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Recommendations

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Chapter VI: Integrating North American Energy Markets Canada and Mexico also participate in the Carbon Sequestration Leadership Forum, a Ministerial-level international initiative focused on developing improved cost-effective technologies for the separation and capture of carbon dioxide for its transport and long-term storage. Canada currently participates in eighteen projects, including the completed Alberta Enhanced Coal-Bed Methane Recovery Project, which aimed at demonstrating the feasibility of coal-bed methane production and simultaneous carbon dioxide storage in deep unmineable coal seams. 51 The United States, Canada, and Mexico also cooperate in other fora, including the Asia-Pacific Economic Cooperation, the Major Economies Forum, and the International Partnership for Energy Efficiency Cooperation. Administration Activities and Plans Engagement on further integration of U.S., Canadian, and Mexican energy systems has led to a number of concrete outcomes, including the following: Data Exchange. The United States, Canada, and Mexico are creating a framework for the sharing of publicly available information and data on their respective energy systems. This initiative was formalized in a memorandum of understanding (MOU) signed by the Department of Energy, Canada’s Ministry of Natural Resources, and Mexico’s Ministry of Energy on December 15, 2014. The trilateral MOU covers data, information, maps, and statistics that are publicly available (it excludes any information considered confidential, strategic, or fundamental for national security and sovereignty reasons). Areas of cooperation include comparing energy-flow data between countries; geospatial information related to infrastructure; projections for cross-border flows of natural gas, electricity, crude oil, and refined products; and sector terminology. The MOU is expected to facilitate further dialogue, comparisons, and joint and individual work products on each country’s energy outlooks and information. b The President’s Fiscal Year 2016 Budget provides an increase of $1 million to the Energy Information Administration for the purpose of collaboration with Canada and Mexico to increase the quality, transparency, and integration of energy-related data. DIALOGUE WITH CANADA AND MEXICO ON THE QER Development of the Quadrennial Energy Review (QER) has provided an opportunity to engage Canada and Mexico in a deeper dialogue on the integrated nature of North American energy systems—including transmission, storage, and distribution infrastructure. This engagement included contacts with energy ministries in Canada and Mexico, invitations to public entities in those countries to submit comments through the QER process, and two formal dialogues: one with the Ministry of Natural Resources of Canada (September 19, 2014) and the other with the Ministry of Energy of Mexico (December 4, 2014). The formal dialogues with Canada and Mexico included participation from multiple relevant government agencies, industry, nongovernmental organizations, and academic institutions. The input received from these sessions and through the formal public comment process (as described in Chapter X, Analytical and Stakeholder Process) has been considered in developing this section of the QER. Secretary Moniz, Secretary Joaquín Coldwell, and Minister Rickford met on December 15, 2014, in response to the call of the North American Leaders. They discussed in depth a strategic vision for North America’s energy sector and signed a trilateral memorandum of understanding. Key topics included public energy data and statistics collaboration; Mexico’s energy reform, its vision, perspectives, and opportunities for trilateral cooperation; and creating resilient infrastructure for North America. b Department of Energy. “Memorandum of Understanding among the Department of Energy of the United States of America and the Department of Natural Resources of Canada and the Ministry of Energy of the United Mexican States Concerning Cooperation on Energy Information.” December 2014. 6-12 QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015
QER Recommendations NORTH AMERICAN ENERGY MARKET INTEGRATION There are opportunities to build on past accomplishments in further enhancing North American energy integration. Accordingly, we recommend that all three countries carry out the following: Continue advances that have been made in the North American energy dialogue: All three countries should encourage further business exchanges and regular minister-level engagement. Increase the integration of energy data among the United States, Canada, and Mexico: Provide resources for EIA to collaborate with its Canadian and Mexican counterparts to systematically compare their respective export and import data, validate data, and improve data quality. In addition, efforts should be taken to better share geographic information system data to develop energy system maps and review forward-looking assessments and projections of energy resources, flows, and demand. Undertake comparative and joint energy system modeling, planning, and forecasting: All three countries should enhance comparative and joint modeling, planning, and forecasting among U.S., Canadian, and Mexican energy ministries and related governmental agencies. The current scale of activities has aided bilateral and individual goals; however, increasing trilateral engagement on planning, modeling, or forecasting activities would capture greater efficiencies and enhance each country’s ability to reach economic, security, and environmental goals. DOE’s Offices of Energy Policy and Systems Analysis and International Affairs should lead modeling workshops with their Canadian and Mexican counterparts to share methodologies and collaborate on North American analysis. Establish collaborative programs in each country for academic institutions and not-for-profits to develop legal, regulatory, and policy roadmaps for harmonizing regulations across borders: In partnership with universities, qualified not-for-profits, and relevant U.S. energy regulatory authorities, state/ provincial, local, and national energy regulations will be compared to identify gaps, best practices, and inconsistencies with regulations in Canada and/or Mexico with the goal of harmonization. Coordinate training and encourage technical dialogue: This coordinated training and enhanced dialogue of technical staff in government agencies of the three North American countries that share similar responsibilities to evaluate and implement cross-border energy projects. Energy Security and the Arctic Energy delivery to remote areas in the Arctic—including diesel fuel for electricity generation and heating in remote communities, industrial uses in mining and other industrial operations, and military installations— increases costs due to the broadly dispersed market and challenges of transporting energy products. Through its Power Cost Equalization program for rural communities, the Alaska Energy Authority reported serving more than 190 remote or rural communities, which used nearly 28 million gallons of diesel for electricity generation at an average price of $4.21 per gallon in fiscal year 2014. 52 Impacts of Climate Change on TS&D Infrastructure in the Arctic The entire Arctic is undergoing rapid changes on land and at sea due to the changing climate. Climate change is specifically affecting TS&D infrastructure in the North American Arctic region, including Alaska and U.S. territorial waters in the Bering, Chukchi, and Beaufort Seas, as well as Canada and its territorial waters. Warming in the Arctic region is resulting in increased risk of land subsidence from thawing permafrost, which threatens infrastructure. 53 It also leads to a reduction in late-summer sea ice extent, which increases QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015 6-13
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QUADRENNIAL ENERGY REVIEW: ENERGY T
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Preface In June 2013, through the P
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Presidential Memorandum The White H
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(xx) the Small Business Administrat
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TABLE OF CONTENTS Preface..........
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LIST OF FIGURES Figure SPM-1. Age b
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Figure 7-7. Conditions Affecting Li
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Summary TRANSFORMING U.S. ENERGY IN
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same systems (e.g., ports and railw
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Aging Infrastructure and Changing R
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Actions taken in the first term of
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Figure SPM-3. Billion-Dollar Disast
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Key Findings Mitigating energy disr
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Recommendations in Brief To continu
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The potential range of new transmis
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Improve grid communication through
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Undertake a study of the relationsh
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• Doubling the size of the Inland
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Key Findings The United States has
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Promote Caribbean energy TS&D infra
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Recommendations in Brief Improve qu
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• Developing curricula and certif
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(2) the Fish and Wildlife Service I
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Table SPM-2. Examples of Federal Me
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Chapter I INTRODUCTION This chapter
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The requirements that this TS&D inf
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Increases in U.S. Oil and Natural G
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Increased Deployment of Renewable E
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Figure 1-3. Percent Change in Retai
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Climate Science The key conclusions
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Figure 1-7. Change in Annual Averag
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Other actions to deploy low-carbon
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Figure 1-8. Historic and Projected
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Government can build and incentiviz
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Notes: 1. Analyses were conducted w
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Organization of the Remainder of th
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Endnotes 1. Edison Electric Institu
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39. Energy Information Administrati
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Chapter II INCREASING THE RESILIENC
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The Importance of Resilient, Reliab
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Figure 2-1. Illustration of Tornado
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Continued increases in extreme weat
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Weather-Related and Other Reliabili
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Drought is also problematic. In 201
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Electricity TS&D Vulnerabilities Va
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Distribution hardening projects are
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Although pipelines above and below
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Safety and Methane Emissions from G
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Indianapolis’ in 2013 (see Figure
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Natural Gas Infrastructure Dependen
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• The changing geography of natur
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ose to greater than $34 per million
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NE MN IA MO WI IL MI IN KY TN OH Gr
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Vulnerability of Fuel Supply Disrup
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Figure 2-8. Earthquake Vulnerabilit
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Liquid Fuel TS&D Dependencies on El
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Results from an Argonne National La
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QER Recommendations (continued) Sup
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QER Recommendations (continued) Ana
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Endnotes 1. Government Accountabili
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31. The Climate Institute. “Water
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63. Global Climate Change Research
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Chapter III MODERNIZING THE ELECTRI
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The Electric Grid in Transition The
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esources, including central station
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demand; and the costs of alternativ
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In the Southwest, transmission buil
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Pumped hydro storage currently repr
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Resilience investments can require
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Communication with Customer Devices
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and maintenance of the interconnect
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technical experts to develop a set
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Table 3-2. Taxonomy of Utility Busi
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Figure 3-6. Select Electricity Juri
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QER Recommendations The Administrat
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QER Recommendations (continued) Coo
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RECOMMENDATIONS IN BRIEF: Modernizi
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48. North American Electric Reliabi
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Chapter IV MODERNIZING U.S. ENERGY
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A Broad and Collective View of Ener
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States was forecast to become highl
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Changing Global and Domestic Oil Ma
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QER Recommendations SPR MODERNIZATI
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Biofuels and TS&D Infrastructure Is
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QER Recommendations TS&D INFRASTRUC
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The United States and Canada share
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Endnotes 1. Foreign Affairs, Trade
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Chapter VIII: Enhancing Employment
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Chapter IX: Siting and Permitting o
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9-26 QER Report: Energy Transmi
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Chapter X: Analytical and Stakehold
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LIST OF ACRONYMS AND UNITS APE - Ar
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