D.O.T. Office of Pipeline Safety Pipeline Repair Environmental Guidance System (Pilot Project)

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D.O.T. Office of Pipeline SafetyPipeline Repair
Environmental Guidance System(Pilot Project)

• Roger Little
• July 30, 2009

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PHMSA Mission

• To ensure the safe, reliable, and
• environmentally sound operation of the
• Nations pipeline transportation system.

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PHMSA Who we are

• 2.5 million miles of pipelines transport 2/3 of
  U.S. energy consumption
• Support our basic human needs, economic mobility,
  and security
• Direct gasoline, natural gas, propane
• Indirect electric generation, telecommunications,
  water supply

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What We Regulate

• Hazardous Liquid Pipelines
• 168,000 miles operated by 326 operators.
• 95 engaged in interstate commerce.
• Transport 2/3 of all oil and products used.
• 97 of U.S. transportation fueled by oil.
• 17 of U.S. freight at 2 of total freight bill.

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What We Regulate

• Natural Gas Pipelines
• Deliver 25 of energy consumed in U.S.
• Transport natural gas to 60 million residential
  and commercial customers.
• Significant growth projected to meet demand.

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U.S. Pipeline Transportation System
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What We Do

• Our Base Programs
• Inspection and Enforcement
• Integrity Management
• State Pipeline Safety Grant Programs
• Regulatory Development
• Damage Prevention and Public Education
• Research and Development
• Data Analysis and Trending

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PREGS Business Drivers

• Integrity Management Regulations
• Section 16 of PSIA 2002 (49 U.S.C. 60133)
• 10 Agencies enter into a Memorandum of
  Understanding (MOU) in 2004
• Develop a compendium of best practices
• Prioritize agency permit application reviews over
  other less urgent applications
• Designate an ombudsman

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Challenges

• Concurrent versus sequential review process.
• Early notification.
• Section 7 versus Section 10 Endangered Species
  Act process for non-federal lands.

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Challenges (contd)

• Compendium of BMPs versus redundancies in paper
  work or effort.
• Defined versus undefined authorities and
  jurisdictions (e.g. agency points-of-contact
  (POC))
• Reliable versus interrupted energy.

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The Interagency MOU (Cont.)

• Information on permits or authorizations needed
  to conduct repairs in areas near specific
  pipelines.
• Participate in pre-inspection planning and
  coordination to help determine what actions need
  to be taken should repairs be necessary.
• Give priority to repairs classified as
  immediate or time-sensitive

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SolutionPipeline Repair and Environmental
Guidance System (PREGS)

• PHMSA proposed the concept to CEQ and IAC
  February 2005.
• Demonstrate feasibility of a comprehensive,
  one-stop system that facilitates communications
  and provides information (e.g. BMPs, POCs, etc.)
  about environmental issues related to pipeline
  inspections and repairs.

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PREGS Pilot Program
Initiated the IT system in September
2006.Purpose of the PREGS Pilot Program was to
measure the following

• Communications between industry and federal,
  state and local permitting agencies.
• Application of the BMPs.
• The ability of the AMS to establish
  administrative record

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PREGS Pilot Program (cont.)

• Permit process for time-sensitive pipeline
  inspection and repair activities.
• Responsiveness of resource agencies.
• Operators compliance to environmental protection
  requirements.

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PREGS Pilot Program (contd)

• Five volunteers that operate in
• 2 - California
• 1 - Louisiana
• 1 - Florida
• 1 - Ohio/Pennsylvania
• 2 - natural gas pipeline operators.
• 3 - hazardous liquid pipeline operators.

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PREGS

• Components website, discussion boards, BMPs,
  Activity Manager System.
• Funded Activities
• BMP Development jumpstart
• Facilitation, Business Process Re-design,
  Strategic Planning
• IT Development
• Interagency Reimbursable Agreement (FWS
  development of Integrated Planning and
  Consultation System)

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BMP Approach

• CEQ, IAC and Industry agree on approach mid-2004
• Three Tiers
• Tier I - General, national-scale
• Tier II - Habitat-specific
• Tier III - Resource-specific

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BMP Approach (cont)

• Draft BMPs
• Industry provided list of 90 or more hot spots
• PHMSA prepared 91 draft BMPs for 12 hot spots
  March 2005 and 30 more by Nov 2006
• PHMSA receives comments from USACE for Tier 1 and
  Tier 2 BMPs February 2007
• PHMSA receives comments from FWS for Tier 3 on
  August 2007

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Activity Manager System

• Provide early notification of pipeline operators
  inspection and repair activities to resource
  agencies and local jurisdictions
• Facilitate communication between pipeline
  operators and resource agencies/local
  jurisdictions
• Use concurrent, rather than sequential, reviews
  of environmental documentation

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Activity Manager System (cont.)

• Assist pipeline operators with determining proper
  protocols
• Measure and track performance of permit review
  process
• Provides a central location for agencies
  documentation, record of decision making process,
  POC and references

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Pilot Program Results

• BMP Use Widespread BMP review didnt occur
  during the first iteration of the pilot program.
  Operators participating in the pilot program were
  not able to use the BMPs for their activities
  because the IAC agencies had not provided review
  and/or approval.
• Activity Manager System Use Three of five
  possible pilot program operators entered
  activities into the Activity Manager System. The
  participating operators had some difficulty in
  communicating with resource agencies via the
  Activity Manager.

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PREGS Need Survey

• 9 operators surveyed represent 27 of the
  Nations onshore haz liquid pipeline miles and 9
  of onshore intrastate gas transmission pipeline
  mileage.
• -asked about the environmental review /approval
  process for pipeline repair inspection and
  activities since issuance of the IMP regulations.
  

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PREGS Need Survey (cont.)

• The companies reported about 4,000 inspection
  /repair activities since December 2000.
• less than 0.01 of these activities were
  delayed as a result of an environmental permit or
  authorization.
• Emergency procedures were implemented on 34
  occasions, about 1 of the time

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PREGS- Conclusions

• Premise for PREGS was that DOT Integrity Mgt
  Program would be impacted by repair delays due to
  lengthy permit approval processes. We are well
  into 2nd round of IMP now- and we havent seen
  these delays.
• While PREGS demonstrates that IT can greatly
  streamline permit approvals and help expedite
  other aspects of sound environmental project
  management, the development of such a broad
  interagency system is not seen as cost beneficial
  for such a small Agency as PHMSA.
• Discussions with CEQ on the future of the project
  are scheduled for later this year.

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Climate Policy Outlook American Clean Energy
and Security (ACES) Act Waxman-Markey

• Heather Holsinger
• Senior Policy Fellow
• Pew Center on Global Climate Change
• Americas Energy Coast Leadership ForumJuly 30,
  2009

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Pew Center on Global Climate Change

• Founded in May 1998
• Independent, non-profit, non-partisan
• Divided into five major program areas
• Scientific Studies/Analyses
• Domestic and International Strategies
• Outreach Activities
• Business
• States
• Technology Solutions
• Communications

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Pew Business Environmental Leadership Council
(BELC)
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Presentation Overview

• Overview of Waxman-Markey
• Climate Policy Outlook

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Overview of Waxman-MarkeyH.R. 2454 The
American Clean Energy and Security (ACES) Act of
2009
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Overview of Waxman-Markey

• Reductions in GHG Emissions
• Complementary Policies
• Other Measures

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Reducing GHG Emissions

• Coverage approximately 85 of U.S. emissions
  covered through cap-and-trade provisions
• Cap 17 below 2005 levels by 2020 83 below by
  2050
• Threshold Cover entities gt25K tons CO2e EPA may
  lower to 10K after 2020
• Offsets 2 billion tons domestic intl
• Cost containment Strategic reserve of 2.5
  billion allowances available if allowances prices
  rise above trigger price, unlimited banking of
  allowances and limited borrowing
• Clean Air Act limitation GHGs not regulated as
  criteria pollutants or hazardous air pollutants
  under CAA
• State role GHG cap-and-trade programs on hold
  for 5 years other state programs unaffected
• Allowance distribution Used for consumer
  protection, industry and worker transition
  assistance, technology innovation, and adaptation
  (initially mostly free allocation shift to
  mostly auction over time)

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Waxman-Markey Allowance Distribution
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Complementary Policies Clean Energy Coal

• Combined Efficiency and Renewable Electricity
  Standard
• Standard starts at 6 of sales in 2012 and rises
  to 20 in 2020
• Up to one quarter of the requirement can be
  automatically met with electricity savings. Upon
  petition by a states governor, FERC can allow a
  states utilities to use electricity savings to
  meet up to two fifths of the standard
• Carbon Capture and Sequestration
• National strategy for CCS deployment and
  regulations for geologic sequestration sites
• CCS trust fund to finance first 5
  commercial-scale demonstration projects
• Support for early large scale CCS deployment
  (first 6 GW at coal power plants and industrial
  facilities)
• Performance standards for new coal-fueled power
  plants

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Complementary Policies - Transportation

• Support (allowance value) for automobile RD
• Provides financial assistance to manufacturers to
  produce electric vehicles and consumers to
  purchase plug-in hybrid electric vehicles
• EPA, states, and metropolitan planning
  organizations to develop transportation GHG
  reduction targets and plans

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Complementary Policies Energy Efficiency

• Promotes energy efficiency in new and retrofitted
  buildings
• Establishes national building energy efficiency
  codes
• Establishes a building retrofits program
• Establishes a program to upgrade inefficient
  manufactured homes
• Establishes a model building energy performance
  labeling program
• New efficiency standards for lighting and other
  appliances, including financial incentives to
  retailers who sell high volumes of
  Best-in-Class appliances
• Smart grid and transmission provisions

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Other - Competitiveness

• Output-based allowance distribution approach is
  primary mechanism to deal with competitiveness
• Emission allowances to energy-intensive,
  trade-exposed industries
• Sets criteria for which sectors are presumptively
  eligible, allows EPA to designate more
• Allowances compensate for direct and indirect
  carbon costs
• Distribution begins phasing out in 2026 (pending
  Presidential review)
• International Reserve Allowance programrequiring
  allowances for imported goods embodied GHG
  emissions as a backstop.
• Triggered in 2020 unless the President finds that
  a treaty meeting U.S. negotiating objectives is
  in force, or Congress grants a waiver.

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Other - Adaptation

• Establishes a National Climate Services within
  NOAA to provide climate-related data and support
• States and federal agencies to develop natural
  resource adaptation plans.
• Establishes Natural Resources Climate Change
  Adaptation Fund in the Treasury states can
  apply for funds if have natural resources
  adaptation plan
• Provides 2 of allowance value increasing over
  time for domestic adaptation (much of that goes
  to states)

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USCAP Partnership
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USCAP Recommendations - January 2009

• Consensus product of diverse companies and NGOs
  on climate legislation framework
• Working to urge the Administration and Congress
  to take immediate action
• Well-crafted federal legislation can
• Create meaningful action to slow, stop and
  reverse greenhouse gas emissions
• Spur innovations in new technologies
• Enhance energy security
• Increase investment and provide the foundation
  for a low-carbon economy
• Eliminate the economic cost of uncertainty

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Policy Outlook
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U.S. Congress

• 60-40 D Senate majority
• Majority Leader Reid
• EPW Chairman Boxer
• Need 60 votes for a bill
• Need 67 votes for treaty
• 256-179 D House majority
• Speaker Pelosi
• EC Chairman Waxman
• Need 218 votes for a bill

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Recent Debate

• Waxman-Markey passed House Energy Commerce
  committee on May 21st, passed the full House by
  vote of 219-212 on June 26th
• Senate committee action expected in September
• Full Senate vote possible in 2009
• House-Senate Conference possibly 2009 or 2010
• Presidents signature possibly 2009 or 2010
• Stars in alignment ? rapid progress or
  overreaching?

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EPA Action?

• Supreme Court in Mass. V. EPA essentially
  ordered EPA to regulate GHGs
• EPA has a number of options for moving forward
• Key questions
• How fast will EPA act?
• Which parts of the Clean Air Act will it use?
• EPA has clear authority to do GHG standards may
  be able to do cap and trade, but would be
  constrained
• Threat of EPA action may drive legislation

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A two-tiered climate policy

• Avoiding the unmanageable andmanaging the
  unavoidable
• Avoiding the unmanageable ? mitigation
• Emissions reduction policies at state, regional,
  federal, and international levels
• Managing the unavoidable ? adaptation
• Preparedness, resilience, ecosystem management,
  protecting vulnerable populations

Title of the UN Foundation Scientific Expert
Group Report onClimate Change and Sustainable
Development
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For More Information

• www.pewclimate.org
• Heather Holsinger
• HolsingerH_at_pewclimate.org

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Americas Energy Coast Leadership Forum III
SUMMARY STATUS FEDERAL ENERGY CLIMATE
LEGISLATION
Climate Assessment Update -Dr. Denise
Reed, University of New Orleans -Dr.
Robert Twilley, Louisiana State University
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Changing Climate on Americas Energy Coast

• Denise J. Reed
• University of New Orleans
• Robert R. Twilley
• Louisiana State University

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IPCC 2007
Thanks to Brendan Yuill, University of New Orleans
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Current climate varies across the area
especially in terms of precipitation
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Global increase in temperatures in the future -
range associated with variations among models
and uncertainty regarding future development
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Effects of inland changes are felt at the coast
through change in runoff
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Variation across the Gulf Coast and throughout
the year
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Precipitation is more variable globally
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Precipitation predictions show increase and
decrease
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Location Period Precipitation (in) Change (from 2000) Change (from 2000)
Location Period 2000 2050 2099
Gulf Coast Average Dec, Jan, Feb 11.7 -2.2 -8.3
Gulf Coast Average June, July, Aug 11.5 9.9 10.4
Gulf Coast Average Annual 48.2 -1.6 -2.1

Nueces Dec, Jan, Feb 4.4 -0.5 -15.3
Nueces June, July, Aug 6.7 13.6 11.3
Nueces Annual 26.7 0.8 -3.8

Trinity Dec, Jan, Feb 11.9 0.3 -5.4
Trinity June, July, Aug 9.2 16.5 13.1
Trinity Annual 47.3 -3.1 -3.5

Mobile Dec, Jan, Feb 16.8 -2.5 -4.6
Mobile June, July, Aug 13.0 3.9 11.7
Mobile Annual 57.2 -0.6 3.0
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Runoff (in) Change (from 2000) Change (from 2000)
2000 2050 2099
Gulf Coast Avg. - -20 -29
Nueces River, TX 1.0 0 -3
Trinity River, TX 6.4 -27 -37
Mobile River, AL 20.2 -11 -14
River runoff likely decreases in the future due
change in precipitation and increased
temperatures that increase evapotranspiration
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Station Name Station Name SLR Length of Record
    in/yr yrs
Dauphin Island, AL Dauphin Island, AL 0.12 32
Grand Isle, LA Grand Isle, LA 0.39 53
Eugene Island, LA Eugene Island, LA 0.38 36
Sabine Pass, TX Sabine Pass, TX 0.26 42
Galveston I, TX Galveston I, TX 0.26 92
Galveston II, TX Galveston II, TX 0.29 43
Freeport, TX Freeport, TX 0.23 46
Rockport, TX Rockport, TX 0.18 52
Port Mansfield, TX Port Mansfield, TX 0.08 35
Padre Island, TX Padre Island, TX 0.14 37
Port Isabel, TX Port Isabel, TX 0.13 56
Relative sea level rise is already a problem
based on 20th century data
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Historical rates Historical with eustatic
increased to 0.12 in/yr (3mm/yr) Historical with
eustatic increased to 0.20 in/yr (5mm/yr) by
2099 Historical with eustatic increased to 0.43
in/yr (11mm/yr) by 2099 (estimated max. rate
from last deglaciation)
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Summary

• Regional mean annual temperatures will increase
  by over 1 C by 2050 and near a 3 C increase by
  2099 - increase only varying spatially by
  approximately 0.1 C.
• Precipitation will likely become more seasonal -
  summer months will receive a higher of the
  rainfall, winter months will receive less.
• The effect of climate change on runoff is
  uncertain, suggestion that the total amount of
  runoff will be significantly altered.
• Sea-level rise will vary spatially - rates higher
  than the global mean due to the active subsidence
  processes. Range 8 in to 5 ft by 2099.
• Climate change will likely cause an increase in
  the of storms that develop into large
  hurricanes and an increase in overall storm
  intensity gt increase the threat of flooding and
  storm related damage to coastal communities and
  infrastructure.

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Americas Energy Coast Leadership Forum III
July 30, 2009 Biloxi, MS
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Americas Energy CoastLeadership Forum III

• Climate Stewardship Task Force
• July 30, 2009

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Climate Stewardship Task Force

• Gary Serio Co-chair, Entergy Corp.
• Anna Motschenbacher Co-chair,Pew Center on
  Global Climate Change
• Fiona Hanrahan, Chevron
• Karla Raettig, National Wildlife Federation
• Jim Mutch, Entergy
• Jenny Denney, Pew Center, Make an Impact

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Task Force Activities

• Future Climate Change Best Practices Forum
• Purpose discussion sharing of state/local
  policies programs to address climate change
• e.g. energy efficiency, building codes,
  renewable energy, urban/infrastructure planning,
  disaster preparedness, etc.
• Participants government policymakers
  decisionmakers in AL, MS, LA and TX
• Timing Spring 2010
• Near Term Make an Impact Program

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Americas Energy Coast July 2009
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Presentation overview

• What is Make an Impact?
• What is the opportunity for Americas Energy
  Coast?
• What are the next steps?

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What is Make an Impact?

• Environmental footprint reduction program for
  individuals/households (employees , communities,
  citizens)
• Focused on personal energy efficiency,
  environmental awareness, and individual cost
  savings
• Partnership between Alcoa Foundation and Pew
  Center on Global Climate Change.
• Adopted by Entergy in 2009, the program launches
  today and throughout Entergy communities over the
  next year
• Customizable website and carbon calculator with
  resources and tools vetted by the Pew Center on
  Global Climate Change and supported by community
  outreach

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Overarching Goals of Program

• Build awareness and commitment on the issue
• Empower individuals to take meaningful,
  individual action and realize dollar savings
• Leverage and amplify existing local energy
  efficiency tools and programs
• Government
• Business
• Non-profits

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What is Make an Impact Website

• Customizable interactive website with tips, tools
  and resources on how to reduce energy bills and
  live more sustainably

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What is Make an Impact Carbon Calculator

• Individual carbon footprint analysis and
  personal action plan

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What is Make an Impact Outreach Workshops

• Educational workshops and hands-on activities to
  educate and encourage local action

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What benefits can it bring?

• Heightened awareness of environmental issues
  driving positive behavioral change
• Real energy savings and cost savings in the local
  community
• Green community network that includes business,
  non profits, municipalities and individuals

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Reduced local environmental impact

• Make an Impact -Alcoa greenhouse gas reductions
  (at June 09)
• Committed to save 200,000 lbs of GHGs
• Potential to save 1,500,000 lbs of GHGs

Potential savings refer to total saved if
users implemented all recommendations on their
Action Plan
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Quantifiable Cost Benefits

• Make an Impact - Alcoa financial savings (at June
  09)
• Committed to save 200,000 per annum
• Potential to save 800,000 per annum

Potential savings refer to total saved if
users implemented all recommendations on their
Action Plan
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What is the opportunity for AEC?

• All AEC participating businesses, organizations
  and governments can engageWebsite adopted by
  companies, non-profits, and states for employee,
  customer, member and citizen use
• Community outreach and engagement
• State and regionally specific resources and
  information

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What are next steps?

• Gauge interest in exploring Make an Impact
  program for AEC outreach
• Identify point-of-contact for any member
  interested in follow-up
• Schedule future call to learn more and further
  explore opportunity

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Gary Serio, Entergy gserio_at_entergy.com
504-576-4585 Jenny Denney, Pew
denneyj_at_pewclimate.org 703-516-4146