ILTA ready to work with Biden

PART OF THE SOLUTION

USA • THE TERMINAL INDUSTRY IS READY TO WORK WITH THE BIDEN ADMINISTRATION ON SHARED GOALS FOR SUSTAINABILITY AND ECONOMIC GROWTH, SAYS ILTA PRESIDENT KATHRYN CLAY

AS MANY NEW political appointees and elected officials have arrived in Washington, the International Liquid Terminals Association (ILTA) has begun work to educate these new incumbents. Our dialogue with these newly sworn-in officials involves explaining to them both the challenges facing our industry and the opportunities for terminals to be a part of the solution for our shared goals.

ILTA member companies are committed to providing safe, secure, efficient and environmentally responsible services to energy and fuel supply chains. Terminals connect modes of transport and enable economic growth at home and abroad. While the political landscape has changed at the federal level, the terminal industry’s commitment to its mission and standards remains resolute.

Within hours of taking the oath of office, President Biden issued a series of executive orders to reverse many of President Trump’s orders, including a host related to climate, the environment and energy. President Biden also has indicated that his regulatory agencies will prioritise policymaking related to climate change, environmental justice and encouraging growth in renewable energy. The Democrat-led Congress has echoed his calls, with leaders signalling that they will move quickly to address environmental issues.

In the near term, terminal operators are working to support these same goals by improving the energy efficiency of their own operations, practicing sound water resource management and establishing productive dialogues with their neighbouring communities.

ALREADY ON THE CASE The new administration’s priorities are likely to accelerate plans already underway at many terminal companies to address sustainability. In the longer term, we see tremendous growth potential for renewable fuels and chemicals derived from renewable sources – and supply chains for these commodities depend on liquid terminals today.

Terminals store and handle crude oil and a wide variety of petrochemicals and fuels, as well as a vast array of other non-energy products like liquid foods, such as vegetable oils and molasses. Other liquid fuels, or liquid energy carriers, may be a part of our energy mix in the coming decades. No matter the source or the carbon footprint of a liquid commodity, at some point its supply chain will depend upon the storage and logistics services provided by a liquid terminal.

The commitment that ILTA member companies have made to sustainability is

apparent in other ways as well. Terminal companies are increasingly investing in renewable energy projects such as hydrogen production and solar installations. One innovative approach involves installing solar panels on the roof of tanks. Such actions not only reduce greenhouse gas emission, but they also help offset the terminal’s own energy costs, which average about 20 per cent of a terminal’s operating budget.

BACK IN THE FOLD President Biden’s prioritisation to combat climate change was made clear by one of his very first actions on entering the White House: announcing that the US would rejoin the Paris Agreement on Climate Change. President Biden also directed all executive departments and agencies to immediately review and take appropriate action “to address federal regulations and other executive actions taken during the last four years that were harmful to public health, damaging to the environment, unsupported by the best available science, or otherwise not in the national interest”.

The President also moved quickly by re-establishing the Interagency Working Group on the Social Cost of Greenhouse Gases and directed the agencies of the federal government to account for the full costs of greenhouse gas emissions, including climate risk, environmental justice and inter-generational equity. President Biden also elevated climate’s role in foreign and security policy, such as requesting a national intelligence estimate on the security implications of climate change.

With Democrats holding slim majorities in both the House and Senate, President Biden will likely continue to look to additional executive and regulatory actions to enact the $2 trillion environmental plan he outlined during his presidential campaign. Major climate change legislation will be difficult to achieve. Democrats are divided on the subject and President Biden is unlikely to pick up much, if any, Republican support. Democrats have tried and failed to pass stand-alone climate change legislation when they last controlled unified government. Expect inclusion of smaller legislative proposals to address climate to ride inside stimulus, infrastructure and appropriations measures.

Some instances of potential bipartisanship and compromise are possible. Both the Biden administration and conservative voices such as the US Chamber of Commerce are calling for dramatic investments in the nation’s infrastructure. The White House has indicated that a major infrastructure bill is a top priority, behind pandemic relief, and both Democrats and Republicans in Congress have signalled a willingness to work with President Biden to get a package passed.

Ports and waterways have been a significant area of under-investment for many years, and ILTA will work with coalition partners to advocate for their inclusion in an infrastructure package. This could mean more money for maintenance, repair and expansion of harbours, ports and inland waterways.

COMMITMENT TO INDUSTRY The liquid terminals industry will continue to be a key part of our national energy infrastructure no matter which political party holds the reins in Washington. Terminals will also remain imperative to helping the US trade balance, facilitating the import and export of a wide variety of products, creating jobs and spurring our economy. At ILTA, we are committed to making sure these contributions are known and valued in policy discussions. We look forward to the work ahead, sharing our industry’s dynamic story with other industry groups, external stakeholders, and government decisionmakers.

Founded in 1974, ILTA is an advocate and key resource for the liquid terminalling industry. With headquarters in the Washington, DC, area, ILTA advocates on behalf of the liquid terminal industry in Congress and at the federal agencies. ILTA also maintains close working relationships with other organisations that interact with the tank storage industry.

ILTA members’ facilities provide critical links between all modes of transport for liquid commodities, such as crude oil, petroleum products, chemicals, renewable fuels, fertilisers, vegetable oils and other food-grade materials that are central to the US economy. Terminals provide essential logistics services that spur trade both within the US and connect the US economy with overseas markets. ILTA members are in all 50 states and in many other foreign countries. ILTA’s membership also includes about 400 companies that supply equipment and services to the terminal industry. www.ilta.org

KATHRYN CLAY (RIGHT), ILTA PRESIDENT, SAYS THE US

TERMINALLING INDUSTRY NEEDS TO HELP THE NEW

BIDEN ADMINISTRATION TO PURSUE ITS STRATEGIC