(The following letter was sent to the Chairs and Ranking Members of the Senate Committee on Energy and Natural Resources, Senate Committee on Environmental and Public Works, the House Committee on Energy and Commerce, and the House Committee on Resources)

The Alliance for the Responsible Use of Chlorine Chemistry (ARCC), a coalition of major unions and companies concerned about U.S. jobs and investments in the chlorine-related industries, is writing to express concern about the price and availability of natural gas used by U.S. manufacturers as both a production feedstock and an energy source.

There is a direct relation between the price and availability of energy resources and U.S. industrial competitiveness. U.S. natural gas production has stalled at 19 trillion cubic feet for the last eight years despite demand growth and relatively large reserves. Meanwhile, since 1999, natural gas prices have more than doubled compared to the 1991-98 period.

Since 1999, more than two million U.S. manufacturing jobs have been lost. Now, spiking natural gas prices at the Henry Hub are forcing U.S. producers to idle facilities again or move production overseas.

In the U.S. chlorine industry, energy resources represent nearly 55% of input costs. Overall, the U.S. chemistry industry accounts for 11% of domestic natural gas usage and one million jobs. Our economic sector is being hard-hit. For the first time U.S. natural gas prices are now higher than in either Asia or Europe. This makes us non-completive in export markets. We ask Congress to enact legislation to ensure an ample and affordable supply of energy, including natural gas.

We advocate full operation of all available and proven energy sources, and the improvement of energy distribution channels. Implementation of the following recommendations will help achieve these goals:

• Reject initiatives to halt new exploration and production;
• Facilitate access to federal lands with the greatest potential for large natural gas reserves, while minimizing environmental impact;
• Expedite construction of the Alaska natural gas pipeline;
• Adopt policies to enable environmentally acceptable power generation using coal;
• Encourage use of highly efficient combined heat and power generation systems, located at or near demand sites, to reduce energy loss through transmission.
• Direct the expeditious sale of new off shore gas leases.

We look forward to working with your office to accomplish these essential goals to protect American workers and companies.

Sincerely,

John J. Barry President Emeritus International Brotherhood of Electrical Workers Co-Chair, ARCC		C.T. "Kip" Howlett, Jr. Executive Director Chlorine Chemistry Council CO-Chair, ARCC