Advocacy in Action Chevron employees, retirees, retailers, executives and Network members have been actively engaged this year in communicating with their representatives on issues such as the federal budget and climate change legislation. In fact, Network members have sent in more than 21,000 letters to members of Congress since March. These advocacy efforts will continue to play an important role in our efforts to shape the discussions around energy. Climate Change Legislation Narrowly Passes the House On Friday, June 26, the House of Repre- sentatives narrowly passed H.R. 2454, the American Clean Energy and Security Act, by a vote of 219-212. After hours of debate and many members expressing concern with the measure, the bill passed mainly along party lines, with 44 Demo- crats opposing the bill and 8 Republicans supporting it. The legislation is sponsored by Congressman Henry Waxman, D-Calif, and Congressman Ed Markey, D-Mass. In just two and a half days, more than 3,000 employees, retirees, retailers and friends — members of the Chevron Advocacy Network — sent letters expressing their concerns with the measure to 259 representatives in 45 states and the District of Columbia, with some key legis- lators receiving more than 150 letters. We know this had an impact, as our government affairs team in Washington, D.C., heard from many of the representa- tives about the letters they received from their constituents on this issue. These letters proved to be an important part of our communication efforts and provided support for representatives to oppose the bill. As you know, Chevron supports a national climate change program that is transparent, promotes energy efficiency and conserva- tion measures, treats all participants fairly, and protects our economy and energy security. Unfortunately, the measure as passed does not meet these underlying principles and will likely undermine energy security and lead to significantly higher costs to American households without providing a significant reduction in green- house gas emissions from every sector it regulates. The fundamental concern with the measure is the inclusion of transporta- tion fuels into a cap-and-trade regulatory program and the unequal distribution of emission allowances for the refining sector. This type of program establishes a decreasing cap on greenhouse gas emis- sions from major sources in the economy. To meet the cap, these sources are required to reduce their emissions and/or trade credits among themselves to seek out the most cost-effective methods to achieve emission reductions. While Chevron supports including station- ary source emissions from our facilities in an economywide cap-and-trade program, we believe a separate approach for fuels is Newsletter Contents Chevron Advocacy Network July 2009 Continued on next page
Transcript
Advocacy in ActionChevron employees, retirees, retailers, executives and Network members have been actively engaged
this year in communicating with their representatives on issues such as the federal budget and climate
change legislation. In fact, Network members have sent in more than 21,000 letters to members of
Congress since March. These advocacy efforts will continue to play an important role in our
efforts to shape the discussions around energy.
Climate Change Legislation Narrowly Passes the House
On Friday, June 26, the House of Repre-sentatives narrowly passed H.R. 2454, the American Clean Energy and Security Act, by a vote of 219-212. After hours of debate and many members expressing concern with the measure, the bill passed mainly along party lines, with 44 Demo-crats opposing the bill and 8 Republicans supporting it. The legislation is sponsored by Congressman Henry Waxman, D-Calif, and Congressman Ed Markey, D-Mass.
In just two and a half days, more than 3,000 employees, retirees, retailers and friends — members of the Chevron Advocacy Network — sent letters expressing their concerns with the measure to 259 representatives in 45 states and the District of Columbia, with some key legis-lators receiving more than 150 letters. We know this had an impact, as our government affairs team in Washington, D.C., heard from many of the representa-tives about the letters they received from their constituents on this issue. These letters proved to be an important part of our communication efforts and provided support for representatives to oppose the bill.
As you know, Chevron supports a national climate change program that is transparent, promotes energy efficiency and conserva-tion measures, treats all participants fairly, and protects our economy and energy security. Unfortunately, the measure as passed does not meet these underlying principles and will likely undermine energy security and lead to significantly higher costs to American households without providing a significant reduction in green-house gas emissions from every sector it regulates.
The fundamental concern with the measure is the inclusion of transporta-tion fuels into a cap-and-trade regulatory program and the unequal distribution of emission allowances for the refining sector. This type of program establishes a decreasing cap on greenhouse gas emis-sions from major sources in the economy. To meet the cap, these sources are required to reduce their emissions and/or trade credits among themselves to seek out the most cost-effective methods to achieve emission reductions.
While Chevron supports including station-ary source emissions from our facilities in an economywide cap-and-trade program, we believe a separate approach for fuels is
Newsletter C o n t e n t s
Chevron Advocacy Network
July 2009
Continued on next page
required. In fact, the U.S. Environmental Protection Agency’s analysis of the measure confirms that the inclusion of transportation fuels under a cap-and-trade program will increase the cost of fuels without a substantial reduction in emissions.
Our country’s transportation fuels distribution system is directly linked to the pros-perity of consumers and businesses as well as to America’s energy security. There-fore, it is important that Congress put into place a program that encourages and supports the development of technological innovation in the transportation sector. This will help drive efficient approaches to meeting the lower-carbon-intensity goals of the measure while maintaining economic competitiveness.
The bill will now go to the Senate for its review and consideration. Chevron will continue to support efforts to ensure the measure is transparent, promotes energy efficiency and conservation, treats all participants fairly, and protects our economy and energy security. We will be keep you informed as the issue progresses so you will have an opportunity to communicate with your senators when a vote is expected, which is anticipated to be sometime in September.
Employee Visits to Washington, D.C.
On June 8 and 9, Chevron North America Exploration and Production employees Janet Howell, drilling technician, and Cynthia Thane, production engineer, partici-pated in the American Petroleum Institute’s Women in Oil and Gas Industry Day in Washington, D.C. Janet and Cynthia are members of the MidContinent/Alaska Business Unit, based in Grand Junction, Colorado, and are working on the develop-ment of the Piceance Basin Natural Gas Development Program.
During their two-day visit, Janet and Cynthia met with Representative Doug Lamborn, R-Colo., and with energy staff from various Congress members’ offices, including those from the office of Senator Mark Udall, D-Colo. Janet and Cynthia also took part in a group meeting with the four co-chairs of the Blue Dog Democrats and participated in a morning meeting with women senators at a coffee sponsored by Senator Mary Landrieu, D-La.
This valuable program puts a face on the oil and gas industry and helps demonstrate to senators and representatives that unsound policy proposals affect real people, their families and their communities. Chevron will continue to actively participate in this program throughout the year to ensure that our elected officials are informed on the important issues facing the energy industry.
Chairman O’Reilly Speaks at Annual Retiree Convention
Chairman Dave O’Reilly addressed the leaders from the Chevron Retirees Association (CRA) at the CRA annual meeting in May. Dave updated attendees on Chevron’s current business activities and shared a video featuring the company’s 2008 accomplishments. He also thanked CRA members who joined the Chevron Advocacy Network and who sent letters to local representatives expressing concern over the president’s proposed tax increases on the industry.
Larry Summers Director, National Economic Council (NEC)
The NEC advises the president on U.S. and global economic policy. The NEC director works in conjunction with numerous
department and agency heads within the administration, whose policy jurisdic-tions impact the nation’s economy, to coordinate and implement the president’s economic policy objectives.
Carol Browner Assistant to the President for Energy and Climate Change
Ms. Browner is charged with coordinating environmental and energy initiatives across the administration. In this newly
created position, Ms. Browner will seek cooperation between federal, state and local governments and will partner with the private sector to implement energy efficiency strategies, achieve energy secu-rity and address climate change issues.
Ambassador Ron Kirk U.S. Trade Representative
The Office of the U.S. Trade Representative is responsible for developing and coordinat-ing U.S. international trade,
commodity, for directing investment policy, and for overseeing negotiations with other countries. Chevron works with the Trade Representative’s office on a wide variety of issues related to Chevron’s overseas business operations, including free-trade agreements and initiatives to ensure strong investment-protection provisions in international agreements.
Gary Locke Secretary, Department of Commerce
The Commerce Department is charged with promoting and developing the foreign and domestic commerce of the U.S.
In this role, the department is an active advocate for the U.S. business community both at home and abroad and serves as the business community’s representative in the U.S. government’s interagency process to ensure a level playing field in an increasingly competitive global business environment. Chevron works closely with the department through its formal advo-cacy program and its commercial pres-ence at U.S. embassies around the globe.
At the biennial conference for Chevron and Texaco marketers and retailers held in June, Mike Wirth, executive vice president for Global Downstream, discussed the proposed climate change legislation under consideration in Congress. Mike pointed out that the measure could have a signifi-cant impact on the price and availability of transportation fuels, which could have a negative impact on the American consumer. Mike provided information about the issue and the Advocacy Network’s Web address so that marketers and retailers could join the network and send letters to their congressional representatives.
Federal Budget Update
On April 29, the House and Senate passed the Fiscal Year 2010 budget conference agreement, which provided a framework for Congress to begin discussions on the budget and related issues. Committees in both houses have been conducting hearings on various budget proposals. These hearings will continue through the summer.
Your letters to members of Congress earlier this year were very helpful in generating Republican and Democrat
Newsletter R e f e r e n c e s
See how your Network representative voted on climate change legislation: http://clerk.house.gov/evs/2009/roll477.xml
See more information on OCS access: http://web17.streamhoster.com/ddc/API/200905/MOC2009Access_12-29-08.pdf
Headquarters for: Chevron North • American Exploration and Production; Chevron MidContinent/Alaska Business Unit, Chevron Africa and Latin America Exploration and Production, Chevron Pipe Line Company, Chevron Energy Technology Company, Chevron Technology Ventures, Global Power
Generation, Global Aviation, and Chevron Natural Gas
Key operations: Permian Basin, Port • Arthur Lubricants Plant, Global Supply & Trading
Local business support: • Approximately $500 million spent in 2008 in support of minority- and women-owned businesses
Key university partnerships: Texas • A&M University, University of Texas, Rice University, University of Houston, Texas Southern University
Chevron Energy Solutions projects: • Corpus Christi Army Depot; naval air stations at Corpus Christi, Ingleside and Kingsville
Legacy company history: Texas Fuel • Company founded in Beaumont in 1901, later becoming the Texas Company (Texaco); First Texaco company refinery began in Port Arthur in 1903; Gulf Corporation founded in 1907
opposition to increased taxes and fees on the industry. It is important that we continue to keep our representatives informed about the negative impacts these and other proposals would have on our industry.
Congress must recognize that a strong energy industry is vital for the economic well-being of the country and is key to achieving energy security. A vibrant oil, natural gas, and refining industry in the United States provides well-paying American jobs; generates increased tax and royalty revenues for federal, state and local governments; and reduces our reli-ance on foreign sources of crude oil and natural gas. We will keep you informed as actions on key budget-related issues arise.
Minerals Management Service Holds Public Meetings on Offshore Access
In April, the Minerals Management Service (MMS), under the U.S. Department of the Interior, held four public meetings to receive input from stakeholders on the Draft Proposed Offshore Continental Shelf (OCS) Oil and Gas Leasing Program for 2010-2015. The meetings were held in Atlantic City, New Orleans, Anchorage and San Francisco.
Chevron North America Exploration and Production representatives participated in the New Orleans and Anchorage meet-ings and provided comments in support of expanding access to crude oil and natural gas resources contained in federal lease areas. While it is important to develop all sources of energy, reliable access to domestic oil and natural gas resources is vital to providing a more secure energy future for our country.
The comment period for the draft offshore program will end Sept. 21, 2009. The MMS will then begin the process to adopt and implement a final program, which involves the preparation of an environmental impact statement, additional comment periods, and a review by Congress and the president before the program is implemented.
Big Lake Downtown Houston Port Arthur Lubricants Plant
