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letter
To Senate Committee on Energy and Natural Resources about Lowering Natural Gas Prices

January 7, 2005

Senator Pete Domenici
Chairman, Senate Committee on Energy and Natural Resources
Senator Jeff Bingaman
Ranking Member, Senate Committee on Energy and Natural Resources
United States Senate
Committee on Energy & Natural Resources
364 Dirksen Senate Building
Washington, DC 20510

RE: Proposals for Natural Gas Supply and Demand Conference

Dear Senator Domenici and Senator Bingaman:

   
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Full Text of UCS Comment to Senate Committee on Energy and Natural Resources (PDF)

On behalf of the Union of Concerned Scientists, I am writing in response to your request for suggestions regarding policy proposals that address concerns with natural gas supply and demand constraints, and rising natural gas prices. The Union of Concerned Scientists (UCS) is a nonprofit organization of more than 50,000 citizens and scientists working for practical environmental solutions. For more than two decades, UCS has combined rigorous analysis with committed advocacy to reduce the environmental impacts and risks of energy. Our energy program focuses on encouraging the development of clean and renewable energy resources, such as solar, wind, geothermal and biomass energy, and on improving energy efficiency. 

We understand that the goal of this process is to find ways to reduce the cost of natural gas by identifying policies that increase natural gas supplies, and reduce demand for natural gas. In short, UCS believes that implementing policies to increase energy efficiency and renewable energy use for generating electricity would help to achieve both of these goals. These mechanisms are also needed to meet our future electricity needs, diversify our electricity supply, stabilize natural gas and electricity prices, improve our nation’s energy security, and protect the environment. Specifically, we recommend that the Committee consider a renewable electricity standard—a market-based mechanism that requires utilities to gradually increase the portion of their electricity produced from renewable energy sources—as one of the most effective approaches for reducing our reliance on natural gas and stabilizing prices. In addition, we recommend a broad range of tax incentives and other financial support mechanisms to promote renewable energy and energy efficiency. Our detailed comments and recommendations—divided by issue area—follow below.
 
 
Sincerely,

Alan Nogee
Clean Energy Program Director
Union of Concerned Scientists

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