Consumer Energy Alliance 2018 Annual Report by Consumer Energy Alliance

2018

ANNUAL REPORT

“Americans deserve better. How we meet our energy challenges affects us all. We must start paying closer attention to and considering the energy costs of families – just like yours – sitting at the kitchen table trying to pay their bills. We can’t ignore them forever. The time to help them is now.” - David Holt, Real Clear Energy

Table of Contents Message from the Chairman...................................................................................................... 4 About Consumer Energy Alliance............................................................................................. 5 CEA By the Numbers................................................................................................................... 6 Ongoing Campaigns............................................................................................................. 7-11 Event Highlights................................................................................................................... 12-13 Energy Day........................................................................................................................... 14-15 CEA Chapter Accomplishments........................................................................................ 16-19 Offshore Energy Access...................................................................................................... 20-21 Onshore Energy Access...................................................................................................... 22-23 CEA Board of Directors.............................................................................................................24 CEA Affiliate Members / Financial Report........................................................................ 25-27 Financial Report.........................................................................................................................27

“Simply saying ‘no’ is not a solution, and ignores human ingenuity and the environmental progress that has been achieved during the U.S. energy revolution…As a nation, we must do all we can to meet our energy needs using every available mechanism, including traditional energy, renewable energy, and energy efficiency.”

www.ConsumerEnergyAlliance.org

- David Holt, Washington Examiner

Message from the Chairman

his last year marked some exciting milestones for the energy, economic, and environmental security of families, farmers, manufacturers, and businesses across America.

With the United States' continued status as the world's largest producer of petroleum and natural gas, along with substantial gains in renewable energy development and energy efficiency, the nation is poised for long-term success in securing affordable and reliable energy and the jobs and economic activity that come with it. Not coincidentally, increased domestic energy development has occurred at the same time as the country has made historic environmental improvements in air and water quality. As the U.S. continues to reap the benefits of our Energy Revolution, the nation must remain focused on responsible development and critical infrastructure. For example, we still import more than 10 million barrels of crude oil and petroleum products every day, and this past winter an absence of energy delivery infrastructure in the Northeast caused by poor public policy decisions led to the need for Russian LNG to be transported into Boston Harbor and pushed the region into becoming the world's most expensive market for natural gas. Natural gas constraints that translate into high electricity and heating costs affect families and businesses across the U.S. but particularly harm the most vulnerable Americans who too often are forgotten in discussions about energy and environmental policies. That is why over the past year — through our latest "Campaign for America's Energy" and "Pipelines for America" initiative — CEA has been

About Consumer Energy Alliance a leading voice and advocate for ensuring access to American energy across the country, including in the Gulf of Mexico, Atlantic, and Alaskan Arctic, while also working to achieve responsible energy and environmental regulations and policies at the federal, state, and local levels. CEA has also made progress with energy infrastructure needed to deliver affordable and reliable energy to families and businesses. CEA is focused on ensuring that decision-makers are actively engaged in thoughtful and balanced public policy discussions about the importance of energy to families and businesses, as well as the reality that energy development and environmental protection are not mutually exclusive concepts. The fact is, energy is a non-partisan issue that affects us all, and we need solution-oriented public discourse rather than one-sided arguments premised on the false choice that “Just say NO!” will protect consumers, the economy, or the environment.

Since 2006, Consumer Energy Alliance (CEA) has been bringing together families, farmers, small businesses, distributors, producers, labor, manufacturers, and more, to support America's energy future, and to find sensible, non-partisan solutions to our country’s energy and environmental needs. With more than 550,000 members nationwide, our mission is to help ensure American families and businesses have access to reliable and diverse energy resources to support stable prices

and economic opportunities. Energy development as well as environmental protection touch everyone in our nation, and thus it is necessary for all of us to actively and thoughtfully engage in the conversation about how we safely and responsibly develop our diverse energy resources and continue our impressive environmental success. We hope you’ll join the conversation. To learn more about CEA and our campaigns across the country, visit www.ConsumerEnergyAlliance.org.

Through CEA's efforts around the nation, we are helping to further motivate and educate elected officials, families, small businesses, and community leaders on how energy impacts their daily lives. We work every day to ensure that Americans are not burdened by policies and actions that lead to high energy costs or unreliable energy infrastructure. With the support of our members, and as new leaders assume office at the federal, state, and local levels following the upcoming November elections, CEA looks forward to expanding this critical dialogue to newly-elected officials so that, together, we move America toward an even brighter energy and economic future. Best Wishes, Brett A. Vassey, Chairman

Consumer Energy Alliance President & CEO, Virginia Manufacturers Assn.

CEA By the Numbers

Ongoing Campaigns

65%

2006

YEAR CEA WAS FOUNDED

VAST MAJORITY OF CEA'S CORPORATE MEMBERS ARE CONSUMERS

280+

180,000+

MEMBER COMPANIES

550,000

INDIVIDUAL MEMBERS

125+

SOCIAL MEDIA FOLLOWERS

250+

LOCAL, STATE, NATIONAL ENERGY CAMPAIGNS AND COUNTING

CEA CONSUMER ENERGY PLEDGE

250+

SIGNED BY ELECTED OFFICIALS IN 2018

ENERGY FORUMS

HOST

LARGEST ENERGY FESTIVAL IN AMERICA – HOUSTON'S ENERGY DAY!

Campaign for America’s Energy Americans are spending an annual average of $3,211 per person on energy, according to the U.S. Energy Information Administration (EIA). With the average worker making around $48,000 per year, that is a staggering amount of money devoted to keeping the lights on, the house warmed and cooled, and the gas tank full. However, for those living on low or fixed incomes, the burden is even more crushing, with the poorest households generally spending more than 20 percent of their income on home energy bills, and in some extreme cases, more than 50 percent. In October 2017, CEA launched the “Campaign for America’s Energy” in an effort to educate policymakers, families, and small businesses on the benefits of energy. The campaign highlights the importance of affordable, reliable energy in

the lives of families and small businesses, and the consequences that result from bad policy decisions. Covering 12 states, “Campaign for America’s Energy” is aimed at changing, balancing, and improving the energy and environmental discussion so that those directly impacted have a greater voice in the dialogue. The effort encourages decision-makers at all levels of government to adopt policies that support energy production and delivery as well as environmental stewardship. The campaign also aims to bring greater awareness to how rejecting or delaying energy production and infrastructure projects hurts those living at or below the poverty line. Through “Campaign for America’s Energy,” CEA is engaging families, businesses, and decision-makers to help secure a prosperous future for America.

Ongoing Campaigns

Solar Energy Future

Pipelines for America Every aspect of our lives is touched by the products made possible by energy delivered through pipelines. Medicines, clothing, cosmetics, diapers, tires, detergents, packaging, car seats, heart valves, and a dizzying array of other products wouldn’t be possible without the byproducts that are made from the fuel delivered by our nation’s incredible energy infrastructure. While there are many ways you can transport energy, federal data has long confirmed that pipelines are the safest, most efficient, and environmentally responsible way to meet America’s energy needs. To generate public awareness about how our country uses pipelines and how integral they are to our energy system, CEA launched “Pipelines for America” in August 2016 to address the void in elevating and expanding the dialogue with families, small businesses, agriculture, and manufacturers, and to provide them with an opportunity to share their voice and advocate for more energy infrastructure across the country.

"Pipelines for America" continues to push back against misinformation by activist groups determined to stop the construction and maintenance of our nation’s infrastructure, which would disproportionately harm the most vulnerable in our society. The campaign provides compelling information through external events, earned and social media, and informative reports highlighting the incredible opportunities that pipelines provide our communities by harnessing our nation’s energy abundance and delivering it to homes and businesses through a balanced, rational process to site and construct critical projects. CEA issued new reports that explained the tremendous environmental benefits pipeline infrastructure is providing the country, and the detrimental impacts that the failure to ease supply bottlenecks is having in areas of the country where officials refuse to build more infrastructure – particularly in the Mid-Atlantic and New England.

As part of its "all-of-the-above" approach to meeting our nation's growing energy needs, CEA strongly supports the expanded use of solar power nationally. We believe that diversifying our energy portfolio and improving the options for families and small businesses will help further reduce energy prices, lower emissions, and enhance our nation’s energy security. Therefore, CEA has successfully advocated for pro-solar, pro-grid, pro-consumer policies across the country as part of its “Solar Energy Future” campaign. The campaign’s advocacy efforts are designed to provide sound, unbiased information to policymakers and the public so they can make informed choices in this rapidly changing and evolving market – especially as solar installation costs continue to drop. By creating a conversation that talks about this growing industry and the increasing amount of renewables, especially solar, being integrated onto the grid, our aim is to ensure families and businesses can do what is best for their budgets. To further this discussion, CEA released an update to its 2016 solar report, “Incentivizing Solar Energy: An In-Depth Analysis of U.S. Solar Incentives,” providing briefings to the media, the general public, and state officials across the country. The new report analyzed the cost of a typical solar facility across 25 states and details the federal, state,

and local incentives available for private, rooftop solar photovoltaic (PV). It found that: ■■ Existing incentives for residential PV are significant. In all but five states, direct owners receive at least 75% of total system costs in total incentives under a standard rate structure. ■■ Utility-scale solar installations are less expensive to install and are incentivized at lower rates per watt than rooftop solar PV systems. Residential solar PV systems receive, on average, between 104% and 140% of total system costs in incentives. Utility-scale solar installations only receive about 45% of total system costs in incentives. ■■ Third-party-owned solar PV owners receive the most significant incentives. In contrast to directowned solar, third-party solar owners are able to generate additional tax benefits through accelerated depreciation. ■■ Solar PV installation may shift costs to other customers. Net metering programs pay residential PV solar customers full retail rates for their excess electricity production. ■■ Incentives for residential solar PV vary widely among the states.

Ongoing Campaigns

Modernizing Minnesota CEA works year-round to educate energy consumers, local leaders, and policy-makers about the need for oil and gas pipelines across the country through our "Pipelines for America" campaign. At the beginning of 2017, CEA noticed a disproportionate amount of people in opposition to the Line 3 pipeline replacement in Minnesota. While there are many pipeline issues across the country, this seemed the most crucial to ensure the safe delivery of energy to consumers in the state. In August of 2017, CEA launched "Modernizing Minnesota," which focused on how pipelines provide gasoline for our cars and trucks, help us save and store food, and insulate us from the cold

through providing the building blocks for products like coats, hats, and scarves. Pipelines are also the safest and most efficient way to transfer energy and raw materials for both the community and environment. As public infrastructure is the backbone of Minnesota, CEA believes it is critical that Line 3 is replaced and upgraded so it can continue to meet the energy needs of Minnesotans across the state. As Line 3 continues to move forward in the replacement process through permitting, construction, and approvals, CEA will continue to support that safe transition and delivery of critical fuel to the area.

The Wind Energy Initiative The "Wind Energy Initiative" (WEI) was launched in June 2018 with the overarching goal of educating consumers on the importance of wind as a key aspect of U.S. energy resource development. Thanks to ever-improving technology, wind is becoming cost-competitive with fossil fuel-generated electricity. Wind power costs will continue to drop, which will benefit consumers such as farmers and working-class families. Wind energy also diversifies the U.S. energy portfolio. Not only does it reduce America’s reliance on imported energy, but it also mitigates the impacts of price spikes and supply disruptions, contributing to our energy security.

CEA’s first WEI campaign began in Isabella County, Michigan in response to anti-wind activism within the local townships. Unfortunately, these activist efforts occurred to the detriment of people in the local communities, as well as farmers who could benefit from wind production on their properties. The campaign’s goal was to raise awareness and improve education about the benefits of an “allof-the-above” approach to energy, including renewables. As with other forms of energy development, wind energy is forced to battle many of the same issues that the oil and gas industry faces, like misinformation and activism, as well as state and local political challenges. 11

Event Highlights State and Federal Leaders Discuss Energy at 2018 Offshore Technology Conference CEA hosted a panel at the 2018 Offshore Technology Conference featuring Maine Governor Paul R. LePage, U.S. House Natural Resources Energy & Minerals Subcommittee Chairman Paul Gosar (AZ-04), U.S. Representative Garret Graves (LA-06), Alabama Senate Transportation & Energy Committee Chairman Gerald Allen, and U.S. Bureau of Safety and Environmental Enforcement Director Scott Angelle. With the 2019-2024 national offshore oil and gas leasing program under development, the panel discussed the country’s vibrant offshore energy industry and significant role of industrygovernment collaboration in furthering advancements in energy safety, technology, and production in the United States.

Testifying before the U.S. Congress CEA President David Holt was invited to testify before the House Natural Resources Committee to discuss the SECURE American Energy Act (HR 4239). Holt appeared before the Committee to testify on the benefits to families and businesses surrounding the significant increases in safety, technology, and innovation associated with energy activity on federal lands. He also highlighted how energy is a key economic driver for our communities and explained why CEA believes that a true all-of-the-above, robust, sensible energy policy will create jobs for individuals and families, improve our economy, and support our manufacturing sector.

Gulf Energy Forums CEA held forums in New Orleans, Louisiana and Biloxi, Mississippi to bring together U.S. Interior Department officials, other public policy leaders, members of the business community, and key stakeholders to discuss Gulf of Mexico energy, federal efforts underway to develop a new national offshore energy leasing program, and implications for the local, regional, and national economies, jobs, and energy security. Speakers included U.S. Bureau of Ocean Energy Management (BOEM) Gulf of Mexico Region Director Mike Celata, BOEM Strategic Resources Chief Renee Orr, Louisiana State Senator and Natural Resources Committee Chairman Norbèrt “Norby” Chabert, and leadership representing the Louisiana Association of Business & Industry, Greater Lafourche Port Commission, Coastal Conservation Association of Louisiana, South Louisiana Economic Council, Mississippi State Port Authority, Gulf Coast Business Council, and Mississippi Energy Institute. 12

The Future of Electricity Forum CEA hosted The Future of Electricity Forum in Washington, D.C. featuring FERC Commissioner Neil Chatterjee, Department of Energy Under Secretary for Energy Mark Menezes, U.S. Representative Richard Hudson (R-NC), and various energy policy experts to talk about the current power system and what the future of America’s energy sector and its adjoining electrical grid might look like. During the presentation, speakers from across fuel types continued to stress the need for an all-of-the-above energy strategy that does not pit fuel sources against each other.

Energy and Manufacturing Forums CEA held a series of Energy and Manufacturing Forums in Colorado, Florida, Michigan, Ohio, Pennsylvania, and West Virginia to highlight the nexus between affordable, abundant energy and the manufacturing renaissance. These events brought together state and federal officials, business and community leaders, and labor and manufacturing groups as panelists and attendees for a rational discussion on the importance of energy to manufacturing and how modernizing our energy infrastructure promotes job growth and the integration of renewable energy into our grid. These events help highlight issues of concern and interest in local communities that not only address the local business and political climate, but ultimately how families and businesses in these communities are affected.

Energy & Agriculture Forums CEA participated in a number of events over the last year that helped to further the dialogue on the importance of affordable, reliable energy supplies for the nation’s agriculture community. CEA’s advocacy and outreach efforts with various farm groups and agriculture leaders have continued across the country to bring awareness of energy policy and how it interconnects with agriculture.

Energy Day

Energy Day Summary Sometimes learning outside the classroom can be more memorable for students, which is why Energy Day is so well-received by students, teachers, and parents who attend the festival. It’s a way to showcase that subjects students find interesting and enjoyable can also translate into a career later in life. At the largest energy festival in the nation, Houston’s Energy Day, students get an opportunity to be a part of fun STEM experiments and exhibits that show them the kinds of things they can do as they advance in subjects that lead to careers in the energy industry. Colleges, businesses, and organizations show off the neat things they do in their jobs and just how exciting being in the energy industry can be. This annual free event is designed for students and their parents as a way for families to get outside for an interactive experience in an educational setting.

Houston In its 7th year, CEA’s Energy Day Festival attracted more than 30,000 students and their families from the greater Houston area – making Houston’s Energy Day the largest energy festival in America! Attendees had a chance to experience various STEM exhibits and hands-on experiments, from heat-sensing equipment and LNG graham crackers to a solar array and bikes that make electricity! The event, which will be going into its 8th year in 2018, is expected to continue to grow as organizations across Houston show kids just how fun it is to learn how vital STEM is to energy and energy to STEM. Following Energy Day 2017, students were asked four questions about their time at the festival. What they told us was this: ■■ 91% of students found STEM more interesting after Energy Day ■■ 86% of students had a better understanding of STEM/energy jobs after Energy Day ■■ More than half of students reported an increased understanding of the energy industry and an interest in pursuing a career in it The 7th Annual Houston Energy Day Festival occurred on Saturday, October 21, 2017, at Sam Houston Park in downtown Houston, Texas. 14

Energy Day Houston 2017 Accomplishments ■■ 7th annual Houston festival and inaugural Denver festival, both with city proclamations ■■ Houston’s official attendance number was 30,000 ■■ 55 exhibitors/76 community partners and sponsors ■■ Donated $10,000 to Pasadena ISD (TX) schools for Hurricane Harvey Relief ■■ Since 2011, CEA’s Energy Day Festival in Houston has provided over

$100,000 in financial awards to more than 700 K-12 students ■■ 14 school districts in the Houston area participated in Energy Day (Fort Bend, Sheldon, Alief, Houston, Spring Branch, Pasadena, Deer Park, La Porte, Clear Creek, Galena Park, Aldine, Katy, Pearland, and Cy-Fair) ■■ Transportation was provided to more than 1500 students

Denver Denver held its inaugural Colorado Energy Day Festival on Saturday, September 23, 2017 at Denver’s East High School, which served as the next location for the festival series.

Energy Day Colorado 2017 Accomplishments ■■ Around 50 featured exhibits, demonstrations, and interactions with industry experts to spark students’ interest in energy, sustainability, and STEM ■■ The 2017 festival awarded nearly $6,000 in financial awards to students and teachers in the CO High School Science Bowl, CO Science and Engineering Fair, and NREL Model Car Competitions

■■ Festival stories featured online, in print, and on radio by the following media outlets: CBS4, 9News, 7News, The Denver Post, Colorado Business Magazine, 303 Magazine, Westword, and Denver Business Journal ■■ School outreach included: Aurora Public Schools, Denver Public Schools, Littleton Public Schools, Englewood Public Schools, and Jefferson County Public Schools

CEA Chapter Accomplishments against this economically harmful tax proposal. Additionally, CEA submitted op-eds, co-hosted forums, and spoke at public forums to address the consequences that these additional taxes could have on consumers.

CEA Florida/CEA Georgia: ■■ CEA, business groups, and various Florida organizations urged support for an all–ofthe-above energy strategy in Florida, holding a press conference near the DOI's public meeting on the Draft Proposed Program to highlight the need to ensure that there is a balanced approach to responsible energy development in Florida. You can read more about the press conference on CEA’s website. ■■ During CEA Capital Days in Florida and Georgia, CEA members and its staff met with state officials from both the executive and legislative branches of government to discuss the "Pipelines for America" campaign, CEA Solar Campaign, and other CEA campaigns focused on initiatives that are important to Florida and Georgia. ■■ CEA Florida and Georgia have been active on the ground discussing energy policies and securing pro-energy letters of support and resolutions. We have secured pro-energy resolutions and letters from organizations and governments around the region including business and manufacturing organizations

and local governments. We will continue to be proactive in educating stakeholders and government officials on CEA’s "Campaign for America’s Energy." ■■ CEA presented to the Georgia Chamber of Commerce’s Natural Resources and Environment Committee in Atlanta to discuss offshore energy, natural gas development, pipelines, and energy security.

CEA Mid-Atlantic ■■ CEA held its first external forum with New Yorkers for Affordable Energy and state labor leaders in Albany on the importance of building pipeline infrastructure to help lower state and regional energy prices for households and manufacturers. ■■ CEA released two reports featuring the positive environmental and economic benefits New York is receiving through pipeline development and the use of natural gas. ■■ CEA has been a part of Pennsylvania’s severance tax/budget conversation, a pivotal issue in the state budget battle. CEA again joined forces with 14 other trade associations to advocate

■■ CEA helped the Pennsylvania Senate pass Senate Resolution 375, which urged Congress to pass several bills to help establish the Appalachian Energy HUB and take advantage of the region’s deposits of natural gas, which are rich in ethane. It is projected that development of an ethane storage and distribution hub in the Appalachian region could create as many as 100,000 new direct and indirect jobs and generate $28 billion in new economic output.

CEA Mid-Continent ■■ In partnership with allies on the ground, CEA secured pro-energy resolutions in the Alabama House and Senate and various Gulf Coast cities and counties and recruited signers of CEA’s new "Energy Consumer Protection Pledge." ■■ CEA presented at the Petroleum & Convenience Marketers of Alabama Annual Meeting and Manufacture Alabama Environmental Committee Quarterly Meeting, and hosted booths at the Mississippi Economic Council Annual Meeting and Louisiana Industry Day to help showcase and build support for U.S. energy. ■■ Attended U.S. Interior Department meetings and hosted media events in Austin, Texas, Baton Rouge, Louisiana, Jackson, Mississippi, and Montgomery, Alabama to highlight support for expanded access to Gulf of Mexico energy.

CEA Midwest ■■ Testified before the Missouri Senate’s Commerce, Consumer Protection, Energy and the Environment Committee about the importance of Senate Bill 564 which would freeze rate increases for energy consumers while modernizing Missouri’s energy grid. ■■ Engaged local, state, and federal officials in addition to business and community leaders at CEA’s Fueling Michigan’s Future Forum in St. Clair County, Michigan for a rational discussion on the importance of energy to manufacturers, how modernizing energy infrastructure promotes job growth, the importance of the skilled trades, and how we can integrate renewable energy successfully into our grid. ■■ CEA partnered with state trade associations to lead the press conference in Charleston, WV during a public meeting EPA held on the repeal of the Clean Power Plan. Speakers at our press conference included WV Attorney General Patrick Morrissey, Lt. Gov. and Senate President Mitch Carmichael, and Speaker of the House of Delegates Tim Armstead, among others. ■■ Moderated and participated in energy panel discussions for the Manufacturer’s Education Council, West Virginia Oil and Natural Gas Association, and the Canton Chamber of Commerce.

CEA Southeast ■■ Conducted CEA Capital Energy Days during the Virginia, North Carolina, and South Carolina Legislative Sessions.

CEA Chapter Accomplishments ■■ Held Energy and Manufacturing Forums throughout the year in Denver, Pueblo, Greeley, and Grand Junction o discuss energy’s effect on various types and sizes of manufacturers in the state. These events were hosted in conjunction with the Colorado Business Roundtable and featured U.S. Senators Bennet (D-CO) and Gardner (R-CO), along with U.S. House Members Lamborn (R-CO), Buck (R-CO), and Tipton (R-CO).

■■ CEA hosted an Atlantic Energy Forum in Florence, South Carolina with panelists including Kate MacGregor (Principal Deputy Assistant Secretary for Land and Minerals Management, U.S. Department of the Interior), Robert J. Alario (Managing member of Alario & Associates, LLC), and Stephen Goldfinch (South Carolina State Senator from 34th District). The community leaders discussed the potential for Atlantic offshore energy and its importance to the state, region, and nation. ■■ Highlighted support for expanded access to Atlantic energy at U.S. Interior Department open houses and related media events and city and county government meetings across Virginia, North Carolina, and South Carolina. ■■ Testified before the Kentucky Interim Joint Natural Resources and Energy Committee on national solar trends and enacting reforms to help ensure fair rates for everyone while advancing pro-solar, pro-grid, and pro-consumer policies.

CEA Rockies ■■ Partnered with Utah Governor’s Office of Energy Development, West Slope Colorado Oil and 18

Gas Association, Uintah County, Ute Tribe, and Utah Petroleum Association in a panel discussion on the importance of natural gas development across the Rocky Mountain region in the context of jobs, the economy, and the revitalization of the domestic manufacturing sector. This resulted in the development of a new report that will identify current resources and infrastructure, geographic and land use planning barriers and opportunities, and the federal, state, and local regulatory frameworks relevant to the development and export of natural gas resources in the Piceance and Uintah Basins. ■■ Western States Rural Natural Gas Initiative (WSRNGI) is a long-term collaborative effort between the energy offices of Utah and Colorado to develop western natural gas markets for the Piceance and Uintah producers. CEA is managing a report that will be released nationally, covering the following: Enhancing west coast natural gas exports through the identification and development of new markets, improving rural producers’ cost structures and competitiveness, sharing technology and innovation, and additional opportunities to jointly promote rural natural gas resources domestically and internationally.

■■ CEA identified New Mexico as a state where energy policies and regulations could be compromised to the detriment of consumers and small business that make up the majority of the state. In conjunction with CEA's launch of the "Campaign for America’s Energy," CEA is working actively in the state to educate the public and local businesses about the importance of energy to the region.

CEA Alaska ■■ CEA-Alaska and various Alaskan organizations joined together to show support for the U.S. Department of the Interior’s Draft Proposed 2019-2024 National OCS Oil and Gas Leasing Program. During a press conference held near the DOI’s public meeting on the Draft Proposed Program, speakers highlighted the positive impact that expanding offshore energy exploration in the Arctic could have on Alaskan families and businesses. ■■ CEA-Alaska sent letters to Alaska House Finance Committee members expressing strong disapproval of HB 411, which would increase the production tax by 75%, or by an estimated $778 million over the course of the fiscal year.

■■ CEA-Alaska submitted comments to the Bureau of Ocean and Energy Management in support of the Proposed 2019 Beaufort Oil and Gas Lease Sale. ■■ CEA-Alaska submitted comments in support of Alternative A, the Preferred Alternative in the Draft Supplemental Environmental Impact Statement for the Greater Mooses Tooth 2 (GMT2) development project in the National Petroleum Reserve Alaska (NPR-A).

CEA Northeast ■■ As part of our pipelines and solar efforts, CEA has begun targeted efforts in key New England states. ■■ In 2018, CEA released a report series that highlighted the impacts of high prices on families, consumers, and manufacturers in New England due to pipeline bottlenecks and a lack of infrastructure within the region. ■■ Conducted outreach to the Governors of New England urging them to find ways to increase energy infrastructure development in their states, especially given natural gas prices in the region during temperature swings and the continued need for imported fuel that could instead be delivered from within the United States. ■■ Provided testimony before the New Hampshire Public Utilities Commission on CEA's 2018 state solar incentives report, which updates the firstever comprehensive review it conducted in 2016 to quantify solar incentives across multiple states, detailing the federal, state, and local incentives for rooftop solar photovoltaic (PV) systems that have seen tremendous growth across the country.

Offshore Energy Access

"Offshore is important to America because of the jobs it creates and the royalties it produces…We can have both. We are not an either-or nation. We can have robust production and do it in an environmentally friendly way…It starts with safety, safety, safety and environment, environment, environment."

- Scott Angelle, Director, U.S. Bureau of Safety and Environmental Enforcement, Remarks at CEA’s April 2018 Offshore Technology Conference Panel Discussion

America’s offshore energy resources are critical to the economic and energy security of families and businesses across the nation, providing almost 20% of the country’s crude oil supply and playing a crucial role in enabling more affordable energy. To help secure the country’s long-term energy future and prosperity, the federal government can take important steps to expand access to American energy in places like the Gulf of Mexico, Atlantic, and Alaskan Arctic. Utilizing public forums, comment letter campaigns, and engagement with Members of Congress, governors, state legislators, and other key stakeholders, CEA ensured that families and small businesses were well-represented at key points and events related to offshore energy. 20

■■ CEA testified before the U.S. House Natural Resources’ Subcommittee on Energy and Mineral Resources to highlight the importance of expanded access to the nation’s offshore energy resources.

■■ Held Tele-Town Hall with over 100 stakeholders from around the country for U.S. Interior Department briefing and stakeholder discussion on the development of the 2019-2024 offshore energy leasing program.

■■ Submitted over 240 grasstops letters in support of offshore energy and the importance of expanded access and including new areas in the 2019-2024 Outer Continental Shelf Oil & Gas Leasing Program.

■■ Engaged state and local officials in the Midand South Atlantic and Gulf Coast states to underscore the benefits of Atlantic and expanded Gulf access and support offshore energy policies that will improve the quality of life for residents in these regions.

■■ Partnered with allies to secure the passage of pro-offshore energy resolutions in the Alabama Legislature and various Gulf Coast municipalities and counties.

■■ Provided ongoing support for permitting approval and construction of offshore wind energy projects.

■■ Held Gulf Energy Forums in New Orleans, Louisiana and Biloxi, Mississippi and an Atlantic Energy Forum in Florence, South Carolina to highlight the importance of offshore energy.

■■ Engaged U.S. Interior Department officials and held press events at 10 public meetings throughout the Gulf Coast, Atlantic, and Alaska regions on the 2019-2024 offshore energy leasing program.

■■ Weighed in to provide support for reasonable, science-based regulations that will allow for a better understanding and exploration of our nation’s offshore energy resources.

Onshore Energy Access

“When there is not enough energy to keep up with demand, energy prices skyrocket. The solution is sustaining energy production and improving our infrastructure. Yet, energy projects are often caught up in legal battles or — increasingly — partisan political gamesmanship that drags on for years, as anti-development groups mislead Americans into believing that they must choose between a healthy environment or access to American energy. The truth is we don’t have to choose. We can have both.” - David Holt, Real Clear Energy

The United States, propelled by recent growth in domestic onshore exploration and production of oil and gas, is the world’s top producer of natural gas and petroleum – surpassing the production levels of Saudi Arabia and Russia. Accounting for a small fraction of energy production just a decade ago, tight oil and shale gas production now accounts for the majority of U.S. domestic onshore energy production. Increased production of abundant and affordable onshore energy has led to savings for American consumers, in particular families and small businesses. The increased availability of affordable natural gas has also led to a resurgence of manufacturing and chemical production across the U.S. In the past year, CEA has utilized public forums, op-eds, blogs, events, and festivals to communicate the positive impact that onshore energy production has on American consumers and the American

economy. The growth in environmentally responsible production of oil and gas has driven significant economic growth in places such as Colorado, New Mexico, North Dakota, Pennsylvania, and Texas, all while carbon dioxide emissions are down significantly and methane emissions are stable. Renewable energy has also experienced growth in recent years. Utility scale solar has become more affordable and experienced an average annual growth rate of 54 percent over the past decade. Similarly, wind generation is estimated to increase from 60.72 gigawatts in 2013 to 113.43 gigawatts by 2020. Nuclear energy remains a vital bedrock of onshore energy production. The price stability and baseload strength of nuclear-generated electricity helps to insulate Americans against fluctuating electricity prices.

In 2017, about 30 percent of U.S. electricity was derived from coal power. The newly proposed Affordable Clean Energy Plan seeks to replace the 2015 Clean Power Plan and establish emission guidelines to address greenhouse gas emissions from existing coal-fired power plants. Previous regulatory uncertainties under the Clean Power Plan resulted in fluctuating demand for coal and price increases. Domestic energy production means Americans are less reliant on overseas energy production and less susceptible to accompanying price shocks. In other words, increased domestic energy production is improving our overall energy security. According to The Wall Street Journal, “Once heavily dependent on imports from the Middle East, the U.S. is getting

closer to achieving its goal of producing enough crude to meet domestic demand for refined products such as gasoline.” Onshore energy production contributes millions of jobs, billions of dollars in income for workers, and over a trillion dollars of overall economic benefits for the United States, representing one of the single largest drivers of the United States economy and Gross Domestic Product. CEA will continue to educate American policymakers, stakeholders, and the general public about the importance of maintaining and growing our ability to produce energy from oil and gas, nuclear, coal, wind, and solar sources. A diverse and abundant energy mix is essential to keeping energy affordable for all American consumers.

CEA Board of Directors

CEA Affiliate Members

Brett Vassey, Chairman

John Heimlich, Vice Chairman

Brett brings a depth of experience within the manufacturing industry, as well as policy development in the Southeast. Virginia Manufacturers Association represents the Commonwealth’s 6,000 manufacturers, which accounts for over 80% of the state’s exports to the global economy.

John is a member of the MIT Airline Industry Consortium, the Commercial Aviation Alternative Fuels Initiative (CAAFI) and the Air Transport Research International Forum (ATRIF).

President & CEO Virginia Manufacturers Assn.

Brian Welch, Treasurer Managing Director Marsh Wortham

Brian has over 27 years in the insurance business. Brian is a council board member for four major insurance companies which includes Executive Director on one.

Vice President and Chief Economist Airlines for America

John Eichberger Executive Director Fuels Institute

John has been Vice President of government relations and Executive Director of the Fuels Institute at NACS. He joined NACS in 2000 and CEA in 2012.

Wayne Zemke

Marketing Support Manager Caterpillar Global Petroleum

Randy Velarde President The Plaza Group

A 30-year veteran of the petrochemical and downstream energy industry, Randy spent 15 years in commercial management and market development at Shell Chemical and Texaco Chemical prior to forming The Plaza Group. He formerly served on the National Petroleum Council, appointed by former U.S. Secretary of Energy Bill Richardson.

David Holt, Ex-Officio

Wayne, a marketing executive with Caterpillar, Inc., is the immediate past chairman for Consumer Energy Alliance. Zemke has served on Consumer Energy Alliance board of directors since 2010.

Chad Eaton

State Government Affairs Manager Nucor Corporation Chad is the state government affairs manager at Nucor Corporation. Nucor is the largest steel producer in the United States and is North America’s largest recycler.

President Consumer Energy Alliance

David has served as President of Consumer Energy Alliance since January 2006. He has more than 25 years of experience working for state and federal agencies and Congress, and directing outreach and advocacy efforts.

Mark Pulliam

Chief Commercial Officer SwayPay, Inc. Mark is an accomplished leader with over 20 years’ experience delivering e-commerce solutions to the travel industry. Mark also serves as an Officer of the Board for Nexion, SynXis, and IgoUgo.

Members For 12 years, Consumer Energy Alliance has worked alongside dedicated citizens and community leaders nationwide, advocating for sensible energy policies for all consumers, such as families and small-businesses, by providing sound, unbiased information on energy issues. While our individual members make up our friends and neighbors who, each and every day, are trying to make a living and contribute to society, our affiliate members include a collection of entities from across the U.S. that not only employ people and grow and raise the food we eat, but also make, sell, and transport the goods that all Americans use and rely on daily. They include farmers, truck drivers, laborers, trades-people, energy producers, manufacturers, small business owners, academia, and conservation groups. Together – these energy consumers make up Consumer Energy Alliance. Energy Consuming 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32.

60 Plus Association, Inc. Air Conditioning Contractors of America Airlines for America Alaska State Chamber of Commerce American Iron and Steel Institute American Rental Association American Trucking Associations Anchorage Chamber of Commerce ArcelorMittal Associated General Contractors of Alaska Associated Industries of Florida Association of Equipment Manufacturers Beaver County Chamber of Commerce Bettis Brothers Sand and Gravel BHP Billiton Petroleum British-American Business Council Business Council of Alabama CAP Logistics Caterpillar Inc. Chemical Industry Council of Illinois Colorado Business Roundtable Colorado Energy Coalition/Denver Metro Chamber Colorado Farm Bureau Colorado Motor Carriers Association Consortium for Ocean Leadership CSTEM Teacher & Student Support Services, Inc. Dawson and Associates DcR Engineering Services, Inc. Elite Parking Services of America, Inc. Energy Industries of Ohio Farmington Chamber of Commerce Florida Chamber of Commerce

33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64.

Florida Fertilizer & Agrichemical Association Florida Handling Systems, Inc. Florida Restaurant and Lodging Association Florida Transportation Builders Association (FTBA) Garcia Jewelers General Electric Company Georgia Agribusiness Council Georgia Association of Manufacturers Georgia Chamber of Commerce Grand Junction Area Chamber of Commerce Greater Fairbanks Chamber of Commerce Greater Houston Partnership Greater Houston Restaurant Association Greater Pittsburgh Chamber of Commerce Greater Pittsburgh Chamber of Commerce Great Lakes Maritime Task Force Gulf Coast Business Council Houston Museum of Natural Science Houston Technology Center Illinois Chamber of Commerce International Longshoremen's Association Local 1768 International Union of Operating Engineers, Local 66 International Union of Operating Engineers - Local 450 Iron Workers International Iron Workers Local 3 J.B. Coxwell Contracting, Inc. Jacksonville Chamber of Commerce JEA John L. Wortham & Son, L.P. Kentucky Chamber of Commerce Kentucky Motor Transport Association Kissimmee - Osceola County Chamber of Commerce

CEA Affiliate Members / Financial Report

65. Laborers' International Union of North America Northwest Region 66. Laborers’ International Union of North America Midwest Region 67. Love's Travel Stops & Country Stores 68. Maine Motor Transport Association 69. Manufacture Alabama 70. Maritime Exchange for the Greater Delaware River and Bay 71. Midland Chamber of Commerce 72. Minnesota Chamber of Commerce 73. Mississippi Economic Council 74. Mississippi Energy Institute 75. Mississippi Manufacturers Association 76. Missouri Chamber of Commerce and Industry 77. Mobile Area Chamber of Commerce 78. Montana Chamber of Commerce 79. Mosaic Company 80. Myrtle Beach Area Chamber of Commerce 81. National Association of Convenience Stores 82. National Association of Neighborhoods 83. National Small Business Association 84. Nebraska Chamber of Commerce & Industry 85. Nebraskans for Jobs and Energy Independence 86. New England Ratepayers Association 87. New Mexico Trucking Association 88. NextOp 89. North Carolina Chamber of Commerce 90. North Carolina Farm Bureau 91. Northeast Pennsylvania Manufacturers & Employers Association 92. North Florida TPO / Clean Cities Coalition 93. Nucor Corporation 94. Odessa Chamber of Commerce 95. Offshore Energy Center 96. Ohio AgriBusiness Association 97. Ohio Cast Metals Association 98. Ohio Chamber of Commerce 99. On Deck Seafood 100. Oviedo-Winter Springs Chamber of Commerce 101. Pennsylvania Chamber of Business and Industry 102. Pennsylvania Energy Infrastructure Alliance 103. Pennsylvania Motor Truck Association 104. Petroleum & Convenience Marketers of Alabama 105. Pipefitters Local Union 208 106. Port of Corpus Christi 107. Ports-to-Plains Trade Corridor Coalition 108. Research Partnership to Secure Energy for America 109. Resource Development Council for Alaska, Inc. 110. Rifle Area Chamber of Commerce

111. Ring Power Corporation 112. Santa Barbara County Energy Coalition 113. Science & Engineering Fair of Houston 114. Shale Crescent USA 115. South Carolina Farm Bureau Federation 116. Southeastern Fisheries Association, Inc. 117. Southpointe Chamber of Commerce 118. Spitzer Industries, Inc. 119. St. Louis Regional Chamber 120. Sun Glass 121. Tennessee Chamber of Commerce & Industry 122. Tennessee Farm Bureau Federation 123. Texas Association of Manufacturers 124. Texas Trucking Association 125. The Business Council of New York 126. The Carey Group 127. The Plaza Group 128. thyssenkrupp North America, Inc. 129. Transportation Advocacy Group Houston (TAG) 130. University of Texas Center for Energy Economics 131. US Chamber of Commerce 132. Virginia Manufacturers Association 133. W.W. Gay Mechanical Contractor, Inc. 134. Washington County Chamber of Commerce 135. West Gulf Maritime Association 136. West Virginia Manufacturers Association 137. Ygrene Energy Fund

Energy Producing 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Alaska Oil and Gas Association Alaska Support Industry Alliance Ameren Missouri American Association of Petroleum Geologists American Exploration & Production Council American Fuel & Petrochemical Manufacturers American Gas Association American Public Gas Association American Public Power Association Arkansas Independent Producers and Royalty Owners Association of Electric Companies of Texas, Inc. Association of Oil Pipe Lines Big Rivers Electric Corporation BP Cabot Oil and Gas Corporation CenterPoint Energy, Inc. Centrus Cheniere Energy, Inc. Chevron Corporation Colorado Mining Association

21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47.

ConocoPhillips Dominion Energy Edison Electric Institute Enable Midstream Energy Equipment and Infrastructure Alliance, Inc. Energy Transfer Partners EOG Resources Equinor ExxonMobil Florida Electric Cooperative Association Florida Power & Light Co. Freedom Solar Power Golden Pass Products LLC Houston Renewable Energy Network (HREN) Independent Oil and Gas Association of West Virginia Independent Petroleum Association of America Indiana Energy Association International Association of Drilling Contractors Interstate Oil & Gas Compact Commission Kentucky Association of Electric Cooperatives Kentucky Oil and Gas Association Kentucky Oil and Gas Association Louisville Gas and Electric Company and Kentucky Utilities Company Minova Global Missourians for a Balanced Energy Future National Fuel Gas Company National Ocean Industries Association

48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75.

National Ocean Policy Coalition National Rural Electric Cooperative Association National Solar Power, LLC Natural Gas Supply Association New Mexico Oil & Gas Association Noble Energy Inc. North Carolina Association of Electric Cooperatives Nuclear Energy Institute One Energy Enterprises LLC Partnership for Affordable Clean Energy PDC Energy Phillips 66 Pipeline Seneca Resources Company LLC Shell Oil Company SM Energy Southeastern Wind Coalition Tennessee Mining Association Tennessee Oil & Gas Association Texas Alliance of Energy Producers Texas Alliance of Energy Producers Texas Oil and Gas Association The Williams Companies, Inc. Usibelli Coal Mine, Inc. US Oil & Gas Association West Virginia Oil and Natural Gas Association Wisconsin Industrial Energy Group, Inc. Wolverine Pipeline Company Xcel Energy

2017 (Cash basis) • Gross Revenue:........................................................................................................................................$4,247,165 Ops/Member Services:...................................................................................................................$3,947,717 Energy Day:.........................................................................................................................................$299,448 • Expenses:.................................................................................................................................................$2,923,586

2018* Estimated (Cash basis) • Gross Revenue:........................................................................................................................................$4,386,015 Ops/Member Services:...................................................................................................................$4,009,515 Energy Day:.........................................................................................................................................$376,500 • Expenses:.................................................................................................................................................$3,369,888 *Includes money from CEA partner organization Consumer Energy Education Foundation (CEEF)

Consumer Energy Alliance 2211 Norfolk Suite 410 Houston, Texas 77098 713.337.8800 www.ConsumerEnergyAlliance.org