Pipeline safety legislation moves through House committee

By OGJ editors

WASHINGTON, May 23 -- The House Committee on Transportation and Infrastructure May 22 approved a pipeline safety measure largely endorsed by industry, although more revisions are likely this spring. The House Committee on Energy and Commerce shares jurisdiction with the Transportation committee on the issue and is still drafting its own formal proposal. With the Enron Corp. scandal loosening its grasp over the Energy committee, at least temporarily, Chairman Billy Tauzin (R-La.) and ranking member John Dingell (D-Mich.) are now in discussions over their own bipartisan pipeline safety reform bill, which is expected to include mandatory pipeline inspections.

The version of the bill shepherded through by Transportation Chairman Don Young (R-Alas) includes concessions made to some lawmakers, mostly Democrats, who argued that the bill did not give regulators enough authority to monitor the nation's oil and gas pipelines. His bill, HR 3609, passed by a 55-13 vote.

Industry groups, meanwhile, say they are optimistic that Congress can pass a final bill before they leave for the fall elections later this year."HR 3609 is bipartisan, recognizes the significant differences between pipelines, is performance-oriented, and focuses attention on important new security concerns," the American Gas Association said. "Language in the bill that establishes inspection intervals for transmission pipelines is a tough step, but achievable at the agreed-upon interval period."

The Association of Oil Pipe Lines said, "The American public received a very clear and positive message regarding the safety and security of our nation's vital oil pipeline network - that the US House of Representatives is very committed to passing bipartisan pipeline safety and security legislation."

Young dramatically revised his bill this week following informal discussions with Tauzin and Dingell, which may help facilitate a quicker compromise when the measure is presented to the full House, it is hoped, by this summer, congressional staff said. Lobbyists anticipate pipeline safety language will be part of a larger energy reform package that House and Senate lawmakers are preparing to finalize over the summer. The Senate energy bill includes a pipeline safety provision sponsored by Sen. John McCain (R-Ariz.) that industry says is too restrictive. McCain's language requires pipeline inspections every 5 years.

The latest House bill directs the Department of Transportation to issue a new rule on inspection procedures within 18 months of the measure becoming law. That rule also must ensure there are pipeline inspections of all major natural gas pipelines in densely populated areas within 10 years, with reinspections every 7 years.

The legislation also boosts civil fines on companies that break federal safety laws, calling for $50,000-750,000, vs. today's $25,000-500,000 levels.

Permits and infrastructure
Young's bill also seeks to streamline environmental permits by creating an interagency committee to review permitting requirements for emergency repairs; the measure, however, no longer includes an industry-endorsed plan that gave DOT power to ignore the views of other agencies, most typically the Environmental Protection Agency, that are usually involved in environmental reviews.

Young also agreed to a Democratic proposal requiring pipeline companies to furnish data faster to DOT so the agency can develop a national pipeline mapping system. Companies now must give the information within 30 days of the bill's passage, with periodic updates required. Industry critics said that 10% of hazardous liquid pipelines and 48% of natural gas lines have not been mapped. But there was bipartisan support to let DOT continue to withhold that information from the public if necessary because of enhanced security concerns in the wake of last fall's terrorist attacks in New York City and outside Washington, DC.

HR 3609 also now includes a provision that creates an advisory committee of state and local officials that would help determine pipeline routing. The committee also would like congressional budget-makers to increase government-funded research and development on ways to improve pipeline safety by $20 million.