I
104TH CONGRESS
1ST SESSION
H. R. 1187
To increase the safety for the public health and the environment by reducing
the risks associated with the pipeline transportation of natural gas and
hazardous liquids, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 9, 1995
Mr. PETRI (by request) (for himself and Mr. LAUGHLIN) introduced the fol-
lowing bill; which was referred to the Committee on Transportation and
Infrastructure, and in addition to the Committee on Commerce, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the commit-
tee concerned
A BILL
To increase the safety for the public health and the environ-
ment by reducing the risks associated with the pipeline
transportation of natural gas and hazardous liquids, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Pipeline Safety Act of 1995’’.
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(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to title 49, United States Code, and to the Secretary of
Transportation.
Sec. 3. Definitions.
Sec. 4. General authority.
Sec. 5. Risk management.
Sec. 6. Standards for liquified natural gas pipeline facilities.
Sec. 7. Inspection and maintenance.
Sec. 8. High-density population areas and environmentally sensitive areas.
Sec. 9. Excess flow valves.
Sec. 10. Pipeline facilities hazardous to life and property.
Sec. 11. Customer-owned natural gas service lines.
Sec. 12. One-call notification systems.
Sec. 13. Technical safety standards committees.
Sec. 14. Public education programs.
Sec. 15. Compliance and waivers.
Sec. 16. Authorization of appropriations.
SEC. 2. REFERENCES TO TITLE 49, UNITED STATES CODE,
AND TO THE SECRETARY OF TRANSPOR-
TATION.
(a) REFERENCES TO TITLE 49.—Except as otherwise
expressly provided, whenever in this Act an amendment
or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision
of title 49, United States Code.
(b) REFERENCES TO THE SECRETARY OF TRANSPOR-
TATION.—Except as otherwise expressly provided, any ref-
erence in this Act to ‘‘the Secretary’’ is a reference to the
Secretary of Transportation.
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SEC. 3. DEFINITIONS.
Section 60101 of title 49, United States Code,
‘‘Transportation’’ (originally enacted as the Natural Gas
Pipeline Safety Act of 1968 and the Hazardous Liquid
Pipeline Safety Act of 1979) is amended—
(1) by redesignating paragraphs (a)(1) through
(a)(19) as paragraphs (a)(4) through (a)(22).
(2) by redesignating paragraph (a)(20) as para-
graph (a)(27).
(3) by redesignating paragraph (a)(21) as para-
graph (a)(29), and by striking all the words in para-
graph (a)(29(B) and inserting in lieu thereof the fol-
lowing: ‘‘does not include the gathering of gas in
those rural locations which are outside the limits of
any incorporated or unincorporated city, town, or
village.’’
(4) by redesignating paragraph (a)(22) as para-
graph (a)(30).
(5) by inserting the following new definitions as
paragraphs (a)(1) through (a)(3):
‘‘(1) ‘Best estimate’ means a scientifically ap-
propriate estimate which is based, to the extent fea-
sible, on one of the following:
‘‘(A) Central estimates of risk using the
most plausible assumptions.
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‘‘(B) An approach which combines multiple
estimates based on different scenarios and
weighs the probability of each scenario.
‘‘(C) Any other methodology designed to
provide the most unbiased representation of the
most plausible level of risk, given the current
scientific information available to the Federal
agency concerned.
‘‘(2) ‘Benefit’ means the reasonably identifiable
significant health, safety, environmental, social and
economic benefits that are expected to result directly
or indirectly from implementation of a rule or alter-
native strategy.
‘‘(3) ‘Costs’ means the direct and indirect costs
to the United States Government, to State, local,
and tribal governments, and to the private sector,
wage earners, consumers, and the economy, of im-
plementing and complying with a rule or alternative
strategy.’’.
(6) by inserting the following new definitions as
paragraphs (a)(23) through (a)(26):
‘‘(23) ‘Risk assessment document’ means a doc-
ument containing the explanation of how hazards as-
sociated with a substance, activity, or condition have
been identified, quantified, and assessed. The term
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also includes a written statement accepting the find-
ings of any such document.
‘‘(24) ‘Risk management’ means the systematic
application, by the owner or operator of a pipeline
facility, of management policies, procedures, finite
resources and practices to the tasks of analyzing, as-
sessing and controlling risk in order to protect em-
ployees, the general public, the environment and
pipeline facilities.
‘‘(25) ‘Risk management plan’ means a man-
agement plan utilized by a natural gas or hazardous
liquid pipeline owner or operator that encompasses
risk management.
‘‘(26) ‘Significant standard’ means any safety
or environmental standard or regulatory requirement
or closely related group of safety or environmental
standards or regulatory requirements that is likely
to 
result 
in 
compliance 
costs 
in 
excess 
of
$1,000,000.
(7) By inserting the following new definition as
paragraph (a)(28):
‘‘(28) ‘Substitution risk’ means a potential risk
to human health, safety, or the environment from a
regulatory alternative designed to decrease other
risks.’’.
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(b) Section 60101(b)(2)(A) is amended—
(1) in the first sentence after the words ‘‘the
Secretary shall’’ by inserting the words ‘‘, if appro-
priate,’’.
(2) in the last sentence after the words ‘‘phys-
ical characteristics’’ by inserting the words ‘‘and is
justified, based on a risk assessment document and
cost/benefit analysis’’.
SEC. 4. GENERAL AUTHORITY.
Section 60102 of title 49, United States Code,
‘‘Transportation’’ (originally enacted as the Natural Gas
Pipeline Safety Act of 1968 and the Hazardous Liquid
Pipeline Safety Act of 1979) is amended—
(1) in subparagraph (a)(1)(A) by striking
‘‘transporters of gas and hazardous liquid and to’’.
(2) in subparagraph (a)(1)(C) by striking all
words and inserting in lieu thereof the following:
‘‘shall include a requirement that all individuals who
operate and maintain pipeline facilities must be
qualified. Such qualifications shall address the abil-
ity to recognize and react appropriately to abnormal
operating conditions that may indicate a dangerous
situation or a condition exceeding design limits. The
operator of the pipeline facility shall ensure such
qualifications.’’.
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(3) by inserting the following new subparagraph
after subparagraph (a)(1)(C):
‘‘(D) Shall be applied as mandatory re-
quirements to owners and operators of regu-
lated pipeline facilities only after certification
by the Secretary that such compliance is justi-
fied based on—
‘‘(i) an objective and unbiased sci-
entific and economic evaluation of all sig-
nificant and relevant information and risk
assessments performed by the Secretary
and provided to the Secretary by interested
parties relating to costs, risks, risk reduc-
tion or other benefits addressed by the
standard;
‘‘(ii) the incremental risk reduction or
other benefits of any regulatory or non-
regulatory option chosen that will equal or
exceed, and be reasonably related to, the
incremental costs incurred by the Federal
Government, State and local governments
and public and private entities; and
‘‘(iii) the conclusion that no regu-
latory or nonregulatory option considered
by the agency or proposed during the com-
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ment period would be more likely to
achieve a substantially equivalent reduction
in risk in a more cost-effective manner or
would be more likely to provide flexibility
to the regulated entities in achieving the
objectives of the standard along with a
brief explanation of why other regulatory
or nonregulatory options that were consid-
ered by the Secretary were found to be less
feasible.’’.
(4) By striking all of paragraph (a)(2) and in-
serting in lieu thereof the following:
‘‘(2) The requirements of subsection (a)(1)(D)
shall apply to—
‘‘(A) all significant standards promulgated
by the Secretary after the date of enactment of
this Act, and
‘‘(B) any significant standard or group of
closely related standards upon a petition for re-
consideration by an owner or operator of a reg-
ulated facility pursuant to subsection (a)(4) of
this section.’’.
(5) By inserting after new paragraph (a)(2) the
following new paragraphs:
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‘‘(3) Not later than September 30, 1996, the
Secretary shall establish by regulation a procedure
for petitioning the Secretary for reconsideration, in-
cluding the risk assessment and cost/benefit require-
ments under (4) of this subsection, of any signifi-
cant standard or group of closely related standards.
‘‘(4) When prescribing standards or regulations
under sections 60102, 60103, 60108, 60109, 60110,
and 60113 the Secretary shall—
‘‘(A) prepare a risk assessment document
and conduct a cost/benefit analysis that—
‘‘(i) shall explicitly distinguish sci-
entific findings from other considerations
affecting the design and choice of regu-
latory strategies, including substitution
risks, if any are present;
‘‘(ii) shall consider and discuss both
negative and positive data of sufficient
quality when presenting assessments of
public 
safety 
or 
environmental 
risks.
Where conflicts among such data appear to
exist, the assessment shall include discus-
sion of possible reconciliation of conflicting
information;
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‘‘(iii) where a risk assessment docu-
ment involves selection of any significant
assumption, inference, or model, the docu-
ment shall, to the extent feasible—
‘‘(I) present a representative list
and explanation of plausible and alter-
native assumptions, inferences, or
models;
‘‘(II) explain the basis for any
choices;
‘‘(III) identify any policy or value
judgments;
‘‘(IV) fully describe any model
used in the risk assessment and make
explicit the assumptions incorporated
in the model;
‘‘(V) indicate the extent to which
any model has been validated by, or
conflicts with, empirical data;
‘‘(iv) shall include a statement that
places the nature and magnitude of the
risk in context, which statement shall, to
the extent feasible, provide a comparison of
any public safety or environmental risks
addressed by the regulatory alternatives to
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other risks chosen by the Secretary and fa-
miliar to the public;
‘‘(v) shall provide the best estimate
for the impacts addressed;
‘‘(vi) shall provide opportunity for
public participation; and
‘‘(vii) shall indicate whether the esti-
mated benefits to public safety are equal to
or greater than the costs of compliance;
‘‘(B) submit, all data and testing (includ-
ing the details of the methodology) for the risk
assessment document and cost/benefit analysis
for review by the Technical Pipeline Safety
Standards Committee and the Hazardous Liq-
uid Pipeline Safety Standards Committee and
make available for public review. The Technical
Pipeline Safety Standards Committee and the
Hazardous Liquid Pipeline Safety Standards
Committee shall function as a peer review pan-
els that shall prepare a report and any rec-
ommended alternatives for any significant
standard to be submitted to the Secretary with-
in one hundred and twenty days of receipt of
the information required by subsection 4(A)
that includes an evaluation of the technical sci-
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entific merit of the data and scientific method
used for the risk assessment document and the
cost-benefit analysis, and a list of any consider-
ations that were not taken into account in the
risk and cost benefit assessments, but were con-
sidered appropriate by a majority of the Tech-
nical Pipeline Safety Standards Committee or
the Hazardous Liquid Pipeline Safety Stand-
ards Committee;
‘‘(C) review the report and recommenda-
tions of the Technical Pipeline Safety Stand-
ards Committee and the Hazardous Liquid
Pipeline Safety Standards Committee. The Sec-
retary shall, within ninety days of receipt of a
peer review panel’s report—
‘‘(i) provide a written response to all
significant peer review comments and rec-
ommended alternatives;
‘‘(ii) prepare a new risk assessment
document or cost/benefit analysis, as appli-
cable, when the Technical Pipeline Safety
Standards Committee or the Hazardous
Liquid Pipeline Safety Standards Commit-
tee gives a negative recommendation re-
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garding the data or methodology used for
such risk assessment.
‘‘(5) All peer review comments and conclusions
and any related response by the Secretary shall be
made available to the public and shall be made part
of the administrative record for the purpose of judi-
cial review of any final agency action.
‘‘(6) The Secretary may consult with owners or
operators of pipeline facilities prior to initiating a
formal regulatory action for the purpose of exchang-
ing ideas and information which may be addressed
in the formal regulatory action.’’.
(b) Subsection 60102(b) is amended—
(1) in subparagraph (1)(B) by inserting the
word ‘‘safety’’ after the words ‘‘hazardous liquid
pipeline’’;
(2) in paragraph (3) by striking the word
‘‘and’’;
(3) in paragraph (4) by striking the words
‘‘contribute to’’ and inserting the word ‘‘benefit’’ in
lieu thereof;
(4) by replacing the period at the end of para-
graph (4) with a semicolon and adding the following
new paragraphs:
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‘‘(5) the costs of compliance with the standard;
and
(6) the recommendations of the Technical Pipe-
line Safety Standards Committee and the Hazardous
Liquid Pipeline Safety Standards Committee.’’.
(c) Subsection 60102(d) is amended—
(1) by striking the words ‘‘operating the facility
and, when requested, to provide the information to
the Secretary and an appropriate State official’’ and
inserting in lieu thereof ‘‘operating the facility as re-
quired by the standards prescribed under Chapter
601 and, when requested, to make such information
available to the Secretary and an official of the
State pipeline safety agency that is certified under
Section 60105.’’.
(2) in paragraph (2) by striking the words ‘‘and
a’’ and inserting the word ‘‘or’’ in lieu thereof.
(d) Subsection 60102(e) is amended—
(1) in the first sentence by striking the words
‘‘to the extent the Secretary considers necessary, an
operator of a gathering line that is not a regulated
gathering line (as defined under section 60101(b)(2)
of this title),’’.
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(2) in the first sentence by striking the word
‘‘transmission’’ and inserting the word ‘‘transpor-
tation’’ in lieu thereof.
(e) Subsection 60102(f) is amended—
(1) by striking paragraph (1) and inserting in
lieu thereof the following new paragraph:
‘‘(1) The Secretary shall prescribe minimum
safety standards requiring that the design and con-
struction of a new gas pipeline transmission facility
or hazardous liquid pipeline facility be carried out,
to the extent practicable, in a way that accommo-
dates the passage through the facility of an instru-
mented internal inspection device (commonly re-
ferred to as a ‘smart pig’). The Secretary shall also
prescribe minimum safety standards requiring re-
placement of an existing gas pipeline transmission
facility, hazardous liquid pipeline facility, or equip-
ment, be carried out, to the extent practicable, in a
way that replacement of the existing gas pipeline
transmission facility, hazardous liquid pipeline facil-
ity, or equipment being replaced accommodates the
passage through the facility of an instrumented in-
ternal inspection device. The Secretary may apply
the standard to an existing gas or hazardous liquid
transmission facility, and require the facility to be
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changed to allow the facility to be inspected with an
instrumented internal inspection device if the basic
construction of the facility will accommodate the de-
vice.’’.
(2) in paragraph (2) after the words ‘‘The Sec-
retary shall prescribe’’ by inserting ‘‘, if necessary,
additional’’.
(f) by adding after subsection (k) the following new
subsection:
‘‘(l) UPDATING STANDARDS.—The Secretary shall, to
the extent practicable, keep current industry standards
that have been adopted as part of the federal pipeline safe-
ty regulatory program.’’.
SEC. 5. RISK MANAGEMENT.
(a) ESTABLISHMENT.—Subtitle VIII, chapter 601,
title 49, United States Code, ‘‘Transportation’’ is amend-
ed by adding the following new section:
‘‘§ 60126. Risk Management
‘‘(a) RISK MANAGEMENT PROGRAM DEMONSTRA-
TION PROJECT.—The Secretary shall establish a project
with voluntary participation by owners and operators of
pipeline facilities to demonstrate the effectiveness of risk
management programs in lieu of compliance with regula-
tions that would otherwise apply under this chapter. In
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establishing the Demonstration Project the Secretary
shall—
‘‘(1) invite owners and operators of pipeline fa-
cilities to submit risk management plans on a vol-
untary basis, subject to approval by the Secretary;
‘‘(2) for the duration of the project, not require
participating owner and operators of pipeline facili-
ties to implement new regulations promulgated after
the start date of their participation in the Dem-
onstration Project as to facilities covered by the
project;
‘‘(3) include in the scope of the project the fol-
lowing—
‘‘(A) development of a screening model to
categorize the risks inherent to a selected pipe-
line facility, considering the location, volume,
pressure and material transported or stored by
the pipeline facility;
‘‘(B) application of risk assessment and
risk management methodologies suitable to the
inherent risks determined to exist by the hazard
screening model;
‘‘(C) development of program elements
needed to ensure that the owner or operator
can demonstrate that risks are being effectively
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managed and that the program can be audited;
and
‘‘(D) amendments, modification or adjust-
ments of approved plans, as requested.
‘‘(4) continue any approved plan under the
Demonstration Project for no more than four years.
At the conclusion of the Demonstration Project, the
Secretary shall submit a report to Congress of the
results of the Demonstration Project.
‘‘(b) APPROVED RISK MANAGEMENT PLANS.—Upon
completion of the Risk Management Demonstration
Project under subsection (a) of this section, an owner or
operator of a pipeline facility may submit for approval by
the Secretary a Risk Management Plan that would apply
to a pipeline facility, or portion of a pipeline facility, in
lieu of compliance with some or all regulations that would
otherwise apply under this Chapter. Such Plan may take
effect after review and approval by the Secretary. In re-
viewing a proposed Risk Management Plan the Secretary
shall consider—
‘‘(1) the appropriateness of the plan for the
particular type of pipeline facility;
‘‘(2) the effectiveness of the plan in providing
equivalent or greater protection than relevant pre-
scribed minimum safety standards;