Natural Gas Utilization Act of 1987

(Measure passed Senate, amended)

Natural Gas Utilization Act of 1987 - Amends the Powerplant and Industrial Fuel Use Act of 1978 to repeal: (1) prohibitions on the use of natural gas and petroleum as a primary energy source in new electric powerplants and new major fuel-burning installations; (2) the authority of the Secretary of Energy to prohibit the use of natural gas in certain boilers; (3) the prohibition on the use of natural gas for decorative outdoor lighting; and (4) the authority of the Secretary to restrict increased uses of petroleum by existing powerplants.

Defines the term "capability to use coal" as requiring an electric powerplant to have sufficient inherent design characteristics which will permit the addition of equipment (including pollution control devices) necessary to render such electric powerplant capable of using coal or another alternate fuel as a primary energy source.

Makes the provisions of this Act applicable within the contiguous 48 States and the District of Columbia.

Specifies that no new electric powerplant may be constructed or operated as a baseload powerplant without meeting the design capability of being converted from gas or oil to coal as market conditions warrant. Exempts from such requirement peakload powerplants or intermediate load powerplants.

Requires the owner or operator of any new baseload electric powerplant proposing to use natural gas or petroleum as its primary energy source to certify to the Secretary prior to construction or operation that such powerplant has the requisite coal-using capability.

Repeals the incremental pricing provisions of the Natural Gas Policy Act of 1978.