IB 

Union Calendar No. 631 

114TH CONGRESS 

2D SESSION H. R. 4937 

[Report No. 114–807, Part I] 

To amend title 49, United States Code, to reauthorize pipeline safety 

programs and enhance pipeline safety, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 14, 2016 

Mr. DENHAM (for himself, Mr. CAPUANO, Mr. SHUSTER, and Mr. DEFAZIO) 

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

Transportation and Infrastructure, and in addition to the Committee on 

Energy and Commerce, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

NOVEMBER 14, 2016 

Reported from the Committee on Transportation and Infrastructure with an 

amendment 

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

NOVEMBER 14, 2016 

The Committee on Energy and Commerce discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be 

printed 

[For text of introduced bill, see copy of bill as introduced on April 14, 2016] 


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A BILL 

To amend title 49, United States Code, to reauthorize pipeline safety programs and enhance pipeline safety, and 

for other purposes. 


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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REF4 ERENCES. 

5 (a) SHORT TITLE.—This Act may be cited as the ‘‘Pro6 tecting our Infrastructure of Pipelines and Enhancing Safe7 ty Act of 2016’’ or the ‘‘PIPES Act of 2016’’. 

8 (b) TABLE OF CONTENTS.—The table of contents for 

9 this Act is as follows: 

Sec. 1. Short title; table of contents; references. 

Sec. 2. Authorization of appropriations. 

Sec. 3. Failure of PHMSA to implement statutory mandates. 

Sec. 4. Natural gas integrity management review. 

Sec. 5. Hazardous liquid integrity management review. 

Sec. 6. Technical safety standards committees. 

Sec. 7. Inspection report information. 

Sec. 8. Improving damage prevention technology. 

Sec. 9. Workforce management. 

Sec. 10. Information-sharing system. 

Sec. 11. Nationwide integrated pipeline safety regulatory database. 

Sec. 12. Underground natural gas storage facilities. 

Sec. 13. Joint inspection and oversight. 

Sec. 14. Safety data sheets. 

Sec. 15. Hazardous materials identification numbers. 

Sec. 16. Emergency order authority. 

Sec. 17. State grant funds. 

Sec. 18. Response plans. 

Sec. 19. High consequence areas. 

Sec. 20. Pipeline safety technical assistance grants. 

Sec. 21. Study of materials and corrosion prevention in pipeline transportation. 

Sec. 22. Research and development. 

Sec. 23. Active and abandoned pipelines. 

Sec. 24. State pipeline safety agreements. 

10 SEC. 2. AUTHORIZATION OF APPROPRIATIONS. 

11 (a) GAS AND HAZARDOUS LIQUID.—Section 60125(a) 

12 of title 49, United States Code is amended— 

13 (1) in paragraph (1) by striking ‘‘there is au14 thorized to be appropriated to the Department of 


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1 Transportation for each of fiscal years 2012 through 

2 2015, from fees collected under section 60301, 

3 $90,679,000, of which $4,746,000 is for carrying out 

4 such section 12 and $36,194,000 is for making 

5 grants.’’ and inserting the following: ‘‘there is author6 ized to be appropriated to the Department of Trans7 portation from fees collected under sections 60301 and 

8 60302— 

9 ‘‘(A) $124,500,000 for fiscal year 2016, of 

10 which $9,000,000 shall be expended for carrying 

11 out such section 12 and $39,385,000 shall be ex12 pended for making grants; 

13 ‘‘(B) $128,000,000 for fiscal year 2017 of 

14 which $9,000,000 shall be expended for carrying 

15 out such section 12 and $41,885,000 shall be ex16 pended for making grants; 

17 ‘‘(C) $131,000,000 for fiscal year 2018, of 

18 which $9,000,000 shall be expended for carrying 

19 out such section 12 and $44,885,000 shall be ex20 pended for making grants; and 

21 ‘‘(D) $134,000,000 for fiscal year 2019, of 

22 which $9,000,000 shall be expended for carrying 

23 out such section 12 and $47,885,000 shall be ex24 pended for making grants.’’; and 


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1 (2) in paragraph (2) by striking ‘‘there is au2 thorized to be appropriated for each of fiscal years 

3 2012 through 2015 from the Oil Spill Liability Trust 

4 Fund to carry out the provisions of this chapter re5 lated to hazardous liquid and section 12 of the Pipe6 line Safety Improvement Act of 2002 (49 U.S.C. 

7 60101 note; Public Law 107–355), $18,573,000, of 

8 which $2,174,000 is for carrying out such section 12 

9 and $4,558,000 is for making grants.’’ and inserting 

10 the following: ‘‘there is authorized to be appropriated 

11 from the Oil Spill Liability Trust Fund to carry out 

12 the provisions of this chapter related to hazardous liq13 uid and section 12 of the Pipeline Safety Improve14 ment Act of 2002 (49 U.S.C. 60101 note; Public Law 

15 107–355)— 

16 ‘‘(A) $22,123,000 for fiscal year 2016, of 

17 which $3,000,000 shall be expended for carrying 

18 out such section 12 and $8,067,000 shall be ex19 pended for making grants; 

20 ‘‘(B) $22,123,000 for fiscal year 2017, of 

21 which $3,000,000 shall be expended for carrying 

22 out such section 12 and $8,067,000 shall be ex23 pended for making grants; 

24 ‘‘(C) $23,000,000 for fiscal year 2018, of 

25 which $3,000,000 shall be expended for carrying 


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1 out such section 12 and $8,067,000 shall be ex2 pended for making grants; and 

3 ‘‘(D) $23,000,000 for fiscal year 2019, of 

4 which $3,000,000 shall be expended for carrying 

5 out such section 12 and $8,067,000 shall be ex6 pended for making grants.’’. 

7 (b) OPERATIONAL EXPENSES.—There are authorized 

8 to be appropriated to the Secretary of Transportation for 

9 the necessary operational expenses of the Pipeline and Haz10 ardous Materials Safety Administration the following 

11 amounts: 

12 (1) $21,000,000 for fiscal year 2016. 

13 (2) $22,000,000 for fiscal year 2017. 

14 (3) $22,000,000 for fiscal year 2018. 

15 (4) $23,000,000 for fiscal year 2019. 

16 (c) ONE-CALL NOTIFICATION PROGRAMS.— 

17 (1) IN GENERAL.—Section 6107 of title 49, 

18 United States Code, is amended to read as follows: 

19 ‘‘§ 6107. Funding 

20 ‘‘Of the amounts provided under section 60125(a)(1), 

21 the Secretary shall withhold $1,058,000 for each of fiscal 

22 years 2016 through 2019 to carry out section 6106.’’. 

23 (2) CLERICAL AMENDMENT.—The analysis for 

24 chapter 61 of title 49, United States Code, is amended 


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1 by striking the item relating to section 6107 and in2 serting the following: 

‘‘6107. Funding.’’. 

3 (d) PIPELINE SAFETY INFORMATION GRANTS TO COM4 MUNITIES.—The first sentence of section 60130(c) of title 

5 49, United States Code, is amended to read as follows: ‘‘Of 

6 the amounts made available under section 2(b) of the 

7 PIPES Act of 2016, the Secretary shall withhold $1,500,000 

8 for each of fiscal years 2016 through 2019 to carry out this 

9 section.’’ 

10 (e) PIPELINE INTEGRITY PROGRAM.—Section 12(f) of 

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

12 60101 note) is amended by striking ‘‘2012 through 2015’’ 

13 and inserting ‘‘2016 through 2019’’. 

14 SEC. 3. FAILURE OF PHMSA TO IMPLEMENT STATUTORY 

15 MANDATES. 

16 (a) REPORT BY THE INSPECTOR GENERAL.—Not later 

17 than 45 days after the date of enactment of this Act, the 

18 Inspector General of the Department of Transportation 

19 shall submit to the Secretary of Transportation, the Admin20 istrator of the Pipeline and Hazardous Materials Safety 

21 Administration, the Committee on Transportation and In22 frastructure and the Committee on Energy and Commerce 

23 of the House of Representatives, and the Committee on Com24 merce, Science, and Transportation of the Senate a report 

25 containing the following: 


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1 (1) A list of each statutory mandate contained in 

2 the Pipeline Safety, Regulatory Certainty, and Job 

3 Creation Act of 2011 (Public Law 112–90) that has 

4 not been implemented. 

5 (2) A list of each statutory mandate regarding 

6 pipeline safety from this Act and all other Acts en7 acted prior to the date of enactment of this Act, other 

8 than those contained in the Pipeline Safety, Regu9 latory Certainty, and Job Creation Act of 2011 (Pub10 lic Law 112–90), that has not been implemented. 

11 (b) REPORTS BY THE SECRETARY.— 

12 (1) STATUTORY MANDATES.—Not later than 90 

13 days after the date of enactment of this Act, and every 

14 90 days thereafter until each of the mandates listed 

15 pursuant to subsection (a) has been implemented, the 

16 Secretary shall submit to the Committee on Transpor17 tation and Infrastructure and the Committee on En18 ergy and Commerce of the House of Representatives 

19 and the Committee on Commerce, Science, and Trans20 portation of the Senate a report on the specific ac21 tions taken to implement such mandates. 

22 (2) PUBLIC AVAILABILITY.—The Secretary shall 

23 make the report referred to in paragraph (1) publicly 

24 available on the Department of Transportation’s 

25 Internet Web site. 


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1 (3) CONTENTS OF REPORTS.—The reports shall 

2 provide, for each mandate listed pursuant to sub3 section (a)— 

4 (A) a description of the mandate; 

5 (B) the deadline imposed for the mandate; 

6 (C) the status of the implementation of the 

7 mandate; 

8 (D) a detailed explanation of the reasons 

9 the mandate has not been implemented, includ10 ing a description of any actions taken by the Ad11 ministrator of the Pipeline and Hazardous Ma12 terials Safety Administration, the Office of the 

13 Secretary, or the Office of Management and 

14 Budget that delayed implementation of the man15 date; 

16 (E) an estimated completion date for the 

17 mandate; 

18 (F) the specific date on which any draft, in19 terim, or final guidance, advisory, report, ad20 vance notice of proposed rulemaking, notice of 

21 proposed rulemaking, final rule, or other docu22 ment required to implement the mandate was 

23 sent to the Secretary by the Administrator for re24 view and subsequently transmitted by the SecVerDate Sep 11 2014 00:10 Nov 15, 2016 Jkt 069200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H4937.RH H4937

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1 retary or the Administrator to the Office of Man2 agement and Budget; 

3 (G) a description of each concern with a 

4 document described under subparagraph (F) 

5 raised by the Secretary or the Office of Manage6 ment and Budget; and 

7 (H) the date and reasons the Secretary or 

8 the Office of Management and Budget requested 

9 any extension on acting on the mandate, includ10 ing an extension authorized by Executive Order 

11 12866. 

12 SEC. 4. NATURAL GAS INTEGRITY MANAGEMENT REVIEW. 

13 (a) REPORT.—Not later than 18 months after the pub14 lication of a final rule regarding the safety of gas trans15 mission pipelines related to the notice of proposed rule16 making issued on April 8, 2016, titled ‘‘Pipeline Safety: 

17 Safety of Gas Transmission and Gathering Pipelines’’ (81 

18 Fed. Reg. 20721), the Comptroller General of the United 

19 States shall submit to the Committee on Transportation 

20 and Infrastructure and the Committee on Energy and Com21 merce of the House of Representatives and the Committee 

22 on Commerce, Science, and Transportation of the Senate 

23 a report regarding the natural gas integrity management 

24 programs required under section 60109(c) of title 49, 

25 United States Code. 


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1 (b) CONTENTS.—The report required under subsection 

2 (a) shall include— 

3 (1) an analysis of the extent to which the nat4 ural gas integrity management programs required 

5 under section 60109(c) of title 49, United States Code, 

6 have improved the safety of natural gas transmission 

7 pipeline facilities; 

8 (2) an analysis and recommendations, taking 

9 into consideration technical, operational, and eco10 nomic feasibility, regarding changes to the programs 

11 to improve safety, prevent inadvertent releases from 

12 pipelines, and mitigate any adverse consequences of 

13 an inadvertent release, including changes to the defi14 nition of high consequence area, or expanding integ15 rity management beyond high consequence areas; 

16 (3) a review of the benefits, including safety ben17 efits, and cost effectiveness of the legacy class location 

18 regulations; 

19 (4) an analysis of, and recommendations regard20 ing, what impact pipeline features and conditions, 

21 including the age, condition, materials, and construc22 tion of a pipeline, have on safety and risk analysis 

23 of a particular pipeline; 

24 (5) a description of any challenges affecting Fed25 eral or State regulators in the oversight of natural gas 


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1 transmission pipeline facilities and how the chal2 lenges are being addressed; and 

3 (6) a description of any challenges affecting the 

4 natural gas industry in complying with the pro5 grams, and how the challenges are being addressed, 

6 including any challenges faced by publicly owned nat7 ural gas distribution systems. 

8 (c) DEFINITION OF HIGH CONSEQUENCE AREA.—In 

9 this section, the term ‘‘high consequence area’’ has the 

10 meaning given the term in section 192.903 of title 49, Code 

11 of Federal Regulations (as in effect on the date of enactment 

12 of this Act). 

13 SEC. 5. HAZARDOUS LIQUID INTEGRITY MANAGEMENT RE14 VIEW. 

15 (a) SAFETY STUDY.—Not later than 18 months after 

16 the publication of a final rule regarding the safety of haz17 ardous liquid pipeline facilities related to the notice of pro18 posed rulemaking issued on October 13, 2015, titled ‘‘Pipe19 line Safety: Safety of Hazardous Liquid Pipelines’’ (80 

20 Fed. Reg. 61610), the Comptroller General of the United 

21 States shall submit to the Committee on Transportation 

22 and Infrastructure and the Committee on Energy and Com23 merce of the House of Representatives and the Committee 

24 on Commerce, Science, and Transportation of the Senate 

25 a report regarding the hazardous liquid integrity manageVerDate Sep 11 2014 00:10 Nov 15, 2016 Jkt 069200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\H4937.RH H4937

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1 ment programs, as regulated under sections 195.450 and 

2 195.452 of title 49, Code of Federal Regulations. 

3 (b) CONTENTS.—The report required under subsection 

4 (a) shall include— 

5 (1) an analysis of the extent to which hazardous 

6 liquid pipeline facility integrity management in high 

7 consequence areas, as regulated under sections 

8 195.450 and 195.452 of title 49, Code of Federal Reg9 ulations, has improved the safety of hazardous liquid 

10 pipeline facilities; 

11 (2) an analysis and recommendations, taking 

12 into consideration technical, operational, and eco13 nomic feasibility, regarding changes to the programs 

14 to improve safety, prevent inadvertent releases from 

15 pipelines, and mitigate any adverse consequences of 

16 an inadvertent release, including changes to the defi17 nition of high consequence area; 

18 (3) an analysis of how surveying, assessment, 

19 mitigation, and monitoring activities, including real20 time hazardous liquid pipeline monitoring during 

21 significant flood events and information sharing with 

22 Federal agencies, are being used to address risks asso23 ciated with the dynamic and unique nature of rivers, 

24 flood plains, lakes, and coastal areas; 


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1 (4) an analysis of, and recommendations regard2 ing, what impact pipeline features and conditions, 

3 including the age, condition, materials, and construc4 tion of a pipeline, have on safety and risk analysis 

5 of a particular pipeline and what changes to the defi6 nition of high consequence area could be made to im7 prove pipeline safety; and 

8 (5) a description of any challenges affecting Fed9 eral or State regulators in the oversight of hazardous 

10 liquid pipeline facilities and how those challenges are 

11 being addressed. 

12 (c) DEFINITION OF HIGH CONSEQUENCE AREA.—In 

13 this section, the term ‘‘high consequence area’’ has the 

14 meaning given the term in section 195.450 of title 49, Code 

15 of Federal Regulations. 

16 SEC. 6. TECHNICAL SAFETY STANDARDS COMMITTEES. 

17 (a) APPOINTMENT OF MEMBERS.—Section 

18 60115(b)(4)(A) of title 49, United States Code, is amended 

19 by striking ‘‘State commissioners. The Secretary shall con20 sult with the national organization of State commissions 

21 before selecting those 2 individuals.’’ and inserting ‘‘State 

22 officials. The Secretary shall consult with national organi23 zations representing State commissioners or Governors be24 fore making a selection under this subparagraph.’’. 


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1 (b) VACANCIES.—Section 60115(b) of title 49, United 

2 States Code, is amended by adding at the end the following: 

3 ‘‘(5) Within 90 days of the date of enactment of the 

4 PIPES Act of 2016, the Secretary shall fill all vacancies 

5 on the Technical Pipeline Safety Standards Committee, the 

6 Technical Hazardous Liquid Pipeline Safety Standards 

7 Committee, and any other committee established pursuant 

8 to this section. After that period, the Secretary shall fill a 

9 vacancy on any such committee not later than 60 days after 

10 the vacancy occurs.’’. 

11 SEC. 7. INSPECTION REPORT INFORMATION. 

12 (a) IN GENERAL.—Not later than 90 days after the 

13 completion of a Pipeline and Hazardous Materials Safety 

14 Administration pipeline safety inspection, the Adminis15 trator of such Administration, or the State authority cer16 tified under section 60105 of title 49, United States Code, 

17 to conduct such inspection, shall— 

18 (1) conduct a post-inspection briefing with the 

19 owner or operator of the gas or hazardous liquid pipe20 line facility inspected outlining any concerns; and 

21 (2) to the extent practicable, provide the owner 

22 or operator with written preliminary findings of the 

23 inspection. 

24 (b) REPORT.—Not later than 1 year after the date of 

25 enactment of this Act, and annually thereafter for 2 years, 


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1 the Administrator shall submit to the Committee on Trans2 portation and Infrastructure and the Committee on Energy 

3 and Commerce of the House of Representatives and the 

4 Committee on Commerce, Science, and Transportation of 

5 the Senate a report that includes— 

6 (1) a description of the actions that the Pipeline 

7 and Hazardous Materials Safety Administration has 

8 taken to ensure that inspections by State authorities 

9 provide effective and timely oversight; and 

10 (2) statistics relating to the timeliness of the ac11 tions described in paragraphs (1) and (2) of sub12 section (a). 

13 SEC. 8. IMPROVING DAMAGE PREVENTION TECHNOLOGY. 

14 (a) STUDY.—The Comptroller General of the United 

15 States shall conduct a study on improving existing damage 

16 prevention programs through technological improvements 

17 in location, mapping, excavation, and communications 

18 practices to prevent excavation damage to a pipe or its 

19 coating. 

20 (b) CONTENTS.—The study under subsection (a) shall 

21 include— 

22 (1) an identification of any methods to improve 

23 existing damage prevention programs through loca24 tion and mapping practices or technologies in an ef25 fort to reduce releases caused by excavation; 


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1 (2) an analysis of how increased use of global 

2 positioning system digital mapping technologies, pre3 dictive analytic tools, public awareness initiatives in4 cluding one-call initiatives, the use of mobile devices, 

5 and other advanced technologies could supplement ex6 isting one-call notification and damage prevention 

7 programs to reduce the frequency and severity of inci8 dents caused by excavation damage; 

9 (3) an identification of any methods to improve 

10 excavation practices or technologies in an effort to re11 duce pipeline damage; 

12 (4) an analysis of the feasibility of a national 

13 data repository for pipeline excavation accident data 

14 that creates standardized data models for storing and 

15 sharing pipeline accident information; 

16 (5) an identification of opportunities for stake17 holder engagement in preventing excavation damage; 

18 and 

19 (6) recommendations, taking into consideration 

20 technical, operational, and economic feasibility, on 

21 how to incorporate technological improvements and 

22 practices that help prevent excavation damage into 

23 existing damage prevention programs. 

24 (c) REPORT.—Not later than 1 year after the date of 

25 the enactment of this Act, the Comptroller General shall 


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1 submit to the Committee on Commerce, Science, and Trans2 portation of the Senate and the Committee on Transpor3 tation and Infrastructure and the Committee on Energy 

4 and Commerce of the House of Representatives a report con5 taining the results of the study conducted under subsection 

6 (a). 

7 SEC. 9. WORKFORCE MANAGEMENT. 

8 Not later than 1 year after the date of the enactment 

9 of this Act, the Inspector General of the Department of 

10 Transportation shall submit to the Committee on Transpor11 tation and Infrastructure and the Committee on Energy 

12 and Commerce of the House of Representatives and the 

13 Committee on Commerce, Science, and Transportation of 

14 the Senate, a review of Pipeline and Hazardous Materials 

15 Safety Administration staff resource management, includ16 ing geographic allocation plans, hiring challenges, and ex17 pected retirement rates and strategies. The review shall in18 clude recommendations to address hiring challenges, train19 ing needs, and any other identified staff resource challenges. 

20 SEC. 10. INFORMATION-SHARING SYSTEM. 

21 (a) IN GENERAL.—Not later than 180 days after the 

22 date of the enactment of this Act, the Secretary of Transpor23 tation shall convene a working group to consider the devel24 opment of a voluntary information-sharing system to en25 courage collaborative efforts to improve inspection informaVerDate Sep 11 2014 00:10 Nov 15, 2016 Jkt 069200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6203 E:\BILLS\H4937.RH H4937

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1 tion feedback and information sharing with the purpose of 

2 improving natural gas transmission and hazardous liquid 

3 pipeline facility integrity risk analysis. 

4 (b) MEMBERSHIP.—The working group convened pur5 suant to subsection (a) shall include representatives from— 

6 (1) the Pipeline and Hazardous Materials Safety 

7 Administration; 

8 (2) industry stakeholders, including operators of 

9 pipeline facilities, inspection technology vendors, and 

10 pipeline inspection organizations; 

11 (3) safety advocacy groups; 

12 (4) research institutions; 

13 (5) State public utility commissions or State of14 ficials responsible for pipeline safety oversight; 

15 (6) State pipeline safety inspectors; and 

16 (7) labor representatives. 

17 (c) CONSIDERATIONS.—The working group convened 

18 pursuant to subsection (a) shall consider and provide rec19 ommendations to the Secretary on— 

20 (1) the need for, and the identification of, a sys21 tem to ensure that dig verification data are shared 

22 with in-line inspection operators to the extent con23 sistent with the need to maintain proprietary and se24 curity sensitive data in a confidential manner to im25 prove pipeline safety and inspection technology; 


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1 (2) ways to encourage the exchange of pipeline 

2 inspection information and the development of ad3 vanced pipeline inspection technologies and enhanced 

4 risk analysis; 

5 (3) opportunities to share data, including dig 

6 verification data between operators of pipeline facili7 ties and in-line inspector vendors to expand knowl8 edge of the advantages and disadvantages of the dif9 ferent types of in-line inspection technology and 

10 methodologies; 

11 (4) options to create a secure system that pro12 tects proprietary data while encouraging the exchange 

13 of pipeline inspection information and the develop14 ment of advanced pipeline inspection technologies and 

15 enhanced risk analysis; and 

16 (5) regulatory, funding, and legal barriers to 

17 sharing the information described in paragraphs (1) 

18 through (4). 

19 (d) PUBLICATION.—The Secretary shall publish the 

20 recommendations provided under subsection (c) on a pub21 licly available Web site of the Department of Transpor22 tation. 


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1 SEC. 11. NATIONWIDE INTEGRATED PIPELINE SAFETY REG2 ULATORY DATABASE. 

3 (a) ESTABLISHMENT.—Not later than 18 months after 

4 the date of enactment of this Act, the Secretary of Transpor5 tation shall establish a national integrated pipeline safety 

6 regulatory inspection database to improve communication 

7 and collaboration between the Pipeline and Hazardous Ma8 terials Safety Administration and State pipeline regu9 lators. 

10 (b) CONSIDERATIONS.—In developing the database, the 

11 Secretary shall consider— 

12 (1) any efforts underway to test a secure infor13 mation-sharing system for the purpose described in 

14 subsection (a); 

15 (2) any progress in establishing common stand16 ards for maintaining, collecting, and presenting pipe17 line safety regulatory inspection data, and a method18 ology for the sharing of the data; 

19 (3) any existing inadequacies or gaps in State 

20 and Federal inspection, enforcement, geospatial, or 

21 other pipeline safety regulatory inspection data; 

22 (4) the potential safety benefits of a national in23 tegrated pipeline database; and 

24 (5) recommendations of stakeholders for how to 

25 implement a secure information-sharing system that 

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1 tion and data for the purpose described in subsection 

2 (a). 

3 (c) CONSULTATION.—In implementing this section, the 

4 Secretary shall consult with stakeholders, including State 

5 authorities operating under a certification to regulate 

6 intrastate pipelines under section 60105 of title 49, United 

7 States Code. 

8 SEC. 12. UNDERGROUND NATURAL GAS STORAGE FACILI9 TIES. 

10 (a) DEFINED TERM.—Section 60101(a) of title 49, 

11 United States Code, is amended— 

12 (1) in paragraph (21)(B) by striking the period 

13 at the end and inserting a semicolon; 

14 (2) in paragraph (22)(B)(iii) by striking the pe15 riod at the end and inserting a semicolon; 

16 (3) in paragraph (24) by striking ‘‘and’’ at the 

17 end; 

18 (4) in paragraph (25) by striking the period at 

19 the end and inserting ‘‘; and’’; and 

20 (5) by adding at the end the following: 

21 ‘‘(26) ‘underground natural gas storage facility’ 

22 means a gas pipeline facility that stores gas in an 

23 underground facility, including— 

24 ‘‘(A) a depleted hydrocarbon reservoir; 

25 ‘‘(B) an aquifer reservoir; or 


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1 ‘‘(C) a solution-mined salt cavern res2 ervoir.’’. 

3 (b) STANDARDS FOR UNDERGROUND NATURAL GAS

4 STORAGE FACILITIES.—Chapter 601 of title 49, United 

5 States Code, is amended by adding at the end the following: 

6 ‘‘§ 60141. Standards for underground natural gas 

7 storage facilities 

8 ‘‘(a) MINIMUM SAFETY STANDARDS.—Not later than 

9 2 years after the date of enactment of the PIPES Act of 

10 2016, the Secretary, in consultation with the heads of other 

11 relevant Federal agencies, shall issue minimum safety 

12 standards for underground natural gas storage facilities. 

13 ‘‘(b) CONSIDERATIONS.—In developing the safety 

14 standards required under subsection (a), the Secretary 

15 shall, to the extent practicable— 

16 ‘‘(1) consider consensus standards for the oper17 ation, environmental protection, and integrity man18 agement of underground natural gas storage facilities; 

19 ‘‘(2) consider the economic impacts of the regula20 tions on individual gas customers; and 

21 ‘‘(3) ensure that the regulations do not have a 

22 significant economic impact on end users. 

23 ‘‘(c) RULES OF CONSTRUCTION.— 

24 ‘‘(1) IN GENERAL.—Nothing in this section may 

25 be construed to affect any Federal regulation relating 


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1 to gas pipeline facilities that is in effect on the day 

2 before the date of enactment of the PIPES Act of 

3 2016. 

4 ‘‘(2) LIMITATIONS.—Nothing in this section may 

5 be construed to authorize the Secretary— 

6 ‘‘(A) to prescribe the location of an under7 ground natural gas storage facility; or 

8 ‘‘(B) to require the Secretary’s permission 

9 to construct a facility referred to in subpara10 graph (A). 

11 ‘‘(d) PREEMPTION.—A State authority may adopt ad12 ditional or more stringent safety standards for intrastate 

13 underground natural gas storage facilities if such standards 

14 are compatible with the minimum standards prescribed 

15 under this section.’’. 

16 (c) USER FEES.—Chapter 603 of title 49, United 

17 States Code, is amended by inserting after section 60301 

18 the following: 

19 ‘‘§ 60302. User fees for underground natural gas stor20 age facilities 

21 ‘‘(a) IN GENERAL.—A fee shall be imposed on an enti22 ty operating an underground natural gas storage facility 

23 pursuant to section 60141. Any such fee imposed shall be 

24 collected before the end of the fiscal year to which it applies. 


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1 ‘‘(b) MEANS OF COLLECTION.—The Secretary of 

2 Transportation shall prescribe procedures to collect fees 

3 under this section. The Secretary may use a department, 

4 agency, or instrumentality of the United States Government 

5 or of a State or local government to collect the fee and may 

6 reimburse the department, agency, or instrumentality a 

7 reasonable amount for its services. 

8 ‘‘(c) USE OF FEES.— 

9 ‘‘(1) ACCOUNT.—There is established an Under10 ground Natural Gas Storage Facility Safety Account 

11 in the Pipeline Safety Fund established in the Treas12 ury of the United States under section 60301. 

13 ‘‘(2) USE OF FEES.—A fee collected under this 

14 section— 

15 ‘‘(A) shall be deposited in the Underground 

16 Natural Gas Storage Facility Safety Account; 

17 and 

18 ‘‘(B) if the fee is related to an underground 

19 natural gas storage facility pursuant to section 

20 60141, the amount of the fee may be used only 

21 for an activity related to underground natural 

22 gas storage safety. 

23 ‘‘(3) LIMITATION.—Amounts collected under this 

24 section shall be made available only to the extent pro25 vided in advance in an appropriations Act for an acVerDate Sep 11 2014 00:10 Nov 15, 2016 Jkt 069200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6203 E:\BILLS\H4937.RH H4937

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1 tivity related to underground natural gas storage 

2 safety.’’. 

3 (d) CLERICAL AMENDMENTS.— 

4 (1) CHAPTER 601.—The table of sections for 

5 chapter 601 of title 49, United States Code, is amend6 ed by adding at the end the following: 

‘‘60141. Standards for underground natural gas storage facilities.’’. 

7 (2) CHAPTER 603.—The table of sections for 

8 chapter 603 of title 49, United States Code, is amend9 ed by inserting after the item relating to section 

10 60301 the following: 

‘‘60302. User fees for underground natural gas storage facilities.’’. 

11 SEC. 13. JOINT INSPECTION AND OVERSIGHT. 

12 Section 60105 of title 49, United States Code, is 

13 amended by adding at the end the following: 

14 ‘‘(g) JOINT INSPECTORS.—At the request of a State au15 thority, the Secretary shall allow for a certified State au16 thority under this section to participate in the inspection 

17 of an interstate pipeline facility.’’. 

18 SEC. 14. SAFETY DATA SHEETS. 

19 (a) IN GENERAL.—Each owner or operator of a haz20 ardous liquid pipeline facility, following an accident or in21 cident involving such pipeline facility, shall provide safety 

22 data sheets on any spilled oil to the designated Federal On23 Scene Coordinator and appropriate State officials within 


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1 6 hours of a telephonic or electronic notice of the accident 

2 or incident to the National Response Center. 

3 (b) DEFINITIONS.—In this section: 

4 (1) FEDERAL ON-SCENE COORDINATOR.—The 

5 term ‘‘Federal On-Scene Coordinator’’ has the mean6 ing given such term in section 311(a) of the Federal 

7 Water Pollution Control Act (33 U.S.C. 1321(a)). 

8 (2) NATIONAL RESPONSE CENTER.—The term 

9 ‘‘National Response Center’’ means the center de10 scribed under section 300.125(a) of title 40, Code of 

11 Federal Regulations. 

12 (3) SAFETY DATA SHEET.—The term ‘‘safety 

13 data sheet’’ means a safety data sheet required under 

14 section 1910.1200 of title 29, Code of Federal Regula15 tions. 

16 SEC. 15. HAZARDOUS MATERIALS IDENTIFICATION NUM17 BERS. 

18 Not later than 90 days after the date of enactment of 

19 this Act, the Secretary of Transportation shall issue an ad20 vanced notice of proposed rulemaking to take public com21 ment on the petition for rulemaking dated October 28, 2015, 

22 titled ‘‘Corrections to Title 49 C.F.R. §172.336 Identifica23 tion numbers; special provisions’’ (P–1667). 


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1 SEC. 16. EMERGENCY ORDER AUTHORITY. 

2 Section 60117 of title 49, United States Code, is 

3 amended by adding at the end the following: 

4 ‘‘(o) EMERGENCY ORDER AUTHORITY.— 

5 ‘‘(1) IN GENERAL.—If the Secretary determines 

6 that an unsafe condition or practice, or a combina7 tion of unsafe conditions and practices, constitutes or 

8 is causing an imminent hazard, the Secretary may 

9 issue an emergency order described in paragraph (3) 

10 imposing emergency restrictions, prohibitions, and 

11 safety measures on owners and operators of gas or 

12 hazardous liquid pipeline facilities without prior no13 tice or an opportunity for a hearing, but only to the 

14 extent necessary to abate the imminent hazard. 

15 ‘‘(2) CONSIDERATIONS.—Before issuing an emer16 gency order under paragraph (1), the Secretary shall 

17 consider, after consultation with appropriate Federal 

18 agencies, State agencies, or other entities, the fol19 lowing, as appropriate: 

20 ‘‘(A) The impact of the emergency order on 

21 public health and safety. 

22 ‘‘(B) The impact, if any, of the emergency 

23 order on the national or regional economy or na24 tional security. 

25 ‘‘(C) The impact of the emergency order on 

26 owners and operators of pipeline facilities. 


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1 ‘‘(3) WRITTEN ORDER.—An emergency order 

2 issued by the Secretary pursuant to paragraph (1) 

3 with respect to an imminent hazard shall contain a 

4 written description of— 

5 ‘‘(A) the violation, condition, or practice 

6 that constitutes or is causing the imminent haz7 ard; 

8 ‘‘(B) the entities subject to the order; 

9 ‘‘(C) the restrictions, prohibitions, or safety 

10 measures imposed; 

11 ‘‘(D) the standards and procedures for ob12 taining relief from the order; 

13 ‘‘(E) how the order is tailored to abate the 

14 imminent hazard and the reasons the authorities 

15 under section 60112 and 60117(l) are insuffi16 cient to do so; and 

17 ‘‘(F) how the considerations were taken into 

18 account pursuant to subsection (2). 

19 ‘‘(4) OPPORTUNITY FOR REVIEW.—Upon receipt 

20 of a petition for review from an entity subject to, and 

21 adversely affected by, an emergency order issued 

22 under this subsection, the Secretary shall provide an 

23 opportunity for a review of the order under section 

24 554 of title 5 to determine whether the order should 

25 remain in effect, be modified, or be terminated. 


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1 ‘‘(5) EXPIRATION OF EFFECTIVENESS ORDER.— 

2 If a petition for review of an emergency order is filed 

3 under paragraph (4) and an agency decision with re4 spect to the petition is not issued on or before the last 

5 day of the 30-day period beginning on the date on 

6 which the petition is filed, the order shall cease to be 

7 effective on such day, unless the Secretary determines 

8 in writing on or before the last day of such period 

9 that the imminent hazard still exists. 

10 ‘‘(6) JUDICIAL REVIEW OF ORDERS.—After a 

11 final agency action under the review process described 

12 in paragraph (4), or the issuance of a written deter13 mination by the Secretary pursuant to paragraph 

14 (5), an entity subject to, and adversely affected by, an 

15 emergency order issued under this subsection may 

16 seek judicial review of the order in a district court of 

17 the United States and shall be given expedited consid18 eration. 

19 ‘‘(7) REGULATIONS.— 

20 ‘‘(A) TEMPORARY REGULATIONS.—Not later 

21 than 60 days after the date of enactment of the 

22 PIPES Act of 2016, the Secretary shall issue 

23 such temporary regulations as are necessary to 

24 carry out this subsection. The temporary regula25 tions shall expire on the date of issuance of the 


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1 final regulations required under subparagraph 

2 (B). 

3 ‘‘(B) FINAL REGULATIONS.—Not later than 

4 270 days after such date of enactment, the Sec5 retary shall issue such regulations as are nec6 essary to carry out this subsection. Such regula7 tions shall ensure that the review process de8 scribed in paragraph (4) contains the same pro9 cedures as subsections (d) and (g) of section 

10 109.19 of title 49, Code of Federal Regulations, 

11 and is otherwise consistent with the review proc12 ess developed under such section, to the greatest 

13 extent practicable and not inconsistent with this 

14 section. 

15 ‘‘(8) IMMINENT HAZARD DEFINED.—In this sub16 section, the term ‘imminent hazard’ means the exist17 ence of a condition relating to a gas or hazardous liq18 uid pipeline facility that presents a substantial likeli19 hood that death, serious illness, severe personal in20 jury, or a substantial endangerment to health, prop21 erty, or the environment may occur before the reason22 ably foreseeable completion date of a formal pro23 ceeding begun to lessen the risk of such death, illness, 

24 injury, or endangerment. 


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1 ‘‘(9) LIMITATION AND SAVINGS CLAUSE.—An 

2 emergency order issued under this subsection may not 

3 be construed to— 

4 ‘‘(A) alter, amend, or limit the Secretary’s 

5 obligations under, or the applicability of, section 

6 553 of title 5; or 

7 ‘‘(B) provide the authority to amend the 

8 Code of Federal Regulations.’’. 

9 SEC. 17. STATE GRANT FUNDS. 

10 (a) PAYMENTS.—Section 60107(b) of title 49, United 

11 States Code, is amended to read as follows: 

12 ‘‘(b) PAYMENTS.—After notifying and consulting with 

13 a State authority, the Secretary may withhold any part 

14 of a payment when the Secretary decides that the authority 

15 is not carrying out satisfactorily a safety program or not 

16 acting satisfactorily as an agent. The Secretary may pay 

17 an authority under this section only when the authority 

18 ensures the Secretary that it will provide the remaining 

19 costs of a safety program, unless the Secretary waives the 

20 requirement to provide such remaining costs.’’. 

21 (b) REPURPOSING OF FUNDS.—Section 60107 is 

22 amended by adding at the end the following: 

23 ‘‘(e) REPURPOSING OF FUNDS.—If a State program’s 

24 certification is rejected under section 60105(f) or such pro25 gram is otherwise suspended or interrupted, the Secretary 


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1 may use any undistributed, deobligated, or recovered funds 

2 authorized under this section to carry out pipeline safety 

3 activities for that State within the period of availability 

4 for such funds.’’. 

5 SEC. 18. RESPONSE PLANS. 

6 Each owner or operator of a hazardous liquid pipeline 

7 facility required to prepare a response plan pursuant to 

8 part 194 of title 49, Code of Federal Regulations, shall con9 sider the impact of a discharge into or on navigable waters 

10 or adjoining shorelines, including those that may be covered 

11 in whole or in part by ice. 

12 SEC. 19. HIGH CONSEQUENCE AREAS. 

13 The Secretary of Transportation shall revise section 

14 195.6(b) of title 49, Code of Federal Regulations, to explic15 itly state that the Great Lakes and any marine coastal 

16 waters (including coastal estuaries) are USA ecological re17 sources for purposes of determining whether a pipeline is 

18 in a high consequence area (as defined in section 195.450 

19 of such title). 

20 SEC. 20. PIPELINE SAFETY TECHNICAL ASSISTANCE 

21 GRANTS. 

22 (a) PUBLIC PARTICIPATION LIMITATION.—Section 

23 60130(a)(4) of title 49, United States Code, is amended by 

24 inserting ‘‘on technical pipeline safety issues’’ after ‘‘public 

25 participation’’. 


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1 (b) REPORT.—Not later than 180 days after the date 

2 of enactment of this Act, the Inspector General of the De3 partment of Transportation shall submit to the Secretary 

4 of Transportation and the Committee on Transportation 

5 and Infrastructure and the Committee on Energy and Com6 merce of the House of Representatives and the Committee 

7 on Commerce, Science, and Transportation of the Senate 

8 a report evaluating the grant program under section 60130 

9 of title 49, United States Code. The report shall include— 

10 (1) a list of the recipients of all grant funds dur11 ing fiscal years 2010 through 2015; 

12 (2) a description of how each grant was used; 

13 (3) an analysis of the compliance with the terms 

14 of grant agreements, including subsections (a) and (b) 

15 of such section; 

16 (4) an evaluation of the competitive process used 

17 to award the grant funds; and 

18 (5) an evaluation of— 

19 (A) the ability of the Pipeline and Haz20 ardous Materials Safety Administration to over21 see grant funds and usage; and 

22 (B) the procedures used for such oversight. 


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1 SEC. 21. STUDY OF MATERIALS AND CORROSION PREVEN2 TION IN PIPELINE TRANSPORTATION. 

3 (a) IN GENERAL.—Not later than 2 years after the 

4 date of enactment of the PIPES Act of 2016, the Comp5 troller General of the United States shall submit to the Com6 mittee on Transportation and Infrastructure and the Com7 mittee on Energy and Commerce of the House of Represent8 atives and the Committee on Commerce, Science, and 

9 Transportation of the Senate a study on materials, train10 ing, and corrosion prevention technologies used in pipeline 

11 transportation. 

12 (b) REQUIREMENTS.—The study required under sub13 section (a) shall include— 

14 (1) the range of piping materials, including 

15 plastic materials, used to transport hazardous liquids 

16 and natural gas in the United States and in other de17 veloped countries around the world; 

18 (2) the types of technologies used for corrosion 

19 prevention; 

20 (3) an evaluation of the adequacy of training 

21 provided to personnel responsible for identifying and 

22 preventing corrosion in pipelines, and for repairing 

23 such pipelines; and 

24 (4) an analysis of the costs and benefits, includ25 ing safety benefits, associated with the use of such 

26 materials and technologies. 


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1 SEC. 22. RESEARCH AND DEVELOPMENT. 

2 (a) IN GENERAL.—Not later than 2 years after the 

3 date of enactment of this Act, the Comptroller General of 

4 the United States shall submit to the Committee on Trans5 portation and Infrastructure and the Committee on Energy 

6 and Commerce of the House of Representatives and the 

7 Committee on Commerce, Science, and Transportation of 

8 the Senate a report regarding the Pipeline and Hazardous 

9 Materials Safety Administration’s research and develop10 ment program established under section 12 of the Pipeline 

11 Safety Improvement Act of 2002 (49 U.S.C. 60101 note). 

12 The report shall include an evaluation of— 

13 (1) compliance with the consultation requirement 

14 under subsection (d)(2) of such section; 

15 (2) the extent to which the Pipeline and Haz16 ardous Materials Administration enters into joint re17 search ventures with Federal and non-Federal enti18 ties, and benefits thereof; 

19 (3) the policies and procedures the Pipeline and 

20 Hazardous Materials Safety Administration has put 

21 in place to ensure there are no conflicts of interest 

22 with administering grants to grantees under the pro23 gram, and whether those policies and procedures are 

24 being followed; and 

25 (4) an evaluation of the outcomes of research 

26 conducted with Federal and non-Federal entities and 


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1 the degree to which such outcomes have been adopted 

2 or utilized. 

3 (b) COLLABORATIVE SAFETY RESEARCH REPORT.— 

4 (1) BIENNIAL REPORTS.—Section 60124(a)(6) of 

5 title 49, United States Code, is amended— 

6 (A) in subparagraph (A), by striking ‘‘and’’ 

7 at the end; 

8 (B) in subparagraph (B), by striking the 

9 period at the end and inserting ‘‘; and’’; and 

10 (C) by adding at the end the following: 

11 ‘‘(C) a summary of each research project 

12 carried out with Federal and non-Federal enti13 ties pursuant to section 12 of the Pipeline Safety 

14 Improvement Act of 2002 and a review of how 

15 intended improvements impact safety.’’. 

16 (2) PIPELINE SAFETY IMPROVEMENT ACT.—Sec17 tion 12 of the Pipeline Safety Improvement Act of 

18 2002 (49 U.S.C. 60101 note) is amended— 

19 (A) in subsection (d)(3)(C)— 

20 (i) by striking ‘‘program-wide’’ and 

21 inserting ‘‘technology’’; 

22 (ii) by striking ‘‘are’’ and inserting 

23 ‘‘may be’’; 

24 (iii) by striking ‘‘The Secretary’’ and 

25 inserting ‘‘(i) The Secretary’’; and 


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1 (iv) by adding at the end the following: 

2 ‘‘(ii) at least 20 percent of the costs of basic 

3 research and development with universities may 

4 be carried out using non-Federal sources; and 

5 ‘‘(iii) up to 100 percent of the costs of re6 search and development for purely governmental 

7 purposes may be carried out using Federal 

8 funds.’’; and 

9 (B) by adding at the end the following: 

10 ‘‘(h) INDEPENDENT EXPERTS.—Not later than 180 

11 days after the date of enactment of the PIPES Act of 2016, 

12 the Secretary shall— 

13 ‘‘(1) implement processes and procedures to en14 sure that projects listed under subsection (c), to the 

15 greatest extent practicable, produce results that are 

16 factual and peer-reviewed by independent experts and 

17 not with persons or entities that have a financial in18 terest in the pipeline, petroleum, or natural gas in19 dustries, or that would be directly impacted by the re20 sults of the projects; and 

21 ‘‘(2) submit to the Committee on Transportation 

22 and Infrastructure and the Committee on Energy and 

23 Commerce of the House of Representatives and the 

24 Committee on Commerce, Science, and Transpor25 tation of the Senate a report on the implementation 


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1 of the processes and procedures required under para2 graph (1). 

3 ‘‘(i) CONFLICT OF INTEREST.—The Secretary shall 

4 take all practical steps to ensure that each recipient of an 

5 agreement under this section discloses in writing to the Sec6 retary any conflict of interest on a research and develop7 ment project carried out under this section, and includes 

8 any such disclosure as part of the final deliverable pursuant 

9 to such agreement. The Secretary may not make an award 

10 under this section directly to a pipeline owner or operator 

11 that is regulated by the Pipeline and Hazardous Materials 

12 Safety Administration or a State-certified regulatory au13 thority.’’. 

14 SEC. 23. ACTIVE AND ABANDONED PIPELINES. 

15 Not later than 90 days after the date of enactment of 

16 this Act, the Secretary of Transportation shall issue formal 

17 guidance to owners and operators of gas or hazardous liquid 

18 pipeline facilities and applicable State regulatory authori19 ties regarding the actions, including those required by Fed20 eral regulation, required to change the status of a pipeline 

21 facility from active to abandoned, including specific guid22 ance on the definition of each pipeline status referred to 

23 in such formal guidance. 


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1 SEC. 24. STATE PIPELINE SAFETY AGREEMENTS. 

2 (a) STUDY.—Not later than 2 years after the date of 

3 enactment of this Act, the Comptroller General of the United 

4 States shall complete a study on State pipeline safety agree5 ments made pursuant to section 60106 of title 49, United 

6 States Code. Such study shall consider the following: 

7 (1) The integration of Federal and State or local 

8 authorities in carrying out activities pursuant to an 

9 agreement under such section. 

10 (2) The overall cost of Federal and State au11 thorities carrying out inspection activities pursuant 

12 to agreements under such section. 

13 (3) The overall cost of the Pipeline and Haz14 ardous Materials Safety Administration carrying out 

15 interstate inspections without the existence of inter16 state agreements with the States pursuant to such sec17 tion. 

18 (b) NOTICE REQUIREMENT FOR DENIAL.—Section 

19 60106(b) of title 49, United States Code, is amended by 

20 adding at the end the following: 

21 ‘‘(4) NOTICE UPON DENIAL.—If a State author22 ity requests an interstate agreement under this section 

23 and the Secretary denies such request, the Secretary 

24 shall provide written notification to the State author25 ity of the denial that includes an explanation of the 

26 reasons for such denial.’’. 


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Union Calendar No. 631 

114TH CONGRESS 

2D SESSION H. R. 4937 

[Report No. 114–807, Part I] 

A BILL 

To amend title 49, United States Code, to reaupipeline safety, and for other purposes. thorize pipeline safety programs and enhance 

NOVEMBER 14, 2016 

Reported from the Committee on Transportation and 

Infrastructure with an amendment 

NOVEMBER 14, 2016 

The Committee on Energy and Commerce discharged; 

the State of the Union and ordered to be printed committed to the Committee of the Whole House on 


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