US House Republicans push gas-use limits, big nuclear expansion

Washington (Platts)--8May2006

To prevent a crippling US energy crisis, two House Republicans Monday
floated contentious proposals to restrict natural gas use by the electricity
sector, rely primarily on nuclear power and increase fuel economy standards,
saying the time had come for Congress and the White House to make "difficult
choices" that have been put off for decades.

In a report concluding a series of hearings held in 2005, House
Government Reform Committee leaders said the current US energy situation was
unlike any other because it was being driven by demand and that "market
forces" often touted by members of their own party were insufficient to assure
adequate supplies.

"In our view, the energy crisis is potentially an economic and national
security threat of such a magnitude that governmental action is needed to
'provide for the common defense' and the 'general welfare' of the United
States," wrote Committee Chairman Tom Davis of Virginia and Darrell Issa of
California.

As part of this, they said "natural gas must not be squandered on
baseload and new electricity generation," but rather should be "reserved for
industries that use it as a feedstock or for primary energy." They recommended
that nuclear power be made the primary generation source, saying it would
bring cheaper electricity and cleaner air.

The congressmen also maintained that Corporate Average Fuel Economy
standards must be strengthened to reduce growing US oil demand. "By not
upgrading standards [over the last 20 years], the government has contributed
to American manufacturers losing the competitive edge against foreign
competition," they said.

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