PPG will benefit from new energy law
August 11, 2005 - When President Bush signed into law the Energy Policy Act of 2005 earlier this week, PPG and other U.S. manufacturers gained ground in the race to become more competitive with their global counterparts.
According to Judy Maskrey, director of government affairs, several aspects of the legislation could directly impact PPG’s business:
- Promoting energy conservation and efficiency, including a tax credit for energy efficient building materials on new and existing homes and commercial buildings, using low-e glass made by PPG;
- Spurring investment in renewable energy sources such as wind power (PPG makes fiber glass for wind turbines and the coating for the towers);
- Increasing the supply of domestic natural gas by streamlining permits and on-shore drilling and allowing an inventory of natural gas reserves on the outer continental shelf;
- Improving the energy distribution infrastructure by clarifying federal authority for siting of liquefied natural gas import facilities and modernize the electricity grid to prevent blackouts.
The new law’s most noticeable effects should come in the form of reduced energy costs crucial to PPG’s economic vitality, Maskrey said.
“This legislation establishes a solid energy policy that should benefit companies like PPG by significantly reducing energy costs and encouraging the exploration of alternative energy sources,” said Lynne Schmidt, vice president of government and community affairs. “We could begin to see positive outcomes as soon as a year or two from now.”
The new law does not do enough, however, to increase domestic supplies of natural gas. According to the National Association of Manufacturers, domestic natural gas prices have more than tripled. The prices paid by U.S. manufacturers are the highest in the world. “The domestic natural gas supply is an area of great concern for PPG and many domestic manufacturers,” Schmidt said. “We are continuing to advocate for stronger policies in this area as well.” Schmidt also noted that a number of PPG employees, retirees and family members reached out to their legislators to urge them to pass the act in Congress and added that it is “equally important to express appreciation to the senators and representatives who, in a bipartisan manner, voted for the bill’s passage.”