Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
The Natural Gas Supply Association (NGSA) Comes Out in Favor of National Carbon Tax
13 December 2019
The Natural Gas Supply Association (NGSA) announced on December
3 that it supports a national carbon pricing policy, becoming what
it believes to be the first US oil and gas trade group to come out
in favor of a carbon tax.
"We want to create a clean energy future that is affordable for
all and we believe a price on carbon will help get us there," said
Dena Wiggins, president and CEO of NGSA. "Pricing carbon will help
reduce carbon emissions now, while encouraging the development of
innovative technologies like carbon capture that will drastically
reduce or even eliminate emissions in the future."
NGSA has not developed its preferred carbon tax program, such as
a specific price on carbon or what carbon-emitting sources would be
taxed, said Wiggins. "We do think it should be broadly applied to
all emitting sectors… and it should be geographically broad as
well," she told reporters in a briefing.
In addition to informing lawmakers about its new position,
Wiggins said NGSA can reach out across the regulatory community on
the issue. "I'm very active in NARUC [National Association of
Regulatory Utility Commissioners]," she said. Also, NGSA will
incorporate its new position in communications to the media and
through social media, she said.
Acknowledging that a national carbon tax is unlikely in the
current political environment, Wiggins said that NGSA is looking
closely at the state and regional approaches that are under
consideration, such as by the PJM ISO and by New York ISO. "We
believe a national carbon pricing plan across all sectors would
achieve the best results, but if states are designing individual
approaches to reducing emissions right now, we urge them to
incorporate a price on carbon in power markets, ideally coordinated
with other states. But we will not interrupt [state or regional
progress] in search of the ideal," she said.
Proceeds from the carbon tax should be rebated to households,
Wiggins said, a policy that would match proposals from
Democrats.
Unanimous Support
Wiggins told reporters that support from NGSA members is
unanimous. "We wouldn't come out with this otherwise," she
said.
It's significant, she said, that that idea came up organically,
as NGSA was looking at how to respond to various new pricing
programs being proposed by RTOs and ISOs. "This process started
fairly narrowly [on RTO and ISO comments]. But we worked it through
with our members," she said. "When we talked with our members, we
realized that there is a shared understanding of… moving towards a
low-carbon future. This came together quickly, in about a month or
six weeks."
NGSA is not taking a position on any of the proposals from RTOs
and ISOs today, though Wiggins didn't rule out that level of
interaction at a later date. NGSA did submit comments to the New
York Public Service Commission recently on its statewide energy
plan, and it included a general acknowledgement of the potential
benefits of a carbon tax plan.
"I think we will get more granular as time goes on," she
said.
NGSA's priority, in addition to the carbon tax and rebate, is
that it be complemented by the elimination of subsidies that have
been granted to no-carbon resources. "Some of the direct subsidies,
such as for nuclear power, in some states—those are policies we
have been adamantly opposed to," she said. "We believe a carbon tax
would replace those subsidies and be applied across all energy
sources."
In addition to recognizing that natural gas is a low-carbon
power resource, Wiggins said that the carbon tax would reflect that
natural gas supports growth in renewable energy because it provides
reliability that renewables can't match. "States have fairly
aggressive renewable energy targets, and I think we are a good
partner," she said.