December 2024, Vol. 251, No. 12
Features
APGA Chair Focuses on Safety, Lines of Communication
By Michael Reed, Editor-in-Chief
(P&GJ) – In her role at CPS Energy, Kathy Garcia, the chair of APGA, is responsible for federal, state, and local relations at CPS Energy, which is not a small order, considering the company has over 389,000 natural gas customers in San Antonio and portions of seven adjoining counties.
In that role, executes strategic governmental and regulatory relations, public policy and business development initiatives to protect and advance the interests of CPS Energy, which has over 6,000 miles of underground pipelines.
Garcia holds a bachelor of arts in Government & Sociology from the University of Texas at Austin and is a graduate of the Executive Education, Accelerated Development Program at Rice University.
In this interview, she discusses, among other topics, APGA’s priorities for the coming year, important regulatory concerns of the Association’s members and addressing public concern about pipeline projects at a local level.
P&GJ: What led you to a career in natural gas and eventually your current position?
Kathy Garcia: My journey into the natural gas industry began as a result of my interest in public policy and advocacy. In college, I majored in political science and became more aware of the impact that legislation and government decisions have on businesses and communities.
During an internship, I saw firsthand how effective advocacy could influence policy outcomes. After graduation, I worked at a private lobby firm that represented various clients and I learned the importance of connecting constituents with policy makers. This job opened a door for me to join CPS Energy where I’ve now been employed for 25 years, and able to apply my skillsets in policy, strategy and building relationships.
Additionally, working for a municipally owned utility is about serving the local community, and I’m grateful for the opportunity to serve my hometown city of San Antonio.
P&GJ: Can you tell our readers a little about CPS Energy and your role there?
Garcia: Established in 1860, CPS Energy is the nation’s largest municipally-owned provider of electric and natural gas services. We provide safe, reliable, and competitively priced services to 950,000 electric and 389,000 natural gas customers in San Antonio, Texas, and portions of seven adjoining counties.
As a trusted and strong community partner, we continuously focus on job creation, economic development, and educational investment. We have a skilled workforce of over 3,400 whose commitment to the community is demonstrated through our employees’ volunteerism in giving back to our city and programs aimed at bringing value to our customers.
In my role as vice president of Government Relations, Regulatory Affairs and Public Policy, I am responsible for leading CPS Energy’s policy development and advocacy efforts at the federal, state and local levels. This includes working with the utility’s Board of Trustees, our city owner, and various policy makers and regulators, recommending and executing legislative and regulatory strategies, and coordinating these activities with other local, public and private sector entities.
P&GJ: What do you see as the top priorities at APGA for the coming year?
Garcia: As is customary for APGA chairs, I have chosen a theme to help describe APGA’s priorities during my term. My theme is “Fuel for Life.” To me, Fuel for Life encompasses our commitment as public gas utilities to deliver fuel to homes and companies. The fuel we deliver allows our customers to operate their businesses and enjoy their lives.
Our association members believe natural gas is here for the long term. Sustainable energy solutions are at the forefront of policy discussions and as an industry we are committed to innovation and investing in research and development that strengthen our role.
I would also like to put a spotlight on how our industry is committed to improving the lives of the people we serve. We provide our communities with a fuel that helps them live their best lives in an efficient, reliable and cost-effective way. We continue to see attacks on all levels on the use of natural gas by homes and businesses, and APGA will continue to strongly oppose efforts that restrict the ability of consumers’ right to choose natural gas as an energy source. This is one of APGA’s top priorities.
During the next year, I also hope to prioritize efforts by APGA members to learn from each other, cross-share technologies and solutions to our biggest challenges, and develop resources to help us enhance the reliability and safety of our systems. Our priority every year is to continually improve at what we’ve been doing for over 188 years.
P&GJ: Are there any new or pending regulatory requirements that are of special concern to APGA members?
Garcia: The 2024 elections will bring about changes that could impact pending regulatory requirements or cause new ones. APGA looks forward to working with the new President and Administration, as well as the 119th Congress.
APGA will also continue its legal challenge against the U.S. Department of Energy’s (DOE) final rule that established a new efficiency standard for non-weatherized residential furnaces (Furnace Rule) that bans the only furnaces that are compatible with many existing homes. We are joined in this challenge with the American Gas Association, National Propane Gas Association, and other similarly concerned stakeholder groups.
Consolidated with this challenge are also challenges to DOE’s final commercial water heating equipment efficiency standard and the agency’s withdrawal of the “interpretive rule," which would have ensured that the necessary venting equipment used to install gas-fired appliances was considered a protected feature under law. APGA’s challenges of these rules aim to ensure consumer access to certain appliance technologies that can fit into their homes as designed, without expensive retrofits or forced fuel switching.
P&GJ: How are APGA and its members addressing the opposition to natural gas pipeline expansion at state and local levels?
Garcia: There is no denying that our country has abundant natural resources, including natural gas, and energy demand in our country is growing at an incredible rate. The U.S. also has an opportunity to support allies through liquified natural gas (LNG) exports.
However, the infrastructure to supply natural gas to those needing it is very much constrained. APGA continues to advocate for more pipelines through conversations with lawmakers on permitting reform. APGA was pleased to see legislation introduced from Senators Manchin and Barrasso on this issue. Their introduction is just a start, but we hope it gains support during this new Congress.
We also believe there are significant improvements to be made in the existing pipeline permitting processes. The best way to effectuate these improvements is through legislation. If permitting reform legislation doesn’t pass this Congress, APGA will continue to proclaim the need for more infrastructure to the men and women of the 119th Congress.
There are legislative fixes needed, but APGA also believes it is important to ensure that regulators, especially at the Federal Energy Regulatory Commission (FERC), recognize and appreciate the need for more pipeline infrastructure in our country. APGA will continue to appropriately engage in conversations with the FERC Chairman and the Commissioners on current pipeline capacity constraints and how that impacts the rates the consumers in their communities pay.
P&GJ: How are you communicating your messages to the public?
Garcia: Our members and association understand the importance of communicating our product and service to the general public. The public might not be aware of how natural gas is utilized, as well as its benefits, safety details and the policies surrounding it. We endeavor to provide effective messaging on the direct use of natural gas so that the public can understand it better, and we hope they continue to prioritize its use in their homes and businesses.
We are actively using and looking into different channels of communication whether it be digital advertising, social media, direct mail, media outreach, and more. We appreciate the need and want to dialogue with the public to make sure that they are accurately informed about natural gas.
P&GJ: What are some of the biggest challenges that natural gas providers must overcome in the short term?
Garcia: APGA members believe in their mission to provide efficient, affordable, and reliable energy to their customers. They are working hard to make sure policy makers know the value they bring to their communities, and APGA will advocate on behalf of its members to ensure policies allow the employees of public gas utilities and the infrastructure they operate play a role in delivering energy for many, many years to come.
P&GJ: Turning to pipeline safety, where is APGA focusing?
Garcia: APGA members strongly believe that prudent natural gas distribution operators have an obligation to not only meet federal and state pipeline safety regulatory requirements, but also seek opportunities to improve their system above and beyond regulation. APGA members are replacing aging infrastructure, purchasing state-of-the-art leak detection equipment, and implementing practices to enhance the safety culture at their organizations.
APGA continues to support and champion the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Natural Gas Distribution Infrastructure Safety & Modernization grant program.
To date, PHMSA has awarded $600 million specifically to publicly and community owned natural gas systems for the replacement of leaking pipelines and the purchase of new leak detection equipment. As an example, CPS Energy was awarded $3.25 million in 2023 and an additional $5.5 million this year to upgrade and modernize our natural gas pipeline infrastructure.
These grants will help us continue to serve our customers with the reliable and safe service they expect from CPS Energy.
In the next couple of months, we also expect PHMSA to publish one of the most impactful rulemakings since their formation in 1970 – the Gas Leak Detection and Repair Rule. This rule will codify both prescriptive and performance-based regulations that will regulate how every sector of the gas pipeline industry identifies and mitigates pipeline leaks.
We believe the gas distribution sector is well positioned to implement the practical requirements of this rule but remain concerned about some of PHMSA’s additional proposals.
P&GJ: Do APGA and its members see growth potential involving pipelines and hydrogen gas? If so, in what specific ways?
Garcia: Public gas utilities operate and maintain an incredible network of pipeline infrastructure and employ skilled, qualified, hardworking individuals. Those pipelines and those workers deliver energy – regardless of the molecule being burned to generate energy and heat.
No matter the gaseous fuel source, APGA members remain focused on providing efficient, affordable, and reliable energy to their customers. If hydrogen meets these criteria, then APGA will support its public utility members in determining how best to leverage this fuel option to serve their communities safely. At this time, APGA believes challenges remain concerning the sustainable production of hydrogen and transportation of gas with high hydrogen blends through existing pipelines.
Some small amounts of hydrogen blending with natural gas have occurred for decades and have been proven to not cause concern with end uses. APGA’s members aren’t sitting idly by though, some are involved in solving these hydrogen challenges, such as Philadelphia Gas Works (PGW) through their engagement in the Mid-Atlantic Clean Hydrogen Hub (MACH2).
P&GJ: What, if anything, about your job at CPS Energy keeps you awake at night?
Garcia: For decades, publicly owned local distribution companies have had to plan and operate under changing political landscapes and shifting regulations. Our member systems have become adept at this, remaining agile and accountable.
It’s crucial to stay ahead of potential impacts to our industry and we must continue proactively engaging with policy makers to influence decisions that align with our association’s goals. And while those items remain constant, I find myself considering how we can better recruit growing professionals to this line of work, specifically for public gas systems like ours.
Natural gas is an important part of everyday life for millions of Americans and it’s essential to expand our network of advocates who understand the industry’s contributions and can share that message. APGA welcomes collaborating and partnering with others that share this perspective.
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