[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.
* * * * * * *