II 

109TH CONGRESS 

2D SESSION S. 3961 

To provide for enhanced safety in pipeline transportation, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 27, 2006 

Mr. STEVENS (for himself, Mr. INOUYE, Mr. LOTT, and Mr. LAUTENBERG) 

introduced the following bill; which was read twice and referred to the 

Committee on Commerce, Science, and Transportation 

A BILL 

To provide for enhanced safety in pipeline transportation, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Pipeline Inspection, Protection, Enforcement, and Safety 

6 Act of 2006’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Amendment of title 49. 

Sec. 3. Low-stress pipelines. 

Sec. 4. Pipeline safety and damage prevention. 


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Sec. 5. Damage prevention technology development. 

Sec. 6. Safety orders. 

Sec. 7. Integrity program enforcement. 

Sec. 8. Technical assistance grants. 

Sec. 9. Enforcement transparency. 

Sec. 10. Direct line sales. 

Sec. 11. Gas distribution integrity management program rulemaking deadline. 

Sec. 12. Standards to implement NTSB recommendations. 

Sec. 13. Coordination in the construction and expansion of hazardous liquid 

pipelines. 

Sec. 14. Cost recovery for design reviews. 

Sec. 15. Human factors risk management rulemaking. 

Sec. 16. Emergency preparedness. 

Sec. 17. Public education and awareness. 

Sec. 18. Safety technology and corrosion research and development. 

Sec. 19. Cost recovery for extraordinary events. 

Sec. 20. Senior executive signature of integrity management program performance reports. 

Sec. 21. Leak detection technology study. 

Sec. 22. Study of pipeline regulatory adequacy. 

Sec. 23. Pipeline security inspections and enforcement. 

Sec. 24. Pipeline security and incident recovery plan. 

Sec. 25. Technical assistance program. 

Sec. 26. Authorization of appropriations. 

1 SEC. 2. AMENDMENT OF TITLE 49. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or a repeal of, a section or other 

5 provision, the reference shall be considered to be made to 

6 a section or other provision of title 49, United States 

7 Code. 

8 SEC. 3. LOW-STRESS PIPELINES. 

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

10 ‘‘(k) LOW-STRESS HAZARDOUS LIQUID PIPE11 LINES.— 

12 ‘‘(1) MINIMUM STANDARDS.—Not later than 12 

13 months after the date of enactment of the Pipeline 

14 Inspection, Protection, Enforcement, and Safety Act 


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1 of 2006, the Secretary shall issue regulations sub2 jecting low-stress hazardous liquid pipelines to the 

3 same standards and regulations as other hazardous 

4 liquid pipelines, except as provided in paragraph (3). 

5 The implementation of the applicable standards and 

6 regulatory requirements may be phased-in. The reg7 ulations issued under this paragraph shall not apply 

8 to gathering lines. 

9 ‘‘(2) GENERAL PROHIBITION AGAINST LOW IN10 TERNAL STRESS EXCEPTION.—Except as provided in 

11 paragraph (3), the Secretary may not provide an ex12 ception to the requirements of this chapter for a 

13 hazardous liquid pipeline because the pipeline oper14 ates at low internal stress. 

15 ‘‘(3) LIMITED EXCEPTIONS.—The Secretary 

16 shall provide or continue in force exceptions from 

17 regulations, other than regulations pertaining to in18 cident reports and the national pipeline mapping 

19 system, to this subsection for low-stress hazardous 

20 liquid pipelines that— 

21 ‘‘(A) are subject to safety regulations of 

22 the United States Coast Guard; or 

23 ‘‘(B) serve refining, manufacturing, or 

24 truck, rail, or vessel terminal facilities, if the 

25 pipeline is less than 1 mile long (measured outVerDate Aug 31 2005 00:36 Sep 29, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3961.IS S3961

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1 side the facility grounds) and does not cross an 

2 offshore area or a waterway currently used for 

3 commercial navigation, 

4 until regulations issued under paragraph (1) take ef5 fect, after which the Secretary may retain or remove 

6 those exceptions as appropriate. 

7 ‘‘(4) RELATIONSHIP TO OTHER LAWS.—Noth8 ing in this subsection shall be construed to prohibit 

9 or otherwise affect the applicability of any other 

10 statutory or regulatory exemption to any hazardous 

11 liquid pipeline. 

12 ‘‘(5) DEFINITION.—For purposes of this sub13 section, the term ‘low-stress hazardous liquid pipe14 line’ means a hazardous liquid pipeline that is oper15 ated in its entirety at a stress level of 20 percent or 

16 less of the specified minimum yield strength of the 

17 line pipe. 

18 ‘‘(6) EFFECTIVE DATE.—The requirements of 

19 this subsection shall not take effect as to low-stress 

20 hazardous liquid pipeline operators before the effec21 tive date of the rules promulgated by the Secretary 

22 under this subsection.’’. 

23 SEC. 4. PIPELINE SAFETY AND DAMAGE PREVENTION. 

24 (a) ONE-CALL CIVIL ENFORCEMENT.— 


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1 (1) IN GENERAL.—Section 60114 is amended 

2 by adding at the end the following: 

3 ‘‘(d) PROHIBITIONS APPLICABLE TO EXCAVATION

4 ACTIVITIES.— 

5 ‘‘(1) EXCAVATORS.—A person who engages in 

6 excavation activity— 

7 ‘‘(A) may not engage in that activity in a 

8 State that has adopted a one-call notification 

9 system without first using that system to estab10 lish the location of underground facilities in the 

11 excavation area; 

12 ‘‘(B) may not engage in that activity in 

13 disregard of location information or markings 

14 established by a pipeline facility operator pursu15 ant to subsection (b); 

16 ‘‘(C) may not fail to take reasonable steps 

17 to ensure safe excavation to prevent damage to 

18 a pipeline; and 

19 ‘‘(D) who damages, or becomes aware of 

20 damage to, a pipeline facility and such damage 

21 may endanger life or cause serious bodily harm 

22 or damage to property, may not fail to promptly 

23 report the damage to the owner or operator of 

24 the facility and, if the damage results in the es25 cape of any flammable, toxic, or corrosive gas 


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1 or liquid, may not fail to promptly report to ap2 propriate emergency authorities. 

3 ‘‘(2) OPERATORS.—An operator of a pipeline 

4 facility that fails— 

5 ‘‘(A) to respond to a location request in 

6 order to prevent damage to the pipeline, 

7 ‘‘(B) to take reasonable steps in response 

8 to such a request, or 

9 ‘‘(C) to ensure accurate marking of the lo10 cation of the pipeline in order to prevent dam11 age to the pipeline, 

12 shall be subject to a civil action under section 60120 

13 or assessment of a civil penalty under section 

14 60122.’’. 

15 (2) EXCAVATION AND EXCAVATION AREA DE16 FINED.—Section 60101(a) is amended— 

17 (A) by redesignating paragraphs (1) 

18 through (25) as paragraphs (3) through (27); 

19 and 

20 (B) by inserting before paragraph (3), as 

21 redesignated, the following: 

22 ‘‘(1) ‘excavation activity’ means demolition, ex23 cavation, tunneling, or construction in an excavation 

24 area; 


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1 ‘‘(2) ‘excavation area’ means an excavation ac2 tivity area as defined by State law;’’. 

3 (3) CONFORMING AMENDMENT.—Section 

4 60122(a)(1) is amended by striking ‘‘60114(b)’’ and 

5 inserting ‘‘60114(b) or (d)’’. 

6 (b) STATE DAMAGE PREVENTION PROGRAMS.— 

7 (1) Section 60105(b)(4) is amended to read as 

8 follows: 

9 ‘‘(4) has agreed to promote and take actions to 

10 establish a program designed to prevent damage by 

11 excavation activity to the pipeline facilities to which 

12 the certification applies that— 

13 ‘‘(A) subjects persons who violate the ap14 plicable requirements of that program to civil 

15 penalties and other enforcement actions that 

16 are substantially the same as are provided 

17 under this chapter; and 

18 ‘‘(B) addresses the elements in section 

19 60134(b);’’. 

20 (2) REQUIREMENT.—Chapter 601 is amended 

21 by adding at the end the following new section: 

22 ‘‘§ 60134. State damage prevention programs 

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

24 to a State authority (including a municipality with respect 

25 to intrastate gas pipeline transportation) to assist in imVerDate Aug 31 2005 00:36 Sep 29, 2006 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3961.IS S3961

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1 proving the overall quality and effectiveness of a damage 

2 prevention program of the State authority under sub3 section (e) if the State authority— 

4 ‘‘(1)(A) has an annual certification in accord5 ance with section 60105 for such fiscal year; or 

6 ‘‘(B) has an agreement with the Secretary in 

7 accordance with section 60106; and 

8 ‘‘(2) has an effective damage prevention pro9 gram that meets the requirements of subsection (b). 

10 ‘‘(b) DAMAGE PREVENTION PROGRAM ELEMENTS.— 

11 An effective damage prevention program includes the fol12 lowing elements: 

13 ‘‘(1) Participation by operators, excavators, and 

14 other stakeholders in the development and imple15 mentation of methods for establishing and maintain16 ing effective communications between stakeholders 

17 from receipt of an excavation notification until suc18 cessful completion of the excavation, as appropriate. 

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

20 support and partnership of stakeholders, including 

21 excavators, operators, locators, designers, and local 

22 government in all phases of the program. 

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

24 pipeline operator’s internal performance measures 


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1 regarding persons performing locating services and 

2 quality assurance programs. 

3 ‘‘(4) Participation by operators, excavators, and 

4 other stakeholders in the development and imple5 mentation of effective employee training programs to 

6 ensure that operators, the one-call center, the en7 forcing agency, and the excavators have partnered to 

8 design and implement training for the employees of 

9 operators, excavators, and locators. 

10 ‘‘(5) A process for fostering and ensuring active 

11 participation by all stakeholders in public education 

12 for damage prevention activities. 

13 ‘‘(6) A process for resolving disputes that de14 fines the State authority’s role as a partner and 

15 facilitator to resolve issues. 

16 ‘‘(7) Enforcement of State damage prevention 

17 laws and regulations for all aspects of the damage 

18 prevention process, including public education, and 

19 the use of civil penalties for violations assessable by 

20 the appropriate State authority. 

21 ‘‘(8) A process for fostering and promoting the 

22 use, by all appropriate stakeholders, of improving 

23 technologies that may enhance communications, un24 derground pipeline locating capability, and gathering 


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1 and analyzing information about the accuracy and 

2 effectiveness of locating programs. 

3 ‘‘(9) A process for review and analysis of the ef4 fectiveness of each program element, including a 

5 means for implementing improvements identified by 

6 such program reviews. 

7 ‘‘(c) FACTORS TO CONSIDER.—In making grants 

8 under this section, the Secretary shall take into consider9 ation the commitment of each State to ensuring the effec10 tiveness of its damage prevention program, including legis11 lative and regulatory actions taken by the State. 

12 ‘‘(d) APPLICATION.—If a State authority files an ap13 plication for a grant under this section not later than Sep14 tember 30 of a calendar year and demonstrates that the 

15 Governor (or chief executive) of the State has designated 

16 it as the appropriate State authority to receive the grant, 

17 the Secretary shall review the State’s damage prevention 

18 program to determine its effectiveness. 

19 ‘‘(e) GRANTS FOR EFFECTIVE PROGRAMS.—For a 

20 program of a State authority the Secretary determines to 

21 be effective, the Secretary may make a grant to the State 

22 authority for the cost of the personnel, equipment, and 

23 activities the State authority reasonably requires during 

24 the next calendar year to carry out its damage prevention 

25 program in accordance with subsection (b). 


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1 ‘‘(f) NONAPPLICABILITY OF LIMITATION.—A grant 

2 made under this section is not subject to the section 

3 60107(a) limitation on the maximum percentage of funds 

4 to be paid by the Secretary. 

5 ‘‘(g) LIMITATION ON USE OF FUNDS.—Funds pro6 vided under this section may not be used for lobbying or 

7 in direct support of litigation.’’. 

8 (3) CLERICAL AMENDMENT.—The chapter anal9 ysis for chapter 601 is amended by adding at the 

10 end the following: 

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

11 (c) STATE PIPELINE SAFETY GRANTS.—Section 

12 60107(a) is amended by striking ‘‘not more than 50 per13 cent’’ and inserting ‘‘not more than 80 percent’’. 

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

15 amended by striking ‘‘spent—’’ and all that follows and 

16 inserting ‘‘spent for gas and hazardous liquid safety pro17 grams for the 3 fiscal years prior to the fiscal year in 

18 which the Secretary makes a payment, except when this 

19 requirement is waived by the Secretary.’’. 

20 SEC. 5. DAMAGE PREVENTION TECHNOLOGY DEVELOP21 MENT. 

22 Section 60114, as amended by section 4, is further 

23 amended by adding at the end the following: 

24 ‘‘(e) TECHNOLOGY DEVELOPMENT GRANTS.—The 

25 Secretary may make grants to any organization or entity 


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1 (not including for-profit entities) for the development of 

2 technologies that will facilitate the prevention of pipeline 

3 damage caused by excavation activities, with emphasis on 

4 wireless and global positioning technologies having poten5 tial for use in connection with notification systems and 

6 underground facility locating and marking services. Funds 

7 provided under this subsection may not be used for lob8 bying or in direct support of litigation. The Secretary may 

9 also support such technology development through cooper10 ative agreements with trade associations, academic institu11 tions, and other organizations.’’. 

12 SEC. 6. SAFETY ORDERS. 

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

14 ‘‘(l) SAFETY ORDERS.— 

15 ‘‘(2) IN GENERAL.—After notice and oppor16 tunity for a hearing, if the Secretary determines that 

17 a pipeline facility has any condition that poses a risk 

18 to public safety, property, or the environment, the 

19 Secretary may order the operator of the facility to 

20 take necessary corrective action, including physical 

21 inspection, testing, repair, replacement, or other ap22 propriate actions to remedy that condition. The Sec23 retary may waive the requirement of notice and op24 portunity for a hearing in an emergency described in 

25 section 60112(e). 


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1 ‘‘(2) ADMINISTRATIVE PROCEDURE.—Before 

2 exercising authority under paragraph (1), the Sec3 retary shall promulgate regulations specifying the 

4 administrative procedure applicable to the issuance 

5 of a safety order. 

6 ‘‘(3) CONSIDERATIONS.—In making a deter7 mination under paragraph (1), the Secretary shall, 

8 if relevant, consider— 

9 ‘‘(A) the considerations described in sec10 tion 60112(b); 

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

12 impair the serviceability of a pipeline; 

13 ‘‘(C) the likelihood that the condition will 

14 worsen over time; 

15 ‘‘(D) the likelihood that the condition is 

16 present or could develop in other areas of the 

17 pipeline; and 

18 ‘‘(E) other factors the Secretary considers 

19 appropriate.’’. 

20 SEC. 7. INTEGRITY PROGRAM ENFORCEMENT. 

21 Section 60109(c)(9)(A)(iii) is amended to read as fol22 lows: 

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

24 Secretary determines that a risk analysis or in25 tegrity management program does not comply 


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1 with the requirements of this subsection or reg2 ulations issued as described in paragraph (2), 

3 has not been adequately implemented, or is in4 adequate for the safe operation of a pipeline fa5 cility, the Secretary may conduct proceedings 

6 under section 60108(a), 60112, 60118(a) and 

7 (b), 60120, 60122, or any other section of this 

8 chapter.’’. 

9 SEC. 8. TECHNICAL ASSISTANCE GRANTS. 

10 Section 60130 is amended— 

11 (1) by striking ‘‘The Secretary shall establish 

12 competitive’’ in subsection (a)(1) and inserting ‘‘No 

13 grants may be awarded under section 60114(e) until 

14 the Secretary has established competitive’’; 

15 (2) by redesignating paragraph (2) of sub16 section (a) as paragraph (4); 

17 (3) by inserting after paragraph (1) of sub18 section (a) the following: 

19 ‘‘(2) DEMONSTRATION GRANTS.—At least the 

20 first 3 grants awarded under this section shall be 

21 demonstration grants for the purpose of evaluating 

22 the effectiveness of grants under this section. Any 

23 such demonstration grant may not exceed $25,000. 

24 ‘‘(3) DISSEMINATION OF TECHNICAL FIND25 INGS.—Each recipient of a grant under this section 


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1 shall ensure that the technical findings made pos2 sible by the grant are made available to the relevant 

3 operators, and that open communication between the 

4 grant recipient, local operators, local communities, 

5 and other interested parties is encouraged.’’; and 

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

7 inserting ‘‘2010.’’. 

8 SEC. 9. ENFORCEMENT TRANSPARENCY. 

9 (a) IN GENERAL.—Chapter 601, as amended by sec10 tion 4(b)(2) of this Act, is further amended by adding at 

11 the end thereof the following: 

12 ‘‘§ 60135. Enforcement transparency 

13 ‘‘(a) IN GENERAL.—Beginning no later than October 

14 1, 2007, the Secretary shall provide a monthly summary 

15 to the public of all gas and hazardous liquid pipeline en16 forcement actions taken by the Secretary or the Pipeline 

17 and Hazardous Materials Safety Administration. Each 

18 summary shall include information on the operator in19 volved in the enforcement activity, the type of violation 

20 that necessitated the enforcement activity, the penalty or 

21 penalties proposed, the final assessment amount of each 

22 penalty, and the reasons for a reduction in the proposed 

23 penalty, if appropriate. 


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1 ‘‘(b) ELECTRONIC POSTING.—Each summary re2 quired under subsection (a) shall be made available to the 

3 public via posting by electronic means.’’. 

4 (b) CONFORMING AMENDMENT.—The chapter anal5 ysis for chapter 601 is amended by adding at the end the 

6 following: 

‘‘60135. Enforcement transparency.’’. 

7 SEC. 10. DIRECT LINE SALES. 

8 Section 60101(a) is amended— 

9 (1) by striking paragraph (8), as redesignated 

10 by section 4(a)(2) of this Act, and inserting the fol11 lowing: 

12 ‘‘(8) ‘interstate gas pipeline facility’ means a 

13 gas pipeline facility— 

14 ‘‘(A) used to transport gas; and 

15 ‘‘(B) subject to the jurisdiction of the 

16 Commission under the Natural Gas Act (15 

17 U.S.C. 717 et seq.);’’; and 

18 (2) by striking paragraph (11), as redesignated 

19 by section 4(a)(2) of this Act, and inserting the fol20 lowing: 

21 ‘‘(11) ‘intrastate gas pipeline facility’ means a 

22 gas pipeline facility and transportation of gas within 

23 a State not subject to the jurisdiction of the Com24 mission under the Natural Gas Act (15 U.S.C. 717 

25 et seq.);’’. 


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1 SEC. 11. GAS DISTRIBUTION INTEGRITY MANAGEMENT 

2 PROGRAM RULEMAKING DEADLINE. 

3 Section 60109 is amended by adding at the end the 

4 following: 

5 ‘‘(e) DISTRIBUTION INTEGRITY MANAGEMENT PRO6 GRAMS.— 

7 ‘‘(1) MINIMUM STANDARDS.—Not later than 1 

8 year after the date of enactment of the Pipeline In9 spection, Protection, Enforcement, and Safety Act of 

10 2006, the Secretary shall prescribe minimum stand11 ards for integrity management programs for dis12 tribution pipelines. 

13 ‘‘(2) ADDITIONAL AUTHORITY OF SEC14 RETARY.—In carrying out this subsection, the Sec15 retary may require operators of distribution pipe16 lines to continually identify and assess risks on their 

17 distribution lines, to remediate conditions that 

18 present a potential threat to line integrity, and to 

19 monitor program effectiveness. 

20 ‘‘(3) EXCESS FLOW VALVES.—The minimum 

21 standards shall include criteria for requiring opera22 tors of natural gas distribution systems— 

23 ‘‘(A) to install excess flow valves on single24 family residential service lines that are installed 

25 or replaced after the date of enactment of the 

26 Pipeline Inspection, Protection, Enforcement, 


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1 and Safety Act of 2006 on the basis of feasi2 bility and risk analysis; and 

3 ‘‘(B) to report to the Secretary annually 

4 on the number of excess flow valves installed on 

5 their systems under subparagraph (A). 

6 ‘‘(4) APPLICABILITY.—The Secretary shall de7 termine which distribution pipelines will be subject 

8 to the minimum standards. 

9 ‘‘(5) DEVELOPMENT AND IMPLEMENTATION.— 

10 Each operator of a distribution pipeline that Sec11 retary determines is subject to the minimum stand12 ards prescribed by the Secretary under this sub13 section shall develop and implement an integrity 

14 management program in accordance with those 

15 standards.’’. 

16 SEC. 12. STANDARDS TO IMPLEMENT NTSB RECOMMENDA17 TIONS. 

18 Not later than 18 months after the date of enactment 

19 of this Act, the Secretary of Transportation shall issue 

20 standards that implement the following recommendations 

21 contained in the National Transportation Safety Board’s 

22 report entitled ‘‘Supervisory Control and Data Acquisition 

23 (SCADA) in Liquid Pipelines’’ and adopted November 29, 

24 2005: 


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1 (1) Implementation of the American Petroleum 

2 Institute’s Recommended Practice 165 for the use of 

3 graphics on the supervisory control and data acquisi4 tion screens. 

5 (2) Implementation of a standard for pipeline 

6 companies to review and audit alarms on monitoring 

7 equipment. 

8 (3) Implementation of standards for pipeline 

9 controller training that include simulator or non10 computerized simulations for controller recognition 

11 of abnormal pipeline operating conditions, in par12 ticular, leak events. 

13 SEC. 13. COORDINATION IN THE CONSTRUCTION AND EX14 PANSION OF HAZARDOUS LIQUID PIPELINES. 

15 Section 60133 is amended— 

16 (1) by striking subsection (e) and inserting the 

17 following: 

18 ‘‘(e) OMBUDSMAN.—The Secretary shall designate an 

19 ombudsman to assist in resolving disagreements between 

20 Federal, State, or local agencies and pipeline operators 

21 arising during agency review of pipeline repairs and haz22 ardous liquid pipeline construction projects in order to ex23 pedite pipeline projects consistent with the protection of 

24 human health, public safety, and the environment.’’; 


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1 (2) by striking ‘‘subject to any’’ in subsection 

2 (f) and inserting ‘‘and hazardous liquid pipeline con3 struction projects to be consistent with’’; and 

4 (3) by adding at the end the following: 

5 ‘‘(g) CONSTRUCTION AND EXPANSION OF PIPE6 LINES.—Upon request by any person proposing to con7 struct or expand a hazardous liquid pipeline, the Secretary 

8 may coordinate the environmental reviews and permitting 

9 processes of Federal agencies and State and local agencies 

10 with responsibility for issuing permits or otherwise author11 izing pipeline construction projects, subject to the agen12 cies’ approval, if the Secretary determines that coordi13 nating the permitting processes to expedite the completion 

14 of the project would be in the national interest and con15 sistent with protection of the environment.’’. 

16 SEC. 14. COST RECOVERY FOR DESIGN REVIEWS. 

17 Section 60117 is amended by adding at the end the 

18 following: 

19 ‘‘(m) COST RECOVERY FOR DESIGN REVIEWS.—If 

20 the Secretary conducts facility design safety reviews, con21 sulting, or field work in connection with a proposal to con22 struct, expand, or operate a pipeline system or liquified 

23 natural gas pipeline facility, the Secretary may require the 

24 person requesting such review, consultation, or field work 

25 to pay the associated costs incurred by the Secretary. The 


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1 Secretary may assess such costs in a reasonable manner. 

2 Any amounts received by the Secretary under this sub3 section shall be deposited into a pipeline safety fund and 

4 shall be available for the purposes described in section 

5 60301(d).’’. 

6 SEC. 15. HUMAN FACTORS RISK MANAGEMENT RULE7 MAKING. 

8 (a) STANDARDS.—Not later than 18 months after the 

9 date of enactment of this Act, the Secretary of Transpor10 tation shall issue regulations requiring operators of gas 

11 and hazardous liquid pipelines to evaluate and take meas12 ures to reduce risks associated with human factors, includ13 ing fatigue, for pipeline controllers and other employees, 

14 as determined by the Secretary. 

15 (b) RISK FACTORS.—In carrying out this section, the 

16 Secretary shall require operators of gas and hazardous liq17 uid pipelines— 

18 (1) to implement pipeline controller work sched19 ules that reduce the likelihood of accidents attrib20 utable to controller fatigue and other human factors; 

21 and 

22 (2) to establish limits on controller hours of 

23 service and provide predictable work and rest sched24 ules for pipeline controllers that are consistent with 


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1 scientific research related to human circadian 

2 rhythms and sleep and rest requirements. 

3 (c) APPLICABILITY.—The Secretary shall determine 

4 which pipelines are subject to the standards issued under 

5 this section. 

6 (d) RISK MANAGEMENT.—Each operator of a pipe7 line that the Secretary determines is subject to the stand8 ards established by the Secretary under this section shall 

9 manage the control of the pipeline in accordance with 

10 those standards. 

11 SEC. 16. EMERGENCY PREPAREDNESS. 

12 (a) WAIVERS.—Section 60118(c) is amended to read 

13 as follows: 

14 ‘‘(c) WAIVERS BY SECRETARY.— 

15 ‘‘(1) NON-EMERGENCY WAIVERS.— 

16 ‘‘(A) IN GENERAL.—On application of a 

17 person owning or operating a pipeline facility, 

18 the Secretary by order may waive compliance 

19 with any part of a standard prescribed under 

20 this chapter on terms the Secretary considers 

21 appropriate, if the Secretary determines that— 

22 ‘‘(i) it is in the public interest to 

23 grant the waiver; and 

24 ‘‘(ii) the waiver is likely to achieve a 

25 level of safety that is equivalent to, or 


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1 greater than, the level of safety that would 

2 be obtained in the absence of the waiver. 

3 ‘‘(B) PERIOD AND CONDITIONS.—A waiver 

4 under this paragraph may be granted for a pe5 riod determined by the Secretary and may be 

6 renewed upon application to the Secretary. The 

7 Secretary may act on an application for a waiv8 er under this paragraph only after notice and 

9 an opportunity for a hearing and, if the applica10 tion is granted, shall state in the order the rea11 sons for granting the requested waiver. The 

12 Secretary shall immediately revoke a waiver 

13 granted under this paragraph if— 

14 ‘‘(i) the waiver has resulted in a lower 

15 level of safety than was maintained before 

16 it was granted; or 

17 ‘‘(ii) continuation of the waiver would 

18 not be consistent with the goals and objec19 tives of this chapter. 

20 ‘‘(2) EMERGENCY WAIVERS.— 

21 ‘‘(A) IN GENERAL.—The Secretary by 

22 order may waive compliance with any part of a 

23 standard prescribed under this chapter on 

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1 out prior notice and an opportunity for a hear2 ing if the Secretary determines that— 

3 ‘‘(i) it is in the public interest to 

4 grant the waiver; 

5 ‘‘(ii) the waiver is likely to achieve a 

6 level of safety that is not inconsistent with 

7 the level of safety that would be achieved 

8 in the absence of the waiver; and 

9 ‘‘(iii) the waiver is necessary to ad10 dress a major disaster or emergency de11 clared by the President under the Robert 

12 T. Stafford Disaster Relief and Emergency 

13 Assistance Act (42 U.S.C. 5121 et seq.) 

14 affecting pipeline transportation or other 

15 emergency as determined by the Secretary. 

16 ‘‘(B) PERIOD AND CONDITIONS.—A waiver 

17 under this paragraph may be issued for a pe18 riod of not more than 60 days and may be re19 newed upon application to the Secretary only 

20 after notice and an opportunity for a hearing 

21 on the waiver. The Secretary shall state in the 

22 order the reasons for issuing the waiver. The 

23 Secretary shall immediately revoke a waiver 

24 issued under this paragraph if— 


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1 ‘‘(i) the waiver has resulted in a lower 

2 level of safety than was maintained before 

3 it was issued; or 

4 ‘‘(ii) continuation of the waiver would 

5 not be consistent with the goals and objec6 tives of this chapter.’’. 

7 (b) RESTORATION OF OPERATIONS.—Section 

8 60301(d) is amended— 

9 (1) by striking ‘‘and’’ after the semicolon in 

10 paragraph (1)(B); 

11 (2) by redesignating paragraph (2) as para12 graph (3); and 

13 (3) by inserting after paragraph (1) the fol14 lowing: 

15 ‘‘(2) may be used for activities involving the 

16 restoration of energy pipelines that have been, or are 

17 anticipated to become, disrupted by a manmade or 

18 natural disaster, including aid to Federal agencies; 

19 and’’. 

20 SEC. 17. PUBLIC EDUCATION AND AWARENESS. 

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

22 at the end the following: 

23 ‘‘§ 6109. Public education and awareness 

24 ‘‘The Secretary shall make a grant to an appropriate 

25 entity for promoting public education and awareness with 


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1 respect to the 811 national excavation damage prevention 

2 phone number.’’. 

3 (b) CONFORMING AMENDMENT.—The chapter anal4 ysis for such chapter is amended by inserting after the 

5 item relating to section 6108 the following: 

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

6 SEC. 18. SAFETY TECHNOLOGY AND CORROSION RE7 SEARCH AND DEVELOPMENT. 

8 The Secretary of Transportation shall carry out a 

9 pipeline corrosion research program to improve methods, 

10 best practices, and technologies for identifying, detecting, 

11 preventing, and managing internal and external corrosion 

12 and other safety risks. The Secretary shall apply the re13 search results to support development and improvement 

14 of national consensus standards. 

15 SEC. 19. COST RECOVERY FOR EXTRAORDINARY EVENTS. 

16 Section 60117, as amended by section 14, is further 

17 amended by adding at the end the following subsection: 

18 ‘‘(n) EXTRAORDINARY EXPENSES OF INCIDENT IN19 VESTIGATION.—The Secretary may, by regulation, estab20 lish procedures to recover the Secretary’s costs incurred 

21 in investigating major pipeline safety incidents from the 

22 person or persons responsible for the incident. These costs 

23 may include travel costs and contract support for the in24 vestigation and monitoring of the corrective measures. All 

25 sums collected shall be deposited into the pipeline safety 


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1 fund and shall be available to reimburse the Secretary for 

2 the costs of investigation and monitoring of the incidents. 

3 Such amounts are available until expended.’’. 

4 SEC. 20. SENIOR EXECUTIVE SIGNATURE OF INTEGRITY 

5 MANAGEMENT PROGRAM PERFORMANCE RE6 PORTS. 

7 Section 60109 is amended by adding at the end the 

8 following: 

9 ‘‘(e) CERTIFICATION OF PIPELINE INTEGRITY MAN10 AGEMENT PROGRAM PERFORMANCE.—The Secretary 

11 shall establish procedures requiring certification of annual 

12 and semi-annual pipeline integrity management program 

13 performance reports by a senior executive officer of the 

14 company operating the pipeline. The procedures shall re15 quire a signed statement, which may be effected electroni16 cally in accordance with the provisions of the Electronic 

17 Signatures in Global and National Commerce Act (15 

18 U.S.C. 7001 et seq.), certifying that— 

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

20 and 

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

22 belief, the report is true and complete.’’. 

23 SEC. 21. LEAK DETECTION TECHNOLOGY STUDY. 

24 Not later than 12 months after the date of enactment 

25 of this Act, the Secretary of Transportation shall submit 


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1 to Congress a report on leak detection systems utilized by 

2 operators of hazardous liquid pipelines. The report shall 

3 include a discussion of the inadequacies of current leak 

4 detection systems, including their ability to detect rup5 tures and small leaks that are ongoing or intermittent, 

6 and what can be done to foster development of better tech7 nologies as well as address existing technological inad8 equacies. 

9 SEC. 22. STUDY OF PIPELINE REGULATORY ADEQUACY. 

10 (a) IN GENERAL.—The Secretary of Transportation 

11 may conduct analyses of the domestic transport of petro12 leum products by pipeline. The analyses should identify 

13 areas of the United States where unplanned loss of indi14 vidual pipelines may cause shortages of petroleum prod15 ucts or price disruptions. Upon identifying such areas, the 

16 Secretary shall determine if the current level of safety reg17 ulation is sufficient to minimize the potential for un18 planned loses. 

19 (b) CONSULTATION.—In preparing any such anal20 yses, the Secretary may consult with other government 

21 agencies and public- and private-sector experts in pipeline 

22 and other forms of petroleum product transportation, en23 ergy consumption, and capacity. 

24 (c) DATA COLLECTION.—The Secretary may collect 

25 information relevant to the study from other Federal 


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1 agencies and may enter into an interagency agreement for 

2 this purpose. 

3 SEC. 23. PIPELINE SECURITY INSPECTIONS AND ENFORCE4 MENT. 

5 (a) IN GENERAL.—Within 1 year after the date of 

6 enactment of this Act the Secretary of Homeland Security, 

7 in consultation with the Secretary of Transportation, shall 

8 establish a program for reviewing pipeline operator adop9 tion of recommendations in the September, 5, 2002, De10 partment of Transportation Research and Special Pro11 grams Administration Pipeline Security Information Cir12 cular, including the review of pipeline security plans and 

13 critical facility inspections. 

14 (b) REVIEW AND INSPECTION.—Within 9 months 

15 after the date of enactment of this Act the Secretary of 

16 Homeland Security and Secretary of Transportation shall 

17 develop and implement a plan for reviewing the pipeline 

18 security plan and an inspection of the critical facilities of 

19 the 100 most critical pipeline operators covered by the 

20 September, 5, 2002, circular, where such facilities have 

21 not been inspected for security purposes since September 

22 5, 2002, by either the Department of Homeland Security 

23 or the Department of Transportation. 

24 (c) COMPLIANCE REVIEW METHODOLOGY—In re25 viewing pipeline operator compliance under subsections (a) 


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1 and (b), risk assessment methodologies shall be used to 

2 prioritize vulnerabilities and to target inspection and en3 forcement actions to the most vulnerable and critical pipe4 line assets. 

5 (d) REGULATIONS.—Within 1 year after the date of 

6 enactment of this Act, the Secretary of Homeland Security 

7 and Secretary of Transportation shall develop and trans8 mit to pipeline operators security recommendations for 

9 natural gas and hazardous liquid pipelines and pipeline 

10 facilities. If the Secretary of Homeland Security deter11 mines that regulations are appropriate, the Secretary of 

12 Homeland Security shall consult with the Secretary of 

13 Transportation on the extent of risk and appropriate miti14 gation measures, and the Secretary of Transportation or 

15 the Secretary of Homeland Security, consistent with the 

16 memorandum of understanding annex signed on August 

17 9, 2006, shall promulgate such regulations and carry out 

18 necessary inspection and enforcement actions. Any regula19 tions should incorporate the guidance provided to pipeline 

20 operators by the September 5, 2002, Department of 

21 Transportation Research and Special Programs Adminis22 tration’s Pipeline Security Information Circular and con23 tain additional requirements as necessary based upon the 

24 results of the inspections performed under subsection (b). 


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1 The regulations shall include the imposition of civil pen2 alties for non-compliance. 

3 SEC. 24. PIPELINE SECURITY AND INCIDENT RECOVERY 

4 PLAN. 

5 (a) IN GENERAL.—The Secretary of Homeland Secu6 rity, in consultation with the Secretary of Transportation 

7 and the Pipeline and Hazardous Materials Safety Admin8 istration, and in accordance with the Memorandum of Un9 derstanding Annex executed on August 9, 2006, shall de10 velop a Pipeline Security and Incident Recovery Protocols 

11 Plan. The plan shall include— 

12 (1) a plan for the Federal Government to pro13 vide increased security support to the most critical 

14 interstate and intrastate natural gas and hazardous 

15 liquid transmission pipeline infrastructure and oper16 ations as determined under section 23— 

17 (A) at high or severe security threat levels 

18 of alert; and 

19 (B) when specific security threat informa20 tion relating to such pipeline infrastructure or 

21 operations exists; and 

22 (2) an incident recovery protocol plan, devel23 oped in conjunction with interstate and intrastate 

24 transmission and distribution pipeline operators and 

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1 lines, to develop protocols to ensure the continued 

2 transportation of natural gas and hazardous liquids 

3 to essential markets and for essential public health 

4 or national defense uses in the event of an incident 

5 affecting the interstate and intrastate natural gas 

6 and hazardous liquid transmission and distribution 

7 pipeline system, which shall include protocols for 

8 granting access to pipeline operators for pipeline in9 frastructure repair, replacement or bypass following 

10 an incident. 

11 (b) EXISTING PRIVATE AND PUBLIC SECTOR EF12 FORTS.—The plan shall take into account actions taken 

13 or planned by both private and public entities to address 

14 identified pipeline security issues and assess the effective 

15 integration of such actions. 

16 (c) CONSULTATION.—In developing the plan under 

17 subsection (a), the Secretary of Homeland Security shall 

18 consult with the Secretary of Transportation, interstate 

19 and intrastate transmission and distribution pipeline oper20 ators, pipeline labor, first responders, shippers of haz21 ardous materials, State Departments of Transportation, 

22 public safety officials, and other relevant parties. 

23 (d) REPORT.— 

24 (1) CONTENTS.—Not later than 1 year after 

25 the date of enactment of this Act, the Secretary of 


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1 Homeland Security shall transmit to the Committee 

2 on Commerce, Science, and Transportation of the 

3 Senate, the Committee on Homeland Security of the 

4 House of Representatives, and the Committee on 

5 Transportation and Infrastructure of the House of 

6 Representatives a report containing the plan re7 quired by subsection (a), along with an estimate of 

8 the private and public sector costs to implement any 

9 recommendations. 

10 (2) FORMAT.—The Secretary may submit the 

11 report in both classified and redacted formats if the 

12 Secretary determines that such action is appropriate 

13 or necessary. 

14 SEC. 25. TECHNICAL ASSISTANCE PROGRAM. 

15 (a) IN GENERAL.—Out of amounts made available to 

16 Secretary under this Act, the Secretary may award, 

17 through a competitive process, grants to Universities with 

18 expertise in pipeline safety and security research to estab19 lish jointly a collaborative program to conduct pipeline 

20 safety and security technical assistance. 

21 (b) DUTIES.— 

22 (1) IN GENERAL.—In cooperation with the 

23 Pipeline and Hazardous Materials Safety Adminis24 tration and representatives from States and boards 

25 of public utilities, the collaborative program estabVerDate Aug 31 2005 00:36 Sep 29, 2006 Jkt 049200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S3961.IS S3961

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1 lished under subsection (a) shall develop workforce 

2 training and technology transfer programs through 

3 statewide and regional partnerships that— 

4 (A) communicate national, State, and local 

5 safety information to pipeline operators; 

6 (B) distribute technical resources and 

7 training to support current and future Federal 

8 mandates; and 

9 (C) evaluates program outcomes. 

10 (2) TRAINING AND EDUCATIONAL PROGRAM.— 

11 The training and educational programs developed 

12 under paragraph (1) may include courses in recent 

13 developments, techniques, and procedures related 

14 to— 

15 (A) safety and security of pipeline systems; 

16 (B) incident and risk management for such 

17 systems; 

18 (C) integrity management for such sys19 tems; 

20 (D) consequence modeling; 

21 (E) detection of encroachments and moni22 toring of rights-of-way; and 

23 (F) vulnerability assessment at both 

24 project and national levels. 


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1 SEC. 26. AUTHORIZATION OF APPROPRIATIONS. 

2 (a) Section 60125(a) is amended to read as follows: 

3 ‘‘(a) GAS AND HAZARDOUS LIQUID.— 

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

5 of this chapter related to gas and hazardous liquid, 

6 the following amounts are authorized to be appro7 priated to the Department of Transportation from 

8 fees collected under section 60301 in each respective 

9 year: 

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

11 which $7,386,000 is for research, $16,535,000 

12 is for State Grants and $1,021,000 is for one 

13 call grants. 

14 ‘‘(B) For fiscal year 2008, $67,043,000 of 

15 which $7,586,000 is for research, $17,496,000 

16 is for State Grants, $1,043,000 is for one call 

17 grants, $1,500,000 is for damage prevention 

18 grants, and $500,000 is for technology grants. 

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

20 which $7,586,000 is for research, $18,187,000 

21 is for State Grants, $1,065,000 is for one call 

22 grants, $1,750,000 is for damage prevention 

23 grants, and $511,000 is for technology grants. 

24 ‘‘(D) For fiscal year 2010, $76,580,000 of 

25 which $7,586,000 is for research, $18,643,000 

26 is for State Grants, $1,088,000 is for one call 


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1 grants, $2,000,000 is for damage prevention 

2 grants, and $521,000 is for technology grants. 

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

4 the amounts authorized to be appropriated by para5 graph (1) the following amounts are authorized from 

6 the Oil Spill Liability Trust Fund to carry out the 

7 provisions of this chapter related to gas and haz8 ardous liquid: 

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

10 which $4,207,000 is for research and 

11 $2,682,000 is for State Grants. 

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

13 which $4,207,000 is for research and 

14 $2,682,000 is for State Grants. 

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

16 which $4,207,000 is for research and 

17 $3,103,000 is for State Grants. 

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

19 which $4,207,000 is for research and 

20 $3,603,000 is for State Grants.’’. 

21 (b) INSPECTOR STAFFING.—The Secretary shall en22 sure that the number of positions for pipeline inspection 

23 and enforcement personnel at the Pipeline and Hazardous 

24 Materials Safety Administration not fall below 100 for fisVerDate Aug 31 2005 00:36 Sep 29, 2006 Jkt 049200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S3961.IS S3961

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1 cal year 2007, 111 for fiscal year 2008, 123 for fiscal year 

2 2009, and 135 for fiscal year 2010. 

3 (c) CONFORMING AMENDMENTS.— 

4 (1) Section 60125 is amended— 

5 (A) by striking subsection (c) and redesig6 nating subsections (d) and (e) as subsections 

7 (c) and (d), respectively; and 

8 (B) by striking ‘‘2003 through 2006’’ in 

9 paragraph (2) of subsection (c), as redesig10 nated, and inserting ‘‘2007 through 2010’’. 

11 (2) Section 6107 is amended— 

12 (A) by striking ‘‘2003 through 2006.’’ in 

13 subsection (a) and inserting ‘‘2007 through 

14 2010.’’; and 

15 (B) by striking ‘‘2003 through 2006.’’ in 

16 subsection (b) and inserting ‘‘2007 through 

17 2010.’’. 

18 (3) Section 5128 is amended— 

19 (A) by adding at the end of subsection (a) 

20 the following: 

21 ‘‘(5) For fiscal year 2009, such sums as may be 

22 necessary. 

23 ‘‘(6) For fiscal year 2010, such sums as may be 

24 necessary.’’; 


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1 (B) by striking ‘‘through 2008’’ in sub2 section (b) and inserting ‘‘through 2010’’; and 

3 (C) by striking ‘‘through 2008.’’ in sub4 section (c) and inserting ‘‘through 2010.’’. 

Æ 


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