1. Railroad Industry Hazmat Response and Coordination

2. Railroads Help Keep Coal- Based Electricity SLIDE 1 ASSOCIATION OF AMERICAN RAILROADS Freight Railroads in North America

3. Still a Very Small Portion of Railroad Traffic ASSOCIATION OF AMERICAN RAILROADS SLIDE 2 Transportation of hazardous materials/ dangerous goods is handled with a 99.998% success rate, without incident ASSOCIATION OF AMERICAN RAILROADS SLIDE 2

4. ASSOCIATION OF AMERICAN RAILROADS SLIDE 3 Railroad Spending on Infrastructure and Equipment* ($ billions) Record Investments in Recent Years Despite the Economy *Capital spending + maintenance expenses. e – estimate Data are for Class I railroads. Source: AAR

5. ASSOCIATION OF AMERICAN RAILROADS SLIDE 4 Domestic Energy Renaissance Means Huge Benefits for U.S.  Reduced reliance on oil from countries that are not secure and whose interests do not necessarily correspond to our own.  Thousands of new and better jobs and economic development opportunities all over the country.  Higher tax revenue, lower trade deficit.

6. Why Move Crude by Rail?  Geographical flexibility  Responsiveness  Efficiency  Underlying infrastructure  Isolation of commodity ASSOCIATION OF AMERICAN RAILROADS SLIDE 5

7. Rail Safety  Prepare/ Prevent  Protect/ Mitigate  Respond  Recover ASSOCIATION OF AMERICAN RAILROADS SLIDE 6

8. ASSOCIATION OF AMERICAN RAILROADS SLIDE 7 Prepare/ Prevent  Reinvestments  Technological advancements  Routing model  Inspections  Speed restrictions  Train braking  Training  Commodity flow data

9. ASSOCIATION OF AMERICAN RAILROADS SLIDE 8 Protect/ Mitigate Focus on making tank cars used for crude oil safer:  March 2011: Rail industry asks PHMSA to adopt tougher requirements for new tank cars.  July 2011: AAR Tank Car Committee adopts proposal to PHMSA as basis for new industry standards (CPC- 1232) for tank cars ordered after October 1, 2011.  Nov. 2013: Rail industry calls on PHMSA to adopt standards more stringent than CPC-1232, including retrofitting existing tank cars or phasing out if not modified.  July 23, 2014: PHMSA issues NPRM on tank car standards and other operational issues.

10. Railroad Industry Voluntary Actions Community Relations Addressing location specific concerns Increased Inspections Additional rail inspections on main line routes Lower Speeds 40 MPH through HTUAs Use of Rail Traffic Routing Technology Using Risk Corridor Risk Management System (RCRMS) to determine safest and most secure routes ASSOCIATION OF AMERICAN RAILROADS SLIDE 9 ASSOCIATION OF AMERICAN RAILROADS SLIDE 9

11. ASSOCIATION OF AMERICAN RAILROADS SLIDE 10 High Capacity Pressure Relief Valves Top Fittings Protection Steel Tank Head ShieldsBottom Outlet HandlesJacket and Thermal Protection Tank Car Standards ASSOCIATION OF AMERICAN RAILROADS SLIDE 10

12. ASSOCIATION OF AMERICAN RAILROADS SLIDE 11 Industry Coordination with USDOT DOT Safety Advisory – Aug 2013 Extensive actions taken by industry following Lac Mégantic Industry Voluntary Actions – Feb 2014 Secretary Foxx-CEOs Call to Action DOT Emergency Order – May 2014 Notification to State Emergency Response Commissions Safety Advisory on DOT 111 NPRM – July 2014 Tank car standards Comments due September 30 th, 2014 ANPRM – July 2014 Emergency response planning ASSOCIATION OF AMERICAN RAILROADS

13. …. Continued Enhanced Braking Use of two-way telemetry devices or distributed power to improve emergency braking capabilities Trackside Safety Technology Installing additional wayside detectors for wheel bearing defects Emergency Response Planning Inventory of emergency response resources to aid in response planning with agencies Emergency Responder Training Industry committed over $5 million in training grants for first responders to attend crude-by-rail training in Pueblo, CO in 2014 ASSOCIATION OF AMERICAN RAILROADS SLIDE 12 ASSOCIATION OF AMERICAN RAILROADS SLIDE 12

14. Emergency Response Training ASSOCIATION OF AMERICAN RAILROADS SLIDE 13

15. Response: Training First Responders at National Facility in Pueblo, CO Security and Emergency Response Training Center (SERTC) at Pueblo, Colorado, national railroad research/training facility (TTCI) In-depth hazmat emergency response training to more than 50,000 emergency responders and railroad and chemical industry employees $5 million additional industry commitment to train first responders on crude oil routes at SERTC Actual total expense from the industry for this training is over $7 million 1,500 first responders will be trained with this funding 14 ASSOCIATION OF AMERICAN RAILROADS SLIDE 14

16. Response: First Responder Local Training TRANSCAER (Transportation Community Awareness and Emergency Response) Classroom and hands-on training Emergency planning assistance Support for community drills and exercises Technical information, reference, and training materials National conferences and workshops Results Railroads train an average of 20,000 local emergency responders each year in communities across network 15 ASSOCIATION OF AMERICAN RAILROADS SLIDE 15

17. Response Safety Employees Community Coordination of Responders Real time information Public Responders (IC) Regulatory Agencies Specialized Contractors Response Duties Analyze the problem Plan the response Implement plan Evaluate & adjust ASSOCIATION OF AMERICAN RAILROADS SLIDE 16

18. Response Resources Hazardous materials/ dangerous goods officers Industrial fire-fighting foam trailers Chlorine kits Midland kits Air monitoring assets Specialized contractors Other specialized equipment 17 ASSOCIATION OF AMERICAN RAILROADS SLIDE 17

19. Recovery Product/Container Fate Product Removal/Transfer Container decontamination/cleaning Incident Termination Debriefing Post Incident Analysis (PIA) Critique Required Reporting Site Remediation/Restoration Agency coordination ASSOCIATION OF AMERICAN RAILROADS SLIDE 18

20. Freight by Rail ASSOCIATION OF AMERICAN RAILROADS SLIDE 19