The Source - Fall 2008 - (Page 17)

legislation gas industry? emissions. The American Public Gas Association (APGA) has argued that natural gas is a solution to reducing greenhouse gas emissions and should not be included in the cap. The intent of regulation is to define point where emissions will be monitored and reduced. If unable to meet required reductions, entities at the point of regulation will have to purchase allowances. APGA has maintained that the point of regulation should be upstream. From a simplicity standpoint, the higher upstream you are, the fewer points of regulation need to be regulated. APGA also has expressed strong concerns to Congress about the burden that would be placed on public gas systems–half of which have five employees or less–by requiring them to navigate what will surely be a complex emissions-allowance trading market. Regardless of where the point of regulation is assigned, there will be a price impact associated with this regulatory burden, which will further strain consumers. On the bright side The good news is that some of these impacts can be mitigated. Fuel switching from coal to natural gas for electricity generation can be minimized if the legislation Congress passes includes reasonable timelines that allow technology and new generating resources to come online. In addition, the increases in demand can be offset through equal increases in supply, which is a position APGA has strongly held. We have ample resources of domestic natural gas available; it’s just a matter of whether Congress and the administration will allow access to it. Supply can come from conventional sources, but we also should look at unconventional sources, such as methane hydrates. Methane hydrates look like frozen ice crystals, and they store immense amounts of methane. There is tremendous potential for methane hydrates to play a critical role in meeting our mid- and longterm natural gas needs. Unfortunately, to date Congress has shown an unwillingness to address the supply issue, but it’s critical that public gas systems and their consumers continue to educate Congress on the importance of increasing supply as a means to obtaining long-term affordable natural gas. Direct use reduces emissions Climate change legislation also could be an opportunity for public gas systems. APGA has maintained that increasing the direct use of natural gas can be part of the solution to reducing greenhouse gas emissions. The inherent cleanliness of natural gas coupled with the high efficiency of natural gas equipment can play a critical role in meeting required reductions in greenhouse gas emissions while improving overall energy efficiency. For example, replacing electric resistance water heaters with natural gas water heaters can cut greenhouse gas emissions by up to two-thirds. Direct use also reduces the need for the construction of new power plants, which is important because the most efficient and cost-effective kilowatt of electricity is the one you do not have to generate. In the direct use of natural gas, THE SOURCE | FALL 2008 , VOL. 1, ISSUE 1 17 

Table of Contents Feed for the Digital Edition of The Source - Fall 2008

The Source - Fall 2008 Contents First Person APGA Awards APGA Events Overview Up Next in THE SOURCE Grassroots Connections Climate Change Legislation Market Transparency: An Insider's View Legislative Outlook The Pipeline Marketing Matters Advertisers' Index At Last

The Source - Fall 2008

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