Since 1994, when Dow Chemical Co. first reported its energy and conservation performance, the company says it has saved 1,600 trillion Btu. Dow’s program has resulted in energy savings of $8.6 billion and has prevented 86 million metric tons of carbon dioxide from entering the atmosphere, a company official told U.S. lawmakers.

Rich Wells, Dow vice president of energy, Tuesday offered expert testimony to the U.S. House of Representatives’ Subcommittee on Energy and Environment regarding policies for climate change legislation. Wells shared the data with subcommittee members to underscore Dow’s belief that energy efficiency policies can help reduce the costs of climate legislation, the company said. Wells recommended that Congress include greater energy efficiency measures to extend U.S. energy supplies and slash carbon emissions.

“We need to be thoughtful when designing a climate policy,” he said. “Too strong a price signal on carbon in the short term could accelerate fuel switching from coal to natural gas in the power generation sector.

“This action could trigger a steep demand for natural gas and dramatically drive up prices that would harm manufacturing companies such as Dow. Combined with other well designed climate policy elements — such as cost containment — energy efficiency measures can lessen the impact of fuel switching under a cap-and-trade system.”

Last June Dow was forced to hike prices for its products due to rising energy costs (see Daily GPI, June 25, 2008).

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