Short title; amendment of title 49, United States Code; table of contents

(a)

Short title

This Act may be cited as the

Pipeline Safety and Reliability Improvement Act of 2006

. (b)

Amendment of title 49, United States Code

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United States Code. (c)

Table of contents

Sec. 1. Short title; amendment of title 49, United States Code; table of contents.

Sec. 2. Pipeline safety and damage prevention.

Sec. 3. Energy transportation infrastructure reliability.

Sec. 4. Authorization of appropriations.

Pipeline safety and damage prevention

(a)

One-call civil enforcement

(1)Section 60114 is amended by adding at the end a new subsection (d) to read as follows:

(d)

Enforcement

Any person who engages in excavation activity without first using an available one-call notification system to establish the location of underground facilities in the excavation area, who disregards location information or markings established by a pipeline facility operator, or who fails to take reasonable steps to ensure safe excavation to prevent damage to a pipeline, shall be subject to any action available under this chapter, including a civil action under section 60120, an administrative action under this chapter, including the assessment of civil penalties under section 60122, and, if appropriate, a criminal action under section 60123.

(2)Section 60122(a)(1) is amended in the first sentence by inserting , 60114(d), between section 60114(b) and or 60118(a) of this title. (b)

State damage prevention programs

(1)Section 60105(b)(4) is amended to read as follows:

(4)has committed to establishing a program designed to prevent damage by excavation, demolition, tunneling, or construction activity to the pipeline facilities to which the certification applies that subjects persons who violate the applicable requirements of that program to civil penalties and other enforcement actions that are substantially the same as are provided under this chapter, and addresses the elements in section 60134(b);

(2)Chapter 601 is amended by adding at the end the following new section:

60134.

State damage prevention programs

(a)

In general

In order to qualify for a grant under this section, each State authority (including a municipality if the agreement applies to intrastate gas pipeline transportation) having an annual certification in accordance with section 60105 or an agreement in accordance with section 60106 shall have an effective damage prevention program that meets the requirements of subsection (b). (b)

Damage prevention program elements

An effective damage prevention program includes the following elements: (1)Participation by operators, excavators, and other stakeholders in the development and implementation of methods for establishing and maintaining effective communications between stakeholders from receipt of an excavation notification until successful completion of the excavation, as appropriate. (2)A process for fostering and ensuring the support and partnership of stakeholders, including excavators, operators, locators, designers, and local government in all phases of the program. (3)A process for reviewing the adequacy of a pipeline operator’s internal performance measures regarding persons performing locating services and quality assurance programs. (4)Participation by operators, excavators, and other stakeholders in the development and implementation of effective employee training programs to ensure that operators, the one-call center, the enforcing agency, and the excavators have partnered to design and implement training for the employees of operators, excavators, and locators. (5)A process for fostering and ensuring active participation by all stakeholders in public education for damage prevention activities. (6)A process for resolving disputes that defines the State authority’s role as a partner and facilitator to resolve issues. (7)Enforcement of State damage prevention laws and regulations for all aspects of the excavation process, including public education, and the use of civil penalties for violations assessable by the appropriate State authority. (8)A process for fostering and promoting the use, by all appropriate stakeholders, of improving technologies that may enhance communications, underground pipeline locating capability, and gathering and analyzing information about the accuracy and effectiveness of locating programs. (9)A process for review and analysis of the effectiveness of each program element, including a means for implementing improvements identified by such program reviews. (c)

Grants to states

(1)

In general

The Secretary may make a grant of financial assistance to a State that qualifies under this section to assist in improving the overall quality and effectiveness of a damage prevention program of a State. In making grants under this section, the Secretary shall take into consideration the commitment of each State to ensuring the effectiveness of its damage prevention program, including legislative and regulatory actions taken by the State. (2)

Application

If a State authority files an application for a grant under this section not later than September 30 of a calendar year, the Secretary of Transportation shall review the State’s damage prevention program to determine its effectiveness. For programs determined to be effective, the Secretary may make a grant of financial assistance for the cost of the personnel, equipment, and activities the authority reasonably requires during the next calendar year to carry out an effective damage prevention program as described in subsection (b) of this section. A grant made under this section is not subject to the section 60107(a) limitation on the maximum percentage of funds to be paid by the Secretary. A State authority filing an application under this subsection shall demonstrate that the Governor (or chief executive) has designated it as the appropriate State authority to receive the grant funds. Funds provided under this section may not be used for lobbying or in direct support of litigation. (d)

Authorization of appropriations

To carry out this section, the following amounts are authorized to be appropriated to the Secretary: (1)$1,500,000 for fiscal year 2008 to be derived from amounts appropriated to the Secretary under section 60125(c) of this title. (2)$1,750,000 for fiscal year 2009 to be derived from amounts appropriated to the Secretary under section 60125(c) of this title. (3)$2,000,000 for fiscal year 2010 to be derived from amounts appropriated to the Secretary under section 60125(c) of this title.

Such funds shall remain available until expended.

(3)The table of sections of chapter 601 is amended by adding at the end the following new item:

60134. State damage prevention programs.

(c)

State pipeline safety grants

Section 60107(a) is amended by striking not more than 50 percent and inserting in its place not more than 80 percent. (d)

Damage prevention technology development

Section 60114 (as amended by this section) is further amended by adding at the end the following new subsection:

(e)

Technology development grants

To the extent and in the amount provided in advance in appropriations acts, the Secretary may make grants to any organization or entity (not including for-profit entities) for the development of technologies that will facilitate the prevention of pipeline damage caused by excavation activities, with emphasis on wireless and global positioning technologies having potential for use in connection with notification systems and underground facility locating and marking services. If a grant is made pursuant to this subsection, the Secretary shall establish and follow appropriate procedures for awarding grants under this subsection and shall ensure that any funds granted are properly used. Funds provided under this subsection may not be used for lobbying or in direct support of litigation. The Secretary may also support such technology development through cooperative agreements with trade associations, academic institutions, and other qualified organizations.

(e)

Safety orders

Section 60117(l) is amended to read as follows:

(l)

Safety orders

(1)

In general

Consideration

In making a determination under paragraph (1) of this section, the Secretary shall, if relevant, consider— (A)the considerations specified in section 60112(b); (B)the likelihood that the condition will impair the serviceability of a pipeline; (C)the likelihood that the condition will progress over time; (D)the likelihood that the condition is present or could develop on other areas of the pipeline; and (E)other factors the Secretary considers appropriate.

(f)

Gas pipeline integrity reassessment

Section 60109(c)(3)(B) is amended to read as follows:

(B)Subject to paragraph (5), periodic reassessment of the facility at a minimum of once every 7 years, using methods described in subparagraph (A), until the Secretary issues regulations basing the reassessment intervals on technical data, risk factors, and engineering analyses.

(g)

Integrity program enforcement

Section 60109(c)(9)(A)(iii) is amended to read as follows:

(iii)

Inadequate programs

If the Secretary determines that a risk analysis or integrity management program does not comply with the requirements of this subsection or regulations issued as described in paragraph (2), has not been adequately implemented, or is inadequate for the safe operation of a pipeline facility, the Secretary may conduct proceedings under sections 60108(a), 60112, 60118(a) and (b), 60120, 60122, or any other section of this chapter, to enforce the requirements.

(h)

Limitation on inflationary adjustments

Section 60122(a) is amended by adding at the end the following new paragraph:

(4)The maximum civil penalty amounts available under this section are excepted from the inflation adjustment requirements of section 4 of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996.

(i)

Direct sales lines

Subsection 60101(a) is amended— (1)in paragraph (6)— (A)by striking — the first place it appears and all that follows through (A) means a gas pipeline and inserting means a gas pipeline; (B)by striking subparagraph (B); (C)by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (D)by striking (15 U.S.C. 717 et seq.); but and inserting (15 U.S.C. 717 et seq.).; and (2)in paragraph (9)— (A)by striking means— and all that follows through (A) a gas pipeline facility and inserting means a gas pipeline facility; (B)by striking subparagraph (B); and (C)by striking (15 U.S.C. 717 et seq.); and and inserting (15 U.S.C. 717 et seq.)..

Energy transportation infrastructure reliability

(a)

Permit streamlining

(1)

Construction and expansion of hazardous liquid pipelines

(A)Section 60133(e) is amended to read as follows:

(e)

Ombudsman

The Secretary shall designate an ombudsman to assist resolving disagreements between Federal, State, and local agencies and pipeline operators arising during agency review of pipeline repairs and hazardous liquid pipeline construction projects in order to expedite pipeline projects, consistent with protection of human health, public safety, and the environment.

(B)Section 60133(f) is amended by striking the first sentence and inserting the following: The Secretary shall encourage States and local governments to consolidate their respective permitting processes for pipeline repair and hazardous liquid pipeline construction projects subject to any time periods for repairs specified by rule by the Secretary.. (C)Section 60133 is further amended by adding at the end the following new subsection:

(g)

Construction and expansion of pipelines

Upon request by any person proposing to construct or expand a hazardous liquid pipeline, the Secretary may coordinate the environmental reviews and permitting processes of the agencies having responsibility for issuing permits or otherwise authorizing pipeline construction projects if the Secretary determines that coordinating the permitting processes to expedite the completion of the project would be in the national interest.

(2)

Pipeline repairs

Section 60133 (as amended by this subsection) is further amended by adding at the end the following new subsection:

(h)

Presumptive exclusions

(1)

Nepa review

With respect to any of the activities described in paragraph (3) of this subsection, including activities on non-Federal land, if the Federal agency having responsibility for conducting environmental reviews under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (NEPA) determines that— (A)the proposed activity is substantially similar to a pipeline repair activity for which the Interagency Committee has developed or adopted best practices under subsection (a)(3) of this section for determining and reducing or eliminating the potential for significant impacts to the human environment under NEPA, (B)the proposed repair activity is consistent with these best practices, and (C)in the absence of extraordinary circumstances, the proposed repair activity is not likely to individually or cumulatively result in significant impacts on the human environment,

then a Federal agency having responsibility for conducting environmental reviews under NEPA or coordinating the permitting process may, in consultation with the Council on Environmental Quality, adopt categorical exclusions for those repair activities, and actions by those agencies regarding pipeline repair permits shall be subject to a rebuttable presumption that the use of a categorical exclusion will apply.

(2)

Esa review

With respect to any of the activities described in paragraph (3) of this subsection, including activities on non-Federal land, if the Secretary of Interior or the Secretary of Commerce— (A)determines that a proposed activity is substantially similar to a pipeline repair activity for which the Interagency Committee has developed or adopted best practices under subsection (a)(3) of this section for determining and reducing or eliminating impacts to listed species under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) (ESA), (B)concludes that if these best practices are followed, the repair activity is not likely to jeopardize the continued existence of any listed species or adversely modify the habitat of such species, and (C)concludes that the repair activity would not conflict with any existing biological opinion or any agreement made under the ESA relating to the geographic area where the proposed pipeline repair will occur,

then action by the Secretary of the Interior or the Secretary of Commerce regarding pipeline repair permits shall be subject to a rebuttable presumption that the ESAs biological assessment and consultation requirements have been satisfied.

(3)

Activities described

The activities referred to in paragraphs (1) and (2) are the following: (A)Site repairs required to ensure the integrity of an existing pipeline facility performed entirely within an existing right-of-way corridor that do not change the physical character of the facility and where the facility was constructed in accordance with the environmental reviews and authorizations, if any, required by Federal law. (B)Functional replacement of pipeline equipment performed entirely within an existing right-of-way corridor that does not change the physical character of the facility and where the facility was constructed in accordance with the environmental reviews and authorizations, if any, required by Federal law.

(b)

International activities

Section 60117 (as amended by section 2 of this Act) is further amended by adding at the end the following new subsection:

(m)

International uniformity of standards and requirements

(1)

Participation in international forums

Subject to guidance and direction from the Secretary of State, the Secretary of Transportation may participate in international forums that establish or recommend mandatory standards and requirements for transporting gas and hazardous liquids by pipeline in international commerce. (2)

Consultation

The Secretary may consult with interested authorities to ensure that, to the extent practicable, regulations the Secretary prescribes under this chapter are consistent with standards and requirements related to transporting gas and hazardous liquids by pipeline that international authorities adopt. (3)

Differences in international standards and requirements

If the Secretary prescribes a standard or requirement concerning international transportation by pipeline, nothing in this section requires that such standard be identical to a standard or requirement adopted by an international authority. (4)

Information exchange and technical assistance

Subject to guidance and direction of the Secretary of State, the Secretary of Transportation may engage in activities to support international efforts to share information about the risks to the public and the environment from pipelines and means of protecting against those risks. The Secretary may provide technical assistance to domestic and appropriate international organizations to facilitate efforts to reduce or eliminate inconsistent requirements that inhibit the safety and efficiency of pipeline transportation in or affecting interstate or foreign commerce.

(c)

Emergency preparedness

(1)

Emergency waivers

Section 60118(c) is amended to read as follows:

(c)

Waivers by secretary

(1)

Nonemergency waivers

On application of a person owning or operating a pipeline facility, the Secretary by order may waive compliance with any part of an applicable standard prescribed under this chapter on terms the Secretary considers appropriate, if the waiver is not inconsistent with pipeline safety. The Secretary shall state in the order the reasons for granting a waiver under this paragraph. The Secretary may act on a nonemergency waiver only after notice and an opportunity for a hearing. (2)

Emergency waivers

The Secretary by order may waive compliance with any part of an applicable standard prescribed under this chapter on terms the Secretary considers appropriate without prior notice and comment if the Secretary determines that the waiver is necessary to address an actual or impending emergency involving pipeline transportation, including but not limited to emergencies caused by natural or manmade disasters. The Secretary shall state in the order the reasons for granting a waiver under this paragraph.

(2)

Restoration of operations

Section 60301(d) is amended— (A)in paragraph (1)(B), by striking and; (B)by redesignating paragraph (2) as paragraph (3); and (C)by inserting after paragraph (1) the following new paragraph:

(2)may be used for activities involving the restoration of energy pipelines that have been or are anticipated to become disrupted by manmade or natural disaster, including aid to other Federal agencies; and

(d)

Petroleum transportation capacity study

(1)Chapter 601 (as amended by this Act) is further amended by adding at the end the following new section:

60135.

Petroleum product transportation capacity study

(a)

In general

The Secretary of Transportation may conduct analyses of the domestic transport of petroleum products by pipeline. Such analyses should identify areas of the United States where shortages of pipeline capacity and reliability concerns exist, where such shortages have or are anticipated to contribute to significant increases in the price of petroleum products, or where unplanned loss of individual pipelines may cause shortages of petroleum products or price disruptions. For the purpose of this section, petroleum product means oil of any kind or in any form, gasoline, diesel fuel, aviation fuel, fuel oil, kerosene, any product obtained from refining or processing of crude oil, liquefied petroleum gases, natural gas liquids, petrochemical feedstocks, condensate, waste or refuse mixtures containing any of the above, and any other liquid hydrocarbon compounds. (b)

Consultation

In preparing any such analyses, the Secretary may consult with other government agencies and public- and private-sector experts in pipeline and other forms of petroleum product transportation, energy consumption, capacity, population, and economic development. (c)

Data collection

(1)The Secretary may collect information relevant to the study from the Department of Energy’s Energy Information Administration and may enter into an interagency agreement for this purpose. (2)In the absence of sufficient information collection by the Energy Information Administration, the Secretary may collect information relevant to the study in any other manner.

(2)The table of sections of chapter 601 is further amended by adding at the end the following new item:

60135. Petroleum product transportation capacity study.

(e)

Cost reimbursements

Section 60117 (as amended by section 2 of this Act and subsection (b) of this section) is further amended by adding at the end the following new subsection:

(n)

Cost recovery for design reviews

If the Secretary conducts facility design safety reviews, consulting, or field work in connection with a proposal to construct, expand, or operate a pipeline system or liquefied natural gas pipeline facility, the Secretary may require the person requesting such reviews or consulting to pay the associated costs incurred by the Secretary, such funds to be deposited into the pipeline safety fund. Funds deposited pursuant to this section are authorized to be appropriated for the purposes set forth in section 60301(d). The Secretary may assess such costs in any reasonable manner.

Authorization of appropriations

(a)Section 60125(a) is amended to read as follows:

(a)

Gas and hazardous liquid

To carry out this chapter (except for section 60107) related to gas and hazardous liquid, the following amounts are authorized to be appropriated to the Department of Transportation, from fees collected under section 60301 in each respective year, and from the Oil Spill Liability Trust Fund as specified below: (1)For fiscal year 2007, $55,497,000, of which $39,872,000 is from fees and $15,625,000 is from the Fund. (2)For fiscal year 2008, $57,997,000, of which $42,651,000 is from fees and $15,346,000 is from the Fund. (3)For fiscal year 2009, $60,482,000, of which $44,839,000 is from fees and $16,003,000 is from the Fund. (4)For fiscal year 2010, $62,375,000, of which $46,444,000 is from fees and $15,931,000 is from the Fund.

(b)Section 60125(b)(1) concerning State grants is amended to read as follows:

(1)To carry out section 60107 of this chapter, the following amounts are authorized to be appropriated to the Department of Transportation, from fees collected under section 60301 in each respective year, and from the Oil Spill Liability Trust Fund as specified below: (A)For fiscal year 2007, $20,238,000, of which $17,053,000 is from fees and $3,185,000 is from the Fund. (B)For fiscal year 2008, $23,221,000, of which $19,567,000 is from fees and $3,654,000 is from the Fund. Of the amount appropriated to carry out section 60107 of this title, $1,500,000 shall be available for fiscal year 2008 for the grants to States authorized in section 60134. (C)For fiscal year 2009, $24,513,000, of which $20,656,000 is from fees and $3,857,000 is from the Fund. Of the amount appropriated to carry out section 60107 of this title, $1,750,000 shall be available for fiscal year 2009 for the grants to States authorized in section 60134. (D)For fiscal year 2010, $25,855,000, of which $21,786,000 is from fees and $4,069,000 is from the Fund. Of the amount appropriated to carry out section 60107 of this title, $2,000,000 shall be available for fiscal year 2010 for the grants to States authorized in section 60134.

(c)Section 60125(c) is hereby repealed. (d)Sections 60125(d) and 60125(e) are redesignated as sections 60125(c) and 60125(d), respectively. (e)Section 60125(c)(2), as redesignated by subsection (d) of this section, is amended by striking 2003 through 2006 and inserting 2007 through 2010. (f)Section 6107 is amended— (1)in subsection (a), by striking fiscal years 2003 through 2006 and inserting fiscal years 2007 through 2010; and (2)in subsection (b), by striking for fiscal years 2003 through 2006 and inserting for fiscal years 2007 through 2010. (g)Section 5128 is amended— (1)in subsection (a)— (A)by adding at the end the following new paragraph:

(5)For fiscal year 2009, such sums as may be necessary.

; and

(B)by adding at the end the following new paragraph:

(6)For fiscal year 2010, such sums as may be necessary.

;

(2)in subsection (b), by striking through 2008 in the introductory language and inserting through 2010; and (3)in subsection (c), by striking through 2008 and inserting through 2010.