[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] LEGISLATIVE SOLUTIONS TO MAKE OUR NATION'S PIPELINES SAFER ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON ENERGY OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ JUNE 19, 2019 __________ Serial No. 116-48 [GRAPHIC NOT AVAILABLE IN TIFF FORMAT FORMAT] Printed for the use of the Committee on Energy and Commerce govinfo.gov/committee/house-energy energycommerce.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 40-606 PDF WASHINGTON : 2021 -------------------------------------------------------------------------------------- COMMITTEE ON ENERGY AND COMMERCE FRANK PALLONE, Jr., New Jersey Chairman BOBBY L. RUSH, Illinois GREG WALDEN, Oregon ANNA G. ESHOO, California Ranking Member ELIOT L. ENGEL, New York FRED UPTON, Michigan DIANA DeGETTE, Colorado JOHN SHIMKUS, Illinois MIKE DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas JAN SCHAKOWSKY, Illinois STEVE SCALISE, Louisiana G. K. BUTTERFIELD, North Carolina ROBERT E. LATTA, Ohio DORIS O. MATSUI, California CATHY McMORRIS RODGERS, Washington KATHY CASTOR, Florida BRETT GUTHRIE, Kentucky JOHN P. SARBANES, Maryland PETE OLSON, Texas JERRY McNERNEY, California DAVID B. McKINLEY, West Virginia PETER WELCH, Vermont ADAM KINZINGER, Illinois BEN RAY LUJAN, New Mexico H. MORGAN GRIFFITH, Virginia PAUL TONKO, New York GUS M. BILIRAKIS, Florida YVETTE D. CLARKE, New York, Vice BILL JOHNSON, Ohio Chair BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY III, SUSAN W. BROOKS, Indiana Massachusetts MARKWAYNE MULLIN, Oklahoma TONY CARDENAS, California RICHARD HUDSON, North Carolina RAUL RUIZ, California TIM WALBERG, Michigan SCOTT H. PETERS, California EARL L. ``BUDDY'' CARTER, Georgia DEBBIE DINGELL, Michigan JEFF DUNCAN, South Carolina MARC A. VEASEY, Texas GREG GIANFORTE, Montana ANN M. KUSTER, New Hampshire ROBIN L. KELLY, Illinois NANETTE DIAZ BARRAGAN, California A. DONALD McEACHIN, Virginia LISA BLUNT ROCHESTER, Delaware DARREN SOTO, Florida TOM O'HALLERAN, Arizona ------ Professional Staff JEFFREY C. CARROLL, Staff Director TIFFANY GUARASCIO, Deputy Staff Director MIKE BLOOMQUIST, Minority Staff Director Subcommittee on Energy BOBBY L. RUSH, Illinois Chairman SCOTT H. PETERS, California FRED UPTON, Michigan MIKE DOYLE, Pennsylvania Ranking Member JOHN P. SARBANES, Maryland ROBERT E. LATTA, Ohio JERRY McNERNEY, California, Vice CATHY McMORRIS RODGERS, Washington Chair PETE OLSON, Texas PAUL TONKO, New York DAVID B. McKINLEY, West Virginia DAVID LOEBSACK, Iowa ADAM KINZINGER, Illinois G. K. BUTTERFIELD, North Carolina H. MORGAN GRIFFITH, Virginia PETER WELCH, Vermont BILL JOHNSON, Ohio KURT SCHRADER, Oregon LARRY BUCSHON, Indiana JOSEPH P. KENNEDY III, BILL FLORES, Texas Massachusetts RICHARD HUDSON, North Carolina MARC A. VEASEY, Texas TIM WALBERG, Michigan ANN M. KUSTER, New Hampshire GREG WALDEN, Oregon (ex officio) ROBIN L. KELLY, Illinois NANETTE DIAZ BARRAGAN, California A. DONALD McEACHIN, Virginia TOM O'HALLERAN, Arizona LISA BLUNT ROCHESTER, Delaware FRANK PALLONE, Jr., New Jersey (ex officio) C O N T E N T S ---------- Page Hon. Bobby L. Rush, a Representative in Congress from the State of Illinois, opening statement................................. 1 Prepared statement........................................... 2 Hon. Fred Upton, a Representative in Congress from the State of Michigan, opening statement.................................... 3 Prepared statement........................................... 5 Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement......................... 6 Prepared statement........................................... 7 Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement\1\................................... 9 Prepared statement........................................... 10 Witnesses Christina Sames, Vice President, Operations and Engineering Services, American Gas Association............................. 11 Prepared statement........................................... 14 Answers to submitted questions............................... 191 Chuck Lesniak III, Principal, CL3 Consulting..................... 27 Prepared statement........................................... 29 Andrew J. Black, President and Chief Executive Officer, Association of Oil Pipe Lines.................................. 42 Prepared statement........................................... 44 Answers to submitted questions............................... 195 C.J. Osman, Director of Operations, Safety, and Integrity, Interstate Natural Gas Association of America.................. 54 Prepared statement........................................... 56 Answers to submitted questions............................... 199 Submitted Material Discussion Draft, H.R. ___, the Safer Pipelines Act of 2019, submitted by Mr. Rush.......................................... 106 H.R. 2139, the Leonel Rondon Safe Pipelines Act, submitted by Mr. Rush........................................................... 124 Letter of June 18, 2019, from Michael Aitken, President, National Society of Professional Engineers, to Mr. Rush and Mr. Upton, submitted by Mr. Rush.......................................... 138 Letter of June 18, 2019, from Josh Chaise, Vice President, Product Management, Water and Gas, Aclara Technologies, LLC, to Mr. Rush and Mr. Upton, submitted by Mr. Rush.................. 141 Letter of June 18, 2019, from Robin Rorick, Vice President, Midstream & Industry Operations, American Petroleum Institute, to Mr. Rush and Mr. Upton, submitted by Mr. Rush............... 143 Letter of June 18, 2019, from Matthew Hite, Vice President of Government Affairs, GPA Midstream Association, to Mr. Pallone, et al., submitted by Mr. Rush.................................. 151 Letter of June 18, 2019, from International Union of Operating Engineers, et al., to Mr. Rush and Mr. Upton, submitted by Mr. Rush........................................................... 159 Analysis of the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2019, Pipeline and Hazardous Materials Safety Administration, submitted by Mr. Rush................... 161 ---------- \1\ Mr. Flores presented Mr. Walden's statement orally. Summary of the Safer Pipelines Act of 2019, Pipeline and Hazardous Materials Safety Administration, submitted by Mr. Rush........................................................... 182 Letter of June 19, 2019, from Robert H. Chalker, Chief Executive Officer, NACE International, to Mr. Rush and Mr. Upton, submitted by Mr. Rush.......................................... 189 LEGISLATIVE SOLUTIONS TO MAKE OUR NATION'S PIPELINES SAFER ---------- WEDNESDAY, JUNE 19, 2019 House of Representatives, Subcommittee on Energy, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 10:33 a.m. in room 2322, Rayburn House Office Building, Hon. Bobby L. Rush (chairman of the subcommittee) presiding. Members present: Representatives Rush, Peters, Doyle, McNerney, Tonko, Loebsack, Butterfield, Schrader, Kennedy, Veasey, Kuster, Barragan, O'Halleran, Blunt Rochester, Pallone (ex officio), Upton (subcommittee ranking member), Latta, Rodgers, Olson, Kinzinger, Griffith, Johnson, Bucshon, Flores, Walberg, Duncan, and Walden (ex officio). Staff present: Jeffrey C. Carroll, Staff Director; Omar Guzman-Toro, Policy Analyst; Rick Kessler, Senior Advisor and Staff Director, Brendan Larkin, Policy Coordinator; Elysa Montfort, Press Secretary; Lisa Olson, FERC Detailee; Alivia Roberts, Press Assistant; Tuley Wright, Energy and Environment Policy Advisor; Mike Bloomquist, Minority Staff Director; Theresa Gambo, Minority Human Resources/Office Administrator; Peter Kielty, Minority General Counsel; Ryan Long, Minority Deputy Staff Director; Mary Martin, Minority Chief Counsel, Energy and Environment and Climate Change; Brandon Mooney, Minority Deputy Chief Counsel, Energy; Brannon Rains, Legislative Clerk; Peter Spencer, Minority Senior Professional Staff Member, Environment and Climate Change. OPENING STATEMENT OF HON. BOBBY L. RUSH, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS Mr. Rush. Good morning to all. I want to thank you all for attending today's important hearing entitled ``Legislative Solutions to Make Our Nation's Pipelines Safer,'' and I want to welcome all of our witnesses that will be testifying, including some who are returning from our May oversight hearing. This morning we will be examining the Safer Pipelines Act of 2019, as well as H.R. 2139, the Leonel Rondon Pipeline Safety Act, introduced by our colleagues from Massakchusetts: Ms. Trahan, Mr. Kennedy, and Mr. Moulton. Additionally, Members may also inquire about provisions of the Pipeline Safety Legislative Proposal introduced earlier this month by PHMSA. At the beginning, I want to be crystal clear. The discussion draft introduced by the majority side represents many provisions that Chairman Pallone, myself, and other Democratic colleagues would, ideally, like to see included in pipeline safety reauthorization. However, as we have said time and time again, both Chairman Pallone and I would like for this process to be transparent, to be open, and we look forward to working with members of the minority, PHMSA, and other important stakeholders to ultimately draft legislation that will receive wider bipartisan support. I hope that I am clear on this. We want to work with all the stakeholders and also with the minority side. With that said, I would like to highlight some of the important provisions included in the discussion draft that I believe would make our Nation's pipeline infrastructure safer and more secure. And one of the major components of the draft is that it would regulate many of the 435,000 miles of gathering lines, including all onshore pipelines operating above a specified pressure. I believe this is a commonsense measure that would help to inform and protect communities surrounding these gathering lines, which are completely unregulated in today's environment. The draft would also eliminate the, quote, ``grandfather clause,'' end of quote, so that pipelines built prior to July 1, 1970 would no longer be exempt from testing for their maximum allowable operating pressure--another commonsense provision. The bill would eliminate the duplicative cost-benefit requirements, which is currently only imposed on PHMSA and which is at least partly responsible for the agency missing so many of its deadlines for rulemakings, according to former Administrator Quarterman. The legislation also mandates automatic leak detection and shut-off valves for pipelines located in high-consequence areas, a provision that should help to save vital time and potentially loss of life and property in the event of an accident. I believe that each of these provisions, as well as additional measures, would help bring additional resources and critical operational information to communities and to first responders, as both the subcommittee discussion draft and H.R. 2139 does, and would help to strengthen our Nation's pipeline safety regime. I look forward to engaging the witnesses and also the members of the minority and working with all of you to enhance this legislation as we move through the committee process. [The legislation appears at the conclusion of the hearing. The prepared statement of Mr. Rush follows:] Prepared Statement of Hon. Bobby L. Rush I want to thank you all for attending today's important hearing entitled ``Legislative Solutions to Make Our Nation's Pipelines Safer.'' I want to welcome all of our witnesses that will be testifying, including some who are returning from our May oversight hearing. This morning we will be examining the Safer Pipelines Act of 2019, as well as H.R. 2139, the ``Leonel Rondon Pipeline Safety Act,'' introduced by our colleagues from Massachusetts: Mr. Trahan, Mr. Kennedy and Mr. Moulton. Additionally, Members may also inquire about provisions of the Pipeline Safety Legislative Proposal introduced earlier this month by PHMSA. I want to be clear right from the outset that the discussion draft introduced by the majority side represents many provisions that Chairman Pallone, myself and many Democratic colleagues would, ideally, like to see included in pipeline safety reauthorization. However, as we have said on numerous occasions, both Chairman Pallone and I would like for this process to be transparent and open, and we look forward to working with Members of the minority, PHMSA and other important stakeholders to ultimately draft legislation that will receive wide, bipartisan support. With that being said, I would like to highlight some of the important provisions included in the discussion draft that I believe would make our Nation's pipeline infrastructure safer and more secure. One of the major components of the draft is that it would regulate many of the 435,000 miles of gathering lines, including all onshore pipelines operating above a specified pressure. I believe this is a commonsense measure that would help to inform and protect communities surrounding these gathering lines, which today remain completely unregulated. The draft would also eliminate the ``grandfather clause'' so that pipelines built prior to July 1, 1970, would no longer be exempt from testing for their maximum allowable operating pressure. The bill would eliminate the duplicative cost-benefit requirements, which is currently only imposed on PHMSA, and which is at least partly responsible for the agency missing so many of its deadlines for rulemakings, according to former Administrator Quarterman. The legislation also mandates automatic leak detection and shutoff valves for pipelines located in high consequence areas, a provision that should help save vital time and potentially loss of life and property in the event of an accident. I believe that each of these provisions, as well as additional measures that would help bring additional resources and critical operational information to communities and first- responders, as both the subcommittee discussion draft and H.R. 2139 does, would help to strengthen our Nation's pipeline safety regime. I look forward to engaging with today's witnesses on these proposals, and also working with my colleagues on the minority side to further enhance this legislation as we move through the committee process. With that I yield the balance of my time, and now I would like to recognize my friend and colleague, Ranking Member Upton for his opening statement. Mr. Rush. With that, I yield my time back and I recognize my good friend from the great State of Michigan, Ranking Member Upton, for 5 minutes. OPENING STATEMENT OF HON. FRED UPTON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Mr. Upton. Well, thank you, Mr. Chairman, for holding this hearing to continue our work on pipeline safety reauthorization, and I look forward to your statement ``working with all of us'' because I am going to sound a little tough, probably, in my opening statement. But I know that we can do better than this discussion draft before us. Pipeline safety has always been one of my highest priorities in every Congress and I was encouraged and optimistic that we could work on this bill together as we have in the past. In fact, if you look back at the history, I believe that when we passed previous reauthorizations, they passed under suspension, almost always with more than 400 votes if not by voice. But up until now, we on this side of the aisle have been pretty much left out of that drafting process. The discussion draft before us reflects that. In many respects, it appears that it will be more of a messaging bill than one that can truly advance safety practices and make it through the process and to the President to be signed before the end of September. And to be frank, this bill, I don't think, has a ghost of a chance of going anywhere in the Senate, let alone getting signed by the President in the way--the shape and form that it is now. So I know--I do know that we all share many of the same priorities when it comes to pipeline safety and we have worked together, and this is demonstrated by the strong bipartisan work that the committee produced the last time we reauthorized PHMSA and enacted real pipeline safety reform. We need to continue on those bipartisan practices. So I urge you today to hit the button reset. Let us open the process up. Let us work together across the aisle rather than rushing this draft through the subcommittee. Let us give PHMSA an opportunity to testify on their reauthorization proposal and provide us with the technical assistance on the drafting. So far, they have not done so. We owe it to our constituents to have a more open and transparent process where all of the relevant stakeholders, particularly PHMSA, when they could have an opportunity to present their views on the reform proposals. One, I believe that we have got to make sure that PHMSA and the States have the resources and the tools that they need to perform their pipeline safety responsibilities. Second, we need to hold PHMSA's feet to the fire accountable for completing the outstanding congressional mandates and finishing the pending rulemakings left over from prior reauthorizations, absolutely. And third, we need to make sure that PHMSA, State regulators, and pipeline operators are incorporating lessons learned from prior accidents, integrating new technologies and continue to improve on safety. I am afraid that this draft falls short in several critical areas. For one, it appears that the draft could slow the pace of PHMSA's rulemaking by encouraging frivolous lawsuits that result in sue and settle agreements, potentially diverting agency resources from developing important safety regulations. It could also lengthen the interagency review process by having PHMSA and OMB in complete rulemakings that fail to consider the full range of costs and benefits. This draft may also have the unintended effect of weakening pipeline safety--not a good thing. Particularly concerned that the draft would arbitrarily mandate certain technologies such as automatic valves on liquid pipelines, which could lead to accidental pipeline ruptures when that liquid backs up. This draft could also prohibit direct assessment of pipelines, which is a valuable method for evaluating and managing corrosion threats. The discussion draft may also divert PHMSA's limited resources by expanding its jurisdiction to include regulation of gathering lines, which are effectively managed at the State level today. Finally, I am concerned that the draft does nothing to encourage innovation or the adoption of new pipeline safety technologies or safety processes. It also fails to incentivize pipeline operators to voluntarily exceed minimum safety requirements. I don't think that the draft goes far enough to prevent cyber attacks, something we have all been worried about, and discourage bad actors from damaging pipeline facilities. So, as we move forward, I plan to keep an open mind, especially given our history with pipeline safety and our good working excellent relationship. But if we hit recess and take--excuse me, if we hit reset and take our time on this rather than speeding ahead to subcommittee markup next week, I think we will have a much better bill than what's before us today. And with that, I yield back. [The prepared statement of Mr. Upton follows:] Prepared Statement of Hon. Fred Upton Thank you, Mr. Chairman for holding this hearing to continue our work on pipeline safety reauthorization. Pipeline safety is one of my highest priorities this Congress, and I had hoped we could work on this bill together. Unfortunately, up until now, Republicans have been left out of the drafting process. The discussion draft before us today reflects this. In many respects, it appears to be more of a messaging bill than one that will truly advance safety practices and make it through the process and onto the President's desk. To be frank, this bill does not have a chance of passing the Senate and getting signed by the President. Mr. Chairman, I believe we all share many of the same priorities when it comes to pipeline safety. This is demonstrated by the strong bi-partisan work this committee produced the last time we reauthorized PHMSA and enacted pipeline safety reforms. We should continue to build on those bi-partisan practices this time around. I urge you to hit reset. Let's open this process up and work together across the aisle. Rather than rushing this draft through the subcommittee, let's give PHMSA an opportunity to testify on their reauthorization proposal and provide us with technical assistance on the drafting. We owe it to our constituents to have a more open and transparent process, where all the relevant stakeholders have an opportunity to present their views and reform proposals. I have three main goals for reauthorization: First, I believe that we need to make sure that PHMSA and the States have the resources and the tools they need to perform their pipeline safety responsibilities. Second, we need to hold PHMSA accountable for completing the outstanding Congressional mandates and finishing the pending rulemakings leftover from prior reauthorizations. Third, we need to ensure that PHSMA, State regulators, and pipeline operators are incorporating lessons-learned from prior accidents, integrating new technologies, and continuing to improve safety. I am afraid the discussion draft before us today falls short in several critical areas. For one, it appears that the draft could slow the pace of PHMSA's rulemakings by encouraging frivolous lawsuits that result in sue and settle agreements, potentially diverting agency resources from developing important safety regulations. It could also lengthen the interagency review process by having PHMSA send OMB incomplete rulemakings that fail to consider the full range of costs and benefits. The discussion draft may also have the unintended effect of weakening pipeline safety. I am particularly concerned that the draft would arbitrarily mandate certain technologies, such as automatic valves on liquid pipelines, which could lead to accidental pipeline ruptures. The draft would also prohibit direct assessment of pipelines, which is a valuable method for evaluating and managing corrosion threats. The discussion draft may also divert PHMSA's limited resources by expanding its jurisdiction to include regulation of gathering lines, which are effectively managed at the State level today. Finally, I am concerned the draft does nothing to encourage innovation or the adoption of new pipeline safety technologies or safety processes. It also fails to incentivize pipeline operators to voluntarily exceed minimum safety requirements. I also don't think the draft goes far enough to prevent cyber attacks and discourage bad actors from damaging pipeline facilities. As we move ahead, I plan to keep an open mind, especially given our history with pipeline safety, and our good working relationship. I hope that after today we can hit ``reset'' and take our time on this, rather than speeding ahead to a subcommittee markup next week. This is such an important issue and it has historically been a fully bipartisan process. With that, I look forward to the testimony of our witnesses and working closely with you in the weeks ahead. Thank you, I yield back. Mr. Rush. I thought you were my friend. [Laughter.] Mr. Upton. My buddy. Mr. Rush. The Chair now recognizes the chairman of the full committee, Mr. Pallone, for 5 minutes. OPENING STATEMENT OF HON. FRANK PALLONE, Jr., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY Mr. Pallone. Thank you, Mr. Chairman. Today's hearing focuses on two legislative proposals to improve pipeline safety in America. In May, the subcommittee held an oversight hearing to hear from stakeholders about what changes are needed as we consider reauthorization of the Pipeline Safety Act. Since we last reauthorized this critical Federal program--3 years ago this week--several major pipeline incidents have occurred, underscoring the need for additional reforms to our Federal pipeline safety programs. Last year, a failure in Massachusetts' Merrimack Valley killed one person, injured 21 others, and damaged more than 130 homes. We have made progress on Federal pipeline safety over the last 20 years, since the Olympic gasoline pipeline explosion in Bellingham, Washington, killed three young people. But preventable incidents still occur and we must do everything in our power to ensure our national pipeline network is as safe as possible. The Safer Pipelines Act of 2019, a discussion draft the subcommittee will review today, makes several critical changes to the Federal pipeline safety program. A major overarching problem with the Federal pipeline safety program is that it takes the Pipeline and Hazardous Materials Safety Administration--PHMSA--too long to finalize congressional mandates. There are still outstanding rulemakings that were required in 2011 and 2016 reauthorizations that PHMSA has failed to finish, and this is unacceptable. At our oversight hearing in May, we heard that the biggest cause for delay is the prescriptive cost-benefit analysis required by the 1996 reauthorization. The discussion draft removes this duplicative requirement while still ensuring PHMSA rules are subject to the same economic analysis that every other major rule receives. The proposal also restores the mechanism for citizens to pursue legal action to compel PHMSA to fulfill its statutory duties, which was a major issue in the aftermath of the 2010 San Bruno pipeline explosion that killed eight people in Northern California. San Francisco sued the Federal Government for having abjectly failed to enforce safety standards. But the suit was dismissed because the court held that the law did not permit mandamus-type citizen suits. Another critical area addressed in the discussion draft is the need for modifying the ridiculously high bar for imposing criminal penalties in current law. The proposal changes the standard to ``knowingly or recklessly,'' which would bring the pipeline criminal standard in line with that of the Hazmat statute. The Government must be able to hold companies accountable when they knowingly or recklessly ignore the law. The Trump administration has submitted its own reauthorization proposal, which includes a provision to criminalize pipeline construction protests. I have no intention of allowing a pipeline safety bill to be used as a vehicle for stifling legitimate dissent and protest. That provision is dead on arrival as far as I am concerned. There are, however, a number of useful ideas within the administration's proposal and I look forward to working with my colleagues and the Department of Transportation to find common ground on these issues. The subcommittee will also review the Leonel Rondon Pipeline Safety Act, introduced by Representatives Trahan, Kennedy, and Moulton. This bill is a direct response to the failures that occurred during the Merrimack Valley incident in Massachusetts and it would improve the management of gas pipeline distribution systems and fix gaps in safety regulations that led to the tragedy in Massachusetts. I commend the bill sponsors for their thoughtful effort and I am hopeful we can include several ideas from their proposal in a final pipeline safety reauthorization bill. The ideas included in the Safer Pipelines Act are important to me and to communities around the country. But this is a draft and serves as a starting point for discussion and collaboration, just as this hearing is a means to get all ideas for reauthorization out into the open and onto the table. So I look forward to hearing from my committee colleagues on both sides of the aisle today on their ideas for reauthorization because I hope and expect that the final product the committee reports will be a strong bipartisan bill and I am committed to working in a bipartisan manner to update and improve this critical Federal program so that we can produce a final bill that we can all be proud of and, obviously, gets passed in the Senate and signed by the President. So thank you, Mr. Chairman. I yield back. [The prepared statement of Mr. Pallone follows:] Prepared Statement of Hon. Frank Pallone, Jr. Today's hearing focuses on two legislative proposals to improve pipeline safety in America. In May, the subcommittee held an oversight hearing to hear from stakeholders about what changes are needed as we consider reauthorization of the Pipeline Safety Act. Since we last reauthorized this critical Federal program--3 years ago this week--several major pipeline incidents have occurred, underscoring the need for additional reforms to our Federal pipeline safety programs. Last year, a failure in Massachusetts' Merrimack Valley killed one person, injured 21 others and damaged more than 130 homes. We have made progress on Federal pipeline safety over the last 20 years, since the Olympic Gasoline Pipeline explosion in Bellingham, Washington, killed three young people. But preventable incidents still occur, and we must do everything in our power to ensure our national pipeline network is as safe as possible. The Safer Pipelines Act of 2019, a discussion draft the subcommittee will review today, makes several critical changes to the Federal pipeline safety program. A major, overarching problem with the Federal pipeline safety program is that it takes the Pipeline and Hazardous Materials Safety Administration (PHMSA, FIM-zuh) too long to finalize Congressional mandates. There are still outstanding rulemakings that were required in the 2011 and 2016 reauthorizations that PHMSA has failed to finish. This is unacceptable. At our oversight hearing in May, we heard that the biggest cause for delay is the prescriptive cost-benefit analysis required by the 1996 reauthorization. The discussion draft removes this duplicative requirement, while still ensuring PHMSA rules are subject to the same economic analysis that every other major rule receives. The proposal also restores the mechanism for citizens to pursue legal action to compel PHMSA to fulfill its statutory duties, which was a major issue in the aftermath of the 2010 San Bruno pipeline explosion that killed eight people in Northern California. San Francisco sued the Federal Government for having abjectly failed to enforce safety standards, but the suit was dismissed because the court held that the law did not permit mandamus-type citizen suits. Another critical area addressed in the discussion draft is the need for modifying the ridiculously high bar for imposing criminal penalties in current law. The proposal changes the standard to ``knowingly or recklessly,'' which would bring the pipeline criminal standard in line with that of the Hazmat statute. The Government must be able to hold companies accountable when they knowingly or recklessly ignore the law. The Trump administration has submitted its own reauthorization proposal, which includes a provision to criminalize pipeline construction protests. I have no intention of allowing a pipeline safety bill to be used as a vehicle for stifling legitimate dissent and protest. That provision is dead on arrival as far as I'm concerned. There are, however, a number of useful ideas within the administration's proposal and I look forward to working with my colleagues and the Department of Transportation to find common ground on these issues. The subcommittee will also review the Leonel Rondon Pipeline Safety Act, introduced by Representatives Trahan, Kennedy and Moulton. This bill is a direct response to the failures that occurred during the Merrimack Valley incident in Massachusetts. It would improve the management of gas pipeline distribution systems and fix gaps in safety regulations that led to the tragedy in Massachusetts. I commend the bill sponsors for their thoughtful effort, and I am hopeful we can include several ideas from their proposal in a final pipeline safety reauthorization bill. The ideas included in the Safer Pipelines Act are important to me and to communities around the country. But this is a draft and serves as a starting point for discussion and collaboration, just as this hearing is a means to get all ideas for reauthorization out into the open and onto the table. I look forward to hearing from my committee colleagues on both sides of the aisle today on their ideas for reauthorization because I hope and expect that the final product the committee reports will be a strong, bipartisan bill. I am committed to working in a bipartisan manner to update and improve this critical Federal program so that we produce a final bill that we can all be proud of and support. Mr. Rush. The gentleman yields back. The Chair now recognizes Mr. Flores, who is going to read the statement of the ranking member, Mr. Walden. Mr. Flores, you're recognized for 5 minutes. [Whereupon Mr. Flores read Mr. Walden's statement.] OPENING STATEMENT OF HON. GREG WALDEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OREGON Mr. Flores. Thank you, Mr. Chairman. The committee's work to reauthorize and modernize the Nation's pipeline safety program is important and deserves close, careful, and bipartisan attention. This is the hallmark of this committee's work, especially when it comes to safety-related legislation. While it looked like that we were on the right track a month ago, we haven't made much progress since then. In part, I think this is because we have not been adhering completely to our past bipartisan practices. Judging by the discussion draft before us today, it appears that the Democrats have chosen to go along up until this point, releasing a partisan draft, and that on our initial read it requires a lot of work. Mr. Chairman, Members deserve the ability to gather the views of all relevant stakeholders and to understand the full impact of legislation before voting on it. The discussion draft before us today was only released last week, and the process was so rushed that, as I understand it, PHMSA didn't have time to prepare testimony. While we were fortunate to have PHMSA testify back in May, it has come to my attention that our Members' questions for the record still have not been submitted. This is over 6 weeks later. So here we are today with many unanswered questions for PHMSA and facing the prospect of a subcommittee markup next week. Mr. Chairman, as you know, pipeline safety reauthorization has, historically, been a fully bipartisan process. Under the Republican majority, Democrats and Republicans sat down together to work through the issues and to draft a bill. I am disappointed that more than a month has gone by and we still have nothing to show for it. As we move ahead, I hope that we can get a commitment to slow down and work together. While we may not agree on everything, I believe that there are many areas where we can strengthen the law to drive innovation and to improve safety. First and foremost, we should recognize that pipeline safety is a shared responsibility between PHMSA, the States, and pipeline operators. There's a lot that Congress can do to encourage pipeline operators to improve their performance. However, I have serious concerns over the discussion draft's one-size-fits-all approach and overly prescriptive mandates. This administration inherited a number of missed deadlines for pipeline safety rulemakings from the prior administration. However, PHMSA officials have worked hard and have made substantial progress in this regard. Certain impacts from this discussion draft actually could delay these important rulemakings to improve safety and to bog down the process even further. This does not serve the public interest. While it can be tempting, we should not get too far ahead of ourselves. Congress should recognize and account for the safety improvements that will be implemented through the outstanding congressional mandates in the pending rulemakings. PHMSA is making progress on several important regulations addressing hazardous liquid pipelines, gas pipelines, valve and rupture protection, and plastic pipes, among other regulatory actions. Together, these rules represent many years of work and we should not pull out the rug and disrupt the progress by injecting more regulatory uncertainty. Our reauthorization bill should reflect this reality by continuing to encourage a cooperative flexible approach to pipeline safety. We should make sure that PHMSA and the States have adequate resources to inspect and protect the Nation's pipeline system. We should hold PHMSA accountable for completing overdue rulemakings. And finally, we should encourage pipeline operators to adopt new technologies and to continue to improve safety. With this, Mr. Chairman, thank you for holding this hearing, and I look forward to hearing the testimony of the witnesses. I yield back the balance of my time. [The prepared statement of Mr. Walden follows:] Prepared Statement of Hon. Greg Walden The committee's work to reauthorize and modernize the Nation's pipeline safety program is important and deserves close, careful, and bi-partisan attention. This is the hallmark of the committee's work, especially when it comes to safety related legislation. While it looked like we were on the right track a month ago, we haven't made much progress since then. In part, I think this is because we have not been adhering completely to our past bipartisan practices. Judging by the discussion draft before us today, it appears that the Democrats have chosen to go it alone up until this point, releasing a partisan draft that on our initial read requires a lot of work. Mr. Chairman, Members deserve the ability to gather the views of all relevant stakeholders and understand the full impact of legislation before voting on it. The discussion draft before us today was only released last week, and the process was so rushed that, as I understand it, PHMSA didn't have time to prepare testimony. While we were fortunate to have PHMSA testify back in May, it has come to my attention that our Member's Questions for the Record have not been submitted. So here we are today, with many unanswered questions for PHMSA, and facing the prospect of a subcommittee markup next week. Mr. Chairman, as you know, pipeline safety reauthorization has historically been a fully bipartisan process. Under the Republican majority, Democrats and Republicans sat down together to work through the issues and draft a bill. I am disappointed that a month has gone by and we have nothing to show for it. As we move ahead, I hope that we can get a commitment to slow down and work together. While we may not agree on everything, I believe there are many areas where we can strengthen the law to drive innovation and improve safety. First and foremost, we should recognize that pipeline safety is a shared responsibility between PHMSA, the States, and pipeline operators. There is a lot Congress can do to encourage pipeline operators to improve their performance; however, I have serious concerns by the discussion draft's ``one size fits all'' approach and overly prescriptive mandates. This administration inherited a number of missed deadlines for pipeline safety rulemakings; however, PHMSA officials have worked hard and made substantial progress. Certain impacts from this discussion draft actually could delay these important rulemakings to improve safety and bog down the process even further. This will not serve the public interest. While it can be tempting, we should not get too far ahead of ourselves. Congress should recognize and account for the safety improvements that will be implemented through the outstanding congressional mandates and pending rulemakings. PHMSA is making progress on several important regulations addressing hazardous liquid pipelines, gas pipelines, valve and rupture protection, and plastic pipes, among other regulatory actions. Together, these rules represent many years of work, and we should not pull out the rug and disrupt the progress by injecting more regulatory uncertainty. Our reauthorization bill should reflect this reality by continuing to encourage a cooperative, flexible approach to pipeline safety. We should make sure PHMSA and States have adequate resources to inspect and protect the Nation's pipeline system; we should hold PHMSA accountable for completing overdue rulemakings; and finally, we should encourage pipeline operators to adopt new technologies and continue to improve safety. With that, Mr. Chairman, thank you for holding this hearing and I look forward to the testimony of the witnesses. I yield back the balance of my time. Mr. Rush. The gentleman yields back. The Chair would like to remind Members that, pursuant to committee rules, all Members' written opening statement shall be made part of the record. I would like to now introduce our panel of witnesses for today's hearing. On my left is Ms. Christina Sames, the vice president of operations and engineering, of the American Gas Association. Next to her is Mr. Chuck Lesniak, the principal of CL3 Consulting, on behalf of the Pipeline Safety Trust. Next to Mr. Lesniak is Mr. Andrew Black. Mr. Black is the president and CEO of the Association of Oil Pipe Lines. And last but not least is Mr. Christopher ``C.J.'' Osman. He is the director of operations, safety, and integrity of the--for the Interstate Natural Gas Association of America. We want to thank all of our witnesses for joining us today and we look forward to your testimony. At this time, the Chair will now recognize each witness for 5 minutes to provide their opening statement. But let me caution you before we begin. I want to explain this lighting system. There is a system here, you know. In front of you is a series of lights. The light will initially be green at the start of your opening statement. The light will turn yellow when you have 1 minute remaining, and please begin to wrap up your statement at that point. The light will turn red when your time expires. If you continue, then we will put you over in the corner with a dunce cap on. [Laughter.] Mr. Rush. Ms. Sames, you are now recognized for 5 minutes for the purposes of an opening statement. STATEMENTS OF CHRISTINA SAMES, VICE PRESIDENT, OPERATIONS AND ENGINEERING SERVICES, AMERICAN GAS ASSOCIATION; CHUCK LESNIAK III, PRINCIPAL, CL3 CONSULTING; ANDREW J. BLACK, PRESIDENT AND CHIEF EXECUTIVE OFFICER, ASSOCIATION OF OIL PIPE LINES; C.J. OSMAN, DIRECTOR OF OPERATIONS, SAFETY, AND INTEGRITY, INTERSTATE NATURAL GAS ASSOCIATION OF AMERICA STATEMENT OF CHRISTINA SAMES Ms. Sames. And I don't want to be put in the corner. So, Chairman Rush, Ranking Member Upton, and members of the subcommittee, I am Christina Sames, vice president of operations and engineering at the American Gas Association. Prior to AGA, I worked at Pipeline Research Council International and spent 12 years at PHMSA, where I worked to advance pipeline safety initiatives. AGA represents more than 200 local energy companies that deliver natural gas to 74 million customers. The gas utilities distribution pipelines are the final link in the delivery chain that brings natural gas from the well head to the burner tip. AGA member employees live in the communities that they serve, interact daily with the customers and State regulators who oversee pipeline safety locally. Safety is at the very core of AGA and its members, and we go well beyond regulations to improve pipeline safety. We take pride in the overall safety performance but recent incidents are a painful reminder we must continue to raise the bar on safety. Any incident is one incident too many. The industry is supportive of flexible, risk-based, and practical improvements to pipeline safety that reflect lessons learned from past pipeline incidents. There's little in the House Energy and Commerce bill that accomplishes that particular goal. For example, the proposed legislation removes the requirement that regulations be reasonable or cost effective. The cost-benefit analysis was mandated to ensure that regulations do not put an undue burden on customers that bear the cost of mandates without a measurable improvement to the safe delivery of natural gas. That's logical, and should continue as the criteria for developing regulations. There are other provisions in the Energy and Commerce bill and the Markey-Trahan bill that do not appear to improve pipeline safety. For example, eliminating the use of direct assessment, a tool that not only determines that corrosion has occurred but it is predictive and indicates where corrosion could occur. That should be allowed to be continued. Requiring operators to send integrity management plans, operation and maintenance manuals, pipeline characteristics, and many other documents to emergency responders. In my discussions over the years with first responders, their concerns have centered around getting way too much information that sits on the shelf. They want condensed, meaningful, and understandable information. Increasing civil penalties, expanding criminal liability to include recklessness, and adding a provision that encourages litigation against PHMSA will do little to improve pipeline safety. Core to a strong safety culture is encouraging self- disclosure within a company and with the regulators. A more productive alternative would be to encourage voluntary sharing of safety issues as proposed by the administration bill. AGA is supportive of actually many of the provisions in the administration's bill, including the safety incentives program that encourages companies to exceed regulations, pipeline safety pilot programs for technology advances, and criminal penalties for those that damage, destroy, vandalize, or otherwise disrupt operation and create pipeline safety issues. During the pipeline safety reauthorization process, AGA asks the subcommittee to consider four high-level priorities. One, preserve industry's engagement in pipeline safety rulemaking by upholding PHMSA's regulatory process. Two, provide support, flexibility, and regulations by recognizing that gas distribution systems differ, and avoid one-size-fits-all prescriptive regulations. Three, don't obstruct pipeline safety replacement programs at the State level via new mandates that delay replacements or require replacements faster than work can be accomplished safely, reliably, and without compromising quality. And four, focus on provisions that improve pipeline safety by avoiding extraneous legal, regulatory, and administrative provisions that really hamper the regulatory process. Our full statement covers a number of pipeline safety reauthorization topics. I would like to reiterate industry's commitment to safety. Public safety, worker safety, and pipeline safety are all core values that affect everything that we do and how we do it. We know that without safety nothing else matters. Thank you for the opportunity to participate in this hearing and I look forward to your questions. [The prepared statement of Ms. Sames follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Rush. The Chair now recognizes Mr. Lesniak for 5 minutes. STATEMENT OF CHUCK LESNIAK III Mr. Lesniak. Thank you. Good morning, Chairman Rush, Ranking Member Upton, and members of the committee. Thank you for inviting me to speak about pipeline safety today. Before we get into various pipeline safety issues, let me give you a brief overview of where we stand today regarding the safety of pipelines in this country. According to PHMSA data, over the past 5 years there's been on average nearly two reportable pipeline incidents every day that cause the death or hospitalization of over seven people every month. These incidents have caused nearly $2.4 billion in property damage and released over 18 million gallons of hazardous liquids into the environment. While progress has been made over the last 20 years and pipelines are a critical part of our Nation's energy infrastructure, pipelines are near our homes, schools, shopping centers, lakes, rivers, and coastlines and we simply must do better to protect our communities and the environment. We thank the committee for releasing a strong bill for discussion as part of this year's reauthorization process and we also thank and recognize the Members from Massachusetts for their efforts to introduce good legislation to address the tragedy that occurred in the Merrimack Valley last year. We support the vast majority of the provisions in these bills. We certainly support the parts of these bills that make it easier to pass needed regulations and to meaningfully enforce those regulations. This would include Section 4 of this committee's bill to correct the unnecessary duplication of cost-benefit requirements in the statute; Sections 8 and 9, making both the civil and criminal penalties more meaningful; and Section 7 that helps to align these statutes with many others, allowing citizens to petition the courts when PHMSA fails in its duty to carry out congressional mandates. It has long been understood that part of the pipeline safety problem in this country is that PHMSA and its State regulatory partners are often underfunded for the task at hand. We thank Congress for their previous support to expand the number of PHMSA inspectors and we strongly support the level of appropriations in this committee's draft bill to support the needed increases to the reimbursement rates for State programs, allow PHMSA to better conduct data and risk analysis, their special program implementation, and for enforcement and regulatory efforts. As the trust has pointed out for over a decade, according to PHMSA there are over 435,000 miles of unregulated natural gas gathering lines in this country, many of which are functionally the same as gas transmission pipelines and present similar hazards to the public and the environment. We strongly support the change in definitions in Section 3 that would bring the higher pressure gathering lines under some sort of Federal minimum standards. We also believe that it's very important that the location of these lines be known to regulators, emergency responders, and surrounding communities. So we also hope you will amend Section 60132 of the statute to remove the harmful clause that exempts these pipelines from being included in the national pipeline mapping system. We really appreciate the provision of this committee's bill in the Leonel Rondon Pipeline Safety Act that proposes to make clear in the statute what PHMSA has failed to make clear in the regulations. For well over 20 years, the NTSB, Congress, and others have tried to get PHMSA to implement meaningful rules regarding leak detection and automated valves. We support Section 5's effort to make this clear by adding it directly to the statute. We also suggest that it be made clear that PHMSA must adopt a clear standard for effectiveness for any new rules regarding leak detection. We support Section 2, 3, 4, and 6 of the Leonel Rondon Pipeline Safety Act which clarifies important lessons unfortunately learned through the Merrimack Valley tragedy. We continue to hear complaints from local emergency responders about the difficulty in obtaining meaningful information about the pipelines that run through their communities. We support Section 6 of this bill that will go a long way to alleviating this problem and ask that you ensure it includes the information that NTSB has recommended be provided to emergency responders. The administration has also recently released the Protecting Our Infrastructure of Pipelines Enhancing Safety Act of 2019. While it's a substantially weaker bill than what this committee has drafted, there are many good provisions in it that we support, some of which are correctly aimed at fixing issues learned in the Merrimack Valley tragedy. There are also some troubling sections in the administration's bill that we hope you will not adopt. Please see our written testimony for specifics. I see my time is almost up and so thank you again for inviting me to testify today. I am glad to answer any questions. [The prepared statement of Mr. Lesniak follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Rush. The Chair now recognizes Mr. Black for 5 minutes for the purposes of an opening statement. STATEMENT OF ANDREW J. BLACK Mr. Black. Thank you, Mr. Chairman, Ranking Member. I am Andy Black, president and CEO of the Association of Oil Pipe Lines. AOPL represents owners and operators of pipelines transporting crude oil, refined petroleum products like gasoline, diesel, jet fuel, and home heating oil, and industrial products like propane and ethane. Pipeline safety reauthorization legislation offers us an opportunity to continue improvements in pipeline safety. We all seek safer pipelines as the subcommittee's discussion draft title calls for. Reauthorization should be a place where we can collaborate, work on proposals that bring stakeholders together, and protect each other from harm. Unfortunately, the discussion draft misses some opportunities for a shared path of collaboration and eliminates other opportunities in the law today. Instead, the liquid pipelines industry asks that we move forward with positive solutions to harness the benefits of innovation and technology to improve pipeline safety, bring stakeholders together to improve PHMSA programs and regulations, and protect the public environment from harm. Technology and innovation offer opportunities to move pipeline safety forward. High-tech inspection tools can now scan pipelines like an MRI or an ultrasound at the doctor's office. And yet, crucial sessions of PHMSA's inspection and maintenance regulations are nearly 20 years old and have gaps that fail to address problems like cracking in pipelines. AOPL recommends a pilot program to provide PHMSA the data it needs to modernize and fill gaps in regulations. Improving how PHMSA performs its pipeline safety mission is important to liquid pipeline operators. The industry joined with PHMSA, State regulators, pipeline safety advocates, environmental advocates, and representatives of organized labor to recommend creation of a voluntary information sharing program. This collaborative program, modelled after a successful FAA program for the aviation industry and recommended by a past Congress, would empower pipeline safety stakeholders to jointly solve pipeline safety issues. Unfortunately, authorization for this program is not in the discussion draft. Instead, there are proposals that drive stakeholders apart and make it hard for PHMSA to improve pipeline safety. The discussion draft eliminates requirements for PHMSA to benefit from its technical advisory committees and takes away seats at the table for safety advocacy groups, environmental groups and pipeline operators during the rulemaking process. The discussion would deprive the public of expert discussion of the costs and benefits of proposals. The discussion draft would even eliminate requirements that PHMSA consider whether its regulations would be reasonable. I can hardly imagine the subcommittee wants PHMSA to consider only proposals that would be unreasonable. The discussion draft proposal to add a criminal reckless standard would chill a core component of pipeline safety. Operators assess and rank the risks of their pipeline systems and then perform preventative maintenance based on a prioritization of risk. Comprehensive risk management is at the heart of safety management systems that have been encouraged by the NTSB and PHMSA. Changing the standard to reckless would lead to second guessing, technical risk assessment decisions, with the benefit of 20/20 hindsight to make a case that an operator should have known that a risk would have caused an incident. Pipeline operators also may be discouraged from openly sharing information about incidents, a key component of our programs to improve safety industry wide. Applying an ambiguous legal standard of recklessness by criminalizing pipeline risk assessment will not advance pipeline safety. The discussion draft provision to require automatic shut off valves on liquid pipelines would actually hurt pipeline safety by creating the risk of quickly forcing closed pipeline valves in an uncontrolled way, as the ranking member said, leading to a pressure surge and possible pipeline rupture. GAO studied this at the request of Congress and confirmed several cases in the past where similar conditions led to ruptures and releases of gasoline and crude oil. Finally, the pipeline industry believes it is important to protect the surrounding public and the environment from attacks on pipelines. There are loopholes to close in Federal law that prevent enforcement against dangerous valve-turning activity condemned by pipeline safety advocates as well as the industry. We commend PHMSA for putting forward a proposal to protect the public and the environment from attacks. Yesterday organized labor, through the International Union of Organized Engineers, the Laborers' International Union of North America, North America's Building Trade Unions, and the United Association of Plumbers and Pipefitters added their support for this effort, writing, ``For the safety of American families, the environment, and the skilled trade workers dedicated to safely building and maintaining our infrastructure, Congress should prioritize closing those loopholes in Federal law.'' We hope to work with subcommittee on tailored legislation to address this safety priority. I hope we can come together around these proposals for greater stakeholder collaboration, greater use of new technologies and innovation, and greater ways to improve PHMSA programs and protect the public from harm. Thank you. [The prepared statement of Mr. Black follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Rush. The Chair thanks the gentleman. The Chair now recognizes Mr. Owesman--Osman? Mr. Osman. Osman. Mr. Rush [continuing]. Osman for 5 minutes for the purposes of an opening statement. STATEMENT OF C.J. OSMAN Mr. Osman. Chairman Rush, Ranking Member Walden, Ranking Member Upton, members of the subcommittee, good morning. My name is C.J. Osman, and I am the director of operations, safety, and integrity at the Interstate Natural Gas Association of American, INGAA. Thank you for the opportunity to testify today. INGAA appreciates the important work that the subcommittee is undertaking and we look forward to working with you on the reauthorization bill that enhances pipeline safety in America. INGAA's members transport natural gas through a network of transmission pipelines that are analogous to the interstate highway system. These are large capacity critical infrastructure systems that span multiple States or regions to bring our Nation's natural gas to market. That natural gas is used to heat our homes, to cook our food, to power our Nation's industries, and to generate electricity. Our industry is relentlessly committed to its obligation to the communities we serve to operate safely, reliably, and responsibly. INGAA asks the subcommittee to consider four key points in its deliberations to reauthorize the Pipeline Safety Act. First, INGAA strongly supports updating the act to reflect modern pipeline safety technologies and engineering practices. Many PHMSA regulations are outdated, which can create a barrier to implementing 21st century programs. Therefore, INGAA supports PHMSA's legislative proposals to implement a new technology pilot program and to require timely incorporation of consensus technical standards by reference. Additionally, Congress should direct PHMSA to complete its ongoing rulemaking to update the 50-year-old class location change regulations. Second, Congress should embrace the recommendations of PHMSA's advisory committees when updating the Pipeline Safety Act. The Gas Pipeline Advisory Committee provides technical and policy input on PHMSA's natural gas rulemakings. The advisory committee is comprised of equal representation from members of the public, Federal and State agencies, and natural gas operators. INGAA is concerned that the subcommittee's proposed changes to the maximum allowable operating pressure and direct assessment requirements contradict PHMSA's pending gas transmission safety rules and would overrule years of advisory committee discussions. For example, while spike testing is an important tool, it is an aggressive technique that is not relevant to confirming maximal allowable operating pressure. If enacted, the broad application of spike testing proposed in the subcommittee's discussion draft would risk damaging our Nation's natural gas infrastructure and not make it safer. Additionally, professional engineer licenses are not necessary for all pipeline engineers. Different tasks require different knowledge, training, and skills. Instead of restrictive licensure requirement, INGAA supports the comprehensive management of change requirement in PHMSA's pending gas transmission rules. This approach will more effectively ensure a competent technical review. Furthermore, instead of issuing a self-executing mandate directing operators to make more information available to the public and to first responders, Congress should leverage the expertise of PHMSA and the diversity of the agency's advisory committees to evaluate this issue. Third, INGAA urges the subcommittee to retain important aspects of the PHMSA rulemaking process. Congress should retain the cost-benefit analysis requirement in the Pipeline Safety Act. This requirement ensures that PHMSA evaluates available alternatives to identify the best option when developing new regulations and it requires a transparent public review of PHMSA's analysis. No PHMSA regulation has ever been overturned on the basis of the cost-benefit analysis requirement demonstrating that the act currently provides a clear legally defensible standard. Additionally, adding a mandamus provision to allow citizens to sue PHMSA would not enhance pipeline safety. PHMSA's best position to make decisions regarding how to regulate pipelines and Congress and sufficient oversight tools to require the agency to meet its statutory obligations. INGAA shares the subcommittee's frustration over PHMSA's delays in completing new rulemakings. But rather than bypassing the rulemaking process through self-executing mandates from mandamus, Congress should strengthen PHMSA's rulemaking capabilities. Therefore, we strongly support solutions such as the subcommittee's direct hire proposal. Fourth, several of the proposals would make unnecessary or harmful changes to the enforcement provisions in the Pipeline Safety Act. This would encourage litigation and nondisclosure at the expense of collaboration and safety culture. There is no need to modify the existing criminal provision for operator violations. Federal prosecutors have successfully brought criminal cases against pipeline operators where appropriate and there is no evidence that the current statutory language has created a bar to criminal prosecution. Furthermore, PHMSA's civil penalty authority is not lacking. The current limits exceed those and many other health, safety, and environmental protection statutes. In addition to fines, PHMSA issues corrective action orders which can produce immediate safety benefits. Thank you again for the opportunity to testify. INGAA stands ready support a timely reauthorization bill that enhances the safety of our Nation's pipeline infrastructure. [The prepared statement of Mr. Osman follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Rush. The Chair thanks all of the witnesses for their opening statements. We've now concluded opening statements, and we will now move toward Member questioning. Members will have 5 minutes to ask questions about witnesses and I will start this process by recognizing myself for 5 minutes. Mr. Lesniak, in your testimony you note that currently Section 60132 exempts gathering lines from the National Pipeline Mapping system, meaning that there is no way to know exactly where these lines are actually located. Can you discuss with us the main differences between transmission lines, which are regulated, and gathering lines, which are not? Do gathering lines pose a similar public safety risk as transmission lines and, if so, does the language in the discussion draft help address this issue or is there additional language needed to regulate these lines and make them a part of the mapping system? Mr. Lesniak. Thank you for that question. I spent a good part of my career with the city of Austin as emergency responder and these gathering lines, many of them, are indistinguishable from gas transmission pipelines, and they ought to be--at least the location and basic information about these lines ought to be available to local governments, local emergency responders, and the general public. To me, it makes no sense that I can go online using the National Pipeline Mapping System and find out where gas transmission lines are in my community and emergency responders can do the exact same thing so that they can be prepared to respond to those kinds of incidents on those pipelines, but a gathering line with the exact same type of characteristics that information is not available to local emergency responders. And so the answer is yes, I think that that's a critical piece of the proposed bill and is critical to keeping our community safe. Mr. Rush. I want to go to the issue of working with issues at PHMSA. Specifically, does PHMSA have the sufficient number of professional staff with the right expertise to handle all of the responsibility that falls under the agency's jurisdiction including conducting pipeline inspection and finalizing its rulemaking? Again, does the discussion draft help address this issue and are there other provisions that we should consider adding to this bill? Mr. Lesniak. You know, in my opinion, I think PHMSA is chronically underfunded and understaffed. They compete with the industry, with--for expertise and struggle with keeping that expertise within the agency as they develop experts. And so I think the direct hire provision in the discussion draft is very helpful for that. I think that many of the stakeholders, industry and pipeline safety advocates, share that concern about PHMSA's staffing, and anything that Congress can do to facilitate hiring and retention of critical staff for PHMSA is a good thing and this bill goes in that direction. Mr. Rush. And then, Mr. Lesniak, Section 6 of the discussion draft entitled ``Community Right to Know in Emergency Preparedness'' is designed to make critical operational information available to local communities and to first responders. Additionally, Mr. Lesniak, Section 6 of H.R. 2139 requires the production and maintenance of complete up-to-date records of distribution systems and the requirement that these records be available to the relevant regulators. While these provisions would strengthen the engagement of pipeline operators with local emergency planning committees and local first responders while also providing the public with frequently requested information, why are these so critical to both safety reasons and building the public trust? Mr. Lesniak. And, again, as based on my career as a first responder, you know, I was surprised when I got involved in pipeline issues how difficult it was to get really critical technical information about pipelines in our community. It really is dependent on the operator of that pipeline and you have got operators that are much more open about sharing technical information about their pipelines and you have got operators that just refuse to provide essentially any information at all that they're not required to provide by statute. And so anything that Congress can do to level that playing field so that local first responders can get that information about the pipelines in their communities is critical because of the things that I found, working with the Austin, Texas, fire department is they know very little about the pipelines in their community. The pipeline operators historically in our community provide just the very basic awareness of information and if an incident were to happen in our community I think that our first responders would be woefully unprepared and that information ought to be provided to them on a routine basis. Mr. Rush. Thank you. The Chair now recognizes the ranking member, Mr. Upton, for 5 minutes. Mr. Upton. Thank you, Mr. Chairman, and I do have a lot of questions and I am going to try to keep my questions brief and, hopefully, your answers will be brief so I can go through them. But I am going to formally draft these up as a letter to each of you for you to formally respond and if you can do that as quickly as you can, knowing that we are on somewhat of a timetable here that would be good. Mr. Osman, you made a good point in your testimony about the draft legislation's removal of the cost-benefit analysis and inclusion of mandamus civil suits speeding up the pace of PHMSA's rulemaking. I appreciate that. Does--in your opinion, does the draft legislation encourage collaboration among pipeline safety stakeholders and advisory committees during consideration of any new regulations? Mr. Osman. No, not as much as it could. Mr. Upton. And Ms. Sames--Ms. Sames, does the draft legislation preserve effective State pipeline replacement and upgrade programs? I say that because we replaced a pipeline a number of years ago in Michigan, which as a good thing, and the old pipeline was left in place. But how does this draft legislation impact something like that? Ms. Sames. It doesn't address it. Mr. Upton. Mr. Black, does the draft legislation authorize PHMSA to allow operators to incorporate new safety technologies or best practices that may not be addressed in the regulations? Mr. Black. No. Mr. Upton. And does the draft legislation address the safety of inactive pipelines at all or not? Mr. Black. No. Mr. Upton. Does the draft legislation incentivize the timely updating of regs to incorporate the latest industry standards? Mr. Black. No, and we wish it would. Mr. Upton. And can you provide us maybe with some constructive language? And does the draft legislation discourage folks from attacking pipeline facilities, something I think a lot of us are concerned about? Mr. Black. No, and we wish it would. Mr. Upton. And what does the draft do on cybersecurity? Mr. Black. It doesn't have any provisions on cybersecurity. Mr. Upton. Does the draft legislation preserve and support the years of ongoing work to update both gas and liquid pipeline regulations? Mr. Black. Not directly, no. Mr. Upton. Mr. Osman, do you have a comment on that, too? Mr. Osman. No, it contradicts it and undoes it. Mr. Upton. So what does it do to encourage pipeline operators to share information about the lessons learned? I mean, that's one of the things that prompted us years ago to look at pipeline accidents--what happened. I've had some pipelines break not too far from my district, but and some also--we had a gas pipeline that broke in my district and, you know, careful effort was made to test forensically in fact what exactly happened so that improvements could be made so that we wouldn't have an issue later on in any community. This particular incident in my home county was--thank goodness it was in a potato farm so there was nobody around. But they were able to get the evidence from that break and be able to make some recommendations. But, to me, that's something that ought to be shared from experiences that were made or from happenings that occurred. Mr. Osman. If the subcommittee were to authorize a voluntary information sharing program it would encourage discussion of incident lessons, and if the subcommittee moves forward with our criminal reckless standard it discourages that open sharing across companies. Mr. Upton. Yes. Does the draft legislation incentivize operators to adopt best practices or exceed minimal Federal safety standards? Mr. Osman. No, and we would encourage the administration provision that calls for timely incorporation for reference. Mr. Upton. Have any of you looked at--I believe PHMSA actually had a proposal that we've not looked at formally-- we've not had it and they're not here to testify today. Mr. Osman. Yes. We support the proposal administration bill calling for regular timely incorporation into regulations of best practices. Mr. Upton. So one of my questions will be that I provide in writing is could each of you and your organizations take a look at that PHMSA proposal and make recommendations as this is a good thing, this is a bad thing, this is how you might alter that? Is that OK? Mr. Osman. Yes. Mr. Upton. Mr. Lesniak, is that OK? Mr. Lesniak. Yes, we'd be happy to do so. Mr. Upton. Great. Well, I look forward to working with all of you. This is a really important issue. We have millions of miles of pipelines and we can always do better, and we need to learn from those mistakes and work together in a way to ensure that the operators and our communities in fact are safe. And with that, Mr. Chairman, I yield back and look forward to working with you as this issue moves forward. Thank you. Mr. Rush. The Chair now recognizes Mr. Doyle for 5 minutes. Mr. Doyle. Thank you, Mr. Chairman, and welcome to our panellists today. I appreciate the opportunity to consider legislation related to pipeline safety. Pennsylvania is in the midst of a natural gas boom which is a tremendous resource but only if it's developed in a way that protects human health and the environment. In Pennsylvania, fracking is often very close to or within communities and pipelines run through neighborhoods and high- density areas. So I take this issue very seriously and I look forward to examining the ways to strengthen current regulations and protections. The natural gas industry has grown rapidly in Pennsylvania in recent years while PHMSA funding for States have not kept pace. Ms. Sames, Mr. Lesniak, or Mr. Black, do you believe that the States have sufficient resources to support enforcement in oversight of pipelines under their jurisdiction such as intrastate pipelines and the siting of hazardous liquid pipelines? And maybe you could just do down, very quickly, and answer that. Ms. Sames. AGA has always been supportive of more resources for the States. Mr. Lesniak. Yes. Pipeline Safety Trust agrees that the States are underfunded. Mr. Black. States should have the resources they need. Mr. Doyle. So, Mr. Lesniak, you mention in your testimony the importance of additional funding for States to close the gap between the amount that PHMSA is allowed to fund State pipeline safety programs and the amount that they actually do. Can you elaborate on that? Mr. Lesniak. We've got more in our written testimony and we can--be happy to get you more written--more detailed information on that. I do think it's a critical issue, especially in States like Pennsylvania and Texas, other States that have seen rapid growth in oil and gas exploration and production and we are seeing a huge boom in pipeline construction and it's clearly outpaced the abilities of States to keep up with it. Mr. Doyle. Pennsylvania's natural gas infrastructure dates back to the 19th century. So aging infrastructure is a concern for our region also. Ms. Sames, in your testimony you described the progress that's been made in replacing cast iron pipe with plastic piping for distribution, main, and service lines. How are your members prioritizing the location for service upgrades and does this consider aspects such as terrain and the risk of mine subsidence as is the case in a lot of southwestern Pennsylvania? Ms. Sames. It covers all of that. So when you're doing replacement programs you're looking at a number of factors. You're looking at the materials, the age, the construction techniques, the environment that the pipeline is in, the environment around the pipeline and what you're learning through leak surveys. So for things like cast iron, you want to replace the smaller lines first because those historically are the ones that are more fragile to breaking. Where you're getting larger pipelines that you have had absolutely no issues, maybe you prioritize those a little bit later because they seem to be functioning really well. But ground movement is something that will cause an additional risk on cast iron. So you want to get rid of cast iron where there are--where there are ground movements like coal subsidence. So yes, it's all taken into account. Mr. Doyle. Thank you. I co-sponsored legislation with my colleague, Mr. Olson, to address the shortage of qualified staff at FERC. So I am glad to see language included in the Pallone bill to address the similar staffing issue at PHMSA. Can anyone please speak to the staffing needs at PHMSA and do you think that PHMSA would be able to adequately address this issue without additional authority and funding? Maybe, Mr. Lesniak, what do you think? Mr. Lesniak. We can certainly provide you more information on that. But as, I think, we've all mentioned, PHMSA is chronically understaffed and they have--they struggle with targeting priority areas. Mr. Doyle. Let me ask you also, what are your views on the process of siting hazardous pipelines? Do you think PHMSA should have a role in this process? Mr. Lesniak. Absolutely they should have a role. Safety is not addressed during the siting process. The agencies will tell you that are involved in siting that it's not referenced in the regulations and that PHMSA today voluntarily participates in the siting process for many pipelines. But I think it should be clearly addressed in the statute so that it's a clear responsibility for PHMSA. Mr. Doyle. What about you, Mr. Black? What do you think? Mr. Black. PHMSA has a comprehensive series of construction codes that affect pipeline regulation--pipeline construction, excuse me. They're there watching pipeline construction. Any pipeline that is going to go into service must pass a hydrostatic pressure test before it begins operation and PHMSA always has the authority to shut a pipeline down if it believes it's safe. We believe there's no gap here. PHMSA has a clear role in safe operations of pipelines including construction. Mr. Doyle. I see my time is up, Mr. Chairman. Thank you. I yield back. Mr. Rush. Mr. Walden, the ranking member, is recognized for 5 minutes. Mr. Walden. Good morning, Mr. Chairman. Mr. Rush. Good morning. Mr. Walden. Thanks for having this hearing. Thanks to our witnesses for your testimony, which informs our work. I have to confess I am a little disappointed we are moving ahead with a legislative hearing when we don't have PHMSA here today. I think we will benefit from their response to our QFRs from the prior hearing and when they can actually be here. And so I hope we are not going to rush into a markup without thoroughly vetting to making significant improvements to this draft and I think you all have weighed in in areas you think it can be improved upon. And so we want to get this right. We believe in pipeline safety and it needs to be a bipartisan effort as it always has been. So I want to focus on a couple of things the draft legislation deals with. And so to each of you I've got a couple of questions. What are we doing to encourage pipeline operators to continue innovating and incorporating the most cost--the most cutting-edge technologies and best practices? Are our regulations keeping pace? A pretty broad question, but Mr. Black? Mr. Black. I will take it. The regulations are not keeping pace with innovation. PHMSA is slow. We've encouraged the committee to authorize a pilot program modelled after that they have for motor carrier. The administration supported this. This would let them road test new technologies and approaches and update their regulations more frequently. It's very important. Mr. Walden. Do each of you agree with that statement? Ms. Sames. I definitely agree. The process now, when new technology comes out, there's typically a pretty long delay where it has to be pilot tested. States need to weigh in. It all hampers technology enhancements quickly. So anything that can be done to advance that. I think the administration bill does have information on a pilot on new technology. I know I am supportive of it. We want to get technology out faster. Mr. Walden. All right. Mr. Lesniak? Mr. Lesniak. We do have some questions about a potential pilot program. We are in favor of bringing in technology that makes pipelines safer. But if we are going to put stuff in the ground, we want to make sure that it's safe before it gets put in the ground. Mr. Walden. Yes. Sure. Mr. Osman? Mr. Osman. Absolutely. You know, we agree with PHMSA's proposal for the pilot program. I think we need Congress' help to fill in a gap in the process right now to test those technologies that look like they're ready, but we don't know for sure---- Mr. Walden. Right. Mr. Osman [continuing]. Until we can implement them in the real world. So we are very supportive of that particular---- Mr. Walden. For everybody's benefit. I also believe we should consider the voluntary program to promote sharing of information and lessons learned across the industry, and I know some of you have referenced that. Do you all agree that that's a good way to go here on lessons learned, a voluntary program? Ms. Sames. AGA definitely does. We do a lot of sharing behind the scenes among operators. We want to be able to share more with the regulators, but we need a safe harbor in order to do that. We see most of it in some of the provisions. It's still lacking in a few areas. Mr. Walden. OK. Mr. Lesniak? Mr. Lesniak. We do think that the VIS program has potential. We want to make sure that it's not a substitute for withholding specific information about specific pipelines and incidents. Mr. Walden. Got it. Mr. Black? Mr. Black. Months have been spent on this--on it with a group convened by PHMSA of a broad collection of stakeholders. They've come up with a report from that committee on a proposal for Congress on a way to get operators to participate in that. We urge the committee to adopt that. Mr. Walden. All right. Mr. Osman? Mr. Osman. I will just disagree with one point that Mr. Black made. That committee has worked for years---- Mr. Black. Yes. Mr. Walden. Oh, not once. Got it. Mr. Osman [continuing]. To recommendations for how to do this the right way. So---- Mr. Walden. Yes. So you think we ought to get on with it? Is that what you're saying? Mr. Osman. Yes. Both the need--we need the work from Congress. We need the protections in the statute to make that. Mr. Walden. Got it. All right. Let me ask you about cybersecurity. There are, obviously, threats to the pipeline system as there are to the electric grid, as there are to you name it. There are hackers out there. What tools do you need from us when it comes to cybersecurity that are lacking in this bill that you can talk about here? Ms. Sames. Do you want to go first? Mr. Black. We take cybersecurity very seriously. I think Congress has acted on this in the FAA reauthorization last year to elevate the role of cyber within TSA, bring more resources there. We encourage Congress to appropriate more funds for TSA to do its work on cyber. Attention on this issue from government agencies and Congress can only help. Mr. Walden. Yes. I am not--I am not--I don't know about the ranking member, Mr. Upton, but TSA has been less than cooperative with this committee as we delve into these issues and, you know, I am not overly impressed. So I don't know that they're going to get more money. Mr. Upton, I don't know if you want to weigh in here. Mr. Upton. They're going to be checking you at the Pre- Check. Mr. Walden. I know. I know. I know. Mr. Upton. I've been randomly selected, like, the last 5 weeks in a row. Mr. Walden. Yes, that's right. That's right. [Laughter.] Mr. Upton. Just have a smile on your face. Mr. Walden. That's right. My time has expired on that note and--yes. Thank you all for what you're doing. We want to get this right. Thank you, Mr. Chairman, for the hearing. Mr. Rush. The Chair now recognizes Mr. McNerney for 5 minutes. Mr. McNerney. From the great State of California. You forgot. [Laughter.] Mr. Rush. From the great State of southern California? Mr. McNerney. Northern Cal. Oh my gosh. Mr. Rush. Northern California. Mr. McNerney. Thank you, Mr. Chairman. Mr. Lesniak, you referenced the 2010 San Bruno explosion that killed eight people. It took over an hour for crews to shut off the gas line after that explosion. You pointed out that 19 years ago Congress first started debating automatic spill detection and shut off valves, both which would have assisted in that process. Can you speak to the importance of leak and rupture detection and the automatic or remote control shut off valves? Mr. Lesniak. Yes. Thank you for that question. I think it's critical. Most new pipelines have both automatic and remote controlled valves in them. We ought to be retrofitting all pipelines with those. There may be very specific unique instances where it's not appropriate. But I think that those are very rare and that I think this ought to be standard of practice. It's commonly used in the industry. It ought to be--it ought to be included in the statute. Mr. McNerney. Well, the ranking member mentioned his concern about automatic shut off valves and so did one of the witnesses in liquid pipelines. Is that an issue? Mr. Lesniak. If a valve is improperly closed, it can cause problems, can cause a release on a pipeline. Absolutely. But automatic valves are used routinely in the industry. So they've, apparently, addressed that problem. Mr. McNerney. Thank you. Mr. Osman, a major component of the bills that we discussed was the technology. What additional technologies do you view as being essential to modernizing pipeline safety? Mr. Osman. Thank you for the question. We have tremendous amount of opportunities today that we didn't have even 5, 10, 15 years ago to enhance the safety of our pipeline system with today's technologies. In particular, the ones you will hear us talking about the most is the new internal inspection devices and new methods of analyzing the data that those devices produce. These are tools that are based on the same technology as an ultrasound machine or an MRI at the doctor's office and they can detect problems inside the pipeline years before that problem actually results in the pipeline. Mr. McNerney. That's amazing. Mr. Osman. It is amazing. Mr. McNerney. What's one of the barriers to adopting that? Mr. Osman. First, PHMSA needs to complete the pending rulemaking that they've been working on in which everyone at this table is supportive of. But going forward, beyond that, as we've talked about, we need opportunities to pilot these technologies moving forward so it does not take so many years to update the regulation, and one of the--one of the barriers to updating those regulations is not having that field-tested data and that pilot program that PHMSA proposed would help us go a long way. Mr. McNerney. But we heard a lot about complaining about how PHMSA is so slow in their rule making. What, besides additional resources, would help in that process? Briefly, for all the panellist, starting with Ms. Sames. Ms. Sames. I would love to see a process that is done with in DOT to move things faster. What I am seeing is that the technical folks within PHMSA do a really good job with moving things quickly once the advisory committees have finished their deliberations. But there seems to be a delay from PHMSA to the Office of Management and Budget. I don't know where the delay is occurring. But, to me, that's an area that could be investigated. Mr. McNerney. Thank you. Mr. Lesniak. Yes, I would agree. PHMSA is doing their work. Often it seems to be--get caught in the secretary's office or in OMB and, as we mentioned earlier, we think this duplicative cost-benefit analysis that's required in the current statute also slows things down. Mr. McNerney. Thank you. Mr. Black? Mr. Black. I think a legislative analogy, rifle shot bills are often easier to move than Christmas tree bills or omnibus. We believe that PHMSA made strategic mistakes on gas and liquid regulations in the last Congress to lump a bunch of many complex diverse issues into large mega rules that just overwhelm the development process and the review process, and that's the primary reason that we are waiting for them today. Mr. McNerney. OK. Thank you. Mr. Osman? Mr. Osman. PHMSA has two advisory committees with 30 people on them total, have a tremendous diversity of background and extent of experience in the pipeline industry, in the public space, in the regulator space. PHMSA should use those advisory committees earlier on to take input into development of rulemakings to make the rulemakings stronger from the get-got. So less of that work needs to be done at the back end when the advisory committees see the rulemaking proposal. Mr. McNerney. Thank you. Mr. Lesniak, you indicated that there are 435 miles of unregulated pipeline. What are the barriers to regulating those pipelines? Mr. Lesniak. Thank you. It's 435,000 miles of pipelines. Mr. McNerney. What did I say? Mr. Lesniak. The barriers is that it's not provided for in statute at all. Mr. McNerney. Right. All right. Mr. Chairman, I will yield back. Thank you for your responses. Mr. Rush. The Chair now recognizes Mr. Latta for 5 minutes. Mr. Latta. Well, thanks very much, Mr. Chairman, and thank you very much for holding today's hearing and I would also like to begin by just echoing the ranking member of the full committee and also the subcommittee's disappointment the majority took a partisan approach to a historically bipartisan topic by drafting this legislation for us in a vacuum. My hope is that because it is a discussion draft that the majority intends to work with us to move a bipartisan package forward that I am very interested in working with my colleagues, especially on using the best practices in technology to find the solutions leading to increased safety. Mr. Black, if I could begin with you. In your written testimony you proposed a pilot program for a new pipeline safety technologies and best practices. PHMSA also submitted a proposal for a pipeline safety pilot program to give them some regulatory flexibility to allow new technology and safety methods. What's the problem you're trying to solve with this pilot program and is this a situation where the regulations haven't kept pace with the innovation out there? Mr. Black. The integrity management regulations for liquid pipelines are about 20 years old now and they have not kept pace. They have gaps, including cracking in pipelines. PHMSA has been slow, despite their efforts. A pilot program that motor carrier has that the administration has now proposed would let PHMSA test on operators of their choosing methods, approaches, technologies that they believe would have an equivalent level of safety and gather data. We believe that data, when they gather it on operators they choose, would help inform their regulations and speed up their rule making process so then they could apply those lessons to all in industry. We are supportive of the proposal. We think there should be a few more provisions requiring reporting to Congress about the lessons from pilot programs and a trigger that requires them to then take those lessons that are positive and incorporate them in regulations. Mr. Latta. Let me follow up, because you said that you're looking at something that's 20 years old, and two things. One, why is it taking PHMSA this long to catch up with something that's over 20 years? And at the same time, would you describe some of the cost cut--or the cutting-edge technologies and best practices that your member companies would like to implement? Mr. Black. Well, the technology is growing leaps and bounds in terms of pipeline inspection. Not just the tools that can run through a pipeline but then also the analytics that can happen once the inline inspection device we call a smart pig comes out of the pike. So we are learning more. The regulations are old. There's a floor. Pipeline operators are going well above them because of your best practices that we incorporate and we suggest PHMSA often incorporate in the regulation. They can update these. I spoke a moment ago about my personal thought and our organization's thought about the delay by PHMSA. It's taking too many issues and putting them in the large rule making processes that are just slowing down. It shouldn't be 20 years. Hopefully, it won't be 20 years again. Mr. Latta. Well, let me ask, does the draft legislation that's before us include anything like this encourage the operators to adopt these new technologies on a voluntary basis? Mr. Black. In the administration draft, yes. In the discussion draft from the subcommittee, no. Mr. Latta. OK. Thank you very much. To Ms. Sames and Mr. Osman and Mr. Black, if I could kind of ask some quick questions here. As you know, the States are overseeing more than 80 percent of the Nation's pipeline infrastructure, especially the gas distribution pipelines that connect our homes and businesses to the main transmission system. Could you talk a little bit about the State programs and the relationship your member companies have with the States and the local pipeline safety regulators? Ms. Sames? Ms. Sames. Yes. So if you--at the State level, especially if you're a larger operator, you're probably having multiple State inspectors in your office every day. They're in the field. They're with the operator. They're looking at various things, which is why the State program is so important and why AGA has always been supportive of additional funding for the States. They're the ones regulating and if--they need the proper training, the proper resources to do that. Unlike the PHMSA regulations, the PHMSA regulators, the auditors--I think the interstates and the liquid industry see them a little less often than they do than we see the State operators at the State level. PHMSA has a responsibility to provide oversights of the States, the State inspectors. They're relying on the State regulators to go out and do their job, which also gets back to why PHMSA needs additional resources. Mr. Latta. OK. And I know, Mr. Chairman, my time is expiring, but I will submit my questions in writing to the witnesses. Thank you very much. I yield back. Mr. Rush. The Chair now recognizes the chairman of the full committee, Mr. Pallone, for 5 minutes. Mr. Pallone. Thank you, Chairman Rush. In his testimony, Mr. Black of the oil pipeline industry states that, and I quote, ``Applying an ambiguous legal standard of recklessness will not advance pipeline safety.'' Mr. Black would also have you believe, in my opinion, that requiring a prosecutor to prove that someone is both knowing and willful is standard whereas in reality most statutes require proof that someone is either knowing or willful so rather than and/or. So I wanted to ask Mr. Lesniak, is reckless and ambiguous legal standard or is there a precedent in statute for holding someone accountable for reckless behavior? Mr. Lesniak. Thank you. It's far from ambiguous or unusual. It's commonly used in other Federal statute, and in fact in most States it's included in the motor vehicle code and other criminal statutes. Mr. Pallone. And then doesn't the current hazardous material safety statute contain criminal penalties of someone who willfully or recklessly violates a requirement of the Federal Hazardous Material Transportation law? Mr. Lesniak. Yes. In fact it does. Mr. Pallone. So I think this is neither novel nor ambiguous and, in my view, it will certainly improve accountability and safety. Mr. Lesniak, let me ask you another question. What do you think has been the hold up on the mandates from the 2011 and 2016 acts? Do you think that this is due to the duplicative and prescript or cost-benefit required in current law? Mr. Lesniak. Yes, it does. Yes, I think it is a big part of it. It's not the only reason but it is one of the key reasons and we need to get that addressed. Mr. Pallone. I mean, I think the statutory cost-benefit analysis, clearly, ties the secretary's hands. So my question is would eliminating it help prevent the extreme delays we have seen from occurring again? Mr. Lesniak. Yes, we think it would. Mr. Pallone. All right. Thank you. Let me go to Mr. Lesniak again about this mandamus issue. In the aftermath of the San Bruno incident, the city of San Francisco was blocked, quote, ``from forcing PHMSA to uphold its statutory responsibilities'' and this happened because the court held that the law did not allow for mandamus type citizen suits to be brought against the Federal Government. So, Mr. Lesniak, do we need the ability for citizens, States, and local governments to be able to compel PHMSA to do its job? Mr. Lesniak. I think there's no question. You know, if you think the delays that we are seeing, the Congress gets frustrated with these delays, with implementing the regulations, how do you think a community like San Francisco, San Bruno, Edison, Bellingham feel when they have incidents and or they have pipelines in their communities that they have concerns about and they can't get PHMSA to act? Congress can hold these agencies accountable but it may take years, if at all, and the public needs to have the ability to go to court to get these agencies to implement these regulations. Congress is a representative of the people. The people ought to have the ability to enforce the laws Congress passes. Mr. Pallone. Thank you. I wanted to ask you, you know, the industry--from their testimony the Interstate Natural Gas Associations seems, in my opinion--I mean, I am putting words in their mouth but from what I can see from their testimony is perfectly fine--they're perfectly fine with the status quo of rule makings that take a decade or more. They seem to suggest we don't need to use modern technology like automatic or remote valves or smart pigs and that we shouldn't review the integrity of pipelines that are half a century old or older. According to the testimony, a rule making process that never ends seems to be fine and anything Congress might do to ensure faster results or improve pipeline safety and hold operators more accountable, and I quote, would overrule years of work in developing new pipeline safety regulations for gas transmission pipelines. But, of course, what good--I mean, in my opinion, what good does it do the public to have a rulemaking process that goes on and on and never produces a rule? I mean, that's my problem. So let me ask you, do you think that the industry's opposition to new safety requirements is contributing to the growing opposition of landowners to having a pipeline run through their States, towns, and back yards? Because this is what I hear all the time. Is that--is this opposition to these new safety requirements contributing to that? Mr. Lesniak. I think it is. I think that the industry does throw comments and engage in the rulemaking process sometimes in a way that's counterproductive and slows down the process, and for some in the industry I think it works in their favor-- that they would prefer to preserve the status quo. Mr. Pallone. But then at the same time you have this growing opposition from the landowners, and I think, you know, this only contributes to that. So I don't know that it's in their interest, but whatever. Thank you. Thanks so much. Mr. Rush. The Chair now recognizes the gentleman from Texas, Mr. Olson. Mr. Olson. I thank the Chair, and welcome to our four expert witnesses. My first question is a simple yes or no. Are pipelines safer than trucks, trains, ships for transporting liquid and gas products? Ms. Sames, yes or no? Ms. Sames. Yes, based on DOT's statistics. Mr. Olson. Mr. Lesniak, yes or no? Pipelines safer? Mr. Lesniak. Yes, but it's an apples and oranges comparison. Mr. Olson. Mr. Black? Mr. Black. Yes. Mr. Osman. Yes. Mr. Black. Mr. Osman agrees. So we all agree that pipelines are as close as we get to perfection transporting products-- liquid products--right now with what we have in our world. Another simple yes or no question for all of you. As Mr. Doyle mentioned, we have a bill that allows FERC to exceed the Federal pay limits for the expert employees that are getting taken by the private sector basically because they don't have the money to pay them. Would you all support--your organizations--something like that for PHMSA? Because we've heard over and over manpower is a problem. How about allowing PHMSA to pay more than the Federal minimum? Ms. Sames? Ms. Sames. Yes. Yes. Mr. Lesniak. Yes. Mr. Black. We support the Federal Government for PHMSA inspectors being able to pay more to attract and retain inspectors. Mr. Olson. Mr. Osman? Mr. Osman. Yes. Mr. Olson. There we go. OK. Let's talk about PHMSA. Right now, they're in the middle of a careful effort to set new rules for gathering lines. Moving to the suburbs of Houston, Texas, the energy capital of the world, I know how important these lines are to production of mostly oil and natural gas. They're important for the safety they provide and also the ability to expand the system, and while gathering lines may look like other pipelines, they're very, very different because they have very low pressures compared to pipelines that transport the product from Texas up there to New England. And it would seem to me that our draft legislation is abetting PHMSA's work with their efforts for new rules for gathering lines. And this is for you, Mr. Black, and you, Mr. Osman. Can you talk about how these lines are regulated today and what PHMSA is doing--we think they're going when they update these regulations and what are the costs of Congress stepping in and expanding PHMSA's jurisdiction while they're still trying to get a handle on new rules? Mr. Osman. Thank you for the question. Of course we agree that it's important that all pipelines are safe. Our members, INGAA, represent the interstate and natural gas transmission pipelines. We don't represent gathering pipelines so I can't get into the specifics there. I will say from a process perspective PHMSA's advisory committee is meeting next week to try to advance that gathering rule making forward and if recent history is any indication, they're going to be successful in doing so. Mr. Olson. Mr. Black? Mr. Black. This new effort has been about gas gathering. Liquids often is already regulated by PHMSA above certain-- below certain--above certain diameters and thresholds. It's been primarily a gas-gathering push. Mr. Olson. My final question is for you, Ms. Sames and Mr. Black and Mr. Osman one more time. I've heard over and over today in this hearing and out back home about how long it takes PHMSA to set new rules to--for these pipeline systems and that's why I have concern we are going to actually slow that process down with these new writs of mandamus. This new law will encourage more lawsuits from special interest groups with no standing and also leave the back door rules settled through sue and settle and going through a back door is never safe as opposed to going through a front door. So my question for all of you all is do you think this discussion draft's mandamus provision would impact the quality and pace of PHMSA's rule makings? Would it hurt it? Ms. Sames. Yes. Mr. Black. Yes. If we think PHMSA is overwhelmed by congressional mandates, think about how they'd be overwhelmed with litigation from groups that can choose what to sue on. We think court-forced action would usurp the role of Congress and setting priorities would divert them from whatever they think their highest priority is and it would create the risk of sue and settle rulemaking outside of the process where all stakeholders have an opportunity to participate. I think it hurts. Mr. Olson. Mr. Osman? Mr. Osman. I agree with my colleagues. We are all frustrated about the pace of rule makings and we are not happy with the status quo. But we do not think the mandamus provision is going to speed things up. We think we need more focussed decision making from the agency and we need to do what we can to help them get the resources that they need to move these important rule makings forward. Mr. Olson. Thank you. I am out of time. Mr. Lesniak, one compliment for you being from Austin, Texas. The bowl game we had with the Longhorns against the Georgia Bulldogs. Bevo, our Longhorn mascot, tore into that little bulldog. So, thank you. Made Texas proud. Mr. Lesniak. Hook 'em. [Laughter.] Mr. Olson. There you go. Hook 'em. Yield back. Mr. Rush. The Chair now recognizes Mr. Loebsack for 5 minutes. Mr. Loebsack. Thank you, Chairman Rush, Ranking Member Upton, and thank you to the witnesses for being here today as well. I am pleased that the committee is holding this hearing on this incredibly important issue--pipeline safety in America. And before I go any further I should mention too that I think that what we are talking about today while we are talking a lot of about regulation and all the rest, I think it also points up how important a new infrastructure bill would be because we have such an aging system of pipelines out there. We are going to have to make replacements. We are going to have to make repairs. We are going to have to do all these things to make sure that we can continue to transport the energy that gets transported. That's got to be a part of a larger infrastructure bill, I believe, and I think that's actually something maybe we can all agree on on a bipartisan basis here as well. I don't want to make too many assumptions, however, about the nature of politics in this body at the moment. But I do think we can agree on that. Our Nation's pipeline system does help deliver reliable and low-cost energy to consumers across the country. Ensuring that our pipelines operate safely, reliably, and efficiently is absolutely critical. I think that's a no-brainer. We must also ensure that we are taking proactive measures to protect our pipelines from both physical and cyber threats-- that's been mentioned, cyber threats--that would put our Nation's energy supply at great risk--those threats out there. We know that cyber attacks are a near constant and increasingly dangerous threat to our energy infrastructure as well as to the surrounding communities. Federal pipeline safety regulations must keep pace with the capabilities of those who seek to attack our energy supply and undermine our national security, and to that end I am happy I've been working with Ranking Member Upton on the piece of legislation that would improve the coordination and information sharing among the Federal entities tasked with overseeing the cybersecurity of our Nation's pipeline system, the Pipeline and LNG Facilities Cybersecurity Preparedness Act. I look forward to continuing to work on this important issue as this committee moves forward on comprehensive pipeline safety legislation. Concerning the legislation that's before us today, the Safer Pipelines Act does include a provision that I think is critically important in ensuring our communities are better protected from the potential impacts of a pipeline incident. This provision would require that the owners or operators of a gas or hazardous liquid pipeline engage and share information, and it's been mentioned with local emergency planning committees and other local first responders. This will ensure that those individuals who are first to the scene in the event of an accident are able to respond as effectively as possible to protect the surrounding community. Those first responders, we all know, are absolutely critical. We've had a lot of floods in Iowa over the past 10 years since I've been in office--10 or 12 years. This kind of an incident would be absolutely--it would be absolutely essential for those first responders to have as much information as possible as well. And I know we talked about this already a little bit, Mr. Lesniak. In your testimony you highlighted this effort to engage with the emergency planning committees and first responders and improve communication and education efforts within the communities. Can you elaborate again, if you would, on how you think information sharing with State and local emergency responders can help ensure the safety of our communities and improve outcomes in the event of an incident? Just elaborate on what you have already been talking about earlier, if you would. Mr. Lesniak. Thank you. You know, local emergency responders have a hard time getting information about pipelines and, as I said, it's a voluntary process. Some operators are really good about it. Some operators are not very good about it. But it's the local emergency responders that have to be able to act quickly to protect their communities. And so anything that Congress can do to make sure that critical information is shared with local LEPCs, local fire departments, and other first responders I think is critical. Mr. Loebsack. So in terms of what these local communities can do themselves to take steps to protect themselves from the impacts of an incident, do you have any specific ideas about that? Mr. Lesniak. I do. I worked with--personally worked with a local pipeline operator to develop an emergency spill response plan for Austin, Texas to protect Barton Springs, one of our critical natural resources there, and they worked well with us and that process worked really well. Other communities could do that. Other pipeline operators that we reached out to in our community weren't interested in working with us. And I just might say--you know, I am near the end here--I do worry about not just cybersecurity attacks but I worry about physical attacks and I go on the mapping website that you mentioned earlier. There's a lot of information that the public does need. But that information is available to the bad guys, too, and we have to be thinking about how to balance, you know, those kinds of interests that we have as a public but also making sure that we secure these pipelines from the bad guys who want to do terrible damage to us and can inflict terroristic kinds of actions on us and we have to be careful on that front. So thank you very much. I appreciate the time, and I yield back. Thank you. Mr. Rush. Mr. Griffith is recognized for 5 minutes. Mr. Griffith. Thank you very much, Mr. Chairman. Picking up on that, talking about bad guys physically attacking the pipeline, that's a concern of mine too and I visited with some folks, and I know there's other folks doing this too, but Corning has a product where they can actually put a fiber down on the pipeline as it's being laid and you can see if somebody walks up to it, drives up to the pipeline, starts digging--I mean, any of those things that would tip you off that one of the bad guys might be out there. Also has the advantage of because the temperature being colder with the gas in the pipeline than the soil around it that if there is a leak it picks up that temperature changing and identify a leak fairly quickly. So along those lines, I know that that's out there and I know there's probably some other technologies as well that are emerging. I am just wondering what you all think the Federal Government might be able to do to encourage more new technologies like this and then, of course, I know it's not your bailiwick. But then we got to convince FERC that it probably ought to be there. Yes, ma'am? Ms. Sames. And I apologize. I am a little passionate about technology. I helped revamp the PHMSA R&D program. I then went from there to a research consortium. So, for me, it's additional funding for technology. We have it within PHMSA. We have a little bit within Department of Energy. But more technology funding to get us the products that we need. The industry is contributing a good bit also. We've already mentioned piloting these technologies so we can get them into the market faster. All of that will help move things forward. Mr. Griffith. And talking about the proposed--I know the administration has proposed a technology pilot program. You know, how do you think that would work? Obviously, you're favorable, but how do you think their program would work in moving some of this technology forward? Ms. Sames. I would hope that it moves things faster--that if they have an official program that Congress has approved that it allows them to move faster, because right now they're doing it but it's at a pretty slow pace. Mr. Griffith. And I certainly would support putting more funding towards the research. I am big on research and I think it's important, and I do think the question that Mr. Pallone asked earlier of Mr. Lesniak was that is some of the concerns about pipelines causing some of the resistance to new pipelines. I think the answer to that is, clearly, yes. There's a pipeline going through my district, and some folks are going to be against it no matter what and there are other reasons to be against it. But some folks are just worried because of some of the safety issues that they've heard about, and the more we can do to reassure them I think the better of we are. Mr. Black, do you want to make a quick comment on this? Mr. Black. Yes. The technology you described is interesting and I think it needs to be reviewed regularly by the advisory committee groups. Mr. Lesniak is on one of them. Pipeline operators are. Congress told PHMSA that it needs to put its regulations and its cost-benefit and risk assessments before the advisory committees. I think Congress could also tell them to review research and development. Have PHMSA put forward its proposals and hear from other organizations that collaboration right now occurs but it's not frequent enough. If you all put that in the statute that should increase it. Mr. Griffith. All right. I appreciate that. Now, I am going to go to an area that hasn't been touched on yet and just ask if anybody has any ideas. I met with, I don't know, a few months back some folks at Virginia Tech, and they are doing research related to water and sewer pipes. And one of the things that they found was is that the age of the pipe was not dispositive nor the material--that one of the things that was interesting was the type of soil and what environment the pipe was in. So I noticed in the bill there are several mentions of the age of the pipe and what material it is and the cast iron pipes. But at least for water and sewer, they talked about if it was in the right type of soil cast iron might last 100 years. In a different type of soil it may not make it to 50 years, and you want to make sure you know what kind of soil you're in and whether or not, interestingly enough, apparently degradation in and around railroads was higher, and I thought that was fascinating. Is there any research going on in this regard with gas pipelines as well to make sure that we're--I mean, we can go out there and say you check them every 50 years and that's great. But if you have got a pipe that's in a soil type or in an environment where it would last a hundred why would we spend money on that and let's focus on the areas where it's most important. Ms. Sames. Yes. I mean, on the gas distribution side, we are doing a lot on replacement and so you're looking at a number of factors and the environment is one of those factors. So and the pipe tells you a good bit. So if you're going out doing leak surveys which we are required to do and checking very particular areas and doing more, especially for cast iron and bare steel, when temperatures change and that frost level in certain areas of the country--I know that down south you don't have it but we do up north--that frost level changes, the soil moves. So that causes extra strain on the pipe. It's all things that have to be taken into account and it's--we've done a lot of research in this area. Mr. Griffith. Well, and I would hope that any bill that we would pass would take into account some of the new technology and take into account the fact that not every pipe is the same as the pipe in the same--in a different soil type or different area. Thank you very much. I yield back. Mr. Rush. The Chair now recognizes Mr. Kennedy for 5 minutes. Mr. Kennedy. I thank the chairman for having this important hearing to address pipeline safety and thank you to our witnesses for being here. We all recall the devastating events that happened last year when a distribution line exploded on September 13th, wreaking havoc in three communities in the Merrimack Valley of Massachusetts. Local residents and first responders were gravely injured, homes destroyed, families displaced for months on end. And a young man named Leonel Rondon lost his life. Ten months later, these communities are still recovering from the devastation. I am grateful to my colleague, Representative Lori Trahan, for introducing H.R. 2139, the Leonel Rondon Pipeline Safety Act to address the issues leading to this tragic event. I am proud to be a cosponsor of this legislation. I would also like to thank Senator Markey for introducing the Senate version. Now, Mr. Lesniak, in your testimony you speak to the importance of pipeline companies developing and implementing a continuous improvement to the safety and management system, or SMS. You know that the Merrimack Valley tragedy eliminated the fact that voluntary systems of SMS weren't Incentivizing all companies. So, sir, I appreciate the idea of an annual fine on the PHMSA as a level of accountability without making SMS mandatory. Those who fully embrace SMS should have no problem. But do you believe that will be enough of an incentive for those that are lagging behind? Mr. Lesniak. Thank you. You know, there ought to be a regulatory floor and for critical safety processes. And so I think those types of safety processes should be required and not voluntary. Good operators implement them. Bad operators don't. Mr. Kennedy. Thank you, sir. As you are well aware, there's a $2 million cap on PHMSA's penalty authority for civil penalties. Do you believe that the fines currently assessed provide sufficient deterrent for companies that commit a violation? Mr. Lesniak. No, I don't. If you look at it, some of these pipelines--for example, there's a pipeline that's being proposed in the State of Texas right now. It's a $2 billion project. It's going to transport millions of cubic feet of natural gas per day. A million-dollar or $2 million fine is a drop in the bucket for companies like that. Mr. Kennedy. And, sir, I've heard said by some skeptics that you, quote, ``can't create a culture of safety.'' But it seems to me that Congress has, in fact, forced change where industry has failed to take adequate safety steps. Do you have any response to those who think that this is a fool's errand? Mr. Lesniak. I think that you can't regulate necessarily a culture of safety. But, again, you can set a floor that makes sure that every company meets minimum safety standards and that--and make it more ubiquitous across the industry. Mr. Kennedy. And a final question for you, sir. Across the country and particularly at the State level we are seeing concerning efforts to curb the rights of Americans, including, particularly, Native communities to raise their voices in defense of pipeline safety. Often those communities stand to be the most impacted by proposed projects such as the Dakota Access projects across drinking water and burial grounds for the Standing Rock Sioux. The administration's proposal to reauthorize PHMSA goes even further than current law in proposing to criminalize rightful peaceful protests in the name of pipeline safety. I would imagine we can all agree that an effort to sabotage or physically damage a pipeline is one thing--gun or explosives or, again, some other way to damage the integrity of the actual infrastructure--but a very different exercise to use one's free speech rights to peacefully protest a proposed construction project under construction. So, Mr. Lesniak, how can we ensure that balance between First Amendment community voices and meaningful dissent are protected in our pipeline safety efforts and how can we better account for Tribal indigenous rights? Mr. Lesniak. I think the Pipeline Safety Trust has spoken clearly about if anyone takes action to damage or disrupt the operation of a pipeline that's wrong and it's not safe and it threatens the public safety and threatens the environment, and that ought to be addressed. However, legitimate dissent and protests by the public should be clearly protected. In the State of Texas, the State legislature recently has criminalized legitimate dissent and it's wrong and that should not happen. But as long as we are protecting the pipelines and those operations that's what we should do if it creates a public safety threat. Otherwise, Congress should stay out of it. Mr. Kennedy. All right. Any additional comments from anybody else? Mr. Black? Mr. Black. AOPL would like to deter attacks on pipelines that could harm the environment or the public or the assailants themselves. We are not trying to deter peaceful nonviolent protests. Mr. Kennedy. Appreciate that. I yield back. Thank you. Mr. Rush. The Chair recognizes Mr. Kinzinger for 5 minutes. Mr. Kinzinger. Well, thank you, Mr. Chairman. Again, thank you all for being here today. We appreciate it. I would like to start with cybersecurity, and some of the questions I am going to ask--I know we've already touched on these topics, but I do have different questions on them. I don't believe we can separate pipeline safety from pipeline security. Multiple Federal agencies have a role to play when it comes to pipeline cybersecurity. Given that the DOE is already the lead sector-specific agency for energy and given the fact that they already have tremendous experience and resources dedicated to pipeline cybersecurity, especially through the National Labs, I think we need to address this in the pipeline safety bill. So for Mr. Black, Ms. Sames, and Mr. Osman, each of you have supported H.R. 370, the Pipeline and LNG Facility Cybersecurity Preparedness Act. Would any of you have any objection to including it in the Pipeline Safety Reauthorization and specifically if you do, why? We'll start with you. Ms. Sames. We are supportive of the coordination role, which is in that bill. So I think there is--I would have to see--I am an engineer. Mr. Kinzinger. I understand. Ms. Sames. That means I need the details. Mr. Kinzinger. Yes. Ms. Sames. But, in theory, yes, we could probably support. Mr. Kinzinger. I am a politician. We need details, too, before we commit to anything. [Laughter.] Mr. Kinzinger. Because it always come back to get us. Mr. Black. The public-private collaboration in cybersecurity has been good and, as you say, multiple agencies should have roles. We were proud to support the bill through the committee process. We encourage on cyber a holistic approach so that you don't have duplication of government agencies, conflicting guidance to all of us. So we think that means involving intelligence committees, transportation committees. I would discourage you from linking the two on legislation. We want reauthorization legislation to pass. I think if you do both of them together, it slows reauthorization. That's your prerogative. But if you're trying to achieve both, I would recommend you do them separately. Mr. Kinzinger. OK. Ms. Sames. And I agree with Mr. Black on that. Mr. Kinzinger. All right. Mr. Osman. I agree with my colleagues. You know, we advocate for a comprehensive, governmentwide approach to pipeline cybersecurity, collaboration and coordination between the different agencies that have different important roles. I am sure Mr. Black's concerned that, you know, bringing it into the reauthorization bill could slow down a timely reauthorization. But other than that, it's certainly your prerogative. Mr. Kinzinger. Understood. In December of 2012--in the December 2018 report GAO significantly raised concerns about TSA's pipeline security program. I am concerned that the TSA is not prioritizing pipeline security as they should. For example, it's already been mentioned that they have over 50,000 employees but only six were assigned to pipeline security as of last year. Mr. Osman, are you concerned about TSA staffing issues and have you made any recommendations to improve that situation? Mr. Osman. Thank you for the question. Oh, I am on. Thank you for the question. Certainly it's important that TSA is the lead safety regulator, has the resources that they need. Our association, INGAA, along with the other associations represented at the table, have made appropriations recommendations do increase the funding that TSA has to increase the resources that they can bring to the table. We have seen over the last year, certainly due to the pressure from this committee and others, a concerted effort at TSA to adopt the recommendations that the GAO gave them to improve their performance. They've rolled out a new pipeline cybersecurity assessment initiative, which we are participating in actively and it's helped a lot. Mr. Kinzinger. OK. Great. And are you concerned--well, I will say this. TSA conducts interviews with operators, known as the corporate security reviews. But TSA doesn't track the information or use it to measure risk. Are you concerned about the way these corporate security reviews are being conducted or and do you have any recommendations on that level either? Mr. Osman. As I mentioned, that program has evolved to this newer pipeline cybersecurity initiative. We know that they're implementing their recommendations to the GAO, which included some of the tracking and data collection that you're talking about. So we'll need to keep watching that and see how it---- Mr. Kinzinger. But you feel like we are on a comfortable track with that? A good start at it? Mr. Osman. Yes. A good start. Mr. Kinzinger. OK. Mr. Osman. That's the way we'd put it. Mr. Kinzinger. Hopefully, a good ending, too. Mr. Black, are attacks on pipelines an ongoing problem and how are the attacks on pipeline facilities a threat to safety and public--of the public and the environment? I am sure you have answered this in numerous ways but---- Mr. Black. In 2016, there was a coordinated series of attacks where people broke chains, opened perimeter fencing, and tried to turn valves on pipelines, covering about 15 percent of our daily crude oil use. Thankfully, they did not result in a rupture but they could have by improperly forcing closed a valve. 2017 there was an attack. 2019 there was an attack. There was an attack on a pipeline just before it started in operation. If it had started operation without that damage being addressed, it would have caused a problem. We believe there are loopholes in Federal law on operating--on construction and on actions that don't damage or destroy but that could that need to be closed by Congress so that we deter these attacks. Mr. Kinzinger. Thank you, and as a guy that lives on top of a bunch of pipelines and near them, they're really important. But this is a very important issue as well. So I thank you and I yield back. Mr. Rush. The Chair now recognizes Mr. Veasey for 5 minutes. Mr. Veasey. Thank you, Mr. Chairman, for holding this hearing to talk about pipeline safety. I think that all of us can agree that we do not want to lose another life and that we do not want to incur any further damage because these pipeline explosions can be absolutely devastating, including death. And I would also like to thank Chairman Pallone and Congresswoman Lori Trahan for their efforts to prevent deadly pipeline explosions like the one that happened in the district that I represent in Dallas, where we lost 12-year-old Linda ``Michellita'' Rogers last year in the city of Dallas. We have to do everything that we can to, obviously, prevent us having another incident like that. I don't know if that's something that all of you sitting at the table would agree with. One powerful tool we have as lawmakers is the imposition of civil penalties to make sure that people are doing everything they can to prevent another incident like what happened in Massachusetts, like what happened in Dallas, from ever occurring again, to make sure that people aren't putting profits ahead of people. I think that everyone would also agree that you don't want to put profits ahead of people. In the State legislature in Texas this year, my former colleague, State Representative Rafael Anchia from Dallas, he was able to get a pipeline safety bill passed but as a companion piece on the Federal end. Representative Trahan's Pipeline Safety Act bill would increase penalties for companies that violate the law up to $200 million for the most egregious violations. And I wanted to ask Mr. Lesniak while the civil penalties alone cannot prevent tragedies like the ones I just mentioned from happening again, in your opinion how would the increases in penalties included in the Congresswoman Trahan's bill impact the decisions that are made by these pipeline operators? Mr. Lesniak. I think anytime that we make substantive substantial penalties for bad actors it's a good thing. They will be more likely to take it account. You know, I work with pipeline operators all the time in my role on the technical advisory committee and working with the Pipeline Safety Trust in PHMSA and those companies that engage in those processes on a regular basis those are generally the good operators. We write regulations and create penalties for the bad actors and you need to make it so that they think twice before they don't do things that they know they ought to be doing. Mr. Veasey. Pipeline industry associations develop operating best practices based on the recommendation of their engineers and experts. Where appropriate where do you think PHMSA can take advantage of these best practices that improve pipeline safety? Anyone can answer that. Mr. Osman. Thank you for the question. What's important is that PHMSA continues to embrace the latest technologies and engineering practices that those--that those consensus technical standards represent. In PHMSA's bill, they draft legislation. They have proposed some language along those lines to require the agency to continue to be focused on ensuring the latest engineering technical standards and incorporated into its regulations, and that's important because we have a lot of standards in there right now that are many decades old, for example, the fundamental gas transmission pipeline standards, ASME--American Society of Mechanical Engineers--B31.8S. The version that's incorporated in the regulations today was written in 2004. There's been five versions published since then, each one better than the last. So, you know, this is an opportunity to by simply changing some references, doing a quick review of the new documents to demonstrably improve pipeline safety with relatively little effort. Mr. Veasey. I know that on the first--at a pipeline safety oversight hearing that there was concern about rule making taking too long to complete. What do you think that we can do to help speed that up and help make that situation better? Mr. Osman. Thank you for the question. Now, part of it, as my colleague, Mr. Black, mentioned earlier, is doing what you all are doing to encourage PHMSA about what the priorities really are to get those mandates done. We do think that PHMSA made a mistake in years past by trying to lump just too many different unrelated initiatives together and that slowed down every step in the process from A to Z. I think also opportunities to look at resource levels in PHMSA with provisions like the subcommittee's draft direct hire proposal could go a long way to help as well. Mr. Black. With your interest in best practices of mechanical engineers and other technical experts, you have got an opportunity. We've discussed here about best practices that have been updated. But those updates have not been incorporated in the Federal regulations. Those updates require all operators to comply. So you have got the opportunity and the administration's recommendation to require PHMSA to regularly review updates and to decide to incorporate. That's Congress setting a priority for PHMSA of harnessing new technology. Just as Mr. Osman said for natural gas, the same is true on liquids. We've got a recommended practice 1160 on integrity management inspection and maintenance. Let's get those updates rolled into regulations. Mr. Veasey. Thank you, Mr. Chair. Yield back the balance. Mr. Rush. The Chair now recognizes Mr. Johnson for 5 minutes. Mr. Johnson. Thank you, Mr. Chairman, and thanks for conducting this hearing today. Really important topic, and I hope that as we move forward our Energy and Commerce majority will seek to make this historically bipartisan process just that--bipartisan. We should not be playing politics with pipeline safety but instead, we should be working on a bill that has received proper and necessary technical feedback from PHMSA and all members of this committee. We all want to produce a bill that can help address the current challenges and opportunities of our pipeline system. We all want a bill that promotes safety, allows for technological innovation and correctly addresses emerging physical and cyber threats. That's the bill we should all be working on and I hope we can eventually work together on those issues. Ms. Sames, we obviously need to do everything we can to minimize events within our pipeline infrastructure. I think everyone shares that goal. Everyone would also agree that it is incumbent on this committee and industry to ensure that we are doing everything we can to correctly respond to those incidents when they, unfortunately, occur. So when pipeline incidents do occur, how do gas utilities communicate with first responders and how can we here in Congress help improve that communication? Ms. Sames. Because our companies--the distribution companies are in the communities that they serve it's a much closer relationship. We are doing immediate outreach. We are doing outreach in advance to make sure that the emergency responders in that area know where the pipelines are and what's in those particular lines--the distribution lines. Because we have so many excavation damages--individuals hitting our lines because they're not either calling before they dig or they're not abiding the lines--we have a lot of opportunities to do emergency response on the distribution side. So they know us. They know us well. They're coordinating with us. We do incident command structure similar to the fire departments so that when we are on the scene they know that their job is to keep things safe until we get there. Our job is to make sure that the pipeline stays safe. So it's a nice tag team between the two. On the information that they need, it's that close coordination in advance and good coordination and communication once on site. Mr. Johnson. OK. Can you talk briefly about the importance of allowing operators to make--to successfully perform an initial assessment after an incident? I mean, what arises if someone makes a wrong assessment? So tell me--tell me what you think about operators doing the initial assessment. Ms. Sames. So what could happen if somebody makes a wrong assessment and one of our concerns has always been some emergency responders are very gung ho. They see a fire. They want to make sure that things are taken care of and we try our best to make sure that they're not turning valves because as was heard earlier, you turn the wrong the valve and many bad things can happen. So on the assessment after an incident, after we get onsite it's what occurred, how did it occur, who was involved. We are trying to gather as much information as possible so that we can make the right decisions. Mr. Johnson. And no one better than the operators are poised to do that assessment. Wouldn't you agree? Ms. Sames. We are the technical experts. Mr. Johnson. Yes. Ms. Sames. So we should know our lines. We should be familiar with our lines. We should know everything about them. Mr. Johnson. OK. All right. Mr. Black, a bipartisan concern expressed at the May 1st pipeline safety oversight hearing was PHMSA taking too long to complete their mandated rulemakings. What can we do to help that situation? Mr. Black. First, to encourage PHMSA to not lump too many complex issues into large rulemakings that overwhelm the process. Second, help them gain information. We've got a recommendation from AOPL that the administration made to follow something with some of the motor carrier statute that allows a pilot program. PHMSA, at its discretion, can choose certain operators to test new technologies and approaches that I believe should have an equivalent level of safety. Then they can gather information from that. Mr. Johnson. Some have expressed concerns that the requirement for PHMSA to do a cost-benefit analysis of their rule is partially to blame. Do you--do you see that? Mr. Black. No, sir. Not at all. It's going to be required ultimately because of executive order. It should be done early. It should be done and vetted with a stakeholder group as it is today with the advisory committees. Mr. Johnson. OK. Thank you. I yield back. Mr. Rush. The Chair now recognizes the gentleman from Arizona, Mr. O'Halleran, for 5 minutes. Mr. O'Halleran. Thank you, Mr. Chairman, Ranking Member Upton, and our witnesses here today to discuss the legislative proposals before us to reauthorize the national pipeline and safety framework. While I know there are various perspectives being represented on our witnesses' panel today, I would like to echo the chairman's remarks and that this is simply the continuation of our conversation on pipeline safety and this bill will evolve from where it is today. I look forward to working with my colleagues on both sides of the aisle on a bipartisan framework which truly provides public safety and oversight of our pipeline infrastructure. Ms. Sames, you mentioned during part of the discussion on pipeline safety--you used the word proper resources. Do we have the proper resources? Is there the proper funding out there in the field from both the Federal Government, the State government, and others that--in the industry to be able to address the safety issues for our citizens? Ms. Sames. I think PHMSA could use some additional funding. I also think that they've done a really good job revamping their training program for both Federal and State regulators. I think it can--I think additional funding there can also help. I've heard concerns that it can take a little while for the inspectors to get through that training. So additional resources would help with that training portion. Also, research--you have already heard me say I think they need additional money for research and development so that they can implement pilots, move technology forward, implement pilots, and get the technology out in the field faster than it is currently. On the State side, the States need more funding. They need the ability to pay their inspectors more. They need the proper training. So I am a fan of both. Mr. O'Halleran. Thank you. Mr. Lesniak, I think it was you that mentioned bad actors. How do you define bad actors and what is the industry doing within itself to identify who these are and to address those issues? Mr. Lesniak. You know, over the last 20 years that I've been involved in pipeline issues, you know, I've dealt with operators that are really good. They're very proactive. They go well above and beyond the minimum standards in the regulations and I've also dealt with pipeline operators that do the bare minimum and sometimes not even that, and that's how I would define a bad actor is an operators that's just doing the bare minimum or less. Mr. O'Halleran. And what is the industry, to your knowledge, doing to address that and call out those bad actors? Mr. Lesniak. You know, I think my colleagues here on the panel, you know, their industry is doing training. They're doing outreach. But, you know, I suspect that they would tell you that you can lead a horse to water but you can't always make them drink. Mr. O'Halleran. Well, I will go down that road another time. [Laughter.] Mr. O'Halleran. Mr. Osman, I just wanted to point out that you also mentioned the concern with some of the financial issues as it relates to getting regulatory issues taken care of, and I just wanted to identify the overall issues out here. Mr. Black, in PHMSA's recent legislative proposal to Congress for the reauthorization of the Pipeline Safety Act it includes the authority for PHMSA to evaluate and implement a safety incentives program for operators who voluntarily exceed minimum Federal standards for pipeline safety. It also proposes a pipeline safety technology program to test the latest technologies in controlled real-world settings. Do you believe these proposals deserve more consideration as we move beyond today's proposed discussion drafts? Why or why not? Mr. Black. Thank you, Congressman. The second one you mentioned, the pilot program, we particularly encourage. We think it's going to lead to quicker rule makings and better use of technology. We suggest two additions to what the administration suggested: one, reporting to Congress and the public about the lessons from them; two, a requirement that they roll those positive lessons into future regulations. The first one that you mentioned is interesting on--in safety incentives. It may be more gas focused. I would be interested to learn more about that. And on your question about resources, the problems that we have heard is PHMSA's difficulty through the Federal hiring process and the salaries that it can pay to hire quality inspectors and then to retain them when they have lucrative options, including in the private sector. So we recommended Schedule A hiring authority, if that helps. The direct hire authority from the subcommittee's discussion draft, that could be the way to go. We've supported that as well. We want PHMSA to be able to attract and retain quality inspectors. Mr. O'Halleran. Well, given the time, I have some more questions. I will put those in writing. But I just--my background in law enforcement tells me that you have to have consistency. You have to have enough personnel to identify the issues and to address them in a timely manner and you have to be proactive about these issues. And it is apparent, now that all four of you have identified funding as a crucial issue and retention now also, that we need to find a way to address those issues. And I yield. Mr. Tonko [presiding]. The gentleman yields back. The Chair now recognizes Representative Flores for 5 minutes. Mr. Flores. Thank you, Chairman, and Leader Upton, I appreciate you all holding today's hearing. I share many of the concerns that have been expressed on this side of the aisle today at the dais regarding the--this discussion draft and the process by which it has come in front of us today. In particular, I am still waiting on information from the May hearing with PHMSA, and I understand the majority has not submitted our written request yet to the witnesses from that hearing, and those requests included my own so I am hoping that the majority will hurry up and get that to the witnesses. It seems reasonable to me that before we start working on legislation we'd at least have a complete record from the prior hearing before we move forward in the legislative process. I would first like to talk about pipeline vandalism. PHMSA has proposed strengthening the existing criminal measures for attacking a pipeline facility. We've also received a letter that Mr. Black spoke of earlier in his opening statements in support of this provision from some of the unions that are involved in the construction operation of pipelines. And, Mr. Chairman, I would like to ask for unanimous consent that this support letter from these four unions be entered into the record. Mr. Tonko. Without objection. [The information appears at the conclusion of the hearing.] Mr. Flores. Thank you, Mr. Chairman. I support this proposal from PHMSA, especially in light of several high profile attacks on pipelines involving so-called valve turners. These dangerous stunts not only endanger lives; they damage property. They damage the environment and can have significant economic consequences. To all our witnesses, do you agree that this activity is dangerous? Ms. Sames? Ms. Sames. Yes. Mr. Flores. OK. Mr. Lesniak? Mr. Lesniak. Yes. Mr. Flores. OK. Mr. Black? Mr. Black. Yes. Mr. Flores. Mr. Osman? Mr. Osman. Absolutely. Mr. Flores. Would each of you support strengthening criminal standards to discourage people from damaging pipeline facilities? Ms. Sames? Ms. Sames. Yes. Mr. Flores. Mr. Lesniak? Mr. Lesniak. We'd need to look at the proposal. Mr. Flores. OK. Mr. Black? Mr. Black. Yes. Mr. Flores. Mr. Osman? Mr. Osman. Yes. Mr. Flores. OK. Great. Thanks. Mr. Black, Ms. Sames and Mr. Osman, pipelines are among--we all know this--pipelines are among the safest and most efficient way to deliver natural gas and petroleum products to the consumer. What are some of the significant trends across the industry to improve pipeline safety? If you can spend about 20 seconds each on what some of the significant trends are to improve safety today? Ms. Sames. When I look at the distribution incidents, the ones that cause death and injury, the leading two causes are excavation damage and vehicles hitting above-ground pipelines. Those are the top two. So there's a lot of effort to promote 811--Call Before You Dig. It's a free service. We need more people calling before they dig. On individuals hitting our lines with vehicles, we are trying to figure out how do you stop people from going through a field and hitting a pipeline. I am still struggling with that one. Mr. Flores. No, I understand. Mr. Black? Mr. Black. So we are the safest method of transporting fuels but we are not at the goal of zero incidents that we want to be. Those trends are reviewed every year in our strategic plan. Currently, we are very excited about two things: one, increased technology through in-line inspection devices, and two, improve safety culture through industry wide implementation of safety management systems. Mr. Flores. Mr. Osman? Mr. Osman. In the early 2000s, Congress directed PHMSA to implement an integrity management program. Since that time, we've seen great improvement in the areas that that program was designed to address--threats like corrosion, threats like cracking on pipelines--and PHMSA is very close to completing the rulemaking to expand that to a much wider degree of pipelines and also to implement newer technologies. So we are excited to see that happen. Mr. Flores. In the last minute that I have left, Ms. Sames, as you know, 43 States and the District of Columbia have pipeline replacement programs as part of their statutes. In Texas, we have a risk-based program that requires operators to survey their pipelines for the greatest potential threats for failure and to make replacements. Our pipeline company is required to develop a prioritized schedule for replacement and in some ways our Texas regulations are more--Texas regulations are more stringent than PHMSA's. Generally speaking, how are these pipeline replacement programs funded and what are some of the constraints to further accelerate the replacement of aging pipelines? Ms. Sames. So each operator is working closely with our State commission on replacement programs. They're proposing here's what we want to replace. Here's the time line for replacement. It's all risk-based. So that--and try to be done in a way at the least cost to the customers. On faster, that's a bit of a challenge because you need qualified individuals in order to do the work. You do it too fast, you get--I don't want that. So there's a good balance. There needs to be a balance between how quickly you replace with a qualified workforce so you have your quality. And going back to your last question, I apologize; none of us mentioned that the other thing that we are doing to advance is sharing of information. We do it through conferences, workshops, technical papers. So something else. Mr. Flores. Best practices you're talking about? Ms. Sames. That is correct. Mr. Flores. OK. Thank you for--all the witnesses for being here today and I yield back the balance of my time. Mr. Tonko. The gentleman yields back. The Chair recognizes himself for 5 minutes. My understanding is that the 2011 Pipeline Safety bill included a number of required rule makings for PHMSA, many of which are not completed 8 years later, and I know that Representative McNerney had asked the panel about the reasons for those delays. But, Mr. Lesniak, I want to come back to you and ask you to more fully develop, if you would, PHMSA's cost-benefit requirements. Are they a hindrance to getting required rule makings completed in a timely manner and can you give us some more information in that regard? Mr. Lesniak. You know, as I said before, the Pipeline Safety Trust does think that that is one of the significant hindrances. There are other issues as well. But it's a duplicative process and unreasonably slows the process, and I think if that part of it was eliminated it would help move things along. Mr. Tonko. And what areas of duplication are the most concerned? Mr. Lesniak. There's an OMB--there's a similar cost-benefit analysis that's required by the OMB, and so why are we doing it two times. You know, we are not clear on that. Mr. Tonko. OK. I thank you for that. And what about NTSB itself? What about recommendations there? Are there still outstanding recommendations that haven't been implemented? Mr. Lesniak. There are. There are recommendations from NTSB that go way back, many that are supported by the industry and that--I think that NTSB recommendations, because they're an independent organization from the industry--from PHMSA itself, I think those recommendations ought to be taken seriously and prioritized for implementation. Mr. Tonko. And does the bill that we address here today with these hearings help improve that in any way? Mr. Lesniak. It does, but it could go further. There are specific recommendations for providing information to emergency responders that NTSB has recommended that are not included and we think that those should be included. Mr. Tonko. OK, and is leak detection technology an effective method to protect communities? Mr. Lesniak. It is, and it ought to be required with a standard for the effectiveness of that leak detection technology. Mr. Tonko. And so stronger requirements---- Mr. Lesniak. Yes. Mr. Tonko [continuing]. For that detection system would be an improvement for---- Mr. Lesniak. Yes. Mr. Tonko. Do any of our other witnesses have recommendations on NTSB's recommendations? Yes, Mr. Osman. Mr. Osman. Thank you for the question. We agree. NTSB recommendations are important and should be given great consideration by PHMSA, by the industry, by all of us. As we've said a few times, the pending rule makings that we believe PHMSA will complete this year will close out many outstanding NTSB recommendations and we think that's critical. Mr. Tonko. Mr. Black, you had some comments you wanted to share? Mr. Black. The primary discussion we are having with the NTSB right now is they're encouraging operators of all different pipeline segments to implement safety management systems. We are doing a lot of workshops. We are encouraging pipeline operators to do that. The NTSB said the response by the industry exceeded expectations and we are learning from them. Mr. Tonko. OK. Thank you very much. And Ms. Sames? Ms. Sames. Yes, and the only thing that I would add is with the NTSB recommendations there--we are typically looking at what's the intent behind that particular recommendation. There are some recommendations that may not be practical in the real world and those--in the conversations with them they'll say, you know, we are looking further out; where could technology be in 10 years, 15 years, 20 years. Whereas the industry is looking at what can we do right now to meet the intent of what you want. So I am always looking at how can I meet what you will want but maybe in a more practical way. Mr. Tonko. OK. Is there an example that you could share? Ms. Sames. Sure. For example, the NTSB had a recommendation to make all pipelines piggable and when I looked at it I said, well, there's two options. You can either dig up a lot of pipelines and replace them or you can create a new technology that will get through all the pipelines, because right now not all pipelines are piggable. You cannot run an inline inspection in all pipelines because it's not--because of lack of pressure, because of turns, because of valves. There's a lot of different criteria that don't make a certain pipeline piggable. But if we advance technology we can get there. Mr. Tonko. Thank you. Thank you very much. The Chair now recognizes Mr.--Representative Walberg for 5 minutes. Mr. Walberg. Thank you, Mr. Chairman. And today's hearing is very important. I think we all agree with that, and while I share some of the concerns of my colleagues about process and policy in the--in the discussion draft, I am hopeful that we can find bipartisan consensus as we move forward and we thank the panel for being here to help us in that process. Mr. Osman, in your testimony you emphasize the importance of direct assessment. It seems like we should be adding tools to PHMSA's toolbox, not taking them away. Can you describe what they are, these tools, and when they are most appropriate for use? Mr. Osman. Sure. Thank you. Direct assessment is an important safety technology in our toolbox. It involves looking for the precursors that might predict potential corrosion on a pipeline and going out and making excavations and actually looking at the pipe to understand if it's actually occurring. It's a tool that we use when other types of assessment methods are not possible or not available. My colleague, Ms. Sames, just mentioned certain pipelines that can't accommodate internal inspection devices. That's one example of when we might use that technology and, you know, there's just always going to be certain areas of the pipe they can't use those internal inspection devices. Also, sometimes there's a pipeline that cannot be shut down without having significant impacts to the folks who rely on that natural gas. So you wouldn't want to use an assessment method like hydrostatic pressure testing that requires a pipeline shutdown. It's another example of a good opportunity to use a direct assessment. Mr. Walberg. Mr. Black, how does direct assessment compare to other assessment methods in terms of preventing future pipeline integrity issues as opposed to finding existing problems? Mr. Black. Well, for liquids it's also an important tool in areas that cannot be pigged. Example is facility piping where you still want to do that type of inspection but you can't get an inline inspection device there. So we would not support a provision to eliminate that important tool. It wouldn't help safety. Mr. Walberg. OK. Ms. Sames, are there situations where direct assessment of pipelines is more appropriate than other methods when conducting pipeline integrity assessments? Ms. Sames. Direct assessment is a predictive model. It's predicting where corrosion should be and where you have the potential for corrosion to occur in the future, whereas for inline inspection it's what's already occurred. So if you're an operator that wants to predict where corrosion could be occurring you want direct assessment because it's helping you with those predictions and you're also digging up the line when you're doing direct assessment to confirm what you're finding. Mr. Walberg. OK. Moving on and switching gears here a little bit, Mr. Osman, in PHMSA's draft proposal there was a placeholder for a Voluntary Information-Sharing program. This is something I am very interested in and would like to get stakeholder feedback on. So do you think Congress should authorize such a program in our pipeline safety reauthorization this Congress? Mr. Osman. Yes, absolutely. That would go a long way to helping us share the information we need to prove our safety performance. Mr. Walberg. Mr. Black? Mr. Black. Yes, we'd agree. We'd encourage Congress to look at the report issued by a multistakeholder group that took years to work on this. Not everything in the administration proposal included what the report includes. Mr. Walberg. OK. Ms. Sames? Ms. Sames. Yes, and the administration bill, as Mr. Black indicated, doesn't quite go far enough. In my opinion, for example, it doesn't include distribution systems. And so representing the distribution industry, we've been pushing for that sharing of information to go throughout the entire network. Also, make sure the protections are there so that individuals sharing the information know they're protected from voluntarily providing safety concerns, safety issues. They are findings very similar to the FAA, making sure that's in place, and then finally, incentives. If I am an operator and I am concerned that not all the protections are there, I am probably going to be hesitant to share information. So anything that can encourage the sharing of information, even if it's as simple as PHMSA saying we are getting information from this particular operator, that would be good. Mr. Walberg. Other areas, Mr. Black and Mr. Osman, on this liability protection that you would suggest? Mr. Black. Well, we would encourage PHMSA and Congress to encourage PHMSA to encourage voluntary self-reporting so that pipeline operators will identify, disclose, correct. Right now they have that discretion but they use it very infrequently and it's not providing the incentive that it needs. That's an option to improve safety. Mr. Walberg. Well, my time has expired so I yield back. Mr. Rush [presiding]. I want to thank the gentleman for yielding back. That concludes our panel and I want to thank each and every one of you for joining us today and for sharing your time and your thoughts, your insights with us, and we will continue to work with you as we proceed in the future. Thank you so very much. There's a request for unanimous consent to enter into the record the following letters and other documents from associated entities, including a letter from the National Society of Professional Engineers; a letter from Aclara Technologies, LLC; a letter from the American Petroleum Institute; a letter from the GPA Midstream Association; a letter from the International Union of Operating Engineers, Laborers' International Union of North America, the North American Building Trade Unions and United Association of Plumbers and Pipefitters; an analysis and draft proposal of the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2019 from the Pipeline and Hazardous Material Safety Administration; technical drafting assistance of the Safer Pipeline Act of 2019 from the Pipeline and Hazardous Materials Safety Administration; and finally, a letter from the National Association of Corrosion Engineering. And without objection, this is so ordered. [The information appears at the conclusion of the hearing.] Mr. Rush. I want to thank again the witnesses and I will remind the Members that, pursuant to committee rules, they have 10 business days to submit additional questions for the record to be answered by the witnesses who have appeared, and I ask each witness to respond promptly to any such questions that you may receive. Seeing a consent from the witnesses, at this time the subcommittee stands adjourned. [Whereupon, at 12:52 p.m., the subcommittee was adjourned.] [Material submitted for inclusion in the record follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]