The Honorable William J. Clinton
President of the United States
The White House
1600 Pennsylvania Avenue
Washington, DC 20500

Dear President Clinton:

We are writing to urge you to veto S. 1505, a pipeline deregulation bill that would set dangerous legislative precedents on risk assessment, cost benefit analysis, wetlands policy, and other matters relating to pipeline safety and the environment.

This bill, drafted with far more input from industry than from House Democrats, allows pipeline operators to decide for themselves which safety precautions to take and which to ignore, while making it more difficult for federal regulators to promulgate new safety requirements.

As evidenced by mishaps involving the Iroquois pipeline in New York, the Colonial oil pipeline in Virginia, and the Texas Eastern pipeline in New Jersey, an inherent conflict of interest prevents companies from regulating themselves in a manner that adequately protects the public. S. 1505 would essentially permit the pipeline industry to govern itself while at the same time weakening existing substantive protections.

The 1992 Pipeline Safety Act reauthorization required the Department of Transportation (DOT) to issue several new safety and environmental protection regulations. S. 1505 creates "Risk Management Demonstration Programs" that allow pipeline companies to write their own rules. Furthermore, the legislation is designed to maximize industry's ability to challenge safety and environmental standards and minimize public involvement.

Moreover, the bill removes the current statutory requirement that DOT consider the extent to which any new safety standard contributes to safety and environmental protection. This moderate provision is replaced by risk assessment and cost-benefit requirements which go much farther than Executive Order 12866. Rather than using these tools to analyze new proposals, as required by the Executive Order, S. 1505 bars DOT from issuing any safety standard unless it can demonstrate that the benefits justify the costs. As you know, this burden of proof invites litigation and may preclude an agency from ensuring even a minimal safety regime.

These are not the only problems with S. 1505. Current law requires all individuals responsible for operating and maintaining pipelines to be tested and certified to operate and maintain oil and gas pipelines. S. 1505 eliminates these requirements. This bill also deletes a requirement in current law requiring that pipelines be inspected at least once every 2 years.

In addition, the bill undermines a pending DOT rule requiring companies that are replacing old pipe to install pipes that can be inspected by state of the art devices known as "smart pigs". By changing the underlying basis for the DOT rule, pipeline companies could overturn the current regulation in court.

Furthermore, the bill increases industry representation on two peer review committees that would review the risk assessment and cost-benefit processes, while leaving in place weak conflict of interest provisions.

Finally, and perhaps most egregiously, S. 1505 weakens specific environmental safeguards in current law in order to benefit the pipeline industry. The bill undermines wetlands protection and removes the requirement that DOT identify pipelines in earthquake-prone areas like California. It also weakens a mandate for regular inspection of pipelines in environmentally sensitive areas.

Mr. President, enactment of this bill would run counter to everything Congressional Democrats and your Administration have fought for in terms of balanced and effective safety and environmental policy. It repeals safety provisions enacted only four years ago on a bipartisan basis. Millions of Americans living near pipelines depend on DOT to safeguard their homes, businesses, and communities . Although S. 1505 has been billed as model regulatory reform, like so many other industry bills pushed by the Republican Congress it instead would relieve pipelines of fundamental responsibilities which any reasonable business should be willing to assume. There is a right way to reauthorize the Pipeline Safety Act, and we stand ready to work with the Administration and our Congressional colleagues to do just that in the 105th Congress. In the meantime, S. 1505 is bad legislation, and we respectfully recommend that you not allow it to become law.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER
COMMITTEE ON COMMERCE

FRANK PALLONE, JR.
RANKING MEMBER
SUBCOMMITTEE ON ENERGY AND POWER

EDWARD J. MARKEY
MEMBER
SUBCOMMITTEE ON ENERGY AND POWER

HENRY A. WAXMAN
RANKING MEMBER
SUBCOMMITTEE ON HEALTH
AND ENVIRONMENT

GEORGE MILLER
RANKING MEMBER
COMMITTEE ON RESOURCES

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