Repairing Our Cities’ Aging Pipelines Pipeline Safety Trust Conference 2015 Rob McCulloch – Director, Infrastructure Programs

A coalition of 10 of the country’s largest labor unions and 5 of America’s most influential environmental groups BlueGreen Alliance unites nearly 16M members and supporters working for a clean energy economy. AFL-CIO representing 11M+ American workers AFL-CIO

Repairing our Cities Aging Pipelines – RECAP Frontline gas workers - unions involved in pipeline installation, operations, maintenance, fabrication: United Association/UA – distribution, upstream pipefitters & welders Utility Workers Union of America – distribution, storage, transmission, clerical Steelworkers (USW) – distribution, supply chain AFL-CIO – supply chain Environment advocates - climate, pollution goals “A safer gas system wastes less gas and creates less pollution – efforts to reduce pollution and waste result in a safer system.”

RECAP Goals Create safer workplaces and communities by supporting workforce efforts and improve industrial practices Modernize a critical part of energy infrastructure w/ focus on aging, leak-prone pipes and equipment (i.e. 110K+ miles of bare steel, cast iron…aging plastic next challenge) Recapture lost natural gas which consumers and businesses pay for – ‘keep gas in the system’ Reduce emissions to lower climate impact – pound for pound, uncombusted methane at least 25x as powerful as carbon dioxide

PHMSA TAG Programs Minnesota Industry best practices (LDAR), identify workforce challenges, opportunities Indiana Plastic pipe issues, leaks due to material/welds/corrosion higher, workforce, Operator Qualification challenges California Educate, support implementation of new state policy to speed distribution repairs/upgrades

Minnesota TAG Convening frontline gas workers (MN Pipe Trades), unions (USW), community/environmental groups, utilities, MN safety/pipeline agencies; final at MN AFL-CIO convention Best practices regarding LDAR (leak detection & replacement) undertaken by Twin Cities utilities, potentially serving as a model for other markets 5.7x increase in leaks detected, 90% fewer unfound leaks, 26% fewer customer calls Better leak detection = leaks found earlier when smaller and less hazardous Workforce development challenges, opportunities for training and retention of gas utility workers. Focus on pipe trades as viable career paths at all levels of education 43 miles of cast iron replacement under current programs = 500 MN jobs created

Indiana TAG Convened Vectren, NiSource frontline gas workers (USW Locals 12775, 12213; IBEW Local 1373), UA, community/enviro groups, workforce development – final at Inter Union Gas Conference (nat’l gas workers) Plastic pipe – older generation plastic (60’s and 70’s) brittle, cracking, leaking; will need replacement in years to come but not as well tracked, mapped, inventoried Workforce – OQs longer but not as good; not testing practical skills. Unions lead on safety, training – how to play a larger role? Hiring/aging – generation gap between new workers and retiring workers, need to attract next generation of pipe workers – ‘the new economy is the old economy’

Source: PHMSA

California Methane Leakage Abatement Workforce Act – Law directs California PUC to improve LDAR, pipe replacement, classifications/response Pro - 1 st ever nat gas pipe policy that factors climate change impact Con – Undefined timeline for implementation; regional disparities Illinois Natural Gas Safety and Reliability Act - TIRF approved in 2013 for Chicago & statewide replacement of more than 1K miles of cast iron, uncoated steel distribution pipe, smart meters outside buildings Pro - Create 500 direct jobs incl. vets hiring program (1K+ total jobs created) Con – Costs exceeding estimates > impact to consumers New Jersey EnergyStrong /filings - $2B over 5 years to replace 400 miles of cast iron, 11,000 unprotected services, move metering stations above flood zones in response to Hurricane Sandy; potential to create 2K jobs for state economy Additional RECAP Distribution Efforts

PHMSA – successful rules/policies hinge on continuing/expanding hiring staff, PHMSA reauthorization Stronger Operator Qualification (OQ) standards to ensure testing is consistent Plastic pipe in gas services – better tracking and design factors for newer PE, PA- 11, PA-12 plastic pipe Improved /faster accident notification Expanding the use of excess flow valves in applications beyond single residences Safety of gas transmission pipelines/improved integrity management Environmental Protection Agency, Department of Energy EPA – current draft federal rule (early 2016?) for upstream gas leaks; oppty for distribution beyond Natural Gas Star (voluntary program for gas utilities); Control Technique Guidelines (regional air quality standards) DOE – funding for natural gas distribution modernization pending under Quadrennial Energy Review Priorities at the federal level

Frontline gas worker voices key in guiding state, federal policy – well suited to convey impact of energy and utility policy on workplaces, industrial practices, and communities to public utility commissioners, policymakers Share best practices effectively – identify issues faced in different markets, make practical solutions more accessible to all Invest in infrastructure and workers for safe, efficient energy – ‘insource’ the best, most advanced materials and equipment Hold industry accountable to communities, workers, future generations Workers are a key resource in defining and resolving issues in the natural gas pipeline system Looking Ahead Questions, comments >