Monthly Archives: December 2009

Andrew Lu PHMSA Publishes Final Rule on Distribution Integrity Management

Last week the Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) at long last issued its final rule for Distribution Integrity Management Programs (DIMP), a monumental, performance-based regulation that took several years to craft.  We’re pleased that PHMSA stayed true to the principles included in the DIMP Phase 1 Report, published back in December 2005. We’re also pleased that PHMSA followed the various recommendations of the Technical Advisory Committee, which provided guidance on this rule in December 2008.

The collaborative approach taken by PHMSA allowed input from state regulators, public interest groups, contract excavators, and  of course, natural gas distribution operators.  As a result of efforts exerted by all these stakeholders, our industry now has a regulation that is flexible, reasonable, and cost-effective for operators to implement.  Coming on the heels of Operator Qualification and Transmission Integrity Management, it was critical for our members to have a rule that does not impose a huge financial burden.  And the rule enables utilities to devote the resources to those measures which can truly make the biggest difference in reducing overall system risk and enhancing public safety.

The rule represents a vast improvement over the Notice of Proposed Rulemaking (NPRM) issued back in June 2008. Several proposed items were removed or significantly scaled down.  These include the removal of Prevention Through People (PTP), the elimination of a plastic pipe failure reporting database, and removal of burdensome documentation requirements that would have forced operators to keep detailed information of all decisions made relating to their DIMP Program.

Those seeking details on the final rule can send me an email at alu@aga.org.  AGA will be hosting a free audio conference on December 15 at 2:00 pm ET to review the regulation.  You can  register for the session here.

Although we have a rule we all feel good about, there is still much work ahead!  AGA staff looks forward to working with our members and helping them implement the provisions in the rule.  We also expect to work with the state and federal regulators, so that our members can be assured that enforcement of the regulation is consistent with the intent of the new rule.

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Chris Hogan White House Emissions Target: A Hit Or Miss?

nationaljournalblog2 White House Emissions Target: A Hit Or Miss?The National Journal’s Energy and Environment Experts blog asked the question, “White House Emissions Target: A Hit Or Miss?” You can read Dave Parker’s response below and follow this link to see what the other experts had to say.

While AGA is closely monitoring the progress of climate legislation and the upcoming Copenhagen negotiations, we have not taken a stance on timelines and specific percentage targets. The primary reason is that trying to peer into a future full of competing legislation and partisan interests is likely an exercise in futility. Rather, AGA is focused on the achievement of more practical goals, such as how to continue to help move toward a reduced carbon future. It should be noted that the residential sector, using natural gas for heating, has a carbon footprint today that is essentially the same as it was in 1970 even though the number of households using natural gas has grown from 38 million in 1970 to 65 million today.

In actionable terms, when looking at the 2020 target reduction of 17 percent below 2005 levels of greenhouse gas emissions, natural gas can continue to play a key role in achieving that near-term goal. And on that point, the Business Council for Sustainable Energy (BCSE) agrees that maximizing the immediate use of natural gas, along with existing clean technologies of renewable energy and energy efficiency, is the most effective way to realistically reach these targets.

BCSE’s strategic vision establishes that in a near-term scenario leading to 2020, renewables, being zero- or low-carbon emission energy sources, can address incremental new energy demand to supplement existing energy supply. Meanwhile, increases in energy efficiency, which residential and commercial natural gas customers have led the nation in achieving for nearly three decades, can contribute to reductions in overall energy consumption and greenhouse gas emissions.

With respect to this partnership approach, BCSE points out that as the lowest carbon-emitting fossil fuel, natural gas is uniquely positioned to complement the addition of renewable energy to the existing grid. Natural gas is a reliable and efficient fuel and, when used appropriately as part of a diverse energy portfolio, can be an effective substitute for more carbon-intensive energy sources.

So while the debate about timelines and targets will no doubt continue, AGA is focused on the here-and-now technologies and resources that will actually affect change for our country, our environment and for the world’s climate.

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Dan Gibson Challenges, Price Volatility And The Role Of LNG In The Nation’s Energy Future

Chris McGill recently appeared in Oil and Pipeline Gas Journal. You can view the full article at Oil and Pipeline Gas Journal or read it below.

Chris McGill is the Managing Director Policy Analysis at the American Gas Association (AGA), which represents 202 local energy companies that deliver natural gas throughout the United States. There are more than 70 million residential, commercial and industrial natural gas customers in the U.S., of which 92% – more than 65 million customers – receive their gas from AGA members.

During his 21 years at the association, he has served as Manager Gas Supply, Director of Gas Supply and Statistics and Director of AGA’s Houston Office – in addition to his current position.
McGill’s work is in the assessment of future supplies of natural gas, domestic production, underground storage, key pipeline transportation issues, winter heating season planning and other related topics. He is an active spokesperson on many natural gas supply topics, representing local gas utility perspectives to the industry, regulators, legislators and the public. He has authored numerous articles, energy analyses and issue briefs on these subjects, as well as having created and managed statistical time-series data focused on key industry benchmarks.

In these especially challenging times, McGill had much to say during an interview with P&GJ.

Read the rest of the story

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Dan Gibson Clean Cities Success Story: New York Sanitation using compressed natural gas

Clean Cities is a government-industry partnership sponsored by the Department of Energy (DOE)’s Vehicle Technologies Program. With almost 90 local coalitions and more than 5,700 stakeholders, Clean Cities’ mission is to reduce petroleum consumption in the transportation sector. We’ve written about Clean Cities a few times in the past.

They have a new section of videos showcasing alternative fuels (think compressed natural gas) and advanced vehicles. They’ve had great segments on Dallas/Fort Worth International Airport and the city of Kansas City already. Here’s another good one on the New York City department of sanitation.



The New York City Department of Sanitation has the nation’s largest municipal refuse fleet. That fleet includes a ton of vehicles using alternative fuels including hybrid electric and natural gas powered refuse trucks. They don’t stop there though.

NYC’s 2,000 other diesel refuse trucks run on renewable B5 biodiesel as do 450 of their street sweepers. Compressed natural gas fuels another 25 and the alt-fuel list also includes hundreds of light duty gasoline-electric hybrids used by field supervisors along with 6 all-electric GEMs that move around the repair shop.

The fleet has a big job in collecting 22 million pounds of garbage daily, so it’s nice to see them keeping it “clean and green.”

You can view the video above or hop on over to the Alternative Fuels and Advanced Vehicles Data Center Web site for more. Be sure to visit the AGA YouTube channel if you’re looking for more great natural gas videos.

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