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Oppose the NAT GAS Act

Massive, Unfunded Subsidies Pick ‘Winners and Losers,’ Could Hurt U.S. Manufacturing

The NAT GAS Act creates numerous unfunded subsidies for the production and use of natural gas vehicles (NGVs).  Even the bill’s supporters say it will cost taxpayers an estimated $5 billion, at a time of fiscal challenge.

NAT GAS Act Could Raise Manufacturing Costs, Reduce Exports

·         This bill will contribute to market distortions and higher production costs for the domestic chemical industry and other manufacturers – America’s chemistry industry directly employs nearly 800,000 Americans and supports 5.1 million jobs in the U.S. economy. We create products that make people’s lives healthier, safer, and more sustainable. Natural gas is a vital raw material in chemistry production and a power source for our manufacturing plants. 

·         We recognize growing demand for natural gas in transportation and electricity generation, and do not oppose these uses – We do oppose subsidies that would artificially increase natural gas demand, distort markets and suppress the emergence of other energy technologies. 

·         This bill could weaken the resurgence of American chemistry– Natural gas from shale deposits could be a “game changer” for the domestic chemistry industry by creating a new energy and feedstock cost advantage over our global competitors. As chemical companies announce exciting new U.S. investments and expansions, and power generators begin a large-scale shift to natural gas, Congress shouldn’t impose market-distorting NGV incentives that could threaten the reliability of these supplies.

·         This bill could shrink U.S. exports – President Obama has pledged to double America’s exports in five years. That will be more difficult to do if the NAT GAS Act slows U.S. manufacturing production and exports by making natural gas less available, and potentially more expensive, for American manufacturers.

Government Should Not Pick Winners and Losers

The NAT GAS Act is yet another example of government interference favoring one industry over others.  It is not Congress’s role to try to engineer market outcomes and industry successes.  Instead of distorting markets that are functioning well on their own, lawmakers should encourage a level playing field for all energy sources and technologies. 

 NGV Subsidies Are Unnecessary

Natural gas has many economic and environmental advantages that should lead to market success without generous federal preferences. For example, many companies with large transportation fleets are using natural gas without receiving any tax subsidies because it is the most cost-effective option.  American manufacturers, power generators and homeowners are also choosing natural gas.

Click here for the list of co-sponsors.

Click here for the official bill text.

Click here for a complete set of talking points.

Click here for the Industrial Energy Consumers of America coalition letter opposing the NAT GAS Act.


Your letter:

I was surprised and disappointed to discover your name on the list of co-sponsors for the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act of 2011 (H.R. 1380). As one of nearly 800,000 Americans directly employed by the chemical industry, and a strong supporter of your leadership, I am urging you to reconsider your support for this bill.

You may have heard it before: natural gas from shale could be a "game changer" for the domestic chemistry industry. And I can tell you it's true. My company relies on natural gas to power our manufacturing plants and to create products that improve people's lives. Our nation's abundant natural gas supply is already creating an energy and raw material cost advantage over our global competitors. But the NAT GAS Act could critically weaken the resurgence of my industry.

Why would you want to distort the marketplace by giving unfair advantage to one industry over others? And at a time when Congress is being challenged to get our fiscal house in order, I am struggling to understand why you would support subsidizing natural gas vehicles and infrastructure at my expense at a time when deficits are overwhelming. The economic and environmental advantages surrounding natural gas will lead to market success without government stepping in to select winners and losers.

Please remove your name from this bill. It would show that you understand the unintended consequences of hurting our industry as we seek to create jobs and drive innovation in our state.




Your letter:

As one of nearly 800,000 Americans directly employed by the chemical industry, I am writing to urge you to oppose the New Alternative Transportation to Give American Solutions Act of 2011, (NAT GAS Act or H.R. 1380), which subsidizes natural gas vehicles and infrastructure at my expense.

You may have heard it before: natural gas from shale could be a "game changer" for the domestic chemistry industry. And I can tell you it's true. My company relies on natural gas to power our manufacturing plants and to create products that improve people's lives. Our nation's abundant natural gas supply is already creating an energy and raw material cost advantage over our global competitors. But I need your help in ensuring that the NAT GAS Act does not critically weaken the resurgence of my industry.

At a time when Congress is being challenged to get our fiscal house in order, I am struggling to understand why some members would support a new, multi-billion dollar tax subsidy. Since you do not appear to be a sponsor of this bill, I don't have to remind you that the economic and environmental advantages surrounding natural gas will lead to market success without government stepping in to select winners and losers.

Vigorously opposing this bill would shows that you understand the unintended consequences of hurting our industry as we seek to create jobs and drive innovation in our state.



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