U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

59–010 

" ! SENATE 

114TH CONGRESS

2d Session 

REPORT 

2016

114–209 

Calendar No. 370 

SECURING AMERICA’S FUTURE ENERGY: 

PROTECTING OUR INFRASTRUCTURE OF 

PIPELINES AND ENHANCING SAFETY ACT 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 2276 

FEBRUARY 24, 2016.—Ordered to be printed 


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(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED FOURTEENTH CONGRESS

SECOND SESSION

JOHN THUNE, South Dakota, Chairman 

ROGER F. WICKER, Mississippi BILL NELSON, Florida 

ROY BLUNT, Missouri MARIA CANTWELL, Washington 

MARCO RUBIO, Florida CLAIRE MCCASKILL, Missouri 

KELLY AYOTTE, New Hampshire AMY KLOBUCHAR , Minnesota 

TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut 

DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii 

JERRY MORAN, Kansas ED MARKEY, Massachusetts 

DAN SULLIVAN, Alaska CORY BOOKER, New Jersey 

RON JOHNSON, Wisconsin TOM UDALL, New Mexico 

DEAN HELLER, Nevada JOE MANCHIN, West Virginia 

CORY GARDNER, Colorado GARY PETERS, Michigan 

STEVE DAINES, Montana 

NICK ROSSI, Staff Director 

ADRIAN ARNAKIS, Deputy Staff Director 

REBECCA SEIDEL, General Counsel 

KIM LIPSKY, Democratic Staff Director 

CHRISTOPHER DAY, Democratic Deputy Staff Director 

CLINT ODOM, Democratic General Counsel 


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1The Division of Hazardous Materials Safety of PHMSA was reauthorized in the Fixing America’s Surface Transportation Act, (P.L. 114–94). 2P.L. 112–90. 

Calendar No. 370 

114TH CONGRESS REPORT " ! SENATE 2d Session 114–209 

SECURING AMERICA’S FUTURE ENERGY: PROTECTING 

OUR INFRASTRUCTURE OF PIPELINES AND ENHANCING 

SAFETY ACT 

FEBRUARY 24, 2016.—Ordered to be printed 

Mr. THUNE, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 2276] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 2276) to amend title 49, United 

States Code, to provide enhanced safety in pipeline transportation, 

and for other purposes, having considered the same, reports favorably thereon with an amendment (in the nature of a substitute) 

and recommends that the bill (as amended) do pass. 

PURPOSE OF THE BILL

The purpose of S. 2276, is to reauthorize pipeline safety programs at the Pipeline and Hazardous Materials Safety Administration (PHMSA) of the Department of Transportation (DOT). 

BACKGROUND AND NEEDS

Pipeline safety reauthorizations authorize appropriations for the 

Office of Pipeline Safety (OPS), one of the two operating elements 

of PHMSA.1 The previous pipeline safety authorization, the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011,2

(2011 Act) expired on September 30, 2015, but absent authorization, the agency retains operating authority. 

The OPS has exclusive jurisdiction to regulate key aspects of 

interstate pipeline safety, including pipeline design, construction, 


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3PHMSA does not have jurisdiction over pipeline siting. Siting of gas transmission pipelines 

is under the jurisdiction of the Federal Energy Regulatory Commission (FERC). Jurisdiction 

over the siting of oil pipelines rests with the States. 4www.NaturalGas.org. 

5Statistics on gas distribution and liquid pipelines courtesy of PHMSA. 

6 NaturalGas.org. 

7 Energy Information Administration. 

8PHMSA. National Pipeline Mapping Service https://www.npms.phmsa.dot.gov/PublicViewer. 

operation and maintenance, and emergency response planning.3

The OPS is fully funded by a user fee assessed on a per-mile basis 

and oversees the pipeline inspection process, which is largely conducted by State officials via delegated authorities. The office is authorized to have 311 positions, and 103 remain unfilled as of September 1, 2015. PHMSA has suggested that filling inspector positions that require technical backgrounds is difficult due to competition with industry for qualified staff. 

The Nation’s energy pipelines consist of three primary types: (1) 

approximately 300,000 miles of gas transmission pipelines, including 180,000 miles of interstate pipelines, which transport natural 

gas from producing regions to consuming regions 4; (2) over 2.1 million miles of gas distribution pipelines, which distribute gas to 

homes and businesses from a connection with a gas transmission 

pipeline; and (3) approximately 199,000 miles of liquid pipelines, 

which transport crude oil, refined petroleum products, propane, anhydrous ammonia, biofuels, carbon dioxide, and other hazardous 

liquid chemical products.5

The natural gas industry consists of more than 6,300 producers 

of natural gas, 160 pipeline companies, and 1,200 natural gas distribution companies.6 Natural gas transmission pipelines are generally only in the business of transportation, and are not associated 

with producers or distributors. The map below shows gas transmission pipelines, but does not show the extensive network of distribution pipelines that carry natural gas products to homes and 

businesses.7 Additional information on the location of both liquid 

and gas pipelines is available through the PHMSA National Pipeline Mapping Service.8


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9 Association of Oil Pipelines. http://www.aopl.org/pipeline-basics/about-pipelines/ (Accessed 

September 14, 2015). 10 National Transportation Safety Board. (2015). Safety Study: Integrity Management of Gas 

Transmission Pipelines in High Consequence Areas. Report PB2015–102735. Retrieved from 

http://www.ntsb.gov/safety/safety-studies/Documents/SS1501.pdf. (Accessed on September 9, 

2015). 

Oil pipeline companies also are generally separate from oil production companies, with the pipeline company only providing transportation services. Crude oil transmission pipeline deliveries are up 

1.35 billion barrels over the last 5 years, an increase of almost 20 

percent from 2009 to 2013. Hazardous liquid pipelines deliver approximately two-thirds of the oil transported in the United States.9

Pipeline Inspection 

PHMSA requires that pipelines be periodically inspected in order 

to identify any possible defects, such as corrosion, cracks, or manufacturing defects that would adversely affect their integrity. The 

pipeline operator chooses the inspection technique that it believes 

to be the most appropriate for a particular pipeline segment.10 The 

selected method may be based upon known or perceived threats or 

the specific characteristics of a pipeline. 

SUMMARY OF PROVISIONS

If enacted, S. 2276 would do the following: 

∑ Require PHMSA to conduct a workforce analysis, and provide 

limited direct hire authority to PHMSA for the term of the authorization fiscal year (FY) 2016 to 2019. 

∑ Require PHMSA to develop safety regulations for underground 

natural gas storage facilities. 

∑ Require the Comprtoller General to conduct reviews of the Gas 

and Liquid Integrity Management programs. 


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11Pipeline Safety: State and Local Perspectives held on September 18, 2015, accessed at: 

http://www.commerce.senate.gov/public/index.cfm/hearings?ID=D7D78250-62BD-4AA9-9FD7- 

09303D6179D0; Pipeline Safety: Oversight of Our Nation’s Pipeline Network held on September 

29, 2015, accessed at : http://www.commerce.senate.gov/public/index.cfm/hearings?ID=B120A00A-D4A8-44F9-8300-6A23C6305F76. 

LEGISLATIVE HISTORY

The Committee held two hearings on reauthorization of pipeline 

safety programs on September 18, 2015, and September 29, 2015.11

The Committee also held a July 22, 2015, nomination hearing for 

PHMSA Administrator Marie Therese Dominguez, who was confirmed by the Senate on August 5, 2015. 

S. 2276 was introduced by Senators Fischer, Booker, Daines, and 

Peters on November 10, 2015. On December 9, 2015, the Committee met in open Executive Session to consider the bill. A substitute amendment was offered by Senator Fischer and adopted by 

voice vote. Further amendments were offered by Senators Ayotte 

and Markey and accepted by unanimous consent. The Committee, 

by a voice vote, ordered S. 2276, as amended, reported favorably. 

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office: 

S. 2276—SAFE PIPES Act 

Summary: The Pipeline and Hazardous Materials Safety Administration (PHMSA) oversees the safety of pipelines that transport 

natural gas or hazardous liquids and provides grants to states for 

programs to ensure pipeline safety. S. 2276 would require PHMSA 

to pursue a variety of regulatory and administrative activities related to such programs and would authorize appropriations for 

those purposes. The bill also would authorize PHMSA to establish 

safety standards for certain underground natural gas storage facilities, assess fees on entities that operate such facilities, and spend 

such fees—subject to authority provided in advance in appropriation acts—to ensure that such facilities meet those standards. 

CBO estimates that implementing S. 2276 would require gross 

appropriations totaling $525 million over the 2017–2021 period. 

CBO also estimates that those appropriations would be offset by 

$462 million in fees paid by pipeline owners, which are considered 

offsets to discretionary spending. Assuming appropriation of 

amounts specified and estimated to be necessary, CBO estimates 

that the resulting net outlays would total $50 million over the 

2017–2021 period. 

In addition, CBO estimates that enacting S. 2276 would increase 

revenues from assessments on entities that operate certain underground natural gas storage facilities by $17 million over the 2017– 

2026 period. Pay-as-you-go procedures apply because enacting the 

legislation would affect revenues. Enacting S. 2276 would not affect 

direct spending. 

CBO estimates that enacting the legislation would not increase 

net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. 


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S. 2276 would impose intergovernmental and private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

by establishing new safety standards on storage facilities for natural gas and imposing new fees. Based on information from 

PHMSA and industry sources, CBO estimates the aggregate cost of 

the mandates would fall below the annual thresholds established 

in UMRA for intergovernmental and private-sector mandates ($77 

million and $154 million in 2016, respectively, adjusted annually 

for inflation). 

Estimated cost to the Federal government: The estimated budgetary effect of S. 2276 is shown in the following table. The costs 

of this legislation fall within budget function 400 (transportation). 

By fiscal year, in millions of dollars— 

2017 2018 2019 2020 2021 2017– 

2021 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Spending for Pipeline Safety and Related Activities: 

Estimated Authorization Level ............................................. 168 174 177 3 3 525 

Estimated Outlays ............................................................... 82 147 168 90 25 512 

Offsetting Collections from User Fees: 

Estimated Authorization Level ............................................. ¥151 ¥154 ¥157 0 0 ¥462 

Estimated Outlays ............................................................... ¥151 ¥154 ¥157 0 0 ¥462 

Estimated Net Changes: 

Estimated Authorization Level ............................................. 17 20 20 3 3 63 

Estimated Outlays ............................................................... ¥69 ¥7 11 90 25 50 

CHANGES IN REVENUES 1

Assessments for Underground Natural Gas Storage Facilities ... 0 0 2 2 2 7 

1 CBO estimates that enacting S. 2276 would increase revenues by $17 million over the 2019–2026 period. 

Note: Components may not sum to totals because of rounding. 

Basis of estimate: For this estimate, CBO assumes that S. 2276 

will be enacted near the start of fiscal year 2017 and the amounts 

authorized and estimated to be necessary over the 2017–2021 period will be appropriated each year. Estimates of outlays are based 

on historical spending patterns for pipeline safety programs. 

Spending subject to appropriation 

S. 2276 would reauthorize the laws that govern PHMSA’s role in 

pipeline safety. The bill would specify new administrative requirements and authorize the agency to establish and enforce safety 

standards for certain underground natural gas storage facilities. 

The bill also would require the Government Accountability Office 

(GAO) and other agencies to conduct a variety of studies and reports related to pipeline safety and related activities. 

CBO estimates that implementing the bill would require appropriations totaling $168 million in 2017 and $525 million over the 

2017–2021 period. (By comparison, CBO estimates that funding related to PHMSA’s pipeline safety programs in 2016 totals $147 million.) The amounts authorized by the bill include: 

• $513 million specifically authorized for PHMSA’s pipeline 

safety programs; 

• $9 million in estimated authorizations stemming from 

PHMSA’s authority to spend, subject to authority provided in 

advance in appropriation acts, proposed assessments on entities that operate certain underground natural gas storage facilities; and 


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• $3 million for GAO and other agencies to carry out various 

reporting and administrative requirements. 

Assuming appropriation of the authorized and estimated 

amounts, CBO estimates that resulting discretionary outlays would 

total $512 million over the 2017–2021 period, and $13 million in 

later years. CBO also estimates that those outlays would be offset 

by $462 million in fees paid by entities that operate pipelines and 

related facilities regulated by PHMSA. Under current law, such annual fees are based on appropriations provided for pipeline safety 

and related activities and are recorded as discretionary offsetting 

collections. 

Revenues 

S. 2276 would authorize PHMSA to regulate the safety of certain 

underground natural gas storage facilities. To cover the cost of regulating such facilities, the bill would direct the Secretary of Transportation to impose fees on entities that operate such facilities. In 

CBO’s view, such regulatory fees should be recorded as revenues 

because of their compulsory nature. Under the bill, PHMSA’s authority to spend those fees would be subject to appropriation. 

Based on information from PHMSA and the natural gas industry 

about the anticipated costs to establish and implement the proposed safety standards, CBO estimates gross revenues from such 

fees would total about $3 million annually starting in 2019 (the 

year when CBO expects PHMSA would issue regulations as required by the bill) and $24 million through 2026. Because excise 

taxes and other indirect business taxes (such as the proposed assessment under S. 2276) reduce the base of income and payroll 

taxes, higher amounts of those indirect business taxes would lead 

to reductions in revenues from income and payroll taxes. As a result, gross assessments would be partially offset by a loss of receipts of about 25 percent each year. Thus, CBO estimates that enacting S. 2276 would increase net revenues by $17 million over the 

2019–2026 period. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in revenues that are subject to those pay-as-you-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 2276, AS ORDERED REPORTED BY THE 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON DECEMBER 9, 2015 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016– 

2021 

2016– 

2026 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-As-YouGo Impact ............. 0 0 0 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥7 ¥17 

Note: Components may not sum to totals because of rounding. 

Increase in long term direct spending and deficits: CBO estimates that enacting the legislation would not increase net direct 

spending or on-budget deficits in any of the four consecutive 10- 

year periods beginning in 2027. 


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Intergovernmental and private-sector impact: S. 2276 would impose intergovernmental and private-sector mandates as defined in 

UMRA by establishing new safety standards for storage facilities 

for natural gas and by imposing new fees. Because the majority of 

pipelines and facilities that would be affected are owned by private 

entities, CBO estimates that the aggregate cost of the mandates on 

public entities would fall below the annual threshold established in 

UMRA for intergovernmental mandates ($77 million in 2016, adjusted annually for inflation). Based on information from PHMSA 

and industry sources, CBO estimates the aggregate cost of the 

mandates on private entities also would fall below the annual 

threshold established in UMRA for private-sector mandates ($154 

million in 2016, adjusted annually for inflation). 

Mandates that apply to both public and private entities 

The bill would impose a mandate on operators of underground 

natural gas storage facilities by directing the Secretary of Transportation to establish safety standards for those facilities. According to the Department of Energy, there are about 400 underground 

natural gas storage facilities in the United States, and the vast majority of the facilities are operated by private entities. The industry 

recently issued voluntary standards for ensuring the safety and integrity of natural gas storage facilities. CBO estimates that the incremental cost of the mandate would be minimal for facilities that 

are currently working to comply with those industry standards. 

Moreover, based on information from industry sources, CBO estimates that the aggregate cost of the mandate on all private facilities could total tens of millions of dollars annually. 

The bill also would impose a mandate on operators of underground natural gas storage facilities by requiring those operators 

to pay fees to the Secretary of Transportation. The fees would be 

used to offset the cost of establishing and implementing the safety 

standards for those facilities. CBO estimates that those fees would 

total $3 million annually beginning in 2019. 

Mandate that applies to private entities only 

The bill would impose a mandate on operators of oil pipelines by 

requiring those operators, when preparing an oil spill response 

plan, to take into consideration discharges of oil into navigable 

water or on adjoining shorelines that may be covered in whole or 

in part by ice. Operators of oil pipelines must prepare response 

plans pursuant to current law. The cost of the mandate would depend on whether operators need to amend current plans to address 

discharges onto ice. Based on information from PHMSA and industry sources, CBO estimates that the cost of the mandate would not 

be substantial. 

Estimate prepared by: Federal costs and revenues: Megan Carroll; Impact on State, local, and tribal governments: Jon Sperl; Impact on the private sector: Amy Petz. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 


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REGULATORY IMPACT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

NUMBER OF PERSONS COVERED

S. 2276, as reported, would require the establishment of minimum safety standards for underground natural gas storage facilities, a new regulatory requirement. It is expected that the underground storage facilities regulated by the new standard would, in 

most cases, be owned and managed by parties currently subject to 

PHMSA regulation. 

ECONOMIC IMPACT

Enactment of this legislation is not expected to have any inflationary or adverse impact on the Nation’s economy. 

PRIVACY

The bill would not impact the personal privacy of individuals. 

PAPERWORK

S. 2276 would require reports from the Federal Government. The 

PHMSA Administrator would be required to provide regular updates on the status of outstanding rulemakings. The PHMSA Administrator would be further required to provide a report on staff 

management practices, including any critical hiring needs. The 

PHMSA Administrator also would be required to submit a report 

on natural gas loss reporting standards. 

In addition, the Comptroller General would be required to 

produce reports on the status of the hazardous liquid and gas integrity management programs, State policies that encourage the repair or replacement of leaking pipes, and provide a review of the 

feasibility of odorizing all gas in transportation. 

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the Standing 

Rules of the Senate, the Committee provides that no provisions 

contained in the bill, as reported, meet the definition of congressionally directed spending items under the rule. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title; references 

This section would designate the short title of this bill as the, 

‘‘Securing America’s Future Energy: Protecting our Infrastructure 

of Pipelines and Enhancing Safety Act of 2015’’ or the ‘‘SAFE 

PIPES Act.’’ 

Section 2. Authorization of appropriations 

This section would authorize appropriations for FY 2016 through 

FY 2019 at levels consistent with current appropriations, with approximately $147 million in FY 2016, and $156 million in FY 2019. 


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The Committee is concerned that PHMSA has not yet updated 

emergency response programs with the goal of delivering effective 

emergency response training to the first responders who must answer the calls when pipeline emergencies occur. The Committee 

notes that, during the term of the previous authorization, appropriations report language was included to direct funding of updates 

for these training programs. In each fiscal year, concern was expressed that PHMSA was not taking a pro-active role. The Committee notes that, with the Nation’s aging pipeline infrastructure, 

and its exposure to future emergency incidents, the situation must 

be aggressively addressed by the PHMSA Administrator. 

The Committee believes the the Secretary of Transportation 

should consider upgrading the current pipeline emergencies curriculum as part of its Emergency Response Grants in order to take 

a more active role in the upgrade and enhancement of emergency 

training. 

Section 3. Regulatory updates 

This section would require the PHMSA Administrator to submit 

a periodic report to Congress on the status of final rules for long 

overdue regulatory requirements. 

The Committee notes that the 2011 Act prescribed a significant 

number of regulations, and the regulations required by that law 

should be completed as quickly as possible. 

Section 4. Hazardous materials identification numbers 

This section would rescind a June 26, 2015, PHMSA interpretative letter clarifying placarding requirements for flammable hazardous materials carriers. Currently, placards are required to be 

mounted on cargo tanks and vehicles carrying hazardous materials. 

The lowest flash point of the flammable materials must be included 

on the placard, even if the carrier is shipping multiple flammable 

materials at one time. Until June 2015, as long as carriers did not 

transport a fuel with a lower flash point than the placard, they 

would not have to change the placard or purchase adjustable placards. On June 26, 2015, PHMSA issued an interpretative letter requiring placards to be changed to represent the lowest flash point 

of the particular type of fuel transported during each shipment. 

Section 5. Statutory preference 

This section would require the PHMSA Administrator to 

prioritize PHMSA resources dedicated to pipeline safety to complete any outstanding pipeline safety statutory requirements for a 

rulemaking before undertaking any new pipeline safety 

rulemakings required in this Act, unless the Secretary of Transportation otherwise certifies a need to move forward with a new rulemaking. 

Section 6. Natural gas integrity management review 

This section would require the Comptroller General to report to 

Congress on the natural gas integrity management program within 

one year of the date of publication of the final rule on natural gas 

transmission. 


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Section 7. Hazardous liquids integrity management review 

This section would require the Comptroller General, within one 

year of the date of publication of a final rule on hazardous liquid 

pipelines, to report to Congress on the hazardous liquid integrity 

management program. 

Section 8. Technical safety standards committees 

This section would provide greater flexibility for the Secretary of 

Transportation to appoint State pipeline safety officials to advisory 

committees. 

Section 9. Inspection report information 

This section would require the PHMSA Administrator to conduct 

a post-inspection briefing with the operator or issue the final inspection report to the operator within 30 days of a pipeline facility 

inspection. 

PHMSA’s internal inspection practices are composed of five distinct parts, which typically occur over three to eight months. The 

five parts are: entrance interview; procedure interview; records review; field/facility review; and exit interview. This section would 

codify that the PHMSA Administration conduct exit interviews 

within 30 days of completion of a pipeline safety inspection. 

Current PHMSA internal performance goals set timeframes for 

completion of inspection paperwork and reports. The goal is to complete a preliminary inspection report within 30 days after completion of an inspection, and a final report within 60 days of completion of an inspection. 

The Committee expects that the report to Congress directed by 

this section would include statistics relating to the timeliness of actions, including data on formal letters relating to an inspection between PHMSA and pipeline operators. 

Section 10. Pipeline odorization study 

This section would require the Comptroller General to report on 

the feasibility of odorizing all combustible gas in transportation. 

The report would include an assessment of the impact of 

odorization on manufacturers, agricultural producers, and other 

end users. The Comprtoller General would also be required to report on the benefits and costs of odorization of all combustible gas 

in transportation in comparison with other methods to address 

pipeline leaks. 

The Committee expects that, to the extent practicable, the Comptroller General will assess the health and safety benefits of 

odorization of pipelines that are not currently required to be odorized. 

Section 11. Improving damage prevention technology 

This section would require the Secretary of Transportation to 

conduct a study on technological improvements in location and 

communications practices to prevent accidental excavation damage 

to a pipeline. 


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Section 12. Workforce of Pipeline and Hazardous Materials Safety 

Administration 

This section would require the PHMSA Administrator to review 

PHMSA’s current staffing, including hiring challenges, geographic 

allocation plans, and expected retirement rates and strategies, and 

then provide recommendations on how to address any hiring or 

other staff resource challenges. 

This section would also provide the PHMSA Administrator with 

direct hire authority, until September 30, 2019, where a severe 

shortage of candidates or a critical hiring need exists for a position 

or group of positions at the agency. 

Section 13. Research and development 

This section would encourage additional collaboration between 

the PHMSA Administrator and stakeholders in setting research 

priorities, leveraging limited Federal research dollars to conduct 

more relevant and timely research. 

The Committee notes that the PHMSA Administrator has traditionally worked with operators, the vendor community, and research organization to form public-private partnerships to develop 

new technologies to improve pipeline safety. These collaborative 

programs with funding from both the private sector and DOT/ 

PHMSA should be renewed and focused on developing new technologies to improve safety and reduce emissions. 

The Committee expects that the PHMSA Administrator will implement and maintain proper protocols to prevent any undue influence on the agency’s research activities. Nothing in this section 

would prevent the agency from conducting its own research that is 

not co-funded or coordinated with stakeholders. 

Section 14. Information sharing system 

This section would require the Secretary of Transportation to 

convene a working group to consider developing a no-fault information sharing system to facilitate collaborative efforts to improve 

pipeline inspection information sharing. The working group would 

be required to consider and provide recommendations to the Secretary on: (1) ways to encourage the exchange of pipeline inspection 

information; (2) opportunities to share dig verification data; (3) options to create a secure system which safeguards proprietary data; 

and (4) regulatory and legal barriers to sharing information. 

To ensure continued safe operation of both crude and natural gas 

pipelines, it is essential that these assets be the subject of inspection on a regular basis. These inspections should take full advantage of advances in technology. While both visual and hydrostatic 

inspection of lines have a role in an integrity management program, so too does ‘‘in-line’’ inspection. While executing a PHMSA 

approved integrity management program, each pipeline operator is 

ultimately responsible for the safety of its line. Beyond encouraging 

the use of the best available and most advanced technology to keep 

pipelines safe, the Committee gives no preference to a particular 

type of inspection and believes that visual, hydrostatic, and ILI inspection should have equal weight in the regulations and corrective 

action orders and that the pipeline operator is in the best position 

to determine the efficacy of each type of inspection for any given 

situation. 


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Section 15. Nationwide integrated pipeline database 

This section would require the Secretary of Transportation to 

submit a report on the feasibility of a national integrated pipeline 

database in order to improve communication and collaboration between the PHMSA Administrator and State pipeline regulators. 

The report would include efforts currently underway to test secure 

information sharing systems, any progress in establishing common 

standards for collecting and presenting pipeline data, any existing 

gaps in State and Federal pipeline data, the potential safety benefits of an integrated pipeline database, and recommendations for 

implementing a secure information-sharing system. 

Section 16. Underground natural gas storage facilities 

This section would require the PHMSA Administrator to develop 

minimum uniform safety standards for underground natural gas 

storage facilities including wellbores, geologic reservoirs, and 

aquifers. 

In 2010, the United States Court of Appeals for the 10th Circuit 

ruled in Colorado Interstate Gas Co. v. Thomas E. Wright, et al. 

that statutes previously developed by the Kansas State Legislature 

governing natural gas storage violated Federal jurisdiction; it is the 

sense of the Committee that the Secretary of Transportation should 

consider authorizing a State authority to take necessary action to 

provide or participate in the oversight of interstate underground 

natural gas storage facilities in the same manner as provided in 

section 60106 of title 49, United States Code. 

This section also would establish a fee to fund the oversight of 

underground natural gas storage facilities that shall be imposed on 

an entity operating an underground natural gas storage facility. 

Any such fee imposed shall be collected before the end of the fiscal 

year to which it applies. 

It is the intent of the Committee that nothing in this section 

shall be construed to prevent States from adopting additional or 

more stringent safety standards, as long as they are not in conflict 

with the Federal standards for intrastate facilities. 

Section 17. Joint inspection and oversight 

This section would provide certified State authorities with the 

opportunity to accompany Federal inspection teams for inspections. 

Section 18. Response plans 

This section would require the PHMSA Administrator and an operator, in preparing or reviewing a response plan for onshore oil 

pipelines, to consider and include all procedures necessary to respond to a worst case discharge of oil into or on any waters that 

may be covered by ice. 

Section 19. High consequence areas 

This section would explicitly state that the Great Lakes should 

be considered a high consequence area. 

Section 20. Surface transportation security review 

This section would require the Comptroller General to submit a 

report reviewing the Transportation Security Administration’s surface transportation programs, including pipelines. In preparing the 


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report the Comptroller General would be required to look at the 

staffing, resource allocation, oversight strategy, and overall management of these programs. 

Section 21. Small scale liquefied natural gas facilities 

This section would require the PHMSA Administrator to develop 

minimum safety standards for deciding the location of a new permanent Liquefied Natural Gas facility. This section is intended to 

apply to small scale facilities, as defined. 

Section 22. Report on natural gas leak reporting 

This section would direct the PHMSA Administrator to study the 

reporting of lost and unaccounted for natural gas from distribution 

pipelines, make recommendations as appropriate, and, where appropriate and cost effective, implement recommendations that 

would significantly improve safety. 

Section 23. Comptroller General review of State policies relating to 

natural gas leaks 

This section would direct the Comptroller General to review 

State policies that encourage or may create barriers for repairing 

and replacing leaking natural gas distribution pipelines, make recommendations to the PHMSA Administrator and Congress, and require the PHMSA Administrator to consider rulemaking, where 

cost effective, on any recommendations that would significantly improve pipeline safety. 

Section 24. Provision of pipeline oil spill response plans to congressional committees 

This section would codify and expand the practice of sharing oil 

spill response plans with each chairman and ranking member of a 

relevant congressional committee. Under current practice, the 

PHMSA Administrator may provide the chairman of a relevant 

congressional committee the opportunity to review an unredacted 

copy of an oil spill response plan. This section would expand the 

courtesy to the ranking member of a relevant congressional committee. The Committee expects that confidentiality requirements 

relating to the protection of sensitive security information would be 

applied in the same manner as under current practice, consistent 

with the protection of Security Sensitive Information. Nothing in 

this section is intended to limit the access of other committees of 

Congress to such information, and the Committee expects that individuals receiving the unredacted copies of the reports will protect 

the data identified in section 60138 of title 49, United States Code, 

from public disclosure. 

Section 25. Consultation with FERC as part of the pre-filing procedures and permitting process for new natural gas pipeline infrastructure 

This section would require PHMSA to consult with the Federal 

Energy Regulatory Commission (FERC) in the pre-filing phase of 

FERC’s permit consideration. 


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CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new material is printed in italic, existing law in which no change is proposed is shown in roman): 

TITLE 49. TRANSPORTATION 

SUBTITLE III. GENERAL AND INTERMODAL PROGRAMS

CHAPTER 61. ONE-CALL NOTIFICATION PROGRAMS

§ 6107. Authorization of appropriations 

(a) FOR GRANTS TO STATES.—There are authorized to be appropriated to the Secretary to provide grants to States under section 

6106 ø$1,000,000 for each of fiscal years 2012 through 2015¿ 

$1,060,000 for each of the fiscal years 2016 through 2019. Such 

funds shall remain available until expended. 

(b) FOR ADMINISTRATION.—There are authorized to be appropriated to the Secretary such sums as may be necessary to carry 

out sections 6103, 6104, and 6105 for fiscal years ø2012 through 

2015¿ 2016 through 2019. 

TITLE 49. TRANSPORTATION 

SUBTITLE VIII. PIPELINES

CHAPTER 601. SAFETY

§ 60101. Definitions 

(a) GENERAL.—In this chapter— 

* * * * * * * 

(21) ‘‘transporting gas’’— 

(A) means— 

(i) the gathering, transmission, or distribution of gas 

by pipeline, or the storage of gas, in interstate or foreign commerce; and 

(ii) the movement of gas through regulated gathering lines; but 

(B) does not include the gathering of gas, other than 

gathering through regulated gathering lines, in those rural 

locations that are located outside the limits of any incorporated or unincorporated city, town, or village, or any 

other designated residential or commercial area (including 

a subdivision, business, shopping center, or community development) or any similar populated area that the Secretary of Transportation determines to be a nonrural area, 

except that the term ‘‘transporting gas’’ includes the movement of gas through regulated gathering linesø.¿; 

(22) ‘‘transporting hazardous liquid’’— 

(A) means— 

(i) the movement of hazardous liquid by pipeline, or 

the storage of hazardous liquid incidental to the movement of hazardous liquid by pipeline, in or affecting 

interstate or foreign commerce; and 


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(ii) the movement of hazardous liquid through regulated gathering lines; but 

(B) does not include moving hazardous liquid through— 

(i) gathering lines (except regulated gathering lines) 

in a rural area; 

(ii) onshore production, refining, or manufacturing 

facilities; or 

(iii) storage or in-plant piping systems associated 

with onshore production, refining, or manufacturing 

facilities; 

(23) ‘‘risk management’’ means the systematic application, by 

the owner or operator of a pipeline facility, of management 

policies, procedures, finite resources, and practices to the tasks 

of identifying, analyzing, assessing, reducing, and controlling 

risk in order to protect employees, the general public, the environment, and pipeline facilities; 

(24) ‘‘risk management plan’’ means a management plan utilized by a gas or hazardous liquid pipeline facility owner or operator that encompasses risk management; øand¿ 

(25) ‘‘Secretary’’ means the Secretary of Transportationø.¿; 

(26) ‘‘small scale liquefied natural gas facility’’ means an 

intrastate liquefied natural gas facility (other than a peak shaving facility) that produces liquefied natural gas for— 

(A) use as a fuel in the United States; or 

(B) transportation in the United States by a means other 

than a pipeline facility; and 

(27) ‘‘underground natural gas storage facility’’ means a gas 

pipeline facility that stores gas in an underground facility, including— 

(A) a depleted hydrocarbon reservoir; 

(B) an aquifer reservoir; or 

(C) a solution mined salt cavern reservoir. 

* * * * * * * 

§ 60103. Standards for liquefied natural gas pipeline facilities 

ø(a) LOCATION STANDARDS.—The Secretary of Transportation 

shall prescribe minimum safety standards for deciding on the location of a new liquefied natural gas pipeline facility. In prescribing 

a standard, the Secretary shall consider the— 

ø(1) kind and use of the facility; 

ø(2) existing and projected population and demographic characteristics of the location; 

ø(3) existing and proposed land use near the location; 

ø(4) natural physical aspects of the location; 

ø(5) medical, law enforcement, and fire prevention capabilities near the location that can cope with a risk caused by the 

facility; and 

ø(6) need to encourage remote siting.¿ 

(a) LOCATION STANDARDS.— 

(1) IN GENERAL.—The Secretary of Transportation shall prescribe minimum safety standards for deciding on the location 

of a new liquefied natural gas pipeline facility or small scale 

liquefied natural gas facility. 


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(2) LIQUEFIED NATURAL GAS FACILITIES.—In prescribing a 

minimum safety standard for deciding on the location of a new 

liquefied natural gas facility, the Secretary of Transportation 

shall consider— 

(A) the kind and use of the facility; 

(B) the existing and projected population and demographic characteristics of the location; 

(C) the existing and proposed land uses near the location; 

(D) the natural physical aspects of the location; 

(E) medical, law enforcement, and fire prevention capabilities near the location that can cope with a risk caused 

by the facility; and 

(F) the need to encourage remote siting. 

(3) SMALL SCALE LIQUEFIED NATURAL GAS FACILITIES.— (A) IN GENERAL.—Not later than 18 months after the 

date of the enactment of the SAFE PIPES Act, the Secretary of Transportation shall prescribe minimum safety 

standards for small scale liquefied natural gas facilities. 

(B) CONSIDERATIONS.—In prescribing minimum safety 

standards under this paragraph, the Secretary shall consider— 

(i) the value of establishing risk-based approaches; 

(ii) the benefit of incorporating industry standards 

and best practices; 

(iii) the need to encourage the use of best available 

technology; and 

(iv) the factors prescribed in paragraph (2), as appropriate. 

* * * * * * * 

§ 60103A. Standards for underground natural gas storage facilities 

(a) MINIMUM UNIFORM SAFETY STANDARDS.—Not later than 2 

years after the date of the enactment of the SAFE PIPES Act, the 

Secretary of Transportation, in consultation with the heads of other 

relevant Federal agencies, shall issue minimum uniform safety 

standards, incorporating, to the extent practicable, consensus standards for the operation, environmental protection, and integrity management of underground natural gas storage facilities. 

(b) CONSIDERATIONS.—In developing uniform safety standards 

under subsection (a), the Secretary shall— 

(1) consider the economic impacts of the regulations on individual gas customers to the extent practicable; 

(2) ensure that the regulations do not have a significant economic impact on end users to the extent practicable; and 

(3) consider existing consensus standards. 

(c) USER FEES.— (1) IN GENERAL.—A fee shall be imposed on an entity operating an underground natural gas storage facility to which this 

section applies. Any such fee imposed shall be collected before 

the end of the fiscal year to which it applies. 

(2) MEANS OF COLLECTION.—The Secretary shall prescribe 

procedures to collect fees under this subsection. The Secretary 

may use a department, agency, or instrumentality of the United 

States Government or of a State or local government to collect 


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the fee and may reimburse the department, agency, or instrumentality a reasonable amount for its services. 

(3) USE OF FEES.— 

(A) ACCOUNT.—There is established an underground natural gas storage facility safety account in the Pipeline Safety Fund established under section 60301, in the Treasury 

of the United States. 

(B) USE OF FEES.—A fee collected under this subsection— 

(i) shall be deposited in the underground natural gas 

storage facility safety account; and 

(ii) if the fee is related to an underground natural 

gas storage facility, may be used only for an activity related to underground natural gas storage safety under 

this section. 

(C) LIMITATION.—Amounts collected under this subsection shall be made available only to the extent provided 

in advance in an appropriation law for an activity related 

to underground natural gas storage safety. 

(d) RULES OF CONSTRUCTION.— 

(1) IN GENERAL.—Nothing in this section may be construed to 

affect any Federal regulation relating to gas pipeline facilities 

that is in effect on the day before the date of enactment of the 

SAFE PIPES Act. 

(2) LIMITATIONS.—Nothing in this section may be construed 

to authorize the Secretary— 

(A) to prescribe the location of an underground natural 

gas storage facility; or 

(B) to require the Secretary’s permission to construct a facility referred to in subparagraph (A). 

§ 60115. Technical safety standards committees 

* * * * * * * 

(b) COMPOSITION AND APPOINTMENT.— 

(1) The Technical Pipeline Safety Standards Committee is 

composed of 15 members appointed by the Secretary of Transportation after consulting with public and private agencies concerned with the technical aspect of transporting gas or operating a gas pipeline facility. Each member must be experienced 

in the safety regulation of transporting gas and of gas pipeline 

facilities or technically qualified, by training, experience, or 

knowledge in at least one field of engineering applicable to 

transporting gas or operating a gas pipeline facility, to evaluate gas pipeline safety standards or risk management principles. 

(2) The Technical Hazardous Liquid Pipeline Safety Standards Committee is composed of 15 members appointed by the 

Secretary after consulting with public and private agencies 

concerned with the technical aspect of transporting hazardous 

liquid or operating a hazardous liquid pipeline facility. Each 

member must be experienced in the safety regulation of transporting hazardous liquid and of hazardous liquid pipeline facilities or technically qualified, by training, experience, or 

knowledge in at least one field of engineering applicable to 

transporting hazardous liquid or operating a hazardous liquid 


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pipeline facility, to evaluate hazardous liquid pipeline safety 

standards or risk management principles. 

(3) The members of each committee are appointed as follows: 

(A) 5 individuals selected from departments, agencies, 

and instrumentalities of the United States Government 

and of the States. 

(B) 5 individuals selected from the natural gas or hazardous liquid industry, as appropriate, after consulting 

with industry representatives. 

(C) 5 individuals selected from the general public. 

(4)(A) Two of the individuals selected for each committee 

under paragraph (3)(A) of this subsection must be øState commissioners. The Secretary shall consult with the national organization of State commissions before selecting those 2 individuals.¿ State officials. The Secretary shall consult with national 

organizations representing State commissioners or governors 

when making a selection under this subparagraph. 

(B) At least 3 of the individuals selected for each committee under paragraph (3)(B) of this subsection must be 

currently in the active operation of natural gas pipelines 

or hazardous liquid pipeline facilities, as appropriate. At 

least 1 of the individuals selected for each committee 

under paragraph (3)(B) shall have education, background, 

or experience in risk assessment and cost-benefit analysis. 

The Secretary shall consult with the national organizations representing the owners and operators of pipeline facilities before selecting individuals under paragraph (3)(B). 

(C) Two of the individuals selected for each committee 

under paragraph (3)(C) of this subsection must have education, background, or experience in environmental protection or public safety. At least 1 of the individuals selected 

for each committee under paragraph (3)(C) shall have education, background, or experience in risk assessment and 

cost-benefit analysis. At least one individual selected for 

each committee under paragraph (3)(C) may not have a financial interest in the pipeline, petroleum, or natural gas 

industries. 

(D) None of the individuals selected for a committee 

under paragraph (3)(C) may have a significant financial interest in the pipeline, petroleum, or gas industry. 

* * * * * * * 

§ 60124. Biennial reports 

(a) SUBMISSION AND CONTENTS.—Not later than August 15, 1997, 

and every 2 years thereafter, the Secretary of Transportation shall 

submit to Congress a report on carrying out this chapter for the 2 

immediately preceding calendar years for gas and a report on carrying out this chapter for such period for hazardous liquid. Each 

report shall include the following information about the prior year 

for gas or hazardous liquid, as appropriate: 

(1) a thorough compilation of the leak repairs, accidents, and 

casualties and a statement of cause when investigated and established by the National Transportation Safety Board. 


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(2) a list of applicable pipeline safety standards prescribed 

under this chapter including identification of standards prescribed during the year. 

(3) a summary of the reasons for each waiver granted under 

section 60118(c) and (d) of this title. 

(4) an evaluation of the degree of compliance with applicable 

safety standards, including a list of enforcement actions and 

compromises of alleged violations by location and company 

name. 

(5) a summary of outstanding problems in carrying out this 

chapter, in order of priority. 

(6) an analysis and evaluation of— 

(A) research activities, including their policy implications, completed as a result of the United States Government and private sponsorship; øand¿ 

(B) technological progress in safety achievedø.¿; and 

(C) research activities in collaboration with non-Federal 

entities, including the intended improvements to safety 

technology, inspection technology, operator response time, 

and emergency responder incident response time. 

* * * * * * * 

§ 60125. Authorization of appropriations 

(a) GAS AND HAZARDOUS LIQUID.— (1) IN GENERAL.—To carry out the provisions of this chapter 

related to gas and hazardous liquid and section 12 of the Pipeline Safety Improvement Act of 2002 (49 U.S.C. 60101 note; 

Public Law 107-355), øthere is authorized to be appropriated 

to the Department of Transportation for each of fiscal years 

2012 through 2015, from fees collected under section 60301, 

$90,679,000, of which $4,746,000 is for carrying out such section 12 and $36,194,000 is for making grants.¿ there are authorized to be appropriated to the Department of Transportation 

from fees collected under section 60301— (A) $127,060,000 for fiscal year 2016, of which $9,325,000 shall be expended for carrying out such section 

12 and $42,515,000 shall be expended for making grants; (B) $129,671,000 for fiscal year 2017, of which $9,418,000 shall be expended for carrying out such section 

12 and $42,941,000 shall be expended for making grants; (C) $132,334,000 for fiscal year 2018, of which $9,512,000 shall be expended for carrying out such section 

12 and $43,371,000 shall be expended for making grants; 

and 

(D) $135,051,000 for fiscal year 2019, of which $9,607,000 shall be expended for carrying out such section 

12 and $43,805,000 shall be expended for making grants. 

(2) TRUST FUND AMOUNTS.—In addition to the amounts authorized to be appropriated by paragraph (1), øthere is authorized to be appropriated for each of fiscal years 2012 through 

2015 from the Oil Spill Liability Trust Fund to carry out the 

provisions of this chapter related to hazardous liquid and section 12 of the Pipeline Safety Improvement Act of 2002 (49 

U.S.C. 60101 note; Public Law 107-355), $18,573,000, of which 

$2,174,000 is for carrying out such section 12 and $4,558,000 


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is for making grants.¿ there are authorized to be appropriated 

from the Oil Spill Liability Trust Fund to carry out the provisions of this chapter related to hazardous liquid and section 12 

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

60101 note; Public Law 107–355)— 

(A) $19,890,000 for fiscal year 2016, of which $3,108,000 

shall be expended for carrying out such section 12 and 

$8,708,000 shall be expended for making grants; 

(B) $20,288,000 for fiscal year 2017, of which $3,139,000 

shall be expended for carrying out such section 12 and 

$8,795,000 shall be expended for making grants; 

(C) $20,694,000 for fiscal year 2018, of which $3,171,000 

shall be expended for carrying out such section 12 and 

$8,883,000 shall be expended for making grants; and 

(D) $21,108,000 for fiscal year 2019, of which $3,203,000 

shall be expended for carrying out such section 12 and 

$8,972,000 shall be expended for making grants. 

(b) EMERGENCY RESPONSE GRANTS.— 

(1) IN GENERAL.—The Secretary may establish a program for 

making grants to State, county, and local governments in high 

consequence areas, as defined by the Secretary, for emergency 

response management, training, and technical assistance. To 

the extent that such grants are used to train emergency responders, such training shall ensure that emergency responders have the ability to protect nearby persons, property, and 

the environment from the effects of accidents or incidents involving gas or hazardous liquid pipelines, in accordance with 

existing regulations. 

(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated $10,000,000 for each of fiscal years ø2012 

through 2015¿ 2016 through 2019 to carry out this subsection. 

(c) CREDITING APPROPRIATIONS FOR EXPENDITURES FOR TRAINING.—The Secretary may credit to an appropriation authorized 

under subsection (a) amounts received from sources other than the 

Government for reimbursement for expenses incurred by the Secretary in providing training. 

§ 60130. Pipeline safety information grants to communities 

* * * * * * * 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Secretary of Transportation for carrying out 

this section $1,500,000 for each of fiscal years ø2012 through 2015¿ 

2016 through 2019. Such amounts shall not be derived from user 

fees collected under section 60301. 

§ 60134. State damage prevention programs 

* * * * * * * 

(i) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Secretary to provide grants under this section $1,500,000 for each of fiscal years ø2012 through 2015¿ 2016 

through 2019. Such funds shall remain available until expended. 


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PIPELINE SAFETY IMPROVEMENT ACT OF 2002 

[Public Law 107-355; 116 Stat. 2997] 

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

AND DEVELOPMENT. 

[49 U.S.C. 60101 note] 

* * * * * * * 

(f) PIPELINE INTEGRITY PROGRAM.—Of the amounts available in 

the Oil Spill Liability Trust Fund established by section 9509 of the 

Internal Revenue Code of 1986 (26 U.S.C. 9509), $3,000,000 shall 

be transferred to the Secretary of Transportation, as provided in 

appropriation Acts, to carry out programs for detection, prevention, 

and mitigation of oil spills for each of the fiscal years ø2012 

through 2015¿ 2016 through 2019. 

* * * * * * * 

Æ 


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