I 
113TH CONGRESS 
2D SESSION 
H. R. 4338 
To amend title 49, United States Code, to require gas pipeline facilities 
to accelerate the repair, rehabilitation, and replacement of high-risk pipe-
lines used in commerce, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 27, 2014 
Mr. RANGEL (for himself and Ms. NORTON) introduced the following bill; 
which was referred to the Committee on Transportation and Infrastruc-
ture, 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 com-
mittee concerned 
A BILL 
To amend title 49, United States Code, to require gas pipe-
line facilities to accelerate the repair, rehabilitation, and 
replacement of high-risk pipelines used in commerce, 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. 
This Act may be cited as the ‘‘Pipeline Modernization 
and Consumer Protection Act’’. 
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SEC. 2. REPLACEMENT PROGRAMS FOR HIGH-RISK NAT-
URAL GAS PIPELINES. 
(a) FINDINGS.—Congress finds that— 
(1) Federal requirements related to repairing 
pipeline leaks are limited to ‘‘hazardous’’ leaks, 
which are leaks that represent an existing or prob-
able hazard to persons or property and require im-
mediate repair; 
(2) there are no Federal requirements to ad-
dress slower or less hazardous leaks, which can allow 
the leaks to persist unrepaired indefinitely; 
(3) in States without a standard definition and 
methodology for calculating unaccounted-for gas (the 
difference between the amount of gas purchased by 
a utility and the amount used or sold to customers), 
data inconsistencies may be pervasive and these in-
consistencies hinder the ability of regulators to mon-
itor gas system and utility performance; 
(4) the cost of leaked or otherwise unaccounted- 
for natural gas in the distribution system is typically 
passed on to ratepayers without limitation as an ac-
cepted cost of service, which removes financial incen-
tive for utilities to minimize the leaks; 
(5) methane, the primary constituent of natural 
gas, is a greenhouse gas at least 20 times more po-
tent than carbon dioxide; 
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(6) according to the Pipeline and Hazardous 
Materials Safety Administration, the United States 
natural gas distribution system still includes 61,000 
miles of bare steel pipe without adequate corrosion 
protection and 32,000 miles of cast iron pipe, which 
was installed beginning in the 1830s and can be 
prone to failure; 
(7) major recent pipeline explosions that led to 
human fatalities, including those in Austin, Texas, 
Philadelphia, Pennsylvania, and Allentown, Pennsyl-
vania, have been traced to aging, leaking, and high- 
risk pipeline infrastructure; 
(8) natural gas distribution utilities may be dis-
couraged from making capital expenditures for the 
replacement of leaking and failure-prone pipelines 
because traditional ratemaking structures may not 
allow for cost recovery on a timely basis; and 
(9) according to the Pipeline and Hazardous 
Materials Safety Administration, the natural gas 
pipeline replacement programs established as part of 
the ratemaking process in 27 States and the District 
of Columbia have played a vital role in enhancing 
public safety by better ensuring the prompt rehabili-
tation, repair, or replacement of high-risk natural 
gas distribution infrastructure. 
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(b) NATURAL GAS DISTRIBUTION COMPANIES.— 
(1) IN
GENERAL.—Chapter 601 of title 49, 
United States Code, is amended by inserting after 
section 60112 the following: 
‘‘§ 60112A. Replacement programs for high-risk nat-
ural gas pipelines 
‘‘(a) DEFINITION OF GAS PIPELINE FACILITY.—In 
this section, the term ‘gas pipeline facility’ includes— 
‘‘(1) a distribution facility; and 
‘‘(2) a gas utility. 
‘‘(b) IN GENERAL.—Each operator of a gas pipeline 
facility shall, in accordance with an integrity management 
program required under section 60109 of this title, if ap-
plicable, accelerate the repair, rehabilitation, and replace-
ment of gas piping or equipment that— 
‘‘(1) is leaking; or 
‘‘(2) may pose high risks of leaking, or may no 
longer be fit for service, because of— 
‘‘(A) inferior materials; 
‘‘(B) poor construction practices; 
‘‘(C) lack of maintenance; or 
‘‘(D) age. 
‘‘(c) POLICY OPTIONS.— 
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‘‘(1) IN
GENERAL.—In complying with sub-
section (b), each State regulatory authority and each 
nonregulated gas utility shall consider— 
‘‘(A) developing prioritized timelines to re-
pair all leaks based on the severity of the leak, 
including non-hazardous leaks, or replace iden-
tified leaking or high-risk piping or equipment, 
including leaks identified as part of an integrity 
management plan developed under section 
192.1007 of title 49, Code of Federal Regula-
tions, if applicable; 
‘‘(B) adopting a cost-recovery program 
that includes— 
‘‘(i) replacement plans with targets 
and benchmarks for leaking or high-risk 
infrastructure replacement; 
‘‘(ii) consideration of the economic, 
safety, and environmental benefits of re-
duced gas leakage, including consideration 
of reduced operation and maintenance 
costs and reduced costs attributable to lost 
or unaccounted-for natural gas; and 
‘‘(iii) reporting on the reductions in 
lost or unaccounted-for gas as a result of 
pipeline replacements; 
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‘‘(C) adopting a standard definition and 
methodology for calculating and reporting unac-
counted-for gas to improve data quality; 
‘‘(D) adopting limits on cost recovery for 
lost and unaccounted-for gas; and 
‘‘(E) requiring use of best available tech-
nology to detect gas leaks.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of sections for chapter 601 of 
title 49, United States Code, is amended by insert-
ing after the item relating to section 60112 the fol-
lowing: 
‘‘60112A. Replacement programs for high-risk natural gas pipelines.’’. 
(c) NON-BINDING GUIDELINES
FOR IDENTIFYING 
AND CLASSIFYING HIGH-RISK PIPELINE INFRASTRUC-
TURE.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Administrator 
of the Pipeline and Hazardous Materials Safety Ad-
ministration shall, after consultation with State reg-
ulatory authorities, the Secretary of Energy, the Ad-
ministrator of the Environmental Protection Agency, 
the Federal Energy Regulatory Commission, and 
other appropriate Federal agencies, and after notice 
and opportunity for comment, issue non-binding 
guidelines identifying best practices under section 
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60112A of title 49, United States Code (as added by 
subsection (b)). 
(2) PRESERVING THE INTEGRITY OF ACTIONS 
ALREADY TAKEN BY STATE REGULATORY AUTHORI-
TIES.—In formulating guidelines under paragraph 
(1), the Administrator of the Pipeline and Haz-
ardous Materials Safety Administration shall, to the 
extent practicable, preserve the integrity of, and be 
guided by, actions already taken by State regulatory 
authorities to ensure proper identification, classifica-
tion, and timely repair of high-risk pipeline infra-
structure and leaks, including actions taken after 
consideration 
of 
the 
standard 
under 
section 
303(b)(6) of the Public Utility Regulatory Policies 
Act of 1978 (15 U.S.C. 3203(b)(6)). 
(3) REVISION OF GUIDELINES.—Not less fre-
quently than once every 7 years, the Administrator 
of the Pipeline and Hazardous Materials Safety Ad-
ministration shall review and, as appropriate, revise 
the guidelines issued under paragraph (1) to reflect 
changes in the composition and safety performance 
of the pipeline infrastructure in the United States. 
SEC. 3. DATA STANDARDIZATION. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, not later than 1 year after the date of enact-
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ment of this Act, the Administrator of the Pipeline and 
Hazardous Materials Safety Administration and the heads 
of other applicable Federal agencies shall, in consultation 
with State and local agencies under subsection (c), work 
jointly to establish and publish forms that adopt a stand-
ard definition and methodology for calculating and report-
ing unaccounted-for gas, including, when possible, infor-
mation on the causes of unaccounted-for gas and the 
quantities associated with each cause, for use by applicable 
Federal agencies to standardize the data collected on un-
accounted-for gas. 
(b) ADMINISTRATION.—In carrying out this section, 
the Administrator of the Pipeline and Hazardous Mate-
rials Safety Administration and the heads of other applica-
ble Federal agencies may— 
(1) establish an interagency working group; and 
(2) enter into a memorandum of understanding. 
(c) CONSULTATION WITH STATE AND LOCAL AGEN-
CIES.—The Administrator of the Pipeline and Hazardous 
Materials Safety Administration and the heads of other 
applicable Federal agencies shall offer to work with State 
and local regulatory authorities to adopt a standard defini-
tion and methodology for calculating and reporting unac-
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counted-for gas to standardize the data collected by Fed-
eral, State, and local governments. 
Æ 
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