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by Creg Smith and Becky Fowler
Outside the Beltway that rings Washington, D.C. there are API employees in State Petroleum Councils (SPCs) and retained contractors who represent API membership in 33 states from Maine to Arkansas and North Dakota to Florida.
In D.C., the focus is on Congress. In the SPCs, it’s on the state legislature. In D.C., the focus is on the President. In the SPCs, it’s on the governor. In D.C., there are many API employees working together in the nation’s capital. In the SPCs, there are at most three employees working together in a state capital.
The SPCs are located in the capitals of 21 states and
New York City, with some offices managing retained counsel
in other states. The SPCs are grouped by region—Eastern,
Central and Southern—each with a regional director,
an executive director, and in six states, an associate
director as well. SPC staff work with legislators, regulators,
the media, coalitions and member company representatives
on issues critical to that state.
Why only 33 states and not more?
There are some single-state and regional oil and gas associations located in western and southwestern parts of the U.S. where API does not have offices. Like the SPCs, these allied associations are advocates on issues of importance to the industry in the states. API works closely with these allied associations in the sharing of information and resources.
Why do we need state offices?
Unlike Congress, the state legislative process moves quickly. A bill can be introduced and to the Governor’s desk in a matter of days. Having in-state staff who have developed relationships with lawmakers is key in these situations. In fact, sometimes in the states, success is not having legislation introduced rather than defeating it.
In 2007, all 50 states held legislative sessions. By Labor Day, all but 10 will have completed their work for the year.
Many states have taken on issues that they believe were not dealt with in Congress, and keeping track ofthe myriad of state proposals can be a daunting task. The API State Government Relations Department works with the SPCs and allied oil and gas associations to identify and track legislation and regulation of concern to the industry.
At the top of the lawmakers’ agendas are energy alternatives and conservation. Alternative energy is often viewed as an impetus for economic development and as a means to combat global warming. Issues this year being addressed by the SPCs range from biofuel mandates, compliance with the Clean Air Act, restrictive marketing, climate change and gross receipts taxes to underground storage tanks and severance taxes. One thing for sure, there is never a “slow day” for those involved in state government relations.
To ensure the SPCs are represented on various API issue teams and are kept in the loop with the work at headquarters, API’s State Government Relations Department acts as a liaison with other departments. In addition, Truman Hunt, director of State Government Relations, has his office in Washington, D.C. A former state petroleum council director in Mississippi, Truman has been an API employee for over 25 years and based in Washington for over 20 years. Three region directors, Drew Cobbs, Eastern; John Kerekes, Central; and, Tom Parker, Southern; assist Truman and manage the state offices in their respective regions. Drew and Tom have additional responsibilities as they continue to head the offices in Maryland and Arkansas.
API members of the state government relations network have access to an online database which serves as a means of communication between API, the SPCs and member companies. The database consists of weekly legislative/regulatory highlights report from the state petroleum councils, a weekly summary legislative/regulatory highlights report, including information from all 50 states and various special issue reports and directories.
Like most of API, the state petroleum council organization has member company representatives that provide guidance. The General Committee of State Relations (GCSR) currently is chaired by Todd Schultz of ExxonMobil. The GCSR provides the policy and strategy oversight of the state legislative and regulatory activities of the state petroleum councils. The GCSR serves as the one forum in the petroleum industry where the companies come together to discuss state legislative and regulatory trends and developments as well as policy implications involving all 50 states. This forum plays an important role in ensuring that appropriate individual company and industry resources are applied to state issues. |
