The Michigan Chemistry Council recently submitted a letter to a legislative committee in support of a bill (HB 6019 – sponsored by Rep. Graham Filler) authorizing a nuclear energy feasibility study. The bill would require the Michigan Public Service Commission (MPSC) to engage an outside consulting firm to study the advantages and disadvantages of nuclear power in Michigan (including both economic and environmental impacts).

On Tuesday, September 12th, MCC Executive Director John Dulmes, along with Josh Lunger of the Grand Rapids Area Chamber of Commerce, testified before the House Energy Policy Committee. The hearing focused on the issue of electric choice and the Michigan Public Service Commission's (MPSC) implementation of the new energy law (PA 341).

In particular, the MCC and other parties supporting electric choice are concerned about the potential mandate for a Local Clearing Requirement (LCR) that would restrict options for the use of capacity by Michigan energy providers, and unnecessarily drive up costs.

Many industries in Michigan use natural gas – including the power, residential, commercial and transportation sectors. A lesser-recognized but equally important trade that has benefited enormously from the recent American natural gas renaissance is chemical manufacturing.

While most people are instinctively familiar with everyday products like shoes, clothing, packaging, tires, paints and carpeting – they may not realize that many of these products are made through chemistry with materials derived from natural gas. And in the past decade, we’ve seen unparalleled opportunities for the business of chemistry in Michigan and across the United States because of abundant sources of domestic natural gas in the Marcellus and Utica shale formations.

On July 29^th, the Federal Energy Regulatory Commission (FERC) released a final environmental impact statement (EIS) for the Rover Pipeline. FERC’s extensive review process incorporated findings from a wide range of analyses, input from stakeholders gathered over the course of more than ten public comment meetings, and recommendations from other federal and state regulatory bodies. Ultimately, FERC concluded that Rover would be able to successfully mitigate its environmental impacts through enacting its detailed planning and FERC recommendations.

 The Michigan Chemistry Council (MCC) was extremely encouraged to see FERC take this important step in the approval process of the Rover Pipeline. Our region currently suffers from a dearth in midstream pipeline infrastructure – while a wealth of domestic natural gas is in production in the Marcellus and Utica shale formations, businesses and manufacturers in Michigan are unable to tap into those resources. The Rover Pipeline would readily grant that access, providing our energy-intensive members with affordable natural gas to produce the many everyday consumer products that our customers rely on.

There has been much written about the importance of natural gas to the members of the Michigan Chemistry Council. Natural gas heats and powers homes, generates electricity, and is even used to create fertilizer, plastics, pharmaceuticals, dyes, and detergents, among a litany of everyday products consumers rely on. There are two recent studies that illustrate the benefits of expanding our region’s access to natural gas through the construction of midstream infrastructure.

 Jeffrey Guilfoyle, a vice president of Public Sector Consultants (PSC), recently appeared before the Michigan House of Representatives Committee on Energy to present an economic impact study on oil and natural gas in Michigan. The report, titled “Michigan’s Oil and Natural Gas Industry: Economic Contribution,” details the positive effects that the development of our state’s natural resources have generated.

Most Michiganders are familiar with natural gas as the fuel that helps us keep our homes warm and comfortable in the winter. We may also use it to cook our meals, heat our water, dry our clothes, and light up our fireplaces.

Gas does all these jobs safely, efficiently, and affordably.

Date: March 23, 2016 - Chelsea High School, Chelsea, MI

Docket No. CP 15-93-000

Imagine if every time you stopped to buy gas, you spilled two gallons for every one you put in the tank. That’s exactly what happens with energy wasted at factories and power plants across Michigan and the rest of the country: for every barrel of oil or ton of coal burned to generate power, two-thirds of the potential energy is lost – enough energy lost nationwide to power the entire country of Japan.

What if we could capture that lost energy and use it, thereby increasing the efficiency of Michigan’s power plants and factories? Well, there are commercial technologies that do just that; they capture waste energy, the best clean energy source available. Combined heat and power (CHP) produces both heat and power from a single source of fuel, which provides double the efficiency of traditional power generation. Waste heat to power (WHP) captures waste heat that would typically be vented from an industrial facility and uses it to make electricity without additional fuel or emissions. Both of these “cogeneration” technologies dramatically lower energy use, emissions, and costs; thereby creating jobs, increasing private investment, and improving the competitiveness of Michigan businesses.

On February 19th, the Federal Energy Regulatory Commission issued a Draft Environmental Impact Statement (dEIS) that assesses the potential environmental effects of the Rover natural gas pipeline project, as well as details for the next hearings the agency will hold in communities in our state.

The release of the draft EIS is a step in the right direction toward final approval of this important project. The Rover pipeline represents a tremendous opportunity to create jobs and provide our country with energy security. The pipeline will create 10,000 local construction jobs and provide $4.2 billion of investment into state and local economies.

One could say that the chemical manufacturing industry makes the world go round. More than 96 percent of all manufactured goods are directly touched by the business of chemistry. Every new home built in the U.S. contains over $15,000 of chemistry products, while every light car produced in the U.S. contains over $3,500 of chemistry products.

For Michigan, home of America’s major automakers and the 13th-largest chemical-producing state in the nation, the chemical industry is particularly vital. At $15.5 billion, chemistry is the third-largest manufacturing sector in Michigan.  Chemical manufacturing provides approximately 30,000 direct jobs and another 90,000 related jobs in Michigan, including more than 34,000 jobs in plastics and rubber products.

The following is a brief outline summarizing the key elements of the U.S. EPA Clean Power Plan from a Michigan perspective, prepared for the Grand Rapids Area Chamber of Commerce Environmental Affairs Committee Meeting on September 22, 2015.

Please click here for the full memo.

The Michigan Chemistry Council's 2015 Policy Priorities may be found by clicking here.

The Michigan Chemistry Council's 2015 Energy Policy Agenda may be found by clicking here.