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CONCLUSIONS

The natural gas industry recognizes that greater energy security, improved air quality and energy efficiency are essential to a strong U.S. economy and competitive edge. The recommendation for a total amount of $215 million for gas utilization and supply RD&D in Fiscal Year 1992 is required because of the increasing urgency to promote efficient end-use technologies and conservation measures that help meet more ambitious environmental objectives than in the past.

The gas industry recommendation requests funding only for those technologies that are essential and prudent for the orderly development of advanced and new gas utilization and supply methods and processes. With the focus of the Administration, Congress and the public on energy efficiency and clean air, there is a growing consensus that natural gas has an increasing role to play in our nation's energy security and environmental quality. To make this a reality, there must be increased focus on federal funding for research and development of technologies that utilize this gas more efficiently while minimizing emissions into the atmosphere and at the same time assuring its continued availability.

Meeting these challenges will require careful planning for energy usage in the future. That is why the gas industry is actively providing inputs into both a national energy strategy plan and the DOE yearly budget. We believe that a necessary component of this planning effort must include a re-examination of DOE funding for energy utilization technology research and development. Additional levels of funding to develop new low emission and fuel-efficient energy technologies will be necessary to satisty pressing air quality concerns. Therefore, in developing a sound national energy strategy, DOE must provide natural gas-related R&D a much larger presence in its FY 1992 budget.

The near and long-term benefits of technology breakthroughs resulting from this research will have wide application throughout the country. The nation will not only achieve improved air quality and ensure the health and well-being of its citizens, but it will also promote the efficient use of its energy resources. In so doing, the energy security of the nation will be enhanced while enabling U.S. industry to better compete in the global marketplace as a leader in emissions reduction, new vehicle technologies and advanced energy conversion methods.

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2.

Southern California Gas Company, Testimony before the Department of Energy Hearing on National
Energy Strategy (Revised, February 23, 1990), DOE Q-File No. 1073.

3.

U.S. Department of Energy, Interim Report on National Energy Strategy, DOE/S-0066P (April 1990).

4.

United States Department of Energy, Position Statement and Fiscal Year 1991 Budget Overview,
James D. Watkins, Secretary of Energy, DOE/MA-0400 (January 1990).

5.

U.S. Department of Energy, Gas Research Program Implementation Plan, Assistant Secretary of Fossil
Energy, Deputy Assistant Secretary for Oil, Gas, Shale and Special Technologies, DOE/FE-0187P
(April 1990).

6.

U.S. Department of Energy, Interim Report on National Energy Strategy, DOE/S-0066P (April 1990),

p. 135.

7.

Institute of Gas Technology, Energy Statistics. First Quarter 1990, Vol 13, No. 1, p.53.

8.

Gas Research Institute, 1989-1993 Research and Development Plan, (April 1988), p. 125.

9

Robert H. Williams, Princeton University, Advanced Gas Turbines for Power Generation, (November 1988) p. 22.

10

California Energy Commission, Energy and the Environment: Impacts of Efficiency
Improvements/Upgrades of Existing Utility Powerplants, Testimony for the Fuels Report 8 Hearing,
Roger L. Johnson (16 July, 1989), p. 24.

11.

Gas Research Institute, 1990-1994 Research and Development Plan, (April 1989), p. 145.

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12.

Gen-Upgrade 90 Symposium, Field Evaluation of Cofiring Gas With Coal for Quantifying Operational
Benefits and Emissions Trim in a Utility Boiler, Kimble J. Clark et al., Aptech Engineering Services, Inc.
Sunnyvale, California, Vic J. Nichols & Chris A. Johnson, Public Service Company of Oklahoma, Tulsa,
Oklahoma (March 6-9, 1990).

13.

F. Richard Kurzynske, Gas Technologies for Emissions Reduction and Operational Benefits, printed in AGA/EEI Conference Proceedings -- Efficient Electricity Generation with Natural Gas, Arlington, VA (November 1987).

14.

U.S. Department of Energy, Interim Report on National Energy Strategy, DOE/S-0066P (April 1990),

p. 130.

15.

Gas Research Institute Digest, Vol. 7, Number 2, On Site Fuel Cells - A Business Opportunity for
Utilities (Mar/April 1984).

16.

Electric Power Research Institute Technical Briet, Update on Fuel Cell Demonstration Projects (1990
Release), RP3061-1, 3061-3, 3058-2.

17

Department of Energy, Energy Information Administration Monthly Energy Review (September 1989) p. 80, 82.

18.

U.S. Department of Energy, An Assessment of the Natural Gas Resource Base in the United States (May 1988).

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Gas Research Institute, GRI Baseline Projection for 1989 (August 1990).

20.

American Gas Association, The Gas Energy Supply Outlook 1989-2010 (September 1989).

Attachment A

DOE FY 1991 & 1992 Gas-Related Budget Major Gas-Related Emissions/Efficiency Utilization and Supply Research Programs

($ Millions)

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* While the gas industry is supporting geosciences as a concept, it is not supporting a specific line-item funding level. The industry is, however, supporting a funding level of $10

million for gas related geoscience work that is included in other line items, e.g., Advanced Extraction and Process Technology and Unconventional Natural Gas.

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UNION CARBIDE CORPORATION 39 OLD RIDGEBURY ROAD, DANBURY, CT 06817-0001

F. JOSEPH GRAHAM
DIRECTOR
ENERGY POLICY AND SUPPLY

March 25, 1991

The Honorable J. Bennett Johnston, Chairman
Committee on Energy and Natural Resources
United States Senate
136 Dirksen Senate office Building
Washington, D.C. 20510-6150

Dear Senator Johnston:

Receipt is acknowledged of your March 11, 1991 letter.

First, allow me to thank you and the Committee again for allowing Union Carbide Corporation and the Petrochemical Energy Group to be heard.

Second, attached are the responses to the questions propounded by you at the hearing and as attached to your letter of March 11, and to the questions propounded by Senator Domenici, as attached to your letter of March 11, 1991.

We stand ready to be of any assistance that the Committee or its Members might desire.

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cc:

The Honorable Pete V. Domenici
United States Senate
434 Dirksen Senate office Building
Washington, D.C. 20510

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