HR 6494 Introduced - 2023 PIPES Act

Back in November, Rep Graves (R,MO) introduced HR 6494, the Promoting Innovation in Pipeline Efficiency and Safety (PIPES) Act of 2023. This is the periodic update of the Pipeline and Hazardous Materials Administration’s (PHMSA’s) Pipeline Safety Regulation (PSR). The bill authorizes spending for PSR operations.

Topics of potential interest here include:

• Sec. 5. Regulatory updates.

• Sec. 14. Study on composite materials for pipelines.

• Sec. 21. Penalty for causing a defect in or disrupting operation of pipeline infrastructure.

• Sec. 24. Pipeline safety voluntary information-sharing system.

• Sec. 25. Carbon dioxide pipelines.

• Sec. 29. Disclosure of safety information assessment.

• Sec. 31. Report assessing the costs of pipeline failures.
  Sec. 32. Study on localized emergency alert system for pipeline facilities incidents.

Regulatory Updates

Section 5 of the bill requires DOT to prepare a periodic (monthly) reports to congress on each rulemaking mandated by three recent pieces of legislation that have not yet been finalized. This is a tool for ensuring congressional oversight of the regulatory process. In addition to providing information on PHMSA resource constraints that are impeding the implementation of the congressionally mandated rulemakings, the crafters of this bill are looking for specific information on delays of departmental rulemaking oversight in the Office of the Secretary.

Study Requirements

As is typical with these regulatory oversight bills, there are a number of requirements for formal, outside studies about various safety issues. These studies are designed to inform future regulatory and legislative efforts by providing factual basis for such actions. Studies of interest here in this bill include:

• DOT study on the use of composite pipes for hydrogen pipelines (similar to HR 6510, removed from paywall),

• GAO study of regulatory requirements relating to geohazards, including seismicity, land subsidence, landslides, slope instability, frost heave, soil settlement, erosion, river scour, washouts, floods, unstable soil, water currents, hurricanes, dynamic geologic conditions, tsunamis, tornados, wildfires, floods, ice storms, or other hazards that may cause a pipeline to move or be affected by abnormal external loads,

• National Academies study of the effectiveness of integrity management regulations applicable to natural gas and hazardous liquid pipeline facilities,

• GAO study on existing natural gas pipeline systems utilizing hydrogen-natural gas blending,

• National Academies study of the direct and indirect costs related to the failure or shutdown of a gas, hazardous liquid, or carbon dioxide pipeline facility, and

• GAO study of the need and feasibility of requiring owners and operators of covered facilities to establish and maintain a localized emergency alert system.

Pipeline Disruption Penalties

Section 21 of the bill would add a new subsection (e) Penalty For Causing A Defect In Or Disrupting Operation Of Pipeline Infrastructure, to 49 USC 60123, Criminal Penalties. It would specifically criminalize:

• Causing a defect in a pipe, pump, compressor, or valve in the possession of a pipeline operator to be used in construction of any pipeline facility that would affect the integrity or safe operation of any such facility, or

• Disrupting the operation of any pipeline facility described in subsection (b) by causing or undertaking the unauthorized or unplanned turning or manipulation of a valve.

Interestingly, nothing in this language would specifically include any cyber activities related to the actions described in the bill. I would add a new §60123(e)(1)(C):

(C) Utilizing information technology, as defined in 6 USC 650(14), to effect the causation or disruption described in (A) and (B).

Voluntary Information-Sharing System

Section 24 of the bill would add a new §60144, Voluntary information-sharing system, to 49 USC. It would require DOT to “establish a confidential voluntary information-sharing system (referred to in this section as ‘VIS’) to encourage the sharing of pipeline safety data and information in a non-punitive context in order to improve the safety of gas, carbon dioxide, and hazardous liquid gathering, transmission, and distribution pipelines and facilities, including storage facilities.” This is very similar to HR 6509 (removed from paywall) that was introduced the same day as this bill.

Moving Forward

Graves is the Chair of the House Transportation and Infrastructure Committee to which this bill was assigned for consideration. This bill was crafted by the Committee staff and has bipartisan support, as well as support from industry.

On December 6^th, 2023, the House Transportation and Infrastructure Committee held a markup hearing that included HR 6494. Substitute language was offered and was adopted by a voice vote. The substitute language did not change the listed sections and only made relatively minor changes to the sections discussed above.

Once the Committee’s report on the bill is published, it will be cleared for consideration by the full House. I suspect that the bill will be considered under the suspension of the rules process.