COLUMBUS — The Buckeye State and its number one industry — manufacturing — have much riding on the high-profile energy battle initiated by the leaders in that state up north.
For those who haven’t heard, Michigan Gov. Gretchen Whitmer and Attorney General Dana Nessel seek to shut down the Enbridge Line 5 pipeline, a major oil pipeline that carries petroleum from Canada to Ohio refineries. These refineries provide energy and jobs for Ohioans, including manufacturers.
Undoubtedly, closure of Line 5 would be an economic disaster for our region and the industries that depend on these oil resources.
According to a study conducted for the Consumer Energy Alliance, Line 5’s shutdown would put at least 33,000 jobs at risk and trigger a minimum of $20.8 billion in combined economic damages in Ohio, Michigan, Indiana, and Pennsylvania.
It’s estimated the four states would lose a combined $8.3 billion in Gross State Product, $2.36 billion in labor earnings, and $265.7 million in state tax revenues.
On the energy front, the pipeline provides oil to refineries in Oregon; more than 1,200 Ohioans are employed at these facilities. Losing this refining capacity would cause regional fuel prices to soar, while making the nation more dependent on Middle Eastern oil.
The Ohio Manufacturers’ Association strongly supports the uninterrupted operation of the pipeline. Earlier this year, the OMA supported a measure — Senate Resolution 41 — that was passed unanimously by the Ohio Senate imploring Governor Whitmer to keep Line 5 up and running.
Ohio’s congressional delegation and Gov. Mike DeWine have also been engaged on this critical issue.
Governor Whitmer and Attorney General Nessel have pointed to environmental concerns as the main driver behind their efforts to turn off the spigot on Line 5. Yet the pipeline has likely prevented dozens of spills by ship, rail, or truck over the decades, and it hasn’t experienced a leak in more than 65 years of operation, according to Enbridge, the pipeline’s owner.
Moreover, Enbridge received approval from Michigan’s previous governor to begin construction of a $500 million replacement pipeline made from U.S. manufactured steel. Enbridge would pay all the costs of this upgrade.
Gov. Whitmer recently voluntarily dismissed her federal lawsuit to close the pipeline – a development that Ohio Lt. Gov. Jon Husted said indicated the State of Michigan was “on weak legal ground.”
Unfortunately, Michigan continues its legal fight at the state level. Attorney General Nessel said she and the governor remain steadfast in their campaign against Line 5, despite the regional economic devastation that would occur if they are successful.
Ohio manufactures urge Michigan’s top government officials to consider the perspectives of a broader constituency and acknowledge the domino effect that would be initiated by closing this vital artery of energy. History shows pipelines are the safest way to move energy. A balanced solution — one that considers both economic and environmental concerns — does exist, as it does in every situation.
If Michigan’s leaders are unwilling to reconsider their approach, this situation presents a clear opportunity for President Biden to lead.
In early November, the Biden Administration clarified its position on the Line 5 pipeline, when a White House spokesman said that shutting it down “… is something that we’re not going to do.”
As American businesses and families continue to experience significant energy inflation, the White House has a chance to reaffirm the United States’ commitment to the 1977 bilateral pipeline treaty with Canada, our largest trading partner.
U.S. Supreme Court Chief Justice John Roberts once wrote: “People, for reasons of their own, often fail to do things that would be good for them or good for society. Those failures — joined with the similar failures of others — can readily have a substantial effect on interstate commerce.”
This is exactly why the actions of one state must not be allowed to unilaterally undermine the rest of the nation’s energy supply.
Rob Brundrett is managing director, public policy services, of the Ohio Manufacturers’ Association.
First Published December 24, 2021, 5:00 a.m.