U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 2010 NARUC Annual Conference Atlanta, Georgia November 15, 2010

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Discussion Topics Introduction – Its Been a Rough Year Partnership – Over 40 Years Responsibility and Accountability Challenges Ahead “Asks” for Each Commissioner

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Recent High Profile Accidents Deepwater Horizon –Not Involved – Honest – Don’t Draw Parallels Marshal, Michigan –Major Crude Oil Spill Dramatically Impacted Several Communities in Michigan Romeoville, Illinois –Followed Closely on the Heels of Marshal San Bruno, California –Major tragedy – Unimaginable Proportions What Do These Have in Common? –Perhaps Very Little – NTSB Will Determine

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Partnership U.S. Congress charges the Secretary of US DOT Congress Allows the Secretary to Partner with the States US DOT (PHMSA) sets National Standards States can exceed these where appropriate Secretary provides grants to the States, but much more –Training, true partnership in regulations, tech., etc Bottom Line: Good value for the U.S. / Good sense

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Responsibility Virtually ALL Commissioners have responsibility, and from it flows accountability The past 2 reauthorizations have focused on OPS; this one may focus as much on the States performance Transparency is pushing the accountability agenda –See APPENDIX for examples from OPS’ website

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Challenges Ahead Implementing all the regulatory changes emanating from the last reauthorization – e.g., DIMP, CRM, DP Infrastructure integrity – its about more than just age Excavation Damage Prevention – we NEED your help! Not to do our best risks losing control of OUR agenda

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration “Asks True “Consumer Advocacy” involves more than minimizing rates – and safety needs to be accounted Assess YOUR state’s risks – see, for example, data OPS provides (APPENDIX) Support YOUR Pipeline Safety Staff –We are trying to help with funding, but they need your leadership and financial and staffing support Use ALL of the tools available to you to change performance – can’t shy away from enforcement where it is warranted

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Regulatory Update Major Rulemaking Efforts & Status –Distribution Integrity Management Program (8/2011) –Control Room Management (Fall 2011) NPRM Proposal to Accelerate Implementation –ANPRM Questions on Hazardous Liquid Requirements –Upcoming Regulatory Actions Low Stress HL’s – Phase 2: Final Rule in 2010 Excavation Damage Enforcement: NPRM in 2010 ANPRM on Natural Gas Requirements Minor Rulemaking & Miscellaneous –“One Rule” & Advisories – Emergency Plans, Federal Response Plans, and Data Reporting (soon)

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Concluding Remarks / Q & A For more information on PHMSAFor more information on PHMSA – For more information on Pipeline SafetyFor more information on Pipeline Safety – Thanks for your time & enjoy the week(end)!Thanks for your time & enjoy the week(end)!

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Administration’s Reauthorization Proposal Key Themes –More Inspection –Stronger Enforcement –Fewer Statutory Exemptions –Special Services - Pay as You Go Special Permits Major Construction Projects –Publicly Conducted Studies Expansion of HCA’s or Alternatives

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Policy Initiatives and Priorities Data Driven, Risk Informed & Transparent –Operator Pilot & Operator Pages –Long Term Plan New Construction Oversight Special Permits – Performance Matters Public Awareness Oversight Accelerating Enforcement Completion and Launch of PIPA Best Practices Supporting State Damage Prevention Improvements Gaps, Overlaps, and Alignment Study

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Non-Regulatory Initiatives Update Damage prevention –Common Ground Alliance & Regional Partners –State Damage Prevention Assistance Program –State Damage Prevention Characterization Tools –Technology Improvements to One-Call Process –811 Promotion Campaign Public Communications and Awareness Stakeholder Communications, mapping & ET ROW Encroachment – PIPA Completion/Launch Emergency responders – training and partners Research and development

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration APPENDIX State Information Presented on the Stakeholder Communications Website State-specific information can be accessed from the drop down box found in the left-hand menu on each page of the Stakeholder Communications website.

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration State pages also accessed via a link on the main I&M Page

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration State Pages Generically describe pipeline infrastructure in state to possibly include transmission and distribution systems. Note that pipelines are safest method for transporting but can present significant risks to the public and the environment. Encourage users to learn about pipelines and steps to help ensure pipeline safety in community. Include links to more state-specific information. State pipeline profile: incident and mileage data State pipeline profile: enforcement data Who regulates pipelines in state? The role of the states in pipeline safety (NAPSR link) State web site (if available)

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration State Significant Incidents and Mileage Overview Pages Provide details and incident history for the pipeline systems in each state. Limited to significant incidents over specified period. Provide links to reports showing incident causes. Data sources are the PHMSA Flagged Incident Files, and: Hazardous Liquid - National Pipeline Mapping System Gas Transmission - National Pipeline Mapping System Gas Gathering - Calendar Year 2009 Annual Reports Gas Distribution - Calendar Year 2009 Annual Reports Current mileages are for 2009 and are noted as approximate as some data sources may be incomplete for the year. Link to State Significant Incident Detail Listing for more information about each significant incident in state.State Significant Incident Detail Listing Link to State Pipeline Safety Regulatory Fact SheetState Pipeline Safety Regulatory Fact Sheet

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration State Enforcement Program Pages Note operator compliance with state and federal pipeline safety regulations is monitored through comprehensive I&E program comprised of: field inspections of O&M and construction activities; programmatic inspections of operator procedures, processes, and records; incident investigations and corrective actions; and direct dialogue with operator management. Note state agencies work in partnership with PHMSA. Provide summary tables of probable violations discovered and compliance actions taken by state agencies. Note data are reported annually as part of the state's annual pipeline safety program certification or agreement to PHMSA.pipeline safety program certification or agreement

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration State Regulatory Pages (Fact Sheets) Note pipeline safety standards established under 49 CFR Parts CFR Parts Note PHMSA has overall regulatory responsibility for hazardous liquid and gas pipelines under its jurisdiction. Identify who inspects and enforces in state. E.g., “OPS inspects, regulates and enforces interstate gas and hazardous liquid pipeline safety requirements in Indiana.” “Through certification by OPS, the state of Indiana regulates, inspects, and enforces intrastate gas pipeline safety requirements.” “By signed agreement with OPS, Indiana also inspects and regulates intrastate Hazardous Liquid pipeline safety requirements.” Identify who is responsible for I&E in state. E.g., “This work is performed by the Pipeline Safety Division of the Indiana Utility Regulatory Commission.”

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration State Regulatory Pages (Fact Sheets) Link to where state regulations can be found. E.g., Link to summary of state enforcement actions. Provide contact information pertaining to pipelines in state. E.g., Indiana Utility Regulatory Commission 101 West Washington Street, Suite 1500 E Indianapolis, IN Acting Director, Pipeline Safety Division: William Boyd Office: ; Fax: Provides contact information for appropriate PHMSA Region and HQ offices.

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Role of States in Pipeline Safety Links to NAPSR website

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Link to State Website (if available) For example:

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Other Stakeholder Communications Website Pages Links to pages: State Regulatory Fact Sheets (previously discussed) NAPSR Grants to States for One-Call and Damage Prevention

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Grants to States for One-Call and Damage Prevention

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Grants to States for One-Call and Damage Prevention

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Grants to States for One-Call and Damage Prevention