Chris Brown, Director of Policy and Research offers insight into the economic impact of legislation
FOR IMMEDIATE RELEASE
March 5, 2019
Contact: Cinamon Watson
Denver, CO – Today, Chris Brown, Common Sense Policy Roundtable (CSPR) Director of Policy and Research submitted testimony on SB 19-181.
On Friday, Colorado lawmakers introduced sweeping new regulations on the oil and gas industry in the form of Senate Bill 19-181. Opponents of the bill have charged the new regulations will have a chilling effect on the industry. Proponents claim the bill offers protections for communities. The first hearing on the bill takes place today in the Senate Transportation and Energy Committee.
“Concerning to us, as a group of organizations that stand for the promotion of free-enterprise and the continued prosperity of the citizens of Colorado, is not just the potential substantial loss in economic value, but the extent to which this current draft exempts the economic feasibility from being required as a consideration for future regulations or permitting,” said Brown.
The new legislation comes just four short months after voters soundly defeated Proposition 112, a measure that would have effectively shut down new oil and gas production in Colorado by increasing the setback requirement for natural gas and oil development to 2,500 feet. In consideration of Proposition 112, CSPR released a comprehensive studyon the economic and fiscal impact of that measure.
“While there are differences between SB-19-181 and Proposition 112, our study offers insight into the impact of new regulations,” continued Brown. “Given the magnitude of the impacts, and the continued reliance of our economy on oil and natural gas, I wanted to be here today, to again, publicly share the results of our study.”
Brown’s full testimony:
Thank you Madam Chair,
My name is Chris Brown and I am the Director of Policy and Research for the Common Sense Policy Roundtable.
My organization, along with the other REMI Partners, including The Colorado Association of Realtors, Colorado Concern, Denver South Economic Development Partnership and The Colorado Bankers Association, released an in-depth study on the economic and fiscal impacts to the state of Colorado if Proposition 112 were to have passed.
Given the magnitude of the impacts, and the continued reliance of our economy on oil and natural gas, I wanted to be here today, to again, publicly share the results of our study. Concerning to us, as a group of organizations that stand for the promotion of free-enterprise and the continued prosperity of the citizens of Colorado, is not just the potential substantial loss in economic value, but the extent to which this current draft exempts the economic feasibility from being required as a consideration for future regulations or permitting.
This would risk the economic vitality of many communities throughout Colorado as lower cost alternatives would not be explored, even as the economic impacts may leave thousands of Coloradans out of work.
I would urge you to visit our website www.commonsensepolicyroundtable.org, where you can find the full economic analysis of Proposition 112, but here were some of our key findings.
- Based on the surface setbacks of 2,500 ft, after accounting from some level of horizontal drilling to access reserves under the surface setback, we estimated that between 62% and 80% of new production would not occur.
- By 2030, the Colorado economy would have lost between 115,000 and 147,000 jobs annually, resulting from losing between 44% and 57% loss of the entire industry.
- The cumulative loss in state and local tax revenue by 2030 would be between $7 and $9 billion.
About Common Sense Policy Roundtable: Common Sense Policy Roundtable is a non-profit, free-enterprise think tank dedicated to the protection and promotion of Colorado’s economy. CSPR actively follows job and economic development legislation and free enterprise public policy initiatives.
About the REMI Partnership: Common Sense Policy Roundtable, Colorado Concern, Colorado Association of REALTORS®, Colorado Bankers Association, and Denver South Economic Development Partnership have partnered to develop independent, fact-based analysis that quantifies the broader economic impacts associated with policy changes. The partnership has provided Colorado lawmakers, policymakers, business leaders, and citizens with greater insight into the economic impact of public policy decisions that face the state and surrounding regions.