hamilton awea safety conference presentation

©2013 Navigant Consulting, Inc.

E N E R G Y

DISPUT E S & INVESTI GATI O N S • ECONOMI C S • F INAN CI A L ADVISO RY • MANAGEM E N T CONSULT I NG

Public Safety Programs for Power Plants: What, Why, and How

Presented by Bruce Hamilton | Navigant

Session Title: Risk Assessment for Public Safety

Thursday, January 17th , 10:00-11:30 am

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Introduction to Navigant

Navigant is a global consulting firm providing management consulting, economics, financial advisory and disputes & investigations support.

Navigant Consulting (2,700 Employees)

• Four business areas: management consulting, economics, financial advisory, and disputes & investigations

• Publicly traded since 1996 (NYSE: NCI)

• 2011 revenues - $785 million

• 35 offices in North America, Europe, and Asia

Renewable Energy (60 Employees)

Energy Practice (300 Employees)

• Power Systems, Markets and Pricing

• Business Planning and Performance Improvement

• Energy Efficiency

• Emerging Technologies and Renewable Energy

Professionals

• 60 staff, many with over 25 years experience in RE

• Exceptional depth and breadth of market & technology expertise

• Advanced degrees in engineering, law, and business

Global Practice

• Over 200 RE engagements world wide in last 3 yrs

• Public and private sector clients in 10+ countries

• 25% of clients are non-U.S.

Navigant Consulting named "Best Advisory – Renewable Energy" in the 9th and 10th Annual Environmental Finance

and Carbon Finance Market Surveys

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Key questions that will be addressed

Purpose

What is a Public Safety Program?

Why should power generation companies have a Public Safety Program?

How do you develop a Public Safety Program?

What are typical results for wind plants?

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Public Safety Programs » Table of Contents

Table of Contents

1 » Reasons for a Public Safety Program

2 » Implementing a Public Safety Program

3 » Typical Results for Wind Plants

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Table of Contents

» 1 » Reasons for a Public Safety Program



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Public Safety Program

Program Goal

Program Objectives

Identify, assess, and prioritize potential public hazards at the company’s facilities

Develop mitigating plans to minimize/eliminate the public exposure to these hazards

Raise awareness with and communicate plans to all employees

Reasons for a Public Safety Program » Objectives

Mitigate the risk of events involving company assets and operations that could endanger the safety of the general public.

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Recent Public Safety Hazard – TVA Ash Pond Spill

On December 22, 2008, an ash dike ruptured at an 84-acre ash disposal area at the Tennessee Valley Authority's Kingston Fossil Plant in Tennessee. 1.1 billion gallons of coal fly ash slurry was released into the surrounding land and waterways, covering 300 acres with up to six feet of sludge, causing damage to 26 homes, disrupting electrical power, rupturing a natural gas line in a neighborhood adjacent to the plant, and covering a railway and road in the area.

The root cause was attributed to the ash pond wall geometry, recent heavy rains, and freezing temperatures, but a post-failure report found that TVA was aware of “red flags” signaling the need for safety modifications to TVA ash ponds since 1985. In addition, TVA’s enterprise risk management program did not adequately address known risks identified as early as 1987.

TVA has spent $750 million of an expected $1.1 billion to $1.2 billion total cost for the cleanup. Ratepayers are footing that bill. Every month since October 2009 and for the next 13 years, an additional 69 cents is being tacked onto every TVA power bill.

Reasons for a Public Safety Program » Recent Public Safety Hazards

(click pictures to play videos)

http://www.youtube.com/watch?v=BK6zDtTp4-U&feature=player_detailpage





http://www.youtube.com/watch?feature=player_detailpage&v=Vf5AFyE6cw0

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Recent Public Safety Hazard – PG&E San Bruno Pipeline

On September 9, 2010, a 30-inch-diameter segment of a natural gas transmission pipeline, owned and operated by the Pacific Gas and Electric Company (PG&E), ruptured in a residential area in San Bruno, California. The released natural gas ignited, resulting in a fire that destroyed 38 homes and damaged 70. Eight people were killed, many were injured, and many more were evacuated from the area.

The cause of the accident was PG&E’s (1) inadequate quality assurance and quality control in 1956, which allowed the installation of a substandard and poorly welded pipe section, causing the pipeline to rupture during a pressure increase stemming from poorly planned electrical work; and (2) inadequate pipeline integrity management program, which failed to detect and repair or remove the defective pipe section.

PG&E shares fell 8% on the Friday after the explosion reducing the company's market capital by $1.57 billion. Over 100 plaintiffs, have sued PG&E, in over 70 separate lawsuits. PG&E expects to pay $1.7 billion in pipeline related costs, including over $200 million in fines, as a result.

(click pictures to play videos)

Reasons for a Public Safety Program » Recent Public Safety Hazards





http://www.youtube.com/watch?v=EZ6YbUrnxVM

http://www.youtube.com/watch?feature=player_detailpage&v=t_EINGpnReg

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Global Product Strategy Initiative

DuPont aims to meet its responsibilities under its company’s safety, health, and environment commitment (The DuPont Commitment), the American Chemistry Council’s Responsible Care® initiative and the International Council of Chemical Association’s (ICCA) voluntary initiative called the Global Product Strategy (GPS).

DuPont joined the GPS initiative when it was launched in 2006. The goal of the GPS is to ensure that society will continue to enjoy the value and benefits of chemistry, while industry and its partners continuously improve efforts to protect public safety, health, and the environment.

Commitment to produce Product Safety Summaries to provide a general overview of chemical substances.

Product Stewardship Assessments

DuPont is performing Product Stewardship Assessments to evaluate further the safety of the current uses of its chemicals.

As the first step in the assessment process, DuPont analyzed its chemical inventory against the following prioritization criteria: (1) Impact on the supply chain by volume; (2) Exposure potential to the users - including potential impacts on selected population; (3) Stakeholder feedback; and (4) Business Relevance.

DuPont is evaluating the high-priority chemicals using a screening level risk assessment approach. This approach uses hazard, use, and exposure information to determine the safety of these chemicals for current uses throughout the chain of commerce.

DuPont

Reasons for a Public Safety Program » Examples in Other Industries

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Advocating for strong security and manufacturing safety standards and practices.

Demonstrating our commitment through the global implementation of the Responsible Care Security Code.

Working closely with communities and local responders so that we can all successfully respond to every type of risk.

Participating in joint industry-community drills to test and constantly improve our communication and response capabilities.

Enlisting the expertise of security professionals and engineers who understand how our products are made to conduct rigorous, externally-recognized, risk-based assessments of the vulnerability of all Dow manufacturing facilities worldwide.

Expanding our comprehensive risk assessment programs to evaluate security for the transportation of raw materials and products.

Integrating cyber security and information protection into our overall security efforts.

Dow


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Direct mail to thousands of customers offering free safety materials (workplace posters, visor cards, DVDs, etc.) through fulfillment outreach programs.

Online safety resources, including e-SMART for elementary educators, students and their parents and another e-SMART site for third-party workers. Online training of local emergency responders.

Advertise safety information throughout communities and on social media sites.

Provide safety messages in the newsletter that is distributed with customer bills. Twice annually, provide a dedicated bill insert about gas pipeline safety that includes a scratch-and-sniff sample of mercaptan, the odorant added to natural gas to help people recognize the smell of a potential gas leak.

Active leadership role in industry organizations that focus on utility public safety awareness, including several national and state pipeline safety associations for public awareness.

Electricity safety demonstrations at several large events, community fairs and in classrooms.

Xcel Energy


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Community health impacts

Works to minimize the potential for community health impacts arising from BP projects and operations.

Conducted two health impact assessment courses in 2011 to train BP’s health professionals around the world in scoping and screening new projects to set the parameters for their health impact assessments.

Completed 34 health impact assessments in 2011.

Wind

Most of the common concerns about wind farms can be addressed through impact studies, careful design and community consultation.

Noise: use appropriate distances from nearby residences and comply with conditions recommended by the local authorities .

Shadow flicker: factor this effect into our plans for new wind generation facilities, using precise calculations to determine where any flickering shadow would fall and for how many hours during the year.

Interference with communications signals: conduct studies to determine whether any impacts on communication signals are anticipated. If so, put appropriate mitigation measures into place.

BP


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Table of Contents

»




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Case Study for a Major IPP with Coal, Gas, and Wind Assets: Public Safety Program Definition and Boundaries

Definition of Public Safety

Mitigating the risk of events involving company assets and operations that could endanger the safety of the general public.

Examples: explosion or equipment failure near site boundary, uncontrolled chemical release, transportation accident to/from site

Background

Public Safety is a Corporate Goal

While site personnel are generally aware of public safety issues, a comprehensive, structured process has not yet been fully established

Boundaries

Includes hazards that originate on a company site but surpass the site’s geographic boundaries to potentially contact the general public

Depending on the contract, can include hazards related to transportation of materials, equipment, fuel, and waste into or out of a company site

Includes hazards within a company site that could impact a visitor (non-company employee or contractor) or trespasser

Does not include hazards within company sites that impact employees or contractors (these are already covered by the company’s core safety program)

Implementing a Public Safety Program » Public Safety Overview

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Public Safety Program Deliverables

A comprehensive list of all public hazards, risk assessment and mitigation plans

Criteria for evaluating public exposure

Process to identify and manage future public hazards

Communication plans for all company employees

Implementing a Public Safety Program » Deliverables

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Public Safety Overview – Example Hazard Categories

Explosion / Equipment Failure

Hydrogen Trailer Fire

Wind Turbine Blade Failure

High Voltage Line Failure

Steam Pipe Rupture

Gas Pipe Failure

Uncontrolled Release

Fly Ash from on-site storage

Ammonia

Wastewater

Runoff

Fuel, Chemicals, etc. (e.g., mercury leak within plant, transported by shoes outside of plant)

Wind farm snow throw

Transportation To/From Plant (depending on contract)

Fly ash

Equipment

Implementing a Public Safety Program » Hazard Categories

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Public Safety Process – Major Steps

Roles/ Responsibilities

Industry examples

Team planning & break-out sessions

Dry run of site visits

Site hazard identification

Initial site prioritization

Site walk-down of high priority hazards

Post-visit research and finalization

Core team calibration of site identification & prioritization

Status presentation to Steering Team and CEO

Detailed description for highest priority public safety hazards

Mitigation alternatives

Scope, schedule, resource requirements

Steering Team

Managing Committee

Corporate Operating Committee

Project Kickoff Site Visits Fleet

Prioritization Risk Mitigation

Planning

Senior Management Presentations

Implementing a Public Safety Program » Public Safety Process

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Public Safety Team Organization Structure

Managing Committee

Steering Team

Project Manager

Support/SMEs (Communications)

(Construction Projects) (Procurement)

(Legal) (Corporate Public Safety)

Core Team

Coal

Sub-Team

Site Liaisons

Core Team

Gas

Sub-Team Core Team

Wind

Sub-Team

Implementing a Public Safety Program » Public Safety Team

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Team Roles and Responsibilities

Team Role Responsibilities

Managing Committee

Overall approval for Public Safety Initiative Recommendations Ultimate resource allocation for recommended projects or other changes

Steering Team Provide input and feedback on project direction and interim results Remove barriers and allocate available resources within each of their

respective organizations

Project Manager

Day-to-day management of overall project scope, schedule and budget Issue resolution Coordination of all formal communications to Steering Team and EMG

Managing Committee

Support/SMEs Provide input to Core teams on areas of your expertise as needed Assist in development of mitigation plans Assist in communications/roll-out activities

Core Teams Spend 60-70% of time on Public Safety initiative Arrange and conduct site visits Lead risk assessment (hazard identification and prioritization) Lead risk mitigation planning for assigned fleet (coal, gas, wind)

Sub-Teams Become familiar with public safety issues in assigned areas Provide “challenge” to core team findings Validate core team’s risk assessment and mitigation plans

Site Liaisons Arrange and coordinate site visits Provide input to hazard prioritization and risk mitigation plans Lead implementation of recommendations at site-level

Implementing a Public Safety Program » Public Safety Team

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Hazard Identification/Prioritization at Site Visits

A B C D E F G H I J K

ID #

What is the hazard?

What are the specific risks?

Who is exposed?

What are we doing already to manage the risk?

Conse-quence Analysis

Proba-bility Analysis

Risk Assess-ment

Assumptions Considered for Risk Assessment

Additional Mitigation Steps Recommended

Risk Mitigation Plan Needed (Y/N)

“Identification of Public Hazards” table

Implementing a Public Safety Program » Hazard Identification

1. Envision a “generic” plant for your fleet type. If all of you are familiar with a particular plant, you may want to use it as a basis.

2. Use Column B to identify potential public safety hazards that could exist at this type of plant.

BE CREATIVE! Think of the types of questions you would ask the site representatives to get them to think “outside the box”

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3. For each hazard identified, move across columns C, D, and E to fill in the following:

What are the specific risks? (describe how the hazard could lead to public harm)

Who is exposed?

What are we already doing to mitigate?

4. Using the Risk Assessment Matrix (next page), complete columns F, G, H, and I for each hazard identified.

Consequence: I-Catastrophic, II-Critical, III-Marginal, or IV-Negligible

Probability: Frequent, Probable, Occasional, Remote, or Improbable

Risk Assessment: High, Serious, Medium, Low (determined by matrix)

5. Identify and list recommended mitigation steps in column J.

For any hazards with an assessment of “high” or “serious”, a formal risk mitigation plan will be needed.

Other identified risks will require risk mitigation steps to be identified and tracked at the site level.

Implementing a Public Safety Program » Hazard Identification

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Risk Assessment Matrix

Public Impact

Consideration

Interpretation

I Significant Public

Disruption,

Extended National

or International

Media Coverage

• Evacuation of large scale required

• Extended nation news coverage

• Event may impact larger community

• Closure longer than 24 hours of a major road

II Small Public

Disruption, One

Time Nation or

Extended Local

Media Coverage

• Evacuation of smaller scale required

• Local news coverage • Event may impact a medium

sized community • Less than 24 hour closure of a

secondary roadway

III Public Complaints,

One Time Local

Media Coverage

• Event may impact a small community

• less than 24 hour closure of a secondary roadway

• Temporary, e.g. less than 1 hour closure of public transportation

IV Public Complaint;

No Media Coverage

• Minor inconvenience to a few people

• Temporary side road closing

Consequence Categories

Consequence I II III IV

Likelihood of OCCURANCE or EXPOUSRE

CATASTROPHIC Death or Permanent Disability

CRITICAL Acute/Chronic Injury

MARGINAL Minor Exposure

NEGLIGIBLE

Frequent Likely to Occur Repeatedly

HIGH Operation not permissible


SERIOUS High Priority Remedial Action

MEDIUM Take Remedial Action at Appropriate Time

Probable Likely to Occur Several Times





Occasional Likely to Occur Sometime




LOW Risk Acceptable : Remedial Action Discretionary

Remote Not Likely to Occur





Improbable Very Unlikely- may assume exposure will not happen





P

R

O

B

A

B

I

L

I

T

Y

CONSEQUENCE I II III IV

Implementing a Public Safety Program » Hazard Prioritization

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Highlights of Mitigation Plans/Action Items

Coal

Option 1: Develop inspect plans for Plant A’s stacks

Option 2: Demolish stack partially or completely

Complete piping integrity testing on the gas pipe

Gas

Revise the Partnership Management of Change (MOC) procedure

Revise the DOT Gas Pipeline Procedure Manual to incorporate Public Awareness Effectiveness Evaluation Program

Wind

Modify turbine logic to prevent auto restarts during freezing weather where possible

Increase public awareness including additional signage and prepare generic brochure describing all public hazards

Implementing a Public Safety Program » Mitigation Plan Highlights

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Integration of ERM/ORM Risk Assessment Methodology

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Make New Shoelaces Available

Supply Wrist Pads

Risk Treatments/Controls Mitigation Plan

Underlying Risk Factors and Conditions

Outcomes/ Impacts on Objectives

Event with Potential to Affect Objectives

Trip and Fall

• The risk factor was the broken shoelace. • The risk event was the trip and subsequent fall. • The consequence was the sprained wrist.

Implementing a Public Safety Program » Risk Assessment Methodology

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Action Plan

Execution of Action Items

Provide initial site assessment to all sites

Track action items monthly during Ops Committee Meeting

Public Safety Integration

Incorporate public safety assessment in ERM and business planning processes

Incorporate public safety assessment for new projects in development

Develop communication plan for all employees

Raise employee awareness

Educate site personnel on risk assessment methodology

Implementing a Public Safety Program » Action Plan

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Public Safety Integration

Completed Public Risk Evaluation to all sites to be used as a basis for subsequent annual assessment

Modify Project Justification and Management of Change forms

Create safety committee task for annual site assessment

Modify current business planning process to include public safety

Develop lesson plan and train relevant employees on public risk assessment and mitigation

Develop communication plan for all employees

Implementing a Public Safety Program » Plant Walk-Through

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Table of Contents

»




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20 separate and unique public risks were identified and assessed across the wind fleet (560 total risks).

Two (2) High public risks

Lattice tower access – meteorological towers and turbine towers

Temporary meteorological tower supports (guy wires)

Two (2) Serious public risks

Ice throw

Turbine equipment failure

Other common risks include:

Public access

BOP equipment failures

Crane use

Typical Results for Wind Plants » Public Risk Assessment

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Public risks include lattice tower access, met towers guy wires, ice throw, and turbine failure.

Hard to see Guy Wires

Proximity to public roads

Easy Access to Tower

Ice Build Up on Blade

Typical Results for Wind Plants » Public Risk Assessment

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Hazards and mitigation plans

Hazard Mitigation Plan

1 Formation of ice on turbine blades

Modify turbine logic to prevent auto restarts during freezing weather

Install warning signs where possible to alert public about potential ice throw

Ensure weather alert is available to site O&M managers and instrumentation techs

2 Permanent and temporary met tower access

Install visible sleeves on the guy wires on temporary met towers. Remove met tower if possible

3 Lattice turbine tower access.

Add barriers to prevent public access to lattice towers

Install warning signs on the lattice towers to alert general public about the hazards

4 Temporary met tower collapse Develop met tower (permanent and

temporary) maintenance and inspection guidelines

5 Blade failure Public education Inspection program

Typical Results for Wind Plants » Hazards and Mitigation Plans

Risk assessment ratings:

High Serious Medium Low

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Hazards and mitigation plans (cont.)

Hazard Mitigation Plan

6 Spinner hatch detachment Educate the OEM Inspection program

7 Gen-tie and overhead line failure and inadvertent contact.

Inspection program; dependent on location

8 Padmount and main transformer failure

Install warning flag poles on padmount transformers or barriers

9 Turbines in close proximity to public roads.

Install warning signs for authorized entry on string roads and/or gates on roads leading to towers

10 Underground collection system (excavations by landowners).

Install additional signage of buried collection system

11 Delivery to wind site of heavy equipment during construction.

Contract should specify FOB site, placing risk on supplier or transporter


Low

Risk assessment ratings:

High Serious Medium

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Hazards and mitigation plans (cont.)

Mitigation Plan – General Items

Prepare generic brochure describing all public hazards at wind sites and distribute them during community events or local public places

Review and revise "Wind Turbine Specifications" to incorporate mitigation plans for the public hazards identified during the initiative

Each wind site establish communication protocol with local emergency responders and educate them on hazards

Create safety committee tasks for each wind sites for annual public safety risk assessment


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Summary

Summary

Power generation facilities present a wide range of risks that could affect the public in many ways, sometimes catastrophic

Public safety programs and initiatives are a means for owners and operators of power plants to identify the hazards and mitigate the risks in a systematic process

Defining of roles and responsibilities

Research and planning

Site visits to identify hazards

Calibration and prioritization of hazards

Development of mitigation plans

Wind plants have a variety of risks, mostly predictable

Typical high risks include lattice tower access, met towers guy wires

Typical serious risks include ice throw, and turbine failure

Key C O N T A C T S


Confidential and proprietary. Do not distribute or copy.

Key C O N T A C T S



Key C O N T A C T S



Key C O N T A C T S

©2013 Navigant Consulting, Inc. 33

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Bruce Hamilton| Director | Energy Navigant +1.503.476.2711 [email protected]

mailto:[email protected]



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