This Frequently Asked Questions (FAQ) page covers a variety of topics and is updated regularly. Do you have a question that isn’t listed?
Let us know and we’ll answer as soon as possible!
To most accurately represent the scope of this project and concepts related to a data-driven tool development for prioritizing gas pipeline decommissioning, these FAQs contain technical language that best characterizes the relevant scope and concepts. The project team will make ourselves available to provide any clarification on information in these FAQs.
The California Energy Commission (CEC) has funded the DNV and UCLA team to conduct this research project to collect and visualize data that can help to develop a scalable, systematic approach to screen for promising candidate decommissioning sites within the state’s distribution gas pipelines. (The scope of this project does not include gas transmission pipelines nor production facilities or sites.)
The Mindful Decommissioning team is collecting data based on factors such as physical condition of pipelines, gas network characteristics, energy resilience, costs of decommissioning to customers, how energy, health and economically burdened communities will be affected, and how to decommission safely and equitably, among many others.
The team will use the research data to build a data-driven tool that can geospatially (visually) rank criteria of gas decommissioning across different geographical regions of the state.
Engaging our communities and stakeholders to increase understanding of impacts and benefits of decommissioning on environmental justice and energy equity is a priority for this project. It is also very important to gain community and stakeholder feedback to validate the relevant data. The project is currently in progress and is set to end in 2025, at which time the goal is to deliver a final version of the tool to the state.
The role of natural gas in California’s energy system is changing as the state strives toward a clean energy future. Over the next 25 years, state and municipal laws concerning greenhouse gas (GHG) emission reductions will result in the replacement of gas-fueled technologies and will reduce the demand for fossil natural gas (CPUC, 2020). Without proper management, these transitions will impose challenges not only to customer affordability, but also to gas system planning, operations and maintenance, and safety.
“The prospect of significant reductions in retail customer demand for natural gas creates a planning imperative. With fewer customers and less natural gas demand, the cost of natural gas for remaining retail customers is expected to rise and could become unsustainable, particularly for low-income customers, unless system costs that are recovered through rates can also be reduced over time (Gridworks, 2019; Aas, et al. 2020)”.
There are two critical concerns that disadvantaged communities may face as a consequence of decommissioning. First, gas appliances such as furnaces and stoves will in many cases have to be replaced with appliances that run on electricity if those customers choose to decommission. In some cases, older homes may also need upgrades to their electrical service to accommodate the increased load. Disadvantaged and lower-income households are typically less able to afford these replacements than higher-income households. Second, as the number of gas customers decreases, there will be fewer people paying to maintain the gas system. This could lead to increasing gas utility bills for customers who continue to use gas. These two risks combine to put disadvantaged and lower-income households at risk for increasing gas utility bills because they may not be able to afford to replace their old gas appliances with electric appliances. These risks may be somewhat offset by home energy efficiency incentives and/or rebates. Other risks of decommissioning that will need to be managed during the transition include the impact of decommissioning lines on the gas network properties (how well the gas can flow through the pipeline to meet customer needs), and the impact on energy resilience (having access to energy in multiple forms).
DNV will lead a Community Engagement and Energy Equity process that includes:
If your home or business currently relies on gas for heating, cooking, water heating, laundry, or other purposes, gas decommissioning would mean transitioning to alternative energy sources. This could involve converting your appliances to electric or switching to other delivered fuel sources. Some appliances may be adapted to work with alternative energy sources, while others may require full replacement. Fuels such as renewable natural gas or hydrogen may replace natural gas in difficult-to-decarbonize sectors, including some industries.
The decommissioning of gas lines in California could potentially have an impact on energy prices in the state, but the extent of this impact would depend on various factors and the broader energy landscape. These factors include supply and demand, negotiations between the utilities and regulatory agencies about what rates they can charge, and state and federal policy decisions that can make financial aid available for households and business to convert from gas-using to electricity-using appliances. Analysis of energy price impacts due to decommissioning is being considered as part of the DNV/UCLA Mindful Decommissioning study.
Utility services such as gas and electric are considered a vital public need, and therefore utilities are obligated to provide service to any member of the community who requests it, without discrimination. For this reason, decommissioning is being considered within the context of communities seeking to accelerate their transition to clean energy. For as long as customers on the network are choosing to use gas, and the pipelines are still serving gas, there is, at the moment, an obligation for the utilities to provide that gas to the customer.
Your thoughts and feedback will help improve outcomes of this project for Californians!
Your feedback will inform the development of the tool that will guide California’s leaders when deciding where and how to decommission sections of the state’s gas pipeline infrastructure. By sharing your thoughts, you can help create a useful tool that prioritizes the needs of California residents.
