SECTION-BY-SECTION SUMMARY
OF THE COMMITTEE ON ENERGY AND COMMERCE
BIPARTISAN AMENDMENT IN THE NATURE OF A SUBSTITUTE
TO H.R. 3609

The "Pipeline Infrastructure Protection to Enhance Security and Safety" Act. The Act amends Title 49 of the U.S. Code.

Improves effectiveness of one-call notification programs by increasing the requirements necessary for states to receive federal one-call grants to address outside force damage incidents resulting from many local governments’ exemption from one-call requirements. Requires the Secretary of Energy ("Secretary") to encourage the adoption and implementation of certain best practices guidelines. Further requires the Secretary to participate in and assist programs sponsored by non-profits specifically established to reduce construction-related damage, including provision of grants to the non-profits not exceeding $500,000 per fiscal year. Authorizes $1 million annually for FY 2003-06 for state one-call grants.

Allows states to enforce one-call notification program requirements if compatible with the federal program requirements. Expands the definition of person required to contact the appropriate system prior to engaging in an activity the Secretary determines could cause physical damage to an underground facility to include government employees or contractors. Makes it easier to assess criminal penalties for failure to use one-call notification or not heeding location information or marking. Makes an individual liable if his activity subsequently damages a pipeline facility and he does not promptly report it if he knows or has reason to know of the damage. Provides for reduced penalties if a violator promptly reports damage.

Provides protection from retaliation by employers to employees provide who provide safety information to authorities. Compromise language between labor and industry based upon both S. 235 and the existing Nuclear Regulatory Commission whistleblower statute (Sec. 211 of the Energy Reorganization Act of 1974).

Amends Section 60117 by adding subsection (l) to allow the Secretary to order a pipeline facility operator to take necessary corrective action if he determines that a facility exhibits a potentially unsafe condition.

Increases per violation cap on civil monetary penalties from $25,000 to $100,000. Increases overall cap from $500,000 to $1 million. Enumerates factors for the Secretary to consider in determining the amount of a civil penalty. Strengthens the Secretary’s authority to declare a pipeline facility hazardous and issue corrective action orders. Clarifies the Attorney General’s authority to seek civil monetary penalties if requested to take action by the Secretary.

Establishes a grant program for local governments and groups of individuals (excluding for-profit entities) for securing technical assistance related to pipeline safety. Funds may not be used to lobby or in direct support of litigation. $1 million annually for FY 2003-2006 from general revenues, with individual grants not to exceed $50,000.

Requires a new study of land use practices and zoning ordinances with respect to pipeline rights of way to limit population encroachment. The Secretary, in conjunction with FERC, must issue a report regarding successful practices, laws, and ordinances within one year of enactment.

Science Committee reported language, except that the Secretary of Energy shall carry out the program in cooperation with the Secretary of Transportation and the Director of the National Institute of Standards and Technology (NIST). Authorizes $10 million for DOE and $5 million annually for DOT and NIST for FY 2003-2006, not to be derived from pipeline safety user fees.

Requires operators to develop and implement a written program to ensure all individuals performing covered tasks are qualified to perform such tasks. Establishes minimum content requirements of operator qualification programs, including worker training where necessary. The Secretary must review and certify written programs and require operators to revise inadequate programs. Establishes a three company pilot program for DOT certification of pipeline employees performing certain tasks and requires the Secretary to report within five years on the pilot.

Requires DOT to promulgate integrity management rule for gas pipelines in high consequence areas within 18 months. Sets minimum requirements for integrity management plans for high consequence areas, including requirement that operators perform baseline inspection of all segments in these areas within 10 years and reinspection no less than every seven years.

This section creates Section 60131 to require pipeline operators to develop and implement a terrorism security program consisting of written procedures to follow including actions to take in the event of a terrorist attack on a pipeline or other U.S. infrastructure facility. The procedures must address communications with military, law enforcement, emergency services, and other appropriate state and local entities. Within one year of enactment, each operator must make its plan available to the Secretary for review and approval. Authorizes the Secretary to provide needed technical assistance to pipeline operators and state and local officials.

Requires each pipeline facility to provide the Secretary within six months of enactment the following information for each line it operates: geospatial data format, or a format that can be readily converted to geospatial data, for mapping; name and address of person with primary operation control ("operator"); and a way for a member of the public to contact the operator for information on the pipeline. Information must be updated to reflect changes. The Secretary may provide this information electronically to emergency responders for pipeline emergencies.

Requires the President, within 30 days of enactment, to establish an interagency committee to develop and ensure implementation of a coordinated environmental review process for pipeline repair permitting. Committee includes DOT and Federal agencies with responsibilities relating to pipeline repair projects, with the Chairman of the Council on Environmental Quality to serve as Chair. Within one year of enactment, agencies comprising the Committee required to enter into a memorandum of understanding (MOU) to provide for coordinated and expedited pipeline repair permit review process with respect to repairs required pursuant to integrity management rules. Each agency directed to incorporate MOU into its rules and regulations no later than 180 days after entering into MOU. Further requires DOT to revise its regulations to permit a pipeline operator to implement alternative mitigation measures, so long as doing so would be compatible with protection of public welfare and environment, the operator is diligently pursuing permits, and the mitigation measures are not incompatible with pipeline safety. Creates Ombudsman at DOT to assist in expediting repairs and resolving disagreements between agencies. DOT to encourage state and local governments to consolidate their permitting processes for pipeline repair projects required pursuant to integrity management rules.

Section 15
Nationwide Toll-Free One-Call Number

Requires DOT and the Federal Communications Commission to develop three digit, toll-free national one-call number and system within one year of enactment.

Requires OPS responses to the National Transportation Safety Board recommendations.

Protection of Public Health, Welfare, and the Environment - Adds language to existing general authority language to clarify that the purpose of this chapter is to protect public health and welfare and the environment from reasonably anticipated threats that could be posed by pipeline transportation and facilities.

Conflicts of Interest - Adds language prohibiting any of the five members of the technical safety standards committees appointed from the general public from having a significant financial interest in the oil or gas industry. Prohibition does not apply to the five members appointed from industry or the five members appointed from government.

Technical corrections to current statute.

Appropriations are authorized in Section 60125(a) excluding amounts for state grants and the newly established pipeline integrity program as $37.9 million ($31.9 million from user fees) for FY 2003, $41.7 million ($35.7 million from user fees) for FY 2004, $47.1 ($41.1 million from user fees) for FY 2005, and $50.0 million ($45.0 million from user fees) for FY 2006. Amounts authorized for state grants include $19.8 million ($14.8 million from user fees) for FY 2003, $21.7 million ($16.7 million from user fees) for FY 2004, $24.6 million ($19.6 million from user fees) for FY 2005, and $26.5 million ($22.5 million from user fees).