Repairing Our Cities’ Aging Pipelines

Mayors’ Council on Pipeline Safety ConferenceMay 2015

Kim Glas – Executive Director

A coalition of 10 of the country’s largest labor unions and 5 of America’s most influential environmental groups

BlueGreen Alliance unites nearly 16M members and supporters working for a clean energy economy.

AFL-CIO representing 11M+ American workers

AFL-CIO

Repairing our Cities Aging Pipelines – RECAP

• Labor partners involved in pipeline installation, operations, maintenance, fabrication:

• AFL-CIO• Pipefitters (UA) • Utility Workers (UWUA)• Steelworkers (USW)

• Steel industry partners deliver advanced materials for modern gas system – ArcelorMittal, EVRAZ N. America

• Environmental partners support emissions reductions and transition to cleaner economy

• Common priorities - economic vitality, job growth, worker/community health & safety

RECAP Goals• Improve efficiency and resiliency of

natural gas distribution

• Reduce emissions to lower greenhouse gas/climate impact

• Recapture lost natural gas costs to consumers/businesses – keep gas ‘in the system’

• Create jobs and strengthen economy– accelerating rate of distribution repair/replacement from 10 to 30 years could create 300k jobs, $30B GDP benefit

‘A safer distribution system means reducing pollution, and reducing pollution means a safer system.’

Methane By The Numbers• At least 28 times more powerful

climate change agent than CO2, pound for pound

• Natural gas distribution pipes lose 64 billion cubic feet of natural gas per year - equivalent to total gas use in the state of Maine.

• US consumers have paid for $21 billion in natural gas lost through distribution from 2000-2012

• Current fed proposal could cut methane emissions across energy sector up to 45 percent by 2025

• Recent studies suggest cuts up to 50 percent could be achieved w/ off-shelf technology at low cost (1 penny per MCF)

Leak-Prone Gas Pipe• Leak-prone cast-iron and bare steel

in service since the late 19th century

• 2012: 46K miles of cast iron; 2.6M bare steel individual service pipes (Pipeline and Hazardous Materials Safety Administration/PHMSA)

• 9% of distribution mileage (112K miles) Identified by PHMSA for accelerated replacement (incl. unprotected or uncoated)

• Cast iron /bare steel pipe leak 18 times more gas than plastic pipes and 57 times more gas than protected steel

EDF Leak Study - Boston

BGA partner Environmental Defense Fund is conducting a leak mapping project in select cities w/ universities & Google Maps

• How many leaks: average of about one leak per mile driven.

• Pipe materials: Nearly 45% of the pipes are made from cast iron or other corrosion- and leak-prone materials.

• Age of pipes: More than half of the pipes are more than 50 years old.

• Progress: In June 2014, Governor Patrick signed a bill accelerating leak-prone gas pipe repairs to a 20 year timeline…can we do better?

State Policy Successes• Methane Leakage Abatement

Workforce Act (SB1371) – CA law updates pipe repair/replacement policy, creates rate mechanisms to improve safety, 1st ever that factors climate change/enviro impact

• Targeted Infrastructure Replacement Programs (TIRF) - 34 states have TIRFs, allowing utilities to recover repair costs outside typical rate case

• IL SB2266 - TIRF approved in 2013 for Chicago & statewide replacement of cast iron, wrought iron, and uncoated steel distribution pipe

• Creation of 500 direct jobs incl. veterans hiring program

• These and other states (i.e. MD, MN) doing well - how can we get others up to speed?

Industry Efforts to Advance Pipe Repairs

• New Jersey/PSEG - Current proposal to invest $1.6B over 5 yrs to modernize pipe (160 miles of cast iron pipe & 11K bare steel service lines)

• Last year, PSEG responded to Hurricane Sandy w/ EnergyStrong $1.2B resiliency investment program, which includes accelerated replacement of 250 miles of cast iron pipe

• Minnesota/Centerpoint - Recently doubled pipe replacement budget from $70M to $140M/yr

• Advanced technology reduced undetected leaks by 90%

• Problem – Prevalence of leak-prone pipe, significant emissions impact

• Solution – Improved repair/replacement policies coupled w/ investment/recovery mechanisms

• Partner resources – membership across labor and enviro partners

• Align partner efforts and motivate stakeholders – consumers/businesses, electeds, government agencies, public service commissioners, utilities

• Urgency – Create jobs and strengthen the economy, avert climate change impact

Workers are a key resource in defining and resolving issues in the natural gas pipeline system

Working Together Toward Success - RECAP