[House Report 109-717]
[From the U.S. Government Publishing Office]





109th Congress                                             Rep. 109-717
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================



 
                PIPELINE SAFETY IMPROVEMENT ACT OF 2006

                                _______
                                

                December 5, 2006.--Ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 5782]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 5782) to amend title 49, United 
States Code, to provide for enhanced safety and environmental 
protection in pipeline transportation, to provide for enhanced 
reliability in the transportation of the Nation's energy 
products by pipeline, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES CODE; 
                    TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Pipeline Safety 
Improvement Act of 2006''.
  (b) Amendment of Title 49, United States Code.--Except as otherwise 
expressly provided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or a repeal of, a section or 
other provision, the reference shall be considered to be made to a 
section or other provision of title 49, United States Code.
  (c) Table of Contents.--

Sec. 1. Short title; amendment of title 49, United States Code; table 
of contents.
Sec. 2. Pipeline safety and damage prevention.
Sec. 3. Distribution integrity management program rulemaking deadline.
Sec. 4. Pipeline control room management.
Sec. 5. Low-stress pipelines.
Sec. 6. Authorization of appropriations.
Sec. 7. Standards to implement NTSB recommendations.
Sec. 8. Accident reporting form.
Sec. 9. Leak detection technology study.
Sec. 10. Petroleum transportation capacity study.
Sec. 11. Emergency waivers.
Sec. 12. Pipeline safety information grants to communities.
Sec. 13. Memorandum of understanding.

SEC. 2. PIPELINE SAFETY AND DAMAGE PREVENTION.

  (a) One-Call Civil Enforcement.--
          (1) In general.--Section 60114 is amended by adding at the 
        end the following:
  ``(d) Enforcement.--Any person who engages in excavation activity 
without first using an available one-call notification system to 
establish the location of underground pipeline facilities in the 
excavation area or who disregards location information or markings 
established by an operator of a pipeline facility, and any operator of 
a pipeline facility who fails to respond to a location request in order 
to prevent damage to the pipeline or fails to take reasonable steps, in 
response to such a request, to ensure accurate marking of the location 
of the pipeline in order to prevent damage to the pipeline, shall be 
subject to a civil action under section 60120 or assessment of a civil 
penalty under section 60122.
  ``(e) Limitation.--The Secretary may not conduct an enforcement 
proceeding under subsection (d) within the boundaries of a State that 
has the authority to impose penalties described in section 60134(b)(7) 
against persons who violate that State's damage prevention laws and is 
imposing such penalties.''.
          (2) Conforming amendment.--Section 60122(a)(1) is amended in 
        the first sentence by inserting ``, 60114(d),'' after ``section 
        60114(b)''.
  (b) State Damage Prevention Programs.--
          (1) Certification.--Section 60105(b)(4) is amended to read as 
        follows:
          ``(4) has agreed to take actions toward establishing a 
        program designed to prevent damage by excavation, demolition, 
        tunneling, or construction activity to the pipeline facilities 
        to which the certification applies that subjects persons who 
        violate the applicable requirements of that program to civil 
        penalties and other enforcement actions that are substantially 
        the same as are provided under this chapter, and addresses the 
        elements in section 60134(b);''.
          (2) Requirement.--Chapter 601 is amended by adding at the end 
        the following new section:

``Sec. 60134. State damage prevention programs

  ``(a) In General.--The Secretary may make a grant to a State 
authority (including a municipality with respect to intrastate gas 
pipeline transportation) to assist in improving the overall quality and 
effectiveness of a damage prevention program of the State authority 
under subsection (e) if the State authority--
          ``(1)(A) has an annual certification in accordance with 
        section 60105 for such fiscal year; or
          ``(B) has an agreement with the Secretary in accordance with 
        section 60106; and
          ``(2) has agreed to take actions toward establishing an 
        effective damage prevention program that meets the requirements 
        of subsection (b).
  ``(b) Damage Prevention Program Elements.--An effective damage 
prevention program includes the following elements:
          ``(1) Participation by operators, excavators, and other 
        stakeholders in the development and implementation of methods 
        for establishing and maintaining effective communications 
        between stakeholders from receipt of an excavation notification 
        until successful completion of the excavation, as appropriate.
          ``(2) A process for fostering and ensuring the support and 
        partnership of stakeholders, including excavators, operators, 
        locators, designers, and local government in all phases of the 
        program.
          ``(3) A process for reviewing the adequacy of a pipeline 
        operator's internal performance measures regarding persons 
        performing locating services and quality assurance programs.
          ``(4) Participation by operators, excavators, and other 
        stakeholders in the development and implementation of effective 
        employee training programs to ensure that operators, the one-
        call center, the enforcing agency, and the excavators have 
        partnered to design and implement training for the employees of 
        operators, excavators, and locators.
          ``(5) A process for fostering and ensuring active 
        participation by all stakeholders in public education for 
        damage prevention activities.
          ``(6) A process for resolving disputes that defines the State 
        authority's role as a partner and facilitator to resolve 
        issues.
          ``(7) Enforcement of State damage prevention laws and 
        regulations for all aspects of the damage prevention process, 
        including public education, and the use of civil penalties for 
        violations assessable by the appropriate State authority.
          ``(8) A process for fostering and promoting the use, by all 
        appropriate stakeholders, of improving technologies that may 
        enhance communications, underground pipeline locating 
        capability, and gathering and analyzing information about the 
        accuracy and effectiveness of locating programs.
          ``(9) A process for review and analysis of the effectiveness 
        of each program element, including a means for implementing 
        improvements identified by such program reviews.
  ``(c) Factors To Consider.--In making grants under this section, the 
Secretary shall take into consideration the commitment of each State to 
ensuring the effectiveness of its damage prevention program, including 
legislative and regulatory actions taken by the State.
  ``(d) Application.--If a State authority files an application for a 
grant under this section not later than September 30 of a calendar year 
and demonstrates that the Governor (or chief executive) of the State 
has designated it as the appropriate State authority to receive the 
grant, the Secretary shall review the State's damage prevention program 
to determine its effectiveness.
  ``(e) Grants for Effective Programs.--For a program of a State 
authority the Secretary determines to be effective, the Secretary may 
make a grant to the State authority for the cost of the personnel, 
equipment, and activities the State authority reasonably requires 
during the next calendar year to carry out its damage prevention 
program in accordance with subsection (b).
  ``(f) Nonapplicability of Limitation.--A grant made under this 
section is not subject to the section 60107(a) limitation on the 
maximum percentage of funds to be paid by the Secretary.
  ``(g) Limitation on Use of Funds.--Funds provided under this section 
may not be used for lobbying or in direct support of litigation.
  ``(h) Funding.--To carry out this section, the Secretary shall make 
available (from amounts appropriated to the Secretary under section 
60125(b) for each of fiscal years 2008 through 2010) the following 
respective amounts:
          ``(1) $1,500,000 for fiscal year 2008.
          ``(2) $1,750,000 for fiscal year 2009.
          ``(3) $2,000,000 for fiscal year 2010.
Such funds shall remain available until expended.''.
          (3) Clerical amendment.--The analysis for chapter 601 is 
        amended by adding at the end the following:

``60134. State damage prevention programs.''.

  (c) State Pipeline Safety Grants.--Section 60107(a) is amended by 
striking ``not more than 50 percent'' and inserting ``not more than 80 
percent''.

SEC. 3. DISTRIBUTION INTEGRITY MANAGEMENT PROGRAM RULEMAKING DEADLINE.

  Section 60109 is amended by adding at the end the following:
  ``(e) Distribution Integrity Management Programs.--
          ``(1) Minimum standards.--Not later than 1 year after the 
        date of enactment of this subsection, the Secretary shall 
        prescribe minimum standards for integrity management programs 
        for distribution pipelines.
          ``(2) Additional authority of secretary.--In carrying out 
        this subsection, the Secretary may require operators of 
        distribution pipelines to continually identify and assess risks 
        on their distribution lines, to remediate conditions that 
        present a potential threat to line integrity, and to monitor 
        program effectiveness.
          ``(3) Excess flow valves.--The minimum standards shall 
        include criteria for requiring operators of natural gas 
        distribution systems--
                  ``(A) to install excess flow valves on single-family 
                residential service lines that are installed or 
                replaced after the date of enactment of this subsection 
                on the basis of feasibility and risk analysis; and
                  ``(B) to report to the Secretary annually on the 
                number of excess flow valves installed on their systems 
                under subparagraph (A).
          ``(4) Applicability.--The Secretary shall determine which 
        distribution pipelines will be subject to the minimum 
        standards.
          ``(5) Development and implementation.--Each operator of a 
        distribution pipeline that Secretary determines is subject to 
        the minimum standards prescribed by the Secretary under this 
        subsection shall develop and implement an integrity management 
        program in accordance with those standards.''.

SEC. 4. PIPELINE CONTROL ROOM MANAGEMENT.

  (a) Standards.--Not later than 18 months after the date of enactment 
of this Act, the Secretary of Transportation shall issue regulations 
establishing standards for managing gas and hazardous liquid pipelines 
to reduce risks associated with human factors, including fatigue.
  (b) Risk Evaluation.--In carrying out this section, the Secretary may 
require operators of gas and hazardous liquid pipelines to evaluate the 
risks associated with human factors, including fatigue, and take 
measures to reduce such risks with respect to their pipelines.
  (c) Applicability.--The Secretary shall determine which pipelines are 
subject to the standards issued under this section.
  (d) Risk Management.--Each operator of a pipeline that the Secretary 
determines is subject to the standards established by the Secretary 
under this section shall manage the controllers of the pipeline in 
accordance with those standards.

SEC. 5. LOW-STRESS PIPELINES.

  Section 60102(k) is amended by striking the subsection designation 
and heading and inserting the following:
  ``(k) Low-Stress Hazardous Liquid Pipelines.--
          ``(1) Minimum standards.--Not later than 1 year after the 
        date of enactment of this paragraph, the Secretary shall issue 
        minimum standards for the transportation of hazardous liquids 
        by low-stress pipelines located in proximity to areas unusually 
        sensitive to environmental damage as defined by the Secretary 
        under section 60109(b) and by regulation.
          ``(2) Low-stress pipeline defined.--For purposes of this 
        subsection (other than paragraph (5)), a `low-stress pipeline' 
        means a hazardous liquid pipeline that is operated in its 
        entirety at a stress level of 20 percent or less of the 
        specified minimum yield strength of the line pipe of the 
        pipeline and has a diameter of greater than 8\5/8\ inches.
          ``(3) Applicability.--The Secretary shall determine which 
        low-stress pipelines are subject to the minimum standards 
        issued under this subsection.
          ``(4) Requirement.--Each operator of a low-stress pipeline 
        that the Secretary determines is subject to the minimum 
        standards issued by the Secretary under this subsection shall 
        operate the pipeline in accordance with those standards.
          ``(5) Prohibition against exception.--''.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

  (a) Gas and Hazardous Liquid.--Section 60125(a) is amended to read as 
follows:
  ``(a) Gas and Hazardous Liquid.--To carry out this chapter (except 
for section 60107) related to gas and hazardous liquid, the following 
amounts are authorized to be appropriated to the Department of 
Transportation:
          ``(1) For fiscal year 2007, $55,497,000, of which $39,872,000 
        is to be derived from user fees collected under section 60301 
        and $15,625,000 is to be derived from the Oil Spill Liability 
        Trust Fund established by section 9509 of the Internal Revenue 
        Code of 1986.
          ``(2) For fiscal year 2008, $57,997,000, of which $42,651,000 
        is to be derived from such fees and $15,346,000 is to be 
        derived from the Fund.
          ``(3) For fiscal year 2009, $60,482,000, of which $44,839,000 
        is to be derived from such fees and $16,003,000 is to be 
        derived from the Fund.
          ``(4) For fiscal year 2010, $62,375,000, of which $46,444,000 
        is to be derived from such fees and $15,931,000 is to be 
        derived from the Fund.''.
  (b) State Grants.--Section 60125(b)(1) is amended to read as follows: 
``(1) To carry out section 60107, the following amounts are authorized 
to be appropriated to the Department of Transportation:
          ``(A) For fiscal year 2007, $20,238,000, of which $17,053,000 
        is to be derived from user fees collected under section 60301 
        and $3,185,000 is to be derived from the Oil Spill Liability 
        Trust Fund.
          ``(B) For fiscal year 2008, $23,221,000, of which $19,567,000 
        is to be derived from such fees and $3,654,000 is to be derived 
        from the Fund. Of the amounts so appropriated, $1,500,000 shall 
        be available for grants to States under section 60134.
          ``(C) For fiscal year 2009, $24,513,000, of which $20,656,000 
        is to be derived from such fees and $3,857,000 is to be derived 
        from the Fund. Of the amount so appropriated, $1,750,000 shall 
        be available for grants to States under section 60134.
          ``(D) For fiscal year 2010, $25,855,000, of which $21,786,000 
        is to be derived from such fees and $4,069,000 is to be derived 
        from the Fund. Of the amount so appropriated, $2,000,000 shall 
        be available for grants to States under section 60134.''.
  (c) Conforming Amendments.--Section 60125 is amended--
          (1) by striking subsection (c); and
          (2) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.
  (d) Emergency Response Grants.--Section 60125(c)(2) (as redesignated 
by subsection (c)(2) of this section) is amended by striking ``2003 
through 2006'' and inserting ``2007 through 2010''.
  (e) One-Call Notification Programs.--Section 6107 is amended--
          (1) in subsection (a) by striking ``fiscal years 2003 through 
        2006'' and inserting ``fiscal years 2007 through 2010''; and
          (2) in subsection (b) by striking ``for fiscal years 2003 
        through 2006'' and inserting ``for fiscal years 2007 through 
        2010''.

SEC. 7. STANDARDS TO IMPLEMENT NTSB RECOMMENDATIONS.

  Not later than 18 months after the date of enactment of this Act, the 
Secretary of Transportation shall issue standards that implement the 
following recommendations contained in the National Transportation 
Safety Board's report entitled ``Supervisory Control and Data 
Acquisition (SCADA) in Liquid Pipelines'' and adopted November 29, 
2005:
          (1) Implementation of the American Petroleum Institute's 
        Recommended Practice 165 for the use of graphics on the 
        supervisory control and data acquisition screens.
          (2) Implementation of a standard for pipeline companies to 
        review and audit alarms on monitoring equipment.
          (3) Implementation of standards for pipeline controller 
        training that include simulator or noncomputerized simulations 
        for controller recognition of abnormal pipeline operating 
        conditions, in particular, leak events.

SEC. 8. ACCIDENT REPORTING FORM.

  Not later than 12 months after the date of enactment of this Act, the 
Secretary of Transportation shall amend accident reporting forms to 
require operators gas and hazardous liquid pipelines to provide data 
related to controller fatigue.

SEC. 9. LEAK DETECTION TECHNOLOGY STUDY.

  Not later than 12 months after the date of enactment of this Act, the 
Secretary of Transportation shall submit to Congress a report on leak 
detection systems utilized by operators of hazardous liquid pipelines. 
The report shall include a discussion of the inadequacies of current 
leak detection systems, including their ability to detect ruptures and 
small leaks that are onging or intermittent, and what can be done to 
foster development of better technologies as well as address existing 
technological inadequacies.

SEC. 10. PETROLEUM TRANSPORTATION CAPACITY STUDY.

  (a) In General.--Chapter 601 (as amended by section 2(b)(2) of this 
Act) is further amended by adding at the end the following:

``Sec. 60135. Petroleum product transportation capacity study

  ``(a) In General.--The Secretary of Transportation may conduct 
analyses of the domestic transport of petroleum products by pipeline. 
Such analyses should identify areas of the United States where 
shortages of pipeline capacity and reliability concerns exist, where 
such shortages have or are anticipated to contribute to significant 
increases in the price of petroleum products, or where unplanned loss 
of individual pipelines may cause shortages of petroleum products or 
price disruptions.
  ``(b) Consultation.--In preparing any analysis under this section, 
the Secretary may consult with other government agencies and public- 
and private-sector experts in pipeline and other forms of petroleum 
product transportation, energy consumption, capacity, population and 
economic development.
  ``(c) Petroleum Product Defined.--In this section, the term 
`petroleum product' means oil of any kind or in any form, gasoline, 
diesel fuel, aviation fuel, fuel oil, kerosene, any product obtained 
from refining or processing of crude oil, liquefied petroleum gases, 
natural gas liquids, petrochemical feedstocks, condensate, waste or 
refuse mixtures containing any of such oil products, and any other 
liquid hydrocarbon compounds.''.
  (b) Clerical Amendment.--The analysis for chapter 601 (as amended by 
section 2(b)(3) of this Act) is amended by adding after the item 
relating to section 60134 the following:

``60135. Petroleum product transportation capacity study.''.

SEC. 11. EMERGENCY WAIVERS.

  Section 60118(c) is amended to read as follows:
  ``(c) Waivers by Secretary.--
          ``(1) Nonemergency waivers.--
                  ``(A) In general.--On application of a person owning 
                or operating a pipeline facility, the Secretary by 
                order may waive compliance with any part of an 
                applicable standard prescribed under this chapter on 
                terms the Secretary considers appropriate if the waiver 
                is not inconsistent with pipeline safety.
                  ``(B) Hearing.--The Secretary may act on a 
                nonemergency waiver under this paragraph only after 
                notice and an opportunity for a hearing.
          ``(2) Emergency waivers.--The Secretary by order may waive 
        compliance with any part of an applicable standard prescribed 
        under this chapter on terms the Secretary considers appropriate 
        without prior notice and comment if the Secretary determines 
        that the waiver is necessary to address an actual or impending 
        emergency involving pipeline transportation, including 
        emergencies caused by natural or manmade disasters.
          ``(3) Statement of reasons.--The Secretary shall state in an 
        order issued under this subsection the reasons for granting the 
        waiver.''.

SEC. 12. PIPELINE SAFETY INFORMATION GRANTS TO COMMUNITIES.

  Section 60130(d) is amended by striking ``2006'' and inserting 
``2010''.

SEC. 13. MEMORANDUM OF UNDERSTANDING.

  Not later than 45 days after the date of enactment of this Act, the 
Secretary of Transportation shall develop and execute an annex to the 
memorandum of understanding between the Secretary and the Secretary of 
Homeland Security, dated September 28, 2004, to define and clarify the 
role and responsibility of the Department of Transportation regarding 
pipeline security, including the processes that the Department will 
follow to promote communications, efficiency, and nonduplication of 
effort.

                       Purpose of the Legislation

    H.R. 5782 reauthorizes federal pipeline safety programs 
under the management of the Pipeline and Hazardous Materials 
Safety Administration of the U.S. Department of Transportation 
for fiscal years 2007 through 2010. These programs provide for 
enhanced safety and environmental protection in pipeline 
transportation, and provide for enhanced reliability in the 
transportation of the Nation's energy products by pipeline.

                Background and Need for the Legislation

    The nation's pipelines are a transportation system that 
enables the safe movement of extraordinary quantities of energy 
products to industry and consumers, literally fueling our 
economy and way of life. The arteries of the Nation's energy 
infrastructure, as well as the safest and least costly ways to 
transport energy products, our oil and gas pipelines provide 
the resources needed for national defense, heat and cool our 
homes, generate power for business and fuel an unparalleled 
transportation system.
    The Office of Pipeline Safety (OPS) is the federal safety 
authority for the nation's 2.3 million miles of natural gas, 
petroleum and other hazardous liquid pipelines. The OPS mission 
is to ensure the safe, reliable, and environmentally sound 
operation of the nation's pipeline transportation system 
through the development of regulations and other approaches to 
risk management to assure safety in design, construction, 
testing, operation, maintenance, and emergency response of 
pipeline facilities. The OPS is an office within the Pipeline 
and Hazardous Materials Safety Administration (PHMSA), an 
agency created in the Norman Y. Mineta Research and Special 
Programs Improvement Act (Public Law 108-426). Before passage 
of this Act, the OPS was an office with the Research and 
Special Programs Administration. The OPS is responsible for 
regulating and enforcing the safety of interstate liquid and 
gas pipelines.
    The pipeline safety programs were last authorized under the 
Pipeline Safety Improvement Act of 2002 (Public Law 107-355), a 
four-year authorization for fiscal years 2003 through 2006. 
H.R. 5782 extends the pipeline safety programs another four 
years, through fiscal year 2010. These programs include: 
operational funds for OPS to carry out its regulatory and 
enforcement functions; State pipeline safety grants that cover 
up to 50 percent of State personnel, equipment and activity 
costs to carry out OPS- certified pipeline safety inspection 
activities; emergency response grants; public education and 
one-call damage prevention programs; and grants to provide 
engineering and other scientific analysis of pipeline safety 
issues in local communities.
    The purpose of the bill is to reauthorize these programs 
for four years. The pipeline safety programs managed by the OPS 
have been very effective. The number of hazardous liquid 
pipeline accidents has decreased dramatically over the last 20 
years, both as measured in number of accidents and in number of 
barrels of petroleum product lost. However, there is room for 
improvement. In March, a leak in Alaska's Prudhoe Bay low-
stress pipelines (pipelines that operate at less than 20 
percent of the specified minimum strength of the material from 
which they are constructed) prompted PHMSA to develop safety 
regulations specifically for low-stress pipelines. Another area 
PHMSA had identified as needing improvement was the need for 
federal civil authority to enforce one-call laws in states that 
do not have adequate enforcement. Most gas or hazardous 
pipeline accidents occur when pipelines are damaged by 
excavation activity. One-call damage prevention programs 
identify where underground pipeline facilities are located, and 
mark the locations of such facilities to ensure that the 
pipelines are not damaged by excavation work.
    For fiscal years 2007 through 2010, H.R. 5782 authorizes 
about $362 million to be appropriated from a combination of: 
The pipeline safety fund, comprised of user fees assessed on 
interstate pipeline operators on a per-mile basis; the Oil 
Spill Liability Trust Fund (OSLTF), a revolving fund comprised 
of an environmental tax on petroleum and oil spill damage 
recovery payments; and non-defense discretionary general funds. 
Funds authorized from the pipeline safety fund are scored as 
offsets against the total funding level; about $253 million of 
the funds authorized under H.R. 5782 will be offset by the 
collection of fees paid by pipeline operators over the four-
year period. The Office of Pipeline Safety's operational 
account, gas and hazardous liquid, is authorized for a total of 
$236,351,000 over four years, of which $173,806,000 is to be 
derived from the pipeline safety fund and $62,905,000 is to be 
derived from the OSLTF. The Sate grants program is authorized 
for a total of $93,827,000, of which $79,062,000 is to be 
derived from the pipeline safety fund and $14,765,000 is to be 
derived from the OSLTF. In fiscal years 2008 through 2010, an 
aggregate total of $5,250,000 is set-aside from the State 
Grants program for the new State Damage Prevention Program 
incentive grants established under section 2(b) of the bill. 
The Emergency Response grants are authorized for a total of 
$24,000,000, to be derived from the general fund. The one-call 
notification program is authorized for $4,000,000, to be 
derived from the general fund. Pipeline safety information 
grants to communities are funded at $4,000,000 for fiscal years 
2007 through 2010, to be derived from the general fund.

                       SUMMARY OF THE LEGISLATION

Section 1. Short title; Amendment of title 49, United States Code; 
        Table of contents

    This section states the bill's short title as the 
``Pipeline Safety Improvement Act of 2006.'' All amendments to 
and repeals of sections or other provisions are considered to 
be made to a section or other provision of title 49, United 
States Code. The section also sets for a table of contents for 
the bill.

Section 2. Pipeline safety and damage prevention

    Subsection 2(a) provides PHMSA with new federal civil 
authority to enforce one-call laws in states that do not have 
adequate enforcement. This enforcement authority is 
``balanced'' in the sense that it could be used on an operator 
who fails to respond to a location request or fails to 
accurately mark the location of a pipeline as well as an 
excavator who fails to use the one-call system or disregards 
location information or markings. The authority is limited to 
civil penalties. The authority is further limited to states 
that do not have civil penalties in place to enforce damage 
prevention processes. This provision is intended to be an 
incentive to states that do not have state civil penalty 
authority to enforce state damage prevention processes to 
establish them. Until they do, PHMSA will enforce civil 
penalties. This provision was developed in partnership with 
underground facility owners, and excavators, and is supported 
by both groups.
    Subsection 2(b) provides guidance to States on elements for 
an effective underground damage program and incentives to 
States that adopt and implement a comprehensive program that 
meets the guidance. It establishes a grant program to 
incentivize states with annual certifications or interstate 
agent agreements to have an effective damage prevention 
program, and authorizes an appropriation for PHMSA to make 
grants to the appropriate State agency (designated by the 
governor) for carrying out State damage prevention programs if 
the programs meet certain minimum standards for effectiveness. 
Currently, State damage prevention programs tend to vary widely 
state to state. Outside force damage is a leading cause of 
release incidents.

Section 3. Distribution integrity management program rulemaking 
        deadline

    This section requires PHMSA to issue rules to establish a 
distribution integrity management program (DIMP) which 
operators must implement. PHMSA has worked for several years in 
a consensus-building process to develop the contents of a DIMP 
for operators of distribution lines. Interstate gas 
transmission lines operate under an integrity management 
program established in part in the 2002 pipeline 
reauthorization. Liquid line operators also operate under an 
integrity management program. This provision requires PHMSA to 
promulgate the DIMP within 1 year of enactment of the 
legislation. The provision has been carefully crafted to avoid 
disturbing the rulemaking process, which might cause the loss 
of valuable time and consensus. This provision includes a 
requirement that the DIMP provide risk and feasibility analysis 
for excess flow valves where the line to the residence is being 
installed or replaced.

Section 4. Pipeline control room management

    This section directs PHMSA to develop standards to reduce 
risks in the control room associated with human factors, 
including operator fatigue. The Secretary would promulgate 
rules on standards that include limits on the length of 
controller shifts to guard against fatigue. PHMSA would further 
produce additional standards that operators would implement in 
their management plans. In the past month, PHMSA has begun 
consensus building meetings with stakeholders to help develop 
PHMSA's effort. This section has been carefully crafted to 
avoid upsetting that consensus process.

Section 5. Low-stress pipelines

    This section directs PHMSA to develop regulations for the 
operation of low-stress hazardous liquid pipelines. In March of 
this year, PHMSA announced its intention to regulate low-stress 
pipelines through a rulemaking process as a result of a leak 
incident in Alaska. This provision requires that regulation to 
be completed within one year of enactment of this legislation. 
This provision has been carefully crafted to avoid altering the 
work that has occurred to date at PHMSA on low-stress line 
regulation.

Section 6. Authorization of appropriations

    This section provides authorizations for Office of Pipeline 
Safety programs for fiscal years 2007 through 2010, a 4-year 
authorization period.

Section 7. Standards to implement NTSB recommendations

    This section directs PHMSA to implement NTSB 
recommendations from the Board on Supervisory Control and Data 
Acquisition (SCADA) operations relating to American Petroleum 
Institute's Recommended Practice 165 which include the review 
and audit of alarms, standards for controller training, and 
improvements to SCADA monitors.

Section 8. Accident reporting form

    This section requires the Secretary of Transportation to 
amend accident reporting forms to require operators of 
pipelines to provide data related to controller work schedules 
and fatigue.

Section 9. Leak detection technology study

    This section directs the Secretary to complete a report to 
Congress on the adequacy of pipeline leak detection systems not 
later than 1 year after the date of enactment.

Section 10. Petroleum transportation capacity study

    This section authorizes the Secretary to conduct a study on 
petroleum product transportation capacity. The report will 
identify areas of the United States where shortages of pipeline 
capacity and reliability concerns exist.

Section 11. Emergency waivers

    This section provides Emergency Waiver authority to the 
Secretary. This new section outlines the procedures by which 
the Secretary may waive certain aspects of Chapter 601 of Title 
49 in non-emergency and emergency situations. Nothing in this 
section is intended to affect the Secretary's authority to 
revoke a nonemergency waiver.

Section 12. Pipeline safety information grants to communities

    This section extends the authorization of pipeline safety 
information grants to communities through fiscal year 2010.

Section 13. Memorandum of understanding

    This section directs the Secretary of Transportation to 
develop and execute an annex to the memorandum of understanding 
between the Departments of Transportation and Homeland Security 
to define and clarify the roles and responsibilities of the 
Department of Transportation regarding pipeline security.

            Legislative History and Committee Consideration

    The Subcommittee on Highways, Transit, and Pipelines held 
hearings on pipeline safety oversight on June 16, 2004 and 
March 16, 2006; the full Committee on Transportation and 
Infrastructure held a hearing on low pressure liquid pipelines 
in Prudhoe Bay, Alaska on September 13, 2006. The hearings 
included witnesses from PHMSA, the Department of Transportation 
Inspector General, the GovernmentAccountability Office, the 
National Transportation Safety Board, the Cook Inletkeeper and Pipeline 
Safety Trust, and the BP oil company.
    H.R. 5782 was introduced on July 13, 2006, by 
Representatives Don Young and Thomas E. Petri, and was co-
sponsored by 19 other members of the Committee on 
Transportation and Infrastructure. The bill was referred to the 
Committee on Transportation and Infrastructure, with an 
additional referral to the Committee on Energy and Commerce.
    The Committee on Transportation and Infrastructure met in 
open markup session on July 19, 2006, and discharged the 
Subcommittee on Highways, Transit, and Pipelines from 
consideration of the bill. A manager's amendment was offered by 
Subcommittee Chairman Petri, which made minor changes to the 
bill, including shortening the authorization period of the bill 
from 6 years to 5 years. The manager's amendment also added 
four new sections to the end of the bill (sections 8 through 
11). The amendment was adopted by voice vote. An amendment was 
offered by Mr. Oberstar, which was subsequently amended, that 
shortened the authorization period further, to 4 years. The 
amendment was adopted by voice vote. An amendment was offered 
by Mr. Larsen that extended the authorization of pipeline 
safety information grants to communities. The amendment was 
adopted by voice vote. An amendment was offered by Mr. Pascrell 
that directed the Secretary of Transportation to develop and 
execute, within 45 days of enactment, a pipeline security annex 
to the Department of Transportation-Department of Homeland 
Security memorandum of understanding, clarifying the roles and 
responsibilities of the Department of Transportation 
departments regarding pipeline security. The amendment was 
adopted by voice vote. H.R. 5782 was ordered favorably 
reported, as amended, and was approved by voice vote. The 
Committee on Energy and Commerce met in open markup session on 
September 27, 2006, and approved H.R. 5782 by a voice vote, 
with amendments.

                            Roll Call Votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each roll call vote on a motion 
to report and on any amendment offered to the measure or 
matter, and the names of those members voting for and against. 
There were no roll call votes in subcommittee or full committee 
consideration of H.R. 5782.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report.
    Such a cost estimate is included in this report.

                    Compliance with House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
reauthorize the federal pipeline safety programs and improve 
the safety oversight of the Office of Pipeline Safety.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
5782 from the Director of the Congressional Budget Office.
                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 13, 2006.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5782, the Pipeline 
Safety Improvement Act of 2006.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Gregory 
Waring (for federal costs), Sarah Puro (for the state and local 
impact), and Fatimot Ladipo (for the private-sector impact).
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 5782--Pipeline Safety Improvement Act of 2006

    Summary: Under current law, the Pipeline and Hazardous 
Materials Safety Administration (PHMSA) within the Department 
of Transportation (DOT) oversees the safety of pipelines that 
carry either gas or hazardous liquids and provides grants to 
states for pipeline safety programs. For these activities, H.R. 
5782 would authorize gross appropriations of about $330 million 
over the 2007-2010 period. Under the bill, about $253 million 
of those appropriations would be offset by the collection of 
fees paid by pipeline operators over the five-year period.
    In addition, the bill would authorize the appropriation of 
$24 million over the 2007-2010 period for PHMSA to provide 
grants to local governments for emergency management and would 
authorize the appropriation of $8 million over the period for 
grants to state programs that help excavators coordinate their 
work with the operators of underground pipelines and grants to 
local communities to improve pipeline safety. Finally, CBO 
estimates that implementing certain studies and rules required 
by the bill would cost about $1 million over the 2007-2010 
period, assuming appropriation of the necessary amounts.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing H.R. 5782 would have a net cost of 
$93 million over the 2007-2011 period. Enacting H.R. 5782 also 
would affect revenues, but CBO estimates that such effects 
would not be significant. Enacting the bill would not affect 
direct spending.
    H.R. 5782 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA). CBO estimates that the 
aggregate costs to state, local, and tribal governments, while 
uncertain, likely would not exceed the threshold established in 
UMRA ($64 million in 2006, adjusted annually for inflation).
    H.R. 5782 also contains private-sector mandates, as defined 
in UMRA, on operators of distribution and transmission 
pipelines for natural gas or liquids by increasing fees and 
imposing new safety standards. Because many of those mandates 
would require the Department of Transportation to prescribe new 
safety standards for which information currently is not 
available, CBO cannot determine the direct costs of complying 
with all of the mandates in the bill or whether the costs would 
exceed the annual threshold established by UMRA ($128 million 
for private-sector mandates in 2006, adjusted annually for 
inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5782 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2006    2007    2008    2009    2010    2011
----------------------------------------------------------------------------------------------------------------
                                       SPENDING SUBJECT TO APPROPRIATIONa

Pipeline Safety Spending Under Current Law:
    Estimated Net Budget Authorityb.............................      14       0       0       0       0       0
    Estimated Outlays...........................................      12      34      10       2       0       0
Proposed Changes:
    Estimated Net Authorization levelb..........................       0      28      27      28      28       0
    Estimated Net Outlays.......................................       0     -15      13      22      25      48
Pipeline Safety Spending Under H.R. 5782:
    Estimated Authorization Level...............................      14      28      27      28      28       0
    Estimated Outlays...........................................      12      19      23      24      25      48
----------------------------------------------------------------------------------------------------------------
aH.R. 5782 also would increase revenues, but CBO estimates that those effects would not be significant.
bThe amounts shown are the difference between the bill's authorized funding levels, estimated outlays, and
  estimated fee collections for each year.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
5782 will be enacted near the start of fiscal year 2007 and 
that the authorized amounts will be appropriated for each year. 
Outlay estimates are based on the historical spending patterns 
of pipeline safety programs.

    CBO estimates that implementing H.R. 5782 would cost $93 
million over the 2007-2011 period. This estimate includes net 
spending of about $63 million for PHMSA's oversight activities 
and grants to state safety programs, reflecting the difference 
between gross authorized appropriations of about $330 million 
over the 2007-2010 period and authorized collections of almost 
$253 million from pipeline user fees over the same period. The 
gross authorization for those activities would average more 
than $80 million a year, and the fees would average more than 
$60 million a year. By comparison, the gross appropriation for 
those pipeline safety activities was $72 million in 2006, and 
CBO estimates that fee collections will total $58 million.
    H.R. 5782 would impose civil penalties on any person who 
excavates in areas containing pipeline facilities without 
verifying the location of the pipelines or any person who fails 
to use location information provided at the site. Collections 
of these penalties are recorded in the budget as revenues. CBO 
estimates that implementing this legislation would increase 
penalties by less than $500,000 a year.
    Estimated impact on state, local, and tribal governments: 
H.R. 5782 contains intergovernmental mandates as defined in 
UMRA because it would place new requirements on operators of 
natural gas pipelines--including about 1,000 that are publicly 
operated. Specifically, section 3 would require pipeline 
operators to place certain equipment on service lines installed 
or repaired after enactment of the bill. The bill also would 
impose new federal standards for pipeline operators as well as 
new reporting requirements. Based on information from industry 
and governmental sources, CBO estimates that the aggregate 
costs to state, local, and tribal governments, while uncertain, 
likely would not exceed the threshold established in UMRA ($64 
million in 2006, adjusted annually for inflation).
    Estimated impact on the private sector: H.R. 5782 contains 
private-sector mandates, as defined in UMRA, on operators of 
distribution and transmission pipelines for natural gas or 
liquids by increasing fees and imposing new safety standards. 
Because many of those mandates would require DOT to prescribe 
new safety standards for which information currently is not 
available, CBO cannot determine the direct costs of complying 
with all of the mandates in the bill or whether the costs would 
exceed the annual threshold established by UMRA ($128 million 
for private-sector mandates in 2006, adjusted annually for 
inflation).

Pipeline safety fees

    Section 2 contains a mandate on gas and liquid transmission 
operators. Under current law the Secretary collects fees from 
pipeline operators to offset a large portion of its gross 
appropriations. The provisions in this section would authorize 
the Secretary of Transportation to increase the pipeline safety 
user fee assessed to those operators. In general, the amount of 
fees collected under the bill would depend on the level of 
future appropriations. CBO expects that the annual fees 
collected over the 2007-2010 period would be higher than they 
were in previous years and that the fees collected would 
average more than $60 million a year over that period. By 
comparison, CBO estimates that fee collections in 2006 will 
total $58 million.

Safety requirements

    The bill would require operators of distribution pipelines 
to comply with a new distribution integrity management program 
to be established by DOT. Additionally, the bill would impose 
new federal standards for managing gas and hazardous liquid 
pipelines to reduce risks associated with human factors, 
including fatigue on all pipeline operators. Further, the bill 
would impose a new standard on all liquid pipeline operators, 
requiring them to implement some of the National Transportation 
Safety Board's recommendations on pipeline safety. Because the 
integrity management program and the safety standards would 
depend on the actions to be taken by the Secretary of 
Transportation, CBO has no basis for estimating the costs to 
the industry to comply with those regulations.
    The bill also would require operators of gas and hazardous 
liquid pipelines to provide data relating to controller fatigue 
when completing Department of Transportation accident reporting 
forms. According to industry sources, the cost of complying 
with this mandate would be nominal.
    Estimate prepared by: Federal Costs: Gregory Waring. Impact 
on State, Local, and Tribal Governments: Sarah Puro. Impact on 
the Private Sector: Fatimot Ladipo.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 5782 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act. (Public Law 
104-1).

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *



SUBTITLE III--GENERAL AND INTERMODAL PROGRAMS

           *       *       *       *       *       *       *


CHAPTER 61--ONE-CALL NOTIFICATION PROGRAMS

           *       *       *       *       *       *       *



Sec. 6107. Authorization of appropriations

  (a) For Grants to States.--There are authorized to be 
appropriated to the Secretary to provide grants to States under 
section 6106 $1,000,000 for each of [fiscal years 2003 through 
2006] fiscal years 2007 through 2010.
  (b) For Administration.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to 
carry out sections 6103, 6104, and 6105 [for fiscal years 2003 
through 2006] for fiscal years 2007 through 2010.

           *       *       *       *       *       *       *


SUBTITLE VIII--PIPELINES

           *       *       *       *       *       *       *


                          CHAPTER 601--SAFETY

Sec.
60101.  Definitions.
     * * * * * * *
60134.  State damage prevention programs.
60135.  Petroleum product transportation capacity study.
     * * * * * * *

Sec. 60102. Purpose and general authority

  (a)  * * *

           *       *       *       *       *       *       *

  [(k)ProhibitionAgainstLowInternalStressException.]
  (k) Low-Stress Hazardous Liquid Pipelines.--
          (1) Minimum standards.--Not later than 1 year after 
        the date of enactment of this paragraph, the Secretary 
        shall issue minimum standards for the transportation of 
        hazardous liquids by low-stress pipelines located in 
        proximity to areas unusually sensitive to environmental 
        damage as defined by the Secretary under section 
        60109(b) and by regulation.
          (2) Low-stress pipeline defined.--For purposes of 
        this subsection (other than paragraph (5)), a ``low-
        stress pipeline'' means a hazardous liquid pipeline 
        that is operated in its entirety at a stress level of 
        20 percent or less of the specified minimum yield 
        strength of the line pipe of the pipeline and has a 
        diameter of greater than 8\5/8\ inches.
          (3) Applicability.--The Secretary shall determine 
        which low-stress pipelines are subject to the minimum 
        standards issued under this subsection.
          (4) Requirement.--Each operator of a low-stress 
        pipeline that the Secretary determines is subject to 
        the minimum standards issued by the Secretary under 
        this subsection shall operate the pipeline in 
        accordance with those standards.
          (5) Prohibition against exception.--The Secretary may 
        not provide an exception to this chapter for a 
        hazardous liquid pipeline facility only because the 
        facility operates at low internal stress.

           *       *       *       *       *       *       *


Sec. 60105. State pipeline safety program certifications

  (a)  * * *
  (b) Contents.--Each certification submitted under subsection 
(a) of this section shall state that the State authority--
          (1)  * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *


Sec. 60107. State pipeline safety grants

  (a) General Authority.--If a State authority files an 
application not later than September 30 of a calendar year, the 
Secretary of Transportation shall pay [not more than 50 
percent] not more than 80 percent of the cost of the personnel, 
equipment, and activities the authority reasonably requires 
during the next calendar year--
          (1)  * * *

           *       *       *       *       *       *       *


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

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Distribution Integrity Management Programs.--
          (1) Minimum standards.--Not later than 1 year after 
        the date of enactment of this subsection, the Secretary 
        shall prescribe minimum standards for integrity 
        management programs for distribution pipelines.
          (2) Additional authority of secretary.--In carrying 
        out this subsection, the Secretary may require 
        operators of distribution pipelines to continually 
        identify and assess risks on their distribution lines, 
        to remediate conditions that present a potential threat 
        to line integrity, and to monitor program 
        effectiveness.
          (3) Excess flow valves.--The minimum standards shall 
        include criteria for requiring operators of natural gas 
        distribution systems--
                  (A) to install excess flow valves on single-
                family residential service lines that are 
                installed or replaced after the date of 
                enactment of this subsection on the basis of 
                feasibility and risk analysis; and
                  (B) to report to the Secretary annually on 
                the number of excess flow valves installed on 
                their systems under subparagraph (A).
          (4) Applicability.--The Secretary shall determine 
        which distribution pipelines will be subject to the 
        minimum standards.
          (5) Development and implementation.--Each operator of 
        a distribution pipeline that Secretary determines is 
        subject to the minimum standards prescribed by the 
        Secretary under this subsection shall develop and 
        implement an integrity management program in accordance 
        with those standards.

           *       *       *       *       *       *       *


Sec. 60114. One-call notification systems

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Enforcement.--Any person who engages in excavation 
activity without first using an available one-call notification 
system to establish the location of underground pipeline 
facilities in the excavation area or who disregards location 
information or markings established by an operator of a 
pipeline facility, and any operator of a pipeline facility who 
fails to respond to a location request in order to prevent 
damage to the pipeline or fails to take reasonable steps, in 
response to such a request, to ensure accurate marking of the 
location of the pipeline in order to prevent damage to the 
pipeline, shall be subject to a civil action under section 
60120 or assessment of a civil penalty under section 60122.
  (e) Limitation.--The Secretary may not conduct an enforcement 
proceeding under subsection (d) within the boundaries of a 
State that has the authority to impose penalties described in 
section 60134(b)(7) against persons who violate that State's 
damage prevention laws and is imposing such penalties.

           *       *       *       *       *       *       *


Sec. 60118. Compliance and waivers

  (a)  * * *

           *       *       *       *       *       *       *

  [(c) Waivers by Secretary.--On application of a person owning 
or operating a pipeline facility, the Secretary by order may 
waive compliance with any part of an applicable standard 
prescribed under this chapter on terms the Secretary considers 
appropriate, if the waiver is not inconsistent with pipeline 
safety. The Secretary shall state the reasons for granting a 
waiver under this subsection. The Secretary may act on a waiver 
only after notice and an opportunity for a hearing.]
  (c) Waivers by Secretary.--
          (1) Nonemergency waivers.--
                  (A) In general.--On application of a person 
                owning or operating a pipeline facility, the 
                Secretary by order may waive compliance with 
                any part of an applicable standard prescribed 
                under this chapter on terms the Secretary 
                considers appropriate if the waiver is not 
                inconsistent with pipeline safety.
                  (B) Hearing.--The Secretary may act on a 
                nonemergency waiver under this paragraph only 
                after notice and an opportunity for a hearing.
          (2) Emergency waivers.--The Secretary by order may 
        waive compliance with any part of an applicable 
        standard prescribed under this chapter on terms the 
        Secretary considers appropriate without prior notice 
        and comment if the Secretary determines that the waiver 
        is necessary to address an actual or impending 
        emergency involving pipeline transportation, including 
        emergencies caused by natural or manmade disasters.
          (3) Statement of reasons.--The Secretary shall state 
        in an order issued under this subsection the reasons 
        for granting the waiver.

           *       *       *       *       *       *       *


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(b), 60114(d), or 
60118(a) 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 $100,000 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 $1,000,000.

           *       *       *       *       *       *       *


Sec. 60125. Authorization of appropriations

  [(a) Gas and Hazardous Liquid.--To carry out this chapter 
(except for section 60107) related to gas and hazardous liquid, 
the following amounts are authorized to be appropriated to the 
Department of Transportation:
          [(1) $45,800,000 for fiscal year 2003, of which 
        $31,900,000 is to be derived from user fees for fiscal 
        year 2003 collected under section 60301 of this title.
          [(2) $46,800,000 for fiscal year 2004, of which 
        $35,700,000 is to be derived from user fees for fiscal 
        year 2004 collected under section 60301 of this title.
          [(3) $47,100,000 for fiscal year 2005, of which 
        $41,100,000 is to be derived from user fees for fiscal 
        year 2005 collected under section 60301 of this title.
          [(4) $50,000,000 for fiscal year 2006, of which 
        $45,000,000 is to be derived from user fees for fiscal 
        year 2006 collected under section 60301 of this title.]
  (a) Gas and Hazardous Liquid.--To carry out this chapter 
(except for section 60107) related to gas and hazardous liquid, 
the following amounts are authorized to be appropriated to the 
Department of Transportation:
          (1) For fiscal year 2007, $55,497,000, of which 
        $39,872,000 is to be derived from user fees collected 
        under section 60301 and $15,625,000 is to be derived 
        from the Oil Spill Liability Trust Fund established by 
        section 9509 of the Internal Revenue Code of 1986.
          (2) For fiscal year 2008, $57,997,000, of which 
        $42,651,000 is to be derived from such fees and 
        $15,346,000 is to be derived from the Fund.
          (3) For fiscal year 2009, $60,482,000, of which 
        $44,839,000 is to be derived from such fees and 
        $16,003,000 is to be derived from the Fund.
          (4) For fiscal year 2010, $62,375,000, of which 
        $46,444,000 is to be derived from such fees and 
        $15,931,000 is to be derived from the Fund.
  (b) State Grants.--[(1) Not more than the following amounts 
may be appropriated to the Secretary to carry out section 60107 
of this title:
          [(A) $19,800,000 for fiscal year 2003, of which 
        $14,800,000 is to be derived from user fees for fiscal 
        year 2003 collected under section 60301 of this title.
          [(B) $21,700,000 for fiscal year 2004, of which 
        $16,700,000 is to be derived from user fees for fiscal 
        year 2004 collected under section 60301 of this title.
          [(C) $24,600,000 for fiscal year 2005, of which 
        $19,600,000 is to be derived from user fees for fiscal 
        year 2005 collected under section 60301 of this title.
          [(D) $26,500,000 for fiscal year 2006, of which 
        $21,500,000 is to be derived from user fees for fiscal 
        year 2006 collected under section 60301 of this 
        title.](1) To carry out section 60107, the following 
        amounts are authorized to be appropriated to the 
        Department of Transportation:
          (A) For fiscal year 2007, $20,238,000, of which 
        $17,053,000 is to be derived from user fees collected 
        under section 60301 and $3,185,000 is to be derived 
        from the Oil Spill Liability Trust Fund.
          (B) For fiscal year 2008, $23,221,000, of which 
        $19,567,000 is to be derived from such fees and 
        $3,654,000 is to be derived from the Fund. Of the 
        amounts so appropriated, $1,500,000 shall be available 
        for grants to States under section 60134.
          (C) For fiscal year 2009, $24,513,000, of which 
        $20,656,000 is to be derived from such fees and 
        $3,857,000 is to be derived from the Fund. Of the 
        amount so appropriated, $1,750,000 shall be available 
        for grants to States under section 60134.
          (D) For fiscal year 2010, $25,855,000, of which 
        $21,786,000 is to be derived from such fees and 
        $4,069,000 is to be derived from the Fund. Of the 
        amount so appropriated, $2,000,000 shall be available 
        for grants to States under section 60134.

           *       *       *       *       *       *       *

  [(c) Oil Spill Liability Trust Fund.--Of the amounts 
available in the Oil Spill Liability Trust Fund, $8,000,000 
shall be transferred to the Secretary of Transportation, as 
provided in appropriation Acts, to carry out programs 
authorized in this chapter for each of fiscal years 2003 
through 2006.]
  [(d)] (c) Emergency Response Grants.--
          (1)  * * *
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated $6,000,000 for each of 
        fiscal years [2003 through 2006] 2007 through 2010 to 
        carry out this subsection.
  [(e)] (d) Crediting Appropriations for Expenditures for 
Training.--The Secretary may credit to an appropriation 
authorized under subsection (a) amounts received from sources 
other than the Government for reimbursement for expenses 
incurred by the Secretary in providing training.

           *       *       *       *       *       *       *


Sec. 60130. Pipeline safety information grants to communities

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There is authorized to 
be appropriated to the Secretary of Transportation for carrying 
out this section $1,000,000 for each of the fiscal years 2003 
through [2006] 2010. Such amounts shall not be derived from 
user fees collected under section 60301.

           *       *       *       *       *       *       *


Sec. 60134. State damage prevention programs

  (a) In General.--The Secretary may make a grant to a State 
authority (including a municipality with respect to intrastate 
gas pipeline transportation) to assist in improving the overall 
quality and effectiveness of a damage prevention program of the 
State authority under subsection (e) if the State authority--
          (1)(A) has an annual certification in accordance with 
        section 60105 for such fiscal year; or
          (B) has an agreement with the Secretary in accordance 
        with section 60106; and
          (2) has agreed to take actions toward establishing an 
        effective damage prevention program that meets the 
        requirements of subsection (b).
  (b) Damage Prevention Program Elements.--An effective damage 
prevention program includes the following elements:
          (1) Participation by operators, excavators, and other 
        stakeholders in the development and implementation of 
        methods for establishing and maintaining effective 
        communications between stakeholders from receipt of an 
        excavation notification until successful completion of 
        the excavation, as appropriate.
          (2) A process for fostering and ensuring the support 
        and partnership of stakeholders, including excavators, 
        operators, locators, designers, and local government in 
        all phases of the program.
          (3) A process for reviewing the adequacy of a 
        pipeline operator's internal performance measures 
        regarding persons performing locating services and 
        quality assurance programs.
          (4) Participation by operators, excavators, and other 
        stakeholders in the development and implementation of 
        effective employee training programs to ensure that 
        operators, the one-call center, the enforcing agency, 
        and the excavators have partnered to design and 
        implement training for the employees of operators, 
        excavators, and locators.
          (5) A process for fostering and ensuring active 
        participation by all stakeholders in public education 
        for damage prevention activities.
          (6) A process for resolving disputes that defines the 
        State authority's role as a partner and facilitator to 
        resolve issues.
          (7) Enforcement of State damage prevention laws and 
        regulations for all aspects of the damage prevention 
        process, including public education, and the use of 
        civil penalties for violations assessable by the 
        appropriate State authority.
          (8) A process for fostering and promoting the use, by 
        all appropriate stakeholders, of improving technologies 
        that may enhance communications, underground pipeline 
        locating capability, and gathering and analyzing 
        information about the accuracy and effectiveness of 
        locating programs.
          (9) A process for review and analysis of the 
        effectiveness of each program element, including a 
        means for implementing improvements identified by such 
        program reviews.
  (c) Factors To Consider.--In making grants under this 
section, the Secretary shall take into consideration the 
commitment of each State to ensuring the effectiveness of its 
damage prevention program, including legislative and regulatory 
actions taken by the State.
  (d) Application.--If a State authority files an application 
for a grant under this section not later than September 30 of a 
calendar year and demonstrates that the Governor (or chief 
executive) of the State has designated it as the appropriate 
State authority to receive the grant, the Secretary shall 
review the State's damage prevention program to determine its 
effectiveness.
  (e) Grants for Effective Programs.--For a program of a State 
authority the Secretary determines to be effective, the 
Secretary may make a grant to the State authority for the cost 
of the personnel, equipment, and activities the State authority 
reasonably requires during the next calendar year to carry out 
its damage prevention program in accordance with subsection 
(b).
  (f) Nonapplicability of Limitation.--A grant made under this 
section is not subject to the section 60107(a) limitation on 
the maximum percentage of funds to be paid by the Secretary.
  (g) Limitation on Use of Funds.--Funds provided under this 
section may not be used for lobbying or in direct support of 
litigation.
  (h) Funding.--To carry out this section, the Secretary shall 
make available (from amounts appropriated to the Secretary 
under section 60125(b) for each of fiscal years 2008 through 
2010) the following respective amounts:
          (1) $1,500,000 for fiscal year 2008.
          (2) $1,750,000 for fiscal year 2009.
          (3) $2,000,000 for fiscal year 2010.
Such funds shall remain available until expended.

Sec. 60135. Petroleum product transportation capacity study

  (a) In General.--The Secretary of Transportation may conduct 
analyses of the domestic transport of petroleum products by 
pipeline. Such analyses should identify areas of the United 
States where shortages of pipeline capacity and reliability 
concerns exist, where such shortages have or are anticipated to 
contribute to significant increases in the price of petroleum 
products, or where unplanned loss of individual pipelines may 
cause shortages of petroleum products or price disruptions.
  (b) Consultation.--In preparing any analysis under this 
section, the Secretary may consult with other government 
agencies and public- and private-sector experts in pipeline and 
other forms of petroleum product transportation, energy 
consumption, capacity, population and economic development.
  (c) Petroleum Product Defined.--In this section, the term 
``petroleum product'' means oil of any kind or in any form, 
gasoline, diesel fuel, aviation fuel, fuel oil, kerosene, any 
product obtained from refining or processing of crude oil, 
liquefied petroleum gases, natural gas liquids, petrochemical 
feedstocks, condensate, waste or refuse mixtures containing any 
of such oil products, and any other liquid hydrocarbon 
compounds.

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