Anderson@Large

Can Environmentalists, Shale Gas Producers Get Along?

It was serendipitous that I read about a collaboration between environmentalists and unconventional gas drillers while attending Wharton’s Initiative for Global Environmental Leadership’s conference on the nexus of energy, food and water. The goal of the gathering was to engage the business community in a conversation on how to build business value by embedding sustainability.

I was tweeting about Neil Hawkins’ call for collaboration when a Google alert about the new center popped up. Hawkins is Vice President of Sustainability and Environment, Health & Safety for the Dow Chemical Company.

The Center for Sustainable Shale Development is breaking down silos. The participating partners include Chevron, CONSOL Energy, Environmental Defense Fund, EQT Corp., Pennsylvania Environmental Council, Shell and William Penn Foundation.

Robert Vagt, President of the Heinz Endowments, said in a statement:

CSSD is the result of an unprecedented effort that brought together a group of stakeholders with diverse perspectives, working to create responsible performance standards and a rigorous, third‐party evaluation process for shale gas operations. This process has demonstrated for us that industry and environmental organizations, working together, can identify shared values and find common ground on standards that are environmentally protective.

Bruce Niemeyer, President of Chevron Appalachia, added:

Raising the bar on performance and committing to public, rigorous and verifiable standards demonstrates our companies’ determination to develop this resource safely and responsibly. Throughout the development of CSSD, the collaborative effort of environmental organizations, foundations and energy companies has been the key to achieving consensus on regional performance standards.

Energy companies seeking certification must meet 15 performance standards that address air quality, water resources and climate. The data-driven performance measures will build trust and break through the myths and unfounded fears.

Indeed, the Washington Post editorialized:

Last week brought a heartening breakthrough in the war over fracking: A handful of major green groups and big drillers agreed on environmental standards… These new rules are a large step toward striking the right balance, and everyone involved deserves credit.

But not all environmentalists are singing “Kumbaya.” Deb Nardone, the Sierra Club’s Beyond Natural Gas Campaign Director, dismissed the agreement as “akin to slapping a band aid on a gaping wound.” In a statement, Nardone declared:

The majority of natural gas must stay in the ground if we want any chance of avoiding climate disaster.

That makes no fracking sense says the Post:

The center provides a model for environmental groups, too. They advance their cause much further when they accept that the country is fracking and push for sound regulation, instead of unrealistically insisting that all that natural gas stay in the ground.

Truth be told, some ‘fracktivists’ are more interested in mobilizing around an issue than collaborating on solutions because it’s good for business.

Infrastructure Matters

If you’re like most Americans, you might be asking yourself: “What is infrastructure?” Infrastructure is the foundation of our economy. It includes highways, public transit and water systems, airports and railroads. Or as former Gov. Arnold Schwarzenegger told his then eight-year-old son: “It’s what Daddy blows up in movies.”

Edward Rendell, former governor of Pennsylvania, shared that story at a forum of regional leaders convened by Philadelphia City Councilman Kenyatta Johnson, “Philadelphia’s Infrastructure: A Pathway to Jobs, Economic Development and Sustainability.”

Johnson said:

As a District Councilman, I recognize that we need jobs. Investing in our road, bridges and alternative energy sources should be used to stimulate job creation and economic development, not only in Philadelphia but in the surrounding region.

One of those alternative energy sources – shale gas – is powering economic growth and America’s energy independence. A report by IHS found that unconventional gas development contributed economic activity of over $14 billion in Pennsylvania in 2012. The shale gas revolution directly and indirectly supported over 100,000 jobs. That number is projected to double by 2020.

Western Pennsylvania is the sweet spot for the Marcellus Shale formation. As a longtime advocate for minority-owned business enterprises, I was heartened by Sen. Anthony Williams’ commitment to ensuring a broad-based economic benefit:

It’s not just about western Pennsylvania. It’s about all of Pennsylvania… We in Philadelphia need to be in the middle of this conversation.

Fortunately the Oil and Gas Act, commonly referred to as Act 13, includes a provision to foster that conversation. Section 2316 provides:

(a) Requirement: Producers shall provide maximum practicable contracting opportunities for diverse small businesses, including minority-owned business enterprises, women-owned business enterprises and veteran-owned businesses.

(b) Duties – Producers shall do all of the following:

(1) Maintain a policy prohibiting discrimination in employment and contracting based on gender, race, creed or color.

(2) Use the database available on the Internet website of the Department of General Services to identify certified diverse small businesses, including minority-owned business enterprises, women-owned business enterprises and veteran-owned businesses, as potential contractors, subcontractors and supplies for opportunities related to unconventional natural gas extraction.

(3) Respond to the survey under subsection (c) within 90 days.

(c) Survey – Within one year of the effective date of this section, the Department of General Services shall send all producers a survey to report the producers’ efforts to provide maximum practicable contracting opportunities related to unconventional gas extraction for diverse, small business participation.

It’s a truism that we manage what we measure. But somehow the Department of General Services managed to miss the Feb. 13, 2013, deadline for sending the survey.

Williams promised to fix that. He is a member of the State Government Committee to which DGS must submit an annual report on diverse small business participation. He will ask members of the Pennsylvania Senate Democratic Caucus to sign a joint letter to DGS to find out when the survey will be sent.

So where do we go from here? Johnson made it clear this was not a one-off event; rather, it was the 1st annual infrastructure forum. He plans to establish an Infrastructure Working Group to develop a long-term strategy to promote job creation and economic development.

For more information, contact Councilman Kenyatta Johnson’s office at (215) 686-3412.