[House Report 114-807]
[From the U.S. Government Publishing Office]
114th Congress } { Rept. 114-807
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
======================================================================
PROTECTING OUR INFRASTRUCTURE OF PIPELINES AND ENHANCING SAFETY ACT OF
2016
_______
November 14, 2016.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 4937]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 4937) to amend title 49, United
States Code, to reauthorize pipeline safety programs and
enhance pipeline safety, 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
Purpose of Legislation........................................... 12
Background and Need for Legislation.............................. 12
Hearings......................................................... 14
Legislative History and Consideration............................ 14
Committee Votes.................................................. 14
Committee Oversight Findings..................................... 18
New Budget Authority and Tax Expenditures........................ 18
Congressional Budget Office Cost Estimate........................ 18
Performance Goals and Objectives................................. 23
Advisory of Earmarks............................................. 23
Duplication of Federal Programs.................................. 23
Disclosure of Directed Rule Makings.............................. 24
Federal Mandate Statement........................................ 24
Preemption Clarification......................................... 24
Advisory Committee Statement..................................... 24
Applicability of Legislative Branch.............................. 24
Section-by-Section Analysis of Legislation....................... 25
Changes in Existing Law Made by the Bill, as Reported............ 30
Committee Correspondence......................................... 55
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.
(a) Short Title.--This Act may be cited as the ``Protecting our
Infrastructure of Pipelines and Enhancing Safety Act of 2016'' or the
``PIPES Act of 2016''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents; references.
Sec. 2. Authorization of appropriations.
Sec. 3. Failure of PHMSA to implement statutory mandates.
Sec. 4. Natural gas integrity management review.
Sec. 5. Hazardous liquid integrity management review.
Sec. 6. Technical safety standards committees.
Sec. 7. Inspection report information.
Sec. 8. Improving damage prevention technology.
Sec. 9. Workforce management.
Sec. 10. Information-sharing system.
Sec. 11. Nationwide integrated pipeline safety regulatory database.
Sec. 12. Underground natural gas storage facilities.
Sec. 13. Joint inspection and oversight.
Sec. 14. Safety data sheets.
Sec. 15. Hazardous materials identification numbers.
Sec. 16. Emergency order authority.
Sec. 17. State grant funds.
Sec. 18. Response plans.
Sec. 19. High consequence areas.
Sec. 20. Pipeline safety technical assistance grants.
Sec. 21. Study of materials and corrosion prevention in pipeline
transportation.
Sec. 22. Research and development.
Sec. 23. Active and abandoned pipelines.
Sec. 24. State pipeline safety agreements.
SEC. 2. AUTHORIZATION OF APPROPRIATIONS.
(a) Gas and Hazardous Liquid.--Section 60125(a) of title 49, United
States Code is amended--
(1) in paragraph (1) by striking ``there is authorized to be
appropriated to the Department of Transportation for each of
fiscal years 2012 through 2015, from fees collected under
section 60301, $90,679,000, of which $4,746,000 is for carrying
out such section 12 and $36,194,000 is for making grants.'' and
inserting the following: ``there is authorized to be
appropriated to the Department of Transportation from fees
collected under sections 60301 and 60302--
``(A) $124,500,000 for fiscal year 2016, of which
$9,000,000 shall be expended for carrying out such
section 12 and $39,385,000 shall be expended for making
grants;
``(B) $128,000,000 for fiscal year 2017 of which
$9,000,000 shall be expended for carrying out such
section 12 and $41,885,000 shall be expended for making
grants;
``(C) $131,000,000 for fiscal year 2018, of which
$9,000,000 shall be expended for carrying out such
section 12 and $44,885,000 shall be expended for making
grants; and
``(D) $134,000,000 for fiscal year 2019, of which
$9,000,000 shall be expended for carrying out such
section 12 and $47,885,000 shall be expended for making
grants.''; and
(2) in paragraph (2) by striking ``there is authorized to be
appropriated for each of fiscal years 2012 through 2015 from
the Oil Spill Liability Trust Fund to carry out the provisions
of this chapter related to hazardous liquid and section 12 of
the Pipeline Safety Improvement Act of 2002 (49 U.S.C. 60101
note; Public Law 107-355), $18,573,000, of which $2,174,000 is
for carrying out such section 12 and $4,558,000 is for making
grants.'' and inserting the following: ``there is authorized to
be appropriated from the Oil Spill Liability Trust Fund to
carry out the provisions of this chapter related to hazardous
liquid and section 12 of the Pipeline Safety Improvement Act of
2002 (49 U.S.C. 60101 note; Public Law 107-355)--
``(A) $22,123,000 for fiscal year 2016, of which
$3,000,000 shall be expended for carrying out such
section 12 and $8,067,000 shall be expended for making
grants;
``(B) $22,123,000 for fiscal year 2017, of which
$3,000,000 shall be expended for carrying out such
section 12 and $8,067,000 shall be expended for making
grants;
``(C) $23,000,000 for fiscal year 2018, of which
$3,000,000 shall be expended for carrying out such
section 12 and $8,067,000 shall be expended for making
grants; and
``(D) $23,000,000 for fiscal year 2019, of which
$3,000,000 shall be expended for carrying out such
section 12 and $8,067,000 shall be expended for making
grants.''.
(b) Operational Expenses.--There are authorized to be appropriated to
the Secretary of Transportation for the necessary operational expenses
of the Pipeline and Hazardous Materials Safety Administration the
following amounts:
(1) $21,000,000 for fiscal year 2016.
(2) $22,000,000 for fiscal year 2017.
(3) $22,000,000 for fiscal year 2018.
(4) $23,000,000 for fiscal year 2019.
(c) One-Call Notification Programs.--
(1) In general.--Section 6107 of title 49, United States
Code, is amended to read as follows:
``Sec. 6107. Funding
``Of the amounts provided under section 60125(a)(1), the Secretary
shall withhold $1,058,000 for each of fiscal years 2016 through 2019 to
carry out section 6106.''.
(2) Clerical amendment.--The analysis for chapter 61 of title
49, United States Code, is amended by striking the item
relating to section 6107 and inserting the following:
``6107. Funding.''.
(d) Pipeline Safety Information Grants to Communities.--The first
sentence of section 60130(c) of title 49, United States Code, is
amended to read as follows: ``Of the amounts made available under
section 2(b) of the PIPES Act of 2016, the Secretary shall withhold
$1,500,000 for each of fiscal years 2016 through 2019 to carry out this
section.''
(e) Pipeline Integrity Program.--Section 12(f) of the Pipeline Safety
Improvement Act of 2002 (49 U.S.C. 60101 note) is amended by striking
``2012 through 2015'' and inserting ``2016 through 2019''.
SEC. 3. FAILURE OF PHMSA TO IMPLEMENT STATUTORY MANDATES.
(a) Report by the Inspector General.--Not later than 45 days after
the date of enactment of this Act, the Inspector General of the
Department of Transportation shall submit to the Secretary of
Transportation, the Administrator of the Pipeline and Hazardous
Materials Safety Administration, the Committee on Transportation and
Infrastructure and the Committee on Energy and Commerce of the House of
Representatives, and the Committee on Commerce, Science, and
Transportation of the Senate a report containing the following:
(1) A list of each statutory mandate contained in the
Pipeline Safety, Regulatory Certainty, and Job Creation Act of
2011 (Public Law 112-90) that has not been implemented.
(2) A list of each statutory mandate regarding pipeline
safety from this Act and all other Acts enacted prior to the
date of enactment of this Act, other than those contained in
the Pipeline Safety, Regulatory Certainty, and Job Creation Act
of 2011 (Public Law 112-90), that has not been implemented.
(b) Reports by the Secretary.--
(1) Statutory mandates.--Not later than 90 days after the
date of enactment of this Act, and every 90 days thereafter
until each of the mandates listed pursuant to subsection (a)
has been implemented, the Secretary shall submit to the
Committee on Transportation and Infrastructure and the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the specific actions
taken to implement such mandates.
(2) Public availability.--The Secretary shall make the report
referred to in paragraph (1) publicly available on the
Department of Transportation's Internet Web site.
(3) Contents of reports.--The reports shall provide, for each
mandate listed pursuant to subsection (a)--
(A) a description of the mandate;
(B) the deadline imposed for the mandate;
(C) the status of the implementation of the mandate;
(D) a detailed explanation of the reasons the mandate
has not been implemented, including a description of
any actions taken by the Administrator of the Pipeline
and Hazardous Materials Safety Administration, the
Office of the Secretary, or the Office of Management
and Budget that delayed implementation of the mandate;
(E) an estimated completion date for the mandate;
(F) the specific date on which any draft, interim, or
final guidance, advisory, report, advance notice of
proposed rulemaking, notice of proposed rulemaking,
final rule, or other document required to implement the
mandate was sent to the Secretary by the Administrator
for review and subsequently transmitted by the
Secretary or the Administrator to the Office of
Management and Budget;
(G) a description of each concern with a document
described under subparagraph (F) raised by the
Secretary or the Office of Management and Budget; and
(H) the date and reasons the Secretary or the Office
of Management and Budget requested any extension on
acting on the mandate, including an extension
authorized by Executive Order 12866.
SEC. 4. NATURAL GAS INTEGRITY MANAGEMENT REVIEW.
(a) Report.--Not later than 18 months after the publication of a
final rule regarding the safety of gas transmission pipelines related
to the notice of proposed rulemaking issued on April 8, 2016, titled
``Pipeline Safety: Safety of Gas Transmission and Gathering Pipelines''
(81 Fed. Reg. 20721), the Comptroller General of the United States
shall submit to the Committee on Transportation and Infrastructure and
the Committee on Energy and Commerce of the House of Representatives
and the Committee on Commerce, Science, and Transportation of the
Senate a report regarding the natural gas integrity management programs
required under section 60109(c) of title 49, United States Code.
(b) Contents.--The report required under subsection (a) shall
include--
(1) an analysis of the extent to which the natural gas
integrity management programs required under section 60109(c)
of title 49, United States Code, have improved the safety of
natural gas transmission pipeline facilities;
(2) an analysis and recommendations, taking into
consideration technical, operational, and economic feasibility,
regarding changes to the programs to improve safety, prevent
inadvertent releases from pipelines, and mitigate any adverse
consequences of an inadvertent release, including changes to
the definition of high consequence area, or expanding integrity
management beyond high consequence areas;
(3) a review of the benefits, including safety benefits, and
cost effectiveness of the legacy class location regulations;
(4) an analysis of, and recommendations regarding, what
impact pipeline features and conditions, including the age,
condition, materials, and construction of a pipeline, have on
safety and risk analysis of a particular pipeline;
(5) a description of any challenges affecting Federal or
State regulators in the oversight of natural gas transmission
pipeline facilities and how the challenges are being addressed;
and
(6) a description of any challenges affecting the natural gas
industry in complying with the programs, and how the challenges
are being addressed, including any challenges faced by publicly
owned natural gas distribution systems.
(c) Definition of High Consequence Area.--In this section, the term
``high consequence area'' has the meaning given the term in section
192.903 of title 49, Code of Federal Regulations (as in effect on the
date of enactment of this Act).
SEC. 5. HAZARDOUS LIQUID INTEGRITY MANAGEMENT REVIEW.
(a) Safety Study.--Not later than 18 months after the publication of
a final rule regarding the safety of hazardous liquid pipeline
facilities related to the notice of proposed rulemaking issued on
October 13, 2015, titled ``Pipeline Safety: Safety of Hazardous Liquid
Pipelines'' (80 Fed. Reg. 61610), the Comptroller General of the United
States shall submit to the Committee on Transportation and
Infrastructure and the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report regarding the hazardous liquid
integrity management programs, as regulated under sections 195.450 and
195.452 of title 49, Code of Federal Regulations.
(b) Contents.--The report required under subsection (a) shall
include--
(1) an analysis of the extent to which hazardous liquid
pipeline facility integrity management in high consequence
areas, as regulated under sections 195.450 and 195.452 of title
49, Code of Federal Regulations, has improved the safety of
hazardous liquid pipeline facilities;
(2) an analysis and recommendations, taking into
consideration technical, operational, and economic feasibility,
regarding changes to the programs to improve safety, prevent
inadvertent releases from pipelines, and mitigate any adverse
consequences of an inadvertent release, including changes to
the definition of high consequence area;
(3) an analysis of how surveying, assessment, mitigation, and
monitoring activities, including real-time hazardous liquid
pipeline monitoring during significant flood events and
information sharing with Federal agencies, are being used to
address risks associated with the dynamic and unique nature of
rivers, flood plains, lakes, and coastal areas;
(4) an analysis of, and recommendations regarding, what
impact pipeline features and conditions, including the age,
condition, materials, and construction of a pipeline, have on
safety and risk analysis of a particular pipeline and what
changes to the definition of high consequence area could be
made to improve pipeline safety; and
(5) a description of any challenges affecting Federal or
State regulators in the oversight of hazardous liquid pipeline
facilities and how those challenges are being addressed.
(c) Definition of High Consequence Area.--In this section, the term
``high consequence area'' has the meaning given the term in section
195.450 of title 49, Code of Federal Regulations.
SEC. 6. TECHNICAL SAFETY STANDARDS COMMITTEES.
(a) Appointment of Members.--Section 60115(b)(4)(A) of title 49,
United States Code, is amended by striking ``State commissioners. The
Secretary shall consult with the national organization of State
commissions before selecting those 2 individuals.'' and inserting
``State officials. The Secretary shall consult with national
organizations representing State commissioners or Governors before
making a selection under this subparagraph.''.
(b) Vacancies.--Section 60115(b) of title 49, United States Code, is
amended by adding at the end the following:
``(5) Within 90 days of the date of enactment of the PIPES Act of
2016, the Secretary shall fill all vacancies on the Technical Pipeline
Safety Standards Committee, the Technical Hazardous Liquid Pipeline
Safety Standards Committee, and any other committee established
pursuant to this section. After that period, the Secretary shall fill a
vacancy on any such committee not later than 60 days after the vacancy
occurs.''.
SEC. 7. INSPECTION REPORT INFORMATION.
(a) In General.--Not later than 90 days after the completion of a
Pipeline and Hazardous Materials Safety Administration pipeline safety
inspection, the Administrator of such Administration, or the State
authority certified under section 60105 of title 49, United States
Code, to conduct such inspection, shall--
(1) conduct a post-inspection briefing with the owner or
operator of the gas or hazardous liquid pipeline facility
inspected outlining any concerns; and
(2) to the extent practicable, provide the owner or operator
with written preliminary findings of the inspection.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, and annually thereafter for 2 years, the Administrator shall
submit to the Committee on Transportation and Infrastructure and the
Committee on Energy and Commerce of the House of Representatives and
the Committee on Commerce, Science, and Transportation of the Senate a
report that includes--
(1) a description of the actions that the Pipeline and
Hazardous Materials Safety Administration has taken to ensure
that inspections by State authorities provide effective and
timely oversight; and
(2) statistics relating to the timeliness of the actions
described in paragraphs (1) and (2) of subsection (a).
SEC. 8. IMPROVING DAMAGE PREVENTION TECHNOLOGY.
(a) Study.--The Comptroller General of the United States shall
conduct a study on improving existing damage prevention programs
through technological improvements in location, mapping, excavation,
and communications practices to prevent excavation damage to a pipe or
its coating.
(b) Contents.--The study under subsection (a) shall include--
(1) an identification of any methods to improve existing
damage prevention programs through location and mapping
practices or technologies in an effort to reduce releases
caused by excavation;
(2) an analysis of how increased use of global positioning
system digital mapping technologies, predictive analytic tools,
public awareness initiatives including one-call initiatives,
the use of mobile devices, and other advanced technologies
could supplement existing one-call notification and damage
prevention programs to reduce the frequency and severity of
incidents caused by excavation damage;
(3) an identification of any methods to improve excavation
practices or technologies in an effort to reduce pipeline
damage;
(4) an analysis of the feasibility of a national data
repository for pipeline excavation accident data that creates
standardized data models for storing and sharing pipeline
accident information;
(5) an identification of opportunities for stakeholder
engagement in preventing excavation damage; and
(6) recommendations, taking into consideration technical,
operational, and economic feasibility, on how to incorporate
technological improvements and practices that help prevent
excavation damage into existing damage prevention programs.
(c) Report.--Not later than 1 year after the date of the enactment of
this Act, the Comptroller General shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee
on Transportation and Infrastructure and the Committee on Energy and
Commerce of the House of Representatives a report containing the
results of the study conducted under subsection (a).
SEC. 9. WORKFORCE MANAGEMENT.
Not later than 1 year after the date of the enactment of this Act,
the Inspector General of the Department of Transportation shall submit
to the Committee on Transportation and Infrastructure and the Committee
on Energy and Commerce of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the Senate, a
review of Pipeline and Hazardous Materials Safety Administration staff
resource management, including geographic allocation plans, hiring
challenges, and expected retirement rates and strategies. The review
shall include recommendations to address hiring challenges, training
needs, and any other identified staff resource challenges.
SEC. 10. INFORMATION-SHARING SYSTEM.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Transportation shall convene a
working group to consider the development of a voluntary information-
sharing system to encourage collaborative efforts to improve inspection
information feedback and information sharing with the purpose of
improving natural gas transmission and hazardous liquid pipeline
facility integrity risk analysis.
(b) Membership.--The working group convened pursuant to subsection
(a) shall include representatives from--
(1) the Pipeline and Hazardous Materials Safety
Administration;
(2) industry stakeholders, including operators of pipeline
facilities, inspection technology vendors, and pipeline
inspection organizations;
(3) safety advocacy groups;
(4) research institutions;
(5) State public utility commissions or State officials
responsible for pipeline safety oversight;
(6) State pipeline safety inspectors; and
(7) labor representatives.
(c) Considerations.--The working group convened pursuant to
subsection (a) shall consider and provide recommendations to the
Secretary on--
(1) the need for, and the identification of, a system to
ensure that dig verification data are shared with in-line
inspection operators to the extent consistent with the need to
maintain proprietary and security sensitive data in a
confidential manner to improve pipeline safety and inspection
technology;
(2) ways to encourage the exchange of pipeline inspection
information and the development of advanced pipeline inspection
technologies and enhanced risk analysis;
(3) opportunities to share data, including dig verification
data between operators of pipeline facilities and in-line
inspector vendors to expand knowledge of the advantages and
disadvantages of the different types of in-line inspection
technology and methodologies;
(4) options to create a secure system that protects
proprietary data while encouraging the exchange of pipeline
inspection information and the development of advanced pipeline
inspection technologies and enhanced risk analysis; and
(5) regulatory, funding, and legal barriers to sharing the
information described in paragraphs (1) through (4).
(d) Publication.--The Secretary shall publish the recommendations
provided under subsection (c) on a publicly available Web site of the
Department of Transportation.
SEC. 11. NATIONWIDE INTEGRATED PIPELINE SAFETY REGULATORY DATABASE.
(a) Establishment.--Not later than 18 months after the date of
enactment of this Act, the Secretary of Transportation shall establish
a national integrated pipeline safety regulatory inspection database to
improve communication and collaboration between the Pipeline and
Hazardous Materials Safety Administration and State pipeline
regulators.
(b) Considerations.--In developing the database, the Secretary shall
consider--
(1) any efforts underway to test a secure information-sharing
system for the purpose described in subsection (a);
(2) any progress in establishing common standards for
maintaining, collecting, and presenting pipeline safety
regulatory inspection data, and a methodology for the sharing
of the data;
(3) any existing inadequacies or gaps in State and Federal
inspection, enforcement, geospatial, or other pipeline safety
regulatory inspection data;
(4) the potential safety benefits of a national integrated
pipeline database; and
(5) recommendations of stakeholders for how to implement a
secure information-sharing system that protects proprietary and
security sensitive information and data for the purpose
described in subsection (a).
(c) Consultation.--In implementing this section, the Secretary shall
consult with stakeholders, including State authorities operating under
a certification to regulate intrastate pipelines under section 60105 of
title 49, United States Code.
SEC. 12. UNDERGROUND NATURAL GAS STORAGE FACILITIES.
(a) Defined Term.--Section 60101(a) of title 49, United States Code,
is amended--
(1) in paragraph (21)(B) by striking the period at the end
and inserting a semicolon;
(2) in paragraph (22)(B)(iii) by striking the period at the
end and inserting a semicolon;
(3) in paragraph (24) by striking ``and'' at the end;
(4) in paragraph (25) by striking the period at the end and
inserting ``; and''; and
(5) by adding at the end the following:
``(26) `underground natural gas storage facility' means a gas
pipeline facility that stores gas in an underground facility,
including--
``(A) a depleted hydrocarbon reservoir;
``(B) an aquifer reservoir; or
``(C) a solution-mined salt cavern reservoir.''.
(b) Standards for Underground Natural Gas Storage Facilities.--
Chapter 601 of title 49, United States Code, is amended by adding at
the end the following:
``Sec. 60141. Standards for underground natural gas storage facilities
``(a) Minimum Safety Standards.--Not later than 2 years after the
date of enactment of the PIPES Act of 2016, the Secretary, in
consultation with the heads of other relevant Federal agencies, shall
issue minimum safety standards for underground natural gas storage
facilities.
``(b) Considerations.--In developing the safety standards required
under subsection (a), the Secretary shall, to the extent practicable--
``(1) consider consensus standards for the operation,
environmental protection, and integrity management of
underground natural gas storage facilities;
``(2) consider the economic impacts of the regulations on
individual gas customers; and
``(3) ensure that the regulations do not have a significant
economic impact on end users.
``(c) Rules of Construction.--
``(1) In general.--Nothing in this section may be construed
to affect any Federal regulation relating to gas pipeline
facilities that is in effect on the day before the date of
enactment of the PIPES Act of 2016.
``(2) Limitations.--Nothing in this section may be construed
to authorize the Secretary--
``(A) to prescribe the location of an underground
natural gas storage facility; or
``(B) to require the Secretary's permission to
construct a facility referred to in subparagraph (A).
``(d) Preemption.--A State authority may adopt additional or more
stringent safety standards for intrastate underground natural gas
storage facilities if such standards are compatible with the minimum
standards prescribed under this section.''.
(c) User Fees.--Chapter 603 of title 49, United States Code, is
amended by inserting after section 60301 the following:
``Sec. 60302. User fees for underground natural gas storage facilities
``(a) In General.--A fee shall be imposed on an entity operating an
underground natural gas storage facility pursuant to section 60141. Any
such fee imposed shall be collected before the end of the fiscal year
to which it applies.
``(b) Means of Collection.--The Secretary of Transportation shall
prescribe procedures to collect fees under this section. The Secretary
may use a department, agency, or instrumentality of the United States
Government or of a State or local government to collect the fee and may
reimburse the department, agency, or instrumentality a reasonable
amount for its services.
``(c) Use of Fees.--
``(1) Account.--There is established an Underground Natural
Gas Storage Facility Safety Account in the Pipeline Safety Fund
established in the Treasury of the United States under section
60301.
``(2) Use of fees.--A fee collected under this section--
``(A) shall be deposited in the Underground Natural
Gas Storage Facility Safety Account; and
``(B) if the fee is related to an underground natural
gas storage facility pursuant to section 60141, the
amount of the fee may be used only for an activity
related to underground natural gas storage safety.
``(3) Limitation.--Amounts collected under this section shall
be made available only to the extent provided in advance in an
appropriations Act for an activity related to underground
natural gas storage safety.''.
(d) Clerical Amendments.--
(1) Chapter 601.--The table of sections for chapter 601 of
title 49, United States Code, is amended by adding at the end
the following:
``60141. Standards for underground natural gas storage facilities.''.
(2) Chapter 603.--The table of sections for chapter 603 of
title 49, United States Code, is amended by inserting after the
item relating to section 60301 the following:
``60302. User fees for underground natural gas storage facilities.''.
SEC. 13. JOINT INSPECTION AND OVERSIGHT.
Section 60105 of title 49, United States Code, is amended by adding
at the end the following:
``(g) Joint Inspectors.--At the request of a State authority, the
Secretary shall allow for a certified State authority under this
section to participate in the inspection of an interstate pipeline
facility.''.
SEC. 14. SAFETY DATA SHEETS.
(a) In General.--Each owner or operator of a hazardous liquid
pipeline facility, following an accident or incident involving such
pipeline facility, shall provide safety data sheets on any spilled oil
to the designated Federal On-Scene Coordinator and appropriate State
officials within 6 hours of a telephonic or electronic notice of the
accident or incident to the National Response Center.
(b) Definitions.--In this section:
(1) Federal on-scene coordinator.--The term ``Federal On-
Scene Coordinator'' has the meaning given such term in section
311(a) of the Federal Water Pollution Control Act (33 U.S.C.
1321(a)).
(2) National response center.--The term ``National Response
Center'' means the center described under section 300.125(a) of
title 40, Code of Federal Regulations.
(3) Safety data sheet.--The term ``safety data sheet'' means
a safety data sheet required under section 1910.1200 of title
29, Code of Federal Regulations.
SEC. 15. HAZARDOUS MATERIALS IDENTIFICATION NUMBERS.
Not later than 90 days after the date of enactment of this Act, the
Secretary of Transportation shall issue an advanced notice of proposed
rulemaking to take public comment on the petition for rulemaking dated
October 28, 2015, titled ``Corrections to Title 49 C.F.R. Sec. 172.336
Identification numbers; special provisions'' (P-1667).
SEC. 16. EMERGENCY ORDER AUTHORITY.
Section 60117 of title 49, United States Code, is amended by adding
at the end the following:
``(o) Emergency Order Authority.--
``(1) In general.--If the Secretary determines that an unsafe
condition or practice, or a combination of unsafe conditions
and practices, constitutes or is causing an imminent hazard,
the Secretary may issue an emergency order described in
paragraph (3) imposing emergency restrictions, prohibitions,
and safety measures on owners and operators of gas or hazardous
liquid pipeline facilities without prior notice or an
opportunity for a hearing, but only to the extent necessary to
abate the imminent hazard.
``(2) Considerations.--Before issuing an emergency order
under paragraph (1), the Secretary shall consider, after
consultation with appropriate Federal agencies, State agencies,
or other entities, the following, as appropriate:
``(A) The impact of the emergency order on public
health and safety.
``(B) The impact, if any, of the emergency order on
the national or regional economy or national security.
``(C) The impact of the emergency order on owners and
operators of pipeline facilities.
``(3) Written order.--An emergency order issued by the
Secretary pursuant to paragraph (1) with respect to an imminent
hazard shall contain a written description of--
``(A) the violation, condition, or practice that
constitutes or is causing the imminent hazard;
``(B) the entities subject to the order;
``(C) the restrictions, prohibitions, or safety
measures imposed;
``(D) the standards and procedures for obtaining
relief from the order;
``(E) how the order is tailored to abate the imminent
hazard and the reasons the authorities under section
60112 and 60117(l) are insufficient to do so; and
``(F) how the considerations were taken into account
pursuant to subsection (2).
``(4) Opportunity for review.--Upon receipt of a petition for
review from an entity subject to, and adversely affected by, an
emergency order issued under this subsection, the Secretary
shall provide an opportunity for a review of the order under
section 554 of title 5 to determine whether the order should
remain in effect, be modified, or be terminated.
``(5) Expiration of effectiveness order.--If a petition for
review of an emergency order is filed under paragraph (4) and
an agency decision with respect to the petition is not issued
on or before the last day of the 30-day period beginning on the
date on which the petition is filed, the order shall cease to
be effective on such day, unless the Secretary determines in
writing on or before the last day of such period that the
imminent hazard still exists.
``(6) Judicial review of orders.--After a final agency action
under the review process described in paragraph (4), or the
issuance of a written determination by the Secretary pursuant
to paragraph (5), an entity subject to, and adversely affected
by, an emergency order issued under this subsection may seek
judicial review of the order in a district court of the United
States and shall be given expedited consideration.
``(7) Regulations.--
``(A) Temporary regulations.--Not later than 60 days
after the date of enactment of the PIPES Act of 2016,
the Secretary shall issue such temporary regulations as
are necessary to carry out this subsection. The
temporary regulations shall expire on the date of
issuance of the final regulations required under
subparagraph (B).
``(B) Final regulations.--Not later than 270 days
after such date of enactment, the Secretary shall issue
such regulations as are necessary to carry out this
subsection. Such regulations shall ensure that the
review process described in paragraph (4) contains the
same procedures as subsections (d) and (g) of section
109.19 of title 49, Code of Federal Regulations, and is
otherwise consistent with the review process developed
under such section, to the greatest extent practicable
and not inconsistent with this section.
``(8) Imminent hazard defined.--In this subsection, the term
`imminent hazard' means the existence of a condition relating
to a gas or hazardous liquid pipeline facility that presents a
substantial likelihood that death, serious illness, severe
personal injury, or a substantial endangerment to health,
property, or the environment may occur before the reasonably
foreseeable completion date of a formal proceeding begun to
lessen the risk of such death, illness, injury, or
endangerment.
``(9) Limitation and savings clause.--An emergency order
issued under this subsection may not be construed to--
``(A) alter, amend, or limit the Secretary's
obligations under, or the applicability of, section 553
of title 5; or
``(B) provide the authority to amend the Code of
Federal Regulations.''.
SEC. 17. STATE GRANT FUNDS.
(a) Payments.--Section 60107(b) of title 49, United States Code, is
amended to read as follows:
``(b) Payments.--After notifying and consulting with a State
authority, the Secretary may withhold any part of a payment when the
Secretary decides that the authority is not carrying out satisfactorily
a safety program or not acting satisfactorily as an agent. The
Secretary may pay an authority under this section only when the
authority ensures the Secretary that it will provide the remaining
costs of a safety program, unless the Secretary waives the requirement
to provide such remaining costs.''.
(b) Repurposing of Funds.--Section 60107 is amended by adding at the
end the following:
``(e) Repurposing of Funds.--If a State program's certification is
rejected under section 60105(f) or such program is otherwise suspended
or interrupted, the Secretary may use any undistributed, deobligated,
or recovered funds authorized under this section to carry out pipeline
safety activities for that State within the period of availability for
such funds.''.
SEC. 18. RESPONSE PLANS.
Each owner or operator of a hazardous liquid pipeline facility
required to prepare a response plan pursuant to part 194 of title 49,
Code of Federal Regulations, shall consider the impact of a discharge
into or on navigable waters or adjoining shorelines, including those
that may be covered in whole or in part by ice.
SEC. 19. HIGH CONSEQUENCE AREAS.
The Secretary of Transportation shall revise section 195.6(b) of
title 49, Code of Federal Regulations, to explicitly state that the
Great Lakes and any marine coastal waters (including coastal estuaries)
are USA ecological resources for purposes of determining whether a
pipeline is in a high consequence area (as defined in section 195.450
of such title).
SEC. 20. PIPELINE SAFETY TECHNICAL ASSISTANCE GRANTS.
(a) Public Participation Limitation.--Section 60130(a)(4) of title
49, United States Code, is amended by inserting ``on technical pipeline
safety issues'' after ``public participation''.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Inspector General of the Department of Transportation
shall submit to the Secretary of Transportation and the Committee on
Transportation and Infrastructure and the Committee on Energy and
Commerce of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report evaluating the grant
program under section 60130 of title 49, United States Code. The report
shall include--
(1) a list of the recipients of all grant funds during fiscal
years 2010 through 2015;
(2) a description of how each grant was used;
(3) an analysis of the compliance with the terms of grant
agreements, including subsections (a) and (b) of such section;
(4) an evaluation of the competitive process used to award
the grant funds; and
(5) an evaluation of--
(A) the ability of the Pipeline and Hazardous
Materials Safety Administration to oversee grant funds
and usage; and
(B) the procedures used for such oversight.
SEC. 21. STUDY OF MATERIALS AND CORROSION PREVENTION IN PIPELINE
TRANSPORTATION.
(a) In General.--Not later than 2 years after the date of enactment
of the PIPES Act of 2016, the Comptroller General of the United States
shall submit to the Committee on Transportation and Infrastructure and
the Committee on Energy and Commerce of the House of Representatives
and the Committee on Commerce, Science, and Transportation of the
Senate a study on materials, training, and corrosion prevention
technologies used in pipeline transportation.
(b) Requirements.--The study required under subsection (a) shall
include--
(1) the range of piping materials, including plastic
materials, used to transport hazardous liquids and natural gas
in the United States and in other developed countries around
the world;
(2) the types of technologies used for corrosion prevention;
(3) an evaluation of the adequacy of training provided to
personnel responsible for identifying and preventing corrosion
in pipelines, and for repairing such pipelines; and
(4) an analysis of the costs and benefits, including safety
benefits, associated with the use of such materials and
technologies.
SEC. 22. RESEARCH AND DEVELOPMENT.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Comptroller General of the United States shall submit
to the Committee on Transportation and Infrastructure and the Committee
on Energy and Commerce of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the Senate a
report regarding the Pipeline and Hazardous Materials Safety
Administration's research and development program established under
section 12 of the Pipeline Safety Improvement Act of 2002 (49 U.S.C.
60101 note). The report shall include an evaluation of--
(1) compliance with the consultation requirement under
subsection (d)(2) of such section;
(2) the extent to which the Pipeline and Hazardous Materials
Administration enters into joint research ventures with Federal
and non-Federal entities, and benefits thereof;
(3) the policies and procedures the Pipeline and Hazardous
Materials Safety Administration has put in place to ensure
there are no conflicts of interest with administering grants to
grantees under the program, and whether those policies and
procedures are being followed; and
(4) an evaluation of the outcomes of research conducted with
Federal and non-Federal entities and the degree to which such
outcomes have been adopted or utilized.
(b) Collaborative Safety Research Report.--
(1) Biennial reports.--Section 60124(a)(6) of title 49,
United States Code, is amended--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) a summary of each research project carried out
with Federal and non-Federal entities pursuant to
section 12 of the Pipeline Safety Improvement Act of
2002 and a review of how intended improvements impact
safety.''.
(2) Pipeline safety improvement act.--Section 12 of the
Pipeline Safety Improvement Act of 2002 (49 U.S.C. 60101 note)
is amended--
(A) in subsection (d)(3)(C)--
(i) by striking ``program-wide'' and
inserting ``technology'';
(ii) by striking ``are'' and inserting ``may
be'';
(iii) by striking ``The Secretary'' and
inserting ``(i) The Secretary''; and
(iv) by adding at the end the following:
``(ii) at least 20 percent of the costs of basic
research and development with universities may be
carried out using non-Federal sources; and
``(iii) up to 100 percent of the costs of research
and development for purely governmental purposes may be
carried out using Federal funds.''; and
(B) by adding at the end the following:
``(h) Independent Experts.--Not later than 180 days after the date of
enactment of the PIPES Act of 2016, the Secretary shall--
``(1) implement processes and procedures to ensure that
projects listed under subsection (c), to the greatest extent
practicable, produce results that are factual and peer-reviewed
by independent experts and not with persons or entities that
have a financial interest in the pipeline, petroleum, or
natural gas industries, or that would be directly impacted by
the results of the projects; and
``(2) submit to the Committee on Transportation and
Infrastructure and the Committee on Energy and Commerce of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report on the
implementation of the processes and procedures required under
paragraph (1).
``(i) Conflict of Interest.--The Secretary shall take all practical
steps to ensure that each recipient of an agreement under this section
discloses in writing to the Secretary any conflict of interest on a
research and development project carried out under this section, and
includes any such disclosure as part of the final deliverable pursuant
to such agreement. The Secretary may not make an award under this
section directly to a pipeline owner or operator that is regulated by
the Pipeline and Hazardous Materials Safety Administration or a State-
certified regulatory authority.''.
SEC. 23. ACTIVE AND ABANDONED PIPELINES.
Not later than 90 days after the date of enactment of this Act, the
Secretary of Transportation shall issue formal guidance to owners and
operators of gas or hazardous liquid pipeline facilities and applicable
State regulatory authorities regarding the actions, including those
required by Federal regulation, required to change the status of a
pipeline facility from active to abandoned, including specific guidance
on the definition of each pipeline status referred to in such formal
guidance.
SEC. 24. STATE PIPELINE SAFETY AGREEMENTS.
(a) Study.--Not later than 2 years after the date of enactment of
this Act, the Comptroller General of the United States shall complete a
study on State pipeline safety agreements made pursuant to section
60106 of title 49, United States Code. Such study shall consider the
following:
(1) The integration of Federal and State or local authorities
in carrying out activities pursuant to an agreement under such
section.
(2) The overall cost of Federal and State authorities
carrying out inspection activities pursuant to agreements under
such section.
(3) The overall cost of the Pipeline and Hazardous Materials
Safety Administration carrying out interstate inspections
without the existence of interstate agreements with the States
pursuant to such section.
(b) Notice Requirement for Denial.--Section 60106(b) of title 49,
United States Code, is amended by adding at the end the following:
``(4) Notice upon denial.--If a State authority requests an
interstate agreement under this section and the Secretary
denies such request, the Secretary shall provide written
notification to the State authority of the denial that includes
an explanation of the reasons for such denial.''.
Purpose of Legislation
H.R. 4937, the Protecting our Infrastructure of Pipelines
and Enhancing Safety (PIPES) Act of 2016, is a four-year
reauthorization of the Pipeline and Hazardous Materials Safety
Administration's (PHMSA) pipeline safety programs. H.R. 4937
improves pipeline safety, enhances the quality and timeliness
of agency rulemakings, promotes better usage of data and
technology to improve pipeline safety, and provides regulatory
certainty for citizens, the safety community, and the industry.
The PIPES Act requires PHMSA to set Federal minimum safety
standards for underground natural gas storage facilities, and
allows states to go above those standards for intrastate
facilities. It also improves the agency's data collection
through an information sharing system, establishing an
integrated pipeline safety database, and improving damage
prevention. H.R. 4937 improves safety by authorizing emergency
order authority that is tailored to the pipeline sector, taking
into account public health and safety, network, and customer
impacts. Additionally, it ensures that pipeline operators
receive timely post-inspection information from PHMSA to allow
them to maintain and improve their safety efforts.
Background and Need for Legislation
PHMSA was created under the Norman Y. Mineta Research and
Special Programs Improvement Act of 2004 (P.L. 108-426). Prior
to enactment of the 2004 Act, the Department of
Transportation's (DOT) Research and Special Programs
Administration handled pipeline and hazardous materials safety.
Today, PHMSA's pipeline safety program oversees the safety of
the nation's 2.6 million miles of gas and hazardous liquid
pipelines, which account for the transportation of 64 percent
of the energy commodities consumed in the United States.
The natural gas industry consists of more than 160 pipeline
companies, 6,300 producers, and 1,200 natural gas distribution
companies. Industry is responsible for maintaining the safety
of hundreds of thousands of miles of pipelines. There are three
primary types of pipelines: (1) gas transmission, which make up
approximately 300,000 miles of pipelines and 180,000 miles of
those are interstate and transport natural gas from places of
production to places of consumption; (2) gas distribution
pipelines, which total over 2.1 million miles and distribute
gas to businesses and homes from transmission pipelines; and
(3) liquid pipelines, which make up 199,000 miles and transport
refined petroleum, crude oil, hydrous ammonia, biofuels, carbon
dioxide, refined petroleum products, and other hazardous liquid
materials.
PHMSA regulates the safety of pipeline facilities used in
the transportation of gas and hazardous liquids. PHMSA's
pipeline safety functions include developing, issuing, and
enforcing regulations for the safe transportation of natural
gas and hazardous liquids by pipelines. Regulatory programs are
focused on ensuring safety in the design, construction,
testing, operation, and maintenance of pipeline facilities.
PHMSA requires that pipelines be periodically inspected in
order to identify defects, such as cracks, dents, corrosion,
and manufacturing defects.
The last reauthorization of PHMSA's pipeline safety
programs was the Pipeline Safety, Regulatory Certainty, and Job
Creation Act of 2011 (P.L. 112-90), which was enacted on
January 3, 2012 and expired on September 30, 2015. Although
many specific directives included in the last reauthorization
remain incomplete, progress is being made. The Protecting our
Infrastructure of Pipelines and Enhancing Safety Act of 2016,
or PIPES Act, will ensure PHMSA completes the requirements from
the 2011 Act, and help the agency perform as a dynamic, data-
driven regulator. The bill aims to enhance the quality and
timeliness of PHMSA rulemakings to ensure safety by: (1)
requiring PHMSA to update Congress every 90 days on outstanding
statutory directives, including the status of each requirement,
reasons for its incompletion, and estimated completion date and
(2) mandating two Government Accountability Office (GAO)
studies on the effectiveness of integrity management programs
for both natural gas and hazardous liquids pipelines.
Additionally, the bill promotes better usage of data and
technology to improve pipeline safety by: (1) tasking GAO with
investigating how to use technology to improve third-party
damage prevention (a leading cause of releases), and also
requires GAO to study the latest innovations in pipeline
materials technology; (2) creating a working group of
representatives from PHMSA, states, industry stakeholders, and
safety groups to develop recommendations on how to create an
information sharing system to improve safety outcomes; and (3)
authorizing PHMSA to create a national integrated pipeline
safety database to have a clearer picture of federal and state
safety oversight efforts.
The bill also provides PHMSA with authority, in certain
limited circumstances, to impose emergency measures on owners
and operators of pipeline facilities in response to an imminent
hazard caused by unsafe conditions or practices. It (1)
requires owners and operators of such facilities to provide
Safety Data Sheets to federal and state responders within six
hours of notification to the National Response Center of a
spill; (2) mandates GAO safety evaluations of the natural gas
and hazardous liquid integrity management programs; (3)
requires owners and operators of hazardous liquid pipeline
facilities to prepare oil spill response plans to consider the
impact of a discharge into or on navigable waters and adjoining
shorelines; and (4) designates the Great Lakes and marine
coastal waters (including coastal estuaries) as unusually
sensitive area ecological resources for purposes of determining
whether a pipeline is in a high consequence area.
Every day, vital resources are moved through our pipeline
network. With the importance to our nation's energy consumption
and economic health, safety must remain the top priority. This
bill not only reauthorizes the pipeline safety program, but it
helps improve safety and the lives of millions of Americans.
Hearings
In the 114th Congress, the Subcommittee on Railroads,
Pipelines, and Hazardous Materials held several hearings and
one roundtable related to this legislation. On February 3,
2015, the Subcommittee held a hearing entitled ``How the
Changing Energy Markets Will Affect U.S. Transportation'' which
looked at the changes in domestic energy production's effects
on the transportation system, including pipeline
transportation. On April 14, 2015, the Subcommittee held a
hearing to examine the oversight of ongoing rail, pipeline, and
hazardous material rulemakings, which focused, in part, on the
unfinished pipeline safety mandates from the 2011 Act. On July
28, 2015, the Subcommittee held a roundtable discussion on
``Innovations in Pipeline Technology'' that looked at emerging
technologies to improve pipeline safety. Finally, on February
25, 2016, the Subcommittee held a hearing on the
``Reauthorization of DOT's Pipeline Safety Program,'' to look
at pipeline safety and PHMSA's remaining mandates from the 2011
Act. These Subcommittee actions built the foundation for the
PIPES Act.
Legislative History and Consideration
On April 14, 2016, House Subcommittee on Railroads,
Pipelines, and Hazardous Materials Chairman Jeff Denham,
Committee on Transportation and Infrastructure Chairman Bill
Shuster, Committee Ranking Member Peter DeFazio and
Subcommittee Ranking Member Michael Capuano introduced H.R.
4937, the Protecting our Infrastructure of Pipelines and
Enhancing Safety (PIPES) Act of 2016. On April 20, 2016, the
Committee on Transportation and Infrastructure met in open
session and ordered the bill reported favorably to the House by
voice vote with a quorum present. Eleven amendments were
offered, two were accepted, six were rejected, and three were
withdrawn.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were two recorded votes taken in connection
with consideration of H.R. 4937 on two separate amendments
offered by Congressman Rick Nolan (MN-8). On Mr. Nolan's
amendment #60 the Committee disposed of this amendment by roll
call vote as follows:
On Mr. Nolan's amendment #62 the Committee disposed of this
amendment by roll call vote as follows:
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974, included below.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 4937 from the
Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 27, 2016.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4937, the PIPES
Act of 2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Keith Hall.
Enclosure.
H.R. 4937--PIPES Act of 2016
Summary: The Pipeline and Hazardous Materials Safety
Administration (PHMSA) oversees the safety of pipelines that
transport natural gas or hazardous liquids and provides grants
to states for programs to ensure pipeline safety. H.R. 4937
would require PHMSA to pursue a variety of regulatory and
administrative activities related to such programs and would
authorize appropriations for those purposes. The bill also
would authorize PHMSA to establish safety standards for certain
underground storage facilities for natural gas, assess fees on
entities that operate such facilities, and spend such fees--
subject to authority provided in advance in appropriation
acts--to ensure that such facilities meet those standards.
CBO estimates that implementing H.R. 4937 would result in
gross appropriations totaling $529 million over the 2017-2021
period. CBO also estimates that those appropriations would be
offset by $410 million in fees paid by pipeline owners, which
would be considered offsets to discretionary spending. Assuming
appropriation actions consistent with the specified and
estimated amounts, CBO estimates that the resulting net outlays
would total $113 million over the 2017-2021 period.
In addition, CBO estimates that enacting H.R. 4937 would
increase net revenues from assessments on entities that operate
certain underground storage facilities by $17 million over the
2017-2026 period. Pay-as-you-go procedures apply because
enacting the legislation would affect revenues, Enacting H.R.
4937 would not affect direct spending.
CBO estimates that enacting the legislation would not
increase net direct spending or on-budget deficits in any of
the four consecutive 10-year periods beginning in 2027.
H.R. 4937 would impose intergovernmental and private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
by establishing new safety standards for natural gas storage
facilities and pipelines and by imposing new fees. Based on
information from PHMSA and industry sources, CBO estimates that
the cost of the mandates on public entities would fall below
the annual threshold established in UMRA for intergovernmental
mandates ($77 million, adjusted annually for inflation).
Primarily because one of the mandates on private entities would
depend on future actions by the Secretary of Transportation,
CBO cannot determine whether the aggregate cost of the mandates
on private entities would exceed the annual threshold
established in UMRA for private-sector mandates ($154 million
in 2016, adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 4937 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------
2017 2018 2019 2020 2021 2017-2021
----------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN SPENDING SUBJECT TO APPROPRIATION
Spending for Pipeline Safety and Related
Activities:
Estimated Authorization Level....... 151 154 157 0 0 462
Estimated Outlays................... 74 131 149 80 22 456
Offsetting Collections from User Fees:
Estimated Authorization Level....... -134 -138 -138 0 0 -410
Estimated Outlays................... -134 -138 -138 0 0 -410
PHMSA Operational Expenses
Authorization Level................. 22 22 23 0 0 67
Estimated Outlays................... 15 20 23 7 2 67
Total Changes:
Estimated Authorization Level... 39 38 42 0 0 119
Estimated Outlays............... -45 13 34 87 24 113
INCREASES IN REVENUESa
Assessments for Underground Natural Gas 0 0 2 2 2 7
Storage Facilities.....................
----------------------------------------------------------------------------------------------------------------
Notes: PHMSA = Pipeline and Hazardous Materials Safety Administration; Components may not sum to totals because
of rounding.
aCBO estimates that enacting H.R. 4937 would increase net revenues by $17 million over the 2019-2026 period.
Basis of estimate: For this estimate, CBO assumes that H.R.
4937 will be enacted near the start of fiscal year 2017 and the
amounts authorized and estimated to be necessary over the 2017-
2021 period will be appropriated each year. Estimates of
outlays are based on historical spending patterns for pipeline
safety programs.
Spending subject to appropriation
H.R. 4937 would reauthorize the laws that govern PHMSA's
role in pipeline safety and authorize appropriations for those
activities as well as for the agency's general operating
expenses. The bill would specify new administrative
requirements and authorize the agency to establish and enforce
safety standards for certain underground storage facilities for
natural gas. The bill also would require the Government
Accountability Office (GAO) and other agencies to conduct a
variety of studies and reports related to pipeline safety and
other activities.
The bill would authorize appropriations totaling $172
million in 2017 and $528 million over the 2017-2021 period;
additional amounts would be necessary for required reports. (In
addition, the bill would authorize appropriations totaling $168
million in 2016, the same amount that has already been provided
for that year.) The authorized and estimated amounts include:
$461 million specifically authorized for
PHMSA's pipeline safety programs;
$67 million specifically authorized for
operating expenses of support organizations within
PHMSA; and
$1 million estimated to be necessary for GAO
and other agencies to carry out various reporting and
administrative requirements.
Assuming appropriation of the authorized and estimated
amounts, CBO estimates that resulting discretionary outlays
would total $523 million over the 2017-2021 period and $6
million in later years. CBO also estimates that those outlays
would be offset by $410 million in fees paid by entities that
operate pipelines and related facilities regulated by PHMSA.
Under current law, such annual fees are based on appropriations
provided for pipeline safety and related activities and are
recorded in the budget as discretionary offsetting collections.
Revenues
H.R. 4937 would authorize PHMSA to regulate the safety of
certain underground storage facilities for natural gas. To
cover the cost of regulating such facilities, the bill would
direct the Secretary of Transportation to impose fees on
entities that operate such facilities. In CBO's view, such
regulatory fees should be recorded as revenues because of their
compulsory nature. Under the bill, PHMSA's authority to spend
those fees would be subject to appropriation.
Based on information from PHMSA and the natural gas
industry about the anticipated costs to establish and implement
the proposed safety standards, CBO estimates gross revenues
from such fees would total about $3 million annually, starting
in 2019 (the year when CBO expects PHMSA would issue
regulations as required by the bill) and $24 million through
2026. Because excise taxes and other indirect business taxes
(such as the proposed assessment under H.R. 4937) reduce the
base used for calculating income and payroll taxes, higher
amounts of those indirect business taxes would lead to
reductions in revenues from income and payroll taxes. As a
result, gross assessments would be partially offset by a loss
of receipts of about 25 percent each year. Thus, CBO estimates
that enacting H.R. 4937 would increase net revenues by $17
million over the 2019-2026 period.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in revenues that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4937, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE ON APRIL 20, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016-2021 2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact....................... 0 0 0 -2 -2 -2 -2 -2 -2 -2 -2 -7 -17
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
Increase in long term direct spending and deficits: CBO
estimates that enacting H.R. 4937 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2027.
Intergovernmental and private-sector impact: H.R. 4937
would impose intergovernmental and private-sector mandates as
defined in UMRA by establishing new safety standards for
natural gas storage facilities and pipelines and by imposing
new fees. Based on information from PHMSA and industry sources,
CBO estimates that the cost of the mandates on public entities
would fall below the annual threshold established in UMRA for
intergovernmental mandates ($77 million, adjusted annually for
inflation). Primarily because one of the mandates on private
entities would depend on future actions by the Secretary of
Transportation, CBO cannot determine whether the aggregate cost
of the mandates on private entities would exceed the annual
threshold established in UMRA for private-sector mandates ($154
million in 2016, adjusted annually for inflation).
Mandates that apply to both public and private entities
Standards and Fees for Underground Natural Gas Storage
Facilities. The bill would impose a mandate on operators of
underground natural gas storage facilities by establishing new
safety standards for those facilities. According to the
Department of Energy, there are about 400 such facilities in
the United States, and the majority of them are operated by
private entities. Organizations representing gas pipeline
companies recently adopted voluntary standards for ensuring the
safety and integrity of natural gas storage facilities. CBO
estimates that the incremental cost of the mandate would be
minimal for facilities that are currently working to comply
with those industry standards. However, based on information
from industry sources, CBO estimates that the aggregate cost of
the mandate on all facilities could total tens of millions of
dollars annually.
The bill also would impose a mandate on operators of
underground natural gas storage facilities by requiring those
operators to pay fees to the Secretary of Transportation. The
fees would be used to offset the cost of establishing and
implementing the safety standards for those facilities. CBO
estimates that those fees would total $3 million annually
beginning in 2019.
Emergency Orders. The bill would authorize the Secretary of
Transportation to issue emergency orders to address imminent
hazards at gas and hazardous liquid pipeline facilities. Those
orders would require owners and operators of the facilities to
comply with emergency restrictions, prohibitions, and safety
measures. The cost of the mandate would depend on the nature
and scope of emergency orders issued by the Secretary of
Transportation. While there is uncertainty surrounding the
potential scope and frequency of such orders, the Secretary of
Transportation has issued few emergency orders in recent years
tied to the transport of hazardous materials. We expect
emergency orders resulting from the bill's provisions to be
similarly restrained, but they could result in significant
costs to private entities, depending on the nature of the event
and the resulting order. Because few pipelines are owned by
public entities, CBO expects that the potential costs on state,
local, or tribal entities of complying with future emergency
orders would be small.
Safety Data Sheets. The bill would require each owner or
operator of a pipeline facility for hazardous liquids,
following an accident or incident, to provide safety data
sheets on any spilled oil to the appropriate federal and state
officials. CBO estimates that the cost of transmitting
information to governmental officials would be small.
Oil Spill Response Plans. The bill would require operators
of pipelines that contain hazardous liquids to consider the
effects of oil discharges into navigable waters that contain
ice and areas adjoining those waters when they prepare response
plans for oil spills. Operators of oil pipelines must prepare
and periodically update response plans pursuant to current law.
The cost of the mandate would depend on whether operators need
to amend current plans to address discharges onto ice. CBO
anticipates that pipeline operators could amend any plans at
the next scheduled update. Consequently, CBO estimates that the
cost of the mandate would not be significant.
Mandate that applies to public entities
The bill would preempt any existing state standards
regulating underground storage facilities for natural gas that
are less stringent than the new federal standards that PHMSA
would be authorized to promulgate. Because preemptions limit
the authority of state and local governments, they are
considered intergovernmental mandates under UMRA. However, CBO
estimates that the preemption would impose no duty that would
result in additional spending or a loss of revenues by state,
local, or tribal governments.
Previous CBO estimate: On February 23, 2016, CBO
transmitted a cost estimate for S. 2276, the SAFE PIPES Act, as
ordered reported by the Senate Committee on Commerce, Science,
and Transportation on December 9, 2015. S. 2276 also would
reauthorize PHMSA's activities related to pipeline safety.
Differences in our estimates of spending subject to
appropriation under H.R. 4937 and S. 2276 reflect differences
in the scope of activities and the amount of appropriations
authorized under the two bills.
In addition, both H.R. 4937 and S. 2276 would authorize
PHMSA to regulate certain underground natural gas storage
facilities and assess fees for that purpose. Our estimate of
increased net revenues from such fees is the same under both
bills.
H.R. 4937 contains the same mandates identified by CBO in
S. 2276 plus two additional mandates: a requirement to comply
with emergency orders and a requirement to provide safety data
sheets. Because the additional requirement in H.R. 4937 to
comply with emergency orders would depend on future actions by
the Secretary of Transportation, CBO cannot determine whether
the aggregate costs of the mandates would exceed the threshold
for private sector entities in this bill. The threshold
determination for intergovernmental mandates is the same for
both bills.
Estimate prepared by: Federal Costs and Revenues: Megan
Carroll; Impact on State, Local, and Tribal Governments: Jon
Sperl; Impact on the Private Sector: Amy Petz.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
ensure that PHMSA completes the remaining 2011 Act directives
and requirements, while additionally ensuring the continued
safe transportation of gas and hazardous liquids by pipeline.
This bill enhances safety by requiring the Secretary to
prescribe minimum safety standards for underground natural gas
storage facilities, increasing the quality and form of data
collection, providing the Secretary with the authority to
impose emergency measures on pipeline operators for an imminent
hazard caused by unsafe conditions or practices, requiring
pipeline operators to provide to federal and state responders
to spills Safety Data Sheets, and conducting safety reviews of
integrity management programs for natural gas and hazardous
liquid pipelines.
Advisory of Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 4937 establishes
or reauthorizes a program of the federal government known to be
duplicative of another federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H. Res. 5, 113th Cong. (2015),
the Committee estimates that enacting H.R. 4937 specifically
directs the completion of a specific rule making within the
meaning of section 551 of title 5, United States Code. Section
12 of H.R. 4937 requires the Secretary of Transportation to
establish minimum safety standards for underground natural gas
storage facilities. Section 15 requires the Secretary of
Transportation to issue an advanced notice of proposed
rulemaking to take public comment on the petition for
rulemaking dated October 28, 2015, ``Corrections of Title 49
C.F.R. 172.336 Identification numbers; special provisions.''
Further, Section 16 requires the Secretary to establish,
through rulemaking, procedures for the administrative review of
emergency orders.
Federal Mandate Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 4937 does not
preempt any state, local, or tribal law. H.R. 4937 preserves
the rights and permitting authorities of states.
Advisory Committee Statement
Section 10 of this legislation establishes an advisory
committee, as defined by section 2 of the Federal Advisory
Committee Act (5 U.S.C. app.), to develop a voluntary
information-sharing system to improve pipeline inspection
information. Pursuant to section 5 of the Federal Advisory
Committee Act, the Committee determines that the functions of
this advisory committee are not being carried out by existing
agencies or advisory commissions. The Committee also determines
that the advisory committee has a clearly defined purpose,
fairly balanced membership, and meets all of the other
requirements of section 5(b) of the Federal Advisory Committee
Act.
Applicability of Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of Legislation
Section 1. Short title; table of contents; references
This section designates the short title of this bill as the
``Protecting our Infrastructure of Pipelines and Enhancing
Safety Act of 2016'' or the ``PIPES Act of 2016.''
Section 2. Authorizations of appropriations
This section authorizes Pipeline and Hazardous Material
Safety Administration (PHMSA) pipeline safety and operational
expenses activities for fiscal years 2016 through 2019 at
baseline levels.
The Committee is concerned that PHMSA has not updated
emergency response programs with the goal of delivering
effective emergency response training to the first responders
who must respond to pipeline emergencies. Given the nation's
aging pipeline infrastructure and its exposure to future
incidents, the Committee believes the Secretary of
Transportation should consider upgrading the current pipeline
emergencies curriculum in order to take a more active role in
the upgrade and enhancement of emergency training.
Section 3. Failure of PHMSA to implement statutory mandates
This section requires the Inspector General of the
Department of Transportation, within 45 days of the enactment
of this Act, to submit a report to the Secretary of
Transportation, the PHMSA Administrator, and Congress on each
incomplete statutory directive contained in the PIPES Act,
Public Law 112-90, and any other incomplete statutory
directives from previously enacted laws.
Additionally, this section requires the Secretary to submit
a report to Congress on the specific actions taken to implement
such directives every 90 days until each incomplete directive
is implemented. The Secretary would make the report publicly
available on the Department of Transportation's internet web
site.
Section 4. Natural gas integrity management review
This section requires the Comptroller General to report to
Congress on the natural gas integrity management program (IM)
within 18 months of the date of publication of the final rule
on natural gas transmission pipeline safety. The report shall
analyze aspects of the natural gas IM program including how the
IM program has improved safety, what changes should be made to
improve the program and mitigate adverse consequences of a
release, the costs and benefits of legacy class location
regulations, pipeline features and conditions' effects on
safety and risk analysis, and a description of challenges
facing federal and state regulators, and industry, including
publicly owned natural gas distribution systems. The
Comptroller General shall make recommendations based upon their
analysis of these issues.
Section 5. Hazardous liquid integrity management review
This section requires the Comptroller General to report to
Congress on the hazardous liquid integrity management (IM)
program within 18 months of the date of publication of the
final rule on hazardous liquid pipelines. The report shall
analyze aspects of the hazardous liquid IM program, including
how the IM program has improved safety, what changes should be
made to improve the program and mitigate adverse consequences
of a release, pipeline features and conditions' effects on
safety and risk analysis, and a description of challenges
facing federal and state regulators. The Comptroller General
shall make recommendations based upon their analysis of these
issues.
Section 6. Technical safety standards committees
This section provides greater flexibility for the Secretary
of Transportation to appoint state pipeline safety officials to
advisory committees. Additionally, the Secretary, within 90
days of enactment, is required to fill all vacancies on the
Technical Pipeline Safety Standards Committee and the Technical
Hazardous Liquid Pipeline Safety Standards Committee.
Furthermore, going forward any vacancy on such committees would
be filled within 60 days of occurrence.
Section 7. Inspection report information
This section requires PHMSA, or a certified state
authority, to conduct a post-inspection briefing with the owner
or operator of a pipeline facility and, to the extent
practicable, provide written preliminary findings within 90
days of a pipeline safety inspection.
This section also requires PHMSA to provide three annual
reports to Congress on the implementation of this section,
including statistics relating to the timeliness of actions, and
a description of actions that PHMSA has taken to ensure that
inspections by state authorities provide effective and timely
oversight and statistics on timeliness of the actions.
Section 8. Improving damage prevention technology
This section requires the Comptroller General to conduct a
study on technological improvements in mapping, location, and
communication practices to prevent excavation damage to a
pipeline, which is a leading cause of pipeline incidents.
Section 9. Workforce management
This section requires the Inspector General of the
Department of Transportation to submit to Congress a review of
PMHSA staff resource management including, geographical
allocation plans, hiring challenges, expected retirement rates,
and future strategies.
Section 10. Information-sharing system
This section requires the Secretary of Transportation to
convene a working group to consider the development of a
voluntary information-sharing system to encourage collaborative
efforts to improve inspection information feedback and
information sharing to improve pipeline facility integrity risk
analysis.
The working group is required to consider and provide
recommendations to the Secretary on: (1) the need for a shared
data system; (2) ways to encourage the exchange of pipeline
inspection data and the development of advanced pipeline
inspection technologies and enhanced risk analysis; (3)
opportunities to share dig verification data; (4) options to
create a secure data system; (5) regulatory, funding, and legal
barriers to sharing information.
In carrying out this section, the Committee expects PHMSA
to consult with entities that develop and advance pipeline data
management and modeling standards.
Section 11. Nationwide integrated pipeline safety regulatory database
This section requires the Secretary of Transportation to
establish a national integrated pipeline safety regulatory
inspection database. The purpose of this database is to improve
communication and collaboration between PHMSA and state
pipeline regulators.
Section 12. Underground natural gas storage facilities
This section requires the Secretary of Transportation to
develop minimum safety standards for underground natural gas
storage facilities, including a depleted hydrocarbon reservoir,
an aquifer reservoir, and a solution-mined salt cavern
reservoir.
This section also allows for a state authority to adopt
additional or more stringent safety standards for intrastate
underground natural gas storage facilities, so long as such
standards are compatible with the minimum safety standards
prescribed in this section.
Additionally, this section establishes a user fee to fund
the oversight of underground natural gas storage facilities
that shall be imposed on an entity operating such facility. Any
fee shall be collected before the end of the fiscal year to
which it applies, and made available only to the extent
provided in advance in appropriations acts.
Section 13. Joint inspection and oversight
This section allows state authorities certified under
section 60105 of Title 49 United States Code to request the
opportunity to participate with Federal inspection teams on
inspections of interstate pipeline facilities.
Section 14. Safety data sheets
This section requires the owner or operator of a hazardous
liquid pipeline facility, following an incident, to provide
safety data sheets on any spilled oil to the designated Federal
On-Scene Coordinator and appropriate state officials within six
hours of the spill. The Committee expects hazardous liquid
pipeline owners and operators to provide the federal On-Scene
Coordinator and state officials with safety data sheets that
are specific to the oil that was spilled, not generic safety
data sheets.
Section 15. Hazardous materials identification numbers
This section directs the Secretary of Transportation to
issue an advanced notice of proposed rulemaking to take public
comment on a petition for rulemaking regarding placarding
requirements for certain flammable hazardous materials
carriers.
Section 16. Emergency order authority
This section allows the Secretary of Transportation to
impose, on an owner or operator of gas or hazardous liquid
pipeline facility, an emergency order to abate an imminent
hazard caused by an unsafe condition or practice, or
combination of unsafe conditions or practices. Prior to issuing
such an emergency order, the Secretary is required to consult
with, as appropriate, Federal agencies, state agencies, or
other entities. The Committee notes that `other entities' may
include hazardous liquid and gas pipeline owners, operators,
trade associations, and pipeline safety advocacy and other
groups. The Secretary shall consider the impact of the order on
public health and safety, the economy, national security,
owners and operators of pipelines, and consumers.
The emergency order shall contain a detailed written
description of the condition or conditions, entities subject to
the order, the restrictions imposed, the standards and
procedures for obtaining relief from the order, how the order
is tailored to abate the imminent hazard, why other
authorities, such as corrective actions orders, are
insufficient to abate the hazard, and how the pre-issuance
considerations were taken into account.
This section provides an entity subject to an order the
opportunity for petition and review, and if the Secretary fails
to make a decision within 30 days of receiving a petition for
review, the emergency order would cease to be effective unless
the Secretary determines that the imminent hazard still exists.
The Committee notes that this section neither limits, nor
enhances the potential standing of entities, including
associations, seeking judicial review of an emergency order
issued pursuant to this section. This language is also not
intended to alter judicial precedent regarding the availability
of injunctive relief. This section provides for judicial review
in a United States District Court on an expedited basis after
completion of the administrative review process.
This section provides that no later than 60 days after the
date of enactment, the Secretary shall issue temporary
regulations to carry out this section, and no later than 270
days after such an enactment the Secretary must issue final
regulations. The Committee expects the Secretary to meet these
deadlines. The regulations must include administrative review
procedures similar to those for the hazardous materials
emergency order authority, including the requirement that they
contain an option for a decision on the record after
opportunity for a hearing by an administrative law judge,
consistent with the Administrative Procedures Act.
This section defines the meaning of imminent hazard as
``the existence of a condition relating to a gas or hazardous
liquid pipeline facility that presents a substantial likelihood
that death, serious illness, severe personal injury, or a
substantial endangerment to health, property, or the
environment may occur before the reasonably foreseeable
completion date of a formal proceeding begun to lessen the risk
of such death, illness, injury, or endangerment.'' Lastly, it
contains a savings clause to prohibit an emergency order from
being used to amend the Code of Federal Regulations or
circumvent the rulemaking process.
Section 17. State grant funds
This section provides more flexibility for states by
eliminating the requirement that states spend an average of
their three prior years' funding for their pipeline safety
program costs. Under current law, the Secretary may waive this
requirement; according to PHMSA, almost all states have sought
and received such waivers since the provision became effective
in 2012.
The section also allows the Secretary to recover or retain
any unused, de-obligated, or recovered grant funds from a state
that is decertified by PHMSA under section 60105 of Title 49
United States Code. Such funds may only be used by PHMSA to
rehabilitate that state's program.
Section 18. Response plans
This section requires an owner or operator of a hazardous
liquid pipeline facility to consider the impact of a discharge
into or on navigable waters or adjoining shorelines, including
those that may be covered by ice, when preparing a response
plan. This section codifies current practice to ensure owners
or operators continue such considerations when developing
response plans.
Section 19. High consequence areas
This section states that the Great Lakes and any marine
coastal waters (including coastal estuaries) be considered
unusually sensitive area ecological resources for the purpose
of determining whether a pipeline is in a high consequence
area.
Section 20. Pipeline safety technical assistance grants
This section requires the Inspector General of the
Department of Transportation to submit a report to Congress
evaluating the Pipeline Safety Technical Assistance Grant
Program. The report would include: (1) a list of the grant
recipients from FY10 to FY15; (2) a description of how each
grant was used; (3) an analysis of compliance with terms of
grant agreements; (4) an evaluation of the competitive process;
and (5) an evaluation of PHMSA's ability to oversee grant funds
and usage, and the procedures used for oversight. Additionally,
this section ensures the grant funds are used for technical
assistance to local communities and groups of individuals
relating to the safety of pipeline facilities in local
communities. The term ``technical assistance'' means
engineering and other scientific analysis of pipeline safety
issues, including the promotion of public participation on
technical pipeline safety issues in official proceedings
conducted under chapter 601 of title 49, U.S. Code.
Section 21. Study of materials and corrosion prevention in pipeline
transportation
This section requires the Comptroller General, within 2
years of the enactment, to submit a study to Congress on
materials, corrosion prevention technologies, and training used
in pipeline transportation. The study would include: (1) the
range of piping materials, including plastic materials, used to
transport hazardous liquids and natural gas; (2) the type of
technologies used for corrosion prevention; (3) an evaluation
of the adequacy of training provided to personnel responsible
for identifying and preventing corrosion in pipelines, and for
repairing such pipelines; and (4) an analysis for the cost and
benefits, including safety benefits, associated with the use of
such materials and technology.
Section 22. Research and development
This section requires the Comptroller General to submit a
report to Congress, within 2 years of enactment, regarding
PHMSA's research and development program. The report is to
include an evaluation of: (1) PHMSA's consultation
requirements; (2) the extent to which PHMSA enters into joint
research ventures with Federal and non-Federal entities, and
benefits thereof; (3) the policies and procedures PHMSA has put
in place to ensure there are no conflicts of interests with
administering grants to grantees, and whether they are being
followed; and (4) an evaluation of the outcomes of research
conducted with Federal and non-Federal entities, and the degree
to which the outcomes have been adopted or utilized.
This section also updates a DOT biennial report to Congress
to add a summary of each research project carried out with
Federal and non-Federal entities and a review of how intended
improvements impact safety. This section also adjusts the level
of non-Federal matching requirements for certain types of co-
funded research.
Additionally, the Secretary is required to implement
policies and procedures to ensure that research projects
produce results that are factual and peer reviewed by
independent experts, and not persons or entities that have a
financial interest in the pipeline industry, or that would be
directly impacted by the results of the research project. Also,
the Secretary is to submit a report on the implementation
process and procedures under this section.
This section also requires the Secretary to take all
practical steps to ensure that each recipient of an agreement
for this program discloses in writing to the Secretary any
conflict of interest on the projects carried out in this
section, and also include any such disclosure as part of the
final deliverable. The Secretary is also prohibited from making
an award for a research and development project directly to a
pipeline owner or operator that is regulated by PHMSA or a
state-certified regulatory authority.
Section 23. Active and abandoned pipelines
This section requires PHMSA to issue formal guidance to
owners and operators of gas or hazardous liquid pipeline
facilities, and applicable state regulatory authorities,
regarding the operational definitions of pipelines and the
process and requirements on changing status of a pipeline
facility from active to abandoned.
Section 24. State pipeline safety agreements
This section requires the Comptroller General to complete a
study on state pipeline safety agreements made pursuant to
section 60106 of title 49, United States Code, within 2 years
of enactment. The GAO study would consider the integration and
the overall cost of federal and state authorities' inspection
activities, and the overall cost PHMSA would incur by carrying
out interstate inspections without the existence of interstate
agreements with States. Additionally, this section would
require the Secretary of Transportation to provide written
notification explaining the reasons for a denial of an
interstate agreement to a state.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and 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.
* * * * * * *
[6107. Authorization of appropriations.]
6107. Funding.
* * * * * * *
[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 2012 through
2015.
[(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 2012
through 2015.]
Sec. 6107. Funding
Of the amounts provided under section 60125(a)(1), the
Secretary shall withhold $1,058,000 for each of fiscal years
2016 through 2019 to carry out section 6106.
* * * * * * *
SUBTITLE VIII--PIPELINES
* * * * * * *
CHAPTER 601--SAFETY
Sec.
60101. Definitions.
* * * * * * *
60141. Standards for underground natural gas storage facilities.
Sec. 60101. Definitions
(a) General.--In this chapter--
(1) ``existing liquefied natural gas facility''--
(A) means a liquefied natural gas facility
for which an application to approve the site,
construction, or operation of the facility was
filed before March 1, 1978, with--
(i) the Federal Energy Regulatory
Commission (or any predecessor); or
(ii) the appropriate State or local
authority, if the facility is not
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 facility on which
construction is begun after November 29, 1979,
without the approval;
(2) ``gas'' means natural gas, flammable gas, or
toxic or corrosive gas;
(3) ``gas pipeline facility'' includes a pipeline, a
right of way, a facility, a building, or equipment used
in transporting gas or treating gas during its
transportation;
(4) ``hazardous liquid'' means--
(A) petroleum or a petroleum product;
(B) nonpetroleum fuel, including biofuel,
that is flammable, toxic, or corrosive or would
be harmful to the environment if released in
significant quantities; and
(C) a substance the Secretary of
Transportation decides may pose an unreasonable
risk to life or property when transported by a
hazardous liquid pipeline facility in a liquid
state (except for liquefied natural gas);
(5) ``hazardous liquid pipeline facility'' includes a
pipeline, a right of way, a facility, a building, or
equipment used or intended to be used in transporting
hazardous liquid;
(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.);
(7) ``interstate hazardous liquid pipeline facility''
means a hazardous liquid pipeline facility used to
transport hazardous liquid in interstate or foreign
commerce;
(8) ``interstate or foreign commerce''--
(A) related to gas, means commerce--
(i) between a place in a State and a
place outside that State; or
(ii) that affects any commerce
described in subclause (A)(i) of this
clause; and
(B) related to hazardous liquid, means
commerce between--
(i) a place in a State and a place
outside that State; or
(ii) places in the same State through
a place outside the State;
(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.);
(10) ``intrastate hazardous liquid pipeline
facility'' means a hazardous liquid pipeline facility
that is not an interstate hazardous liquid pipeline
facility;
(11) ``liquefied natural gas'' means natural gas in a
liquid or semisolid state;
(12) ``liquefied natural gas accident'' means a
release, burning, or explosion of liquefied natural gas
from any cause, except a release, burning, or explosion
that, under regulations prescribed by the Secretary,
does not pose a threat to public health or safety,
property, or the environment;
(13) ``liquefied natural gas conversion'' means
conversion of natural gas into liquefied natural gas or
conversion of liquefied natural gas into natural gas;
(14) ``liquefied natural gas pipeline facility''--
(A) means a gas pipeline facility used for
transporting or storing liquefied natural gas,
or for liquefied natural gas conversion, in
interstate or foreign commerce; but
(B) does not include any part of a structure
or equipment located in navigable waters (as
defined in section 3 of the Federal Power Act
(16 U.S.C. 796));
(15) ``municipality'' means a political subdivision
of a State;
(16) ``new liquefied natural gas pipeline facility''
means a liquefied natural gas pipeline facility except
an existing liquefied natural gas pipeline facility;
(17) ``person'', in addition to its meaning under
section 1 of title 1 (except as to societies), includes
a State, a municipality, and a trustee, receiver,
assignee, or personal representative of a person;
(18) ``pipeline facility'' means a gas pipeline
facility and a hazardous liquid pipeline facility;
(19) ``pipeline transportation'' means transporting
gas and transporting hazardous liquid;
(20) ``State'' means a State of the United States,
the District of Columbia, and Puerto Rico;
(21) ``transporting gas''--
(A) means--
(i) the gathering, transmission, or
distribution of gas by pipeline, or the
storage of gas, in interstate or
foreign commerce; and
(ii) the movement of gas through
regulated gathering lines; but
(B) does not include gathering gas (except
through regulated gathering lines) in a rural
area outside a populated area designated by the
Secretary as a nonrural area[.];
(22) ``transporting hazardous liquid''--
(A) means--
(i) the movement of hazardous liquid
by pipeline, or the storage of
hazardous liquid incidental to the
movement of hazardous liquid by
pipeline, in or affecting interstate or
foreign commerce; and
(ii) the movement of hazardous liquid
through regulated gathering lines; but
(B) does not include moving hazardous liquid
through--
(i) gathering lines (except regulated
gathering lines) in a rural area;
(ii) onshore production, refining, or
manufacturing facilities; or
(iii) storage or in-plant piping
systems associated with onshore
production, refining, or manufacturing
facilities[.];
(23) ``risk management'' means the systematic
application, by the owner or operator of a pipeline
facility, of management policies, procedures, finite
resources, and practices to the tasks of identifying,
analyzing, assessing, reducing, and controlling risk in
order to protect employees, the general public, the
environment, and pipeline facilities;
(24) ``risk management plan'' means a management plan
utilized by a gas or hazardous liquid pipeline facility
owner or operator that encompasses risk management;
[and]
(25) ``Secretary'' means the Secretary of
Transportation[.]; and
(26) ``underground natural gas storage facility''
means a gas pipeline facility that stores gas in an
underground facility, including--
(A) a depleted hydrocarbon reservoir;
(B) an aquifer reservoir; or
(C) a solution-mined salt cavern reservoir.
(b) Gathering Lines.--(1)(A) Not later than October 24, 1994,
the Secretary shall prescribe standards defining the term
``gathering line''.
(B) In defining ``gathering line'' for gas, the Secretary--
(i) shall consider functional and operational
characteristics of the lines to be included in the
definition; and
(ii) is not bound by a classification the Commission
establishes under the Natural Gas Act (15 U.S.C. 717 et
seq.).
(2)(A) Not later than October 24, 1995, the Secretary, if
appropriate, shall prescribe standards defining the term
``regulated gathering line''. In defining the term, the
Secretary shall consider factors such as location, length of
line from the well site, operating pressure, throughput, and
the composition of the transported gas or hazardous liquid, as
appropriate, in deciding on the types of lines that
functionally are gathering but should be regulated under this
chapter because of specific physical characteristics.
(B)(i) The Secretary also shall consider diameter when
defining ``regulated gathering line'' for hazardous liquid.
(ii) The definition of ``regulated gathering line'' for
hazardous liquid may not include a crude oil gathering line
that has a nominal diameter of not more than 6 inches, is
operated at low pressure, and is located in a rural area that
is not unusually sensitive to environmental damage.
* * * * * * *
Sec. 60105. State pipeline safety program certifications
(a) General Requirements and Submission.--Except as provided
in this section and sections 60114 and 60121 of this title, the
Secretary of Transportation may not prescribe or enforce safety
standards and practices for an intrastate pipeline facility or
intrastate pipeline transportation to the extent that the
safety standards and practices are regulated by a State
authority (including a municipality if the standards and
practices apply to intrastate gas pipeline transportation) that
submits to the Secretary annually a certification for the
facilities and transportation that complies with subsections
(b) and (c) of this section.
(b) Contents.--Each certification submitted under subsection
(a) of this section shall state that the State authority--
(1) has regulatory jurisdiction over the standards
and practices to which the certification applies;
(2) has adopted, by the date of certification, each
applicable standard prescribed under this chapter or,
if a standard under this chapter was prescribed not
later than 120 days before certification, is taking
steps to adopt that standard;
(3) is enforcing each adopted standard through ways
that include inspections conducted by State employees
meeting the qualifications the Secretary prescribes
under section 60107(d)(1)(C) of this title;
(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);
(5) may require record maintenance, reporting, and
inspection substantially the same as provided under
section 60117 of this title;
(6) may require that plans for inspection and
maintenance under section 60108 (a) and (b) of this
title be filed for approval; and
(7) may enforce safety standards of the authority
under a law of the State by injunctive relief and civil
penalties substantially the same as provided under
sections 60120 and 60122(a)(1) and (b)-(f) of this
title.
(c) Reports.--(1) Each certification submitted under
subsection (a) of this section shall include a report that
contains--
(A) the name and address of each person to whom the
certification applies that is subject to the safety
jurisdiction of the State authority;
(B) each accident or incident reported during the
prior 12 months by that person involving a fatality,
personal injury requiring hospitalization, or property
damage or loss of more than an amount the Secretary
establishes (even if the person sustaining the
fatality, personal injury, or property damage or loss
is not subject to the safety jurisdiction of the
authority), any other accident the authority considers
significant, and a summary of the investigation by the
authority of the cause and circumstances surrounding
the accident or incident;
(C) the record maintenance, reporting, and inspection
practices conducted by the authority to enforce
compliance with safety standards prescribed under this
chapter to which the certification applies, including
the number of inspections of pipeline facilities the
authority made during the prior 12 months; and
(D) any other information the Secretary requires.
(2) The report included in the first certification submitted
under subsection (a) of this section is only required to state
information available at the time of certification.
(d) Application.--A certification in effect under this
section does not apply to safety standards prescribed under
this chapter after the date of certification. This chapter
applies to each applicable safety standard prescribed after the
date of certification until the State authority adopts the
standard and submits the appropriate certification to the
Secretary under subsection (a) of this section.
(e) Monitoring.--The Secretary may monitor a safety program
established under this section to ensure that the program
complies with the certification. A State authority shall
cooperate with the Secretary under this subsection.
(f) Rejections of Certification.--If after receiving a
certification the Secretary decides the State authority is not
enforcing satisfactorily compliance with applicable safety
standards prescribed under this chapter, the Secretary may
reject the certification, assert United States Government
jurisdiction, or take other appropriate action to achieve
adequate enforcement. The Secretary shall give the authority
notice and an opportunity for a hearing before taking final
action under this subsection. When notice is given, the burden
of proof is on the authority to demonstrate that it is
enforcing satisfactorily compliance with the prescribed
standards.
(g) Joint Inspectors.--At the request of a State authority,
the Secretary shall allow for a certified State authority under
this section to participate in the inspection of an interstate
pipeline facility.
Sec. 60106. State pipeline safety agreements
(a) Agreements Without Certification.--If the Secretary of
Transportation does not receive a certification under section
60105 of this title, the Secretary may make an agreement with a
State authority (including a municipality if the agreement
applies to intrastate gas pipeline transportation) authorizing
it to take necessary action. Each agreement shall--
(1) establish an adequate program for record
maintenance, reporting, and inspection designed to
assist compliance with applicable safety standards
prescribed under this chapter; and
(2) prescribe procedures for approval of plans of
inspection and maintenance substantially the same as
required under section 60108 (a) and (b) of this title.
(b) Agreements With Certification.--
(1) In general.--If the Secretary accepts a
certification under section 60105 and makes the
determination required under this subsection, the
Secretary may make an agreement with a State authority
authorizing it to participate in the oversight of
interstate pipeline transportation. Each such agreement
shall include a plan for the State authority to
participate in special investigations involving
incidents or new construction and allow the State
authority to participate in other activities overseeing
interstate pipeline transportation or to assume
additional inspection or investigatory duties. Nothing
in this section modifies section 60104(c) or authorizes
the Secretary to delegate the enforcement of safety
standards for interstate pipeline facilities prescribed
under this chapter to a State authority.
(2) Determinations required.--The Secretary may not
enter into an agreement under this subsection, unless
the Secretary determines in writing that--
(A) the agreement allowing participation of
the State authority is consistent with the
Secretary's program for inspection and
consistent with the safety policies and
provisions provided under this chapter;
(B) the interstate participation agreement
would not adversely affect the oversight
responsibilities of intrastate pipeline
transportation by the State authority;
(C) the State is carrying out a program
demonstrated to promote preparedness and risk
prevention activities that enable communities
to live safely with pipelines;
(D) the State meets the minimum standards for
State one-call notification set forth in
chapter 61; and
(E) the actions planned under the agreement
would not impede interstate commerce or
jeopardize public safety.
(3) Existing agreements.--If requested by the State
authority, the Secretary shall authorize a State
authority which had an interstate agreement in effect
after January 31, 1999, to oversee interstate pipeline
transportation pursuant to the terms of that agreement
until the Secretary determines that the State meets the
requirements of paragraph (2) and executes a new
agreement, or until December 31, 2003, whichever is
sooner. Nothing in this paragraph shall prevent the
Secretary, after affording the State notice, hearing,
and an opportunity to correct any alleged deficiencies,
from terminating an agreement that was in effect before
enactment of the Pipeline Safety Improvement Act of
2002 if--
(A) the State authority fails to comply with
the terms of the agreement;
(B) implementation of the agreement has
resulted in a gap in the oversight
responsibilities of intrastate pipeline
transportation by the State authority; or
(C) continued participation by the State
authority in the oversight of interstate
pipeline transportation has had an adverse
impact on pipeline safety.
(4) Notice upon denial.--If a State authority
requests an interstate agreement under this section and
the Secretary denies such request, the Secretary shall
provide written notification to the State authority of
the denial that includes an explanation of the reasons
for such denial.
(c) Notification.--
(1) In general.--Each agreement shall require the
State authority to notify the Secretary promptly of a
violation or probable violation of an applicable safety
standard discovered as a result of action taken in
carrying out an agreement under this section.
(2) Response by Secretary.--If a State authority
notifies the Secretary under paragraph (1) of a
violation or probable violation of an applicable safety
standard, the Secretary, not later than 60 days after
the date of receipt of the notification, shall--
(A) issue an order under section 60118(b) or
take other appropriate enforcement actions to
ensure compliance with this chapter; or
(B) provide the State authority with a
written explanation as to why the Secretary has
determined not to take such actions.
(d) Monitoring.--The Secretary may monitor a safety program
established under this section to ensure that the program
complies with the agreement. A State authority shall cooperate
with the Secretary under this subsection.
(e) Ending agreements.--
(1) Permissive termination.--The Secretary may end an
agreement under this section when the Secretary finds
that the State authority has not complied with any
provision of the agreement.
(2) Mandatory termination of agreement.--The
Secretary shall end an agreement for the oversight of
interstate pipeline transportation if the Secretary
finds that--
(A) implementation of such agreement has
resulted in a gap in the oversight
responsibilities of intrastate pipeline
transportation by the State authority;
(B) the State actions under the agreement
have failed to meet the requirements under
subsection (b); or
(C) continued participation by the State
authority in the oversight of interstate
pipeline transportation would not promote
pipeline safety.
(3) Procedural requirements.--The Secretary shall
give notice and an opportunity for a hearing to a State
authority before ending an agreement under this
section. The Secretary may provide a State an
opportunity to correct any deficiencies before ending
an agreement. The finding and decision to end the
agreement shall be published in the Federal Register
and may not become effective for at least 15 days after
the date of publication unless the Secretary finds that
continuation of an agreement poses an imminent hazard.
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 80 percent
of the cost of the personnel, equipment, and activities the
authority reasonably requires during the next calendar year--
(1) to carry out a safety program under a
certification under section 60105 of this title or an
agreement under section 60106 of this title; or
(2) to act as an agent of the Secretary on interstate
gas pipeline facilities or interstate hazardous liquid
pipeline facilities.
[(b) Payments.--After notifying and consulting with a State
authority, the Secretary may withhold any part of a payment
when the Secretary decides that the authority is not carrying
out satisfactorily a safety program or not acting
satisfactorily as an agent. The Secretary may pay an authority
under this section only when the authority ensures the
Secretary that it will provide the remaining costs of a safety
program and that the total State amount spent for a safety
program (excluding grants of the United States Government) will
at least equal the average amount spent for gas and hazardous
liquid safety programs for the 3 fiscal years prior to the
fiscal year in which the Secretary makes the payment, except
when the Secretary waives this requirement. For each of fiscal
years 2012 and 2013, the Secretary shall grant such a waiver to
a State if the State can demonstrate an inability to maintain
or increase the required funding share of its safety program at
or above the level required by this subsection due to economic
hardship in that State. For fiscal year 2014, and each fiscal
year thereafter, the Secretary may grant such a waiver to a
State if the State can make the demonstration described in the
preceding sentence.]
(b) Payments.--After notifying and consulting with a State
authority, the Secretary may withhold any part of a payment
when the Secretary decides that the authority is not carrying
out satisfactorily a safety program or not acting
satisfactorily as an agent. The Secretary may pay an authority
under this section only when the authority ensures the
Secretary that it will provide the remaining costs of a safety
program, unless the Secretary waives the requirement to provide
such remaining costs.
(c) Apportionment and Method of Payment.--The Secretary shall
apportion the amount appropriated to carry out this section
among the States. A payment may be made under this section in
installments, in advance, or on a reimbursable basis.
(d) Additional Authority and Considerations.--(1) The
Secretary may prescribe--
(A) the form of, and way of filing, an application
under this section;
(B) reporting and fiscal procedures the Secretary
considers necessary to ensure the proper accounting of
money of the Government; and
(C) qualifications for a State to meet to receive a
payment under this section, including qualifications
for State employees who perform inspection activities
under section 60105 or 60106 of this title.
(2) The qualifications prescribed under paragraph (1)(C) of
this subsection may--
(A) consider the experience and training of the
employee;
(B) order training or other requirements; and
(C) provide for approval of qualifications on a
conditional basis until specified requirements are met.
(e) Repurposing of Funds.--If a State program's certification
is rejected under section 60105(f) or such program is otherwise
suspended or interrupted, the Secretary may use any
undistributed, deobligated, or recovered funds authorized under
this section to carry out pipeline safety activities for that
State within the period of availability for such funds.
* * * * * * *
Sec. 60115. Technical safety standards committees
(a) Organization.--The Technical Pipeline Safety Standards
Committee and the Technical Hazardous Liquid Pipeline Safety
Standards Committee are committees in the Department of
Transportation. The committees referred to in the preceding
sentence shall serve as peer review committees for carrying out
this chapter. Peer reviews conducted by the committees shall be
treated for purposes of all Federal laws relating to risk
assessment and peer review (including laws that take effect
after the date of the enactment of the Accountable Pipeline
Safety and Partnership Act of 1996) as meeting any peer review
requirements of such laws.
(b) Composition and Appointment.--(1) The Technical Pipeline
Safety Standards Committee is composed of 15 members appointed
by the Secretary of Transportation after consulting with public
and private agencies concerned with the technical aspect of
transporting gas or operating a gas pipeline facility. Each
member must be experienced in the safety regulation of
transporting gas and of gas pipeline facilities or technically
qualified, by training, experience, or knowledge in at least
one field of engineering applicable to transporting gas or
operating a gas pipeline facility, to evaluate gas pipeline
safety standards or risk management principles.
(2) The Technical Hazardous Liquid Pipeline Safety Standards
Committee is composed of 15 members appointed by the Secretary
after consulting with public and private agencies concerned
with the technical aspect of transporting hazardous liquid or
operating a hazardous liquid pipeline facility. Each member
must be experienced in the safety regulation of transporting
hazardous liquid and of hazardous liquid pipeline facilities or
technically qualified, by training, experience, or knowledge in
at least one field of engineering applicable to transporting
hazardous liquid or operating a hazardous liquid pipeline
facility, to evaluate hazardous liquid pipeline safety
standards or risk management principles.
(3) The members of each committee are appointed as follows:
(A) 5 individuals selected from departments,
agencies, and instrumentalities of the United States
Government and of the States.
(B) 5 individuals selected from the natural gas or
hazardous liquid industry, as appropriate, after
consulting with industry representatives.
(C) 5 individuals selected from the general public.
(4)(A) Two of the individuals selected for each committee
under paragraph (3)(A) of this subsection must be [State
commissioners. The Secretary shall consult with the national
organization of State commissions before selecting those 2
individuals.] State officials. The Secretary shall consult with
national organizations representing State commissioners or
Governors before making a selection under this subparagraph.
(B) At least 3 of the individuals selected for each committee
under paragraph (3)(B) of this subsection must be currently in
the active operation of natural gas pipelines or hazardous
liquid pipeline facilities, as appropriate. At least 1 of the
individuals selected for each committee under paragraph (3)(B)
shall have education, background, or experience in risk
assessment and cost-benefit analysis. The Secretary shall
consult with the national organizations representing the owners
and operators of pipeline facilities before selecting
individuals under paragraph (3)(B).
(C) Two of the individuals selected for each committee under
paragraph (3)(C) of this subsection must have education,
background, or experience in environmental protection or public
safety. At least 1 of the individuals selected for each
committee under paragraph (3)(C) shall have education,
background, or experience in risk assessment and cost-benefit
analysis. At least one individual selected for each committee
under paragraph (3)(C) may not have a financial interest in the
pipeline, petroleum, or natural gas industries.
(D) None of the individuals selected for a committee under
paragraph (3)(C) may have a significant financial interest in
the pipeline, petroleum, or gas industry.
(5) Within 90 days of the date of enactment of the PIPES Act
of 2016, the Secretary shall fill all vacancies on the
Technical Pipeline Safety Standards Committee, the Technical
Hazardous Liquid Pipeline Safety Standards Committee, and any
other committee established pursuant to this section. After
that period, the Secretary shall fill a vacancy on any such
committee not later than 60 days after the vacancy occurs.
(c) Committee Reports on Proposed Standards.--(1) The
Secretary shall give to--
(A) the Technical Pipeline Safety Standards Committee
each standard proposed under this chapter for
transporting gas and for gas pipeline facilities
including the risk assessment information and other
analyses supporting each proposed standard; and
(B) the Technical Hazardous Liquid Pipeline Safety
Standards Committee each standard proposed under this
chapter for transporting hazardous liquid and for
hazardous liquid pipeline facilities including the risk
assessment information and other analyses supporting
each proposed standard.
(2) Not later than 90 days after receiving the proposed
standard and supporting analyses, the appropriate committee
shall prepare and submit to the Secretary a report on the
technical feasibility, reasonableness, cost-effectiveness, and
practicability of the proposed standard and include in the
report recommended actions. The Secretary shall publish each
report, including any recommended actions and minority views.
The report if timely made is part of the proceeding for
prescribing the standard. The Secretary is not bound by the
conclusions of the committee. However, if the Secretary rejects
the conclusions of the committee, the Secretary shall publish
the reasons.
(3) The Secretary may prescribe a standard after the end of
the 90-day period.
(d) Proposed Committee Standards and Policy Development
Recommendations.--(1) The Technical Pipeline Safety Standards
Committee may propose to the Secretary a safety standard for
transporting gas and for gas pipeline facilities. The Technical
Hazardous Liquid Pipeline Safety Standards Committee may
propose to the Secretary a safety standard for transporting
hazardous liquid and for hazardous liquid pipeline facilities.
(2) If requested by the Secretary, a committee shall make
policy development recommendations to the Secretary.
(e) Meetings.--Each committee shall meet with the Secretary
at least up to 4 times annually. Each committee proceeding
shall be recorded. The record of the proceeding shall be
available to the public.
(f) Expenses.--A member of a committee under this section is
entitled to expenses under section 5703 of title 5. A payment
under this subsection does not make a member an officer or
employee of the Government. This subsection does not apply to
members regularly employed by the Government.
* * * * * * *
Sec. 60117. Administrative
(a) General Authority.--To carry out this chapter, the
Secretary of Transportation may conduct investigations, make
reports, issue subpenas, conduct hearings, require the
production of records, take depositions, and conduct research,
testing, development, demonstration, and training activities
and promotional activities relating to prevention of damage to
pipeline facilities. The Secretary may not charge a tuition-
type fee for training State or local government personnel in
the enforcement of regulations prescribed under this chapter.
(b) Records, Reports, and Information.--To enable the
Secretary to decide whether a person owning or operating a
pipeline facility is complying with this chapter and standards
prescribed or orders issued under this chapter, the person
shall--
(1) maintain records, make reports, and provide
information the Secretary requires; and
(2) make the records, reports, and information
available when the Secretary requests.
The Secretary may require owners and operators of gathering
lines to provide the Secretary information pertinent to the
Secretary's ability to make a determination as to whether and
to what extent to regulate gathering lines.
(c) Entry and Inspection.--An officer, employee, or agent of
the Department of Transportation designated by the Secretary,
on display of proper credentials to the individual in charge,
may enter premises to inspect the records and property of a
person at a reasonable time and in a reasonable way to decide
whether a person is complying with this chapter and standards
prescribed or orders issued under this chapter.
(d) Confidentiality of Information.--Information related to a
confidential matter referred to in section 1905 of title 18
that is obtained by the Secretary or an officer, employee, or
agent in carrying out this section may be disclosed only to
another officer or employee concerned with carrying out this
chapter or in a proceeding under this chapter.
(e) Use of Accident Reports.--(1) Each accident report made
by an officer, employee, or agent of the Department may be used
in a judicial proceeding resulting from the accident. The
officer, employee, or agent may be required to testify in the
proceeding about the facts developed in investigating the
accident. The report shall be made available to the public in a
way that does not identify an individual.
(2) Each report related to research and demonstration
projects and related activities is public information.
(f) Testing Facilities Involved in Accidents.--The Secretary
may require testing of a part of a pipeline facility subject to
this chapter that has been involved in or affected by an
accident only after--
(1) notifying the appropriate State official in the
State in which the facility is located; and
(2) attempting to negotiate a mutually acceptable
plan for testing with the owner of the facility and,
when the Secretary considers appropriate, the National
Transportation Safety Board.
(g) Providing Safety Information.--On request, the Secretary
shall provide the Federal Energy Regulatory Commission or
appropriate State authority with information the Secretary has
on the safety of material, operations, devices, or processes
related to pipeline transportation or operating a pipeline
facility.
(h) Cooperation.--The Secretary may--
(1) advise, assist, and cooperate with other
departments, agencies, and instrumentalities of the
United States Government, the States, and public and
private agencies and persons in planning and developing
safety standards and ways to inspect and test to decide
whether those standards have been complied with;
(2) consult with and make recommendations to other
departments, agencies, and instrumentalities of the
Government, State and local governments, and public and
private agencies and persons to develop and encourage
activities, including the enactment of legislation,
that will assist in carrying out this chapter and
improve State and local pipeline safety programs; and
(3) participate in a proceeding involving safety
requirements related to a liquefied natural gas
facility before the Commission or a State authority.
(i) Promoting Coordination.--(1) After consulting with
appropriate State officials, the Secretary shall establish
procedures to promote more effective coordination between
departments, agencies, and instrumentalities of the Government
and State authorities with regulatory authority over pipeline
facilities about responses to a pipeline accident.
(2) In consultation with the Occupational Safety and Health
Administration, the Secretary shall establish procedures to
notify the Administration of any pipeline accident in which an
excavator that has caused damage to a pipeline may have
violated a regulation of the Administration.
(j) Withholding Information From Congress.--This section does
not authorize information to be withheld from a committee of
Congress authorized to have the information.
(k) Authority for Cooperative Agreements.--To carry out this
chapter, the Secretary may enter into grants, cooperative
agreements, and other transactions with any person, agency, or
instrumentality of the United States, any unit of State or
local government, any educational institution, or any other
entity to further the objectives of this chapter. The
objectives of this chapter include the development,
improvement, and promotion of one-call damage prevention
programs, research, risk assessment, and mapping.
(l) Safety Orders.--
(1) In general.--Not later than December 31, 2007,
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, or other appropriate
action, to remedy that condition.
(2) Considerations.--In making a determination under
paragraph (1), the Secretary, if relevant and pursuant
to the regulations issued under paragraph (1), shall
consider--
(A) the considerations specified in
paragraphs (1) through (6) of 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) Restoration of Operations.--
(1) In general.--The Secretary may advise, assist,
and cooperate with the heads of other departments,
agencies, and instrumentalities of the United States
Government, the States, and public and private agencies
and persons to facilitate the restoration of pipeline
operations that have been or are anticipated to become
disrupted by manmade or natural disasters.
(2) Savings clause.--Nothing in this section alters
or amends the authorities and responsibilities of any
department, agency, or instrumentality of the United
States Government, other than the Department of
Transportation.
(n) Cost Recovery for Design Reviews.--
(1) In general.--
(A) Review costs.--For any project described
in subparagraph (B), if the Secretary conducts
facility design safety reviews in connection
with a proposal to construct, expand, or
operate a gas or hazardous liquid pipeline
facility or liquefied natural gas pipeline
facility, including construction inspections
and oversight, the Secretary may require the
person proposing the project to pay the costs
incurred by the Secretary relating to such
reviews. If the Secretary exercises the cost
recovery authority described in this paragraph,
the Secretary shall prescribe a fee structure
and assessment methodology that is based on the
costs of providing these reviews and shall
prescribe procedures to collect fees under this
paragraph. The Secretary may not collect design
safety review fees under this paragraph and
section 60301 for the same design safety
review.
(B) Projects to which applicable.--
Subparagraph (A) applies to any project that--
(i) has design and construction costs
totaling at least $2,500,000,000, as
periodically adjusted by the Secretary
to take into account increases in the
Consumer Price Index for all-urban
consumers published by the Department
of Labor, based on--
(I) the cost estimate
provided to the Federal Energy
Regulatory Commission in an
application for a certificate
of public convenience and
necessity for a gas pipeline
facility or an application for
authorization for a liquefied
natural gas pipeline facility;
or
(II) a good faith estimate
developed by the person
proposing a hazardous liquid
pipeline facility and submitted
to the Secretary; or
(ii) uses new or novel technologies
or design, as determined by the
Secretary.
(2) Notification.--For any new pipeline facility
construction project in which the Secretary will
conduct design reviews, the person proposing the
project shall notify the Secretary and provide the
design specifications, construction plans and
procedures, and related materials at least 120 days
prior to the commencement of construction. To the
maximum extent practicable, not later than 90 days
after receiving such design specifications,
construction plans and procedures, and related
materials, the Secretary shall provide written
comments, feedback, and guidance on the project.
(3) Pipeline Safety Design Review Fund.--
(A) Establishment.--There is established a
Pipeline Safety Design Review Fund in the
Treasury of the United States.
(B) Deposits.--The Secretary shall deposit
funds paid under this subsection into the Fund.
(C) Use.--Amounts in the Fund shall be
available to the Secretary, in amounts
specified in appropriations Acts, to offset the
costs of conducting facility design safety
reviews under this subsection.
(4) No additional permitting authority.--Nothing in
this subsection may be construed as authorizing the
Secretary to require a person to obtain a permit before
beginning design and construction in connection with a
project described in paragraph (1)(B).
(o) Emergency Order Authority.--
(1) In general.--If the Secretary determines that an
unsafe condition or practice, or a combination of
unsafe conditions and practices, constitutes or is
causing an imminent hazard, the Secretary may issue an
emergency order described in paragraph (3) imposing
emergency restrictions, prohibitions, and safety
measures on owners and operators of gas or hazardous
liquid pipeline facilities without prior notice or an
opportunity for a hearing, but only to the extent
necessary to abate the imminent hazard.
(2) Considerations.--Before issuing an emergency
order under paragraph (1), the Secretary shall
consider, after consultation with appropriate Federal
agencies, State agencies, or other entities, the
following, as appropriate:
(A) The impact of the emergency order on
public health and safety.
(B) The impact, if any, of the emergency
order on the national or regional economy or
national security.
(C) The impact of the emergency order on
owners and operators of pipeline facilities.
(3) Written order.--An emergency order issued by the
Secretary pursuant to paragraph (1) with respect to an
imminent hazard shall contain a written description
of--
(A) the violation, condition, or practice
that constitutes or is causing the imminent
hazard;
(B) the entities subject to the order;
(C) the restrictions, prohibitions, or safety
measures imposed;
(D) the standards and procedures for
obtaining relief from the order;
(E) how the order is tailored to abate the
imminent hazard and the reasons the authorities
under section 60112 and 60117(l) are
insufficient to do so; and
(F) how the considerations were taken into
account pursuant to subsection (2).
(4) Opportunity for review.--Upon receipt of a
petition for review from an entity subject to, and
adversely affected by, an emergency order issued under
this subsection, the Secretary shall provide an
opportunity for a review of the order under section 554
of title 5 to determine whether the order should remain
in effect, be modified, or be terminated.
(5) Expiration of effectiveness order.--If a petition
for review of an emergency order is filed under
paragraph (4) and an agency decision with respect to
the petition is not issued on or before the last day of
the 30-day period beginning on the date on which the
petition is filed, the order shall cease to be
effective on such day, unless the Secretary determines
in writing on or before the last day of such period
that the imminent hazard still exists.
(6) Judicial review of orders.--After a final agency
action under the review process described in paragraph
(4), or the issuance of a written determination by the
Secretary pursuant to paragraph (5), an entity subject
to, and adversely affected by, an emergency order
issued under this subsection may seek judicial review
of the order in a district court of the United States
and shall be given expedited consideration.
(7) Regulations.--
(A) Temporary regulations.--Not later than 60
days after the date of enactment of the PIPES
Act of 2016, the Secretary shall issue such
temporary regulations as are necessary to carry
out this subsection. The temporary regulations
shall expire on the date of issuance of the
final regulations required under subparagraph
(B).
(B) Final regulations.--Not later than 270
days after such date of enactment, the
Secretary shall issue such regulations as are
necessary to carry out this subsection. Such
regulations shall ensure that the review
process described in paragraph (4) contains the
same procedures as subsections (d) and (g) of
section 109.19 of title 49, Code of Federal
Regulations, and is otherwise consistent with
the review process developed under such
section, to the greatest extent practicable and
not inconsistent with this section.
(8) Imminent hazard defined.--In this subsection, the
term ``imminent hazard'' means the existence of a
condition relating to a gas or hazardous liquid
pipeline facility that presents a substantial
likelihood that death, serious illness, severe personal
injury, or a substantial endangerment to health,
property, or the environment may occur before the
reasonably foreseeable completion date of a formal
proceeding begun to lessen the risk of such death,
illness, injury, or endangerment.
(9) Limitation and savings clause.--An emergency
order issued under this subsection may not be construed
to--
(A) alter, amend, or limit the Secretary's
obligations under, or the applicability of,
section 553 of title 5; or
(B) provide the authority to amend the Code
of Federal Regulations.
* * * * * * *
Sec. 60124. Biennial reports
(a) Submission and Contents.--Not later than August 15, 1997,
and every 2 years thereafter, the Secretary of Transportation
shall submit to Congress a report on carrying out this chapter
for the 2 immediately preceding calendar years for gas and a
report on carrying out this chapter for such period for
hazardous liquid. Each report shall include the following
information about the prior year for gas or hazardous liquid,
as appropriate:
(1) a thorough compilation of the leak repairs,
accidents, and casualties and a statement of cause when
investigated and established by the National
Transportation Safety Board.
(2) a list of applicable pipeline safety standards
prescribed under this chapter including identification
of standards prescribed during the year.
(3) a summary of the reasons for each waiver granted
under section 60118(c) and (d) of this title.
(4) an evaluation of the degree of compliance with
applicable safety standards, including a list of
enforcement actions and compromises of alleged
violations by location and company name.
(5) a summary of outstanding problems in carrying out
this chapter, in order of priority.
(6) an analysis and evaluation of--
(A) research activities, including their
policy implications, completed as a result of
the United States Government and private
sponsorship; [and]
(B) technological progress in safety
achieved[.]; and
(C) a summary of each research project
carried out with Federal and non-Federal
entities pursuant to section 12 of the Pipeline
Safety Improvement Act of 2002 and a review of
how intended improvements impact safety.
(7) a list, with a brief statement of the issues, of
completed or pending judicial actions under this
chapter.
(8) the extent to which technical information was
distributed to the scientific community and consumer-
oriented information was made available to the public.
(9) a compilation of certifications filed under
section 60105 of this title that were--
(A) in effect; or
(B) rejected in any part by the Secretary and
a summary of the reasons for each rejection.
(10) a compilation of agreements made under section
60106 of this title that were--
(A) in effect; or
(B) ended in any part by the Secretary and a
summary of the reasons for ending each
agreement.
(11) a description of the number and qualifications
of State pipeline safety inspectors in each State for
which a certification under section 60105 of this title
or an agreement under section 60106 of this title is in
effect and the number and qualifications of inspectors
the Secretary recommends for that State.
(12) recommendations for legislation the Secretary
considers necessary--
(A) to promote cooperation among the States
in improving--
(i) gas pipeline safety; or
(ii) hazardous liquid pipeline safety
programs; and
(B) to strengthen the national gas pipeline
safety program.
(b) Submission of One Report.--The Secretary may submit one
report to carry out subsection (a) of this section.
Sec. 60125. Authorization of appropriations
(a) Gas and Hazardous Liquid.--
(1) In general.--To carry out the provisions of this
chapter related to gas and hazardous liquid and section
12 of the Pipeline Safety Improvement Act of 2002 (49
U.S.C. 60101 note; Public Law 107-355), [there is
authorized to be appropriated to the Department of
Transportation for each of fiscal years 2012 through
2015, from fees collected under section 60301,
$90,679,000, of which $4,746,000 is for carrying out
such section 12 and $36,194,000 is for making grants.]
there is authorized to be appropriated to the
Department of Transportation from fees collected under
sections 60301 and 60302--
(A) $124,500,000 for fiscal year 2016, of
which $9,000,000 shall be expended for carrying
out such section 12 and $39,385,000 shall be
expended for making grants;
(B) $128,000,000 for fiscal year 2017 of
which $9,000,000 shall be expended for carrying
out such section 12 and $41,885,000 shall be
expended for making grants;
(C) $131,000,000 for fiscal year 2018, of
which $9,000,000 shall be expended for carrying
out such section 12 and $44,885,000 shall be
expended for making grants; and
(D) $134,000,000 for fiscal year 2019, of
which $9,000,000 shall be expended for carrying
out such section 12 and $47,885,000 shall be
expended for making grants.
(2) Trust fund amounts.--In addition to the amounts
authorized to be appropriated by paragraph (1), [there
is authorized to be appropriated for each of fiscal
years 2012 through 2015 from the Oil Spill Liability
Trust Fund to carry out the provisions of this chapter
related to hazardous liquid and section 12 of the
Pipeline Safety Improvement Act of 2002 (49 U.S.C.
60101 note; Public Law 107-355), $18,573,000, of which
$2,174,000 is for carrying out such section 12 and
$4,558,000 is for making grants.] there is authorized
to be appropriated from the Oil Spill Liability Trust
Fund to carry out the provisions of this chapter
related to hazardous liquid and section 12 of the
Pipeline Safety Improvement Act of 2002 (49 U.S.C.
60101 note; Public Law 107-355)--
(A) $22,123,000 for fiscal year 2016, of
which $3,000,000 shall be expended for carrying
out such section 12 and $8,067,000 shall be
expended for making grants;
(B) $22,123,000 for fiscal year 2017, of
which $3,000,000 shall be expended for carrying
out such section 12 and $8,067,000 shall be
expended for making grants;
(C) $23,000,000 for fiscal year 2018, of
which $3,000,000 shall be expended for carrying
out such section 12 and $8,067,000 shall be
expended for making grants; and
(D) $23,000,000 for fiscal year 2019, of
which $3,000,000 shall be expended for carrying
out such section 12 and $8,067,000 shall be
expended for making grants.
(b) Emergency Response Grants.--
(1) In general.--The Secretary may establish a
program for making grants to State, county, and local
governments in high consequence areas, as defined by
the Secretary, for emergency response management,
training, and technical assistance. To the extent that
such grants are used to train emergency responders,
such training shall ensure that emergency responders
have the ability to protect nearby persons, property,
and the environment from the effects of accidents or
incidents involving gas or hazardous liquid pipelines,
in accordance with existing regulations.
(2) Authorization of appropriations.--There is
authorized to be appropriated $10,000,000 for each of
fiscal years 2012 through 2015 to carry out this
subsection.
(c) 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.). No grants may be awarded under section 60114(g)
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 $100,000
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--
(A) the technical findings made possible by
the grants are made available to the relevant
operators; and
(B) open communication between the grant
recipients, local operators, local communities,
and other interested parties is encouraged.
(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 on technical pipeline safety issues in
official proceedings conducted under this chapter.
(b) Prohibited Uses.--Funds provided under this section to
grant recipients and their contractors may not be used for
lobbying, for direct advocacy for or against a pipeline
construction or expansion project, or in direct support of
litigation.
(c) Authorization of Appropriations.--[There is authorized to
be appropriated to the Secretary of Transportation for carrying
out this section $1,500,000 for each of fiscal years 2012
through 2015.] Of the amounts made available under section 2(b)
of the PIPES Act of 2016, the Secretary shall withhold
$1,500,000 for each of fiscal years 2016 through 2019 to carry
out this section. Such amounts shall not be derived from user
fees collected under section 60301.
* * * * * * *
Sec. 60141. Standards for underground natural gas storage facilities
(a) Minimum Safety Standards.--Not later than 2 years after
the date of enactment of the PIPES Act of 2016, the Secretary,
in consultation with the heads of other relevant Federal
agencies, shall issue minimum safety standards for underground
natural gas storage facilities.
(b) Considerations.--In developing the safety standards
required under subsection (a), the Secretary shall, to the
extent practicable--
(1) consider consensus standards for the operation,
environmental protection, and integrity management of
underground natural gas storage facilities;
(2) consider the economic impacts of the regulations
on individual gas customers; and
(3) ensure that the regulations do not have a
significant economic impact on end users.
(c) Rules of Construction.--
(1) In general.--Nothing in this section may be
construed to affect any Federal regulation relating to
gas pipeline facilities that is in effect on the day
before the date of enactment of the PIPES Act of 2016.
(2) Limitations.--Nothing in this section may be
construed to authorize the Secretary--
(A) to prescribe the location of an
underground natural gas storage facility; or
(B) to require the Secretary's permission to
construct a facility referred to in
subparagraph (A).
(d) Preemption.--A State authority may adopt additional or
more stringent safety standards for intrastate underground
natural gas storage facilities if such standards are compatible
with the minimum standards prescribed under this section.
* * * * * * *
CHAPTER 603--USER FEES
Sec.
60301. User fees.
60302. User fees for underground natural gas storage facilities.
* * * * * * *
Sec. 60302. User fees for underground natural gas storage facilities
(a) In General.--A fee shall be imposed on an entity
operating an underground natural gas storage facility pursuant
to section 60141. Any such fee imposed shall be collected
before the end of the fiscal year to which it applies.
(b) Means of Collection.--The Secretary of Transportation
shall prescribe procedures to collect fees under this section.
The Secretary may use a department, agency, or instrumentality
of the United States Government or of a State or local
government to collect the fee and may reimburse the department,
agency, or instrumentality a reasonable amount for its
services.
(c) Use of Fees.--
(1) Account.--There is established an Underground
Natural Gas Storage Facility Safety Account in the
Pipeline Safety Fund established in the Treasury of the
United States under section 60301.
(2) Use of fees.--A fee collected under this
section--
(A) shall be deposited in the Underground
Natural Gas Storage Facility Safety Account;
and
(B) if the fee is related to an underground
natural gas storage facility pursuant to
section 60141, the amount of the fee may be
used only for an activity related to
underground natural gas storage safety.
(3) Limitation.--Amounts collected under this section
shall be made available only to the extent provided in
advance in an appropriations Act for an activity
related to underground natural gas storage safety.
* * * * * * *
----------
PIPELINE SAFETY IMPROVEMENT ACT OF 2002
* * * * * * *
SEC. 12. PIPELINE INTEGRITY, SAFETY, AND RELIABILITY RESEARCH AND
DEVELOPMENT.
(a) In General.--The heads of the participating agencies
shall carry out a program of research, development,
demonstration, and standardization to ensure the integrity of
pipeline facilities.
(b) Memorandum of Understanding.--
(1) In general.--Not later than 120 days after the
date of enactment of this Act, the heads of the
participating agencies shall enter into a memorandum of
understanding detailing their respective
responsibilities in the program authorized by
subsection (a).
(2) Areas of expertise.--Under the memorandum of
understanding, each of the participating agencies shall
have the primary responsibility for ensuring that the
elements of the program within its expertise are
implemented in accordance with this section. The
Department of Transportation's responsibilities shall
reflect its lead role in pipeline safety and expertise
in pipeline inspection, integrity management, and
damage prevention. The Department of Energy's
responsibilities shall reflect its expertise in system
reliability, low-volume gas leak detection, and
surveillance technologies. The National Institute of
Standards and Technology's responsibilities shall
reflect its expertise in materials research and
assisting in the development of consensus technical
standards, as that term is used in section 12(d)(4) of
Public Law 104-13 (15 U.S.C. 272 note).
(c) Program Elements.--The program authorized by subsection
(a) shall include research, development, demonstration, and
standardization activities related to--
(1) materials inspection;
(2) stress and fracture analysis, detection of
cracks, abrasion, and other abnormalities inside
pipelines that lead to pipeline failure, and
development of new equipment or technologies that are
inserted into pipelines to detect anomalies;
(3) internal inspection and leak detection
technologies, including detection of leaks at very low
volumes;
(4) methods of analyzing content of pipeline
throughput;
(5) pipeline security, including improving the real-
time surveillance of pipeline rights-of-way, developing
tools for evaluating and enhancing pipeline security
and infrastructure, reducing natural, technological,
and terrorist threats, and protecting first response
units and persons near an incident;
(6) risk assessment methodology, including
vulnerability assessment and reduction of third-party
damage;
(7) communication, control, and information systems
surety;
(8) fire safety of pipelines;
(9) improved excavation, construction, and repair
technologies;
(10) corrosion detection and improving methods, best
practices, and technologies for identifying, detecting,
preventing, and managing internal and external
corrosion and other safety risks; and
(11) other appropriate elements.
The results of activities carried out under paragraph (10)
shall be used by the participating agencies to support
development and improvement of national consensus standards.
(d) Program Plan.--
(1) In general.--Not later than 1 year after the date
of enactment of this section, the Secretary of
Transportation, in coordination with the Secretary of
Energy and the Director of the National Institute of
Standards and Technology, shall prepare and transmit to
Congress a 5-year program plan to guide activities
under this section. Such program plan shall be
submitted to the Technical Pipeline Safety Standards
Committee and the Technical Hazardous Liquid Pipeline
Safety Standards Committee for review, and the report
to Congress shall include the comments of the
committees. The 5-year program plan shall be based on
the memorandum of understanding under subsection (b)
and take into account related activities of other
Federal agencies.
(2) Consultation.--In preparing the program plan and
selecting and prioritizing appropriate project
proposals, the Secretary of Transportation shall
consult with or seek the advice of appropriate
representatives of the natural gas, crude oil, and
petroleum product pipeline industries, utilities,
manufacturers, institutions of higher learning, Federal
agencies, pipeline research institutions, national
laboratories, State pipeline safety officials, labor
organizations, environmental organizations, pipeline
safety advocates, and professional and technical
societies.
(3) Ongoing pipeline transportation research and
development.--
(A) In general.--After the initial 5-year
program plan has been carried out by the
participating agencies, the Secretary of
Transportation, in coordination with the
Director of the National Institute of Standards
and Technology, as appropriate, shall prepare a
research and development program plan every 5
years thereafter and shall transmit a report to
Congress on the status and results-to-date of
implementation of the program every 2 years.
The biennial report shall include a summary of
updated research needs and priorities
identified through the consultation
requirements of paragraph (2).
(B) Consultation.--The Secretary shall comply
with the consultation requirements of paragraph
(2) when preparing the program plan and in the
selection and prioritization of research and
development projects.
(C) Funding from non-federal sources.--[The
Secretary] (i) The Secretary shall ensure at
least 30 percent of the costs of [program-wide]
technology research and development activities
[are] may be carried out using non-Federal
sources.
(ii) at least 20 percent of the costs of
basic research and development with
universities may be carried out using non-
Federal sources; and
(iii) up to 100 percent of the costs of
research and development for purely
governmental purposes may be carried out using
Federal funds.
(e) Reports to Congress.-- Not later than 1 year after the
date of enactment of this Act, and annually thereafter, the
heads of the participating agencies shall transmit jointly to
Congress a report on the status and results to date of the
implementation of the program plan prepared under subsection
(d).
(f) Pipeline Integrity Program.-- Of the amounts available in
the Oil Spill Liability Trust Fund established by section 9509
of the Internal Revenue Code of 1986 (26 U.S.C. 9509),
$3,000,000 shall be transferred to the Secretary of
Transportation, as provided in appropriation Acts, to carry out
programs for detection, prevention, and mitigation of oil
spills for each of the fiscal years [2012 through 2015] 2016
through 2019.
(g) Participating Agencies Defined.-- In this section, the
term ``participating agencies'' means the Department of
Transportation, the Department of Energy, and the National
Institute of Standards and Technology.
(h) Independent Experts.-- Not later than 180 days after the
date of enactment of the PIPES Act of 2016, the Secretary
shall--
(1) implement processes and procedures to ensure that
projects listed under subsection (c), to the greatest
extent practicable, produce results that are factual
and peer-reviewed by independent experts and not with
persons or entities that have a financial interest in
the pipeline, petroleum, or natural gas industries, or
that would be directly impacted by the results of the
projects; and
(2) submit to the Committee on Transportation and
Infrastructure and the Committee on Energy and Commerce
of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate a
report on the implementation of the processes and
procedures required under paragraph (1).
(i) Conflict of Interest.-- The Secretary shall take all
practical steps to ensure that each recipient of an agreement
under this section discloses in writing to the Secretary any
conflict of interest on a research and development project
carried out under this section, and includes any such
disclosure as part of the final deliverable pursuant to such
agreement. The Secretary may not make an award under this
section directly to a pipeline owner or operator that is
regulated by the Pipeline and Hazardous Materials Safety
Administration or a State-certified regulatory authority.
* * * * * * *
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
[all]