NPC Natural Gas Study Takes Good First Step in Recommending Energy Efficiency to Avoid Future Natural Gas Crises, Says Alliance to Save Energy; But Additional Efficiency Measures Can Take us Even Further on the Road to a Balanced Energy Future

Statement by Alliance to Save Energy Acting Co-President Mark Hopkins On National Petroleum Council Natural Gas Study

“Given our nation's long history of short memories when it comes to energy crises, the National Petroleum Council (NPC) is to be commended for putting energy efficiency at the top of its list of long-term recommendations for achieving a ‘balanced future' for natural gas. We commend the council for recognizing the role energy efficiency has played in making our economy more productive since the 1970s and agree that our nation cannot afford a future plagued by sudden price increases that create uncertainty for consumers, business, and industry.

“The NPC recommendations that move us toward a balanced energy future include:

• educating consumers about efficiency and promoting Energy Star and other efficient consumer products;
• upgrading building codes and equipment efficiency standards;
• deploying high-efficiency distributed energy, including co-generation to capture waste heat for energy;
• encouraging energy control technology, including “smart” controls;
• encouraging nationwide adoption of the best state-level practices for low-income weatherization; and,
• facilitating consumer energy efficiency with appropriate price signals.

“We regret, however, that the NPC did not embrace other Alliance recommendations, submitted last July at the council's request, to help reduce demand for natural gas and avoid price volatility. These include: expanding federal incentives (tax breaks) for adoption of gas-saving technologies by consumers and industry; instituting a Public Benefits Fund that would funnel a small federal charge on natural gas and electricity at the wholesale level to state programs for improving natural gas energy efficiency; offsetting an agreed-upon percentage of energy demand growth by establishing efficiency performance standards for utilities; reforming electric and gas utility regulation to make it profitable for utilities to encourage energy efficiency; improving energy efficiency in some 500,000 federal buildings; and expanding federal research, development, and deployment of advanced technologies that would decrease natural gas use in the residential, commercial, industrial, and power sectors.”