April 4, 2014 Sustainable Growth Committee Briefing Communications & Marketing Committee Meeting Rick Murphy Managing Director – Sustainable Growth American Gas Association

Alignment of Sustainable Growth Initiatives 2014 AGA Advocacy Priorities Promote Federal and State Policies that Establish Natural Gas as a Foundation Fuel for Meeting the Nations Energy Needs in a Reliable, Clean, Secure and Affordable Manner Advocate Federal and State Policies that Support Expanded Use of Natural Gas in Homes and Businesses and to Provide Consumers with Efficient Energy Solutions Advocate Federal and State Policies that Promote the Development of Natural Gas as a Transportation Fuel Advocate Policies that Support Increased Access to Natural Gas Service for Homes, Businesses and Industry Promote the Efficient and Safe Use of Natural Gas through Engagement in Appliance Standards and Building Code Proceedings

Reconciling FtF Findings with SGC Priorities Fueling the Future – Key Findings SGC - Top 5 Priority Initiatives Address challenges in core growth markets Grow the natural gas customer base through new service lines and expansion of the distribution system Advance new approaches for energy efficiency standards and programs Increase the deployment of natural gas vehicles and CNG fueling stations Partner with local economic development efforts to advance Industrial market opportunities Retain and grow efficient end us applications for homes and buildings Take advantage of strong market fundamentals to penetrate the transportation sector Effectively engage in federal energy standards proceedings affecting end use natural gas equipment Position DG/CHP as a solution to help achieve regional and national objectives Effectively engage in policy forums for increasing the deployment of DG/CHP applications

DOE Efficiency Standards Proceedings Role of Sustainable Growth Committee Review Technical Analysis and Recommendations from AGA BECS Committee and Other Working Groups Provide Guidance to AGA Staff and Working Group(s) Evaluate Strategic Options for New Standards Developed by Working Group Discuss Near and Long-Tem Implications for the Industry Provide Direction to AGA on Strategies to Pursue Provide AGA with Guidance on Engaging with Key Stakeholder Groups Policy Objectives for Efficiency Standards Ensure options for customers Recognize competitive consequences Allow for efficient technology solutions

Advocacy Efforts on Efficiency Standards DOE ENGAGEMENT Providing Credible Data and Field Intelligence to Enhance Technical Analysis Used in Standard Setting Process for Furnaces and Boilers Marginal Pricing Fuel Switching Full Fuel Cycle Supporting Industry Positions and Identifying Potential Pitfalls Separate Product Categories Recommendation Venting Challenges for Heating and Water Heating Products Outreach Efforts Underway With Key Stakeholder Groups DOE/LBNL ACEEE NRDC ASE AHRI APGA GTI

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