Railroad Commission opens door to alternative energy

The Railroad Commission of Texas, which oversees oil and gas production in the state, recently reorganized some of its staff to improve efficiency and pave the way for a possible, future increase in the use of compressed natural gas as a transportation fuel.

The three commissioners, based in Austin, unanimously approved the creation of the Alternative Energy Division on Oct. 22. Commissioner Elizabeth Ames Jones, appointed by Gov. Rick Perry to the commission in 2005, announced the AED’s launch the following day.

The new division, which focuses on existing alternative energy currently under the commission’s jurisdiction, is comprised of staff from across the agency, now united under one common purpose: the promotion and regulation of alternative fuels throughout the state of Texas. It’s being billed as a more efficient way to manage operations because there can be cross-training of inspectors, trainers, marketers and licensors in one place.

“We had a division solely dedicated to propane, which is a very important resource to consumers, but by combining (staff) into one larger Alternative Energy Division, we have the ability to have these efficiencies through cross-training of staff,” Jones said, “and we also have the potential at some point for going ahead and including other alternative fuels.”

The Railroad Commission of Texas already has been promoting propane as a transportation fuel (a seven-city bus tour touting propane’s benefits continues). According to the commission, Texas operates about 10,000 propane vehicles, and about 1,500, or 4 percent, of the state’s school buses are propane-powered. About 35 Texas districts operate propane school buses, and some have been using the fuel for more than 25 years. A typical propane school bus reduces emissions of certain pollutants by at least 83 percent compared to older diesel models.

Other important fuels would be liquefied natural gas, commonly known as LNG, and compressed natural gas, or CNG, which is used in many fleet vehicles. In the Fort Worth-Dallas area, three districts operate a total of about 40 CNG buses, according to the commission.

Jones said the AED’s creation allows the infrastructure to be put in place should CNG present itself as a fuel that can be promoted statewide, much like propane has been.

“I’m really excited because it puts the Railroad Commission – it makes what we’re doing now today more efficient,” Jones said. “And it provides the infrastructure for any future alternative fuel, specifically natural gas. The Railroad Commission could facilitate the public use of (CNG or LNG) along the same lines we oversee the propane industry.”

Barnett Shale Energy Education Council Executive Director Ed Ireland is a proponent of natural gas as a transportation fuel. Ireland and Texas Christian University’s Ken Morgan, director of the Energy Institute, recently launched the Metroplex Natural Gas Vehicle Consortium, which aims to bring together groups and people who are interested in natural gas vehicles, including fleet operators, natural gas producers and more. One of the consortium’s goals is to encourage the building of natural gas-fueling stations.

“I think any encouragement at the state level can certainly help the process for sure,” Ireland said.

He added, “Of course, there is a lot of gas and the idea that using that gas in vehicles that operate in the Barnett Shale accomplishes two things: it uses the gas we have and because natural gas burns cleaner, it also will help reduce the ozone in the nonattainment area.”

No additional funding will be required to implement the Railroad Commission of Texas division changes, and Jones shrugs off suggestion that the combination of two divisions is related to the economic woes.

“I think it’s incumbent on anybody at the helm of an agency to always self-examine and see how you do something better,” she said. “Whether the economy is bad or not, it’s an obligation. But I think as we’re seeing more potential for other energy sources, like natural gas, the Railroad Commission is the likely place to facilitate that public-private partnership, because we would be in a regulatory position.”

Jones acknowledges that the change probably won’t affect the average Texan’s daily life, but it could have an impact if Texas school district, municipalities, companies and more becoming increasingly interested in natural gas as a transportation fuel.

“This might not rise to be on the average person’s radar screen,” Jones said, “but for the people who have an interest in what the Railroad Commission is up to I thought it would be a good thing to let them know what’s going on.”