President Unveils Incentives for the Natural Gas Industry

President Bush announced natural gas regulatory reforms Friday designed to provide tax relief and favorable pollution standards to the industry and to encourage electric utilities and motor vehicles to use the fuel.

The initiatives “will eliminate some of the barriers that have hampered the industry” and help boost the use of natural gas by utilities and vehicles, Bush told a campaign rally at Oklahoma Christian University.

He also stressed the need for giving oil and gas producers tax relief to encourage more drilling.

The regulatory proposals include changing the rate policy for electric utilities and natural gas pipelines and allowing utilities to switch to natural gas without undergoing extensive and costly reviews, a White House fact sheet said.

They also include changing emission standards for natural gas vehicles.

At a news conference in Washington, Energy Secretary James Watkins said the reforms will boost the gas industry and reduce utility rates for consumers.

“All of these actions will lead to greater use of natural gas,” he said.

Watkins denied that the initiatives were part of a Bush strategy to gain reelection support from oil and gas producing states, saying some of the measures have been under consideration for some time.

White House economic adviser Michael J. Boskin said the proposals are geared toward removing regulatory obstacles in the marketplace.

The gas industry welcomed the regulatory changes.