THE SOURCE - Summer 2018 - 26

the pipeline

Trump Administration Proposals Could
Have Substantial Impact in Stimulating
Oil and Gas Pipeline Development


change in administration
in Washington D.C., often
brings new initiatives and
legislative agendas. With the passage
of comprehensive tax reform and the
finalization of a federal budget, President
Donald Trump's Administration has
now turned its attention to the nation's
infrastructure. During the January 30 State
of the Union Address, President Trump
stated, "Together, we can reclaim our
building heritage. We will build gleaming
new roads, bridges, highways, railways,
and waterways across our land. And we
will do it with American heart, American
hands, and American grit."
On February 16, the White House
released the Administration's Legislative
Outline for Rebuilding Infrastructure
in America. The plan outlined various
infrastructure proposals, including
actions aimed at reforming pipeline
permitting and expanding financial
solutions for pipeline development. As
of now, the details of this plan remain
simply as proposals. However, there is no
mistaking this Administration's mission to
stimulate increased oil and gas pipeline
development. Some plan elements could
have substantial impact on municipal
natural gas distribution systems.
* Rural Infrastructure: The
Administration aims to provide
$50 billion to a Rural Infrastructure
Program. The program's goal is to
improve the condition and capability
of rural infrastructure through
capital improvements, which will
ready localities looking to attract
manufacturing and economic growth.
Of these funds, 80 percent would be





awarded via formulaic distribution
block grants to state governors and 20
percent via rural performance grants.
Consistency in Permitting: The
plan calls for the Secretary of the
Department of Interior to gain the
authority to review and approve
rights-of-way for oil and gas pipelines
across federal lands. While this is
already true for electric, water and
communications projects, Congress
retains authority for oil and gas. The
requirement to gain congressional
approval for each pipeline crossing
is time consuming, complex, and
inconsistent with other utilities.
Reduce Permitting Delays: The plan
seeks to streamline various permitting
requirements under NEPA, the
Clean Air Act, and other statutes. For
example, under the Clean Water Act,
pipeline developers must receive
a State Water Quality Certification
prior to receiving permits from the
U.S. Army Corps of Engineers. While
the law provides a year for states to
provide this certification, that time
frame is often significantly extended.
The Administration's plan proposes to
amend the Clean Water Act to ensure a
complete determination by the states
without significant delay.
Infrastructure Financing: The plan
includes providing additional flexibility
and broadens eligibility to facilitate
the use of Private Activity Bonds (PAB).
Please note that energy projects are
not listed as eligible under the current
Workforce Development and
Empowering Workers: The plan looks


to modernize existing federal grant
and funding programs to better meet
the needs of students, workers, and
Some of these proposals could directly
influence how municipal natural gas
systems fund system expansion projects,
while others will directly benefit upstream
providers of natural gas. The permitting
process for pipeline construction has
often been the most time consuming and
expensive step in the engineering and
construction of natural gas pipelines. The
proposals set forth in the Administration's
infrastructure plan could aid in
streamlining those permitting processes
and reduce the time it takes to receive
approval. While the plan does not address
all permitting process deficiencies at the
federal, state, and local level, the proposals
are a step in the right direction.
Even with these potentially positive
changes, one might ask: Will these changes
help spur new pipeline construction?
Pipeline infrastructure expansion
challenges will likely remain at the
grassroots local level. Pipeline developers
will find that nontraditional stakeholders
- sophisticated, well-funded groups that
truly believe in their mission and who
oppose pipelines - remain the most vocal
and visual barrier to construction.
Providing education and awareness
of the benefits of natural gas and
articulating the necessity of this critical
infrastructure becomes a responsibility
for all natural gas stakeholders. Now more
than ever, it is important for upstream
suppliers, distribution providers, and end
users of natural gas to share a common


By Erin Kurilla


Table of Contents for the Digital Edition of THE SOURCE - Summer 2018

APGA Events
First Person
2018 Starts off with Gas Records
Energy Regulatory Update
The Result of Not Addressing Increasing Cybersecurity Risk
Conversation with an APGA Member
APGA Leads Charge to Lower Pipeline Rates to Match Lower Tax Rates
Legislative Outlook
Enhancing Resilience of Critical Infrastructure with Combined Heat and Power
The Pipeline
The Importance of Getting Involved with State and Local Building Code Developments
At Last
Advertisers’ Index/
THE SOURCE - Summer 2018 - Intro
THE SOURCE - Summer 2018 - bellyband1
THE SOURCE - Summer 2018 - bellyband2
THE SOURCE - Summer 2018 - cover1
THE SOURCE - Summer 2018 - cover2
THE SOURCE - Summer 2018 - 3
THE SOURCE - Summer 2018 - 4
THE SOURCE - Summer 2018 - 5
THE SOURCE - Summer 2018 - 6
THE SOURCE - Summer 2018 - APGA Events
THE SOURCE - Summer 2018 - First Person
THE SOURCE - Summer 2018 - 9
THE SOURCE - Summer 2018 - 2018 Starts off with Gas Records
THE SOURCE - Summer 2018 - 11
THE SOURCE - Summer 2018 - Energy Regulatory Update
THE SOURCE - Summer 2018 - 13
THE SOURCE - Summer 2018 - The Result of Not Addressing Increasing Cybersecurity Risk
THE SOURCE - Summer 2018 - 15
THE SOURCE - Summer 2018 - 16
THE SOURCE - Summer 2018 - 17
THE SOURCE - Summer 2018 - Conversation with an APGA Member
THE SOURCE - Summer 2018 - 19
THE SOURCE - Summer 2018 - APGA Leads Charge to Lower Pipeline Rates to Match Lower Tax Rates
THE SOURCE - Summer 2018 - 21
THE SOURCE - Summer 2018 - Legislative Outlook
THE SOURCE - Summer 2018 - Enhancing Resilience of Critical Infrastructure with Combined Heat and Power
THE SOURCE - Summer 2018 - 24
THE SOURCE - Summer 2018 - 25
THE SOURCE - Summer 2018 - The Pipeline
THE SOURCE - Summer 2018 - The Importance of Getting Involved with State and Local Building Code Developments
THE SOURCE - Summer 2018 - 28
THE SOURCE - Summer 2018 - At Last
THE SOURCE - Summer 2018 - Advertisers’ Index/
THE SOURCE - Summer 2018 - cover3
THE SOURCE - Summer 2018 - cover4
THE SOURCE - Summer 2018 - divider1
THE SOURCE - Summer 2018 - divider2
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