Natural Gas Group Supports Action to Combat Global Warming

Another energy industry group has shifted its stance on federal climate policy to conditionally support federal action to cut greenhouse gas emissions.

The American Gas Association, a trade group that represents natural gas utilities, recently issued a set of "Climate Change Principles" that outline support for "reasonable" climate policies to grapple with global warming.

The trade group had never officially outlined its position on climate policy before, but now it's voicing clear support for mandatory anti-global warming policies - as long as they don't hurt the natural gas industry.

As the new Democratic-controlled Congress works to pass legislation that would cap emissions of global warming-causing gases, the AGA and other groups are finding it makes sense to weigh in with an official position on the issue.

"Reasonable and responsible federal action to reduce greenhouse gases is warranted and must be developed in concert with national energy and economic policies and goals," the AGA said in its statement.

Still, the group maintained that legislation should be drafted in a way that promotes fuel diversity by encouraging greater use of nuclear, clean coal, wind and solar power for electricity generation.

Natural gas supplies need to be increased and all sectors of the economy should be required to reduce emissions of global warming-causing gases, it added.

"In order for natural gas to fully contribute in terms of reducing greenhouse gas emissions, natural gas supplies must be increased," the group said.

The fact that the AGA and other groups are releasing new principles on climate policies is a positive sign for proponents of anti-global warming legislation, said Senate Energy and Natural Resources Committee Chief of Staff Bob Simon. The committee's chairman, Sen. Jeff Bingaman , D-N.M., is long-time advocate of federal, market-based programs to cap emissions of greenhouse gases.

The AGA's statement Thursday is "another indication that the topic is becoming increasingly mature," Simon said.

Meanwhile, the Natural Gas Supply Association, a group representing companies that produce natural gas, is hoping to outline a new position on climate policy this spring.

Previously the group had backed only voluntary measures to address global warming, which is what President George W. Bush's administration advocates.

Now, however, NGSA is planning to back mandatory measures as long as they cause no economic harm, NGSA Vice President of Industry and Public Affairs Mark Stultz told Dow Jones.

"We have seen that this issue is gaining momentum and we feel it's important for the people who advocate for natural gas and natural gas consumers to be at the table," Stultz said.

Electricity groups are also outlining new positions on climate policy.

Earlier this month, Edison Electric Institute, an association of investor- owned electric utilities, changed its position on climate change, saying it would support efforts to cut emissions under certain criteria.

"This is a watershed day for the industry to take a position like this," EEI Chairman and Duke Energy Corp. (DUK) Chief Executive Jim Rogers said the day the group released the statement. Similar to the NGSA, the EEI had opposed mandatory emission reductions and supported only voluntary measures.

The AGA, meanwhile, said natural gas should play a key role in addressing climate change.

"Natural gas, because it is clean and efficient, can serve as the cornerstone in addressing the need to reduce greenhouse gases," David Parker , the group's president and chief executive, said in a statement.