GAM Supports Natural Gas Pipeline Construction – Update
GAM Supports Natural Gas Pipeline Permitting Reform
Click here to read Clay's previous article on this issue from our July 7 Transformer.
According to the U.S. Energy Information Administration (EIA), as of 2021 the United States possessed enough dry natural gas to last for 86 years, giving us a tremendous national economic and security advantage.
With ready abundance and a lower carbon impact than coal, natural gas has become the "fuel of choice" to bridge to a cleaner energy future with more reliance on renewable sources. As a result, more and more natural gas generation is being built to serve the electricity needs of all classes of customers.
However, the physical delivery of natural gas relies on an extensive interstate network of pipelines that transport natural gas to local distribution networks (like the Atlanta Gas Light system), which then deliver natural gas to customers, including manufacturers. Unfortunately, regulatory and economic impediments have slowed interstate natural gas pipeline construction in recent years. This has placed increased demand on existing lines, causing higher prices and supply inconsistencies. The trajectory of increasing need for natural gas without adequate pipeline construction creates a significant issue for manufacturers.
In response, GAM has joined a growing list of organizations petitioning Congress for natural gas permitting reform that would encourage the construction of more interstate pipelines. Click here to read the letter.
In early August, legislation advanced in the U.S. Senate that would update and streamline permitting rules and lead to increased production and transmission of both renewable energy and traditional fossil fuels. The Energy Permitting Reform Act of 2024, S. 4753, sponsored by Senator Joe Manchin (I-W.Va) and Senator John Barrasso (R-Wyo.), was voted out of the Senate Committee on Energy and Natural Resources on August 1 by a bipartisan 15-4 vote. The coalition letter signed by GAM was entered into the record.
It is unlikely this legislation will move further prior to the November elections, but continued advocacy on this issue will be critical. GAM will continue to support manufacturers’ need for stable, reliable, and affordable energy in any way we can. If your company is interested in adding your name to the coalition letter, please reach out to me.
