In latest pipeline safety bill, House committee revives bipartisan approach

The Republican and Democratic leaders of the House Transportation and Infrastructure Committee jointly unveiled pipeline safety legislation, breaking with an increasingly partisan approach to reauthorizing federal programs and establishing rulemaking priorities in recent years.

House Bill 6494, the Promoting Innovation in Pipeline Efficiency and Safety (PIPES) Act of 2023, spans 32 sections but includes virtually no new rulemaking mandates for the nation's pipeline safety agency. That marks a shift from recent years, when Congress directed the US Pipeline and Hazardous Materials Safety Administration (PHMSA) to develop numerous rules in response to several catastrophic incidents, creating a persistent rulemaking backlog for the chronically understaffed agency.

The bill's sponsors instead highlighted three overarching themes: advancing the safe transportation of traditional and emerging fuels and technology; re-emphasizing PHMSA's mission to safeguard physical infrastructure and fostering transparency; and collaboration among stakeholders. The legislation balanced traditional Democratic and Republican priorities while skirting hot-button issues and climate-related rulemakings addressed during the last reauthorization cycle, a period of prolonged, sometimes rancorous debate.

"I'm proud of the bipartisan efforts in this bill that will help ensure continued innovation, safety and independence in our nation's energy industry, and that will keep PHMSA focused on its core mission of pipeline safety," Transportation and Infrastructure Committee Chairman Sam Graves (R-Mo.) said in a Nov. 30 press release.

Rep. Troy Nehls (R-Texas), chairman of the committee's Railroads, Pipelines and Hazardous Materials subcommittee, co-sponsored the legislation along with the committee and subcommittee's ranking members, Rep. Rick Larsen (D-Wash.) and Rep. Donald Payne Jr. (D-NJ), respectively.

The bill contained some of the directives included in a more partisan GOP bill introduced by House Energy and Commerce Committee leaders in July.

Interstate Natural Gas Association of America President and CEO Amy Andryszak commended lawmakers for "conducting a bipartisan, consensus driven process with stakeholders that resulted in a strong first draft."

The Pipeline Safety Trust, which represents the American public in regulatory forums, said the bill makes some positive steps, but included minimal direction for PHMSA to develop CO₂ and hydrogen rules, despite strong incentives by Congress to develop these assets. The group was "not impressed by the bill's ability to catalyze meaningful improvements in carbon dioxide and hydrogen safety," Executive Director Bill Caram said in a Dec. 1 post on X, formerly known as Twitter.

Addressing rulemaking backlog

The PIPES Act of 2023 would appropriate a total of $804 million from 2024–2027 to fund PHMSA-administered pipeline safety programs. It authorized PHMSA to spend $123 million from the Oil Spill Liability Trust Fund and appropriated $130 million for the agency's operating expenses over the four-year period.

The bill additionally would set aside $23.8 million to support recruitment and retention efforts outlined in the 2020 pipeline safety bill. It would authorize PHMSA to hire up to 30 additional full-time staff, provided new hires are qualified to "develop and implement pipeline safety policies and regulations" and "fulfill congressional rulemaking mandates." PHMSA's hiring of staff with climate expertise has drawn scrutiny from Republicans.

The legislation would also direct the US Transportation Department, PHMSA's parent agency, to publish status updates for outstanding rulemakings every 30 days.

Lawmakers also set new deadlines for PHMSA to complete overdue rules governing class location changes resulting from population shifts around pipelines, extending safety requirements to idled pipelines and establishing minimum safety standards for CO₂ transportation.

Tackling emerging fuel transport

The bill also would expand the CO₂ pipeline rulemaking parameters, including requiring PHMSA to establish minimum standards for the temporary storage of the gas.

The legislation directed the Transportation Department to study composite pipeline materials for the transportation of hydrogen and hydrogen-natural gas blends. It required the US Government Accountability Office (GAO) to research existing US and overseas gas pipeline systems that are injecting hydrogen to inform a future hydrogen blending rulemaking.

The PIPES Act of 2023 would also establish a working group composed of federal agencies with oversight of LNG facilities. The group would review the agencies' respective jurisdiction in order to "ensure safety regulations are in the public interest" and "reduce or eliminate duplicative oversight of LNG facilities," according to an overview of the legislation.

Lawmakers also directed the GAO to study federal and state requirements relating to geohazards, as well as the potential to create a localized system to provide emergency alerts about pipeline incidents. The sponsors charged the National Academies of Sciences, Engineering and Medicine with studying the effectiveness of integrity management regulations and the direct and indirect costs of pipeline facility failures and shutdowns.

Balancing priorities on punishments

The bill struck a balance between Republican and Democratic priorities regarding pipeline-related punishments.

It would extend existing criminal penalties for damaging or destroying operational pipelines to attacks on pipeline facilities that are under construction, a change sought by Republicans in the past. The penalties would also apply to people who disrupt pipeline operations by turning a valve.

The legislation would also increase the maximum civil penalty for pipeline safety violations by 25% to $2.5 million, traditionally a Democratic priority. It would also give pipeline operators the opportunity to seek a formal hearing after they are notified of a probable violation and enforcement action.

The PIPES Act of 2023 would also establish a system for pipeline operators to share information voluntarily and confidentially. Congress and PHMSA previously laid the groundwork for such a system. The pipeline industry sees the system as a pathway for sharing lessons and discussing operational risks without fear of sanctions.

Lawmakers also directed the Transportation Department to assess how pipeline operators engage with and share safety information with the public and emergency responders. It would give the department authority to issue guidance to improve operators' information sharing.

The bill additionally included several changes to PHMSA processes and authorities. Among those are directions to maintain a list of industry standards that PHMSA considers for adoption, with a requirement for the agency to publicly explain its rationale when it opts against incorporating those standards into regulations. PHMSA would also have to publicly report on the Office of Pipeline Safety's inspection and enforcement priorities for each fiscal year through 2027.

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