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                                                       Calendar No. 540
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-334
_______________________________________________________________________


 
        ACCOUNTABLE PIPELINE SAFETY AND PARTNERSHIP ACT OF 1996

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                    on

                                S. 1505




                 July 26, 1996.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred fourth congress
                             second session

  LARRY PRESSLER, South Dakota, 
             Chairman
ERNEST F. HOLLINGS, South Carolina   TED STEVENS, Alaska
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
WENDELL H. FORD, Kentucky            CONRAD BURNS, Montana
J. JAMES EXON, Nebraska              SLADE GORTON, Washington
JOHN D. ROCKEFELLER IV, West VirginiaTRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
JOHN B. BREAUX, Louisiana            OLYMPIA J. SNOWE, Maine
RICHARD H. BRYAN, Nevada             JOHN ASHCROFT, Missouri
BYRON L. DORGAN, North Dakota        BILL FRIST, Tennessee
RON WYDEN, Oregon                    SPENCER ABRAHAM, Michigan
  Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief 
    Counsel and Staff Director


104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-334
_______________________________________________________________________


        ACCOUNTABLE PIPELINE SAFETY AND PARTNERSHIP ACT OF 1996
                                _______
                                

                 July 26, 1996.--Ordered to be printed

_______________________________________________________________________


      Mr. Pressler, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1505]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1505) ``A Bill to reduce risk 
to public safety and the environment associated with pipeline 
transportation of natural gas and hazardous liquids, and for 
other purposes'', having considered the same, reports favorably 
thereon with an amendment in the nature of a substitute and 
recommends that the bill (as amended) do pass.

                          Purpose of the Bill

    The purpose of this legislation is to reauthorize 
appropriations for the Natural Gas and Hazardous Liquid 
Pipeline Safety programs, and to reduce the risks and enhance 
environmental protection associated with pipeline 
transportation. S. 1505, as amended, is intended to enhance the 
delivery of hazardous liquid and natural gas materials in a 
safe and environmentally responsible manner and permit the 
Department of Transportation (DOT) to build a more effective 
partnership with States, the public and industry.

                          Background and Needs

    The authorization of appropriations for pipeline safety 
programs expired September 30, 1995. By delegation of the 
Secretary of Transportation (Secretary) through the Research 
and Special Programs Administration (RSPA), the Office of 
Pipeline Safety (OPS) is charged with administering pipeline 
safety programs. Appropriations for pipeline safety programs 
were previously authorized under the Natural Gas Pipeline 
Safety Act of 1968 and the Hazardous Liquid Pipeline Safety Act 
of 1979. The two laws were combined under a single authority 
during the general recodification of Title 49, U.S. Code, in 
1994.

                        PIPELINE TRANSPORTATION

    OPS overseas the transportation of natural gas to 55 
million residential and commercial customers. OPS also oversees 
the transportation of more than 605 billion ton miles of 
petroleum and other hazardous liquids pipelines. OPS 
jurisdiction covers more than 2,000 gas pipeline operators with 
more than 1.6 million miles of pipeline, and more than 200 
operators and almost 200,000 miles of pipe transporting 
hazardous liquids. OPS also has responsibility for pipeline 
safety and environmental protection programs under the Oil 
Pollution Act of 1990.
    Pipeline safety programs are entirely financed by user 
fees. Gas transmission operators and hazardous liquid pipeline 
operators pay a pro rata share of program costs based on total 
pipeline mileage. Operators of liquefied natural gas facilities 
are assessed based on total storage capacity. Oil Pollution Act 
funds are derived from the Oil Spill Liability Trust Fund.
    National Transportation Safety Board statistics show 
pipelines to be one of the safest modes of transportation in 
the United States. Among all modes--highway, rail, aviation, 
marine, and pipeline--fatalities from pipeline accidents 
represent less than \3/1000\ of 1 percent of the total number 
of fatalities on an annual basis.
    In recent years, support has grown for developing 
innovative and alternative approaches to pipeline safety. The 
goal is simple and direct: improve pipeline transportation and 
efficiently manage both public and private resources. Given the 
desire for improvement, OPS initiated administrative activities 
to ensure that most safety and environmental risks are 
addressed with the most cost-effective solutions. OPS 
recognized legislation ultimately would be necessary to codify 
and authorize its initiative.
    The Administration's pipeline safety reauthorization 
submission last year sought new authority to work with industry 
and others to move away from traditional ``command-and-
control'' regulations. The legislative proposal requested 
authority to establish a formal structure to evaluate pipeline 
risks and their consequences, to develop solutions to address 
the risks, and establish management priority systems to 
implement the solutions.
    The Committee supports a shift in the pipeline safety 
program away from a prescriptive, one-size-fits-all regulatory 
approach. As reported, S. 1505 responds to this challenge and 
provides statutory authority to initiate the shift.

                          Legislative History

    Senator Lott, Chairman of the Subcommittee on Surface 
Transportation and Merchant Marine, introduced S. 1505, the 
Accountable Pipeline Safety and Partnership Act of 1995, on 
December 22, 1995. A bipartisan group of Senators (Senators 
Breaux, Hutchison, Exon, Burns, Ford, Inouye, Shelby, Cochran, 
Frist, Inhofe and Pressler) cosponsored S. 1505.
    S. 1505, as introduced, was similar to H.R. 1323, the 
Pipeline Safety Act of 1995.
    The Committee held a hearing on S. 1505 on April 16, 1996. 
At the hearing, the Committee heard concerns from affected 
parties, including federal and state regulators.
    In open executive session on June 6, 1996, S. 1505 was 
amended by the Committee and ordered to be reported without 
objection.

                      Summary of Major Provisions

                         RISK ASSESSMENT REFORM

    The bill builds upon the Administration's submission and 
broadens the application of risk-based solutions through the 
performance of risk assessments. Risk assessments identify the 
sources of risk, analyze the severity of potential risk 
consequences and quantify the likelihood of experiencing those 
consequences.
    S. 1505, as reported, establishes a structured risk 
assessment, cost-benefit analysis process as a possible basis 
for future pipeline safety standards. The risk assessment 
process designed in the Committee bill may ensure that future 
pipeline safety standards recognize and incorporate more 
detailed, scientifically and economically grounded 
considerations. The Committee's bill complements OPS's existing 
risk assessment prioritization (RAP) model which seeks to 
identify the most rational, cost-effective alternatives, if 
any, to a given proposed safety requirement. S. 1505 moreover 
builds on the existing rulemaking procedures already followed 
by the Administration generally and by OPS specifically.
    Under the bill, the Secretary must issue safety standards 
based on a reasoned determination that the benefits of the 
intended standard justify its costs. As noted above, OPS 
already has a RAP program in place.
    The bill requires a risk assessment to be performed when 
prescribing new pipeline standards. The assessment would 
identify or estimate the benefits expected to result from a 
proposed standard, as well as identify or estimate the expected 
costs to result from the proposed standard. The Committee fully 
recognizes that all benefits and costs cannot be quantified 
with precision and consequently S. 1505 does not prevent the 
consideration of unmeasurable benefits and costs. The OPS 
assessments also would have to identify both the regulatory and 
nonregulatory options available when considering a new 
standard.
    S. 1505 subjects the risk assessment information prepared 
for the Secretary to peer review. The peer review would be 
conducted by existing panels at OPS, the Technical Pipeline 
Safety Standards Committee and the Technical Hazardous Liquid 
Pipeline Safety Standards Committee (Technical Committees). The 
peer review process in the reported bill is based partly on the 
time-tested review method governing the academic community, a 
process wherein technical experts offer comments intended to 
improve the quality of a product. The bill takes advantage of 
the existing regulatory review process conducted by OPS's 
committees, committees comprised of government, public and 
industry experts on pipeline transportation matters. S. 1505 
permits the OPS committees the option of making recommendations 
on the risk assessment information submitted.
    It is intended that this process will bring more 
rationality to federal pipeline safety standard setting and 
broaden participation by requiring OPS to consider more 
carefully comments received from these bodies. The Committee 
expects that OPS will diligently assist these committees in the 
conduct of this important function.
    Since the performance of risk assessments on every rule may 
not be justified, S. 1505 specifies four circumstances under 
which the risk assessment and cost-benefit provisions do not 
apply. These include situations in which: (1) the standard is 
the result of a negotiated rulemaking; (2) no significant 
opposition to the rule is expressed during the public comment 
process; (3) a proposed rule is endorsed by three-fourths of 
the Technical Committees; and (4) the exemption for notice and 
public comment is invoked under the Administrative Procedures 
Act.
    In order for a meaningful analysis of the public policy 
benefits of risk assessments to be made, the Congress will need 
to know what they accomplished and whether the designed process 
was workable. Therefore, the bill requires the Secretary to 
transmit a report to Congress describing the implementation of 
the risk assessment requirements and the extent to which the 
requirements improved regulatory decision making. The report 
must be submitted no later than March 31, 2000.

                 RISK MANAGEMENT DEMONSTRATION PROJECTS

  The principle of risk management is well tested. It has been 
extensively studied by the academic community and successfully 
used in a number of different businesses and industries. 
Chemical and petrochemical companies have found the risk 
management process to be more effective than relying solely on 
regulations. \1\  Insurance companies frequently view good risk 
management as an effective loss prevention process.
---------------------------------------------------------------------------
    \1\  See Natural Gas Pipeline Risk Management, Volume II-Search of 
Literature Worldwide on Risk Assessment/Risk Management for Loss of 
Containment, Gas Research Institute, October 1995.
---------------------------------------------------------------------------
  Some pipeline companies already use risk management when 
deciding in which safety measures to invest that go beyond 
current safety standards. In anticipation of Congressional 
action, OPS has been developing and validating standards and 
measures to permit the start of a safe and environmentally 
sound demonstration program.
  Over the past two years, a Government and industry 
partnership has built a foundation of knowledge and 
professional understanding for demonstrating risk management in 
pipeline transportation. Working with State partners and 
industry, OPS formed risk assessment quality teams (RAQTs) to 
design a new, collaborative regulatory framework as an 
alternative to specification-based regulation. The designed 
approach would permit an operator to substitute an 
individually-tailored risk management plan for the minimum 
Federal standards that would otherwise apply.
  The reported bill gives OPS the authority to take advantage 
of this two-year investment and initiate risk management 
demonstration projects. The demonstration projects provision 
incorporates principles set forth in a report by the Gas Risk 
Assessment Quality Team entitled ``Risk Management Within the 
Gas Pipeline Industry'', and a similar report by the liquids 
team entitled ``Risk Management Within the Liquid Pipeline 
Industry.''
  Under the program envisioned by the legislation, the 
Secretary would seek voluntary participation by interstate 
natural gas and hazardous liquid transmission operators in good 
standing to demonstrate company-specific risk management plans. 
The Secretary would complete a rulemaking that outlines the 
demonstration plan elements and provides opportunities for full 
public participation in the process. The formal risk management 
plans would be submitted and approved by order of the 
Secretary. S. 1505 clearly requires that the risk management 
demonstration plans meet or exceed the overall level of safety 
that would be achieved with existing regulatory requirements. 
The Committee expects OPS inspectors to monitor diligently the 
industry's compliance with the OPS approved management plans.
  In summary, the risk assessment and risk management 
provisions of the reported bill rest on the foundations 
previously established by OPS, industry, and academic 
communities. The bill builds on initiatives undertaken at OPS 
to focus its regulatory and programmatic agenda on the most 
important public safety and environmental protection standards, 
as well as providing industry with more flexibility to conduct 
their operations safely. The bill also provides the legislative 
framework to implement the results of more than two years of 
planning by OPS and the risk assessment quality teams seeking 
to promote safety and regulatory flexibility.

                           STATE PARTNERSHIPS

  Current law authorizes the Federal government to reimburse 
States for up to half the costs incurred in carrying out their 
responsibilities for monitoring and enforcing national natural 
gas pipeline safety standards. Although budget constraints 
preclude guaranteeing States a fifty percent cost 
reimbursement, the authorization levels in S. 1505 are higher 
than those in pending House legislation.
  OPS must work closely with and inform States about the 
development of risk management demonstration plans. S. 1505 as 
reported also gives DOT the discretion to assign responsibility 
to the States for approval and administration of a risk 
management demonstration project plan to the extent the 
affected pipeline facility is an intrastate facility. The bill 
does not affect the relationship between the States and 
interstate pipeline operations.

                       UNUSUALLY SENSITIVE AREAS

  Under section 60109 of title 49, U.S. Code, as added by the 
Pipeline Safety Act of 1992, the Secretary is to describe 
through regulation the definition of areas unusually sensitive 
to environmental damage if there is a hazardous liquid pipeline 
accident. The purpose of the unusually sensitive area 
description is to define areas within which pipelines' rights 
of way will be subject to increased testing and inspection. 
This will ensure that every reasonable measure is taken to 
prevent a spill and to develop contingency plans on how to 
respond in the event of an accident. RSPA has held several 
workshops attended by the public, environmental groups, 
industry and government representatives to discuss the guiding 
principles for determining which areas are unusually sensitive 
to environmental damage. While the final description is left to 
the Secretary, Congressional guidance is crucial.
  There is language in the bill to provide guidance to DOT. The 
language makes clear the Secretary should focus on areas in 
which permanent or long-term environmental damage is likely in 
the event of a hazardous liquid pipeline accident. For example, 
such an area would include intake locations for community water 
systems and critical sole source aquifer protection areas. The 
bill language provides a more comprehensive, but not exclusive, 
list of area types.

                INSTRUMENTED INTERNAL INSPECTION DEVICES

  The 1994 recodification produced confusion as to the original 
legislative intention concerning the standards for instrumented 
internal inspection devices (commonly referred to as ``smart 
pigs''). The Committee has worked to clarify this matter by 
returning the statutory language to the language prior to 
recodification.
  The Committee intends for DOT to have the authority to order 
a pipeline to run a ``smart pig'' if circumstances justify such 
an order. Devices like smart pigs are important safety tools. 
However, the Committee does not intend to require a wholesale 
or extensive retrofit of existing pipelines to accommodate 
specific internal inspection devices such as smart pigs.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and Section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 18, 1996.
Hon. Larry Pressler,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1505, the 
Accountable Pipeline Safety and Partnership Act of 1996.
    Enacting S. 1505 would affect direct spending and receipts. 
Therefore, pay-as-you-go procedures would apply to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

    1. Bill number: S. 1505.
    2. Bill title: Accountable Pipeline Safety and Partnership 
Act of 1996.
    3. Bill status: As ordered reported by the Senate Committee 
on Commerce, Science, and Transportation on June 6, 1996.
    4. Bill purpose: S. 1505 would:
          Authorize a total of $140 million to be appropriated 
        for the gas and hazardous liquid pipeline safety 
        programs and the pipeline safety grant program for 
        fiscal years 1996 through 2000;
          make changes to the pipeline safety program;
          require the Secretary of Transportation to issue a 
        report on pipeline user fees;
          establish a risk management demonstration project;
          allow the Secretary of Transportation to make grants 
        to and enter into cooperative agreements with other 
        agencies, state and local governments, educational 
        institutions or other entities to develop, improve, and 
        promote one-call damage prevention programs, research, 
        risk assessment and mapping;
          impose criminal penalties on individuals who do not 
        report damaged pipeline facilities to the appropriate 
        authorities; and
          impose criminal penalties on individuals who excavate 
        and dispose of solid waste on a pipeline right-of-way 
        without authorization.
    5. Estimated cost to the Federal Government: Assuming 
appropriation of the entire amounts authorized, enacting S. 
1505 would increase federal outlays by $26 million over the 
1997-2002 period. That estimate is the difference between gross 
discretionary spending of $140 million authorized by the bill, 
and an estimated $114 million in pipeline user fees that would 
be collected over the 1997-2000 period authorized by S. 1505. 
Enacting S. 1505 would result in such net federal spending 
because the authorized amounts of gross spending are higher 
than the amounts of authorized fees for three of the next four 
fiscal years. While S. 1505 also authorizes funding for the 
current fiscal year, CBO assumes the bill would be enacted too 
late in the year to have any impact on 1996 spending.
    Enacting S. 1505 would limit the amount that may be 
collected in user fees for pipeline safety. Under current law, 
these user fees are mandatory and recorded as offsetting 
receipts. CBO estimates that fees will total about $30 million 
in 1996 and would continue at that level under a simple 
extension of current law. Because the bill would set limits on 
fees to be collected from 1997 through 1999 at amounts below 
$30 million a year, it would reduce offsetting receipts, 
thereby causing an increase in direct spending. We estimate 
that this increase in direct spending would total $6 million 
over the 1997-1999 period. The bill's proposed limitation of 
$30 million for fiscal year 2000 is equal to our estimate of 
fees under current law for that year.
    The remaining $20 million in increased federal outlays is 
shown as spending subject to appropriations. This amount 
represents authorized increases in spending above the $30 
million level that we project would be offset by pipeline 
safety fees under current law.
    Finally, the bill could also affect revenues by increasing 
criminal fines, but CBO estimates that any such increase would 
be less than $500,000 a year. If criminal fines are collected, 
they would be deposited in the Crime Victims Fund and spent the 
following year.
    For purposes of this estimate, CBO assumes that the full 
amounts authorized to be appropriated for pipeline safety 
activities would be appropriated for each fiscal year. Outlay 
estimates are based on historical spending rates. The following 
table summarizes the estimated budgetary effects of S. 1505.

                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                                 1997   1998   1999   2000   2001   2002
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATIONS             
                                                                        
Estimated net authorization                                             
 \1\..........................      4      5      5      6     --     --
Estimated net outlays.........      2      4      5      5      3      1
                                                                        
                 CHANGES IN DIRECT SPENDING AND REVENUES                
                                                                        
Direct spending: \2\                                                    
    Estimated budget authority      3      2      1     --     --     --
    Estimated outlays.........      3      2      1     --     --     --
Revenues:                                                               
    Estimated revenues........  ( \3\                                   
                                    )  ( \3\                            
                                           )  ( \3\                     
                                                  )  ( \3\              
                                                         )  ( \3\       
                                                                )  ( \3\
                                                                      ) 
------------------------------------------------------------------------
\1\ The amounts shown are the differences between the bill's authorized 
  funding levels for each year and $30 million, which is the estimated  
  amount of spending that would be offset by fees under a simple        
  extension of current law.                                             
\2\ The amounts shown are the differences between the bill's authorized 
  level of fees (from $27 million to $30 million) and CBO's estimate of 
  fee collections ($30 million) without any such annual limitations.    
\3\ Less than $500,000.                                                 

    The costs of this bill fall within budget function 400.
    6. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. Because S. 1505 would reduce 
offsetting receipts from pipeline safety fees and could 
increase penalty collections pay-as-you-go procedures would 
apply to the bill. The pay-as-you-go impact of the bill is as 
follows:

                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                                                 1996     1997     1998 
------------------------------------------------------------------------
Change in outlays............................        0        3        2
Change in receipts...........................        0        0        0
------------------------------------------------------------------------

    7. Estimated impact on State, local, and tribal 
governments:
    Intergovernmental Mandates. S. 1505 would impose mandates, 
as defined by Public Law 104-4, on approximately 1,000 local 
governments with municipal gas operations. The bill would 
require operators of pipeline facilities to report damage to 
the approximately authorities promptly and to include 
information on the use of the one-call notification system in 
their public education programs. It would also prohibit the 
dumping of solid waste within pipeline rights-of-way. Based on 
information from the Department of Transportation and the 
American Public Gas Association, CBO estimates that the direct 
costs of complying with these new requirements would be 
negligible and, thus, well below the $50 million annual 
threshold established in Public Law 104-4.
    Other Impacts on State, Local, and Tribal Governments. The 
overall effect of S. 1505 would be to ease requirements on 
owners and operators of pipelines and pipeline facilities, 
including municipal gas operators. The bill would authorize the 
appropriation of approximately $71 million through fiscal year 
2000 for the state pipeline safety grant program. The bill 
would also give the Secretary of Transportation new authority 
to make grants to and enter into cooperative agreements with 
state, local, and tribal governments to carry out other 
pipeline safety programs, research, risk assessment, and 
mapping. In addition, the bill would require the Secretary to 
make certain land use recommendations available to state 
officials and would provide for states to take over aspects of 
some risk management demonstration projects. The bill would 
also eliminate the criminal penalties associated with the 
establishment of the one-call notification system required of 
each state.
    8. Estimated impact on the private sector: S. 1505 would 
impose new private-sector mandates not exceeding the annual 
threshold, as defined in Public Law 104-4. Based on information 
provided by the Department of Transportation and industry 
representatives, CBO estimates that these provisions would not 
substantially affect costs to the private sector.
    The damage reporting requirement imposed by section 14 and 
the prohibition against dumping in pipeline rights-of-way 
imposed by section 18 would impose private-sector mandates with 
no direct compliance costs as defined in Public Law 104-4. In 
addition, the expansion of the public education programs to 
include the use of one-call systems as required by section 11 
would impose a new private-sector mandate, with negligible 
direct costs. Overall, other sections of S. 1505 would decrease 
costs imposed on the private sector.
    9. Previous CBO estimate: On May 25, 1995, CBO transmitted 
a cost estimate on H.R. 1323, the Pipeline Safety Act of 1995, 
as ordered reported by the House Committee on Commerce. In 
addition, CBO transmitted a cost estimate on April 7, 1995, on 
H.R. 1323, as ordered reported by the House Committee on 
Transportation and Infrastructure. The House bills differ from 
S. 1505 in that they would not result in any net change in new 
federal spending because the pipeline user fees would continue 
to be equal to the authorized spending for both versions of 
H.R. 1323. In addition, S. 1505 authorizes different levels of 
spending than the two versions of H.R. 1323.
    10. Estimate prepared by: Federal Cost Estimate--Clare 
Doherty and Stephanie Weiner, for revenues; State and local 
government impact--Karen McVey; Private sector impact--Amy 
Downs.
    11. Estimate approved by: Robert A. Sunshine (for Paul N. 
Van de Water, Assistant Director for Budget Analysis).

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
    S. 1505, as reported, reauthorizes appropriations for 
Natural Gas and Hazardous Liquid Pipeline Safety programs and 
activities. The bill does not affect existing pipeline safety 
standard regulations, but does require OPS to include risk 
assessments within future individual rulemakings. The bill also 
authorizes OPS to approve plans submitted by operators to 
substitute an individually-tailored risk management plan for 
existing minimum Federal standards.
    The bill will not subject any individuals or businesses 
affected by the bill to additional regulation and will not 
increase the paperwork requirement for such individuals or 
businesses. This legislation also has no impact on the personal 
privacy of individuals.

                      Section-by-Section Analysis

Section 1. Short title

    Section 1 cites the short title of the bill as the 
``Accountable Pipeline Safety and Partnership Act of 1996.''

Section 2. References

    Section 2 provides that amendments and references in the 
bill are to sections and provisions in Title 49, U.S. Code.

Section 3. Definitions

    The definitions of ``transporting natural gas'' and 
``gathering line'' are changed to reflect the law prior to the 
1994 recodification. The terms ``risk management'', ``risk 
management plan'', and ``Secretary'' are defined. Section 3 
also provides that the Secretary shall define ``regulated 
gathering line'', but only if it is appropriate to do so.

Section 4. General authority

    Section 4 (a) applies minimum safety standards to owners 
and operators of pipeline facilities and requires that 
operators of facilities must be qualified, but not certified, 
and must be able to recognize and react appropriately to 
abnormal operating conditions that may indicate dangerous 
situations or conditions exceeding design limits.
    Section 4(b) broadens section 60102 to require the 
performance of risk assessments and cost-benefit analyses when 
prescribing new minimum safety standards under sections 60101 
(b) [gathering lines], 60103 [liquefied natural gas pipeline 
facility standards], 60108 [inspection and maintenance], 60109 
[high-density population areas and environmentally sensitive 
areas], 60110 [excess flow valves], or 60113 [customer-owned 
natural gas service lines]. The section also requires the 
Secretary to consider public comments, as well as the comments 
and recommendations of the Technical Committees, when 
prescribing new standards.
    Section 4 (b) also requires the risk assessments to 
identify regulatory and nonregulatory options the Secretary 
considered, identify the costs and benefits associated with the 
proposed standard, and include an explanation of the reasons 
for selecting one option over others identified. Section 4(b) 
further requires the Secretary to submit risk assessment 
information for review to one or both of the Technical 
Committees, as appropriate. The submitted risk assessment 
information shall be available to the public. The Secretary 
must provide a written response to all significant peer review 
comments and recommended alternatives, and may revise the risk 
assessment and the proposed standard before promulgating the 
final standard.
    Section 4(b) provides that except where otherwise required 
by statute, the Secretary can propose or issue standards only 
upon a reasoned determination that the benefits of the intended 
standard justify its costs.
    Section 4(b) provides exemptions from the risk assessment 
provisions. The exemptions cover a standard that is the product 
of a negotiated rulemaking, or other rulemaking including the 
adoption of industry standards that receives no significant 
adverse comment within 60 days of the Federal Register notice. 
Risk assessment requirements also do not apply when the 
Secretary waives the requirement based on a recommendation of 
three-fourths of the members of one or both of the Technical 
Committees, as applicable. Finally, the risk assessment 
provisions do not apply when the Secretary finds, pursuant to 
section 553(b)(3)(B) of title 5, U.S. Code, that notice and 
public comment procedures are not required.
    Section 4(b) requires the Secretary to send a report to 
Congress on the application of the bill's provisions and how 
their application improved regulatory decision making. The 
report is to be submitted no later than March 31, 2000.
    Section 4(c) makes technical changes to facility operation 
information standards. Section 4(d) moves the authority for the 
Secretary to collect information regarding gathering facilities 
to section 60117 of title 49, U.S. Code, for better conformity 
in the pipeline safety law. Section 4(e) amends section 
60102(e) to return the statutory language on instrumented 
internal inspection devices to the original language that 
existed prior to the 1994 recodification. Section 4(f) adds a 
new section 60102(l) to direct the Secretary to update 
incorporated industry standards, as appropriate.

Section 5. Risk management

    Section 5 adds a new section 60126 to title 49, U.S. Code, 
to authorize risk management demonstration projects. In 
carrying out a risk management demonstration project, the 
Secretary shall invite owners and operators of pipelines to 
submit pipeline safety plans tailored to a particular pipeline 
or segment of pipeline. The bill requires that the plans 
achieve an equivalent or greater level of safety than would 
otherwise be achieved through compliance with existing 
standards. Under the bill, the Secretary by order may exempt 
participating pipelines from the applicability of some or all 
standards that would otherwise apply, and shall exempt them 
from any new standard promulgated during participation in the 
demonstration project. The Committee does not intend for the 
risk management plans to be utilized to avoid compliance, but 
rather the plans should be used to maintain and improve safety 
in a more effective and efficient manner. The bill allows the 
Secretary to revoke any exemption granted for noncompliance 
with the terms and conditions of a risk management plan 
approved by order. Nothing in S. 1505 diminishes or modifies 
the Secretary's authority to act in case of an emergency.
    The section also allows the Secretary to provide for 
consultation by a State that has a state certification (under 
section 60105) in effect. Under the bill language, the 
Secretary can make an arrangement with a section 60105 
certificated state, to the extent that the project comprises an 
intrastate natural gas pipeline or an intrastate hazardous 
liquid pipeline facility, to carry out the duties of the 
Secretary for approval and administration of the project. The 
section requires the Secretary to submit a report to Congress 
evaluating the risk management demonstration projects and 
recommending whether they should be made permanent. The report 
must be submitted no later than March 31, 2000.

Section 6. Inspection and maintenance

    This section strikes the requirement in section 60108 of 
title 49, U.S. Code, that the Secretary inspect, every two 
years, the inspection and maintenance plans each pipeline 
operator is required to maintain. Instead, the Secretary may 
determine the frequency of inspections. This section also 
clarifies that ``waters'' where underwater pipelines are 
subject to inspections means areas where a substantial 
likelihood of commercial navigation exists.

Section 7. High-density population areas and environmentally sensitive 
        areas

    Section 7(a) makes the same clarifying change regarding 
``waters'' as in Section 6 above. Section 7(b) provides clearer 
guidance to the Secretary in describing areas of unusual 
environmental sensitivity. It makes clear that the Secretary 
should focus on areas in which permanent or long-term 
environmental damage is likely and provides a list of more 
comprehensive, but not exclusive, factors to consider.

Section 8. Excess flow valves

    Section 8 makes several changes in section 60110 of title 
49, U.S. Code. Section 8(1) restores the words ``if any'' which 
were inadvertently deleted during the 1994 recodification. The 
section also contains provisions providing that the 
notification from natural gas operators to customers having 
lines in which excess flow valves are not required, but can be 
installed, shall include the costs associated with maintenance 
and replacement as well as the costs of installation. The 
section also provides that the Secretary may adopt industry 
accepted performance standards for excess flow valves.

Section 9. Customer-owned natural gas service lines

    This section removes the requirement in section 60113 of 
title 49, U.S. Code, that the Secretary take actions to promote 
adoption of measures to improve the safety of customer-owned 
natural gas service lines.

Section 10. Technical Safety Standards Committees

    This section provides that the Technical Committees shall 
serve as peer review committees for purposes of all pipeline 
safety standards which must undergo risk assessment and peer 
review. The membership of the committees is modified so that 
each committee is composed of 5 individuals each from 
government, industry, and the public, thereby increasing 
industry representatives from 4 to 5 and reducing public 
representatives from 6 to 5. The section requires that at least 
one individual on each committee must have experience in risk 
assessment and cost-benefit analysis. All risk assessment 
information and other analyses supporting proposed standards 
must be submitted to the committees for review. Also, the 
section raises the number of meetings that can be held by the 
committees from two, to up to four a year.

Section 11. Public education programs

    This section makes a technical correction to section 60116. 
The section also broadens public education programs carried out 
by natural gas owners and operators to include the use of one-
call systems prior to excavation to prevent pipeline damage.

Section 12. Administrative

    Section 12(1) retains the Secretary's authority to request 
information from gathering line operators. Under the section's 
language, the information requested must be pertinent to the 
Secretary's ability to determine what additional gathering 
lines should be regulated.
    Section 12(2) authorizes the Secretary to enter into 
grants, cooperative agreements, and other transactions with any 
person, agency, State and local government, educational 
institution, or other entity. Further, the section permits the 
Secretary to provide funding to one-call programs not operated 
by States.

Section 13. Compliance

    This section allows the Secretary to issue orders directing 
compliance with applicable safety standards, with an order 
issued under section 60126 [the Risk Management Demonstration 
Projects] or with a prescribed regulation. The order issued 
under this section must state clearly the action a person must 
take to comply.

Section 14. Damage reporting

    This section makes it a federal crime to knowingly and 
willfully damage a pipeline facility and not promptly report 
the damage to the pipeline operator and other appropriate 
authorities.

Section 15. Biennial reports

  This section requires reports every two years to Congress 
whereas existing law (section 60124) mandates that an annual 
report be submitted.

Section 16. Population encroachment

  This section requires the Secretary to make available to 
State pipeline officials the land use recommendations from the 
Transportation Research Board's special report entitled 
``Pipelines and Public Safety.'' This section also directs the 
Secretary to evaluate those recommendations, determine to what 
extent they are being implemented, consider ways to improve 
their implementation and consider other initiatives to improve 
the awareness of local planning and zoning entities regarding 
population encroachment in proximity to rights-of-way of 
interstate pipeline facilities.

Section 17. User fees

  This section requires the Secretary to analyze whether the 
current methodology for allocating user fees among pipelines is 
an accurate measure of the resources used to regulate pipeline 
safety. This provision is intended to ensure that fees charged 
are proportional to services rendered. The section requires the 
Secretary, in preparing the report, to consider a wide range of 
assessment factors and suggestions and comments from the 
public.

Section 18. Dumping within pipeline rights-of-way

  This section prohibits unauthorized dumping in pipeline 
rights-of-way. This section also allows the Secretary to seek 
the civil or criminal penalties that are already provided for 
in the pipeline safety law for rights-of-way unauthorized 
dumping.

Section 19. Prevention of damage to pipeline facilities

  This section allows the Secretary to undertake promotional 
activities that help prevent damage to pipeline facilities.

Section 20. Technical corrections

  Various technical corrections to sections of Chapter 601 of 
title 49 are made by this section.

Section 21. Authorization of appropriations

  Gas and hazardous liquid activities are authorized at the 
following levels and in the following manner:
   $19,448,000 for fiscal year 1996.
   $20,028,000 for fiscal year 1997, of which 
            $14,600,000 is to be derived from user fees 
            collected for fiscal year 1997.
   $20,729,000 for fiscal year 1998, of which 
            $15,100,000 is to be derived from user fees 
            collected for fiscal year 1998.
   $21,442,000 for fiscal year 1999, of which 
            $15,700,000 is to be derived from user fees 
            collected for fiscal year 1999.
   $22,194,000 for fiscal year 2000, of which 
            $16,300,000 is to be derived from user fees 
            collected for fiscal year 2000.
  Pipeline State Safety Grants are authorized at the following 
levels and in the following manner:
   $12,000,000 for fiscal year 1996.
   $14,000,000 for fiscal year 1997, of which 
            $12,500,000 is to be derived from user fees 
            collected for fiscal year 1997.
   $14,490,000 for fiscal year 1998, of which 
            $12,900,000 is to be derived from user fees 
            collected for fiscal year 1998.
   $15,000,000 for fiscal year 1999, of which 
            $13,300,000 is to be derived from user fees 
            collected for fiscal year 1999.
   $15,524,000 for fiscal year 2000, of which 
            $13,700,000 is to be derived from user fees 
            collected for fiscal year 2000.
  The Committee by this section expects the total new user fee 
collections for the pipeline activities authorized under 
section 21 will be limited to $27,100,000 in fiscal year 1997, 
$28,000,000 in fiscal year 1998, $29,000,000 in fiscal year 
1999, and $30,000,000 in fiscal year 2000. The Committee 
further intends that the differences between the funds 
authorized and the new user fee collections authorized will 
come from sources other than new user fee collections. These 
sources include a planned and reasonable draw down of the user 
fees collected during fiscal year 1985 and 1987 and currently 
held in reserve. Another source is additional funding from the 
Oil Spill Liability Trust Fund which covers OPS 
responsibilities under the Oil Pollution Act.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

Sec. 60101. Definitions

  (a) In this chapter [49 U.S.C. 60101 et seq.]--
          (1) ``existing liquefied natural gas facility''--
                  (A) means a liquefied natural gas facility 
                for which an application to approve the site, 
                construction, or operation of the facility was 
                filed before March 1, 1978, with--
                          (i) the Federal Energy Regulatory 
                        Commission (or any predecessor); or
                          (ii) the appropriate State or local 
                        authority, if the facility is not 
                        subject to the jurisdiction of the 
                        Commission under the Natural Gas Act 
                        (15 U.S.C. 717 et seq.); but
                  (B) does not include a facility on which 
                construction is begun after November 29, 1979, 
                without the [approval.] approval;
          (2) ``gas'' means natural gas, flammable gas, or 
        toxic or corrosive [gas.] gas;
          (3) ``gas pipeline facility'' includes a pipeline, a 
        right of way, a facility, a building, or equipment used 
        in transporting gas or treating gas during its 
        [transportation.] transportation;
          (4) ``hazardous liquid'' means--
                  (A) petroleum or a petroleum product; and
                  (B) a substance the Secretary of 
                Transportation decides may pose an unreasonable 
                risk to life or property when transported by a 
                hazardous liquid pipeline facility in a liquid 
                state (except for liquefied natural [gas).] 
                gas);
          (5) ``hazardous liquid pipeline facility'' includes a 
        pipeline, a right of way, a facility, a building, or 
        equipment used or intended to be used in transporting 
        hazardous [liquid.] liquid;
          (6) ``interstate gas pipeline facility''--
                  (A) means a gas pipeline facility--
                          (i) used to transport gas; and
                          (ii) subject to the jurisdiction of 
                        the Commission under the Natural Gas 
                        Act (15 U.S.C. 717 et seq.); but
                  (B) does not include a gas pipeline facility 
                transporting gas from an interstate gas 
                pipeline in a State to a direct sales customer 
                in that State buying gas for its own 
                [consumption.] consumption;
          (7) ``interstate hazardous liquid pipeline facility'' 
        means a hazardous liquid pipeline facility used to 
        transport hazardous liquid in interstate or foreign 
        [commerce.] commerce;
          (8) ``interstate or foreign commerce''--
                  (A) related to gas, means commerce--
                          (i) between a place in a State and a 
                        place outside that State; or
                          (ii) that affects any commerce 
                        described in subclause (A)(i) of this 
                        clause; and
                  (B) related to hazardous liquid, means 
                commerce between--
                          (i) a place in a State and a place 
                        outside that State; or
                          (ii) places in the same State through 
                        a place outside the [State.] State;
          (9) ``intrastate gas pipeline facility'' means--
                  (A) a gas pipeline facility and 
                transportation of gas within a State not 
                subject to the jurisdiction of the Commission 
                under the Natural Gas Act (15 U.S.C. 717 et 
                seq.); and
                  (B) a gas pipeline facility transporting gas 
                from an interstate gas pipeline in a State to a 
                direct sales customer in that State buying gas 
                for its own [consumption.] consumption;
          (10) ``intrastate hazardous liquid pipeline 
        facility'' means a hazardous liquid pipeline facility 
        that is not an interstate hazardous liquid pipeline 
        [facility.] facility;
          (11) ``liquefied natural gas'' means natural gas in a 
        liquid or semisolid [state.] state;
          (12) ``liquefied natural gas accident'' means a 
        release, burning, or explosion of liquefied natural gas 
        from any cause, except a release, burning, or explosion 
        that, under regulations prescribed by the Secretary, 
        does not pose a threat to public health or safety, 
        property, or the [environment.] environment;
          (13) ``liquefied natural gas conversion'' means 
        conversion of natural gas into liquefied natural gas or 
        conversion of liquefied natural gas into natural [gas.] 
        gas;
          (14) ``liquefied natural gas pipeline facility''--
                  (A) means a gas pipeline facility used for 
                transporting or storing liquefied natural gas, 
                or for liquefied natural gas conversion, in 
                interstate or foreign commerce; but
                  (B) does not include any part of a structure 
                or equipment located in navigable waters (as 
                defined in section 3 of the Federal Power [Act 
                (16 U.S.C. 796)).] Act (16 U.S.C. 796));
          (15) ``municipality'' means a political subdivision 
        of a [State.] State;
          (16) ``new liquefied natural gas pipeline facility'' 
        means a liquefied natural gas pipeline facility except 
        an existing liquefied natural gas pipeline [facility.] 
        facility;
          (17) ``person'', in addition to its meaning under 
        section 1 of title 1 [1 U.S.C. 1] (except as to 
        societies), includes a State, a municipality, and a 
        trustee, receiver, assignee, or personal representative 
        of a [person.] person;
          (18) ``pipeline facility'' means a gas pipeline 
        facility and a hazardous liquid pipeline [facility.] 
        facility;
          (19) ``pipeline transportation'' means transporting 
        gas and transporting hazardous [liquid.] liquid;
          (20) ``State'' means a State of the United States, 
        the District of Columbia, and Puerto [Rico.] Rico;
          (21) ``transporting gas''--
                  (A) means--
                          (i) the gathering, transmission, or 
                        distribution of gas by pipeline, or the 
                        storage of gas, in interstate or 
                        foreign commerce; and
                          (ii) the movement of gas through 
                        regulated gathering lines; but
                  [(B) does not include gathering gas (except 
                through regulated gathering lines) in a rural 
                area outside a populated area designated by the 
                Secretary as a nonrural area.]
                  (B) does not include the gathering of gas, 
                other than gathering through regulated 
                gathering lines, in those rural locations that 
                are located outside the limits of any 
                incorporated or unincorporated city, town, or 
                village, or any other designated residential or 
                commercial area (including a subdivision, 
                business, shopping center, or community 
                development) or any similar populated area that 
                the Secretary of Transportation determines to 
                be a nonrural area, except that the term 
                ``transporting gas'' includes the movement of 
                gas through regulated gathering lines;
          (22) ``transporting hazardous liquid''--
                  (A) means--
                          (i) the movement of hazardous liquid 
                        by pipeline, or the storage of 
                        hazardous liquid incidental to the 
                        movement of hazardous liquid by 
                        pipeline, in or affecting interstate or 
                        foreign commerce; and
                          (ii) the movement of hazardous liquid 
                        through regulated gathering lines; but
                  (B) does not include moving hazardous liquid 
                through--
                          (i) gathering lines (except regulated 
                        gathering lines) in a rural area;
                          (ii) onshore production, refining, or 
                        manufacturing facilities; or
                          (iii) storage or in-plant piping 
                        systems associated with onshore 
                        production, refining, or manufacturing 
                        [facilities.] facilities;
          (23) ``risk management'' means the systematic 
        application, by the owner or operator of a pipeline 
        facility, of management policies, procedures, finite 
        resources, and practices to the tasks of identifying, 
        analyzing, assessing, reducing, and controlling risk in 
        order to protect employees, the general public, the 
        environment, and pipeline facilities;
          (24) ``risk management plan'' means a management plan 
        utilized by a gas or hazardous liquid pipeline facility 
        owner or operator that encompasses risk management; and
          (25) ``Secretary'' means the Secretary of 
        Transportation.
  (b) Gathering Lines.--
          (1)(A) Not later than October 24, 1994, the Secretary 
        shall [define by regulation] prescribe standards 
        defining the term ``gathering line''.
          (B) In defining ``gathering line'' for gas, the 
        Secretary--
                  (i) shall consider functional and operational 
                characteristics of the lines to be included in 
                the definition; and
                  (ii) is not bound by a classification the 
                Commission establishes under the Natural Gas 
                Act (15 U.S.C. 717 et seq.).
          (2)(A) Not later than October 24, 1995, the 
        [Secretary] Secretary, if appropriate, shall [define by 
        regulation] prescribe standards defining the term 
        ``regulated gathering line''. In defining the term, the 
        Secretary shall consider factors such as location, 
        length of line from the well site, operating pressure, 
        throughput, and the composition of the transported gas 
        or hazardous liquid, as appropriate, in deciding on the 
        types of lines that functionally are gathering but 
        should be regulated under this chapter [49 U.S.C. 60101 
        et seq.] because of specific physical characteristics.
          (B)(i) The Secretary also shall consider diameter 
        when defining ``regulated gathering line'' for 
        hazardous liquid.
          (ii) The definition of ``regulated gathering line'' 
        for hazardous liquid may not include a crude oil 
        gathering line that has a nominal diameter of not more 
        than 6 inches, is operated at low pressure, and is 
        located in a rural area that is not unusually sensitive 
        to environmental damage.

Sec.  60102. General authority

  (a)(1) Minimum safety standards. The Secretary of 
Transportation shall prescribe minimum safety standards for 
pipeline transportation and for pipeline facilities. The 
standards--
          (A) apply to [transporters of gas and hazardous 
        liquid and to] owners and operators of pipeline 
        facilities;
          (B) may apply to the design, installation, 
        inspection, emergency plans and procedures, testing, 
        construction, extension, operation, replacement, and 
        maintenance of pipeline facilities; and
          [(C) shall include a requirement that all individuals 
        responsible for the operation and maintenance of 
        pipeline facilities be tested for qualifications and 
        certified to operate and maintain those facilities.]
          (C) shall include a requirement that all individuals 
        who operate and maintain pipeline facilities shall be 
        qualified to operate and maintain the pipeline 
        facilities.
    [(2) As the Secretary considers appropriate, the operator 
of a pipeline facility may make the certification under 
paragraph (1)(C) of this subsection. Testing and certification 
under paragraph (1)(C) shall address the ability to recognize 
and react appropriately to abnormal operating conditions that 
may indicate a dangerous situation or a condition exceeding 
design limits.]
    (2) The qualifications applicable to an individual who 
operates and maintains a pipeline facility shall address the 
ability to recognize and react appropriately to abnormal 
operating conditions that may indicate a dangerous situation or 
a condition exceeding design limits. The operator of a pipeline 
facility shall ensure that employees who operate and maintain 
the facility are qualified to operate and maintain the pipeline 
facilities.
  [(b) Practicability and Safety Needs Standards.--
  [A standard prescribed under subsection (a) of this section 
shall be practicable and designed to meet the need for gas 
pipeline safety, for safely transporting hazardous liquid, and 
for protecting the environment. Except as provided in section 
60103 of this title, when prescribing the standard the 
Secretary shall consider--
          [(1) relevant available--
                  [(A) gas pipeline safety information; or
                  [(B) hazardous liquid pipeline information;
          [(2) the appropriateness of the standard for the 
        particular type of pipeline transportation or facility;
          [(3) the reasonableness of the standard; and
          [(4) the extent to which the standard will contribute 
        to public safety and the protection of the 
        environment.]
  (b) Practicability and Safety Needs Standards.--
          (1) In general.--A standard prescribed under 
        subsection (a) shall be--
                  (A) practicable; and
                  (B) designed to meet the need for
                          (i) gas pipeline safety, or safely 
                        transporting hazardous liquids, as 
                        appropriate; and
                          (ii) protecting the environment.
          (2) Factors for consideration.--When prescribing any 
        standard under this section or section 60101(b), 60103, 
        60108, 60109, 60110, or 60113, the Secretary shall 
        consider--
                  (A) relevant available--
                          (i) gas pipeline safety information;
                          (ii) hazardous liquid pipeline safety 
                        information; and
                          (iii) environmental information;
                  (B) the appropriateness of the standard for 
                the particular type of pipeline transportation 
                or facility;
                  (C) the reasonableness of the standard;
                  (D) based on a risk assessment, the 
                reasonably identifiable or estimated benefits 
                expected to result from implementation or 
                compliance with the standard;
                  (E) based on a risk assessment, the 
                reasonably identifiable or estimated costs 
                expected to result from implementation or 
                compliance with the standard;
                  (F) comments and information received from 
                the public; and
                  (G) the comments and recommendations of the 
                Technical Pipeline Safety Standards Committee, 
                the Technical Hazardous Liquid Pipeline Safety 
                Standards Committee, or both, as appropriate.
          (3) Risk assessment.--In prescribing a standard 
        referred to in paragraph (2), the Secretary shall--
                  (A) identify the regulatory and nonregulatory 
                options that the Secretary considered in 
                prescribing a proposed standard;
                  (B) identify the costs and benefits 
                associated with the proposed standard;
                  (C) include--
                          (i) an explanation of the reasons for 
                        the selection of the proposed standard 
                        in lieu of the other options 
                        identified; and
                          (ii) with respect to each of those 
                        other options, a brief explanation of 
                        the reasons that the Secretary did not 
                        select the option; and
                  (D) identify technical data or other 
                information upon which the risk assessment 
                information and proposed standard is based.
          (4) Review.--
                  (A) In general.--The Secretary shall--
                          (i) submit risk assessment 
                        information prepared under paragraph 
                        (3) of this subsection to the Technical 
                        Pipeline Safety Standards Committee, 
                        the Technical Hazardous Liquid Pipeline 
                        Safety Standards Committee, or both, as 
                        appropriate; and
                          (ii) make that risk assessment 
                        information available to the general 
                        public.
                  (B) Peer review panels.--The committees 
                referred to in subparagraph (A) shall serve as 
                peer review panels to review risk assessment 
                information prepared under this section. Not 
                later than 90 days after receiving risk 
                assessment information for review pursuant to 
                subparagraph (A), each committee that receives 
                that risk assessment information shall prepare 
                and submit to the Secretary a report that 
                includes--
                          (i) an evaluation of the merit of the 
                        data and methods used; and
                          (ii) any recommended options relating 
                        to that risk assessment information and 
                        the associated standard that the 
                        committee determines to be appropriate.
                  (C) Review by Secretary.--Not later than 90 
                days after receiving a report submitted by a 
                committee under subparagraph (B), the 
                Secretary--
                          (i) shall review the report;
                          (ii) shall provide a written response 
                        to the committee that is the author of 
                        the report concerning all significant 
                        peer review comments and recommended 
                        alternatives contained in the report; 
                        and
                          (iii) may revise the risk assessment 
                        and the proposed standard before 
                        promulgating the final standard.
          (5) Secretarial decisionmaking.--Except where 
        otherwise required by statute, the Secretary shall 
        propose or issue a standard under this Chapter only 
        upon a reasoned determination that the benefits of the 
        intended standard justify its costs.
          (6) Exceptions from application.--The requirements of 
        this subsection do not apply when--
                  (A) the standard is the product of a 
                negotiated rulemaking, or other rulemaking 
                including the adoption of industry standards 
                that receives no significant adverse comment 
                within 60 days of notice in the Federal 
                Register;
                  (B) based on a recommendation (in which 
                three-fourths of the members voting concur) by 
                the Technical Pipeline Safety Standards 
                Committee, the Technical Hazardous Liquid 
                Pipeline Safety Standards Committee, or both, 
                as applicable, the Secretary waives the 
                requirements; or
                  (C) the Secretary finds, pursuant to section 
                553 (b)(3)(B) of title 5, United States Code, 
                that notice and public procedure are not 
                required.
          (7) Report.--Not later than March 31, 2000, the 
        Secretary shall transmit to the Congress a report 
        that--
                  (A) describes the implementation of the risk 
                assessment requirements of this section, 
                including the extent to which those 
                requirements have improved regulatory decision 
                making; and
                  (B) includes any recommendations that the 
                Secretary determines would make the risk 
                assessment process conducted pursuant to the 
                requirements under this chapter a more 
                effective means of assessing the benefits and 
                costs associated with alternative regulatory 
                and nonregulatory options in prescribing 
                standards under the Federal pipeline safety 
                regulatory program under this chapter.
  (c) Public Safety Program Requirements.--
          (1) The Secretary shall include in the standards 
        prescribed under subsection (a) of this section a 
        requirement that an operator of a gas pipeline facility 
        participate in a public safety program that--
                  (A) notifies an operator of proposed 
                demolition, excavation, tunneling, or 
                construction near or affecting the facility;
                  (B) requires an operator to identify a 
                pipeline facility that may be affected by the 
                proposed demolition, excavation, tunneling, or 
                construction, to prevent damaging the facility; 
                and
                  (C) the Secretary decides will protect a 
                facility adequately against a hazard caused by 
                demolition, excavation, tunneling, or 
                construction.
          (2) To the extent a public safety program referred to 
        in paragraph (1) of this subsection is not available, 
        the Secretary shall prescribe standards requiring an 
        operator to take action the Secretary prescribes to 
        provide services comparable to services that would be 
        available under a public safety program.
          (3) The Secretary may include in the standards 
        prescribed under subsection (a) of this section a 
        requirement that an operator of a hazardous liquid 
        pipeline facility participate in a public safety 
        program meeting the requirements of paragraph (1) of 
        this subsection or maintain and carry out a damage 
        prevention program that provides services comparable to 
        services that would be available under a public safety 
        program.
  (d) Facility Operation Information Standards.--The Secretary 
shall prescribe minimum standards requiring an operator of a 
pipeline facility subject to this chapter [49 U.S.C. 60101 et 
seq.] to maintain, to the extent practicable, information 
related to operating the facility as required by the standards 
prescribed under this chapter and, when requested, [to provide 
the information] to make the information available to the 
Secretary and an appropriate State official as determined by 
the Secretary. The information shall include--
          (1) the business name, address, and telephone number, 
        including an operations emergency telephone number, of 
        the operator;
          (2) accurate maps and a supplementary geographic 
        description, including an identification of areas 
        described in regulations prescribed under section 60109 
        of this title, that show the location in the State of--
                  (A) major gas pipeline facilities of the 
                operator, including transmission lines and 
                significant distribution lines; and
                  (B) major hazardous liquid pipeline 
                facilities of the operator;
          (3) a description of--
                  (A) the characteristics of the operator's 
                pipelines in the State; and
                  (B) products transported through the 
                operator's pipelines in the State;
          (4) the manual that governs operating and maintaining 
        pipeline facilities in the State;
          (5) an emergency response plan describing the 
        operator's procedures for responding to and containing 
        releases, including--
                  (A) identifying specific action the operator 
                will take on discovering a release;
                  (B) liaison procedures with State and local 
                authorities for emergency response; and
                  (C) communication and alert procedures for 
                immediately notifying State and local officials 
                at the time of a release; and
          (6) other information the Secretary considers useful 
        to inform a State of the presence of pipeline 
        facilities and operations in the State.
    (e) Pipe Inventory Standards.--The Secretary shall 
prescribe minimum standards requiring an operator of a pipeline 
facility subject to this chapter [49 U.S.C. 60101 et seq.] 
[and, to the extent the Secretary considers necessary, an 
operator of a gathering line that is not a regulated gathering 
line (as defined under section 60101(b)(2) of this title),] to 
maintain for the Secretary, to the extent practicable, an 
inventory with appropriate information about the types of pipe 
used for the transmission of gas or hazardous liquid, as 
appropriate, in the operator's system and additional 
information, including the material's history and the leak 
history of the pipe. The inventory--
          (1) for a gas pipeline facility, shall include an 
        identification of each facility passing through an area 
        described in regulations prescribed under section 60109 
        of this title but shall exclude equipment used with the 
        compression of gas; and
          (2) for a hazardous liquid pipeline facility, shall 
        include an identification of each facility and 
        gathering line passing through an area described in 
        regulations prescribed under section 60109 of this 
        title, whether the facility or gathering line otherwise 
        is subject to this chapter [49 U.S.C. 60101 et seq.], 
        but shall exclude equipment associated only with the 
        pipeline pumps or storage facilities.
    (f) Standards as Accommodating ``Smart Pigs''.--
          [(1) The Secretary shall prescribe minimum safety 
        standards requiring that the design and construction of 
        a new gas pipeline transmission facility or hazardous 
        liquid pipeline facility, and the required replacement 
        of an existing gas pipeline transmission facility, 
        hazardous liquid pipeline facility, or equipment, be 
        carried out, to the extent practicable, in a way that 
        accommodates the passage through the facility of an 
        instrumented internal inspection device (commonly 
        referred to as a ``smart pig''). The Secretary may 
        apply the standard to an existing gas or hazardous 
        liquid transmission facility and require the facility 
        to be changed to allow the facility to be inspected 
        with an instrumented internal inspection device if the 
        basic construction of the facility will accommodate the 
        device.]
          ``(1) Minimum safety standards.--The Secretary shall 
        prescribe minimum safety standards requiring that --
                  ``(A) the design and construction of new 
                natural gas transmission pipeline or hazardous 
                liquid pipeline facilities, and
                  (B) when the replacement of existing natural 
                gas transmission pipeline or hazardous liquid 
                pipeline facilities or equipment is required, 
                the replacement of such existing facilities, be 
                carried out, to the extent practicable, in a 
                manner so as to accommodate the passage through 
                such natural gas transmission pipeline or 
                hazardous liquid pipeline facilities of 
                instrumented internal inspection devices 
                (commonly referred to as ``smart pigs''). The 
                Secretary may extend such standards to require 
                existing natural gas transmission pipeline or 
                hazardous liquid pipeline facilities, whose 
                basic construction would accommodate an 
                instrumented internal inspection device to be 
                modified to permit the inspection of such 
                facilities with instrumented internal 
                inspection devices.
          [(2) Not later than] (2) Periodic inspections._Not 
        later than October 24, 1995, the Secretary shall 
        [prescribe] prescribe, if necessary, additional 
        [regulations] standards requiring the periodic 
        inspection of each pipeline the operator of the 
        pipeline identifies under section 60109 of this title. 
        The [regulations] standards shall include any 
        circumstances under which an inspection shall be 
        conducted with an instrumented internal inspection 
        device and, if the device is not required, use of an 
        inspection method that is at least as effective as 
        using the device in providing for the safety of the 
        pipeline.
    (g) Effective Dates.--A standard prescribed under this 
section and section 60110 of this title is effective on the 
30th day after the Secretary prescribes the standard. However, 
the Secretary for good cause may prescribe a different 
effective date when required because of the time reasonably 
necessary to comply with the standard. The different date must 
be specified in the regulation prescribing the standard.
    (h) Safety Condition Reports.--
          (1) The Secretary shall prescribe regulations 
        requiring each operator of a pipeline facility (except 
        a master meter) to submit to the Secretary a written 
        report on any--
                  (A) condition that is a hazard to life, 
                property, or the environment; and
                  (B) safety-related condition that causes or 
                has caused a significant change or restriction 
                in the operation of a pipeline facility.
          (2) The Secretary must receive the report not later 
        than 5 working days after a representative of a person 
        to which this section applies first establishes that 
        the condition exists. Notice of the condition shall be 
        given concurrently to appropriate State authorities.
    (i) Carbon Dioxide Regulation.--The Secretary shall 
regulate carbon dioxide transported by a hazardous liquid 
pipeline facility. The Secretary shall prescribe [regulations] 
standards related to hazardous liquid to ensure the safe 
transportation of carbon dioxide by such a facility.
    (j) Emergency Flow Restricting Devices.--
          (1) Not later than October 24, 1994, the Secretary 
        shall survey and assess the effectiveness of emergency 
        flow restricting devices (including remotely controlled 
        valves and check valves) and other procedures, systems, 
        and equipment used to detect and locate hazardous 
        liquid pipeline ruptures and minimize product releases 
        from hazardous liquid pipeline facilities.
          (2) Not later than 2 years after the survey and 
        assessment are completed, the Secretary shall prescribe 
        [regulations] standards on the circumstances under 
        which an operator of a hazardous liquid pipeline 
        facility must use an emergency flow restricting device 
        or other procedure, system, or equipment described in 
        paragraph (1) of this subsection on the facility.
    (k) Prohibition Against Low Internal Stress Exception.--The 
Secretary may not provide an exception to this chapter [49 
U.S.C. 60101 et seq.] for a hazardous liquid pipeline facility 
only because the facility operates at low internal stress.
    (l) Updating Standards.--The Secretary shall, to the extent 
appropriate and practicable, update incorporated industry 
standards that have been adopted as part of the Federal 
pipeline safety regulatory program under this chapter.

Sec. 60105. State pipeline safety program certifications

    (a) General Requirements and Submission.--Except as 
provided in this section and sections 60114 and 60121 of this 
title, the Secretary of Transportation may not prescribe or 
enforce safety standards and practices for an intrastate 
pipeline facility or intrastate pipeline transportation to the 
extent that the safety standards and practices are regulated by 
a State authority (including a municipality if the standards 
and practices apply to intrastate gas pipeline transportation) 
that submits to the Secretary annually a certification for the 
facilities and transportation that complies with subsections 
(b) and (c) of this section.
    (b) Contents.--Each certification submitted under 
subsection (a) of this section shall state that the State 
authority--
          (1) has regulatory jurisdiction over the standards 
        and practices to which the certification applies;
          (2) has adopted, by the date of certification, each 
        applicable standard prescribed under this chapter [49 
        U.S.C. 60101 et seq.] or, if a standard under this 
        chapter [49 U.S.C. 60101 et seq.] was prescribed not 
        later than 120 days before certification, is taking 
        steps to adopt that standard;
          (3) is enforcing each adopted standard through ways 
        that include inspections conducted by State employees 
        meeting the qualifications the Secretary prescribes 
        under section 60107(d)(1)(C) of this title;
          (4) is encouraging and promoting programs designed to 
        prevent damage by demolition, excavation, tunneling, or 
        construction activity to the pipeline facilities to 
        which the certification applies;
          (5) may require record maintenance, reporting, and 
        inspection substantially the same as provided under 
        section 60117 of this title;
          (6) may require that plans for inspection and 
        maintenance under section 60108 (a) and (b) of this 
        title be filed for approval; and
          (7) may enforce safety standards of the authority 
        under a law of the State by injunctive relief and civil 
        penalties substantially the same as provided under 
        sections 60120 and 60122(a)(1) and (b)-(f) of this 
        title.
    (c) Reports.--
          (1) Each certification submitted under subsection (a) 
        of this section shall include a report that contains--
                  (A) the name and address of each person to 
                whom the certification applies that is subject 
                to the safety jurisdiction of the State 
                authority;
                  (B) each accident or incident reported during 
                the prior 12 months by that person involving a 
                fatality, personal injury requiring 
                hospitalization, or property damage or loss of 
                more than an amount the Secretary establishes 
                (even if the person sustaining the fatality, 
                personal injury, or property damage or loss is 
                not subject to the safety jurisdiction of the 
                authority), any other accident the authority 
                considers significant, and a summary of the 
                investigation by the authority of the cause and 
                circumstances surrounding the accident or 
                incident;
                  (C) the record maintenance, reporting, and 
                inspection practices conducted by the authority 
                to enforce compliance with safety standards 
                prescribed under this chapter [49 U.S.C. 60101 
                et seq.] to which the certification applies, 
                including the number of inspections of pipeline 
                facilities the authority made during the prior 
                12 months; and
                  (D) any other information the Secretary 
                requires.
          (2) The report included in the first certification 
        submitted under subsection (a) of this section is only 
        required to state information available at the time of 
        certification.
  (d) Application.--A certification in effect under this 
section does not apply to safety standards prescribed under 
this chapter [49 U.S.C. 60101 et seq.] after the date of 
certification. This chapter [49 U.S.C. 60101 et seq.] applies 
to each applicable safety standard prescribed after the date of 
certification until the State authority adopts the standard and 
submits the appropriate certification to the Secretary under 
subsection (a) of this section.
  (e) Monitoring.--The Secretary may monitor a safety program 
established under this section to ensure that the program 
complies with the certification. A State authority shall 
cooperate with the Secretary under this subsection.
  (f) Rejections of Certification.--If after receiving a 
certification the Secretary decides the State authority is not 
enforcing satisfactorily compliance with applicable safety 
standards prescribed under this chapter [49 U.S.C. 60101 et 
seq.], the Secretary may reject the certification, assert 
United States Government jurisdiction, or take other 
appropriate action to achieve adequate enforcement. The 
Secretary shall give the authority notice and an opportunity 
for a hearing before taking final action under this subsection. 
When notice is given, the burden of proof is on the authority 
to demonstrate that it is enforcing satisfactorily compliance 
with the prescribed standards.

Sec. 60106. State pipeline safety agreements

  (a) General Authority.--If the Secretary of Transportation 
does not receive a certification under section 60105 of this 
title, the Secretary may make an agreement with a State 
authority (including a municipality if the agreement applies to 
intrastate gas pipeline transportation) authorizing it to take 
necessary action. Each agreement shall--
          (1) establish an adequate program for record 
        maintenance, reporting, and inspection designed to 
        assist compliance with applicable safety standards 
        prescribed under this chapter [49 U.S.C. 60101 et 
        seq.]; and
          (2) prescribe procedures for approval of plans of 
        inspection and maintenance substantially the same as 
        required under section 60108 (a) and (b) of this title.
  (b) Notification.--Each agreement shall require the State 
authority to notify the Secretary promptly of a violation or 
probable violation of an applicable safety standard discovered 
as a result of action taken in carrying out an agreement under 
this section.
  (c) Monitoring.--The Secretary may monitor a safety program 
established under this section to ensure that the program 
complies with the agreement. A State authority shall cooperate 
with the Secretary under this subsection.
  (d) Ending Agreements.--The Secretary may end an agreement 
made under this section when the Secretary finds that the State 
authority has not complied with any provision of the agreement. 
The Secretary shall give the authority notice and an 
opportunity for a hearing before ending an agreement. The 
finding and decision to end the agreement shall be published in 
the Federal Register and may not become effective for at least 
15 days after the date of publication.

Sec. 60107. State pipeline safety grants

  (a) General Authority.--If a State authority files an 
application not later than September 30 of a calendar year, the 
Secretary of Transportation shall pay not more than 50 percent 
of the cost of the personnel, equipment, and activities the 
authority reasonably requires during the next calendar year--
          (1) to carry out a safety program under a 
        certification under section 60105 of this title or an 
        agreement under section 60106 of this title; or
          (2) to act as an agent of the Secretary on interstate 
        gas pipeline facilities or interstate hazardous liquid 
        pipeline facilities.
  (b) Payments.--After notifying and consulting with a State 
authority, the Secretary may withhold any part of a payment 
when the Secretary decides that the authority is not carrying 
out satisfactorily a safety program or not acting 
satisfactorily as an agent. The Secretary may pay an authority 
under this section only when the authority ensures the 
Secretary that it will provide the remaining costs of a safety 
program and that the total State amount spent for a safety 
program (excluding grants of the United States Government) will 
at least equal the average amount spent--
          (1) for a gas safety program, for the fiscal years 
        that ended June 30, 1967, and June 30, 1968; and
          (2) for a hazardous liquid safety program, for the 
        fiscal years that ended September 30, 1978, and 
        September 30, 1979.
  (c) Apportionment and Method of Payment.--The Secretary shall 
apportion the amount appropriated to carry out this section 
among the States. A payment may be made under this section in 
installments, in advance, or on a reimbursable basis.
  (d) Additional Authority and Considerations.--
          (1) The Secretary may prescribe--
                  (A) the form of, and way of filing, an 
                application under this section;
                  (B) reporting and fiscal procedures the 
                Secretary considers necessary to ensure the 
                proper accounting of money of the Government; 
                and
                  (C) qualifications for a State to meet to 
                receive a payment under this section, including 
                qualifications for State employees who perform 
                inspection activities under section 60105 or 
                60106 of this title.
          (2) The qualifications prescribed under paragraph 
        (1)(C) of this subsection may--
                  (A) consider the experience and training of 
                the employee;
                  (B) order training or other requirements; and
                  (C) provide for approval of qualifications on 
                a conditional basis until specified 
                requirements are met.

Sec. 60108. Inspection and maintenance

  (a) Plans.--
          (1) Each person [transporting gas or hazardous liquid 
        or] owning or operating an intrastate gas pipeline 
        facility or hazardous liquid pipeline facility shall 
        carry out a current written plan (including any 
        changes) for inspection and maintenance of each 
        facility used in the transportation and owned or 
        operated by the person. A copy of the plan shall be 
        kept at any office of the person the Secretary of 
        Transportation considers appropriate. The Secretary 
        also may require a person [transporting gas or 
        hazardous liquid or] owning or operating a pipeline 
        facility subject to this chapter [49 U.S.C. 60101 et 
        seq.] to file a plan for inspection and maintenance for 
        approval.
          (2) If the Secretary or a State authority responsible 
        for enforcing standards prescribed under this chapter 
        [49 U.S.C. 60101 et seq.] decides that a plan required 
        under paragraph (1) of this subsection is inadequate 
        for safe operation, the Secretary or authority shall 
        require the person to revise the plan. Revision may be 
        required only after giving notice and an opportunity 
        for a hearing. A plan required under paragraph (1) must 
        be practicable and designed to meet the need for 
        pipeline safety and must include terms designed to 
        enhance the ability to discover safety-related 
        conditions described in section 60102(h)(1) of this 
        title. In deciding on the adequacy of a plan, the 
        Secretary or authority shall consider--
                  (A) relevant available pipeline safety 
                information;
                  (B) the appropriateness of the plan for the 
                particular kind of pipeline transportation or 
                facility;
                  (C) the reasonableness of the plan; and
                  (D) the extent to which the plan will 
                contribute to public safety and the protection 
                of the environment.
          (3) A plan required under this subsection shall be 
        made available to the Secretary or State authority on 
        request under section 60117 of this title.
  (b) Inspection and Testing.--
          (1) The Secretary shall inspect and require 
        appropriate testing of a pipeline facility subject to 
        this chapter [49 U.S.C. 60101 et seq.] that is not 
        covered by a certification under section 60105 of this 
        title or an agreement under section 60106 of this 
        title. The Secretary shall decide on the frequency and 
        type of inspection and testing under this subsection on 
        a case-by-case basis after considering the following:
                  (A) the location of the pipeline facility.
                  (B) the type, size, age, manufacturer, method 
                of construction, and condition of the pipeline 
                facility.
                  (C) the nature and volume of material 
                transported through the pipeline facility.
                  (D) the pressure at which that material is 
                transported.
                  (E) climatic, geologic, and seismic 
                characteristics (including soil 
                characteristics) and conditions of the area in 
                which the pipeline facility is located.
                  (F) existing and projected population and 
                demographic characteristics of the area in 
                which the pipeline facility is located.
                  (G) for a hazardous liquid pipeline facility, 
                the proximity of the area in which the facility 
                is located to an area that is unusually 
                sensitive to environmental damage.
                  (H) the frequency of leaks.
                  (I) other factors the Secretary decides are 
                relevant to the safety of pipeline facilities.
          (2) To the extent and in amounts provided in advance 
        in an appropriation law, the Secretary shall decide on 
        the frequency of inspection under paragraph (1) of this 
        subsection. However, an inspection must occur at least 
        once every 2 years. [The Secretary may reduce the 
        frequency of an inspection of a master meter system.]
          (3) Testing under this subsection shall use the most 
        appropriate technology practicable.
  (c) Pipeline Facilities Offshore and in [Navigable Waters] 
Other Waters._
          (1) In this subsection--
                  (A) ``abandoned'' means permanently removed 
                from service.
                  (B) ``pipeline facility'' includes an 
                underwater abandoned pipeline facility.
                  (C) if a pipeline facility has no operator, 
                the most recent operator of the facility is 
                deemed to be the operator of the facility.
          (2)(A) Not later than May 16, 1993, on the basis of 
        experience with the inspections under section 
        3(h)(1)(A) of the Natural Gas Pipeline Safety Act of 
        1968 or section 203(l)(1)(A) of the Hazardous Liquid 
        Pipeline Safety Act of 1979, as appropriate, and any 
        other information available to the Secretary, the 
        Secretary shall establish a mandatory, systematic, and, 
        where appropriate, periodic inspection program of--
                  (i) all offshore pipeline facilities; and
                  (ii) any other pipeline facility crossing 
                under, over, or through navigable waters (as 
                defined by the Secretary) if the Secretary 
                decides that the location of the facility in 
                those navigable waters could pose a hazard to 
                navigation or public safety.
          (B) In prescribing [regulations] standards to carry 
        out subparagraph (A) of this paragraph--
                  (i) the Secretary shall identify what is a 
                hazard to navigation with respect to an 
                underwater abandoned pipeline facility; and
                  [(ii) for an underwater pipeline facility 
                abandoned after October 24, 1992, the Secretary 
                shall include requirements that will lessen the 
                potential that the facility will pose a hazard 
                to navigation and shall consider the 
                relationship between water depth and 
                navigational safety and factors relevant to the 
                local marine environment.]
                  (ii) any other pipeline facility crossing 
                under, over, or through waters where a 
                substantial likelihood of commercial navigation 
                exists, if the Secretary decides that the 
                location of the facility in those waters could 
                pose a hazard to navigation or public safety.
          (3)(A) The Secretary shall establish by regulation a 
        program requiring an operator of a pipeline facility 
        described in paragraph (2) of this subsection to report 
        a potential or existing navigational hazard involving 
        that pipeline facility to the Secretary through the 
        appropriate Coast Guard office.
          (B) The operator of a pipeline facility described in 
        paragraph (2) of this subsection that discovers any 
        part of the pipeline facility that is a hazard to 
        navigation shall mark the location of the hazardous 
        part with a Coast-Guard-approved marine buoy or marker 
        and immediately shall notify the Secretary as provided 
        by the Secretary under subparagraph (A) of this 
        paragraph. A marine buoy or marker used under this 
        subparagraph is deemed a pipeline sign or right-of-way 
        marker under section 60123(c) of this title.
          (4)(A) The Secretary shall [require by regulation] 
        establish a standard that each pipeline facility 
        described in paragraph (2) of this subsection that is a 
        hazard to navigation is buried not later than 6 months 
        after the date the condition of the facility is 
        reported to the Secretary. The Secretary may extend 
        that 6-month period for a reasonable period to ensure 
        compliance with this paragraph.
          (B) In prescribing [regulations] standards for 
        subparagraph (A) of this paragraph for an underwater 
        pipeline facility abandoned after October 24, 1992, the 
        Secretary shall include requirements that will lessen 
        the potential that the facility will pose a hazard to 
        navigation and shall consider the relationship between 
        water depth and navigational safety and factors 
        relevant to the local marine environment.
          (5)(A) Not later than October 24, 1994, the Secretary 
        shall establish standards on what is an exposed 
        offshore pipeline facility and what is a hazard to 
        navigation under this subsection.
          (B) Not later than 6 months after the Secretary 
        establishes standards under subparagraph (A) of this 
        paragraph, or October 24, 1995, whichever occurs first, 
        the operator of each offshore pipeline facility not 
        described in section 3(h)(1)(A) of the Natural Gas 
        Pipeline Safety Act of 1968 or section 203(l)(1)(A) of 
        the Hazardous Liquid Pipeline Safety Act of 1979, as 
        appropriate, shall inspect the facility and report to 
        the Secretary on any part of the facility that is 
        exposed or is a hazard to navigation. This subparagraph 
        applies only to a facility that is between the high 
        water mark and the point at which the subsurface is 
        under 15 feet of water, as measured from mean low 
        water. An inspection that occurred after October 3, 
        1989, may be used for compliance with this subparagraph 
        if the inspection conforms to the requirements of this 
        subparagraph.
          (C) The Secretary may extend the time period 
        specified in subparagraph (B) of this paragraph for not 
        more than 6 months if the operator of a facility 
        satisfies the Secretary that the operator has made a 
        good faith effort, with reasonable diligence, but has 
        been unable to comply by the end of that period.
          (6)(A) The operator of a pipeline facility abandoned 
        after October 24, 1992, shall report the abandonment to 
        the Secretary in a way that specifies whether the 
        facility has been abandoned properly according to 
        applicable United States Government and State 
        requirements.
          (B) Not later than October 24, 1995, the operator of 
        a pipeline facility abandoned before October 24, 1992, 
        shall report to the Secretary reasonably available 
        information related to the facility, including 
        information that a third party possesses. The 
        information shall include the location, size, date, and 
        method of abandonment, whether the facility has been 
        abandoned properly under applicable law, and other 
        relevant information the Secretary may require. Not 
        later than April 24, 1994, the Secretary shall specify 
        how the information shall be reported. The Secretary 
        shall ensure that the Government maintains the 
        information in a way accessible to appropriate 
        Government agencies and State authorities.
          (C) The Secretary shall request that a State 
        authority having information on a collision between a 
        vessel and an underwater pipeline facility report the 
        information to the Secretary in a timely way and make a 
        reasonable effort to specify the location, date, and 
        severity of the collision. Chapter 35 of title 44 [44 
        U.S.C. 3501 et seq.] does not apply to this 
        subparagraph.
          (7) The Secretary may not exempt from this chapter 
        [49 U.S.C. 60101 et seq.] an offshore hazardous liquid 
        pipeline facility only because the pipeline facility 
        transfers hazardous liquid in an underwater pipeline 
        between a vessel and an onshore facility.
    (d) Replacing Cast Iron Gas Pipelines.--
          (1) The Secretary shall publish a notice on the 
        availability of industry guidelines, developed by the 
        Gas Piping Technology Committee, for replacing cast 
        iron pipelines. Not later than 2 years after the 
        guidelines become available, the Secretary shall 
        conduct a survey of gas pipeline operators with cast 
        iron pipe in their systems to establish--
                  (A) the extent to which each operator has 
                adopted a plan for the safe management and 
                replacement of cast iron;
                  (B) the elements of the plan, including the 
                anticipated rate of replacement; and
                  (C) the progress that has been made.
          (2) Chapter 35 of title 44 [44 U.S.C. 3501 et seq.] 
        does not apply to the conduct of the survey.
          (3) This subsection does not prevent the Secretary 
        from developing Government guidelines or [regulations] 
        standards for cast iron gas pipelines as the Secretary 
        considers appropriate.

Sec. 60109. High-density population areas and environmentally sensitive 
                    areas

          (a) Identification Requirements.--Not later than 
        October 24, 1994, the Secretary of Transportation shall 
        prescribe [regulations] standards that--
          (1) establish criteria for identifying--
                  (A) by operators of gas pipeline facilities, 
                each gas pipeline facility (except a natural 
                gas distribution line) located in a high-
                density population area; and
                  (B) by operators of hazardous liquid pipeline 
                facilities and gathering lines--
                          (i) each hazardous liquid pipeline 
                        facility, whether otherwise subject to 
                        this chapter [49 U.S.C. 60101 et seq.], 
                        that crosses [a navigable waterway (as 
                        the Secretary defines by regulation)] 
                        waters where a substantial likelihood 
                        of commercial navigation exists or that 
                        is located in an area described in the 
                        criteria as a high-density population 
                        area; and
                          (ii) each hazardous liquid pipeline 
                        facility and gathering line, whether 
                        otherwise subject to this chapter [49 
                        U.S.C. 60101 et seq.], located in an 
                        area that the Secretary, in 
                        consultation with the Administrator of 
                        the Environmental Protection Agency, 
                        describes as unusually sensitive to 
                        environmental damage if there is a 
                        hazardous liquid pipeline accident; and
          (2) provide that the identification be carried out 
        through the inventory required under section 60102(e) 
        of this title.
    [(b) Areas To Be Included As Unusually Sensitive.--When 
describing an area that is unusually sensitive to environmental 
damage if there is a hazardous liquid pipeline accident, the 
Secretary shall consider including--
          [(1) earthquake zones and areas subject to landslides 
        and other substantial ground movements;
          [(2) areas of likely ground water contamination if a 
        hazardous liquid pipeline facility ruptures;
          [(3) freshwater lakes, rivers, and waterways; and
          [(4) river deltas and other areas subject to soil 
        erosion or subsidence from flooding or other water 
        action where a hazardous liquid pipeline facility is 
        likely to become exposed or undermined.]
    (b) Areas To Be Included as Unusually Sensitive.--When 
describing areas that are unusually sensitive to environmental 
damage if there is a hazardous liquid pipeline accident, the 
Secretary shall consider areas where a pipeline rupture would 
likely cause permanent or long-term environmental damage, 
including--
          (1) locations near pipeline rights-of-way that are 
        critical to drinking water, including intake locations 
        for community water systems and critical sole source 
        aquifer protection areas; and
          (2) locations near pipeline rights-of-way that have 
        been identified as critical wetlands, riverine or 
        estuarine systems, national parks, wilderness areas, 
        wildlife preservation areas or refuges, wild and scenic 
        rivers, or critical habitat areas for threatened and 
        endangered species.

Sec. 60110. Excess flow valves

    (a) Application.--This section applies only to--
          (1) a natural gas distribution system installed after 
        the effective date of regulations prescribed under this 
        section; and
          (2) any other natural gas distribution system when 
        repair to the system requires replacing a part to 
        accommodate installing excess flow valves.
    (b) Installation Requirements and Considerations.--Not 
later than April 24, 1994, the Secretary of Transportation 
shall prescribe [regulations] standards on the [circumstances] 
circumstances, if any, under which an operator of a natural gas 
distribution system must install excess flow valves in the 
system. The Secretary shall consider--
          (1) the system design pressure;
          (2) the system operating pressure;
          (3) the types of customers to which the distribution 
        system supplies gas, including hospitals, schools, and 
        commercial enterprises;
          (4) the technical feasibility and cost of 
        [installing] installing, operating, and maintaining the 
        valve;
          (5) the public safety benefits of installing the 
        valve;
          (6) the location of customer meters; and
          (7) other factors the Secretary considers relevant.
          (c) Notification of Availability.--
          (1) Not later than October 24, 1994, the Secretary 
        shall prescribe [regulations] standards requiring an 
        operator of a natural gas distribution system to notify 
        in writing its customers having lines in which excess 
        flow valves are not required by law but can be 
        installed according to the standards prescribed under 
        subsection (e) of this section, of--
                  (A) the availability of excess flow valves 
                for installation in the system;
                  (B) safety benefits to be derived from 
                installation; and
                  (C) costs associated with [installation.] 
                installation, maintenance, and replacement.
          (2) The [regulations] standards shall provide that, 
        except when installation is required under subsection 
        (b) of this section, excess flow valves shall be 
        installed at the request of the customer if the 
        customer will pay all costs associated with 
        installation.
    (d) Report.--If the Secretary decides under subsection (b) 
of this section that there are no circumstances under which an 
operator must install excess flow valves, the Secretary shall 
submit to Congress a report on the reasons for the decision not 
later than 30 days after the decision is made.
  (e) Performance Standards.--Not later than April 24, 1994, 
the Secretary shall develop standards for the performance of 
excess flow valves used to protect lines in a natural gas 
distribution system. The Secretary may adopt industry accepted 
performance standards in order to comply with the requirement 
under the preceding sentence. The standards shall be 
incorporated into regulations the Secretary prescribes under 
this section. All excess flow valves shall be installed 
according to the standards.

Sec. 60113. Customer-owned natural gas service lines

  (a) [Maintenance Information.--]Not later than October 24, 
1993, the Secretary of Transportation shall prescribe 
[regulations] standards requiring an operator of a natural gas 
distribution pipeline that does not maintain customer-owned 
natural gas service lines up to building walls to advise its 
customers of--
          (1) the requirements for maintaining those lines;
          (2) any resources known to the operator that could 
        assist customers in carrying out the maintenance;
          (3) information the operator has on operating and 
        maintaining its lines that could assist customers; and
          (4) the potential hazards of not maintaining the 
        lines.
  [(b) Actions to Promote Safety.--Not later than one year 
after submitting the report required under section 115(b) of 
the Pipeline Safety Act of 1992 (Public Law 102-508, 106 Stat. 
3296), the Secretary, considering the report and in cooperation 
and coordination with appropriate State and local authorities, 
shall take appropriate action to promote the adoption of 
measures to improve the safety of customer-owned natural gas 
service lines.]

Sec. 60114. One-call notification systems

  (a) Minimum Requirements.--The Secretary of Transportation 
shall prescribe regulations providing minimum requirements for 
establishing and operating a one-call notification system for a 
State to adopt that will notify an operator of a pipeline 
facility of activity in the vicinity of the facility that could 
threaten the safety of the facility. The regulations shall 
include the following:
          (1) a requirement that the system apply to all areas 
        of the State containing underground pipeline 
        facilities.
          (2) a requirement that a person intending to engage 
        in an activity the Secretary decides could cause 
        physical damage to an underground facility must contact 
        the appropriate system to establish if there are 
        underground facilities present in the area of the 
        intended activity.
          (3) a requirement that all operators of underground 
        pipeline facilities participate in an appropriate one-
        call notification system.
          (4) qualifications for an operator of a facility, a 
        private contractor, or a State or local authority to 
        operate a system.
          (5) procedures for advertisement and notice of the 
        availability of a system.
          (6) a requirement about the information to be 
        provided by a person contacting the system under clause 
        (2) of this subsection.
          (7) a requirement for the response of the operator of 
        the system and of the facility after they are contacted 
        by an individual under this subsection.
          (8) a requirement that each State decide whether the 
        system will be toll free.
          (9) a requirement for sanctions substantially the 
        same as provided under sections [60120, 60122, and 
        60123] 60120 and 60122 of this title.
  [(b) Grants.--The Secretary may make a grant to a State under 
this section to develop and establish a one-call notification 
system consistent with subsection (a) of this section.]
  [(c)] (b) Marking Facilities.--On notification by an operator 
of a damage prevention program or by a person planning to carry 
out demolition, excavation, tunneling, or construction in the 
vicinity of a pipeline facility, the operator of the facility 
shall mark accurately, in a reasonable and timely way, the 
location of the pipeline facilities in the vicinity of the 
demolition, excavation, tunneling, or construction.
  [(d) Apportionment.--When apportioning the amount 
appropriated to carry out section 60107 of this title among the 
States, the Secretary--
          [(1) shall consider whether a State has adopted or is 
        seeking adoption of a one-call notification system 
        under this section; and
          [(2) shall withhold part of a payment under section 
        60107 of this title when the Secretary decides a State 
        has not adopted, or is not seeking adoption of, a one-
        call notification system.]
  [(e)] (c) Relationship to Other Laws.--This section and 
regulations prescribed under this section do not affect the 
liability established under a law of the United States or a 
State for damage caused by an activity described in subsection 
(a)(2) of this section.

Sec. 60115. Technical safety standards committees

  (a) Organization.--The Technical Pipeline Safety Standards 
Committee and the Technical Hazardous Liquid Pipeline Safety 
Standards Committee are committees in the Department of 
Transportation. The committees referred to in the preceding 
sentence shall serve as peer review committees for carrying out 
this chapter. Peer reviews conducted by the committees shall be 
treated for purposes of all Federal laws relating to risk 
assessment and peer review (including laws that take effect 
after the date of the enactment of the Accountable Pipeline 
Safety Partnership Act of 1996) as meeting any peer review 
requirements of such laws.
  (b) Composition and Appointment.--
          (1) The Technical Pipeline Safety Standards Committee 
        is composed of 15 members appointed by the Secretary of 
        Transportation after consulting with public and private 
        agencies concerned with the technical aspect of 
        transporting gas or operating a gas pipeline facility. 
        Each member must be experienced in the safety 
        regulation of transporting gas and of gas pipeline 
        facilities or technically qualified, by training, 
        experience, or knowledge in at least one field of 
        engineering applicable to transporting gas or operating 
        a gas pipeline facility, to evaluate gas pipeline 
        safety standards or risk management principles.
          (2) The Technical Hazardous Liquid Pipeline Safety 
        Standards Committee is composed of 15 members appointed 
        by the Secretary after consulting with public and 
        private agencies concerned with the technical aspect of 
        transporting hazardous liquid or operating a hazardous 
        liquid pipeline facility. Each member must be 
        experienced in the safety regulation of transporting 
        hazardous liquid and of hazardous liquid pipeline 
        facilities or technically qualified, by training, 
        experience, or knowledge in at least one field of 
        engineering applicable to transporting hazardous liquid 
        or operating a hazardous liquid pipeline facility, to 
        evaluate hazardous liquid pipeline safety standards or 
        risk management principles.
          (3) The members of each committee are appointed as 
        follows:
                  (A) 5 individuals selected from departments, 
                agencies, and instrumentalities of the United 
                States Government and of the States.
                  (B) [4] 5 individuals selected from the 
                natural gas or hazardous liquid industry, as 
                appropriate, after consulting with industry 
                representatives.
                  (C) [6] 5 individuals selected from the 
                general public.
          (4)(A) Two of the individuals selected for each 
        committee under paragraph (3)(A) of this subsection 
        must be State commissioners. The Secretary shall 
        consult with the national organization of State 
        commissions before selecting those 2 individuals.
          (B) At least 3 of the individuals selected for each 
        committee under paragraph (3)(B) of this subsection 
        must be currently in the active operation of natural 
        gas pipelines or hazardous liquid pipeline facilities, 
        as appropriate. At least 1 of the individuals selected 
        for each committee under paragraph (3)(B) shall have 
        education, background, or experience in risk assessment 
        and cost-benefit analysis. The Secretary shall consult 
        with the national organizations representing the owners 
        and operators of pipeline facilities before selecting 
        individuals under paragraph (3)(B).
          (C) Two of the individuals selected for each 
        committee under paragraph (3)(C) of this subsection 
        must have education, background, or experience in 
        environmental protection or public safety. At least 1 
        of the individuals selected for each committee under 
        paragraph (3)(C) shall have education, background, or 
        experience in risk assessment and cost-benefit 
        analysis. At least one individual selected for each 
        committee under paragraph (3)(C) may not have a 
        financial interest in the pipeline, petroleum, or 
        natural gas industries.
  (c) Committee Reports on Proposed Standards.--
          (1) The Secretary shall give to--
                  (A) the Technical Pipeline Safety Standards 
                Committee each standard proposed under this 
                chapter [49 U.S.C. 60101 et seq.] for 
                transporting gas and for gas pipeline 
                facilities including the risk assessment 
                information and other analyses supporting each 
                proposed standard; and
                  (B) the Technical Hazardous Liquid Pipeline 
                Safety Standards Committee each standard 
                proposed under this chapter [49 U.S.C. 60101 et 
                seq.] for transporting hazardous liquid and for 
                hazardous liquid pipeline facilities including 
                the risk assessment information and other 
                analyses supporting each proposed standard.
          (2) Not later than 90 days after receiving the 
        proposed standard and supporting analyses, the 
        appropriate committee shall prepare and submit to the 
        Secretary a report on the technical feasibility, 
        reasonableness, cost-effectiveness, and practicability 
        of the proposed standard and include in the report 
        recommended actions. The Secretary shall publish each 
        report, including any recommended actions and minority 
        views. The report if timely made is part of the 
        proceeding for prescribing the standard. The Secretary 
        is not bound by the conclusions of the committee. 
        However, if the Secretary rejects the conclusions of 
        the committee, the Secretary shall publish the reasons.
          (3) The Secretary may prescribe a standard after the 
        end of the 90-day period.
  (d) Proposed Committee Standards and Policy Development 
Recommendations.--
          (1) The Technical Pipeline Safety Standards Committee 
        may propose to the Secretary a safety standard for 
        transporting gas and for gas pipeline facilities. The 
        Technical Hazardous Liquid Pipeline Safety Standards 
        Committee may propose to the Secretary a safety 
        standard for transporting hazardous liquid and for 
        hazardous liquid pipeline facilities.
          (2) If requested by the Secretary, a committee shall 
        make policy development recommendations to the 
        Secretary.
  (e) Meetings.--Each committee shall meet with the Secretary 
at least [twice] up to 4 times annually. Each committee 
proceeding shall be recorded. The record of the proceeding 
shall be available to the public.
  (f) [Pay and] Expenses.--[The Secretary may establish the pay 
for each member of a committee for each day (including travel 
time) when performing duties of the committee. However, a 
member may not be paid more than the daily equivalent of the 
maximum annual rate of basic pay payable under section 5376 of 
title 5.] A member of a committee under this section is 
entitled to expenses under section 5703 of title 5. A payment 
under this subsection does not make a member an officer or 
employee of the Government. This subsection does not apply to 
members regularly employed by the Government.

Sec. 60116. Public education programs

  Under regulations the Secretary of Transportation prescribes, 
each [person transporting gas] owner or operator of a gas 
pipeline facility shall carry out a program to educate the 
public on the use of a one-call notification system prior to 
excavation, the possible hazards associated with gas [leaks] 
leaks, and the importance of reporting gas odors and leaks to 
the appropriate authority. The Secretary may develop material 
suitable for use in the program.

Sec. 60117. Administrative

  (a) General Authority.--To carry out this chapter [49 U.S.C. 
60101 et seq.], the Secretary of Transportation may conduct 
investigations, make reports, issue subpenas, conduct hearings, 
require the production of records, take depositions, and 
conduct research, testing, development, demonstration, and 
training activities and promotional activities relating to 
prevention of damage to pipeline facilities. The Secretary may 
not charge a tuition-type fee for training State or local 
government personnel in the enforcement of regulations 
prescribed under this chapter [49 U.S.C. 60101 et seq.].
  (b) Records, Reports, and Information.--To enable the 
Secretary to decide whether a person [transporting gas or 
hazardous liquid] owning or operating a pipeline facility is 
complying with this chapter [49 U.S.C. 60101 et seq.] and 
standards prescribed or orders issued under this chapter [49 
U.S.C. 60101 et seq.], the person shall--
          (1) maintain records, make reports, and provide 
        information the Secretary requires; and
          (2) make the records, reports, and information 
        available when the Secretary requests.
The Secretary may require owners and operators of gathering 
lines to provide the Secretary information pertinent to the 
Secretary's ability to make a determination as to whether and 
to what extent to regulate gathering lines.
  (c) Entry and Inspection.--An officer, employee, or agent of 
the Department of Transportation designated by the Secretary, 
on display of proper credentials to the individual in charge, 
may enter premises to inspect the records and property of a 
person at a reasonable time and in a reasonable way to decide 
whether a person is complying with this chapter [49 U.S.C. 
60101 et seq.] and standards prescribed or orders issued under 
this chapter [49 U.S.C. 60101 et seq.].
  (d) Confidentiality of Information.--Information related to a 
confidential matter referred to in section 1905 of title 18 [18 
U.S.C. 1905] that is obtained by the Secretary or an officer, 
employee, or agent in carrying out this section may be 
disclosed only to another officer or employee concerned with 
carrying out this chapter [49 U.S.C. 60101 et seq.] or in a 
proceeding under this chapter [49 U.S.C. 60101 et seq.].
  (e) Use of Accident Reports.--
          (1) Each accident report made by an officer, 
        employee, or agent of the Department may be used in a 
        judicial proceeding resulting from the accident. The 
        officer, employee, or agent may be required to testify 
        in the proceeding about the facts developed in 
        investigating the accident. The report shall be made 
        available to the public in a way that does not identify 
        an individual.
          (2) Each report related to research and demonstration 
        projects and related activities is public information.
  (f) Testing Facilities Involved in Accidents.--The Secretary 
may require testing of a part of a pipeline facility subject to 
this chapter [49 U.S.C. 60101 et seq.] that has been involved 
in or affected by an accident only after--
          (1) notifying the appropriate State official in the 
        State in which the facility is located; and
          (2) attempting to negotiate a mutually acceptable 
        plan for testing with the owner of the facility and, 
        when the Secretary considers appropriate, the National 
        Transportation Safety Board.
  (g) Providing Safety Information.--On request, the Secretary 
shall provide the Federal Energy Regulatory Commission or 
appropriate State authority with information the Secretary has 
on the safety of material, operations, devices, or processes 
related to pipeline transportation or operating a pipeline 
facility.
  (h) Cooperation.--The Secretary may--
          (1) advise, assist, and cooperate with other 
        departments, agencies, and instrumentalities of the 
        United States Government, the States, and public and 
        private agencies and persons in planning and developing 
        safety standards and ways to inspect and test to decide 
        whether those standards have been complied with;
          (2) consult with and make recommendations to other 
        departments, agencies, and instrumentalities of the 
        Government, State and local governments, and public and 
        private agencies and persons to develop and encourage 
        activities, including the enactment of legislation, 
        that will assist in carrying out this chapter [49 
        U.S.C. 60101 et seq.] and improve State and local 
        pipeline safety programs; and
          (3) participate in a proceeding involving safety 
        requirements related to a liquefied natural gas 
        facility before the Commission or a State authority.
  (i) Promoting Coordination.--
          (1) After consulting with appropriate State 
        officials, the Secretary shall establish procedures to 
        promote more effective coordination between 
        departments, agencies, and instrumentalities of the 
        Government and State authorities with regulatory 
        authority over pipeline facilities about responses to a 
        pipeline accident.
          (2) In consultation with the Occupational Safety and 
        Health Administration, the Secretary shall establish 
        procedures to notify the Administration of any pipeline 
        accident in which an excavator that has caused damage 
        to a pipeline may have violated a regulation of the 
        Administration.
  (j) Withholding Information from Congress.--This section does 
not authorize information to be withheld from a committee of 
Congress authorized to have the information.
  (k) Authority for Cooperative Agreements.--To carry out this 
chapter, the Secretary may enter into grants, cooperative 
agreements, and other transactions with any person, agency, or 
instrumentality of the United States, any unit of State or 
local government, any educational institution, or any other 
entity to further the objectives of this chapter. The 
objectives of this chapter include the development, 
improvement, and promotion of one-call damage prevention 
programs, research, risk assessment, and mapping.

Sec. 60118. Compliance and waivers

  (a) General Requirements.--A person [transporting gas or 
hazardous liquid or] owning or operating a pipeline facility 
shall--
          [(1) comply with applicable safety standards 
        prescribed under this chapter [49 U.S.C. 60101 et 
        seq.], except as provided in this section;]
          (1) comply with applicable safety standards 
        prescribed under this chapter, except as provided in 
        this section or in section 60126;
          (2) prepare and carry out a plan for inspection and 
        maintenance required under section 60108(a) and (b) of 
        this title; and
          (3) allow access to or copying of records, make 
        reports and provide information, and allow entry or 
        inspection required under section 60117(a)-(d) of this 
        title.
  [(b) Compliance Orders.--The Secretary of Transportation may 
issue orders directing compliance with this chapter [49 U.S.C. 
60101 et seq.] or a regulation prescribed under this chapter 
[49 U.S.C. 60101 et seq.]. An order shall state clearly the 
action a person must take to comply.]
  (b) Compliance Orders.--The Secretary of Transportation may 
issue orders directing compliance with this chapter, an order 
under section 60126, or a regulation prescribed under this 
chapter. An order shall state clearly the action a person must 
take to comply.
  (c) Waivers by Secretary.--On application of a person 
[transporting gas or hazardous liquid] owning or operating a 
pipeline facility, the Secretary by order may waive compliance 
with any part of an applicable standard prescribed under this 
chapter [49 U.S.C. 60101 et seq.] on terms the Secretary 
considers appropriate, if the waiver is not inconsistent with 
pipeline safety. The Secretary shall state the reasons for 
granting a waiver under this subsection. The Secretary may act 
on a waiver only after notice and an opportunity for a hearing.
  (d) Waivers by State Authorities.--If a certification under 
section 60105 of this title or an agreement under section 60106 
of this title is in effect, the State authority may waive 
compliance with a safety standard to which the certification or 
agreement applies in the same way and to the same extent the 
Secretary may waive compliance under subsection (c) of this 
section. However, the authority must give the Secretary written 
notice of the waiver at least 60 days before its effective 
date. If the Secretary makes a written objection before the 
effective date of the waiver, the waiver is stayed. After 
notifying the authority of the objection, the Secretary shall 
provide a prompt opportunity for a hearing. The Secretary shall 
make the final decision on granting the waiver.

Sec. 60123. Criminal penalties

  (a) General Penalty.--A person knowingly and willfully 
violating section [60114(c) or 60118(a)] 60114(c), 60118(a), or 
60128 of this title or a regulation prescribed or order issued 
under this chapter [49 U.S.C. 60101 et seq.] shall be fined 
under title 18, imprisoned for not more than 5 years, or both.
  (b) Penalty for Damaging or Destroying Facility.--A person 
knowingly and willfully damaging or destroying, or attempting 
to damage or destroy, an interstate gas pipeline facility or 
interstate hazardous liquid pipeline facility shall be fined 
under title 18, imprisoned for not more than 15 years, or both.
  (c) Penalty for Damaging or Destroying Sign.--A person 
knowingly and willfully defacing, damaging, removing, or 
destroying a pipeline sign or right-of-way marker required by a 
law or regulation of the United States shall be fined under 
title 18, imprisoned for not more than one year, or both.
  (d) Penalty for Not Using One-call Notification System or Not 
Heeding Location Information or Markings.--A person shall be 
fined under title 18, imprisoned for not more than 5 years, or 
both, if the person knowingly and willfully--
          (1) engages in an excavation activity--
                  (A) without first using an available one-call 
                notification system to establish the location 
                of underground facilities in the excavation 
                area; or
                  (B) without paying attention to appropriate 
                location information or markings the operator 
                of a pipeline facility establishes; and
          (2) subsequently damages--
                  (A) a pipeline facility that results in 
                death, serious bodily harm, or actual damage to 
                property of more than $50,000; [or]
                  (B) a pipeline facility that does not report 
                the damage promptly to the operator of the 
                pipeline facility and to other appropriate 
                authorities; or
                  [(B)] (C) a hazardous liquid pipeline 
                facility that results in the release of more 
                than 50 barrels of product.

Sec. 60124. [Annual] Biennial reports

  (a) Submission and Contents.--[The Secretary of 
Transportation shall submit to Congress not later than August 
15 of each odd-numbered year a report on carrying out this 
chapter [49 U.S.C. 60101 et seq.] for the prior calendar year 
for gas and a report on carrying out this chapter [49 U.S.C. 
60101 et seq.] for the prior calendar year for hazardous 
liquid.] Not later than August 15, 1997, and every 2 years 
thereafter, the Secretary of Transportation shall submit to 
Congress a report on carrying out this chapter for the 2 
immediately preceding calendar years for gas and a report on 
carrying out this chapter for such period for hazardous liquid. 
Each report shall include the following information about the 
prior year for gas or hazardous liquid, as appropriate:
          (1) a thorough compilation of the leak repairs, 
        accidents, and casualties and a statement of cause when 
        investigated and established by the National 
        Transportation Safety Board.
          (2) a list of applicable pipeline safety standards 
        prescribed under this chapter [49 U.S.C. 60101 et seq.] 
        including identification of standards prescribed during 
        the year.
          (3) a summary of the reasons for each waiver granted 
        under section 60118(c) and (d) of this title.
          (4) an evaluation of the degree of compliance with 
        applicable safety standards, including a list of 
        enforcement actions and compromises of alleged 
        violations by location and company name.
          (5) a summary of outstanding problems in carrying out 
        this chapter [49 U.S.C. 60101 et seq.], in order of 
        priority.
          (6) an analysis and evaluation of--
                  (A) research activities, including their 
                policy implications, completed as a result of 
                the United States Government and private 
                sponsorship; and
                  (B) technological progress in safety 
                achieved.
          (7) a list, with a brief statement of the issues, of 
        completed or pending judicial actions under this 
        chapter [49 U.S.C. 60101 et seq.].
          (8) the extent to which technical information was 
        distributed to the scientific community and consumer-
        oriented information was made available to the public.
          (9) a compilation of certifications filed under 
        section 60105 of this title that were--
                  (A) in effect; or
                  (B) rejected in any part by the Secretary and 
                a summary of the reasons for each rejection.
          (10) a compilation of agreements made under section 
        60106 of this title that were--
                  (A) in effect; or
                  (B) ended in any part by the Secretary and a 
                summary of the reasons for ending each 
                agreement.
          (11) a description of the number and qualifications 
        of State pipeline safety inspectors in each State for 
        which a certification under section 60105 of this title 
        or an agreement under section 60106 of this title is in 
        effect and the number and qualifications of inspectors 
        the Secretary recommends for that State.
          (12) recommendations for legislation the Secretary 
        considers necessary--
                  (A) to promote cooperation among the States 
                in improving--
                          (i) gas pipeline safety; or
                          (ii) hazardous liquid pipeline safety 
                        programs; and
                  (B) to strengthen the national gas pipeline 
                safety program.
  (b) Submission of One Report.--The Secretary may submit one 
report to carry out subsection (a) of this section.

Sec. 60125. Authorization of appropriations

  [(a) Gas.--Not more than the following amounts may be 
appropriated to the Secretary of Transportation to carry out 
this chapter [49 U.S.C. 60101 et seq.] (except sections 60107 
and 60114(b)) related to gas:
          [(1) $6,857,000 for the fiscal year ending September 
        30, 1993.
          [(2) $7,000,000 for the fiscal year ending September 
        30, 1994.
          [(3) $7,500,000 for the fiscal year ending September 
        30, 1995.]
  (a) Gas and Hazardous Liquid.--To carry out this chapter 
(except for sections 60107 and 60114(b)) related to gas and 
hazardous liquid, there are authorized to be appropriated to 
the Department of Transportation--
          (1) $19,448,000 for fiscal year 1996;
          (2) $20,028,000 for fiscal year 1997, of which 
        $14,600,000 is to be derived from user fees for fiscal 
        year 1997 collected under section 60301 of this title;
          (3) $20,729,000 for fiscal year 1998, of which 
        $15,100,000 is to be derived from user fees for fiscal 
        year 1998 collected under section 60301 of this title;
          (4) $21,442,000 for fiscal year 1999, of which 
        $15,700,000 is to be derived from user fees for fiscal 
        year 1999 collected under section 60301 of this 
        title''; and
          (5) $22,194,000 for fiscal year 2000, of which 
        $16,300,000 is to be derived from user fees for fiscal 
        year 2000 collected under section 60301 of this title.
  (b) Hazardous Liquid.--Not more than the following amounts 
may be appropriated to the Secretary to carry out this chapter 
[49 U.S.C. 60101 et seq.] (except sections 60107 and 60114(b)) 
related to hazardous liquid:
          (1) $1,728,500 for the fiscal year ending September 
        30, 1993.
          (2) $1,866,800 for the fiscal year ending September 
        30, 1994.
          (3) $2,000,000 for the fiscal year ending September 
        30, 1995.
  (c) State Grants.--
          (1) Not more than the following amounts may be 
        appropriated to the Secretary to carry out section 
        60107 of this title:
                  (A) $7,750,000 for the fiscal year ending 
                September 30, 1993.
                  (B) $9,000,000 for the fiscal year ending 
                September 30, 1994.
                  (C) $10,000,000 for the fiscal year ending 
                September 30, 1995.
                  (D) $12,000,000 for fiscal year 1996.
                  (E) $14,000,000 for fiscal year 1997, of 
                which $12,500,000 is to be derived from user 
                fees for fiscal year 1997 collected under 
                section 60301 of this title.
                  (F) $14,490,000 for fiscal year 1998, of 
                which $12,900,000 is to be derived from user 
                fees for fiscal year 1998 collected under 
                section 60301 of this title.
                  (G) $15,000,000 for fiscal year 1999, of 
                which $13,300,000 is to be derived from user 
                fees for fiscal year 1999 collected under 
                section 60301 of this title.
                  (H) $15,524,000 for fiscal year 2000, of 
                which $13,700,000 is to be derived from user 
                fees for fiscal year 2000 collected under 
                section 60301 of this title.
          (2) At least 5 percent of amounts appropriated to 
        carry out United States Government grants-in-aid 
        programs for a fiscal year are available only to carry 
        out section 60107 of this title related to hazardous 
        liquid.
          (3) Not more than 20 percent of a pipeline safety 
        program grant under section 60107 of this title may be 
        allocated to indirect expenses.
  (d) Grants for One-call Notification Systems.--Not more than 
$-------- may be appropriated to the Secretary for the fiscal 
year ending September 30, 19--, to carry out section 60114(b) 
of this title. Amounts under this subsection remain available 
until expended.
  (e) Crediting Appropriations for Expenditures for Training.--
The Secretary may credit to an appropriation authorized under 
subsection (a) or (b) of this section amounts received from 
sources other than the Government for reimbursement for 
expenses incurred by the Secretary in providing training.
  (f) Availability of Unused Amounts for Grants.--
          (1) The Secretary shall make available for grants to 
        States amounts appropriated for each of the fiscal 
        years that ended September 30, 1986, and 1987, that 
        have not been expended in making grants under section 
        60107 of this title.
          (2) A grant under this subsection is available to a 
        State that after December 31, 1987--
                  (A) undertakes a new responsibility under 
                section 60105 of this title; or
                  (B) implements a one-call damage prevention 
                program established under State law.
          (3) This subsection does not authorize a State to 
        receive more than 50 percent of its allowable pipeline 
        safety costs from a grant under this chapter [49 U.S.C. 
        60101 et seq.].
          (4) A State may receive not more than $75,000 under 
        this subsection.
          (5) Amounts under this subsection remain available 
        until expended.

Sec. 60126. Risk Management

  (a) Risk Management Program Demonstration Projects.--
          (1) In general.--The Secretary shall establish risk 
        management demonstration projects--
                  (A) to demonstrate, through the voluntary 
                participation by owners and operators of gas 
                pipeline facilities and hazardous liquid 
                pipeline facilities, the application of risk 
                management; and
                  (B) to evaluate the application of risk 
                management referred to in subparagraph (A).
          (2) Exemptions.--In carrying out a demonstration 
        project under this subsection, the Secretary, by 
        order--
                  (A) may exempt an owner or operator of the 
                pipeline facility covered under the project 
                (referred to in this subsection as a ``covered 
                pipeline facility''), the applicability of all 
                or a portion of the requirements under this 
                chapter that would otherwise apply to the 
                covered pipeline facility; and
                  (B) shall exempt, for the period of the 
                project, an owner or operator of the covered 
                pipeline facility, the applicability of any new 
                standard that the Secretary promulgates under 
                this chapter during the period of that 
                participation, with respect to the covered 
                facility.
  (b) Requirements.--In carrying out a demonstration project 
under this section, the Secretary shall--
          (1) invite owners and operators of pipeline 
        facilities to submit risk management plans for timely 
        approval by the Secretary;
          (2) require, as a condition of approval, that a risk 
        management plan submitted under this subsection contain 
        measures that are designed to achieve an equivalent or 
        greater overall level of safety than would otherwise be 
        achieved through compliance with the standards 
        contained in this chapter or promulgated by the 
        Secretary under this chapter;
          (3) provide for--
                  (A) collaborative government and industry 
                training;
                  (B) methods to measure the safety performance 
                of risk management plans;
                  (C) the development and application of new 
                technologies;
                  (D) the promotion of community awareness 
                concerning how the overall level of safety will 
                be maintained or enhanced by the demonstration 
                project;
                  (E) the development of models that categorize 
                the risks inherent to each covered pipeline 
                facility, taking into consideration the 
                location, volume, pressure, and material 
                transported or stored by that pipeline 
                facility;
                  (F) the application of risk assessment and 
                risk management methodologies that are suitable 
                to the inherent risks that are determined to 
                exist through the use of models developed under 
                subparagraph (E);
                  (G) the development of project elements that 
                are necessary to ensure that--
                          (i) the owners and operators that 
                        participate in the demonstration 
                        project demonstrate that they are 
                        effectively managing the risks referred 
                        to in subparagraph (E); and
                          (ii) the risk management plans 
                        carried out under the demonstration 
                        project under this subsection can be 
                        audited;
                  (H) a process whereby an owner or operator of 
                a pipeline facility is able to terminate a risk 
                management plan or, with the approval of the 
                Secretary, to amend, modify, or otherwise 
                adjust a risk management plan referred to in 
                paragraph (1) that has been approved by the 
                Secretary pursuant to that paragraph to respond 
                to--
                          (i) changed circumstances; or
                          (ii) a determination by the Secretary 
                        that the owner or operator is not 
                        achieving an overall level of safety 
                        that is at least equivalent to the 
                        level that would otherwise be achieved 
                        through compliance with the standards 
                        contained in this chapter or 
                        promulgated by the Secretary under this 
                        chapter; and
                  (I) such other elements as the Secretary, 
                with the agreement of the owners and operators 
                that participate in the demonstration project 
                under this section, determines to further the 
                purposes of this section; and
          (4) in selecting participants for the demonstration 
        project, take into consideration the past safety and 
        regulatory performance of each applicant who submits a 
        risk management plan pursuant to paragraph (1).
  (c) Emergencies and Revocations.--Nothing in this section 
diminishes or modifies the Secretary's authority under this 
title to act in case of an emergency. The Secretary may revoke 
any exemption granted under this section for substantial 
noncompliance with the terms and conditions of an approved risk 
management plan.
  (d) Participation by State Authority.--In carrying out this 
section, the Secretary may provide for consultation by a State 
that has in effect a certification under section 60105. To the 
extent that a demonstration project comprises an intrastate 
natural gas pipeline or an intrastate hazardous liquid pipeline 
facility, the Secretary may make an agreement with the State 
agency to carry out the duties of the Secretary for approval 
and administration of the project.
  (e) Report.--Not later than March 31, 2000, the Secretary 
shall transmit to the Congress a report on the results of the 
demonstration projects carried out under this section that 
includes--
          (1) an evaluation of each such demonstration project, 
        including an evaluation of the performance of each 
        participant in that project with respect to safety and 
        environmental protection; and
          (2) recommendations concerning whether the 
        applications of risk management demonstrated under the 
        demonstration project should be incorporated into the 
        Federal pipeline safety program under this chapter on a 
        permanent basis.

Sec. 60127. Population encroachment

  (a) Land Use Recommendations.--The Secretary of 
Transportation shall make available to an appropriate official 
of each State, as determined by the Secretary, the land use 
recommendations of the special report numbered 219 of the 
Transportation Research Board, entitled ``Pipelines and Public 
Safety''.
  (b) Evaluation.--The Secretary shall--
          (1) evaluate the recommendations in the report 
        referred to in subsection (a);
          (2) determine to what extent the recommendations are 
        being implemented;
          (3) consider ways to improve the implementation of 
        the recommendations; and
          (4) consider other initiatives to further improve 
        awareness of local planning and zoning entities 
        regarding issues involved with population encroachment 
        in proximity to the rights-of-way of any interstate gas 
        pipeline facility or interstate hazardous liquid 
        pipeline facility.

Sec. 60128. Dumping within pipeline rights-of-way

  (a) Prohibition.--No person shall excavate for the purpose of 
unauthorized disposal within the right-of-way of an interstate 
gas pipeline facility or interstate hazardous liquid pipeline 
facility, or any other limited area in the vicinity of any such 
interstate pipeline facility established by the Secretary of 
Transportation, and dispose solid waste therein.
  (b) Definition.--For purposes of this section, the term 
``solid waste'' has the meaning given that term in section 
1004(27) of the Solid Waste Disposal Act (42 U.S.C. 6903(27)).