mission

To influence public policy in support of a strong and viable U.S.

  • il and natural gas

industry essential to meet the energy needs

  • f consumers in an

efficient and environmentally responsible manner.

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As the U.S. oil and natural gas industry’s primary trade association, API:

  • Engages in federal and state

legislative and regulatory advocacy that is based on scientific research; technical, legal and economic analysis; and public issues communication;

  • Provides an industry forum to develop

consensus policies and collective action on issues impacting its members; and

  • Works collaboratively with all industry
  • il and gas associations, and other
  • rganizations, to enhance industry

unity and effectiveness in its advocacy.

API also provides the

  • pportunity for standards

development, technical cooperation and other activities to improve the industry’s competitiveness through sponsorship of self-supporting programs.

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org 4

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About API

  • The only national trade association

that represents all aspects of America’s

  • il and natural gas industry.
  • Represents members on legislative,

regulatory, and other policy issues impacting the industry.

  • Speaks on behalf of the industry in a

variety of forums and public events, including the media.

  • Provides services to members at both

the national and state level, with over 250 staff located in Washington, D.C. and in 33 state capitals, and 5 global

  • ffices.

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API Engagement

  • Legislative & Regulatory
  • Federal Level
  • State Level
  • Communications
  • Mobilization
  • Technical
  • Standards Development
  • Certification
  • Safety
  • Training

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U.S. Industry Size/Strength

OIL & NATURAL GAS 2.8 MILLION Building Construction 1.4 million

Machinery Manufacturing 989,000 Utilities 565,000 Rail Transportation 212,000 Coal 81,000 Biorefineries 9,000

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API Mobilization Assets

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Engage & Educate Activate

Mobilization Model

Retirees Vendors & Suppliers Employees & Families

Motivate

Affordable Energy & Reliable Energy Economic Growth & Employment

Increased Energy Production More Jobs/ Energy Security Increased Access to Oil & Natural Gas Resources

Labor Groups Veterans Business Groups Minority Voters Micro-Targets Women Native Americans Investors Royalty Holders Conservation & Outdoor Affinity Groups

Increased Access to Oil & Natural Gas Resources

Environmental Performance & Integrity

EXPANDING

THE ENERGY BASE

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Allies and Strategic Partner Recruitment

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Minority Outreach

African Am Native Am Hispanic Asian

Veterans Outreach

State Veteran Ldrs Vet Org Partners

Demo- graphic

Seniors Women Students

Strategic Outreach

Academia Agriculture Chambers

Labor Outreach

Grow High Impact Partnerships for Maximum Influence

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Maximize value by reaching outside of Capitol Hill to build key, long-term ally relationships relying on the principle that conditioned allies are likely to be better advocates and be willing to underscore implications on Election Day.

Policy Maker

Local Influentials

Community-based value proposition of the industry through elected officials and staff, business leaders, small business owners, community leaders, media.

Industry Voices

Industry, fact-based expertise and perspective to the policy-making process

Energy Voters

Empower rank and file constituent and industry voices to demonstrate widespread support and communicate the personal/community impact

  • f industry and energy

policy

How it all works…

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12 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

SPC’s Allies Combined

Micro-targets: 25 Million, 32 states Energy Forums: 23 states Energy Citizens: 1,400,000, 50 states Energy Nation: 250,000, 50 states

API Assets Nationwide

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State Petroleum Councils

13 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

SPC

Coalition- Building Member Working Group Media State/Local Government

API’s State Relations team

  • versees 33 states and

maintains offices in 22 states API’s State Relations team also works with allied oil and gas associations that cover 15 states

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Self-identified industry advocates motivated to speak on behalf of the industry’s policy priorities – 250,000 total advocates nationwide – 74 partner companies Program focus – Issue and advocacy education

  • Advocacy In Action trainings
  • Inside Congress workshops

– Engagement with legislators and personal networks within their communities

energynation

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  • Citizens concerned about energy who are self-motivated and active in

their communities

  • More than 1,400,000 members
  • Powerful online community: Reach and impact
  • Volume activations
  • Online discussion impacts issue sentiment now more than ever
  • Grassroots, community voices: Diverse and active
  • Local volunteer leaders and organizers in 10 states
  • Scaleable infrastructure
  • House parties and member events
  • Phone banking and canvassing
  • Meetings with legislators
  • Earned media

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  • Sent over 535,527 letters to the

State Department

  • Generated 23,532 emails to the White House
  • State Department letters signed by 250

elected officials and 1,068 veterans

  • Garnered 31,120 participants on

educational telephone townhalls

  • Generated 63,532 communications to

Senators

Example: KXL 2014

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Why Mobilization Matters

  • Complements federal/state relations
  • Enforces D.C. message on the ground
  • Voters continue to support the energy

sector

  • Places pressure on members back home
  • Puts a real face on the issue
  • Continues the dialogue
  • Moves the needle
  • Results in non-traditional allies
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2015 Legislative Outlook

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  • GOP Congress with regular order in the Senate
  • Senate open amendments means tough votes on the

floor, and long bill time periods (KXL took 4 weeks)

  • Allows for more votes, forces POTUS to veto
  • No direct tax increases on the table for anyone
  • …but bills must be “paid for”
  • No real cooperation with White House on anything
  • Can anything get done?

Overview

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2014 Legislative Outlook

Will anything substantive happen this year?

  • Tax Reform
  • Budget
  • Highway Bill
  • Debt Ceiling
  • Trade Agenda
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1220 L Street, NW • Washington, DC 20005-4070 • www.api.org 21

Tax Reform

Politics

  • Chairman Camp released H.R. 1 in Dec, 2014 after years of drafts from

2012 on, and Leadership holding him back as long as possible

  • Why force a tough vote that would go no-where in a Dem Senate?
  • Under GOP control, Congress has a desire to do reform – but is there a

political will and willing partner in the White House?

  • Business reform only very difficult but “supported” by POTUS
  • House and Senate seem to be on two different tracks

Policies

  • Per country minimum & denial of interest expense often discussed
  • Camp draft Impact on energy sector:
  • Repeal of LIFO
  • Repeal of percentage depletion
  • Repeal of Sec. 199 (offset with rate reduction)
  • MACRS – ADS shift
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Obama Budget

Almost $96 billion in new taxes

  • ver

the next 10 years.

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GOP Budget

  • House & Senate budgets to be marked-up

week of 16th, on the floor week of 23rd

  • Overtures to tax reform
  • Spending reforms
  • GOP Blueprint of economy
  • “Vote-a-rama” regular order in the Senate
  • Can expect targeted amendments
  • Likely over 500 amendments will be filed
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1220 L Street, NW • Washington, DC 20005-4070 • www.api.org 24

Highway Bill

  • Trust Fund expires on May 31st
  • No clear funding option, likely a short term

extension through Fall to provide time

  • Political will to pay for this package?
  • Gas tax, VMT, repatriation, per barrel fee
  • Administration proposal suggested 14%

direct tax on foreign earnings (referred to as “repatriation”)

  • Why should the industry be concerned?
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2015 Debt Ceiling

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

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  • Trade, specifically TPA, is a top priority for the Administration and

Congress

  • API leading the energy dialogue on FTAs including TPA, TTIP, and TPP
  • TPA is stalled in the Senate with Ranking Member Wyden (D-OR) holding
  • ut demanding a turn-off mechanism
  • House whipping TPA, trying to find common ground with far-right tea party
  • If no TPA by August 2015, then the EU sees TTIP as a much harder push
  • API meeting with USTR and EU before and after each TTIP round
  • Constant coordination with IOGP (API of Europe)
  • Produced two joint papers – a policy position paper and a response to the

two leaked non-papers on energy.

  • Upcoming documents & advocacy tools:
  • Letter from Jack to Congress encouraging passage of TPA
  • A one-pager on ISDS
  • A one-pager on Duty Drawback

Trade Engagement

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  • Issue: CBP 2009 ruling continues to remain problematic for

trade facilitation and harmonization.

  • Goal: To codify status quo into law
  • Approach:
  • API has formed the Business Residue Coalition with XX

members ranging from a variety of sectors

  • On March 19th Reps. Marchant (R-TX) and Kind (D-WI),

along with Sen. Coats (R-IN) have introduced bi-cameral and House bi-partisan legislation to codify status quo.

  • API has confirmation that in the Customs Reauthorization

bill our language will get a placeholder in the Chairman’s mark.

  • The timing on Customs Reauthorization remains unclear

Customs / Residue

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

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Legislative Outlook: The Senate will continue to pass legislation and amendments to show they can get things done despite an unwilling

  • President. Tax reform is not expected to occur, however the threat of a

per barrel fee/production tax to pay for highways is real. Political Environment: The Republican controlled Congress must show it can govern to have a hope at the White House in 2016. Political Landscape: House is expected to maintain Republican control in 2016, and the Senate remains up for grabs. With over 20 GOP Senate seats in play, the race will start sooner than later.

Key Takeaways

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Questions?

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