[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5782 Reported in House (RH)]






                                                 Union Calendar No. 429
109th CONGRESS
  2d Session
                                H. R. 5782

                  [Report No. 109-717, Parts I and II]

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2006

    Mr. Young of Alaska (for himself and Mr. Petri) introduced the 
 following bill; which was referred to the Committee on Transportation 
  and Infrastructure, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

                            December 5, 2006

Additional sponsors: Mr. Baker, Mr. Boustany, Mr. Reichert, Mr. Kuhl of 
New York, Mr. Hayes, Mr. Bachus, Mr. Duncan, Mrs. Schmidt, Mr. Kennedy 
of Minnesota, Mr. LaTourette, Mr. Ehlers, Mr. LoBiondo, Mr. Porter, Mr. 
  Poe, Mr. Fortuno, Mr. Mack, Mr. Hoekstra, Mr. Mario Diaz-Balart of 
    Florida, Mr. McCotter, Mr. Oberstar, Mr. DeFazio, and Mr. Murphy

                            December 5, 2006

 Reported from the Committee on Transportation and Infrastructure with 
                              an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            December 5, 2006

 Reported from the Committee on Energy and Commerce with an amendment, 
   committed to the Committee of the Whole House on the State of the 
                    Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                           in boldface roman]
 [For text of introduced bill, see copy of bill as introduced on July 
                               13, 2006]

_______________________________________________________________________

                                 A BILL



 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress 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 Safety 
Improvement Act of 2006''.
    (b) Amendment of Title 49, United States Code.--Except as otherwise 
expressly provided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or a repeal of, a section or 
other provision, the reference shall be considered to be made to a 
section or other provision of title 49, United States Code.
    (c) Table of Contents.--

Sec. 1. Short title; amendment of title 49, United States Code; table 
                            of contents.
Sec. 2. Pipeline safety and damage prevention.
Sec. 3. Distribution integrity management program rulemaking deadline.
Sec. 4. Pipeline control room management.
Sec. 5. Low-stress pipelines.
Sec. 6. Authorization of appropriations.
Sec. 7. Standards to implement NTSB recommendations.
Sec. 8. Accident reporting form.
Sec. 9. Leak detection technology study.
Sec. 10. Petroleum transportation capacity study.
Sec. 11. Emergency waivers.
Sec. 12. Pipeline safety information grants to communities.
Sec. 13. Memorandum of understanding.

SEC. 2. PIPELINE SAFETY AND DAMAGE PREVENTION.

    (a) One-Call Civil Enforcement.--
            (1) In general.--Section 60114 is amended by adding at the 
        end the following:
    ``(d) Enforcement.--Any person who engages in excavation activity 
without first using an available one-call notification system to 
establish the location of underground pipeline facilities in the 
excavation area or who disregards location information or markings 
established by an operator of a pipeline facility, and any operator of 
a pipeline facility who fails to respond to a location request in order 
to prevent damage to the pipeline or fails to take reasonable steps, in 
response to such a request, to ensure accurate marking of the location 
of the pipeline in order to prevent damage to the pipeline, shall be 
subject to a civil action under section 60120 or assessment of a civil 
penalty under section 60122.
    ``(e) Limitation.--The Secretary may not conduct an enforcement 
proceeding under subsection (d) within the boundaries of a State that 
has the authority to impose penalties described in section 60134(b)(7) 
against persons who violate that State's damage prevention laws and is 
imposing such penalties.''.
            (2) Conforming amendment.--Section 60122(a)(1) is amended 
        in the first sentence by inserting ``, 60114(d),'' after 
        ``section 60114(b)''.
    (b) State Damage Prevention Programs.--
            (1) Certification.--Section 60105(b)(4) is amended to read 
        as follows:
            ``(4) has agreed to take actions toward establishing a 
        program designed to prevent damage by excavation, demolition, 
        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) Requirement.--Chapter 601 is amended by adding at the 
        end the following new section:
``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 
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)(A) has an annual certification in accordance with 
        section 60105 for such fiscal year; or
            ``(B) has an agreement with the Secretary in accordance 
        with section 60106; and
            ``(2) has agreed to take actions toward establishing an 
        effective damage prevention program that meets 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) 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 authority to receive the 
grant, the Secretary shall review the State's damage prevention program 
to determine its effectiveness.
    ``(e) Grants for Effective Programs.--For a program of a State 
authority the Secretary determines to be effective, the Secretary may 
make a grant to the State authority for the cost of the personnel, 
equipment, and activities the State authority reasonably requires 
during the next calendar year to 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 under this 
section may not be used for lobbying or in direct support of 
litigation.
    ``(h) Funding.--To carry out this section, the Secretary shall make 
available (from amounts appropriated to the Secretary under section 
60125(b) for each of fiscal years 2008 through 2010) the following 
respective amounts:
            ``(1) $1,500,000 for fiscal year 2008.
            ``(2) $1,750,000 for fiscal year 2009.
            ``(3) $2,000,000 for fiscal year 2010.
Such funds shall remain available until expended.''.
            (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''.

SEC. 3. 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 1 year after the 
        date of enactment of this subsection, 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.--The minimum standards shall 
        include criteria for requiring operators of natural gas 
        distribution systems--
                    ``(A) to install excess flow valves on single-
                family residential service lines that are installed or 
                replaced after the date of enactment of this subsection 
                on the basis of feasibility and risk analysis; and
                    ``(B) to report to the Secretary annually 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 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.''.

SEC. 4. PIPELINE CONTROL ROOM MANAGEMENT.

    (a) Standards.--Not later than 18 months after the date of 
enactment of this Act, the Secretary of Transportation shall issue 
regulations establishing standards for managing gas and hazardous 
liquid pipelines to reduce risks associated with human factors, 
including fatigue.
    (b) Risk Evaluation.--In carrying out this section, the Secretary 
may require operators of gas and hazardous liquid pipelines to evaluate 
the risks associated with human factors, including fatigue, and take 
measures to reduce such risks with respect to their pipelines.
    (c) Applicability.--The Secretary shall determine which pipelines 
are subject to the standards issued under this section.
    (d) Risk Management.--Each operator of a pipeline that the 
Secretary determines is subject to the standards established by the 
Secretary under this section shall manage the controllers of the 
pipeline in accordance with those standards.

SEC. 5. LOW-STRESS PIPELINES.

    Section 60102(k) is amended by striking the subsection designation 
and heading and inserting the following:
    ``(k) Low-Stress Hazardous Liquid Pipelines.--
            ``(1) Minimum standards.--Not later than 1 year after the 
        date of enactment of this paragraph, the Secretary shall issue 
        minimum standards for the transportation of hazardous liquids 
        by low-stress pipelines located in proximity to areas unusually 
        sensitive to environmental damage as defined by the Secretary 
        under section 60109(b) and by regulation.
            ``(2) Low-stress pipeline defined.--For purposes of this 
        subsection (other than paragraph (5)), a `low-stress 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 of the 
        pipeline and has a diameter of greater than 8\5/8\ inches.
            ``(3) Applicability.--The Secretary shall determine which 
        low-stress pipelines are subject to the minimum standards 
        issued under this subsection.
            ``(4) Requirement.--Each operator of a low-stress pipeline 
        that the Secretary determines is subject to the minimum 
        standards issued by the Secretary under this subsection shall 
        operate the pipeline in accordance with those standards.
            ``(5) Prohibition against exception.--''.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) Gas and Hazardous Liquid.--Section 60125(a) is amended to read 
as follows:
    ``(a) Gas and Hazardous Liquid.--To carry out this chapter (except 
for section 60107) related to gas and hazardous liquid, the following 
amounts are authorized to be appropriated to the Department of 
Transportation:
            ``(1) For fiscal year 2007, $55,497,000, of which 
        $39,872,000 is to be derived from user fees collected under 
        section 60301 and $15,625,000 is to be derived from the Oil 
        Spill Liability Trust Fund established by section 9509 of the 
        Internal Revenue Code of 1986.
            ``(2) For fiscal year 2008, $57,997,000, of which 
        $42,651,000 is to be derived from such fees and $15,346,000 is 
        to be derived from the Fund.
            ``(3) For fiscal year 2009, $60,482,000, of which 
        $44,839,000 is to be derived from such fees and $16,003,000 is 
        to be derived from the Fund.
            ``(4) For fiscal year 2010, $62,375,000, of which 
        $46,444,000 is to be derived from such fees and $15,931,000 is 
        to be derived from the Fund.''.
    (b) State Grants.--Section 60125(b)(1) is amended to read as 
follows: ``(1) To carry out section 60107, the following amounts are 
authorized to be appropriated to the Department of Transportation:
            ``(A) For fiscal year 2007, $20,238,000, of which 
        $17,053,000 is to be derived from user fees collected under 
        section 60301 and $3,185,000 is to be derived from the Oil 
        Spill Liability Trust Fund.
            ``(B) For fiscal year 2008, $23,221,000, of which 
        $19,567,000 is to be derived from such fees and $3,654,000 is 
        to be derived from the Fund. Of the amounts so appropriated, 
        $1,500,000 shall be available for grants to States under 
        section 60134.
            ``(C) For fiscal year 2009, $24,513,000, of which 
        $20,656,000 is to be derived from such fees and $3,857,000 is 
        to be derived from the Fund. Of the amount so appropriated, 
        $1,750,000 shall be available for grants to States under 
        section 60134.
            ``(D) For fiscal year 2010, $25,855,000, of which 
        $21,786,000 is to be derived from such fees and $4,069,000 is 
        to be derived from the Fund. Of the amount so appropriated, 
        $2,000,000 shall be available for grants to States under 
        section 60134.''.
    (c) Conforming Amendments.--Section 60125 is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.
    (d) Emergency Response Grants.--Section 60125(c)(2) (as 
redesignated by subsection (c)(2) of this section) is amended by 
striking ``2003 through 2006'' and inserting ``2007 through 2010''.
    (e) 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''.

SEC. 7. STANDARDS TO IMPLEMENT NTSB RECOMMENDATIONS.

    Not later than 18 months after the date of enactment of this Act, 
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. 8. ACCIDENT REPORTING FORM.

    Not later than 12 months after the date of enactment of this Act, 
the Secretary of Transportation shall amend accident reporting forms to 
require operators gas and hazardous liquid pipelines to provide data 
related to controller fatigue.

SEC. 9. LEAK DETECTION TECHNOLOGY STUDY.

    Not later than 12 months after the date of enactment of this Act, 
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 onging or intermittent, and what can 
be done to foster development of better technologies as well as address 
existing technological inadequacies.

SEC. 10. PETROLEUM TRANSPORTATION CAPACITY STUDY.

    (a) In General.--Chapter 601 (as amended by section 2(b)(2) of this 
Act) is further amended by adding at the end the following:
``Sec. 60135. Petroleum product transportation capacity study.
    ``(a) In General.--The Secretary of Transportation may conduct 
analyses of the domestic transport of petroleum products by pipeline. 
Such analyses should identify areas of the United States where 
shortages of pipeline capacity and reliability concerns exist, where 
such shortages have or are anticipated to contribute to significant 
increases in the price of petroleum products, or where unplanned loss 
of individual pipelines may cause shortages of petroleum products or 
price disruptions.
    ``(b) Consultation.--In preparing any analysis under this section, 
the Secretary may consult with other government agencies and public- 
and private-sector experts in pipeline and other forms of petroleum 
product transportation, energy consumption, capacity, population and 
economic development.
    ``(c) 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 section 2(b)(3) of this Act) is amended by adding after the item 
relating to section 60134 the following:

``60135. Petroleum product transportation capacity study.''.

SEC. 11. EMERGENCY WAIVERS.

    Section 60118(c) is amended to read as follows:
    ``(c) Waivers by Secretary.--
            ``(1) Nonemergency waivers.--
                    ``(A) In general.--On application of a person 
                owning or operating a pipeline facility, the Secretary 
                by order may waive compliance with any part of an 
                applicable standard prescribed under this chapter on 
                terms the Secretary considers appropriate if the waiver 
                is not inconsistent with pipeline safety.
                    ``(B) Hearing.--The Secretary may act on a 
                nonemergency waiver under this paragraph only after 
                notice and an opportunity for a hearing.
            ``(2) Emergency waivers.--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 the waiver is necessary to address an actual or impending 
        emergency involving pipeline transportation, including 
        emergencies caused by natural or manmade disasters.
            ``(3) Statement of reasons.--The Secretary shall state in 
        an order issued under this subsection the reasons for granting 
        the waiver.''.

SEC. 12. PIPELINE SAFETY INFORMATION GRANTS TO COMMUNITIES.

    Section 60130(d) is amended by striking ``2006'' and inserting 
``2010''.

SEC. 13. MEMORANDUM OF UNDERSTANDING.

    Not later than 45 days after the date of enactment of this Act, the 
Secretary of Transportation shall develop and execute an annex to the 
memorandum of understanding between the Secretary and the Secretary of 
Homeland Security, dated September 28, 2004, to define and clarify the 
role and responsibility of the Department of Transportation regarding 
pipeline security, including the processes that the Department will 
follow to promote communications, efficiency, and nonduplication of 
effort.

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

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

Sec. 1. Short title; amendment of title 49, United States Code; table 
                            of contents.
Sec. 2. Pipeline safety and damage prevention.
Sec. 3. Distribution integrity management program rulemaking deadline.
Sec. 4. Authorization of appropriations.

SEC. 2. PIPELINE SAFETY AND DAMAGE PREVENTION.

    (a) One Call Civil Enforcement.--(1) Section 60114 is amended by 
adding at the end the following new subsections:
    ``(d) Prohibition.--A person who engages in demolition, excavation, 
tunneling, or construction--
            ``(1) may not engage in such demolition, excavation, 
        tunneling, or construction activity in a State that has adopted 
        a one-call notification system without first using that system 
        to establish the location of underground facilities in the 
        demolition, excavation, tunneling, or construction area;
            ``(2) may not engage in such demolition, excavation, 
        tunneling, or construction activity in disregard of location 
        information or markings established by a pipeline facility 
        operator pursuant to subsection (b);
            ``(3) may not fail to take reasonable steps to ensure safe 
        demolition, excavation, tunneling, or construction to prevent 
        damage to a pipeline; and
            ``(4) if the person damages, or becomes aware of damage to, 
        a pipeline facility and such damage may endanger life or cause 
        serious bodily harm or damage to property, may not fail to 
        promptly report the damage to the owner or operator of the 
        facility and, if the damage results in the escape of any 
        flammable, toxic, or corrosive gas or liquid, may not fail to 
        promptly report to other appropriate authorities by calling the 
        911 emergency telephone number.
    ``(e) Limitation.--The Secretary may not conduct an enforcement 
proceeding under subsection (d) within the boundaries of a State that 
has the authority to impose penalties described in section 60134(b)(7) 
against persons who violate that State's damage prevention laws, unless 
the Secretary has determined that the State's enforcement is inadequate 
to protect safety, consistent with this chapter.''.
    (2) Section 60122(a)(1) is amended by striking ``60114(b)'' and 
inserting ``60114(b) or (d)''.
    (b) State Damage Prevention Programs.--(1) Section 60105(b)(4) is 
amended to read as follows:
            ``(4) is encouraging and promoting the establishment of a 
        program designed to prevent damage by demolition, excavation, 
        tunneling, or construction activity to the pipeline facilities 
        to which the certification applies that subjects persons who 
        violate the applicable requirements of that program to civil 
        penalties and other enforcement actions that are substantially 
        the same as are provided under this chapter, and addresses the 
        elements in section 60134(b);''.
    (2) Chapter 601 is amended by adding at the end the following new 
section:
``Sec. 60134. State damage prevention programs.
    ``(a) Eligibility.--A State authority (including a municipality if 
the agreement under section 60106(a) or (b) applies to intrastate gas 
pipeline transportation) shall be eligible for a grant under this 
section only if--
            ``(1) it has an annual certification under section 60105 or 
        an agreement under section 60106; and
            ``(2) either--
                    ``(A) it is from a State that has an effective 
                damage prevention program that meets the requirements 
                of subsection (b); or
                    ``(B) it demonstrates that it has made substantial 
                progress toward establishing such a program, and that 
                such program will meet the requirements of subsection 
                (b).
    ``(b) Damage Prevention Program Elements.--An effective damage 
prevention program includes the following elements:
            ``(1) Participation by operators, excavators, and other 
        stakeholders in the development and implementation of methods 
        for establishing and maintaining effective communications among 
        stakeholders from receipt of a notification of demolition, 
        excavation, tunneling, or construction until successful 
        completion of the demolition, excavation, tunneling, or 
        construction, as appropriate.
            ``(2) A process for fostering and ensuring the support and 
        partnership of stakeholders, including excavators, operators, 
        locators, designers, and local government in all phases of the 
        program.
            ``(3) A process for reviewing the adequacy of a pipeline 
        operator's internal performance measures regarding persons 
        performing locating services and quality assurance programs.
            ``(4) Participation by operators, excavators, the one-call 
        center, the enforcing agency, and other stakeholders in the 
        development and implementation of effective training programs 
        for the employees of operators, excavators, and locators.
            ``(5) A process for fostering and ensuring active 
        participation by all stakeholders in public education for 
        damage prevention activities.
            ``(6) A process for resolving disputes that defines the 
        State authority's role as a partner and facilitator to resolve 
        issues.
            ``(7) Enforcement of State damage prevention laws and 
        regulations for all aspects of the demolition, excavation, 
        tunneling, or construction process, including public education, 
        and the use of civil penalties for violations assessable by the 
        appropriate State authority.
            ``(8) A process for fostering and promoting the use, by all 
        appropriate stakeholders, of improving technologies that may 
        enhance communications, underground pipeline locating 
        capability, and gathering and analyzing information about the 
        accuracy and effectiveness of locating programs.
            ``(9) A process for review and analysis of the 
        effectiveness of each program element, including a means for 
        implementing improvements identified by such program reviews.
    ``(c) Grants to States.--
            ``(1) In general.--The Secretary may make a grant of 
        financial assistance to a State authority that is eligible 
        under this section to assist in improving the overall quality 
        and effectiveness of a damage prevention program of a State. In 
        making grants under this section, the Secretary shall take into 
        consideration the commitment of each State to ensuring the 
        effectiveness of its damage prevention program, including 
        legislative and regulatory actions taken by the State.
            ``(2) Application.--If a State authority files an 
        application for a grant under this section not later than 
        September 30 of a calendar year, the Secretary of 
        Transportation shall review the State's damage prevention 
        program to determine its effectiveness. For programs determined 
        to be effective, the Secretary may make a grant of financial 
        assistance for the cost of the personnel, equipment, and 
        activities the authority reasonably requires during the next 
        calendar year to carry out an effective damage prevention 
        enforcement program. A grant made under this section is not 
        subject to the section 60107(a) limitation on the maximum 
        percentage of funds to be paid by the Secretary. Funds provided 
        under this section may not be used for lobbying or in direct 
        support of litigation.''.
    (3) In the table of sections of chapter 601, the following item is 
added at the end:

``60134. State damage prevention programs.''.
    (c) State Pipeline Safety Grants.--Section 60107(a) is amended by 
striking ``not more than 50 percent'' and inserting ``not more than 80 
percent''.
    (d) Damage Prevention Technology Development.--Section 60114 (as 
amended by this section) is further amended by adding at the end the 
following new subsection:
    ``(f) Technology Development Grants.--To the extent and in the 
amount provided in advance in appropriations acts, the Secretary may 
make grants to any organization or entity (not including for-profit 
entities) for the development of technologies that will facilitate the 
prevention of pipeline damage caused by demolition, excavation, 
tunneling, or construction activities, with emphasis on wireless and 
global positioning technologies having potential for use in connection 
with notification systems and underground facility locating and marking 
services. Funds provided under this subsection may not be used for 
lobbying or in direct support of litigation. The Secretary may also 
support such technology development through cooperative agreements with 
trade associations, academic institutions, and other organizations.''.
    (e) Public Education and Awareness.--
            (1) Amendment.--Chapter 61 of title 49, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 6109. Public education and awareness.
    ``(a) Grant Authority.--The Secretary shall make a grant to an 
appropriate entity for promoting public education and awareness with 
respect to the 811 national excavation damage prevention phone number.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $1,000,000 for fiscal year 2007 for 
carrying out this section.''.
            (2) Conforming amendment.--The table of sections of chapter 
        61 of title 49, United States Code, is amended by adding at the 
        end the following new item:

``6109. Public education and awareness.''.
    (f) Safety Orders.--Section 60117(l) is amended to read as follows:
    ``(l) Safety Orders.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Pipeline Safety and Improvement Act of 2006, 
        the Secretary shall issue regulations providing that, after 
        notice and opportunity for a hearing, if the Secretary 
        determines that a pipeline facility has a condition that poses 
        a pipeline integrity risk to public safety, property, or the 
        environment, the Secretary may order the operator of the 
        facility to take necessary corrective action, including 
        physical inspection, testing, repair, replacement, or other 
        appropriate action, to remedy that condition.
            ``(2) Considerations.--In making a determination under 
        paragraph (1), the Secretary shall, if relevant, and pursuant 
        to the regulations issued under paragraph (1), consider--
                    ``(A) the considerations specified in section 
                60112(b);
                    ``(B) the likelihood that the condition will impair 
                the serviceability of a pipeline;
                    ``(C) the likelihood that the condition will worsen 
                over time; and
                    ``(D) the likelihood that the condition is present 
                or could develop on other areas of the pipeline.''.
    (g) Integrity Program Enforcement.--Section 60109(c)(9)(A)(iii) is 
amended to read as follows:
                            ``(iii) Inadequate programs.--If the 
                        Secretary determines that a risk analysis or 
                        integrity management program does not comply 
                        with the requirements of this subsection or 
                        regulations issued as described in paragraph 
                        (2), has not been adequately implemented, or is 
                        inadequate for the safe operation of a pipeline 
                        facility, the Secretary may conduct proceedings 
                        under sections 60108(a), 60112, 60118(a) and 
                        (b), 60120, 60122, or any other section of this 
                        chapter.''.
    (h) Low-Stress Pipelines.--Section 60102(k) is amended to read as 
follows:
    ``(k) Low-Stress Hazardous Liquid Pipelines.--
            ``(1) Minimum standards.--Not later than 12 months after 
        the date of enactment of the Pipeline Safety Improvement Act of 
        2006, the Secretary shall issue regulations subjecting low-
        stress hazardous liquid pipelines to the same standards and 
        regulations as other hazardous liquid pipelines, except as 
        provided in paragraph (3). The implementation of the applicable 
        standards and regulatory requirements may be phased in. The 
        regulations issued under this paragraph shall not apply to 
        gathering lines.
            ``(2) General prohibition against low internal stress 
        exception.--Except as provided in paragraph (3), the Secretary 
        may not provide an exception to the requirements of this 
        chapter for a hazardous liquid pipeline because the pipeline 
        operates at low internal stress.
            ``(3) Limited exceptions.--The Secretary shall provide or 
        continue in force exceptions to this subsection for low-stress 
        hazardous liquid pipelines that--
                    ``(A) are subject to safety regulations of the 
                United States Coast Guard; or
                    ``(B) serve refining, manufacturing, or truck, 
                rail, or vessel terminal facilities, if the pipeline is 
                less than 1 mile long (measured outside the facility 
                grounds) and does not cross an offshore area or a 
                waterway currently used for commercial navigation,
        until regulations issued under paragraph (1) become effective, 
        after which the Secretary may retain or remove those exceptions 
        as appropriate.
            ``(4) Relationship to other laws.--Nothing in this 
        subsection shall be construed to prohibit or otherwise affect 
        the applicability of any other statutory or regulatory 
        exemption to any hazardous liquid pipeline.
            ``(5) Definition.--For purposes of this subsection, the 
        term `low-stress hazardous liquid pipeline' means a hazardous 
        liquid pipeline that is operated in its entirety at a stress 
        level of 20 percent or less of the specified minimum yield 
        strength of the line pipe.
            ``(6) Effective date.--The requirements of this subsection 
        shall not take effect as to low-stress hazardous liquid 
        pipeline operators before the effective date of the rules 
        promulgated by the Secretary under this subsection.''.
    (i) Corrosion Control Regulations.--The Secretary of 
Transportation, in consultation with the Technical Hazardous Liquid 
Pipeline Safety Standards Committee and other appropriate entities, 
shall review the internal corrosion control regulations set forth in 
subpart H of part 195 of title 49 of the Code of Federal Regulations to 
determine if such regulations are currently adequate to ensure that the 
pipeline facilities subject to such regulations will not present a 
hazard to public safety or the environment. The Secretary shall submit 
a report to the Congress within one year after the date of enactment of 
this Act containing the results of such review, and may modify such 
regulations if necessary and appropriate.
    (j) Critical Energy Infrastructure Study.--The Secretary of Energy, 
in consultation with the Secretary of Transportation, shall analyze the 
domestic transport of crude oil and other petroleum products by 
pipeline. Such analysis shall identify areas where reliability concerns 
exist or where failure or unplanned loss of individual pipeline 
facilities may cause shortages of crude oil or other petroleum products 
or price disruptions. Not later than one year after the date of 
enactment of this Act, the Secretaries shall submit a report to the 
Congress setting forth their recommendations to reduce the likelihood 
of such shortages or disruptions.
    (k) Natural Gas Pipelines.--The Secretary shall review and comment 
on the Comptroller General report issued under section 14(d)(1) of the 
Pipeline Safety Improvement Act of 2002 (49 U.S.C. 60109 note), and not 
later than 60 days after the date of enactment of this Act, transmit to 
the Congress any legislative recommendations the Secretary considers 
necessary and appropriate to implement the conclusions of that report.
    (l) Technical Assistance Grants.--Section 60130 is amended--
            (1) in subsection (a)(1) by striking ``The Secretary shall 
        establish competitive'' and insert ``No grants may be awarded 
        under section 60114(e) until the Secretary has established 
        competitive'';
            (2) by redesignating paragraph (2) of subsection (a) as 
        paragraph (4);
            (3) by inserting after paragraph (1) of subsection (a) the 
        following new paragraphs:
            ``(2) Demonstration grants.--At least the first 3 grants 
        awarded under this section shall be demonstration grants for 
        the purpose of demonstrating and evaluating the utility of 
        grants under this section. Each such demonstration grant shall 
        not exceed $25,000.
            ``(3) Dissemination of technical findings.--Each recipient 
        of a grant under this section shall ensure that the technical 
        findings made possible by the grants are made available to the 
        relevant operators, and that open communication between the 
        grant recipients, local operators, local communities, and other 
        interested parties is encouraged.''; and
            (4) in subsection (d) by striking ``2006'' and inserting 
        ``2010''.
    (m) Enforcement Transparency.--(1) Chapter 601, as amended by this 
section, is amended by adding at the end the following new section:
``Sec. 60135. Enforcement transparency.
    ``(a) In General.--Not later than 12 months after the date of 
enactment of this section, the Secretary shall--
            ``(1) provide a monthly updated summary to the public of 
        all gas and hazardous liquid pipeline enforcement actions taken 
        by the Secretary or the Pipeline and Hazardous Materials Safety 
        Administration, from the time a notice commencing an 
        enforcement action is issued until the enforcement action is 
        final. Each summary shall include identification of the 
        operator involved in the enforcement activity, the type of 
        alleged violation, the penalty or penalties proposed, any 
        changes in case status since the previous summary, the final 
        assessment amount of each penalty, and the reasons for a 
        reduction in the proposed penalty, if appropriate; and
            ``(2) provide a mechanism by which a pipeline operator 
        named in an enforcement action may make information, 
        explanations, or documents it believes are responsive to the 
        enforcement action available to the public.
    ``(b) Electronic Posting.--Each summary required under this section 
shall be made available to the public via posting by electronic means.
    ``(c) Relationship to FOIA.--Nothing in this section shall be 
construed to require disclosure of information or records that would be 
exempt from disclosure under section 552 of title 5, United States Code 
(commonly known as the Freedom of Information Act).''.
    (2) In the table of sections of chapter 601, as amended by this 
section, the following item is added at the end:

``60135. Enforcement transparency.''.
    (n) Cost Reimbursements.--Section 60117 is amended by adding at the 
end the following new subsection:
    ``(m) Cost Recovery for Design Reviews.--If the Secretary conducts 
facility design safety reviews in connection with a proposal to 
construct, expand, or operate a liquefied natural gas pipeline 
facility, the Secretary may require the person requesting such reviews 
to pay the associated staff costs relating to such reviews incurred by 
the Secretary, such funds to be deposited into the pipeline safety 
fund. Funds deposited pursuant to this section are authorized to be 
appropriated for the purposes set forth in section 60301(d). The 
Secretary may assess such costs in any reasonable manner.''.
    (o) Direct Line Sales.--Section 60101(a) is amended--
            (1) by amending paragraph (6) to read as follows:
            ``(6) `interstate gas pipeline facility' means a gas 
        pipeline facility--
                    ``(A) used to transport gas; and
                    ``(B) subject to the jurisdiction of the Commission 
                under the Natural Gas Act (15 U.S.C. 717 et seq.);''; 
                and
            (2) by amending paragraph (9) to read as follows:
            ``(9) `intrastate gas pipeline facility' means a gas 
        pipeline facility and transportation of gas within a State not 
        subject to the jurisdiction of the Commission under the Natural 
        Gas Act (15 U.S.C. 717 et seq.);''.

SEC. 3. DISTRIBUTION INTEGRITY MANAGEMENT PROGRAM RULEMAKING DEADLINE.

    Section 60109 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(e) Distribution Integrity Management Programs.--Not later than 1 
year after the date of enactment of this subsection, the Secretary 
shall prescribe minimum standards for integrity management programs for 
distribution pipelines.''.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) Section 60125(a) is amended to read as follows:
    ``(a) Gas and Hazardous Liquid.--To carry out this chapter (except 
for section 60107) related to gas and hazardous liquid, the following 
amounts are authorized to be appropriated to the Secretary, from fees 
collected under section 60301 in each respective year, and from the Oil 
Spill Liability Trust Fund:
            ``(1) For fiscal year 2007, $55,497,000, of which 
        $39,872,000 shall be from fees and $15,625,000 shall be from 
        the Fund.
            ``(2) For fiscal year 2008, $57,997,000, of which 
        $42,651,000 shall be from fees and $15,346,000 shall be from 
        the Fund.
            ``(3) For fiscal year 2009, $60,482,000, of which 
        $44,839,000 shall be from fees and $15,643,000 shall be from 
        the Fund.
            ``(4) For fiscal year 2010, $62,375,000, of which 
        $46,444,000 shall be from fees and $15,931,000 shall be from 
        the Fund.''.
    (b) Section 60125(b)(l) is amended to read as follows:
            ``(1) To carry out section 60107, the following amounts are 
        authorized to be appropriated to the Secretary, from fees 
        collected under section 60301 in each respective year, and from 
        the Oil Spill Liability Trust Fund:
                    ``(A) For fiscal year 2007, $20,238,000, of which 
                $17,053,000 shall be from fees and $3,185,000 shall be 
                from the Fund.
                    ``(B) For fiscal year 2008, $23,221,000, of which 
                $19,567,000 shall be from fees and $3,654,000 shall be 
                from the Fund. Of the amount appropriated, $1,500,000 
                shall be available for fiscal year 2008 for the grants 
                to States authorized in section 60134.
                    ``(C) For fiscal year 2009, $24,513,000, of which 
                $20,656,000 shall be from fees and $3,857,000 shall be 
                from the Fund. Of the amount appropriated, $1,750,000 
                shall be available for fiscal year 2009 for the grants 
                to States authorized in section 60134.
                    ``(D) For fiscal year 2010, $25,855,000, of which 
                $21,786,000 shall be from fees and $4,069,000 shall be 
                from the Fund. Of the amount appropriated, $2,000,000 
                shall be available for fiscal year 2010 for the grants 
                to States authorized in section 60134.''.
    (c) Section 60125(c) is repealed.
    (d) Subsections (d) and (e) of section 60125 are redesignated as 
subsections (c) and (d), respectively.
    (e) Section 60125(c)(2), as so redesignated by subsection (d) of 
this section, is amended by striking ``2003 through 2006'' and 
inserting ``2007 through 2010''.
    (f) Section 6105(c)(2) is amended by striking ``fiscal years 2003 
through 2006'' and inserting ``fiscal years 2007 through 2010''.
    (g) Section 6107 is amended--
            (1) in subsection (a), by striking ``fiscal years 2003 
        through 2006'' and inserting ``fiscal years 2007 through 
        2010''; and
            (2) in subsection (b), by striking ``for fiscal years 2003 
        through 2006'' and inserting ``for fiscal years 2007 through 
        2010''.

SEC. 5. INCIDENT REPORTING.

    (a) Amendment.--Chapter 601 is amended by adding at the end the 
following section:
``Sec. 60136. Incident reporting.
    ``Not later than 12 months after date of enactment of this section, 
the Secretary shall review the incident reporting requirements for 
operators of natural gas pipelines and modify the reporting criteria as 
appropriate to ensure that the incident data gathered accurately 
reflects incident trends over time, taking into consideration the 
recommendations from the Comptroller General in GAO report 06-946.''.
    (b) Technical Amendment.--In the table of sections of chapter 601, 
the following item is added at the end:

``60136. Incident reporting.''.
                                                 Union Calendar No. 429

109th CONGRESS

  2d Session

                               H. R. 5782

                  [Report No. 109-717, Parts I and II]

_______________________________________________________________________

                                 A BILL

 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.

_______________________________________________________________________

                            December 5, 2006

 Reported from the Committee on Transportation and Infrastructure with 
                              an amendment

                            December 5, 2006

 Reported from the Committee on Energy and Commerce with an amendment, 
   committed to the Committee of the Whole House on the State of the 
                    Union, and ordered to be printed