Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2016
AN ACT
To amend title 49, United States Code, to provide enhanced safety in pipeline transportation, and for other purposes.
Sec. 2 Authorization of appropriations
“(A) $124,500,000 for fiscal year 2016, of which $9,000,000 shall be expended for carrying out such section 12 and $39,385,000 shall be expended for making grants;
“(B) $128,000,000 for fiscal year 2017 of which $9,000,000 shall be expended for carrying out such section 12 and $41,885,000 shall be expended for making grants;
“(C) $131,000,000 for fiscal year 2018, of which $9,000,000 shall be expended for carrying out such section 12 and $44,885,000 shall be expended for making grants; and
“(D) $134,000,000 for fiscal year 2019, of which $9,000,000 shall be expended for carrying out such section 12 and $47,885,000 shall be expended for making grants.”
“(A) $22,123,000 for fiscal year 2016, of which $3,000,000 shall be expended for carrying out such section 12 and $8,067,000 shall be expended for making grants;
“(B) $22,123,000 for fiscal year 2017, of which $3,000,000 shall be expended for carrying out such section 12 and $8,067,000 shall be expended for making grants;
“(C) $23,000,000 for fiscal year 2018, of which $3,000,000 shall be expended for carrying out such section 12 and $8,067,000 shall be expended for making grants; and
“(D) $23,000,000 for fiscal year 2019, of which $3,000,000 shall be expended for carrying out such section 12 and $8,067,000 shall be expended for making grants.”
“(3) Underground Natural Gas Storage Facility Safety Account—To carry out section 60141, there is authorized to be appropriated to the Department of Transportation from fees collected under section 60302 $8,000,000 for each of fiscal years 2017 through 2019.”
“6107. Funding
“Of the amounts made available under section 60125(a)(1), the Secretary shall expend $1,058,000 for each of fiscal years 2016 through 2019 to carry out section 6106.”
Sec. 3 Regulatory updates
Sec. 4 Natural gas integrity management review
Sec. 5 Hazardous liquid integrity management review
Sec. 6 Technical safety standards committees
“(5) Within 90 days of the date of enactment of the PIPES Act of 2016, the Secretary shall fill all vacancies on the Technical Pipeline Safety Standards Committee, the Technical Hazardous Liquid Pipeline Safety Standards Committee, and any other committee established pursuant to this section. After that period, the Secretary shall fill a vacancy on any such committee not later than 60 days after the vacancy occurs.”
Sec. 7 Inspection report information
“(e) In general—After the completion of a Pipeline and Hazardous Materials Safety Administration pipeline safety inspection, the Administrator of such Administration, or the State authority certified under section 60105 of title 49, United States Code, to conduct such inspection, shall—
“(1) within 30 days, conduct a post-inspection briefing with the owner or operator of the gas or hazardous liquid pipeline facility inspected outlining any concerns; and
“(2) within 90 days, to the extent practicable, provide the owner or operator with written preliminary findings of the inspection.”
Sec. 8 Improving damage prevention technology
Sec. 9 Workforce management
Sec. 10 Information-sharing system
Sec. 11 Nationwide integrated pipeline safety regulatory database
Sec. 12 Underground gas storage facilities
“(26) “underground natural gas storage facility” means a gas pipeline facility that stores natural gas in an underground facility, including—
“(A) a depleted hydrocarbon reservoir;
“(B) an aquifer reservoir; or
“(C) a solution-mined salt cavern reservoir.”
“60141. Standards for underground natural gas storage facilities
“(a) Minimum safety standards—Not later than 2 years after the date of enactment of the PIPES Act of 2016, the Secretary, in consultation with the heads of other relevant Federal agencies, shall issue minimum safety standards for underground natural gas storage facilities.
“(b) Considerations—In developing the safety standards required under subsection (a), the Secretary shall, to the extent practicable—
“(1) consider consensus standards for the operation, environmental protection, and integrity management of underground natural gas storage facilities;
“(2) consider the economic impacts of the regulations on individual gas customers;
“(3) ensure that the regulations do not have a significant economic impact on end users; and
“(4) consider the recommendations of the Aliso Canyon natural gas leak task force established under section 31 of the PIPES Act of 2016.
“(c) Federal-State cooperation—The Secretary may authorize a State authority (including a municipality) to participate in the oversight of underground natural gas storage facilities in the same manner as provided in sections 60105 and 60106.
“(d) Rules of construction
“(1) In general—Nothing in this section may be construed to affect any Federal regulation relating to gas pipeline facilities that is in effect on the day before the date of enactment of the PIPES Act of 2016.
“(2) Limitations—Nothing in this section may be construed to authorize the Secretary—
“(A) to prescribe the location of an underground natural gas storage facility; or
“(B) to require the Secretary’s permission to construct a facility referred to in subparagraph (A).
“(e) Preemption—A State authority may adopt additional or more stringent safety standards for intrastate underground natural gas storage facilities if such standards are compatible with the minimum standards prescribed under this section.
“(f) Statutory construction—Nothing in this section shall be construed to affect the Secretary’s authority under this title to regulate the underground storage of gas that is not natural gas.”
“60302. User fees for underground natural gas storage facilities
“(a) In general—A fee shall be imposed on an entity operating an underground natural gas storage facility subject to section 60141. Any such fee imposed shall be collected before the end of the fiscal year to which it applies.
“(b) Means of collection—The Secretary of Transportation shall prescribe procedures to collect fees under this section. The Secretary may use a department, agency, or instrumentality of the United States Government or of a State or local government to collect the fee and may reimburse the department, agency, or instrumentality a reasonable amount for its services.
“(c) Use of fees
“(1) Account—There is established an Underground Natural Gas Storage Facility Safety Account in the Pipeline Safety Fund established in the Treasury of the United States under section 60301.
“(2) Use of fees—A fee collected under this section—
“(A) shall be deposited in the Underground Natural Gas Storage Facility Safety Account; and
“(B) if the fee is related to an underground natural gas storage facility subject to section 60141, the amount of the fee may be used only for an activity related to underground natural gas storage facility safety.
“(3) Limitation—No fee may be collected under this section, except to the extent that the expenditure of such fee to pay the costs of an activity related to underground natural gas storage facility safety for which such fee is imposed is provided in advance in an appropriations Act.”
Sec. 13 Joint inspection and oversight
“(f) Joint inspectors—At the request of a State authority, the Secretary shall allow for a certified State authority under section 60105 to participate in the inspection of an interstate pipeline facility.”
Sec. 14 Safety data sheets
Sec. 15 Hazardous materials identification numbers
Sec. 16 Emergency order authority
“(o) Emergency order authority
“(1) In general—If the Secretary determines that an unsafe condition or practice, or a combination of unsafe conditions and practices, constitutes or is causing an imminent hazard, the Secretary may issue an emergency order described in paragraph (3) imposing emergency restrictions, prohibitions, and safety measures on owners and operators of gas or hazardous liquid pipeline facilities without prior notice or an opportunity for a hearing, but only to the extent necessary to abate the imminent hazard.
“(2) Considerations
“(A) In general—Before issuing an emergency order under paragraph (1), the Secretary shall consider, as appropriate, the following factors:
“(i) The impact of the emergency order on public health and safety.
“(ii) The impact, if any, of the emergency order on the national or regional economy or national security.
“(iii) The impact of the emergency order on the ability of owners and operators of pipeline facilities to maintain reliability and continuity of service to customers.
“(B) Consultation—In considering the factors under subparagraph (A), the Secretary shall consult, as the Secretary determines appropriate, with appropriate Federal agencies, State agencies, and other entities knowledgeable in pipeline safety or operations.
“(3) Written order—An emergency order issued by the Secretary pursuant to paragraph (1) with respect to an imminent hazard shall contain a written description of—
“(A) the violation, condition, or practice that constitutes or is causing the imminent hazard;
“(B) the entities subject to the order;
“(C) the restrictions, prohibitions, or safety measures imposed;
“(D) the standards and procedures for obtaining relief from the order;
“(E) how the order is tailored to abate the imminent hazard and the reasons the authorities under section 60112 and 60117(l) are insufficient to do so; and
“(F) how the considerations were taken into account pursuant to paragraph (2).
“(4) Opportunity for review—Upon receipt of a petition for review from an entity subject to, and aggrieved by, an emergency order issued under this subsection, the Secretary shall provide an opportunity for a review of the order under section 554 of title 5 to determine whether the order should remain in effect, be modified, or be terminated.
“(5) Expiration of effectiveness order—If a petition for review of an emergency order is filed under paragraph (4) and an agency decision with respect to the petition is not issued on or before the last day of the 30-day period beginning on the date on which the petition is filed, the order shall cease to be effective on such day, unless the Secretary determines in writing on or before the last day of such period that the imminent hazard still exists.
“(6) Judicial review of orders
“(A) In general—After completion of the review process described in paragraph (4), or the issuance of a written determination by the Secretary pursuant to paragraph (5), an entity subject to, and aggrieved by, an emergency order issued under this subsection may seek judicial review of the order in a district court of the United States and shall be given expedited consideration.
“(B) Limitation—The filing of a petition for review under subparagraph (A) shall not stay or modify the force and effect of the agency’s final decision under paragraph (4), or the written determination under paragraph (5), unless stayed or modified by the Secretary.
“(7) Regulations
“(A) Temporary regulations—Not later than 60 days after the date of enactment of the PIPES Act of 2016, the Secretary shall issue such temporary regulations as are necessary to carry out this subsection. The temporary regulations shall expire on the date of issuance of the final regulations required under subparagraph (B).
“(B) Final regulations—Not later than 270 days after such date of enactment, the Secretary shall issue such regulations as are necessary to carry out this subsection. Such regulations shall ensure that the review process described in paragraph (4) contains the same procedures as subsections (d) and (g) of section 109.19 of title 49, Code of Federal Regulations, and is otherwise consistent with the review process developed under such section, to the greatest extent practicable and not inconsistent with this section.
“(8) Imminent hazard defined—In this subsection, the term “imminent hazard” means the existence of a condition relating to a gas or hazardous liquid pipeline facility that presents a substantial likelihood that death, serious illness, severe personal injury, or a substantial endangerment to health, property, or the environment may occur before the reasonably foreseeable completion date of a formal proceeding begun to lessen the risk of such death, illness, injury, or endangerment.
“(9) Limitation and savings clause—An emergency order issued under this subsection may not be construed to—
“(A) alter, amend, or limit the Secretary’s obligations under, or the applicability of, section 553 of title 5; or
“(B) provide the authority to amend the Code of Federal Regulations.”
Sec. 17 State grant funds
“(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, except when the Secretary waives this requirement.”
“(e) Repurposing of funds—If a State program’s certification is rejected under section 60105(f) or such program is otherwise suspended or interrupted, the Secretary may use any undistributed, deobligated, or recovered funds authorized under this section to carry out pipeline safety activities for that State within the period of availability for such funds.”
Sec. 18 Response plans
Sec. 19 Unusually sensitive areas
Sec. 20 Pipeline safety technical assistance grants
Sec. 21 Study of materials and corrosion prevention in pipeline transportation
Sec. 22 Research and development
“(C) a summary of each research and development project carried out with Federal and non-Federal entities pursuant to section 12 of the Pipeline Safety Improvement Act of 2002 and a review of how the project affects safety.”
“(C) Funding from non-Federal sources—The Secretary shall ensure that—
“(i) at least 30 percent of the costs of technology research and development activities may be carried out using non-Federal sources;
“(ii) at least 20 percent of the costs of basic research and development with universities may be carried out using non-Federal sources; and
“(iii) up to 100 percent of the costs of research and development for purely governmental purposes may be carried out using Federal funds.”
“(h) Independent experts—Not later than 180 days after the date of enactment of the PIPES Act of 2016, the Secretary shall—
“(1) implement processes and procedures to ensure that activities listed under subsection (c), to the greatest extent practicable, produce results that are peer-reviewed by independent experts and not by persons or entities that have a financial interest in the pipeline, petroleum, or natural gas industries, or that would be directly impacted by the results of the projects; and
“(2) submit to the Committee on Transportation and Infrastructure, the Committee on Energy and Commerce, and the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report describing the processes and procedures implemented under paragraph (1).
“(i) Conflict of interest—The Secretary shall take all practical steps to ensure that each recipient of an agreement under this section discloses in writing to the Secretary any conflict of interest on a research and development project carried out under this section, and includes any such disclosure as part of the final deliverable pursuant to such agreement. The Secretary may not make an award under this section directly to a pipeline owner or operator that is regulated by the Pipeline and Hazardous Materials Safety Administration or a State-certified regulatory authority if there is a conflict of interest relating to such owner or operator.”
Sec. 23 Active and abandoned pipelines
Sec. 24 State pipeline safety agreements
“(4) Notice upon denial—If a State authority requests an interstate agreement under this section and the Secretary denies such request, the Secretary shall provide written notification to the State authority of the denial that includes an explanation of the reasons for such denial.”
Sec. 25 Requirements for certain hazardous liquid pipeline facilities
“(g) Hazardous liquid pipeline facilities
“(1) Integrity assessments—Notwithstanding any pipeline integrity management program or integrity assessment schedule otherwise required by the Secretary, each operator of a pipeline facility to which this subsection applies shall ensure that pipeline integrity assessments—
“(A) using internal inspection technology appropriate for the integrity threat are completed not less often than once every 12 months; and
“(B) using pipeline route surveys, depth of cover surveys, pressure tests, external corrosion direct assessment, or other technology that the operator demonstrates can further the understanding of the condition of the pipeline facility are completed on a schedule based on the risk that the pipeline facility poses to the high consequence area in which the pipeline facility is located.
“(2) Application—This subsection shall apply to any underwater hazardous liquid pipeline facility located in a high consequence area—
“(A) that is not an offshore pipeline facility; and
“(B) any portion of which is located at depths greater than 150 feet under the surface of the water.
“(3) High consequence area defined—For purposes of this subsection, the term high consequence area has the meaning given that term in section 195.450 of title 49, Code of Federal Regulations.
“(4) Inspection and enforcement—The Secretary shall conduct inspections under section 60117(c) to determine whether each operator of a pipeline facility to which this subsection applies is complying with this section.”
Sec. 26 Study on propane gas pipeline facilities
Sec. 27 Standards for certain liquefied natural gas pipeline facilities
“(7) national security.”