Energy and Environment I

HW#10

Due, Wednesday, December 12, 2001

This HW contains questions pertaining to a policy on natural gas use for the State of Washington.

1. Do you think the State of Washington needs a policy on natural gas use? Explain.
2. One of the first steps in developing a policy is to determine the groups most affected. Which parties would care most about the future of natural gas in the state, about its cost, and about its availability? Which parties do you think should be involved in developing a policy on natural gas use?
3. As indicated in the "Convergence" document, natural gas and electricity are intertwined. Thus, while developing a policy, it might be quite important understand the following:
1. Canadian natural gas and electricity. Currently, the State of Washington has a significant dependency on the importation of natural gas from British Columbia and Alberta. This dependency could grow. However, Canada also exports electricity to the US. For example, during the California electricity crisis of 2000-01, BC Hydro exported electricity to California. With respect to future importation of Canadian gas into Washington State, what things should the policy makers know? What information should be dug out? What assessments should be undertaken? With respect to the possible importation of significant amounts of Canadian electricity into Washington State, what information should the policy makers seek? What information should be sought in ascertaining the possible benefits or risks of importing Canadian electricity and thereby reducing our dependency on Canadian natural gas.
2. Natural gas versus electricity for residential and commercial uses. Natural gas can be used directly in the home for space heating, water heating, and cooking, or electricity generated from gas-fired combined cycle power-plants could be used. Likewise, natural gas can be directly used to heat commercial buildings, or electricity generated by the combined cycle power-plants could be used. What type of information should the policy makers seek in evaluating the pros and cons of direct use of natural versus the use of electricity generated from natural gas. Are there efficiencies issues, are there infrastructure issues, are there cost issues?
3. Should the policy makers be concerned with too large of number of gas-fired power-plants being built in Washington State, with the electricity shipped to California? What type of questions should be asked in this regard? What could be the impacts?
4. Currently, per capita use of natural gas in Washington State is less than that for the USA. What do you think? Does this put Washington State in a stronger or weaker position for expanding its use of natural gas? Or doesn’t this matter?
5. How could a policy on natural gas use impact the greenhouse emissions of the state, and of the western part of Canada and the USA? Should the policy makers consider greenhouse gas emissions?