U.S. Senate Committee Considers Conservation, a Little

This winter's expected dearth of natural gas should bring increased federal subsidies for low-income residents and prompt exploration for new supplies, witnesses said at an October 18 hearing of the U.S. Senate Committee on Energy and Natural Resources. They added that it also may put government in the business of helping states promote conservation, a move strongly opposed until lately by the Bush administration. Several gas industry witnesses suggested that Congress should first spend its allotted $5 billion of Low Income Home Energy Assistance Program (LIHEAP) funds. In addition, it should add emergency funding of about $1 billion. Peter Smith, chair of the National Association of State Energy Officials, said the emergency funding should be $3.1 billion. LIHEAP is administered by the U.S. Department of Health and Human Services to help low-income customers pay their utility bills. The funding is mainly for the nation's colder states. The Senate, however, doesn't have any vehicle to implement increased conservation measures or add funding to LIHEAP. One witness suggested getting around that problem with an "Emergency Conservation Act of 2005." Industry representatives also argued that the government should not abandon natural gas as a fuel in favor of coal. Energy Information Administration director Guy Caruso did note that there are 22 new coal plants planned and another 16 under consideration. Senator Pete Domenici (R-New Mexico), committee chair, said that even without all the planned liquefied natural gas terminals, the nation is currently importing less LNG than current facilities can handle. "Are we going to get some of it, or are we whistling 'Dixie'?" "Imports are at half capacity now," said Caruso. He added that the gas is being taken first by Europe and Asia and it will take "two or three years" before the U.S. can get more international LNG exports. Jumping tentatively onto the conservation bandwagon, some Senators mentioned it as a federal tactic to help ward off shortages. They discussed briefly how the federal government could help states' current and near-future conservation efforts. But conservation still appears to be an afterthought and well behind the push to increase supplies and low-income subsidies.

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U.S. Senate Committee Considers Conservation, a Little

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