1. Pipeline Safety Trust (PST) Conference New Orleans, Louisiana November 19 – 20, 2015 Alan Rathbun Pipeline Safety Director WA Utilities & Transportation Commission 1

2. NAPSR – National Association of Pipeline Safety Representatives. Programs certified by PHMSA represent 48 contiguous states plus Washington D.C. and Puerto Rico. PHMSA – Pipeline and Hazardous Materials Administration. Part of the U.S. Department of Transportation. 2

3. What is “more state authority?” State pipeline safety programs are certified to monitor and enforce applicable federal (CFR) and state regulations on intrastate pipeline operators. All state programs are audited annually by PHMSA. Many states have state safety regulations more stringent than federal regulations…as long as they are not “in conflict.” 3

4. G – Interstate Agent for gas pipelines HL – Interstate Agent for Hazardous Liquid pipelines Arizona Corporation Commission – (G) (HL) Connecticut Department of Energy & Environmental Protection (G) Iowa Utilities Board (G) Michigan Public Service Commission (G) Minnesota Department of Public Safety – (G) (HL) New York Department of Public Service – (G) (HL) Public Utilities Commission of Ohio (G) Virginia State Corporation Commission – (HL) WA Utilities & Transportation Commission – (G) (HL) More authority generally is thought to mean certification as an “Interstate Agent” over interstate pipelines. 4

5. PHMSA has regulatory authority over interstate pipelines. Agreement/Contract between DOT/PHMSA and state for the state to act as an agent of PHMSA. State conducts inspections and investigations of interstate operators…issues findings and recommendations to PHMSA. State does not have authority to enforce federal regulations. State safety regulations do not apply to interstate operators. What is interstate authority? 5

6. Partnership almost always superior to individuals acting alone. Every NAPSR program views PHMSA as a partner in our intrastate safety program. As an Interstate Agent, the program works as a partner with the PHMSA Region to enhance pipeline safety. Because of proximity, states are more familiar with: Facilities and Systems Operations and People Geologic and Geographic Risks Local Governments & First Responders Continue… Why can interstate authority lead to improved safety? 6

7. Because of proximity, states are able to react more quickly to incidents and emergencies. Because of proximity, states are more accessible as a resource for first responders and local governments. State agencies because of their size are more nimble and can more easily adapt to change (shift culture) than the federal government. Continued… Why can interstate authority lead to improved safety? 7

8. NAPSR does not advocate Interstate Agency status for all programs. Requires desire and capacity. No Interstate Agent sacrifices our intrastate responsibility in order to take on this agent status. 8

9. Theme of 2012 PST Conference. Trust between: Operators and Regulators Regulators and Public Public and Operators Public trust is often greatest with those governments closest to them Pipeline Safety – Trust but Verify 9

10. Would Increased State Authority Improve Safety? No metric that will conclusively answer that question. From a safety perspective, it is impossible to measure what accidents or incidents did not occur because of the regulator’s diligence. If a state has the desire and capacity, why not? Whether pipeline inspections are scheduled based on risk based criteria, or resource based criteria…why would not additional local expert resources be a benefit? 10

11. Is there a conflict here? Not certain… PHMSA and NAPSR share a common mission. We are partners that depend on each other. We both strive to build and enhance a Safety Management System culture within the pipeline industry. NAPSR welcomes the addition of PHMSA field resources. Skilled local resources are necessary for effective regulation. 11

12. Contact Information: Alan Rathbun 360.664.1219Arathbun@utc.wa.gov 12

13. 13