Monthly Archives: July 2013

Adam Cloch The Safest Energy Delivery System in the Nation

This week, AGA President and CEO Dave McCurdy participated in the National Journal’s Energy Insiders blog to respond to their question, “What Are the Risks of Transporting Energy?” His response is posted below and you can also visit the National Journal Energy Insiders blog to view the entire comments thread.

“America’s natural gas utilities operate more than 2 million miles of pipelines that deliver our domestic abundance of clean natural gas to homes and businesses. According to the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) it is the safest energy delivery system in the nation.

Safety is the top priority for the American Gas Association and the more than 200 local energy utility companies we represent who serve 177 million Americans from coast to coast. That commitment has contributed to steadily declining rates in serious pipeline incidents over the past 20 years. In fact, the number of serious natural gas incidents in 2012 is 57 percent less than in 1993. Importantly, progress is being made in reducing excavation damage – the leading cause of serious pipeline incidents – with an approximately 50 percent drop since 2004. This decrease is due largely to the work done by the pipeline industry in promoting the use of “Call 811,” the national number for people to call before they begin any excavation project, no matter how small.

We invest over $7 billion each year to maintain the safety and reliability of the natural gas delivery system. AGA and its members are dedicated to the continued enhancement of pipeline safety. In 2011, Transportation Secretary Ray LaHood called upon U.S. pipeline owners and operators to conduct a comprehensive review of their oil and gas pipelines to identify areas of high risk and accelerate critical repair and replacement work. Our members have heeded this call to action by successfully moving policies, both within their state legislatures and before their utility regulatory commissions, to accelerate upgrades of their delivery network. In the past decade, natural gas utilities have installed plastic pipelines at a rate of 30,000 miles per year, connecting new customers or replacing older pipeline infrastructure with more modern pipeline technology. Natural gas utilities are a part of the communities they serve and are committed to proactively collaborating with public officials, emergency responders, excavators, consumers, safety advocates and members of the public to continue to improve the industry’s longstanding record of providing natural gas service safely and reliably.

Natural gas utilities were also fully engaged in 2012’s Pipeline Safety, Regulatory Certainty, and Job Creation Act. We believe a strong, safe and smart bill was developed. As a leading voice for safety in the pipeline industry we have taken further action with our “Commitment to Enhancing Safety,” which details actions that are being addressed by AGA or individual operators that go above and beyond current regulation to help ensure the safe and reliable operation of the nation’s pipelines. We are always sharing the newest safety techniques and latest technologies though our robust best practices program. AGA’s annual operation conference is the industry’s premier gathering of natural gas utility and transmission company operations management and continues to break attendance records year after year.

Our domestic abundance of natural gas provides an incredible opportunity to drive economic growth while protecting the environment and enhancing energy security. Upgrading and expanding our natural gas infrastructure is necessary, timely and provides countless benefits for our nation. Natural gas is the foundation fuel for a clean and secure energy future for our nation, capable of working alongside renewables to not only provide energy for homes and businesses, run a significant number of our vehicles, generate power and boost our manufacturing industry. America’s natural gas utilities will continue to provide safe and reliable service to our customers today while building the 21st century infrastructure necessary to serve the nation’s energy needs tomorrow.”

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Adam Cloch A Consensus Approach to Energy Efficiency

This week, AGA President and CEO Dave McCurdy participated in the National Journal’s Energy Insiders blog to respond to their question, “Can Congress Pass An Energy Bill?” His response is posted below and you can also visit the National Journal Energy Insiders blog to view the entire comments thread.

“From Congressional hearing rooms to corporate board rooms, I have worked with leaders from many different backgrounds to forge consensus and address problems facing individual communities or our nation as a whole. One of the key factors to success is agreeing on a set of goals. As we look at enacting an energy policy in our nation, I believe we have achieved consensus on our destination. Any legislation must meet the criteria of: (1) boosting our economy through job creation and a reduction in the cost of energy, (2) improving our environment by decreasing emissions, and (3) increasing our energy security by reducing our reliance on foreign energy. The measure also has to be achievable; setting benchmarks that are unrealistic benefits no one.

Energy efficiency is an area where we can achieve our mutual goals and progress is already taking place. The Shaheen-Portman energy efficiency measure presents a real, achievable route to saving money for consumers, increasing American energy security and reducing emissions. We need to ensure that it creates a framework for all available cost-effective measures so that we do not need to choose between our environment and our economy.

Of the energy options available, natural gas is one of the most efficient due to the way in which it is produced, delivered and used in homes, buildings, industry and transportation.  America’s natural gas delivery system is extraordinarily efficient with approximately 92 percent of the natural gas produced at the wellhead being delivered to customers as usable energy. Highly efficient natural gas applications for space heating and water heating units and combined heat and power technologies are available today and can deliver immediate energy productivity gains for homes, businesses and factories alike. Utilities increased their investment in natural gas efficiency programs to nearly $958 million in 2011 which resulted in total savings of more than $300 million for natural gas customers in the United States last year – about $107 per household – and offset 6.5 million metric tons of carbon dioxide emissions.

Working alongside renewables and energy efficiency efforts, our domestic abundance of natural gas provides an incredible opportunity to deliver the essential energy that will help drive economic growth while protecting the environment. We are proud to stand with organizations from all sides of the political and economic spectrum who realize the potential for our nation through more efficient use of natural gas. Organizations like the Business Council for Sustainable Energy, the Alliance to Save Energy, the Center for Climate and Energy Solutions (C2ES) and the Western Governors’ Association have all recently produced studies adding to the growing chorus of advocates for greater use of natural gas and the benefits it provides.

Still, more progress can be made.  The All-Of-The-Above Federal Building Energy Conservation Act of 2013 (S. 1199) by Senators John Hoeven (R-ND) and Joe Manchin (D-WV) is among a series of potential amendments to Shaheen-Portman. It was crafted as a replacement for the component of the 2007 Energy Independence and Security Act requiring the phase out of fossil fuels in federal buildings by 2030 – Section 433.This compromise amendment brings together the energy efficiency community, utilities and industry, provides the best opportunity to both become law and achieve the stated goals of the Energy Independence and Security Act.

Section 433 was developed before we had the technology and experience to efficiently and affordably access our nation’s vast abundance of clean natural gas. This fundamental shift in the energy marketplace offers an incredible opportunity to deliver energy value to American homes and businesses, fuel a renaissance in U.S. manufacturing, and provide a cleaner, less expensive option for vehicles. Natural gas is the foundation fuel for governments at every level at a time when they must find ways to reduce their bills, reduce their consumption of energy and reduce their environmental footprint.

America’s natural gas utilities are delivering the promises of natural gas while promoting energy efficiency and working alongside other clean and renewable energy sources. We look forward to being part of the many collaborative efforts required to realize the vision of a robust, secure and efficient energy future for our nation.”

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Adam Cloch S. 1199 is a Route to Results for Our Environment and Our Economy

Developing energy solutions for the 21st century means simultaneously tackling two of the biggest challenges of our time: mitigating climate change and revitalizing our economy. This means we need to focus on policy solutions that deliver results without compromising on either front as we plan for a clean energy future. The U.S. Senate is set to consider the Energy Savings and Industrial Competitiveness Act of 2013 (S. 761) sponsored by Senators Jeanne Shaheen (D-NH) and Rob Portman (R-OH). This bipartisan package presents a real, achievable route to saving money for consumers, increasing American energy security and reducing emissions.

The All-Of-The-Above Federal Building Energy Conservation Act of 2013 (S. 1199) by Senators John Hoeven (R-ND) and Joe Manchin (D-WV) is among a series of potential amendments to Shaheen-Portman, and is a workable path to more efficient federal buildings that all parties can agree on today. The proposed bill is a cost-effective, fuel-neutral means to save taxpayers money by enhancing the energy efficiency of federal buildings. The Senate must vote to include this bill in Shaheen-Portman in order to allow us to continue to access the benefits of domestic, clean and economically-viable resources while ensuring passage of crucial energy savings legislation.

Having already earned the support of energy efficiency advocates including the American Council for an Energy Efficient Economy (ACEEE) and the Alliance to Save Energy, S. 1199 has proved to be a workable replacement for the component of the 2007 Energy Independence and Security Act (EISA) requiring the phase out of fossil fuels in federal buildings by 2030 – Section 433. Many are concerned that Section 433 could actually discourage comprehensive energy efficiency renovations, stifle innovation and result in increased energy costs for the federal government at a time when agencies must tighten their belts. Steven Nadel, Executive Director of the ACEEE recently testified at a Senate Energy and Natural Resources Committee Subcommittee on Energy Hearing that ACEEE supports S. 1199 because Section 433 is not workable and that S. 1199 would actually “result in larger energy savings than repeal of Section 433 would lose.”

The goals of section 433 were to enable the federal government to reduce emissions, become more efficient, and reduce costs. Eliminating the direct use of natural gas from the energy mix ignores a clean, efficient and affordable way help achieve these objectives. The provisions in S. 1199 would give federal building energy managers flexibility to achieve reductions in federal energy consumption in a cost-effective manner, encourage the adoption of energy efficient technologies and practices, and spur the retrofits of federal buildings.

Any law enacted with the intent to reduce greenhouse gasses, promote energy efficiency or reduce the cost of energy in federal buildings must take into account how energy is presently delivered and what federal building energy managers believe is achievable. The Hoeven-Manchin amendment was developed with bipartisan support by a coalition of industry and efficiency and environmental advocates and provides the best opportunity to become law and achieve the stated goals of the Energy Independence and Security Act.

On June 25, President Obama delivered his Climate Action Plan at Georgetown University. Laying out a vision for a cleaner future, he emphasized that the solution is “not an either/or; it’s a both/and.” Americans should not have to choose between economic prosperity and environmental health. We can make our federal buildings more efficient and cut government spending without turning our backs on any eligible, clean and economically-viable resources. The All-Of-The-Above Federal Building Energy Conservation Act of 2013 is a smart way to achieve greater energy efficiency in federal buildings using all available cost-effective measures. This is why it has the support of efficiency experts and advocates across the energy and environment space.

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