The Natural Gas Supply Association said it expects an additional200 Bcf/year of incremental gas demand growth by 2005 from theEnvironmental Protection Agency’s new more competitive standardsfor NOx emissions from new power generation boilers. EPAAdministrator Carol Browner signed the final rule, Utility BoilerNox New Source Performance Standards (NSPS), last week.

“The agency has established an important regulatory precedentthat levels the playing field between generation technologies andfuels-and which recognizes and encourages pollution prevention andgreater energy efficiency,” said NGSA President Nicholas Bush.

The new rule, which became effective when it was signed, relatesto areas that currently meet the ambient air quality standards forozone, which represents more than 50% of the country geographicallyand in terms of population-weighted gas demand represents at leastone-third of the country.

“We’re not looking at a massive increase in gas demand based onthis rulemaking,” said Bruce A. Craig, NGSA’s director of utilityregulation and environmental affairs, but it indicates much moresignificant changes in environmental regulations are coming. And asthe environmental regulatory system moves to a broader fuel-neutralposition-which could happen within the next year – gas demandincreases could be much greater.

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