Consumer Energy Alliance: SB 19-181 an Economic Killer for Colorado Families, Businesses

Proposed Bill Would Add Restrictions to Natural Gas Production,
Increase Household Energy Costs and Eliminate Jobs, Tax Revenue Statewide

DENVER–(BUSINESS WIRE)–lt;a href="https://twitter.com/hashtag/SB181?src=hash" target="_blank"gt;#SB181lt;/agt;–Today, Consumer
Energy Alliance
(CEA), the leading consumer energy advocate, voiced
concern and disapproval with Senate Bill 19-181 (SB-181), proposed
legislation being fast-tracked in Colorado. This bill would dangerously
curtail new oil and gas development, eliminate tens of thousands of
jobs, decrease much-needed Colorado tax revenue and eliminate the bulk
of the savings residents and businesses have seen in energy costs in
recent years.

“Colorado is already the leader in air and water regulatory framework in
the world. It’s also a leader in the safe, economical extraction of oil
and natural gas, which has rejuvenated communities and helped families
and businesses of all sizes reduce their once too-high energy expenses,”
CEA Chief Operating Officer Andrew Browning, in Denver, said. “This
ill-advised bill threatens to increase household energy expenses and
hurt the livelihoods of people across the state by significantly
reducing, or all-out eliminating, the production and transportation of
safe, affordable energy made so close to home and the thousands of
family-sustaining jobs they carry.”

“We also wondered where the state will go for revenue once the
significant revenue from oil and gas production is lost. This should be
a warning to every Colorado business and family that your taxes will
need to be increased to offset this lost state revenue.”

Last fall, in
a report
, CEA showed how Colorado households and businesses saved
nearly $12.4 billion between 2006 and 2016, courtesy of record oil and
cleaner-burning natural gas production within the state and safer,
state-of-the-art technologies. Industrial users saved more than $8
billion and residential users saved over $4.3 billion. Many of those
families include the more than 10 percent of Coloradoans in poverty who
regularly spend at least 22 percent of their income on energy expenses.

CEA’s analysis also found that the state’s oil and gas industries
supported 232,900 workers, contributed over $31.4 billion to the state’s
economy and accounted for nearly 10 percent of gross state product,
supporting jobs in 50 the state’s 64 counties. Moreover, producers
contributed roughly $1.2 billion to state budgets via property, income
and severance taxes in addition to public land leases and royalties –
all of which helped fund municipal services including school, road
maintenance, and safety.

In contrast, a just-released
study
by the REMI Partnership revealed that if SB 19-181 reduced new
oil and gas production by even 50 percent, Colorado would lose 120,000
jobs, more than $8 billion in state and local tax revenue and over $58
billion in GDP by 2030. In a worst-case scenario, which would include
the elimination of all new oil and gas production, the state would lose
185,000 jobs, over $13.5 billion in state and local revenue and more
than $257 billion in lost GDP by 2030, REMI reported.

“Creating legislation based on the desires of a vocal minority is not
good governance. Our legislature should work with regulators and the
industry to come to a middle ground that is good for all Coloradans.
What we should be doing is educating our communities, not creating
panic,” Browning said.

Browning added: “This bill offers no realistic solutions to how we meet
growing consumer demand, fund much-needed municipal services and reduce
energy costs for those who need it most. As the state’s population
continues to grow, our communities will need more options for
affordable, reliable energy needs.”

About Consumer Energy Alliance

Consumer
Energy Alliance
(CEA) is the leading consumer advocate for energy,
bringing together families, farmers, small businesses, distributors,
producers and manufacturers to support America's environmentally
sustainable energy future. With more than 550,000 members nationwide,
our mission is to help ensure stable prices and energy security for
households and businesses across the country. CEA works daily to
encourage people across the nation to seek sensible, realistic and
environmentally responsible solutions to meeting our energy needs.

Contacts

Emily Haggstrom
P: 720-582-0242
ehaggstrom@consumerenergyalliance.org