PUBLIC LAW 109–468—DEC. 29, 2006

PIPELINE INSPECTION, PROTECTION,

ENFORCEMENT, AND SAFETY ACT OF 2006

120 STAT. 3486 PUBLIC LAW 109–468—DEC. 29, 2006

Public Law 109–468

109th Congress

An Act

To amend title 49, United States Code, to provide for enhanced safety and environmental protection in pipeline transportation, to provide for enhanced reliability

in the transportation of the Nation’s energy products by pipeline, and for other

purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

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

CODE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Pipeline

Inspection, Protection, Enforcement, and Safety Act of 2006’’.

(b) AMENDMENT OF TITLE 49, UNITED STATES CODE.—Except

as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or

a repeal of, a section or other provision, the reference shall be

considered to be made to a section or other provision of title 49,

United States Code.

(c) TABLE OF CONTENTS.—

Sec. 1. Short title; amendment of title 49, United States Code; table of contents.

Sec. 2. Pipeline safety and damage prevention.

Sec. 3. Public education and awareness.

Sec. 4. Low-stress pipelines.

Sec. 5. Technical assistance grants.

Sec. 6. Enforcement transparency.

Sec. 7. Direct line sales.

Sec. 8. Petroleum transportation capacity and regulatory adequacy study.

Sec. 9. Distribution integrity management program rulemaking deadline.

Sec. 10. Emergency waivers.

Sec. 11. Restoration of operations.

Sec. 12. Pipeline control room management.

Sec. 13. Safety orders.

Sec. 14. Integrity program enforcement.

Sec. 15. Incident reporting.

Sec. 16. Senior executive signature of integrity management program performance

reports.

Sec. 17. Cost recovery for design reviews.

Sec. 18. Authorization of appropriations.

Sec. 19. Standards to implement NTSB recommendations.

Sec. 20. Accident reporting form.

Sec. 21. Leak detection technology study.

Sec. 22. Corrosion control regulations.

Sec. 23. Inspector General report.

Sec. 24. Technical assistance program.

Sec. 25. Natural gas pipelines.

Sec. 26. Corrosion technology.

SEC. 2. PIPELINE SAFETY AND DAMAGE PREVENTION.

(a) ONE CALL CIVIL ENFORCEMENT.—

(1) PROHIBITIONS.—Section 60114 is amended by adding

at the end the following:

Pipeline

Inspection,

Protection,

Enforcement,

and Safety Act

of 2006.

49 USC 60101

note.

Dec. 29, 2006

[H.R. 5782]

PUBLIC LAW 109–468—DEC. 29, 2006 120 STAT. 3487

‘‘(d) PROHIBITION APPLICABLE TO EXCAVATORS.—A person who

engages in demolition, excavation, tunneling, or construction—

‘‘(1) may not engage in a demolition, excavation, tunneling,

or construction activity in a State that has adopted a onecall notification system without first using that system to establish the location of underground facilities in the demolition,

excavation, tunneling, or construction area;

‘‘(2) may not engage in such demolition, excavation, tunneling, or construction activity in disregard of location information or markings established by a pipeline facility operator

pursuant to subsection (b); and

‘‘(3) and who causes damage to a pipeline facility that

may endanger life or cause serious bodily harm or damage

to property—

‘‘(A) may not fail to promptly report the damage to

the owner or operator of the facility; and

‘‘(B) if the damage results in the escape of any flammable, toxic, or corrosive gas or liquid, may not fail to

promptly report to other appropriate authorities by calling

the 911 emergency telephone number.

‘‘(e) PROHIBITION APPLICABLE TO UNDERGROUND PIPELINE

FACILITY OWNERS AND OPERATORS.—Any owner or operator of a

pipeline facility who fails to respond to a location request in order

to prevent damage to the pipeline facility or who fails to take

reasonable steps, in response to such a request, to ensure accurate

marking of the location of the pipeline facility in order to prevent

damage to the pipeline facility shall be subject to a civil action

under section 60120 or assessment of a civil penalty under section

60122.

‘‘(f) LIMITATION.—The Secretary may not conduct an enforcement proceeding under subsection (d) for a violation within the

boundaries of a State that has the authority to impose penalties

described in section 60134(b)(7) against persons who violate that

State’s damage prevention laws, unless the Secretary has determined that the State’s enforcement is inadequate to protect safety,

consistent with this chapter, and until the Secretary issues, through

a rulemaking proceeding, the procedures for determining inadequate State enforcement of penalties.’’.

(2) CIVIL PENALTY.—Section 60122(a)(1) is amended by

striking ‘‘60114(b)’’ and inserting ‘‘60114(b), 60114(d),’’.

(b) STATE DAMAGE PREVENTION PROGRAMS.—

(1) CONTENTS OF CERTIFICATIONS.—Section 60105(b)(4) is

amended to read as follows:

‘‘(4) is encouraging and promoting the establishment of

a program designed to prevent damage by demolition, excavation, tunneling, or construction activity to the pipeline facilities to which the certification applies that subjects persons

who violate the applicable requirements of that program to

civil penalties and other enforcement actions that are substantially the same as are provided under this chapter, and

addresses the elements in section 60134(b);’’.

(2) IN GENERAL.—Chapter 601 is amended by adding at

the end the following:

‘‘§ 60134. State damage prevention programs

‘‘(a) IN GENERAL.—The Secretary may make a grant to a State

authority (including a municipality with respect to intrastate gas

120 STAT. 3488 PUBLIC LAW 109–468—DEC. 29, 2006

pipeline transportation) to assist in improving the overall quality

and effectiveness of a damage prevention program of the State

authority under subsection (e) if the State authority—

‘‘(1) has in effect an annual certification under section

60105 or an agreement under section 60106; and

‘‘(2)(A) has in effect an effective damage prevention program that meets the requirements of subsection (b); or

‘‘(B) demonstrates that it has made substantial progress

toward establishing such a program, and that such program

will meet the requirements of subsection (b).

‘‘(b) DAMAGE PREVENTION PROGRAM ELEMENTS.—An effective

damage prevention program includes the following elements:

‘‘(1) Participation by operators, excavators, and other stakeholders in the development and implementation of methods

for establishing and maintaining effective communications

between stakeholders from receipt of an excavation notification

until successful completion of the excavation, as appropriate.

‘‘(2) A process for fostering and ensuring the support and

partnership of stakeholders, including excavators, operators,

locators, designers, and local government in all phases of the

program.

‘‘(3) A process for reviewing the adequacy of a pipeline

operator’s internal performance measures regarding persons

performing locating services and quality assurance programs.

‘‘(4) Participation by operators, excavators, and other stakeholders in the development and implementation of effective

employee training programs to ensure that operators, the onecall center, the enforcing agency, and the excavators have

partnered to design and implement training for the employees

of operators, excavators, and locators.

‘‘(5) A process for fostering and ensuring active participation by all stakeholders in public education for damage prevention activities.

‘‘(6) A process for resolving disputes that defines the State

authority’s role as a partner and facilitator to resolve issues.

‘‘(7) Enforcement of State damage prevention laws and

regulations for all aspects of the damage prevention process,

including public education, and the use of civil penalties for

violations assessable by the appropriate State authority.

‘‘(8) A process for fostering and promoting the use, by

all appropriate stakeholders, of improving technologies that

may enhance communications, underground pipeline locating

capability, and gathering and analyzing information about the

accuracy and effectiveness of locating programs.

‘‘(9) A process for review and analysis of the effectiveness

of each program element, including a means for implementing

improvements identified by such program reviews.

‘‘(c) FACTORS TO CONSIDER.—In making grants under this section, the Secretary shall take into consideration the commitment

of each State to ensuring the effectiveness of its damage prevention

program, including legislative and regulatory actions taken by the

State.

‘‘(d) APPLICATION.—If a State authority files an application

for a grant under this section not later than September 30 of

a calendar year and demonstrates that the Governor (or chief executive) of the State has designated it as the appropriate State

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PUBLIC LAW 109–468—DEC. 29, 2006 120 STAT. 3489

authority to receive the grant, the Secretary shall review the State’s

damage prevention program to determine its effectiveness.

‘‘(e) USE OF FUNDS.—A grant under this section to a State

authority may only be used to pay the cost of the personnel, equipment, and activities that the State authority reasonably requires

for the calendar year covered by the grant to develop or carry

out its damage prevention program in accordance with subsection

(b).

‘‘(f) NONAPPLICABILITY OF LIMITATION.—A grant made under

this section is not subject to the section 60107(a) limitation on

the maximum percentage of funds to be paid by the Secretary.

‘‘(g) LIMITATION ON USE OF FUNDS.—Funds provided to carry

out this section may not be used for lobbying or in direct support

of litigation.

‘‘(h) DAMAGE PREVENTION PROCESS DEFINED.—In this section,

the term ‘damage prevention process’ means a process that incorporates the principles described in sections 60114(b), 60114(d), and

60114(e).’’.

(3) CLERICAL AMENDMENT.—The analysis for chapter 601

is amended by adding at the end the following:

‘‘60134. State damage prevention programs.’’.

(c) STATE PIPELINE SAFETY GRANTS.—Section 60107(a) is

amended by striking ‘‘not more than 50 percent’’ and inserting

‘‘not more than 80 percent’’.

(d) MAINTENANCE OF EFFORT.—Section 60107(b) is amended

by striking ‘‘spent—’’ and all that follows and inserting ‘‘spent

for gas and hazardous liquid safety programs for the 3 fiscal years

prior to the fiscal year in which the Secretary makes the payment,

except when the Secretary waives this requirement.’’.

(e) DAMAGE PREVENTION TECHNOLOGY DEVELOPMENT.—Section

60114 (as amended by subsection (a)(1) of this section) is further

amended by adding at the end the following:

‘‘(g) TECHNOLOGY DEVELOPMENT GRANTS.—The Secretary may

make grants to any organization or entity (not including for-profit

entities) for the development of technologies that will facilitate

the prevention of pipeline damage caused by demolition, excavation,

tunneling, or construction activities, with emphasis on wireless

and global positioning technologies having potential for use in

connection with notification systems and underground facility

locating and marking services. Funds provided under this subsection

may not be used for lobbying or in direct support of litigation.

The Secretary may also support such technology development

through cooperative agreements with trade associations, academic

institutions, and other organizations.’’.

SEC. 3. PUBLIC EDUCATION AND AWARENESS.

(a) IN GENERAL.—Chapter 61 is amended by adding at the

end the following:

‘‘§ 6109. Public education and awareness

‘‘(a) GRANT AUTHORITY.—The Secretary shall make a grant

to an appropriate entity for promoting public education and awareness with respect to the 811 national excavation damage prevention

phone number.

120 STAT. 3490 PUBLIC LAW 109–468—DEC. 29, 2006

‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to the Secretary $1,000,000 for the period beginning October 1, 2006, and ending September 30, 2008, to carry

out this section.’’.

(b) CLERICAL AMENDMENT.—The analysis for chapter 61 is

amended by adding at the end the following:

‘‘6109. Public education and awareness.’’.

SEC. 4. LOW-STRESS PIPELINES.

Section 60102(k) is amended to read as follows:

‘‘(k) LOW-STRESS HAZARDOUS LIQUID PIPELINES.—

‘‘(1) MINIMUM STANDARDS.—Not later than December 31,

2007, the Secretary shall issue regulations subjecting low-stress

hazardous liquid pipelines to the same standards and regulations as other hazardous liquid pipelines, except as provided

in paragraph (3). The implementation of the applicable standards and regulatory requirements may be phased in. The regulations issued under this paragraph shall not apply to gathering

lines.

‘‘(2) GENERAL PROHIBITION AGAINST LOW INTERNAL STRESS

EXCEPTION.—Except as provided in paragraph (3), the Secretary

may not provide an exception to the requirements of this

chapter for a hazardous liquid pipeline because the pipeline

operates at low internal stress.

‘‘(3) LIMITED EXCEPTIONS.—The Secretary shall provide or

continue in force exceptions to this subsection for low-stress

hazardous liquid pipelines that—

‘‘(A) are subject to safety regulations of the United

States Coast Guard; or

‘‘(B) serve refining, manufacturing, or truck, rail, or

vessel terminal facilities if the pipeline is less than 1 mile

long (measured outside the facility grounds) and does not

cross an offshore area or a waterway currently used for

commercial navigation,

until regulations issued under paragraph (1) become effective.

After such regulations become effective, the Secretary may

retain or remove those exceptions as appropriate.

‘‘(4) RELATIONSHIP TO OTHER LAWS.—Nothing in this subsection shall be construed to prohibit or otherwise affect the

applicability of any other statutory or regulatory exemption

to any hazardous liquid pipeline.

‘‘(5) DEFINITION.—For purposes of this subsection, the term

‘low-stress hazardous liquid pipeline’ means a hazardous liquid

pipeline that is operated in its entirety at a stress level of

20 percent or less of the specified minimum yield strength

of the line pipe.

‘‘(6) EFFECTIVE DATE.—The requirements of this subsection

shall not take effect as to low-stress hazardous liquid pipeline

operators before the effective date of the rules promulgated

by the Secretary under this subsection.’’.

SEC. 5. TECHNICAL ASSISTANCE GRANTS.

Section 60130 is amended—

(1) in subsection (a)(1) by striking ‘‘The Secretary shall

establish competitive’’ and inserting ‘‘No grants may be awarded

under section 60114(g) until the Secretary has established

competitive’’;

Deadline.

Regulations.

PUBLIC LAW 109–468—DEC. 29, 2006 120 STAT. 3491

(2) in subsection (a) by redesignating paragraph (2) as

paragraph (4);

(3) in subsection (a) by inserting after paragraph (1) the

following:

‘‘(2) DEMONSTRATION GRANTS.—At least the first 3 grants

awarded under this section shall be demonstration grants for

the purpose of demonstrating and evaluating the utility of

grants under this section. Each such demonstration grant shall

not exceed $25,000.

‘‘(3) DISSEMINATION OF TECHNICAL FINDINGS.—Each

recipient of a grant under this section shall ensure that—

‘‘(A) the technical findings made possible by the grants

are made available to the relevant operators; and

‘‘(B) open communication between the grant recipients,

local operators, local communities, and other interested

parties is encouraged.’’; and

(4) in subsection (d) by striking ‘‘2006’’ and inserting ‘‘2010’’.

SEC. 6. ENFORCEMENT TRANSPARENCY.

(a) IN GENERAL.—Chapter 601 (as amended by section 2(b)

of this Act) is further amended by adding at the end the following:

‘‘§ 60135. Enforcement transparency

‘‘(a) IN GENERAL.—Not later than December 31, 2007, the Secretary shall—

‘‘(1) provide a monthly updated summary to the public

of all gas and hazardous liquid pipeline enforcement actions

taken by the Secretary or the Pipeline and Hazardous Materials

Safety Administration, from the time a notice commencing an

enforcement action is issued until the enforcement action is

final;

‘‘(2) include in each such summary identification of the

operator involved in the enforcement activity, the type of alleged

violation, the penalty or penalties proposed, any changes in

case status since the previous summary, the final assessment

amount of each penalty, and the reasons for a reduction in

the proposed penalty, if appropriate; and

‘‘(3) provide a mechanism by which a pipeline operator

named in an enforcement action may make information, explanations, or documents it believes are responsive to the enforcement action available to the public.

‘‘(b) ELECTRONIC AVAILABILITY.—Each summary under this section shall be made available to the public by electronic means.

‘‘(c) RELATIONSHIP TO FOIA.—Nothing in this section shall be

construed to require disclosure of information or records that are

exempt from disclosure under section 552 of title 5.’’.

(b) CLERICAL AMENDMENT.—The analysis for chapter 601 (as

amended by section 2(b) of this Act) is further amended by adding

at the end:

‘‘60135. Enforcement transparency.’’.

SEC. 7. DIRECT LINE SALES.

Section 60101(a) is amended—

(1) by striking paragraph (6) and inserting the following:

‘‘(6) ‘interstate gas pipeline facility’ means a gas pipeline

facility—

‘‘(A) used to transport gas; and

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Public

information.

120 STAT. 3492 PUBLIC LAW 109–468—DEC. 29, 2006

‘‘(B) subject to the jurisdiction of the Commission under

the Natural Gas Act (15 U.S.C. 717 et seq.);’’; and

(2) by striking paragraph (9) and inserting the following:

‘‘(9) ‘intrastate gas pipeline facility’ means a gas pipeline

facility and transportation of gas within a State not subject

to the jurisdiction of the Commission under the Natural Gas

Act (15 U.S.C. 717 et seq.);’’.

SEC. 8. PETROLEUM TRANSPORTATION CAPACITY AND REGULATORY

ADEQUACY STUDY.

(a) IN GENERAL.—Chapter 601 (as amended by sections 2(b)

and 6 of this Act) is further amended by adding at the end the

following:

‘‘§ 60136. Petroleum product transportation capacity study

‘‘(a) IN GENERAL.—The Secretaries of Transportation and

Energy shall conduct periodic analyses of the domestic transport

of petroleum products by pipeline. Such analyses should identify

areas of the United States where unplanned loss of individual

pipeline facilities may cause shortages of petroleum products or

price disruptions and where shortages of pipeline capacity and

reliability concerns may have or are anticipated to contribute to

shortages of petroleum products or price disruptions. Upon identifying such areas, the Secretaries may determine if the current

level of regulation is sufficient to minimize the potential for

unplanned losses of pipeline capacity.

‘‘(b) CONSULTATION.—In preparing any analysis under this section, the Secretaries may consult with the heads of other government agencies and public- and private-sector experts in pipeline

and other forms of petroleum product transportation, energy

consumption, pipeline capacity, population, and economic development.

‘‘(c) REPORT TO CONGRESS.—Not later than June 1, 2008, the

Secretaries shall submit to the Committee on Energy and Commerce

and the Committee on Transportation and Infrastructure of the

House of Representatives and the Committee on Commerce, Science,

and Transportation and the Committee on Energy and Natural

Resources of the Senate a report setting forth their recommendations to reduce the likelihood of the shortages and price disruptions

referred to in subsection (a).

‘‘(d) ADDITIONAL REPORTS.—The Secretaries shall submit additional reports to the congressional committees referred to in subsection (c) containing the results of any subsequent analyses performed under subsection (a) and any additional recommendations,

as appropriate.

‘‘(e) PETROLEUM PRODUCT DEFINED.—In this section, the term

‘petroleum product’ means oil of any kind or in any form, gasoline,

diesel fuel, aviation fuel, fuel oil, kerosene, any product obtained

from refining or processing of crude oil, liquefied petroleum gases,

natural gas liquids, petrochemical feedstocks, condensate, waste

or refuse mixtures containing any of such oil products, and any

other liquid hydrocarbon compounds.’’.

(b) CLERICAL AMENDMENT.—The analysis for chapter 601 (as

amended by sections 2(b) and 6 of this Act) is further amended

by adding at the end the following:

‘‘60136. Petroleum product transportation capacity study.’’.

PUBLIC LAW 109–468—DEC. 29, 2006 120 STAT. 3493

SEC. 9. DISTRIBUTION INTEGRITY MANAGEMENT PROGRAM RULEMAKING DEADLINE.

Section 60109 is amended by adding at the end the following:

‘‘(e) DISTRIBUTION INTEGRITY MANAGEMENT PROGRAMS.—

‘‘(1) MINIMUM STANDARDS.—Not later than December 31,

2007, the Secretary shall prescribe minimum standards for

integrity management programs for distribution pipelines.

‘‘(2) ADDITIONAL AUTHORITY OF SECRETARY.—In carrying

out this subsection, the Secretary may require operators of

distribution pipelines to continually identify and assess risks

on their distribution lines, to remediate conditions that present

a potential threat to line integrity, and to monitor program

effectiveness.

‘‘(3) EXCESS FLOW VALVES.—

‘‘(A) IN GENERAL.—The minimum standards shall

include a requirement for an operator of a natural gas

distribution system to install an excess flow valve on each

single family residence service line connected to such

system if—

‘‘(i) the service line is installed or entirely replaced

after June 1, 2008;

‘‘(ii) the service line operates continuously throughout the year at a pressure not less than 10 pounds

per square inch gauge;

‘‘(iii) the service line is not connected to a gas

stream with respect to which the operator has had

prior experience with contaminants the presence of

which could interfere with the operation of an excess

flow valve;

‘‘(iv) the installation of an excess flow valve on

the service line is not likely to cause loss of service

to the residence or interfere with necessary operation

or maintenance activities, such as purging liquids from

the service line; and

‘‘(v) an excess flow valve meeting performance

standards developed under section 60110(e) of title

49, United States Code, is commercially available to

the operator, as determined by the Secretary.

‘‘(B) REPORTS.—Operators of natural gas distribution

systems shall report annually to the Secretary on the

number of excess flow valves installed on their systems

under subparagraph (A).

‘‘(4) APPLICABILITY.—The Secretary shall determine which

distribution pipelines will be subject to the minimum standards.

‘‘(5) DEVELOPMENT AND IMPLEMENTATION.—Each operator

of a distribution pipeline that the Secretary determines is subject to the minimum standards prescribed by the Secretary

under this subsection shall develop and implement an integrity

management program in accordance with those standards.

‘‘(6) SAVINGS CLAUSE.—Subject to section 60104(c), a State

authority having a current certification under section 60105

may adopt or continue in force additional integrity management

requirements, including additional requirements for installation

of excess flow valves, for gas distribution pipelines within the

boundaries of that State.’’.

120 STAT. 3494 PUBLIC LAW 109–468—DEC. 29, 2006

SEC. 10. EMERGENCY WAIVERS.

Section 60118(c) is amended to read as follows:

‘‘(c) WAIVERS BY SECRETARY.—

‘‘(1) NONEMERGENCY WAIVERS.—

‘‘(A) IN GENERAL.—On application of an owner or operator of a pipeline facility, the Secretary by order may

waive compliance with any part of an applicable standard

prescribed under this chapter with respect to such facility

on terms the Secretary considers appropriate if the Secretary determines that the waiver is not inconsistent with

pipeline safety.

‘‘(B) HEARING.—The Secretary may act on a waiver

under this paragraph only after notice and an opportunity

for a hearing.

‘‘(2) EMERGENCY WAIVERS.—

‘‘(A) IN GENERAL.—The Secretary by order may waive

compliance with any part of an applicable standard prescribed under this chapter on terms the Secretary considers

appropriate without prior notice and comment if the Secretary determines that—

‘‘(i) it is in the public interest to grant the waiver;

‘‘(ii) the waiver is not inconsistent with pipeline

safety; and

‘‘(iii) the waiver is necessary to address an actual

or impending emergency involving pipeline transportation, including an emergency caused by a natural

or manmade disaster.

‘‘(B) PERIOD OF WAIVER.—A waiver under this paragraph may be issued for a period of not more than 60

days and may be renewed upon application to the Secretary

only after notice and an opportunity for a hearing on the

waiver. The Secretary shall immediately revoke the waiver

if continuation of the waiver would not be consistent with

the goals and objectives of this chapter.

‘‘(3) STATEMENT OF REASONS.—The Secretary shall state

in an order issued under this subsection the reasons for

granting the waiver.’’.

SEC. 11. RESTORATION OF OPERATIONS.

Section 60117 is amended by adding at the end the following:

‘‘(m) RESTORATION OF OPERATIONS.—

‘‘(1) IN GENERAL.—The Secretary may advise, assist, and

cooperate with the heads of other departments, agencies, and

instrumentalities of the United States Government, the States,

and public and private agencies and persons to facilitate the

restoration of pipeline operations that have been or are anticipated to become disrupted by manmade or natural disasters.

‘‘(2) SAVINGS CLAUSE.—Nothing in this section alters or

amends the authorities and responsibilities of any department,

agency, or instrumentality of the United States Government,

other than the Department of Transportation.’’.

SEC. 12. PIPELINE CONTROL ROOM MANAGEMENT.

(a) IN GENERAL.—Chapter 601 (as amended by sections 2(b),

6, and 8 of this Act) is further amended by adding at the end

the following:

PUBLIC LAW 109–468—DEC. 29, 2006 120 STAT. 3495

‘‘§ 60137. Pipeline control room management

‘‘(a) IN GENERAL.—Not later than June 1, 2008, the Secretary

shall issue regulations requiring each operator of a gas or hazardous

liquid pipeline to develop, implement, and submit to the Secretary

or, in the case of an operator of an intrastate pipeline located

within the boundaries of a State that has in effect an annual

certification under section 60105, to the head of the appropriate

State authority, a human factors management plan designed to

reduce risks associated with human factors, including fatigue, in

each control center for the pipeline. Each plan must include, among

the measures to reduce such risks, a maximum limit on the hours

of service established by the operator for individuals employed

as controllers in a control center for the pipeline.

‘‘(b) REVIEW AND APPROVAL OF THE PLAN.—The Secretary or,

in the case of an operator of an intrastate pipeline located within

the boundaries of a State that has in effect an annual certification

under section 60105, the head of the appropriate State authority,

shall review and approve each plan submitted to the Secretary

or the head of such authority under subsection (a). The Secretary

and the head of such authority may not approve a plan that does

not include a maximum limit on the hours of service established

by the operator of the pipeline for individuals employed as controllers in a control center for the pipeline.

‘‘(c) ENFORCEMENT OF THE PLAN.—If the Secretary or the head

of the appropriate State authority determines that an operator’s

plan submitted to the Secretary or the head of such authority

under subsection (a), or implementation of such a plan, does not

comply with the regulations issued under this section or is inadequate for the safe operation of a pipeline, the Secretary or the

head of such authority may take action consistent with this chapter

and enforce the requirements of such regulations.

‘‘(d) COMPLIANCE WITH THE PLAN.—Each operator of a gas

or hazardous liquid pipeline shall document compliance with the

plan submitted by the operator under subsection (a) and the reasons

for any deviation from compliance with such plan. The Secretary

or the head of the appropriate State authority, as the case may

be, shall review the reasonableness of any such deviation in considering whether to take enforcement action or discontinue approval

of the operator’s plan under subsection (b).

‘‘(e) DEVIATION REPORTING REQUIREMENTS.—In issuing regulations under subsection (a), the Secretary shall develop and include

in such regulations requirements for an operator of a gas or hazardous liquid pipeline to report deviations from compliance with

the plan submitted by the operator under subsection (a).’’.

(b) CLERICAL AMENDMENT.—The analysis for chapter 601 (as

amended by sections 2(b), 6, and 8 of this Act) is further amended

by adding at the end the following:

‘‘60137. Pipeline control room management.’’.

SEC. 13. SAFETY ORDERS.

Section 60117(l) is amended to read as follows:

‘‘(l) SAFETY ORDERS.—

‘‘(1) 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

Deadline.

Regulations.

Deadline.

Regulations.

120 STAT. 3496 PUBLIC LAW 109–468—DEC. 29, 2006

integrity risk to public safety, property, or the environment,

the Secretary may order the operator of the facility to take

necessary corrective action, including physical inspection,

testing, repair, or other appropriate action, to remedy that

condition.

‘‘(2) CONSIDERATIONS.—In making a determination under

paragraph (1), the Secretary, if relevant and pursuant to the

regulations issued under paragraph (1), shall consider—

‘‘(A) the considerations specified in paragraphs (1)

through (6) of section 60112(b);

‘‘(B) the likelihood that the condition will impair the

serviceability of a pipeline;

‘‘(C) the likelihood that the condition will worsen over

time; and

‘‘(D) the likelihood that the condition is present or

could develop on other areas of the pipeline.’’.

SEC. 14. INTEGRITY PROGRAM ENFORCEMENT.

Section 60109(c)(9)(A)(iii) is amended to read as follows:

‘‘(iii) INADEQUATE PROGRAMS.—If the Secretary

determines that a risk analysis or integrity management program does not comply with the requirements

of this subsection or regulations issued as described

in paragraph (2), has not been adequately implemented, or is inadequate for the safe operation of a

pipeline facility, the Secretary may conduct proceedings

under this chapter.’’.

SEC. 15. INCIDENT REPORTING.

Not later than December 31, 2007, the Secretary of Transportation shall review the incident reporting requirements for operators

of natural gas pipelines and modify the reporting criteria as appropriate to ensure that the incident data gathered accurately reflects

incident trends over time, taking into consideration the recommendations from the Comptroller General in GAO report 06–

946.

SEC. 16. SENIOR EXECUTIVE SIGNATURE OF INTEGRITY MANAGEMENT

PROGRAM PERFORMANCE REPORTS.

Section 60109 (as amended by section 9 of this Act) is further

amended by adding at the end the following:

‘‘(f) CERTIFICATION OF PIPELINE INTEGRITY MANAGEMENT PROGRAM PERFORMANCE.—The Secretary shall establish procedures

requiring certification of annual and semiannual pipeline integrity

management program performance reports by a senior executive

officer of the company operating a pipeline subject to this chapter.

The procedures shall require a signed statement, which may be

effected electronically in accordance with the provisions of the Electronic Signatures in Global and National Commerce Act (15 U.S.C.

7001 et seq.), certifying that—

‘‘(1) the signing officer has reviewed the report; and

‘‘(2) to the best of such officer’s knowledge and belief,

the report is true and complete.’’.

SEC. 17. COST RECOVERY FOR DESIGN REVIEWS.

Section 60117 (as amended by section 11 of this Act) is amended

by adding at the end the following:

‘‘(n) COST RECOVERY FOR DESIGN REVIEWS.—

Procedures.

49 USC 60117

note.

PUBLIC LAW 109–468—DEC. 29, 2006 120 STAT. 3497

‘‘(1) IN GENERAL.—If the Secretary conducts facility design

safety reviews in connection with a proposal to construct,

expand, or operate a liquefied natural gas pipeline facility,

the Secretary may require the person requesting such reviews

to pay the associated staff costs relating to such reviews

incurred by the Secretary in section 60301(d). The Secretary

may assess such costs in any reasonable manner.

‘‘(2) DEPOSIT.—The Secretary shall deposit all funds paid

to the Secretary under this subsection into the Department

of Treasury account 69–5172–0–2–407 or its successor account.

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—Funds deposited

pursuant to this subsection are authorized to be appropriated

for the purposes set forth in section 60301(d).’’.

SEC. 18. AUTHORIZATION OF APPROPRIATIONS.

(a) GAS AND HAZARDOUS LIQUID.—Section 60125(a) is amended

to read as follows:

‘‘(a) GAS AND HAZARDOUS LIQUID.—

‘‘(1) IN GENERAL.—To carry out the provisions of this

chapter related to gas and hazardous liquid and section 12

of the Pipeline Safety Improvement Act of 2002 (49 U.S.C.

60101 note; Public Law 107–355), the following amounts are

authorized to be appropriated to the Department of Transportation from fees collected under section 60301 in each respective

year:

‘‘(A) For fiscal year 2007, $60,175,000 of which

$7,386,000 is for carrying out such section 12 and

$17,556,000 is for making grants.

‘‘(B) For fiscal year 2008, $67,118,000 of which

$7,586,000 is for carrying out such section 12 and

$20,614,000 is for making grants.

‘‘(C) For fiscal year 2009, $72,045,000 of which

$7,586,000 is for carrying out such section 12 and

$21,513,000 is for making grants.

‘‘(D) For fiscal year 2010, $76,580,000 of which $7,586,000 is for carrying out subsection 12 and

$22,252,000 is for making grants.

‘‘(2) TRUST FUND AMOUNTS.—In addition to the amounts

authorized to be appropriated by paragraph (1) the following

amounts are authorized from the Oil Spill Liability Trust Fund

to carry out the provisions of this chapter related to hazardous

liquid and section 12 of the Pipeline Safety Improvement Act

of 2002 (49 U.S.C. 60101 note; Public Law 107–355):

‘‘(A) For fiscal year 2007, $18,810,000 of which

$4,207,000 is for carrying out such section 12 and

$2,682,000 is for making grants.

‘‘(B) For fiscal year 2008, $19,000,000 of which

$4,207,000 is for carrying out such section 12 and

$2,682,000 is for making grants.

‘‘(C) For fiscal year 2009, $19,500,000 of which

$4,207,000 is for carrying out such section 12 and

$3,103,000 is for making grants.

‘‘(D) For fiscal year 2010, $20,000,000 of which

$4,207,000 is for carrying out such section 12 $3,603,000

is for making grants.’’.

(b) CONFORMING AMENDMENTS.—Section 60125 is amended—

(1) by striking subsections (b) and (c); and

120 STAT. 3498 PUBLIC LAW 109–468—DEC. 29, 2006

(2) by redesignating subsections (d) and (e) as subsections

(b) and (c), respectively.

(c) EMERGENCY RESPONSE GRANTS.—Section 60125(b) (as

redesignated by subsection (b)(2) of this section) is amended—

(1) in paragraph (1) by adding at the end the following:

‘‘To the extent that such grants are used to train emergency

responders, such training shall ensure that emergency

responders have the ability to protect nearby persons, property,

and the environment from the effects of accidents or incidents

involving gas or hazardous liquid pipelines, in accordance with

existing regulations.’’; and

(2) in paragraph (2)— (A) by striking ‘‘$6,000,000’’ and inserting ‘‘$10,000,000’’; and

(B) by striking ‘‘2003 through 2006’’ and inserting

‘‘2007 through 2010’’.

(d) ONE-CALL NOTIFICATION PROGRAMS.—Section 6107 is

amended—

(1) in subsection (a) by striking ‘‘fiscal years 2003 through

2006’’ and inserting ‘‘fiscal years 2007 through 2010’’; and

(2) in subsection (b) by striking ‘‘for fiscal years 2003

through 2006’’ and inserting ‘‘for fiscal years 2007 through

2010’’.

(e) INSPECTOR STAFFING.—The Secretary shall ensure that the

number of positions for pipeline inspection and enforcement personnel at the Pipeline and Hazardous Materials Safety Administration does not fall below 100 for fiscal year 2007, 111 for fiscal

year 2008, 123 for fiscal year 2009, and 135 for fiscal year 2010.

SEC. 19. STANDARDS TO IMPLEMENT NTSB RECOMMENDATIONS.

Not later than June 1, 2008, the Secretary of Transportation

shall issue standards that implement the following recommendations contained in the National Transportation Safety Board’s report

entitled ‘‘Supervisory Control and Data Acquisition (SCADA) in

Liquid Pipelines’’ and adopted November 29, 2005:

(1) Implementation of the American Petroleum Institute’s

Recommended Practice 165 for the use of graphics on the

supervisory control and data acquisition screens.

(2) Implementation of a standard for pipeline companies

to review and audit alarms on monitoring equipment.

(3) Implementation of standards for pipeline controller

training that include simulator or noncomputerized simulations

for controller recognition of abnormal pipeline operating conditions, in particular, leak events.

SEC. 20. ACCIDENT REPORTING FORM.

Not later than December 31, 2007, the Secretary of Transportation shall amend accident reporting forms to require operators

of gas and hazardous liquid pipelines to provide data related to

controller fatigue.

SEC. 21. LEAK DETECTION TECHNOLOGY STUDY.

Not later than December 31, 2007, the Secretary of Transportation shall submit to Congress a report on leak detection systems

utilized by operators of hazardous liquid pipelines. The report shall

include a discussion of the inadequacies of current leak detection

systems, including their ability to detect ruptures and small leaks

that are ongoing or intermittent, and what can be done to foster

Reports.

49 USC 60117

note.

49 USC 60102

note.

Deadline.

PUBLIC LAW 109–468—DEC. 29, 2006 120 STAT. 3499

development of better technologies as well as address existing

technological inadequacies.

SEC. 22. CORROSION CONTROL REGULATIONS.

(a) REVIEW.—The Secretary of Transportation, in consultation

with the Technical Hazardous Liquid Pipeline Safety Standards

Committee and other appropriate entities, shall review the internal

corrosion control regulations set forth in subpart H of part 195

of title 49 of the Code of Federal Regulations to determine if

such regulations are currently adequate to ensure that the pipeline

facilities subject to such regulations will not present a hazard

to public safety or the environment.

(b) REPORT.—Not later than December 31, 2007, the Secretary

shall submit to Congress a report containing the results of the

review and may modify the regulations referred to in subsection

(a) if necessary and appropriate.

SEC. 23. INSPECTOR GENERAL REPORT.

(a) ASSESSMENT.—Not later than December 31, 2007, the

Inspector General of the Department of Transportation shall conduct an assessment of the actions the Department has taken in

implementing the annex to the memorandum of understanding

between the Secretary of Transportation and the Secretary of Homeland Security, dated September 28, 2004, relating to pipeline security.

(b) SPECIFIED DUTIES OF INSPECTOR GENERAL.—In carrying

out the assessment, the Inspector General shall—

(1) provide a status report on implementation of the program elements outlined and developed in the annex;

(2) describe the roles, responsibilities, and authority of

the Department of Transportation relating to pipeline security;

(3) assess the adequacy and effectiveness of the process

by which the Department of Transportation has communicated

and coordinated with the Department of Homeland Security

on matters relating to pipeline security;

(4) address the adequacy of security standards for gas

and oil pipelines in coordination, as necessary, with the

Inspector General of the Department of Homeland Security;

and

(5) consider any other issues determined to be appropriate

by the Inspector General of the Department of Transportation

or the Secretary of Transportation.

(c) ASSESSMENT REPORT AND PERIODIC STATUS UPDATES.—

(1) ASSESSMENT REPORT.—Not later than December 31,

2007, the Inspector General of the Department of Transportation shall transmit a report on the results of the assessment,

together with any recommendations (including legislative

options for Congress to consider), to the Committees on

Transportation and Infrastructure and Energy and Commerce

of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.

(2) PERIODIC STATUS REPORTS.—The Inspector General shall

transmit periodically to the Committees as referred to in paragraph (1), as necessary and appropriate, reports on matters

pertaining to the implementation by the Department of

Transportation of any recommendations contained in the report

transmitted pursuant to paragraph (1).

120 STAT. 3500 PUBLIC LAW 109–468—DEC. 29, 2006

(d) FORMAT.—The report, or portions of the report, under subsection (c)(1) may be submitted in a classified format if the Inspector

General determines that such action is necessary.

SEC. 24. TECHNICAL ASSISTANCE PROGRAM.

(a) IN GENERAL.—The Secretary of Transportation may award,

through a competitive process, grants to universities with expertise

in pipeline safety and security to establish jointly a collaborative

program to conduct pipeline safety and technical assistance programs.

(b) DUTIES.—In cooperation with the Pipeline and Hazardous

Materials Safety Administration and representatives from States

and boards of public utilities, the participants in the collaborative

program established under subsection (a) shall be responsible for

development of workforce training and technical assistance programs through statewide and regional partnerships that provide

for—

(1) communication of national, State, and local safety

information to pipeline operators;

(2) distribution of technical resources and training to support current and future Federal mandates; and

(3) evaluation of program outcomes.

(c) TRAINING AND EDUCATIONAL MATERIALS.—The collaborative

program established under subsection (a) may include courses in

recent developments, techniques, and procedures related to—

(1) safety and security of pipeline systems;

(2) incident and risk management for such systems;

(3) integrity management for such systems;

(4) consequence modeling for such systems;

(5) detection of encroachments and monitoring of rightsof-way for such systems; and

(6) vulnerability assessment of such systems at both project

and national levels.

(d) REPORTS.—

(1) UNIVERSITY.—Not later than March 31, 2009, the

universities awarded grants under subsection (a) shall submit

to the Secretary a report on the results of the collaborative

program.

(2) SECRETARY.—Not later than October 1, 2009, the Secretary shall transmit the reports submitted to the Secretary

under paragraph (1), along with any findings, recommendations, or legislative options for Congress to consider, to the

Committees on Transportation and Infrastructure and Energy

and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as may be necessary to carry out

this section for each of fiscal years 2007 through 2010.

SEC. 25. NATURAL GAS PIPELINES.

The Secretary of Transportation shall review and comment

on the Comptroller General report issued under section 14(d)(1)

of the Pipeline Safety Improvement Act of 2002 (49 U.S.C. 60109

note; 116 Stat. 3005), and not later than 60 days after the date

of enactment of this Act, transmit to Congress any legislative recommendations the Secretary considers necessary and appropriate

to implement the conclusions of that report.

Deadline.

Recommendations.

49 USC 60101

note.

PUBLIC LAW 109–468—DEC. 29, 2006 120 STAT. 3501

LEGISLATIVE HISTORY—H.R. 5782:

HOUSE REPORTS: No. 109–717, Pt. 1 (Comm. on Transportation and Infrastructure) and Pt. 2 (Comm. on Energy and Commerce).

CONGRESSIONAL RECORD, Vol. 152 (2006):

Dec. 6, considered and passed House.

Dec. 7, considered and passed Senate.

Æ

SEC. 26. CORROSION TECHNOLOGY.

Section 12 of the Pipeline Safety Improvement Act of 2002

(49 U.S.C. 60101 note; Public Law 107–355) is amended—

(1) in subsection (c)(2) by striking ‘‘corrosion,’’;

(2) in subsection (c)—

(A) by striking ‘‘and’’ at the end of paragraph (9);

(B) by redesignating paragraph (10) as paragraph (11);

(C) by inserting after paragraph (9) the following:

‘‘(10) corrosion detection and improving methods, best practices, and technologies for identifying, detecting, preventing,

and managing internal and external corrosion and other safety

risks; and’’; and

(D) by adding at the end the following:

‘‘The results of activities carried out under paragraph (10) shall

be used by the participating agencies to support development and

improvement of national consensus standards.’’; and

(3) by striking subsection (f) and redesignating subsections

(g) and (h) as subsections (f) and (g), respectively.

Approved December 29, 2006.