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





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

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



 
                PIPELINE SAFETY IMPROVEMENT ACT OF 2006

                                _______
                                

                December 5, 2006.--Ordered to be printed

                                _______
                                

    Mr. Barton of Texas, from the Committee on Energy and Commerce, 
                        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 Energy and Commerce, 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.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     7
Background and Need for Legislation..............................     7
Hearings.........................................................     9
Committee Consideration..........................................     9
Committee Votes..................................................     9
Committee Oversight Findings.....................................    10
Statement of General Performance Goals and Objectives............    10
New Budget Authority, Entitlement Authority, and Tax Expenditures    10
Earmark..........................................................    10
Committee Cost Estimate..........................................    10
Congressional Budget Office Estimate.............................    10
Federal Mandates Statement.......................................    14
Advisory Committee Statement.....................................    14
Constitutional Authority Statement...............................    14
Applicability to Legislative Branch..............................    14
Section-by-Section Analysis of the Legislation...................    14
Changes in Existing Law Made by the Bill, as Reported............    18

                               Amendment

  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. Authorization of appropriations.

SEC. 2. PIPELINE SAFETY AND DAMAGE PREVENTION.

  (a) One Call Civil Enforcement.--(1) Section 60114 is amended by 
adding at the end the following new subsections:
  ``(d) Prohibition.--A person who engages in demolition, excavation, 
tunneling, or construction--
          ``(1) may not engage in such demolition, excavation, 
        tunneling, or construction activity in a State that has adopted 
        a one-call notification system without first using that system 
        to establish the location of underground facilities in the 
        demolition, excavation, tunneling, or construction area;
          ``(2) may not engage in such demolition, excavation, 
        tunneling, or construction activity in disregard of location 
        information or markings established by a pipeline facility 
        operator pursuant to subsection (b);
          ``(3) may not fail to take reasonable steps to ensure safe 
        demolition, excavation, tunneling, or construction to prevent 
        damage to a pipeline; and
          ``(4) if the person damages, or becomes aware of damage to, a 
        pipeline facility and such damage may endanger life or cause 
        serious bodily harm or damage to property, may not fail to 
        promptly report the damage to the owner or operator of the 
        facility and, if the damage results in the escape of any 
        flammable, toxic, or corrosive gas or liquid, may not fail to 
        promptly report to other appropriate authorities by calling the 
        911 emergency telephone number.
  ``(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, unless 
the Secretary has determined that the State's enforcement is inadequate 
to protect safety, consistent with this chapter.''.
  (2) Section 60122(a)(1) is amended by striking ``60114(b)'' and 
inserting ``60114(b) or (d)''.
  (b) State Damage Prevention Programs.--(1) Section 60105(b)(4) is 
amended to read as follows:
          ``(4) is encouraging and promoting the establishment of a 
        program designed to prevent damage by demolition, excavation, 
        tunneling, or construction activity to the pipeline facilities 
        to which the certification applies that subjects persons who 
        violate the applicable requirements of that program to civil 
        penalties and other enforcement actions that are substantially 
        the same as are provided under this chapter, and addresses the 
        elements in section 60134(b);''.
  (2) Chapter 601 is amended by adding at the end the following new 
section:

``Sec. 60134. State damage prevention programs

  ``(a) Eligibility.--A State authority (including a municipality if 
the agreement under section 60106(a) or (b) applies to intrastate gas 
pipeline transportation) shall be eligible for a grant under this 
section only if--
          ``(1) it has an annual certification under section 60105 or 
        an agreement under section 60106; and
          ``(2) either--
                  ``(A) it is from a State that has an effective damage 
                prevention program that meets the requirements of 
                subsection (b); or
                  ``(B) it demonstrates that it has made substantial 
                progress toward establishing such a program, and that 
                such program will meet 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 among 
        stakeholders from receipt of a notification of demolition, 
        excavation, tunneling, or construction until successful 
        completion of the demolition, excavation, tunneling, or 
        construction, 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, the one-call 
        center, the enforcing agency, and other stakeholders in the 
        development and implementation of effective training programs 
        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 demolition, excavation, 
        tunneling, or construction process, including public education, 
        and the use of civil penalties for violations assessable by the 
        appropriate State authority.
          ``(8) A process for fostering and promoting the use, by all 
        appropriate stakeholders, of improving technologies that may 
        enhance communications, underground pipeline locating 
        capability, and gathering and analyzing information about the 
        accuracy and effectiveness of locating programs.
          ``(9) A process for review and analysis of the effectiveness 
        of each program element, including a means for implementing 
        improvements identified by such program reviews.
  ``(c) Grants to States.--
          ``(1) In general.--The Secretary may make a grant of 
        financial assistance to a State authority that is eligible 
        under this section to assist in improving the overall quality 
        and effectiveness of a damage prevention program of a State. In 
        making grants under this section, the Secretary shall take into 
        consideration the commitment of each State to ensuring the 
        effectiveness of its damage prevention program, including 
        legislative and regulatory actions taken by the State.
          ``(2) Application.--If a State authority files an application 
        for a grant under this section not later than September 30 of a 
        calendar year, the Secretary of Transportation shall review the 
        State's damage prevention program to determine its 
        effectiveness. For programs determined to be effective, the 
        Secretary may make a grant of financial assistance for the cost 
        of the personnel, equipment, and activities the authority 
        reasonably requires during the next calendar year to carry out 
        an effective damage prevention enforcement program. 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. Funds provided under this section may not be used 
        for lobbying or in direct support of litigation.''.
  (3) In the table of sections of chapter 601, the following item is 
added at the end:

``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''.
  (d) Damage Prevention Technology Development.--Section 60114 (as 
amended by this section) is further amended by adding at the end the 
following new subsection:
  ``(f) Technology Development Grants.--To the extent and in the amount 
provided in advance in appropriations acts, the Secretary may make 
grants to any organization or entity (not including for-profit 
entities) for the development of technologies that will facilitate the 
prevention of pipeline damage caused by demolition, excavation, 
tunneling, or construction activities, with emphasis on wireless and 
global positioning technologies having potential for use in connection 
with notification systems and underground facility locating and marking 
services. Funds provided under this subsection may not be used for 
lobbying or in direct support of litigation. The Secretary may also 
support such technology development through cooperative agreements with 
trade associations, academic institutions, and other organizations.''.
  (e) Public Education and Awareness.--
          (1) Amendment.--Chapter 61 of title 49, United States Code, 
        is amended by adding at the end the following new section:

``Sec. 6109. Public education and awareness

  ``(a) Grant Authority.--The Secretary shall make a grant to an 
appropriate entity for promoting public education and awareness with 
respect to the 811 national excavation damage prevention phone number.
  ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $1,000,000 for fiscal year 2007 for 
carrying out this section.''.
          (2) Conforming amendment.--The table of sections of chapter 
        61 of title 49, United States Code, is amended by adding at the 
        end the following new item:

``6109. Public education and awareness.''.

  (f) Safety Orders.--Section 60117(l) is amended to read as follows:
  ``(l) Safety Orders.--
          ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Pipeline Safety and Improvement Act of 2006, 
        the Secretary shall issue regulations providing that, after 
        notice and opportunity for a hearing, if the Secretary 
        determines that a pipeline facility has a condition that poses 
        a pipeline integrity risk to public safety, property, or the 
        environment, the Secretary may order the operator of the 
        facility to take necessary corrective action, including 
        physical inspection, testing, repair, replacement, or other 
        appropriate action, to remedy that condition.
          ``(2) Considerations.--In making a determination under 
        paragraph (1), the Secretary shall, if relevant, and pursuant 
        to the regulations issued under paragraph (1), consider--
                  ``(A) the considerations specified in section 
                60112(b);
                  ``(B) the likelihood that the condition will impair 
                the serviceability of a pipeline;
                  ``(C) the likelihood that the condition will worsen 
                over time; and
                  ``(D) the likelihood that the condition is present or 
                could develop on other areas of the pipeline.''.
  (g) Integrity Program Enforcement.--Section 60109(c)(9)(A)(iii) is 
amended to read as follows:
                            ``(iii) Inadequate programs.--If the 
                        Secretary determines that a risk analysis or 
                        integrity management program does not comply 
                        with the requirements of this subsection or 
                        regulations issued as described in paragraph 
                        (2), has not been adequately implemented, or is 
                        inadequate for the safe operation of a pipeline 
                        facility, the Secretary may conduct proceedings 
                        under sections 60108(a), 60112, 60118(a) and 
                        (b), 60120, 60122, or any other section of this 
                        chapter.''.
  (h) Low-Stress Pipelines.--Section 60102(k) is amended to read as 
follows:
  ``(k) Low-Stress Hazardous Liquid Pipelines.--
          ``(1) Minimum standards.--Not later than 12 months after the 
        date of enactment of the Pipeline Safety Improvement Act of 
        2006, the Secretary shall issue regulations subjecting low-
        stress hazardous liquid pipelines to the same standards and 
        regulations as other hazardous liquid pipelines, except as 
        provided in paragraph (3). The implementation of the applicable 
        standards and regulatory requirements may be phased in. The 
        regulations issued under this paragraph shall not apply to 
        gathering lines.
          ``(2) General prohibition against low internal stress 
        exception.--Except as provided in paragraph (3), the Secretary 
        may not provide an exception to the requirements of this 
        chapter for a hazardous liquid pipeline because the pipeline 
        operates at low internal stress.
          ``(3) Limited exceptions.--The Secretary shall provide or 
        continue in force exceptions to this subsection for low-stress 
        hazardous liquid pipelines that--
                  ``(A) are subject to safety regulations of the United 
                States Coast Guard; or
                  ``(B) serve refining, manufacturing, or truck, rail, 
                or vessel terminal facilities, if the pipeline is less 
                than 1 mile long (measured outside the facility 
                grounds) and does not cross an offshore area or a 
                waterway currently used for commercial navigation,
        until regulations issued under paragraph (1) become effective, 
        after which the Secretary may retain or remove those exceptions 
        as appropriate.
          ``(4) Relationship to other laws.--Nothing in this subsection 
        shall be construed to prohibit or otherwise affect the 
        applicability of any other statutory or regulatory exemption to 
        any hazardous liquid pipeline.
          ``(5) Definition.--For purposes of this subsection, the term 
        `low-stress hazardous liquid 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.
          ``(6) Effective date.--The requirements of this subsection 
        shall not take effect as to low-stress hazardous liquid 
        pipeline operators before the effective date of the rules 
        promulgated by the Secretary under this subsection.''.
  (i) Corrosion Control Regulations.--The Secretary of Transportation, 
in consultation with the Technical Hazardous Liquid Pipeline Safety 
Standards Committee and other appropriate entities, shall review the 
internal corrosion control regulations set forth in subpart H of part 
195 of title 49 of the Code of Federal Regulations to determine if such 
regulations are currently adequate to ensure that the pipeline 
facilities subject to such regulations will not present a hazard to 
public safety or the environment. The Secretary shall submit a report 
to the Congress within one year after the date of enactment of this Act 
containing the results of such review, and may modify such regulations 
if necessary and appropriate.
  (j) Critical Energy Infrastructure Study.--The Secretary of Energy, 
in consultation with the Secretary of Transportation, shall analyze the 
domestic transport of crude oil and other petroleum products by 
pipeline. Such analysis shall identify areas where reliability concerns 
exist or where failure or unplanned loss of individual pipeline 
facilities may cause shortages of crude oil or other petroleum products 
or price disruptions. Not later than one year after the date of 
enactment of this Act, the Secretaries shall submit a report to the 
Congress setting forth their recommendations to reduce the likelihood 
of such shortages or disruptions.
  (k) Natural Gas Pipelines.--The Secretary shall review and comment on 
the Comptroller General report issued under section 14(d)(1) of the 
Pipeline Safety Improvement Act of 2002 (49 U.S.C. 60109 note), and not 
later than 60 days after the date of enactment of this Act, transmit to 
the Congress any legislative recommendations the Secretary considers 
necessary and appropriate to implement the conclusions of that report.
  (l) Technical Assistance Grants.--Section 60130 is amended--
          (1) in subsection (a)(1) by striking ``The Secretary shall 
        establish competitive'' and insert ``No grants may be awarded 
        under section 60114(e) until the Secretary has established 
        competitive'';
          (2) by redesignating paragraph (2) of subsection (a) as 
        paragraph (4);
          (3) by inserting after paragraph (1) of subsection (a) the 
        following new paragraphs:
          ``(2) Demonstration grants.--At least the first 3 grants 
        awarded under this section shall be demonstration grants for 
        the purpose of demonstrating and evaluating the utility of 
        grants under this section. Each such demonstration grant shall 
        not exceed $25,000.
          ``(3) Dissemination of technical findings.--Each recipient of 
        a grant under this section shall ensure that the technical 
        findings made possible by the grants are made available to the 
        relevant operators, and that open communication between the 
        grant recipients, local operators, local communities, and other 
        interested parties is encouraged.''; and
          (4) in subsection (d) by striking ``2006'' and inserting 
        ``2010''.
  (m) Enforcement Transparency.--(1) Chapter 601, as amended by this 
section, is amended by adding at the end the following new section:

``Sec. 60135. Enforcement transparency

  ``(a) In General.--Not later than 12 months after the date of 
enactment of this section, the Secretary shall--
          ``(1) provide a monthly updated summary to the public of all 
        gas and hazardous liquid pipeline enforcement actions taken by 
        the Secretary or the Pipeline and Hazardous Materials Safety 
        Administration, from the time a notice commencing an 
        enforcement action is issued until the enforcement action is 
        final. Each summary shall include identification of the 
        operator involved in the enforcement activity, the type of 
        alleged violation, the penalty or penalties proposed, any 
        changes in case status since the previous summary, the final 
        assessment amount of each penalty, and the reasons for a 
        reduction in the proposed penalty, if appropriate; and
          ``(2) provide a mechanism by which a pipeline operator named 
        in an enforcement action may make information, explanations, or 
        documents it believes are responsive to the enforcement action 
        available to the public.
  ``(b) Electronic Posting.--Each summary required under this section 
shall be made available to the public via posting by electronic means.
  ``(c) Relationship to FOIA.--Nothing in this section shall be 
construed to require disclosure of information or records that would be 
exempt from disclosure under section 552 of title 5, United States Code 
(commonly known as the Freedom of Information Act).''.
  (2) In the table of sections of chapter 601, as amended by this 
section, the following item is added at the end:

``60135. Enforcement transparency.''.

  (n) Cost Reimbursements.--Section 60117 is amended by adding at the 
end the following new subsection:
  ``(m) Cost Recovery for Design Reviews.--If the Secretary conducts 
facility design safety reviews in connection with a proposal to 
construct, expand, or operate a liquefied natural gas pipeline 
facility, the Secretary may require the person requesting such reviews 
to pay the associated staff costs relating to such reviews incurred by 
the Secretary, such funds to be deposited into the pipeline safety 
fund. Funds deposited pursuant to this section are authorized to be 
appropriated for the purposes set forth in section 60301(d). The 
Secretary may assess such costs in any reasonable manner.''.
  (o) Direct Line Sales.--Section 60101(a) is amended--
          (1) by amending paragraph (6) to read as follows:
          ``(6) `interstate gas pipeline facility' means a gas pipeline 
        facility--
                  ``(A) used to transport gas; and
                  ``(B) subject to the jurisdiction of the Commission 
                under the Natural Gas Act (15 U.S.C. 717 et seq.);''; 
                and
          (2) by amending paragraph (9) to read as follows:
          ``(9) `intrastate gas pipeline facility' means a gas pipeline 
        facility and transportation of gas within a State not subject 
        to the jurisdiction of the Commission under the Natural Gas Act 
        (15 U.S.C. 717 et seq.);''.

SEC. 3. DISTRIBUTION INTEGRITY MANAGEMENT PROGRAM RULEMAKING DEADLINE.

  Section 60109 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(e) Distribution Integrity Management Programs.--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.''.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

  (a) Section 60125(a) is amended to read as follows:
  ``(a) Gas and Hazardous Liquid.--To carry out this chapter (except 
for section 60107) related to gas and hazardous liquid, the following 
amounts are authorized to be appropriated to the Secretary, from fees 
collected under section 60301 in each respective year, and from the Oil 
Spill Liability Trust Fund:
          ``(1) For fiscal year 2007, $55,497,000, of which $39,872,000 
        shall be from fees and $15,625,000 shall be from the Fund.
          ``(2) For fiscal year 2008, $57,997,000, of which $42,651,000 
        shall be from fees and $15,346,000 shall be from the Fund.
          ``(3) For fiscal year 2009, $60,482,000, of which $44,839,000 
        shall be from fees and $15,643,000 shall be from the Fund.
          ``(4) For fiscal year 2010, $62,375,000, of which $46,444,000 
        shall be from fees and $15,931,000 shall be from the Fund.''.
  (b) Section 60125(b)(l) is amended to read as follows:
          ``(1) To carry out section 60107, the following amounts are 
        authorized to be appropriated to the Secretary, from fees 
        collected under section 60301 in each respective year, and from 
        the Oil Spill Liability Trust Fund:
                  ``(A) For fiscal year 2007, $20,238,000, of which 
                $17,053,000 shall be from fees and $3,185,000 shall be 
                from the Fund.
                  ``(B) For fiscal year 2008, $23,221,000, of which 
                $19,567,000 shall be from fees and $3,654,000 shall be 
                from the Fund. Of the amount appropriated, $1,500,000 
                shall be available for fiscal year 2008 for the grants 
                to States authorized in section 60134.
                  ``(C) For fiscal year 2009, $24,513,000, of which 
                $20,656,000 shall be from fees and $3,857,000 shall be 
                from the Fund. Of the amount appropriated, $1,750,000 
                shall be available for fiscal year 2009 for the grants 
                to States authorized in section 60134.
                  ``(D) For fiscal year 2010, $25,855,000, of which 
                $21,786,000 shall be from fees and $4,069,000 shall be 
                from the Fund. Of the amount appropriated, $2,000,000 
                shall be available for fiscal year 2010 for the grants 
                to States authorized in section 60134.''.
  (c) Section 60125(c) is repealed.
  (d) Subsections (d) and (e) of section 60125 are redesignated as 
subsections (c) and (d), respectively.
  (e) Section 60125(c)(2), as so redesignated by subsection (d) of this 
section, is amended by striking ``2003 through 2006'' and inserting 
``2007 through 2010''.
  (f) Section 6105(c)(2) is amended by striking ``fiscal years 2003 
through 2006'' and inserting ``fiscal years 2007 through 2010''.
  (g) 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. 5. INCIDENT REPORTING.

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

``Sec. 60136. Incident reporting

  ``Not later than 12 months after date of enactment of this section, 
the Secretary shall review the incident reporting requirements for 
operators of natural gas pipelines and modify the reporting criteria as 
appropriate to ensure that the incident data gathered accurately 
reflects incident trends over time, taking into consideration the 
recommendations from the Comptroller General in GAO report 06-946.''.
  (b) Technical Amendment.--In the table of sections of chapter 601, 
the following item is added at the end:

``60136. Incident reporting.''.

                          Purpose and Summary

    The purpose of H.R. 5782 is to reauthorize the pipeline 
safety laws, Subtitle VIII of Title 49, U.S.C. and to provide 
for new authorities.

                  Background and Need for Legislation

    Nearly half a million miles of crude oil, petroleum 
product, and natural gas transmission pipelines cross the 
United States. These pipelines feed critical infrastructure, 
such as power plants, airports, and military bases. While an 
efficient and fundamentally safe means of transport, many 
pipelines carry volatile or flammable material, with the 
potential, if not managed safely, to cause public injury and 
environmental damage.
    The Department of Transportation (DOT) is the lead Federal 
regulator of pipeline safety. DOT administers pipeline 
regulations through the Office of Pipeline Safety (OPS) within 
the Pipelines and Hazardous Material Safety Administration 
(PHMSA). The Transportation Security Administration at the 
Department of Homeland Security is responsible for security 
(P.L. 107-71 transferred pipeline security from OPS to TSA, and 
P.L. 107-296 transferred TSA from DOT to DHS).
    The Pipeline Safety Improvement Act of 2002 (the Act) 
improved pipeline safety and provided for pipeline safety 
education programs. Authorizations for programs that fall under 
the Act expire in 2006. The Committee notes that PHMSA has made 
progress in achieving every mandate set forth in the Pipeline 
Safety Improvement Act (PSIA) of 2002, and the agency has done 
so in a timely manner. Over the past five years, the agency has 
responded positively to 46 NTSB safety recommendations and is 
working to close the three recommendations remaining from the 
pre-2002 environment. The Government Accountability Office 
(GAO) recently closed eight pipeline safety recommendations; 
six in enforcement, and two in research and development. 
However, challenges still remain and improvements can be made 
to the pipeline safety program.
    When comparing the years 2001-2005 to the previous five-
year period of 1996-2000, the rate of hazardous liquid pipeline 
accidents has declined by 18 percent. In addition, by 2005 the 
volume of significant oil spills decreased by 34 percent from 
the previous 10 year average, and the 10-year average volume of 
net spills for the same period decreased 36 percent. While much 
advancement has been made, concerns about other causes of 
pipeline accidents and damage continue to exist. Urbanization 
of previously rural areas is placing people closer to 
pipelines. Expansion and development also means more 
construction activity near pipelines. It should come as no 
surprise therefore, that third party excavation damage is a 
leading cause of pipeline accidents. To address the increasing 
risks associated with the damage prevention process, this 
legislation seeks to encourage the States to adopt and enforce 
more stringent procedures for all parties involved in the 
process. The State programs authorized under this legislation 
require excavators to use a one call notification system to 
identify pipelines marked before construction activity begins 
and also requires pipeline operators to follow through and take 
reasonable steps to mark their pipelines upon notice of 
excavation activity. In addition, the language contains a 
requirement to call 911 if any damage results to a pipeline 
from construction or excavation activity that causes a release 
of toxic, flammable or corrosive gas or liquid.
    In addition, on March 2, 2006, a leak was discovered on a 
BP oil transit line in Prudhoe Bay, on Alaska's North Slope. 
The spill was estimated at 250,000 gallons making it the 
largest spill in the history of North Slope oil production. The 
Department of Transportation issued a Corrective Action Order 
(CAO) which required the operator to inspect the line that 
failed, as well as several others. In August of this year 
anomalies found in these lines as a result of the required 
testing resulted in the temporary shut-in of America's largest 
producing oil field or approximately 8 percent of domestic 
production.
    While the DOT reacted quickly by issuing a CAO bringing 
these lines under their jurisdiction, prior to the spill the 
lines were unregulated by the Federal government because they 
operated at low internal stress. Historically, low-stress lines 
have been assumed to be low-risk lines due to the lower 
pressure at which they operate. However, there has been a 
gradual understanding since an accident in 1990 that the 
regulatory gap that has existed for low-stress lines needed to 
be closed and this bill accomplishes that objective.
    Another area of pipeline safety regulation that needed 
attention was the transparency of DOT's enforcement actions 
against operators. The Committee has had a longstanding concern 
that the DOT's enforcement actions were not well understood or 
resulted in a complete accounting ofthe fines and penalties 
proposed and collected. These concerns were substantiated by a GAO 
study released in July 2004. While the GAO declared in hearings before 
the Subcommittee on Energy and Air Quality that the DOT's enforcement 
performance had improved, the Committee continues to monitor the 
situation and has included a provision in the bill on enforcement 
transparency that will hopefully provide timely and accurate 
information on enforcement proceedings to all interested parties.

                                Hearings

    The Subcommittee on Energy and Air Quality held two 
hearings on pipeline safety laws in the 109th Congress. The 
first hearing, ``Pipeline Safety: A Progress Report since the 
Enactment of the Pipeline Safety Act of 2002'' was held on 
April 27, 2006. The Subcommittee received testimony from Stacy 
L. Gerard, Acting Administrator/Chief Safety Officer, Pipeline 
and Hazardous Materials Administration, U.S. Department of 
Transportation; Theodore Alves, Principal Assistant Inspector 
General for Audit and Evaluation, Office of Inspector General, 
U.S. Department of Transportation; Robert Chipkevich, Director, 
Office of Railroad, Pipeline, and Hazardous Materials 
Investigations, National Transportation Safety Board; Katherine 
Siggerud, Director, Physical Infrastructure Issues, U.S. 
Government Accountability Office; The Honorable Donald L. 
Mason, Commissioner, Public Utilities Commission of Ohio, on 
behalf of the National Association of Regulatory Utility 
Commissioners; Massoud Tahamtani, Director, Division of Utility 
and Railroad Safety, Virginia State Corporation Commission, on 
behalf of the National Association of Pipeline Safety 
Representatives; Edmund F. Bender Jr., Vice President, Gas 
Distribution and New Business Division, Baltimore Gas and 
Electric Company, on behalf of the American Gas Association; 
Jeryl L. Mohn, Senior Vice President, Operations and 
Engineering, Panhandle Energy, on behalf of the Interstate 
Natural Gas Association of America; Timothy C. Felt, President 
and CEO, Explorer Pipeline Company, on behalf of the 
Association of Oil Pipe Lines; Lois N. Epstein P.E., Senior 
Engineer, Oil and Gas Industry Specialist, Cook Inlet Keeper, 
on behalf of the Pipeline Safety Trust; and Bob Kipp, 
President, Common Ground Alliance.
    The second hearing, ``Discussion Draft on the Pipeline 
Safety Improvement Act of 2006 and H.R. 5782'' was held on July 
27, 2006. The Subcommittee received testimony from the 
Honorable Thomas J. Barrett, Administrator, Pipeline and 
Hazardous Materials Administration, U.S. Department of 
Transportation; the Honorable Donald L. Mason, Commissioner, 
Public Utilities Commission of Ohio, on behalf of the National 
Association of Regulatory Utility Commissioners; Ronald W. 
Jibson, Vice President, Operations, Questar Gas, on behalf of 
the American Gas Association; Jeryl L. Mohn, Senior Vice 
President, Operations and Engineering, Panhandle Energy, on 
behalf of the Interstate Natural Gas Association of America; 
Timothy C. Felt, President and CEO, Explorer Pipeline Company, 
on behalf of the Association of Oil Pipe Lines; Lois N. Epstein 
P.E., Senior Engineer, Oil and Gas Industry Specialist, Cook 
Inlet Keeper.

                        Committee Consideration

    On September 27, 2006, the Committee on Energy and Commerce 
met in open markup session and ordered H.R. 5782 favorably 
reported to the House, amended, by a voice vote, a quorum being 
present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 5782 reported. A motion by Mr. Barton to order H.R. 5782 
favorably reported to the House, amended, was agreed to by a 
voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative and 
oversight hearings and made findings that are reflected in this 
report.

         Statement of General Performance Goals and Objectives

    The goal of H.R. 5782 is to reauthorize the pipeline safety 
laws, Subtitle VII of Title 49, U.S.C., and provides for new 
authorities.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5782, the Pipeline Safety Improvement Act of 2006, would result 
in no new or increased budget authority, entitlement authority, 
or tax expenditures or revenues.

                                Earmark

    In compliance with H. Res. 1000 as passed the House of 
Representatives on September 14, 2006, the Committee finds that 
H.R. 5782, the Pipeline Safety Improvement Act of 2006, 
contains no earmarks.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                                  November 9, 2006.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
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 contacts are 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: The Pipeline and Hazardous Materials Safety 
Administration (PHMSA) within the Department of Transportation 
(DOT) oversees the safety of pipelines that transport gas or 
hazardous liquids and provides grants to states for programs to 
ensure pipeline safety. 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 four-year period. In addition, 
CBO estimates that the bill would authorize PHMSA to collect 
almost $5 million over the 2007-2010 period to recover its 
costs of conducting pipeline design reviews. The agency would 
be authorized to spend these collections over the 2007-2011 
period for its pipeline safety activities, assuming 
appropriation of the necessary amounts.
    The bill also 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 appropriations of $11 million over the same 
period for grants to state programs that help excavators 
coordinate their work with the operators of underground 
pipelines, grants to local communities to improve pipeline 
safety, technical assistance, and public awareness. Finally, 
CBO estimates that preparing certain studies and rules required 
by the bill would cost about $1 million over the 2007-2011 
period.
    CBO estimates that implementing H.R. 5782 would have a net 
cost of $98 million over the 2007-2011 period. Enacting the 
bill would not affect direct spending and would have an 
insignificant effect on revenues.
    H.R. 5782 contain 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 contains private-sector mandates, as defined in 
UMRA, on operators of distribution and transmission pipelines 
for natural gas or liquids by increasing user fees, authorizing 
a new fee, and imposing new safety standards. Since some of the 
mandates in the bill 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 total 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--
                                                                    --------------------------------------------
                                                                       2007     2008     2009     2010     2011
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Pipeline Safety Spending Under Current Law:
    Estimated Net Budget Authority.................................        0        0        0        0        0
    Estimated Outlays..............................................       34       10        2        0        0
Proposed Changes:\1\
    Estimated Net Authorization Level..............................       29       28       28       29        0
    Estimated Net Outlays..........................................      -15       15       23       26       49
Pipeline Safety Spending Under H.R. 5782:
    Estimated Authorization Level..................................       29       28       28       29        0
    Estimated Outlays..............................................       19       25       25       26       49
----------------------------------------------------------------------------------------------------------------
\1\The 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 early in 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 $98 
million over the 2007-2011 period. This estimate includes net 
spending of about $63 million for PHMSA's pipeline 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 pipeline safety 
activities was $72 million in 2006, and fee collections totaled 
almost $58 million that year. In addition, the bill would 
authorize the appropriation of nearly $35 million for grants to 
states and nonprofit organizations.
    Also, the bill would permit the administration to charge 
fees to operators of certain pipeline facilities that require a 
design review by PHMSA as a part of their application to 
construct, expand, or operate a liquefied natural gas pipeline 
facility. Under current law, the administration charges fees to 
existing pipeline operators. The bill would allow PHMSA to 
charge fees to entities proposing to construct a new facility 
or expand an existing operation. Based on PHMSA's review of 
three to five applications per year, CBO estimates that the 
administration would collect almost $5 million over the 2007-
2010 period. Assuming appropriation of the necessary amounts, 
PHMSA would then spend the almost $5 million over the 2007-2011 
period for its pipeline safety activities.
    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 heed location information provided at the site. Collections 
of penalties are recorded in the budget as revenues. CBO 
expects that implementing the new penalties authorized by this 
legislation would increase revenues 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 impose new safety standards for pipeline 
operators, some of which are publicly operated. While the 
aggregate costs of complying with these new standards is 
uncertain, based on information from government and industry 
sources, CBO estimates that the costs would not be significant 
and would not exceed the threshold established in UMRA.
    Other provisions of the bill would authorize $126 million 
in grants over five years for which states and local 
governments would be eligible to apply.
    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 user fees, authorizing a new fee 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 total cost would exceed the annual 
threshold established by UMRA ($128 million for private-sector 
mandates in 2006, adjusted annually for inflation).

Pipeline fees

    Section 2 contains a mandate on gas and liquid transmission 
pipeline 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.
    The bill also would authorize the Secretary to charge 
pipeline operators a fee to cover the cost of conducting a 
safety review of their facility design, which is required as 
part of their application to construct, expand or operate a 
liquefied natural gas pipeline facility. CBO estimates that 
operators would pay almost $5 million in such fees over the 
2007-2010 period.

New safety standards

    In addition, the bill would impose new safety standards on 
both liquid and natural gas pipeline operators. Under the bill, 
liquid pipeline operators would be required to abide by new 
low-stress pipeline requirements, and natural gas pipeline 
operators would be required to abide by new distribution 
integrity management requirements. Since several of the safety 
requirements in the bill hinge on future regulatory action, CBO 
cannot estimate the cost of those mandates.
    Previous CBO estimate: On September 13, 2006, CBO 
transmitted a cost estimate for H.R. 5782, the Pipeline Safety 
Improvement Act of 2006, as ordered reported by the House 
Committee on Transportation and Infrastructure on July 19, 
2006. The two bills authorize some different activities and 
different levels of net funding for the PHMSA.
    Both versions of H.R. 5782 would impose new federal 
standards for operators of pipelines. The Transportation and 
Infrastructure Committee's version of the bill, however, also 
would require operators of natural gas pipelines to make 
certain equipment changes and to comply with new reporting 
requirements. Neither bill contains intergovernmental mandates 
that would exceed the threshold established in UMRA.
    The two versions of the bill contain similar private-sector 
mandates. Both versions would require pipeline operators to pay 
more in fees and comply with new safety standards. Because the 
safety standards imposed would depend on how future regulators 
would be implemented, CBO cannot determine whether the 
aggregate costs in either version of H.R. 5782 would exceed 
UMRA's annual threshold for private-sector mandates.
    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.

                       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.

                      Advisory Committee Statement

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

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to 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.

             Section-by-Section Analysis of the Legislation


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

    Section 1 establishes the short title as the ``Pipeline 
Safety Improvement Act of 2006''; provides for an amendment to 
Title 49, United States Code, and provides the table of 
contents.

Section 2. Pipeline safety and damage prevention

    Section 2(a) adds new Federal requirements to existing one 
call civil enforcement provisions in Section 60114 for a person 
who engages in demolition, excavation, tunneling, or 
construction activity. The section requires such person to 
first contact the State's one call notification system to 
establish the location of underground distribution pipelines in 
the demolition, construction, excavation or tunneling area and 
requires such person to not disregard the markings established 
by the operator as required by current law in subsection (b). 
It also requires such person to take reasonable steps to ensure 
safe demolition activity to prevent damage to a pipeline. 
Finally, it requires such person to promptly report damage that 
may endanger life or cause serious bodily harm to the pipeline 
operator, and if the damage results in the escape of any 
flammable, toxic or corrosive gas or liquid, to promptly report 
to other appropriate authorities by calling the 911 emergency 
telephone number.
    In addition, section 2 contains a limitation on Federal 
enforcement of this provision within the boundaries of a State 
that has the authority to impose penalties, unless the DOT 
Secretary has determined that the State's enforcement is 
inadequate to protect safety. The section also amends 
60122(a)(1) to apply and conform to this new authority. Current 
law already provides adequate federal criminal enforcement 
authority, which is not limited to enforcement against 
operators.
    Section 2(b) amends Section 60105(b) addressing the State 
Pipeline Safety Program Certification requirements to modify 
the requirement for States to show they are encouraging, 
promoting, and establishing State programs designed to prevent 
damage by demolition, excavation, tunneling, or construction 
activity, with appropriate, enforceable penalties. In addition, 
section 2(b) adds a new Section 60134.
            Section 60134. State damage prevention programs
    New Section 60134 establishes a grant program for States 
that have an effective damage prevention program in place that 
includes 9 elements, adopted from successful State programs, 
such as Virginia, or for States that are making substantial 
progress towards establishing such a program.
    The 9 elements focus on partnerships and open participation 
by operators, excavators, and other stakeholders in the 
development of methods for establishing and maintaining 
effective communication from receipt of notification of a 
construction or related activity through completion of such 
activity. Other elements of the 9 point plan to be adopted by 
States include focus on public education, dispute resolution, 
internal performance measures, enforcement, and review 
provisions.
    Section 2(c) amends Section 60107(a) to authorize the 
Secretary of Transportation to pay for up to 80 percent of the 
cost of personnel, equipment, and activities the State 
authority requires during the calendar year. The current limit 
in PSIA is 50 percent.
    Section 2(d) adds a new subsection to Section 60114 to 
authorize the Secretary to make grants to an organization or 
entity for the development of technologies that will facilitate 
the prevention of pipeline damage caused by demolition, 
tunneling, excavation, or construction activities, with 
emphasis on wireless and global positioning technologies having 
potential for use in connection with notification systems and 
underground facility locating and marking services.
    Section 2(e) amends Chapter 61 of Title 49 on One Call 
Notification Programs.
            Section 6109. Public education and awareness
    New Section 6109 authorizes the Secretary to make a one 
time grant to an appropriate entity for promoting public 
education and awareness with respect to the 811 national 
excavation damage prevention phone number.
    Section 2(f) amends Section 60117(l) to authorize the 
Secretary to issue regulations within one year to add a 
requirement for notice and opportunity for hearing and to 
further specify the conditions for the Secretary to utilize the 
safety order authority when there is a condition that poses a 
pipeline integrity risk to public safety, property or the 
environment. Section 2(f) establishes further considerations 
for the Secretary in making the determination and in issuing 
regulations and allows the Secretary to order the operator of a 
facility to take necessary corrective action, including 
physical inspection, testing, or repair, to remedy that 
condition.
    Section 2(g) amends the existing Integrity Enforcement 
Management Program plans and procedures enforcement provision 
to clarify that PHMSA may take any appropriate enforcement 
action under Title 49 when it determines the operator's 
Integrity Management Plan (IMP) is inadequate, including 
compliance orders, assessment of civil penalties, or any other 
provision under this chapter.
    Section 2(h) amends Section 60102(k) to require the 
Secretary to issue regulations subjecting low stress hazardous 
liquid pipelines to the same standards and regulations as other 
hazardous liquid pipelines, except for the limited exceptions 
provided for in this section. The regulations issued under this 
paragraph shall not apply to gathering lines. Section 2(f) 
defines a low stress hazardous liquid pipeline as a line that 
is operating in its entirety at a stress level of 20 percent or 
less of the specified minimum yield strength of the line pipe. 
The Secretary shall provide or continue in force exceptions for 
low-stress hazardous liquid pipelines that are subject to 
safety regulations of the Unites States Coast Guard, or serve 
refining, manufacturing, or truck, rail or vessel terminal 
facilities, if the pipeline is less than one mile long 
(measured outside facility grounds) and does not cross an 
offshore area or a waterway currently used for commercial 
navigation until the regulations become effective. After such 
regulations become effective, the Secretary may retain or 
remove those exemptions as appropriate. The requirements of 
this section do not take effect until the effective date of the 
rules promulgated by the Secretary.
    Section 2(i) requires DOT to review, in consultation with 
the Technical Hazardous Liquid Pipeline Safety Standards 
Committee and other appropriate entities, the internal 
corrosion control regulations for hazardous liquid pipelines 
under Part 195 CFR Subpart H. The Secretary shall submit a 
report to the Congress within one year after the date of 
enactment containing the results of such review, and may modify 
regulations if necessary and appropriate.
    Section 2(j) requires DOE, in consultation with DOT, to 
review and analyze the domestic transport of crude oil and 
other petroleum products by pipeline and identify areas where 
reliability concerns exist or where failure or unplanned loss 
of individual pipeline facilities may cause shortages of crude 
oil, petroleum products or price disruptions. Not later than 
one year after the date of enactment of this Act, the 
Secretaries shall submit a report to the Congress setting forth 
their recommendations to reduce the likelihood of such 
shortages or disruptions.
    Section 2(k) requires the Secretary to review and comment 
on the Comptroller General report issued under Section 14(d)(1) 
of the Pipeline Safety Improvement Act of 2002 (40 U.S.C. 60109 
note), and not later than 60 days after the date of enactment 
of this Act, transmit to the Congress any legislative 
recommendations the Secretary considers necessary and 
appropriate to implement the conclusions of that report.
    Section 2(l) amends Section 60130 to require the Secretary 
to establish competitive procedures for awarding grants under 
this section. Section 2(l) further establishes requirements for 
at least the first 3 grants awarded under this section to be 
demonstration grants for evaluating the utility of grants under 
this section, not to exceed $25,000. It also requires each 
recipient of a grant under this section to ensure the technical 
findings made possible by the grants are made available to the 
relevant operators, local communities, and other parties and 
that open communication between the grant recipients and local 
operators and communities is encouraged.
    Section 2(m) adds a new Section 60135 to Chapter 601.
            Section 60135. Enforcement transparency
    New Section 60135 requires the Secretary, within 12 months 
after the date of enactment, to provide a monthly updated 
summary to the public of all gas and liquid pipeline 
enforcement actions taken by the Secretary or PHMSA, from the 
time a notice commencing an action is issued until the 
enforcement action is final. Includes minimum requirements for 
the summaries to contain, including identification of the 
operator, penalties proposed, alleged violation, final 
assessment amount, and the reasons for a reduction in the 
penalty, if any. New Section 60135 also provides a mechanism by 
which a pipeline operator named in an enforcement action may 
make information, explanations, or documents it believes are 
responsive to the enforcement action available to the public. A 
section on electronic posting is also included, as well as FOIA 
protections.
    Section 2(n) amends Section 60117 to add a new subsection 
(n) to authorize PHMSA to receive compensation from project 
applicants for facility design reviews that the agency performs 
for proposed LNG facilities.
    Section 2(o) modifies the definitions of ``interstate gas 
pipeline facility'' and ``intrastate gas pipeline facility'' 
such that direct sales laterals are no longer excluded from the 
Federal pipeline safety requirements.

Section 3. Distribution integrity management program rulemaking 
        deadline

    Section 3 amends Section 60109 to require the Secretary to 
prescribe minimum standards for integrity management programs 
for distribution pipelines.

Section 4. Authorization of appropriations

    Section 4 amends Section 60125(a) to reauthorize amounts to 
be appropriated as directed by the Secretary, from fees 
collected under Section 60301 from 2007-2010, and from the Oil 
Spill Liability Trust Fund. Section 4 also amends Section 
60125(b)(l) to carry out Section 60107, and from the Oil Spill 
Liability Trust Fund and makes other conforming changes.

Section 5. Incident reporting

    Section 5 requires the Secretary to, not later than 12 
months after enactment, review the incident reporting 
requirements for operators of natural gas pipelines and modify 
the reporting criteria as appropriate to ensure that the 
incident data accurately reflects incident trends over time, 
taking into consideration the recommendations from the 
Comptroller General in GAO Report 06-946.

         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 italics, 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.
6101.  Purposes.
     * * * * * * *
6109.  Public education and awareness.

           *       *       *       *       *       *       *


Sec. 6105. Implementation of best practices guidelines

  (a) * * *

           *       *       *       *       *       *       *

  (c) Grants.--
          (1) * * *
          (2) Authorization of appropriations.--In addition to 
        amounts authorized under section 6107, there is 
        authorized to be appropriated for making grants under 
        this subsection $500,000 for each of [fiscal years 2003 
        through 2006] fiscal years 2007 through 2010. Such sums 
        shall remain available until expended.

           *       *       *       *       *       *       *


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.

           *       *       *       *       *       *       *


Sec. 6109. Public education and awareness

  (a) Grant Authority.--The Secretary shall make a grant to an 
appropriate entity for promoting public education and awareness 
with respect to the 811 national excavation damage prevention 
phone number.
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary $1,000,000 for fiscal year 
2007 for carrying out this section.

           *       *       *       *       *       *       *


SUBTITLE VIII--PIPELINES

           *       *       *       *       *       *       *


                          CHAPTER 601--SAFETY

Sec.
60101.  Definitions.
     * * * * * * *
60134.  State damage prevention programs.
60135.  Enforcement transparency.
60136.  Incident reporting.

Sec. 60101. Definitions

  (a) General.--In this chapter--
          (1) * * *

           *       *       *       *       *       *       *

          [(6) ``interstate gas pipeline facility''--
                  [(A) means a gas pipeline facility--
                          [(i) used to transport gas; and
                          [(ii) subject to the jurisdiction of 
                        the Commission under the Natural Gas 
                        Act (15 U.S.C. 717 et seq.); but
                  [(B) does not include a gas pipeline facility 
                transporting gas from an interstate gas 
                pipeline in a State to a direct sales customer 
                in that State buying gas for its own 
                consumption;]
          (6) ``interstate gas pipeline facility'' means a gas 
        pipeline facility--
                  (A) used to transport gas; and
                  (B) subject to the jurisdiction of the 
                Commission under the Natural Gas Act (15 U.S.C. 
                717 et seq.);

           *       *       *       *       *       *       *

          [(9) ``intrastate gas pipeline facility'' means--
                  [(A) a gas pipeline facility and 
                transportation of gas within a State not 
                subject to the jurisdiction of the Commission 
                under the Natural Gas Act (15 U.S.C. 717 et 
                seq.); and
                  [(B) a gas pipeline facility transporting gas 
                from an interstate gas pipeline in a State to a 
                direct sales customer in that State buying gas 
                for its own consumption;]
          (9) ``intrastate gas pipeline facility'' means a gas 
        pipeline facility and transportation of gas within a 
        State not subject to the jurisdiction of the Commission 
        under the Natural Gas Act (15 U.S.C. 717 et seq.);

           *       *       *       *       *       *       *


Sec. 60102. Purpose and general authority

  (a) * * *

           *       *       *       *       *       *       *

  [(k) Prohibition Against Low Internal Stress 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.]
  (k) Low-Stress Hazardous Liquid Pipelines.--
          (1) Minimum standards.--Not later than 12 months 
        after the date of enactment of the Pipeline Safety 
        Improvement Act of 2006, the Secretary shall issue 
        regulations subjecting low-stress hazardous liquid 
        pipelines to the same standards and regulations as 
        other hazardous liquid pipelines, except as provided in 
        paragraph (3). The implementation of the applicable 
        standards and regulatory requirements may be phased in. 
        The regulations issued under this paragraph shall not 
        apply to gathering lines.
          (2) General prohibition against low internal stress 
        exception.--Except as provided in paragraph (3), the 
        Secretary may not provide an exception to the 
        requirements of this chapter for a hazardous liquid 
        pipeline because the pipeline operates at low internal 
        stress.
          (3) Limited exceptions.--The Secretary shall provide 
        or continue in force exceptions to this subsection for 
        low-stress hazardous liquid pipelines that--
                  (A) are subject to safety regulations of the 
                United States Coast Guard; or
                  (B) serve refining, manufacturing, or truck, 
                rail, or vessel terminal facilities, if the 
                pipeline is less than 1 mile long (measured 
                outside the facility grounds) and does not 
                cross an offshore area or a waterway currently 
                used for commercial navigation,
        until regulations issued under paragraph (1) become 
        effective, after which the Secretary may retain or 
        remove those exceptions as appropriate.
          (4) Relationship to other laws.--Nothing in this 
        subsection shall be construed to prohibit or otherwise 
        affect the applicability of any other statutory or 
        regulatory exemption to any hazardous liquid pipeline.
          (5) Definition.--For purposes of this subsection, the 
        term ``low-stress hazardous liquid 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.
          (6) Effective date.--The requirements of this 
        subsection shall not take effect as to low-stress 
        hazardous liquid pipeline operators before the 
        effective date of the rules promulgated by the 
        Secretary under this subsection.

           *       *       *       *       *       *       *


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) is encouraging and promoting the establishment of 
        a program designed to prevent damage by demolition, 
        excavation, 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) * * *

           *       *       *       *       *       *       *

  (c) Risk Analysis and Integrity Management Programs.--
          (1) * * *

           *       *       *       *       *       *       *

          (9) Review of integrity management programs.--
                  (A) Review of programs.--
                          (i) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

  (e) Distribution Integrity Management Programs.--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.

           *       *       *       *       *       *       *


Sec. 60114. One-call notification systems

  (a) * * *

           *       *       *       *       *       *       *

  (d) Prohibition.--A person who engages in demolition, 
excavation, tunneling, or construction--
          (1) may not engage in such demolition, excavation, 
        tunneling, or construction activity in a State that has 
        adopted a one-call notification system without first 
        using that system to establish the location of 
        underground facilities in the demolition, excavation, 
        tunneling, or construction area;
          (2) may not engage in such demolition, excavation, 
        tunneling, or construction activity in disregard of 
        location information or markings established by a 
        pipeline facility operator pursuant to subsection (b);
          (3) may not fail to take reasonable steps to ensure 
        safe demolition, excavation, tunneling, or construction 
        to prevent damage to a pipeline; and
          (4) if the person damages, or becomes aware of damage 
        to, a pipeline facility and such damage may endanger 
        life or cause serious bodily harm or damage to 
        property, may not fail to promptly report the damage to 
        the owner or operator of the facility and, if the 
        damage results in the escape of any flammable, toxic, 
        or corrosive gas or liquid, may not fail to promptly 
        report to other appropriate authorities by calling the 
        911 emergency telephone number.
  (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, unless the Secretary has determined 
that the State's enforcement is inadequate to protect safety, 
consistent with this chapter.
  (f) Technology Development Grants.--To the extent and in the 
amount provided in advance in appropriations acts, the 
Secretary may make grants to any organization or entity (not 
including for-profit entities) for the development of 
technologies that will facilitate the prevention of pipeline 
damage caused by demolition, excavation, tunneling, or 
construction activities, with emphasis on wireless and global 
positioning technologies having potential for use in connection 
with notification systems and underground facility locating and 
marking services. Funds provided under this subsection may not 
be used for lobbying or in direct support of litigation. The 
Secretary may also support such technology development through 
cooperative agreements with trade associations, academic 
institutions, and other organizations.

           *       *       *       *       *       *       *


Sec. 60117. Administrative

  (a) * * *

           *       *       *       *       *       *       *

  [(l) Safety Orders.--If the Secretary decides that a pipeline 
facility has a potential safety-related condition, the 
Secretary may order the operator of the facility to take 
necessary corrective action, including physical inspection, 
testing, repair, replacement, or other appropriate action to 
remedy the safety-related condition.]
  (l) Safety Orders.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of the Pipeline Safety and Improvement Act 
        of 2006, the Secretary shall issue regulations 
        providing that, after notice and opportunity for a 
        hearing, if the Secretary determines that a pipeline 
        facility has a condition that poses a pipeline 
        integrity risk to public safety, property, or the 
        environment, the Secretary may order the operator of 
        the facility to take necessary corrective action, 
        including physical inspection, testing, repair, 
        replacement, or other appropriate action, to remedy 
        that condition.
          (2) Considerations.--In making a determination under 
        paragraph (1), the Secretary shall, if relevant, and 
        pursuant to the regulations issued under paragraph (1), 
        consider--
                  (A) the considerations specified in section 
                60112(b);
                  (B) the likelihood that the condition will 
                impair the serviceability of a pipeline;
                  (C) the likelihood that the condition will 
                worsen over time; and
                  (D) the likelihood that the condition is 
                present or could develop on other areas of the 
                pipeline.
  (m) Cost Recovery for Design Reviews.--If the Secretary 
conducts facility design safety reviews in connection with a 
proposal to construct, expand, or operate a liquefied natural 
gas pipeline facility, the Secretary may require the person 
requesting such reviews to pay the associated staff costs 
relating to such reviews incurred by the Secretary, such funds 
to be deposited into the pipeline safety fund. Funds deposited 
pursuant to this section are authorized to be appropriated for 
the purposes set forth in section 60301(d). The Secretary may 
assess such costs in any reasonable manner.

           *       *       *       *       *       *       *


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(b) or (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 
Secretary, from fees collected under section 60301 in each 
respective year, and from the Oil Spill Liability Trust Fund:
          (1) For fiscal year 2007, $55,497,000, of which 
        $39,872,000 shall be from fees and $15,625,000 shall be 
        from the Fund.
          (2) For fiscal year 2008, $57,997,000, of which 
        $42,651,000 shall be from fees and $15,346,000 shall be 
        from the Fund.
          (3) For fiscal year 2009, $60,482,000, of which 
        $44,839,000 shall be from fees and $15,643,000 shall be 
        from the Fund.
          (4) For fiscal year 2010, $62,375,000, of which 
        $46,444,000 shall be from fees and $15,931,000 shall be 
        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 Secretary, 
        from fees collected under section 60301 in each 
        respective year, and from the Oil Spill Liability Trust 
        Fund:
                  (A) For fiscal year 2007, $20,238,000, of 
                which $17,053,000 shall be from fees and 
                $3,185,000 shall be from the Fund.
                  (B) For fiscal year 2008, $23,221,000, of 
                which $19,567,000 shall be from fees and 
                $3,654,000 shall be from the Fund. Of the 
                amount appropriated, $1,500,000 shall be 
                available for fiscal year 2008 for the grants 
                to States authorized in section 60134.
                  (C) For fiscal year 2009, $24,513,000, of 
                which $20,656,000 shall be from fees and 
                $3,857,000 shall be from the Fund. Of the 
                amount appropriated, $1,750,000 shall be 
                available for fiscal year 2009 for the grants 
                to States authorized in section 60134.
                  (D) For fiscal year 2010, $25,855,000, of 
                which $21,786,000 shall be from fees and 
                $4,069,000 shall be from the Fund. Of the 
                amount appropriated, $2,000,000 shall be 
                available for fiscal year 2010 for the grants 
                to States authorized in 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) Grant Authority.--
          (1) In general.--The Secretary of Transportation may 
        make grants for technical assistance to local 
        communities and groups of individuals (not including 
        for-profit entities) relating to the safety of pipeline 
        facilities in local communities, other than facilities 
        regulated under Public Law 93-153 (43 U.S.C. 1651 et 
        seq.). [The Secretary shall establish competitive] No 
        grants may be awarded under section 60114(e) until the 
        Secretary has established competitive procedures for 
        awarding grants under this section and criteria for 
        selecting grant recipients. The amount of any grant 
        under this section may not exceed $50,000 for a single 
        grant recipient. The Secretary shall establish 
        appropriate procedures to ensure the proper use of 
        funds provided under this section.
          (2) Demonstration grants.--At least the first 3 
        grants awarded under this section shall be 
        demonstration grants for the purpose of demonstrating 
        and evaluating the utility of grants under this 
        section. Each such demonstration grant shall not exceed 
        $25,000.
          (3) Dissemination of technical findings.--Each 
        recipient of a grant under this section shall ensure 
        that the technical findings made possible by the grants 
        are made available to the relevant operators, and that 
        open communication between the grant recipients, local 
        operators, local communities, and other interested 
        parties is encouraged.
          [(2)] (4) Technical assistance defined.--In this 
        subsection, the term ``technical assistance'' means 
        engineering and other scientific analysis of pipeline 
        safety issues, including the promotion of public 
        participation in official proceedings conducted under 
        this chapter.

           *       *       *       *       *       *       *

  (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) Eligibility.--A State authority (including a municipality 
if the agreement under section 60106(a) or (b) applies to 
intrastate gas pipeline transportation) shall be eligible for a 
grant under this section only if--
          (1) it has an annual certification under section 
        60105 or an agreement under section 60106; and
          (2) either--
                  (A) it is from a State that has an effective 
                damage prevention program that meets the 
                requirements of subsection (b); or
                  (B) it demonstrates that it has made 
                substantial progress toward establishing such a 
                program, and that such program will meet 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 among stakeholders from receipt of a 
        notification of demolition, excavation, tunneling, or 
        construction until successful completion of the 
        demolition, excavation, tunneling, or construction, 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, the one-
        call center, the enforcing agency, and other 
        stakeholders in the development and implementation of 
        effective training programs 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 demolition, 
        excavation, tunneling, or construction process, 
        including public education, and the use of civil 
        penalties for violations assessable by the appropriate 
        State authority.
          (8) A process for fostering and promoting the use, by 
        all appropriate stakeholders, of improving technologies 
        that may enhance communications, underground pipeline 
        locating capability, and gathering and analyzing 
        information about the accuracy and effectiveness of 
        locating programs.
          (9) A process for review and analysis of the 
        effectiveness of each program element, including a 
        means for implementing improvements identified by such 
        program reviews.
  (c) Grants to States.--
          (1) In general.--The Secretary may make a grant of 
        financial assistance to a State authority that is 
        eligible under this section to assist in improving the 
        overall quality and effectiveness of a damage 
        prevention program of a State. In making grants under 
        this section, the Secretary shall take into 
        consideration the commitment of each State to ensuring 
        the effectiveness of its damage prevention program, 
        including legislative and regulatory actions taken by 
        the State.
          (2) Application.--If a State authority files an 
        application for a grant under this section not later 
        than September 30 of a calendar year, the Secretary of 
        Transportation shall review the State's damage 
        prevention program to determine its effectiveness. For 
        programs determined to be effective, the Secretary may 
        make a grant of financial assistance for the cost of 
        the personnel, equipment, and activities the authority 
        reasonably requires during the next calendar year to 
        carry out an effective damage prevention enforcement 
        program. 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. Funds 
        provided under this section may not be used for 
        lobbying or in direct support of litigation.

Sec. 60135. Enforcement transparency

  (a) In General.--Not later than 12 months after the date of 
enactment of this section, the Secretary shall--
          (1) provide a monthly updated summary to the public 
        of all gas and hazardous liquid pipeline enforcement 
        actions taken by the Secretary or the Pipeline and 
        Hazardous Materials Safety Administration, from the 
        time a notice commencing an enforcement action is 
        issued until the enforcement action is final. Each 
        summary shall include identification of the operator 
        involved in the enforcement activity, the type of 
        alleged violation, the penalty or penalties proposed, 
        any changes in case status since the previous summary, 
        the final assessment amount of each penalty, and the 
        reasons for a reduction in the proposed penalty, if 
        appropriate; and
          (2) provide a mechanism by which a pipeline operator 
        named in an enforcement action may make information, 
        explanations, or documents it believes are responsive 
        to the enforcement action available to the public.
  (b) Electronic Posting.--Each summary required under this 
section shall be made available to the public via posting by 
electronic means.
  (c) Relationship to FOIA.--Nothing in this section shall be 
construed to require disclosure of information or records that 
would be exempt from disclosure under section 552 of title 5, 
United States Code (commonly known as the Freedom of 
Information Act).

Sec. 60136. Incident reporting

  Not later than 12 months after date of enactment of this 
section, the Secretary shall review the incident reporting 
requirements for operators of natural gas pipelines and modify 
the reporting criteria as appropriate to ensure that the 
incident data gathered accurately reflects incident trends over 
time, taking into consideration the recommendations from the 
Comptroller General in GAO report 06-946.

           *       *       *       *       *       *       *


                                  
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