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Home My WebLink AboutE-6 CPUC Letter of SupportCONSENT ITEM E-6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: LOUIE F. LACASELLA, MANAGEMENT ANALYST DATE: OCTOBER 3, 2016 SUBJECT: CONSIDERATION OF A LETTER TO THE CALIFORNIA PUBLIC UTILITIES COMMISSION URGING ADOPTION OF RECOMMENDATIONS ON NATURAL GAS LEAKAGE ABATEMENT SUMMARY: In 2014, Governor Brown signed the Gas Pipeline Leak Repair and Emissions Reduction Act (SB 1371) to require adoption of rules and procedures to minimize natural gas leakage from California Public Utilities Commission (CPUC) regulated natural gas pipelines. In January 2015, the CPUC initiated Rulemaking (R.) 15-01-008 to investigate best practices for leak surveys, patrols, leak survey technology, leak prevention, and leak reduction. In March 2016, the CPUC and California Air Resources Board (CARE) working group submitted its summary of best practices and staff recommendations (Attachment 1). The proposed action, requests that the City Council, consider issuing a letter (Attachment 2) to the CPUC urging them to adopt the recommendations on Natural Gas Leakage Abatement. RECOMMENDATION: Staff recommends that the City Council consider the following action: 1) Send a letter to the California Public Utilities Commission (CPUC) urging them to adopt the Recommendations on Natural Gas Leakage Abatement. DISCUSSION: In 2014, Governor Brown signed the Gas Pipeline Leak Repair and Emissions Reduction Act (SB 1371) to require adoption of rules and procedures to minimize natural gas leakage from CPUC regulated natural gas pipelines. In January 2015, the CPUC initiated Rulemaking (R.) 15-01-008 to investigate best practices for leak surveys, patrols, leak survey technology, leak prevention, and leak reduction. In March 2016, the CPUC and California Air Resources Board (CARE) working group submitted its summary of best practices and staff recommendations (Attachment 1). The CPUC and CARE summary of best practices and staff recommendations focus on the following areas: Approved Council Meeting 10/03/2016 Letter of Support to the CPUC October 3, 2016 Page 2  Policies and Procedures  Leak Detection  Records Management  Leak Repair  Personnel Training  Leak Prevention  Experienced and Trained Personnel Pursuant to the proposed recommendations, utilities would be required to create and file with the CPUC and CARB, a compliance plan to compel utilities to self-audit and certify which best practices will be used to mitigate gas leaks and emissions. The CPUC is proposing to require all utilities to engage in best proven practices, such as mobile mounted methane sensors and online leak maps. Additionally, utilities may be required to conduct leak surveys of gas systems every three years instead of every five years; install new stationary methane detection devices at certain sites; and list how many leaks they have by zip code or other metric, as opposed to system wide. Currently, it is permissible for utilities that detect a leak, if the leak does not present an immediate public safety concern, to not fix the leak, but rather to monitor said leaks. The proposed staff recommendation would implement a "Find It Fix It Policy." The Commission would establish a certain threshold and leaks exceeding said threshold would be required to be repaired on an accelerated timeline, within one year from discovery. In addition, utilities would be required to eliminate their backlog of above ground leaks by October 1, 2018. In addition, the CPUC is proposing to require changes to utilities policies that establish the basis framing of gas leaks and the importance of prevention. Specifically, utilities will be required to state that methane is a potent greenhouse gas that must be prevented from escaping to the atmosphere, that non- emergency venting to the atmosphere is only permitted after significant steps are taken, and that worker training programs on why it is important to reduce and/or eliminate methane emissions are required. The attached letter urges the CPUC to adopt the recommendations on Natural Gas Leakage Abatement to further reduce the risk of damage to the environment and workplaces from explosions, air pollution, and other climate change impacts FISCAL IMPACT: There is no fiscal impact associated with the recommended action. Prepared by: Reviewed and Approved: Louie F. Lacasella Troy L. Butzlaff, ICMA-CM Management Analyst City Manager Attachments: 1) Natural Gas Leakage Abatement Summary of Best Practices and Staff Recommendation 2) Draft Letter of Support 158885305 - 1 - CEK/ek4 3/24/2016 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking to Adopt Rules and Procedures Governing Commission-Regulated Natural Gas Pipelines and Facilities to Reduce Natural Gas Leakage Consistent with Senate Bill 1371. Rulemaking 15-01-008 (Filed January 15, 2015) ADMINISTRATIVE LAW JUDGE’S RULING ENTERING SUMMARY OF BEST PRACTICES WORKING GROUP ACTIVITIES AND STAFF RECOMMENDATIONS INTO THE RECORD AND SEEKING COMMENTS Background Rulemaking (R.) 15-01-008 was initiated by the California Public Utilities Commission (Commission) to carry out the intent of Senate Bill (SB) 1371 (Statutes 2014, Chapter 525).1 SB 1371 requires the adoption of rules and procedures to minimize natural gas leakage from Commission-regulated natural gas pipelines consistent with Public Utilities Code Section 961 (d), § 192.703 (c) of Subpart M of Title 49 of the Code of Federal Regulations, the Commission’s General Order 112-E and their successors, and the state’s goal of reducing greenhouse gas (GHG) emissions SB 1371, which became effective on January 1, 2015, added Article 3 to the Public Utilities Code.2 Article 3, which is entitled Methane Leakage Abatement, consists of §§ 975, 977, and 978. SB 1371 1 See R.15-01-008 “Order Instituting Rulemaking to Adopt Rules and Procedures Governing Commission-Regulated Natural Gas Pipelines and Facilities to Reduce Natural Gas Leakage consistent with Senate Bill 1371,” issued January 22, 2015. 2 Unless otherwise stated, all code section references are to the Public Utilities Code. FILED 3-24-16 09:17 AM R.15-01-008 CEK/ek4 - 2 - also directs the Commission, in consultation with the California Air Resources Board (ARB), to achieve the goals of the Rulemaking. Included in Article 3 is § 975 (e)(4) which states in part, that the Commission shall: (4) Establish and require the use of Best Practices for leak surveys, patrols, leak survey technology, leak prevention, and leak reduction. The commission shall consider in the development of Best Practices the quality of materials and equipment. Two related questions in the July 24, 2015 Scoping Memo in this rulemaking are: 5. Should the Commission require specific methods and technologies to detect and measure leaks? What Best Practices should be required? 6. How should preventive maintenance and operations and other efforts be employed to prevent leaks and other emissions, including third-party dig-ins?3 The Scoping Memo also encouraged the use of a Working Group and workshops to accomplish scoping memo objectives.4 Accordingly, the California Public Utilities Commission (Commission) and the Air Resources Board (ARB) staff (Staff) coordinated a series of six meetings with interested parties which led to the creation of a consolidated spreadsheet listing over 100 Best Practices for policies, practices, and technologies that specifically relate to the system components and various operation areas. As Staff points out, among other things, the spreadsheet briefly describes the proposed Best Practices, which Parties proposed them, lists pros and cons, and includes where information is readily available, estimated emissions that may be avoided through the use of the Best Practices, and potential costs of measures. The Best Practices are further 3 Scoping Memo at 7-8. 4 Scoping Memo at 13. R.15-01-008 CEK/ek4 - 3 - organized by functional categories: Operating Practices, Monitoring, Process and Program Development & Training, Existing/Standard Practices, Research & Development, Integrity Management Crossover (may apply to several categories), Maintenance Practices, Design, and Regulatory Issue. The spreadsheet is provided as Attachment A to this ruling and is available on the Commission’s Safety and Enforcement Division Risk Assessment Section web site.5 In the attached Best Practices summary (Attachment 1), Staff also made recommendations pertaining to mandatory requirements, Commission/ARB approval of compliance plans and audits, and voluntary use of Best Practices. Four Principles for Methane Leak Abatement Best Practices To guide development of methane leak abatement Best Practices, Staff proposed that the Best Practices Working Group adopt four principles for Methane Leak Abatement Best Practices. According to Staff, the four following principles incorporate parties’ informal comments to the extent that Staff agrees with them: 1. Best Practices go beyond technologies and tools to embody a new way of doing things. Policies, practices, and education are as important as new technologies, and may provide additional methane reduction opportunities at lower cost (For example, the “find it, fix it” policy for fixing leaks when found, in some cases, may be more cost effective than monitoring and returning later to fix the leak). 2. Industry standards for Safety and supplemental measures are needed to meet the challenge of eliminating methane emissions to the extent necessary to meet state goals. 5 Refer to Risk Assessment website at: http://www.cpuc.ca.gov/riskassessment. R.15-01-008 CEK/ek4 - 4 - 3. If we can use the most advanced, technologically feasible, cost-effective measures to further reduce methane emissions beyond established targets, we should. 4. Improved methane detection by itself isn’t enough; it should be coupled with better quantification and accurate categorization, and matched with a plan/timetable for mitigation in manners that are cost-effective and effective in minimizing the release of methane. Comments on the Staff Summary and Recommendations Consistent with Senate Bill 1371 and scoping memo objectives, comments on the Joint Staff Report should respond to the following questions: 1. What overall comments do you have about the Staff Summary and Recommendations? 2. Do you agree with the Four Principles for Methane Leak Best Practices? Why or Why not? 3. Do the proposed mandatory and voluntary management Best Practices, including categorization, rationale and associated deadlines for implementation, adequately address Public Utilities Code Article 3 (e)(4) and scoping memo questions #5 and #6? 4. What process should be used to ensure best management practices are up-to-date and continue to improve as new technologies, tools, and information become available over time, etc.? IT IS RULED that: 1. The California Public Utilities Commission (Commission) and California Air Resources Board “Natural Gas Leakage Abatement Summary of Best Practices Working Group Activities and Staff Recommendations dated March 2016” and accompanying Excel spreadsheet (work product from the Best Practices Working Group), found on the Commission’s website at R.15-01-008 CEK/ek4 - 5 - http://www.cpuc.ca.gov/riskassessment/ are accepted into the record of this proceeding as Attachment 1 and Attachment A, respectively. 2. Initial comments of not more than 15 pages in response to this ruling may be filed and served no later than Friday, April 22, 2016. 3. Reply comments of not more than 5 pages in response to comments may be filed and served no later than Friday, May 6, 2016. Dated March 24, 2016, at San Francisco, California. /s/ COLETTE E. KERSTEN Colette E. Kersten Administrative Law Judge ȱ California Public Utilities Commission and California Air Resources Board Natural Gas Leakage Abatement Summary of Best Practices Working Group Activities And Staff Recommendations In partial fulfillment of Senate Bill 1371 (Leno, 2014) & Order Instituting Rulemaking (OIR) 15-01-008 Elizabeth Scheehle, CARB Winardi Setiawan, CARB Charles Magee, CPUC March, 2016 R.15-01-008 CEK/ek4 ATTACHMENT 1 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳȱofȱ22 ȱ ȱ ȱ ȱ ȱ TableofContents ȱ INTRODUCTIONȱ............................................................................................................ȱ2 IDENTIFICATIONȱOFȱBESTȱPRACTICESȱ...................................................................ȱ3 RECOMMENDATIONS..................................................................................................ȱ9 ATTACHMENTSȱ...........................................................................................................ȱ22 ȱ DISCLAIMERȱ Thisȱ reportȱ wasȱ preparedȱ byȱ Californiaȱ Publicȱ Utilitiesȱ Commissionȱ (CPUC)ȱ andȱ Californiaȱ Airȱ Resourcesȱ Boardȱ staff.ȱȱItȱ doesȱ notȱ necessarilyȱ representȱ theȱ viewsȱ ofȱ theȱ CPUC,ȱ itsȱ Commissioners,ȱ theȱ CARB,ȱ orȱ theȱ Stateȱ ofȱ California.ȱȱTheȱ CPUC,ȱ CARB,ȱ theȱ Stateȱ ofȱ California,ȱ itsȱ employees,ȱ contractors,ȱ andȱ subcontractorsȱ makeȱ noȱ warrant,ȱ expressedȱ orȱ implied,ȱ andȱ assumeȱ noȱ legalȱ liabilityȱ forȱ theȱ informationȱ inȱ thisȱ report.ȱȱ Thisȱreportȱhasȱnotȱbeenȱapprovedȱ orȱdisapprovedȱbyȱ theȱCPUCȱorȱ theȱ CARB,ȱnorȱhaveȱ theȱagenciesȱpassedȱuponȱtheȱaccuracyȱorȱadequacyȱofȱtheȱinformationȱinȱthisȱreport.ȱ ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ʹȱofȱ22 ȱ INTRODUCTION Methaneȱisȱaȱgreenhouseȱgasȱ(GHG)ȱ72ȱtimesȱmoreȱpotentȱthanȱcarbonȱdioxideȱ onȱaȱ20ȱyearȱtimeframe.ȱȱResearchersȱhaveȱidentifiedȱtheȱoilȱandȱgasȱindustryȱasȱaȱ significantȱsourceȱofȱmethaneȱemissions.ȱȱInȱCalifornia,ȱSenateȱBillȱ(SB)ȱ1371ȱ(Leno,ȱ2014)ȱ wasȱsignedȱbyȱGovernorȱBrownȱonȱSeptemberȱ21,ȱ2014,ȱtoȱreduceȱmethaneȱemissionsȱ fromȱleaksȱinȱtheȱgasȱtransmission,ȱdistributionȱandȱstorageȱfacilitiesȱinȱCalifornia.ȱȱSBȱ 1371ȱaddsȱArticleȱ3ȱ(commencingȱwithȱSectionȱ975)ȱtoȱChapterȱ4.5ȱofȱPartȱ1ȱofȱDivisionȱ1ȱ ofȱtheȱPublicȱUtilitiesȱCode.ȱȱIncludedȱinȱArticleȱ3ȱisȱSectionȱ975.ȱ(e)ȱ(4)ȱwhichȱstates,ȱinȱ part,ȱthatȱtheȱCommissionȱshall:ȱȱ Ȉ(4)ȱEstablishȱandȱrequireȱtheȱuseȱofȱbestȱpracticesȱforȱleakȱsurveys,ȱpatrols,ȱleakȱ surveyȱtechnology,ȱleakȱprevention,ȱandȱleakȱreduction.ȱTheȱcommissionȱshallȱ considerȱinȱtheȱdevelopmentȱofȱbestȱpracticesȱtheȱqualityȱofȱmaterialsȱandȱ equipment.Ȉȱ ȱ Inȱaddition,ȱSBȱ1371ȱstates,ȱ“Theȱbillȱwouldȱrequireȱtheȱcommissionȱtoȱcommenceȱ aȱproceedingȱbyȱJanuaryȱ15,ȱ2015,ȱtoȱadoptȱthoseȱrulesȱandȱprocedures,ȱinȱconsultationȱ withȱtheȱStateȱAirȱResourcesȱBoard1.”ȱȱ InȱJanuaryȱ2015,ȱtheȱCaliforniaȱPublicȱUtilitiesȱCommissionȱ(CPUCȱorȱ Commission)ȱlaunchedȱRulemakingȱ(R.)ȱ15Ȭ01Ȭ008ȱinȱresponseȱtoȱSBȱ1371ȱtoȱinvestigateȱ newȱtechnologiesȱinȱgasȱleakȱdetectionȱinȱtheȱtransmission,ȱdistributionȱandȱstorageȱ process,ȱspecificallyȱoptimizingȱforȱmethaneȱreductions.ȱ2ȱȱTheȱJulyȱ24,ȱ2015,ȱScopingȱ MemoȱandȱAssignedȱCommissionerȱRulingȱ(ScopingȱMemo)ȱforȱthisȱrulemakingȱstates,ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 1ȱThis is a reference to the California State Air Resources Board (CARB). 2 “Order Instituting Rulemaking to Adopt Rules and Procedures Governing Commission-Regulated Natural Gas Pipelines and Facilities to Reduce Natural Gas Leakage Consistent with Senate Bill 1371,” issued January 22, 2015. R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͵ȱofȱ22 ȱ ȈCARBȱwillȱworkȱwithȱtheȱCommissionȱtoȱdetermineȱtheȱbestȱmanagementȱpracticesȱ andȱotherȱmitigationȱtechnologiesȱforȱachievingȱGHGȱreductions.ȱȱCARBȱwillȱ collaborateȱwithȱtheȱCommissionȱandȱprovideȱGHGȱexpertiseȱthroughoutȱtheȱ proceeding.ȱTheȱtwoȱagenciesȱwillȱensure,ȱonȱongoingȱbases,ȱthatȱboth the public safety and the State’s climate change goals will be achieved."3ȱȱ ThisȱreportȱdescribesȱtheȱprocessȱandȱresultsȱofȱCPUC/CARBȱexplorationȱofȱbestȱ practicesȱ(BPs)ȱforȱtheȱreductionȱofȱmethaneȱleaksȱandȱemissionsȱfromȱutilityȱgasȱ systems.ȱȱUnderȱtheȱdirectionȱofȱtheȱAssignedȱAdministrativeȱLawȱJudgeȱandȱinȱ coordinationȱwithȱtheȱAssignedȱCommissioner’sȱOffice,ȱthisȱprocessȱincludedȱseveralȱ staffȬconductedȱpublicȱworkshopsȱandȱtheȱconveningȱofȱaȱtechnicalȱworkingȱgroupȱ openȱtoȱpartiesȱtoȱtheȱrulemaking.ȱȱȱ Disclaimer:ȱDespiteȱtheȱeffortȱtoȱbeȱinclusiveȱandȱcollaborativeȱduringȱtheȱ workingȱgroupȱprocess,ȱthisȱdocumentȱandȱitsȱrecommendationsȱareȱnotȱtoȱbeȱ consideredȱaȱconsensusȱreport.ȱȱInsteadȱitȱrepresentsȱCPUC/CARBȱstaffȱproposalsȱforȱ adoption,ȱandȱwillȱbeȱsubjectȱtoȱcommentsȱbyȱPartiesȱtoȱtheȱrulemakingȱbeforeȱbeingȱ forwardedȱtoȱtheȱCPUCȱforȱconsideration.ȱ ȱ IDENTIFICATIONOFBESTPRACTICES Inȱ2014ȱandȱ2015,ȱSafetyȱandȱEnforcementȱDivisionȱ(SED)ȱstaffȱresearchedȱBPsȱforȱ theȱidentificationȱandȱmitigationȱofȱleaksȱfromȱtheȱutilityȱgasȱsystem.ȱȱTheȱresearchȱ includedȱinternetȱsearchesȱandȱpersonalȱcontactsȱwithȱvendors,ȱutilities,ȱresearchȱ organizationsȱandȱregulators,ȱinȱbothȱtheȱUnitedȱStatesȱandȱoverseas.ȱȱOnȱMarchȱ18,ȱ 2015,ȱALJȱKerstenȱissuedȱaȱrulingȱenteringȱtheȱSEDȱstaffȱreport,ȱtitledȱ“Surveyȱofȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 3ȱScoping Memo, p. 16.ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ Ͷȱofȱ22 ȱ NaturalȱGasȱLeakageȱAbatementȱBestȱPractices”,ȱdatedȱMarchȱ17,ȱ2015,ȱintoȱtheȱrecord.ȱȱ Theȱpurposeȱofȱthisȱpaperȱwasȱtoȱidentifyȱtechnologiesȱandȱpracticesȱpresentlyȱinȱuse,ȱ technologiesȱandȱpracticesȱwhichȱareȱnewȱand/orȱcurrentlyȱnotȱinȱuseȱinȱCalifornia,ȱandȱ thoseȱwhichȱareȱinȱvariousȱstagesȱofȱresearchȱandȱdevelopmentȱ(R&D).4ȱȱ OnȱJulyȱ24,ȱ2015,ȱtheȱScopingȱMemoȱforȱthisȱrulemakingȱwasȱissued.ȱȱTwoȱofȱtheȱ questionsȱincludedȱinȱtheȱScopingȱMemoȱwere:ȱ 5.ȱȱȱShouldȱtheȱCommissionȱrequireȱspecificȱmethodsȱandȱtechnologiesȱtoȱdetectȱ andȱmeasureȱleaks?ȱWhatȱBPsȱshouldȱbeȱrequired?ȱ 6.ȱȱȱHowȱshouldȱpreventiveȱmaintenanceȱandȱoperationsȱandȱotherȱeffortsȱbeȱ employedȱtoȱpreventȱleaksȱandȱotherȱemissions,ȱincludingȱthirdȬpartyȱdigȬ ins?5ȱȱ TheȱScopingȱMemoȱalsoȱestablishedȱworkshops,ȱbyȱstating,ȱȈThisȱproceedingȱwillȱ holdȱworkshopsȱtoȱdiscussȱtheȱleakageȱissuesȱandȱtheȱtypesȱofȱactivitiesȱandȱmetricsȱthatȱ areȱcurrentlyȱusedȱorȱshouldȱbeȱdevelopedȱtoȱdetect,ȱmonitor,ȱandȱrepairȱsuchȱleaks.ȱTheȱ workshopsȱcouldȱalsoȱdiscussȱpotentialȱratemakingȱtreatmentsȱtoȱfacilitateȱminimizingȱ theseȱleaks.ȱTheseȱworkshopsȱwillȱbeȱledȱbyȱtheȱCommission’sȱSafetyȱandȱEnforcementȱ Divisionȱ(SED),ȱinȱcooperationȱwithȱCARB.Ȉȱȱȱ TheȱScopingȱMemoȱfurtherȱdescribedȱtheȱscopeȱofȱtheȱBPsȱworkshop:ȱ Ȉ2.ȱȱWorkingȱGroupȱWorkshopȱonȱBestȱPracticesȱ (Phaseȱ1,ȱItemsȱ5ȱ&ȱ6)ȱ–ȱBasedȱonȱ“target”ȱemissionȱsources,ȱbestȱpracticesȱtoȱ identify,ȱmeasure,ȱavoidȱandȱrepairȱleaksȱdiscuss:ȱ x BPsȱtoȱidentifyȱleaks;ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 4ȱThis report can be found on the CPUC Risk Assessment webpage at: http://www.cpuc.ca.gov/riskassessment/ 5ȱScoping Memo at 13.ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͷȱofȱ22 ȱ x Bestȱprotocols,ȱmethodsȱandȱproceduresȱtoȱquantifyȱmethaneȱemissionsȱ andȱleaks;ȱ x Bestȱpreventiveȱmaintenanceȱandȱoperationsȱpracticesȱtoȱavoidȱandȱ preventȱleaks,ȱemissionsȱfromȱblowdowns,ȱoperationalȱemissionsȱandȱ otherȱemissions,ȱincludingȱthirdȬpartyȱdigȬins;ȱandȱ x BPsȱtoȱrepairȱleaksȱ(e.g.ȱcustomerȱmetersȱareȱaȱmajorȱsourceȱofȱleaks.ȱ Whatȱisȱaȱcostȱeffectiveȱwayȱtoȱrepairȱthose?)Ȉȱ InȱcomplianceȱwithȱtheȱdirectionȱofȱtheȱScopingȱMemo,ȱaȱworkshopȱwasȱheldȱonȱ Octoberȱ27,ȱ2015,ȱwhereȱseveralȱpartiesȱmadeȱtheȱfollowingȱpresentations:6ȱ x CPUCȱȬȱCostȱEffectivenessȱ x ProfessorȱȱJosephȱC.ȱvonȱFischerȱofȱColoradoȱStateȱUniversityȱȬȱLeakȱ QuantificationȱUsingȱMobileȱSensorsȱ x EnvironmentalȱDefenseȱFundȱȬȱSEDȱWorkshopȱonȱBestȱPracticesȱ x SempraȱȬȱNaturalȱGasȱLeakageȱWorkshop:ȱWorkingȱGroupȱWorkshopȱ onȱBestȱPracticesȱ x PG&EȱȬȱLeakȱAbatementȱBestȱPracticesȱWorkshop:ȱImplementingȱBestȱ PracticesȱandȱOngoingȱR&DȱProjectsȱ x SouthwestȱGasȱȬȱBestȱPracticesȱWorkshopȱR.15Ȭ01Ȭ008:ȱMethaneȱ Leakageȱ Subsequentȱtoȱtheȱworkshop,ȱmeetingsȱwereȱheld,ȱbyȱtelephoneȱandȱinȱperson,ȱtoȱ furtherȱzeroȱinȱonȱtheȱspecificȱBPsȱpreferredȱbyȱtheȱpartiesȱtoȱidentifyȱandȱmitigateȱleaksȱ andȱemissions.ȱȱAllȱpartiesȱwereȱnoticedȱandȱinvitedȱtoȱparticipateȱinȱtheȱworkingȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 6ȱAll parties to the proceeding were invited to participate in the workshop and make presentations. All presentations can be found on the CPUC Risk Assessment webpage at: http://www.cpuc.ca.gov/riskassessment/ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͸ȱofȱ22 ȱ group.ȱȱAllȱteleconferencesȱandȱmeetingsȱwereȱwellȱattendedȱbyȱtheȱpartiesȱandȱtheirȱ representatives.7ȱȱȱȱInȱgeneral,ȱtheȱpartiesȱfeltȱthatȱtheȱmeetingsȱwereȱproductive.ȱ BPsȱmeetingsȱandȱtopicsȱofȱdiscussionȱwereȱasȱfollows:ȱ x Decemberȱ8,ȱ2015,ȱteleconference:ȱ x TransmissionȱBlowdownsȱandȱM&RȱStationȱBlowdownsȱ x Decemberȱ22,ȱ2015,ȱteleconference:ȱ x CompressorȱStationsȱ–ȱLeaksȱfromȱValves,ȱConnections,ȱMeters,ȱ Vents,ȱPacking,ȱBlowdowns,ȱetc.ȱ x Januaryȱ5,ȱ2016,ȱteleconference:ȱ x Storageȱ–ȱControlȱVents,ȱLeaks,ȱBlowdowns,ȱStorageȱ Compressors,ȱCasings,ȱotherȱsourcesȱofȱLeaksȱandȱEmissions.ȱ x Januaryȱ19,ȱ2016,ȱmeetingȱatȱtheȱofficesȱofȱtheȱEnvironmentalȱDefenseȱ Fundȱ(EDF)ȱatȱ123ȱMissionȱSt.,ȱSanȱFrancisco:ȱ x CustomerȱMeterȱandȱPHMSAȱ“minor”ȱreleasesȱ(threadedȱ connectionȱleaks)ȱANDȱLeakȱSurveys,ȱPatrols,ȱLeakȱSurveyȱ Technology,ȱLeakȱPrevention,ȱLeakȱReduction,ȱLeakȱRepairȱandȱ RequiredȱRepairȱTimesȱforȱLeaks.ȱ x “KnowȱYourȱRisers”ȱpresentationȱbyȱtheȱUtilityȱWorkersȱUnionȱ ofȱAmerica,ȱaddressingȱtheȱdangersȱofȱcorrodedȱanodelessȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 7 The parties who participated were Sempra Utilities, Pacific Gas and Electric (PG&E), Southwest Gas, Central Valley Storage, Lodi Gas Storage, Wild Goose Gas Storage, the Environmental Defense Fund (EDF), the Utility Workers Union of America (UWUA), the Coalition of California Utility Employees (CCUE), the Utility Reform Network (TURN), the California Air Resources Board (CARB), the CPUC Organization of Ratepayers Advocates (ORA) and the CPUC Risk Assessment Group.ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͹ȱofȱ22 ȱ risers,ȱaȱsteelȱcasingȱwithȱaȱplasticȱpipeȱinsideȱthatȱcarriesȱtheȱ gasȱtoȱtheȱstopȱvalveȱandȱmeterȱassembly.ȱ x Januaryȱ20,ȱ2016,ȱcontinuationȱmeetingȱatȱtheȱEDFȱoffices:ȱ x SelectionȱofȱBPsȱforȱtheȱWorkingȱGroupȱProposal.ȱ x CostȱEffectivenessȱ–ȱDiscussionȱbyȱSouthernȱCaliforniaȱGasȱ regardingȱtheȱcostȱeffectivenessȱmethodologyȱpresentedȱinȱtheȱ ICFȱReportȱtitled,ȱ“EconomicȱAnalysisȱofȱMethaneȱEmissionȱ ReductionȱOpportunitiesȱinȱtheȱU.S.ȱOnshoreȱOilȱandȱNaturalȱ GasȱIndustries”,ȱdatedȱMarchȱ2014.ȱ x “BestȱPractices/EffectiveȱResultsȱȬȱSafeȱHarborȱProposal”ȱ presentationȱbyȱtheȱIndependentȱGasȱStorageȱProvidersȱ(ISPs)ȱ ȱ Theseȱworkingȱgroupȱmeetingsȱledȱtoȱtheȱcreationȱofȱaȱconsolidatedȱspreadsheet,ȱ listingȱoverȱ100ȱpotentialȱBPsȱforȱpolicies,ȱpracticesȱandȱtechnologiesȱthatȱspecificallyȱ relateȱtoȱtheȱsystemȱcomponentsȱandȱoperationalȱareasȱmentionedȱabove.8ȱ TheȱspreadsheetȱbrieflyȱdescribesȱtheȱproposedȱBPs,ȱwhichȱpartiesȱproposedȱ them,ȱlistsȱprosȱandȱcons,ȱandȱ–ȱwhereȱinformationȱwasȱreadilyȱavailableȱ–ȱ estimatedȱemissionsȱthatȱmayȱbeȱavoidedȱthroughȱtheȱuseȱofȱtheȱbestȱpracticeȱandȱtheȱ potentialȱcostsȱofȱtheȱmeasures.ȱȱAdditionalȱcommentsȱaboutȱtheȱproposedȱitemsȱthatȱ cameȱupȱduringȱtheȱworkingȱgroupȱmeetingsȱareȱincluded,ȱasȱwellȱasȱaȱlinkȱtoȱtheȱU.S.ȱ EnvironmentalȱProtectionȱAgencyȱNaturalȱGasȱSTARȱsiteȱinȱcasesȱwhereȱtheȱitemȱisȱ alreadyȱidentifiedȱasȱaȱBestȱPracticeȱbyȱtheȱU.S.ȱEPA.ȱȱȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 8ȱSee Notes on Appendix A at the end of this document.ȱȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͺȱofȱ22 ȱ BPsȱareȱfurtherȱidentifiedȱbyȱfunctionalȱcategories:ȱOperational,ȱMonitoring,ȱ Process/ProgramȱDevelopmentȱandȱTraining,ȱExisting/StandardȱPractices,ȱResearchȱ&ȱ Development,ȱCrossoverȱ(mayȱapplyȱtoȱseveralȱcategories)ȱandȱMaintenance.ȱȱȱȱ Althoughȱthereȱmayȱbeȱotherȱwaysȱtoȱcategorizeȱtheȱlist,ȱstaffȱbelievesȱtheȱ functionalȱcategorizationȱisȱmostȱusefulȱatȱthisȱpointȱinȱtheȱprocess.ȱȱ Theȱspreadsheet,ȱwhichȱisȱproposedȱasȱanȱattachmentȱtoȱthisȱdocument,ȱisȱ availableȱonȱtheȱSEDȱRiskȱAssessmentȱwebȱsite.9ȱ TheȱSEDȱRiskȱGroupȱalsoȱproposedȱthatȱtheȱBestȱPracticesȱWorkingȱGroupȱadoptȱ theȱfollowingȱFourȱPrinciplesȱforȱMethaneȱLeakȱAbatementȱBestȱPractices.ȱȱTheȱFourȱ Principlesȱshownȱbelowȱincorporateȱparties’ȱinformalȱcommentsȱtoȱtheȱextentȱthatȱStaffȱ agreesȱwithȱthem:ȱ ȱ FourȱPrinciplesȱforȱMethaneȱLeakȱAbatementȱBestȱPracticesȱ 1.BPsȱgoȱbeyondȱtechnologiesȱandȱtoolsȱtoȱembodyȱaȱnewȱwayȱofȱdoingȱ things.ȱȱPolicies,ȱpracticesȱandȱeducationȱareȱasȱimportantȱasȱnewȱ technologies,ȱandȱmayȱprovideȱadditionalȱmethaneȱreductionȱopportunitiesȱatȱ lowerȱcostȱȱ(e.g.,ȱTheȱ“Findȱit,ȱfixȱit”ȱpolicyȱforȱfixingȱleaksȱwhenȱfound,ȱinȱ someȱcases,ȱmayȱbeȱmoreȱcostȱeffectiveȱthanȱmonitoringȱorȱreturningȱlaterȱtoȱ fixȱtheȱleak). 2.IndustryȱstandardsȱforȱSafetyȱandȱsupplementalȱmeasuresȱareȱneededȱtoȱmeetȱ theȱchallengeȱofȱeliminatingȱmethaneȱemissionsȱtoȱtheȱextentȱnecessaryȱtoȱ meetȱStateȱgoals. ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 9ȱRefer to the Risk Assessment website at: http://www.cpuc.ca.gov/riskassessment/ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͻȱofȱ22 ȱ 3.Ifȱweȱcanȱuseȱtheȱmostȱadvanced,ȱtechnologicallyȱfeasible,ȱcostȬeffectiveȱ measuresȱtoȱfurtherȱreduceȱmethaneȱemissionsȱbeyondȱestablishedȱtargets,ȱweȱ should. 4.Improvedȱmethaneȱdetectionȱbyȱitselfȱisn’tȱenough;ȱitȱshouldȱbeȱcoupledȱwithȱ betterȱquantificationȱandȱaccurateȱcategorization,ȱandȱmatchedȱwithȱaȱ plan/timetableȱforȱmitigationȱinȱmannersȱthatȱareȱeffectiveȱinȱminimizingȱtheȱ releaseȱofȱmethane. ȱ ItȱshouldȱbeȱnotedȱthatȱtheseȱPrinciplesȱrepresentȱaȱdeeperȱiterationȱofȱoneȱofȱsixȱ statutoryȱprinciplesȱthatȱwereȱlistedȱinȱSBȱ1371,ȱinȱthatȱtheyȱwillȱguideȱtheȱeffortȱtoȱ“(4)ȱ Establishȱandȱrequireȱtheȱuseȱofȱbestȱpracticesȱforȱleakȱsurveys,ȱpatrols,ȱleakȱsurveyȱ technology,ȱleakȱprevention,ȱandȱleakȱreduction.”10ȱȱ RECOMMENDATIONSȱ Atȱthisȱtime,ȱafterȱtheȱexhaustiveȱreviewȱofȱBPsȱdescribedȱabove,ȱtheȱCPUCȱandȱ CARBȱareȱpreparedȱtoȱmakeȱtheȱfollowingȱBPȱrecommendations.ȱ AsȱstatedȱinȱSBȱ1371,ȱ“Theȱrulesȱandȱprocedures,ȱincludingȱbestȱpracticesȱandȱ repairȱstandards,ȱshallȱbeȱincorporatedȱintoȱtheȱsafetyȱplansȱrequiredȱbyȱSectionȱ961ȱandȱ theȱapplicableȱgeneralȱordersȱadoptedȱbyȱtheȱcommission.”11ȱȱAtȱthisȱtime,ȱtheȱonlyȱ applicableȱgeneralȱorderȱadoptedȱbyȱtheȱcommissionȱisȱG.O.ȱ112,ȱRevisionȱFȱandȱfutureȱ revisions.ȱȱWhetherȱandȱhowȱtheseȱproposals,ȱshouldȱtheyȱbeȱadoptedȱbyȱtheȱ Commission,ȱwouldȱbeȱincorporatedȱintoȱaȱgeneralȱorder,ȱhasȱnotȱyetȱbeenȱdetermined.ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 10ȱPU Code Section 975(e)(4).ȱ 11ȱSB-1371 Natural Gas: Leakage Abatement, Section. 2., Article 3., 975(f)ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳͲȱofȱ22 ȱ ȱ MandatoryȱRequirementsȱ Thereȱareȱmandatoryȱminimumȱrequirementsȱproposedȱhereȱthatȱareȱintendedȱtoȱ ensureȱthatȱtheȱutilitiesȱandȱgasȱstorageȱoperatorsȱareȱusingȱBPsȱtoȱreduceȱMethaneȱ leaksȱandȱemissions.ȱȱSomeȱofȱtheȱminimumȱrequirementsȱareȱnotȱBPsȱasȱidentifiedȱinȱ theȱspreadsheet,ȱbutȱareȱtheȱpolicies,ȱprocedures,ȱprograms,ȱinstructionsȱandȱtrainingȱ necessaryȱtoȱimplementȱtheȱBPs.ȱȱȱȱȱ Inȱaddition,ȱitȱshouldȱbeȱmandatoryȱforȱallȱutilitiesȱtoȱcreateȱandȱfileȱwithȱtheȱ CPUCȱandȱCARB,ȱaȱcomplianceȱplanȱtoȱcompelȱtheȱutilitiesȱtoȱselfȬauditȱandȱcertifyȱ whatȱspecificȱBPsȱtheyȱareȱusingȱtoȱmitigateȱmethaneȱleaksȱandȱemissions.ȱȱȱ ThereȱareȱalsoȱmandatoryȱminimumȱBPsȱproposedȱthatȱareȱaimedȱatȱmitigatingȱ twoȱofȱtheȱlargestȱcategoriesȱofȱmethaneȱemissionsȱandȱleaks.ȱȱThoseȱcategoriesȱareȱ blowdownsȱandȱthreadedȱconnections12.ȱȱFurther,ȱthereȱareȱseveralȱminimumȱrequiredȱ BPsȱforȱtheȱdetectionȱofȱgradedȱandȱungradedȱleaks,ȱandȱtoȱmitigateȱtheȱuncontrolledȱ releaseȱofȱmethaneȱtoȱtheȱenvironment.ȱȱ Allȱofȱtheȱmandatoryȱrequirementsȱhaveȱbeenȱproposedȱbecauseȱtheyȱareȱeitherȱ consideredȱaȱcrucialȱelementȱtoȱtheȱsuccessȱofȱtheȱprogramȱ(e.g.,ȱcompliance,ȱprograms,ȱ training,ȱetc.)ȱorȱbecauseȱtheyȱwillȱdetectȱorȱmitigateȱtheȱlargestȱvolumeȱofȱmethaneȱ emittedȱandȱleakedȱ(blowdowns,ȱthreadedȱfittings,ȱgradedȱandȱungradedȱleaks,ȱ uncontrolledȱreleasesȱofȱmethane).ȱȱTheyȱalsoȱappearȱtoȱbeȱcostȬeffective,ȱbasedȱonȱ currentȱutilityȱexperienceȱorȱprojectedȱcommercialȱcostȱ(ifȱstillȱinȱR&D).ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 12ȱAs identified in the Methane Leak Abatement Proceeding Workshop on Cost- Effectiveness and Best Management Practices (R.15-01-008), October 27, 2015. Refer to the Risk Assessment website at: http://www.cpuc.ca.gov/riskassessment/ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳͳȱofȱ22 ȱ ȱ CPUCȱ/ȱCARBȱApprovalȱandȱAuditsȱ TheȱCPUC,ȱinȱconsultationȱwithȱCARB,ȱwillȱapproveȱtheȱcomplianceȱplansȱandȱ mandatoryȱproceduresȱandȱpracticesȱdescribedȱinȱthisȱdocumentȱusingȱaȱprocessȱtoȱbeȱ determinedȱlaterȱinȱthisȱproceeding.ȱȱAlso,ȱnoteȱthatȱallȱcomponentsȱofȱthisȱcomplianceȱ planȱwillȱbeȱsubjectȱtoȱauditȱbyȱtheȱCPUCȱinȱconsultationȱwithȱCARBȱand/orȱthirdȬpartyȱ certifiers,ȱusingȱanȱauditȱprocessȱtoȱbeȱdetermined,ȱincludingȱunannouncedȱrandomȱ fieldȱinspections.ȱ ȱ VoluntaryȱUseȱofȱBestȱPracticesȱ AllȱotherȱBPsȱfoundȱinȱAttachmentȱAȱofȱthisȱdocument,ȱorȱtheȱMarchȱ18,ȱ2015,ȱ reportȱfoundȱonȱtheȱRiskȱAssessmentȱwebsite,13ȱareȱconsideredȱvoluntaryȱandȱmayȱbeȱ usedȱasȱappropriateȱbyȱtheȱRespondentsȱtoȱmeetȱtheȱemissionȱtargetsȱeventuallyȱ adoptedȱbyȱtheȱCPUC.ȱȱAsȱtechnologiesȱchangeȱandȱimprove,ȱadditionalȱbestȱpracticesȱ mayȱbeȱaddedȱand/orȱmadeȱmandatory.ȱȱȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 13ȱRefer to the Risk Assessment website at: http://www.cpuc.ca.gov/riskassessment/ ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳʹȱofȱ22 ȱ MandatoryȱRequirementsȱandȱBestȱPracticesȱ ȱȱ Mandatoryȱ Methodȱ1ȱ Category Logicȱ Deadlineȱ PoliciesȱandȱProceduresȱ ȱȱ ȱ Writtenȱcomplianceȱplanȱidentifyingȱ theȱpolicies,ȱprograms,ȱprocedures,ȱ instructions,ȱdocuments,ȱetc.ȱusedȱtoȱ complyȱwithȱtheȱFinalȱDecisionȱinȱthisȱ Proceedingȱ(R.15Ȭ01Ȭ008).ȱȱȱExactȱ wordingȱTBDȱbyȱtheȱcompanyȱandȱ approvedȱbyȱtheȱCPUC,ȱinȱ consultationȱwithȱCARB.ȱȱȱ Regulatoryȱ Issue,ȱProcessȱ andȱProgramȱ Developmentȱ &ȱTrainingȱ Eachȱcompanyȱisȱofȱaȱdifferentȱsizeȱ andȱhasȱaȱdifferentȱbusinessȱmodel.ȱȱ Inȱmostȱcases,ȱtheyȱareȱgivenȱtheȱ flexibilityȱtoȱchooseȱtheȱBPsȱthatȱareȱ costȬeffectiveȱforȱthem.ȱHowever,ȱ theyȱmustȱsubmitȱaȱcomplianceȱplanȱ forȱapprovalȱbyȱtheȱCPUC/CARBȱtoȱ ensureȱthatȱtheyȱareȱcomplyingȱwithȱ theȱemissionȱtargetsȱandȱdecisionsȱofȱ thisȱproceedingȱandȱSBȱ1371.ȱ Januaryȱ31,ȱ2017ȱ Writtenȱcompanyȱpolicyȱstatingȱthatȱ methaneȱisȱaȱpotentȱGHGȱthatȱmustȱbeȱ preventedȱfromȱescapingȱtoȱtheȱ atmosphere.ȱȱȱExactȱwordingȱTBDȱbyȱ theȱcompanyȱandȱapprovedȱbyȱtheȱ CPUC,ȱinȱconsultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ &ȱTrainingȱ Writtenȱcompanyȱpoliciesȱareȱ neededȱtoȱdirectȱcompanyȱactivitiesȱ andȱholdȱemployeesȱaccountableȱforȱ violationsȱofȱtheȱpolicy.ȱ Decemberȱ15,ȱ2016ȱ Writtenȱcompanyȱpolicyȱorȱprocedureȱ statingȱthatȱnonȬemergencyȱventingȱofȱ transmissionȱlinesȱandȱdistributionȱ mainsȱtoȱatmosphereȱareȱonlyȱ permittedȱafterȱpressureȱinsideȱtheȱ linesȱhasȱbeenȱreducedȱtoȱtheȱlevelȱ specifiedȱinȱProcedureȱXXX.ȱȱExactȱ wordingȱTBDȱbyȱtheȱcompanyȱandȱ approvedȱbyȱtheȱCPUC,ȱinȱ consultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ &ȱTrainingȱ Purgingȱ Writtenȱcompanyȱpoliciesȱareȱ neededȱtoȱdirectȱcompanyȱactivitiesȱ andȱholdȱemployeesȱaccountableȱforȱ violationsȱofȱtheȱpolicy.ȱ Decemberȱ15,ȱ2016ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳ͵ȱofȱ22 ȱ Mandatoryȱ Methodȱ1ȱ Categoryȱ Logicȱ Deadlineȱ PoliciesȱandȱProceduresȱȱ ȱ ȱ Writtenȱcompanyȱpolicyȱorȱprocedureȱ statingȱthatȱanyȱprojectȱthatȱrequiresȱ evacuatingȱmethaneȱmustȱbuildȱtimeȱ intoȱtheȱprojectȱscheduleȱtoȱreduceȱ methaneȱbyȱusingȱoneȱofȱtheȱapprovedȱ BPsȱfoundȱinȱProcedureȱXXX.ȱ Schedulesȱofȱtransmissionȱlineȱworkȱ shallȱalsoȱbeȱsubmittedȱtoȱfacilitateȱ audits,ȱwithȱlineȱventingȱscheduleȱ updatesȱTBD.ȱExactȱwordingȱTBDȱbyȱ theȱcompanyȱandȱapprovedȱbyȱtheȱ CPUC,ȱinȱconsultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ&ȱ Trainingȱ Writtenȱcompanyȱpoliciesȱareȱ neededȱtoȱdirectȱcompanyȱactivitiesȱ andȱholdȱemployeesȱaccountableȱ forȱviolationsȱofȱtheȱpolicy.ȱ Decemberȱ15,ȱ2016ȱ Writtenȱcompanyȱproceduresȱ implementingȱtheȱBPsȱapprovedȱforȱ useȱtoȱevacuateȱmethaneȱandȱhowȱtoȱ useȱthem.ȱȱExactȱwordingȱTBDȱbyȱtheȱ companyȱandȱapprovedȱbyȱtheȱCPUC,ȱ inȱconsultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ&ȱ Trainingȱ Writtenȱcompanyȱproceduresȱareȱ neededȱtoȱdirectȱcompanyȱactivitiesȱ andȱholdȱemployeesȱaccountableȱ forȱviolationsȱofȱtheȱpolicy.ȱ Decemberȱ15,ȱ2016ȱ Writtenȱcompanyȱpolicyȱthatȱrequiresȱ thatȱforȱanyȱprojectsȱrequiringȱ evacuatingȱmethane,ȱWorkȱPlannersȱ shallȱclearlyȱdelineate,ȱinȱproceduralȱ documents,ȱsuchȱasȱworkȱordersȱusedȱ inȱtheȱfield,ȱtheȱstepsȱrequiredȱtoȱsafelyȱ andȱefficientlyȱreduceȱtheȱpressureȱinȱ theȱlines,ȱpriorȱtoȱlinesȱbeingȱvented.ȱ ExactȱwordingȱTBDȱbyȱtheȱcompanyȱ andȱapprovedȱbyȱtheȱCPUC,ȱinȱ consultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ&ȱ Trainingȱ Writtenȱcompanyȱproceduresȱareȱ neededȱtoȱdirectȱcompanyȱactivitiesȱ andȱholdȱemployeesȱaccountableȱ forȱviolationsȱofȱtheȱpolicy.ȱ Decemberȱ15,ȱ2016ȱ Writtenȱcompanyȱpolicyȱrequiringȱ bundlingȱofȱworkȱwheneverȱpossibleȱ toȱpreventȱmultipleȱventingȱofȱtheȱ sameȱpiping.ȱȱExactȱwordingȱTBDȱbyȱ theȱcompanyȱandȱapprovedȱbyȱtheȱ CPUC,ȱinȱconsultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ&ȱ Trainingȱ Requiresȱcoordinationȱandȱ awarenessȱofȱconstruction,ȱ operationsȱandȱmaintenanceȱ activities.ȱȱMultipleȱblowȬdownsȱofȱ linesȱcauseȱexcessȱmethaneȱ emissions.ȱ Decemberȱ15,ȱ2016ȱ Writtenȱcompanyȱemergencyȱ proceduresȱwhichȱdescribeȱtheȱactionsȱ companyȱstaffȱshallȱtakeȱtoȱpreventȱ and/orȱstopȱtheȱuncontrolledȱreleaseȱofȱ methaneȱfromȱtheȱgasȱsystemȱorȱ storageȱfacility.ȱ ExactȱwordingȱTBDȱbyȱtheȱcompanyȱ andȱapprovedȱbyȱtheȱCPUC,ȱinȱ consultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ&ȱ Training,ȱIMȱ Crossoverȱ Storageȱfacilitiesȱcontainȱlargeȱ volumesȱofȱmethane.ȱȱAnȱ uncontrolledȱreleaseȱwillȱnegateȱtheȱ methaneȱreductionsȱofȱotherȱ utilities,ȱincreaseȱgreenhouseȱgasesȱ andȱendangerȱpublicȱhealthȱbyȱ releasingȱlargeȱamountsȱofȱodorantȱ andȱotherȱtoxicȱnaturalȱgasȱbyȬ products.ȱ Decemberȱ15,ȱ2016ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳͶȱofȱ22 ȱ ȱȱ Mandatoryȱ Methodȱ1ȱ Categoryȱ Logicȱ Deadlineȱ Recordsȱ ȱȱ ȱ WrittenȱCompanyȱPolicyȱdirectingȱtheȱ gasȱbusinessȱunitȱtoȱmaintainȱrecordsȱ ofȱallȱemissionsȱandȱleaks,ȱincludingȱ theȱcalculationsȱusedȱtoȱderiveȱtheȱ volumeȱofȱmethaneȱreleased.ȱRecordsȱ areȱtoȱbeȱmaintainedȱinȱaccordanceȱ withȱG.O.ȱ112ȱFȱandȱsucceedingȱ revisions,ȱandȱ49ȱCFRȱ192.ȱȱCurrently,ȱ theȱrecordȱretentionȱtimeȱinȱG.O.ȱ112ȱFȱ isȱatȱleastȱ75ȱyearsȱforȱtheȱtransmissionȱ system.ȱȱ49ȱCFRȱ192.1011ȱrequiresȱaȱ recordȱretentionȱtimeȱofȱatȱleastȱ10ȱ yearsȱforȱtheȱdistributionȱsystem.ȱȱExactȱ wordingȱTBDȱbyȱtheȱcompanyȱandȱ approvedȱbyȱtheȱCPUC,ȱinȱ consultationȱwithȱCARB.ȱ Regulatoryȱ Issueȱ Itȱisȱimpossibleȱtoȱaccuratelyȱreportȱ methaneȱreleasesȱwithoutȱthisȱ information.ȱȱItȱwillȱalsoȱbeȱusedȱbyȱ regulatorsȱduringȱauditsȱtoȱensureȱ compliance.ȱ Decemberȱ15,ȱ2016ȱ Trainingȱ ȱȱ ȱ Trainingȱtoȱensureȱthatȱpersonnelȱ knowȱhowȱtoȱuseȱcompanyȱemergencyȱ proceduresȱwhichȱdescribeȱtheȱactionsȱ staffȱshallȱtakeȱtoȱpreventȱand/orȱstopȱ theȱuncontrolledȱreleaseȱofȱmethaneȱ fromȱtheȱgasȱsystemȱorȱstorageȱfacility.ȱȱ Trainingȱprogramsȱtoȱbeȱdesignedȱbyȱ theȱCompanyȱandȱapprovedȱbyȱtheȱ CPUC,ȱinȱconsultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ&ȱ Training,ȱIMȱ Crossoverȱ Storageȱfacilitiesȱcontainȱlargeȱ volumesȱofȱmethane.ȱȱAnȱ uncontrolledȱreleaseȱwillȱnegateȱtheȱ methaneȱreductionsȱofȱotherȱ utilities,ȱincreaseȱgreenhouseȱgasesȱ andȱendangerȱpublicȱhealthȱbyȱ releasingȱlargeȱamountsȱofȱodorantȱ andȱotherȱtoxicȱnaturalȱgasȱbyȬ products.ȱ Decemberȱ15,ȱ2016ȱ Ensureȱthatȱtrainingȱprogramsȱeducateȱ workersȱasȱtoȱwhyȱitȱisȱnecessaryȱtoȱ reduce,ȱeliminateȱand/orȱpreventȱ methaneȱemissionsȱandȱleaks.ȱȱ Trainingȱprogramsȱtoȱbeȱdesignedȱbyȱ theȱCompanyȱandȱapprovedȱbyȱtheȱ CPUC,ȱinȱconsultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ&ȱ Trainingȱ Trainingȱprogramsȱareȱnecessaryȱtoȱ helpȱemployeesȱunderstandȱwhyȱitȱ isȱimportantȱtoȱreduceȱmethaneȱ emissionsȱandȱleaks.ȱȱIfȱtheyȱ understandȱtheȱissues,ȱtheyȱareȱ moreȱlikelyȱtoȱcomplyȱwithȱtheȱ company’sȱpoliciesȱandȱ procedures.ȱ Decemberȱ15,ȱ2016ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳͷȱofȱ22 ȱ ȱȱ Mandatoryȱ Methodȱ1ȱ Category Logicȱ Deadlineȱ Trainingȱ ȱȱ ȱ Trainingȱ/ȱMentoringȱ/Knowledgeȱ TransferȱProgramsȱtoȱensureȱ knowledgeȱcontinuityȱasȱworkersȱleaveȱ andȱnewȱworkersȱareȱhired.ȱȱTraining,ȱ mentoringȱandȱknowledgeȱtransferȱ programsȱtoȱbeȱdesignedȱbyȱtheȱ CompanyȱandȱapprovedȱbyȱtheȱCPUC,ȱ inȱconsultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ &ȱTrainingȱ Alleviatesȱknowledgeȱgapsȱandȱ improvesȱsafety.ȱȱNewȱworkersȱ MUSTȱbeȱtrainedȱforȱsafetyȱreasons,ȱ inȱadditionȱtoȱlimitingȱmethaneȱ emissions.ȱȱKnowledgeȱtransferȱ programsȱkeepȱknowledgeȱandȱ importantȱinformationȱflowingȱ throughȱgenerationsȱofȱemployees.ȱ Januaryȱ31,ȱ2017ȱ Createȱandȱimplementȱtrainingȱ programsȱtoȱinstructȱworkersȱonȱhowȱ toȱperformȱtheȱBPsȱchosen,ȱefficientlyȱ andȱsafely.ȱȱTraining,ȱmentoringȱandȱ knowledgeȱtransferȱprogramsȱtoȱbeȱ designedȱbyȱtheȱCompanyȱandȱ approvedȱbyȱtheȱCPUC,ȱinȱ consultationȱwithȱCARB.ȱ Processȱandȱ Programȱ Developmentȱ &ȱTrainingȱ Trainingȱprogramsȱareȱnecessaryȱforȱ theȱsafetyȱofȱworkersȱandȱtheȱpublic.ȱȱȱ Januaryȱ31,ȱ2017ȱ Experienced,ȱTrainedȱ Personnelȱ ȱȱ ȱ Experienced,ȱqualifiedȱpeopleȱwithȱ fieldȱexperienceȱareȱneeded.ȱȱThisȱisȱaȱ generalȱcommentȱforȱallȱBPs.ȱȱCreateȱ newȱformalȱjobȱclassificationsȱforȱ apprentices,ȱjourneyman,ȱspecialists,ȱ etc.ȱwhereȱneeded.ȱȱImplementȱthisȱ practiceȱinȱcooperationȱwithȱtheȱ Unions.ȱȱȱTheȱCPUC,ȱinȱconsultationȱ withȱCARBȱwillȱreviewȱtheȱnumberȱ andȱexperienceȱofȱemployeesȱinȱtheȱ field,ȱasȱwellȱasȱtrainingȱandȱmentoringȱ programs,ȱduringȱaudits.ȱȱTheȱauditȱ processȱwillȱbeȱdevelopedȱlaterȱinȱthisȱ proceeding.ȱ Processȱandȱ Programȱ Developmentȱ &ȱTrainingȱ AccordingȱtoȱtheȱUnions,ȱthereȱisȱaȱ significantȱneedȱforȱexperienced,ȱ qualifiedȱpeopleȱworkingȱinȱtheȱfield,ȱ andȱalsoȱforȱparticipationȱinȱtheȱ evaluationȱofȱexistingȱpracticesȱandȱ developmentȱofȱbetterȱ(best)ȱ practices.ȱȱExperiencedȱgasȱsystemȱ workersȱhaveȱfirstȬhandȱknowledgeȱ ofȱhowȱgasȱsystemȱequipmentȱ operates,ȱwhatȱtheȱoperationȱandȱ maintenanceȱproblemsȱareȱandȱhowȱ toȱfixȱthemȱresultingȱinȱlessȱmethaneȱ leaks.ȱȱTheseȱareȱnotȱentirelyȱ hardwareȱissues.ȱȱExperiencedȱ workersȱareȱneededȱtoȱhelpȱtrain,ȱ improveȱprocedures,ȱmaintainȱandȱ operateȱequipmentȱandȱinȱtheȱ process,ȱhowȱtoȱminimizeȱmethaneȱ leaksȱandȱemissions.ȱȱ Januaryȱ31,ȱ2017ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳ͸ȱofȱ22 ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ 14ȱIn the ICF International Report, The Economic Analysis of Methane Emission Reduction Opportunities in the U.S. Onshore Oil and Natural Gas Industries”, pages 3-9 thru 3-11 Mandatoryȱ Methodȱ1ȱ Category Logicȱ Deadlineȱ LeakȱDetectionȱ ȱȱ ȱ Conductȱleakȱsurveysȱofȱtheȱgasȱ distributionȱsystemȱoutsideȱbusinessȱ districts,ȱeveryȱ3ȱyearsȱinsteadȱofȱeveryȱ 5ȱyears,ȱusingȱmodern,ȱdigitalȱdataȱ acquisitionȱequipmentȱ(e.g.ȱdigitalȱdataȱ loggers),ȱwhichȱcanȱbeȱdownloadedȱtoȱ aȱcentralȱdatabase.ȱ ȱ ȱ Monitoringȱ Transitionȱfromȱ5ȱyearȱleakȱsurveysȱ toȱ3ȱyearȱleakȱsurveysȱforȱtheȱ followingȱpartsȱofȱtheȱgasȱsystem:ȱȱ 49ȱCFRȱ192.723ȱ–ȱDistributionȱ systems:ȱLeakageȬsurveysȱ (b)(2)states,ȱ“Aȱleakageȱsurveyȱwithȱ leakȱdetectorȱequipmentȱmustȱbeȱ conductedȱoutsideȱbusinessȱdistrictsȱ asȱfrequentlyȱasȱnecessary,ȱbutȱatȱ leastȱonceȱeveryȱ5ȱcalendarȱyearsȱatȱ intervalsȱnotȱexceedingȱ63ȱmonths.”ȱȱȱ Further,ȱresearchȱcitedȱbyȱbothȱ ColoradoȱAirȱQualityȱControlȱ CommissionȱandȱtheȱEPAȱindicatesȱ thatȱmoreȱfrequentȱinspectionsȱ resultȱinȱgreaterȱreductionsȱofȱ methaneȱemissions14.ȱȱȱLeaksȱareȱ foundȱsoonerȱandȱhaveȱlessȱtimeȱtoȱ emitȱnaturalȱgas.ȱȱTheȱlargeȱgasȱ utilitiesȱallȱappearedȱtoȱbeȱinȱfavorȱ ofȱthisȱchange.ȱȱMoreȱfrequentȱleakȱ surveysȱareȱpermittedȱbyȱtheȱCFRs.ȱȱȱ Beginȱsurveysȱonȱ 3ȱyearȱscheduleȱbyȱ Januaryȱ31,ȱ2017ȱ SpecialȱLeakȱSurveysȱ VintageȱPipe,ȱDistributionȱIntegrityȱ ManagementȱProgramȱSurveysȱ–ȱ conductedȱatȱleastȱonceȱperȱyearȱandȱ upȱtoȱ4ȱtimesȱperȱyear,ȱdependingȱonȱ specificȱcriteria.ȱȱ Leakȱsurveysȱtoȱbeȱconductedȱusingȱ modern,ȱdigitalȱdataȱacquisitionȱ equipmentȱ(e.g.ȱdigitalȱdataȱloggers),ȱ whichȱcanȱbeȱdownloadedȱtoȱaȱcentralȱ database.ȱ Pipeȱmaterialsȱthatȱareȱmoreȱ susceptibleȱtoȱleaksȱshouldȱbeȱreplacedȱ orȱmodifiedȱtoȱmakeȱsafeȱ(e.g.,ȱcastȱironȱ orȱcertainȱtypeȱofȱplasticȱpipe,ȱ unprotectedȱsteel.ȱ ȱ Monitoring VintageȱPipeȱisȱdeterminedȱbyȱ materialȱandȱdateȱmanufactured.ȱȱ Theȱintentȱisȱtoȱfindȱleaksȱonȱ problematicȱinfrastructureȱandȱ componentsȱsuchȱasȱAldylȱ“A”ȱ piping.ȱȱȱ Beginȱsurveysȱbyȱ Januaryȱ31,ȱ2017ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳ͹ȱofȱ22 ȱ Mandatoryȱ Methodȱ1ȱ Category Logicȱ Deadlineȱ LeakȱDetectionȱ ȱȱ ȱ Mobileȱmethaneȱmappingȱ technology.ȱ ȱ StrategicȱMobileȱMethaneȱMappingȱ LeveragingȱExistingȱVehicleȱFleetȱ and/orȱuseȱofȱmobileȱgasȱleakȱ detection.ȱȱVehiclesȱusedȱforȱthisȱ purposeȱshouldȱbeȱchosenȱinȱtheȱ mostȱcostȱeffectiveȱway.ȱȱVehiclesȱ thatȱareȱrarelyȱusedȱareȱobviouslyȱ notȱcandidatesȱforȱthisȱtechnology.ȱ ȱ Mobileȱmappingȱequipmentȱmustȱ beȱcapableȱofȱautomaticallyȱ downloadingȱleakȱdataȱtoȱaȱcentralȱ database.ȱ ȱ Leakȱmapsȱshallȱbeȱpubliclyȱ availableȱwithȱleaksȱdisplayedȱbyȱ zipȱcodeȱorȱotherȱmetricȱ(numberȱ andȱtypeȱofȱleaksȱperȱzipȱcode)ȱ ȱ Note:ȱPG&EȱusesȱPicarroȱtoȱfindȱ andȱalertȱforȱleaks.ȱȱIfȱPicarro’sȱ equipmentȱsensesȱmethaneȱ concentrationȱaboveȱ5ȱppm,ȱaȱ surveyȱisȱconductedȱonȱfootȱtoȱ determineȱtheȱsourceȱofȱtheȱleak.ȱȱ Thisȱmethodologyȱwouldȱbeȱsimilarȱ forȱallȱmobileȱgasȱleakȱdetectionȱ technology.ȱ ȱ ȱ Monitoringȱ Note:ȱȱWeȱareȱnotȱrequiringȱthisȱ technologyȱtoȱbeȱusedȱuntilȱJanuary,ȱ2018,ȱ toȱallowȱtimeȱforȱtheȱtechnologyȱtoȱbeȱ perfected.ȱȱItȱisȱveryȱcloseȱtoȱbecomingȱ commerciallyȱavailable.ȱȱȱTechnologyȱ costsȱcanȱalsoȱbeȱconsideredȱinȱstrategicȱ implementation.ȱȱ.ȱȱȱȱȱȱȱȱ ȱ Pros:ȱȬȱAbleȱtoȱidentifyȱmoreȱleaksȱinȱaȱ givenȱarea,ȱenablingȱtheȱ“SuperȱCrew”ȱ methodȱofȱfixingȱleaksȱenȱmasse,ȱresultingȱ inȱlowerȱcostȱperȱrepair.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ȬȱIncreaseȱtheȱnumberȱofȱleaksȱfoundȱinȱaȱ veryȱcostȬefficientȱway.ȱȱThisȱnewȱ technologyȱisȱmoreȱsensitiveȱandȱthereforeȱ findsȱmoreȱleaks.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ȬLeverageȱmilesȱalreadyȱbeingȱdrivenȱbyȱ Companyȱvehicles.ȱȱ ȬNoȱincrementalȱvehicleȱcostȱorȱvehicleȱ emissions.ȱ ȬȱForȱSCG,ȱ4,000ȱCompanyȱvehiclesȱ drivingȱ7,000ȱmi/yrȱ=ȱ28ȱmillionȱmilesȱ drivenȱannually.ȱȱ ȬDevelopȱanȱapproachȱthatȱisȱseamlessȱtoȱ theȱvehicleȱoperator.ȱ ȬȱUseȱsensorsȱonȱvehicleȱtoȱgatherȱandȱ communicateȱallȱdataȱautomaticallyȱȱ ȬȱDevelopȱmethane/odorantȱdetectorȱtoȱ differentiateȱPipelineȱgas.ȱȱ ȬPerformȱdataȱanalysisȱinȱcentralizedȱ location.ȱȱ ȬLargeȱdataȱvolumeȱmayȱallowȱmodelingȱ ofȱatmosphericȱmethaneȱlevelsȱacrossȱ entireȱserviceȱterritory.ȱȱ ȬCompanyȱvehiclesȱusuallyȱdriveȱinȱareasȱ theȱcompaniesȱhaveȱfacilitiesȱ.ȱ ȬCentrallyȱcoordinateȱstandardȱworkȱ ordersȱforȱOperationsȱtoȱinvestigateȱ locationsȱofȱconcern.ȱ ȬSynergisticȱbetweenȱCompanyȱ operations.ȱ ȱ Cons:ȱȬȱAlgorithmsȱandȱmethodsȱareȱstillȱ beingȱimprovedȱtoȱmakeȱtheȱequipmentȱ moreȱaccurateȱandȱefficient.ȱ Beginȱbyȱ Januaryȱ31,ȱ2018ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳͺȱofȱ22 ȱ ȱȱ Mandatoryȱ Methodȱ1ȱ Categoryȱ Logicȱ Deadlineȱ LeakȱDetectionȱ ȱȱ ȱ StationaryȱMethaneȱDetectorsȱforȱ CompressorȱStations,ȱTerminals,ȱGasȱ StorageȱFacilities,ȱorȱlargeȱ concentrationsȱofȱequipmentȱorȱpiping.ȱȱ Theseȱareȱespeciallyȱusefulȱatȱ unmannedȱfacilities.ȱȱMethaneȱ detectorsȱmustȱalarmȱinȱmannedȱ controlȱroomsȱorȱmannedȱfacilities.ȱForȱ undergroundȱstorageȱfacilities,ȱ requirementsȱwouldȱbeȱharmonizedȱ withȱotherȱmonitoringȱrequirements.ȱȱȱ Monitoringȱ Earlyȱwarningȱisȱessentialȱtoȱreducingȱ theȱamountȱofȱmethaneȱemittedȱorȱ leaked,ȱespeciallyȱatȱgasȱstorageȱ facilitiesȱwhichȱareȱunmanned.ȱȱThisȱ isȱalsoȱaȱsafetyȱissue.ȱȱRecentȱresearchȱ conductedȱforȱtheȱEnvironmentalȱ DefenseȱFundȱ(EDF)ȱhasȱidentifiedȱ inexpensiveȱ(<$10000),ȱreliableȱ stationaryȱmethaneȱdetectors.ȱȱ Althoughȱtheyȱareȱstillȱconsideredȱinȱ R&D,ȱitȱisȱanticipatedȱthatȱtheyȱwillȱ beȱcommerciallyȱavailableȱbyȱFeb.ȱ 2018.ȱ Februaryȱ28,ȱ2018ȱ Moreȱfrequentȱperiodic,ȱpossiblyȱ quarterly,ȱleakȱdetectionȱandȱrepairȱ (LDAR)ȱinspectionsȱatȱaboveȱgroundȱ transmissionȱfacilitiesȱwithȱrepairȱdatesȱ determinedȱbyȱleakȱsize.ȱȱScheduleȱandȱ scopeȱtoȱbeȱdetermined.ȱȱUseȱEPAȱ Methodȱ21,ȱopticalȱgasȱimaging,ȱorȱ otherȱmethodsȱforȱaboveȱgroundȱ facilities/leaks.ȱ ȱ Monitoringȱ Transmissionȱfacilitiesȱwithȱaȱhighȱ concentrationȱofȱequipmentȱandȱotherȱ componentsȱareȱmoreȱproneȱtoȱleaksȱ andȱventedȱemissions.ȱȱInȱaddition,ȱ sinceȱtheyȱareȱinȱaȱmoreȱconcentratedȱ areaȱitȱisȱeasierȱtoȱperformȱleakȱ surveys.ȱȱQuarterlyȱleakȱdetectionȱ andȱrepairȱinspectionsȱareȱreasonableȱ andȱmostȱlikelyȱwillȱbeȱcostȬeffective.ȱ Februaryȱ28,ȱ2018ȱ UseȱofȱhandȬheldȱdetectionȱdevicesȱtoȱ identifyȱ&ȱquantifyȱtheȱsourcesȱofȱ leaks.ȱ ȱ ȱ ȱ Monitoring,ȱ Existingȱ/ȱ Standardȱ Practicesȱ Theȱmostȱsensitiveȱequipmentȱfindsȱ theȱmostȱleaks.ȱȱThereȱareȱmanyȱ devicesȱavailable.ȱȱReferȱtoȱtheȱMarchȱ 18,ȱ2015ȱBestȱPracticesȱReport,ȱ AppendixȱAȱonȱtheȱRiskȱAssessmentȱ websiteȱunderȱRecentȱDocuments:ȱȱ http://www.cpuc.ca.gov/riskassessme nt/.ȱȱForȱexample,ȱaȱtunableȱlaserȱ spectrometerȱisȱunderȱdevelopmentȱ byȱNASA.ȱȱItȱisȱexpectedȱtoȱbeȱ commerciallyȱavailableȱforȱ<$5000.ȱȱItȱ willȱhaveȱaȱmeasuringȱsensitivityȱinȱ theȱpartsȱperȱbillionȱ(ppb)ȱrange.ȱȱTheȱ newestȱequipmentȱwillȱbeȱmoreȱ reliable,ȱlowerȱmaintenanceȱandȱmoreȱ sensitiveȱcomparedȱtoȱolderȱ technologies.ȱ ȱ Februaryȱ28,ȱ2018ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ͳͻȱofȱ22 ȱ ȱȱ Mandatoryȱ Methodȱ1ȱ Category Logicȱ Deadlineȱ LeakȱRepairsȱ ȱȱ ȱ RepairingȱGradeȱ2ȱandȱGradeȱ3ȱleaksȱ withinȱcertainȱtimeframeȱ(TBD),ȱratherȱ thanȱkeepȱmonitoring.ȱȱ ȱ “FindȱItȱFixȱItȱPolicy”:ȱLeakȱRepairȱ TimelineȱandȱBacklogsȱ ȱ TheȱLeakȱrepairȱtimeȱforȱGradeȱ2ȱandȱ Gradeȱ3ȱleaksȱaboveȱaȱcertainȱsizeȱ thresholdȱ(TBD)ȱareȱrepairedȱonȱanȱ acceleratedȱtimeline,ȱwithinȱoneȱyearȱ fromȱdiscovery,ȱmeaningȱtheȱutilitiesȱ haveȱoneȱyearȱfromȱwhenȱtheyȱdetectȱaȱ Gradeȱ2ȱorȱaboveȱgroundȱGradeȱ3ȱleakȱ toȱfixȱit.ȱȱThisȱwouldȱapplyȱtoȱallȱleaksȱ foundȱafterȱDecemberȱ15,ȱ2016.ȱȱȱȱȱ ȱ Note:ȱInȱnoȱcaseȱshallȱtheȱtimeȱtoȱrepairȱ aȱleakȱexceedȱtheȱrepairȱtimesȱspecifiedȱ inȱG.O.ȱ112ȱFȱandȱsucceedingȱrevisions,ȱ orȱasȱorderedȱbyȱtheȱCPUCȱGasȱSafetyȱ andȱReliabilityȱBranch.ȱ ȱ Backlogsȱ–ȱUtilitiesȱwillȱbeȱallowedȱ untilȱOctoberȱ1,ȱ2018ȱtoȱeliminateȱtheirȱ backlogȱofȱaboveȱgroundȱGradeȱ3ȱleaksȱ foundȱpriorȱtoȱDecemberȱ15,ȱ2016.ȱ ȱ Note:ȱȱGradingȱterminologyȱvariesȱ betweenȱutilities.ȱȱGradeȱcanȱalsoȱbeȱ referredȱtoȱasȱCode.ȱȱSomeȱutilitiesȱ mayȱalsoȱhaveȱGradeȱ2+ȱleaks.ȱȱGradeȱ 2+ȱleaksȱshallȱbeȱrepairedȱwithinȱtheȱ sameȱtimeȱlimitȱasȱGradeȱ2ȱleaksȱunlessȱ requiredȱbyȱtheȱCFRs,ȱG.O.ȱ112F,ȱorȱtheȱ CPUCȱGasȱSafetyȱandȱReliabilityȱ Branchȱtoȱbeȱrepairedȱsooner.ȱ ȱ ȱ Monitoringȱ andȱ Maintenanceȱ Practicesȱ PG&Eȱisȱalreadyȱrepairingȱtheseȱ withinȱtheȱfirstȱ15ȱmonthȱcycle.ȱȱ PG&Eȱhasȱfoundȱthisȱpracticeȱtoȱbeȱ costȬeffective.ȱ ȱ *Thereȱwillȱbeȱinitialȱcosts,ȱhoweverȱ onceȱtheȱprogramȱisȱinȱplace,ȱcostsȱ areȱexpectedȱtoȱdecreaseȱbecauseȱ lessȱleaksȱwillȱbeȱfoundȱtoȱfix,ȱandȱ lessȱleaksȱwillȱhaveȱtoȱbeȱmonitoredȱȱ *Potentialȱincreaseȱinȱcapitalȱforȱ repairsȱandȱexpenseȱforȱlabor.ȱ ȱ Note:ȱExtendedȱtimeȱisȱallowedȱforȱ thoseȱleaksȱwhichȱcannotȱbeȱfixedȱonȱ timeȱdueȱtoȱpermittingȱproblemsȱorȱ otherȱproblemsȱbeyondȱtheȱutility’sȱ control.ȱ Octoberȱ1,ȱ2018ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ʹͲȱofȱ22 ȱ ȱȱ Mandatoryȱ Methodȱ1ȱ Category Logicȱ Deadlineȱ LeakȱPreventionȱ ȱȱ ȱ Reviseȱpipeȱfittingȱspecificationsȱtoȱ requireȱtighterȱtolerance/betterȱqualityȱ pipeȱthreads.ȱ Designȱ Thisȱisȱbeingȱaddedȱasȱaȱmandatoryȱ practiceȱbecauseȱofȱtheȱveryȱlargeȱ numberȱofȱthreadedȱfittingsȱandȱtheirȱ knownȱpropensityȱtoȱdevelopȱleaks.ȱȱȱ ȱ Thisȱisȱbeingȱrecommendedȱasȱaȱ mandatoryȱBP,ȱprovidedȱthatȱfurtherȱ researchȱprovesȱthisȱtoȱbeȱaȱcostȬ effective.ȱȱIfȱso,ȱutilitiesȱwillȱnotȱbeȱ requiredȱtoȱreplaceȱallȱthreadedȱ connectionsȱimmediately,ȱbutȱratherȱ replaceȱthemȱasȱincidentalȱworkȱisȱ requiredȱtoȱbeȱperformedȱonȱthem.ȱ ȱ Thisȱparticularȱpracticeȱwillȱbeȱtoȱuseȱ ANPTȱpipeȱthreadsȱinsteadȱofȱNPT.ȱȱ However,ȱotherȱtypesȱofȱthreadsȱorȱ connectionsȱmayȱproveȱbetter.ȱȱLeaksȱ fromȱthreadedȱconnectionsȱareȱ usuallyȱnotȱaȱresultȱofȱinitialȱ installation.ȱȱLeaksȱareȱusuallyȱaȱ resultȱofȱwhatȱhappensȱlaterȱ (corrosion,ȱthingsȱbumpingȱintoȱtheȱ MSAs,ȱcustomerȱabuse,ȱetc.).ȱȱMostȱ likelyȱthisȱpracticeȱwillȱresultȱinȱanȱ incrementalȱreductionȱofȱemissions.ȱ Februaryȱ28,ȱ2017ȱ Methods,ȱsystemsȱandȱcomponentsȱ usedȱtoȱpreventȱand/orȱstopȱtheȱ uncontrolledȱflowȱofȱmethaneȱfromȱaȱ gasȱsystemȱorȱstorageȱfacility.ȱ ȱ Thisȱrequirementȱshouldȱnotȱbeȱ duplicativeȱtoȱtheȱDOGGR’sȱorȱCARB’sȱ Oilȱ&ȱGasȱRegulations.ȱ Design,ȱ Processȱandȱ Programȱ Developmentȱ &ȱTraining,ȱIMȱ Crossoverȱ Storageȱfacilitiesȱcontainȱlargeȱ volumesȱofȱmethane.ȱȱAnȱ uncontrolledȱreleaseȱwillȱnegateȱtheȱ methaneȱreductionsȱofȱotherȱutilities,ȱ increaseȱgreenhouseȱgasesȱandȱ endangerȱpublicȱhealthȱbyȱreleasingȱ largeȱamountsȱofȱodorantȱandȱotherȱ toxicȱnaturalȱgasȱbyȬproducts.ȱ Februaryȱ28,ȱ2017ȱ DigȬInsȱ–ȱPublicȱeducationȱprogramȱtoȱ alertȱtheȱpublicȱandȱcontractorsȱtoȱtheȱ CallȱBeforeȱYouȱDigȱ–ȱ811ȱprogram.ȱȱInȱ addition,ȱutilitiesȱmustȱprovideȱ proceduresȱforȱcontractorsȱtoȱfollowȱ whenȱexcavatingȱtoȱpreventȱdamagingȱ orȱrupturingȱaȱgasȱline.ȱ Existingȱ Practice,ȱȱ Processȱandȱ Programȱ Developmentȱ &ȱTrainingȱ DigȬInsȱareȱtheȱmajorȱcauseȱofȱgasȱ lineȱruptures.ȱ Now.ȱ R.15-01-008 CEK/ek4 ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ʹͳȱofȱ22 ȱ ȱȱ DigȬInsȱ–ȱUtilitiesȱmustȱprovideȱ companyȱmonitorsȱtoȱwitnessȱallȱ excavationsȱnearȱgasȱtransmissionȱlinesȱ toȱensureȱthatȱcontractorsȱareȱfollowingȱ utilityȱproceduresȱtoȱproperlyȱexcavateȱ andȱbackfillȱaroundȱtransmissionȱlines.ȱȱ Monitoring,ȱ Existingȱ Practiceȱ Thisȱisȱnecessaryȱtoȱensureȱthatȱ peopleȱexcavatingȱaroundȱtheȱlineȱdoȱ notȱdamageȱitȱorȱruptureȱit.ȱȱItȱisȱ possibleȱtoȱhaveȱanȱexcavatorȱnickȱorȱ damageȱaȱtransmissionȱlineȱcausingȱitȱ toȱruptureȱyearsȱlater.ȱ Nowȱ DigȬInȱRepeatȱOffendersȱ–ȱContractorsȱ foundȱtoȱbeȱatȱfaultȱmoreȱthanȱonceȱbyȱ aȱCPUCȱinvestigation,ȱforȱrupturingȱaȱ gasȱline,ȱmustȱbeȱlabelledȱRepeatȱ Offenders.ȱTheyȱmustȱbeȱforbiddenȱ fromȱexcavatingȱnearȱgasȱlinesȱinȱtheȱ future.ȱȱInȱaddition,ȱtheȱutilityȱmustȱbeȱ reportȱthemȱtoȱtheȱCaliforniaȱ Contractor’sȱStateȱLicenseȱBoard.ȱȱTheȱ Boardȱhasȱtheȱauthorityȱtoȱinvestigateȱ andȱpunishȱdishonestȱorȱnegligentȱ contractors.ȱȱPunishmentȱcanȱincludeȱ suspensionȱofȱtheirȱcontractor’sȱlicense.ȱ Regulatoryȱ Repeatȱoffendersȱofȱtheȱ811ȱlawsȱareȱ common.ȱȱThisȱmustȱnotȱbeȱtolerated.ȱ Nowȱ R.15-01-008 CEK/ek4 (End of Attachment 1) ȱ ȱ ǦǤͳͷǦͲͳǦͲͲͺ ʹʹȱofȱ22 ȱ ȱȱ ATTACHMENTS AttachmentȱAȱȬȱBestȱPracticesȱConsolidatedȱSpreadsheetȱȱ TheȱExcelȱspreadsheetȱinȱAttachmentȱA,ȱfoundȱonȱtheȱRisk Assessment website at http://www.cpuc.ca.gov/riskassessment/ȱisȱtheȱworkȱproductȱfromȱtheȱBestȱPracticesȱ WorkingȱGroup.ȱȱAllȱspreadsheetsȱsubmittedȱbyȱtheȱpartiesȱhaveȱbeenȱmergedȱtogetherȱ (consolidated)ȱandȱnotesȱfromȱallȱofȱtheȱmeetingsȱhaveȱbeenȱaddedȱinȱRedȱintoȱtheȱ columnȱtitledȱ“AdditionalȱCommentsȱfromȱMeeting.”ȱȱPG&Eȱparticipantsȱagreedȱtoȱ categorizeȱtheȱBPsȱforȱus,ȱusingȱtheȱcategoriesȱfoundȱinȱMethodȱ1ȱandȱMethodȱ2.ȱȱTheȱ spreadsheetȱthatȱtheyȱdevelopedȱwasȱcirculatedȱbyȱPG&EȱtoȱtheȱServiceȱList.ȱȱTheȱstaffȱ ofȱtheȱCPUCȱprefersȱMethodȱ1;ȱhoweverȱpartiesȱareȱfreeȱtoȱuseȱwhateverȱmethodȱtheyȱ chooseȱtoȱhelpȱthemȱorganizeȱandȱcategorizeȱBPsȱforȱtheirȱpurposes.ȱȱ ȱ TheȱstaffȱofȱtheȱCPUCȱmodifiedȱMethodȱ1ȱslightly.ȱȱWeȱhaveȱaddedȱtwoȱcategoriesȱtoȱ theȱMethodȱ1ȱlist.ȱȱTheȱcategoriesȱareȱ“Design”ȱandȱ“RegulatoryȱIssue.”ȱȱTheȱcategoryȱ “Design”ȱisȱneededȱbecauseȱsomeȱBPsȱrequireȱdesignȱchangesȱtoȱgasȱsystemȱ infrastructure.ȱȱInȱaddition,ȱtheȱstaffȱofȱtheȱCPUCȱhasȱcolorȬcoded,ȱinȱlightȱgreen,ȱBPsȱ whichȱareȱalsoȱrecommendedȱbyȱtheȱEPAȱGasȱStarȱProgramȱandȱaddedȱtheȱlistȱofȱBPsȱ meetingȱtopics,ȱinȱtheȱyellowȱbox,ȱinȱtheȱupperȱrightȬhandȱcornerȱofȱtheȱspreadsheet.ȱ ȱ ȱ ȱ ȬENDȬȱ R.15-01-008 CEK/ek4 ATTACHMENT A (End of Attachment A) ATTACHMENT 2 October 4, 2016 Michael Picker, President California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102 RE: Support for Natural Gas Leakage Abatement Summary of Best Practices and Staff Recommendations Dear Mr. Pickler, The City of Azusa understands that the California Public Utilities Commission (CPUC) and California Air Resources Board (CARB) has developed proposed recommendations calling for better training programs, more trained and experienced personnel in the field, better leak detection processes, and a defined timeline to fix known leaks. The City applauds the CPUC and CARB staff for developing these recommendations and urges their adoption to improve worker safety and to further reduce the risk of damage to the environment from explosions, air pollution, and other climate change impacts due to natural gas leaks. If you have any questions or comments concerning our support for these recommendations, please contact Troy Butzlaff, ICMA-CM, City Manager, at tbutzlaff@ci.azusa.ca.us or 626-812- 5238. Sincerely, The Azusa City Council Joseph Romero Rocha, Mayor Angel Carrillo, Mayor Pro Tern Edward J. Alvarez, Councilmember Uriel E. Macias, Councilmember Robert Gonzales, Councilmember