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‘‘(1) has in effect an annual certification under 
section 60105 or an agreement under section 60106; 
and 
‘‘(2)(A) has in effect an effective damage pre-
vention program that meets the requirements of sub-
section (b); or 
‘‘(B) demonstrates that it has made substantial 
progress toward establishing such a program, and 
that such program will meet the requirements of 
subsection (b). 
‘‘(b) DAMAGE PREVENTION PROGRAM ELEMENTS.— 
An effective damage prevention program includes the fol-
lowing elements: 
‘‘(1) Participation by operators, excavators, and 
other stakeholders in the development and imple-
mentation of methods for establishing and maintain-
ing effective communications between stakeholders 
from receipt of an excavation notification until suc-
cessful completion of the excavation, as appropriate. 
‘‘(2) A process for fostering and ensuring the 
support and partnership of stakeholders, including 
excavators, operators, locators, designers, and local 
government in all phases of the program. 
‘‘(3) A process for reviewing the adequacy of a 
pipeline operator’s internal performance measures 
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regarding persons performing locating services and 
quality assurance programs. 
‘‘(4) Participation by operators, excavators, and 
other stakeholders in the development and imple-
mentation of effective employee training programs to 
ensure that operators, the one-call center, the en-
forcing agency, and the excavators have partnered to 
design and implement training for the employees of 
operators, excavators, and locators. 
‘‘(5) A process for fostering and ensuring active 
participation by all stakeholders in public education 
for damage prevention activities. 
‘‘(6) A process for resolving disputes that de-
fines the State authority’s role as a partner and 
facilitator to resolve issues. 
‘‘(7) Enforcement of State damage prevention 
laws and regulations for all aspects of the damage 
prevention process, including public education, and 
the use of civil penalties for violations assessable by 
the appropriate State authority. 
‘‘(8) A process for fostering and promoting the 
use, by all appropriate stakeholders, of improving 
technologies that may enhance communications, un-
derground pipeline locating capability, and gathering 
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and analyzing information about the accuracy and 
effectiveness of locating programs. 
‘‘(9) A process for review and analysis of the ef-
fectiveness of each program element, including a 
means for implementing improvements identified by 
such program reviews. 
‘‘(c) FACTORS
TO CONSIDER.—In making grants 
under this section, the Secretary shall take into consider-
ation the commitment of each State to ensuring the effec-
tiveness of its damage prevention program, including legis-
lative and regulatory actions taken by the State. 
‘‘(d) APPLICATION.—If a State authority files an ap-
plication for a grant under this section not later than Sep-
tember 30 of a calendar year and demonstrates that the 
Governor (or chief executive) of the State has designated 
it as the appropriate State authority to receive the grant, 
the Secretary shall review the State’s damage prevention 
program to determine its effectiveness. 
‘‘(e) USE OF FUNDS.—A grant under this section to 
a State authority may only be used to pay the cost of the 
personnel, equipment, and activities that the State author-
ity reasonably requires for the calendar year covered by 
the grant to develop or carry out its damage prevention 
program in accordance with subsection (b). 
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‘‘(f) NONAPPLICABILITY OF LIMITATION.—A grant 
made under this section is not subject to the section 
60107(a) limitation on the maximum percentage of funds 
to be paid by the Secretary. 
‘‘(g) LIMITATION ON USE OF FUNDS.—Funds pro-
vided to carry out this section may not be used for lob-
bying or in direct support of litigation. 
‘‘(h) DAMAGE PREVENTION PROCESS DEFINED.—In 
this section, the term ‘damage prevention process’ means 
a process that incorporates the principles described in sec-
tions 60114(b), 60114(d), and 60114(e).’’. 
(3) CLERICAL AMENDMENT.—The analysis for 
chapter 601 is amended by adding at the end the 
following: 
‘‘60134. State damage prevention programs.’’. 
(c) STATE
PIPELINE
SAFETY
GRANTS.—Section 
60107(a) is amended by striking ‘‘not more than 50 per-
cent’’ and inserting ‘‘not more than 80 percent’’. 
(d) MAINTENANCE OF EFFORT.—Section 60107(b) is 
amended by striking ‘‘spent—’’ and all that follows and 
inserting ‘‘spent for gas and hazardous liquid safety pro-
grams for the 3 fiscal years prior to the fiscal year in 
which the Secretary makes the payment, except when the 
Secretary waives this requirement.’’. 
(e) DAMAGE PREVENTION TECHNOLOGY DEVELOP-
MENT.—Section 60114 (as amended by subsection (a)(1) 
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of this section) is further amended by adding at the end 
the following: 
‘‘(g) TECHNOLOGY DEVELOPMENT GRANTS.—The 
Secretary may make grants to any organization or entity 
(not including for-profit entities) for the development of 
technologies that will facilitate the prevention of pipeline 
damage caused by demolition, excavation, tunneling, or 
construction activities, with emphasis on wireless and 
global positioning technologies having potential for use in 
connection with notification systems and underground fa-
cility locating and marking services. Funds provided under 
this subsection may not be used for lobbying or in direct 
support of litigation. The Secretary may also support such 
technology development through cooperative agreements 
with trade associations, academic institutions, and other 
organizations.’’. 
SEC. 3. PUBLIC EDUCATION AND AWARENESS. 
(a) IN GENERAL.—Chapter 61 is amended by adding 
at the end the following: 
‘‘§ 6109. Public education and awareness 
‘‘(a) GRANT AUTHORITY.—The Secretary shall make 
a grant to an appropriate entity for promoting public edu-
cation and awareness with respect to the 811 national ex-
cavation damage prevention phone number. 
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‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to the Secretary 
$1,000,000 for the period beginning October 1, 2006, and 
ending September 30, 2008, to carry out this section.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 61 is amended by adding at the end the following: 
‘‘6109. Public education and awareness.’’. 
SEC. 4. LOW-STRESS PIPELINES. 
Section 60102(k) is amended to read as follows: 
‘‘(k) 
LOW-STRESS
HAZARDOUS
LIQUID
PIPE-
LINES.— 
‘‘(1) MINIMUM
STANDARDS.—Not later than 
December 31, 2007, the Secretary shall issue regula-
tions subjecting low-stress hazardous liquid pipelines 
to the same standards and regulations as other haz-
ardous liquid pipelines, except as provided in para-
graph (3). The implementation of the applicable 
standards and regulatory requirements may be 
phased in. The regulations issued under this para-
graph shall not apply to gathering lines. 
‘‘(2) GENERAL PROHIBITION AGAINST LOW IN-
TERNAL STRESS EXCEPTION.—Except as provided in 
paragraph (3), the Secretary may not provide an ex-
ception to the requirements of this chapter for a 
hazardous liquid pipeline because the pipeline oper-
ates at low internal stress. 
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‘‘(3) LIMITED
EXCEPTIONS.—The Secretary 
shall provide or continue in force exceptions to this 
subsection for low-stress hazardous liquid pipelines 
that— 
‘‘(A) are subject to safety regulations of 
the United States Coast Guard; or 
‘‘(B) serve refining, manufacturing, or 
truck, rail, or vessel terminal facilities if the 
pipeline is less than 1 mile long (measured out-
side the facility grounds) and does not cross an 
offshore area or a waterway currently used for 
commercial navigation, 
until regulations issued under paragraph (1) become 
effective. After such regulations become effective, the 
Secretary may retain or remove those exceptions as 
appropriate. 
‘‘(4) RELATIONSHIP TO OTHER LAWS.—Noth-
ing in this subsection shall be construed to prohibit 
or otherwise affect the applicability of any other 
statutory or regulatory exemption to any hazardous 
liquid pipeline. 
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘low-stress hazardous liquid pipe-
line’ means a hazardous liquid pipeline that is oper-
ated in its entirety at a stress level of 20 percent or 
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less of the specified minimum yield strength of the 
line pipe. 
‘‘(6) EFFECTIVE DATE.—The requirements of 
this subsection shall not take effect as to low-stress 
hazardous liquid pipeline operators before the effec-
tive date of the rules promulgated by the Secretary 
under this subsection.’’. 
SEC. 5. TECHNICAL ASSISTANCE GRANTS. 
Section 60130 is amended— 
(1) in subsection (a)(1) by striking ‘‘The Sec-
retary shall establish competitive’’ and insert ‘‘No 
grants may be awarded under section 60114(g) until 
the Secretary has established competitive’’; 
(2) in subsection (a) by redesignating para-
graph (2) as paragraph (4); 
(3) in subsection (a) by inserting after para-
graph (1) the following: 
‘‘(2) DEMONSTRATION GRANTS.—At least the 
first 3 grants awarded under this section shall be 
demonstration grants for the purpose of dem-
onstrating and evaluating the utility of grants under 
this section. Each such demonstration grant shall 
not exceed $25,000. 
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‘‘(3) DISSEMINATION
OF
TECHNICAL
FIND-
INGS.—Each recipient of a grant under this section 
shall ensure that— 
‘‘(A) the technical findings made possible 
by the grants are made available to the relevant 
operators; and 
‘‘(B) open communication between the 
grant recipients, local operators, local commu-
nities, and other interested parties is encour-
aged.’’; and 
(4) in subsection (d) by striking ‘‘2006’’ and in-
serting ‘‘2010’’. 
SEC. 6. ENFORCEMENT TRANSPARENCY. 
(a) IN GENERAL.—Chapter 601 (as amended by sec-
tion 2(b) of this Act) is further amended by adding at 
the end the following: 
‘‘§ 60135. Enforcement transparency 
‘‘(a) IN GENERAL.—Not later than December 31, 
2007, the Secretary shall— 
‘‘(1) provide a monthly updated summary to 
the public of all gas and hazardous liquid pipeline 
enforcement actions taken by the Secretary or the 
Pipeline and Hazardous Materials Safety Adminis-
tration, from the time a notice commencing an en-
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forcement action is issued until the enforcement ac-
tion is final; 
‘‘(2) include in each such summary identifica-
tion of the operator involved in the enforcement ac-
tivity, the type of alleged violation, the penalty or 
penalties proposed, any changes in case status since 
the previous summary, the final assessment amount 
of each penalty, and the reasons for a reduction in 
the proposed penalty, if appropriate; and 
‘‘(3) provide a mechanism by which a pipeline 
operator named in an enforcement action may make 
information, explanations, or documents it believes 
are responsive to the enforcement action available to 
the public. 
‘‘(b) ELECTRONIC AVAILABILITY.—Each summary 
under this section shall be made available to the public 
by electronic means. 
‘‘(c) RELATIONSHIP TO FOIA.—Nothing in this sec-
tion shall be construed to require disclosure of information 
or records that are exempt from disclosure under section 
552 of title 5.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 601 (as amended by section 2(b) of this Act) is further 
amended by adding at the end: 
‘‘60135. Enforcement transparency.’’. 
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SEC. 7. DIRECT LINE SALES. 
Section 60101(a) is amended— 
(1) by striking paragraph (6) and inserting the 
following: 
‘‘(6) ‘interstate gas pipeline facility’ means a 
gas pipeline facility— 
‘‘(A) used to transport gas; and 
‘‘(B) subject to the jurisdiction of the 
Commission under the Natural Gas Act (15 
U.S.C. 717 et seq.);’’; and 
(2) by striking paragraph (9) and inserting the 
following: 
‘‘(9) ‘intrastate gas pipeline facility’ means a 
gas pipeline facility and transportation of gas within 
a State not subject to the jurisdiction of the Com-
mission under the Natural Gas Act (15 U.S.C. 717 
et seq.);’’. 
SEC. 8. PETROLEUM TRANSPORTATION CAPACITY AND 
REGULATORY ADEQUACY STUDY. 
(a) IN GENERAL.—Chapter 601 (as amended by sec-
tions 2(b) and 6 of this Act) is further amended by adding 
at the end the following: 
‘‘§ 60136. Petroleum product transportation capacity 
study 
‘‘(a) IN GENERAL.—The Secretaries of Transpor-
tation and Energy shall conduct periodic analyses of the 
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domestic transport of petroleum products by pipeline. 
Such analyses should identify areas of the United States 
where unplanned loss of individual pipeline facilities may 
cause shortages of petroleum products or price disruptions 
and where shortages of pipeline capacity and reliability 
concerns may have or are anticipated to contribute to 
shortages of petroleum products or price disruptions. 
Upon identifying such areas, the Secretaries may deter-
mine if the current level of regulation is sufficient to mini-
mize the potential for unplanned losses of pipeline capac-
ity. 
‘‘(b) CONSULTATION.—In preparing any analysis 
under this section, the Secretaries may consult with the 
heads of other government agencies and public- and pri-
vate-sector experts in pipeline and other forms of petro-
leum product transportation, energy consumption, pipeline 
capacity, population, and economic development. 
‘‘(c) REPORT TO CONGRESS.—Not later than June 
1, 2008, the Secretaries shall submit to the Committee 
on Energy and Commerce and the Committee on Trans-
portation and Infrastructure of the House of Representa-
tives and the Committee on Commerce, Science, and 
Transportation and the Committee on Energy and Nat-
ural Resources of the Senate a report setting forth their 
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recommendations to reduce the likelihood of the shortages 
and price disruptions referred to in subsection (a). 
‘‘(d) ADDITIONAL REPORTS.—The Secretaries shall 
submit additional reports to the congressional committees 
referred to in subsection (c) containing the results of any 
subsequent analyses performed under subsection (a) and 
any additional recommendations, as appropriate. 
‘‘(e) PETROLEUM PRODUCT DEFINED.—In this sec-
tion, the term ‘petroleum product’ means oil of any kind
or in any form, gasoline, diesel fuel, aviation fuel, fuel oil, 
kerosene, any product obtained from refining or proc-
essing of crude oil, liquefied petroleum gases, natural gas 
liquids, petrochemical feedstocks, condensate, waste or 
refuse mixtures containing any of such oil products, and 
any other liquid hydrocarbon compounds.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 601 (as amended by sections 2(b) and 6 of this Act) 
is further amended by adding at the end the following: 
‘‘60136. Petroleum product transportation capacity study.’’. 
SEC. 9. DISTRIBUTION INTEGRITY MANAGEMENT PRO-
GRAM RULEMAKING DEADLINE. 
Section 60109 is amended by adding at the end the 
following: 
‘‘(e) DISTRIBUTION INTEGRITY MANAGEMENT PRO-
GRAMS.— 
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‘‘(1) MINIMUM
STANDARDS.—Not later than 
December 31, 2007, the Secretary shall prescribe 
minimum standards for integrity management pro-
grams for distribution pipelines. 
‘‘(2) 
ADDITIONAL
AUTHORITY
OF
SEC-
RETARY.—In carrying out this subsection, the Sec-
retary may require operators of distribution pipe-
lines to continually identify and assess risks on their 
distribution lines, to remediate conditions that 
present a potential threat to line integrity, and to 
monitor program effectiveness. 
‘‘(3) EXCESS FLOW VALVES.— 
‘‘(A) IN GENERAL.—The minimum stand-
ards shall include a requirement for an operator 
of a natural gas distribution system to install 
an excess flow valve on each single family resi-
dence service line connected to such system if— 
‘‘(i) the service line is installed or en-
tirely replaced after June 1, 2008; 
‘‘(ii) the service line operates continu-
ously throughout the year at a pressure 
not less than 10 pounds per square inch 
gauge; 
‘‘(iii) the service line is not connected 
to a gas stream with respect to which the 
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operator has had prior experience with 
contaminants the presence of which could 
interfere with the operation of an excess 
flow valve; 
‘‘(iv) the installation of an excess flow 
valve on the service line is not likely to 
cause loss of service to the residence or 
interfere with necessary operation or main-
tenance activities, such as purging liquids 
from the service line; and 
‘‘(v) an excess flow valve meeting per-
formance standards developed under sec-
tion 60110(e) of title 49, United States 
Code, is commercially available to the oper-
ator, as determined by the Secretary. 
‘‘(B) REPORTS.—Operators of natural gas 
distribution systems shall report annually to the 
Secretary on the number of excess flow valves 
installed on their systems under subparagraph 
(A). 
‘‘(4) APPLICABILITY.—The Secretary shall de-
termine which distribution pipelines will be subject 
to the minimum standards. 
‘‘(5) DEVELOPMENT AND IMPLEMENTATION.— 
Each operator of a distribution pipeline that the 
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Secretary determines is subject to the minimum 
standards prescribed by the Secretary under this 
subsection shall develop and implement an integrity 
management program in accordance with those 
standards. 
‘‘(6) SAVINGS
CLAUSE.—Subject to section 
60104(c), a State authority having a current certifi-
cation under section 60105 may adopt or continue 
in force additional integrity management require-
ments, including additional requirements for instal-
lation of excess flow valves, for gas distribution pipe-
lines within the boundaries of that State.’’. 
SEC. 10. EMERGENCY WAIVERS. 
Section 60118(c) is amended to read as follows: 
‘‘(c) WAIVERS BY SECRETARY.— 
‘‘(1) NONEMERGENCY WAIVERS.— 
‘‘(A) IN GENERAL.—On application of an 
owner or operator of a pipeline facility, the Sec-
retary by order may waive compliance with any 
part of an applicable standard prescribed under 
this chapter with respect to such facility on 
terms the Secretary considers appropriate if the 
Secretary determines that the waiver is not in-
consistent with pipeline safety. 
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‘‘(B) HEARING.—The Secretary may act 
on a waiver under this paragraph only after no-
tice and an opportunity for a hearing. 
‘‘(2) EMERGENCY WAIVERS.— 
‘‘(A) IN
GENERAL.—The Secretary by 
order may waive compliance with any part of an 
applicable standard prescribed under this chap-
ter on terms the Secretary considers appro-
priate without prior notice and comment if the 
Secretary determines that— 
‘‘(i) it is in the public interest to 
grant the waiver; 
‘‘(ii) the waiver is not inconsistent 
with pipeline safety; and 
‘‘(iii) the waiver is necessary to ad-
dress an actual or impending emergency 
involving pipeline transportation, including 
an emergency caused by a natural or man-
made disaster. 
‘‘(B) PERIOD OF WAIVER.—A waiver under 
this paragraph may be issued for a period of 
not more than 60 days and may be renewed 
upon application to the Secretary only after no-
tice and an opportunity for a hearing on the 
waiver. The Secretary shall immediately revoke 
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