U.S. Department of Transportation Office of Pipeline Safety February 13, 2018 Jay Prothro Community Liaison Program Manager PHMSA, Southwest Region

Discussion Quick Agency overview Excavation Enforcement overview Update on status of State evaluations Key Initiatives PERI Joint Initiative – NCCER and PHMSA Questions / discussion

PHMSA Organizational Structure PHMSA Administrator Deputy Administrator Office of Chief Counsel Office of Government, International and Public Affairs Executive Director/Chief Safety Officer Office of Civil Rights Office of Planning and Analytics Office of Pipeline Safety Office of HAZMAT Safety Chief Financial Officer Office of Administration

New PHP Organizational Structure AA for Pipeline Safety Alan Mayberry DAA for Policy and Programs Vacant DAA for Field Operations (2) Linda Daugherty **Operations Systems (5) Blaine Keener **Program Development (5) Vacant Financial Administration & Resource Management (9) Gwen Hill **Policy and Programs Strategy & Planning (3) Nancy White Operations and Standards Review (4) Bill Rush Standards and Rulemaking (11) Cameron Satterthwaite (Acting) **Oil Spill Preparedness & Emergency Support (9) Dave Lehman **Outreach and Engagement (18) Christie Murray **Accident Investigation (14) Peter Katchmar Engineering and Research (13) Kenneth Lee Eastern Regional Offices (27) Robert Burrough (Acting) State Programs (15) Zach Barrett Southern Regional Offices (28) James Urisko Restructure of Agency units to better focus Enforcement (8) Rod Dyck Central Regional Offices (42) Allan Beshore Inspector Qualifications & Training (16) Doug White Western Regional Offices (36) Chris Hoidal Legend ( ) FTEs ** New division or name change Southwest Regional Offices (46) Rod Seeley

PHMSA’s FY2015 IT Portfolio Background Excavation damage continues to be a leading cause of serious pipeline accidents Efforts to reduce this threat are showing results Serious Incident Cause Breakdown 20 Year Average (1997-2016) Serious Incident Cause Breakdown 10 Year Average (2007-2016)

PHMSA’s FY2015 IT Portfolio Excavator Type for Pipeline Incidents Caused by Excavation Damage – 2005 - Present Data Source: US DOT Pipeline and Hazardous Materials Safety Administration STATE: ALL INCIDENT TYPE: All Encourage you to look at the dirt report

PHMSA’s FY2015 IT Portfolio Root Cause for Pipeline Incidents Caused by Excavation Damage 2010 - Present Data Source: US DOT Pipeline and Hazardous Materials Safety Administration STATE: ALL INCIDENT TYPE: All Excavation practices not sufficient

PHMSA’s FY2015 IT Portfolio History of the Rule PHMSA’s FY2015 IT Portfolio Pipeline Inspection, Protection, Enforcement and Safety (PIPES) Act of 2006 Heavy focus on preventing excavation damage to pipelines New limited enforcement authority for PHMSA pertaining to excavators who damage pipelines in states with inadequate damage prevention enforcement programs NPRM published Q2 2012 Final rule published Q3 2015 Rule effective January 1, 2016 INTENT: ALL STATES ESTABLISH ADEQUATE ENFORCEMENT PROGRAMS

PHMSA’s FY2015 IT Portfolio Part 196—Protection of Underground Pipelines from Excavation Activity PHMSA’s FY2015 IT Portfolio Subpart A – General Subpart B – Damage Prevention Requirements 49 CFR 196.103 Use one-call before excavating, wait for pipelines to be located/marked, respect the marks, take all practicable steps to prevent damage, and make additional use of one-call if necessary 49 CFR 196.107 Report any pipeline damage to pipeline operator 49 CFR 196.109 Promptly notify 911 if damage causes release of any 192 or 195 defined gas or hazardous liquid There are no exemptions in the new regulation for calling 811 prior to excavation. PHMSA understands many states have one-call law exemptions and will be considerate of those exemptions when undertaking Federal enforcement action.

PHMSA’s FY2015 IT Portfolio Part 196—Protection of Underground Pipelines from Excavation Activity 49 CFR 196.111 PHMSA and States have authority to enforce against pipeline operators who do not perform timely and accurate locate and mark Subpart C – Administrative Enforcement Process 49 CFR 196.201 – 211 Use existing administrative adjudication process Assess administrative maximum civil penalties of $205,638 per violation per day, $2,056,380 for series of violations Use other civil and criminal penalties Does the state have enforcement authority including civil penalties? Is there a designated enforcement body? Is the state using its authority and making enforcement records available to the public? Does the state have a reliable means of learning about damages? Does the state have damage investigation practices that are adequate to determine the at-fault party when damage occurs? At a minimum, does state law require: Excavators must call 811 before digging Excavators must “respect the marks” If damage to a pipeline occurs… Excavator must report damage to operator at earliest practical moment If release occurs, excavator must call 911 Are exemptions from the DP law limited? Written justification of exemptions is required.

PHMSA’s FY2015 IT Portfolio State Evaluations PHMSA’s FY2015 IT Portfolio Enforcement programs will be evaluated on an annual basis (per rule) States deemed adequate: Evaluation done by PHMSA State Programs (remotely) States deemed inadequate: Evaluations done by PHMSA Outreach and Engagement – remotely or in-person, based on State’s preference States have five years to meet minimum adequacy criteria or face potential base grant funding reduction of up to 4%

PHMSA’s FY2015 IT Portfolio Enforcement Reports submitted to PHMSA via web; PHMSA staff also monitor NRC reports, media, other sources Screening (Inadequate state? State enforcement authority available to investigate/enforce?, etc.) If appropriate, initial investigation by PHMSA Staff. Review team considers investigation reports, refers to leadership if appropriate Final determination to enforce is made by leadership

PHMSA’s FY2015 IT Portfolio

PHMSA’s FY2015 IT Portfolio Take-aways to date… PHMSA’s FY2015 IT Portfolio Checklist was slightly modified for clarification, based on state and evaluator feedback Many states working to become adequate through legislation, programmatic changes. Results-driven evaluation: Encouraging states to use data to understand their enforcement programs No enforcement cases so far

PHMSA’s FY2015 IT Portfolio PHMSA Damage Prevention – How to find more information/data Web site: PHMSA Stakeholder Communications – Safety Programs – Damage Prevention

Key Initiatives What is PERI? Excavator Training Public-private partnership among emergency response organizations and pipeline operators to improve emergency response. Advance the ability emergency responders to manage pipeline emergencies through improved training, cooperation and communication with pipeline operators Excavator Training Joint initiative to develop excavator training

Contact Our Damage Prevention Team: For more information: http://phmsa.dot.gov/pipeline/safety-awareness-and-outreach/excavator-enforcement/ Contact Our Damage Prevention Team: Our team of damage prevention professionals, Sam Hall, Annmarie Robertson, and Steve Fischer are available to answer questions pertaining to this final rule, state one call laws, and damage prevention. They may be reached at excavation.enforcement@dot.gov.

Thank You James Prothro James.Prothro@dot.gov 713-272-2832