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114th Congress     }                                 {   Rept. 114-807
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                 {         Part 1

======================================================================
 
PROTECTING OUR INFRASTRUCTURE OF PIPELINES AND ENHANCING SAFETY ACT OF 
                                  2016

                                _______
                                

 November 14, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4937]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 4937) to amend title 49, United 
States Code, to reauthorize pipeline safety programs and 
enhance pipeline safety, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................    12
Background and Need for Legislation..............................    12
Hearings.........................................................    14
Legislative History and Consideration............................    14
Committee Votes..................................................    14
Committee Oversight Findings.....................................    18
New Budget Authority and Tax Expenditures........................    18
Congressional Budget Office Cost Estimate........................    18
Performance Goals and Objectives.................................    23
Advisory of Earmarks.............................................    23
Duplication of Federal Programs..................................    23
Disclosure of Directed Rule Makings..............................    24
Federal Mandate Statement........................................    24
Preemption Clarification.........................................    24
Advisory Committee Statement.....................................    24
Applicability of Legislative Branch..............................    24
Section-by-Section Analysis of Legislation.......................    25
Changes in Existing Law Made by the Bill, as Reported............    30
Committee Correspondence.........................................    55

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.

  (a) Short Title.--This Act may be cited as the ``Protecting our 
Infrastructure of Pipelines and Enhancing Safety Act of 2016'' or the 
``PIPES Act of 2016''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents; references.
Sec. 2. Authorization of appropriations.
Sec. 3. Failure of PHMSA to implement statutory mandates.
Sec. 4. Natural gas integrity management review.
Sec. 5. Hazardous liquid integrity management review.
Sec. 6. Technical safety standards committees.
Sec. 7. Inspection report information.
Sec. 8. Improving damage prevention technology.
Sec. 9. Workforce management.
Sec. 10. Information-sharing system.
Sec. 11. Nationwide integrated pipeline safety regulatory database.
Sec. 12. Underground natural gas storage facilities.
Sec. 13. Joint inspection and oversight.
Sec. 14. Safety data sheets.
Sec. 15. Hazardous materials identification numbers.
Sec. 16. Emergency order authority.
Sec. 17. State grant funds.
Sec. 18. Response plans.
Sec. 19. High consequence areas.
Sec. 20. Pipeline safety technical assistance grants.
Sec. 21. Study of materials and corrosion prevention in pipeline 
transportation.
Sec. 22. Research and development.
Sec. 23. Active and abandoned pipelines.
Sec. 24. State pipeline safety agreements.

SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

  (a) Gas and Hazardous Liquid.--Section 60125(a) of title 49, United 
States Code is amended--
          (1) in paragraph (1) by striking ``there is authorized to be 
        appropriated to the Department of Transportation for each of 
        fiscal years 2012 through 2015, from fees collected under 
        section 60301, $90,679,000, of which $4,746,000 is for carrying 
        out such section 12 and $36,194,000 is for making grants.'' and 
        inserting the following: ``there is authorized to be 
        appropriated to the Department of Transportation from fees 
        collected under sections 60301 and 60302--
                  ``(A) $124,500,000 for fiscal year 2016, of which 
                $9,000,000 shall be expended for carrying out such 
                section 12 and $39,385,000 shall be expended for making 
                grants;
                  ``(B) $128,000,000 for fiscal year 2017 of which 
                $9,000,000 shall be expended for carrying out such 
                section 12 and $41,885,000 shall be expended for making 
                grants;
                  ``(C) $131,000,000 for fiscal year 2018, of which 
                $9,000,000 shall be expended for carrying out such 
                section 12 and $44,885,000 shall be expended for making 
                grants; and
                  ``(D) $134,000,000 for fiscal year 2019, of which 
                $9,000,000 shall be expended for carrying out such 
                section 12 and $47,885,000 shall be expended for making 
                grants.''; and
          (2) in paragraph (2) by striking ``there is authorized to be 
        appropriated for each of fiscal years 2012 through 2015 from 
        the Oil Spill Liability Trust Fund to carry out the provisions 
        of this chapter related to hazardous liquid and section 12 of 
        the Pipeline Safety Improvement Act of 2002 (49 U.S.C. 60101 
        note; Public Law 107-355), $18,573,000, of which $2,174,000 is 
        for carrying out such section 12 and $4,558,000 is for making 
        grants.'' and inserting the following: ``there is authorized to 
        be appropriated from the Oil Spill Liability Trust Fund to 
        carry out the provisions of this chapter related to hazardous 
        liquid and section 12 of the Pipeline Safety Improvement Act of 
        2002 (49 U.S.C. 60101 note; Public Law 107-355)--
                  ``(A) $22,123,000 for fiscal year 2016, of which 
                $3,000,000 shall be expended for carrying out such 
                section 12 and $8,067,000 shall be expended for making 
                grants;
                  ``(B) $22,123,000 for fiscal year 2017, of which 
                $3,000,000 shall be expended for carrying out such 
                section 12 and $8,067,000 shall be expended for making 
                grants;
                  ``(C) $23,000,000 for fiscal year 2018, of which 
                $3,000,000 shall be expended for carrying out such 
                section 12 and $8,067,000 shall be expended for making 
                grants; and
                  ``(D) $23,000,000 for fiscal year 2019, of which 
                $3,000,000 shall be expended for carrying out such 
                section 12 and $8,067,000 shall be expended for making 
                grants.''.
  (b) Operational Expenses.--There are authorized to be appropriated to 
the Secretary of Transportation for the necessary operational expenses 
of the Pipeline and Hazardous Materials Safety Administration the 
following amounts:
  (1) $21,000,000 for fiscal year 2016.
  (2) $22,000,000 for fiscal year 2017.
  (3) $22,000,000 for fiscal year 2018.
  (4) $23,000,000 for fiscal year 2019.
  (c) One-Call Notification Programs.--
          (1) In general.--Section 6107 of title 49, United States 
        Code, is amended to read as follows:

``Sec. 6107. Funding

  ``Of the amounts provided under section 60125(a)(1), the Secretary 
shall withhold $1,058,000 for each of fiscal years 2016 through 2019 to 
carry out section 6106.''.
          (2) Clerical amendment.--The analysis for chapter 61 of title 
        49, United States Code, is amended by striking the item 
        relating to section 6107 and inserting the following:

``6107. Funding.''.

  (d) Pipeline Safety Information Grants to Communities.--The first 
sentence of section 60130(c) of title 49, United States Code, is 
amended to read as follows: ``Of the amounts made available under 
section 2(b) of the PIPES Act of 2016, the Secretary shall withhold 
$1,500,000 for each of fiscal years 2016 through 2019 to carry out this 
section.''
  (e) Pipeline Integrity Program.--Section 12(f) of the Pipeline Safety 
Improvement Act of 2002 (49 U.S.C. 60101 note) is amended by striking 
``2012 through 2015'' and inserting ``2016 through 2019''.

SEC. 3. FAILURE OF PHMSA TO IMPLEMENT STATUTORY MANDATES.

  (a) Report by the Inspector General.--Not later than 45 days after 
the date of enactment of this Act, the Inspector General of the 
Department of Transportation shall submit to the Secretary of 
Transportation, the Administrator of the Pipeline and Hazardous 
Materials Safety Administration, the Committee on Transportation and 
Infrastructure and the Committee on Energy and Commerce of the House of 
Representatives, and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing the following:
          (1) A list of each statutory mandate contained in the 
        Pipeline Safety, Regulatory Certainty, and Job Creation Act of 
        2011 (Public Law 112-90) that has not been implemented.
          (2) A list of each statutory mandate regarding pipeline 
        safety from this Act and all other Acts enacted prior to the 
        date of enactment of this Act, other than those contained in 
        the Pipeline Safety, Regulatory Certainty, and Job Creation Act 
        of 2011 (Public Law 112-90), that has not been implemented.
  (b) Reports by the Secretary.--
          (1) Statutory mandates.--Not later than 90 days after the 
        date of enactment of this Act, and every 90 days thereafter 
        until each of the mandates listed pursuant to subsection (a) 
        has been implemented, the Secretary shall submit to the 
        Committee on Transportation and Infrastructure and the 
        Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report on the specific actions 
        taken to implement such mandates.
          (2) Public availability.--The Secretary shall make the report 
        referred to in paragraph (1) publicly available on the 
        Department of Transportation's Internet Web site.
          (3) Contents of reports.--The reports shall provide, for each 
        mandate listed pursuant to subsection (a)--
                  (A) a description of the mandate;
                  (B) the deadline imposed for the mandate;
                  (C) the status of the implementation of the mandate;
                  (D) a detailed explanation of the reasons the mandate 
                has not been implemented, including a description of 
                any actions taken by the Administrator of the Pipeline 
                and Hazardous Materials Safety Administration, the 
                Office of the Secretary, or the Office of Management 
                and Budget that delayed implementation of the mandate;
                  (E) an estimated completion date for the mandate;
                  (F) the specific date on which any draft, interim, or 
                final guidance, advisory, report, advance notice of 
                proposed rulemaking, notice of proposed rulemaking, 
                final rule, or other document required to implement the 
                mandate was sent to the Secretary by the Administrator 
                for review and subsequently transmitted by the 
                Secretary or the Administrator to the Office of 
                Management and Budget;
                  (G) a description of each concern with a document 
                described under subparagraph (F) raised by the 
                Secretary or the Office of Management and Budget; and
                  (H) the date and reasons the Secretary or the Office 
                of Management and Budget requested any extension on 
                acting on the mandate, including an extension 
                authorized by Executive Order 12866.

SEC. 4. NATURAL GAS INTEGRITY MANAGEMENT REVIEW.

  (a) Report.--Not later than 18 months after the publication of a 
final rule regarding the safety of gas transmission pipelines related 
to the notice of proposed rulemaking issued on April 8, 2016, titled 
``Pipeline Safety: Safety of Gas Transmission and Gathering Pipelines'' 
(81 Fed. Reg. 20721), the Comptroller General of the United States 
shall submit to the Committee on Transportation and Infrastructure and 
the Committee on Energy and Commerce of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of the 
Senate a report regarding the natural gas integrity management programs 
required under section 60109(c) of title 49, United States Code.
  (b) Contents.--The report required under subsection (a) shall 
include--
          (1) an analysis of the extent to which the natural gas 
        integrity management programs required under section 60109(c) 
        of title 49, United States Code, have improved the safety of 
        natural gas transmission pipeline facilities;
          (2) an analysis and recommendations, taking into 
        consideration technical, operational, and economic feasibility, 
        regarding changes to the programs to improve safety, prevent 
        inadvertent releases from pipelines, and mitigate any adverse 
        consequences of an inadvertent release, including changes to 
        the definition of high consequence area, or expanding integrity 
        management beyond high consequence areas;
          (3) a review of the benefits, including safety benefits, and 
        cost effectiveness of the legacy class location regulations;
          (4) an analysis of, and recommendations regarding, what 
        impact pipeline features and conditions, including the age, 
        condition, materials, and construction of a pipeline, have on 
        safety and risk analysis of a particular pipeline;
          (5) a description of any challenges affecting Federal or 
        State regulators in the oversight of natural gas transmission 
        pipeline facilities and how the challenges are being addressed; 
        and
          (6) a description of any challenges affecting the natural gas 
        industry in complying with the programs, and how the challenges 
        are being addressed, including any challenges faced by publicly 
        owned natural gas distribution systems.
  (c) Definition of High Consequence Area.--In this section, the term 
``high consequence area'' has the meaning given the term in section 
192.903 of title 49, Code of Federal Regulations (as in effect on the 
date of enactment of this Act).

SEC. 5. HAZARDOUS LIQUID INTEGRITY MANAGEMENT REVIEW.

  (a) Safety Study.--Not later than 18 months after the publication of 
a final rule regarding the safety of hazardous liquid pipeline 
facilities related to the notice of proposed rulemaking issued on 
October 13, 2015, titled ``Pipeline Safety: Safety of Hazardous Liquid 
Pipelines'' (80 Fed. Reg. 61610), the Comptroller General of the United 
States shall submit to the Committee on Transportation and 
Infrastructure and the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report regarding the hazardous liquid 
integrity management programs, as regulated under sections 195.450 and 
195.452 of title 49, Code of Federal Regulations.
  (b) Contents.--The report required under subsection (a) shall 
include--
          (1) an analysis of the extent to which hazardous liquid 
        pipeline facility integrity management in high consequence 
        areas, as regulated under sections 195.450 and 195.452 of title 
        49, Code of Federal Regulations, has improved the safety of 
        hazardous liquid pipeline facilities;
          (2) an analysis and recommendations, taking into 
        consideration technical, operational, and economic feasibility, 
        regarding changes to the programs to improve safety, prevent 
        inadvertent releases from pipelines, and mitigate any adverse 
        consequences of an inadvertent release, including changes to 
        the definition of high consequence area;
          (3) an analysis of how surveying, assessment, mitigation, and 
        monitoring activities, including real-time hazardous liquid 
        pipeline monitoring during significant flood events and 
        information sharing with Federal agencies, are being used to 
        address risks associated with the dynamic and unique nature of 
        rivers, flood plains, lakes, and coastal areas;
          (4) an analysis of, and recommendations regarding, what 
        impact pipeline features and conditions, including the age, 
        condition, materials, and construction of a pipeline, have on 
        safety and risk analysis of a particular pipeline and what 
        changes to the definition of high consequence area could be 
        made to improve pipeline safety; and
          (5) a description of any challenges affecting Federal or 
        State regulators in the oversight of hazardous liquid pipeline 
        facilities and how those challenges are being addressed.
  (c) Definition of High Consequence Area.--In this section, the term 
``high consequence area'' has the meaning given the term in section 
195.450 of title 49, Code of Federal Regulations.

SEC. 6. TECHNICAL SAFETY STANDARDS COMMITTEES.

  (a) Appointment of Members.--Section 60115(b)(4)(A) of title 49, 
United States Code, is amended by striking ``State commissioners. The 
Secretary shall consult with the national organization of State 
commissions before selecting those 2 individuals.'' and inserting 
``State officials. The Secretary shall consult with national 
organizations representing State commissioners or Governors before 
making a selection under this subparagraph.''.
  (b) Vacancies.--Section 60115(b) of title 49, United States Code, is 
amended by adding at the end the following:
  ``(5) Within 90 days of the date of enactment of the PIPES Act of 
2016, the Secretary shall fill all vacancies on the Technical Pipeline 
Safety Standards Committee, the Technical Hazardous Liquid Pipeline 
Safety Standards Committee, and any other committee established 
pursuant to this section. After that period, the Secretary shall fill a 
vacancy on any such committee not later than 60 days after the vacancy 
occurs.''.

SEC. 7. INSPECTION REPORT INFORMATION.

  (a) In General.--Not later than 90 days after the completion of a 
Pipeline and Hazardous Materials Safety Administration pipeline safety 
inspection, the Administrator of such Administration, or the State 
authority certified under section 60105 of title 49, United States 
Code, to conduct such inspection, shall--
          (1) conduct a post-inspection briefing with the owner or 
        operator of the gas or hazardous liquid pipeline facility 
        inspected outlining any concerns; and
          (2) to the extent practicable, provide the owner or operator 
        with written preliminary findings of the inspection.
  (b) Report.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter for 2 years, the Administrator shall 
submit to the Committee on Transportation and Infrastructure and the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report that includes--
          (1) a description of the actions that the Pipeline and 
        Hazardous Materials Safety Administration has taken to ensure 
        that inspections by State authorities provide effective and 
        timely oversight; and
          (2) statistics relating to the timeliness of the actions 
        described in paragraphs (1) and (2) of subsection (a).

SEC. 8. IMPROVING DAMAGE PREVENTION TECHNOLOGY.

  (a) Study.--The Comptroller General of the United States shall 
conduct a study on improving existing damage prevention programs 
through technological improvements in location, mapping, excavation, 
and communications practices to prevent excavation damage to a pipe or 
its coating.
  (b) Contents.--The study under subsection (a) shall include--
          (1) an identification of any methods to improve existing 
        damage prevention programs through location and mapping 
        practices or technologies in an effort to reduce releases 
        caused by excavation;
          (2) an analysis of how increased use of global positioning 
        system digital mapping technologies, predictive analytic tools, 
        public awareness initiatives including one-call initiatives, 
        the use of mobile devices, and other advanced technologies 
        could supplement existing one-call notification and damage 
        prevention programs to reduce the frequency and severity of 
        incidents caused by excavation damage;
          (3) an identification of any methods to improve excavation 
        practices or technologies in an effort to reduce pipeline 
        damage;
          (4) an analysis of the feasibility of a national data 
        repository for pipeline excavation accident data that creates 
        standardized data models for storing and sharing pipeline 
        accident information;
          (5) an identification of opportunities for stakeholder 
        engagement in preventing excavation damage; and
          (6) recommendations, taking into consideration technical, 
        operational, and economic feasibility, on how to incorporate 
        technological improvements and practices that help prevent 
        excavation damage into existing damage prevention programs.
  (c) Report.--Not later than 1 year after the date of the enactment of 
this Act, the Comptroller General shall submit to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee 
on Transportation and Infrastructure and the Committee on Energy and 
Commerce of the House of Representatives a report containing the 
results of the study conducted under subsection (a).

SEC. 9. WORKFORCE MANAGEMENT.

  Not later than 1 year after the date of the enactment of this Act, 
the Inspector General of the Department of Transportation shall submit 
to the Committee on Transportation and Infrastructure and the Committee 
on Energy and Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the Senate, a 
review of Pipeline and Hazardous Materials Safety Administration staff 
resource management, including geographic allocation plans, hiring 
challenges, and expected retirement rates and strategies. The review 
shall include recommendations to address hiring challenges, training 
needs, and any other identified staff resource challenges.

SEC. 10. INFORMATION-SHARING SYSTEM.

  (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Transportation shall convene a 
working group to consider the development of a voluntary information-
sharing system to encourage collaborative efforts to improve inspection 
information feedback and information sharing with the purpose of 
improving natural gas transmission and hazardous liquid pipeline 
facility integrity risk analysis.
  (b) Membership.--The working group convened pursuant to subsection 
(a) shall include representatives from--
          (1) the Pipeline and Hazardous Materials Safety 
        Administration;
          (2) industry stakeholders, including operators of pipeline 
        facilities, inspection technology vendors, and pipeline 
        inspection organizations;
          (3) safety advocacy groups;
          (4) research institutions;
          (5) State public utility commissions or State officials 
        responsible for pipeline safety oversight;
          (6) State pipeline safety inspectors; and
          (7) labor representatives.
  (c) Considerations.--The working group convened pursuant to 
subsection (a) shall consider and provide recommendations to the 
Secretary on--
          (1) the need for, and the identification of, a system to 
        ensure that dig verification data are shared with in-line 
        inspection operators to the extent consistent with the need to 
        maintain proprietary and security sensitive data in a 
        confidential manner to improve pipeline safety and inspection 
        technology;
          (2) ways to encourage the exchange of pipeline inspection 
        information and the development of advanced pipeline inspection 
        technologies and enhanced risk analysis;
          (3) opportunities to share data, including dig verification 
        data between operators of pipeline facilities and in-line 
        inspector vendors to expand knowledge of the advantages and 
        disadvantages of the different types of in-line inspection 
        technology and methodologies;
          (4) options to create a secure system that protects 
        proprietary data while encouraging the exchange of pipeline 
        inspection information and the development of advanced pipeline 
        inspection technologies and enhanced risk analysis; and
          (5) regulatory, funding, and legal barriers to sharing the 
        information described in paragraphs (1) through (4).
  (d) Publication.--The Secretary shall publish the recommendations 
provided under subsection (c) on a publicly available Web site of the 
Department of Transportation.

SEC. 11. NATIONWIDE INTEGRATED PIPELINE SAFETY REGULATORY DATABASE.

  (a) Establishment.--Not later than 18 months after the date of 
enactment of this Act, the Secretary of Transportation shall establish 
a national integrated pipeline safety regulatory inspection database to 
improve communication and collaboration between the Pipeline and 
Hazardous Materials Safety Administration and State pipeline 
regulators.
  (b) Considerations.--In developing the database, the Secretary shall 
consider--
          (1) any efforts underway to test a secure information-sharing 
        system for the purpose described in subsection (a);
          (2) any progress in establishing common standards for 
        maintaining, collecting, and presenting pipeline safety 
        regulatory inspection data, and a methodology for the sharing 
        of the data;
          (3) any existing inadequacies or gaps in State and Federal 
        inspection, enforcement, geospatial, or other pipeline safety 
        regulatory inspection data;
          (4) the potential safety benefits of a national integrated 
        pipeline database; and
          (5) recommendations of stakeholders for how to implement a 
        secure information-sharing system that protects proprietary and 
        security sensitive information and data for the purpose 
        described in subsection (a).
  (c) Consultation.--In implementing this section, the Secretary shall 
consult with stakeholders, including State authorities operating under 
a certification to regulate intrastate pipelines under section 60105 of 
title 49, United States Code.

SEC. 12. UNDERGROUND NATURAL GAS STORAGE FACILITIES.

  (a) Defined Term.--Section 60101(a) of title 49, United States Code, 
is amended--
          (1) in paragraph (21)(B) by striking the period at the end 
        and inserting a semicolon;
          (2) in paragraph (22)(B)(iii) by striking the period at the 
        end and inserting a semicolon;
          (3) in paragraph (24) by striking ``and'' at the end;
          (4) in paragraph (25) by striking the period at the end and 
        inserting ``; and''; and
          (5) by adding at the end the following:
          ``(26) `underground natural gas storage facility' means a gas 
        pipeline facility that stores gas in an underground facility, 
        including--
                  ``(A) a depleted hydrocarbon reservoir;
                  ``(B) an aquifer reservoir; or
                  ``(C) a solution-mined salt cavern reservoir.''.
  (b) Standards for Underground Natural Gas Storage Facilities.--
Chapter 601 of title 49, United States Code, is amended by adding at 
the end the following:

``Sec. 60141. Standards for underground natural gas storage facilities

  ``(a) Minimum Safety Standards.--Not later than 2 years after the 
date of enactment of the PIPES Act of 2016, the Secretary, in 
consultation with the heads of other relevant Federal agencies, shall 
issue minimum safety standards for underground natural gas storage 
facilities.
  ``(b) Considerations.--In developing the safety standards required 
under subsection (a), the Secretary shall, to the extent practicable--
          ``(1) consider consensus standards for the operation, 
        environmental protection, and integrity management of 
        underground natural gas storage facilities;
          ``(2) consider the economic impacts of the regulations on 
        individual gas customers; and
          ``(3) ensure that the regulations do not have a significant 
        economic impact on end users.
  ``(c) Rules of Construction.--
          ``(1) In general.--Nothing in this section may be construed 
        to affect any Federal regulation relating to gas pipeline 
        facilities that is in effect on the day before the date of 
        enactment of the PIPES Act of 2016.
          ``(2) Limitations.--Nothing in this section may be construed 
        to authorize the Secretary--
                  ``(A) to prescribe the location of an underground 
                natural gas storage facility; or
                  ``(B) to require the Secretary's permission to 
                construct a facility referred to in subparagraph (A).
  ``(d) Preemption.--A State authority may adopt additional or more 
stringent safety standards for intrastate underground natural gas 
storage facilities if such standards are compatible with the minimum 
standards prescribed under this section.''.
  (c) User Fees.--Chapter 603 of title 49, United States Code, is 
amended by inserting after section 60301 the following:

``Sec. 60302. User fees for underground natural gas storage facilities

  ``(a) In General.--A fee shall be imposed on an entity operating an 
underground natural gas storage facility pursuant to section 60141. Any 
such fee imposed shall be collected before the end of the fiscal year 
to which it applies.
  ``(b) Means of Collection.--The Secretary of Transportation shall 
prescribe procedures to collect fees under this section. The Secretary 
may use a department, agency, or instrumentality of the United States 
Government or of a State or local government to collect the fee and may 
reimburse the department, agency, or instrumentality a reasonable 
amount for its services.
  ``(c) Use of Fees.--
          ``(1) Account.--There is established an Underground Natural 
        Gas Storage Facility Safety Account in the Pipeline Safety Fund 
        established in the Treasury of the United States under section 
        60301.
          ``(2) Use of fees.--A fee collected under this section--
                  ``(A) shall be deposited in the Underground Natural 
                Gas Storage Facility Safety Account; and
                  ``(B) if the fee is related to an underground natural 
                gas storage facility pursuant to section 60141, the 
                amount of the fee may be used only for an activity 
                related to underground natural gas storage safety.
          ``(3) Limitation.--Amounts collected under this section shall 
        be made available only to the extent provided in advance in an 
        appropriations Act for an activity related to underground 
        natural gas storage safety.''.
  (d) Clerical Amendments.--
          (1) Chapter 601.--The table of sections for chapter 601 of 
        title 49, United States Code, is amended by adding at the end 
        the following:

``60141. Standards for underground natural gas storage facilities.''.

          (2) Chapter 603.--The table of sections for chapter 603 of 
        title 49, United States Code, is amended by inserting after the 
        item relating to section 60301 the following:

``60302. User fees for underground natural gas storage facilities.''.

SEC. 13. JOINT INSPECTION AND OVERSIGHT.

  Section 60105 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(g) Joint Inspectors.--At the request of a State authority, the 
Secretary shall allow for a certified State authority under this 
section to participate in the inspection of an interstate pipeline 
facility.''.

SEC. 14. SAFETY DATA SHEETS.

  (a) In General.--Each owner or operator of a hazardous liquid 
pipeline facility, following an accident or incident involving such 
pipeline facility, shall provide safety data sheets on any spilled oil 
to the designated Federal On-Scene Coordinator and appropriate State 
officials within 6 hours of a telephonic or electronic notice of the 
accident or incident to the National Response Center.
  (b) Definitions.--In this section:
          (1) Federal on-scene coordinator.--The term ``Federal On-
        Scene Coordinator'' has the meaning given such term in section 
        311(a) of the Federal Water Pollution Control Act (33 U.S.C. 
        1321(a)).
          (2) National response center.--The term ``National Response 
        Center'' means the center described under section 300.125(a) of 
        title 40, Code of Federal Regulations.
          (3) Safety data sheet.--The term ``safety data sheet'' means 
        a safety data sheet required under section 1910.1200 of title 
        29, Code of Federal Regulations.

SEC. 15. HAZARDOUS MATERIALS IDENTIFICATION NUMBERS.

  Not later than 90 days after the date of enactment of this Act, the 
Secretary of Transportation shall issue an advanced notice of proposed 
rulemaking to take public comment on the petition for rulemaking dated 
October 28, 2015, titled ``Corrections to Title 49 C.F.R. Sec. 172.336 
Identification numbers; special provisions'' (P-1667).

SEC. 16. EMERGENCY ORDER AUTHORITY.

  Section 60117 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(o) Emergency Order Authority.--
          ``(1) In general.--If the Secretary determines that an unsafe 
        condition or practice, or a combination of unsafe conditions 
        and practices, constitutes or is causing an imminent hazard, 
        the Secretary may issue an emergency order described in 
        paragraph (3) imposing emergency restrictions, prohibitions, 
        and safety measures on owners and operators of gas or hazardous 
        liquid pipeline facilities without prior notice or an 
        opportunity for a hearing, but only to the extent necessary to 
        abate the imminent hazard.
          ``(2) Considerations.--Before issuing an emergency order 
        under paragraph (1), the Secretary shall consider, after 
        consultation with appropriate Federal agencies, State agencies, 
        or other entities, the following, as appropriate:
                  ``(A) The impact of the emergency order on public 
                health and safety.
                  ``(B) The impact, if any, of the emergency order on 
                the national or regional economy or national security.
                  ``(C) The impact of the emergency order on owners and 
                operators of pipeline facilities.
          ``(3) Written order.--An emergency order issued by the 
        Secretary pursuant to paragraph (1) with respect to an imminent 
        hazard shall contain a written description of--
                  ``(A) the violation, condition, or practice that 
                constitutes or is causing the imminent hazard;
                  ``(B) the entities subject to the order;
                  ``(C) the restrictions, prohibitions, or safety 
                measures imposed;
                  ``(D) the standards and procedures for obtaining 
                relief from the order;
                  ``(E) how the order is tailored to abate the imminent 
                hazard and the reasons the authorities under section 
                60112 and 60117(l) are insufficient to do so; and
                  ``(F) how the considerations were taken into account 
                pursuant to subsection (2).
          ``(4) Opportunity for review.--Upon receipt of a petition for 
        review from an entity subject to, and adversely affected by, an 
        emergency order issued under this subsection, the Secretary 
        shall provide an opportunity for a review of the order under 
        section 554 of title 5 to determine whether the order should 
        remain in effect, be modified, or be terminated.
          ``(5) Expiration of effectiveness order.--If a petition for 
        review of an emergency order is filed under paragraph (4) and 
        an agency decision with respect to the petition is not issued 
        on or before the last day of the 30-day period beginning on the 
        date on which the petition is filed, the order shall cease to 
        be effective on such day, unless the Secretary determines in 
        writing on or before the last day of such period that the 
        imminent hazard still exists.
          ``(6) Judicial review of orders.--After a final agency action 
        under the review process described in paragraph (4), or the 
        issuance of a written determination by the Secretary pursuant 
        to paragraph (5), an entity subject to, and adversely affected 
        by, an emergency order issued under this subsection may seek 
        judicial review of the order in a district court of the United 
        States and shall be given expedited consideration.
          ``(7) Regulations.--
                  ``(A) Temporary regulations.--Not later than 60 days 
                after the date of enactment of the PIPES Act of 2016, 
                the Secretary shall issue such temporary regulations as 
                are necessary to carry out this subsection. The 
                temporary regulations shall expire on the date of 
                issuance of the final regulations required under 
                subparagraph (B).
                  ``(B) Final regulations.--Not later than 270 days 
                after such date of enactment, the Secretary shall issue 
                such regulations as are necessary to carry out this 
                subsection. Such regulations shall ensure that the 
                review process described in paragraph (4) contains the 
                same procedures as subsections (d) and (g) of section 
                109.19 of title 49, Code of Federal Regulations, and is 
                otherwise consistent with the review process developed 
                under such section, to the greatest extent practicable 
                and not inconsistent with this section.
          ``(8) Imminent hazard defined.--In this subsection, the term 
        `imminent hazard' means the existence of a condition relating 
        to a gas or hazardous liquid pipeline facility that presents a 
        substantial likelihood that death, serious illness, severe 
        personal injury, or a substantial endangerment to health, 
        property, or the environment may occur before the reasonably 
        foreseeable completion date of a formal proceeding begun to 
        lessen the risk of such death, illness, injury, or 
        endangerment.
          ``(9) Limitation and savings clause.--An emergency order 
        issued under this subsection may not be construed to--
                  ``(A) alter, amend, or limit the Secretary's 
                obligations under, or the applicability of, section 553 
                of title 5; or
                  ``(B) provide the authority to amend the Code of 
                Federal Regulations.''.

SEC. 17. STATE GRANT FUNDS.

  (a) Payments.--Section 60107(b) of title 49, United States Code, is 
amended to read as follows:
  ``(b) Payments.--After notifying and consulting with a State 
authority, the Secretary may withhold any part of a payment when the 
Secretary decides that the authority is not carrying out satisfactorily 
a safety program or not acting satisfactorily as an agent. The 
Secretary may pay an authority under this section only when the 
authority ensures the Secretary that it will provide the remaining 
costs of a safety program, unless the Secretary waives the requirement 
to provide such remaining costs.''.
  (b) Repurposing of Funds.--Section 60107 is amended by adding at the 
end the following:
  ``(e) Repurposing of Funds.--If a State program's certification is 
rejected under section 60105(f) or such program is otherwise suspended 
or interrupted, the Secretary may use any undistributed, deobligated, 
or recovered funds authorized under this section to carry out pipeline 
safety activities for that State within the period of availability for 
such funds.''.

SEC. 18. RESPONSE PLANS.

  Each owner or operator of a hazardous liquid pipeline facility 
required to prepare a response plan pursuant to part 194 of title 49, 
Code of Federal Regulations, shall consider the impact of a discharge 
into or on navigable waters or adjoining shorelines, including those 
that may be covered in whole or in part by ice.

SEC. 19. HIGH CONSEQUENCE AREAS.

  The Secretary of Transportation shall revise section 195.6(b) of 
title 49, Code of Federal Regulations, to explicitly state that the 
Great Lakes and any marine coastal waters (including coastal estuaries) 
are USA ecological resources for purposes of determining whether a 
pipeline is in a high consequence area (as defined in section 195.450 
of such title).

SEC. 20. PIPELINE SAFETY TECHNICAL ASSISTANCE GRANTS.

  (a) Public Participation Limitation.--Section 60130(a)(4) of title 
49, United States Code, is amended by inserting ``on technical pipeline 
safety issues'' after ``public participation''.
  (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Inspector General of the Department of Transportation 
shall submit to the Secretary of Transportation and the Committee on 
Transportation and Infrastructure and the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report evaluating the grant 
program under section 60130 of title 49, United States Code. The report 
shall include--
          (1) a list of the recipients of all grant funds during fiscal 
        years 2010 through 2015;
          (2) a description of how each grant was used;
          (3) an analysis of the compliance with the terms of grant 
        agreements, including subsections (a) and (b) of such section;
          (4) an evaluation of the competitive process used to award 
        the grant funds; and
          (5) an evaluation of--
                  (A) the ability of the Pipeline and Hazardous 
                Materials Safety Administration to oversee grant funds 
                and usage; and
                  (B) the procedures used for such oversight.

SEC. 21. STUDY OF MATERIALS AND CORROSION PREVENTION IN PIPELINE 
                    TRANSPORTATION.

  (a) In General.--Not later than 2 years after the date of enactment 
of the PIPES Act of 2016, the Comptroller General of the United States 
shall submit to the Committee on Transportation and Infrastructure and 
the Committee on Energy and Commerce of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of the 
Senate a study on materials, training, and corrosion prevention 
technologies used in pipeline transportation.
  (b) Requirements.--The study required under subsection (a) shall 
include--
          (1) the range of piping materials, including plastic 
        materials, used to transport hazardous liquids and natural gas 
        in the United States and in other developed countries around 
        the world;
          (2) the types of technologies used for corrosion prevention;
          (3) an evaluation of the adequacy of training provided to 
        personnel responsible for identifying and preventing corrosion 
        in pipelines, and for repairing such pipelines; and
          (4) an analysis of the costs and benefits, including safety 
        benefits, associated with the use of such materials and 
        technologies.

SEC. 22. RESEARCH AND DEVELOPMENT.

  (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Comptroller General of the United States shall submit 
to the Committee on Transportation and Infrastructure and the Committee 
on Energy and Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the Senate a 
report regarding the Pipeline and Hazardous Materials Safety 
Administration's research and development program established under 
section 12 of the Pipeline Safety Improvement Act of 2002 (49 U.S.C. 
60101 note). The report shall include an evaluation of--
          (1) compliance with the consultation requirement under 
        subsection (d)(2) of such section;
          (2) the extent to which the Pipeline and Hazardous Materials 
        Administration enters into joint research ventures with Federal 
        and non-Federal entities, and benefits thereof;
          (3) the policies and procedures the Pipeline and Hazardous 
        Materials Safety Administration has put in place to ensure 
        there are no conflicts of interest with administering grants to 
        grantees under the program, and whether those policies and 
        procedures are being followed; and
          (4) an evaluation of the outcomes of research conducted with 
        Federal and non-Federal entities and the degree to which such 
        outcomes have been adopted or utilized.
  (b) Collaborative Safety Research Report.--
          (1) Biennial reports.--Section 60124(a)(6) of title 49, 
        United States Code, is amended--
                  (A) in subparagraph (A), by striking ``and'' at the 
                end;
                  (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(C) a summary of each research project carried out 
                with Federal and non-Federal entities pursuant to 
                section 12 of the Pipeline Safety Improvement Act of 
                2002 and a review of how intended improvements impact 
                safety.''.
          (2) Pipeline safety improvement act.--Section 12 of the 
        Pipeline Safety Improvement Act of 2002 (49 U.S.C. 60101 note) 
        is amended--
                  (A) in subsection (d)(3)(C)--
                          (i) by striking ``program-wide'' and 
                        inserting ``technology'';
                          (ii) by striking ``are'' and inserting ``may 
                        be'';
                          (iii) by striking ``The Secretary'' and 
                        inserting ``(i) The Secretary''; and
                          (iv) by adding at the end the following:
                  ``(ii) at least 20 percent of the costs of basic 
                research and development with universities may be 
                carried out using non-Federal sources; and
                  ``(iii) up to 100 percent of the costs of research 
                and development for purely governmental purposes may be 
                carried out using Federal funds.''; and
                  (B) by adding at the end the following:
  ``(h) Independent Experts.--Not later than 180 days after the date of 
enactment of the PIPES Act of 2016, the Secretary shall--
          ``(1) implement processes and procedures to ensure that 
        projects listed under subsection (c), to the greatest extent 
        practicable, produce results that are factual and peer-reviewed 
        by independent experts and not with persons or entities that 
        have a financial interest in the pipeline, petroleum, or 
        natural gas industries, or that would be directly impacted by 
        the results of the projects; and
          ``(2) submit to the Committee on Transportation and 
        Infrastructure and the Committee on Energy and Commerce of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report on the 
        implementation of the processes and procedures required under 
        paragraph (1).
  ``(i) Conflict of Interest.--The Secretary shall take all practical 
steps to ensure that each recipient of an agreement under this section 
discloses in writing to the Secretary any conflict of interest on a 
research and development project carried out under this section, and 
includes any such disclosure as part of the final deliverable pursuant 
to such agreement. The Secretary may not make an award under this 
section directly to a pipeline owner or operator that is regulated by 
the Pipeline and Hazardous Materials Safety Administration or a State-
certified regulatory authority.''.

SEC. 23. ACTIVE AND ABANDONED PIPELINES.

  Not later than 90 days after the date of enactment of this Act, the 
Secretary of Transportation shall issue formal guidance to owners and 
operators of gas or hazardous liquid pipeline facilities and applicable 
State regulatory authorities regarding the actions, including those 
required by Federal regulation, required to change the status of a 
pipeline facility from active to abandoned, including specific guidance 
on the definition of each pipeline status referred to in such formal 
guidance.

SEC. 24. STATE PIPELINE SAFETY AGREEMENTS.

  (a) Study.--Not later than 2 years after the date of enactment of 
this Act, the Comptroller General of the United States shall complete a 
study on State pipeline safety agreements made pursuant to section 
60106 of title 49, United States Code. Such study shall consider the 
following:
          (1) The integration of Federal and State or local authorities 
        in carrying out activities pursuant to an agreement under such 
        section.
          (2) The overall cost of Federal and State authorities 
        carrying out inspection activities pursuant to agreements under 
        such section.
          (3) The overall cost of the Pipeline and Hazardous Materials 
        Safety Administration carrying out interstate inspections 
        without the existence of interstate agreements with the States 
        pursuant to such section.
  (b) Notice Requirement for Denial.--Section 60106(b) of title 49, 
United States Code, is amended by adding at the end the following:
          ``(4) Notice upon denial.--If a State authority requests an 
        interstate agreement under this section and the Secretary 
        denies such request, the Secretary shall provide written 
        notification to the State authority of the denial that includes 
        an explanation of the reasons for such denial.''.

                         Purpose of Legislation

    H.R. 4937, the Protecting our Infrastructure of Pipelines 
and Enhancing Safety (PIPES) Act of 2016, is a four-year 
reauthorization of the Pipeline and Hazardous Materials Safety 
Administration's (PHMSA) pipeline safety programs. H.R. 4937 
improves pipeline safety, enhances the quality and timeliness 
of agency rulemakings, promotes better usage of data and 
technology to improve pipeline safety, and provides regulatory 
certainty for citizens, the safety community, and the industry. 
The PIPES Act requires PHMSA to set Federal minimum safety 
standards for underground natural gas storage facilities, and 
allows states to go above those standards for intrastate 
facilities. It also improves the agency's data collection 
through an information sharing system, establishing an 
integrated pipeline safety database, and improving damage 
prevention. H.R. 4937 improves safety by authorizing emergency 
order authority that is tailored to the pipeline sector, taking 
into account public health and safety, network, and customer 
impacts. Additionally, it ensures that pipeline operators 
receive timely post-inspection information from PHMSA to allow 
them to maintain and improve their safety efforts.

                  Background and Need for Legislation

    PHMSA was created under the Norman Y. Mineta Research and 
Special Programs Improvement Act of 2004 (P.L. 108-426). Prior 
to enactment of the 2004 Act, the Department of 
Transportation's (DOT) Research and Special Programs 
Administration handled pipeline and hazardous materials safety. 
Today, PHMSA's pipeline safety program oversees the safety of 
the nation's 2.6 million miles of gas and hazardous liquid 
pipelines, which account for the transportation of 64 percent 
of the energy commodities consumed in the United States.
    The natural gas industry consists of more than 160 pipeline 
companies, 6,300 producers, and 1,200 natural gas distribution 
companies. Industry is responsible for maintaining the safety 
of hundreds of thousands of miles of pipelines. There are three 
primary types of pipelines: (1) gas transmission, which make up 
approximately 300,000 miles of pipelines and 180,000 miles of 
those are interstate and transport natural gas from places of 
production to places of consumption; (2) gas distribution 
pipelines, which total over 2.1 million miles and distribute 
gas to businesses and homes from transmission pipelines; and 
(3) liquid pipelines, which make up 199,000 miles and transport 
refined petroleum, crude oil, hydrous ammonia, biofuels, carbon 
dioxide, refined petroleum products, and other hazardous liquid 
materials.
    PHMSA regulates the safety of pipeline facilities used in 
the transportation of gas and hazardous liquids. PHMSA's 
pipeline safety functions include developing, issuing, and 
enforcing regulations for the safe transportation of natural 
gas and hazardous liquids by pipelines. Regulatory programs are 
focused on ensuring safety in the design, construction, 
testing, operation, and maintenance of pipeline facilities. 
PHMSA requires that pipelines be periodically inspected in 
order to identify defects, such as cracks, dents, corrosion, 
and manufacturing defects.
    The last reauthorization of PHMSA's pipeline safety 
programs was the Pipeline Safety, Regulatory Certainty, and Job 
Creation Act of 2011 (P.L. 112-90), which was enacted on 
January 3, 2012 and expired on September 30, 2015. Although 
many specific directives included in the last reauthorization 
remain incomplete, progress is being made. The Protecting our 
Infrastructure of Pipelines and Enhancing Safety Act of 2016, 
or PIPES Act, will ensure PHMSA completes the requirements from 
the 2011 Act, and help the agency perform as a dynamic, data-
driven regulator. The bill aims to enhance the quality and 
timeliness of PHMSA rulemakings to ensure safety by: (1) 
requiring PHMSA to update Congress every 90 days on outstanding 
statutory directives, including the status of each requirement, 
reasons for its incompletion, and estimated completion date and 
(2) mandating two Government Accountability Office (GAO) 
studies on the effectiveness of integrity management programs 
for both natural gas and hazardous liquids pipelines.
    Additionally, the bill promotes better usage of data and 
technology to improve pipeline safety by: (1) tasking GAO with 
investigating how to use technology to improve third-party 
damage prevention (a leading cause of releases), and also 
requires GAO to study the latest innovations in pipeline 
materials technology; (2) creating a working group of 
representatives from PHMSA, states, industry stakeholders, and 
safety groups to develop recommendations on how to create an 
information sharing system to improve safety outcomes; and (3) 
authorizing PHMSA to create a national integrated pipeline 
safety database to have a clearer picture of federal and state 
safety oversight efforts.
    The bill also provides PHMSA with authority, in certain 
limited circumstances, to impose emergency measures on owners 
and operators of pipeline facilities in response to an imminent 
hazard caused by unsafe conditions or practices. It (1) 
requires owners and operators of such facilities to provide 
Safety Data Sheets to federal and state responders within six 
hours of notification to the National Response Center of a 
spill; (2) mandates GAO safety evaluations of the natural gas 
and hazardous liquid integrity management programs; (3) 
requires owners and operators of hazardous liquid pipeline 
facilities to prepare oil spill response plans to consider the 
impact of a discharge into or on navigable waters and adjoining 
shorelines; and (4) designates the Great Lakes and marine 
coastal waters (including coastal estuaries) as unusually 
sensitive area ecological resources for purposes of determining 
whether a pipeline is in a high consequence area.
    Every day, vital resources are moved through our pipeline 
network. With the importance to our nation's energy consumption 
and economic health, safety must remain the top priority. This 
bill not only reauthorizes the pipeline safety program, but it 
helps improve safety and the lives of millions of Americans.

                                Hearings

    In the 114th Congress, the Subcommittee on Railroads, 
Pipelines, and Hazardous Materials held several hearings and 
one roundtable related to this legislation. On February 3, 
2015, the Subcommittee held a hearing entitled ``How the 
Changing Energy Markets Will Affect U.S. Transportation'' which 
looked at the changes in domestic energy production's effects 
on the transportation system, including pipeline 
transportation. On April 14, 2015, the Subcommittee held a 
hearing to examine the oversight of ongoing rail, pipeline, and 
hazardous material rulemakings, which focused, in part, on the 
unfinished pipeline safety mandates from the 2011 Act. On July 
28, 2015, the Subcommittee held a roundtable discussion on 
``Innovations in Pipeline Technology'' that looked at emerging 
technologies to improve pipeline safety. Finally, on February 
25, 2016, the Subcommittee held a hearing on the 
``Reauthorization of DOT's Pipeline Safety Program,'' to look 
at pipeline safety and PHMSA's remaining mandates from the 2011 
Act. These Subcommittee actions built the foundation for the 
PIPES Act.

                 Legislative History and Consideration

    On April 14, 2016, House Subcommittee on Railroads, 
Pipelines, and Hazardous Materials Chairman Jeff Denham, 
Committee on Transportation and Infrastructure Chairman Bill 
Shuster, Committee Ranking Member Peter DeFazio and 
Subcommittee Ranking Member Michael Capuano introduced H.R. 
4937, the Protecting our Infrastructure of Pipelines and 
Enhancing Safety (PIPES) Act of 2016. On April 20, 2016, the 
Committee on Transportation and Infrastructure met in open 
session and ordered the bill reported favorably to the House by 
voice vote with a quorum present. Eleven amendments were 
offered, two were accepted, six were rejected, and three were 
withdrawn.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against. There were two recorded votes taken in connection 
with consideration of H.R. 4937 on two separate amendments 
offered by Congressman Rick Nolan (MN-8). On Mr. Nolan's 
amendment #60 the Committee disposed of this amendment by roll 
call vote as follows:


    On Mr. Nolan's amendment #62 the Committee disposed of this 
amendment by roll call vote as follows:


                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974, included below.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 4937 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 27, 2016.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4937, the PIPES 
Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 4937--PIPES Act of 2016

    Summary: The Pipeline and Hazardous Materials Safety 
Administration (PHMSA) oversees the safety of pipelines that 
transport natural gas or hazardous liquids and provides grants 
to states for programs to ensure pipeline safety. H.R. 4937 
would require PHMSA to pursue a variety of regulatory and 
administrative activities related to such programs and would 
authorize appropriations for those purposes. The bill also 
would authorize PHMSA to establish safety standards for certain 
underground storage facilities for natural gas, assess fees on 
entities that operate such facilities, and spend such fees--
subject to authority provided in advance in appropriation 
acts--to ensure that such facilities meet those standards.
    CBO estimates that implementing H.R. 4937 would result in 
gross appropriations totaling $529 million over the 2017-2021 
period. CBO also estimates that those appropriations would be 
offset by $410 million in fees paid by pipeline owners, which 
would be considered offsets to discretionary spending. Assuming 
appropriation actions consistent with the specified and 
estimated amounts, CBO estimates that the resulting net outlays 
would total $113 million over the 2017-2021 period.
    In addition, CBO estimates that enacting H.R. 4937 would 
increase net revenues from assessments on entities that operate 
certain underground storage facilities by $17 million over the 
2017-2026 period. Pay-as-you-go procedures apply because 
enacting the legislation would affect revenues, Enacting H.R. 
4937 would not affect direct spending.
    CBO estimates that enacting the legislation would not 
increase net direct spending or on-budget deficits in any of 
the four consecutive 10-year periods beginning in 2027.
    H.R. 4937 would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
by establishing new safety standards for natural gas storage 
facilities and pipelines and by imposing new fees. Based on 
information from PHMSA and industry sources, CBO estimates that 
the cost of the mandates on public entities would fall below 
the annual threshold established in UMRA for intergovernmental 
mandates ($77 million, adjusted annually for inflation). 
Primarily because one of the mandates on private entities would 
depend on future actions by the Secretary of Transportation, 
CBO cannot determine whether the aggregate cost of the mandates 
on private entities would exceed the annual threshold 
established in UMRA for private-sector mandates ($154 million 
in 2016, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 4937 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                         By fiscal year, in millions of dollars--
                                         -----------------------------------------------------------------------
                                             2017        2018        2019        2020        2021      2017-2021
----------------------------------------------------------------------------------------------------------------
                         INCREASES OR DECREASES (-) IN SPENDING SUBJECT TO APPROPRIATION
 
Spending for Pipeline Safety and Related
 Activities:
    Estimated Authorization Level.......         151         154         157           0           0         462
    Estimated Outlays...................          74         131         149          80          22         456
Offsetting Collections from User Fees:
    Estimated Authorization Level.......        -134        -138        -138           0           0        -410
    Estimated Outlays...................        -134        -138        -138           0           0        -410
PHMSA Operational Expenses
    Authorization Level.................          22          22          23           0           0          67
    Estimated Outlays...................          15          20          23           7           2          67
    Total Changes:
        Estimated Authorization Level...          39          38          42           0           0         119
        Estimated Outlays...............         -45          13          34          87          24         113
 
                                             INCREASES IN REVENUESa
 
Assessments for Underground Natural Gas            0           0           2           2           2           7
 Storage Facilities.....................
----------------------------------------------------------------------------------------------------------------
Notes: PHMSA = Pipeline and Hazardous Materials Safety Administration; Components may not sum to totals because
  of rounding.
aCBO estimates that enacting H.R. 4937 would increase net revenues by $17 million over the 2019-2026 period.


    Basis of estimate: For this estimate, CBO assumes that H.R. 
4937 will be enacted near the start of fiscal year 2017 and the 
amounts authorized and estimated to be necessary over the 2017-
2021 period will be appropriated each year. Estimates of 
outlays are based on historical spending patterns for pipeline 
safety programs.

Spending subject to appropriation

    H.R. 4937 would reauthorize the laws that govern PHMSA's 
role in pipeline safety and authorize appropriations for those 
activities as well as for the agency's general operating 
expenses. The bill would specify new administrative 
requirements and authorize the agency to establish and enforce 
safety standards for certain underground storage facilities for 
natural gas. The bill also would require the Government 
Accountability Office (GAO) and other agencies to conduct a 
variety of studies and reports related to pipeline safety and 
other activities.
    The bill would authorize appropriations totaling $172 
million in 2017 and $528 million over the 2017-2021 period; 
additional amounts would be necessary for required reports. (In 
addition, the bill would authorize appropriations totaling $168 
million in 2016, the same amount that has already been provided 
for that year.) The authorized and estimated amounts include:
           $461 million specifically authorized for 
        PHMSA's pipeline safety programs;
           $67 million specifically authorized for 
        operating expenses of support organizations within 
        PHMSA; and
           $1 million estimated to be necessary for GAO 
        and other agencies to carry out various reporting and 
        administrative requirements.
    Assuming appropriation of the authorized and estimated 
amounts, CBO estimates that resulting discretionary outlays 
would total $523 million over the 2017-2021 period and $6 
million in later years. CBO also estimates that those outlays 
would be offset by $410 million in fees paid by entities that 
operate pipelines and related facilities regulated by PHMSA. 
Under current law, such annual fees are based on appropriations 
provided for pipeline safety and related activities and are 
recorded in the budget as discretionary offsetting collections.

Revenues

    H.R. 4937 would authorize PHMSA to regulate the safety of 
certain underground storage facilities for natural gas. To 
cover the cost of regulating such facilities, the bill would 
direct the Secretary of Transportation to impose fees on 
entities that operate such facilities. In CBO's view, such 
regulatory fees should be recorded as revenues because of their 
compulsory nature. Under the bill, PHMSA's authority to spend 
those fees would be subject to appropriation.
    Based on information from PHMSA and the natural gas 
industry about the anticipated costs to establish and implement 
the proposed safety standards, CBO estimates gross revenues 
from such fees would total about $3 million annually, starting 
in 2019 (the year when CBO expects PHMSA would issue 
regulations as required by the bill) and $24 million through 
2026. Because excise taxes and other indirect business taxes 
(such as the proposed assessment under H.R. 4937) reduce the 
base used for calculating income and payroll taxes, higher 
amounts of those indirect business taxes would lead to 
reductions in revenues from income and payroll taxes. As a 
result, gross assessments would be partially offset by a loss 
of receipts of about 25 percent each year. Thus, CBO estimates 
that enacting H.R. 4937 would increase net revenues by $17 
million over the 2019-2026 period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in revenues that are subject to those 
pay-as-you-go procedures are shown in the following table.

 CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4937, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE ON APRIL 20, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2016   2017   2018   2019   2020   2021   2022   2023   2024   2025   2026  2016-2021  2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET DECREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.......................      0      0      0     -2     -2     -2     -2     -2     -2     -2     -2        -7       -17
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.

    Increase in long term direct spending and deficits: CBO 
estimates that enacting H.R. 4937 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2027.
    Intergovernmental and private-sector impact: H.R. 4937 
would impose intergovernmental and private-sector mandates as 
defined in UMRA by establishing new safety standards for 
natural gas storage facilities and pipelines and by imposing 
new fees. Based on information from PHMSA and industry sources, 
CBO estimates that the cost of the mandates on public entities 
would fall below the annual threshold established in UMRA for 
intergovernmental mandates ($77 million, adjusted annually for 
inflation). Primarily because one of the mandates on private 
entities would depend on future actions by the Secretary of 
Transportation, CBO cannot determine whether the aggregate cost 
of the mandates on private entities would exceed the annual 
threshold established in UMRA for private-sector mandates ($154 
million in 2016, adjusted annually for inflation).

Mandates that apply to both public and private entities

    Standards and Fees for Underground Natural Gas Storage 
Facilities. The bill would impose a mandate on operators of 
underground natural gas storage facilities by establishing new 
safety standards for those facilities. According to the 
Department of Energy, there are about 400 such facilities in 
the United States, and the majority of them are operated by 
private entities. Organizations representing gas pipeline 
companies recently adopted voluntary standards for ensuring the 
safety and integrity of natural gas storage facilities. CBO 
estimates that the incremental cost of the mandate would be 
minimal for facilities that are currently working to comply 
with those industry standards. However, based on information 
from industry sources, CBO estimates that the aggregate cost of 
the mandate on all facilities could total tens of millions of 
dollars annually.
    The bill also would impose a mandate on operators of 
underground natural gas storage facilities by requiring those 
operators to pay fees to the Secretary of Transportation. The 
fees would be used to offset the cost of establishing and 
implementing the safety standards for those facilities. CBO 
estimates that those fees would total $3 million annually 
beginning in 2019.
    Emergency Orders. The bill would authorize the Secretary of 
Transportation to issue emergency orders to address imminent 
hazards at gas and hazardous liquid pipeline facilities. Those 
orders would require owners and operators of the facilities to 
comply with emergency restrictions, prohibitions, and safety 
measures. The cost of the mandate would depend on the nature 
and scope of emergency orders issued by the Secretary of 
Transportation. While there is uncertainty surrounding the 
potential scope and frequency of such orders, the Secretary of 
Transportation has issued few emergency orders in recent years 
tied to the transport of hazardous materials. We expect 
emergency orders resulting from the bill's provisions to be 
similarly restrained, but they could result in significant 
costs to private entities, depending on the nature of the event 
and the resulting order. Because few pipelines are owned by 
public entities, CBO expects that the potential costs on state, 
local, or tribal entities of complying with future emergency 
orders would be small.
    Safety Data Sheets. The bill would require each owner or 
operator of a pipeline facility for hazardous liquids, 
following an accident or incident, to provide safety data 
sheets on any spilled oil to the appropriate federal and state 
officials. CBO estimates that the cost of transmitting 
information to governmental officials would be small.
    Oil Spill Response Plans. The bill would require operators 
of pipelines that contain hazardous liquids to consider the 
effects of oil discharges into navigable waters that contain 
ice and areas adjoining those waters when they prepare response 
plans for oil spills. Operators of oil pipelines must prepare 
and periodically update response plans pursuant to current law. 
The cost of the mandate would depend on whether operators need 
to amend current plans to address discharges onto ice. CBO 
anticipates that pipeline operators could amend any plans at 
the next scheduled update. Consequently, CBO estimates that the 
cost of the mandate would not be significant.

Mandate that applies to public entities

    The bill would preempt any existing state standards 
regulating underground storage facilities for natural gas that 
are less stringent than the new federal standards that PHMSA 
would be authorized to promulgate. Because preemptions limit 
the authority of state and local governments, they are 
considered intergovernmental mandates under UMRA. However, CBO 
estimates that the preemption would impose no duty that would 
result in additional spending or a loss of revenues by state, 
local, or tribal governments.
    Previous CBO estimate: On February 23, 2016, CBO 
transmitted a cost estimate for S. 2276, the SAFE PIPES Act, as 
ordered reported by the Senate Committee on Commerce, Science, 
and Transportation on December 9, 2015. S. 2276 also would 
reauthorize PHMSA's activities related to pipeline safety. 
Differences in our estimates of spending subject to 
appropriation under H.R. 4937 and S. 2276 reflect differences 
in the scope of activities and the amount of appropriations 
authorized under the two bills.
    In addition, both H.R. 4937 and S. 2276 would authorize 
PHMSA to regulate certain underground natural gas storage 
facilities and assess fees for that purpose. Our estimate of 
increased net revenues from such fees is the same under both 
bills.
    H.R. 4937 contains the same mandates identified by CBO in 
S. 2276 plus two additional mandates: a requirement to comply 
with emergency orders and a requirement to provide safety data 
sheets. Because the additional requirement in H.R. 4937 to 
comply with emergency orders would depend on future actions by 
the Secretary of Transportation, CBO cannot determine whether 
the aggregate costs of the mandates would exceed the threshold 
for private sector entities in this bill. The threshold 
determination for intergovernmental mandates is the same for 
both bills.
    Estimate prepared by: Federal Costs and Revenues: Megan 
Carroll; Impact on State, Local, and Tribal Governments: Jon 
Sperl; Impact on the Private Sector: Amy Petz.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
ensure that PHMSA completes the remaining 2011 Act directives 
and requirements, while additionally ensuring the continued 
safe transportation of gas and hazardous liquids by pipeline. 
This bill enhances safety by requiring the Secretary to 
prescribe minimum safety standards for underground natural gas 
storage facilities, increasing the quality and form of data 
collection, providing the Secretary with the authority to 
impose emergency measures on pipeline operators for an imminent 
hazard caused by unsafe conditions or practices, requiring 
pipeline operators to provide to federal and state responders 
to spills Safety Data Sheets, and conducting safety reviews of 
integrity management programs for natural gas and hazardous 
liquid pipelines.

                          Advisory of Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill includes an earmark, limited tax benefit, 
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of 
rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that no provision of H.R. 4937 establishes 
or reauthorizes a program of the federal government known to be 
duplicative of another federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, 113th Cong. (2015), 
the Committee estimates that enacting H.R. 4937 specifically 
directs the completion of a specific rule making within the 
meaning of section 551 of title 5, United States Code. Section 
12 of H.R. 4937 requires the Secretary of Transportation to 
establish minimum safety standards for underground natural gas 
storage facilities. Section 15 requires the Secretary of 
Transportation to issue an advanced notice of proposed 
rulemaking to take public comment on the petition for 
rulemaking dated October 28, 2015, ``Corrections of Title 49 
C.F.R. 172.336 Identification numbers; special provisions.'' 
Further, Section 16 requires the Secretary to establish, 
through rulemaking, procedures for the administrative review of 
emergency orders.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 4937 does not 
preempt any state, local, or tribal law. H.R. 4937 preserves 
the rights and permitting authorities of states.

                      Advisory Committee Statement

    Section 10 of this legislation establishes an advisory 
committee, as defined by section 2 of the Federal Advisory 
Committee Act (5 U.S.C. app.), to develop a voluntary 
information-sharing system to improve pipeline inspection 
information. Pursuant to section 5 of the Federal Advisory 
Committee Act, the Committee determines that the functions of 
this advisory committee are not being carried out by existing 
agencies or advisory commissions. The Committee also determines 
that the advisory committee has a clearly defined purpose, 
fairly balanced membership, and meets all of the other 
requirements of section 5(b) of the Federal Advisory Committee 
Act.

                  Applicability of Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

               Section-by-Section Analysis of Legislation


Section 1. Short title; table of contents; references

    This section designates the short title of this bill as the 
``Protecting our Infrastructure of Pipelines and Enhancing 
Safety Act of 2016'' or the ``PIPES Act of 2016.''

Section 2. Authorizations of appropriations

    This section authorizes Pipeline and Hazardous Material 
Safety Administration (PHMSA) pipeline safety and operational 
expenses activities for fiscal years 2016 through 2019 at 
baseline levels.
    The Committee is concerned that PHMSA has not updated 
emergency response programs with the goal of delivering 
effective emergency response training to the first responders 
who must respond to pipeline emergencies. Given the nation's 
aging pipeline infrastructure and its exposure to future 
incidents, the Committee believes the Secretary of 
Transportation should consider upgrading the current pipeline 
emergencies curriculum in order to take a more active role in 
the upgrade and enhancement of emergency training.

Section 3. Failure of PHMSA to implement statutory mandates

    This section requires the Inspector General of the 
Department of Transportation, within 45 days of the enactment 
of this Act, to submit a report to the Secretary of 
Transportation, the PHMSA Administrator, and Congress on each 
incomplete statutory directive contained in the PIPES Act, 
Public Law 112-90, and any other incomplete statutory 
directives from previously enacted laws.
    Additionally, this section requires the Secretary to submit 
a report to Congress on the specific actions taken to implement 
such directives every 90 days until each incomplete directive 
is implemented. The Secretary would make the report publicly 
available on the Department of Transportation's internet web 
site.

Section 4. Natural gas integrity management review

    This section requires the Comptroller General to report to 
Congress on the natural gas integrity management program (IM) 
within 18 months of the date of publication of the final rule 
on natural gas transmission pipeline safety. The report shall 
analyze aspects of the natural gas IM program including how the 
IM program has improved safety, what changes should be made to 
improve the program and mitigate adverse consequences of a 
release, the costs and benefits of legacy class location 
regulations, pipeline features and conditions' effects on 
safety and risk analysis, and a description of challenges 
facing federal and state regulators, and industry, including 
publicly owned natural gas distribution systems. The 
Comptroller General shall make recommendations based upon their 
analysis of these issues.

Section 5. Hazardous liquid integrity management review

    This section requires the Comptroller General to report to 
Congress on the hazardous liquid integrity management (IM) 
program within 18 months of the date of publication of the 
final rule on hazardous liquid pipelines. The report shall 
analyze aspects of the hazardous liquid IM program, including 
how the IM program has improved safety, what changes should be 
made to improve the program and mitigate adverse consequences 
of a release, pipeline features and conditions' effects on 
safety and risk analysis, and a description of challenges 
facing federal and state regulators. The Comptroller General 
shall make recommendations based upon their analysis of these 
issues.

Section 6. Technical safety standards committees

    This section provides greater flexibility for the Secretary 
of Transportation to appoint state pipeline safety officials to 
advisory committees. Additionally, the Secretary, within 90 
days of enactment, is required to fill all vacancies on the 
Technical Pipeline Safety Standards Committee and the Technical 
Hazardous Liquid Pipeline Safety Standards Committee. 
Furthermore, going forward any vacancy on such committees would 
be filled within 60 days of occurrence.

Section 7. Inspection report information

    This section requires PHMSA, or a certified state 
authority, to conduct a post-inspection briefing with the owner 
or operator of a pipeline facility and, to the extent 
practicable, provide written preliminary findings within 90 
days of a pipeline safety inspection.
    This section also requires PHMSA to provide three annual 
reports to Congress on the implementation of this section, 
including statistics relating to the timeliness of actions, and 
a description of actions that PHMSA has taken to ensure that 
inspections by state authorities provide effective and timely 
oversight and statistics on timeliness of the actions.

Section 8. Improving damage prevention technology

    This section requires the Comptroller General to conduct a 
study on technological improvements in mapping, location, and 
communication practices to prevent excavation damage to a 
pipeline, which is a leading cause of pipeline incidents.

Section 9. Workforce management

    This section requires the Inspector General of the 
Department of Transportation to submit to Congress a review of 
PMHSA staff resource management including, geographical 
allocation plans, hiring challenges, expected retirement rates, 
and future strategies.

Section 10. Information-sharing system

    This section requires the Secretary of Transportation to 
convene a working group to consider the development of a 
voluntary information-sharing system to encourage collaborative 
efforts to improve inspection information feedback and 
information sharing to improve pipeline facility integrity risk 
analysis.
    The working group is required to consider and provide 
recommendations to the Secretary on: (1) the need for a shared 
data system; (2) ways to encourage the exchange of pipeline 
inspection data and the development of advanced pipeline 
inspection technologies and enhanced risk analysis; (3) 
opportunities to share dig verification data; (4) options to 
create a secure data system; (5) regulatory, funding, and legal 
barriers to sharing information.
    In carrying out this section, the Committee expects PHMSA 
to consult with entities that develop and advance pipeline data 
management and modeling standards.

Section 11. Nationwide integrated pipeline safety regulatory database

    This section requires the Secretary of Transportation to 
establish a national integrated pipeline safety regulatory 
inspection database. The purpose of this database is to improve 
communication and collaboration between PHMSA and state 
pipeline regulators.

Section 12. Underground natural gas storage facilities

    This section requires the Secretary of Transportation to 
develop minimum safety standards for underground natural gas 
storage facilities, including a depleted hydrocarbon reservoir, 
an aquifer reservoir, and a solution-mined salt cavern 
reservoir.
    This section also allows for a state authority to adopt 
additional or more stringent safety standards for intrastate 
underground natural gas storage facilities, so long as such 
standards are compatible with the minimum safety standards 
prescribed in this section.
    Additionally, this section establishes a user fee to fund 
the oversight of underground natural gas storage facilities 
that shall be imposed on an entity operating such facility. Any 
fee shall be collected before the end of the fiscal year to 
which it applies, and made available only to the extent 
provided in advance in appropriations acts.

Section 13. Joint inspection and oversight

    This section allows state authorities certified under 
section 60105 of Title 49 United States Code to request the 
opportunity to participate with Federal inspection teams on 
inspections of interstate pipeline facilities.

Section 14. Safety data sheets

    This section requires the owner or operator of a hazardous 
liquid pipeline facility, following an incident, to provide 
safety data sheets on any spilled oil to the designated Federal 
On-Scene Coordinator and appropriate state officials within six 
hours of the spill. The Committee expects hazardous liquid 
pipeline owners and operators to provide the federal On-Scene 
Coordinator and state officials with safety data sheets that 
are specific to the oil that was spilled, not generic safety 
data sheets.

Section 15. Hazardous materials identification numbers

    This section directs the Secretary of Transportation to 
issue an advanced notice of proposed rulemaking to take public 
comment on a petition for rulemaking regarding placarding 
requirements for certain flammable hazardous materials 
carriers.

Section 16. Emergency order authority

    This section allows the Secretary of Transportation to 
impose, on an owner or operator of gas or hazardous liquid 
pipeline facility, an emergency order to abate an imminent 
hazard caused by an unsafe condition or practice, or 
combination of unsafe conditions or practices. Prior to issuing 
such an emergency order, the Secretary is required to consult 
with, as appropriate, Federal agencies, state agencies, or 
other entities. The Committee notes that `other entities' may 
include hazardous liquid and gas pipeline owners, operators, 
trade associations, and pipeline safety advocacy and other 
groups. The Secretary shall consider the impact of the order on 
public health and safety, the economy, national security, 
owners and operators of pipelines, and consumers.
    The emergency order shall contain a detailed written 
description of the condition or conditions, entities subject to 
the order, the restrictions imposed, the standards and 
procedures for obtaining relief from the order, how the order 
is tailored to abate the imminent hazard, why other 
authorities, such as corrective actions orders, are 
insufficient to abate the hazard, and how the pre-issuance 
considerations were taken into account.
    This section provides an entity subject to an order the 
opportunity for petition and review, and if the Secretary fails 
to make a decision within 30 days of receiving a petition for 
review, the emergency order would cease to be effective unless 
the Secretary determines that the imminent hazard still exists. 
The Committee notes that this section neither limits, nor 
enhances the potential standing of entities, including 
associations, seeking judicial review of an emergency order 
issued pursuant to this section. This language is also not 
intended to alter judicial precedent regarding the availability 
of injunctive relief. This section provides for judicial review 
in a United States District Court on an expedited basis after 
completion of the administrative review process.
    This section provides that no later than 60 days after the 
date of enactment, the Secretary shall issue temporary 
regulations to carry out this section, and no later than 270 
days after such an enactment the Secretary must issue final 
regulations. The Committee expects the Secretary to meet these 
deadlines. The regulations must include administrative review 
procedures similar to those for the hazardous materials 
emergency order authority, including the requirement that they 
contain an option for a decision on the record after 
opportunity for a hearing by an administrative law judge, 
consistent with the Administrative Procedures Act.
    This section defines the meaning of imminent hazard as 
``the existence of a condition relating to a gas or hazardous 
liquid pipeline facility that presents a substantial likelihood 
that death, serious illness, severe personal injury, or a 
substantial endangerment to health, property, or the 
environment may occur before the reasonably foreseeable 
completion date of a formal proceeding begun to lessen the risk 
of such death, illness, injury, or endangerment.'' Lastly, it 
contains a savings clause to prohibit an emergency order from 
being used to amend the Code of Federal Regulations or 
circumvent the rulemaking process.

Section 17. State grant funds

    This section provides more flexibility for states by 
eliminating the requirement that states spend an average of 
their three prior years' funding for their pipeline safety 
program costs. Under current law, the Secretary may waive this 
requirement; according to PHMSA, almost all states have sought 
and received such waivers since the provision became effective 
in 2012.
    The section also allows the Secretary to recover or retain 
any unused, de-obligated, or recovered grant funds from a state 
that is decertified by PHMSA under section 60105 of Title 49 
United States Code. Such funds may only be used by PHMSA to 
rehabilitate that state's program.

Section 18. Response plans

    This section requires an owner or operator of a hazardous 
liquid pipeline facility to consider the impact of a discharge 
into or on navigable waters or adjoining shorelines, including 
those that may be covered by ice, when preparing a response 
plan. This section codifies current practice to ensure owners 
or operators continue such considerations when developing 
response plans.

Section 19. High consequence areas

    This section states that the Great Lakes and any marine 
coastal waters (including coastal estuaries) be considered 
unusually sensitive area ecological resources for the purpose 
of determining whether a pipeline is in a high consequence 
area.

Section 20. Pipeline safety technical assistance grants

    This section requires the Inspector General of the 
Department of Transportation to submit a report to Congress 
evaluating the Pipeline Safety Technical Assistance Grant 
Program. The report would include: (1) a list of the grant 
recipients from FY10 to FY15; (2) a description of how each 
grant was used; (3) an analysis of compliance with terms of 
grant agreements; (4) an evaluation of the competitive process; 
and (5) an evaluation of PHMSA's ability to oversee grant funds 
and usage, and the procedures used for oversight. Additionally, 
this section ensures the grant funds are used for technical 
assistance to local communities and groups of individuals 
relating to the safety of pipeline facilities in local 
communities. The term ``technical assistance'' means 
engineering and other scientific analysis of pipeline safety 
issues, including the promotion of public participation on 
technical pipeline safety issues in official proceedings 
conducted under chapter 601 of title 49, U.S. Code.

Section 21. Study of materials and corrosion prevention in pipeline 
        transportation

    This section requires the Comptroller General, within 2 
years of the enactment, to submit a study to Congress on 
materials, corrosion prevention technologies, and training used 
in pipeline transportation. The study would include: (1) the 
range of piping materials, including plastic materials, used to 
transport hazardous liquids and natural gas; (2) the type of 
technologies used for corrosion prevention; (3) an evaluation 
of the adequacy of training provided to personnel responsible 
for identifying and preventing corrosion in pipelines, and for 
repairing such pipelines; and (4) an analysis for the cost and 
benefits, including safety benefits, associated with the use of 
such materials and technology.

Section 22. Research and development

    This section requires the Comptroller General to submit a 
report to Congress, within 2 years of enactment, regarding 
PHMSA's research and development program. The report is to 
include an evaluation of: (1) PHMSA's consultation 
requirements; (2) the extent to which PHMSA enters into joint 
research ventures with Federal and non-Federal entities, and 
benefits thereof; (3) the policies and procedures PHMSA has put 
in place to ensure there are no conflicts of interests with 
administering grants to grantees, and whether they are being 
followed; and (4) an evaluation of the outcomes of research 
conducted with Federal and non-Federal entities, and the degree 
to which the outcomes have been adopted or utilized.
    This section also updates a DOT biennial report to Congress 
to add a summary of each research project carried out with 
Federal and non-Federal entities and a review of how intended 
improvements impact safety. This section also adjusts the level 
of non-Federal matching requirements for certain types of co-
funded research.
    Additionally, the Secretary is required to implement 
policies and procedures to ensure that research projects 
produce results that are factual and peer reviewed by 
independent experts, and not persons or entities that have a 
financial interest in the pipeline industry, or that would be 
directly impacted by the results of the research project. Also, 
the Secretary is to submit a report on the implementation 
process and procedures under this section.
    This section also requires the Secretary to take all 
practical steps to ensure that each recipient of an agreement 
for this program discloses in writing to the Secretary any 
conflict of interest on the projects carried out in this 
section, and also include any such disclosure as part of the 
final deliverable. The Secretary is also prohibited from making 
an award for a research and development project directly to a 
pipeline owner or operator that is regulated by PHMSA or a 
state-certified regulatory authority.

Section 23. Active and abandoned pipelines

    This section requires PHMSA to issue formal guidance to 
owners and operators of gas or hazardous liquid pipeline 
facilities, and applicable state regulatory authorities, 
regarding the operational definitions of pipelines and the 
process and requirements on changing status of a pipeline 
facility from active to abandoned.

Section 24. State pipeline safety agreements

    This section requires the Comptroller General to complete a 
study on state pipeline safety agreements made pursuant to 
section 60106 of title 49, United States Code, within 2 years 
of enactment. The GAO study would consider the integration and 
the overall cost of federal and state authorities' inspection 
activities, and the overall cost PHMSA would incur by carrying 
out interstate inspections without the existence of interstate 
agreements with States. Additionally, this section would 
require the Secretary of Transportation to provide written 
notification explaining the reasons for a denial of an 
interstate agreement to a state.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE




           *       *       *       *       *       *       *
SUBTITLE III--GENERAL AND INTERMODAL PROGRAMS

           *       *       *       *       *       *       *


               CHAPTER 61--ONE-CALL NOTIFICATION PROGRAMS


Sec.
6101. Purposes.
     * * * * * * *
[6107. Authorization of appropriations.]
6107. Funding.

           *       *       *       *       *       *       *


[Sec. 6107. Authorization of appropriations

  [(a) For Grants to States.--There are authorized to be 
appropriated to the Secretary to provide grants to States under 
section 6106 $1,000,000 for each of fiscal years 2012 through 
2015.
  [(b) For Administration.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to 
carry out sections 6103, 6104, and 6105 for fiscal years 2012 
through 2015.]

Sec. 6107. Funding

  Of the amounts provided under section 60125(a)(1), the 
Secretary shall withhold $1,058,000 for each of fiscal years 
2016 through 2019 to carry out section 6106.

           *       *       *       *       *       *       *


SUBTITLE VIII--PIPELINES

           *       *       *       *       *       *       *


                          CHAPTER 601--SAFETY


Sec.
60101. Definitions.
     * * * * * * *
60141. Standards for underground natural gas storage facilities.

Sec. 60101. Definitions

  (a) General.--In this chapter--
          (1) ``existing liquefied natural gas facility''--
                  (A) means a liquefied natural gas facility 
                for which an application to approve the site, 
                construction, or operation of the facility was 
                filed before March 1, 1978, with--
                          (i) the Federal Energy Regulatory 
                        Commission (or any predecessor); or
                          (ii) the appropriate State or local 
                        authority, if the facility is not 
                        subject to the jurisdiction of the 
                        Commission under the Natural Gas Act 
                        (15 U.S.C. 717 et seq.); but
                  (B) does not include a facility on which 
                construction is begun after November 29, 1979, 
                without the approval;
          (2) ``gas'' means natural gas, flammable gas, or 
        toxic or corrosive gas;
          (3) ``gas pipeline facility'' includes a pipeline, a 
        right of way, a facility, a building, or equipment used 
        in transporting gas or treating gas during its 
        transportation;
          (4) ``hazardous liquid'' means--
                  (A) petroleum or a petroleum product;
                  (B) nonpetroleum fuel, including biofuel, 
                that is flammable, toxic, or corrosive or would 
                be harmful to the environment if released in 
                significant quantities; and
                  (C) a substance the Secretary of 
                Transportation decides may pose an unreasonable 
                risk to life or property when transported by a 
                hazardous liquid pipeline facility in a liquid 
                state (except for liquefied natural gas);
          (5) ``hazardous liquid pipeline facility'' includes a 
        pipeline, a right of way, a facility, a building, or 
        equipment used or intended to be used in transporting 
        hazardous liquid;
          (6) ``interstate gas pipeline facility'' means a gas 
        pipeline facility--
                  (A) used to transport gas; and
                  (B) subject to the jurisdiction of the 
                Commission under the Natural Gas Act (15 U.S.C. 
                717 et seq.);
          (7) ``interstate hazardous liquid pipeline facility'' 
        means a hazardous liquid pipeline facility used to 
        transport hazardous liquid in interstate or foreign 
        commerce;
          (8) ``interstate or foreign commerce''--
                  (A) related to gas, means commerce--
                          (i) between a place in a State and a 
                        place outside that State; or
                          (ii) that affects any commerce 
                        described in subclause (A)(i) of this 
                        clause; and
                  (B) related to hazardous liquid, means 
                commerce between--
                          (i) a place in a State and a place 
                        outside that State; or
                          (ii) places in the same State through 
                        a place outside the State;
          (9) ``intrastate gas pipeline facility'' means a gas 
        pipeline facility and transportation of gas within a 
        State not subject to the jurisdiction of the Commission 
        under the Natural Gas Act (15 U.S.C. 717 et seq.);
          (10) ``intrastate hazardous liquid pipeline 
        facility'' means a hazardous liquid pipeline facility 
        that is not an interstate hazardous liquid pipeline 
        facility;
          (11) ``liquefied natural gas'' means natural gas in a 
        liquid or semisolid state;
          (12) ``liquefied natural gas accident'' means a 
        release, burning, or explosion of liquefied natural gas 
        from any cause, except a release, burning, or explosion 
        that, under regulations prescribed by the Secretary, 
        does not pose a threat to public health or safety, 
        property, or the environment;
          (13) ``liquefied natural gas conversion'' means 
        conversion of natural gas into liquefied natural gas or 
        conversion of liquefied natural gas into natural gas;
          (14) ``liquefied natural gas pipeline facility''--
                  (A) means a gas pipeline facility used for 
                transporting or storing liquefied natural gas, 
                or for liquefied natural gas conversion, in 
                interstate or foreign commerce; but
                  (B) does not include any part of a structure 
                or equipment located in navigable waters (as 
                defined in section 3 of the Federal Power Act 
                (16 U.S.C. 796));
          (15) ``municipality'' means a political subdivision 
        of a State;
          (16) ``new liquefied natural gas pipeline facility'' 
        means a liquefied natural gas pipeline facility except 
        an existing liquefied natural gas pipeline facility;
          (17) ``person'', in addition to its meaning under 
        section 1 of title 1 (except as to societies), includes 
        a State, a municipality, and a trustee, receiver, 
        assignee, or personal representative of a person;
          (18) ``pipeline facility'' means a gas pipeline 
        facility and a hazardous liquid pipeline facility;
          (19) ``pipeline transportation'' means transporting 
        gas and transporting hazardous liquid;
          (20) ``State'' means a State of the United States, 
        the District of Columbia, and Puerto Rico;
          (21) ``transporting gas''--
                  (A) means--
                          (i) the gathering, transmission, or 
                        distribution of gas by pipeline, or the 
                        storage of gas, in interstate or 
                        foreign commerce; and
                          (ii) the movement of gas through 
                        regulated gathering lines; but
                  (B) does not include gathering gas (except 
                through regulated gathering lines) in a rural 
                area outside a populated area designated by the 
                Secretary as a nonrural area[.];
          (22) ``transporting hazardous liquid''--
                  (A) means--
                          (i) the movement of hazardous liquid 
                        by pipeline, or the storage of 
                        hazardous liquid incidental to the 
                        movement of hazardous liquid by 
                        pipeline, in or affecting interstate or 
                        foreign commerce; and
                          (ii) the movement of hazardous liquid 
                        through regulated gathering lines; but
                  (B) does not include moving hazardous liquid 
                through--
                          (i) gathering lines (except regulated 
                        gathering lines) in a rural area;
                          (ii) onshore production, refining, or 
                        manufacturing facilities; or
                          (iii) storage or in-plant piping 
                        systems associated with onshore 
                        production, refining, or manufacturing 
                        facilities[.];
          (23) ``risk management'' means the systematic 
        application, by the owner or operator of a pipeline 
        facility, of management policies, procedures, finite 
        resources, and practices to the tasks of identifying, 
        analyzing, assessing, reducing, and controlling risk in 
        order to protect employees, the general public, the 
        environment, and pipeline facilities;
          (24) ``risk management plan'' means a management plan 
        utilized by a gas or hazardous liquid pipeline facility 
        owner or operator that encompasses risk management; 
        [and]
          (25) ``Secretary'' means the Secretary of 
        Transportation[.]; and
          (26) ``underground natural gas storage facility'' 
        means a gas pipeline facility that stores gas in an 
        underground facility, including--
                  (A) a depleted hydrocarbon reservoir;
                  (B) an aquifer reservoir; or
                  (C) a solution-mined salt cavern reservoir.
  (b) Gathering Lines.--(1)(A) Not later than October 24, 1994, 
the Secretary shall prescribe standards defining the term 
``gathering line''.
  (B) In defining ``gathering line'' for gas, the Secretary--
          (i) shall consider functional and operational 
        characteristics of the lines to be included in the 
        definition; and
          (ii) is not bound by a classification the Commission 
        establishes under the Natural Gas Act (15 U.S.C. 717 et 
        seq.).
  (2)(A) Not later than October 24, 1995, the Secretary, if 
appropriate, shall prescribe standards defining the term 
``regulated gathering line''. In defining the term, the 
Secretary shall consider factors such as location, length of 
line from the well site, operating pressure, throughput, and 
the composition of the transported gas or hazardous liquid, as 
appropriate, in deciding on the types of lines that 
functionally are gathering but should be regulated under this 
chapter because of specific physical characteristics.
  (B)(i) The Secretary also shall consider diameter when 
defining ``regulated gathering line'' for hazardous liquid.
  (ii) The definition of ``regulated gathering line'' for 
hazardous liquid may not include a crude oil gathering line 
that has a nominal diameter of not more than 6 inches, is 
operated at low pressure, and is located in a rural area that 
is not unusually sensitive to environmental damage.

           *       *       *       *       *       *       *


Sec. 60105. State pipeline safety program certifications

  (a) General Requirements and Submission.--Except as provided 
in this section and sections 60114 and 60121 of this title, the 
Secretary of Transportation may not prescribe or enforce safety 
standards and practices for an intrastate pipeline facility or 
intrastate pipeline transportation to the extent that the 
safety standards and practices are regulated by a State 
authority (including a municipality if the standards and 
practices apply to intrastate gas pipeline transportation) that 
submits to the Secretary annually a certification for the 
facilities and transportation that complies with subsections 
(b) and (c) of this section.
  (b) Contents.--Each certification submitted under subsection 
(a) of this section shall state that the State authority--
          (1) has regulatory jurisdiction over the standards 
        and practices to which the certification applies;
          (2) has adopted, by the date of certification, each 
        applicable standard prescribed under this chapter or, 
        if a standard under this chapter was prescribed not 
        later than 120 days before certification, is taking 
        steps to adopt that standard;
          (3) is enforcing each adopted standard through ways 
        that include inspections conducted by State employees 
        meeting the qualifications the Secretary prescribes 
        under section 60107(d)(1)(C) of this title;
          (4) is encouraging and promoting the establishment of 
        a program designed to prevent damage by demolition, 
        excavation, tunneling, or construction activity to the 
        pipeline facilities to which the certification applies 
        that subjects persons who violate the applicable 
        requirements of that program to civil penalties and 
        other enforcement actions that are substantially the 
        same as are provided under this chapter, and addresses 
        the elements in section 60134(b);
          (5) may require record maintenance, reporting, and 
        inspection substantially the same as provided under 
        section 60117 of this title;
          (6) may require that plans for inspection and 
        maintenance under section 60108 (a) and (b) of this 
        title be filed for approval; and
          (7) may enforce safety standards of the authority 
        under a law of the State by injunctive relief and civil 
        penalties substantially the same as provided under 
        sections 60120 and 60122(a)(1) and (b)-(f) of this 
        title.
  (c) Reports.--(1) Each certification submitted under 
subsection (a) of this section shall include a report that 
contains--
          (A) the name and address of each person to whom the 
        certification applies that is subject to the safety 
        jurisdiction of the State authority;
          (B) each accident or incident reported during the 
        prior 12 months by that person involving a fatality, 
        personal injury requiring hospitalization, or property 
        damage or loss of more than an amount the Secretary 
        establishes (even if the person sustaining the 
        fatality, personal injury, or property damage or loss 
        is not subject to the safety jurisdiction of the 
        authority), any other accident the authority considers 
        significant, and a summary of the investigation by the 
        authority of the cause and circumstances surrounding 
        the accident or incident;
          (C) the record maintenance, reporting, and inspection 
        practices conducted by the authority to enforce 
        compliance with safety standards prescribed under this 
        chapter to which the certification applies, including 
        the number of inspections of pipeline facilities the 
        authority made during the prior 12 months; and
          (D) any other information the Secretary requires.
  (2) The report included in the first certification submitted 
under subsection (a) of this section is only required to state 
information available at the time of certification.
  (d) Application.--A certification in effect under this 
section does not apply to safety standards prescribed under 
this chapter after the date of certification. This chapter 
applies to each applicable safety standard prescribed after the 
date of certification until the State authority adopts the 
standard and submits the appropriate certification to the 
Secretary under subsection (a) of this section.
  (e) Monitoring.--The Secretary may monitor a safety program 
established under this section to ensure that the program 
complies with the certification. A State authority shall 
cooperate with the Secretary under this subsection.
  (f) Rejections of Certification.--If after receiving a 
certification the Secretary decides the State authority is not 
enforcing satisfactorily compliance with applicable safety 
standards prescribed under this chapter, the Secretary may 
reject the certification, assert United States Government 
jurisdiction, or take other appropriate action to achieve 
adequate enforcement. The Secretary shall give the authority 
notice and an opportunity for a hearing before taking final 
action under this subsection. When notice is given, the burden 
of proof is on the authority to demonstrate that it is 
enforcing satisfactorily compliance with the prescribed 
standards.
  (g) Joint Inspectors.--At the request of a State authority, 
the Secretary shall allow for a certified State authority under 
this section to participate in the inspection of an interstate 
pipeline facility.

Sec. 60106. State pipeline safety agreements

  (a) Agreements Without Certification.--If the Secretary of 
Transportation does not receive a certification under section 
60105 of this title, the Secretary may make an agreement with a 
State authority (including a municipality if the agreement 
applies to intrastate gas pipeline transportation) authorizing 
it to take necessary action. Each agreement shall--
          (1) establish an adequate program for record 
        maintenance, reporting, and inspection designed to 
        assist compliance with applicable safety standards 
        prescribed under this chapter; and
          (2) prescribe procedures for approval of plans of 
        inspection and maintenance substantially the same as 
        required under section 60108 (a) and (b) of this title.
  (b) Agreements With Certification.--
          (1) In general.--If the Secretary accepts a 
        certification under section 60105 and makes the 
        determination required under this subsection, the 
        Secretary may make an agreement with a State authority 
        authorizing it to participate in the oversight of 
        interstate pipeline transportation. Each such agreement 
        shall include a plan for the State authority to 
        participate in special investigations involving 
        incidents or new construction and allow the State 
        authority to participate in other activities overseeing 
        interstate pipeline transportation or to assume 
        additional inspection or investigatory duties. Nothing 
        in this section modifies section 60104(c) or authorizes 
        the Secretary to delegate the enforcement of safety 
        standards for interstate pipeline facilities prescribed 
        under this chapter to a State authority.
          (2) Determinations required.--The Secretary may not 
        enter into an agreement under this subsection, unless 
        the Secretary determines in writing that--
                  (A) the agreement allowing participation of 
                the State authority is consistent with the 
                Secretary's program for inspection and 
                consistent with the safety policies and 
                provisions provided under this chapter;
                  (B) the interstate participation agreement 
                would not adversely affect the oversight 
                responsibilities of intrastate pipeline 
                transportation by the State authority;
                  (C) the State is carrying out a program 
                demonstrated to promote preparedness and risk 
                prevention activities that enable communities 
                to live safely with pipelines;
                  (D) the State meets the minimum standards for 
                State one-call notification set forth in 
                chapter 61; and
                  (E) the actions planned under the agreement 
                would not impede interstate commerce or 
                jeopardize public safety.
          (3) Existing agreements.--If requested by the State 
        authority, the Secretary shall authorize a State 
        authority which had an interstate agreement in effect 
        after January 31, 1999, to oversee interstate pipeline 
        transportation pursuant to the terms of that agreement 
        until the Secretary determines that the State meets the 
        requirements of paragraph (2) and executes a new 
        agreement, or until December 31, 2003, whichever is 
        sooner. Nothing in this paragraph shall prevent the 
        Secretary, after affording the State notice, hearing, 
        and an opportunity to correct any alleged deficiencies, 
        from terminating an agreement that was in effect before 
        enactment of the Pipeline Safety Improvement Act of 
        2002 if--
                  (A) the State authority fails to comply with 
                the terms of the agreement;
                  (B) implementation of the agreement has 
                resulted in a gap in the oversight 
                responsibilities of intrastate pipeline 
                transportation by the State authority; or
                  (C) continued participation by the State 
                authority in the oversight of interstate 
                pipeline transportation has had an adverse 
                impact on pipeline safety.
          (4) Notice upon denial.--If a State authority 
        requests an interstate agreement under this section and 
        the Secretary denies such request, the Secretary shall 
        provide written notification to the State authority of 
        the denial that includes an explanation of the reasons 
        for such denial.
  (c) Notification.--
          (1) In general.--Each agreement shall require the 
        State authority to notify the Secretary promptly of a 
        violation or probable violation of an applicable safety 
        standard discovered as a result of action taken in 
        carrying out an agreement under this section.
          (2) Response by Secretary.--If a State authority 
        notifies the Secretary under paragraph (1) of a 
        violation or probable violation of an applicable safety 
        standard, the Secretary, not later than 60 days after 
        the date of receipt of the notification, shall--
                  (A) issue an order under section 60118(b) or 
                take other appropriate enforcement actions to 
                ensure compliance with this chapter; or
                  (B) provide the State authority with a 
                written explanation as to why the Secretary has 
                determined not to take such actions.
  (d) Monitoring.--The Secretary may monitor a safety program 
established under this section to ensure that the program 
complies with the agreement. A State authority shall cooperate 
with the Secretary under this subsection.
  (e) Ending agreements.--
          (1) Permissive termination.--The Secretary may end an 
        agreement under this section when the Secretary finds 
        that the State authority has not complied with any 
        provision of the agreement.
          (2) Mandatory termination of agreement.--The 
        Secretary shall end an agreement for the oversight of 
        interstate pipeline transportation if the Secretary 
        finds that--
                  (A) implementation of such agreement has 
                resulted in a gap in the oversight 
                responsibilities of intrastate pipeline 
                transportation by the State authority;
                  (B) the State actions under the agreement 
                have failed to meet the requirements under 
                subsection (b); or
                  (C) continued participation by the State 
                authority in the oversight of interstate 
                pipeline transportation would not promote 
                pipeline safety.
          (3) Procedural requirements.--The Secretary shall 
        give notice and an opportunity for a hearing to a State 
        authority before ending an agreement under this 
        section. The Secretary may provide a State an 
        opportunity to correct any deficiencies before ending 
        an agreement. The finding and decision to end the 
        agreement shall be published in the Federal Register 
        and may not become effective for at least 15 days after 
        the date of publication unless the Secretary finds that 
        continuation of an agreement poses an imminent hazard.

Sec. 60107. State pipeline safety grants

  (a) General Authority.--If a State authority files an 
application not later than September 30 of a calendar year, the 
Secretary of Transportation shall pay not more than 80 percent 
of the cost of the personnel, equipment, and activities the 
authority reasonably requires during the next calendar year--
          (1) to carry out a safety program under a 
        certification under section 60105 of this title or an 
        agreement under section 60106 of this title; or
          (2) to act as an agent of the Secretary on interstate 
        gas pipeline facilities or interstate hazardous liquid 
        pipeline facilities.
  [(b) Payments.--After notifying and consulting with a State 
authority, the Secretary may withhold any part of a payment 
when the Secretary decides that the authority is not carrying 
out satisfactorily a safety program or not acting 
satisfactorily as an agent. The Secretary may pay an authority 
under this section only when the authority ensures the 
Secretary that it will provide the remaining costs of a safety 
program and that the total State amount spent for a safety 
program (excluding grants of the United States Government) will 
at least equal the average amount spent for gas and hazardous 
liquid safety programs for the 3 fiscal years prior to the 
fiscal year in which the Secretary makes the payment, except 
when the Secretary waives this requirement. For each of fiscal 
years 2012 and 2013, the Secretary shall grant such a waiver to 
a State if the State can demonstrate an inability to maintain 
or increase the required funding share of its safety program at 
or above the level required by this subsection due to economic 
hardship in that State. For fiscal year 2014, and each fiscal 
year thereafter, the Secretary may grant such a waiver to a 
State if the State can make the demonstration described in the 
preceding sentence.]
  (b) Payments.--After notifying and consulting with a State 
authority, the Secretary may withhold any part of a payment 
when the Secretary decides that the authority is not carrying 
out satisfactorily a safety program or not acting 
satisfactorily as an agent. The Secretary may pay an authority 
under this section only when the authority ensures the 
Secretary that it will provide the remaining costs of a safety 
program, unless the Secretary waives the requirement to provide 
such remaining costs.
  (c) Apportionment and Method of Payment.--The Secretary shall 
apportion the amount appropriated to carry out this section 
among the States. A payment may be made under this section in 
installments, in advance, or on a reimbursable basis.
  (d) Additional Authority and Considerations.--(1) The 
Secretary may prescribe--
          (A) the form of, and way of filing, an application 
        under this section;
          (B) reporting and fiscal procedures the Secretary 
        considers necessary to ensure the proper accounting of 
        money of the Government; and
          (C) qualifications for a State to meet to receive a 
        payment under this section, including qualifications 
        for State employees who perform inspection activities 
        under section 60105 or 60106 of this title.
  (2) The qualifications prescribed under paragraph (1)(C) of 
this subsection may--
          (A) consider the experience and training of the 
        employee;
          (B) order training or other requirements; and
          (C) provide for approval of qualifications on a 
        conditional basis until specified requirements are met.
  (e) Repurposing of Funds.--If a State program's certification 
is rejected under section 60105(f) or such program is otherwise 
suspended or interrupted, the Secretary may use any 
undistributed, deobligated, or recovered funds authorized under 
this section to carry out pipeline safety activities for that 
State within the period of availability for such funds.

           *       *       *       *       *       *       *


Sec. 60115. Technical safety standards committees

  (a) Organization.--The Technical Pipeline Safety Standards 
Committee and the Technical Hazardous Liquid Pipeline Safety 
Standards Committee are committees in the Department of 
Transportation. The committees referred to in the preceding 
sentence shall serve as peer review committees for carrying out 
this chapter. Peer reviews conducted by the committees shall be 
treated for purposes of all Federal laws relating to risk 
assessment and peer review (including laws that take effect 
after the date of the enactment of the Accountable Pipeline 
Safety and Partnership Act of 1996) as meeting any peer review 
requirements of such laws.
  (b) Composition and Appointment.--(1) The Technical Pipeline 
Safety Standards Committee is composed of 15 members appointed 
by the Secretary of Transportation after consulting with public 
and private agencies concerned with the technical aspect of 
transporting gas or operating a gas pipeline facility. Each 
member must be experienced in the safety regulation of 
transporting gas and of gas pipeline facilities or technically 
qualified, by training, experience, or knowledge in at least 
one field of engineering applicable to transporting gas or 
operating a gas pipeline facility, to evaluate gas pipeline 
safety standards or risk management principles.
  (2) The Technical Hazardous Liquid Pipeline Safety Standards 
Committee is composed of 15 members appointed by the Secretary 
after consulting with public and private agencies concerned 
with the technical aspect of transporting hazardous liquid or 
operating a hazardous liquid pipeline facility. Each member 
must be experienced in the safety regulation of transporting 
hazardous liquid and of hazardous liquid pipeline facilities or 
technically qualified, by training, experience, or knowledge in 
at least one field of engineering applicable to transporting 
hazardous liquid or operating a hazardous liquid pipeline 
facility, to evaluate hazardous liquid pipeline safety 
standards or risk management principles.
  (3) The members of each committee are appointed as follows:
          (A) 5 individuals selected from departments, 
        agencies, and instrumentalities of the United States 
        Government and of the States.
          (B) 5 individuals selected from the natural gas or 
        hazardous liquid industry, as appropriate, after 
        consulting with industry representatives.
          (C) 5 individuals selected from the general public.
  (4)(A) Two of the individuals selected for each committee 
under paragraph (3)(A) of this subsection must be [State 
commissioners. The Secretary shall consult with the national 
organization of State commissions before selecting those 2 
individuals.] State officials. The Secretary shall consult with 
national organizations representing State commissioners or 
Governors before making a selection under this subparagraph.
  (B) At least 3 of the individuals selected for each committee 
under paragraph (3)(B) of this subsection must be currently in 
the active operation of natural gas pipelines or hazardous 
liquid pipeline facilities, as appropriate. At least 1 of the 
individuals selected for each committee under paragraph (3)(B) 
shall have education, background, or experience in risk 
assessment and cost-benefit analysis. The Secretary shall 
consult with the national organizations representing the owners 
and operators of pipeline facilities before selecting 
individuals under paragraph (3)(B).
  (C) Two of the individuals selected for each committee under 
paragraph (3)(C) of this subsection must have education, 
background, or experience in environmental protection or public 
safety. At least 1 of the individuals selected for each 
committee under paragraph (3)(C) shall have education, 
background, or experience in risk assessment and cost-benefit 
analysis. At least one individual selected for each committee 
under paragraph (3)(C) may not have a financial interest in the 
pipeline, petroleum, or natural gas industries.
  (D) None of the individuals selected for a committee under 
paragraph (3)(C) may have a significant financial interest in 
the pipeline, petroleum, or gas industry.
  (5) Within 90 days of the date of enactment of the PIPES Act 
of 2016, the Secretary shall fill all vacancies on the 
Technical Pipeline Safety Standards Committee, the Technical 
Hazardous Liquid Pipeline Safety Standards Committee, and any 
other committee established pursuant to this section. After 
that period, the Secretary shall fill a vacancy on any such 
committee not later than 60 days after the vacancy occurs.
  (c) Committee Reports on Proposed Standards.--(1) The 
Secretary shall give to--
          (A) the Technical Pipeline Safety Standards Committee 
        each standard proposed under this chapter for 
        transporting gas and for gas pipeline facilities 
        including the risk assessment information and other 
        analyses supporting each proposed standard; and
          (B) the Technical Hazardous Liquid Pipeline Safety 
        Standards Committee each standard proposed under this 
        chapter for transporting hazardous liquid and for 
        hazardous liquid pipeline facilities including the risk 
        assessment information and other analyses supporting 
        each proposed standard.
  (2) Not later than 90 days after receiving the proposed 
standard and supporting analyses, the appropriate committee 
shall prepare and submit to the Secretary a report on the 
technical feasibility, reasonableness, cost-effectiveness, and 
practicability of the proposed standard and include in the 
report recommended actions. The Secretary shall publish each 
report, including any recommended actions and minority views. 
The report if timely made is part of the proceeding for 
prescribing the standard. The Secretary is not bound by the 
conclusions of the committee. However, if the Secretary rejects 
the conclusions of the committee, the Secretary shall publish 
the reasons.
  (3) The Secretary may prescribe a standard after the end of 
the 90-day period.
  (d) Proposed Committee Standards and Policy Development 
Recommendations.--(1) The Technical Pipeline Safety Standards 
Committee may propose to the Secretary a safety standard for 
transporting gas and for gas pipeline facilities. The Technical 
Hazardous Liquid Pipeline Safety Standards Committee may 
propose to the Secretary a safety standard for transporting 
hazardous liquid and for hazardous liquid pipeline facilities.
  (2) If requested by the Secretary, a committee shall make 
policy development recommendations to the Secretary.
  (e) Meetings.--Each committee shall meet with the Secretary 
at least up to 4 times annually. Each committee proceeding 
shall be recorded. The record of the proceeding shall be 
available to the public.
  (f) Expenses.--A member of a committee under this section is 
entitled to expenses under section 5703 of title 5. A payment 
under this subsection does not make a member an officer or 
employee of the Government. This subsection does not apply to 
members regularly employed by the Government.

           *       *       *       *       *       *       *


Sec. 60117. Administrative

  (a) General Authority.--To carry out this chapter, the 
Secretary of Transportation may conduct investigations, make 
reports, issue subpenas, conduct hearings, require the 
production of records, take depositions, and conduct research, 
testing, development, demonstration, and training activities 
and promotional activities relating to prevention of damage to 
pipeline facilities. The Secretary may not charge a tuition-
type fee for training State or local government personnel in 
the enforcement of regulations prescribed under this chapter.
  (b) Records, Reports, and Information.--To enable the 
Secretary to decide whether a person owning or operating a 
pipeline facility is complying with this chapter and standards 
prescribed or orders issued under this chapter, the person 
shall--
          (1) maintain records, make reports, and provide 
        information the Secretary requires; and
          (2) make the records, reports, and information 
        available when the Secretary requests.
The Secretary may require owners and operators of gathering 
lines to provide the Secretary information pertinent to the 
Secretary's ability to make a determination as to whether and 
to what extent to regulate gathering lines.
  (c) Entry and Inspection.--An officer, employee, or agent of 
the Department of Transportation designated by the Secretary, 
on display of proper credentials to the individual in charge, 
may enter premises to inspect the records and property of a 
person at a reasonable time and in a reasonable way to decide 
whether a person is complying with this chapter and standards 
prescribed or orders issued under this chapter.
  (d) Confidentiality of Information.--Information related to a 
confidential matter referred to in section 1905 of title 18 
that is obtained by the Secretary or an officer, employee, or 
agent in carrying out this section may be disclosed only to 
another officer or employee concerned with carrying out this 
chapter or in a proceeding under this chapter.
  (e) Use of Accident Reports.--(1) Each accident report made 
by an officer, employee, or agent of the Department may be used 
in a judicial proceeding resulting from the accident. The 
officer, employee, or agent may be required to testify in the 
proceeding about the facts developed in investigating the 
accident. The report shall be made available to the public in a 
way that does not identify an individual.
  (2) Each report related to research and demonstration 
projects and related activities is public information.
  (f) Testing Facilities Involved in Accidents.--The Secretary 
may require testing of a part of a pipeline facility subject to 
this chapter that has been involved in or affected by an 
accident only after--
          (1) notifying the appropriate State official in the 
        State in which the facility is located; and
          (2) attempting to negotiate a mutually acceptable 
        plan for testing with the owner of the facility and, 
        when the Secretary considers appropriate, the National 
        Transportation Safety Board.
  (g) Providing Safety Information.--On request, the Secretary 
shall provide the Federal Energy Regulatory Commission or 
appropriate State authority with information the Secretary has 
on the safety of material, operations, devices, or processes 
related to pipeline transportation or operating a pipeline 
facility.
  (h) Cooperation.--The Secretary may--
          (1) advise, assist, and cooperate with other 
        departments, agencies, and instrumentalities of the 
        United States Government, the States, and public and 
        private agencies and persons in planning and developing 
        safety standards and ways to inspect and test to decide 
        whether those standards have been complied with;
          (2) consult with and make recommendations to other 
        departments, agencies, and instrumentalities of the 
        Government, State and local governments, and public and 
        private agencies and persons to develop and encourage 
        activities, including the enactment of legislation, 
        that will assist in carrying out this chapter and 
        improve State and local pipeline safety programs; and
          (3) participate in a proceeding involving safety 
        requirements related to a liquefied natural gas 
        facility before the Commission or a State authority.
  (i) Promoting Coordination.--(1) After consulting with 
appropriate State officials, the Secretary shall establish 
procedures to promote more effective coordination between 
departments, agencies, and instrumentalities of the Government 
and State authorities with regulatory authority over pipeline 
facilities about responses to a pipeline accident.
  (2) In consultation with the Occupational Safety and Health 
Administration, the Secretary shall establish procedures to 
notify the Administration of any pipeline accident in which an 
excavator that has caused damage to a pipeline may have 
violated a regulation of the Administration.
  (j) Withholding Information From Congress.--This section does 
not authorize information to be withheld from a committee of 
Congress authorized to have the information.
  (k) Authority for Cooperative Agreements.--To carry out this 
chapter, the Secretary may enter into grants, cooperative 
agreements, and other transactions with any person, agency, or 
instrumentality of the United States, any unit of State or 
local government, any educational institution, or any other 
entity to further the objectives of this chapter. The 
objectives of this chapter include the development, 
improvement, and promotion of one-call damage prevention 
programs, research, risk assessment, and mapping.
  (l) Safety Orders.--
          (1) In general.--Not later than December 31, 2007, 
        the Secretary shall issue regulations providing that, 
        after notice and opportunity for a hearing, if the 
        Secretary determines that a pipeline facility has a 
        condition that poses a pipeline integrity risk to 
        public safety, property, or the environment, the 
        Secretary may order the operator of the facility to 
        take necessary corrective action, including physical 
        inspection, testing, repair, or other appropriate 
        action, to remedy that condition.
          (2) Considerations.--In making a determination under 
        paragraph (1), the Secretary, if relevant and pursuant 
        to the regulations issued under paragraph (1), shall 
        consider--
                  (A) the considerations specified in 
                paragraphs (1) through (6) of section 60112(b);
                  (B) the likelihood that the condition will 
                impair the serviceability of a pipeline;
                  (C) the likelihood that the condition will 
                worsen over time; and
                  (D) the likelihood that the condition is 
                present or could develop on other areas of the 
                pipeline.
  (m) Restoration of Operations.--
          (1) In general.--The Secretary may advise, assist, 
        and cooperate with the heads of other departments, 
        agencies, and instrumentalities of the United States 
        Government, the States, and public and private agencies 
        and persons to facilitate the restoration of pipeline 
        operations that have been or are anticipated to become 
        disrupted by manmade or natural disasters.
          (2) Savings clause.--Nothing in this section alters 
        or amends the authorities and responsibilities of any 
        department, agency, or instrumentality of the United 
        States Government, other than the Department of 
        Transportation.
  (n) Cost Recovery for Design Reviews.--
          (1) In general.--
                  (A) Review costs.--For any project described 
                in subparagraph (B), if the Secretary conducts 
                facility design safety reviews in connection 
                with a proposal to construct, expand, or 
                operate a gas or hazardous liquid pipeline 
                facility or liquefied natural gas pipeline 
                facility, including construction inspections 
                and oversight, the Secretary may require the 
                person proposing the project to pay the costs 
                incurred by the Secretary relating to such 
                reviews. If the Secretary exercises the cost 
                recovery authority described in this paragraph, 
                the Secretary shall prescribe a fee structure 
                and assessment methodology that is based on the 
                costs of providing these reviews and shall 
                prescribe procedures to collect fees under this 
                paragraph. The Secretary may not collect design 
                safety review fees under this paragraph and 
                section 60301 for the same design safety 
                review.
                  (B) Projects to which applicable.--
                Subparagraph (A) applies to any project that--
                          (i) has design and construction costs 
                        totaling at least $2,500,000,000, as 
                        periodically adjusted by the Secretary 
                        to take into account increases in the 
                        Consumer Price Index for all-urban 
                        consumers published by the Department 
                        of Labor, based on--
                                  (I) the cost estimate 
                                provided to the Federal Energy 
                                Regulatory Commission in an 
                                application for a certificate 
                                of public convenience and 
                                necessity for a gas pipeline 
                                facility or an application for 
                                authorization for a liquefied 
                                natural gas pipeline facility; 
                                or
                                  (II) a good faith estimate 
                                developed by the person 
                                proposing a hazardous liquid 
                                pipeline facility and submitted 
                                to the Secretary; or
                          (ii) uses new or novel technologies 
                        or design, as determined by the 
                        Secretary.
          (2) Notification.--For any new pipeline facility 
        construction project in which the Secretary will 
        conduct design reviews, the person proposing the 
        project shall notify the Secretary and provide the 
        design specifications, construction plans and 
        procedures, and related materials at least 120 days 
        prior to the commencement of construction. To the 
        maximum extent practicable, not later than 90 days 
        after receiving such design specifications, 
        construction plans and procedures, and related 
        materials, the Secretary shall provide written 
        comments, feedback, and guidance on the project.
          (3) Pipeline Safety Design Review Fund.--
                  (A) Establishment.--There is established a 
                Pipeline Safety Design Review Fund in the 
                Treasury of the United States.
                  (B) Deposits.--The Secretary shall deposit 
                funds paid under this subsection into the Fund.
                  (C) Use.--Amounts in the Fund shall be 
                available to the Secretary, in amounts 
                specified in appropriations Acts, to offset the 
                costs of conducting facility design safety 
                reviews under this subsection.
          (4) No additional permitting authority.--Nothing in 
        this subsection may be construed as authorizing the 
        Secretary to require a person to obtain a permit before 
        beginning design and construction in connection with a 
        project described in paragraph (1)(B).
  (o) Emergency Order Authority.--
          (1) In general.--If the Secretary determines that an 
        unsafe condition or practice, or a combination of 
        unsafe conditions and practices, constitutes or is 
        causing an imminent hazard, the Secretary may issue an 
        emergency order described in paragraph (3) imposing 
        emergency restrictions, prohibitions, and safety 
        measures on owners and operators of gas or hazardous 
        liquid pipeline facilities without prior notice or an 
        opportunity for a hearing, but only to the extent 
        necessary to abate the imminent hazard.
          (2) Considerations.--Before issuing an emergency 
        order under paragraph (1), the Secretary shall 
        consider, after consultation with appropriate Federal 
        agencies, State agencies, or other entities, the 
        following, as appropriate:
                  (A) The impact of the emergency order on 
                public health and safety.
                  (B) The impact, if any, of the emergency 
                order on the national or regional economy or 
                national security.
                  (C) The impact of the emergency order on 
                owners and operators of pipeline facilities.
          (3) Written order.--An emergency order issued by the 
        Secretary pursuant to paragraph (1) with respect to an 
        imminent hazard shall contain a written description 
        of--
                  (A) the violation, condition, or practice 
                that constitutes or is causing the imminent 
                hazard;
                  (B) the entities subject to the order;
                  (C) the restrictions, prohibitions, or safety 
                measures imposed;
                  (D) the standards and procedures for 
                obtaining relief from the order;
                  (E) how the order is tailored to abate the 
                imminent hazard and the reasons the authorities 
                under section 60112 and 60117(l) are 
                insufficient to do so; and
                  (F) how the considerations were taken into 
                account pursuant to subsection (2).
          (4) Opportunity for review.--Upon receipt of a 
        petition for review from an entity subject to, and 
        adversely affected by, an emergency order issued under 
        this subsection, the Secretary shall provide an 
        opportunity for a review of the order under section 554 
        of title 5 to determine whether the order should remain 
        in effect, be modified, or be terminated.
          (5) Expiration of effectiveness order.--If a petition 
        for review of an emergency order is filed under 
        paragraph (4) and an agency decision with respect to 
        the petition is not issued on or before the last day of 
        the 30-day period beginning on the date on which the 
        petition is filed, the order shall cease to be 
        effective on such day, unless the Secretary determines 
        in writing on or before the last day of such period 
        that the imminent hazard still exists.
          (6) Judicial review of orders.--After a final agency 
        action under the review process described in paragraph 
        (4), or the issuance of a written determination by the 
        Secretary pursuant to paragraph (5), an entity subject 
        to, and adversely affected by, an emergency order 
        issued under this subsection may seek judicial review 
        of the order in a district court of the United States 
        and shall be given expedited consideration.
          (7) Regulations.--
                  (A) Temporary regulations.--Not later than 60 
                days after the date of enactment of the PIPES 
                Act of 2016, the Secretary shall issue such 
                temporary regulations as are necessary to carry 
                out this subsection. The temporary regulations 
                shall expire on the date of issuance of the 
                final regulations required under subparagraph 
                (B).
                  (B) Final regulations.--Not later than 270 
                days after such date of enactment, the 
                Secretary shall issue such regulations as are 
                necessary to carry out this subsection. Such 
                regulations shall ensure that the review 
                process described in paragraph (4) contains the 
                same procedures as subsections (d) and (g) of 
                section 109.19 of title 49, Code of Federal 
                Regulations, and is otherwise consistent with 
                the review process developed under such 
                section, to the greatest extent practicable and 
                not inconsistent with this section.
          (8) Imminent hazard defined.--In this subsection, the 
        term ``imminent hazard'' means the existence of a 
        condition relating to a gas or hazardous liquid 
        pipeline facility that presents a substantial 
        likelihood that death, serious illness, severe personal 
        injury, or a substantial endangerment to health, 
        property, or the environment may occur before the 
        reasonably foreseeable completion date of a formal 
        proceeding begun to lessen the risk of such death, 
        illness, injury, or endangerment.
          (9) Limitation and savings clause.--An emergency 
        order issued under this subsection may not be construed 
        to--
                  (A) alter, amend, or limit the Secretary's 
                obligations under, or the applicability of, 
                section 553 of title 5; or
                  (B) provide the authority to amend the Code 
                of Federal Regulations.

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Sec. 60124. Biennial reports

  (a) Submission and Contents.--Not later than August 15, 1997, 
and every 2 years thereafter, the Secretary of Transportation 
shall submit to Congress a report on carrying out this chapter 
for the 2 immediately preceding calendar years for gas and a 
report on carrying out this chapter for such period for 
hazardous liquid. Each report shall include the following 
information about the prior year for gas or hazardous liquid, 
as appropriate:
          (1) a thorough compilation of the leak repairs, 
        accidents, and casualties and a statement of cause when 
        investigated and established by the National 
        Transportation Safety Board.
          (2) a list of applicable pipeline safety standards 
        prescribed under this chapter including identification 
        of standards prescribed during the year.
          (3) a summary of the reasons for each waiver granted 
        under section 60118(c) and (d) of this title.
          (4) an evaluation of the degree of compliance with 
        applicable safety standards, including a list of 
        enforcement actions and compromises of alleged 
        violations by location and company name.
          (5) a summary of outstanding problems in carrying out 
        this chapter, in order of priority.
          (6) an analysis and evaluation of--
                  (A) research activities, including their 
                policy implications, completed as a result of 
                the United States Government and private 
                sponsorship; [and]
                  (B) technological progress in safety 
                achieved[.]; and
                  (C) a summary of each research project 
                carried out with Federal and non-Federal 
                entities pursuant to section 12 of the Pipeline 
                Safety Improvement Act of 2002 and a review of 
                how intended improvements impact safety.
          (7) a list, with a brief statement of the issues, of 
        completed or pending judicial actions under this 
        chapter.
          (8) the extent to which technical information was 
        distributed to the scientific community and consumer-
        oriented information was made available to the public.
          (9) a compilation of certifications filed under 
        section 60105 of this title that were--
                  (A) in effect; or
                  (B) rejected in any part by the Secretary and 
                a summary of the reasons for each rejection.
          (10) a compilation of agreements made under section 
        60106 of this title that were--
                  (A) in effect; or
                  (B) ended in any part by the Secretary and a 
                summary of the reasons for ending each 
                agreement.
          (11) a description of the number and qualifications 
        of State pipeline safety inspectors in each State for 
        which a certification under section 60105 of this title 
        or an agreement under section 60106 of this title is in 
        effect and the number and qualifications of inspectors 
        the Secretary recommends for that State.
          (12) recommendations for legislation the Secretary 
        considers necessary--
                  (A) to promote cooperation among the States 
                in improving--
                          (i) gas pipeline safety; or
                          (ii) hazardous liquid pipeline safety 
                        programs; and
                  (B) to strengthen the national gas pipeline 
                safety program.
  (b) Submission of One Report.--The Secretary may submit one 
report to carry out subsection (a) of this section.

Sec. 60125. Authorization of appropriations

  (a) Gas and Hazardous Liquid.--
          (1) In general.--To carry out the provisions of this 
        chapter related to gas and hazardous liquid and section 
        12 of the Pipeline Safety Improvement Act of 2002 (49 
        U.S.C. 60101 note; Public Law 107-355), [there is 
        authorized to be appropriated to the Department of 
        Transportation for each of fiscal years 2012 through 
        2015, from fees collected under section 60301, 
        $90,679,000, of which $4,746,000 is for carrying out 
        such section 12 and $36,194,000 is for making grants.] 
        there is authorized to be appropriated to the 
        Department of Transportation from fees collected under 
        sections 60301 and 60302--
                  (A) $124,500,000 for fiscal year 2016, of 
                which $9,000,000 shall be expended for carrying 
                out such section 12 and $39,385,000 shall be 
                expended for making grants;
                  (B) $128,000,000 for fiscal year 2017 of 
                which $9,000,000 shall be expended for carrying 
                out such section 12 and $41,885,000 shall be 
                expended for making grants;
                  (C) $131,000,000 for fiscal year 2018, of 
                which $9,000,000 shall be expended for carrying 
                out such section 12 and $44,885,000 shall be 
                expended for making grants; and
                  (D) $134,000,000 for fiscal year 2019, of 
                which $9,000,000 shall be expended for carrying 
                out such section 12 and $47,885,000 shall be 
                expended for making grants.
          (2) Trust fund amounts.--In addition to the amounts 
        authorized to be appropriated by paragraph (1), [there 
        is authorized to be appropriated for each of fiscal 
        years 2012 through 2015 from the Oil Spill Liability 
        Trust Fund to carry out the provisions of this chapter 
        related to hazardous liquid and section 12 of the 
        Pipeline Safety Improvement Act of 2002 (49 U.S.C. 
        60101 note; Public Law 107-355), $18,573,000, of which 
        $2,174,000 is for carrying out such section 12 and 
        $4,558,000 is for making grants.] there is authorized 
        to be appropriated from the Oil Spill Liability Trust 
        Fund to carry out the provisions of this chapter 
        related to hazardous liquid and section 12 of the 
        Pipeline Safety Improvement Act of 2002 (49 U.S.C. 
        60101 note; Public Law 107-355)--
                  (A) $22,123,000 for fiscal year 2016, of 
                which $3,000,000 shall be expended for carrying 
                out such section 12 and $8,067,000 shall be 
                expended for making grants;
                  (B) $22,123,000 for fiscal year 2017, of 
                which $3,000,000 shall be expended for carrying 
                out such section 12 and $8,067,000 shall be 
                expended for making grants;
                  (C) $23,000,000 for fiscal year 2018, of 
                which $3,000,000 shall be expended for carrying 
                out such section 12 and $8,067,000 shall be 
                expended for making grants; and
                  (D) $23,000,000 for fiscal year 2019, of 
                which $3,000,000 shall be expended for carrying 
                out such section 12 and $8,067,000 shall be 
                expended for making grants.
  (b) Emergency Response Grants.--
          (1) In general.--The Secretary may establish a 
        program for making grants to State, county, and local 
        governments in high consequence areas, as defined by 
        the Secretary, for emergency response management, 
        training, and technical assistance. To the extent that 
        such grants are used to train emergency responders, 
        such training shall ensure that emergency responders 
        have the ability to protect nearby persons, property, 
        and the environment from the effects of accidents or 
        incidents involving gas or hazardous liquid pipelines, 
        in accordance with existing regulations.
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated $10,000,000 for each of 
        fiscal years 2012 through 2015 to carry out this 
        subsection.
  (c) Crediting Appropriations for Expenditures for Training.--
The Secretary may credit to an appropriation authorized under 
subsection (a) amounts received from sources other than the 
Government for reimbursement for expenses incurred by the 
Secretary in providing training.

           *       *       *       *       *       *       *


Sec. 60130. Pipeline safety information grants to communities

  (a) Grant Authority.--
          (1) In general.--The Secretary of Transportation may 
        make grants for technical assistance to local 
        communities and groups of individuals (not including 
        for-profit entities) relating to the safety of pipeline 
        facilities in local communities, other than facilities 
        regulated under Public Law 93-153 (43 U.S.C. 1651 et 
        seq.). No grants may be awarded under section 60114(g) 
        until the Secretary has established competitive 
        procedures for awarding grants under this section and 
        criteria for selecting grant recipients. The amount of 
        any grant under this section may not exceed $100,000 
        for a single grant recipient. The Secretary shall 
        establish appropriate procedures to ensure the proper 
        use of funds provided under this section.
          (2) Demonstration grants.--At least the first 3 
        grants awarded under this section shall be 
        demonstration grants for the purpose of demonstrating 
        and evaluating the utility of grants under this 
        section. Each such demonstration grant shall not exceed 
        $25,000.
          (3) Dissemination of technical findings.--Each 
        recipient of a grant under this section shall ensure 
        that--
                  (A) the technical findings made possible by 
                the grants are made available to the relevant 
                operators; and
                  (B) open communication between the grant 
                recipients, local operators, local communities, 
                and other interested parties is encouraged.
          (4) Technical assistance defined.--In this 
        subsection, the term ``technical assistance'' means 
        engineering and other scientific analysis of pipeline 
        safety issues, including the promotion of public 
        participation on technical pipeline safety issues in 
        official proceedings conducted under this chapter.
  (b) Prohibited Uses.--Funds provided under this section to 
grant recipients and their contractors may not be used for 
lobbying, for direct advocacy for or against a pipeline 
construction or expansion project, or in direct support of 
litigation.
  (c) Authorization of Appropriations.--[There is authorized to 
be appropriated to the Secretary of Transportation for carrying 
out this section $1,500,000 for each of fiscal years 2012 
through 2015.] Of the amounts made available under section 2(b) 
of the PIPES Act of 2016, the Secretary shall withhold 
$1,500,000 for each of fiscal years 2016 through 2019 to carry 
out this section. Such amounts shall not be derived from user 
fees collected under section 60301.

           *       *       *       *       *       *       *


Sec. 60141. Standards for underground natural gas storage facilities

  (a) Minimum Safety Standards.--Not later than 2 years after 
the date of enactment of the PIPES Act of 2016, the Secretary, 
in consultation with the heads of other relevant Federal 
agencies, shall issue minimum safety standards for underground 
natural gas storage facilities.
  (b) Considerations.--In developing the safety standards 
required under subsection (a), the Secretary shall, to the 
extent practicable--
          (1) consider consensus standards for the operation, 
        environmental protection, and integrity management of 
        underground natural gas storage facilities;
          (2) consider the economic impacts of the regulations 
        on individual gas customers; and
          (3) ensure that the regulations do not have a 
        significant economic impact on end users.
  (c) Rules of Construction.--
          (1) In general.--Nothing in this section may be 
        construed to affect any Federal regulation relating to 
        gas pipeline facilities that is in effect on the day 
        before the date of enactment of the PIPES Act of 2016.
          (2) Limitations.--Nothing in this section may be 
        construed to authorize the Secretary--
                  (A) to prescribe the location of an 
                underground natural gas storage facility; or
                  (B) to require the Secretary's permission to 
                construct a facility referred to in 
                subparagraph (A).
  (d) Preemption.--A State authority may adopt additional or 
more stringent safety standards for intrastate underground 
natural gas storage facilities if such standards are compatible 
with the minimum standards prescribed under this section.

           *       *       *       *       *       *       *


                         CHAPTER 603--USER FEES


Sec.
60301. User fees.
60302. User fees for underground natural gas storage facilities.

           *       *       *       *       *       *       *


Sec. 60302. User fees for underground natural gas storage facilities

  (a) In General.--A fee shall be imposed on an entity 
operating an underground natural gas storage facility pursuant 
to section 60141. Any such fee imposed shall be collected 
before the end of the fiscal year to which it applies.
  (b) Means of Collection.--The Secretary of Transportation 
shall prescribe procedures to collect fees under this section. 
The Secretary may use a department, agency, or instrumentality 
of the United States Government or of a State or local 
government to collect the fee and may reimburse the department, 
agency, or instrumentality a reasonable amount for its 
services.
  (c) Use of Fees.--
          (1) Account.--There is established an Underground 
        Natural Gas Storage Facility Safety Account in the 
        Pipeline Safety Fund established in the Treasury of the 
        United States under section 60301.
          (2) Use of fees.--A fee collected under this 
        section--
                  (A) shall be deposited in the Underground 
                Natural Gas Storage Facility Safety Account; 
                and
                  (B) if the fee is related to an underground 
                natural gas storage facility pursuant to 
                section 60141, the amount of the fee may be 
                used only for an activity related to 
                underground natural gas storage safety.
          (3) Limitation.--Amounts collected under this section 
        shall be made available only to the extent provided in 
        advance in an appropriations Act for an activity 
        related to underground natural gas storage safety.

           *       *       *       *       *       *       *

                              ----------                              


                PIPELINE SAFETY IMPROVEMENT ACT OF 2002




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

  (a) In General.--The heads of the participating agencies 
shall carry out a program of research, development, 
demonstration, and standardization to ensure the integrity of 
pipeline facilities.
  (b) Memorandum of Understanding.--
          (1) In general.--Not later than 120 days after the 
        date of enactment of this Act, the heads of the 
        participating agencies shall enter into a memorandum of 
        understanding detailing their respective 
        responsibilities in the program authorized by 
        subsection (a).
          (2) Areas of expertise.--Under the memorandum of 
        understanding, each of the participating agencies shall 
        have the primary responsibility for ensuring that the 
        elements of the program within its expertise are 
        implemented in accordance with this section. The 
        Department of Transportation's responsibilities shall 
        reflect its lead role in pipeline safety and expertise 
        in pipeline inspection, integrity management, and 
        damage prevention. The Department of Energy's 
        responsibilities shall reflect its expertise in system 
        reliability, low-volume gas leak detection, and 
        surveillance technologies. The National Institute of 
        Standards and Technology's responsibilities shall 
        reflect its expertise in materials research and 
        assisting in the development of consensus technical 
        standards, as that term is used in section 12(d)(4) of 
        Public Law 104-13 (15 U.S.C. 272 note).
  (c) Program Elements.--The program authorized by subsection 
(a) shall include research, development, demonstration, and 
standardization activities related to--
          (1) materials inspection;
          (2) stress and fracture analysis, detection of 
        cracks, abrasion, and other abnormalities inside 
        pipelines that lead to pipeline failure, and 
        development of new equipment or technologies that are 
        inserted into pipelines to detect anomalies;
          (3) internal inspection and leak detection 
        technologies, including detection of leaks at very low 
        volumes;
          (4) methods of analyzing content of pipeline 
        throughput;
          (5) pipeline security, including improving the real-
        time surveillance of pipeline rights-of-way, developing 
        tools for evaluating and enhancing pipeline security 
        and infrastructure, reducing natural, technological, 
        and terrorist threats, and protecting first response 
        units and persons near an incident;
          (6) risk assessment methodology, including 
        vulnerability assessment and reduction of third-party 
        damage;
          (7) communication, control, and information systems 
        surety;
          (8) fire safety of pipelines;
          (9) improved excavation, construction, and repair 
        technologies;
          (10) corrosion detection and improving methods, best 
        practices, and technologies for identifying, detecting, 
        preventing, and managing internal and external 
        corrosion and other safety risks; and
          (11) other appropriate elements.
The results of activities carried out under paragraph (10) 
shall be used by the participating agencies to support 
development and improvement of national consensus standards.
  (d) Program Plan.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of this section, the Secretary of 
        Transportation, in coordination with the Secretary of 
        Energy and the Director of the National Institute of 
        Standards and Technology, shall prepare and transmit to 
        Congress a 5-year program plan to guide activities 
        under this section. Such program plan shall be 
        submitted to the Technical Pipeline Safety Standards 
        Committee and the Technical Hazardous Liquid Pipeline 
        Safety Standards Committee for review, and the report 
        to Congress shall include the comments of the 
        committees. The 5-year program plan shall be based on 
        the memorandum of understanding under subsection (b) 
        and take into account related activities of other 
        Federal agencies.
          (2) Consultation.--In preparing the program plan and 
        selecting and prioritizing appropriate project 
        proposals, the Secretary of Transportation shall 
        consult with or seek the advice of appropriate 
        representatives of the natural gas, crude oil, and 
        petroleum product pipeline industries, utilities, 
        manufacturers, institutions of higher learning, Federal 
        agencies, pipeline research institutions, national 
        laboratories, State pipeline safety officials, labor 
        organizations, environmental organizations, pipeline 
        safety advocates, and professional and technical 
        societies.
          (3) Ongoing pipeline transportation research and 
        development.--
                  (A) In general.--After the initial 5-year 
                program plan has been carried out by the 
                participating agencies, the Secretary of 
                Transportation, in coordination with the 
                Director of the National Institute of Standards 
                and Technology, as appropriate, shall prepare a 
                research and development program plan every 5 
                years thereafter and shall transmit a report to 
                Congress on the status and results-to-date of 
                implementation of the program every 2 years. 
                The biennial report shall include a summary of 
                updated research needs and priorities 
                identified through the consultation 
                requirements of paragraph (2).
                  (B) Consultation.--The Secretary shall comply 
                with the consultation requirements of paragraph 
                (2) when preparing the program plan and in the 
                selection and prioritization of research and 
                development projects.
                  (C) Funding from non-federal sources.--[The 
                Secretary] (i) The Secretary shall ensure at 
                least 30 percent of the costs of [program-wide] 
                technology research and development activities 
                [are] may be carried out using non-Federal 
                sources.
                  (ii) at least 20 percent of the costs of 
                basic research and development with 
                universities may be carried out using non-
                Federal sources; and
                  (iii) up to 100 percent of the costs of 
                research and development for purely 
                governmental purposes may be carried out using 
                Federal funds.
  (e) Reports to Congress.-- Not later than 1 year after the 
date of enactment of this Act, and annually thereafter, the 
heads of the participating agencies shall transmit jointly to 
Congress a report on the status and results to date of the 
implementation of the program plan prepared under subsection 
(d).
  (f) Pipeline Integrity Program.-- Of the amounts available in 
the Oil Spill Liability Trust Fund established by section 9509 
of the Internal Revenue Code of 1986 (26 U.S.C. 9509), 
$3,000,000 shall be transferred to the Secretary of 
Transportation, as provided in appropriation Acts, to carry out 
programs for detection, prevention, and mitigation of oil 
spills for each of the fiscal years [2012 through 2015] 2016 
through 2019.
  (g) Participating Agencies Defined.-- In this section, the 
term ``participating agencies'' means the Department of 
Transportation, the Department of Energy, and the National 
Institute of Standards and Technology.
  (h) Independent Experts.-- Not later than 180 days after the 
date of enactment of the PIPES Act of 2016, the Secretary 
shall--
          (1) implement processes and procedures to ensure that 
        projects listed under subsection (c), to the greatest 
        extent practicable, produce results that are factual 
        and peer-reviewed by independent experts and not with 
        persons or entities that have a financial interest in 
        the pipeline, petroleum, or natural gas industries, or 
        that would be directly impacted by the results of the 
        projects; and
          (2) submit to the Committee on Transportation and 
        Infrastructure and the Committee on Energy and Commerce 
        of the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate a 
        report on the implementation of the processes and 
        procedures required under paragraph (1).
  (i) Conflict of Interest.-- The Secretary shall take all 
practical steps to ensure that each recipient of an agreement 
under this section discloses in writing to the Secretary any 
conflict of interest on a research and development project 
carried out under this section, and includes any such 
disclosure as part of the final deliverable pursuant to such 
agreement. The Secretary may not make an award under this 
section directly to a pipeline owner or operator that is 
regulated by the Pipeline and Hazardous Materials Safety 
Administration or a State-certified regulatory authority.

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