|
WASHINGTON, D.C. – Congress this week approved the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 (PIPES Act) originally introduced by Senate Commerce Committee Chairmen Ted Stevens (R-Alaska) and Daniel Inouye (D-Hawaii). Chairmen Stevens and Inouye introduced the PIPES Act on September 27, 2006 along with Senators Lott (R-Miss.) and Lautenberg (D-N.J.). On November 16, 2006, Senator Stevens chaired a hearing in the Commerce Committee regarding reauthorization of the pipeline safety program. The bill was approved by both the House and Senate and will now be sent to the President for his consideration.
“This bill expands on the important strides made in pipeline safety since 2002 by providing for greater oversight, research, cooperation and accountability,” said Chairman Stevens. “The bill requires top executives at pipeline companies to certify the information they provide to regulators is accurate, and that new safety standards are applied to low-stress pipelines. This legislation will ensure America’s pipelines continue to provide our nation with needed energy resources in a safe manner and that activities on Alaska’s North Slope will once again become the gold standard for pipeline operations worldwide.”
“This bill will substantially improve pipeline safety and protect our nation’s critical energy supply,” said Commerce Committee Co-Chairman Daniel K. Inouye, D-Hawaii.
Highlights of the bill include:
Increased Department of Transportation Resources Dedicated to Overseeing Pipeline Safety
The bill provides $6 million for an additional 45 federal inspectors (a 50% increase) during its four year authorization period. Currently PHMSA has 90 inspectors, but the DOT Inspector General has stated that this relatively low staffing level is a matter for concern. This translates to one federal inspector for every 18,000 miles of pipeline nationwide. Overall, the bill is paid for with user fees, not out of the general fund, and will not raise the deficit.
Strengthened Programs to Reduce Construction Related Damage to Pipelines
The bill includes new civil enforcement authority against excavators and pipeline operators responsible for third-party damage incidents and provides grants to states that have damage prevention programs. Construction related damage, such as damage caused by excavation for a highway project, is the greatest cause of pipeline accidents that result in death or injury, with the number of third-party damage incidents up by 49 percent since 1996. Damage from such incidents often impacts the local natural gas pipeline distribution systems that run through the neighborhoods where people live and work.
Applying DOT Safety Standards to the Currently Unregulated Low-Stress Pipelines
The bill requires DOT oversight of all low-stress pipelines – a total of roughly 5,400 miles. In August, the DOT announced a proposed rule to cover low-stress pipelines in unusually sensitive areas. The bill and the proposed rule alike would require pipeline operators to meet new safety regulations, including cleaning and continuous monitoring. However, the DOT proposal would cover about only 1,200 miles of pipelines, leaving low-stress lines not in sensitive areas unregulated.
Increased Accountability of Pipeline Company Officials
The bill requires senior officials at pipeline companies to certify that the information they provide to regulators is accurate.
Enhanced Pipeline Research
The bill also boosts PHMSA’s research and technology development budget for pipeline safety issues, such as corrosion and safety technology, by $10 million over the life of the bill.
A Study of Pipelines Critical to Energy Supply
The bill includes a study of oil pipelines that are critical to the nation’s energy supply in order to determine if there are sufficient safety regulations and capacity in place to ensure safety and consistent supply.
|
Audio Clip | 
Video Clip
