[United States Statutes at Large, Volume 120, 109th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

120 STAT. 3486

Public Law 109-468
109th Congress

An Act


 
To amend title 49, United States Code, to provide for enhanced safety
and environmental protection in pipeline transportation, to provide for
enhanced reliability in the transportation of the Nation's energy
products by pipeline, and for other purposes.  NOTE: Dec. 29,
2006 -  [H.R. 5782]

Be it enacted by the Senate and House of Representatives of the
United States of America in
Congress  NOTE: Pipeline Inspection, Protection, Enforcement, and
Safety Act of 2006. 49 USC 60101 note.  assembled,

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

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

Sec. 1. Short title; amendment of title 49, United States Code; table of
contents.
Sec. 2. Pipeline safety and damage prevention.
Sec. 3. Public education and awareness.
Sec. 4. Low-stress pipelines.
Sec. 5. Technical assistance grants.
Sec. 6. Enforcement transparency.
Sec. 7. Direct line sales.
Sec. 8. Petroleum transportation capacity and regulatory adequacy study.
Sec. 9. Distribution integrity management program rulemaking deadline.
Sec. 10. Emergency waivers.
Sec. 11. Restoration of operations.
Sec. 12. Pipeline control room management.
Sec. 13. Safety orders.
Sec. 14. Integrity program enforcement.
Sec. 15. Incident reporting.
Sec. 16. Senior executive signature of integrity management program
performance reports.
Sec. 17. Cost recovery for design reviews.
Sec. 18. Authorization of appropriations.
Sec. 19. Standards to implement NTSB recommendations.
Sec. 20. Accident reporting form.
Sec. 21. Leak detection technology study.
Sec. 22. Corrosion control regulations.
Sec. 23. Inspector General report.
Sec. 24. Technical assistance program.
Sec. 25. Natural gas pipelines.
Sec. 26. Corrosion technology.

SEC. 2. PIPELINE SAFETY AND DAMAGE PREVENTION.

(a) One Call Civil Enforcement.--
(1) Prohibitions.--Section 60114 is amended by adding at the
end the following:

[[Page 3487]]
120 STAT. 3487

``(d) Prohibition Applicable to Excavators.--A person who engages in
demolition, excavation, tunneling, or construction--
``(1) may not engage in a demolition, excavation, tunneling,
or construction activity in a State that has adopted a one-call
notification system without first using that system to establish
the location of underground facilities in the demolition,
excavation, tunneling, or construction area;
``(2) may not engage in such demolition, excavation,
tunneling, or construction activity in disregard of location
information or markings established by a pipeline facility
operator pursuant to subsection (b); and
``(3) and who causes damage to a pipeline facility that may
endanger life or cause serious bodily harm or damage to
property--
``(A) may not fail to promptly report the damage to
the owner or operator of the facility; and
``(B) if the damage results in the escape of any
flammable, toxic, or corrosive gas or liquid, may not
fail to promptly report to other appropriate authorities
by calling the 911 emergency telephone number.

``(e) Prohibition Applicable to Underground Pipeline Facility Owners
and Operators.--Any owner or operator of a pipeline facility who fails
to respond to a location request in order to prevent damage to the
pipeline facility or who fails to take reasonable steps, in response to
such a request, to ensure accurate marking of the location of the
pipeline facility in order to prevent damage to the pipeline facility
shall be subject to a civil action under section 60120 or assessment of
a civil penalty under section 60122.
``(f) Limitation.--The Secretary may not conduct an enforcement
proceeding under subsection (d) for a violation within the boundaries of
a State that has the authority to impose penalties described in section
60134(b)(7) against persons who violate that State's damage prevention
laws, unless the Secretary has determined that the State's enforcement
is inadequate to protect safety, consistent with this chapter, and until
the Secretary issues, through a rulemaking proceeding, the procedures
for determining inadequate State enforcement of penalties.''.
(2) Civil penalty.--Section 60122(a)(1) is amended by
striking ``60114(b)'' and inserting ``60114(b), 60114(d),''.

(b) State Damage Prevention Programs.--
(1) Contents of certifications.--Section 60105(b)(4) is
amended to read as follows:
``(4) is encouraging and promoting the establishment of a
program designed to prevent damage by demolition, excavation,
tunneling, or construction activity to the pipeline facilities
to which the certification applies that subjects persons who
violate the applicable requirements of that program to civil
penalties and other enforcement actions that are substantially
the same as are provided under this chapter, and addresses the
elements in section 60134(b);''.
(2) In general.--Chapter 601 is amended by adding at the end
the following:

``Sec. 60134. State damage prevention programs

``(a) In General.--The Secretary may make a grant to a State
authority (including a municipality with respect to intrastate gas

[[Page 3488]]
120 STAT. 3488

pipeline transportation) to assist in improving the overall quality and
effectiveness of a damage prevention program of the State authority
under subsection (e) if the State authority--
``(1) has in effect an annual certification under section
60105 or an agreement under section 60106; and
``(2)(A) has in effect an effective damage prevention
program that meets the requirements of subsection (b); or
``(B) demonstrates that it has made substantial progress
toward establishing such a program, and that such program will
meet the requirements of subsection (b).

``(b) Damage Prevention Program Elements.--An effective damage
prevention program includes the following elements:
``(1) Participation by operators, excavators, and other
stakeholders in the development and implementation of methods
for establishing and maintaining effective communications
between stakeholders from receipt of an excavation notification
until successful completion of the excavation, as appropriate.
``(2) A process for fostering and ensuring the support and
partnership of stakeholders, including excavators, operators,
locators, designers, and local government in all phases of the
program.
``(3) A process for reviewing the adequacy of a pipeline
operator's internal performance measures regarding persons
performing locating services and quality assurance programs.
``(4) Participation by operators, excavators, and other
stakeholders in the development and implementation of effective
employee training programs to ensure that operators, the one-
call center, the enforcing agency, and the excavators have
partnered to design and implement training for the employees of
operators, excavators, and locators.
``(5) A process for fostering and ensuring active
participation by all stakeholders in public education for damage
prevention activities.
``(6) A process for resolving disputes that defines the
State authority's role as a partner and facilitator to resolve
issues.
``(7) Enforcement of State damage prevention laws and
regulations for all aspects of the damage prevention process,
including public education, and the use of civil penalties for
violations assessable by the appropriate State authority.
``(8) A process for fostering and promoting the use, by all
appropriate stakeholders, of improving technologies that may
enhance communications, underground pipeline locating
capability, and gathering and analyzing information about the
accuracy and effectiveness of locating programs.
``(9) A process for review and analysis of the effectiveness
of each program element, including a means for implementing
improvements identified by such program reviews.

``(c) Factors to Consider.--In making grants under this section, the
Secretary shall take into consideration the commitment of each State to
ensuring the effectiveness of its damage prevention program, including
legislative and regulatory actions taken by the State.
``(d)  NOTE: Deadline.  Application.--If a State authority files
an application for a grant under this section not later than September
30 of a calendar year and demonstrates that the Governor (or chief
executive) of the State has designated it as the appropriate State


[[Page 3489]]
120 STAT. 3489

authority to receive the grant, the Secretary shall review the State's
damage prevention program to determine its effectiveness.
``(e) Use of Funds.--A grant under this section to a State authority
may only be used to pay the cost of the personnel, equipment, and
activities that the State authority reasonably requires for the calendar
year covered by the grant to develop or carry out its damage prevention
program in accordance with subsection (b).
``(f) Nonapplicability of Limitation.--A grant made under this
section is not subject to the section 60107(a) limitation on the maximum
percentage of funds to be paid by the Secretary.
``(g) Limitation on Use of Funds.--Funds provided to carry out this
section may not be used for lobbying or in direct support of litigation.
``(h) Damage Prevention Process Defined.--In this section, the term
`damage prevention process' means a process that incorporates the
principles described in sections 60114(b), 60114(d), and 60114(e).''.
(3) Clerical amendment.--The analysis for chapter 601 is
amended by adding at the end the following:

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

(c) State Pipeline Safety Grants.--Section 60107(a) is amended by
striking ``not more than 50 percent'' and inserting ``not more than 80
percent''.
(d) Maintenance of Effort.--Section 60107(b) is amended by striking
``spent--'' and all that follows and inserting ``spent for gas and
hazardous liquid safety programs for the 3 fiscal years prior to the
fiscal year in which the Secretary makes the payment, except when the
Secretary waives this requirement.''.
(e) Damage Prevention Technology Development.--Section 60114 (as
amended by subsection (a)(1) of this section) is further amended by
adding at the end the following:
``(g) Technology Development Grants.--The Secretary may make grants
to any organization or entity (not including for-profit entities) for
the development of technologies that will facilitate the prevention of
pipeline damage caused by demolition, excavation, tunneling, or
construction activities, with emphasis on wireless and global
positioning technologies having potential for use in connection with
notification systems and underground facility locating and marking
services. Funds provided under this subsection may not be used for
lobbying or in direct support of litigation. The Secretary may also
support such technology development through cooperative agreements with
trade associations, academic institutions, and other organizations.''.

SEC. 3. PUBLIC EDUCATION AND AWARENESS.

(a) In General.--Chapter 61 is amended by adding at the end the
following:

``Sec. 6109. Public education and awareness

``(a) Grant Authority.--The Secretary shall make a grant to an
appropriate entity for promoting public education and awareness with
respect to the 811 national excavation damage prevention phone number.

[[Page 3490]]
120 STAT. 3490

``(b) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $1,000,000 for the period beginning
October 1, 2006, and ending September 30, 2008, to carry out this
section.''.
(b) Clerical Amendment.--The analysis for chapter 61 is amended by
adding at the end the following:

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

SEC. 4. LOW-STRESS PIPELINES.

Section 60102(k) is amended to read as follows:
``(k) Low-Stress Hazardous Liquid Pipelines.--
``(1)  NOTE: Deadline. Regulations.  Minimum standards.--
Not later than December 31, 2007, the Secretary shall issue
regulations subjecting low-stress hazardous liquid pipelines to
the same standards and regulations as other hazardous liquid
pipelines, except as provided in paragraph (3). The
implementation of the applicable standards and regulatory
requirements may be phased in. The regulations issued under this
paragraph shall not apply to gathering lines.
``(2) General prohibition against low internal stress
exception.--Except as provided in paragraph (3), the Secretary
may not provide an exception to the requirements of this chapter
for a hazardous liquid pipeline because the pipeline operates at
low internal stress.
``(3) Limited exceptions.--The Secretary shall provide or
continue in force exceptions to this subsection for low-stress
hazardous liquid pipelines that--
``(A) are subject to safety regulations of the
United States Coast Guard; or
``(B) serve refining, manufacturing, or truck, rail,
or vessel terminal facilities if the pipeline is less
than 1 mile long (measured outside the facility grounds)
and does not cross an offshore area or a waterway
currently used for commercial navigation,
until regulations issued under paragraph (1) become effective.
After such regulations become effective, the Secretary may
retain or remove those exceptions as appropriate.
``(4) Relationship to other laws.--Nothing in this
subsection shall be construed to prohibit or otherwise affect
the applicability of any other statutory or regulatory exemption
to any hazardous liquid pipeline.
``(5) Definition.--For purposes of this subsection, the term
`low-stress hazardous liquid pipeline' means a hazardous liquid
pipeline that is operated in its entirety at a stress level of
20 percent or less of the specified minimum yield strength of
the line pipe.
``(6) Effective date.--The requirements of this subsection
shall not take effect as to low-stress hazardous liquid pipeline
operators before the effective date of the rules promulgated by
the Secretary under this subsection.''.

SEC. 5. TECHNICAL ASSISTANCE GRANTS.

Section 60130 is amended--
(1) in subsection (a)(1) by striking ``The Secretary shall
establish competitive'' and inserting ``No grants may be awarded
under section 60114(g) until the Secretary has established
competitive'';

[[Page 3491]]
120 STAT. 3491

(2) in subsection (a) by redesignating paragraph (2) as
paragraph (4);
(3) in subsection (a) by inserting after paragraph (1) the
following:
``(2) Demonstration grants.--At least the first 3 grants
awarded under this section shall be demonstration grants for the
purpose of demonstrating and evaluating the utility of grants
under this section. Each such demonstration grant shall not
exceed $25,000.
``(3) Dissemination of technical findings.--Each recipient
of a grant under this section shall ensure that--
``(A) the technical findings made possible by the
grants are made available to the relevant operators; and
``(B) open communication between the grant
recipients, local operators, local communities, and
other interested parties is encouraged.''; and
(4) in subsection (d) by striking ``2006'' and inserting
``2010''.

SEC. 6. ENFORCEMENT TRANSPARENCY.

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

``Sec. 60135. Enforcement transparency

``(a)  NOTE: Deadline. Public information.  In General.--Not later
than December 31, 2007, the Secretary shall--
``(1) provide a monthly updated summary to the public of all
gas and hazardous liquid pipeline enforcement actions taken by
the Secretary or the Pipeline and Hazardous Materials Safety
Administration, from the time a notice commencing an enforcement
action is issued until the enforcement action is final;
``(2) include in each such summary identification of the
operator involved in the enforcement activity, the type of
alleged violation, the penalty or penalties proposed, any
changes in case status since the previous summary, the final
assessment amount of each penalty, and the reasons for a
reduction in the proposed penalty, if appropriate; and
``(3) provide a mechanism by which a pipeline operator named
in an enforcement action may make information, explanations, or
documents it believes are responsive to the enforcement action
available to the public.

``(b) Electronic Availability.--Each summary under this section
shall be made available to the public by electronic means.
``(c) Relationship to FOIA.--Nothing in this section shall be
construed to require disclosure of information or records that are
exempt from disclosure under section 552 of title 5.''.
(b) Clerical Amendment.--The analysis for chapter 601 (as amended by
section 2(b) of this Act) is further amended by adding at the end:

``60135. Enforcement transparency.''.

SEC. 7. DIRECT LINE SALES.

Section 60101(a) is amended--
(1) by striking paragraph (6) and inserting the following:
``(6) `interstate gas pipeline facility' means a gas
pipeline facility--
``(A) used to transport gas; and

[[Page 3492]]
120 STAT. 3492

``(B) subject to the jurisdiction of the Commission
under the Natural Gas Act (15 U.S.C. 717 et seq.);'';
and
(2) by striking paragraph (9) and inserting the following:
``(9) `intrastate gas pipeline facility' means a gas
pipeline facility and transportation of gas within a State not
subject to the jurisdiction of the Commission under the Natural
Gas Act (15 U.S.C. 717 et seq.);''.

SEC. 8. PETROLEUM TRANSPORTATION CAPACITY AND REGULATORY ADEQUACY STUDY.

(a) In General.--Chapter 601 (as amended by sections 2(b) and 6 of
this Act) is further amended by adding at the end the following:

``Sec. 60136. Petroleum product transportation capacity study

``(a) In General.--The Secretaries of Transportation and Energy
shall conduct periodic analyses of the domestic transport of petroleum
products by pipeline. Such analyses should identify areas of the United
States where unplanned loss of individual pipeline facilities may cause
shortages of petroleum products or price disruptions and where shortages
of pipeline capacity and reliability concerns may have or are
anticipated to contribute to shortages of petroleum products or price
disruptions. Upon identifying such areas, the Secretaries may determine
if the current level of regulation is sufficient to minimize the
potential for unplanned losses of pipeline capacity.
``(b) Consultation.--In preparing any analysis under this section,
the Secretaries may consult with the heads of other government agencies
and public- and private-sector experts in pipeline and other forms of
petroleum product transportation, energy consumption, pipeline capacity,
population, and economic development.
``(c) Report to Congress.--Not later than June 1, 2008, the
Secretaries shall submit to the Committee on Energy and Commerce and the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation and the Committee on Energy and Natural Resources of the
Senate a report setting forth their recommendations to reduce the
likelihood of the shortages and price disruptions referred to in
subsection (a).
``(d) Additional Reports.--The Secretaries shall submit additional
reports to the congressional committees referred to in subsection (c)
containing the results of any subsequent analyses performed under
subsection (a) and any additional recommendations, as appropriate.
``(e) Petroleum Product Defined.--In this section, the term
`petroleum product' means oil of any kind  or in any form, gasoline,
diesel fuel, aviation fuel, fuel oil, kerosene, any product obtained
from refining or processing of crude oil, liquefied petroleum gases,
natural gas liquids, petrochemical feedstocks, condensate, waste or
refuse mixtures containing any of such oil products, and any other
liquid hydrocarbon compounds.''.
(b) Clerical Amendment.--The analysis for chapter 601 (as amended by
sections 2(b) and 6 of this Act) is further amended by adding at the end
the following:

``60136. Petroleum product transportation capacity study.''.

[[Page 3493]]
120 STAT. 3493

SEC. 9. DISTRIBUTION INTEGRITY MANAGEMENT PROGRAM RULEMAKING DEADLINE.

Section 60109 is amended by adding at the end the following:
``(e) Distribution Integrity Management Programs.--
``(1) Minimum standards.--Not later than 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) 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.''.

[[Page 3494]]
120 STAT. 3494

SEC. 10. EMERGENCY WAIVERS.

Section 60118(c) is amended to read as follows:
``(c) Waivers by Secretary.--
``(1) Nonemergency waivers.--
``(A) In general.--On application of an owner or
operator of a pipeline facility, the Secretary by order
may waive compliance with any part of an applicable
standard prescribed under this chapter with respect to
such facility on terms the Secretary considers
appropriate if the Secretary determines that the waiver
is not inconsistent with pipeline safety.
``(B) Hearing.--The Secretary may act on a waiver
under this paragraph only after notice and an
opportunity for a hearing.
``(2) Emergency waivers.--
``(A) In general.--The Secretary by order may waive
compliance with any part of an applicable standard
prescribed under this chapter on terms the Secretary
considers appropriate without prior notice and comment
if the Secretary determines that--
``(i) it is in the public interest to grant
the waiver;
``(ii) the waiver is not inconsistent with
pipeline safety; and
``(iii) the waiver is necessary to address an
actual or impending emergency involving pipeline
transportation, including an emergency caused by a
natural or manmade disaster.
``(B) Period of waiver.--A waiver under this
paragraph may be issued for a period of not more than 60
days and may be renewed upon application to the
Secretary only after notice and an opportunity for a
hearing on the waiver. The Secretary shall immediately
revoke the waiver if continuation of the waiver would
not be consistent with the goals and objectives of this
chapter.
``(3) Statement of reasons.--The Secretary shall state in an
order issued under this subsection the reasons for granting the
waiver.''.

SEC. 11. RESTORATION OF OPERATIONS.

Section 60117 is amended by adding at the end the following:
``(m) Restoration of Operations.--
``(1) In general.--The Secretary may advise, assist, and
cooperate with the heads of other departments, agencies, and
instrumentalities of the United States Government, the States,
and public and private agencies and persons to facilitate the
restoration of pipeline operations that have been or are
anticipated to become disrupted by manmade or natural disasters.
``(2) Savings clause.--Nothing in this section alters or
amends the authorities and responsibilities of any department,
agency, or instrumentality of the United States Government,
other than the Department of Transportation.''.

SEC. 12. PIPELINE CONTROL ROOM MANAGEMENT.

(a) In General.--Chapter 601 (as amended by sections 2(b), 6, and 8
of this Act) is further amended by adding at the end the following:

[[Page 3495]]
120 STAT. 3495

``Sec. 60137. Pipeline control room management

``(a)  NOTE: Deadline. Regulations.  In General.--Not later than
June 1, 2008, the Secretary shall issue regulations requiring each
operator of a gas or hazardous liquid pipeline to develop, implement,
and submit to the Secretary or, in the case of an operator of an
intrastate pipeline located within the boundaries of a State that has in
effect an annual certification under section 60105, to the head of the
appropriate State authority, a human factors management plan designed to
reduce risks associated with human factors, including fatigue, in each
control center for the pipeline. Each plan must include, among the
measures to reduce such risks, a maximum limit on the hours of service
established by the operator for individuals employed as controllers in a
control center for the pipeline.

``(b) Review and Approval of the Plan.--The Secretary or, in the
case of an operator of an intrastate pipeline located within the
boundaries of a State that has in effect an annual certification under
section 60105, the head of the appropriate State authority, shall review
and approve each plan submitted to the Secretary or the head of such
authority under subsection (a). The Secretary and the head of such
authority may not approve a plan that does not include a maximum limit
on the hours of service established by the operator of the pipeline for
individuals employed as controllers in a control center for the
pipeline.
``(c) Enforcement of the Plan.--If the Secretary or the head of the
appropriate State authority determines that an operator's plan submitted
to the Secretary or the head of such authority under subsection (a), or
implementation of such a plan, does not comply with the regulations
issued under this section or is inadequate for the safe operation of a
pipeline, the Secretary or the head of such authority may take action
consistent with this chapter and enforce the requirements of such
regulations.
``(d) Compliance With the Plan.--Each operator of a gas or hazardous
liquid pipeline shall document compliance with the plan submitted by the
operator under subsection (a) and the reasons for any deviation from
compliance with such plan. The Secretary or the head of the appropriate
State authority, as the case may be, shall review the reasonableness of
any such deviation in considering whether to take enforcement action or
discontinue approval of the operator's plan under subsection (b).
``(e) Deviation Reporting Requirements.--In issuing regulations
under subsection (a), the Secretary shall develop and include in such
regulations requirements for an operator of a gas or hazardous liquid
pipeline to report deviations from compliance with the plan submitted by
the operator under subsection (a).''.
(b) Clerical Amendment.--The analysis for chapter 601 (as amended by
sections 2(b), 6, and 8 of this Act) is further amended by adding at the
end the following:

``60137. Pipeline control room management.''.

SEC. 13. SAFETY ORDERS.

Section 60117(l) is amended to read as follows:
``(l) Safety Orders.--
``(1)  NOTE: Deadline. Regulations.  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


[[Page 3496]]
120 STAT. 3496

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.''.

SEC. 14. INTEGRITY PROGRAM ENFORCEMENT.

Section 60109(c)(9)(A)(iii) is amended to read as follows:
``(iii) Inadequate programs.--If the Secretary
determines that a risk analysis or integrity
management program does not comply with the
requirements of this subsection or regulations
issued as described in paragraph (2), has not been
adequately implemented, or is inadequate for the
safe operation of a pipeline facility, the
Secretary may conduct proceedings under this
chapter.''.

SEC. 15.  NOTE: 49 USC 60117 note.  INCIDENT REPORTING.

Not later than December 31, 2007, the Secretary of Transportation
shall review the incident reporting requirements for operators of
natural gas pipelines and modify the reporting criteria as appropriate
to ensure that the incident data gathered accurately reflects incident
trends over time, taking into consideration the recommendations from the
Comptroller General in GAO report 06-946.

SEC. 16. SENIOR EXECUTIVE SIGNATURE OF INTEGRITY MANAGEMENT PROGRAM
PERFORMANCE REPORTS.

Section 60109 (as amended by section 9 of this Act) is further
amended by adding at the end the following:
``(f)  NOTE: Procedures.  Certification of Pipeline Integrity
Management Program Performance.--The Secretary shall establish
procedures requiring certification of annual and semiannual pipeline
integrity management program performance reports by a senior executive
officer of the company operating a pipeline subject to this chapter. The
procedures shall require a signed statement, which may be effected
electronically in accordance with the provisions of the Electronic
Signatures in Global and National Commerce Act (15 U.S.C. 7001 et seq.),
certifying that--
``(1) the signing officer has reviewed the report; and
``(2) to the best of such officer's knowledge and belief,
the report is true and complete.''.

SEC. 17. COST RECOVERY FOR DESIGN REVIEWS.

Section 60117 (as amended by section 11 of this Act) is amended by
adding at the end the following:
``(n) Cost Recovery for Design Reviews.--

[[Page 3497]]
120 STAT. 3497

``(1) In general.--If the Secretary conducts facility design
safety reviews in connection with a proposal to construct,
expand, or operate a liquefied natural gas pipeline facility,
the Secretary may require the person requesting such reviews to
pay the associated staff costs relating to such reviews incurred
by the Secretary in section 60301(d). The Secretary may assess
such costs in any reasonable manner.
``(2) Deposit.--The Secretary shall deposit all funds paid
to the Secretary under this subsection into the Department of
Treasury account 69-5172-0-2-407 or its successor account.
``(3) Authorization of appropriations.--Funds deposited
pursuant to this subsection are authorized to be appropriated
for the purposes set forth in section 60301(d).''.

SEC. 18. AUTHORIZATION OF APPROPRIATIONS.

(a) Gas and Hazardous Liquid.--Section 60125(a) is amended to read
as follows:
``(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), the following amounts are authorized
to be appropriated to the Department of Transportation from fees
collected under section 60301 in each respective year:
``(A) For fiscal year 2007, $60,175,000 of which
$7,386,000 is for carrying out such section 12 and
$17,556,000 is for making grants.
``(B) For fiscal year 2008, $67,118,000 of which
$7,586,000 is for carrying out such section 12 and
$20,614,000 is for making grants.
``(C) For fiscal year 2009, $72,045,000 of which
$7,586,000 is for carrying out such section 12 and
$21,513,000 is for making grants.
``(D) For fiscal year 2010, $76,580,000 of which
$7,586,000 is for carrying out subsection 12 and
$22,252,000 is for making grants.
``(2)  Trust fund amounts.--In addition to the amounts
authorized to be appropriated by paragraph (1) the following
amounts are authorized 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) For fiscal year 2007, $18,810,000 of which
$4,207,000 is for carrying out such section 12 and
$2,682,000 is for making grants.
``(B) For fiscal year 2008, $19,000,000 of which
$4,207,000 is for carrying out such section 12 and
$2,682,000 is for making grants.
``(C) For fiscal year 2009, $19,500,000 of which
$4,207,000 is for carrying out such section 12 and
$3,103,000 is for making grants.
``(D) For fiscal year 2010, $20,000,000 of which
$4,207,000 is for carrying out such section 12
$3,603,000 is for making grants.''.

(b) Conforming Amendments.--Section 60125 is amended--
(1) by striking subsections (b) and (c); and

[[Page 3498]]
120 STAT. 3498

(2) by redesignating subsections (d) and (e) as subsections
(b) and (c), respectively.

(c) Emergency Response Grants.--Section 60125(b) (as redesignated by
subsection (b)(2) of this section) is amended--
(1) in paragraph (1) by adding at the end the following:
``To the extent that such grants are used to train emergency
responders, such training shall ensure that emergency responders
have the ability to protect nearby persons, property, and the
environment from the effects of accidents or incidents involving
gas or hazardous liquid pipelines, in accordance with existing
regulations.''; and
(2) in paragraph (2)--
(A) by striking ``$6,000,000'' and inserting
``$10,000,000''; and
(B) by striking ``2003 through 2006'' and inserting
``2007 through 2010''.

(d) One-Call Notification Programs.--Section 6107 is amended--
(1) in subsection (a) by striking ``fiscal years 2003
through 2006'' and inserting ``fiscal years 2007 through 2010'';
and
(2) in subsection (b) by striking ``for fiscal years 2003
through 2006'' and inserting ``for fiscal years 2007 through
2010''.

(e) Inspector Staffing.--The Secretary shall ensure that the number
of positions for pipeline inspection and enforcement personnel at the
Pipeline and Hazardous Materials Safety Administration does not fall
below 100 for fiscal year 2007, 111 for fiscal year 2008, 123 for fiscal
year 2009, and 135 for fiscal year 2010.

SEC. 19.  NOTE: 49 USC 60102 note. Deadline.  STANDARDS TO IMPLEMENT
NTSB RECOMMENDATIONS.

Not later than June 1, 2008, the Secretary of Transportation shall
issue standards that implement the following recommendations contained
in the National Transportation Safety Board's report entitled
``Supervisory Control and Data Acquisition (SCADA) in Liquid Pipelines''
and adopted November 29, 2005:
(1) Implementation of the American Petroleum Institute's
Recommended Practice 165 for the use of graphics on the
supervisory control and data acquisition screens.
(2) Implementation of a standard for pipeline companies to
review and audit alarms on monitoring equipment.
(3) Implementation of standards for pipeline controller
training that include simulator or noncomputerized simulations
for controller recognition of abnormal pipeline operating
conditions, in particular, leak events.

SEC. 20.  NOTE: 49 USC 60117 note.  ACCIDENT REPORTING FORM.

Not later than December 31, 2007, the Secretary of Transportation
shall amend accident reporting forms to require operators of gas and
hazardous liquid pipelines to provide data related to controller
fatigue.

SEC. 21. LEAK DETECTION TECHNOLOGY STUDY.

Not  NOTE: Reports.  later than December 31, 2007, the Secretary
of Transportation shall submit to Congress a report on leak detection
systems utilized by operators of hazardous liquid pipelines. The report
shall include a discussion of the inadequacies of current leak detection
systems, including their ability to detect ruptures and small leaks that
are ongoing or intermittent, and what can be done to foster


[[Page 3499]]
120 STAT. 3499

development of better technologies as well as address existing
technological inadequacies.

SEC. 22. CORROSION CONTROL REGULATIONS.

(a) Review.--The Secretary of Transportation, in consultation with
the Technical Hazardous Liquid Pipeline Safety Standards Committee and
other appropriate entities, shall review the internal corrosion control
regulations set forth in subpart H of part 195 of title 49 of the Code
of Federal Regulations to determine if such regulations are currently
adequate to ensure that the pipeline facilities subject to such
regulations will not present a hazard to public safety or the
environment.
(b) Report.--Not later than December 31, 2007, the Secretary shall
submit to Congress a report containing the results of the review and may
modify the regulations referred to in subsection (a) if necessary and
appropriate.

SEC. 23. INSPECTOR GENERAL REPORT.

(a) Assessment.--Not later than December 31, 2007, the Inspector
General of the Department of Transportation shall conduct an assessment
of the actions the Department has taken in implementing the annex to the
memorandum of understanding between the Secretary of Transportation and
the Secretary of Homeland Security, dated September 28, 2004, relating
to pipeline security.
(b) Specified Duties of Inspector General.--In carrying out the
assessment, the Inspector General shall--
(1) provide a status report on implementation of the program
elements outlined and developed in the annex;
(2) describe the roles, responsibilities, and authority of
the Department of Transportation relating to pipeline security;
(3) assess the adequacy and effectiveness of the process by
which the Department of Transportation has communicated and
coordinated with the Department of Homeland Security on matters
relating to pipeline security;
(4) address the adequacy of security standards for gas and
oil pipelines in coordination, as necessary, with the Inspector
General of the Department of Homeland Security; and
(5) consider any other issues determined to be appropriate
by the Inspector General of the Department of Transportation or
the Secretary of Transportation.

(c) Assessment Report and Periodic Status Updates.--
(1) Assessment report.--Not later than December 31, 2007,
the Inspector General of the Department of Transportation shall
transmit a report on the results of the assessment, together
with any recommendations (including legislative options for
Congress to consider), to the Committees on Transportation and
Infrastructure and Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate.
(2) Periodic status reports.--The Inspector General shall
transmit periodically to the Committees as referred to in
paragraph (1), as necessary and appropriate, reports on matters
pertaining to the implementation by the Department of
Transportation of any recommendations contained in the report
transmitted pursuant to paragraph (1).

[[Page 3500]]
120 STAT. 3500

(d) Format.--The report, or portions of the report, under subsection
(c)(1) may be submitted in a classified format if the Inspector General
determines that such action is necessary.

SEC. 24.  NOTE: 49 USC 60101 note.  TECHNICAL ASSISTANCE PROGRAM.

(a) In General.--The Secretary of Transportation may award, through
a competitive process, grants to universities with expertise in pipeline
safety and security to establish jointly a collaborative program to
conduct pipeline safety and technical assistance programs.
(b) Duties.--In cooperation with the Pipeline and Hazardous
Materials Safety Administration and representatives from States and
boards of public utilities, the participants in the collaborative
program established under subsection (a) shall be responsible for
development of workforce training and technical assistance programs
through statewide and regional partnerships that provide for--
(1) communication of national, State, and local safety
information to pipeline operators;
(2) distribution of technical resources and training to
support current and future Federal mandates; and
(3) evaluation of program outcomes.

(c) Training and Educational Materials.--The collaborative program
established under subsection (a) may include courses in recent
developments, techniques, and procedures related to--
(1) safety and security of pipeline systems;
(2) incident and risk management for such systems;
(3) integrity management for such systems;
(4) consequence modeling for such systems;
(5) detection of encroachments and monitoring of rights-of-
way for such systems; and
(6) vulnerability assessment of such systems at both project
and national levels.

(d) Reports.--
(1) University.--Not later than March 31, 2009, the
universities awarded grants under subsection (a) shall submit to
the Secretary a report on the results of the collaborative
program.
(2) Secretary.--Not later than October 1, 2009, the
Secretary shall transmit the reports submitted to the Secretary
under paragraph (1), along with any findings, recommendations,
or legislative options for Congress to consider, to the
Committees on Transportation and Infrastructure and Energy and
Commerce of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate.

(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section for
each of fiscal years 2007 through 2010.

SEC. 25. NATURAL GAS PIPELINES.

The  NOTE: Deadline. Recommen- dations.  Secretary of
Transportation shall review and comment on the Comptroller General
report issued under section 14(d)(1) of the Pipeline Safety Improvement
Act of 2002 (49 U.S.C. 60109 note; 116 Stat. 3005), and not later than
60 days after the date of enactment of this Act, transmit to Congress
any legislative recommendations the Secretary considers necessary and
appropriate to implement the conclusions of that report.

[[Page 3501]]
120 STAT. 3501

SEC. 26. CORROSION TECHNOLOGY.

Section 12 of the Pipeline Safety Improvement Act of 2002 (49 U.S.C.
60101 note; Public Law 107-355) is amended--
(1) in subsection (c)(2) by striking ``corrosion,'';
(2) in subsection (c)--
(A) by striking ``and'' at the end of paragraph (9);
(B) by redesignating paragraph (10) as paragraph
(11);
(C) by inserting after paragraph (9) the following:
``(10) corrosion detection and improving methods, best
practices, and technologies for identifying, detecting,
preventing, and managing internal and external corrosion and
other safety risks; and''; and
(D) by adding at the end the following:

``The results of activities carried out under paragraph (10) shall be
used by the participating agencies to support development and
improvement of national consensus standards.''; and
(3) by striking subsection (f) and redesignating subsections
(g) and (h) as subsections (f) and (g), respectively.

Approved December 29, 2006.

LEGISLATIVE HISTORY--H.R. 5782:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-717, Pt. 1 (Comm. on Transportation and
Infrastructure) and Pt. 2 (Comm. on Energy and Commerce).
CONGRESSIONAL RECORD, Vol. 152 (2006):
Dec. 6, considered and passed House.
Dec. 7, considered and passed Senate.