Pipeline Modernization and Consumer Protection Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pipeline Modernization and Consumer 
Protection Act''.

SEC. 2. REPLACEMENT PROGRAMS FOR HIGH-RISK NATURAL GAS PIPELINES.

    (a) Findings.--Congress finds that--
            (1) Federal requirements related to repairing pipeline 
        leaks are limited to ``hazardous'' leaks, which are leaks that 
        represent an existing or probable hazard to persons or property 
        and require immediate repair;
            (2) there are no Federal requirements to address slower or 
        less hazardous leaks, which can allow the leaks to persist 
        unrepaired indefinitely;
            (3) in States without a standard definition and methodology 
        for calculating unaccounted-for gas (the difference between the 
        amount of gas purchased by a utility and the amount used or 
        sold to customers), data inconsistencies may be pervasive and 
        these inconsistencies hinder the ability of regulators to 
        monitor gas system and utility performance;
            (4) the cost of leaked or otherwise unaccounted-for natural 
        gas in the distribution system is typically passed on to 
        ratepayers without limitation as an accepted cost of service, 
        which removes financial incentive for utilities to minimize the 
        leaks;
            (5) methane, the primary constituent of natural gas, is a 
        greenhouse gas at least 20 times more potent than carbon 
        dioxide;
            (6) according to the Pipeline and Hazardous Materials 
        Safety Administration, the United States natural gas 
        distribution system still includes 61,000 miles of bare steel 
        pipe without adequate corrosion protection and 32,000 miles of 
        cast iron pipe, which was installed beginning in the 1830s and 
        can be prone to failure;
            (7) major recent pipeline explosions that led to human 
        fatalities, including those in Austin, Texas, Philadelphia, 
        Pennsylvania, and Allentown, Pennsylvania, have been traced to 
        aging, leaking, and high-risk pipeline infrastructure;
            (8) natural gas distribution utilities may be discouraged 
        from making capital expenditures for the replacement of leaking 
        and failure-prone pipelines because traditional ratemaking 
        structures may not allow for cost recovery on a timely basis; 
        and
            (9) according to the Pipeline and Hazardous Materials 
        Safety Administration, the natural gas pipeline replacement 
        programs established as part of the ratemaking process in 27 
        States and the District of Columbia have played a vital role in 
        enhancing public safety by better ensuring the prompt 
        rehabilitation, repair, or replacement of high-risk natural gas 
        distribution infrastructure.
    (b) Natural Gas Distribution Companies.--
            (1) In general.--Chapter 601 of title 49, United States 
        Code, is amended by inserting after section 60112 the 
        following:
``Sec. 60112A. Replacement programs for high-risk natural gas pipelines
    ``(a) Definition of Gas Pipeline Facility.--In this section, the 
term `gas pipeline facility' includes--
            ``(1) a distribution facility; and
            ``(2) a gas utility.
    ``(b) In General.--Each operator of a gas pipeline facility shall, 
in accordance with an integrity management program required under 
section 60109 of this title, if applicable, accelerate the repair, 
rehabilitation, and replacement of gas piping or equipment that--
            ``(1) is leaking; or
            ``(2) may pose high risks of leaking, or may no longer be 
        fit for service, because of--
                    ``(A) inferior materials;
                    ``(B) poor construction practices;
                    ``(C) lack of maintenance; or
                    ``(D) age.
    ``(c) Policy Options.--
            ``(1) In general.--In complying with subsection (b), each 
        State regulatory authority and each nonregulated gas utility 
        shall consider--
                    ``(A) developing prioritized timelines to repair 
                all leaks based on the severity of the leak, including 
                non-hazardous leaks, or replace identified leaking or 
                high-risk piping or equipment, including leaks 
                identified as part of an integrity management plan 
                developed under section 192.1007 of title 49, Code of 
                Federal Regulations, if applicable;
                    ``(B) adopting a cost-recovery program that 
                includes--
                            ``(i) replacement plans with targets and 
                        benchmarks for leaking or high-risk 
                        infrastructure replacement;
                            ``(ii) consideration of the economic, 
                        safety, and environmental benefits of reduced 
                        gas leakage, including consideration of reduced 
                        operation and maintenance costs and reduced 
                        costs attributable to lost or unaccounted-for 
                        natural gas; and
                            ``(iii) reporting on the reductions in lost 
                        or unaccounted-for gas as a result of pipeline 
                        replacements;
                    ``(C) adopting a standard definition and 
                methodology for calculating and reporting unaccounted-
                for gas to improve data quality;
                    ``(D) adopting limits on cost recovery for lost and 
                unaccounted-for gas; and
                    ``(E) requiring use of best available technology to 
                detect gas leaks.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 601 of title 49, United States Code, is 
        amended by inserting after the item relating to section 60112 
        the following:

``60112A. Replacement programs for high-risk natural gas pipelines.''.
    (c) Non-Binding Guidelines for Identifying and Classifying High-
Risk Pipeline Infrastructure.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator of the Pipeline and 
        Hazardous Materials Safety Administration shall, after 
        consultation with State regulatory authorities, the Secretary 
        of Energy, the Administrator of the Environmental Protection 
        Agency, the Federal Energy Regulatory Commission, and other 
        appropriate Federal agencies, and after notice and opportunity 
        for comment, issue non-binding guidelines identifying best 
        practices under section 60112A of title 49, United States Code 
        (as added by subsection (b)).
            (2) Preserving the integrity of actions already taken by 
        state regulatory authorities.--In formulating guidelines under 
        paragraph (1), the Administrator of the Pipeline and Hazardous 
        Materials Safety Administration shall, to the extent 
        practicable, preserve the integrity of, and be guided by, 
        actions already taken by State regulatory authorities to ensure 
        proper identification, classification, and timely repair of 
        high-risk pipeline infrastructure and leaks, including actions 
        taken after consideration of the standard under section 
        303(b)(6) of the Public Utility Regulatory Policies Act of 1978 
        (15 U.S.C. 3203(b)(6)).
            (3) Revision of guidelines.--Not less frequently than once 
        every 7 years, the Administrator of the Pipeline and Hazardous 
        Materials Safety Administration shall review and, as 
        appropriate, revise the guidelines issued under paragraph (1) 
        to reflect changes in the composition and safety performance of 
        the pipeline infrastructure in the United States.

SEC. 3. DATA STANDARDIZATION.

    (a) In General.--Notwithstanding any other provision of law, not 
later than 1 year after the date of enactment of this Act, the 
Administrator of the Pipeline and Hazardous Materials Safety 
Administration and the heads of other applicable Federal agencies 
shall, in consultation with State and local agencies under subsection 
(c), work jointly to establish and publish forms that adopt a standard 
definition and methodology for calculating and reporting unaccounted-
for gas, including, when possible, information on the causes of 
unaccounted-for gas and the quantities associated with each cause, for 
use by applicable Federal agencies to standardize the data collected on 
unaccounted-for gas.
    (b) Administration.--In carrying out this section, the 
Administrator of the Pipeline and Hazardous Materials Safety 
Administration and the heads of other applicable Federal agencies may--
            (1) establish an interagency working group; and
            (2) enter into a memorandum of understanding.
    (c) Consultation With State and Local Agencies.--The Administrator 
of the Pipeline and Hazardous Materials Safety Administration and the 
heads of other applicable Federal agencies shall offer to work with 
State and local regulatory authorities to adopt a standard definition 
and methodology for calculating and reporting unaccounted-for gas to 
standardize the data collected by Federal, State, and local 
governments.

Summary: Pipeline Modernization and Consumer Protection Act Requires each operator of a gas pipeline facility, in accordance with an integrity management program, if applicable, to accelerate the repair, rehabilitation, and replacement of gas piping or equipment that is leaking or may pose high risk of leaking. Requires each state regulatory authority and each nonregulated gas utility, in complying with such requirements, to: develop prioritized timelines to repair or replace all leaking or high-risk piping or equipment, and require use of best available technology to detect gas leaks. Directs the Administrator of the Pipeline and Hazardous Materials Safety Administration to issue non-binding best practices guidelines for identifying and classifying high-risk pipeline infrastructure and leaks for repair or replacement. Directs the Administrator and the heads of other applicable federal agencies to work jointly to establish and publish forms that adopt a standard definition and methodology for calculating and reporting information on the causes of unaccounted-for gas.