HomeMy WebLinkAbout1993-03-09 - AGENDA REPORTS - GAS INDUSTRYS PROGRAM (2)AGENDA REPORT
City Manager Approval
Item to be presented by:
Ken Pulskamp
CONSENT CALENDAR
DATE: March 9, 1993
SUBJECT: Support of the Gas Industry's Program for the Development
of Natural Gas Technology
Resolution Number 93-18
DEPARTMENT: City Manager
BACKGROUND
In December 1992, the Southern California Gas Company (SoCalGas) published its position on
natural gas technology development and its strong support of increased federal investment in
the research, development and demonstration of new, low emission and high efficiency natural
gas technologies. According to SoCalGas, natural gas technology development can improve
air quality, enhance energy security and stimulate local economies by providing for increased
job opportunities. In Southern California, the economic benefits of the gas industry's RD&D
proposal would be substantial. SoCalGas maintains that according to a recent study, if
Southern California received a fair share of the gas industry request, by 2010 the region would
enjoy over $1 billion worth of additional production of goods and services, an increase of
almost a billion and -a -half dollars in real disposable income, and an additional 30,000 jobs.
However, SoCalGas finds that current levels of federal funding for natural gas technology
development are inadequate to ensure that natural gas can play its expected role in improving
air quality and enhancing energy security. The SouthernCalifornia Gas Company urges
adoption of the gas industry's program to.invest $250 million per year for 10 years in natural
gas technology development to meet environmental and national security objectives as well as
to create new economic opportunities.
It is suggested that the City support, by resolution, the natural gas indushys proposal calling
for increased federal funding to help develop new natural gas technologies.
RECOMMENDATION
Adopt Resolution No. 93-18.
ATTACHMENTS
1. Resolution No. 93-18
2. "Position Paper," Southern California Gas Company, December 1992
Adopted: 9 Agenda Item:
I
RESOLUTION NO. 93-18
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA
SUPPORTING THE GAS INDUSTRY'S PROGRAM FOR
THE DEVELOPMENT OF NATURAL GAS TECHNOLOGY
TO MEET ENVIRONMENTAL AND NATIONAL SECURITY OBJECTIVES,
AS WELL AS CREATE ECONOMIC OPPORTUNITIES
WHEREAS, the City of Santa Clarita is committed to strengthening Southern
California's weak economy and to reversing the negative impact on the local
community and its citizens; and
WHEREAS, the United States Congress and the President recently approved a
new energy policy designed to increase utilization of clean, domestically -produced
natural gas to enhance the nation's energy security and provide for economic growth
and environmental protection; and
WHEREAS, this new energy policy specifically directs the Department of
Energy to carry out a program to promote the development and commercialization of
existing and new; more advanced natural gas utilization technologies; and
WHEREAS, the Clinton Administration supports a federal research and
development investment in energy and environmental technologies that will create
private -sector jobs and spur economic recovery and long-term growth; and
WHEREAS, a proposed $2.5 billion federal investment over the next decade in
a natural gas end-use technology research, development and demonstration (RD&D)
program would facilitate a defense -conversion program in California; and
WHEREAS; strategic annual RD&D investments of $144 million over the next
eight years in the Southern California region alone would, by the year 2010, lead to
more than 30,000 new jobs, $1 billion in additional Gross Revenue Product, and an
increase of over $1.4 billion in real disposable income in this region, in addition to
other statewide economic benefits; and
WHEREAS, due to Southern California's unique characteristics — a technically
sophisticated work force skilled in advanced design, engineering, management and
financial services; high quality technical training programs offered by leading U.S.
educational institutions; unique research facilities, a manufacturing sector oriented to
technology; excess R&D capacity due to reductions in defense spending, and state
and local agencies that actively invest in RD&D related to governmental goals --
RD&D investment in this region is likely to yield greater economic benefits than
other areas of the country;
NOW, THEREFORE BE IT RESOLVED, that the City of Santa Clarita urges
the Department of Energy to establish, and the President and Congress to fund, an
accelerated $2.5 billion natural gas RD&D program focusing on the following:
o improved, high -efficiency, low emission gas combustion technologies;
o dedicated natural gas vehicles and emissions controls, and the requisite
refueling infrastructure, and advanced engines and propulsion concepts;
and
electrochemical energy conversion through commercialization of phosphoric
acid and molten carbonate fuel cells, and development of advanced natural
gas -powered fuel cell technologies;
AND BE IT RESOLVED, that a strategic investment of federal RD&D dollars
be made in California, and specifically the Southern California region, because of its
leadership in energy technology innovation and adoption; and
BE IT FURTHER RESOLVED, that the City of Santa Clarita encourages other
local government agencies and community coalitions to adopt policies which
encourage the research, demonstration and full commercialization of new and
advanced natural gas utilization technologies.
The City Clerk shall certify to the adoption of this iesolution.
PASSED, APPROVED AND ADOPTED this _ day of , 19_.
Mayor
ATTEST:
Donna M. Grindey, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF SANTA CLARITA )
I, Donna M. Grindey, DO HEREBY CERTIFY that the above and foregoing Resolution
was duly adopted by the City Council of the City of Santa Clarita at a regular
meeting thereof, held on the _ day of , 19_, by the following vote of
Council:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
Donna M. Grindey
City Clerk
councillreso93-18
SOUTHERN CALIFORNIA GAS COMPANY
Natural Gas Technology Development
POSITION
The Southern California Gas Company (SoCalGas) strongly supports increased
federal investment in the research, development and demonstration of new, low
emission and high efficiency natural gas technologies. Natural gas technology
development can improve air quality, enhance energy security and stimulate local
economies by providing for increased job opportunities.
ISSUE
Over the last several years there has been a growing interest in expanding the role
of natural gas in our nation's energy mix. In 1990, the Clean Air Act re -focused
the nation's attention on the important role of natural gas because of its clean -
burning, low emission characteristics. The use of natural gas in most applications
can significantly reduce the emission of precursors to ozone, one of the nation's
most pressing air quality problems.
In addition to being perceived as a solution to airpollution, natural gas is also seen
as an important resource to enhance our energy security. Increasing the utilization
of domestically produced natural gas is one of the key elements of the recently
passed National Energy Policy Act. Most all of the natural gas utilized in the U. S.
comes .from the western.. hemisphere, and it can be used in place of foreign
imported oil.
To fulfill the growing expectations. for this valuable energy resource, the natural
gas industry has invested hundreds of millions of dollars in the last decade to
develop new technologies that take advantage of the fuel's flexibility, relative low
emissions and high efficiency to increase the benefits which natural gas can
provide to the U.S. economy.
Now it is time for the federal government to allocate funds in accordance with the
policies it has adopted. Increased federal funding is necessary to improve existing
natural gas applications, to develop new, emerging energy technologies for the
future, and to develop vehicle technologies that can ensure natural gas a place in
the transportation sector.
Position Papers are published periodically by Southern California Gas Company to outline its stand on subjects
that may affect the company and its customers.
Currently, the Department of Energy (DOE) research budget disproportionately
favors less environmentally desirable energy resources such as coal. Coal
provides roughly 25 percent of the nation's energy requirements and receives
almost 25 percent of the DOE's available research budget. Yet natural gas also
provides for a fourth of the -nation's energy requirements, but receives only three
percent of the DOE's available budget.
The nation's investment priorities in energy research must change. That is why
the natural. gas industry developed a , proposal calling for investment of
approximately $2.5 billion spread over ten years to help develop new natural gas
technologies that would not only help the nation meet its environmental and
energy security objectives, but would stimulate massive new economic activity
and create new jobs.
Benefits resulting from the increased funding proposal were demonstrated in two
different, far-reaching economic .studies. A respected Washington economic
forecasting firm projected. earlier this year that full funding of this program would
result by 2010 in an $18.3 billion increase in GNP, 204,000 -net new jobs, and a
$9.2 billion increase in real personal disposable income.
Closer to home, in southern California, the economic benefits of the gas industry's
RD&D proposal would be substantial. According to a study recently conducted by
Foster Associates, Inc., if southern California received a fair share of the gas
industry request, by 2010 the region would enjoy over $1 billion worth of
additional production of goods and services, an increase of almost a billion and -a -
half dollars in real disposable income, and an additional 30,000 jobs.
By all standards,. this represents an impressive return on investment._ The
economic, environmental and social rewards for the region -- and indeed the nation
-- of increased funding for natural gas technology development can only be
accomplished through a greater commitment by the DOE and the Congress.
Conclusion:
Current levels of federal funding for natural gas technology development are
inadequate to ensure that natural gas can play its expected role in improving air
quality and enhancing energy security. The Southern California Gas Company
urges adoption of the gas industry's program`to invest $250 million per year for
10 years in natural gas technology development to meet environmental and
national security objectives as well as to create new economic opportunities.
Public Affairs Planning & Analysis
December, 1992