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Indianapolis’ in 2013 (see Figure 2-6), the proportion of pipeline-miles made from cast iron and steel in Boston<br />

Gas has reduced from 60 percent in 2008 to 51 percent in 2013. 77 To further expedite pipeline replacement,<br />

Massachusetts recently enacted a law requiring utility classification and prioritization of pipeline leaks for<br />

replacement or repair. 78<br />

The most leak-prone distribution pipeline materials are cast iron and bare steel, accounting for<br />

approximately 9 percent of distribution pipes in the United States 79 and resulting in roughly 30 percent<br />

of methane emissions from natural gas distribution systems. 80 All regions of the country have some leakprone<br />

distribution pipeline networks. Table 2-2 presents the top 10 states with the most miles of leak-prone<br />

distribution mains. r The magnitude of investment needed to replace all leak-prone distribution mains<br />

nationwide is more than $270 billion. s<br />

Table 2-2. 10 States with the Most Miles of Leak-Prone Distribution Mains 81<br />

Of the 10 states with the most miles of leak-prone natural gas mains, nine have infrastructure modernization acceleration initiatives.<br />

Rank<br />

State<br />

Leak Prone Iron<br />

Mains (mi)<br />

Leak Prone Steel<br />

Mains (mi)<br />

Total Leak Prone<br />

Mains (mi)<br />

Total Leak Prone Mains (% of<br />

pipes in state)<br />

1 PA 3,300 8,600 11,900 25%<br />

2 NY 4,200 7,500 11,700 25%<br />

3 OH 570 9,500 10,070 18%<br />

4 CA 29 8,200 8,229 8%<br />

5 NJ 4,900 2,200 7,100 21%<br />

6 MA 3,600 2,600 6,200 30%<br />

7 TX 820 5,000 5,820 6%<br />

8 MI 3,000 2,300 5,300 9%<br />

9 WV 13 3,000 3,013 29%<br />

10 AL 1,200 820 2,020 7%<br />

Despite progress in many states to help the replacement of leak-prone pipes in distribution networks, 82 some<br />

have limitations; many place caps on the magnitude of investments eligible for cost recovery and/or on the size<br />

of rate increases. Even with such special cost-recovery mechanisms, 83 at least one dozen utilities will require<br />

two decades or more to replace their leak-prone pipeline, and at least four will need over half a century. Table<br />

2-3 shows replacement time frames for select distribution systems.<br />

r<br />

Distribution mains are pipelines that serve as a common source of supply for more than one service line. Source: 49 CFR § 192.3. In:<br />

Department of Transportation, Pipeline and Hazardous Materials Safety Administration. “Glossary.” www.phmsa.dot.gov/staticfiles/<br />

PHMSA/Pipeline/TQGlossary/Glossary.html#main. Accessed March 9, 2015. Generally, these are gas pipelines running underground<br />

along streets, connecting to service lines that run to individual buildings.<br />

s<br />

The American Gas Association reports that the total cost of replacing all cast iron pipe in the United States is $82,682,696,844 in<br />

2011 dollars. According to Pipeline and Hazardous Materials Safety Administration data, cast iron pipes represent approximately<br />

30 percent of the total leak-prone pipe in the United States. Assuming other pipe replacement has similar costs, the total cost for<br />

replacement of all leak-prone pipe is roughly $270 billion. Source: American Gas Association. “Managing the Reduction of the<br />

Nation’s Cast Iron Inventory.” 2013. www.aga.org/managing-reduction-nation%E2%80%99s-cast-iron-inventory. Accessed<br />

January 16, 2015.<br />

QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015 2-21

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