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'No one is insulated': Gas utility group issues warning on electrification

The American Public Gas Association's government relations chief counseled gas utilities to remain vigilant, warning that "no one is insulated" from building electrification mandates and other challenges to direct use of natural gas.

"I do want to stress that regardless of your state and its political leanings, there is potential for policies challenging the direct use of natural gas to be considered," Stuart Saulters, vice president of government relations at the public utilities trade group, said during a Nov. 11 keynote at the LDC Gas Forums' virtual conference. "By all means, it is true that electrification policies are starting on the coast, but they are moving inland. In my opinion, at this point, no state, city or town is really insulated from having to deal with challenges to the direct use of natural gas."

Since 2019, more than 30 California towns, cities and counties, mostly in the San Francisco Bay Area, have adopted gas bans or electrification requirements in new buildings. Efforts to adopt similar codes in Seattle and the Boston area have stalled, but local governments across the nation are pursuing other building electrification policies and performance standards. In several states with ambitious climate and renewable energy goals, utility commissions have initiated investigations into the future of gas utilities in their jurisdictions.

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Saulters outlined how the American Public Gas Association, or APGA, is countering the building gas ban movement and lobbying at the federal level to protect gas' role in the U.S. energy mix. He also encouraged gas utilities and their stakeholders to be proactive about engaging elected officials and the public about the benefits of direct gas use for home heating, cooking and clothes drying.

The APGA has supported state prohibitions on California-style gas bans, which have passed in four states and were introduced in at least five others in 2020. The group is also intervening in state-level proceedings from Colorado to Massachusetts, Saulters said. He urged utilities to reach out if they suspect their jurisdictions are considering restrictions on direct gas use. He also encouraged them to get involved in APGA's Direct Use Task Group, established to identify threats to gas use and form responses.

At the federal level, Saulters said the APGA is prepared to engage with lawmakers should Congress advance energy legislation during the lame duck session following the elections. The organization will also continue to take part in rulemakings on the Department of Energy's energy efficiency standards for appliances and furnaces, he said.

Saulters noted that President Donald Trump's loss in the 2020 electionwhich the White House is disputingcasts uncertainty over his administration's effort to restrict states' ability to block interstate pipeline projects, which have contributed to project cancellations in recent years. However, he expressed hope that President-elect Joe Bidenwho has proposed an ambitious climate and energy infrastructure agendawould adopt a balanced approach to energy when he takes office.

"If you look at his track record, President-elect Biden in the Senate tended to be a little more moderate and tended to be a thinker and accept all inputs," he said. "I want to be optimistic and say he's going to see the value of natural gas and how it is a clean fuel and can be a part of our clean energy future."