PHMSA2021_Report_Update100616_ebook

PHMSA’S ENVIRONMENT The Pipeline and Hazardous Materials Safety Administration (PHMSA) operates in a dynamic and challenging environment. Changes in technology, manufacturing, and energy production have impacted transportation safety. Recent incidents and increased public awareness of, and sensitivity to safety hazards and environmental consequences. PHMSA anticipates that the scope and complexity of our safety mission will continue to grow, requiring the agency to fundamentally rethink how it uses data, information, and technology to achieve our safety goals.01

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VISION FOR In this context, the Agency has updated its strategic framework and plan. The updated framework reflects PHMSA's efforts to be more forward-looking, proactive, innovative, and data-driven, and is based on the core principles of Safety, Innovation, and Trust. As part of this work, we have developed bold new vision and mission statements that better reflect the Agency's focus on innovation, and demonstrate how essential PHMSA’s safety mission is to the daily lives of Americans — allowing for the safe transportation of energy that heats our homes and powers our mobile devices.03

VISION The Most Innovative Transportation Safety Organization in the World MISSIONTo Protect People and the Environmentby Advancing the Safe Transportation ofEnergy and other Hazardous Materialsthat are Essential to our Daily Lives 04

CORE VALUES EFFECTIVE RESPECT COMMUNICATION PHMSA’s core values are the foundation for how we interact with each other and the public to fulfill our mission. TRUST HONESTY VA L U I N G INTEGRITY PEOPLE05

GUIDING PRINCIPLES the new organizationalBased on the Organizational Assessment structure is lean andfindings, PHMSA’s leadership team identified efficient, minimizingguiding principles to inform PHMSA's duplicative roles andorganizational alignment. The organizationalchanges reflected in our new structure will structuresenable these principles: the structure supports the structure consistency of mission drives consistency execution and aligns to and continuity strategic priorities roles and the span of roles are defined toresponsibilities management: attract and retain highly employee control are clearly is appropriate skilled professionals defined 06

G O A L S PHMSA established a set of long-term strategic goals, which form the framework for Promote continuous improvement in safety performance, including establishment of a framework and approach for implementing Safety Management Systems (SMS). Invest in safety innovation to become more proactive and forward-looking by building PHMSA's innovation and analytics capabilities and through partnerships.07

Build stakeholder and public trustthrough proactive and targetedoutreach, engagement, responsiveness,and transparency. Cultivate organizational excellence and safety culture by investing in employees and key capabilities. Pursue operational excellence through consistent and efficient business processes and by transforming how PHMSA leverages data to drive decision-making. 08

GOALS AND OBJECTIVES Safety Promote continuous improvement in the safety performance of the regulated communities • Establish PHMSA’s framework and approach for Safety Management Systems (SMS) within PHMSA’s regulated entities. • Improve PHMSA-wide inspections planning frameworks and processes • Complete all commitments included in the Agency Safety Action Plan (ASAP) • Develop, execute, and communicate a plan to complete key rulemakings to meet legislative mandates • Evaluate and make improvements to PHMSA’s Accident Investigation processes, policies, and organizational alignment Innovation Invest in safety innovation in the pipeline and hazardous materials transportation sectors • Stand up the Office of Planning & Analytics Trust Build greater public and stakeholder trust • Define PHMSA-wide operating model for external stakeholder engagement09

Organizational Cultivate organizational excellence and a safety culture for our Excellence people Operational • Implement organizational changes in accordance with Excellence PHMSA2021 • Develop and implement PHMSA-wide business plan to include performance monitoring • Transform PHMSA’s hiring, recruiting, and on-boarding processes to be more effective and efficient • Establish a workforce training and development plan for all levels of the organization • Develop a framework for internal PHMSA adoption of SMS, including training, communication, and safety culture • Communicate THRIVE values with a focus on driving a culture where employees can raise concerns freely Pursue operational excellence in our data, processes, & systems • Develop PHMSA’s data transformation strategy and implementation plan • Build best-in-class rulemaking processes and capabilities within PHMSA • Define clear framework / standards for PHMSA’s federal budgeting process 10

INITIATIVES In support of the agency has initiated an Organizational Assessment, a Data PLAN Assessment, the Agency Safety Action Plan (ASAP), ACTION and a Safety Management Systems Assessment. SAFETY AGENCY ORGANIZATIONAL ASSESSMENT11 DATA ASSESSM ENT SAFETY M ANAGEM ENT SYSTEM

Organizational Assessment: Data Assessment:PHMSA assessed the agency’s operating model, With assistance from Oak Ridge Nationalorganizational structure, capabilities, processes, Laboratory (ORNL) PHMSA analyzed its currentand culture. data strategies and capabilities, and developed aAgency Safety Action Plan (ASAP): data vision for the agency's data collection, usePHMSA developed and began implementing the and analysis moving forward.Agency Safety Action Plan (ASAP) to anticipate Safety Management System (SMS):safety challenges, invest in innovative solutions, A Safety Management System (SMS) is anand take action to address emerging safety integrated, systems approach to managing safetyconcerns. ASAP is a proactive look at PHMSA’s hazards and effecting continuous improvementsafety practices that leverages our internal in safety. In addition to urging adoption andexpertise to improve safety. refinement of safety management systems in the hazardous materials transportation sectors, PHMSA is developing a framework for safety management systems as part of our operating systems. Many transportation industries have benefited from implementing SMS to effectively manage safety risks. 12

ORGANIZATIONAL CHANGES Based on the organizational assessment findings and recommendations and the guiding principles, PHMSA is realigning our organization to reflect our strategic goals and objectives and moving forward a number of strategic investments. Establish an Executive Director Establish an Office of Planning Establish an independent Chief to drive consistent execution & Analytics to improve PHMSA’s Financial Officer (CFO) and Associate and operations across PHMSA’s ability to develop a regulatory agenda Administrator for Administration programs. The Executive Director, a that is forward-looking, innovative, (AAA) to strengthen financial and career Senior Executive will provide and data-driven. This office, led by a human resources management and consistency and continuity at the career Senior Executive, will enhance decision-making. The separation of senior executive level, connecting market intelligence and data and the CFO from other administrative the Agency’s strategic and policy economic analysis, and strengthen functions aligns PHMSA with other direction as set by the Administrator strategic planning and performance. DOT modes and enables PHMSA to with the day-to-day operations of It will facilitate information sharing strengthen financial management the agency. The Executive Director and drive consistency in how the and oversight, and improve will also serve as the Agency’s Chief agency collects and uses data across performance outcomes. Safety Officer. program offices to measure and improve safety performance.13

PHMSA ORGANIZATIONAL STRUCTUREPolitical Administrator 4 Key ChangesAppointment DeputyCivil • Clearly define roles & responsibilities for ExecutivesServant Administrator • Establish career Executive DirectorApproved/Enacted • Establish cross-cutting Office of Planning & AnalyticsChanges • Create independent CFO and AAA positions Office of Office of Office ofChief Counsel Governmental, Civil Rights International, & Public Affairs Strengthen key functions that are essential to ourEnhance planning Executive Director Ensure consistency & project & Chief Safety Officer and continuity in operations operationsmanagement, data, and rulemaking capabilities Office of Office of Office of Office of Office of thePlanning & Pipeline Hazmat Administration Chief FinancialAnalytics Safety Safety Officer 14

PHMSA'S OFFICE OF PLANNING AND ANALYTICS Office of Planning & Analytics Planning & Program Data Strategy EconIonmduicstRreys&earch Management & Analytics Industry & market Strategic Planning Data governance research • Manage PHMSA-wide strategic • Oversee PHMSA’s data • Conduct industry research to planning process governance council understand context and trends that may impact policies and • Track and report on performance • Team with IT and programs programs metrics Data analytics Regulatory analysis Regulatory/oversight management • Advise/support on design, build, • Establish methodology and and implementation of analytical conduct RIAs and other analyses • Support Reg Lead and SteerCo projects for rulemaking to manage PHMSA-wide regulatory development process Data visualization (e.g., agency-wide tracking and prioritization) • Develop new ways to visualize data and communicate insights15

STRATEGIC INVESTMENTSThese strategic investments are critical for PHMSA’s efforts to continually improve,and become a predictive safety agency that is informed by data and risk analysis.They enable PHMSA to invest in the capabilities necessary to improve safety, investin innovation and build trust.Use Data to Improve Safety: Expand Existing Programs, including Enterprise Risk Management:Investments in PHMSA's data and Safe Transport of Energy Products: Investments in the Hazardousanalytic capabilities will improve PHMSA's inspectors and technical Materials Safety program tothe agency's ability to analyze experts address emerging trends better enhance risk and dataand identify industry and market and challenges in the transportation management capabilities willtrends, conduct rigorous economic of hazardous materials. A crucial inform hazardous materialsanalysis, and develop and improve component of PHMSA’s ability to inspection and enforcementdata collection, risk modeling, and achieve its safety mission is to activities. Similar investmentsdata visualization. Strengthening engage hazmat shippers in training in the Pipeline Safety programthese skill sets will allow PHMSA to and other outreach to increase will allow PHMSA to establish andevelop stronger, regulations, move compliance, improve oversight Information Sharing System totowards more data-driven, risk- activities, and engage shippers link Federal and state safety data.based inspection and enforcement around the world who transportapproaches, and better communicate hazardous materials into the U.S.with stakeholders. 16

PATH FORWARD These organizational changes and strategic investments lay the foundation for PHMSA to become a more forward-looking, proactive, innovative, and data-driven organization. These changes will advance transportation safety and PHMSA's efforts to become a next-generation safety agency.17

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Pipeline & Hazardous MaterialsSafety Administration