[Senate Report 114-209]
[From the U.S. Government Publishing Office]
Calendar No. 370
114th Congress } { REPORT
SENATE
2d Session } { 114-209
_______________________________________________________________________
SECURING AMERICA'S FUTURE ENERGY: PROTECTING OUR INFRASTRUCTURE OF
PIPELINES AND ENHANCING SAFETY ACT
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2276
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
February 24, 2016.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
59-010 WASHINGTON : 2016
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred fourteenth congress
second session
JOHN THUNE, South Dakota, Chairman
ROGER F. WICKER, Mississippi BILL NELSON, Florida
ROY BLUNT, Missouri MARIA CANTWELL, Washington
MARCO RUBIO, Florida CLAIRE McCASKILL, Missouri
KELLY AYOTTE, New Hampshire AMY KLOBUCHAR , Minnesota
TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas ED MARKEY, Massachusetts
DAN SULLIVAN, Alaska CORY BOOKER, New Jersey
RON JOHNSON, Wisconsin TOM UDALL, New Mexico
DEAN HELLER, Nevada JOE MANCHIN, West Virginia
CORY GARDNER, Colorado GARY PETERS, Michigan
STEVE DAINES, Montana
Nick Rossi, Staff Director
Adrian Arnakis, Deputy Staff Director
Rebecca Seidel, General Counsel
Kim Lipsky, Democratic Staff Director
Christopher Day, Democratic Deputy Staff Director
Clint Odom, Democratic General Counsel
Calendar No. 370
114th Congress } { Report
SENATE
2d Session } { 114-209
======================================================================
SECURING AMERICA'S FUTURE ENERGY: PROTECTING OUR INFRASTRUCTURE OF
PIPELINES AND ENHANCING SAFETY ACT
_______
February 24, 2016.--Ordered to be printed
_______
Mr. Thune, from the Committee on Commerce, Science, and Transportation,
submitted the following
R E P O R T
[To accompany S. 2276]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2276) to amend title 49, United
States Code, to provide enhanced safety in 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 purpose of S. 2276, is to reauthorize pipeline safety
programs at the Pipeline and Hazardous Materials Safety
Administration (PHMSA) of 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 Pipeline Safety, Regulatory Certainty, and
Job Creation Act of 2011,\2\ (2011 Act) expired on September
30, 2015, but absent authorization, the agency retains
operating authority.
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\1\The Division of Hazardous Materials Safety of PHMSA was
reauthorized in the Fixing America's Surface Transportation Act, (P.L.
114-94).
\2\P.L. 112-90.
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The OPS has exclusive jurisdiction to regulate key aspects
of interstate pipeline safety, including pipeline design,
construction, operation and maintenance, and emergency response
planning.\3\ The OPS is fully funded by a user fee assessed on
a per-mile basis and oversees the pipeline inspection process,
which is largely conducted by State officials via delegated
authorities. The office is authorized to have 311 positions,
and 103 remain unfilled as of September 1, 2015. PHMSA has
suggested that filling inspector positions that require
technical backgrounds is difficult due to competition with
industry for qualified staff.
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\3\PHMSA does not have jurisdiction over pipeline siting. Siting of
gas transmission pipelines is under the jurisdiction of the Federal
Energy Regulatory Commission (FERC). Jurisdiction over the siting of
oil pipelines rests with the States.
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The Nation's energy pipelines consist of three primary
types: (1) approximately 300,000 miles of gas transmission
pipelines, including 180,000 miles of interstate pipelines,
which transport natural gas from producing regions to consuming
regions\4\; (2) over 2.1 million miles of gas distribution
pipelines, which distribute gas to homes and businesses from a
connection with a gas transmission pipeline; and (3)
approximately 199,000 miles of liquid pipelines, which
transport crude oil, refined petroleum products, propane,
anhydrous ammonia, biofuels, carbon dioxide, and other
hazardous liquid chemical products.\5\
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\4\www.NaturalGas.org.
\5\Statistics on gas distribution and liquid pipelines courtesy of
PHMSA.
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The natural gas industry consists of more than 6,300
producers of natural gas, 160 pipeline companies, and 1,200
natural gas distribution companies.\6\ Natural gas transmission
pipelines are generally only in the business of transportation,
and are not associated with producers or distributors. The map
below shows gas transmission pipelines, but does not show the
extensive network of distribution pipelines that carry natural
gas products to homes and businesses.\7\ Additional information
on the location of both liquid and gas pipelines is available
through the PHMSA National Pipeline Mapping Service.\8\
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\6\NaturalGas.org.
\7\Energy Information Administration.
\8\PHMSA. National Pipeline Mapping Service https://
www.npms.phmsa.dot.gov/PublicViewer.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Oil pipeline companies also are generally separate from oil
production companies, with the pipeline company only providing
transportation services. Crude oil transmission pipeline
deliveries are up 1.35 billion barrels over the last 5 years,
an increase of almost 20 percent from 2009 to 2013. Hazardous
liquid pipelines deliver approximately two-thirds of the oil
transported in the United States.\9\
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\9\Association of Oil Pipelines. http://www.aopl.org/pipeline-
basics/about-pipelines/ (Accessed September 14, 2015).
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Pipeline Inspection
PHMSA requires that pipelines be periodically inspected in
order to identify any possible defects, such as corrosion,
cracks, or manufacturing defects that would adversely affect
their integrity. The pipeline operator chooses the inspection
technique that it believes to be the most appropriate for a
particular pipeline segment.\10\ The selected method may be
based upon known or perceived threats or the specific
characteristics of a pipeline.
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\10\National Transportation Safety Board. (2015). Safety Study:
Integrity Management of Gas Transmission Pipelines in High Consequence
Areas. Report PB2015-102735. Retrieved from http://www.ntsb.gov/safety/
safety-studies/Documents/SS1501.pdf. (Accessed on September 9, 2015).
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Summary of Provisions
If enacted, S. 2276 would do the following:
Require PHMSA to conduct a workforce analysis, and
provide limited direct hire authority to PHMSA for the term of
the authorization fiscal year (FY) 2016 to 2019.
Require PHMSA to develop safety regulations for
underground natural gas storage facilities.
Require the Comprtoller General to conduct reviews
of the Gas and Liquid Integrity Management programs.
Legislative History
The Committee held two hearings on reauthorization of
pipeline safety programs on September 18, 2015, and September
29, 2015.\11\ The Committee also held a July 22, 2015,
nomination hearing for PHMSA Administrator Marie Therese
Dominguez, who was confirmed by the Senate on August 5, 2015.
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\11\Pipeline Safety: State and Local Perspectives held on September
18, 2015, accessed at: http://www.commerce.senate.gov/public/index.cfm/
hearings?ID=D7D78250-62BD-4AA9-9FD7-09303D6179D0; Pipeline Safety:
Oversight of Our Nation's Pipeline Network held on September 29, 2015,
accessed at : http://www.commerce.senate.gov/public/index.cfm/
hearings?ID=B120A00A-D4A8-44F9-8300-6A23C6305F76.
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S. 2276 was introduced by Senators Fischer, Booker, Daines,
and Peters on November 10, 2015. On December 9, 2015, the
Committee met in open Executive Session to consider the bill. A
substitute amendment was offered by Senator Fischer and adopted
by voice vote. Further amendments were offered by Senators
Ayotte and Markey and accepted by unanimous consent. The
Committee, by a voice vote, ordered S. 2276, as amended,
reported favorably.
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:
S. 2276--SAFE PIPES Act
Summary: The Pipeline and Hazardous Materials Safety
Administration (PHMSA) oversees the safety of pipelines that
transport natural gas or hazardous liquids and provides grants
to states for programs to ensure pipeline safety. S. 2276 would
require PHMSA to pursue a variety of regulatory and
administrative activities related to such programs and would
authorize appropriations for those purposes. The bill also
would authorize PHMSA to establish safety standards for certain
underground natural gas storage facilities, assess fees on
entities that operate such facilities, and spend such fees--
subject to authority provided in advance in appropriation
acts--to ensure that such facilities meet those standards.
CBO estimates that implementing S. 2276 would require gross
appropriations totaling $525 million over the 2017-2021 period.
CBO also estimates that those appropriations would be offset by
$462 million in fees paid by pipeline owners, which are
considered offsets to discretionary spending. Assuming
appropriation of amounts specified and estimated to be
necessary, CBO estimates that the resulting net outlays would
total $50 million over the 2017-2021 period.
In addition, CBO estimates that enacting S. 2276 would
increase revenues from assessments on entities that operate
certain underground natural gas storage facilities by $17
million over the 2017-2026 period. Pay-as-you-go procedures
apply because enacting the legislation would affect revenues.
Enacting S. 2276 would not affect direct spending.
CBO estimates that enacting the legislation would not
increase net direct spending or on-budget deficits in any of
the four consecutive 10-year periods beginning in 2027.
S. 2276 would impose intergovernmental and private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
by establishing new safety standards on storage facilities for
natural gas and imposing new fees. Based on information from
PHMSA and industry sources, CBO estimates the aggregate cost of
the mandates would fall below the annual thresholds established
in UMRA for intergovernmental and private-sector mandates ($77
million and $154 million in 2016, respectively, adjusted
annually for inflation).
Estimated cost to the Federal government: The estimated
budgetary effect of S. 2276 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
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By fiscal year, in millions of dollars--
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2017 2018 2019 2020 2021 2017-2021
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Spending for Pipeline Safety and Related Activities:
Estimated Authorization Level....................... 168 174 177 3 3 525
Estimated Outlays................................... 82 147 168 90 25 512
Offsetting Collections from User Fees:
Estimated Authorization Level....................... -151 -154 -157 0 0 -462
Estimated Outlays................................... -151 -154 -157 0 0 -462
Estimated Net Changes:
Estimated Authorization Level....................... 17 20 20 3 3 63
Estimated Outlays................................... -69 -7 11 90 25 50
CHANGES IN REVENUES1
Assessments for Underground Natural Gas Storage 0 0 2 2 2 7
Facilities.............................................
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1CBO estimates that enacting S. 2276 would increase revenues by $17 million over the 2019-2026 period.
Note: Components may not sum to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes that S.
2276 will be enacted near the start of fiscal year 2017 and the
amounts authorized and estimated to be necessary over the 2017-
2021 period will be appropriated each year. Estimates of
outlays are based on historical spending patterns for pipeline
safety programs.
Spending subject to appropriation
S. 2276 would reauthorize the laws that govern PHMSA's role
in pipeline safety. The bill would specify new administrative
requirements and authorize the agency to establish and enforce
safety standards for certain underground natural gas storage
facilities. The bill also would require the Government
Accountability Office (GAO) and other agencies to conduct a
variety of studies and reports related to pipeline safety and
related activities.
CBO estimates that implementing the bill would require
appropriations totaling $168 million in 2017 and $525 million
over the 2017-2021 period. (By comparison, CBO estimates that
funding related to PHMSA's pipeline safety programs in 2016
totals $147 million.) The amounts authorized by the bill
include:
$513 million specifically authorized for
PHMSA's pipeline safety programs;
$9 million in estimated authorizations
stemming from PHMSA's authority to spend, subject to
authority provided in advance in appropriation acts,
proposed assessments on entities that operate certain
underground natural gas storage facilities; and
$3 million for GAO and other agencies to
carry out various reporting and administrative
requirements.
Assuming appropriation of the authorized and estimated
amounts, CBO estimates that resulting discretionary outlays
would total $512 million over the 2017-2021 period, and $13
million in later years. CBO also estimates that those outlays
would be offset by $462 million in fees paid by entities that
operate pipelines and related facilities regulated by PHMSA.
Under current law, such annual fees are based on appropriations
provided for pipeline safety and related activities and are
recorded as discretionary offsetting collections.
Revenues
S. 2276 would authorize PHMSA to regulate the safety of
certain underground natural gas storage facilities. To cover
the cost of regulating such facilities, the bill would direct
the Secretary of Transportation to impose fees on entities that
operate such facilities. In CBO's view, such regulatory fees
should be recorded as revenues because of their compulsory
nature. Under the bill, PHMSA's authority to spend those fees
would be subject to appropriation.
Based on information from PHMSA and the natural gas
industry about the anticipated costs to establish and implement
the proposed safety standards, CBO estimates gross revenues
from such fees would total about $3 million annually starting
in 2019 (the year when CBO expects PHMSA would issue
regulations as required by the bill) and $24 million through
2026. Because excise taxes and other indirect business taxes
(such as the proposed assessment under S. 2276) reduce the base
of income and payroll taxes, higher amounts of those indirect
business taxes would lead to reductions in revenues from income
and payroll taxes. As a result, gross assessments would be
partially offset by a loss of receipts of about 25 percent each
year. Thus, CBO estimates that enacting S. 2276 would increase
net revenues by $17 million over the 2019-2026 period.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in revenues that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 2276, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON DECEMBER 9,
2015
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By fiscal year, in millions of dollars--
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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016-2021 2016-2026
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NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact............ 0 0 0 -2 -2 -2 -2 -2 -2 -2 -2 -7 -17
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Note: Components may not sum to totals because of rounding.
Increase in long term direct spending and deficits: CBO
estimates that enacting the legislation would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
Intergovernmental and private-sector impact: S. 2276 would
impose intergovernmental and private-sector mandates as defined
in UMRA by establishing new safety standards for storage
facilities for natural gas and by imposing new fees. Because
the majority of pipelines and facilities that would be affected
are owned by private entities, CBO estimates that the aggregate
cost of the mandates on public entities would fall below the
annual threshold established in UMRA for intergovernmental
mandates ($77 million in 2016, adjusted annually for
inflation). Based on information from PHMSA and industry
sources, CBO estimates the aggregate cost of the mandates on
private entities also would fall below the annual threshold
established in UMRA for private-sector mandates ($154 million
in 2016, adjusted annually for inflation).
Mandates that apply to both public and private entities
The bill would impose a mandate on operators of underground
natural gas storage facilities by directing the Secretary of
Transportation to establish safety standards for those
facilities. According to the Department of Energy, there are
about 400 underground natural gas storage facilities in the
United States, and the vast majority of the facilities are
operated by private entities. The industry recently issued
voluntary standards for ensuring the safety and integrity of
natural gas storage facilities. CBO estimates that the
incremental cost of the mandate would be minimal for facilities
that are currently working to comply with those industry
standards. Moreover, based on information from industry
sources, CBO estimates that the aggregate cost of the mandate
on all private facilities could total tens of millions of
dollars annually.
The bill also would impose a mandate on operators of
underground natural gas storage facilities by requiring those
operators to pay fees to the Secretary of Transportation. The
fees would be used to offset the cost of establishing and
implementing the safety standards for those facilities. CBO
estimates that those fees would total $3 million annually
beginning in 2019.
Mandate that applies to private entities only
The bill would impose a mandate on operators of oil
pipelines by requiring those operators, when preparing an oil
spill response plan, to take into consideration discharges of
oil into navigable water or on adjoining shorelines that may be
covered in whole or in part by ice. Operators of oil pipelines
must prepare response plans pursuant to current law. The cost
of the mandate would depend on whether operators need to amend
current plans to address discharges onto ice. Based on
information from PHMSA and industry sources, CBO estimates that
the cost of the mandate would not be substantial.
Estimate prepared by: Federal costs and revenues: Megan
Carroll; Impact on State, local, and tribal governments: Jon
Sperl; Impact on the private sector: Amy Petz.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact
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. 2276, as reported, would require the establishment of
minimum safety standards for underground natural gas storage
facilities, a new regulatory requirement. It is expected that
the underground storage facilities regulated by the new
standard would, in most cases, be owned and managed by parties
currently subject to PHMSA regulation.
economic impact
Enactment of this legislation is not expected to have any
inflationary or adverse impact on the Nation's economy.
privacy
The bill would not impact the personal privacy of
individuals.
paperwork
S. 2276 would require reports from the Federal Government.
The PHMSA Administrator would be required to provide regular
updates on the status of outstanding rulemakings. The PHMSA
Administrator would be further required to provide a report on
staff management practices, including any critical hiring
needs. The PHMSA Administrator also would be required to submit
a report on natural gas loss reporting standards.
In addition, the Comptroller General would be required to
produce reports on the status of the hazardous liquid and gas
integrity management programs, State policies that encourage
the repair or replacement of leaking pipes, and provide a
review of the feasibility of odorizing all gas in
transportation.
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; references
This section would designate the short title of this bill
as the, ``Securing America's Future Energy: Protecting our
Infrastructure of Pipelines and Enhancing Safety Act of 2015''
or the ``SAFE PIPES Act.''
Section 2. Authorization of appropriations
This section would authorize appropriations for FY 2016
through FY 2019 at levels consistent with current
appropriations, with approximately $147 million in FY 2016, and
$156 million in FY 2019.
The Committee is concerned that PHMSA has not yet updated
emergency response programs with the goal of delivering
effective emergency response training to the first responders
who must answer the calls when pipeline emergencies occur. The
Committee notes that, during the term of the previous
authorization, appropriations report language was included to
direct funding of updates for these training programs. In each
fiscal year, concern was expressed that PHMSA was not taking a
pro-active role. The Committee notes that, with the Nation's
aging pipeline infrastructure, and its exposure to future
emergency incidents, the situation must be aggressively
addressed by the PHMSA Administrator.
The Committee believes the the Secretary of Transportation
should consider upgrading the current pipeline emergencies
curriculum as part of its Emergency Response Grants in order to
take a more active role in the upgrade and enhancement of
emergency training.
Section 3. Regulatory updates
This section would require the PHMSA Administrator to
submit a periodic report to Congress on the status of final
rules for long overdue regulatory requirements.
The Committee notes that the 2011 Act prescribed a
significant number of regulations, and the regulations required
by that law should be completed as quickly as possible.
Section 4. Hazardous materials identification numbers
This section would rescind a June 26, 2015, PHMSA
interpretative letter clarifying placarding requirements for
flammable hazardous materials carriers. Currently, placards are
required to be mounted on cargo tanks and vehicles carrying
hazardous materials. The lowest flash point of the flammable
materials must be included on the placard, even if the carrier
is shipping multiple flammable materials at one time. Until
June 2015, as long as carriers did not transport a fuel with a
lower flash point than the placard, they would not have to
change the placard or purchase adjustable placards. On June 26,
2015, PHMSA issued an interpretative letter requiring placards
to be changed to represent the lowest flash point of the
particular type of fuel transported during each shipment.
Section 5. Statutory preference
This section would require the PHMSA Administrator to
prioritize PHMSA resources dedicated to pipeline safety to
complete any outstanding pipeline safety statutory requirements
for a rulemaking before undertaking any new pipeline safety
rulemakings required in this Act, unless the Secretary of
Transportation otherwise certifies a need to move forward with
a new rulemaking.
Section 6. Natural gas integrity management review
This section would require the Comptroller General to
report to Congress on the natural gas integrity management
program within one year of the date of publication of the final
rule on natural gas transmission.
Section 7. Hazardous liquids integrity management review
This section would require the Comptroller General, within
one year of the date of publication of a final rule on
hazardous liquid pipelines, to report to Congress on the
hazardous liquid integrity management program.
Section 8. Technical safety standards committees
This section would provide greater flexibility for the
Secretary of Transportation to appoint State pipeline safety
officials to advisory committees.
Section 9. Inspection report information
This section would require the PHMSA Administrator to
conduct a post-inspection briefing with the operator or issue
the final inspection report to the operator within 30 days of a
pipeline facility inspection.
PHMSA's internal inspection practices are composed of five
distinct parts, which typically occur over three to eight
months. The five parts are: entrance interview; procedure
interview; records review; field/facility review; and exit
interview. This section would codify that the PHMSA
Administration conduct exit interviews within 30 days of
completion of a pipeline safety inspection.
Current PHMSA internal performance goals set timeframes for
completion of inspection paperwork and reports. The goal is to
complete a preliminary inspection report within 30 days after
completion of an inspection, and a final report within 60 days
of completion of an inspection.
The Committee expects that the report to Congress directed
by this section would include statistics relating to the
timeliness of actions, including data on formal letters
relating to an inspection between PHMSA and pipeline operators.
Section 10. Pipeline odorization study
This section would require the Comptroller General to
report on the feasibility of odorizing all combustible gas in
transportation. The report would include an assessment of the
impact of odorization on manufacturers, agricultural producers,
and other end users. The Comprtoller General would also be
required to report on the benefits and costs of odorization of
all combustible gas in transportation in comparison with other
methods to address pipeline leaks.
The Committee expects that, to the extent practicable, the
Comptroller General will assess the health and safety benefits
of odorization of pipelines that are not currently required to
be odorized.
Section 11. Improving damage prevention technology
This section would require the Secretary of Transportation
to conduct a study on technological improvements in location
and communications practices to prevent accidental excavation
damage to a pipeline.
Section 12. Workforce of Pipeline and Hazardous Materials Safety
Administration
This section would require the PHMSA Administrator to
review PHMSA's current staffing, including hiring challenges,
geographic allocation plans, and expected retirement rates and
strategies, and then provide recommendations on how to address
any hiring or other staff resource challenges.
This section would also provide the PHMSA Administrator
with direct hire authority, until September 30, 2019, where a
severe shortage of candidates or a critical hiring need exists
for a position or group of positions at the agency.
Section 13. Research and development
This section would encourage additional collaboration
between the PHMSA Administrator and stakeholders in setting
research priorities, leveraging limited Federal research
dollars to conduct more relevant and timely research.
The Committee notes that the PHMSA Administrator has
traditionally worked with operators, the vendor community, and
research organization to form public-private partnerships to
develop new technologies to improve pipeline safety. These
collaborative programs with funding from both the private
sector and DOT/PHMSA should be renewed and focused on
developing new technologies to improve safety and reduce
emissions.
The Committee expects that the PHMSA Administrator will
implement and maintain proper protocols to prevent any undue
influence on the agency's research activities. Nothing in this
section would prevent the agency from conducting its own
research that is not co-funded or coordinated with
stakeholders.
Section 14. Information sharing system
This section would require the Secretary of Transportation
to convene a working group to consider developing a no-fault
information sharing system to facilitate collaborative efforts
to improve pipeline inspection information sharing. The working
group would be required to consider and provide recommendations
to the Secretary on: (1) ways to encourage the exchange of
pipeline inspection information; (2) opportunities to share dig
verification data; (3) options to create a secure system which
safeguards proprietary data; and (4) regulatory and legal
barriers to sharing information.
To ensure continued safe operation of both crude and
natural gas pipelines, it is essential that these assets be the
subject of inspection on a regular basis. These inspections
should take full advantage of advances in technology. While
both visual and hydrostatic inspection of lines have a role in
an integrity management program, so too does ``in-line''
inspection. While executing a PHMSA approved integrity
management program, each pipeline operator is ultimately
responsible for the safety of its line. Beyond encouraging the
use of the best available and most advanced technology to keep
pipelines safe, the Committee gives no preference to a
particular type of inspection and believes that visual,
hydrostatic, and ILI inspection should have equal weight in the
regulations and corrective action orders and that the pipeline
operator is in the best position to determine the efficacy of
each type of inspection for any given situation.
Section 15. Nationwide integrated pipeline database
This section would require the Secretary of Transportation
to submit a report on the feasibility of a national integrated
pipeline database in order to improve communication and
collaboration between the PHMSA Administrator and State
pipeline regulators. The report would include efforts currently
underway to test secure information sharing systems, any
progress in establishing common standards for collecting and
presenting pipeline data, any existing gaps in State and
Federal pipeline data, the potential safety benefits of an
integrated pipeline database, and recommendations for
implementing a secure information-sharing system.
Section 16. Underground natural gas storage facilities
This section would require the PHMSA Administrator to
develop minimum uniform safety standards for underground
natural gas storage facilities including wellbores, geologic
reservoirs, and aquifers.
In 2010, the United States Court of Appeals for the 10th
Circuit ruled in Colorado Interstate Gas Co. v. Thomas E.
Wright, et al. that statutes previously developed by the Kansas
State Legislature governing natural gas storage violated
Federal jurisdiction; it is the sense of the Committee that the
Secretary of Transportation should consider authorizing a State
authority to take necessary action to provide or participate in
the oversight of interstate underground natural gas storage
facilities in the same manner as provided in section 60106 of
title 49, United States Code.
This section also would establish a fee to fund the
oversight of underground natural gas storage facilities that
shall be imposed on an entity operating an underground natural
gas storage facility. Any such fee imposed shall be collected
before the end of the fiscal year to which it applies.
It is the intent of the Committee that nothing in this
section shall be construed to prevent States from adopting
additional or more stringent safety standards, as long as they
are not in conflict with the Federal standards for intrastate
facilities.
Section 17. Joint inspection and oversight
This section would provide certified State authorities with
the opportunity to accompany Federal inspection teams for
inspections.
Section 18. Response plans
This section would require the PHMSA Administrator and an
operator, in preparing or reviewing a response plan for onshore
oil pipelines, to consider and include all procedures necessary
to respond to a worst case discharge of oil into or on any
waters that may be covered by ice.
Section 19. High consequence areas
This section would explicitly state that the Great Lakes
should be considered a high consequence area.
Section 20. Surface transportation security review
This section would require the Comptroller General to
submit a report reviewing the Transportation Security
Administration's surface transportation programs, including
pipelines. In preparing the report the Comptroller General
would be required to look at the staffing, resource allocation,
oversight strategy, and overall management of these programs.
Section 21. Small scale liquefied natural gas facilities
This section would require the PHMSA Administrator to
develop minimum safety standards for deciding the location of a
new permanent Liquefied Natural Gas facility. This section is
intended to apply to small scale facilities, as defined.
Section 22. Report on natural gas leak reporting
This section would direct the PHMSA Administrator to study
the reporting of lost and unaccounted for natural gas from
distribution pipelines, make recommendations as appropriate,
and, where appropriate and cost effective, implement
recommendations that would significantly improve safety.
Section 23. Comptroller General review of State policies relating to
natural gas leaks
This section would direct the Comptroller General to review
State policies that encourage or may create barriers for
repairing and replacing leaking natural gas distribution
pipelines, make recommendations to the PHMSA Administrator and
Congress, and require the PHMSA Administrator to consider
rulemaking, where cost effective, on any recommendations that
would significantly improve pipeline safety.
Section 24. Provision of pipeline oil spill response plans to
congressional committees
This section would codify and expand the practice of
sharing oil spill response plans with each chairman and ranking
member of a relevant congressional committee. Under current
practice, the PHMSA Administrator may provide the chairman of a
relevant congressional committee the opportunity to review an
unredacted copy of an oil spill response plan. This section
would expand the courtesy to the ranking member of a relevant
congressional committee. The Committee expects that
confidentiality requirements relating to the protection of
sensitive security information would be applied in the same
manner as under current practice, consistent with the
protection of Security Sensitive Information. Nothing in this
section is intended to limit the access of other committees of
Congress to such information, and the Committee expects that
individuals receiving the unredacted copies of the reports will
protect the data identified in section 60138 of title 49,
United States Code, from public disclosure.
Section 25. Consultation with FERC as part of the pre-filing procedures
and permitting process for new natural gas pipeline
infrastructure
This section would require PHMSA to consult with the
Federal Energy Regulatory Commission (FERC) in the pre-filing
phase of FERC's permit consideration.
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. Authorization of appropriations
(a) For Grants to States.--There are authorized to be
appropriated to the Secretary to provide grants to States under
section 6106 [$1,000,000 for each of fiscal years 2012 through
2015] $1,060,000 for each of the fiscal years 2016 through
2019. Such funds shall remain available until expended.
(b) For Administration.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to
carry out sections 6103, 6104, and 6105 for fiscal years [2012
through 2015] 2016 through 2019.
TITLE 49. TRANSPORTATION
SUBTITLE VIII. PIPELINES
CHAPTER 601. SAFETY
Sec. 60101. Definitions
(a) General.--In this chapter--
* * * * * * *
(21) ``transporting gas''--
(A) means--
(i) the gathering, transmission, or
distribution of gas by pipeline, or the
storage of gas, in interstate or
foreign commerce; and
(ii) the movement of gas through
regulated gathering lines; but
(B) does not include the gathering of gas,
other than gathering through regulated
gathering lines, in those rural locations that
are located outside the limits of any
incorporated or unincorporated city, town, or
village, or any other designated residential or
commercial area (including a subdivision,
business, shopping center, or community
development) or any similar populated area that
the Secretary of Transportation determines to
be a nonrural area, except that the term
``transporting gas'' includes the movement of
gas through regulated gathering lines[.];
(22) ``transporting hazardous liquid''--
(A) means--
(i) the movement of hazardous liquid
by pipeline, or the storage of
hazardous liquid incidental to the
movement of hazardous liquid by
pipeline, in or affecting interstate or
foreign commerce; and
(ii) the movement of hazardous liquid
through regulated gathering lines; but
(B) does not include moving hazardous liquid
through--
(i) gathering lines (except regulated
gathering lines) in a rural area;
(ii) onshore production, refining, or
manufacturing facilities; or
(iii) storage or in-plant piping
systems associated with onshore
production, refining, or manufacturing
facilities;
(23) ``risk management'' means the systematic
application, by the owner or operator of a pipeline
facility, of management policies, procedures, finite
resources, and practices to the tasks of identifying,
analyzing, assessing, reducing, and controlling risk in
order to protect employees, the general public, the
environment, and pipeline facilities;
(24) ``risk management plan'' means a management plan
utilized by a gas or hazardous liquid pipeline facility
owner or operator that encompasses risk management;
[and]
(25) ``Secretary'' means the Secretary of
Transportation[.];
(26) ``small scale liquefied natural gas facility''
means an intrastate liquefied natural gas facility
(other than a peak shaving facility) that produces
liquefied natural gas for--
(A) use as a fuel in the United States; or
(B) transportation in the United States by a
means other than a pipeline facility; and
(27) ``underground natural gas storage facility''
means a gas pipeline facility that stores gas in an
underground facility, including--
(A) a depleted hydrocarbon reservoir;
(B) an aquifer reservoir; or
(C) a solution mined salt cavern reservoir.
* * * * * * *
Sec. 60103. Standards for liquefied natural gas pipeline facilities
[(a) Location Standards.--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, the Secretary shall consider the--
[(1) kind and use of the facility;
[(2) existing and projected population and
demographic characteristics of the location;
[(3) existing and proposed land use near the
location;
[(4) natural physical aspects of the location;
[(5) medical, law enforcement, and fire prevention
capabilities near the location that can cope with a
risk caused by the facility; and
[(6) need to encourage remote siting.]
(a) Location Standards.--
(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 or small scale liquefied natural gas facility.
(2) Liquefied natural gas facilities.--In prescribing
a minimum safety standard for deciding on the location
of a new liquefied natural gas facility, the Secretary
of Transportation shall consider--
(A) the kind and use of the facility;
(B) the existing and projected population and
demographic characteristics of the location;
(C) the existing and proposed land uses near
the location;
(D) the natural physical aspects of the
location;
(E) medical, law enforcement, and fire
prevention capabilities near the location that
can cope with a risk caused by the facility;
and
(F) the need to encourage remote siting.
(3) Small scale liquefied natural gas facilities.--
(A) In general.--Not later than 18 months
after the date of the enactment of the SAFE
PIPES Act, the Secretary of Transportation
shall prescribe minimum safety standards for
small scale liquefied natural gas facilities.
(B) Considerations.--In prescribing minimum
safety standards under this paragraph, the
Secretary shall consider--
(i) the value of establishing risk-
based approaches;
(ii) the benefit of incorporating
industry standards and best practices;
(iii) the need to encourage the use
of best available technology; and
(iv) the factors prescribed in
paragraph (2), as appropriate.
* * * * * * *
Sec. 60103A. Standards for underground natural gas storage facilities
(a) Minimum Uniform Safety Standards.--Not later than 2 years
after the date of the enactment of the SAFE PIPES Act, the
Secretary of Transportation, in consultation with the heads of
other relevant Federal agencies, shall issue minimum uniform
safety standards, incorporating, to the extent practicable,
consensus standards for the operation, environmental
protection, and integrity management of underground natural gas
storage facilities.
(b) Considerations.--In developing uniform safety standards
under subsection (a), the Secretary shall--
(1) consider the economic impacts of the regulations
on individual gas customers to the extent practicable;
(2) ensure that the regulations do not have a
significant economic impact on end users to the extent
practicable; and
(3) consider existing consensus standards.
(c) User Fees.--
(1) In general.--A fee shall be imposed on an entity
operating an underground natural gas storage facility
to which this section applies. Any such fee imposed
shall be collected before the end of the fiscal year to
which it applies.
(2) Means of collection.--The Secretary shall
prescribe procedures to collect fees under this
subsection. 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.
(3) Use of fees.--
(A) Account.--There is established an
underground natural gas storage facility safety
account in the Pipeline Safety Fund established
under section 60301, in the Treasury of the
United States.
(B) Use of fees.--A fee collected under this
subsection--
(i) shall be deposited in the
underground natural gas storage
facility safety account; and
(ii) if the fee is related to an
underground natural gas storage
facility, may be used only for an
activity related to underground natural
gas storage safety under this section.
(C) Limitation.--Amounts collected under this
subsection shall be made available only to the
extent provided in advance in an appropriation
law for an activity related to underground
natural gas storage safety.
(d) Rules of Construction.--
(1) In general.--Nothing in this section may be
construed to affect any Federal regulation relating to
gas pipeline facilities that is in effect on the day
before the date of enactment of the SAFE PIPES Act.
(2) Limitations.--Nothing in this section may be
construed to authorize the Secretary--
(A) to prescribe the location of an
underground natural gas storage facility; or
(B) to require the Secretary's permission to
construct a facility referred to in
subparagraph (A).
Sec. 60115. Technical safety standards committees
* * * * * * *
(b) Composition and Appointment.--
(1) The Technical Pipeline Safety Standards Committee
is composed of 15 members appointed by the Secretary of
Transportation after consulting with public and private
agencies concerned with the technical aspect of
transporting gas or operating a gas pipeline facility.
Each member must be experienced in the safety
regulation of transporting gas and of gas pipeline
facilities or technically qualified, by training,
experience, or knowledge in at least one field of
engineering applicable to transporting gas or operating
a gas pipeline facility, to evaluate gas pipeline
safety standards or risk management principles.
(2) The Technical Hazardous Liquid Pipeline Safety
Standards Committee is composed of 15 members appointed
by the Secretary after consulting with public and
private agencies concerned with the technical aspect of
transporting hazardous liquid or operating a hazardous
liquid pipeline facility. Each member must be
experienced in the safety regulation of transporting
hazardous liquid and of hazardous liquid pipeline
facilities or technically qualified, by training,
experience, or knowledge in at least one field of
engineering applicable to transporting hazardous liquid
or operating a hazardous liquid pipeline facility, to
evaluate hazardous liquid pipeline safety standards or
risk management principles.
(3) The members of each committee are appointed as
follows:
(A) 5 individuals selected from departments,
agencies, and instrumentalities of the United
States Government and of the States.
(B) 5 individuals selected from the natural
gas or hazardous liquid industry, as
appropriate, after consulting with industry
representatives.
(C) 5 individuals selected from the general
public.
(4)(A) Two of the individuals selected for each
committee under paragraph (3)(A) of this subsection
must be [State commissioners. The Secretary shall
consult with the national organization of State
commissions before selecting those 2 individuals.]
State officials. The Secretary shall consult with
national organizations representing State commissioners
or governors when making a selection under this
subparagraph.
(B) At least 3 of the individuals selected
for each committee under paragraph (3)(B) of
this subsection must be currently in the active
operation of natural gas pipelines or hazardous
liquid pipeline facilities, as appropriate. At
least 1 of the individuals selected for each
committee under paragraph (3)(B) shall have
education, background, or experience in risk
assessment and cost-benefit analysis. The
Secretary shall consult with the national
organizations representing the owners and
operators of pipeline facilities before
selecting individuals under paragraph (3)(B).
(C) Two of the individuals selected for each
committee under paragraph (3)(C) of this
subsection must have education, background, or
experience in environmental protection or
public safety. At least 1 of the individuals
selected for each committee under paragraph
(3)(C) shall have education, background, or
experience in risk assessment and cost-benefit
analysis. At least one individual selected for
each committee under paragraph (3)(C) may not
have a financial interest in the pipeline,
petroleum, or natural gas industries.
(D) None of the individuals selected for a
committee under paragraph (3)(C) may have a
significant financial interest in the pipeline,
petroleum, or gas industry.
* * * * * * *
Sec. 60124. Biennial reports
(a) Submission and Contents.--Not later than August 15, 1997,
and every 2 years thereafter, the Secretary of Transportation
shall submit to Congress a report on carrying out this chapter
for the 2 immediately preceding calendar years for gas and a
report on carrying out this chapter for such period for
hazardous liquid. Each report shall include the following
information about the prior year for gas or hazardous liquid,
as appropriate:
(1) a thorough compilation of the leak repairs,
accidents, and casualties and a statement of cause when
investigated and established by the National
Transportation Safety Board.
(2) a list of applicable pipeline safety standards
prescribed under this chapter including identification
of standards prescribed during the year.
(3) a summary of the reasons for each waiver granted
under section 60118(c) and (d) of this title.
(4) an evaluation of the degree of compliance with
applicable safety standards, including a list of
enforcement actions and compromises of alleged
violations by location and company name.
(5) a summary of outstanding problems in carrying out
this chapter, in order of priority.
(6) an analysis and evaluation of--
(A) research activities, including their
policy implications, completed as a result of
the United States Government and private
sponsorship; [and]
(B) technological progress in safety
achieved[.]; and
(C) research activities in collaboration with
non-Federal entities, including the intended
improvements to safety technology, inspection
technology, operator response time, and
emergency responder incident response time.
* * * * * * *
Sec. 60125. Authorization of appropriations
(a) Gas and Hazardous Liquid.--
(1) In general.--To carry out the provisions of this
chapter related to gas and hazardous liquid and section
12 of the Pipeline Safety Improvement Act of 2002 (49
U.S.C. 60101 note; Public Law 107-355), [there is
authorized to be appropriated to the Department of
Transportation for each of fiscal years 2012 through
2015, from fees collected under section 60301,
$90,679,000, of which $4,746,000 is for carrying out
such section 12 and $36,194,000 is for making grants.]
there are authorized to be appropriated to the
Department of Transportation from fees collected under
section 60301--
(A) $127,060,000 for fiscal year 2016, of
which $9,325,000 shall be expended for carrying
out such section 12 and $42,515,000 shall be
expended for making grants;
(B) $129,671,000 for fiscal year 2017, of
which $9,418,000 shall be expended for carrying
out such section 12 and $42,941,000 shall be
expended for making grants;
(C) $132,334,000 for fiscal year 2018, of
which $9,512,000 shall be expended for carrying
out such section 12 and $43,371,000 shall be
expended for making grants; and
(D) $135,051,000 for fiscal year 2019, of
which $9,607,000 shall be expended for carrying
out such section 12 and $43,805,000 shall be
expended for making grants.
(2) Trust fund amounts.--In addition to the amounts
authorized to be appropriated by paragraph (1), [there
is authorized to be appropriated for each of fiscal
years 2012 through 2015 from the Oil Spill Liability
Trust Fund to carry out the provisions of this chapter
related to hazardous liquid and section 12 of the
Pipeline Safety Improvement Act of 2002 (49 U.S.C.
60101 note; Public Law 107-355), $18,573,000, of which
$2,174,000 is for carrying out such section 12 and
$4,558,000 is for making grants.] there are 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) $19,890,000 for fiscal year 2016, of
which $3,108,000 shall be expended for carrying
out such section 12 and $8,708,000 shall be
expended for making grants;
(B) $20,288,000 for fiscal year 2017, of
which $3,139,000 shall be expended for carrying
out such section 12 and $8,795,000 shall be
expended for making grants;
(C) $20,694,000 for fiscal year 2018, of
which $3,171,000 shall be expended for carrying
out such section 12 and $8,883,000 shall be
expended for making grants; and
(D) $21,108,000 for fiscal year 2019, of
which $3,203,000 shall be expended for carrying
out such section 12 and $8,972,000 shall be
expended for making grants.
(b) Emergency Response Grants.--
(1) In general.--The Secretary may establish a
program for making grants to State, county, and local
governments in high consequence areas, as defined by
the Secretary, for emergency response management,
training, and technical assistance. To the extent that
such grants are used to train emergency responders,
such training shall ensure that emergency responders
have the ability to protect nearby persons, property,
and the environment from the effects of accidents or
incidents involving gas or hazardous liquid pipelines,
in accordance with existing regulations.
(2) Authorization of appropriations.--There is
authorized to be appropriated $10,000,000 for each of
fiscal years [2012 through 2015] 2016 through 2019 to
carry out this subsection.
(c) Crediting Appropriations for Expenditures for Training.--
The Secretary may credit to an appropriation authorized under
subsection (a) amounts received from sources other than the
Government for reimbursement for expenses incurred by the
Secretary in providing training.
Sec. 60130. Pipeline safety information grants to communities
* * * * * * *
(c) Authorization of Appropriations.--There is authorized to
be appropriated to the Secretary of Transportation for carrying
out this section $1,500,000 for each of fiscal years [2012
through 2015] 2016 through 2019. Such amounts shall not be
derived from user fees collected under section 60301.
Sec. 60134. State damage prevention programs
* * * * * * *
(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]
2016 through 2019. Such funds shall remain available until
expended.
PIPELINE SAFETY IMPROVEMENT ACT OF 2002
[Public Law 107-355; 116 Stat. 2997]
SEC. 12. PIPELINE INTEGRITY, SAFETY, AND RELIABILITY RESEARCH AND
DEVELOPMENT.
[49 U.S.C. 60101 note]
* * * * * * *
(f) Pipeline Integrity Program.--Of the amounts available in
the Oil Spill Liability Trust Fund established by section 9509
of the Internal Revenue Code of 1986 (26 U.S.C. 9509),
$3,000,000 shall be transferred to the Secretary of
Transportation, as provided in appropriation Acts, to carry out
programs for detection, prevention, and mitigation of oil
spills for each of the fiscal years [2012 through 2015] 2016
through 2019.
* * * * * * *
[all]