[Senate Report 116-217]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 427
116th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      116-217
_______________________________________________________________________

                                     


                           PIPES ACT OF 2019

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2299









              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]








               February 13, 2020.--Ordered to be printed 
               
                               __________

                      U.S. GOVERNMENT PUBLISHING OFFICE
                      
99-010                     WASHINGTON : 2020 
               
               
               
               
               
               
               
               
               
               
               
               
               
               
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred sixteenth congress
                             second session

                 ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota             MARIA CANTWELL, Washington
ROY BLUNT, Missouri                  AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas                      RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska                BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas                  EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska                 TOM UDALL, New Mexico
CORY GARDNER, Colorado               GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee          TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia  TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah                       JON TESTER, Montana
RON JOHNSON, Wisconsin               KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana               JACKY ROSEN, Nevada
RICK SCOTT, Florida
                       John Keast, Staff Director
               David Strickland, Minority Staff Director





















                                                      Calendar No. 427
116th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      116-217
======================================================================



 
                           PIPES ACT OF 2019

                                _______
                                

               February 13, 2020.--Ordered to be printed

                                _______
                                

       Mr. Wicker, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2299]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2299) to amend title 49, United 
States Code, to enhance the safety and reliability of pipeline 
transportation, and for other purposes, having considered the 
same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

    The Protecting Our Infrastructure of Pipelines and 
Enhancing Safety (PIPES) Act of 2019 would reauthorize the 
pipeline safety program under the Pipeline and Hazardous 
Materials Safety Administration (PHMSA) within the Department 
of Transportation (DOT).

                          Background and Needs

    Pipeline safety reauthorizations authorize appropriations 
for the Office of Pipeline Safety (OPS), one of the two 
operating elements of PHMSA.\1\ The previous pipeline safety 
authorization, the Protecting Our Infrastructure of Pipelines 
Enhancing Safety (PIPES) Act of 2016, expires on September 30, 
2019.\2\ PHMSA is the primary regulatory agency for pipeline 
safety. OPS is an office within PHMSA that has exclusive 
jurisdiction to regulate key aspects of interstate pipeline 
safety, including pipeline design, construction, operations and 
maintenance, and emergency response planning.\3\ With the 
exception of Alaska and Hawaii, all States have assumed 
regulatory, inspection, and enforcement responsibilities with 
respect to intrastate pipelines.\4\ Those States have certified 
to OPS that they have adopted minimum Federal regulations and 
that they enforce injunctive and monetary sanctions that are 
substantially the same as those authorized by Federal law.
---------------------------------------------------------------------------
    \1\The Division of Hazardous Materials Safety of PHMSA was 
reauthorized in the Fixing America's Surface Transportation Act (Pub. 
L. 114-94).
    \2\Pub. L. 114-183.
    \3\Paul Parfomak, DOT's Federal Pipeline Safety Program: Background 
and Key Issues for Congress, CRS, July 7, 2016 (https://www.crs.gov/
Reports/R44201?source=search&guid=
f5edc625dac948caac5f3a68b8c4b2b5&index=0#_Toc530387012).
    \4\PHMSA, State Programs Overview (https://www.phmsa.dot.gov/
working-phmsa/state-
programs/state-programs-overview).
---------------------------------------------------------------------------
    Pipeline safety at PHMSA, which includes OPS, is funded 
primarily through user fees assessed on regulated pipeline 
operators on a per-mile basis.\5\ PHMSA collects additional 
fees from underground natural gas storage facility operators as 
part of its pipeline safety program. The agency's total annual 
budget authority has grown steadily since 2001.\6\ For fiscal 
year (FY) 2019, PHMSA's enacted budget authority for pipeline 
safety is about $165 million.\7\ The President's FY 2020 budget 
request for PHMSA's pipeline safety program is $149 million.\8\ 
The PIPES Act of 2016 authorized appropriations of about $149 
million per year for pipeline safety activities, primarily from 
the user fees.\9\
---------------------------------------------------------------------------
    \5\Paul Parfomak, DOT's Federal Pipeline Safety Program: Background 
and Key Issues for Congress, CRS, July 7, 2016 (https://www.crs.gov/
Reports/R44201?source=search&guid=
f5edc625dac948caac5f3a68b8c4b2b5&index=0#_Toc530387012).
    \6\See Congressional Research Service, PHMSA's Pipeline Safety 
Reauthorization: Funding Issues, October 24, 2019, Figure 1 (https://
www.everycrsreport.com/reports/IN11162.html).
    \7\See Department of Transportation, Budget Estimates Fiscal Year 
2020: Pipeline and Hazardous Materials Safety Administration, Exhibit 
II-1 (https://www.transportation.gov/sites/dot.gov/files/docs/mission/
budget/334301/fy-2020-phmsa-budget-508-compliant.pdf).
    \8\See id.
    \9\Pub. L. 114-183.
---------------------------------------------------------------------------
    The U.S. energy pipeline system consists of about 3 million 
miles of four primary types of pipelines transporting natural 
gas, oil, and hazardous liquids. Pipeline types are generally 
divided by purpose and commodity, including approximately the 
following: (1) 18,000 miles of gas gathering lines, which 
transport natural gas from individual wells (onshore and 
offshore) to larger transmission pipelines; (2) 301,000 miles 
of gas transmission pipelines, which deliver natural gas from 
producing regions to major markets; (3) 216,000 miles of liquid 
pipelines, which transport crude oil and refined products from 
producing regions and refineries to consumers; and (4) 2.2 
million miles of distribution pipelines, which deliver natural 
gas from transmission lines to homes and businesses.\10\ PHMSA 
also oversees approximately 152 liquefied natural gas (LNG) 
plants that have storage capacity for more than 54 million 
barrels.\11\
---------------------------------------------------------------------------
    \10\PHMSA, Pipeline Mileage and Facilities (https://
www.phmsa.dot.gov/data-and-statistics/pipeline/pipeline-mileage-and-
facilities).
    \11\PHMSA, Budget Estimates FY 2020 (https://
www.transportation.gov/sites/dot.gov/files/docs/mission/budget/334301/
fy-2020-phmsa-budget-508-compliant.pdf).
---------------------------------------------------------------------------

                         Summary of Provisions

    S. 2299, the PIPES Act of 2019, would do the following:
   Reauthorize DOT gas and hazardous liquid pipeline 
        safety programs from FY 2020 to FY 2023.
   Provide PHMSA authority to conduct pilot programs to 
        evaluate and implement innovative pipeline safety 
        programs and technologies.
   Require PHMSA to establish safety requirements 
        governing natural or other gas transmission and 
        hazardous liquid pipelines that are not in service.
   Direct PHMSA to update the safety standards for 
        large-scale LNG facilities to reflect changes in the 
        LNG industry and establish a National Center of 
        Excellence for LNG Safety and Training to improve and 
        promote education, training, and technological 
        advancements.
   Direct PHMSA, under the Leonel Rondon Pipeline 
        Safety Act, to improve safety in the wake of the 
        explosions caused by excessive pressure in gas lines in 
        Merrimack Valley, Massachusetts (Merrimack Valley 
        accident), by requiring changes to operator's 
        distribution integrity management plans, a study of 
        adoption of safety management system, and other 
        requirements intended to improve safety for 
        distribution pipelines.

                          Legislative History

    S. 2299 was introduced on July 25, 2019, by Senator Fischer 
(for herself and Senator Duckworth) and was referred to the 
Committee on Commerce, Science, and Transportation of the 
Senate. On July 31, 2019, the Committee met in open Executive 
Session and, by voice vote, ordered S. 2299 reported favorably 
with an amendment (in the nature of a substitute).
    The last two PHMSA pipeline safety program reauthorizations 
were the Pipeline Safety, Regulatory Certainty, and Job 
Creation Act of 2011 (the Pipeline Safety Act)\12\ and the 
PIPES Act of 2016.\13\ The Pipeline Safety Act reauthorized 
pipeline safety programs from FY 2012 through FY 2015, and it 
included 42 mandates for PHMSA. Other notable provisions from 
the bill include requiring automatic shutoff valves for 
transmission pipelines, verification of maximum allowable 
operating pressure, and increased civil penalties for operator 
violations.
---------------------------------------------------------------------------
    \12\Pub. L. 112-90.
    \13\Pub. L. 114-183.
---------------------------------------------------------------------------
    The PIPES Act of 2016 was enacted on June 22, 2016. Senator 
Fischer sponsored the bill, which reauthorized PHMSA pipeline 
safety programs from FY 2016 to FY 2019 at an average funding 
level of $150 million each year. The PIPES Act of 2016 also 
included 19 mandates for PHMSA, which were in addition to the 
rulemakings required by the Pipeline Safety Act. Other notable 
provisions of the PIPES Act of 2016 include establishing 
Federal safety standards for underground natural gas storage 
facilities, granting PHMSA emergency authority to address 
urgent safety conditions, and requiring PHMSA to report on the 
progress of completing outstanding rulemakings.
    Senator Edward Markey introduced S. 1097, entitled ``The 
Leonel Rondon Pipeline Safety Act'' on April 9, 2019, in 
response to the Merrimack Valley gas pipeline incident that 
occurred in Massachusetts in September 2018. S. 1097 largely 
focuses on distribution gas operators given the nature of the 
Merrimack Valley accident and, among other provisions, would 
direct DOT to strengthen requirements for distribution 
integrity management plans, require DOT to revise its 
regulations governing Emergency Response Plans, and direct DOT 
to issue regulations on gas distribution operators' procedural 
manuals.
    On August 20, 2018, the Committee on Commerce, Science, and 
Transportation of the Senate held a hearing entitled, 
``Pipeline Safety in the Great Lakes: Incident Prevention and 
Response Efforts at the Straits of Mackinac'' in Traverse City, 
Michigan. The hearing focused on incident prevention and 
accident response following the Mackinac incidents.
    On November 26, 2018, the Committee on Commerce, Science, 
and Transportation of the Senate held a hearing entitled, 
``Pipeline Safety in the Merrimack Valley: Incident Prevention 
and Response'' in Lawrence, Massachusetts. The hearing focused 
on the natural gas explosions and fires in Lawrence and 
Andover, Massachusetts resulting from the Merrimack Valley 
accident, as well as response efforts by Federal, State, and 
local authorities. The hearing also considered other issues 
that occurred during the Merrimack Valley accident and actions 
that could be taken to prevent similar occurrences in the 
future.
    On April 10, 2019, the Subcommittee on Transportation and 
Safety of the Committee on Commerce, Science, and 
Transportation of the Senate held a hearing entitled, 
``Pipeline Safety: Federal Oversight and Stakeholder 
Perspectives.'' The hearing examined Federal pipeline safety 
and the member and stakeholder priorities for pipeline safety 
reauthorization.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    Bill summary: S. 2299 would require the Pipeline and 
Hazardous Materials Safety Administration (PHMSA) to pursue a 
variety of regulatory, administrative, and inspection 
activities and would authorize appropriations for those 
purposes through fiscal year 2023. PHMSA oversees the safety of 
pipelines that transport natural gas or hazardous liquids and 
provides grants to states for programs to ensure pipeline 
safety. The bill also would authorize PHMSA to collect higher 
fees from operators of certain natural gas underground storage 
facilities, require the Department of Transportation (DOT) to 
establish a National Center of Excellence for Liquefied Natural 
Gas (LNG) Safety and Training, and require DOT and the 
Government Accountability Office to evaluate various pipeline 
safety programs.
    Estimated Federal cost: The estimated budgetary effect of 
S. 2299 is shown in Table 1. The costs of the legislation fall 
within budget function 400 (transportation).
    Basis of estimate: For this estimate, CBO assumes that S. 
2299 will be enacted near the end of 2019. Assuming 
appropriation of the specified and estimated amounts CBO 
estimates that implementing the bill would cost $131 million 
over the 2020-2024 period and $40 million after 2024. Estimated 
outlays are based on historical spending patterns.
    S. 2299 would authorize the gross appropriation of $204 
million and the collection of fees, which are treated as 
offsets to discretionary appropriations, for 2020. In 2019, CBO 
estimates that those programs received appropriations totaling 
$189 million and that PHMSA collected fees for those activities 
totaling $142 million. Because CBO scores continuing 
resolutions on an annualized basis, CBO estimates that under 
the current continuing resolution (Public Law 116-59), which 
provides funds and the authority to collect fees through 
November 21, 2019, those same amounts are available in 2020. 
Thus, the estimated gross authorization from this bill for 2020 
is equal to the specified amounts minus the annualized amount 
from the continuing resolution ($13 million).

                TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 2299a
----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year, millions of dollars--
                                                         -------------------------------------------------------
                                                            2020     2021     2022     2023     2024   2000-2024
----------------------------------------------------------------------------------------------------------------
Fee-Financed Safety Programsb
  Authorization.........................................       13      159      163      167        0       502
  Estimated Outlays.....................................        6       83      140      159       84       472
Offsetting Collections from User Feesb
  Estimated Authorization...............................      -13     -159     -163     -167        0      -502
  Estimated Outlays.....................................      -13     -159     -163     -167        0      -502
Trust Fund-Financed Safety Programsbc
  Authorization.........................................        2       26       27       28        0        83
  Estimated Outlays.....................................        1       14       23       26       14        78
PHMSA Operational Expensesb
  Authorization.........................................        -       25       26       27        0        78
  Estimated Outlays.....................................        -       18       23       25        7        73
Other
  Estimated Authorization...............................        5        2        2        2        0        10
  Estimated Outlays.....................................        2        3        2        2        1        10
Total Changes
  Estimated Authorization...............................        7       53       55       57        0       171
  Estimated Outlays.....................................       -4      -41       25       45      106       131
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; PHMSA = Pipeline and Hazardous Materials Safety
  Administration; * = between -$500,000 and zero.
aIn addition, CBO estimates that enacting S. 2299 would have an insignificant effect on direct spending.
bCBO estimates that S. 2299 would authorize gross appropriations of $204 million in 2020 for PHMSA activities
  that also received an appropriation in 2019, as well as the authority collect fees, which are treated as
  offsets to discretionary appropriations However, CBO estimates that $189 million in spending and $142 million
  in collections has been allocated for those activities on an annualized basis from funds and authority made
  available under the continuing resolution (Public Law 116-59), which provided appropriations through November
  21, 2019. Thus, the estimated gross authorization for 2020 is equal to the specified and estimated amounts
  minus the annualized amount from the continuing resolution.
cThese amounts would be from the Oil Spill Liability Trust Fund.

Fee-financed safety programs

    S. 2299 would authorize gross appropriations totaling $644 
million over the 2020-2024 period for safety programs operated 
by PHMSA for pipelines and natural gas storage facilities. 
Because $142 million of that amount has been provided by the 
continuing resolution in 2020 the estimated gross appropriation 
from S. 2299 totals $502 million. The bill also would authorize 
PHMSA to collect up to 105 percent of that amount from fees 
paid by pipeline operators and owners of underground natural 
gas storage facilities. For this estimate, CBO assumes that 
PHMSA would collect fees, which are treated as offsets to 
discretionary spending, equal to 100 percent of the authorized 
amount totaling $644 million in collections over the 2020-2024 
period, of which $142 million has been authorized by the 
continuing resolution. Thus, the estimated collections credited 
total $502 million and outlays sum to $472 million over the 
2020-2024 period.

Trust fund-financed safety programs

    The bill also would authorize appropriations totaling $106 
million over the 2024-2024 period from the Oil Spill Liability 
Trust Fund. $23 million of that amount has been provided by the 
continuing resolution in 2020, so this bill's effective 
authorization over the five year period is $83 million and CBO 
estimates outlays would total $78 million.

PHMSA operational expenses

    The bill would authorize appropriations totaling $102 
million for PHMSA's operating expenses over the 2020-2024 
period--$24 million of that amount has been provided by the 
continuing resolution for 2020; so the bill's effective 
authorization over the five year period is $78 million and CBO 
estimates outlays would total $73 million.

Other

    S. 2299 would authorize the appropriation of $6 million 
over the 2020-2024 period for damage prevention programs, and 
CBO estimates that $4 million would be needed to conduct 
studies, to issue regulations, and to establish a National 
Center of Excellence for LNG Safety and Training as required 
under the bill. CBO estimates those provisions would cost $10 
million over the 2020-2024 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. S. 2299 would impose a new fee on owners of certain 
LNG facilities and authorize spending of those receipts without 
future appropriation, CBO estimates that the net effect on 
direct spending, would not be significant in any year and over 
the 2020-2029 period.
    Increase in long-term benefits: None.
    Mandates: S. 2299 would impose private-sector mandates as 
defined in the Unfunded Mandates Reform Act (UMRA) by 
establishing new user fees and new safety standards for gas 
pipelines and facilities and liquefied natural gas facilities. 
Using information from PHMSA, CBO estimates the aggregate cost 
of the mandates on private entities would fall below the annual 
threshold established in UMRA for private-sector mandates ($164 
million in 2019, adjusted annually for inflation).
    The bill also would preempt state regulations that are 
inconsistent with a new program to test pipeline safety. CBO 
estimates that the aggregate cost of the mandates on public 
entities would fall below the annual threshold established in 
UMRA for intergovernmental mandates ($82 million in 2019, 
adjusted annually for inflation).

Mandates on private entities

    The bill would impose mandates on private pipeline 
operators by imposing new liquid natural gas (LNG) facility 
fees. S. 2299 would impose a new LNG facility fee on 
applications for liquid natural gas facilities whose design and 
construction costs exceed $2.5 billion. The fee would cover the 
Department's cost to review applications, and once fully 
implemented, the fee would impose a cost of about $1 million 
each year on new LNG facilities.
    The bill would impose new safety standards on distribution 
systems and facilities. These standards would require operators 
to:
         Assess the factors that would make operating a 
        low-pressure system connected to low-pressure burning 
        equipment unsafe,
         Develop written emergency response plans to 
        communicate rapidly with customers during emergencies, 
        and
         Have a qualified individual monitor gas 
        pressure during construction projects and shutoff the 
        flow of gas if necessary.
    Because those new safety standards extend standards already 
in place under current law, CBO estimates that the aggregate 
cost of complying with the new requirements would be small.
    The bill also would require operators of large-scale LNG 
facilities to meet new minimum operating and maintenance 
standards as directed under the bill. Because the standards 
have not yet been established by PHMSA, CBO cannot estimate the 
cost of the mandate.
    Finally, the bill would require the proposed rules 
published in the Federal Register on April 8, 2016, entitled 
``Pipeline Safety: Safety of Gas Transmission and Gathering 
Pipelines,'' to be completed and published. Using information 
from PHMSA, CBO estimates the cost for operators to comply with 
these rules would be roughly $45 million each year.

Mandate on public entities

    The bill would preempt state regulations that are 
inconsistent with a program that would permit the Secretary of 
Transportation to carry out a limited number of testing 
programs to improve the safety of natural gas and hazardous 
liquid gas pipeline facilities. Before the department 
establishes a testing program, a state could request an 
exemption from the Secretary, which must be granted under the 
bill. Under UMRA, preempting state laws or requiring an entity 
to take affirmative action to avoid a new duty imposes a 
mandate on the entity. CBO estimates the cost to comply with 
the mandate would be very small because of the limited scope of 
the program.

Other effects

    The federal pipeline safety program is administered by 
PHMSA unless a state has requested and been granted the 
authority to administer the program within its boundaries. Only 
Alaska and Hawaii rely on PHMSA to regulate pipeline safety.
    State regulatory agencies in the remaining 48 states 
conduct pipeline inspections and enforce federal safety rules; 
provisions in the bill would increase the regulatory burden on 
those states by adding to their oversight and review 
activities. Under current law, PHMSA provides grants to states 
to reimburse up to 80 percent of the total cost of conducting 
their regulatory activities during a calendar year. Increasing 
the regulatory burden would increase the financial burden on 
states, however, states incur those costs as a condition of 
voluntarily overseeing the pipeline safety and underground 
storage program.
    Estimate prepared by: Federal costs: Aaron Krupkin; 
Mandates: Brandon Lever.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural and 
Physical Resources Cost Estimates Unit; Susan Willie, Chief, 
Mandates Unit; H. Samuel Papenfuss, Deputy Assistant Director 
for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    S. 2299, as reported, would impose new guidelines and 
requirements for PHMSA, including on specified occasions the 
Secretary. The bill also would require pipeline operators to 
conduct studies, prepare reviews, pay increased fees, and 
improve certain facilities in accordance with PHMSA 
regulations. It is expected that any new requirements imposed 
on pipeline facilities as a result of S. 2299 would be carried 
out, in most cases, by parties currently subject to PHMSA 
regulation.

                            economic impact

    Enactment of S. 2299, as reported, is not expected to have 
any inflationary or adverse impact on the Nation's economy.

                                privacy

    The reported bill is not expected to have an adverse impact 
on the personal privacy of individuals.

                               paperwork

    As reported, S. 2299 would require reports from the Federal 
Government. The bill would require PHMSA to conduct and report 
to Congress on a comprehensive workforce plan to meet the 
future needs of the agency. The bill also would require PHMSA 
to conduct a pipeline safety testing enhancement study and 
report to Congress on its research findings. Finally, the bill 
would require PHMSA to report to Congress on a regular basis 
regarding outstanding mandates.
    Title II of S. 2299, as reported, would require PHMSA to 
update and review certain regulations pertaining to operators 
of distribution pipeline facilities. Additionally, the bill 
would require PHMSA to conduct a study on the distribution 
industry's adoption of pipeline safety management systems and 
report to Congress with guidance and recommendations that would 
further the adoption of safety management systems.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Section 1. Short title; table of contents.

    This section would provide that the bill may be cited as 
the ``PIPES Act of 2019''.

Section 2. Definitions.

    This section would define the terms ``Administration,'' 
``Administrator,'' and ``Secretary''.

         TITLE I--IMPROVING PIPELINE SAFETY AND INFRASTRUCTURE


Section 101. Authorization of appropriations.

    This section would authorize appropriations for FY 2020 
through 2023 for the Pipeline Safety Program under PHMSA. This 
section would provide budget authority of $180 million in FY 
2020 rising to $195 million in FY 2023. This includes a nearly 
50 percent increase in funds for grants to State inspection 
agencies as compared to the previous 4 years. This section also 
would authorize operational expenses for FY 2020, as well as 
funds for one-call notification programs, pipeline safety 
information grants, and other programs.

Section 102. Pipeline workforce development.

    This section would direct PHMSA to conduct a workforce 
development study to review how the agency recruits and trains 
inspectors. This section also would require the agency to 
identify its 10-year workforce needs.

Section 103. Underground natural gas storage user fees.

    Section 12(c) of the PIPES Act of 2016 (49 U.S.C. 60302) 
authorized the collection and use of user fees from operators 
of underground natural gas storage facility operators. This 
section would increase the amount of fees that PHMSA is allowed 
to collect for conducting natural gas storage facility 
inspections by 5 percent.

Section 104. Cost recovery and fees for facility reviews.

    Currently, there is a memorandum of understanding which 
allows the Federal Energy Regulatory Commission to reimburse 
PHMSA for the safety inspection and reviews that PHMSA conducts 
on LNG facility projects costing $2.5 billion or more. This 
section would allow PHMSA to collect fees directly from those 
facilities for the necessary expenses it incurs to perform such 
inspections and reviews.

Section 105. Advancement of new pipeline safety technologies and 
        approaches.

    This section would provide PHMSA with the authority to 
establish pilot programs to evaluate innovative technologies 
and operational practices in order to enhance pipeline safety. 
This section would allow PHMSA to use existing authority to 
exempt pipeline operators participating in the pilot from 
regulations that would otherwise prevent the use of a new 
safety technology. Such pilot programs would be limited to a 
duration of 4 years and a total pipeline mileage of 5 percent 
and would be prohibited from being conducted in high population 
areas. This section also would allow States to opt-out of the 
pilot program. The program would exist from FY 2020 to FY 2026.

Section 106. Pipeline safety testing enhancement study.

    This section would direct PHMSA to conduct a study and 
report to Congress, no later than 2 years after enactment, on 
its research and development capabilities and whether an 
independent pipeline safety testing facility could improve 
DOT's research and development capabilities. The study would 
require PHMSA to consider its ability to use existing test 
facilities established by other modal administrations and 
federally funded research and development centers, as well as 
the costs and benefits of developing such a facility.

Section 107. Regulatory updates.

    This section would direct PHMSA to inform Congress of 
progress on outstanding Congressional mandates every 30 days. 
Under this section, updates to Congress would include a 
description of the work plan for outstanding mandates, 
rulemaking timeline, any resource constraints affecting the 
rulemaking, and other information related to the status and 
timing of a rulemaking.

Section 108. Self-disclosure of violations.

    Under current law,\14\ in determining the amount of a civil 
penalty, PHMSA must consider the following: nature, 
circumstances, and gravity of a violation; the violator's 
degree of culpability, history of prior violations, and any 
effect on the violator's ability to continue doing business, 
and good faith in attempting to comply. This section would 
require PHMSA to also consider in determining such civil 
penalties whether the violator self-disclosed and corrected the 
violation, or took actions to correct a violation, prior to 
discovery by PHMSA.
---------------------------------------------------------------------------
    \14\ 49 U.S.C. 60122(b).
---------------------------------------------------------------------------

Section 109. Due process protections in enforcement proceedings.

    This section would improve the due process protections in 
PHMSA enforcement proceedings by requiring aspects of 
enforcement proceedings to be public, allowing administrative 
law judges to review enforcement decisions, providing greater 
access to administrative records, and resolving issues of 
controversy and uncertainty through declaratory relief.

Section 110. Pipeline operating status.

    This section would direct PHMSA to perform a rulemaking to 
establish an idled pipeline operating status and applicable 
safety requirements. Under this section, idled pipelines would 
have to be cleared of combustibles and hazardous materials. The 
section also would require the Secretary or an appropriate 
State agency to inspect idled pipelines to verify that the 
pipeline has been cleared of relevant materials.

Section 111. Liquefied natural gas facility project reviews.

    This section would clarify PHMSA's role in the review of 
LNG export facilities. States are permitted to request PHMSA to 
conduct a review of an LNG export facility related to facility 
safety. This section also would clarify that PHMSA's letter of 
determination regarding the safety of a facility is not a final 
determination of whether the project will be granted a permit, 
which will remain under the Federal Energy Regulatory 
Commission's jurisdiction.

Section 112. Updates to standards for liquefied natural gas facilities.

    This section would direct PHMSA to review its current LNG 
facility standards--found in 49 CFR part 193 and originally 
written for smaller facilities such as peak-shaving 
facilities--to update its regulations and adopt a risk-based 
regulatory approach for large-scale LNG facilities. This 
section would not make changes to the regulations for peak 
shaving facilities.

Section 113. National Center of Excellence for Liquefied Natural Gas 
        Safety and Training.

    This section would direct the Secretary to establish a 
National Center of Excellence for LNG Safety and Training to 
promote and facilitate education and other training activities 
related to LNG. Among other roles, the National Center of 
Excellence for LNG Safety and Training would be a repository of 
information on best practices relating to LNG operations and a 
center for fostering collaboration among relevant stakeholders. 
This section would require the Secretary to consult a variety 
of agencies and LNG-related stakeholders in developing the 
National Center of Excellence, including the Department of 
Energy, the Federal Energy Regulatory Commission, the Coast 
Guard, LNG facilities, safety organizations, and others.

Section 114. Prioritization of rulemaking.

    This section would require, within 90 days of enactment, 
the Secretary to complete and publish the outstanding 
rulemaking titled ``Pipeline Safety: Safety of Gas Transmission 
and Gathering Pipelines''.
    This section would require the Comptroller General to 
complete, within 1 year of enactment, a study to review the 
extent to which geospatial and technical data is collected by 
operators of gathering lines, and assess the plans and 
timelines for operators to develop mapping information, and to 
submit a copy of the study to the appropriate committees of 
Congress upon completion.

              TITLE II--LEONEL RONDON PIPELINE SAFETY ACT


Section 201. Short title.

    This section would direct the short title of this section 
to be ``Leonel Rondon Pipeline Safety Act''.

Section 202. Distribution integrity management plans.

    This section would direct PHMSA to expand its regulations 
to ensure that distribution integrity management plans for 
distribution operators evaluate certain risks, such as those 
posed by cast iron pipes and mains, and low-pressure systems, 
as well as the possibility of future accidents to better 
account for high-consequence but low probability events. This 
section also would require distribution operators to make their 
updated distribution integrity management plans available to 
PHMSA or the relevant State regulatory agency no later than 2 
years after enactment and would require inspectors to review 
such plans if significant changes are made to the plans or 
system or at least every 5 years. Finally, this section would 
direct DOT to revise the State audit protocols and procedures 
and update the State Inspection Calculation Tool.

Section 203. Emergency response plans.

    This section would direct PHMSA to update its emergency 
response plan regulations to ensure that each emergency 
response plan developed by a distribution system operator 
includes written procedures for how to handle communications 
with first responders and the general public after certain 
significant pipeline emergencies, in order to ensure that 
pipeline operators contact first responders as soon as 
practicable after they know an incident has occurred.

Section 204. Operations and maintenance manuals.

    This section would direct the Secretary to update the 
regulations for operations and maintenance manuals in order to 
require distribution system operators to have a specific action 
plan to respond to overpressurization events. Additionally, 
this section would require operators to develop written 
procedures for management of change processes for significant 
technology, equipment, procedural, and organizational changes 
to the distribution system and ensure that relevant qualified 
personnel, such as a professional engineer with a license, 
reviews and certifies such changes.

Section 205. Pipeline safety management systems.

    This section would direct PHMSA to conduct a study on the 
distribution industry's adoption of pipeline safety management 
systems and provide guidance on how to further the adoption of 
these systems and to provide a copy of the report to relevant 
Committees no later than 3 years after enactment. This section 
also would require PHMSA and relevant State authorities to 
promote and assess gas distribution operators' pipeline safety 
management systems, including by using independent third-party 
evaluators as necessary.

Section 206. Pipeline safety practices.

    This section would direct PHMSA to issue regulations that 
require distribution pipeline operators to identify and manage 
traceable, reliable, and complete maps and records of critical 
pressure-control infrastructure, and update these records as 
appropriate. These records would have to be submitted or made 
available to the relevant regulatory agency. These regulations 
shall require non-critical records to be gathered on an 
opportunistic basis.
    This section also would direct PHMSA to issue regulations 
requiring an agent of a distribution system operator to monitor 
gas pressure at certain sites and have the ability to cut off 
or limit gas pressure during construction projects that have 
the potential to cause a hazardous overpressurization.
    Finally, this section would direct PHMSA to issue 
regulations on district regulator stations to ensure that 
distribution system operators minimize the risk of a common 
mode of failure at low-pressure district regulator stations, 
monitor the gas pressure of a low-pressure system, and install 
overpressure protection safety technology at low-pressure 
district regulator stations. If it is not operationally 
possible to install such technology, this section would require 
the relevant operator to identify plans that would minimize the 
risk of an overpressurization event.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, 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 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                        TITLE 49--TRANSPORTATION


             SUBTITLE III--GENERAL AND INTERMODAL PROGRAMS

               CHAPTER 61--ONE-CALL NOTIFICATION PROGRAMS

Sec. 6107. Funding

  Of the amounts made available under section 60125(a)(1), the 
Secretary shall expend [$1,058,000 for each of fiscal years 
2016 through 2019] $1,058,000 for each of fiscal years 2020 
through 2023 to carry out section 6106.

           *       *       *       *       *       *       *


                        TITLE 49--TRANSPORTATION


                        SUBTITLE VIII--PIPELINES

                          CHAPTER 601--SAFETY

Sec.
60101. Definitions.
60102. Purpose and general authority.
60103. Standards for liquefied natural gas pipeline facilities.
60104. Requirements and limitations.
60105. State pipeline safety program certifications.
60106. State pipeline safety agreements.
60107. State pipeline safety grants.
60108. Inspection and maintenance.
60109. High-density population areas and environmentally sensitive 
          areas.
60110. Excess flow valves.
60111. Financial responsibility for liquefied natural gas facilities.
60112. Pipeline facilities hazardous to life and property.
60113. Customer-owned natural gas service lines.
60114. One-call notification systems.
60115. Technical safety standards committees.
60116. Public education programs.
60117. Administrative.
60118. Compliance and waivers.
60119. Judicial review.
60120. Enforcement.
60121. Actions by private persons.
60122. Civil penalties.
60123. Criminal penalties.
60124. Biennial reports.
60125. Authorization of appropriations.
60126. Risk management.
60127. Population encroachment and rights-of-way.
60128. Dumping within pipeline rights-of-way.
60129. Protection of employees providing pipeline safety information.
60130. Pipeline safety information grants to communities.
60131. Verification of pipeline qualification programs.
60132. National pipeline mapping system.
60133. Coordination of environmental reviews.
60134. State damage prevention programs.
60135. Enforcement transparency.
60136. Petroleum product transportation capacity study.
60137. Pipeline control room management.
60138. Response plans.
60139. Maximum allowable operating pressure.
60140. Cover over buried pipelines.
60141. Standards for underground natural gas storage facilities.
60142. Pipeline safety enhancement programs.
60143. Idled pipelines.

Sec. 60101. Definitions

  (a) * * *

Sec. 60102. Purpose and general authority

  (a) * * *
  (q) Emergency Response Plans.--Not later than 2 years after 
the date of enactment of this subsection, the Secretary shall 
update regulations to ensure that each emergency response plan 
developed by an operator of a distribution system under section 
192.615 of title 49, Code of Federal Regulations (or a 
successor regulation), includes written procedures for--
          (1) establishing communication with first responders 
        and other relevant public officials, as soon as 
        practicable, beginning from the time of confirmed 
        discovery, as determined by the Secretary, by the 
        operator of a gas pipeline emergency involving a 
        release of gas from a distribution system of that 
        operator that results in--
                  (A) a fire related to an unintended release 
                of gas;
                  (B) an explosion;
                  (C) 1 or more fatalities; or
                  (D) the unscheduled release of gas and 
                shutdown of gas service to a significant number 
                of customers, as determined by the Secretary;
          (2) establishing general public communication through 
        an appropriate channel--
                  (A) as soon as practicable, as determined by 
                the Secretary, after a gas pipeline emergency 
                involving a release of gas that results in--
                          (i) a fire related to an unintended 
                        release of gas;
                          (ii) an explosion;
                          (iii) 1 or more fatalities; or
                          (iv) the unscheduled shutdown of gas 
                        service to a significant number of 
                        customers, as determined by the 
                        Secretary; and
                  (B) that provides information regarding--
                          (i) the emergency described in 
                        subparagraph (A); and
                          (ii) the status of public safety; and
          (3) the development and implementation of a 
        voluntary, opt-in system that would allow operators of 
        distribution systems to rapidly communicate with 
        customers in the event of an emergency.
  (r) Operations and Maintenance Manuals.--Not later than 2 
years after the date of enactment of this subsection, the 
Secretary shall update regulations to ensure that each 
procedural manual for operations, maintenance, and emergencies 
developed by an operator of a distribution pipeline under 
section 192.605 of title 49, Code of Federal Regulations (or a 
successor regulation), includes written procedures for--
          (1) responding to overpressurization indications, 
        including specific actions and an order of operations 
        for immediately reducing pressure in or shutting down 
        portions of the gas distribution system, if necessary; 
        and
          (2) a detailed procedure for the management of the 
        change process, which shall--
                  (A) be applied to significant technology, 
                equipment, procedural, and organizational 
                changes to the distribution system; and
                  (B) ensure that relevant qualified personnel, 
                such as an engineer with a professional 
                engineer licensure, subject matter expert, or 
                other employee who possesses the necessary 
                knowledge, experience, and skills regarding 
                natural gas distribution systems, review and 
                certify construction plans for accuracy, 
                completeness, and correctness.
  (s) Other Pipeline Safety Practices.--
          (1) Records.--Not later than 2 years after the date 
        of enactment of this subsection, the Secretary shall 
        promulgate regulations to require an operator of a 
        distribution system--
                  (A) to identify and manage traceable, 
                reliable, and complete records, including maps 
                and other drawings, critical to ensuring proper 
                pressure controls for a gas distribution 
                system, and updating these records as needed, 
                while collecting and identifying other records 
                necessary for risk analysis on an opportunistic 
                basis; and
                  (B) to ensure that the records required under 
                subparagraph (A) are--
                          (i) accessible to all personnel 
                        responsible for performing or 
                        overseeing relevant construction or 
                        engineering work; and
                          (ii) submitted to, or made available 
                        for inspection by, the Secretary or the 
                        relevant State authority with a 
                        certification in effect under section 
                        60105.
          (2) Presence of qualified employees.--
                  (A) In general.--Not later than 180 days 
                after the date of enactment of this subsection, 
                the Secretary shall promulgate regulations to 
                require that not less than 1 agent of an 
                operator of a distribution system who is 
                qualified to perform relevant covered tasks (as 
                defined in section 192.801(b) of title 49, Code 
                of Federal Regulations (or a successor 
                regulation)) shall monitor gas pressure at the 
                district regulator station or at an alternative 
                site with equipment capable of ensuring proper 
                pressure controls and have the capability to 
                promptly shut down the flow of gas or control 
                over pressurization at a district regulator 
                station during any construction project that 
                has the potential to cause a hazardous 
                overpressurization at that station, including 
                tie-ins and abandonment of distribution lines 
                and mains, based on an evaluation, conducted by 
                the operator, of threats that could result in 
                unsafe operation.
                  (B) Exclusion.--In promulgating regulations 
                under subparagraph (A), the Secretary shall 
                ensure that those regulations do not apply to a 
                district regulating station that has a 
                monitoring system and the capability for remote 
                or automatic shutoff.
          (3) District regulator stations.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of this subsection, the 
                Secretary shall promulgate regulations to 
                require that each operator of a distribution 
                system assesses and upgrades, as appropriate, 
                each district regulator station of the operator 
                to ensure that--
                          (i) the risk of the gas pressure in 
                        the distribution system exceeding, by a 
                        common mode of failure, the maximum 
                        allowable operating pressure (as 
                        described in section 192.623 of title 
                        49, Code of Federal Regulations (or a 
                        successor regulation)) allowed under 
                        Federal law (including regulations) is 
                        minimized;
                          (ii) the gas pressure of a low-
                        pressure distribution system is 
                        monitored, particularly at or near the 
                        location of critical pressure-control 
                        equipment;
                          (iii) the regulator station has 
                        secondary or backup pressure-relieving 
                        or overpressure-protection safety 
                        technology, such as a relief valve or 
                        automatic shutoff valve, or other 
                        pressure-limiting devices appropriate 
                        for the configuration and siting of the 
                        station and, in the case of a regulator 
                        station that employs the primary and 
                        monitor regulator design, the operator 
                        shall eliminate the common mode of 
                        failure or provide backup protection 
                        capable of either shutting the flow of 
                        gas, relieving gas to the atmosphere to 
                        fully protect the distribution system 
                        from overpressurization events, or 
                        there must be technology in place to 
                        eliminate a common mode of failure; and
                          (iv) if the Secretary determines that 
                        it is not operationally possible for an 
                        operator to implement the requirements 
                        under clause (iii), the Secretary shall 
                        require such operator to identify 
                        actions in their plan that minimize the 
                        risk of an overpressurization event.

Sec. 60103. Standards for liquefied natural gas pipeline facilities

  (a) Location Standards.--[The Secretary of Transportation]
          (1) In general.--The Secretary of Transportation 
        shall prescribe minimum safety standards for deciding 
        on the location of a new liquefied natural gas pipeline 
        facility. [In prescribing a standard]
          (2) Considerations.--In prescribing a standard under 
        paragraph (1), the Secretary shall consider the--
                  [(1)](A) kind and use of the facility;
                  [(2)](B) existing and projected population 
                and demographic characteristics of the 
                location;
                  [(3)](C) existing and proposed land use near 
                the location;
                  [(4)](D) natural physical aspects of the 
                location;
                  [(5)](E) medical, law enforcement, and fire 
                prevention capabilities near the location that 
                can cope with a risk caused by the facility;
                  [(6)](F) need to encourage remote siting; and
                  [(7)](G) national security.
          (3) Use of location standards.--If a Federal or State 
        authority with jurisdiction over liquefied natural gas 
        pipeline facility permits or approvals is using the 
        location standards prescribed under paragraph (1) for 
        purposes of making a decision with respect to the 
        location of a new liquefied natural gas pipeline 
        facility and submits to the Secretary of Transportation 
        a request to provide a determination of whether the new 
        liquefied natural gas pipeline facility would meet the 
        location standards, the Secretary may provide such a 
        determination to the requesting Federal or State 
        authority.
          (4) Effect.--Nothing in this subsection or subsection 
        (b)--
                  (A) affects--
                          (i) section 3 of the Natural Gas Act 
                        (15 U.S.C. 717b);
                          (ii) the authority of the Federal 
                        Energy Regulatory Commission to carry 
                        out that section; or
                          (iii) any other similar authority of 
                        any other Federal or State agency; or
                  (B) requires the Secretary of Transportation 
                to formally approve any project proposal or 
                otherwise perform any siting functions.
  (b) * * *

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)] 
        subsections (a) and (c) of section 60108 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) * * *
  (e) Monitoring.--[The Secretary]
          (1) In general--The Secretary may monitor a safety 
        program established under this section to ensure that 
        the program complies with the certification. [A State 
        authority]
          (2) Cooperation.--A State authority with a 
        certification in effect under this section shall 
        cooperate with the Secretary under this subsection.
          (3) Audit program.--Not later than 2 years after the 
        date of enactment of this paragraph, the Secretary 
        shall--
                  (A) revise the State audit protocols and 
                procedures to update the annual State Program 
                Evaluations carried out under this subsection 
                and section 60106(d) to ensure that a State 
                authority with a certification in effect under 
                this section has the capability to sufficiently 
                review and evaluate the adequacy of the plans 
                and manuals described in section 
                60109(e)(7)(C)(i);
                  (B) update the State Inspection Calculation 
                Tool to take into account factors including--
                          (i) the number of miles of natural 
                        gas and hazardous liquid pipelines in 
                        the State, including the number of 
                        miles of cast iron and bare steel 
                        pipelines;
                          (ii) the number of services in the 
                        State;
                          (iii) the age of the gas distribution 
                        system in the State; and
                          (iv) environmental factors that could 
                        impact the integrity of the pipeline, 
                        including relevant geological issues; 
                        and
                  (C) promulgate regulations to require that a 
                State authority with a certification in effect 
                under this section has a sufficient number of 
                qualified inspectors to ensure safe operations, 
                as determined by the State Inspection 
                Calculation Tool and other factors determined 
                to be appropriate by the Secretary.
  (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.

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)] subsections 
        (a) and (c) of section 60108 of this title.
  (b) * * *

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

  (a) * * *
  (e) Distribution Integrity Management Programs.--
          (1) Minimum standards.--Not later than December 31, 
        2007, the Secretary shall prescribe minimum standards 
        for integrity management programs for distribution 
        pipelines.
          (2) Additional authority of secretary.--In carrying 
        out this subsection, the Secretary may require 
        operators of distribution pipelines to continually 
        identify and assess risks on their distribution lines, 
        to remediate conditions that present a potential threat 
        to line integrity, and to monitor program 
        effectiveness.
          (3) Excess flow valves.--
                  (A) In general.--The minimum standards shall 
                include a requirement for an operator of a 
                natural gas distribution system to install an 
                excess flow valve on each single family 
                residence service line connected to such system 
                if--
                          (i) the service line is installed or 
                        entirely replaced after June 1, 2008;
                          (ii) the service line operates 
                        continuously throughout the year at a 
                        pressure not less than 10 pounds per 
                        square inch gauge;
                          (iii) the service line is not 
                        connected to a gas stream with respect 
                        to which the operator has had prior 
                        experience with contaminants the 
                        presence of which could interfere with 
                        the operation of an excess flow valve;
                          (iv) the installation of an excess 
                        flow valve on the service line is not 
                        likely to cause loss of service to the 
                        residence or interfere with necessary 
                        operation or maintenance activities, 
                        such as purging liquids from the 
                        service line; and
                          (v) an excess flow valve meeting 
                        performance standards developed under 
                        section 60110(e) of title 49, United 
                        States Code, is commercially available 
                        to the operator, as determined by the 
                        Secretary.
                  (B) Distribution branch services, multifamily 
                facilities, and small commercial facilities.--
                Not later than 2 years after the date of 
                enactment of the Pipeline Safety, Regulatory 
                Certainty, and Job Creation Act of 2011, and 
                after issuing a final report on the evaluation 
                of the National Transportation Safety Board's 
                recommendation on excess flow valves in 
                applications other than service lines serving 
                one single family residence, the Secretary, if 
                appropriate, shall by regulation require the 
                use of excess flow valves, or equivalent 
                technology, where economically, technically, 
                and operationally feasible on new or entirely 
                replaced distribution branch services, 
                multifamily facilities, and small commercial 
                facilities.
                  (C) Reports.--Operators of natural gas 
                distribution systems shall report annually to 
                the Secretary on the number of excess flow 
                valves installed on their systems under 
                subparagraph (A).
          (4) Applicability.--The Secretary shall determine 
        which distribution pipelines will be subject to the 
        minimum standards.
          (5) Development and implementation.--Each operator of 
        a distribution pipeline that the Secretary determines 
        is subject to the minimum standards prescribed by the 
        Secretary under this subsection shall develop and 
        implement an integrity management program in accordance 
        with those standards.
          (6) Savings clause.--Subject to section 60104(c), a 
        State authority having a current certification under 
        section 60105 may adopt or continue in force additional 
        integrity management requirements, including additional 
        requirements for installation of excess flow valves, 
        for gas distribution pipelines within the boundaries of 
        that State.
          (7) Distribution integrity management plans.--
                  (A) Evaluation of risk.--Not later than 2 
                years after the date of enactment of this 
                paragraph, the Secretary shall promulgate 
                regulations to ensure that each distribution 
                integrity management plan developed by an 
                operator of a distribution system includes an 
                evaluation of--
                          (i) the risks resulting from the 
                        presence of cast iron pipes and mains 
                        in the distribution system; and
                          (ii) the risks that could lead to or 
                        result from the operation of a low-
                        pressure distribution system at a 
                        pressure that makes the operation of 
                        any connected and properly adjusted 
                        low-pressure gas burning equipment 
                        unsafe (as described in section 192.623 
                        of title 49, Code of Federal 
                        Regulations (or a successor 
                        regulation)).
                  (B) Consideration.--In the evaluations 
                required in a plan under subparagraph (A), the 
                regulations promulgated by the Secretary shall 
                ensure that the distribution integrity 
                management plan evaluates for future potential 
                threats in a manner that considers factors 
                other than past observed abnormal operations 
                (within the meaning of section 192.605 of title 
                49, Code of Federal Regulations (or a successor 
                regulation)), in ranking risks and identifying 
                measures to mitigate those risks under that 
                subparagraph, so that operators avoid using a 
                risk rating of zero for low probability events 
                unless otherwise supported by engineering 
                analysis or operational knowledge.
                  (C) Deadlines.--
                          (i) In general.--Not later than 2 
                        years after the date of enactment of 
                        this paragraph, each operator of a 
                        distribution system shall make 
                        available to the Secretary or the 
                        relevant State authority with a 
                        certification in effect under section 
                        60105, as applicable, a copy of--
                                  (I) the distribution 
                                integrity management plan of 
                                the operator;
                                  (II) the emergency response 
                                plan under section 192.615 of 
                                title 49, Code of Federal 
                                Regulations (or a successor 
                                regulation); and
                                  (III) the procedural manual 
                                for operations, maintenance, 
                                and emergencies under section 
                                192.605 of title 49, Code of 
                                Federal Regulations (or a 
                                successor regulation).
                          (ii) Updates.--Each operator of a 
                        distribution system shall make 
                        available to the Secretary or make 
                        available for inspection to the 
                        relevant State authority with a 
                        certification in effect under section 
                        60105, if applicable, an updated plan 
                        or manual described in clause (i) by 
                        not later than 60 days after the date 
                        of a significant update, as determined 
                        by the Secretary.
                          (iii) Applicability of foia.--Nothing 
                        in this subsection shall be construed 
                        to authorize the disclosure of any 
                        information that is exempt from 
                        disclosure under section 552(b) of 
                        title 5, United States Code.
                  (D) Review of plans and documents.--
                          (i) Timing.--
                                  (I) In general.--Not later 
                                than 2 years after the date of 
                                promulgation of the regulations 
                                under subparagraph (A), and not 
                                less frequently than once every 
                                5 years thereafter, the 
                                Secretary or relevant State 
                                authority with a certification 
                                in effect under section 60105 
                                shall review the distribution 
                                integrity management plan, the 
                                emergency response plan, and 
                                the procedural manual for 
                                operations, maintenance, and 
                                emergencies of each operator of 
                                a distribution system and 
                                record the results of that 
                                review for use in the next 
                                review of the program of that 
                                operator.
                                  (II) Grace period.--For the 
                                third, fourth, and fifth years 
                                after the date of promulgation 
                                of the regulations under 
                                subparagraph (A), the 
                                Secretary--
                                          (aa) shall not use 
                                        subclause (I) as 
                                        justification to reduce 
                                        funding, decertify, or 
                                        penalize in any way 
                                        under section 60105, 
                                        60106, or 60107 a State 
                                        authority that has in 
                                        effect a certification 
                                        under section 60105 or 
                                        an agreement under 
                                        section 60106; and
                                          (bb) shall--
                                                  (AA) submit 
                                                to the 
                                                Committee on 
                                                Commerce, 
                                                Science, and 
                                                Transportation 
                                                of the Senate 
                                                and the 
                                                Committees on 
                                                Transportation 
                                                and 
                                                Infrastructure 
                                                and Energy and 
                                                Commerce of the 
                                                House of 
                                                Representatives 
                                                a list of 
                                                States found to 
                                                be noncompliant 
                                                with subclause 
                                                (I) during the 
                                                annual program 
                                                evaluation; and
                                                  (BB) provide 
                                                a written 
                                                notice to each 
                                                State authority 
                                                described in 
                                                item (aa) that 
                                                is not in 
                                                compliance with 
                                                the 
                                                requirements of 
                                                subclause (I).
                          (ii) Review.--Each plan or procedural 
                        manual made available under 
                        subparagraph (C)(i) shall be 
                        reexamined--
                                  (I) on significant change to 
                                the plans or procedural manual, 
                                as applicable;
                                  (II) on significant change to 
                                the gas distribution system of 
                                the operator, as applicable; 
                                and
                                  (III) not less frequently 
                                than once every 5 years.
                          (iii) Context of review.--The 
                        Secretary may conduct a review under 
                        clause (i) or (ii) as an element of the 
                        inspection of the operator carried out 
                        by the Secretary.
                          (iv) Inadequate programs.--If the 
                        Secretary determines that the documents 
                        reviewed under clause (i) or (ii) do 
                        not comply with the requirements of 
                        this chapter (including regulations to 
                        implement this chapter), have not been 
                        adequately implemented, or are 
                        inadequate for the safe operation of a 
                        pipeline facility, the Secretary may 
                        conduct proceedings under this chapter.
  (f) * * *

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) Enforcement and Regulatory Procedures.--
          (1) Request for formal hearing.--On request of a 
        respondent in an enforcement or regulatory proceeding 
        under this chapter, a hearing shall be held in 
        accordance with section 554 of title 5.
          (2) Administrative law judge.--A hearing under 
        paragraph (1) shall be conducted by an administrative 
        law judge appointed under section 3105 of title 5.
          (3) Open to the public.--
                  (A) Hearings.--A hearing under paragraph (1) 
                shall be--
                          (i) noticed to the public--
                                  (I) on the website of the 
                                Pipeline and Hazardous 
                                Materials Safety 
                                Administration; and
                                  (II) in the Federal Register; 
                                and
                          (ii) open to the public.
                  (B) Agreements, orders, and judgments.--A 
                consent agreement, consent order, order, or 
                judgment resulting from a hearing under 
                paragraph (1) shall be made available to the 
                public on the website of the Pipeline and 
                Hazardous Materials Safety Administration.
          (4) Procedures.--In implementing enforcement and 
        regulatory procedures under this chapter, the Secretary 
        shall--
                  (A) allow the use of a consent agreement and 
                consent order to resolve any matter of fact or 
                law asserted;
                  (B) allow the respondent and the agency to 
                convene 1 or more meetings--
                          (i) for settlement or simplification 
                        of the issues; or
                          (ii) to aid in the disposition of 
                        issues;
                  (C) require that the case file in an 
                enforcement proceeding include all agency 
                records pertinent to the matters of fact and 
                law asserted;
                  (D) require that a recommended decision be 
                made available to the respondent when issued;
                  (E) allow a respondent to reply to any post-
                hearing submission;
                  (F) allow a respondent to request--
                          (i) that a hearing be held, and a 
                        recommended decision and order issued, 
                        on an expedited basis; or
                          (ii) that a hearing not commence for 
                        a period of not less than 90 days;
                  (G) require that the agency have the burden 
                of proof, presentation, and persuasion in any 
                enforcement matter;
                  (H) require that any recommended decision and 
                order contain findings of fact and conclusions 
                of law;
                  (I) require the Associate Administrator of 
                the Office of Pipeline Safety to file a post-
                hearing recommendation not later than 30 days 
                after the deadline for any post-hearing 
                submission of a respondent;
                  (J) require an order on a petition for 
                reconsideration to be issued not later than 120 
                days after the date on which the petition is 
                filed; and
                  (K) allow an operator to request that an 
                issue of controversy or uncertainty be 
                addressed through a declaratory order in 
                accordance with section 554(e) of title 5, 
                which order shall be issued not later than 120 
                days after the date on which a request is made.
          (5) Savings clause.--Nothing in this subsection 
        alters the procedures applicable to an emergency order 
        under subsection (p).
  [(b)](c) 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)](d) 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)](e) 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)](f) 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)](g) 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)](h) 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)](i) 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)](j) 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)](k) Withholding Information From Congress.--This section 
does not authorize information to be withheld from a committee 
of Congress authorized to have the information.
  [(k)](l) 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)](m) 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)](n) 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)](o) 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)](p) 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.--
                  (A) In general.--Before issuing an emergency 
                order under paragraph (1), the Secretary shall 
                consider, as appropriate, the following 
                factors:
                          (i) The impact of the emergency order 
                        on public health and safety.
                          (ii) The impact, if any, of the 
                        emergency order on the national or 
                        regional economy or national security.
                          (iii) The impact of the emergency 
                        order on the ability of owners and 
                        operators of pipeline facilities to 
                        maintain reliability and continuity of 
                        service to customers.
                  (B) Consultation.--In considering the factors 
                under subparagraph (A), the Secretary shall 
                consult, as the Secretary determines 
                appropriate, with appropriate Federal agencies, 
                State agencies, and other entities 
                knowledgeable in pipeline safety or operations.
          (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 paragraph (2).
          (4) Opportunity for review.--Upon receipt of a 
        petition for review from an entity subject to, and 
        aggrieved 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.--
                  (A) In general.--After completion of 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 aggrieved 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.
                  (B) Limitation.--The filing of a petition for 
                review under subparagraph (A) shall not stay or 
                modify the force and effect of the agency's 
                final decision under paragraph (4), or the 
                written determination under paragraph (5), 
                unless stayed or modified by the Secretary.
          (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. 60118. Compliance and waivers

  (a) General Requirements.--A person owning or operating a 
pipeline facility shall--
          (1) comply with applicable safety standards 
        prescribed under this chapter, except as provided in 
        this section or in section 60126;
          (2) prepare and carry out a plan for inspection and 
        maintenance required under [section 60108(a) and (b)] 
        subsections (a) and (c) of section 60108 of this title;
          (3) allow access to or copying of records, make 
        reports and provide information, and allow entry or 
        inspection required under section 60117(a)-(d) of this 
        title; and
          (4) conduct a risk analysis, and adopt and implement 
        an integrity management program, for pipeline 
        facilities as required under section 60109(c).
  (b) * * *

Sec. 60122. Civil penalties

  (a) General Penalties.--(1) A person that the Secretary of 
Transportation decides, after written notice and an opportunity 
for a hearing, has violated section 60114(b), 60114(d), or 
60118(a) of this title or a regulation prescribed or order 
issued under this chapter is liable to the United States 
Government for a civil penalty of not more than $200,000 for 
each violation. A separate violation occurs for each day the 
violation continues. The maximum civil penalty under this 
paragraph for a related series of violations is $2,000,000.
  (2) A person violating a standard or order under section 
60103 or 60111 of this title is liable to the Government for a 
civil penalty of not more than $50,000 for each violation. A 
penalty under this paragraph may be imposed in addition to 
penalties imposed under paragraph (1) of this subsection.
  (3) A person violating section 60129, or an order issued 
thereunder, is liable to the Government for a civil penalty of 
not more than $1,000 for each violation. The penalties provided 
by paragraph (1) do not apply to a violation of section 60129 
or an order issued thereunder.
  (b) Penalty Considerations.--In determining the amount of a 
civil penalty under this section--
          (1) the Secretary shall consider--
                  (A) the nature, circumstances, and gravity of 
                the violation, including adverse impact on the 
                environment;
                  (B) with respect to the violator, the degree 
                of culpability, any history of prior 
                violations, and any effect on ability to 
                continue doing business; [and]
                  (C) good faith in attempting to comply; and
                  (D) self-disclosure and correction of 
                violations, or actions to correct a violation, 
                prior to discovery by the Pipeline and 
                Hazardous Materials Safety Administration; and
          (2) the Secretary may consider--
                  (A) the economic benefit gained from the 
                violation without any reduction because of 
                subsequent damages; and
                  (B) other matters that justice requires.
  (c) * * *

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 from fees collected under section 
        60301--
                  [(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 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.
          [(3) Underground natural gas storage facility safety 
        account.--To carry out section 60141, there is 
        authorized to be appropriated to the Department of 
        Transportation from fees collected under section 60302 
        $8,000,000 for each of fiscal years 2017 through 2019.]
  (a) Gas and Hazardous Liquid.--
          (1) In general.--From fees collected under section 
        60301, there are authorized to be appropriated to the 
        Secretary to carry out section 12 of the Pipeline 
        Safety Improvement Act of 2002 (49 U.S.C. 60101 note; 
        Public Law 107-355) and the provisions of this chapter 
        relating to gas and hazardous liquid--
                  (A) $147,000,000 for fiscal year 2020, of 
                which--
                          (i) $9,000,000 shall be used to carry 
                        out section 12 of the Pipeline Safety 
                        Improvement Act of 2002 (49 U.S.C. 
                        60101 note; Public Law 107-355); and
                          (ii) $60,000,000 shall be used for 
                        making grants;
                  (B) $151,000,000 for fiscal year 2021, of 
                which--
                          (i) $9,000,000 shall be used to carry 
                        out section 12 of the Pipeline Safety 
                        Improvement Act of 2002 (49 U.S.C. 
                        60101 note; Public Law 107-355); and
                          (ii) $63,000,000 shall be used for 
                        making grants;
                  (C) $155,000,000 for fiscal year 2022, of 
                which--
                          (i) $9,000,000 shall be used to carry 
                        out section 12 of the Pipeline Safety 
                        Improvement Act of 2002 (49 U.S.C. 
                        60101 note; Public Law 107-355); and
                          (ii) $66,000,000 shall be used for 
                        making grants; and
                  (D) $159,000,000 for fiscal year 2023, of 
                which--
                          (i) $9,000,000 shall be used to carry 
                        out section 12 of the Pipeline Safety 
                        Improvement Act of 2002 (49 U.S.C. 
                        60101 note; Public Law 107-355); and
                          (ii) $69,000,000 shall be used for 
                        making grants.
          (2) Trust fund amounts.--In addition to the amounts 
        authorized to be appropriated under paragraph (1), 
        there are authorized to be appropriated from the Oil 
        Spill Liability Trust Fund established by section 
        9509(a) of the Internal Revenue Code of 1986 to carry 
        out section 12 of the Pipeline Safety Improvement Act 
        of 2002 (49 U.S.C. 60101 note; Public Law 107-355) and 
        the provisions of this chapter relating to hazardous 
        liquid--
                  (A) $25,000,000 for fiscal year 2020, of 
                which--
                          (i) $3,000,000 shall be used to carry 
                        out section 12 of the Pipeline Safety 
                        Improvement Act of 2002 (49 U.S.C. 
                        60101 note; Public Law 107-355); and
                          (ii) $10,000,000 shall be used for 
                        making grants;
                  (B) $26,000,000 for fiscal year 2021, of 
                which--
                          (i) $3,000,000 shall be used to carry 
                        out section 12 of the Pipeline Safety 
                        Improvement Act of 2002 (49 U.S.C. 
                        60101 note; Public Law 107-355); and
                          (ii) $11,000,000 shall be used for 
                        making grants;
                  (C) $27,000,000 for fiscal year 2022, of 
                which--
                          (i) $3,000,000 shall be used to carry 
                        out section 12 of the Pipeline Safety 
                        Improvement Act of 2002 (49 U.S.C. 
                        60101 note; Public Law 107-355); and
                          (ii) $12,000,000 shall be used for 
                        making grants; and
                  (D) $28,000,000 for fiscal year 2023, of 
                which--
                          (i) $3,000,000 shall be used to carry 
                        out section 12 of the Pipeline Safety 
                        Improvement Act of 2002 (49 U.S.C. 
                        60101 note; Public Law 107-355); and
                          (ii) $13,000,000 shall be used for 
                        making grants.
          (3) Underground natural gas storage facility safety 
        account.--From fees collected under section 60302, 
        there is authorized to be appropriated to the Secretary 
        to carry out section 60141 $8,000,000 for each of 
        fiscal years 2020 through 2023.
  (b) * * *

Sec. 60130. Pipeline safety information grants to communities

  (a) * * *
  [(c) Authorization of Appropriations.--Of the amounts made 
available under section 2(b) of the PIPES Act of 2016, the 
Secretary shall expend $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.]
  (c) Funding.--
          (1) In general.--Out of amounts made available under 
        section 2(b) of the PIPES Act of 2016, the Secretary 
        shall use $1,500,000 for each of fiscal years 2020 
        through 2023 to carry out this section.
          (2) Limitation.--Any amounts used to carry out this 
        section shall not be derived from user fees collected 
        under section 60301.

Sec. 60131. Verification of pipeline qualification programs

  (a) * * *

Sec. 60134. State damage prevention programs

  (a) * * *
  (i) Authorization of Appropriations.--There is authorized to 
be appropriated to the Secretary to provide grants under this 
section $1,500,000 for each of [fiscal years 2012 through 2015] 
fiscal years 2020 through 2023. Such funds shall remain 
available until expended.

Sec. 60135. Enforcement transparency

  (a) * * *

Sec. 60142. Pipeline safety enhancement programs

  (a) In General.--The Secretary may establish and carry out 
limited safety-enhancing testing programs during the period of 
fiscal years 2020 through 2026 to evaluate innovative 
technologies and operational practices testing the safe 
operation of--
          (1) a natural gas pipeline facility; or
          (2) a hazardous liquid pipeline facility.
  (b) Limitations.--
          (1) In general.--Such testing programs may not 
        exceed--
                  (A) 5 percent of the total miles of hazardous 
                liquid pipelines in the United States; and
                  (B) 5 percent of the total miles of natural 
                gas pipelines in the United States.
          (2) High population areas.--Any program established 
        under subsection (a) shall not be located in a high 
        population area (as defined in section 195.450 of title 
        49, Code of Federal Regulations).
  (c) Duration.--The term of a testing program established 
under subsection (a) shall be not more than a period of 4 years 
beginning on the date of approval of the program.
  (d) Safety Standards.--
          (1) In general.--The Secretary shall require, as a 
        condition of approval of a testing program under 
        subsection (a), that the safety measures in the testing 
        program are designed to achieve a level of safety that 
        is greater than, or equivalent to, the level of safety 
        required by this chapter.
          (2) Determination.--
                  (A) In general.--The Secretary may issue an 
                order under subparagraph (A) of section 
                60118(c)(1) to accomplish the purpose of a 
                testing program for a term not to exceed the 
                time period described in subsection (c) if the 
                condition described in paragraph (1) is met, as 
                determined by the Secretary.
                  (B) Limitation.--An order under subparagraph 
                (A) shall pertain only to those regulations 
                that would otherwise prevent the use of the 
                safety technology to be tested under the 
                testing program.
  (e) Considerations.--In establishing a testing program under 
subsection (a), the Secretary shall consider--
          (1) whether the owners or operators participating in 
        the program have a safety management system in place; 
        and
          (2) whether the proposed safety technology has been 
        tested through a research and development program 
        carried out by--
                  (A) the Secretary;
                  (B) collaborative research development 
                organizations; or
                  (C) other institutions.
  (f) Data and Findings.--As a participant in a testing program 
established under subsection (a), an operator shall submit to 
the Secretary detailed findings and a summary of data collected 
as a result of participation in the testing program.
  (g) Authority to Revoke Participation.--The Secretary shall 
immediately revoke participation in a testing program under 
subsection (a) if--
          (1) the participant fails to comply with the terms 
        and conditions of the testing program; or
          (2) in the determination of the Secretary, continued 
        participation in the testing program by the participant 
        would be unsafe or would not be consistent with the 
        goals and objectives of this chapter.
  (h) Authority to Terminate Program.--The Secretary shall 
immediately terminate a testing program under subsection (a) if 
continuation of the testing program would not be consistent 
with the goals and objectives of this chapter.
  (i) State Rights.--
          (1) Exemption.--Except as provided in paragraph (2), 
        if a State submits to the Secretary notice that the 
        State requests an exemption from any testing program 
        considered for establishment under this section, the 
        State shall be exempt.
          (2) Limitations.--
                  (A) In general.--The Secretary shall not 
                grant a requested exemption under paragraph (1) 
                after a testing program is established.
                  (B) Late notice.--The Secretary shall not 
                grant a requested exemption under paragraph (1) 
                if the notice submitted under that paragraph is 
                submitted to the Secretary more than 10 days 
                after the date on which the Secretary issues an 
                order providing an effective date for the 
                testing program.
          (3) Effect.--If a State has not submitted a notice 
        requesting an exemption under paragraph (1), the State 
        shall not enforce any law (including regulations) that 
        is inconsistent with a testing program in effect in the 
        State under this section.
  (j) Program Review Process and Public Notice.--
          (1) In general.--The Secretary shall publish in the 
        Federal Register and send directly to each relevant 
        State authority with a certification in effect under 
        section 60105 a notice of each testing program under 
        subsection (a), including the order to be considered, 
        and provide an opportunity for public comment for not 
        less than 90 days.
          (2) Response from secretary.--Not later than the date 
        on which the Secretary issues an order providing an 
        effective date of a testing program noticed under 
        paragraph (1), the Secretary shall respond to each 
        comment submitted under that paragraph.
  (k) Report to Congress.--At the conclusion of each testing 
program, the Secretary shall make publicly available on the 
website of the Department of Transportation a report 
containing--
          (1) the findings and conclusions of the Secretary 
        with respect to the testing program; and
          (2) any recommendations of the Secretary with respect 
        to the testing program, including any recommendations 
        for amendments to laws (including regulations) and the 
        establishment of standards, that--
                  (A) would enhance the safe operation of 
                interstate gas or hazardous liquid pipeline 
                facilities; and
                  (B) are technically, operationally, and 
                economically feasible.
  (l) Standards.--If a report under subsection (k) indicates 
that it is practicable to establish technically, operationally, 
and economically feasible standards for the use of a safety-
enhancing technology and any corresponding operational 
practices tested by the testing program described in the 
report, the Secretary, as soon as practicable after submission 
of the report, may promulgate regulations consistent with 
chapter 5 of title 5 (commonly known as the ``Administrative 
Procedures Act'') that--
          (1) allow operators of interstate gas or hazardous 
        liquid pipeline facilities to use the relevant 
        technology or practice to the extent practicable; and
          (2) establish technically, operationally, and 
        economically feasible standards for the capability and 
        deployment of the technology or practice.

Sec. 60143. Idled pipelines

  (a) Definition of Idled.--In this section, the term 
``idled'', with respect to a pipeline, means that the 
pipeline--
          (1)(A) has ceased normal operations; and
          (B) will not resume service for a period of not less 
        than 180 days;
          (2) has been isolated from all sources of hazardous 
        liquid, natural gas, or other gas; and
          (3)(A) has been purged of combustibles and hazardous 
        materials and maintains a blanket of inert, 
        nonflammable gas at low pressure; or
          (B) has not been purged as described in subparagraph 
        (A), but the volume of gas is so small that there is no 
        potential hazard.
  (b) Rulemaking.--
          (1) In general.--Not later than 2 years after the 
        date of enactment of the PIPES Act of 2019, the 
        Secretary shall promulgate regulations prescribing the 
        applicability of the pipeline safety requirements to 
        idled natural or other gas transmission and hazardous 
        liquid pipelines.
          (2) Requirements.--
                  (A) In general.--The applicability of the 
                regulations under paragraph (1) shall be based 
                on the risk that idled natural or other gas 
                transmission and hazardous liquid pipelines 
                pose to the public, property, and the 
                environment, and shall include requirements to 
                resume operation.
                  (B) Inspection.--The Secretary or an 
                appropriate State agency shall inspect each 
                idled pipeline and verify that the pipeline has 
                been purged of combustibles and hazardous 
                materials, if required under subsection (a).
                  (C) Requirements for reinspection.--The 
                Secretary shall determine the requirements for 
                periodic reinspection of idled natural or other 
                gas transmission and hazardous liquid 
                pipelines.

           *       *       *       *       *       *       *


                        TITLE 49--TRANSPORTATION


                        SUBTITLE VIII--PIPELINES

                         CHAPTER 603--USER FEES

Sec.
60301. User fees.
60302. User fees for underground natural gas storage facilities.
60303. Fees for compliance reviews of liquefied natural gas facilities.

Sec. 60301. User fees

  (a) * * *

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 subject 
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 subject to section 
                60141, [the amount of the fee] may be used only 
                for an activity related to underground natural 
                gas storage facility safety[.]; and
                  (C) may only be used to the extent provided 
                in advance in an appropriations Act.
          [(3) Limitation.--No fee may be collected under this 
        section, except to the extent that the expenditure of 
        such fee to pay the costs of an activity related to 
        underground natural gas storage facility safety for 
        which such fee is imposed is provided in advance in an 
        appropriations Act.]
  (d) Limitation.--The amount of a fee imposed under subsection 
(a) shall be sufficient to pay the costs of activities referred 
to in subsection (c), subject to the limitation that the total 
amount of fees collected for a fiscal year under subsection (b) 
may not be more than 105 percent of the total amount of the 
appropriations made for the fiscal year for activities to be 
financed by the fees.

Sec. 60303. Fees for compliance reviews of liquefied natural gas 
                    facilities

  (a) Imposition of Fee.--
          (1) In general.--The Secretary of Transportation 
        (referred to in this section as the ``Secretary'') 
        shall impose on a person who files with the Federal 
        Energy Regulatory Commission an application for a 
        liquefied natural gas facility that has design and 
        construction costs totaling not less than 
        $2,500,000,000 a fee for the necessary expenses of a 
        review, if any, that the Secretary conducts, in 
        connection with that application, to determine 
        compliance with subpart B of part 193 of title 49, Code 
        of Federal Regulations (or successor regulations).
          (2) Relation to other review.--The Secretary may not 
        impose fees under paragraph (1) and section 60117(o) or 
        60301(b) for the same compliance review described in 
        paragraph (1).
  (b) Means of Collection.--
          (1) In general.--The Secretary shall prescribe 
        procedures to collect fees under this section.
          (2) Use of government entities.--The Secretary may--
                  (A) use a department, agency, or 
                instrumentality of the Federal Government or of 
                a State or local government to collect fees 
                under this section; and
                  (B) reimburse that department, agency, or 
                instrumentality a reasonable amount for the 
                services provided.
  (c) Account.--There is established an account, to be known as 
the ``Liquefied Natural Gas Siting Account'', in the Pipeline 
Safety Fund established in the Treasury of the United States 
under section 60301.

           *       *       *       *       *       *       *


                PIPELINE SAFETY IMPROVEMENT ACT OF 2002


               [49 U.S.C. 60101 note; Public Law 107-355]

SEC. 12. PIPELINE INTEGRITY, SAFETY, AND RELIABILITY RESEARCH AND 
                    DEVELOPMENT.

  (a) * * *
  (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 [2016 through 2019] 2020 
through 2023.

           *       *       *       *       *       *       *


                           PIPES ACT OF 2016


                  [Public Law 114-183; 130 Stat. 515]

SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

  (a) * * *
  (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.]
          (1) $24,000,000 for fiscal year 2020.
          (2) $25,000,000 for fiscal year 2021.
          (3) $26,000,000 for fiscal year 2022.
          (4) $27,000,000 for fiscal year 2023.

           *       *       *       *       *       *       *


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