[House Report 104-110]
[From the U.S. Government Publishing Office]



                                                                       
104th Congress                                            Rept. 104-110
                        HOUSE OF REPRESENTATIVES

 1st Session                                                   Part 2  
_______________________________________________________________________


 
                      PIPELINE SAFETY ACT OF 1995

_______________________________________________________________________


  June 1, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                             together with

               DISSENTING AND ADDITIONAL DISSENTING VIEWS

                        [To accompany H.R. 1323]

      [Including cost estimate of the Congressional Budget Office]
  The Committee on Commerce, to whom was referred the bill 
(H.R. 1323) to reduce risk to public safety and the environment 
associated with pipeline transportation of natural gas and 
hazardous liquids, and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.
                                CONTENTS

                                                                   Page
The amendment....................................................     2
Purpose and summary..............................................     9
Background and need..............................................     9
Hearings.........................................................    13
Committee consideration..........................................    13
Roll call votes..................................................    13
Committee oversight findings.....................................    15
Committee on Government Reform and Oversight.....................    16
Committee cost estimates.........................................    16
Congressional Budget Office estimates............................    16
Inflationary impact statement....................................    18
Section-by-section analysis and discussion.......................    18
Changes in existing law made by the bill, as reported............    22
Minority and additional views....................................    40
                               Amendment

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Pipeline Safety Act of 1995''.

 SEC. 2. REFERENCES.

  (a) References to Title 49.--Except as otherwise expressly provided, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or 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.
  (b) References to the Secretary of Transportation.--Except as 
otherwise expressly provided, any reference in this Act to the 
``Secretary'' is a reference to the Secretary of Transportation.

 SEC. 3. ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS.

  (a) In General.--Chapter 601 is amended by adding at the end the 
following new section:

``Sec. 60126. Analysis of risk reduction benefits and costs

  ``(a) Requirement.--No final significant standard or regulatory 
requirement issued under section 60101(b), 60102, 60103, 60108, 60109, 
60110, or 60113 shall be promulgated unless the Secretary of 
Transportation--
          ``(1) certifies that the Secretary has conducted an analysis 
        of risk reduction benefits and costs that is based on objective 
        and unbiased scientific and economic evaluations of all 
        significant and relevant information and risk assessments 
        provided to the Department of Transportation by interested 
        parties or generated by the Department itself relating to the 
        costs, risks, and risk reduction and other benefits addressed 
        by the standard or requirement;
          ``(2) certifies that the incremental risk reduction or other 
        benefits of any option chosen will be likely to justify, and be 
        reasonably related to, the incremental costs incurred by State, 
        local, and tribal governments and the Federal Government and 
        other public and private citizens; and
          ``(3) explains why any other options identified or considered 
        by the Secretary were found either--
                  ``(A) to be less cost-effective at achieving a 
                substantially equivalent reduction in risk; or
                  ``(B) to provide less flexibility to State, local, or 
                tribal governments or regulated entities in achieving 
                the otherwise applicable objectives of the standard or 
                requirement, along with a brief explanation of why 
                other options that were identified or considered by the 
                Secretary were found to be less cost-effective or less 
                flexible.
  ``(b) Elements of Analysis.--An analysis of risk reduction benefits 
or costs prepared by the Secretary for a significant standard or 
regulatory requirement, at a minimum, shall--
          ``(1) identify the various regulatory and nonregulatory 
        options that were considered;
          ``(2) analyze the incremental costs and incremental risk 
        reduction or other benefits associated with each option 
        identified or considered by the Secretary;
          ``(3) provide any technical data or other information, 
        including the underlying assumptions, upon which the standard 
        or requirement is based; and
          ``(4) include a statement that places in context the nature 
        and magnitude of the risks to be addressed and the residual 
        risks likely to remain for each option identified or 
        considered.
Costs and benefits shall be quantified to the extent feasible and 
appropriate and may otherwise be qualitatively described.
  ``(c) Risk Assessment Documents.--A risk assessment document prepared 
by the Secretary for a significant standard or regulatory requirement 
shall, at a minimum and to the extent feasible--
          ``(1) provide the best estimate for the impacts addressed and 
        a statement of the reasonable range of scientific 
        uncertainties;
          ``(2) include a statement of any significant substitution 
        risks to public safety or the environment; and
          ``(3) contain a statement that places in context the nature 
        and magnitude of risks to public safety or the environment.
  ``(d) Statements.--The statements referred to in subsections (b)(4) 
and (c)(3) of this section shall each provide, to the extent feasible, 
comparisons with estimates of greater, lesser, and substantially 
equivalent risks that are familiar to and routinely encountered by the 
general public, as well as other risks, and, where appropriate and 
meaningful, comparisons of those risks with other similar risks 
regulated by the Department resulting from comparable activities. In 
making such comparisons, the Secretary should consider relevant 
distinctions among risks, such as the voluntary or involuntary nature 
of risks, and the preventability or nonpreventability of risks.
  ``(e) Review by Standards Committee.--
          ``(1) Peer review.--For any significant standard or 
        regulatory requirement, the Secretary shall submit any risk 
        assessment documents and cost-benefit analyses (prepared or 
        received by the Secretary) for review by the Technical Pipeline 
        Safety Standards Committee, the Hazardous Liquid Pipeline 
        Safety Standards Committee, or both, as appropriate, and make 
        them available to the public. The Technical Pipeline Safety 
        Standards Committee and the Hazardous Liquid Pipeline Safety 
        Standards Committee shall function as peer review panels and 
        shall prepare reports, including any recommended options for 
        any significant standard or regulatory requirement and an 
        evaluation of the technical scientific merit of the data and 
        scientific method used for a risk assessment document or cost-
        benefit analysis. The Committee or Committees shall submit such 
        reports to the Secretary within 90 days after the date of 
        receipt of the documents and analyses from the Secretary.
          ``(2) Response of secretary.--The Secretary shall review the 
        report and recommendations of the Technical Pipeline Safety 
        Standards Committee, the Technical Hazardous Liquids Pipeline 
        Safety Standards Committee, or both, as the case may be. Within 
        90 days after receipt of such report, the Secretary--
                  ``(A) shall submit to the Committee or Committees a 
                written response to all peer review comments and 
                recommended options; and
                  ``(B) may revise the risk assessment document or 
                cost-benefit analysis prior to determining whether the 
                proposed significant standard or regulatory requirement 
                should be promulgated.
  ``(f) Emergencies.--In the case of an emergency, the Secretary may 
suspend the application of this section for the duration of the 
emergency.
  ``(g) Report.--Not later than March 31, 1999, the Secretary shall 
transmit to Congress a report on the application of the principles of 
the analyses of risk reduction benefits and costs and risk assessment 
to this chapter and their effect on pipeline safety.''.
  (b) Conforming Amendment.--The analysis for chapter 601 is amended by 
adding at the end the following:

``60126. Analysis of risk reduction benefits and costs.
``60127. Risk management.''.

 SEC. 4. DEFINITIONS.

  (a) In General.--Section 60101(a) is amended--
          (1) by striking subparagraph (B) of paragraph (21) and 
        inserting the following:
                  ``(B) does not include the gathering of gas, other 
                than gathering through regulated gathering lines, in 
                those rural locations that are outside the limits of 
                any incorporated or unincorporated city, town, or 
                village, or any other designated residential or 
                commercial area (such as a subdivision, business, 
                shopping center, or community development) or any 
                similar populated area which the Secretary of 
                Transportation may define as a nonrural area; but
                  ``(C) includes the movement of gas through regulated 
                gathering lines.''; and
          (2) by adding at the end the following:
          ``(23) `best estimate' means a scientifically appropriate 
        estimate which is based, to the extent feasible, on one of the 
        following:
                  ``(A) Central estimates of risk using the most 
                plausible assumptions.
                  ``(B) An approach which combines multiple estimates 
                based on different scenarios and weighs the probability 
                of each scenario.
                  ``(C) Any other methodology designed to provide the 
                most unbiased representation of the most plausible 
                level of risk, given the current scientific information 
                available to the Secretary.
          ``(24) `benefits' means the reasonably identifiable 
        significant health, safety, environmental, social, and economic 
        benefits that are expected to result directly or indirectly 
        from implementation of a standard, regulatory requirement, or 
        option.
          ``(25) `costs' means the direct and indirect costs to the 
        United States Government, to State, local, and tribal 
        governments, and to the private sector, wage earners, 
        consumers, and the economy of implementing and complying with a 
        standard, regulatory requirement, or option.
          ``(26) `risk assessment document' means a document 
        containing--
                  ``(A) an explanation of how hazards associated with a 
                substance, activity, or condition have been identified, 
                quantified, and assessed; and
                  ``(B) a statement by the preparer of the document 
                accepting the findings of the document.
          ``(27) `risk management' means the systematic application, by 
        the owner or operator of a pipeline facility, of management 
        policies, procedures, finite resources, and practices to the 
        tasks of analyzing, assessing, and controlling risk in order to 
        protect employees, the general public, the environment, and 
        pipeline facilities.
          ``(28) `risk management plan' means a management plan 
        utilized by a gas or hazardous liquid pipeline facility owner 
        or operator that encompasses risk management.
          ``(29) `significant standard or regulatory requirement' means 
        any safety or environmental standard or regulatory requirement, 
        or closely related group of safety or environmental standards 
        or regulatory requirements, that is likely to result in 
        annualized compliance costs in excess of $25,000,000.
          ``(30) `substitution risk' means a potential risk to public 
        safety or the environment from a significant standard, 
        regulatory requirement, or option designed to decrease other 
        risks.''.
  (b) Gathering Lines.--Section 60101(b)(2) is amended by inserting ``, 
if appropriate,'' after ``Secretary'' the first place it appears.

 SEC. 5. GENERAL AUTHORITY.

  (a) Minimum Safety Standards.--Section 60102(a) is amended--
          (1) by striking ``(a)(1)'' and inserting ``(a)'';
          (2) by striking paragraph (2);
          (3) by redesignating subparagraphs (A), (B), and (C) as 
        paragraphs (1), (2), and (3), respectively;
          (4) in paragraph (1), as redesignated by paragraph (3) of 
        this subsection, by striking ``transporters of gas and 
        hazardous liquid and to''; and
          (5) by striking paragraph (3), as redesignated by paragraph 
        (3) of this subsection, and inserting the following:
          ``(3) shall include a requirement that all individuals who 
        operate and maintain pipeline facilities must be qualified.
Such qualifications shall address the ability to recognize and react 
appropriately to abnormal operating conditions that may indicate a 
dangerous situation or a condition exceeding design limits. The 
operator of the pipeline facility shall ensure that employees who 
operate and maintain the facility are qualified.''.
  (b) Practicability and Safety Needs Standards.--Section 60102(b) is 
amended--
          (1) by striking ``section 60103'' and inserting ``sections 
        60103 and 60112'';
          (2) in paragraph (1)(B) by inserting ``safety'' after 
        ``pipeline'';
          (3) by striking ``and'' at the end of paragraph (3);
          (4) in paragraph (4) by striking ``contribute to'' and 
        inserting ``benefit'';
          (5) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
          (6) by adding at the end the following new paragraph:
          ``(5) the comments and recommendations of the Technical 
        Pipeline Safety Standards Committee, the Technical Hazardous 
        Liquid Pipeline Safety Standards Committee, or both, as 
        appropriate.''.
  (c) Facility Operation Information Standards.--Section 60102(d) is 
amended in the first sentence--
          (1) by inserting after ``operating the facility'' the 
        following: ``as required by the standards prescribed under this 
        chapter'';
          (2) by striking ``to provide the information'' and inserting 
        ``to make the information available''; and
          (3) by inserting after ``to the Secretary and an appropriate 
        State official'' the following: ``as determined by the 
        Secretary''.
  (d) Pipe Inventory Standards.--Section 60102(e) is amended in the 
first sentence--
          (1) by striking ``and, to the extent the Secretary considers 
        necessary, an operator of a gathering line that is not a 
        regulated gathering line (as defined under section 60101(b)(2) 
        of this title),''; and
          (2) by striking ``transmission'' and inserting 
        ``transportation''.
  (e) Smart Pigs.--
          (1) Minimum safety standards.--Section 60102(f) is amended by 
        striking ``(1)'' and all that follows through ``device.'' and 
        inserting the following:
          ``(1) Minimum safety standards.--The Secretary shall 
        prescribe minimum safety standards requiring that the design 
        and construction of a new gas or hazardous liquid pipeline 
        transmission facility be carried out, to the extent 
        practicable, in a way that accommodates the passage through the 
        facility of an instrumented internal inspection device 
        (commonly referred to as a `smart pig'). The Secretary shall 
        also prescribe minimum safety standards requiring that when a 
        segment of an existing gas or hazardous liquid pipeline 
        transmission facility is replaced, to the extent practicable, 
        the replacement segment can accommodate the passage of an 
        instrumented internal inspection device. The Secretary may 
        apply the standard to an existing gas or hazardous liquid 
        facility and require the facility to be changed to allow the 
        facility to be inspected with an instrumented internal 
        inspection device if the basic construction of the facility 
        will accommodate the device.''.
          (2) Periodic inspections.--Section 60102(f) is further 
        amended--
                  (A) in paragraph (2) by inserting ``Periodic 
                inspections.--'' after ``(2)'';
                  (B) in paragraph (2) by inserting after ``the 
                Secretary shall prescribe'' the following: ``, if 
                necessary, additional''; and
                  (C) by moving paragraph (2) 2 ems to the right.
  (f) Updating Standards.--Section 60102 is amended by adding at the 
end the following:
  ``(l) Updating Standards.--The Secretary shall, to the extent 
appropriate and practicable, update incorporated industry standards 
that have been adopted as part of the Federal pipeline safety 
regulatory program.''.

 SEC. 6. RISK MANAGEMENT.

  Chapter 601 is further amended by adding at the end the following new 
section:

``Sec. 60127. Risk management

  ``(a) Risk Management Demonstration Project.--The Secretary of 
Transportation shall carry out a project with voluntary participation 
by owners and operators of pipeline facilities to demonstrate 
applications of risk management. The purpose of the project shall be to 
evaluate the safety and cost effectiveness of such applications.
  ``(b) Exemption.--During the period of the demonstration project 
carried out under this section, the Secretary may exempt owners and 
operators participating in the project from compliance with some or all 
of the standards and regulatory requirements that would otherwise apply 
to such owners and operators under this chapter. In addition, the 
Secretary shall exempt such owners and operators from complying with 
standards and regulatory requirements promulgated under this chapter 
during the period of such participation with respect to facilities 
included in the project.
  ``(c) Requirements.--In carrying out the demonstration project under 
this section, the Secretary shall--
          ``(1) invite owners and operators of pipeline facilities to 
        submit risk management plans for timely approval by the 
        Secretary;
          ``(2) ensure that the approved risk management plans under 
        the project contain measures that are designed to achieve an 
        equivalent or greater overall level of safety than would 
        otherwise be achieved by complying with the standards and 
        regulatory requirements of this chapter; and
          ``(3) ensure that the project incorporates the following 
        elements:
                  ``(A) collaborative training;
                  ``(B) methods to measure the performance of risk 
                management plans;
                  ``(C) development and application of new 
                technologies;
                  ``(D) promotion of community awareness;
                  ``(E) development of a model to categorize the risks 
                inherent to a selected pipeline facility, considering 
                the location, volume, pressure, and material 
                transported or stored by the facility;
                  ``(F) application of risk assessment and risk 
                management methodologies suitable to the inherent risks 
                determined to exist by the model developed under 
                subparagraph (E);
                  ``(G) development of project elements needed to 
                ensure that owners and operators participating in the 
                project demonstrate that risks are being effectively 
                managed and that risk management plans carried out 
                under the project can be audited;
                  ``(H) a process for making amendments, modifications, 
                and adjustments to approved risk management plans under 
                the project as agreed to by owners and operators 
                carrying out such plans and the Secretary; and
                  ``(I) such other elements as the Secretary and owners 
                and operators participating in the project may agree 
                would further the purposes of this section.
  ``(d) Emergencies.--In the case of an emergency, the Secretary may 
suspend or revoke the participation of an owner or operator in the 
demonstration project carried out under this section.
  ``(e) Report.--Not later than March 31, 1999, the Secretary shall 
transmit to Congress a report on the results of the demonstration 
project carried out under this section together with an evaluation of 
the project and recommendations on whether or not the applications 
demonstrated under the project should be made a permanent part of the 
Federal pipeline safety program.''.

 SEC. 7. INSPECTION AND MAINTENANCE.

  Section 60108 is amended--
          (1) in subsection (a)(1) by striking ``transporting gas or 
        hazardous liquid or'' each place it appears;
          (2) in subsection (b)(2) by striking the second sentence;
          (3) in the heading to subsection (c) by striking ``Navigable 
        Waters'' and inserting ``Other Waters''; and
          (4) by striking clause (ii) of subsection (c)(2)(A) and 
        inserting the following:
          ``(ii) any other pipeline facility crossing under, over, or 
        through waters where a substantial likelihood of commercial 
        navigation exists if the Secretary decides that the location of 
        the facility in those waters could pose a hazard to navigation 
        or public safety.''.

 SEC. 8. HIGH-DENSITY POPULATION AREAS AND ENVIRONMENTALLY SENSITIVE 
                    AREAS.

  (a) Identification.--Section 60109(a)(1)(B)(i) is amended by striking 
``a navigable waterway (as the Secretary defines by regulation)'' and 
inserting ``waters where a substantial likelihood of commercial 
navigation exists''.
  (b) Unusually Sensitive Areas.--Section 60109(b) is amended to read 
as follows:
  ``(b) Areas To Be Included as Unusually Sensitive.--When describing 
areas that are unusually sensitive to environmental damage if there is 
a hazardous liquid pipeline accident, the Secretary shall consider 
areas where a pipeline rupture would likely cause permanent or long-
term environmental damage, including--
          ``(1) locations near pipeline rights-of-way that are critical 
        to drinking water, including intake locations for community 
        water systems and critical sole source aquifer protection 
        areas; and
          ``(2) locations near pipeline rights-of-way which have been 
        identified as critical wetlands, riverine or estuarine systems, 
        National Parks, wilderness areas, wildlife preservation areas 
        and refuges, wild and scenic rivers, or critical habitat areas 
        for threatened and endangered species.''.

SEC. 9. EXCESS FLOW VALUES.

  Section 60110 is amended--
          (1) in subsection (b) by inserting ``, if any,'' after 
        ``circumstances'';
          (2) in subsection (b)(4) by inserting ``, operating, and 
        maintaining'' after ``cost of installing'';
          (3) in subsection (c)(1)(C) by inserting ``, maintenance, and 
        replacement'' after ``installation''; and
          (4) in subsection (e) by inserting after the first sentence 
        the following: ``The Secretary may adopt industry accepted 
        performance standards in order to comply with this 
        requirement.''.

 SEC. 10. CUSTOMER-OWNED NATURAL GAS SERVICE LINES.

  Section 60113 is amended--
          (1) by striking ``(a) Maintenance Information.--''; and
          (2) by striking subsection (b).

 SEC. 11. ONE-CALL NOTIFICATION SYSTEMS.

  (a) Application.--Section 60114(a) is amended--
          (1) in paragraph (1) by striking ``the system apply to'';
          (2) in paragraph (1) by inserting before the period ``be 
        covered by a system'';
          (3) in each of paragraphs (1), (2), (3), (6), (7), (8), and 
        (9) by striking ``a'' the first place it appears and inserting 
        ``A'';
          (4) in paragraph (4) by striking ``qualifications'' and 
        inserting ``Qualifications''; and
          (5) in paragraph (5) by striking ``procedures'' and inserting 
        ``Procedures''.
  (b) Sanctions.--Section 60114(a)(9) is further amended by striking 
``60120, 60122, and 60123'' and inserting ``60120 and 60122''.

 SEC. 12. TECHNICAL SAFETY STANDARDS COMMITTEES.

  (a) Peer Review.--Section 60115(a) is amended by adding at the end 
the following: ``The Committees shall serve as peer review committees 
for carrying out this chapter. Peer reviews conducted by the Committees 
shall be treated for purposes of all Federal laws relating to risk 
assessment and peer review (including laws approved after the date of 
the enactment of the Pipeline Safety Act of 1995) as meeting any peer 
review requirements of such laws.''.
  (b) Composition and Appointment.--Section 60115(b) is amended--
          (1) in paragraph (1) by inserting ``or risk management'' 
        before the period at the end of the last sentence;
          (2) in paragraph (2) by inserting ``or risk management'' 
        before the period at the end of the last sentence;
          (3) in paragraph (3)(B) by striking ``4'' and inserting 
        ``5'';
          (4) in paragraph (3)(C) by striking ``6'' and inserting 
        ``5'';
          (5) in paragraph (4)(B) by adding at the end the following: 
        ``At least 1 of the individuals selected for each committee 
        under paragraph (3)(B) must have education, background, or 
        experience in risk assessment and cost-benefit analysis. The 
        Secretary shall consult with the national organizations 
        representing the owners and operators of pipeline facilities 
        before selecting individuals under paragraph (3)(B).''; and
          (6) in paragraph (4)(C) by inserting after the first sentence 
        the following: ``At least 1 of the individuals selected for 
        each committee under paragraph (3)(C) must have education, 
        background, or experience in risk assessment and cost-benefit 
        analysis.''.
  (c) Committee Reports.--Section 60115(c) is amended--
          (1) by inserting ``or regulatory requirement'' after 
        ``standard'' each place it appears in paragraphs (1), (2), and 
        (3);
          (2) in paragraph (1)(A) by inserting after ``gas pipeline 
        facilities'' the following: ``, including the risk assessment 
        document, cost-benefit, and other analyses supporting each 
        proposed standard or regulatory requirement'';
          (3) in paragraph (1)(B) by inserting after ``hazardous liquid 
        pipeline facilities'' the following: ``, including the risk 
        assessment document, cost-benefit, and other analyses 
        supporting each proposed standard or regulatory requirement''; 
        and
          (4) in paragraph (2)--
                  (A) by inserting ``and supporting analyses'' before 
                the first comma in the first sentence;
                  (B) by inserting ``and submit to the Secretary'' 
                after ``prepare'' in the first sentence;
                  (C) by inserting ``cost effectiveness,'' after 
                ``reasonableness,'' in the first sentence;
                  (D) by inserting ``together with recommended 
                actions'' before the period at the end of the first 
                sentence; and
                  (E) by inserting ``any recommended actions and'' 
                after ``including'' in the second sentence.
  (d) Proposed Committee Standards and Regulatory Requirements.--
Section 60115(d)(1) is amended by inserting ``or regulatory 
requirement'' after ``standard'' each place it appears;
  (e) Meetings.--Section 60115(e) is amended by striking ``twice'' and 
inserting ``4 times''.
  (f) Expenses.--Section 60115(f) is amended--
          (1) in the subsection heading by striking ``Pay and'';
          (2) by striking the first two sentences; and
          (3) by inserting ``of a committee under this section'' after 
        ``A member''.

SEC. 13. PUBLIC EDUCATION PROGRAMS.

  Section 60116 is amended--
          (1) by striking ``person transporting gas'' and inserting 
        ``owner or operator of a gas pipeline facility'';
          (2) by inserting ``the use of damage prevention (`one-call') 
        systems prior to excavation,'' after ``educate the public on''; 
        and
          (3) by inserting a comma after ``gas leaks''.

SEC. 14. ADMINISTRATIVE.

  Section 60117 is amended by adding at the end the following:
  ``(k) Authority for Cooperative Agreements.--To carry out this 
chapter, the Secretary may enter into grants, cooperative agreements, 
and other transactions with any person, agency, or instrumentality of 
the United States, any unit of State or local government, any 
educational institution, and any other entity to further the objectives 
of this chapter. Such objectives include, but are not limited to, the 
development, improvement, and promotion of one-call damage prevention 
programs, research, risk assessment, and mapping.''.

 SEC. 15. COMPLIANCE AND WAIVERS.

  Section 60118 is amended by adding at the end the following:
  ``(e) Compliance With Risk Management Plans.--Owners and operators 
that are participating in the demonstration project under section 60127 
shall be considered to be in compliance with any prescribed safety 
standard or regulatory requirement that is covered by an approved plan 
under section 60127.''.

SEC. 16. DAMAGE REPORTING.

  Section 60123(d)(2) is amended--
          (1) by striking ``or'' at the end of subparagraph (A);
          (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
          (3) by inserting after subparagraph (A) the following:
                  ``(B) a pipeline facility and does not report the 
                damage promptly to the operator of the pipeline 
                facility and other appropriate authorities; or''.

 SEC. 17. ANNUAL REPORTS.

  Section 60124 and the item relating to such section in the analysis 
for chapter 601 are repealed.

SEC. 18. POPULATION ENCROACHMENT.

  (a) In General.--Chapter 601 is amended by inserting after section 
60123 the following new section:

``Sec. 60124. Population encroachment

  ``(a) Land Use Recommendations.--The Secretary of Transportation 
shall make available to an appropriate official of each State, as 
determined by the Secretary, the land use recommendations of the 
Transportation Research Board's Special Report 219, entitled `Pipelines 
and Public Safety'.
  ``(b) Evaluation.--The Secretary shall evaluate the recommendations 
in the report referred to in subsection (a), determine to what extent 
the recommendations are being implemented, consider ways to improve 
implementation of the recommendations, and consider other initiatives 
to further improve awareness of local planning and zoning entities 
regarding issues involved with population encroachment in proximity to 
the rights-of-ways of any interstate gas pipeline facility or 
interstate hazardous liquid pipeline facility.''.
  (b) Conforming Amendment.--The analysis for chapter 601 is amended by 
inserting after the item relating to section 60123 the following:

``60124. Population encroachment.''.

SEC. 19. USER FEES.

  Within 6 months after the date of the enactment of this Act, the 
Secretary of Transportation shall transmit to the Congress a report 
analyzing whether the assessment of pipeline safety user fees solely on 
the basis of mileage is the most appropriate measure of the resources 
used by the Department of Transportation in the regulation of pipeline 
transportation, or whether another basis of assessment might be more 
appropriate.
SEC. 20. DUMPING WITHIN PIPELINE RIGHTS-OF-WAY.

  (a) Amendment.--Chapter 601 is amended by adding at the end the 
following new section:

``Sec. 60128. Dumping within pipeline rights-of-way

  ``(a) Prohibition.--No person shall excavate for the purpose of 
unauthorized disposal within the right-of-way of an interstate gas 
pipeline facility or interstate hazardous liquid pipeline facility, or 
any other limited area in the vicinity of any such interstate pipeline 
facility established by the Secretary of Transportation, and dispose 
solid waste therein.
  ``(b) Definition.--For purposes of this section, the term `solid 
waste' has the meaning given such term in section 1004(27) of the Solid 
Waste Disposal Act (42 U.S.C. 6903(27)).''.
  (b) Conforming Amendments.--(1) Sections 60122 and 60123 are amended 
by striking ``or 60118(a)'' and inserting in lieu thereof ``, 60118(a), 
or 60128''.
  (2) The table of sections of chapter 601 is amended by adding at the 
end the following new item:

``60128. Dumping within pipeline rights-of-way.''.

SEC. 21. PREVENTION OF DAMAGE TO PIPELINE FACILITIES.

  Section 60117(a) is amended by inserting after ``and training 
activities'' the following: ``and promotional activities relating to 
prevention of damage to pipeline facilities''.
SEC. 22. TECHNICAL CORRECTIONS.

  (a) Section 60105.--The heading to section 60105 is amended by 
inserting ``pipeline safety program'' after ``State''.
  (b) Section 60106.--The heading to section 60106 is amended by 
inserting ``pipeline safety'' after ``State''.
  (c) Section 60107.--The heading to section 60107 is amended by 
inserting ``pipeline safety'' after ``State''.
  (d) Chapter Analysis.--The analysis for chapter 601 is amended--
          (1) in the item relating to section 60105 by inserting 
        ``pipeline safety program'' after ``State'';
          (2) in the item relating to section 60106 by inserting 
        ``pipeline safety'' after ``State''; and
          (3) in the item relating to section 60107 by inserting 
        ``pipeline safety'' after ``State''.

 SEC. 23. AUTHORIZATIONS OF APPROPRIATION.

  (a) Gas and Hazardous Liquid.--Section 60125(a) is amended to read as 
follows:
  ``(a) Gas and Hazardous Liquid.--Not more than the following amounts 
may be appropriated to the Secretary of Transportation for carrying out 
this chapter (except sections 60107 and 60114(b)) related to gas and 
hazardous liquid:
          ``(1) $9,936,000 for fiscal year 1996.
          ``(2) $10,512,000 for fiscal year 1997.
          ``(3) $11,088,000 for fiscal year 1998.
          ``(4) $11,664,000 for fiscal year 1999.''.
  (b) Repeal.--Section 60125(b) is repealed.
  (c) State Grants.--Section 60125(c)(1) is amended by adding at the 
end the following:
          ``(D) $10,764,000 for fiscal year 1996.
          ``(E) $11,388,000 for fiscal year 1997.
          ``(F) $12,012,000 for fiscal year 1998.
          ``(G) $12,636,000 for fiscal year 1999.''.
                          Purpose and Summary

    H.R. 1323 reauthorizes the Natural Gas Pipeline Safety Act 
of 1968 and the Hazardous Liquid Pipeline Safety Act of 1979. 
These two Acts were combined into Chapter 601 of Title 49 of 
the United States Code during recodification of laws in 1994.

                  Background and Need for Legislation

    There are approximately 1.9 million miles of underground 
pipeline in the U.S., made up of approximately 200,000 miles of 
liquids pipelines; 280,000 miles of gas transmission lines; and 
1.5 million miles of gas distribution lines. These lines 
transport approximately 20 trillion cubic feet of gas per year 
and over 50% of the petroleum products consumed in the U.S. 
These pipelines are regulated by the Office of Pipeline Safety 
(OPS) within the Research and Special Programs Administration 
of the U.S. Department of Transportation (DOT).
    Current Federal pipeline safety regulations cover pipeline 
design, construction, operation and maintenance, emergency 
procedures, pipelines testing and inspections, corrosion 
control, and company reporting requirements. States are largely 
preempted from regulating pipeline safety. However, they may 
assume responsibility for enforcing Federal intrastate pipeline 
regulations and inspection of interstate pipelines. In 
practice, States, vary considerably in their authority and 
capacity to address pipeline safety. By law, States that are 
certified to implement Federal pipeline regulations may receive 
as much as 50% of the personnel and equipment costs of a State 
program. State and local governments may also legislate damage 
prevention laws and land use controls and may sponsor emergency 
preparedness planning and training. In addition, States may 
impose additional standards for the safety regulation of 
intrastate pipelines and facilities as long as such standards 
are compatible with the minimum Federal standards.
    From 1987 to 1994, there was a total of 44 fatalities 
related to liquid and natural gas transmission accidents. This 
is compared to over 42,000 fatalities related to other forms of 
transportation. Despite this fairly good safety record, both 
industry and DOT have supported overhauling the current 
pipeline safety laws to take a more risk-based approach. By 
taking a risk-based approach to pipeline safety, the threat to 
public safety, health and the environment posed by pipelines 
will be reduced and the cost of safety regulation lowered.
    Authorization for the Natural Gas Pipeline and Hazardous 
Liquid Pipeline Safety Acts, now codified as 49 U.S.C. 
Sec. 60101 et seq., expires September 30, 1995. At the hearing 
held by the Subcommittee on Energy and Power, there was general 
agreement between DOT and interested parties that these Acts 
need to be modified before they are reauthorized. Thus, in 
addition to reauthorizing existing pipeline safety laws, H.R. 
1323 adds new risk assessment and risk management elements and 
makes a number of smaller changes.

                  risk assessment and risk management

    The basic concept underlying the Federal pipeline safety 
regulatory program is that a pipeline operator is responsible 
for maintaining the safety of its system while the government 
is responsible for setting minimum safety standards and 
ensuring that operators are in compliance with those standards. 
The current natural gas and liquid pipeline safety laws take 
the approach of providing regulations to address every 
perceived risk. In the past, generally, the Pipeline Safety 
Acts have been modified in each reauthorization to respond to 
the most recent accident. For example, as a result of accidents 
in Kansas which occurred on the service lines leading from the 
street to the home, in 1992 (the most recent reauthorization) 
Congress added requirements that the DOT begin rulemakings on 
regulating customer-owned service lines and requiring excess 
flow valves. As a result of an accident in New York Harbor, 
Congress also required DOT to do a rulemaking on low pressure 
hazardous liquid pipelines.
    DOT has found it difficult to keep up with all the 
Congressional mandates. In fact, a significant number of 
rulemakings DOT was required to perform under both the 1988 and 
1992 reauthorizations have yet to be completed by DOT. Both 
industry and DOT have complained that the concept of just 
layering new Congressional mandates on top of old ones, each of 
which must be applied to all pipelines, ties up a large amount 
of resources and does not allow DOT or the pipelines to 
identify and address those risks which pose the greatest threat 
to the public and the environment. Both DOT and the pipeline 
industry agree that a ``one size fits all'' approach to 
pipeline safety is not cost-effective.
    To address this problem, H.R. 1323 leaves in place current 
pipeline safety regulations, but requires DOT to do a cost 
benefit analysis before issuing any new significant standards. 
Significant standards are defined by the bill as any safety or 
environmental standard or regulatory requirement that is likely 
to result in compliance costs in excess of $25,000,000. The 
risk assessment DOT is required to perform is based largely on 
H.R. 1022, which passed the House on February 28, 1995 by a 
vote of 286-141. H.R. 1323 tailors the risk assessment approach 
taken in H.R. 1022 to the type of activities DOT performs. Use 
of a risk assessment approach to pipeline safety regulations is 
intended to give more prominence to the consideration of the 
relationship between costs and benefits and setting regulatory 
priorities.
    The risk assessment provisions of H.R. 1323 also require 
the Secretary to create a mechanism to allow for 
reconsideration of old standards under the new risk assessment 
requirements. The existing Technical Pipeline Safety Standards 
Committee and the Hazardous Liquid Pipeline Safety Standards 
Committee are designated to act as peer review committees. The 
Peer Review Committees provide expert comment for the record, 
but the final regulatory decision remains with the Secretary. 
Finally, the Secretary's existing authority to act in 
emergencies is not limited.
    Risk assessment and risk management are a framework to 
consolidate and assess all relevant information on safety 
risks. The outcome of the risk assessment and cost benefit 
analysis is not determined by this legislation. However, the 
risk management approach will focus efforts on the most 
significant and realistic risks which should both increase real 
safety and cost effectiveness. Information gained from episodic 
events, such as the recent accident in Edison, New Jersey, is 
to be fully considered in a risk assessment approach. In 
addition, risks which pose a low probability of occurrence but 
have potentially high consequences will be considered. For a 
more detailed explanation of risk assessment refer to the 
Commerce Committee report on H.R. 9, House Report 104-33, Feb. 
14, 1995.

                         demonstration program

    In addition to the new risk assessment provisions, H.R. 
1323, allows for a risk management demonstration program under 
which pipeline operators, on a voluntary basis and with DOT 
approval, may institute pipeline specific risk management 
programs. This would allow pipeline operators to assess the 
risks on their pipelines, create pipeline safety programs which 
are tailored to individual pipelines or pipeline segments, and 
implement those plans. The concept behind risk management is 
that each pipeline operator knows his system best and this 
would give the operator the flexibility to accomplish the goal 
of pipeline safety while utilizing alternative technologies or 
techniques to those contemplated by current regulations.
    To be eligible to participate in the risk management 
demonstration program, a pipeline operator must submit a plan 
which contains elements that are designed to provide an equal 
or greater level of safety than the current regulatory 
standards. The plan must then be approved by DOT before the 
operator can implement it. When participating in the 
demonstration program, pipelines would not be subject to 
applicable standards or regulatory requirements.
    The demonstration program is authorized for four years. The 
purpose of the demonstration phase is to encourage DOT to 
approve a variety of risk management approaches to pipeline 
safety that companies might propose in an effort to gain 
experience and demonstrate the effectiveness of this 
alternative to traditional regulation. DOT would be required to 
report to Congress at the end of the voluntary program. 
Existing regulations would stay in place during the four year 
program for pipelines not participating in the voluntary 
program.

                               user fees

    Since 1986, the Federal pipeline safety program has been 
fully funded by user fees levied on pipeline operators. Those 
user fees are in turn passed on by the pipelines to consumers 
of the products transported by the pipelines. Prior to the 
Edison, New Jersey accident in 1994, pipeline safety user fees 
averaged about $45 per mile. Beginning in 1995, those fees went 
up to $97 per mile and DOT requested an authorization for FY 96 
which would increase those fees to approximately $110 per mile. 
Much criticism has been directed at the operation of the Office 
of Pipeline Safety. The Committee believes that DOT has not 
shown that the increased fees requested by DOT will improve the 
management of the Office or measurably enhance the safety of 
pipelines.
    Thus, H.R. 1323 returns to the FY 1995 authorized level and 
allows the Department of Transportation to collect an 
additional 6% per year above that level. This represents an 
average inflation factor plus a modest increase for each year 
to fund additional responsibilities being placed on DOT by this 
authorization. By 1999, the last year of the reauthorization, 
the Office of Pipeline Safety's budget will have increased a 
total of 24%. The Committee believes that the primary 
responsibility for pipeline safety rests with the pipeline 
operator. It is not the role of DOT to replicate every safety 
activity performed by the pipeline. DOT's role is to make sure 
that pipeline safety regulations are sufficient to protect the 
public health and safety and the environment and that pipeline 
operators are complying with these regulations.
    H.R. 1323 also adds a new section requiring DOT to do an 
analysis of whether the current methodology for allocating user 
fees among pipelines is the most appropriate. Presently, 
pipeline user fees are allocated among the various pipelines 
based on the number of miles of each particular pipeline. Some 
pipelines have asserted that this methodology does not 
accurately reflect the use of the Department's resources by 
each pipeline. A pipeline's share of the cost of safety 
regulation should be proportional to the amount of resources 
used. Thus, DOT is directed to analyze whether the current 
methodology is the most appropriate.

                            other provisions

    H.R. 1323 makes a number of other amendments to Chapter 601 
of Title 49 of the United States Code. It clarifies what areas 
the Secretary should consider including when describing an area 
as being unusually sensitive to environmental damage. It also 
adds a new requirement to make unauthorized dumping on a 
pipeline right-of-way illegal. In addition, the words, ``if 
any'' are reinserted in section 60110(b) of the statute to make 
it clear that the Secretary has the discretion, within the 
rulemaking on excess flow valves, to mandate excess flow valves 
in certain circumstances or to conclude that there were no 
circumstances under which excess flow valves would be mandated. 
Similarly, the language requiring the Secretary to do a 
rulemaking on inspections by internal instrumented inspection 
devices (``smart pigs'') is clarified to make clear that when 
an existing facility is being replaced only the replacement 
sections must be modified to accommodate the passage of a smart 
pig. Finally, the bill removes provisions requiring operator 
certification and annual reports by DOT, creates a new Federal 
crime of knowingly and willfully damaging a pipeline facility 
and not reporting it, and authorizes the Secretary to enter 
into cooperative agreements with States and others to promote 
pipeline safety.

                                Hearings

    The Subcommittee on Energy and Power held a hearing on 
reauthorization of Title 49, Chapter 601 of the United States 
Code on Thursday, March 9, 1995. Testimony was received from: 
Congressman Bob Franks of New Jersey; George Tenley, Associate 
Administrator for Pipeline Safety, Department of 
Transportation; Larry D. Hall, President and Chief Executive 
Officer, KN Energy Inc., on behalf of the Interstate Natural 
Gas Association of America; L.C. Thomas, President, BP Oil 
Pipeline Company, on behalf of the Association of Oil Pipe 
Lines and the American Petroleum Institute; and Commissioner 
Bruce B. Ellsworth, New Hampshire Public Utilities Commission, 
on behalf of the National Association of Regulatory Utility 
Commissioners.

                        Committee Consideration

    The Subcommittee on Energy and Power met on Tuesday, May 
16, 1995, and marked up H.R. 1323 and approved the bill for 
Full Committee consideration as amended. The Full Committee met 
on Wednesday, May 24, 1995, and marked up H.R. 1323 and ordered 
it reported to the House, as amended.

                            Roll Call Votes

    Pursuant to clause 2(l)(2)(B) of rule XI of the Rules of 
the House of Representatives, following are listed the recorded 
votes on the motion to report H.R. 1323 and on amendments 
offered to the measure, including the names of those Members 
voting for and against.
                           roll call vote 43

    Bill: H.R. 1323, Pipeline Safety Act of 1995.
    Amendment: Amendment by Mr. Pallone re: increase the 
authorization levels for FY 1996 through FY 1999.
    Disposition: Not Agreed To, by a roll call vote of 17 ayes 
to 23 nays.

----------------------------------------------------------------------------------------------------------------
    Representative         Aye        Nay      Present       Representative         Aye        Nay      Present 
----------------------------------------------------------------------------------------------------------------
Mr. Bliley............  .........         X   .........  Mr. Dingell...........         X   .........  .........
Mr. Moorhead..........  .........  .........  .........  Mr. Waxman............  .........  .........  .........
Mr. Fields............  .........         X   .........  Mr. Markey............         X   .........  .........
Mr. Oxley.............  .........         X   .........  Mr. Tauzin............  .........         X   .........
Mr. Bilirakis.........  .........         X   .........  Mr. Wyden.............         X   .........  .........
Mr. Schaefer..........  .........         X   .........  Mr. Hall..............  .........         X   .........
Mr. Barton............  .........         X   .........  Mr. Bryant............         X   .........  .........
Mr. Hastert...........  .........         X   .........  Mr. Boucher...........         X   .........  .........
Mr. Upton.............  .........         X   .........  Mr. Manton............         X   .........  .........
Mr. Stearns...........  .........         X   .........  Mr. Towns.............         X   .........  .........
Mr. Paxon.............  .........         X   .........  Mr. Studds............  .........  .........  .........
Mr. Gillmor...........  .........         X   .........  Mr. Pallone...........         X   .........  .........
Mr. Klug..............  .........  .........  .........  Mr. Brown.............         X   .........  .........
Mr. Franks............  .........         X   .........  Mrs. Lincoln..........         X   .........  .........
Mr. Greenwood.........  .........  .........  .........  Mr. Gordon............         X   .........  .........
Mr. Crapo.............  .........         X   .........  Ms. Furse.............         X   .........  .........
Mr. Cox...............  .........         X   .........  Mr. Deutsch...........         X   .........  .........
Mr. Deal..............  .........         X   .........  Mr. Rush..............         X   .........  .........
Mr. Burr..............  .........         X   .........  Ms. Eshoo.............         X   .........  .........
Mr. Bilbray...........  .........         X   .........  Mr. Klink.............         X   .........  .........
Mr. Whitfield.........  .........         X   .........  Mr. Stupak............         X   .........  .........
Mr. Ganske............  .........         X   .........  ......................  .........  .........  .........
Mr. Frisa.............  .........         X   .........  ......................  .........  .........  .........
Mr. Norwood...........  .........  .........  .........  ......................  .........  .........  .........
Mr. White.............  .........         X   .........  ......................  .........  .........  .........
Mr. Coburn............  .........  .........  .........  ......................  .........  .........  .........
----------------------------------------------------------------------------------------------------------------

                           roll call vote 44

    Bill: H.R. 1323, Pipeline Safety Act of 1995.
    Amendment: Amendment by Mr. Markey re: peer review.
    Disposition: Not Agreed To, by a roll call vote of 19 ayes 
to 23 nays.

----------------------------------------------------------------------------------------------------------------
    Representative         Aye        Nay      Present       Representative         Aye        Nay      Present 
----------------------------------------------------------------------------------------------------------------
Mr. Bliley............  .........         X   .........  Mr. Dingell...........         X   .........  .........
Mr. Moorhead..........  .........  .........  .........  Mr. Waxman............         X   .........  .........
Mr. Fields............  .........         X   .........  Mr. Markey............         X   .........  .........
Mr. Oxley.............  .........         X   .........  Mr. Tauzin............         X   .........  .........
Mr. Bilirakis.........  .........  .........  .........  Mr. Wyden.............         X   .........  .........
Mr. Schaefer..........  .........         X   .........  Mr. Hall..............         X   .........  .........
Mr. Barton............  .........         X   .........  Mr. Bryant............         X   .........  .........
Mr. Hastert...........  .........         X   .........  Mr. Boucher...........         X   .........  .........
Mr. Upton.............  .........         X   .........  Mr. Manton............         X   .........  .........
Mr. Stearns...........  .........         X   .........  Mr. Towns.............         X   .........  .........
Mr. Paxon.............  .........         X   .........  Mr. Studds............  .........  .........  .........
Mr. Gillmor...........  .........         X   .........  Mr. Pallone...........         X   .........  .........
Mr. Klug..............  .........  .........  .........  Mr. Brown.............         X   .........  .........
Mr. Franks............  .........         X   .........  Mrs. Lincoln..........         X   .........  .........
Mr. Greenwood.........  .........         X   .........  Mr. Gordon............         X   .........  .........
Mr. Crapo.............  .........         X   .........  Ms. Furse.............         X   .........  .........
Mr. Cox...............  .........         X   .........  Mr. Deutsch...........         X   .........  .........
Mr. Deal..............  .........         X   .........  Mr. Rush..............         X   .........  .........
Mr. Burr..............  .........         X   .........  Ms. Eshoo.............         X   .........  .........
Mr. Bilbray...........  .........         X   .........  Mr. Klink.............  .........  .........  .........
Mr. Whitfield.........  .........         X   .........  Mr. Stupak............         X   .........  .........
Mr. Ganske............  .........         X   .........  ......................  .........  .........  .........
Mr. Frisa.............  .........         X   .........  ......................  .........  .........  .........
Mr. Norwood...........  .........         X   .........  ......................  .........  .........  .........
Mr. White.............  .........         X   .........  ......................  .........  .........  .........
Mr. Coburn............  .........         X   .........  ......................  .........  .........  .........
----------------------------------------------------------------------------------------------------------------

                           roll call vote 45

    Bill: H.R. 1323, Pipeline Safety Act of 1995.
    Motion: Motion by Mr. Bliley to order H.R. 1323 reported to 
the House, amended.
    Disposition: Agreed To, by a roll call vote of 29 ayes to 
13 nays.

----------------------------------------------------------------------------------------------------------------
    Representative         Aye        Nay      Present       Representative         Aye        Nay      Present 
----------------------------------------------------------------------------------------------------------------
Mr. Bliley............         X   .........  .........  Mr. Dingell...........  .........         X   .........
Mr. Moorhead..........  .........  .........  .........  Mr. Waxman............  .........         X   .........
Mr. Fields............         X   .........  .........  Mr. Markey............  .........         X   .........
Mr. Oxley.............         X   .........  .........  Mr. Tauzin............         X   .........  .........
Mr. Bilirakis.........  .........  .........  .........  Mr. Wyden.............  .........         X   .........
Mr. Schaefer..........         X   .........  .........  Mr. Hall..............         X   .........  .........
Mr. Barton............         X   .........  .........  Mr. Bryant............  .........         X   .........
Mr. Hastert...........         X   .........  .........  Mr. Boucher...........  .........         X   .........
Mr. Upton.............         X   .........  .........  Mr. Manton............  .........         X   .........
Mr. Stearns...........         X   .........  .........  Mr. Towns.............         X   .........  .........
Mr. Paxon.............         X   .........  .........  Mr. Studds............  .........  .........  .........
Mr. Gillmor...........         X   .........  .........  Mr. Pallone...........  .........         X   .........
Mr. Klug..............  .........  .........  .........  Mr. Brown.............  .........         X   .........
Mr. Franks............         X   .........  .........  Mrs. Lincoln..........         X   .........  .........
Mr. Greenwood.........         X   .........  .........  Mr. Gordon............         X   .........  .........
Mr. Crapo.............         X   .........  .........  Ms. Furse.............  .........         X   .........
Mr. Cox...............         X   .........  .........  Mr. Deutsch...........         X   .........  .........
Mr. Deal..............         X   .........  .........  Mr. Rush..............  .........         X   .........
Mr. Burr..............         X   .........  .........  Ms. Eshoo.............  .........         X   .........
Mr. Bilbray...........         X   .........  .........  Mr. Klink.............  .........  .........  .........
Mr. Whitfield.........         X   .........  .........  Mr. Stupak............  .........         X   .........
Mr. Ganske............         X   .........  .........  ......................  .........  .........  .........
Mr. Frisa.............         X   .........  .........  ......................  .........  .........  .........
Mr. Norwood...........         X   .........  .........  ......................  .........  .........  .........
Mr. White.............         X   .........  .........  ......................  .........  .........  .........
Mr. Coburn............         X   .........  .........  ......................  .........  .........  .........
----------------------------------------------------------------------------------------------------------------

                              voice votes

    Bill: H.R. 1323, Pipeline Safety Act of 1995.
    Amendment: Amendment by Mr. Schaefer re: clarify the 
definition on unusual environmentally sensitive areas.
    Disposition: Agree to, by a voice vote.
    Amendment: En Bloc Amendment by Mr. Pallone re: eliminate 
risk assessment and risk management provisions and require DOT 
to do several new rulemakings.
    Disposition: Not agreed to, by a voice vote.
    Amendment: Amendment by Mr. Pallone re: inclusion of 
promotional activities relating to damage prevention
    Disposition: Agreed to, by a voice vote.
                      Committee Oversight Findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, the Subcommittee on Energy and 
Power held oversight and legislative hearings and made findings 
that are reflected in this report.

              Committee on Government Reform and Oversight

    Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of 
the House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform and Oversight.

                        Committee Cost Estimate

    In compliance with clause 7(a) of rule XIII of the Rules of 
the House of Representatives, the Committee believes that 
enactment of H.R. 1323 would result in no additional costs to 
the Federal Government.

                  Congressional Budget Office Estimate

    Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of 
the House of Representatives, following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
403 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, D.C., May 25, 1995.
Hon. Thomas J. Bliley, Jr.,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1323, the Pipeline 
Safety Act of 1995.
    Enactment of H.R. 1323 should affect direct spending and 
receipts. Therefore, pay-as-you-go procedures would apply to 
the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely.
                                                   June E. O'Neill.
    Enclosure.
               congressional budget office cost estimate

    1. Bill number: H.R. 1323.
    2. Bill title: Pipeline Safety Act of 1995.
    3. Bill status: As ordered reported by the House Committee 
on Commerce on May 24, 1995.
    4. Bill purpose: H.R. 1323 would:
          Authorize a total of $90 million to be appropriated 
        for the gas and hazardous liquid pipeline safety 
        programs and the pipeline safety grant program for 
        fiscal years 1996 through 1999,
          Require the Secretary of Transportation to conduct 
        benefit and cost analyses of new pipeline safety 
        standards and regulations which have a compliance cost 
        of greater than $25 million per year,
          Make technical changes to the pipeline safety 
        program,
          Establish a risk management demonstration project,
          Require the Secretary of Transportation to issue a 
        report on pipeline user fees,
          Impose a criminal penalty on all excavators who do 
        not report damaged pipeline facilities to the 
        appropriate authorities, and
          Impose criminal and civil penalties on individuals 
        who excavate and dispose solid waste on a pipeline 
        right-of-way without authorization.
    5. Estimated cost to the Federal Government: For purposes 
of this estimate, CBO assumes that the full amount authorized 
for pipeline safety programs would be appropriated. 
Implementing H.R. 1323 would not result in any change in net 
federal spending because the Department of Transportation 
collects fees to offset pipeline safety funding. In fiscal year 
1995, funding and fees for pipeline safety (excluding oil 
pollution activities) were $35 million. If the 1996 
appropriation equals the authorization, funding and fees would 
drop to $21 million. (The appropriations bill is charged with 
the level of new funding and any change in the level of fees.) 
Even though the bill's authorizations are lower than the 1995 
funding level, they are above the 1990 through 1994 funding 
levels of $10 million to $17 million.
    CBO estimates that the cost of the report on user fees 
would be insignificant, and that the new civil and criminal 
penalties that would be established would not result in any 
significant receipts. If criminal fines are collected, they 
would be deposited in the Crime Victims Fund and spent the 
following year.
    6. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enactment 
of H.R. 1323 could increase penalty collections and spending 
from the Crime Victims Fund. Therefore, pay-as-you-go 
procedures would apply to the bill. However, CBO estimates that 
any increase in direct spending or receipts would be less than 
$500,000 per year.
    The pay-as-you-go effects of the bill are as follows:

------------------------------------------------------------------------
                                       1996         1997         1998   
------------------------------------------------------------------------
Change in outlays................            0            0            0
Change in receipts...............            0            0            0
------------------------------------------------------------------------

    7. Estimated cost to State and local governments: Of the 
$90 million four-year authorization, $47 million is for state 
pipeline safety grants. States would be required to contribute 
an additional $47 million to comply with the 50 percent 
matching requirement.
    8. Estimate comparison: None.
    9. Previous CBO estimate: On April 7, 1995, CBO transmitted 
a cost estimate for H.R. 1323, the Pipeline Safety Act of 1995, 
as ordered reported by the House Committee on Transportation 
and Infrastructure on April 5, 1995. The two versions of the 
bill are similar; however, the Commerce Committee version 
imposes additional civil and criminal penalties and requires a 
report on user fees. CBO estimates that these provisions would 
not have any significant budgetary impact.
    10. Estimate prepared by: John Patterson.
    11. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.
                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds that the bill 
would have no inflationary impact.

             Section-by-Section Analysis of the Legislation

                         Section 1. Short Title

    This section establishes the short title of the bill as the 
Pipeline Safety Act of 1995.

                         Section 2. References

    This section provides that amendments and references in the 
bill are to sections and provisions in Title 49, United States 
Code. The ``Secretary'' means the Secretary of Transportation.

        Section 3. Analysis of Risk Reduction Benefits and Costs

    The section adds a new section, 60127, to provide for risk 
assessment and cost-benefit analysis for new significant 
standards or regulatory requirements promulgated by the 
Secretary. The risk assessment analysis contained in Section 3 
embraces the core concepts of H.R. 1022, the Risk Assessment 
and Cost-Benefit Act of 1995, as passed by the House. The 
approach is tailored directly to the pipeline safety program.
    Under subsection (a) no final significant standard or 
regulatory requirement may be promulgated under sections 
60101(b), 60102, 60103, 60108, 60109, 60110, or 60113, unless 
the Secretary certifies that an analysis of risk reduction 
benefits and costs has been conducted; certifies that the 
incremental risk reduction or other benefits of the option 
chosen justifies and is reasonably related to its incremental 
costs; and explains why other options identified or considered 
were found to be either less cost-effective or provided less 
flexibility. Subsection (b) provides that in analyzing risk 
reduction benefits or costs, the Secretary shall identify the 
various regulatory and non-regulatory options that were 
considered; analyze the incremental costs and benefits of the 
proposed standard or regulatory requirement; provide technical 
data or other information upon which the standard or regulatory 
requirement is based; and include a statement that places in 
context the nature and magnitude of the risk to be addressed 
and the residual risks likely to remain for each alternative 
identified or considered.
    Subsection (c) provides that risk assessment documents 
prepared by the Secretary must include certain minimum 
requirements. These requirements are: the best estimate for 
impacts addressed and the reasonable range of scientific 
uncertainties; a statement of any significant substitution risk 
to public safety and the environment; and a statement that 
places in context the nature and magnitude of risks to human 
health, safety, or the environment. Statements that place in 
context the nature and magnitude of risks to public safety or 
the environment shall provide comparisons with estimates of 
greater, lesser, and substantially equivalent risks that are 
familiar to and routinely encountered by the general public, as 
well as other risks and comparisons of those risks with other 
similar risks regulated by the Department are required by 
subsection (d).
    Subsection (e) requires, for any significant standard or 
regulatory requirement, the Secretary to submit risk assessment 
documents and cost-benefit analyses for review to the Technical 
Pipeline Safety Standards Committee, the Hazardous Liquid 
Pipeline Safety Standards Committee, or both as appropriate. 
The documents shall also be available for public review. The 
Secretary must provide a written response to all peer review 
comments received from the panels and may revise the risk 
assessment and cost-benefit analysis prior to determining 
whether a significant standard or regulatory requirement should 
be promulgated.
    The Secretary may suspend analysis of risk reduction 
benefits and costs for the duration of an emergency. Finally, 
the Secretary is required to report by March 31, 1999 to 
Congress on the application of the principles of analyses of 
risk reduction benefits and costs and risk assessment and their 
effect on pipeline safety.

                         Section 4. Definitions

    Subsection (a) amends the definition of ``transporting 
gas'' to original law prior to recodification. In addition, it 
defines for the first time such terms as ``best estimate'', 
``benefits'', ``costs'', ``risk assessment document'', ``risk 
management'', ``risk management plan'', and ``substitution 
risk''. ``Significant standard or regulatory requirement'' is 
defined as a safety or environmental standard or regulatory 
requirement or closely related group of standards or 
requirements that is likely to result in annualized compliance 
costs of more than $25 million.
    Subsection (b) amends section 60101(b)(2) to provide that 
the Secretary shall define the term ``regulated gathering 
line'' but only if it is appropriate to do so.

                      Section 5. General Authority

    Section 5 makes a number of changes to Section 60102. For 
example, section 60102(a) is amended to provide that operators 
of facilities must be qualified, but not certified, and must be 
able to recognize and react to abnormal operating conditions 
that may indicate dangerous situations. Recommendations of the 
Technical Pipeline Safety Standards Committee or the Hazardous 
Liquid Pipeline Safety Standards Committee must now be 
considered in setting minimum safety standards. A provision 
directing the Secretary to set minimum standards requiring 
operators of gathering lines that are not regulated to maintain 
an inventory of appropriate information is struck. Section 
60102(f) currently provides that new pipeline facilities must, 
to the extent practicable, accommodate instrumented internal 
inspection devices (``smart pigs''). Section 5 of H.R. 1323 
clarifies that section to provide that when pipe is being 
replaced, it is only the replaced section of pipe that must 
accommodate the smart pigs. Finally, Section 5 makes various 
technical changes to section 60102 and adds a new section 
60102(l) to direct the Secretary to update incorporated 
industry standards, as appropriate and practicable.
                       section 6. risk management

    A new section, 60127, is created by Section 6 to provide 
for a Risk Management Demonstration Project. Under this 
project, the Secretary shall invite owners and operators of 
pipelines to submit pipeline safety plans tailored to a 
particular pipeline or segment of pipeline, and which contain 
elements designed to achieve an equivalent or greater overall 
level of safety. During the demonstration project, the 
Secretary may exempt participating pipelines from compliance 
with some or all standards and regulations that would otherwise 
apply, including those promulgated during the demonstration 
project. The Secretary is allowed to suspend participation in 
the program in the case of an emergency. Finally, the Secretary 
is required to submit a report to Congress evaluating the 
project and recommending whether the project should be made 
permanent by March 31, 1999.

                 section 7. inspection and maintenance

    This section strikes the requirement in section 60108 that 
the Secretary inspect, every two years, the inspection and 
maintenance plans each pipeline operator is required to 
maintain. Instead, the Secretary may determine the frequency of 
inspections. This section also clarifies that ``waters'' where 
underwater pipelines are subject to inspections means areas 
where a substantial likelihood of commercial navigation exists.

section 8. high density population areas and environmentally sensitive 
                                 areas

    This section conforms the definition of ``waters'' as in 
Section 7 above. It also narrows the factors which the 
Secretary can look at in determining if an area can be 
described as unusually sensitive to environmental damage. The 
factors listed in earlier versions of the Act were overly 
broad.

                     section 9. excess flow valves

    Section 60110 is expanded by this section by providing that 
the notification from natural gas operators to customers having 
lines in which excess flow valves are not required, but can be 
installed, shall include costs associated with maintenance and 
replacement as well as installation. The section also provides 
that the Secretary may adopt industry accepted performance 
standards for excess flow valves.

          section 10. customer-owned natural gas service lines

    This section removes the requirement in section 60113 that 
the Secretary take actions to promote adoption of measures to 
improve safety of customer-owned natural gas service lines.

               section 11. one-call notification systems

    Technical and recodification errors to section 60114 are 
made by this section. In addition, the requirement that a State 
one-call program must include criminal penalties in order to 
receive DOT grants under this section is deleted.

           section 12. technical safety standards committees

    This section provides that the existing Technical Safety 
Standards Committees shall serve as peer review committees for 
purposes of all pipeline safety regulations which must undergo 
risk assessment and peer review. The membership of the 
committees is modified so that each committee is composed of 5 
individuals each from government, industry, and the public. 
Thus, the number of industry representatives on the Committee 
is increased from 4 to 5 and the number of representatives from 
the general public is reduced from 6 to 5. In addition, at 
least one of the industry and one of the public members must 
have experience in risk assessment and cost-benefit analysis. 
All risk assessment documents, cost-benefit, and other analyses 
supporting proposed standards must be submitted to the 
Committees for review. Finally the number of meetings held by 
the Committees is increased from two to four per year.

                 section 13. public education programs

    A technical correction to section 60116 is made by this 
section. In addition, the public education programs carried out 
by natural gas owners and operators are expanded to include the 
use of one-call systems prior to excavation to prevent pipeline 
damage.

                       section 14. administrative

    Section 60117 is amended to authorize the Secretary to 
enter into grants, cooperative agreements, and other 
transactions with any person, agency, State and local 
government, educational institution, or other entity. Further, 
the Secretary is permitted to provide funding to a one-call 
program which is not operated by a State.

                   section 15. compliance and waivers

    Section 15 clarifies in section 60118 that owners and 
operators who utilize an approved risk management plan under 
the Risk Management Demonstration Project in section 60127 are 
to be considered in compliance with standards and regulatory 
requirements covered by the plan.

                      Section 16. Damage Reporting

    Section 16 creates in section 60123 a new Federal crime of 
knowingly and willfully damaging a pipeline facility and not 
promptly reporting the damage to the pipeline operator and 
other appropriate authorities.
                       Section 17. Annual Reports

    Section 60124 which requires annual reports to be submitted 
to Congress is repealed.

                  Section 18. Population Encroachment

    A new section, 60124, is created to require the Secretary 
to make available to State pipeline officials the land use 
recommendations from the Transportation Research Board's 
Special Report entitled ``Pipelines and Public Safety.'' This 
section also directs the Secretary to evaluate those 
recommendations, determine to what extent they are being 
implemented, consider ways to improve implementation and 
consider other initiatives to improve awareness of local 
planning and zoning entities regarding population encroachment 
in proximity to rights-of-ways of interstate pipeline 
facilities.

                         Section 19. User Fees

    Section 19 requires the Secretary of Transportation to 
analyze whether the current methodology for allocating user 
fees among pipelines is an accurate measure of the resources 
used to regulate pipeline safety. This provision is intended to 
ensure that fees charged are proportional to services rendered.

           Section 20. Dumping Within Pipeline Rights-of-Way

    Section 20 prohibits unauthorized dumping in pipeline 
rights-of-way. This section would allow the Secretary to seek 
the civil or criminal penalties already provided for in the 
pipeline safety acts for violations of this section.

        Section 21. Prevention of Damage to Pipeline Facilities

    This new section allows the Secretary undertake promotional 
activities that help prevent damage to pipeline facilities.

                   Section 22. Technical Corrections

    Various technical corrections to sections of Chapter 601 
are made by this section.

              Section 23. Authorization of Appropriations

    Gas and hazardous liquid activities are authorized at the 
following levels:
          $9,936,000 for Fiscal Year 1996.
          $10,512,000 for Fiscal Year 1997.
          $11,088,000 for Fiscal Year 1998.
          $11,664,000 for Fiscal Year 1999.
    DOT is authorized for State Grants:
          $10,764,000 for Fiscal Year 1996
          $11,388,000 for Fiscal Year 1997.
          $12,012,000 for Fiscal Year 1998.
          $12,636,000 for Fiscal Year 1999.
         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

              CHAPTER 601 OF TITLE 49, UNITED STATES CODE

                          CHAPTER 601--SAFETY
Sec.
60101.  Definitions.
     * * * * * * *
60105.  State pipeline safety program certifications.
60106.  State pipeline safety agreements.
60107.  State pipeline safety grants.
     * * * * * * *
[60124.  Annual reports.]
60124.  Population encroachment.
60125.  Authorization of appropriations.
60126.  Analysis of risk reduction benefits and costs.
60127.  Risk management.
60128.  Dumping within pipeline rights-of-way.
Sec. 60101. Definitions

  (a) In this chapter--
          (1) * * *
          * * * * * * *
          (21) ``transporting gas''--
                  (A) means the gathering, transmission, or 
                distribution of gas by pipeline, or the storage 
                of gas, in interstate or foreign commerce; but
                  [(B) does not include gathering gas in a 
                rural area outside a populated area designated 
                by the Secretary as a nonrural area.]
                  (B) does not include the gathering of gas, 
                other than gathering through regulated 
                gathering lines, in those rural locations that 
                are outside the limits of any incorporated or 
                unincorporated city, town, or village, or any 
                other designated residential or commercial area 
                (such as a subdivision, business, shopping 
                center, or community development) or any 
                similar populated area which the Secretary of 
                Transportation may define as a nonrural area; 
                but
                  (C) includes the movement of gas through 
                regulated gathering lines.
          * * * * * * *
          (23) ``best estimate'' means a scientifically 
        appropriate estimate which is based, to the extent 
        feasible, on one of the following:
                  (A) Central estimates of risk using the most 
                plausible assumptions.
                  (B) An approach which combines multiple 
                estimates based on different scenarios and 
                weighs the probability of each scenario.
                  (C) Any other methodology designed to provide 
                the most unbiased representation of the most 
                plausible level of risk, given the current 
                scientific information available to the 
                Secretary.
          (24) ``benefits'' means the reasonably identifiable 
        significant health, safety, environmental, social, and 
        economic benefits that are expected to result directly 
        or indirectly from implementation of a standard, 
        regulatory requirement, or option.
          (25) ``costs'' means the direct and indirect costs to 
        the United States Government, to State, local, and 
        tribal governments, and to the private sector, wage 
        earners, consumers, and the economy of implementing and 
        complying with a standard, regulatory requirement, or 
        option.
          (26) ``risk assessment document'' means a document 
        containing--
                  (A) an explanation of how hazards associated 
                with a substance, activity, or condition have 
                been identified, quantified, and assessed; and
                  (B) a statement by the preparer of the 
                document accepting the findings of the 
                document.
          (27) ``risk management'' means the systematic 
        application, by the owner or operator of a pipeline 
        facility, of management policies, procedures, finite 
        resources, and practices to the tasks of analyzing, 
        assessing, and controlling risk in order to protect 
        employees, the general public, the environment, and 
        pipeline facilities.
          (28) ``risk management plan'' means a management plan 
        utilized by a gas or hazardous liquid pipeline facility 
        owner or operator that encompasses risk management.
          (29) ``significant standard or regulatory 
        requirement'' means any safety or environmental 
        standard or regulatory requirement, or closely related 
        group of safety or environmental standards or 
        regulatory requirements, that is likely to result in 
        annualized compliance costs in excess of $25,000,000.
          (30) ``substitution risk'' means a potential risk to 
        public safety or the environment from a significant 
        standard, regulatory requirement, or option designed to 
        decrease other risks.
  (b) Gathering Lines.--(1) * * *
  (2)(A) Not later than October 24, 1995, the Secretary, if 
appropriate, shall define by regulation the term ``regulated 
gathering line''. In defining the term, the Secretary shall 
consider factors such as location, length of line from the well 
site, operating pressure, throughput, and the composition of 
the transported gas or hazardous liquid, as appropriate, in 
deciding on the types of lines that functionally are gathering 
but should be regulated under this chapter because of specific 
physical characteristics.
          * * * * * * *
Sec. 60102. General authority

  (a)[(1)] Minimum Safety Standards.--The Secretary of 
Transportation shall prescribe minimum safety standards for 
pipeline transportation and for pipeline facilities. The 
standards--
          [(A)] (1) apply to [transporters of gas and hazardous 
        liquid and to] owners and operators of pipeline 
        facilities;
          [(B)] (2) may apply to the design, installation, 
        inspection, emergency plans and procedures, testing, 
        construction, extension, operation, replacement, and 
        maintenance of pipeline facilities; and
          [(C) shall include a requirement that all individuals 
        responsible for the operation and maintenance of 
        pipeline facilities be tested for qualifications and 
        certified to operate and maintain those facilities.
  [(2) As the Secretary considers appropriate, the operator of 
a pipeline facility may make the certification under paragraph 
(1)(C) of this subsection. Testing and certification under 
paragraph (1)(C) shall address the ability to recognize and 
react appropriately to abnormal operating conditions that may 
indicate a dangerous situation or a condition exceeding design 
limits.]
          (3) shall include a requirement that all individuals 
        who operate and maintain pipeline facilities must be 
        qualified.
Such qualifications shall address the ability to recognize and 
react appropriately to abnormal operating conditions that may 
indicate a dangerous situation or a condition exceeding design 
limits. The operator of the pipeline facility shall ensure that 
employees who operate and maintain the facility are qualified.
  (b) Practicability and Safety Needs Standards.--A standard 
prescribed under subsection (a) of this section shall be 
practicable and designed to meet the need for gas pipeline 
safety, for safely transporting hazardous liquid, and for 
protecting the environment. Except as provided in [section 
60103] sections 60103 and 60112 of this title, when prescribing 
the standard the Secretary shall consider--
          (1) relevant available--
                  (A) gas pipeline safety information; or
                  (B) hazardous liquid pipeline safety 
                information;
          (2) the appropriateness of the standard for the 
        particular type of pipeline transportation or facility;
          (3) the reasonableness of the standard; [and]
          (4) the extent to which the standard will [contribute 
        to] benefit public safety and the protection of the 
        environment[.]; and
          (5) the comments and recommendations of the Technical 
        Pipeline Safety Standards Committee, the Technical 
        Hazardous Liquid Pipeline Safety Standards Committee, 
        or both, as appropriate.
          * * * * * * *
  (d) Facility Operation Information Standards.--The Secretary 
shall prescribe minimum standards requiring an operator of a 
pipeline facility subject to this chapter to maintain, to the 
extent practicable, information related to operating the 
facility as required by the standards prescribed under this 
chapter and, when requested, [to provide the information] to 
make the information available to the Secretary and an 
appropriate State official as determined by the Secretary. The 
information shall include--
          (1) * * *
          * * * * * * *
  (e) Pipe Inventory Standards.--The Secretary shall prescribe 
minimum standards requiring an operator of a pipeline facility 
subject to this chapter [and, to the extent the Secretary 
considers necessary, an operator of a gathering line that is 
not a regulated gathering line (as defined under section 
60101(b)(2) of this title),] to maintain for the Secretary, to 
the extent practicable, an inventory with appropriate 
information about the types of pipe used for the [transmission] 
transportation of gas or hazardous liquid, as appropriate, in 
the operator''s system and additional information, including 
the material''s history and the leak history of the pipe. The 
inventory--
          (1) * * *
          * * * * * * *
  (f) Standards as Accommodating ``Smart Pigs''.--[(1) The 
Secretary shall prescribe minimum safety standards requiring 
that the design and construction of a new gas pipeline 
transmission facility or hazardous liquid pipeline facility, 
and the required replacement of an existing gas pipeline 
transmission facility, hazardous liquid pipeline facility, or 
equipment, be carried out, to the extent practicable, in a way 
that accommodates the passage through the facility of an 
instrumented internal inspection device (commonly referred to 
as a ``smart pig''). The Secretary may apply the standard to an 
existing gas or hazardous liquid transmission facility and 
require the facility to be changed to allow the facility to be 
inspected with an instrumented internal inspection device if 
the basic construction of the facility will accommodate the 
device.]
          (1) Minimum safety standards.--The Secretary shall 
        prescribe minimum safety standards requiring that the 
        design and construction of a new gas or hazardous 
        liquid pipeline transmission facility be carried out, 
        to the extent practicable, in a way that accommodates 
        the passage through the facility of an instrumented 
        internal inspection device (commonly referred to as a 
        `smart pig'). The Secretary shall also prescribe 
        minimum safety standards requiring that when a segment 
        of an existing gas or hazardous liquid pipeline 
        transmission facility is replaced, to the extent 
        practicable, the replacement segment can accommodate 
        the passage of an instrumented internal inspection 
        device. The Secretary may apply the standard to an 
        existing gas or hazardous liquid facility and require 
        the facility to be changed to allow the facility to be 
        inspected with an instrumented internal inspection 
        device if the basic construction of the facility will 
        accommodate the device.
          (2) Periodic inspections.--Not later than October 24, 
        1995, the Secretary shall prescribe, if necessary, 
        additional regulations requiring the periodic 
        inspection of each pipeline the operator of the 
        pipeline identifies under section 60109 of this title. 
        The regulations shall include any circumstances under 
        which an inspection shall be conducted with an 
        instrumented internal inspection device and, if the 
        device is not required, use of an inspection method 
        that is at least as effective as using the device in 
        providing for the safety of the pipeline.
          * * * * * * *
  (l) Updating Standards.--The Secretary shall, to the extent 
appropriate and practicable, update incorporated industry 
standards that have been adopted as part of the Federal 
pipeline safety regulatory program.
          * * * * * * *

Sec. 60105. State pipeline safety program certifications

  (a) * * *
          * * * * * * *

Sec. 60106. State pipeline safety agreements

  (a) * * *
          * * * * * * *

Sec. 60107. State pipeline safety grants

  (a) * * *
          * * * * * * *

Sec. 60108. Inspection and maintenance

  (a) Plans.--(1) Each person [transporting gas or hazardous 
liquid or] owning or operating an intrastate gas pipeline 
facility or hazardous liquid pipeline facility shall carry out 
a current written plan (including any changes) for inspection 
and maintenance of each facility used in the transportation and 
owned or operated by the person. A copy of the plan shall be 
kept at any office of the person the Secretary of 
Transportation considers appropriate. The Secretary also may 
require a person [transporting gas or hazardous liquid or] 
owning or operating a pipeline facility subject to this chapter 
to file a plan for inspection and maintenance for approval.
  (b) Inspection and Testing.--(1) * * *
          * * * * * * *
  (2) To the extent and in amounts provided in advance in an 
appropriation law, the Secretary shall decide on the frequency 
of inspection under paragraph (1) of this subsection. [However, 
an inspection must occur at least once every 2 years.] The 
Secretary may reduce the frequency of an inspection of a master 
meter system.
  (c) Pipeline Facilities Offshore and in [Navigable Waters] 
Other Waters.--(1) In this subsection--
          (A) ``abandoned'' means permanently removed from 
        service.
          (B) ``pipeline facility'' includes an underwater 
        abandoned pipeline facility.
          (C) if a pipeline facility has no operator, the most 
        recent operator of the facility is deemed to be the 
        operator of the facility.
  (2)(A) Not later than May 16, 1993, on the basis of 
experience with the inspections under section 3(h)(1)(A) of the 
Natural Gas Pipeline Safety Act of 1968 or section 203(l 
)(1)(A) of the Hazardous Liquid Pipeline Safety Act of 1979, as 
appropriate, and any other information available to the 
Secretary, the Secretary shall establish a mandatory, 
systematic, and, where appropriate, periodic inspection program 
of--
          (i) all offshore pipeline facilities; and
          [(ii) any other pipeline facility crossing under, 
        over, or through navigable waters (as defined by the 
        Secretary) if the Secretary decides that the location 
        of the facility in those navigable waters could pose a 
        hazard to navigation or public safety.]
          (ii) any other pipeline facility crossing under, 
        over, or through waters where a substantial likelihood 
        of commercial navigation exists if the Secretary 
        decides that the location of the facility in those 
        waters could pose a hazard to navigation or public 
        safety.

Sec. 60109. High-density population areas and environmentally sensitive 
                    areas

  (a) Identification Requirements.--Not later than October 24, 
1994, the Secretary of Transportation shall prescribe 
regulations that--
          (1) establish criteria for identifying--
                  (A) by operators of gas pipeline facilities, 
                each gas pipeline facility (except a natural 
                gas distribution line) located in a high-
                density population area; and
                  (B) by operators of hazardous liquid pipeline 
                facilities and gathering lines--
                          (i) each hazardous liquid pipeline 
                        facility, whether otherwise subject to 
                        this chapter, that crosses [a navigable 
                        waterway (as the Secretary defines by 
                        regulation)] waters where a substantial 
                        likelihood of commercial navigation 
                        exists or that is located in an area 
                        described in the criteria as a high-
                        density population area; and
                          (ii) each hazardous liquid pipeline 
                        facility and gathering line, whether 
                        otherwise subject to this chapter, 
                        located in an area that the Secretary, 
                        in consultation with the Administrator 
                        of the Environmental Protection Agency, 
                        describes as unusually sensitive to 
                        environmental damage if there is a 
                        hazardous liquid pipeline accident; and
Sec. 60109. High-density population areas and environmentally sensitive 
                    areas

  (a) * * *
  [(b) Areas To Be Included as Unusually Sensitive.--When 
describing an area that is unusually sensitive to environmental 
damage if there is a hazardous liquid pipeline accident, the 
Secretary shall consider including--
          [(1) earthquake zones and areas subject to landslides 
        and other substantial ground movements;
          [(2) areas of likely ground water contamination if a 
        hazardous liquid pipeline facility ruptures;
          [(3) freshwater lakes, rivers, and waterways; and
          [(4) river deltas and other areas subject to soil 
        erosion or subsidence from flooding or other water 
        action where a hazardous liquid pipeline facility is 
        likely to become exposed or undermined.]
  (b) Areas To Be Included as Unusually Sensitive.--When 
describing areas that are unusually sensitive to environmental 
damage if there is a hazardous liquid pipeline accident, the 
Secretary shall consider areas where a pipeline rupture would 
likely cause permanent or long-term environmental damage, 
including--
          (1) locations near pipeline rights-of-way that are 
        critical to drinking water, including intake locations 
        for community water systems and critical sole source 
        aquifer protection areas; and
          (2) locations near pipeline rights-of-way which have 
        been identified as critical wetlands, riverine or 
        estuarine systems, National Parks, wilderness areas, 
        wildlife preservation areas and refuges, wild and 
        scenic rivers, or critical habitat areas for threatened 
        and endangered species.
          * * * * * * *

Sec. 60110. Excess flow valves

  (a) Application.--This section applies only to--
          (1) * * *
          * * * * * * *
  (b) Installation Requirements and Considerations.--Not later 
than April 24, 1994, the Secretary of Transportation shall 
prescribe regulations on the circumstances, if any, under which 
an operator of a natural gas distribution system must install 
excess flow valves in the system. The Secretary shall 
consider--
          (1) the system design pressure;
          (2) the system operating pressure;
          (3) the types of customers to which the distribution 
        system supplies gas, including hospitals, schools, and 
        commercial enterprises;
          (4) the technical feasibility and cost of installing, 
        operating, and maintaining the valve;
          * * * * * * *
  (c) Notification of Availability.--(1) Not later than October 
24, 1994, the Secretary shall prescribe regulations requiring 
an operator of a natural gas distribution system to notify in 
writing its customers having lines in which excess flow valves 
are not required by law but can be installed according to the 
standards prescribed under subsection (e) of this section, of--
          (A) the availability of excess flow valves for 
        installation in the system;
          (B) safety benefits to be derived from installation; 
        and
          (C) costs associated with installation, maintenance, 
        and replacement.
          * * * * * * *
  (e) Performance Standards.--Not later than April 24, 1994, 
the Secretary shall develop standards for the performance of 
excess flow valves used to protect lines in a natural gas 
distribution system. The Secretary may adopt industry accepted 
performance standards in order to comply with this requirement. 
The standards shall be incorporated into regulations the 
Secretary prescribes under this section. All excess flow valves 
shall be installed according to the standards.
          * * * * * * *

Sec. 60113. Customer-owned natural gas service lines

  [(a) Maintenance Information.--]Not later than October 24, 
1993, the Secretary of Transportation shall prescribe 
regulations requiring an operator of a natural gas distribution 
pipeline that does not maintain customer-owned natural gas 
service lines up to building walls to advise its customers of--
          (1) * * *
          * * * * * * *
  [(b) Actions To Promote Safety.--Not later than one year 
after submitting the report required under section 115(b) of 
the Pipeline Safety Act of 1992 (Public Law 102-508, 106 Stat. 
3296), the Secretary, considering the report and in cooperation 
and coordination with appropriate State and local authorities, 
shall take appropriate action to promote the adoption of 
measures to improve the safety of customer-owned natural gas 
service lines.]

Sec. 60114. One-call notification systems

  (a) Minimum Requirements.--The Secretary of Transportation 
shall prescribe regulations providing minimum requirements for 
establishing and operating a one-call notification system for a 
State to adopt that will notify an operator of a pipeline 
facility of activity in the vicinity of the facility that could 
threaten the safety of the facility. The regulations shall 
include the following:
          (1) [a] A requirement that [the system apply to] all 
        areas of the State containing underground pipeline 
        facilities be covered by a system.
          (2) [a] A requirement that a person intending to 
        engage in an activity the Secretary decides could cause 
        physical damage to an underground facility must contact 
        the appropriate system to establish if there are 
        underground facilities present in the area of the 
        intended activity.
          (3) [a] A requirement that all operators of 
        underground pipeline facilities participate in an 
        appropriate one-call notification system.
          (4) [qualifications] Qualifications for an operator 
        of a facility, a private contractor, or a State or 
        local authority to operate a system.
          (5) [procedures] Procedures for advertisement and 
        notice of the availability of a system.
          (6) [a] A requirement about the information to be 
        provided by a person contacting the system under clause 
        (2) of this subsection.
          (7) [a] A requirement for the response of the 
        operator of the system and of the facility after they 
        are contacted by an individual under this subsection.
          (8) [a] A requirement that each State decide whether 
        the system will be toll free.
          (9) [a] A requirement for sanctions substantially the 
        same as provided under sections [60120, 60122, and 
        60123] 60120 and 60122 of this title.
          * * * * * * *

Sec. 60115. Technical safety standards committees

  (a) Organization.--The Technical Pipeline Safety Standards 
Committee and the Technical Hazardous Liquid Pipeline Safety 
Standards Committee are committees in the Department of 
Transportation. The Committees shall serve as peer review 
committees for carrying out this chapter. Peer reviews 
conducted by the Committees shall be treated for purposes of 
all Federal laws relating to risk assessment and peer review 
(including laws approved after the date of the enactment of the 
Pipeline Safety Act of 1995) as meeting any peer review 
requirements of such laws.
  (b) Composition and Appointment.--(1) The Technical Pipeline 
Safety Standards Committee is composed of 15 members appointed 
by the Secretary of Transportation after consulting with public 
and private agencies concerned with the technical aspect of 
transporting gas or operating a gas pipeline facility. Each 
member must be experienced in the safety regulation of 
transporting gas and of gas pipeline facilities or technically 
qualified, by training, experience, or knowledge in at least 
one field of engineering applicable to transporting gas or 
operating a gas pipeline facility, to evaluate gas pipeline 
safety standards or risk management.
  (2) The Technical Hazardous Liquid Pipeline Safety Standards 
Committee is composed of 15 members appointed by the Secretary 
after consulting with public and private agencies concerned 
with the technical aspect of transporting hazardous liquid or 
operating a hazardous liquid pipeline facility. Each member 
must be experienced in the safety regulation of transporting 
hazardous liquid and of hazardous liquid pipeline facilities or 
technically qualified, by training, experience, or knowledge in 
at least one field of engineering applicable to transporting 
hazardous liquid or operating a hazardous liquid pipeline 
facility, to evaluate hazardous liquid pipeline safety 
standards or risk management.
  (3) The members of each committee are appointed as follows:
          (A) 5 individuals selected from departments, 
        agencies, and instrumentalities of the United States 
        Government and of the States.
          (B) [4] 5 individuals selected from the natural gas 
        or hazardous liquid industry, as appropriate, after 
        consulting with industry representatives.
          (C) [6] 5 individuals selected from the general 
        public.
  (4)(A) Two of the individuals selected for each committee 
under paragraph (3)(A) of this subsection must be State 
commissioners. The Secretary shall consult with the national 
organization of State commissions (referred to in section 
10344(f) of this title) before selecting those 2 individuals.
  (B) At least 3 of the individuals selected for each committee 
under paragraph (3)(B) of this subsection must be currently in 
the active operation of natural gas pipelines or hazardous 
liquid pipeline facilities, as appropriate. At least 1 of the 
individuals selected for each committee under paragraph (3)(B) 
must have education, background, or experience in risk 
assessment and cost-benefit analysis. The Secretary shall 
consult with the national organizations representing the owners 
and operators of pipeline facilities before selecting 
individuals under paragraph (3)(B).
  (C) Two of the individuals selected for each committee under 
paragraph (3)(C) of this subsection must have education, 
background, or experience in environmental protection or public 
safety. At least 1 of the individuals selected for each 
committee under paragraph (3)(C) must have education, 
background, or experience in risk assessment and cost-benefit 
analysis. At least one individual selected for each committee 
under paragraph (3)(C) may not have a financial interest in the 
pipeline, petroleum, or natural gas industries.
  (c) Committee Reports on Proposed Standards.--(1) The 
Secretary shall give to--
          (A) the Technical Pipeline Safety Standards Committee 
        each standard or regulatory requirement proposed under 
        this chapter for transporting gas and for gas pipeline 
        facilities, including the risk assessment document, 
        cost-benefit, and other analyses supporting each 
        proposed standard or regulatory requirement; and
          (B) the Technical Hazardous Liquid Pipeline Safety 
        Standards Committee each standard or regulatory 
        requirement proposed under this chapter for 
        transporting hazardous liquid and for hazardous liquid 
        pipeline facilities, including the risk assessment 
        document, cost-benefit, and other analyses supporting 
        each proposed standard or regulatory requirement.
  (2) Not later than 90 days after receiving the proposed 
standard or regulatory requirement and supporting analyses, the 
appropriate committee shall prepare and submit to the Secretary 
a report on the technical feasibility, reasonableness, cost 
effectiveness, and practicability of the proposed standard or 
regulatory requirement together with recommended actions. The 
Secretary shall publish each report, including any recommended 
actions and minority views. The report if timely made is part 
of the proceeding for prescribing the standard or regulatory 
requirement. The Secretary is not bound by the conclusions of 
the committee. However, if the Secretary rejects the 
conclusions of the committee, the Secretary shall publish the 
reasons.
  (3) The Secretary may prescribe a standard or regulatory 
requirement after the end of the 90-day period.
  (d) Proposed Committee Standards and Policy Development 
Recommendations.--(1) The Technical Pipeline Safety Standards 
Committee may propose to the Secretary a safety standard or 
regulatory requirement for transporting gas and for gas 
pipeline facilities. The Technical Hazardous Liquid Pipeline 
Safety Standards Committee may propose to the Secretary a 
safety standard or regulatory requirement for transporting 
hazardous liquid and for hazardous liquid pipeline facilities.
  (e) Meetings.--Each committee shall meet with the Secretary 
at least [twice] 4 times annually. Each committee proceeding 
shall be recorded. The record of the proceeding shall be 
available to the public.
  (f) [Pay and] Expenses.--[The Secretary may establish the pay 
for each member of a committee for each day (including travel 
time) when performing duties of the committee. However, a 
member may not be paid more than the daily equivalent of the 
maximum annual rate of basic pay payable under section 5376 of 
title 5.] A member of a committee under this section is 
entitled to expenses under section 5703 of title 5. A payment 
under this subsection does not make a member an officer or 
employee of the Government. This subsection does not apply to 
members regularly employed by the Government.

Sec. 60116. Public education programs

  Under regulations the Secretary of Transportation prescribes, 
each [person transporting gas] owner or operator of a gas 
pipeline facility shall carry out a program to educate the 
public on the use of damage prevention (``one-call'') systems 
prior to excavation, the possible hazards associated with gas 
leaks, and the importance of reporting gas odors and leaks to 
the appropriate authority. The Secretary may develop material 
suitable for use in the program.

Sec. 60117. Administrative

  (a) General Authority.--To carry out this chapter, the 
Secretary of Transportation may conduct investigations, make 
reports, issue subpenas, conduct hearings, require the 
production of records, take depositions, and conduct research, 
testing, development, demonstration, and training activities 
and promotional activities relating to prevention of damage to 
pipeline facilities. The Secretary may not charge a tuition-
type fee for training State or local government personnel in 
the enforcement of regulations prescribed under this chapter.
          * * * * * * *
  (k) Authority for Cooperative Agreements.--To carry out this 
chapter, the Secretary may enter into grants, cooperative 
agreements, and other transactions with any person, agency, or 
instrumentality of the United States, any unit of State or 
local government, any educational institution, and any other 
entity to further the objectives of this chapter. Such 
objectives include, but are not limited to, the development, 
improvement, and promotion of one-call damage prevention 
programs, research, risk assessment, and mapping.
Sec. 60118. Compliance and waivers

  (a) * * *
          * * * * * * *
  (e) Compliance With Risk Management Plans.--Owners and 
operators that are participating in the demonstration project 
under section 60127 shall be considered to be in compliance 
with any prescribed safety standard or regulatory requirement 
that is covered by an approved plan under section 60127.
          * * * * * * *
Sec. 60122. Civil penalties

  (a) General Penalties.--(1) A person that the Secretary of 
Transportation decides, after written notice and an opportunity 
for a hearing, has violated section 60114(c) [or 60118(a)], 
60118(a), or 60128 of this title or a regulation prescribed or 
order issued under this chapter is liable to the United States 
Government for a civil penalty of not more than $25,000 for 
each violation. A separate violation occurs for each day the 
violation continues. The maximum civil penalty under this 
paragraph for a related series of violations is $500,000.
          * * * * * * *

Sec. 60123. Criminal penalties

  (a) General Penalty.--A person knowingly and willfully 
violating section 60114(c) [or 60118(a)], 60118(a), or 60128 of 
this title or a regulation prescribed or order issued under 
this chapter shall be fined under title 18, imprisoned for not 
more than 5 years, or both.
          * * * * * * *
  (d) Penalty for Not Using One-Call Notification System or Not 
Heeding Location Information or Markings.--A person shall be 
fined under title 18, imprisoned for not more than 5 years, or 
both, if the person knowingly and willfully--
          (1) engages in an excavation activity--
                  (A) without first using an available one-call 
                notification system to establish the location 
                of underground facilities in the excavation 
                area; or
                  (B) without paying attention to appropriate 
                location information or markings the operator 
                of a pipeline facility establishes; and
          (2) subsequently damages--
                  (A) a pipeline facility that results in 
                death, serious bodily harm, or actual damage to 
                property of more than $50,000; [or]
                  (B) a pipeline facility and does not report 
                the damage promptly to the operator of the 
                pipeline facility and other appropriate 
                authorities; or
                  [(B)] (C) a hazardous liquid pipeline 
                facility that results in the release of more 
                than 50 barrels of product.

[Sec. 60124. Annual reports

  [(a) Submission and Contents.--The Secretary of 
Transportation shall submit to Congress not later than August 
15 of each year a report on carrying out this chapter for the 
prior calendar year for gas and a report on carrying out this 
chapter for the prior calendar year for hazardous liquid. Each 
report shall include the following information about the prior 
year for gas or hazardous liquid, as appropriate:
          [(1) a thorough compilation of the leak repairs, 
        accidents, and casualties and a statement of cause when 
        investigated and established by the National 
        Transportation Safety Board.
          [(2) a list of applicable pipeline safety standards 
        prescribed under this chapter including identification 
        of standards prescribed during the year.
          [(3) a summary of the reasons for each waiver granted 
        under section 60118(c) and (d) of this title.
          [(4) an evaluation of the degree of compliance with 
        applicable safety standards, including a list of 
        enforcement actions and compromises of alleged 
        violations by location and company name.
          [(5) a summary of outstanding problems in carrying 
        out this chapter, in order of priority.
          [(6) an analysis and evaluation of--
                  [(A) research activities, including their 
                policy implications, completed as a result of 
                the United States Government and private 
                sponsorship; and
                  [(B) technological progress in safety 
                achieved.
          [(7) a list, with a brief statement of the issues, of 
        completed or pending judicial actions under this 
        chapter.
          [(8) the extent to which technical information was 
        distributed to the scientific community and consumer-
        oriented information was made available to the public.
          [(9) a compilation of certifications filed under 
        section 60105 of thi*s title that were--
                  [(A) in effect; or
                  [(B) rejected in any part by the Secretary 
                and a summary of the reasons for each 
                rejection.
          [(10) a compilation of agreements made under section 
        60106 of this title that were--
                  [(A) in effect; or
                  [(B) ended in any part by the Secretary and a 
                summary of the reasons for ending each 
                agreement.
          [(11) a description of the number and qualifications 
        of State pipeline safety inspectors in each State for 
        which a certification under section 60105 of this title 
        or an agreement under section 60106 of this title is in 
        effect and the number and qualifications of inspectors 
        the Secretary recommends for that State.
          [(12) recommendations for legislation the Secretary 
        considers necessary--
                  [(A) to promote cooperation among the States 
                in improving--
                          [(i) gas pipeline safety; or
                          [(ii) hazardous liquid pipeline 
                        safety programs; and
                  [(B) to strengthen the national gas pipeline 
                safety program.
  [(b) Submission of One Report.--The Secretary may submit one 
report to carry out subsection (a) of this section.]
Sec. 60124. Population encroachment

  (a) Land Use Recommendations.--The Secretary of 
Transportation shall make available to an appropriate official 
of each State, as determined by the Secretary, the land use 
recommendations of the Transportation Research Board's Special 
Report 219, entitled ``Pipelines and Public Safety''.
  (b) Evaluation.--The Secretary shall evaluate the 
recommendations in the report referred to in subsection (a), 
determine to what extent the recommendations are being 
implemented, consider ways to improve implementation of the 
recommendations, and consider other initiatives to further 
improve awareness of local planning and zoning entities 
regarding issues involved with population encroachment in 
proximity to the rights-of-ways of any interstate gas pipeline 
facility or interstate hazardous liquid pipeline facility.
Sec. 60125. Authorization of appropriations

  [(a) Gas.--Not more than the following amounts may be 
appropriated to the Secretary of Transportation to carry out 
this chapter (except sections 60107 and 60114(b)) related to 
gas:
          [(1) $6,857,000 for the fiscal year ending September 
        30, 1993.
          [(2) $7,000,000 for the fiscal year ending September 
        30, 1994.
          [(3) $7,500,000 for the fiscal year ending September 
        30, 1995.]
  (a) Gas and Hazardous Liquid.--Not more than the following 
amounts may be appropriated to the Secretary of Transportation 
for carrying out this chapter (except sections 60107 and 
60114(b)) related to gas and hazardous liquid:
          (1) $9,936,000 for fiscal year 1996.
          (2) $10,512,000 for fiscal year 1997.
          (3) $11,088,000 for fiscal year 1998.
          (4) $11,664,000 for fiscal year 1999.
  [(b) Hazardous Liquid.--Not more than the following amounts 
may be appropriated to the Secretary to carry out this chapter 
(except sections 60107 and 60114(b)) related to hazardous 
liquid:
          [(1) $1,728,500 for the fiscal year ending September 
        30, 1993.
          [(2) $1,866,800 for the fiscal year ending September 
        30, 1994.
          [(3) $2,000,000 for the fiscal year ending September 
        30, 1995.]
  (c) State Grants.--(1) Not more than the following amounts 
may be appropriated to the Secretary to carry out section 60107 
of this title:
          (A) $7,750,000 for the fiscal year ending September 
        30, 1993.
          (B) $9,000,000 for the fiscal year ending September 
        30, 1994.
          (C) $10,000,000 for the fiscal year ending September 
        30, 1995.
          (D) $10,764,000 for fiscal year 1996.
          (E) $11,388,000 for fiscal year 1997.
          (F) $12,012,000 for fiscal year 1998.
          (G) $12,636,000 for fiscal year 1999.
          * * * * * * *
Sec. 60126. Analysis of risk reduction benefits and costs

  (a) Requirement.--No final significant standard or regulatory 
requirement issued under section 60101(b), 60102, 60103, 60108, 
60109, 60110, or 60113 shall be promulgated unless the 
Secretary of Transportation--
          (1) certifies that the Secretary has conducted an 
        analysis of risk reduction benefits and costs that is 
        based on objective and unbiased scientific and economic 
        evaluations of all significant and relevant information 
        and risk assessments provided to the Department of 
        Transportation by interested parties or generated by 
        the Department itself relating to the costs, risks, and 
        risk reduction and other benefits addressed by the 
        standard or requirement;
          (2) certifies that the incremental risk reduction or 
        other benefits of any option chosen will be likely to 
        justify, and be reasonably related to, the incremental 
        costs incurred by State, local, and tribal governments 
        and the Federal Government and other public and private 
        citizens; and
          (3) explains why any other options identified or 
        considered by the Secretary were found either--
                  (A) to be less cost-effective at achieving a 
                substantially equivalent reduction in risk; or
                  (B) to provide less flexibility to State, 
                local, or tribal governments or regulated 
                entities in achieving the otherwise applicable 
                objectives of the standard or requirement, 
                along with a brief explanation of why other 
                options that were identified or considered by 
                the Secretary were found to be less cost-
                effective or less flexible.
  (b) Elements of Analysis.--An analysis of risk reduction 
benefits or costs prepared by the Secretary for a significant 
standard or regulatory requirement, at a minimum, shall--
          (1) identify the various regulatory and nonregulatory 
        options that were considered;
          (2) analyze the incremental costs and incremental 
        risk reduction or other benefits associated with each 
        option identified or considered by the Secretary;
          (3) provide any technical data or other information, 
        including the underlying assumptions, upon which the 
        standard or requirement is based; and
          (4) include a statement that places in context the 
        nature and magnitude of the risks to be addressed and 
        the residual risks likely to remain for each option 
        identified or considered.
Costs and benefits shall be quantified to the extent feasible 
and appropriate and may otherwise be qualitatively described.
  (c) Risk Assessment Documents.--A risk assessment document 
prepared by the Secretary for a significant standard or 
regulatory requirement shall, at a minimum and to the extent 
feasible--
          (1) provide the best estimate for the impacts 
        addressed and a statement of the reasonable range of 
        scientific uncertainties;
          (2) include a statement of any significant 
        substitution risks to public safety or the environment; 
        and
          (3) contain a statement that places in context the 
        nature and magnitude of risks to public safety or the 
        environment.
  (d) Statements.--The statements referred to in subsections 
(b)(4) and (c)(3) of this section shall each provide, to the 
extent feasible, comparisons with estimates of greater, lesser, 
and substantially equivalent risks that are familiar to and 
routinely encountered by the general public, as well as other 
risks, and, where appropriate and meaningful, comparisons of 
those risks with other similar risks regulated by the 
Department resulting from comparable activities. In making such 
comparisons, the Secretary should consider relevant 
distinctions among risks, such as the voluntary or involuntary 
nature of risks, and the preventability or nonpreventability of 
risks.
  (e) Review by Standards Committee.--
          (1) Peer review.--For any significant standard or 
        regulatory requirement, the Secretary shall submit any 
        risk assessment documents and cost-benefit analyses 
        (prepared or received by the Secretary) for review by 
        the Technical Pipeline Safety Standards Committee, the 
        Hazardous Liquid Pipeline Safety Standards Committee, 
        or both, as appropriate, and make them available to the 
        public. The Technical Pipeline Safety Standards 
        Committee and the Hazardous Liquid Pipeline Safety 
        Standards Committee shall function as peer review 
        panels and shall prepare reports, including any 
        recommended options for any significant standard or 
        regulatory requirement and an evaluation of the 
        technical scientific merit of the data and scientific 
        method used for a risk assessment document or cost-
        benefit analysis. The Committee or Committees shall 
        submit such reports to the Secretary within 90 days 
        after the date of receipt of the documents and analyses 
        from the Secretary.
          (2) Response of secretary.--The Secretary shall 
        review the report and recommendations of the Technical 
        Pipeline Safety Standards Committee, the Technical 
        Hazardous Liquids Pipeline Safety Standards Committee, 
        or both, as the case may be. Within 90 days after 
        receipt of such report, the Secretary--
                  (A) shall submit to the Committee or 
                Committees a written response to all peer 
                review comments and recommended options; and
                  (B) may revise the risk assessment document 
                or cost-benefit analysis prior to determining 
                whether the proposed significant standard or 
                regulatory requirement should be promulgated.
  (f) Emergencies.--In the case of an emergency, the Secretary 
may suspend the application of this section for the duration of 
the emergency.
  (g) Report.--Not later than March 31, 1999, the Secretary 
shall transmit to Congress a report on the application of the 
principles of the analyses of risk reduction benefits and costs 
and risk assessment to this chapter and their effect on 
pipeline safety.

Sec. 60127. Risk management

  (a) Risk Management Demonstration Project.--The Secretary of 
Transportation shall carry out a project with voluntary 
participation by owners and operators of pipeline facilities to 
demonstrate applications of risk management. The purpose of the 
project shall be to evaluate the safety and cost effectiveness 
of such applications.
  (b) Exemption.--During the period of the demonstration 
project carried out under this section, the Secretary may 
exempt owners and operators participating in the project from 
compliance with some or all of the standards and regulatory 
requirements that would otherwise apply to such owners and 
operators under this chapter. In addition, the Secretary shall 
exempt such owners and operators from complying with standards 
and regulatory requirements promulgated under this chapter 
during the period of such participation with respect to 
facilities included in the project.
  (c) Requirements.--In carrying out the demonstration project 
under this section, the Secretary shall--
          (1) invite owners and operators of pipeline 
        facilities to submit risk management plans for timely 
        approval by the Secretary;
          (2) ensure that the approved risk management plans 
        under the project contain measures that are designed to 
        achieve an equivalent or greater overall level of 
        safety than would otherwise be achieved by complying 
        with the standards and regulatory requirements of this 
        chapter; and
          (3) ensure that the project incorporates the 
        following elements:
                  (A) collaborative training;
                  (B) methods to measure the performance of 
                risk management plans;
                  (C) development and application of new 
                technologies;
                  (D) promotion of community awareness;
                  (E) development of a model to categorize the 
                risks inherent to a selected pipeline facility, 
                considering the location, volume, pressure, and 
                material transported or stored by the facility;
                  (F) application of risk assessment and risk 
                management methodologies suitable to the 
                inherent risks determined to exist by the model 
                developed under subparagraph (E);
                  (G) development of project elements needed to 
                ensure that owners and operators participating 
                in the project demonstrate that risks are being 
                effectively managed and that risk management 
                plans carried out under the project can be 
                audited;
                  (H) a process for making amendments, 
                modifications, and adjustments to approved risk 
                management plans under the project as agreed to 
                by owners and operators carrying out such plans 
                and the Secretary; and
                  (I) such other elements as the Secretary and 
                owners and operators participating in the 
                project may agree would further the purposes of 
                this section.
  (d) Emergencies.--In the case of an emergency, the Secretary 
may suspend or revoke the participation of an owner or operator 
in the demonstration project carried out under this section.
  (e) Report.--Not later than March 31, 1999, the Secretary 
shall transmit to Congress a report on the results of the 
demonstration project carried out under this section together 
with an evaluation of the project and recommendations on 
whether or not the applications demonstrated under the project 
should be made a permanent part of the Federal pipeline safety 
program.

Sec. 60128. Dumping within pipeline rights-of-way

  (a) Prohibition.--No person shall excavate for the purpose of 
unauthorized disposal within the right-of-way of an interstate 
gas pipeline facility or interstate hazardous liquid pipeline 
facility, or any other limited area in the vicinity of any such 
interstate pipeline facility established by the Secretary of 
Transportation, and dispose solid waste therein.
  (b) Definition.--For purposes of this section, the term 
``solid waste'' has the meaning given such term in section 
1004(27) of the Solid Waste Disposal Act (42 U.S.C. 6903(27)).
          * * * * * * *
                            DISSENTING VIEWS

    Despite its title, H.R. 1323, the ``Pipeline Safety Act of 
1995'', is likely to undermine the current level of protection 
of the public health and safety provided by the Department of 
Transportation's pipeline safety program. In the name of 
greater government ``efficiency,'' H.R. 1323 diverts the 
program away from the existing commonsense approach based on 
inspection and enforcement. In its place, the bill substitutes 
the majority's now familiar alternative to reasonable 
regulation--unnecessary risk analysis, inadequate budgets, and 
cost-benefit requirements that undermine the very premises on 
which our public health and safety statutes are based.
    The risk assessment and cost-benefit mechanisms borrowed 
from H.R. 1022 are particularly inappropriate to pipeline 
safety. The dangers and consequences of natural gas explosions 
or leaking oil pipelines are not speculative, and do not turn 
on actuarial tables or models predicting latent health effects. 
There is nothing novel about the dangers that degraded, 
compromised pipelines pose to public health, the environment, 
and property values. The consequences are obvious to anyone 
with even a passing knowledge of the many spectacular natural 
gas accidents of both recent and distant memory--accidents like 
Cleveland's in the 1940's, where hundreds of businesses and 
homes were damaged, or the Edison, New Jersey natural gas 
explosion of 1994, which destroyed an apartment complex and 
threatened hundreds of lives, or the 1993 Colonial Pipeline oil 
leak in Fairfax County, Virginia, which caused extensive 
property and environmental damage.
    The risk assessment procedures imposed by H.R. 1323 will 
tie the Department of Transportation's pipeline safety program 
in knots. At the same time as the agency's dollar resources are 
being cut, the burden on agency personnel to build useless 
models and risk assessment analyses is being increased. As a 
result, the Department's shrinking resources will be taken away 
from inspection and enforcement, the only practical tools for 
protecting public health. Instead, an increased percentage of 
the Department's budget will be devoted to analyzing whether a 
threat to public health exists. This is not a question 
requiring further study; a cursory reading of old newspaper 
accounts confirms the risks and the consequences of pipeline 
accidents.
    Even more offensively, the bill demotes protection of human 
life to a function of cost-benefit analysis. Under the 
legislation, the Department of Transportation is barred from 
issuing regulations to protect public health and safety unless 
it shows that the costs are justified by the benefits. The 
burden of proof is on the Department.
    The effect of this legislation is to place a higher premium 
on practical information gathered in the field--what is the 
status of a particular pipeline, what sort of maintenance is 
needed to ensure its safety? This might not be all bad if the 
agency's resources were being increased to take into account 
the new burdens imposed by the bill. But instead, the agency 
will be unable to obtain this information because the bulk of 
its resources will be devoted to risk assessment exercises. 
Without that information, it will be unable to prove that costs 
to industry are likely to be justified by benefits to public 
health and the environment. As a result, it cannot issue 
regulations. And by authorizing few dollars for the agency and 
requiring it to devote a higher percentage of its budget to 
analysis, the bill decreases the funds available for 
inspections and enforcement.
    This legislation may appear to be a marvelous development 
for industry, and it is no surprise that elements of industry 
had a heavy role in its drafting. In the short run, it will 
save industry money, through reduced user fees.
    In the long run, however, the costs to industry and to 
those who supported this legislation are likely to be quite 
high. Saving money is an important goal, but it is no 
substitute for the far more important objective of saving 
lives. Today's self-serving theoretical arguments about the 
virtues of models and analysis will mean little to the 
apartment dweller whose building is blown up, to the business 
owner whose property is damaged, or to the homeowner whose 
property value is reduced because of pollution due to leaking 
pipelines.

                                   John D. Dingell.
                                   Edward J. Markey.
                                   E. Towns.
                                   Frank Pallone, Jr.
                                   Sherrod Brown.
                                   Ron Klink.
                                   Bart Stupak.
                                   Elizabeth Furse.
               ADDITIONAL DISSENTING VIEWS OF MR. MARKEY

    H.R. 1323, as approved by the Committee, allows corporate 
insiders and lobbyists to serve on the peer review panels that 
will be empowered to review all proposed Department of 
Transportation (DOT) pipeline safety regulations. The peer 
review provisions of this bill are exactly the opposite of what 
we should be trying to do with the scientific peer review 
process. Allowing individuals with financial or other 
conflicts-of-interest to serve as peer reviewers degrades the 
credibility of peer reviews and calls into question the 
fundamental scientific and technical credibility of the entire 
process.
    The bill would transform two existing pipeline safety 
policy advisory committees to the DOT (the Technical Hazards 
Liquid Pipeline Safety Committee and the Technical Pipeline 
Safety Standards Committee) into peer review panels. These 
industry-dominated committees will be responsible for reviewing 
all DOT pipeline safety regulations, preparing reports on ``any 
significant standard or regulatory requirement'' proposed by 
the Department and providing ``an evaluation of the technical 
scientific merit of the data and scientific method used for a 
risk assessment document or cost-benefit analysis.'' The 
Secretary of Transportation would be required under the bill to 
review and provide a written response to any of the so-called 
``peer review'' recommendations before the rules become 
effective.
    At the same time, the bill decreases public transportation 
on technical safety standards committees (from 6 to 5) and 
increases industry representation (from 4 to 5), thereby 
assuring that the public representatives (some of whom are 
themselves consultants to the pipeline industry) will never be 
able to outvote the industry representatives.
    Right now, the Technical Hazards Liquid Pipeline Safety 
Standards Committee and the Technical Pipeline Safety Standards 
Committee are already empowered to provide policy and advice to 
the Secretary of Transportation on proposed rules, which the 
Department is free to accept or reject in light of the biases 
that might surround such recommendations. Peer review panels--
in contrast to policy advisory committees--are supposed to be 
objective scientific and technical watchdogs. Unfortunately, 
the peer review panels established under this bill are more 
likely to become industry lapdogs.
    Under H.R. 1323, gas pipeline industry lobbyists, 
consultants and corporate insiders will be free to battle 
pipeline safety rules they don't like by misusing what is 
supposed to be a neutral and scientific peer review process to 
either generate pressure on the agency to drop a rule proposal 
or generate a basis for subsequent litigation challenging the 
rule. The net result will be that important safety rules could 
end up being slowed down, weakened, or even blocked.
    In this regard, I must note that the history of the DOT 
advisory panels is somewhat mixed when it comes to protecting 
public health and safety. For example, in 1988, the Department 
of Transportation proposed regulations to require operators to 
pipelines to have an anti-drug program for employees who 
perform certain sensitive safety-related functions, including 
drug testing prior to employment, after an accident, randomly, 
and upon probable cause. One of the technical advisory 
Committee that H.R. 1323 proposes to transform into an ``peer 
review'' panel voted 11-0 not to support the proposed rule--
arguing that ``the need for such a rule has not been 
demonstrated.'' The other technical advisory committee voted 9-
4 that the proposed rule was ``feasible'' but recommended 
several weakened changes. Fortunately for the American public, 
DOT went ahead with the rule. The pipeline industry then tried 
unsuccessively to sue the Department over the rules. If H.R. 
1323 had been in effect, DOT might well have been prevented 
from adopting rules to protect the public from the risk that 
gas pipeline operators have an effective anti-drug program, 
including drug testing of employees who are in sensitive 
positions that could affect public safety.
    I must also note that H.R. 1323 has even weaker conflict-
of-interest provisions than the watered-down provisions of H.R. 
1022, the House-passed Risk Assessment bill that was part of 
the GOP's so-called ``Contract with America.'' Even this bill 
provided that ``in the case of the regulatory decision 
affecting a single entity no peer reviewer representing such 
entity may be included on the panel'' (emphasis added). H.R. 
1323 doesn't even have this restriction.
    During the Committee's markup, I offered an amendment--
which was unfortunately rejected on a 19-23 party-line vote--
which would have allowed the Secretary of Transportation 
discretion to exclude persons from serving as peer reviewers if 
they have a conflict-of-interest that could result in bias. 
Under any amendment, the Secretary could exclude members of the 
two advisory committees from serving as peer reviewers when 
they are associated with entities that may have a financial 
interest in the outcome, unless such interest is disclosed to 
the agency and the agency has determined that such interest 
will not reasonably be expected to create a bias in favor 
obtaining an outcome that is consistent with such interest. 
This would give DOT the ability they need to receive both full 
disclosure regarding any potential conflict-of-interest that 
could potentially lead a peer reviewer to have bias, and 
authority to exclude reviewers whose associations may give rise 
to such a conflict. Under my amendment, industry could still be 
represented on a peer review panel except in cases where there 
was a conflict-of-interest which could lead to a bias.
    The opposition of the Republican Majority to this common 
sense provision was inexplicable, and raises serious concerns 
about whether the peer review process will operate effectively 
to assure that agency rules have a strong scientific or 
economic basis, or whether the process will merely be exploited 
by parties with an interest in the outcome of agency rules to 
generate additional unnecessary and vexatious litigation 
challenging agency rulemakings.

                                                  Edward J. Markey.