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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1505 Reported in Senate (RS)]

                                                       Calendar No. 540

104th CONGRESS

  2d Session

                                S. 1505

                          [Report No. 104-334]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             July 26, 1996

        Reported with an amendment in the nature of a substitute

                                                       Calendar No. 540
104th CONGRESS
  2d Session
                                S. 1505

                          [Report No. 104-334]

  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 SENATE OF THE UNITED STATES

                           December 22, 1995

Mr. Lott (for himself, Mr. Breaux, Mrs. Hutchison, Mr. Exon, Mr. Burns, 
 Mr. Shelby, Mr. Inouye, Mr. Ford, Mr. Cochran, Mr. Frist, Mr. Inhofe, 
Mr. Pressler, Mr. Stevens, Mr. Heflin, and Mr. Johnston) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

                             July 26, 1996

    Reported by Mr. Pressler, with an amendment in the nature of a 
                               substitute
 [Strike all after the enacting clause and insert the part printed in 
                                italic]

_______________________________________________________________________

                                 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.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Accountable Pipeline Safety 
and Partnership Act of 1995''.</DELETED>

<DELETED> SEC. 2. REFERENCES.</DELETED>

<DELETED>    Except as otherwise expressly provided, whenever in this 
Act an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of title 49, 
United States Code.</DELETED>

<DELETED> SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    (a) In General.--Section 60101(a) is amended--</DELETED>
        <DELETED>    (1) in each of paragraphs (1) through (22), by 
        striking the period at the end and inserting a 
        semicolon;</DELETED>
        <DELETED>    (2) in paragraph (21), by striking subparagraph 
        (B) and inserting the following:</DELETED>
                <DELETED>    ``(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 
                lines;''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(23) `benefits' means the reasonably 
        identifiable or estimated safety, environmental, and economic 
        benefits that are reasonably expected to result directly or 
        indirectly from the implementation of a standard, regulatory 
        requirement, or option;</DELETED>
        <DELETED>    ``(24) `costs' means, with respect to the 
        implementation of, or compliance with, a standard, regulatory 
        requirement, or option, the estimated or actual direct and 
        indirect costs of that implementation or compliance;</DELETED>
        <DELETED>    ``(25) `incremental benefit' or `incremental cost' 
        means the additional estimated benefit or cost that--</DELETED>
                <DELETED>    ``(A) would be caused by a particular 
                action (whether regulatory or nonregulatory) in 
                comparison with other options that may be taken in lieu 
                of that action; and</DELETED>
                <DELETED>    ``(B) is based on quantifiable or 
                qualifiable assessments that use generally available 
                and reasonably obtainable scientific or economic 
                data;</DELETED>
        <DELETED>    ``(26) `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 analyzing, assessing, and minimizing 
        risk in order to protect employees, the general public, the 
        environment, and pipeline facilities;</DELETED>
        <DELETED>    ``(27) `risk management plan' means a management 
        plan utilized by a gas or hazardous liquid pipeline facility 
        owner or operator that encompasses risk management; 
        and</DELETED>
        <DELETED>    ``(28) `Secretary' means--</DELETED>
                <DELETED>    ``(A) the Secretary of Transportation; 
                or</DELETED>
                <DELETED>    ``(B) if applicable, any person to whom 
                the Secretary of Transportation delegates authority 
                with respect to a matter concerned.''.</DELETED>
<DELETED>    (b) Gathering Lines.--Section 60101(b)(2) is amended by 
inserting ``, if appropriate,'' after ``Secretary'' the first place it 
appears.</DELETED>

<DELETED> SEC. 4. GENERAL AUTHORITY.</DELETED>

<DELETED>    (a) Minimum Safety Standards.--Section 60102(a) is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by striking subparagraph (C) 
        and inserting the following:</DELETED>
        <DELETED>    ``(C) shall include a requirement that all 
        individuals who operate and maintain pipeline facilities shall 
        be qualified to operate and maintain the pipeline 
        facilities.''; and</DELETED>
        <DELETED>    (2) by striking paragraph (2) and inserting the 
        following:</DELETED>
<DELETED>    ``(2) The qualifications applicable to an individual who 
operates and maintains a pipeline facility shall address the ability to 
recognize and react appropriately to abnormal operating conditions that 
may indicate a dangerous situation or a condition exceeding design 
limits. The operator of a pipeline facility shall ensure that employees 
who operate and maintain the facility are qualified to operate and 
maintain the pipeline facilities.''.</DELETED>
<DELETED>    (b) Practicability and Safety Needs Standards.--Section 
60102(b) is amended to read as follows:</DELETED>
<DELETED>    ``(b) Practicability and Safety Needs.--</DELETED>
        <DELETED>    ``(1) In general.--A standard prescribed under 
        subsection (a) shall be--</DELETED>
                <DELETED>    ``(A) practicable; and</DELETED>
                <DELETED>    ``(B) designed to meet the need for--
                </DELETED>
                        <DELETED>    ``(i) gas pipeline 
                        safety;</DELETED>
                        <DELETED>    ``(ii) safely transporting 
                        hazardous liquids; and</DELETED>
                        <DELETED>    ``(iii) protecting the 
                        environment.</DELETED>
        <DELETED>    ``(2) Factors for consideration.--Except as 
        provided in section 60112, when prescribing a standard under 
        this section or section 60101(b), 60103, 60108, 60109, 60110, 
        or 60113, the Secretary shall consider--</DELETED>
                <DELETED>    ``(A) relevant available--</DELETED>
                        <DELETED>    ``(i) gas pipeline safety 
                        information; or</DELETED>
                        <DELETED>    ``(ii) hazardous liquid pipeline 
                        safety and environmental protection 
                        information;</DELETED>
                <DELETED>    ``(B) the appropriateness of the standard 
                for the particular type of pipeline transportation or 
                facility;</DELETED>
                <DELETED>    ``(C) the reasonableness of the 
                standard;</DELETED>
                <DELETED>    ``(D) based on a risk assessment, the 
                extent to which the standard will benefit public safety 
                and the protection of the environment;</DELETED>
                <DELETED>    ``(E) the costs of compliance with the 
                standard;</DELETED>
                <DELETED>    ``(F) comments and information received 
                from the public; and</DELETED>
                <DELETED>    ``(G) the comments and recommendations of 
                the Technical Pipeline Safety Standards Committee 
                described in section 60115 and the Liquid Pipeline 
                Safety Standards Committee described in section 
                60115.</DELETED>
        <DELETED>    ``(3) Risk assessment document.--In prescribing a 
        standard referred to in paragraph (2), the Secretary shall 
        prepare a risk assessment document that--</DELETED>
                <DELETED>    ``(A) identifies the regulatory and 
                nonregulatory options that the Secretary considered in 
                prescribing a proposed standard;</DELETED>
                <DELETED>    ``(B) identifies the incremental costs and 
                incremental benefits with respect to public safety and 
                the protection of the environment that are associated 
                with the proposed standard;</DELETED>
                <DELETED>    ``(C) includes--</DELETED>
                        <DELETED>    ``(i) an explanation of the 
                        reasons for the selection of the proposed 
                        standard in lieu of the other options 
                        identified; and</DELETED>
                        <DELETED>    ``(ii) with respect to each of 
                        those other options, a brief explanation of the 
                        reasons that the Secretary found that option to 
                        be less cost-effective or flexible than the 
                        proposed standard; and</DELETED>
                <DELETED>    ``(D) provides any technical data or other 
                information upon which the risk assessment document and 
                proposed standard is based.</DELETED>
        <DELETED>    ``(4) Review.--</DELETED>
                <DELETED>    ``(A) In general.--The Secretary shall--
                </DELETED>
                        <DELETED>    ``(i) submit each risk assessment 
                        document prepared under this section to the 
                        Technical Pipeline Safety Standards Committee 
                        described in section 60115 or the Hazardous 
                        Liquid Pipeline Safety Standards Committee 
                        described in section 60115, or both, as 
                        appropriate; and</DELETED>
                        <DELETED>    ``(ii) make that document 
                        available to the general public.</DELETED>
                <DELETED>    ``(B) Peer review panels.--The committees 
                referred to in subparagraph (A) shall serve as peer 
                review panels to review risk assessment documents 
                prepared under this section. Not later than 90 days 
                after receiving a risk assessment document for review 
                pursuant to subparagraph (A), each committee that 
                receives that document shall prepare and submit to the 
                Secretary a report that includes--</DELETED>
                        <DELETED>    ``(i) an evaluation of the merit 
                        of the data and methods used in that document; 
                        and</DELETED>
                        <DELETED>    ``(ii) any recommended options 
                        relating to that document and the associated 
                        standard or regulatory requirement that the 
                        committee determines to be 
                        appropriate.</DELETED>
                <DELETED>    ``(C) Review by secretary.--Not later than 
                90 days after receiving a report submitted by a 
                committee under subparagraph (B), the Secretary--
                </DELETED>
                        <DELETED>    ``(i) shall review the 
                        report;</DELETED>
                        <DELETED>    ``(ii) shall provide a written 
                        response to the committee that is the author of 
                        the report concerning all significant peer 
                        review comments and recommended alternatives 
                        contained in the report; and</DELETED>
                        <DELETED>    ``(iii) may revise the risk 
                        assessment and the proposed standard or 
                        regulatory requirement before promulgating the 
                        final standard or requirement.</DELETED>
        <DELETED>    ``(5) Incremental benefits and costs.--Before 
        issuing a final standard that is subject to the requirements 
        contained in paragraphs (1) and (2), the Secretary shall 
        certify that the incremental benefits of the final standard 
        will likely justify, and be reasonably related to, the 
        incremental costs incurred by the Federal Government and State, 
        local, and tribal governments and any other public entity, and 
        the private sector.</DELETED>
        <DELETED>    ``(6) Emergencies.--In the case of an emergency 
        that meets the criteria described in section 60112(e), the 
        Secretary may suspend the application of this section for the 
        duration of the emergency.</DELETED>
        <DELETED>    ``(7) Report.--Not later than March 31, 1999, the 
        Secretary shall transmit to the Congress a report that--
        </DELETED>
                <DELETED>    ``(A) describes the implementation of the 
                risk assessment requirements of this section, including 
                the extent to which those requirements have improved 
                regulatory decision making; and</DELETED>
                <DELETED>    ``(B) includes any recommendations that 
                the Secretary determines would make the risk 
                assessments conducted pursuant to the requirements 
                under this chapter a more effective means of assessing 
                the benefits and costs associated with alternative 
                regulatory and nonregulatory options in prescribing 
                standards under the Federal pipeline safety regulatory 
                program under this chapter.''.</DELETED>
<DELETED>    (c) Facility Operation Information Standards.--The first 
sentence of section 60102(d) is amended--</DELETED>
        <DELETED>    (1) by inserting ``as required by the standards 
        prescribed under this chapter'' after ``operating the 
        facility'';</DELETED>
        <DELETED>    (2) by striking ``to provide the information'' and 
        inserting ``to make the information available''; and</DELETED>
        <DELETED>    (3) by inserting ``as determined by the 
        Secretary'' after ``to the Secretary and an appropriate State 
        official''.</DELETED>
<DELETED>    (d) Pipe Inventory Standards.--The first sentence of 
section 60102(e) is amended--</DELETED>
        <DELETED>    (1) by striking ``and, to the extent the Secretary 
        considers necessary, an operator of a gathering line that is 
        not a regulated gathering line (as defined under section 
        60101(b)(2) of this title),''; and</DELETED>
        <DELETED>    (2) by striking ``transmission'' and inserting 
        ``transportation''.</DELETED>
<DELETED>    (e) Smart Pigs.--</DELETED>
        <DELETED>    (1) Minimum safety standards.--Section 60102(f) is 
        amended by striking paragraph (1) and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) Minimum safety standards.--The Secretary 
        shall prescribe minimum safety standards requiring that the 
        design and construction of a new gas or hazardous liquid 
        pipeline transmission facility be carried out, to the extent 
        practicable, in a way that accommodates the passage through the 
        facility of an instrumented internal inspection device 
        (commonly referred to as a `smart pig'). The Secretary shall 
        also prescribe minimum safety standards that require that when 
        a segment of an existing gas or hazardous liquid pipeline 
        transmission facility is replaced, to the extent practicable, 
        the replacement segment can accommodate the passage of an 
        instrumented internal inspection device. The Secretary may 
        apply the standards to an existing gas or hazardous liquid 
        facility and require that the facility be changed to allow the 
        facility to be inspected with an instrumented internal 
        inspection device if the basic construction of the facility 
        will accommodate the device.''.</DELETED>
        <DELETED>    (2) Periodic inspections.--Section 60102(f)(2) is 
        amended--</DELETED>
                <DELETED>    (A) by striking ``(2) Not later than'' and 
                inserting the following:</DELETED>
        <DELETED>    ``(2) Periodic inspections.--Not later than''; 
        and</DELETED>
                <DELETED>    (B) by inserting ``, if necessary, 
                additional'' after ``the Secretary shall 
                prescribe''.</DELETED>
<DELETED>    (f) Updating Standards.--Section 60102 is amended by 
adding at the end the following new subsection:</DELETED>
<DELETED>    ``(l) Updating Standards.--The Secretary shall, to the 
extent appropriate and practicable, update incorporated industry 
standards that have been adopted as part of the Federal pipeline safety 
regulatory program under this chapter.''.</DELETED>

<DELETED> SEC. 5. RISK MANAGEMENT.</DELETED>

<DELETED>    (a) In General.--Chapter 601 is amended by adding at the 
end the following new section:</DELETED>
<DELETED>``Sec. 60126. Risk management</DELETED>
<DELETED>    ``(a) Risk Management Program Demonstration Projects.--
</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall establish 
        risk management demonstration projects--</DELETED>
                <DELETED>    ``(A) to demonstrate, through the 
                voluntary participation by owners and operators of gas 
                pipeline facilities and hazardous liquid pipeline 
                facilities, the applications of risk management; 
                and</DELETED>
                <DELETED>    ``(B) to evaluate the safety and cost-
                effectiveness of the applications referred to in 
                subparagraph (A).</DELETED>
        <DELETED>    ``(2) Waivers.--In carrying out a demonstration 
        project under this subsection, the Secretary--</DELETED>
                <DELETED>    ``(A) may waive, with respect to the owner 
                or operator of any pipeline facility covered under the 
                project (referred to in this subsection as a `covered 
                pipeline facility'), the applicability of all or a 
                portion of the requirements under this chapter that 
                would otherwise apply to that owner or operator with 
                respect to the pipeline facility; and</DELETED>
                <DELETED>    ``(B) shall waive, for the period of the 
                project, with respect to the owner or operator that 
                participates in the project, the applicability of any 
                new standard or regulatory requirement that the 
                Secretary promulgates under this chapter during the 
                period of that participation, if the Secretary 
                determines that the risk management plan applicable to 
                the demonstration project provides an overall level of 
                safety that is equivalent to or greater than the level 
                of safety provided by requiring the application of that 
                standard or regulatory requirement.</DELETED>
<DELETED>    ``(b) Requirements.--In carrying out a demonstration 
project under this section, the Secretary shall--</DELETED>
        <DELETED>    ``(1) invite owners and operators of pipeline 
        facilities to submit risk management plans for timely approval 
        by the Secretary;</DELETED>
        <DELETED>    ``(2) require, as a condition of approval, that a 
        risk management plan submitted under this subsection contain 
        measures that are designed to achieve an equivalent or greater 
        overall level of safety than would otherwise be achieved 
        through compliance with the standards and regulatory 
        requirements contained in this chapter or promulgated by the 
        Secretary under this chapter;</DELETED>
        <DELETED>    ``(3) provide for--</DELETED>
                <DELETED>    ``(A) collaborative government and 
                industry training;</DELETED>
                <DELETED>    ``(B) methods to measure the safety 
                performance of risk management plans;</DELETED>
                <DELETED>    ``(C) the development and application of 
                new technologies;</DELETED>
                <DELETED>    ``(D) the promotion of community awareness 
                concerning how the overall level of safety will be 
                enhanced by the demonstration project;</DELETED>
                <DELETED>    ``(E) the development of a model that 
                categorizes the risks inherent to each covered pipeline 
                facility, taking into consideration the location, 
                volume, pressure, and material transported or stored by 
                that pipeline facility;</DELETED>
                <DELETED>    ``(F) the application of risk assessment 
                and risk management methodologies that are suitable to 
                the inherent risks that are determined to exist through 
                the use of the model developed under subparagraph 
                (E);</DELETED>
                <DELETED>    ``(G) the development of project elements 
                that are necessary to ensure that--</DELETED>
                        <DELETED>    ``(i) the owners and operators 
                        that participate in the demonstration project 
                        demonstrate that they are effectively managing 
                        the risks referred to in subparagraph (E); 
                        and</DELETED>
                        <DELETED>    ``(ii) the risk management plans 
                        carried out under the demonstration project 
                        under this subsection can be audited;</DELETED>
                <DELETED>    ``(H) a process whereby an owner or 
                operator of a pipeline facility is able to amend, 
                modify, or otherwise adjust a risk management plan 
                referred to in paragraph (1) that has been approved by 
                the Secretary pursuant to that paragraph to respond 
                to--</DELETED>
                        <DELETED>    ``(i) changed circumstances; 
                        or</DELETED>
                        <DELETED>    ``(ii) a determination by the 
                        Secretary that the owner or operator is not 
                        achieving an overall level of safety that is at 
                        least equivalent to the level that would 
                        otherwise be achieved through compliance with 
                        the standards and regulatory requirements 
                        contained in this chapter or promulgated by the 
                        Secretary under this chapter; and</DELETED>
                <DELETED>    ``(I) such other elements as the 
                Secretary, with the agreement of the owners and 
                operators that participate in the demonstration project 
                under this section, determines to further the purposes 
                of this section; and</DELETED>
        <DELETED>    ``(4) in selecting participants for the 
        demonstration project, take into consideration the past safety 
        and regulatory performance of each applicant who submits a risk 
        management plan pursuant to paragraph (1).</DELETED>
<DELETED>    ``(c) Emergencies.--In the case of an emergency that meets 
the criteria described in section 60112(e), the Secretary may suspend 
or revoke the participation of an owner or operator in the 
demonstration project under this section.</DELETED>
<DELETED>    ``(d) Participation by State Authority.--Notwithstanding 
any other provision of this chapter, in carrying out the demonstration 
project under this section, the Secretary may provide for the 
participation in the demonstration project by a State that has in 
effect a certification that has been approved by the Secretary under 
section 60105.</DELETED>
<DELETED>    ``(e) Report.--Not later than March 31, 1999, the 
Secretary shall transmit to the Congress a report on the results of the 
demonstration projects carried out under this section that includes--
</DELETED>
        <DELETED>    ``(1) an evaluation of each such demonstration 
        project, including an evaluation of the performance of each 
        participant in that project with respect to safety and 
        environmental protection; and</DELETED>
        <DELETED>    ``(2) recommendations concerning whether the 
        applications of risk management demonstrated under the 
        demonstration project should be incorporated into the Federal 
        pipeline safety program under this chapter on a permanent 
        basis.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The analysis for chapter 601 is 
amended by adding at the end the following:</DELETED>

<DELETED>``60126. Risk management.''.

<DELETED>SEC. 6. INSPECTION AND MAINTENANCE.</DELETED>

<DELETED>    Section 60108 is amended--</DELETED>
        <DELETED>    (1) in subsection (a)(1), by striking 
        ``transporting gas or hazardous liquid or'' each place it 
        appears;</DELETED>
        <DELETED>    (2) in subsection (b)(2), by striking the second 
        sentence;</DELETED>
        <DELETED>    (3) in the heading to subsection (c), by striking 
        ``Navigable Waters'' and inserting ``Other Waters''; 
        and</DELETED>
        <DELETED>    (4) by striking clause (ii) of subsection 
        (c)(2)(A) and inserting the following:</DELETED>
        <DELETED>    ``(ii) any other pipeline facility crossing under, 
        over, or through waters where a substantial likelihood of 
        commercial navigation exists, if the Secretary decides that the 
        location of the facility in those waters could pose a hazard to 
        navigation or public safety.''.</DELETED>

<DELETED> SEC. 7. HIGH-DENSITY POPULATION AREAS AND ENVIRONMENTALLY 
              SENSITIVE AREAS.</DELETED>

<DELETED>    (a) Identification.--Section 60109(a)(1)(B)(i) is amended 
by striking ``a navigable waterway (as the Secretary defines by 
regulation)'' and inserting ``waters where a substantial likelihood of 
commercial navigation exists''.</DELETED>
<DELETED>    (b) Unusually Sensitive Areas.--Section 60109(b) is 
amended to read as follows:</DELETED>
<DELETED>    ``(b) Areas To Be Included as Unusually Sensitive.--When 
describing areas that are unusually sensitive to environmental damage 
if there is a hazardous liquid pipeline accident, the Secretary shall 
consider areas where a pipeline rupture would likely cause permanent or 
long-term environmental damage, including--</DELETED>
        <DELETED>    ``(1) locations near pipeline rights-of-way that 
        are critical to drinking water, including intake locations for 
        community water systems and critical sole source aquifer 
        protection areas; and</DELETED>
        <DELETED>    ``(2) locations near pipeline rights-of-way that 
        have been identified as critical wetlands, riverine or 
        estuarine systems, national parks, wilderness areas, wildlife 
        preservation areas or refuges, wild and scenic rivers, or 
        critical habitat areas for threatened and endangered 
        species.''.</DELETED>

<DELETED>SEC. 8. EXCESS FLOW VALUES.</DELETED>

<DELETED>    Section 60110 is amended--</DELETED>
        <DELETED>    (1) in subsection (b)--</DELETED>
                <DELETED>    (A) in the first sentence, by inserting 
                ``, if any,'' after ``circumstances''; and</DELETED>
                <DELETED>    (B) in paragraph (4), by inserting ``, 
                operating, and maintaining'' after ``cost of 
                installing'';</DELETED>
        <DELETED>    (2) in subsection (c)(1)(C), by inserting ``, 
        maintenance, and replacement'' after ``installation''; 
        and</DELETED>
        <DELETED>    (3) in subsection (e), by inserting after the 
        first sentence the following: ``The Secretary may adopt 
        industry accepted performance standards in order to comply with 
        the requirement under the preceding sentence.''.</DELETED>

<DELETED> SEC. 9. CUSTOMER-OWNED NATURAL GAS SERVICE LINES.</DELETED>

<DELETED>    Section 60113 is amended--</DELETED>
        <DELETED>    (1) by striking ``(a) Maintenance Information.--
        ''; and</DELETED>
        <DELETED>    (2) by striking subsection (b).</DELETED>

<DELETED> SEC. 10. UNDERGROUND FACILITY DAMAGE PREVENTION 
              PROGRAMS.</DELETED>

<DELETED>    (a) Application.--Section 60114(a) is amended--</DELETED>
        <DELETED>    (1) in the matter preceding paragraph (1), by 
        striking ``one-call notification system'' and inserting 
        ``underground facility damage prevention program (hereafter in 
        this subsection referred to as a `program')'';</DELETED>
        <DELETED>    (2) in paragraph (1)--</DELETED>
                <DELETED>    (A) by striking ``the system apply to''; 
                and</DELETED>
                <DELETED>    (B) by inserting before the period the 
                following: ``be covered by the program'';</DELETED>
        <DELETED>    (3) in each of paragraphs (2), (4), (5), (6), and 
        (8), by striking ``system'' each place it appears and inserting 
        ``program'';</DELETED>
        <DELETED>    (4) in paragraph (3), by striking ``appropriate 
        one-call notification system'' and inserting ``appropriate 
        program'';</DELETED>
        <DELETED>    (5) in paragraph (4), by striking 
        ``qualifications'' and inserting ``Qualifications'';</DELETED>
        <DELETED>    (6) in paragraph (5), by striking ``procedures'' 
        and inserting ``Procedures''; and</DELETED>
        <DELETED>    (7) in each of paragraphs (1), (2), (3), (6), (7), 
        (8), and (9), by striking ``a'' the first place it appears and 
        inserting ``A''.</DELETED>
<DELETED>    (b) Sanctions.--Section 60114(a)(9), as amended by 
subsection (a)(7), is further amended by striking ``60120, 60122, and 
60123'' and inserting ``60120 and 60122''.</DELETED>
<DELETED>    (c) Grants.--Section 60114(b) is amended by striking 
``one-call notification system'' and inserting ``underground facility 
damage prevention program''.</DELETED>
<DELETED>    (d) Apportionment.--Section 60114(d) is amended by 
striking ``one-call notification system'' each place it appears and 
inserting ``underground facility damage prevention program''.</DELETED>
<DELETED>    (e) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section heading.--The heading to section 60114 
        is amended to read as follows:</DELETED>
<DELETED>``Sec. 60114. Underground facility damage prevention 
              programs''.</DELETED>
        <DELETED>    (2) Chapter analysis.--The analysis for chapter 
        601 is amended by striking the item relating to section 60114 
        and inserting the following item:</DELETED>

<DELETED>``60114. Underground facility damage prevention programs.''.

<DELETED> SEC. 11. TECHNICAL SAFETY STANDARDS COMMITTEES.</DELETED>

<DELETED>    (a) Peer Review.--Section 60115(a) is amended by adding at 
the end the following: ``The committees referred to in the preceding 
sentence shall serve as peer review committees for carrying out this 
chapter. Peer reviews conducted by the committees shall be treated for 
purposes of all Federal laws relating to risk assessment and peer 
review (including laws that take effect after the date of the enactment 
of the Pipeline Safety Act of 1995) as meeting any peer review 
requirements of such laws.''.</DELETED>
<DELETED>    (b) Composition and Appointment.--Section 60115(b) is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by inserting ``or risk 
        management'' before the period at the end of the last 
        sentence;</DELETED>
        <DELETED>    (2) in paragraph (2), by inserting ``or risk 
        management'' before the period at the end of the last 
        sentence;</DELETED>
        <DELETED>    (3) in paragraph (3)--</DELETED>
                <DELETED>    (A) in subparagraph (B), by striking ``4'' 
                and inserting ``5''; and</DELETED>
                <DELETED>    (B) in subparagraph (C), by striking ``6'' 
                and inserting ``5''; and</DELETED>
        <DELETED>    (4) in paragraph (4)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by adding at the 
                end the following: ``At least 1 of the individuals 
                selected for each committee under paragraph (3)(A) 
                shall have relevant scientific education, background, 
                or experience.'';</DELETED>
                <DELETED>    (B) in subparagraph (B), by adding at the 
                end the following: ``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).''; and</DELETED>
                <DELETED>    (C) in subparagraph (C), by inserting 
                after the first sentence the following: ``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.''.</DELETED>
<DELETED>    (c) Committee Reports.--Section 60115(c) is amended--
</DELETED>
        <DELETED>    (1) by inserting ``or regulatory requirement'' 
        after ``standard'' each place it appears in paragraphs (1), 
        (2), and (3);</DELETED>
        <DELETED>    (2) in paragraph (1)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by inserting ``, 
                including the risk assessment document and other 
                analyses supporting each proposed standard or 
                regulatory requirement'' before the semicolon; 
                and</DELETED>
                <DELETED>    (B) in subparagraph (B), by inserting ``, 
                including the risk assessment document and other 
                analyses supporting each proposed standard or 
                regulatory requirement'' before the period; 
                and</DELETED>
        <DELETED>    (3) in paragraph (2)--</DELETED>
                <DELETED>    (A) in the first sentence--</DELETED>
                        <DELETED>    (i) by inserting ``and supporting 
                        analyses'' before the first comma;</DELETED>
                        <DELETED>    (ii) by inserting ``and submit to 
                        the Secretary'' after ``prepare'';</DELETED>
                        <DELETED>    (iii) by inserting ``cost-
                        effectiveness,'' after ``reasonableness,''; 
                        and</DELETED>
                        <DELETED>    (iv) by inserting ``and include in 
                        the report recommended actions'' before the 
                        period at the end; and</DELETED>
                <DELETED>    (B) in the second sentence, by inserting 
                ``any recommended actions and'' after 
                ``including''.</DELETED>
<DELETED>    (d) Proposed Committee Standards and Regulatory 
Requirements.--Section 60115(d)(1) is amended by inserting ``or 
regulatory requirement'' after ``standard'' each place it 
appears.</DELETED>
<DELETED>    (e) Meetings.--Section 60115(e) is amended by striking 
``twice'' and inserting ``4 times''.</DELETED>
<DELETED>    (f) Expenses.--Section 60115(f) is amended--</DELETED>
        <DELETED>    (1) in the subsection heading by striking ``Pay 
        and'';</DELETED>
        <DELETED>    (2) by striking the first 2 sentences; 
        and</DELETED>
        <DELETED>    (3) by inserting ``of a committee under this 
        section'' after ``A member''.</DELETED>

<DELETED>SEC. 12. PUBLIC EDUCATION PROGRAMS.</DELETED>

<DELETED>    Section 60116 is amended--</DELETED>
        <DELETED>    (1) by striking ``person transporting gas'' and 
        inserting ``owner or operator of a gas pipeline 
        facility'';</DELETED>
        <DELETED>    (2) by inserting ``the use of an underground 
        facility damage prevention program prior to excavation,'' after 
        ``educate the public on''; and</DELETED>
        <DELETED>    (3) by inserting a comma after ``gas 
        leaks''.</DELETED>

<DELETED>SEC. 13. ADMINISTRATIVE.</DELETED>

<DELETED>    Section 60117 is amended by adding at the end the 
following new subsection:</DELETED>
<DELETED>    ``(k) Authority for Cooperative Agreements.--To carry out 
this chapter, the Secretary may enter into grants, cooperative 
agreements, and other transactions with any person, agency, or 
instrumentality of the United States, any unit of State or local 
government, any educational institution, or any other entity to further 
the objectives of this chapter. The objectives of this chapter include 
the development, improvement, and promotion of one-call damage 
prevention programs, research, risk assessment, and 
mapping.''.</DELETED>

<DELETED> SEC. 14. COMPLIANCE AND WAIVERS.</DELETED>

<DELETED>    Section 60118 is amended by adding at the end the 
following new subsection:</DELETED>
<DELETED>    ``(e) Compliance With Risk Management Plans.--The owners 
and operators of pipeline facilities that participate in the 
demonstration project under section 60126 shall, during the applicable 
period of participation in the program, be considered to be in 
compliance with any prescribed safety standard or regulatory 
requirement that is covered by a plan that is approved by the Secretary 
under section 60126.''.</DELETED>

<DELETED>SEC. 15. DAMAGE REPORTING.</DELETED>

<DELETED>    Section 60123(d)(2) is amended--</DELETED>
        <DELETED>    (1) by striking ``or'' at the end of subparagraph 
        (A);</DELETED>
        <DELETED>    (2) by redesignating subparagraph (B) as 
        subparagraph (C); and</DELETED>
        <DELETED>    (3) by inserting after subparagraph (A) the 
        following:</DELETED>
                <DELETED>    ``(B) a pipeline facility and does not 
                report the damage promptly to the operator of the 
                pipeline facility and to other appropriate authorities; 
                or''.</DELETED>

<DELETED> SEC. 16. BIANNUAL REPORTS.</DELETED>

<DELETED>    (a) Biannual Reports.--</DELETED>
        <DELETED>    (1) Section heading.--The section heading of 
        section 60124 is amended to read as follows:</DELETED>
<DELETED>``Sec. 60124. Biannual reports''.</DELETED>
        <DELETED>    (2) Reports.--Section 60124(a) is amended by 
        striking the first sentence and inserting the 
        following:</DELETED>
<DELETED>    ``(a) Submission and Comments.--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.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The analysis for chapter 601 is 
amended by striking the item relating to section 60124 and inserting 
the following:</DELETED>

<DELETED>``60124. Biannual reports.''.

<DELETED>SEC. 17. POPULATION ENCROACHMENT.</DELETED>

<DELETED>    (a) In General.--Chapter 601, as amended by section 5, is 
further amended by adding at the end the following new 
section:</DELETED>
<DELETED>``Sec. 60127. Population encroachment</DELETED>
<DELETED>    ``(a) Land Use Recommendations.--The Secretary of 
Transportation shall make available to an appropriate official of each 
State, as determined by the Secretary, the land use recommendations of 
the special report numbered 219 of the Transportation Research Board, 
entitled `Pipelines and Public Safety'.</DELETED>
<DELETED>    ``(b) Evaluation.--The Secretary shall--</DELETED>
        <DELETED>    ``(1) evaluate the recommendations in the report 
        referred to in subsection (a);</DELETED>
        <DELETED>    ``(2) determine to what extent the recommendations 
        are being implemented;</DELETED>
        <DELETED>    ``(3) consider ways to improve the implementation 
        of the recommendations; and</DELETED>
        <DELETED>    ``(4) consider other initiatives to further 
        improve awareness of local planning and zoning entities 
        regarding issues involved with population encroachment in 
        proximity to the rights-of-way of any interstate gas pipeline 
        facility or interstate hazardous liquid pipeline 
        facility.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The analysis for chapter 601 is 
amended by inserting after the item relating to section 60126 the 
following:</DELETED>

<DELETED>``60127. Population encroachment.''.

<DELETED>SEC. 18. USER FEES.</DELETED>

<DELETED>    Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Transportation shall transmit to the 
Congress a report analyzing the assessment of pipeline safety user fees 
solely on the basis of mileage to determine whether--</DELETED>
        <DELETED>    (1) that measure of the resources of the 
        Department of Transportation is the most appropriate measure of 
        the resources used by the Department of Transportation in the 
        regulation of pipeline transportation; or</DELETED>
        <DELETED>    (2) another basis of assessment would be a more 
        appropriate measure of those resources.</DELETED>

<DELETED>SEC. 19. DUMPING WITHIN PIPELINE RIGHTS-OF-WAY.</DELETED>

<DELETED>    (a) Amendment.--Chapter 601, as amended by section 17, is 
further amended by adding at the end the following new 
section:</DELETED>
<DELETED>``Sec. 60128. Dumping within pipeline rights-of-way</DELETED>
<DELETED>    ``(a) Prohibition.--No person shall excavate for the 
purpose of unauthorized disposal within the right-of-way of an 
interstate gas pipeline facility or interstate hazardous liquid 
pipeline facility, or any other limited area in the vicinity of any 
such interstate pipeline facility established by the Secretary of 
Transportation, and dispose solid waste therein.</DELETED>
<DELETED>    ``(b) Definition.--For purposes of this section, the term 
`solid waste' has the meaning given that term in section 1004(27) of 
the Solid Waste Disposal Act (42 U.S.C. 6903(27)).''.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Cross-reference.--Sections 60122 and 60123 are 
        each amended by striking ``or 60118(a)'' and inserting ``, 
        60118(a), or 60128''.</DELETED>
        <DELETED>    (2) Chapter analysis.--The analysis for chapter 
        601 is amended by adding at the end the following new 
        item:</DELETED>

<DELETED>``60128. Dumping within pipeline rights-of-way.''.

<DELETED>SEC. 20. PREVENTION OF DAMAGE TO PIPELINE 
              FACILITIES.</DELETED>

<DELETED>    Section 60117(a) is amended by inserting after ``and 
training activities'' the following: ``and promotional activities 
relating to prevention of damage to pipeline facilities''.</DELETED>

<DELETED>SEC. 21. TECHNICAL CORRECTIONS.</DELETED>

<DELETED>    (a) Section 60105.--The heading to section 60105 is 
amended by inserting ``pipeline safety program'' after 
``State''.</DELETED>
<DELETED>    (b) Section 60106.--The heading to section 60106 is 
amended by inserting ``pipeline safety'' after ``State''.</DELETED>
<DELETED>    (c) Section 60107.--The heading to section 60107 is 
amended by inserting ``pipeline safety'' after ``State''.</DELETED>
<DELETED>    (d) Chapter Analysis.--The analysis for chapter 601 is 
amended--</DELETED>
        <DELETED>    (1) in the item relating to section 60105, by 
        inserting ``pipeline safety program'' after 
        ``State'';</DELETED>
        <DELETED>    (2) in the item relating to section 60106, by 
        inserting ``pipeline safety'' after ``State''; and</DELETED>
        <DELETED>    (3) in the item relating to section 60107, by 
        inserting ``pipeline safety'' after ``State''.</DELETED>

<DELETED> SEC. 22. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    (a) Gas and Hazardous Liquid.--Section 60125 is amended--
</DELETED>
        <DELETED>    (1) by striking subsection (a) and inserting the 
        following new subsection:</DELETED>
<DELETED>    ``(a) Gas and Hazardous Liquid.--To carry out this chapter 
(except for sections 60107 and 60114(b)) related to gas and hazardous 
liquid, there are authorized to be appropriated to the Department of 
Transportation--</DELETED>
        <DELETED>    ``(1) $9,936,000 for fiscal year 1996;</DELETED>
        <DELETED>    ``(2) $10,512,000 for fiscal year 1997;</DELETED>
        <DELETED>    ``(3) $11,088,000 for fiscal year 1998; 
        and</DELETED>
        <DELETED>    ``(4) $11,664,000 for fiscal year 1999.''; 
        and</DELETED>
        <DELETED>    (2) by striking subsection (b).</DELETED>
<DELETED>    (b) State Grants.--Section 60125(c)(1) is amended by 
adding at the end the following:</DELETED>
        <DELETED>    ``(D) $10,764,000 for fiscal year 1996.</DELETED>
        <DELETED>    ``(E) $11,388,000 for fiscal year 1997.</DELETED>
        <DELETED>    ``(F) $12,012,000 for fiscal year 1998.</DELETED>
        <DELETED>    ``(G) $12,636,000 for fiscal year 
        1999.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Accountable Pipeline Safety and 
Partnership Act of 1996''.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of title 49, United States 
Code.

SEC. 3. DEFINITIONS.

    (a) In General.--Section 60101(a) is amended--
            (1) by striking the periods at the end of paragraphs (1) 
        through (22) and inserting semicolons;
            (2) by striking paragraph (21)(B) and inserting the 
        following:
                    ``(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 lines;''; and
            (3) by adding at the end the following:
            ``(23) `risk management' means the systematic application, 
        by the owner or operator of a pipeline facility, of management 
        policies, procedures, finite resources, and practices to the 
        tasks of identifying, analyzing, assessing, reducing, and 
        controlling risk in order to protect employees, the general 
        public, the environment, and pipeline facilities;
            ``(24) `risk management plan' means a management plan 
        utilized by a gas or hazardous liquid pipeline facility owner 
        or operator that encompasses risk management; and
            ``(25) `Secretary' means the Secretary of 
        Transportation.''.
    (b) Gathering Lines.--Section 60101(b)(2) is amended by inserting 
``, if appropriate,'' after ``Secretary'' the first place it appears.

SEC. 4. GENERAL AUTHORITY.

    (a) Minimum Safety Standards.--Section 60102(a) is amended--
            (1) by striking ``transporters of gas and hazardous liquid 
        and to'' in paragraph (1)(A);
            (2) by striking paragraph (1)(C) and inserting the 
        following:
                    ``(C) shall include a requirement that all 
                individuals who operate and maintain pipeline 
                facilities shall be qualified to operate and maintain 
                the pipeline facilities.''; and
             (3) by striking paragraph (2) and inserting the following:
            ``(2) The qualifications applicable to an individual who 
        operates and maintains a pipeline facility shall address the 
        ability to recognize and react appropriately to abnormal 
        operating conditions that may indicate a dangerous situation or 
        a condition exceeding design limits. The operator of a pipeline 
        facility shall ensure that employees who operate and maintain 
        the facility are qualified to operate and maintain the pipeline 
        facilities.''.
    (b) Practicability and Safety Needs Standards.--Section 60102(b) is 
amended to read as follows:
    ``(b) Practicability and Safety Needs Standards.--
            ``(1) In general.--A standard prescribed under subsection 
        (a) shall be--
                    ``(A) practicable; and
                    ``(B) designed to meet the need for--
                            ``(i) gas pipeline safety, or safely 
                        transporting hazardous liquids, as appropriate; 
                        and
                            ``(ii) protecting the environment.
            ``(2) Factors for consideration.--When prescribing any 
        standard under this section or section 60101(b), 60103, 60108, 
        60109, 60110, or 60113, the Secretary shall consider--
                    ``(A) relevant available--
                            ``(i) gas pipeline safety information;
                            ``(ii) hazardous liquid pipeline safety 
                        information; and
                            ``(iii) environmental information;
                    ``(B) the appropriateness of the standard for the 
                particular type of pipeline transportation or facility;
                    ``(C) the reasonableness of the standard;
                    ``(D) based on a risk assessment, the reasonably 
                identifiable or estimated benefits expected to result 
                from implementation or compliance with the standard;
                    ``(E) based on a risk assessment, the reasonably 
                identifiable or estimated costs expected to result from 
                implementation or compliance with the standard;
                    ``(F) comments and information received from the 
                public; and
                    ``(G) the comments and recommendations of the 
                Technical Pipeline Safety Standards Committee, the 
                Technical Hazardous Liquid Pipeline Safety Standards 
                Committee, or both, as appropriate.
            ``(3) Risk assessment.--In prescribing a standard referred 
        to in paragraph (2), the Secretary shall--
                    ``(A) identify the regulatory and nonregulatory 
                options that the Secretary considered in prescribing a 
                proposed standard;
                    ``(B) identify the costs and benefits associated 
                with the proposed standard;
                    ``(C) include--
                            ``(i) an explanation of the reasons for the 
                        selection of the proposed standard in lieu of 
                        the other options identified; and
                            ``(ii) with respect to each of those other 
                        options, a brief explanation of the reasons 
                        that the Secretary did not select the option; 
                        and
                    ``(D) identify technical data or other information 
                upon which the risk assessment information and proposed 
                standard is based.
            ``(4) Review.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) submit risk assessment information 
                        prepared under paragraph (3) of this subsection 
                        to the Technical Pipeline Safety Standards 
                        Committee, the Technical Hazardous Liquid 
                        Pipeline Safety Standards Committee, or both, 
                        as appropriate; and
                            ``(ii) make that risk assessment 
                        information available to the general public.
                    ``(B) Peer review panels.--The committees referred 
                to in subparagraph (A) shall serve as peer review 
                panels to review risk assessment information prepared 
                under this section. Not later than 90 days after 
                receiving risk assessment information for review 
                pursuant to subparagraph (A), each committee that 
                receives that risk assessment information shall prepare 
                and submit to the Secretary a report that includes--
                            ``(i) an evaluation of the merit of the 
                        data and methods used; and
                            ``(ii) any recommended options relating to 
                        that risk assessment information and the 
                        associated standard that the committee 
                        determines to be appropriate.
                    ``(C) Review by secretary.--Not later than 90 days 
                after receiving a report submitted by a committee under 
                subparagraph (B), the Secretary--
                            ``(i) shall review the report;
                            ``(ii) shall provide a written response to 
                        the committee that is the author of the report 
                        concerning all significant peer review comments 
                        and recommended alternatives contained in the 
                        report; and
                            ``(iii) may revise the risk assessment and 
                        the proposed standard before promulgating the 
                        final standard.
            ``(5) Secretarial decisionmaking.--Except where otherwise 
        required by statute, the Secretary shall propose or issue a 
        standard under this Chapter only upon a reasoned determination 
        that the benefits of the intended standard justify its costs.
            ``(6) Exceptions from application.--The requirements of 
        this subsection do not apply when--
                    ``(A) the standard is the product of a negotiated 
                rulemaking, or other rulemaking including the adoption 
                of industry standards that receives no significant 
                adverse comment within 60 days of notice in the Federal 
                Register;
                    ``(B) based on a recommendation (in which three-
                fourths of the members voting concur) by the Technical 
                Pipeline Safety Standards Committee, the Technical 
                Hazardous Liquid Pipeline Safety Standards Committee, 
                or both, as applicable, the Secretary waives the 
                requirements; or
                    ``(C) the Secretary finds, pursuant to section 
                553(b)(3)(B) of title 5, United States Code, that 
                notice and public procedure are not required.
            ``(7) Report.--Not later than March 31, 2000, the Secretary 
        shall transmit to the Congress a report that--
                    ``(A) describes the implementation of the risk 
                assessment requirements of this section, including the 
                extent to which those requirements have improved 
                regulatory decision making; and
                    ``(B) includes any recommendations that the 
                Secretary determines would make the risk assessment 
                process conducted pursuant to the requirements under 
                this chapter a more effective means of assessing the 
                benefits and costs associated with alternative 
                regulatory and nonregulatory options in prescribing 
                standards under the Federal pipeline safety regulatory 
                program under this chapter.''.
    (c) Facility Operation Information Standards.--The first sentence 
of section 60102(d) is amended--
            (1) by inserting ``as required by the standards prescribed 
        under this chapter'' after ``operating the facility'';
            (2) by striking ``to provide the information'' and 
        inserting ``to make the information available''; and
            (3) by inserting ``as determined by the Secretary'' after 
        ``to the Secretary and an appropriate State official''.
    (d) Pipe Inventory Standards.--The first sentence of section 
60102(e) is amended--
            (1) by striking ``and, to the extent the Secretary 
        considers necessary, an operator of a gathering line that is 
        not a regulated gather line (as defined under section 
        60101(b)(2) of this title),''; and
            (2) by striking ``transmission'' and inserting 
        ``transportation''.
    (e) Smart Pigs.--
            (1) Minimum safety standards.--Section 60102(f) is amended 
        by striking paragraph (1) and inserting the following:
            ``(1) Minimum safety standards.--The Secretary shall 
        prescribe minimum safety standards requiring that--
                    ``(A) the design and construction of new natural 
                gas transmission pipeline or hazardous liquid pipeline 
                facilities, and
                    ``(B) when the replacement of existing natural gas 
                transmission pipeline or hazardous liquid pipeline 
                facilities or equipment is required, the replacement of 
                such existing facilities be carried out, to the extent 
                practicable, in a manner so as to accommodate the 
                passage through such natural gas transmission pipeline 
                or hazardous liquid pipeline facilities of instrumented 
                internal inspection devices (commonly referred to as 
                `smart pigs'). The Secretary may extend such standards 
                to require existing natural gas transmission pipeline 
                or hazardous liquid pipeline facilities, whose basic 
                construction would accommodate an instrumented internal 
                inspection device to be modified to permit the 
                inspection of such facilities with instrumented 
                internal inspection devices.''.
            (2) Periodic inspections.--Section 60102(f)(2) is amended--
                     (A) by striking ``(2) Not later than'' and 
                inserting the following:
            ``(2) Periodic inspections.--Not later than''; and
                    (B) by inserting ``, if necessary, additional'' 
                after ``the Secretary shall prescribe''.
    (f) Updating Standards.--Section 60102 is amended by adding at the 
end the following:
    ``(l) Updating Standards.--The Secretary shall, to the extent 
appropriate and practicable, update incorporated industry standards 
that have been adopted as part of the Federal pipeline safety 
regulatory program under this chapter.''.

SEC. 5. RISK MANAGEMENT.

    (a) In General.--Chapter 601 is amended by adding at the end the 
following:
``Sec. 60126. Risk management
    ``(a) Risk Management Program Demonstration Projects.--
            ``(1) In general.--The Secretary shall establish risk 
        management demonstration projects--
                    ``(A) to demonstrate, through the voluntary 
                participation by owners and operators of gas pipeline 
                facilities and hazardous liquid pipeline facilities, 
                the application of risk management; and
                    ``(B) to evaluate the application of risk 
                management referred to in subparagraph (A).
            ``(2) Exemptions.--In carrying out a demonstration project 
        under this subsection, the Secretary, by order--
                    ``(A) may exempt an owner or operator of the 
                pipeline facility covered under the project (referred 
                to in this subsection as a `covered pipeline 
                facility'), from the applicability of all or a portion 
                of the requirements under this chapter that would 
                otherwise apply to the covered pipeline facility; and
                    ``(B) shall exempt, for the period of the project, 
                an owner or operator of the covered pipeline facility, 
                from the applicability of any new standard that the 
                Secretary promulgates under this chapter during the 
                period of that participation, with respect to the 
                covered facility.
    ``(b) Requirements.--In carrying out a demonstration project under 
this section, the Secretary shall--
            ``(1) invite owners and operators of pipeline facilities to 
        submit risk management plans for timely approval by the 
        Secretary;
            ``(2) require, as a condition of approval, that a risk 
        management plan submitted under this subsection contain 
        measures that are designed to achieve an equivalent or greater 
        overall level of safety than would otherwise be achieved 
through compliance with the standards contained in this chapter or 
promulgated by the Secretary under this chapter;
            ``(3) provide for--
                    ``(A) collaborative government and industry 
                training;
                    ``(B) methods to measure the safety performance of 
                risk management plans;
                    ``(C) the development and application of new 
                technologies;
                    ``(D) the promotion of community awareness 
                concerning how the overall level of safety will be 
                maintained or enhanced by the demonstration project;
                    ``(E) the development of models that categorize the 
                risks inherent to each covered pipeline facility, 
                taking into consideration the location, volume, 
                pressure, and material transported or stored by that 
                pipeline facility;
                    ``(F) the application of risk assessment and risk 
                management methodologies that are suitable to the 
                inherent risks that are determined to exist through the 
                use of models developed under subparagraph (E);
                    ``(G) the development of project elements that are 
                necessary to ensure that--
                            ``(i) the owners and operators that 
                        participate in the demonstration project 
                        demonstrate that they are effectively managing 
                        the risks referred to in subparagraph (E); and
                            ``(ii) the risk management plans carried 
                        out under the demonstration project under this 
                        subsection can be audited;
                    ``(H) a process whereby an owner or operator of a 
                pipeline facility is able to terminate a risk 
                management plan or, with the approval of the Secretary, 
                to amend, modify, or otherwise adjust a risk management 
                plan referred to in paragraph (1) that has been 
                approved by the Secretary pursuant to that paragraph to 
                respond to--
                            ``(i) changed circumstances; or
                            ``(ii) a determination by the Secretary 
                        that the owner or operator is not achieving an 
                        overall level of safety that is at least 
                        equivalent to the level that would otherwise be 
                        achieved through compliance with the standards 
                        contained in this chapter or promulgated by the 
                        Secretary under this chapter; and
                    ``(I) such other elements as the Secretary, with 
                the agreement of the owners and operators that 
                participate in the demonstration project under this 
                section, determines to further the purposes of this 
                section; and
            ``(4) in selecting participants for the demonstration 
        project, take into consideration the past safety and regulatory 
        performance of each applicant who submits a risk management 
        plan pursuant to paragraph (1).
    ``(c) Emergencies and Revocations.--Nothing in this section 
diminishes or modifies the Secretary's authority under this title to 
act in case of an emergency. The Secretary may revoke any exemption 
granted under this section for substantial noncompliance with the terms 
and conditions of an approved risk management plan.
    ``(d) Participation by State Authority.--In carrying out this 
section, the Secretary may provide for consultation by a State that has 
in effect a certification under section 60105. To the extent that a 
demonstration project comprises an intrastate natural gas pipeline or 
an intrastate hazardous liquid pipeline facility, the Secretary may 
make an agreement with the State agency to carry out the duties of the 
Secretary for approval and administration of the project.
    ``(e) Report.--Not later than March 31, 2000, the Secretary shall 
transmit to the Congress a report on the results of the demonstration 
projects carried out under this section that includes--
            ``(1) an evaluation of each such demonstration project, 
        including an evaluation of the performance of each participant 
        in that project with respect to safety and environmental 
        protection; and
            ``(2) recommendations concerning whether the applications 
        of risk management demonstrated under the demonstration project 
        should be incorporated into the Federal pipeline safety program 
        under this chapter on a permanent basis.''.
    (f) Conforming Amendment.--The analysis for chapter 601 is amended 
by adding at the end the following:

``60126. Risk management.''.

SEC. 6. INSPECTION AND MAINTENANCE.

    Section 60108 is amended--
            (1) by striking ``transporting gas or hazardous liquid or'' 
        in subsection (a)(1) each place it appears;
            (2) by striking the second sentence in subsection (b)(2);
            (3) by striking ``Navigable Waters'' in the heading for 
        subsection (c) and inserting ``Other Waters''; and
            (4) by striking clause (ii) of subsection (c)(2)(A) and 
        inserting the following:
                            ``(ii) any other pipeline facility crossing 
                        under, over, or through waters where a 
                        substantial likelihood of commercial navigation 
                        exists, if the Secretary decides that the 
                        location of the facility in those waters could 
                        pose a hazard to navigation or public 
                        safety.''.

SEC. 7. HIGH-DENSITY POPULATION AREAS AND ENVIRONMENTALLY SENSITIVE 
              AREAS.

    (a) Identification.--Section 60109(a)(1)(B)(i) is amended by 
striking ``a navigable waterway (as the Secretary defines by 
regulation)'' and inserting ``waters where a substantial likelihood of 
commercial navigation exists''.
    (b) Unusually Sensitive Areas.--Section 60109(b) is amended to read 
as follows:
    ``(b) Areas To Be Included as Unusually Sensitive.--When describing 
areas that are unusually sensitive to environmental damage if there is 
a hazardous liquid pipeline accident, the Secretary shall consider 
areas where a pipeline rupture would likely cause permanent or long-
term environmental damage, including--
            ``(1) locations near pipeline rights-of-way that are 
        critical to drinking water, including intake locations for 
        community water systems and critical sole source aquifer 
        protection areas; and
            ``(2) locations near pipeline rights-of-way that have been 
        identified as critical wetlands, riverine or estuarine systems, 
        national parks, wilderness areas, wildlife preservation areas 
        or refuges, wild and scenic rivers, or critical habitat areas 
        for threatened and endangered species.''.

SEC. 8. EXCESS FLOW VALVES.

    Section 60110 is amended--
            (1) by inserting ``, if any,'' in the first sentence of 
        subsection (b)(1) after ``circumstances'';
            (2) by inserting ``, operating, and maintaining'' in 
        subsection (b)(4) after ``cost of installing'';
            (3) by inserting ``, maintenance, and replacement'' in 
        subsection (c)(1)(C) after ``installation''; and
            (4) by inserting after the first sentence in subsection (e) 
        the following: ``The Secretary may adopt industry accepted 
        performance standards in order to comply with the requirement 
under the preceding sentence.''.

SEC. 9. CUSTOMER-OWNED NATURAL GAS SERVICE LINES.

     Section 60113 is amended--
            (1) by striking the caption of subsection (a); and
            (2) by striking subsection (b).

SEC. 10. TECHNICAL SAFETY STANDARDS COMMITTEES.

    (a) Peer Review.--Section 60115(a) is amended by adding at the end 
the following: ``The committees referred to in the preceding sentence 
shall serve as peer review committees for carrying out this chapter. 
Peer reviews conducted by the committees shall be treated for purposes 
of all Federal laws relating to risk assessment and peer review 
(including laws that take effect after the date of the enactment of the 
Accountable Pipeline Safety and Partnership Act of 1996) as meeting any 
peer review requirements of such laws.''.
    (b) Composition and Appointment.--Section 60115(b) is amended--
            (1) by inserting ``or risk management principles'' in 
        paragraph (1) before the period at the end;
            (2) by inserting ``or risk management principles'' in 
        paragraph (2) before the period at the end;
            (3) by striking ``4'' in paragraph (3)(B) and inserting 
        ``5'';
            (4) by striking ``6'' in paragraph (3)(C) and inserting 
        ``5'';
            (5) by adding at the end of paragraph (4)(B) the following: 
        ``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).''; and
            (6) by inserting after the first sentence of paragraph 
        (4)(C) the following: ``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.''.
    (c) Committee Reports.--Section 60115(c) is amended--
            (1) by inserting ``including the risk assessment 
        information and other analyses supporting each proposed 
        standard'' before the semicolon in paragraph (1)(A);
            (2) by inserting ``including the risk assessment 
        information and other analyses supporting each proposed 
        standard'' before the period in paragraph (1)(B);
            (3) by inserting ``and supporting analyses'' before the 
        first comma in the first sentence of paragraph (2);
            (4) by inserting ``and submit to the Secretary'' in the 
        first sentence of paragraph (2) after ``prepare'';
            (5) by inserting ``cost-effectiveness,'' in the first 
        sentence of paragraph (2) after ``reasonableness,''; and
            (6) by inserting ``and include in the report recommended 
        actions'' before the period at the end of the first sentence of 
        paragraph (2); and
            (7) by inserting ``any recommended actions and'' in the 
        second sentence of paragraph (2) after ``including''.
    (d) Meetings.--Section 60115(e) is amended by striking ``twice'' 
and inserting ``up to 4 times''.
    (e) Expenses.--Section 60115(f) is amended--
            (1) by striking ``Pay and'' in the subsection heading;
            (2) by striking the first 2 sentences; and
            (3) by inserting ``of a committee under this section'' 
        after ``A member''.

SEC. 11. PUBLIC EDUCATION PROGRAMS.

    Section 60116 is amended--
            (1) by striking ``person transporting gas'' and inserting 
        ``owner or operator of a gas pipeline facility'';
            (2) by inserting ``the use of a one-call notification 
        system prior to excavation,'' after ``educate the public on''; 
        and
            (3) by inserting a comma after ``gas leaks''.

SEC. 12. ADMINISTRATIVE.

    Section 60117 is amended--
            (1) by adding at the end of subsection (b) the following: 
        ``The Secretary may require owners and operators of gathering 
        lines to provide the Secretary information pertinent to the 
        Secretary's ability to make a determination as to whether and 
        to what extent to regulate gathering lines.'';
            (2) by adding at the end thereof the following:
    ``(k) Authority for Cooperative Agreements.--To carry out this 
chapter, the Secretary may enter into grants, cooperative agreements, 
and other transactions with any person, agency, or instrumentality of 
the United States, any unit of State or local government, any 
educational institution, or any other entity to further the objectives 
of this chapter. The objectives of this chapter include the 
development, improvement, and promotion of one-call damage prevention 
programs, research, risk assessment, and mapping.''; and
            (3) by striking ``transporting gas or hazardous liquid'' in 
        subsection (b) and inserting ``owning''.

SEC. 13. COMPLIANCE.

    (a) Section 60118 (a) is amended--
            (1) by striking ``transporting gas or hazardous liquid or'' 
        in subsection (a); and
            (2) by striking paragraph (1) and inserting the following:
            ``(1) comply with applicable safety standards prescribed 
        under this chapter, except as provided in this section or in 
        section 60126;''.
    (b) Section 60118 (b) is amended to read as follows:
    ``(b) Compliance Orders.--The Secretary of Transportation may issue 
orders directing compliance with this chapter, an order under section 
60126, or a regulation prescribed under this chapter. An order shall 
state clearly the action a person must take to comply.''.
    (c) Section 60118(c) is amended by striking ``transporting gas or 
hazardous liquid'' and inserting ``owning''.

SEC. 14. DAMAGE REPORTING.

    Section 60123(d)(2) is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following:
                    ``(B) a pipeline facility that does not report the 
                damage promptly to the operator of the pipeline 
                facility and to other appropriate authorities; or''.

SEC. 15. BIENNIAL REPORTS.

    (a) Biennial Reports.--
            (1) Section heading.--The section heading of section 60124 
        is amended to read as follows:
``Sec. 60124. Biennial reports''.
            (2) Reports.--Section 60124(a) is amended by striking the 
        first sentence and inserting the following: ``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.''.
    (c) Conforming Amendment.--The analysis for chapter 601 is amended 
by striking the item relating to section 60124 and inserting the 
following:

``60124. Biennial reports.''.

SEC. 16. POPULATION ENCROACHMENT.

    (a) In General.--Chapter 601, as amended by section 5, is further 
amended by adding at the end the following new section:
``Sec. 60127. Population encroachment
    ``(a) Land Use Recommendations.--The Secretary of Transportation 
shall make available to an appropriate official of each State, as 
determined by the Secretary, the land use recommendations of the 
special report numbered 219 of the Transportation Research Board, 
entitled `Pipelines and Public Safety'.
    ``(b) Evaluation.--The Secretary shall--
            ``(1) evaluate the recommendations in the report referred 
        to in subsection (a);
            ``(2) determine to what extent the recommendations are 
        being implemented;
            ``(3) consider ways to improve the implementation of the 
        recommendations; and
            ``(4) consider other initiatives to further improve 
        awareness of local planning and zoning entities regarding 
        issues involved with population encroachment in proximity to 
        the rights-of-way of any interstate gas pipeline facility or 
        interstate hazardous liquid pipeline facility.''.
    (b) Conforming Amendment.--The analysis for chapter 601 is amended 
by inserting after the item relating to section 60126 the following:

``60127. Population encroachment.''.

SEC. 17. USER FEES.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Transportation shall transmit 
to the Congress a report analyzing the present assessment of pipeline 
safety user fees solely on the basis of mileage to determine whether--
            (1) that measure of the resources of the Department of 
        Transportation is the most appropriate measure of the resources 
        used by the Department of Transportation in the regulation of 
        pipeline transportation; or
            (2) another basis of assessment would be a more appropriate 
        measure of those resources.
    (b) Considerations.--In making the report, the Secretary shall 
consider a wide range of assessment factors and suggestions and 
comments from the public.

SEC. 18. DUMPING WITHIN PIPELINE RIGHTS-OF-WAY.

    (a) Amendment.--Chapter 601, as amended by section 16, is further 
amended by adding at the end the following new section:
``Sec. 60128. Dumping within pipeline rights-of-way
    ``(a) Prohibition.--No person shall excavate for the purpose of 
unauthorized disposal within the right-of-way of an interstate gas 
pipeline facility or interstate hazardous liquid pipeline facility, or 
any other limited area in the vicinity of any such interstate pipeline 
facility established by the Secretary of Transportation, and dispose 
solid waste therein.
    ``(b) Definition.--For purposes of this section, the term `solid 
waste' has the meaning given that term in section 1004(27) of the Solid 
Waste Disposal Act (42 U.S.C. 6903(27)).''.
    (b) Conforming Amendments.--
            (1) Cross-reference.--Section 60123(a) is amended by 
        striking ``or 60118(a)'' and inserting ``, 60118(a), or 
        60128''.
            (2) Chapter analysis.--The analysis for chapter 601 is 
        amended by adding at the end the following new item:

``60128. Dumping within pipeline rights-of-way.''.

SEC. 19. PREVENTION OF DAMAGE TO PIPELINE FACILITIES.

    Section 60117(a) is amended by inserting after ``and training 
activities'' the following: ``and promotional activities relating to 
prevention of damage to pipeline facilities''.

SEC. 20. TECHNICAL CORRECTIONS.

    (a) Section 60105.--The heading for section 60105 is amended by 
inserting ``pipeline safety program'' after ``State''.
    (b) Section 60106.--The heading for section 60106 is amended by 
inserting ``pipeline safety'' after ``State''.
    (c) Section 60107.--The heading for section 60107 is amended by 
inserting ``pipeline safety'' after ``State''.
    (d) Section 60114.--Section 60114 is amended--
            (1) by striking ``60120, 60122, and 60123'' in subsection 
        (a)(9) and inserting ``60120 and 60122'';
            (2) by striking subsections (b) and (d); and
            (3) by redesignating subsections (c) and (e) as subsections 
        (b) and (d), respectively.
    (e) Chapter Analysis.--The analysis for chapter 601 is amended--
            (1) by inserting ``pipeline safety program'' in the item 
        relating to section 60105 after ``State'';
            (2) by inserting ``pipeline safety'' in the item relating 
        to section 60106 after ``State''; and
            (3) by inserting ``pipeline safety'' in the item relating 
        to section 60107 after ``State''.
    (f) Section 60101.--Section 60101(b) is amended by striking 
``define by regulation'' each place it appears and inserting 
``prescribe standards defining''.
    (g) Section 60102.--Section 60102 is amended by striking 
``regulations'' each place it appears in subsections (f)(2), (i), and 
(j)(2) and inserting ``standards''.
    (h) Section 60108.--Section 60108 is amended--
            (1) by striking ``regulations'' in subsections (c)(2)(B), 
        (c)(4)(B), and (d)(3) and inserting ``standards''; and
            (2) by striking ``require by regulation'' in subsection 
        (c)(4)(A) and inserting ``establish a standard''.
    (i) Section 60109.--Section 60109(a) is amended by striking 
``regulations'' and inserting ``standards''.
    (j) Section 60110.--Section 60110 is amended by striking 
``regulations'' in subsections (b), (c)(1), and (c)(2) and inserting 
``standards''.
    (k) Section 60113.--Section 60113(a) is amended by striking 
``regulations'' and inserting ``standards''.

SEC. 21. AUTHORIZATION OF APPROPRIATIONS.

    (a) Gas and Hazardous Liquid.--Section 60125 is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Gas and Hazardous Liquid.--To carry out this chapter (except 
for sections 60107 and 60114(b)) related to gas and hazardous liquid, 
there are authorized to be appropriated to the Department of 
Transportation--
            ``(1) $19,448,000 for fiscal year 1996;
            ``(2) $20,028,000 for fiscal year 1997, of which 
        $14,600,000 is to be derived from user fees for fiscal year 
        1997 collected under section 60301 of this title;
            ``(3) $20,729,000 for fiscal year 1998, of which 
        $15,100,000 is to be derived from user fees for fiscal year 
        1998 collected under section 60301 of this title;
            ``(4) $21,442,000 for fiscal year 1999, of which 
        $15,700,000 is to be derived from user fees for fiscal year 
        1999 collected under section 60301 of this title''; and
            ``(5) $22,194,000 for fiscal year 2000, of which 
        $16,300,000 is to be derived from user fees for fiscal year 
        2000 collected under section 60301 of this title.''.
    (b) State Grants.--Section 60125(c)(1) is amended by adding at the 
end the following:
            ``(D) $12,000,000 for fiscal year 1996.
            ``(E) $14,000,000 for fiscal year 1997, of which 
        $12,500,000 is to be derived from user fees for fiscal year 
        1997 collected under section 60301 of this title.
            ``(F) $14,490,000 for fiscal year 1998, of which 
        $12,900,000 is to be derived from user fees for fiscal year 
        1998 collected under section 60301 of this title.
            ``(G) $15,000,000 for fiscal year 1999, of which 
        $13,300,000 is to be derived from user fees for fiscal year 
        1999 collected under section 60301 of this title.
            ``(H) $15,524,000 for fiscal year 2000, of which 
        $13,700,000 is to be derived from user fees for fiscal year 
        2000 collected under section 60301 of this title.''.
```