51 Orgs Urge Senators Not to Pick Natural Gas 'Winners and Losers'

The undersigned manufacturing and agriculture organizations oppose S. 1863, the New Alternative Transportation to Give Americans Solutions Act of 2011. Demand of natural gas is the responsibility of markets, not Congress or consumer tax subsidies. Consumer tax subsidies artificially increase the demand for natural gas in the transportation market and could easily result in higher costs for natural gas and natural gas-fired electricity. We urge the Congress to allow the market to set supply and demand for natural gas instead of picking "winners" and "losers" through legislation.

As manufacturers who compete globally and rely heavily on the use of natural gas as both an energy source and an essential raw material or "feedstock" we are concerned that such legislation could result in higher costs, causing industrial "demand destruction" that forces good U.S. manufacturing jobs to overseas competitors.

The farm sector depends on natural gas for food processing, irrigation, crop drying, heating farm buildings and homes and nitrogen fertilizer production. By far, the most intensive agricultural use of natural gas is in the production of nitrogen fertilizer, which is used on virtually every crop produced in this country. Natural gas represents approximately eighty percent of nitrogen fertilizer production costs.

Subsidizing natural gas demand is unnecessary. If natural gas is abundant and affordably priced, the market will respond by increasing demand. For the transportation sector, natural gas is a competitive fuel right now without consumer tax subsidies.

We are happy to speak to you at greater length on the importance of affordable natural gas. On behalf of the Natural Gas Consumers Coalition, you may contact Paul Cicio at 202-223-1661.

Agribusiness Association of Iowa

Agricultural Retailers Association

American Chemistry Council

American Forest & Paper Association

American Foundry Society

Arkansas Electric Energy Consumers

Arkansas Gas Consumers

Brick Industry Association

CF Industries, Inc.

Charlotte Pipe & Foundry Company

Chemical Industry Council of Illinois

Cliffs Natural Resources

Copper and Brass Fabricators Council, Inc.

Corning Incorporated

Dow Corning Corporation

East-Lind Heat Treat, Inc.

Eastman Chemical Company

Evonik Degussa Corporation

Florida Fertilizer & Agrichemical Association

Florida Strawberry Growers Association

Georgia Agribusiness Council

Glass Manufacturing Industry Council

Guardian Industries

Illinois Fertilizer & Chemical Association

Independent Lubricant Manufacturers Association

Industrial Energy Consumers of America

International Chemical Co

Jim Hicks & Company

Koch Companies Public Sector

Lehigh Hanson, Inc.

Louisiana Ammonia Producers

MWV

National Petrochemical & Refining Association

Nebraska Agri-Business Association

NewPage Corporation

North Dakota Agricultural Association

Ormet Corporation

PPG Industries

Rock-Tenn Company

Saint-Gobain Corporation

SGL Carbon LLC

Smelter Service Corp

Society of Plastics Industries

South Dakota Agri-Business Association

South Dakota Grain & Feed Association

The Andersons, Inc.

The Dow Chemical Company

The Fertilizer Institute

The Timken Company

USG Corporation

cc: