IB

Union Calendar No. 58

104TH CONGRESS

1ST SESSION H. R. 1323

[Report No. 104–110, Parts I and II]

To reduce risk to public safety and the environment associated with pipeline

transportation of natural gas and hazardous liquids, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 24, 1995

Mr. SHUSTER (for himself, Mr. PETRI, Mr. LAUGHLIN, and Mr. BREWSTER)

introduced the following bill; which was referred to the Committee on

Transportation and Infrastructure, and in addition to the Committee on

Commerce, for a period to be subsequently determined by the Speaker,

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

MAY 1, 1995

Reported from the Committtee on Transportation and Infrastructure with an

amendment

[Strike out all after the enacting clause and insert the part printed in italic]

MAY 1, 1995

Referral to the Committee on Commerce extended for a period ending not

later than June 1, 1995

JUNE 1, 1995

Additional sponsors: Mr. EMERSON and Mr. BACHUS

JUNE 1, 1995

Reported from the Committee on Commerce with an amendment, committed

to the Committee of the Whole House on the State of the Union, and

ordered to be printed

[Strike out all after the enacting clause and insert the part printed in boldface roman]

[For text of introduced bill, see copy of bill as introduced on March 24, 1995]
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A BILL

To reduce risk to public safety and the environment associated with pipeline transportation of natural gas and hazardous liquids, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Pipeline Safety Act of

5 1995’’.

6 SEC. 2. REFERENCES.

7 (a) REFERENCES TO TITLE 49.—Except as otherwise

8 expressly provided, whenever in this Act an amendment or

9 repeal is expressed in terms of an amendment to, or repeal

10 of, a section or other provision, the reference shall be consid11 ered to be made to a section or other provision of title 49,

12 United States Code.

13 (b) REFERENCES TO THE SECRETARY OF TRANSPOR14 TATION.—Except as otherwise expressly provided, any ref15 erence in this Act to the ‘‘Secretary’’ is a reference to the

16 Secretary of Transportation.

17 SEC. 3. ANALYSIS OF RISK REDUCTION BENEFITS AND

18 COSTS.

19 (a) IN GENERAL.—Chapter 601 is amended by adding

20 at the end the following new section:
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1 ‘‘§ 60126. Analysis of risk reduction benefits and costs

2 ‘‘(a) REQUIREMENT.—No final significant standard or

3 regulatory requirement issued under section 60101(b),

4 60102, 60103, 60108, 60109, 60110, or 60113 shall be pro5 mulgated unless the Secretary of Transportation—

6 ‘‘(1) certifies that the Secretary has conducted an

7 analysis of risk reduction benefits and costs that is

8 based on objective and unbiased scientific and eco9 nomic evaluations of all significant and relevant in10 formation and risk assessments provided to the De11 partment of Transportation by interested parties or

12 generated by the Department itself relating to the

13 costs, risks, and risk reduction and other benefits ad14 dressed by the standard or requirement;

15 ‘‘(2) certifies that the incremental risk reduction

16 or other benefits of any option chosen will be likely

17 to justify, and be reasonably related to, the incremen18 tal costs incurred by State, local, and tribal govern19 ments and the Federal Government and other public

20 and private citizens; and

21 ‘‘(3) explains why any other options identified

22 or considered by the Secretary were found either—

23 ‘‘(A) to be less cost-effective at achieving a

24 substantially equivalent reduction in risk; or

25 ‘‘(B) to provide less flexibility to State,

26 local, or tribal governments or regulated entities
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1 in achieving the otherwise applicable objectives of

2 the standard or requirement, along with a brief

3 explanation of why other options that were iden4 tified or considered by the Secretary were found

5 to be less cost-effective or less flexible.

6 ‘‘(b) ELEMENTS OF ANALYSIS.—An analysis of risk re7 duction benefits or costs prepared by the Secretary for a

8 significant standard or regulatory requirement, at a mini9 mum, shall—

10 ‘‘(1) identify the various regulatory and non11 regulatory options that were considered;

12 ‘‘(2) analyze the incremental costs and incremen13 tal risk reduction or other benefits associated with

14 each option identified or considered by the Secretary;

15 ‘‘(3) provide any technical data or other infor16 mation, including the underlying assumptions, upon

17 which the standard or requirement is based; and

18 ‘‘(4) include a statement that places in context

19 the nature and magnitude of the risks to be addressed

20 and the residual risks likely to remain for each option

21 identified or considered.

22 Costs and benefits shall be quantified to the extent feasible

23 and appropriate and may otherwise be qualitatively de24 scribed.
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1 ‘‘(c) RISK ASSESSMENT DOCUMENTS.—A risk assess2 ment document prepared by the Secretary for a significant

3 standard or regulatory requirement shall, at a minimum

4 and to the extent feasible—

5 ‘‘(1) provide the best estimate for the impacts ad6 dressed and a statement of the reasonable range of sci7 entific uncertainties;

8 ‘‘(2) include a statement of any significant sub9 stitution risks to public safety or the environment;

10 and

11 ‘‘(3) contain a statement that places in context

12 the nature and magnitude of risks to public safety or

13 the environment.

14 ‘‘(d) STATEMENTS.—The statements referred to in sub15 sections (b)(4) and (c)(3) of this section shall each provide,

16 to the extent feasible, comparisons with estimates of greater,

17 lesser, and substantially equivalent risks that are familiar

18 to and routinely encountered by the general public, as well

19 as other risks, and, where appropriate and meaningful,

20 comparisons of those risks with other similar risks regulated

21 by the Department resulting from comparable activities. In

22 making such comparisons, the Secretary should consider

23 relevant distinctions among risks, such as the voluntary or

24 involuntary nature of risks, and the preventability or

25 nonpreventability of risks.
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1 ‘‘(e) REVIEW BY STANDARDS COMMITTEE.—

2 ‘‘(1) PEER REVIEW.—For any significant stand3 ard or regulatory requirement, the Secretary shall

4 submit any risk assessment documents and cost-bene5 fit analyses (prepared or received by the Secretary)

6 for review by the Technical Pipeline Safety Standards

7 Committee, the Hazardous Liquid Pipeline Safety

8 Standards Committee, or both, as appropriate, and

9 make them available to the public. The Technical

10 Pipeline Safety Standards Committee and the Haz11 ardous Liquid Pipeline Safety Standards Committee

12 shall function as peer review panels and shall prepare

13 reports, including any recommended options for any

14 significant standard or regulatory requirement and

15 an evaluation of the technical scientific merit of the

16 data and scientific method used for a risk assessment

17 document or cost-benefit analysis. The Committee or

18 Committees shall submit such reports to the Secretary

19 within 90 days after the date of receipt of the docu20 ments and analyses from the Secretary.

21 ‘‘(2) RESPONSE OF SECRETARY.—The Secretary

22 shall review the report and recommendations of the

23 Technical Pipeline Safety Standards Committee, the

24 Technical Hazardous Liquids Pipeline Safety Stand-
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1 ards Committee, or both, as the case may be. Within

2 90 days after receipt of such report, the Secretary—

3 ‘‘(A) shall submit to the Committee or Com4 mittees a written response to all peer review

5 comments and recommended options; and

6 ‘‘(B) may revise the risk assessment docu7 ment or cost-benefit analysis prior to determin8 ing whether the proposed significant standard or

9 regulatory requirement should be promulgated.

10 ‘‘(f) EMERGENCIES.—In the case of an emergency, the

11 Secretary may suspend the application of this section for

12 the duration of the emergency.

13 ‘‘(g) REPORT.—Not later than March 31, 1999, the

14 Secretary shall transmit to Congress a report on the appli15 cation of the principles of the analyses of risk reduction

16 benefits and costs and risk assessment to this chapter and

17 their effect on pipeline safety.’’.

18 (b) CONFORMING AMENDMENT.—The analysis for

19 chapter 601 is amended by adding at the end the following:

‘‘60126. Analysis of risk reduction benefits and costs.

‘‘60127. Risk management.’’.

20 SEC. 4. DEFINITIONS.

21 (a) IN GENERAL.—Section 60101(a) is amended—

22 (1) by striking subparagraph (B) of paragraph

23 (21) and inserting the following:
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1 ‘‘(B) does not include the gathering of gas,

2 other than gathering through regulated gathering

3 lines, in those rural locations that are outside the

4 limits of any incorporated or unincorporated

5 city, town, or village, or any other designated

6 residential or commercial area (such as a sub7 division, business, shopping center, or commu8 nity development) or any similar populated area

9 which the Secretary of Transportation may de10 fine as a nonrural area; but

11 ‘‘(C) includes the movement of gas through

12 regulated gathering lines.’’; and

13 (2) by adding at the end the following:

14 ‘‘(23) ‘best estimate’ means a scientifically ap15 propriate estimate which is based, to the extent fea16 sible, on one of the following:

17 ‘‘(A) Central estimates of risk using the

18 most plausible assumptions.

19 ‘‘(B) An approach which combines multiple

20 estimates based on different scenarios and weighs

21 the probability of each scenario.

22 ‘‘(C) Any other methodology designed to

23 provide the most unbiased representation of the

24 most plausible level of risk, given the current sci25 entific information available to the Secretary.
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1 ‘‘(24) ‘benefits’ means the reasonably identifiable

2 significant health, safety, environmental, social, and

3 economic benefits that are expected to result directly

4 or indirectly from implementation of a standard, reg5 ulatory requirement, or option.

6 ‘‘(25) ‘costs’ means the direct and indirect costs

7 to the United States Government, to State, local, and

8 tribal governments, and to the private sector, wage

9 earners, consumers, and the economy of implementing

10 and complying with a standard, regulatory require11 ment, or option.

12 ‘‘(26) ‘risk assessment document’ means a docu13 ment containing—

14 ‘‘(A) an explanation of how hazards associ15 ated with a substance, activity, or condition have

16 been identified, quantified, and assessed; and

17 ‘‘(B) a statement by the preparer of the doc18 ument accepting the findings of the document.

19 ‘‘(27) ‘risk management’ means the systematic

20 application, by the owner or operator of a pipeline

21 facility, of management policies, procedures, finite re22 sources, and practices to the tasks of analyzing, as23 sessing, and controlling risk in order to protect em24 ployees, the general public, the environment, and

25 pipeline facilities.
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1 ‘‘(28) ‘risk management plan’ means a manage2 ment plan utilized by a gas or hazardous liquid pipe3 line facility owner or operator that encompasses risk

4 management.

5 ‘‘(29) ‘significant standard or regulatory re6 quirement’ means any safety or environmental stand7 ard or regulatory requirement, or closely related

8 group of safety or environmental standards or regu9 latory requirements, that is likely to result in

10 annualized compliance costs in excess of $25,000,000.

11 ‘‘(30) ‘substitution risk’ means a potential risk

12 to public safety or the environment from a significant

13 standard, regulatory requirement, or option designed

14 to decrease other risks.’’.

15 (b) GATHERING LINES.—Section 60101(b)(2) is

16 amended by inserting ‘‘, if appropriate,’’ after ‘‘Secretary’’

17 the first place it appears.

18 SEC. 5. GENERAL AUTHORITY.

19 (a) MINIMUM SAFETY STANDARDS.—Section 60102(a)

20 is amended—

21 (1) by striking ‘‘(a)(1)’’ and inserting ‘‘(a)’’;

22 (2) by striking paragraph (2);

23 (3) by redesignating subparagraphs (A), (B),

24 and (C) as paragraphs (1), (2), and (3), respectively;
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1 (4) in paragraph (1), as redesignated by para2 graph (3) of this subsection, by striking ‘‘transporters

3 of gas and hazardous liquid and to’’; and

4 (5) by striking paragraph (3), as redesignated by

5 paragraph (3) of this subsection, and inserting the

6 following:

7 ‘‘(3) shall include a requirement that all individ8 uals who operate and maintain pipeline facilities

9 must be qualified.

10 Such qualifications shall address the ability to recognize

11 and react appropriately to abnormal operating conditions

12 that may indicate a dangerous situation or a condition ex13 ceeding design limits. The operator of the pipeline facility

14 shall ensure that employees who operate and maintain the

15 facility are qualified.’’.

16 (b) PRACTICABILITY AND SAFETY NEEDS STAND17 ARDS.—Section 60102(b) is amended—

18 (1) by striking ‘‘section 60103’’ and inserting

19 ‘‘sections 60103 and 60112’’;

20 (2) in paragraph (1)(B) by inserting ‘‘safety’’

21 after ‘‘pipeline’’;

22 (3) by striking ‘‘and’’ at the end of paragraph

23 (3);

24 (4) in paragraph (4) by striking ‘‘contribute to’’

25 and inserting ‘‘benefit’’;
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1 (5) by striking the period at the end of para2 graph (4) and inserting ‘‘; and’’; and

3 (6) by adding at the end the following new para4 graph:

5 ‘‘(5) the comments and recommendations of the

6 Technical Pipeline Safety Standards Committee, the

7 Technical Hazardous Liquid Pipeline Safety Stand8 ards Committee, or both, as appropriate.’’.

9 (c) FACILITY OPERATION INFORMATION STAND10 ARDS.—Section 60102(d) is amended in the first sentence—

11 (1) by inserting after ‘‘operating the facility’’ the

12 following: ‘‘as required by the standards prescribed

13 under this chapter’’;

14 (2) by striking ‘‘to provide the information’’ and

15 inserting ‘‘to make the information available’’; and

16 (3) by inserting after ‘‘to the Secretary and an

17 appropriate State official’’ the following: ‘‘as deter18 mined by the Secretary’’.

19 (d) PIPE INVENTORY STANDARDS.—Section 60102(e)

20 is amended in the first sentence—

21 (1) by striking ‘‘and, to the extent the Secretary

22 considers necessary, an operator of a gathering line

23 that is not a regulated gathering line (as defined

24 under section 60101(b)(2) of this title),’’; and
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1 (2) by striking ‘‘transmission’’ and inserting

2 ‘‘transportation’’.

3 (e) SMART PIGS.—

4 (1) MINIMUM SAFETY STANDARDS.—Section

5 60102(f) is amended by striking ‘‘(1)’’ and all that

6 follows through ‘‘device.’’ and inserting the following:

7 ‘‘(1) MINIMUM SAFETY STANDARDS.—The Sec8 retary shall prescribe minimum safety standards re9 quiring that the design and construction of a new gas

10 pipeline facility or hazardous liquid pipeline facility

11 be carried out, to the extent practicable, in a way

12 that accommodates the passage through the facility of

13 an instrumented internal inspection device (com14 monly referred to as a ‘smart pig’). The Secretary

15 shall also prescribe minimum safety standards requir16 ing replacement of an existing gas pipeline facility,

17 hazardous liquid pipeline facility, or equipment, to be

18 carried out, to the extent practicable, in a way that

19 replacement of the existing gas pipeline facility, haz20 ardous liquid pipeline facility, or equipment being re21 placed accommodates the passage through the facility

22 of an instrumented internal inspection device. The

23 Secretary may apply the standard to an existing gas

24 or hazardous liquid facility and require the facility

25 to be changed to allow the facility to be inspected with
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1 an instrumented internal inspection device if the

2 basic construction of the facility will accommodate the

3 device.’’.

4 (2) PERIODIC INSPECTIONS.—Section 60102(f) is

5 further amended—

6 (A) in paragraph (2) by inserting ‘‘PERI7 ODIC INSPECTIONS.—’’ after ‘‘(2)’’;

8 (B) in paragraph (2) by inserting after ‘‘the

9 Secretary shall prescribe’’ the following: ‘‘, if nec10 essary, additional’’; and

11 (C) by moving paragraph (2) 2 ems to the

12 right.

13 (f) UPDATING STANDARDS.—Section 60102 is amend14 ed by adding at the end the following:

15 ‘‘(l) UPDATING STANDARDS.—The Secretary shall, to

16 the extent appropriate and practicable, update incorporated

17 industry standards that have been adopted as part of the

18 Federal pipeline safety regulatory program.’’.

19 SEC. 6. RISK MANAGEMENT.

20 (a) IN GENERAL.—Chapter 601 is further amended by

21 adding at the end the following new section:

22 ‘‘§ 60127. Risk management

23 ‘‘(a) RISK MANAGEMENT DEMONSTRATION

24 PROJECT.—The Secretary of Transportation shall carry out

25 a project with voluntary participation by owners and oper-
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1 ators of pipeline facilities to demonstrate applications of

2 risk management. The purpose of the project shall be to

3 evaluate the safety and cost effectiveness of such applica4 tions.

5 ‘‘(b) EXEMPTION.—During the period of the dem6 onstration project carried out under this section, the Sec7 retary may exempt owners and operators participating in

8 the project from compliance with some or all of the stand9 ards and regulatory requirements that would otherwise

10 apply to such owners and operators under this chapter. In

11 addition, the Secretary shall exempt such owners and oper12 ators from complying with standards and regulatory re13 quirements promulgated under this chapter during the pe14 riod of such participation with respect to facilities included

15 in the project.

16 ‘‘(c) REQUIREMENTS.—In carrying out the demonstra17 tion project under this section, the Secretary shall—

18 ‘‘(1) invite owners and operators of pipeline fa19 cilities to submit risk management plans for timely

20 approval by the Secretary;

21 ‘‘(2) ensure that owners and operators imple22 menting approved risk management plans under the

23 project will achieve an equivalent or greater overall

24 level of safety than such owners and operators would
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1 otherwise achieve by complying with the standards

2 and regulatory requirements of this chapter; and

3 ‘‘(3) ensure that the project incorporates the fol4 lowing elements:

5 ‘‘(A) collaborative training;

6 ‘‘(B) methods to measure the performance of

7 risk management plans;

8 ‘‘(C) development and application of new

9 technologies;

10 ‘‘(D) promotion of community awareness;

11 ‘‘(E) development of a model to categorize

12 the risks inherent to a selected pipeline facility,

13 considering the location, volume, pressure, and

14 material transported or stored by the facility;

15 ‘‘(F) application of risk assessment and risk

16 management methodologies suitable to the inher17 ent risks determined to exist by the model devel18 oped under subparagraph (E);

19 ‘‘(G) development of project elements needed

20 to ensure that owners and operators participat21 ing in the project demonstrate that risks are

22 being effectively managed and that risk manage23 ment plans carried out under the project can be

24 audited;
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1 ‘‘(H) a process for making amendments,

2 modifications, and adjustments to approved risk

3 management plans under the project as agreed to

4 by owners and operators carrying out such plans

5 and the Secretary; and

6 ‘‘(I) such other elements as the Secretary

7 and owners and operators participating in the

8 project may agree would further the purposes of

9 this section.

10 ‘‘(d) EMERGENCIES.—In the case of an emergency, the

11 Secretary may suspend or revoke the participation of an

12 owner or operator in the demonstration project carried out

13 under this section.

14 ‘‘(e) REPORT.—Not later than March 31, 1999, the

15 Secretary shall transmit to Congress a report on the results

16 of the demonstration project carried out under this section

17 together with an evaluation of the project and recommenda18 tions on whether or not the applications demonstrated

19 under the project should be made a permanent part of the

20 Federal pipeline safety program.’’.

21 SEC. 7. INSPECTION AND MAINTENANCE.

22 Section 60108 is amended—

23 (1) in subsection (a)(1) by striking ‘‘transport24 ing gas or hazardous liquid or’’ each place it appears;
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1 (2) in subsection (b)(2) by striking the second

2 sentence;

3 (3) in the heading to subsection (c) by striking

4 ‘‘NAVIGABLE WATERS’’ and inserting ‘‘OTHER WA5 TERS’’; and

6 (4) by striking clause (ii) of subsection (c)(2)(A)

7 and inserting the following:

8 ‘‘(ii) any other pipeline facility crossing under,

9 over, or through waters where a substantial likelihood

10 of commercial navigation exists if the Secretary de11 cides that the location of the facility in those waters

12 could pose a hazard to navigation or public safety.’’.

13 SEC. 8. HIGH-DENSITY POPULATION AREAS AND ENVIRON14 MENTALLY SENSITIVE AREAS.

15 (a) IDENTIFICATION.—Section 60109(a)(1)(B)(i) is

16 amended by striking ‘‘a navigable waterway (as the Sec17 retary defines by regulation)’’ and inserting ‘‘waters where

18 a substantial likelihood of commercial navigation exists’’.

19 (b) UNUSUALLY SENSITIVE AREAS.—Section 60109(b)

20 is amended by striking paragraph (1) and inserting the fol21 lowing:

22 ‘‘(1) intake locations for community water sys23 tems;’’.

24 SEC. 9. EXCESS FLOW VALUES.

25 Section 60110 is amended—
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1 (1) in subsection (b) by inserting ‘‘, if any,’’

2 after ‘‘circumstances’’;

3 (2) in subsection (b)(4) by inserting ‘‘, operating,

4 and maintaining’’ after ‘‘cost of installing’’;

5 (3) in subsection (c)(1)(C) by inserting ‘‘, main6 tenance, and replacement’’ after ‘‘installation’’; and

7 (4) in subsection (e) by inserting after the first

8 sentence the following: ‘‘The Secretary may adopt in9 dustry accepted performance standards in order to

10 comply with this requirement.’’.

11 SEC. 10. CUSTOMER-OWNED NATURAL GAS SERVICE LINES.

12 Section 60113 is amended—

13 (1) by striking ‘‘(a) MAINTENANCE INFORMA14 TION.—’’; and

15 (2) by striking subsection (b).

16 SEC. 11. ONE-CALL NOTIFICATION SYSTEMS.

17 (a) APPLICATION.—Section 60114(a) is amended—

18 (1) in paragraph (1) by striking ‘‘the system

19 apply to’’;

20 (2) in paragraph (1) by inserting before the pe21 riod ‘‘be covered by a system’’;

22 (3) in each of paragraphs (1), (2), (3), (6), (7),

23 (8), and (9) by striking ‘‘a’’ the first place it appears

24 and inserting ‘‘A’’;
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1 (4) in paragraph (4) by striking ‘‘qualifications’’

2 and inserting ‘‘Qualifications’’; and

3 (5) in paragraph (5) by striking ‘‘procedures’’

4 and inserting ‘‘Procedures’’.

5 (b) SANCTIONS.—Section 60114(a)(9) is further

6 amended by striking ‘‘60120, 60122, and 60123’’ and in7 serting ‘‘60120 and 60122’’.

8 SEC. 12. TECHNICAL SAFETY STANDARDS COMMITTEES.

9 (a) PEER REVIEW.—Section 60115(a) is amended by

10 adding at the end the following: ‘‘The Committees shall

11 serve as peer review committees for carrying out this chap12 ter. Peer reviews conducted by the Committees shall be treat13 ed for purposes of all Federal laws relating to risk assess14 ment and peer review (including laws approved after the

15 date of the enactment of the Pipeline Safety Act of 1995)

16 as meeting any peer review requirements of such laws.’’.

17 (b) COMPOSITION AND APPOINTMENT.—Section

18 60115(b) is amended—

19 (1) in paragraph (1) by inserting ‘‘or risk man20 agement’’ before the period at the end of the last sen21 tence;

22 (2) in paragraph (2) by inserting ‘‘or risk man23 agement’’ before the period at the end of the last sen24 tence;
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1 (3) in paragraph (3)(B) by striking ‘‘4’’ and in2 serting ‘‘5’’;

3 (4) in paragraph (3)(C) by striking ‘‘6’’ and in4 serting ‘‘5’’;

5 (5) in paragraph (4)(B) by adding at the end

6 the following: ‘‘At least 1 of the individuals selected

7 for each committee under paragraph (3)(B) must

8 have education, background, or experience in risk as9 sessment and cost-benefit analysis. The Secretary

10 shall consult with the national organizations rep11 resenting the owners and operators of pipeline facili12 ties before selecting individuals under paragraph

13 (3)(B).’’; and

14 (6) in paragraph (4)(C) by inserting after the

15 first sentence the following: ‘‘At least 1 of the individ16 uals selected for each committee under paragraph

17 (3)(C) must have education, background, or experi18 ence in risk assessment and cost-benefit analysis.’’.

19 (c) COMMITTEE REPORTS.—Section 60115(c) is

20 amended—

21 (1) by inserting ‘‘or regulatory requirement’’

22 after ‘‘standard’’ each place it appears in paragraphs

23 (1), (2), and (3);

24 (2) in paragraph (1)(A) by inserting after ‘‘gas

25 pipeline facilities’’ the following: ‘‘, including the risk
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1 assessment document, cost-benefit, and other analyses

2 supporting each proposed standard or regulatory re3 quirement’’;

4 (3) in paragraph (1)(B) by inserting after ‘‘haz5 ardous liquid pipeline facilities’’ the following: ‘‘, in6 cluding the risk assessment document, cost-benefit,

7 and other analyses supporting each proposed stand8 ard or regulatory requirement’’; and

9 (4) in paragraph (2)—

10 (A) by inserting ‘‘and supporting analyses’’

11 before the first comma in the first sentence;

12 (B) by inserting ‘‘and submit to the Sec13 retary’’ after ‘‘prepare’’ in the first sentence;

14 (C) by inserting ‘‘cost effectiveness,’’ after

15 ‘‘reasonableness,’’ in the first sentence;

16 (D) by inserting ‘‘together with rec17 ommended actions’’ before the period at the end

18 of the first sentence; and

19 (E) by inserting ‘‘any recommended actions

20 and’’ after ‘‘including’’ in the second sentence.

21 (d) PROPOSED COMMITTEE STANDARDS AND REGU22 LATORY REQUIREMENTS.—Section 60115(d)(1) is amended

23 by inserting ‘‘or regulatory requirement’’ after ‘‘standard’’

24 each place it appears.
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1 (e) MEETINGS.—Section 60115(e) is amended by strik2 ing ‘‘twice’’ and inserting ‘‘4 times’’.

3 (f) EXPENSES.—Section 60115(f) is amended—

4 (1) in the subsection heading by striking ‘‘PAY

5 AND’’;

6 (2) by striking the first two sentences; and

7 (3) by inserting ‘‘of a committee under this sec8 tion’’ after ‘‘A member’’.

9 SEC. 13. PUBLIC EDUCATION PROGRAMS.

10 Section 60116 is amended—

11 (1) by striking ‘‘person transporting gas’’ and

12 inserting ‘‘owner or operator of a gas pipeline facil13 ity’’;

14 (2) by inserting ‘‘the use of damage prevention

15 (‘one-call’) systems prior to excavation,’’ after ‘‘edu16 cate the public on’’; and

17 (3) by inserting a comma after ‘‘gas leaks’’.

18 SEC. 14. ADMINISTRATIVE.

19 Section 60117 is amended by adding at the end the

20 following:

21 ‘‘(k) AUTHORITY FOR COOPERATIVE AGREEMENTS.—

22 To carry out this chapter, the Secretary may enter into

23 grants, cooperative agreements, and other transactions with

24 any person, agency, or instrumentality of the United

25 States, any unit of State or local government, any edu-
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1 cational institution, and any other entity to further the ob2 jectives of this chapter. Such objectives include, but are not

3 limited to, the development, improvement, and promotion

4 of one-call damage prevention programs, research, risk as5 sessment, and mapping.’’.

6 SEC. 15. COMPLIANCE AND WAIVERS.

7 Section 60118 is amended by adding at the end the

8 following:

9 ‘‘(e) COMPLIANCE WITH RISK MANAGEMENT PLANS.—

10 Owners and operators that are participating in the dem11 onstration project under section 60127 shall be considered

12 to be in compliance with any prescribed safety standard

13 or regulatory requirement that is covered by an approved

14 plan under section 60127.’’.

15 SEC. 16. DAMAGE REPORTING.

16 Section 60123(d)(2) is amended—

17 (1) by striking ‘‘or’’ at the end of subparagraph

18 (A);

19 (2) by redesignating subparagraph (B) as sub20 paragraph (C); and

21 (3) by inserting after subparagraph (A) the fol22 lowing:

23 ‘‘(B) a pipeline facility and does not report

24 the damage promptly to the operator of the pipe-
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1 line facility and other appropriate authorities;

2 or’’.

3 SEC. 17. ANNUAL REPORTS.

4 Section 60124 and the item relating to such section

5 in the analysis for chapter 601 are repealed.

6 SEC. 18. POPULATION ENCROACHMENT.

7 (a) IN GENERAL.—Chapter 601 is amended by insert8 ing after section 60123 the following new section:

9 ‘‘§ 60124. Population encroachment

10 ‘‘(a) LAND USE RECOMMENDATIONS.—The Secretary

11 of Transportation shall make available to an appropriate

12 official of each State, as determined by the Secretary, the

13 land use recommendations of the Transportation Research

14 Board’s Special Report 219, entitled ‘Pipelines and Public

15 Safety’.

16 ‘‘(b) EVALUATION.—The Secretary shall evaluate the

17 recommendations in the report referred to in subsection (a),

18 determine to what extent the recommendations are being

19 implemented, consider ways to improve implementation of

20 the recommendations, and consider other initiatives to fur21 ther improve awareness of local planning and zoning enti22 ties regarding issues involved with population encroach23 ment in proximity to the rights-of-ways of any interstate

24 gas pipeline facility or interstate hazardous liquid pipeline

25 facility.’’.
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1 (b) CONFORMING AMENDMENT.—The analysis for

2 chapter 601 is amended by inserting after the item relating

3 to section 60123 the following:

‘‘60124. Population encroachment.’’.

4 SEC. 19. TECHNICAL CORRECTIONS.

5 (a) SECTION 60105.—The heading to section 60105 is

6 amended by inserting ‘‘pipeline safety program’’

7 after ‘‘State’’.

8 (b) SECTION 60106.—The heading to section 60106 is

9 amended by inserting ‘‘pipeline safety’’ after ‘‘State’’.

10 (c) SECTION 60107.—The heading to section 60107 is

11 amended by inserting ‘‘pipeline safety’’ after ‘‘State’’.

12 (d) CHAPTER ANALYSIS.—The analysis for chapter

13 601 is amended—

14 (1) in the item relating to section 60105 by in15 serting ‘‘pipeline safety program’’ after ‘‘State’’;

16 (2) in the item relating to section 60106 by in17 serting ‘‘pipeline safety’’ after ‘‘State’’; and

18 (3) in the item relating to section 60107 by in19 serting ‘‘pipeline safety’’ after ‘‘State’’.

20 SEC. 20. AUTHORIZATIONS OF APPROPRIATION.

21 (a) GAS.—Section 60125(a) is amended by adding at

22 the end the following:

23 ‘‘(4) $7,866,000 for fiscal year 1996.

24 ‘‘(5) $8,322,000 for fiscal year 1997.

25 ‘‘(6) $8,778,000 for fiscal year 1998.
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1 ‘‘(7) $9,234,000 for fiscal year 1999.’’.

2 (b) HAZARDOUS LIQUID.—Section 60125(b) is amend3 ed by adding at the end the following:

4 ‘‘(4) $2,070,000 for fiscal year 1996.

5 ‘‘(5) $2,190,000 for fiscal year 1997.

6 ‘‘(6) $2,310,000 for fiscal year 1998.

7 ‘‘(7) $2,430,000 for fiscal year 1999.’’.

8 (c) STATE GRANTS.—Section 60125(c)(1) by adding at

9 the end the following:

10 ‘‘(D) $10,764,000 for fiscal year 1996.

11 ‘‘(E) $11,388,000 for fiscal year 1997.

12 ‘‘(F) $12,012,000 for fiscal year 1998.

13 ‘‘(G) $12,636,000 for fiscal year 1999.’’.

14 SECTION 1. SHORT TITLE.

15 This Act may be cited as the ‘‘Pipeline

16 Safety Act of 1995’’.

17 SEC. 2. REFERENCES.

18 (a) REFERENCES TO TITLE 49.—Except as

19 otherwise expressly provided, whenever in

20 this Act an amendment or repeal is expressed

21 in terms of an amendment to, or repeal of, a

22 section or other provision, the reference shall

23 be considered to be made to a section or other

24 provision of title 49, United States Code.
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1 (b) REFERENCES TO THE SECRETARY OF

2 TRANSPORTATION.—Except as otherwise ex3 pressly provided, any reference in this Act to

4 the ‘‘Secretary’’ is a reference to the Secretary

5 of Transportation.

6 SEC. 3. ANALYSIS OF RISK REDUCTION BENEFITS AND

7 COSTS.

8 (a) IN GENERAL.—Chapter 601 is amended

9 by adding at the end the following new sec10 tion:

11 ‘‘§ 60126. Analysis of risk reduction benefits and costs

12 ‘‘(a) REQUIREMENT.—No final significant

13 standard or regulatory requirement issued

14 under section 60101(b), 60102, 60103, 60108,

15 60109, 60110, or 60113 shall be promulgated

16 unless the Secretary of Transportation—

17 ‘‘(1) certifies that the Secretary has

18 conducted an analysis of risk reduction

19 benefits and costs that is based on objec20 tive and unbiased scientific and eco21 nomic evaluations of all significant and

22 relevant information and risk assess23 ments provided to the Department of

24 Transportation by interested parties or

25 generated by the Department itself relat-
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1 ing to the costs, risks, and risk reduction

2 and other benefits addressed by the

3 standard or requirement;

4 ‘‘(2) certifies that the incremental risk

5 reduction or other benefits of any option

6 chosen will be likely to justify, and be

7 reasonably related to, the incremental

8 costs incurred by State, local, and tribal

9 governments and the Federal Govern10 ment and other public and private citi11 zens; and

12 ‘‘(3) explains why any other options

13 identified or considered by the Secretary

14 were found either—

15 ‘‘(A) to be less cost-effective at

16 achieving a substantially equivalent

17 reduction in risk; or

18 ‘‘(B) to provide less flexibility to

19 State, local, or tribal governments or

20 regulated entities in achieving the

21 otherwise applicable objectives of the

22 standard or requirement, along with

23 a brief explanation of why other op24 tions that were identified or consid-
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1 ered by the Secretary were found to

2 be less cost-effective or less flexible.

3 ‘‘(b) ELEMENTS OF ANALYSIS.—An analysis

4 of risk reduction benefits or costs prepared

5 by the Secretary for a significant standard or

6 regulatory requirement, at a minimum,

7 shall—

8 ‘‘(1) identify the various regulatory

9 and nonregulatory options that were con10 sidered;

11 ‘‘(2) analyze the incremental costs

12 and incremental risk reduction or other

13 benefits associated with each option

14 identified or considered by the Secretary;

15 ‘‘(3) provide any technical data or

16 other information, including the underly17 ing assumptions, upon which the stand18 ard or requirement is based; and

19 ‘‘(4) include a statement that places in

20 context the nature and magnitude of the

21 risks to be addressed and the residual

22 risks likely to remain for each option

23 identified or considered.
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1 Costs and benefits shall be quantified to the

2 extent feasible and appropriate and may oth3 erwise be qualitatively described.

4 ‘‘(c) RISK ASSESSMENT DOCUMENTS.—A risk

5 assessment document prepared by the Sec6 retary for a significant standard or regulatory

7 requirement shall, at a minimum and to the

8 extent feasible—

9 ‘‘(1) provide the best estimate for the

10 impacts addressed and a statement of the

11 reasonable range of scientific uncertain12 ties;

13 ‘‘(2) include a statement of any sig14 nificant substitution risks to public safe15 ty or the environment; and

16 ‘‘(3) contain a statement that places

17 in context the nature and magnitude of

18 risks to public safety or the environment.

19 ‘‘(d) STATEMENTS.—The statements re20 ferred to in subsections (b)(4) and (c)(3) of this

21 section shall each provide, to the extent fea22 sible, comparisons with estimates of greater,

23 lesser, and substantially equivalent risks that

24 are familiar to and routinely encountered by

25 the general public, as well as other risks, and,
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1 where appropriate and meaningful, compari2 sons of those risks with other similar risks

3 regulated by the Department resulting from

4 comparable activities. In making such com5 parisons, the Secretary should consider rel6 evant distinctions among risks, such as the

7 voluntary or involuntary nature of risks, and

8 the preventability or nonpreventability of

9 risks.

10 ‘‘(e) REVIEW BY STANDARDS COMMITTEE.—

11 ‘‘(1) PEER REVIEW.—For any significant

12 standard or regulatory requirement, the

13 Secretary shall submit any risk assess14 ment documents and cost-benefit analy15 ses (prepared or received by the Sec16 retary) for review by the Technical Pipe17 line Safety Standards Committee, the

18 Hazardous Liquid Pipeline Safety Stand19 ards Committee, or both, as appropriate,

20 and make them available to the public.

21 The Technical Pipeline Safety Standards

22 Committee and the Hazardous Liquid

23 Pipeline Safety Standards Committee

24 shall function as peer review panels and

25 shall prepare reports, including any rec-
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1 ommended options for any significant

2 standard or regulatory requirement and

3 an evaluation of the technical scientific

4 merit of the data and scientific method

5 used for a risk assessment document or

6 cost-benefit analysis. The Committee or

7 Committees shall submit such reports to

8 the Secretary within 90 days after the

9 date of receipt of the documents and

10 analyses from the Secretary.

11 ‘‘(2) RESPONSE OF SECRETARY.—The

12 Secretary shall review the report and

13 recommendations of the Technical Pipe14 line Safety Standards Committee, the

15 Technical Hazardous Liquids Pipeline

16 Safety Standards Committee, or both, as

17 the case may be. Within 90 days after re18 ceipt of such report, the Secretary—

19 ‘‘(A) shall submit to the Commit20 tee or Committees a written response

21 to all peer review comments and rec22 ommended options; and

23 ‘‘(B) may revise the risk assess24 ment document or cost-benefit analy25 sis prior to determining whether the
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1 proposed significant standard or reg2 ulatory requirement should be pro3 mulgated.

4 ‘‘(f) EMERGENCIES.—In the case of an emer5 gency, the Secretary may suspend the appli6 cation of this section for the duration of the

7 emergency.

8 ‘‘(g) REPORT.—Not later than March 31,

9 1999, the Secretary shall transmit to Congress

10 a report on the application of the principles

11 of the analyses of risk reduction benefits and

12 costs and risk assessment to this chapter and

13 their effect on pipeline safety.’’.

14 (b) CONFORMING AMENDMENT.—The analy15 sis for chapter 601 is amended by adding at

16 the end the following:

‘‘60126. Analysis of risk reduction benefits and costs.

‘‘60127. Risk management.’’.

17 SEC. 4. DEFINITIONS.

18 (a) IN GENERAL.—Section 60101(a) is

19 amended—

20 (1) by striking subparagraph (B) of

21 paragraph (21) and inserting the follow22 ing:

23 ‘‘(B) does not include the gather24 ing of gas, other than gathering
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1 through regulated gathering lines, in

2 those rural locations that are outside

3 the limits of any incorporated or un4 incorporated city, town, or village, or

5 any other designated residential or

6 commercial area (such as a subdivi7 sion, business, shopping center, or

8 community development) or any simi9 lar populated area which the Sec10 retary of Transportation may define

11 as a nonrural area; but

12 ‘‘(C) includes the movement of gas

13 through regulated gathering lines.’’;

14 and

15 (2) by adding at the end the follow16 ing:

17 ‘‘(23) ‘best estimate’ means a scientif18 ically appropriate estimate which is

19 based, to the extent feasible, on one of

20 the following:

21 ‘‘(A) Central estimates of risk

22 using the most plausible assumptions.

23 ‘‘(B) An approach which combines

24 multiple estimates based on different
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1 scenarios and weighs the probability

2 of each scenario.

3 ‘‘(C) Any other methodology de4 signed to provide the most unbiased

5 representation of the most plausible

6 level of risk, given the current sci7 entific information available to the

8 Secretary.

9 ‘‘(24) ‘benefits’ means the reasonably

10 identifiable significant health, safety, en11 vironmental, social, and economic bene12 fits that are expected to result directly or

13 indirectly from implementation of a

14 standard, regulatory requirement, or op15 tion.

16 ‘‘(25) ‘costs’ means the direct and indi17 rect costs to the United States Govern18 ment, to State, local, and tribal govern19 ments, and to the private sector, wage

20 earners, consumers, and the economy of

21 implementing and complying with a

22 standard, regulatory requirement, or op23 tion.

24 ‘‘(26) ‘risk assessment document’

25 means a document containing—
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1 ‘‘(A) an explanation of how haz2 ards associated with a substance, ac3 tivity, or condition have been identi4 fied, quantified, and assessed; and

5 ‘‘(B) a statement by the preparer

6 of the document accepting the find7 ings of the document.

8 ‘‘(27) ‘risk management’ means the

9 systematic application, by the owner or

10 operator of a pipeline facility, of manage11 ment policies, procedures, finite re12 sources, and practices to the tasks of ana13 lyzing, assessing, and controlling risk in

14 order to protect employees, the general

15 public, the environment, and pipeline fa16 cilities.

17 ‘‘(28) ‘risk management plan’ means a

18 management plan utilized by a gas or

19 hazardous liquid pipeline facility owner

20 or operator that encompasses risk man21 agement.

22 ‘‘(29) ‘significant standard or regu23 latory requirement’ means any safety or

24 environmental standard or regulatory re25 quirement, or closely related group of
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1 safety or environmental standards or reg2 ulatory requirements, that is likely to re3 sult in annualized compliance costs in ex4 cess of $25,000,000.

5 ‘‘(30) ‘substitution risk’ means a po6 tential risk to public safety or the envi7 ronment from a significant standard, reg8 ulatory requirement, or option designed

9 to decrease other risks.’’.

10 (b) GATHERING LINES.—Section 60101(b)(2)

11 is amended by inserting ‘‘, if appropriate,’’

12 after ‘‘Secretary’’ the first place it appears.

13 SEC. 5. GENERAL AUTHORITY.

14 (a) MINIMUM SAFETY STANDARDS.—Section

15 60102(a) is amended—

16 (1) by striking ‘‘(a)(1)’’ and inserting

17 ‘‘(a)’’;

18 (2) by striking paragraph (2);

19 (3) by redesignating subparagraphs

20 (A), (B), and (C) as paragraphs (1), (2),

21 and (3), respectively;

22 (4) in paragraph (1), as redesignated

23 by paragraph (3) of this subsection, by

24 striking ‘‘transporters of gas and hazard25 ous liquid and to’’; and
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1 (5) by striking paragraph (3), as re2 designated by paragraph (3) of this sub3 section, and inserting the following:

4 ‘‘(3) shall include a requirement that

5 all individuals who operate and maintain

6 pipeline facilities must be qualified.

7 Such qualifications shall address the ability

8 to recognize and react appropriately to ab9 normal operating conditions that may indi10 cate a dangerous situation or a condition ex11 ceeding design limits. The operator of the

12 pipeline facility shall ensure that employees

13 who operate and maintain the facility are

14 qualified.’’.

15 (b) PRACTICABILITY AND SAFETY NEEDS

16 STANDARDS.—Section 60102(b) is amended—

17 (1) by striking ‘‘section 60103’’ and in18 serting ‘‘sections 60103 and 60112’’;

19 (2) in paragraph (1)(B) by inserting

20 ‘‘safety’’ after ‘‘pipeline’’;

21 (3) by striking ‘‘and’’ at the end of

22 paragraph (3);

23 (4) in paragraph (4) by striking ‘‘con24 tribute to’’ and inserting ‘‘benefit’’;
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1 (5) by striking the period at the end

2 of paragraph (4) and inserting ‘‘; and’’;

3 and

4 (6) by adding at the end the following

5 new paragraph:

6 ‘‘(5) the comments and recommenda7 tions of the Technical Pipeline Safety

8 Standards Committee, the Technical Haz9 ardous Liquid Pipeline Safety Standards

10 Committee, or both, as appropriate.’’.

11 (c) FACILITY OPERATION INFORMATION

12 STANDARDS.—Section 60102(d) is amended in

13 the first sentence—

14 (1) by inserting after ‘‘operating the

15 facility’’ the following: ‘‘as required by

16 the standards prescribed under this

17 chapter’’;

18 (2) by striking ‘‘to provide the infor19 mation’’ and inserting ‘‘to make the infor20 mation available’’; and

21 (3) by inserting after ‘‘to the Sec22 retary and an appropriate State official’’

23 the following: ‘‘as determined by the Sec24 retary’’.
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1 (d) PIPE INVENTORY STANDARDS.—Section

2 60102(e) is amended in the first sentence—

3 (1) by striking ‘‘and, to the extent the

4 Secretary considers necessary, an opera5 tor of a gathering line that is not a regu6 lated gathering line (as defined under

7 section 60101(b)(2) of this title),’’; and

8 (2) by striking ‘‘transmission’’ and in9 serting ‘‘transportation’’.

10 (e) SMART PIGS.—

11 (1) MINIMUM SAFETY STANDARDS.—Sec12 tion 60102(f) is amended by striking ‘‘(1)’’

13 and all that follows through ‘‘device.’’ and

14 inserting the following:

15 ‘‘(1) MINIMUM SAFETY STANDARDS.—The

16 Secretary shall prescribe minimum safety

17 standards requiring that the design and

18 construction of a new gas or hazardous

19 liquid pipeline transmission facility be

20 carried out, to the extent practicable, in

21 a way that accommodates the passage

22 through the facility of an instrumented

23 internal inspection device (commonly re24 ferred to as a ‘smart pig’). The Secretary

25 shall also prescribe minimum safety
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1 standards requiring that when a segment

2 of an existing gas or hazardous liquid

3 pipeline transmission facility is replaced,

4 to the extent practicable, the replace5 ment segment can accommodate the pas6 sage of an instrumented internal inspec7 tion device. The Secretary may apply the

8 standard to an existing gas or hazardous

9 liquid facility and require the facility to

10 be changed to allow the facility to be in11 spected with an instrumented internal in12 spection device if the basic construction

13 of the facility will accommodate the de14 vice.’’.

15 (2) PERIODIC INSPECTIONS.—Section

16 60102(f) is further amended—

17 (A) in paragraph (2) by inserting

18 ‘‘PERIODIC INSPECTIONS.—’’ after ‘‘(2)’’;

19 (B) in paragraph (2) by inserting

20 after ‘‘the Secretary shall prescribe’’

21 the following: ‘‘, if necessary, addi22 tional’’; and

23 (C) by moving paragraph (2) 2

24 ems to the right.
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1 (f) UPDATING STANDARDS.—Section 60102 is

2 amended by adding at the end the following:

3 ‘‘(l) UPDATING STANDARDS.—The Secretary

4 shall, to the extent appropriate and prac5 ticable, update incorporated industry stand6 ards that have been adopted as part of the

7 Federal pipeline safety regulatory program.’’.

8 SEC. 6. RISK MANAGEMENT.

9 Chapter 601 is further amended by adding

10 at the end the following new section:

11 ‘‘§ 60127. Risk management

12 ‘‘(a) RISK MANAGEMENT DEMONSTRATION

13 PROJECT.—The Secretary of Transportation

14 shall carry out a project with voluntary par15 ticipation by owners and operators of pipe16 line facilities to demonstrate applications of

17 risk management. The purpose of the project

18 shall be to evaluate the safety and cost effec19 tiveness of such applications.

20 ‘‘(b) EXEMPTION.—During the period of the

21 demonstration project carried out under this

22 section, the Secretary may exempt owners

23 and operators participating in the project

24 from compliance with some or all of the stand25 ards and regulatory requirements that would
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1 otherwise apply to such owners and operators

2 under this chapter. In addition, the Secretary

3 shall exempt such owners and operators from

4 complying with standards and regulatory re5 quirements promulgated under this chapter

6 during the period of such participation with

7 respect to facilities included in the project.

8 ‘‘(c) REQUIREMENTS.—In carrying out the

9 demonstration project under this section, the

10 Secretary shall—

11 ‘‘(1) invite owners and operators of

12 pipeline facilities to submit risk manage13 ment plans for timely approval by the

14 Secretary;

15 ‘‘(2) ensure that the approved risk

16 management plans under the project con17 tain measures that are designed to

18 achieve an equivalent or greater overall

19 level of safety than would otherwise be

20 achieved by complying with the stand21 ards and regulatory requirements of this

22 chapter; and

23 ‘‘(3) ensure that the project incor24 porates the following elements:

25 ‘‘(A) collaborative training;
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1 ‘‘(B) methods to measure the per2 formance of risk management plans;

3 ‘‘(C) development and application

4 of new technologies;

5 ‘‘(D) promotion of community

6 awareness;

7 ‘‘(E) development of a model to

8 categorize the risks inherent to a se9 lected pipeline facility, considering

10 the location, volume, pressure, and

11 material transported or stored by the

12 facility;

13 ‘‘(F) application of risk assess14 ment and risk management meth15 odologies suitable to the inherent

16 risks determined to exist by the

17 model developed under subparagraph

18 (E);

19 ‘‘(G) development of project ele20 ments needed to ensure that owners

21 and operators participating in the

22 project demonstrate that risks are

23 being effectively managed and that

24 risk management plans carried out

25 under the project can be audited;
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1 ‘‘(H) a process for making amend2 ments, modifications, and adjust3 ments to approved risk management

4 plans under the project as agreed to

5 by owners and operators carrying out

6 such plans and the Secretary; and

7 ‘‘(I) such other elements as the

8 Secretary and owners and operators

9 participating in the project may

10 agree would further the purposes of

11 this section.

12 ‘‘(d) EMERGENCIES.—In the case of an

13 emergency, the Secretary may suspend or re14 voke the participation of an owner or opera15 tor in the demonstration project carried out

16 under this section.

17 ‘‘(e) REPORT.—Not later than March 31,

18 1999, the Secretary shall transmit to Congress

19 a report on the results of the demonstration

20 project carried out under this section to21 gether with an evaluation of the project and

22 recommendations on whether or not the ap23 plications demonstrated under the project

24 should be made a permanent part of the Fed25 eral pipeline safety program.’’.
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1 SEC. 7. INSPECTION AND MAINTENANCE.

2 Section 60108 is amended—

3 (1) in subsection (a)(1) by striking

4 ‘‘transporting gas or hazardous liquid or’’

5 each place it appears;

6 (2) in subsection (b)(2) by striking the

7 second sentence;

8 (3) in the heading to subsection (c) by

9 striking ‘‘NAVIGABLE WATERS’’ and insert10 ing ‘‘OTHER WATERS’’; and

11 (4) by striking clause (ii) of sub12 section (c)(2)(A) and inserting the follow13 ing:

14 ‘‘(ii) any other pipeline facility cross15 ing under, over, or through waters where

16 a substantial likelihood of commercial

17 navigation exists if the Secretary decides

18 that the location of the facility in those

19 waters could pose a hazard to navigation

20 or public safety.’’.

21 SEC. 8. HIGH-DENSITY POPULATION AREAS AND ENVIRON22 MENTALLY SENSITIVE AREAS.

23 (a) IDENTIFICATION.—Section

24 60109(a)(1)(B)(i) is amended by striking ‘‘a

25 navigable waterway (as the Secretary defines

26 by regulation)’’ and inserting ‘‘waters where a
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1 substantial likelihood of commercial naviga2 tion exists’’.

3 (b) UNUSUALLY SENSITIVE AREAS.—Section

4 60109(b) is amended to read as follows:

5 ‘‘(b) AREAS TO BE INCLUDED AS UNUSUALLY

6 SENSITIVE.—When describing areas that are

7 unusually sensitive to environmental damage

8 if there is a hazardous liquid pipeline acci9 dent, the Secretary shall consider areas

10 where a pipeline rupture would likely cause

11 permanent or long-term environmental dam12 age, including—

13 ‘‘(1) locations near pipeline rights-of14 way that are critical to drinking water,

15 including intake locations for community

16 water systems and critical sole source aq17 uifer protection areas; and

18 ‘‘(2) locations near pipeline rights-of19 way which have been identified as criti20 cal wetlands, riverine or estuarine sys21 tems, National Parks, wilderness areas,

22 wildlife preservation areas and refuges,

23 wild and scenic rivers, or critical habitat

24 areas for threatened and endangered spe25 cies.’’.
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1 SEC. 9. EXCESS FLOW VALUES.

2 Section 60110 is amended—

3 (1) in subsection (b) by inserting ‘‘, if

4 any,’’ after ‘‘circumstances’’;

5 (2) in subsection (b)(4) by inserting ‘‘,

6 operating, and maintaining’’ after ‘‘cost of

7 installing’’;

8 (3) in subsection (c)(1)(C) by inserting

9 ‘‘, maintenance, and replacement’’ after

10 ‘‘installation’’; and

11 (4) in subsection (e) by inserting after

12 the first sentence the following: ‘‘The Sec13 retary may adopt industry accepted per14 formance standards in order to comply

15 with this requirement.’’.

16 SEC. 10. CUSTOMER-OWNED NATURAL GAS SERVICE LINES.

17 Section 60113 is amended—

18 (1) by striking ‘‘(a) MAINTENANCE IN19 FORMATION.—’’; and

20 (2) by striking subsection (b).

21 SEC. 11. ONE-CALL NOTIFICATION SYSTEMS.

22 (a) APPLICATION.—Section 60114(a) is

23 amended—

24 (1) in paragraph (1) by striking ‘‘the

25 system apply to’’;
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1 (2) in paragraph (1) by inserting be2 fore the period ‘‘be covered by a system’’;

3 (3) in each of paragraphs (1), (2), (3),

4 (6), (7), (8), and (9) by striking ‘‘a’’ the

5 first place it appears and inserting ‘‘A’’;

6 (4) in paragraph (4) by striking

7 ‘‘qualifications’’ and inserting ‘‘Qualifica8 tions’’; and

9 (5) in paragraph (5) by striking ‘‘pro10 cedures’’ and inserting ‘‘Procedures’’.

11 (b) SANCTIONS.—Section 60114(a)(9) is fur12 ther amended by striking ‘‘60120, 60122, and

13 60123’’ and inserting ‘‘60120 and 60122’’.

14 SEC. 12. TECHNICAL SAFETY STANDARDS COMMITTEES.

15 (a) PEER REVIEW.—Section 60115(a) is

16 amended by adding at the end the following:

17 ‘‘The Committees shall serve as peer review

18 committees for carrying out this chapter.

19 Peer reviews conducted by the Committees

20 shall be treated for purposes of all Federal

21 laws relating to risk assessment and peer re22 view (including laws approved after the date

23 of the enactment of the Pipeline Safety Act of

24 1995) as meeting any peer review require25 ments of such laws.’’.
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1 (b) COMPOSITION AND APPOINTMENT.—Sec2 tion 60115(b) is amended—

3 (1) in paragraph (1) by inserting ‘‘or

4 risk management’’ before the period at

5 the end of the last sentence;

6 (2) in paragraph (2) by inserting ‘‘or

7 risk management’’ before the period at

8 the end of the last sentence;

9 (3) in paragraph (3)(B) by striking ‘‘4’’

10 and inserting ‘‘5’’;

11 (4) in paragraph (3)(C) by striking ‘‘6’’

12 and inserting ‘‘5’’;

13 (5) in paragraph (4)(B) by adding at

14 the end the following: ‘‘At least 1 of the

15 individuals selected for each committee

16 under paragraph (3)(B) must have edu17 cation, background, or experience in risk

18 assessment and cost-benefit analysis. The

19 Secretary shall consult with the national

20 organizations representing the owners

21 and operators of pipeline facilities before

22 selecting individuals under paragraph

23 (3)(B).’’; and

24 (6) in paragraph (4)(C) by inserting

25 after the first sentence the following: ‘‘At
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1 least 1 of the individuals selected for

2 each committee under paragraph (3)(C)

3 must have education, background, or ex4 perience in risk assessment and cost-ben5 efit analysis.’’.

6 (c) COMMITTEE REPORTS.—Section 60115(c)

7 is amended—

8 (1) by inserting ‘‘or regulatory re9 quirement’’ after ‘‘standard’’ each place it

10 appears in paragraphs (1), (2), and (3);

11 (2) in paragraph (1)(A) by inserting

12 after ‘‘gas pipeline facilities’’ the follow13 ing: ‘‘, including the risk assessment doc14 ument, cost-benefit, and other analyses

15 supporting each proposed standard or

16 regulatory requirement’’;

17 (3) in paragraph (1)(B) by inserting

18 after ‘‘hazardous liquid pipeline facili19 ties’’ the following: ‘‘, including the risk

20 assessment document, cost-benefit, and

21 other analyses supporting each proposed

22 standard or regulatory requirement’’; and

23 (4) in paragraph (2)—
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1 (A) by inserting ‘‘and supporting

2 analyses’’ before the first comma in

3 the first sentence;

4 (B) by inserting ‘‘and submit to

5 the Secretary’’ after ‘‘prepare’’ in the

6 first sentence;

7 (C) by inserting ‘‘cost effective8 ness,’’ after ‘‘reasonableness,’’ in the

9 first sentence;

10 (D) by inserting ‘‘together with

11 recommended actions’’ before the pe12 riod at the end of the first sentence;

13 and

14 (E) by inserting ‘‘any rec15 ommended actions and’’ after ‘‘includ16 ing’’ in the second sentence.

17 (d) PROPOSED COMMITTEE STANDARDS AND

18 REGULATORY REQUIREMENTS.—Section

19 60115(d)(1) is amended by inserting ‘‘or regu20 latory requirement’’ after ‘‘standard’’ each

21 place it appears;

22 (e) MEETINGS.—Section 60115(e) is amend23 ed by striking ‘‘twice’’ and inserting ‘‘4 times’’.

24 (f) EXPENSES.—Section 60115(f) is amend25 ed—
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1 (1) in the subsection heading by strik2 ing ‘‘PAY AND’’;

3 (2) by striking the first two sentences;

4 and

5 (3) by inserting ‘‘of a committee

6 under this section’’ after ‘‘A member’’.

7 SEC. 13. PUBLIC EDUCATION PROGRAMS.

8 Section 60116 is amended—

9 (1) by striking ‘‘person transporting

10 gas’’ and inserting ‘‘owner or operator of

11 a gas pipeline facility’’;

12 (2) by inserting ‘‘the use of damage

13 prevention (‘one-call’) systems prior to

14 excavation,’’ after ‘‘educate the public

15 on’’; and

16 (3) by inserting a comma after ‘‘gas

17 leaks’’.

18 SEC. 14. ADMINISTRATIVE.

19 Section 60117 is amended by adding at the

20 end the following:

21 ‘‘(k) AUTHORITY FOR COOPERATIVE AGREE22 MENTS.—To carry out this chapter, the Sec23 retary may enter into grants, cooperative

24 agreements, and other transactions with any

25 person, agency, or instrumentality of the
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1 United States, any unit of State or local gov2 ernment, any educational institution, and any

3 other entity to further the objectives of this

4 chapter. Such objectives include, but are not

5 limited to, the development, improvement,

6 and promotion of one-call damage prevention

7 programs, research, risk assessment, and

8 mapping.’’.

9 SEC. 15. COMPLIANCE AND WAIVERS.

10 Section 60118 is amended by adding at the

11 end the following:

12 ‘‘(e) COMPLIANCE WITH RISK MANAGEMENT

13 PLANS.—Owners and operators that are par14 ticipating in the demonstration project under

15 section 60127 shall be considered to be in

16 compliance with any prescribed safety stand17 ard or regulatory requirement that is covered

18 by an approved plan under section 60127.’’.

19 SEC. 16. DAMAGE REPORTING.

20 Section 60123(d)(2) is amended—

21 (1) by striking ‘‘or’’ at the end of sub22 paragraph (A);

23 (2) by redesignating subparagraph

24 (B) as subparagraph (C); and
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1 (3) by inserting after subparagraph

2 (A) the following:

3 ‘‘(B) a pipeline facility and does

4 not report the damage promptly to

5 the operator of the pipeline facility

6 and other appropriate authorities;

7 or’’.

8 SEC. 17. ANNUAL REPORTS.

9 Section 60124 and the item relating to

10 such section in the analysis for chapter 601

11 are repealed.

12 SEC. 18. POPULATION ENCROACHMENT.

13 (a) IN GENERAL.—Chapter 601 is amended

14 by inserting after section 60123 the following

15 new section:

16 ‘‘§ 60124. Population encroachment

17 ‘‘(a) LAND USE RECOMMENDATIONS.—The

18 Secretary of Transportation shall make avail19 able to an appropriate official of each State,

20 as determined by the Secretary, the land use

21 recommendations of the Transportation Re22 search Board’s Special Report 219, entitled

23 ‘Pipelines and Public Safety’.

24 ‘‘(b) EVALUATION.—The Secretary shall

25 evaluate the recommendations in the report
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1 referred to in subsection (a), determine to

2 what extent the recommendations are being

3 implemented, consider ways to improve im4 plementation of the recommendations, and

5 consider other initiatives to further improve

6 awareness of local planning and zoning enti7 ties regarding issues involved with popu8 lation encroachment in proximity to the

9 rights-of-ways of any interstate gas pipeline

10 facility or interstate hazardous liquid pipe11 line facility.’’.

12 (b) CONFORMING AMENDMENT.—The analy13 sis for chapter 601 is amended by inserting

14 after the item relating to section 60123 the fol15 lowing:

‘‘60124. Population encroachment.’’.

16 SEC. 19. USER FEES.

17 Within 6 months after the date of the en18 actment of this Act, the Secretary of Trans19 portation shall transmit to the Congress a re20 port analyzing whether the assessment of

21 pipeline safety user fees solely on the basis of

22 mileage is the most appropriate measure of

23 the resources used by the Department of

24 Transportation in the regulation of pipeline
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1 transportation, or whether another basis of

2 assessment might be more appropriate.

3 SEC. 20. DUMPING WITHIN PIPELINE RIGHTS-OF-WAY.

4 (a) AMENDMENT.—Chapter 601 is amended

5 by adding at the end the following new sec6 tion:

7 ‘‘§ 60128. Dumping within pipeline rights-of-way

8 ‘‘(a) PROHIBITION.—No person shall exca9 vate for the purpose of unauthorized disposal

10 within the right-of-way of an interstate gas

11 pipeline facility or interstate hazardous liq12 uid pipeline facility, or any other limited area

13 in the vicinity of any such interstate pipeline

14 facility established by the Secretary of Trans15 portation, and dispose solid waste therein.

16 ‘‘(b) DEFINITION.—For purposes of this sec17 tion, the term ‘solid waste’ has the meaning

18 given such term in section 1004(27) of the

19 Solid Waste Disposal Act (42 U.S.C. 6903(27)).’’.

20 (b) CONFORMING AMENDMENTS.—(1) Sec21 tions 60122 and 60123 are amended by strik22 ing ‘‘or 60118(a)’’ and inserting in lieu thereof

23 ‘‘, 60118(a), or 60128’’.
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1 (2) The table of sections of chapter 601 is

2 amended by adding at the end the following

3 new item:

‘‘60128. Dumping within pipeline rights-of-way.’’.

4 SEC. 21. PREVENTION OF DAMAGE TO PIPELINE FACILI5 TIES.

6 Section 60117(a) is amended by inserting

7 after ‘‘and training activities’’ the following:

8 ‘‘and promotional activities relating to pre9 vention of damage to pipeline facilities’’.

10 SEC. 22. TECHNICAL CORRECTIONS.

11 (a) SECTION 60105.—The heading to sec12 tion 60105 is amended by inserting ‘‘pipeline

13 safety program’’ after ‘‘State’’.

14 (b) SECTION 60106.—The heading to sec15 tion 60106 is amended by inserting ‘‘pipeline

16 safety’’ after ‘‘State’’.

17 (c) SECTION 60107.—The heading to section

18 60107 is amended by inserting ‘‘pipeline safe19 ty’’ after ‘‘State’’.

20 (d) CHAPTER ANALYSIS.—The analysis for

21 chapter 601 is amended—

22 (1) in the item relating to section

23 60105 by inserting ‘‘pipeline safety pro24 gram’’ after ‘‘State’’;
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1 (2) in the item relating to section

2 60106 by inserting ‘‘pipeline safety’’ after

3 ‘‘State’’; and

4 (3) in the item relating to section

5 60107 by inserting ‘‘pipeline safety’’ after

6 ‘‘State’’.

7 SEC. 23. AUTHORIZATIONS OF APPROPRIATION.

8 (a) GAS AND HAZARDOUS LIQUID.—Section

9 60125(a) is amended to read as follows:

10 ‘‘(a) GAS AND HAZARDOUS LIQUID.—Not

11 more than the following amounts may be ap12 propriated to the Secretary of Transportation

13 for carrying out this chapter (except sections

14 60107 and 60114(b)) related to gas and hazard15 ous liquid:

16 ‘‘(1) $9,936,000 for fiscal year 1996.

17 ‘‘(2) $10,512,000 for fiscal year 1997.

18 ‘‘(3) $11,088,000 for fiscal year 1998.

19 ‘‘(4) $11,664,000 for fiscal year 1999.’’.

20 (b) REPEAL.—Section 60125(b) is repealed.

21 (c) STATE GRANTS.—Section 60125(c)(1) is

22 amended by adding at the end the following:
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1 ‘‘(D) $10,764,000 for fiscal year 1996.

2 ‘‘(E) $11,388,000 for fiscal year 1997.

3 ‘‘(F) $12,012,000 for fiscal year 1998.

4 ‘‘(G) $12,636,000 for fiscal year 1999.’’.

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Union Calendar No. 58

104TH CONGRESS

1ST SESSION H. R. 1323

[Report No. 104–110, Parts I and II]

A BILL

To reduce risk to public safety and the environment

poses.gas and hazardous liquids, and for other purassociated with pipeline transportation of natural

JUNE 1, 1995

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and