8. NATURAL GAS
framework established by Congress. The DOE’s Office of Energy Efficiency and Renewable Energy administers the SEP. Congressional appropriation for SEP in FY 2019 is USD 55 million, which is then allocated to state energy offices. This level of funding is similar to the 2018 level.
In the event of an emergency, the DOE provides emergency situational awareness reports, co-ordinates the response among industry partners and federal, state and local agencies, and helps facilitate the restoration of energy systems. Providing timely and accurate reports and situational assessments plays a crucial role in helping other government agencies and industry to prepare for and recover from disruptions.
Gas emergency response measures
Strategic storage
The US government neither holds strategic reserves of natural gas nor places a minimum natural gas stockholding obligation on industry.
Interruptible contracts
The US government does not have any policies in place at the federal level to promote interruptible contracts as a natural gas emergency management tool.
Demand restraint
The US government does not have any demand restraint policies in place at the federal level for use during a natural gas supply disruption. However, the federal government has provided grants to state energy offices to develop energy emergency response plans, including natural gas allocation, demand restraint policies and associated regulations.
With regard to developing emergency response policies and associated measures in advance of an emergency, the federal and state levels share information about policies and best practices through the National Association of State Energy Officials (NASEO). In 1986, NASEO was created by the states to improve the effectiveness of state energy programmes and provide policy analysis. NASEO acts as a repository of information on challenges of particular concern to the states and shares successes among its members. NASEO derives basic funding from the states and the federal government via the SEP.
Fuel switching
There are several legal authorities that authorise the president to declare an emergency that will require fuel switching or prohibit the burning of natural gas for power generation. These authorities have not previously been used. The electricity generation sector has significant fuel-switching capacity in place. According to the EIA 2017 Electric Power Annual report, 28.8% of generators reporting gas as the primary fuel can switch to oil in case of a disruption; and 21.4% of the generators reporting petroleum liquids as the primary fuel can switch to gas. These numbers are average figures across all three sectors (electric power, industrial and commercial) using gas or oil generators.
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ENERGY SECURITY
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