Last month, Sen Moran (R,KS) introduced S 2979, the PHMSA Voluntary Information Sharing Act. The bill would require DOT to “establish a confidential voluntary information-sharing to encourage the sharing of pipeline safety data and information in order to improve the safety of gas transmission pipelines, gas distribution pipelines, liquefied natural gas facilities, underground natural gas storage facilities, and hazardous liquid pipelines.” The bill would authorize DOT to collect an additional $5,000,000 in user fees under 49 USC 60301 for each of fiscal years 2024 through 2027 to establish, implement, and manage the VIS.
S 2979 is be similar to HR 6509, the Voluntary Information-Sharing System Act, that was introduced in the House by Rep Molinaro (R,NY) in November 2023. No further action was taken on that bill in the House in the 118th Congress. There are changes in language formatting and editorial changes made for clarity. Two significant changes include adding definitions in the new bill, and changing the funding authorization model for the new VIS program.
The bill would add a new §60144, Voluntary information-sharing system, to 49 USC. It would require DOT to establish the VIS program. PHMSA would be required to appoint a Governing Board while providing a Program Manager to oversee the day-to-day operation of the Program. A Third-Party Data Manager shall provide data management and data oversight services for the VIS. Issue Analysis Teams would perform the actual work of aggregating, analyzing and reporting on de-identified pipeline safety data and information accepted by the VIS.
Definitions
Subsection (a) of the new §60144 provides definitions of the six key terms used in that section. None of the new terms in this subsection are technical, and most are defined by reference to sections within the new 49 USC section.
Subsection 2(b) of the bill adds two new definitions to 49 USC 60101: ‘nonpublic information’ and ‘public information’. These definitions are key concepts in defining the information sharing requirements of the VIS.
Subsection 2(e) provides technical corrections to other existing definitions provided in §60101.
Background
In §10 of the PIPES Act of 2016 (PL 114-183, 130 Stat 520), Congress required DOT to establish “a working group to consider the development of a voluntary information-sharing system to encourage collaborative efforts to improve inspection information feedback and information sharing with the purpose of improving gas transmission and hazardous liquid pipeline facility integrity risk analysis.”
In 2019, that Working Group completed their work and published their report: “Voluntary Information-Sharing System Recommendation Report”. The transmittal letter included in the Report notes (pg 6):
“The Report provides three primary recommendations for consideration, accompanied by a set of supporting recommendations. Importantly, the VIS WG determined that, since information sharing is an essential element of an effective pipeline safety program, it is imperative to develop a VIS, and the Report provides a framework for establishing a viable and sustainable pipeline VIS. The VIS WG concluded that a VIS framework aligns well with Pipeline Safety Management System principles and, if established, would be a ground-breaking initiative to advance safety in the pipeline industry.”
Governing Board
Paragraph (d)(4) of the new section would require PHMSA to act as one of the three co-chairs for the Board, as well as appointing eight additional Board Members. Two additional Board members would represent government organizations, three would represent the pipeline industry, and three would represent public safety advocate organizations. The three co-chairs would represent each group.
The Board would have the authority to:
Govern and provide strategic oversight to the VIS,
Develop governance documents, including a Governing Board charter that is made available to the public, and that describes the scope of the authority and objectives of the Board,
Select a Third-Party Data Manager with expertise in data protection, aggregation, and analytics and geographic information systems,
Approve the criteria and procedures governing how the Third-Party Data Manager will receive and accept pipeline safety data and information and who will have the authority to view VIS data,
Establish and appoint members to Issue Analysis Teams that consist of technical and subject matter experts,
Collaborate with Issue Analysis Teams to identify the issues and topics to be analyzed,
Collaborate with Issue Analysis Teams described to specify the type of de-identified pipeline safety data and information that Issue Analysis Teams need in order to analyze the issues identified,
Determine the information to be disseminated,
Determine the reports to be disseminated, and
At least once per year, issue a report to the public on VIS processes, membership of the Governing Board, issues or topics being investigated and analyzed, pipeline safety data and information that the VIS has requested for submission to the VIS, and safety trends identified.
Information Sharing with VIS
Paragraph (i)(1) makes it clear that the information sharing process with VIS is voluntary, noting that:
“The submission of data and information to the VIS by any person shall be voluntary, with no person compelled to participate in, or to submit data or information to any person for inclusion in, the VIS.”
Paragraph (i)(5) outlines the types of information that could be shared with the VIS:
Pipeline integrity risk analysis information,
Lessons learned from accidents and near misses,
Process improvements,
Technology deployment practices,
Information obtained through VIS pipeline safety surveys of pipeline operator employees, and
Pipeline safety data and information which may lead to the identification of pipeline safety risks.
Non-public pipeline safety data and information in the VIS, non-public information accepted by the VIS and which may be analyzed, stored, or managed by the VIS shall be kept confidential by the VIS. This specifically includes being exempt from release under the Freedom of Information Act (5 USC 552). The Board is, however, authorized to disclose “de-identified, non-public information obtained by the VIS or by the Administrator of the Pipeline and Hazardous Materials Safety Administration based on analysis of the de-identified information and any safety findings or recommendations that the Governing Board in the sole discretion of the Board determines to publish or authorizes the Administrator to publish to improve pipeline safety.”
Subsection (l) provides the details about how the information shared with or developed by VIS would be exempted from disclosure in any Federal, State, local, Tribal, or private litigation, or to be used to initiate any enforcement action or civil litigation. It also includes specific limitations on that exemption.
Funding
Subsection (p) provides authorization for funding for the VIS. It would require PHMSA to explore sustainable funding sources for the VIS, including public-private partnerships, and, to the maximum extent practicable, sustainably fund the VIS through the use of those sustainable funding sources. It would, however, authorize PHMSA to collect an additional $5 million per year from user fees collected under 49 USC 60301 to provide support for the VIS.
Moving Forward
Moran, and his sole cosponsor {Sen Duckworth (D,IL)}, are members of the Senate Commerce, Science, and Transportation Committee to which this bill was assigned for consideration. This means that there may be sufficient influence to see the bill considered in Committee. There has been some industry opposition to the general concept of a directed safety information sharing process, particularly near-miss data, but this bill has attempted to address some of those concerns. Still, it is not clear if there has been enough emphasis on the voluntary nature of the information sharing to overcome industry objections. This bill is unlikely to move forward without clear industry support.