Natural gas legislation looks to implement state climate strategy, faces opposition from utility

Natural gas legislation looks to implement state climate strategy, faces opposition from utility

April 7, 2021 Off By administrator

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Last year, Gov. Steve Sisolak’s administration released a climate strategy that emphasized the need for a long-term transition away from using natural gas and the need to start planning now.

Much of the state’s efforts around climate change have focused on transitioning from fossil fuels to renewables in how electricity is produced (most of the state’s power still comes from natural gas). But the climate strategy was significant because it singled out another area where natural gas is predominant: It’s still the default option for cooking and heating in homes and businesses. 

In order to meet the state’s statutory goal of reducing greenhouse gas emissions to net-zero by 2050, the climate strategy said policymakers need to plan out an equitable transition away from indoor natural gas by scrutinizing new utility infrastructure, giving customers a choice to switch to electric appliances and giving utility regulators more oversight over the planning process. 

Assemblywoman Lesley Cohen (D-Henderson) is sponsoring a bill, AB380, that aims to do that. At its core, the legislation would require gas utilities to go through a comprehensive planning process meant to consider the effects of decarbonization on their operations and ratepayers.

The legislation also directs state utility regulators to compile one or more reports on the role of gas utilities in reducing greenhouse gas emissions, how to ensure a safe and reliable grid with fewer customers paying for the system and strategies to ensure that the transition is equitable.

On Tuesday afternoon, the legislation got its first public airing in a hearing that stretched on for more than two hours. Supporters of the bill, including the Nevada Conservation League and the Natural Resources Defense Council, argue that planning for a long-term transition from natural gas is a necessary and common sense approach. Without planning today, they argued, ratepayers could be saddled with paying off unnecessary gas infrastructure for years to come.

Consumer Advocate Ernest Figueroa, who represents ratepayers in proceedings before utility regulators, said in testimony that he supported the legislation and agreed with that assessment. 

If it’s the state’s policy to transition from natural gas by 2050, Figueroa said “it is imperative for economic reasons that natural gas resource planning be implemented so that natural gas utility customers are not left with billions of dollars in stranded assets when that time comes.”

None of this is happening in a vacuum. Policymakers from cities and states across the country have increasingly looked at indoor gas use with more scrutiny as they address climate…

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