Repairing Our Cities’ Aging Pipelines Mayors’ Council on Pipeline Safety Conference May 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 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 19 th 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, 1 st 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 SB 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