On Tuesday, July 22nd, the House Committee on Energy and Commerce’s Subcommittee on Energy met for a hearing, “Strengthening American Energy: A Review of Pipeline Safety Policy,” discussing upcoming reauthorization for the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHSMA).

Witness List

Andrew J. Black, President and Chief Executive Officer, Liquid Energy Pipeline Association
Sarah Miller, President and Chief Executive Officer, GPA Midstream Association
Jim Moriarty, Executive Vice President, General Counsel and Chief Policy and Risk Officer, Chesapeake Utilities Corporation
Bill Caram, Executive Director, Pipeline Safety Trust

The hearing followed February’s House Transportation and Infrastructure Committee’s Subcommittee on Railroads, Pipelines, and Hazardous Materials hearing on “Promoting and Improving Safety and Efficient Pipeline Infrastructure.” This is important, as the two committees share jurisdiction over pipelines and have to work together to get pipeline safety legislation through the House.

During this week’s hearing there was bipartisan consensus on the importance of maintaining and upgrading the nation’s pipeline infrastructure, especially in the context of projected increases in energy demands. Members described pipelines as one of the cleanest and safest ways to transport energy but also discussed the need for increased safety assurances through reauthorization and completion of implementation of the 2020 Protecting Our Infrastructure of Pipelines and Enhancing Safety (PIPES) Act.

When discussing reauthorization priorities, witnesses spoke in support of reform of the PHSMA special permit program, strengthening penalties for pipeline attacks, fulfilling the congressional mandate for a safety program for idle pipelines, a reauthorization of the technology demonstration pilot program with less extraneous conditions, authorization of a voluntary information sharing program on safety and security, authorization of risk-based inspections of in-service breakout tanks, elimination of duplicative oversight of in-plant piping, more specific regulations for gathering pipelines, use of performance-based safety goals, modernized regulations for carbon dioxide and hydrogen blended pipelines, requirements for natural gas alarms and methane detectors, and addressing excavation safety risks.

Democratic members were critical of the Trump Administration for a reduction in enforcement actions and a loss of PHSMA staff members, but Republicans pushed back saying enforcement numbers had gone back up in the past month. Some of the witnesses also spoke in the new Administration’s actions to increase transparency around enforcement actions and safety regulations. The hearing occurred on the same day PHSMA released a memo setting its new inspection and enforcement priorities. While witnesses had mixed viewpoints on the new Administration, there was agreement on the importance of PHSMA having the resources to serve as an effective enforcer of pipeline safety.

Enforcement and Oversight

Rep. Troy Balderson (R-OH) highlighted efforts in the PIPES Act to have strong enforcements against those who damage pipelines and emphasized the importance of worker safety during these attacks. Chairman Robert Latta (R-OH) asked about the state of enforcement against those who damage pipelines, and Black said that there is currently a loophole for those who caused delayed damage to pipelines and a need to address issues such as value turning, torching, and shooting pipelines.

Rep. Julie Fedorchak (R-ND) said that PHSMA does not operate an effective state training program for inspectors. She suggested PHSMA provide remote training options to get inspectors to hit the ground sooner which Black and Caram agreed with.

Ranking Member Kathy Castor (D-FL) raised concerns that staff reductions at PHSMA such as the shrinkage of the Community Liaison Department from 13 to 3 people will harm pipeline safety. Caram said that while he does not yet know the full extent or the impact of the retirements and reductions in force, much of PHSMA leadership staff tied to standards and rulemaking have retired and a more limited workforce must now ensure pipeline safety across the country. Caram said PHSMA is already under resourced so continued cuts will impact its ability to be an effective safety regulator. He also raised concerns that PHSMA has not updated its chart on implementation of rules since January. In her opening statement Ranking Member Kathy Castor (D-FL) also criticized the Trump Administration for pausing grants to modernize pipes earlier in the year.

Rep. Diana DeGette (D-CO) and Rep. Kevin Mullin (D-GA) raised concerns about the number of violation reviews falling since the start of the Trump Administration. Rep. August Pfluger (R-TX), Rep. Russell Fry (R-SC), and Black pushed back on this, saying that since the PHSMA Office of Chief Counsel released memos on how it planned to act as an enforcer, enforcement numbers have been similar to those in the past. Both Black and Rep. Gabe Evans (R-CO) said they were happy to see PHSMA make these revisions to improve transparency around its administrative enforcement program as this was an element of the 2020 PIPES Act.

Priorities for Reauthorization

In his opening statement, Chairman Robert Latta (R-OH) emphasized the importance of placing safety as the top priority in reauthorization and criticized the Biden Administration for non-safety focus areas when regulating pipelines. Full Committee Chairman Brett Guthrie (R-KY) asked about the impact of PHSMA focusing on issues outside of safety. Miller said operators will follow PHSMA rules even when they include non-safety measures, but these measures divert resources away from safety and spoke in support of Congress reaffirming PHSMA’s focus on safety. Chairman Robert Latta (R-OH) said reauthorization would need to include measures from the PIPES Act that did not move forward under the previous administration along with supporting new opportunities for safety improvements through advanced technologies.

Ranking Member of the Full Committee Frank Pallone (D-NJ) raised concerns about the claw back of the finalized Leak Detection Rule by the Trump Administration. Caram said the rule which was already years overdue and would have established standards for equipment repair timelines for pipelines that continue to have leaks. When Rep. Diana Harshbarger (R-TN) asked if the previous leak detection rule was implementable, Miller said she did not think this rulemaking met the standard aligned with the PIPES Act and spoke in support of its rewriting.

Rep. Frank Pallone (D-NJ) asked how PHSMA safety rules being subject to duplicative cost-benefit analysis harms public safety. Caram said PHSMA is the only agency with this duplicative requirement which makes it difficult to create regulations on low frequency but high consequence failures. Rep. Diana Harshbarger (R-TN) pushed back saying some PHSMA regulations have not been cost effective, and Miller spoke in support of cost-benefit analysis in the regulatory process.

In his opening statement, Chair of the Full Committee Rep. Brett Guthrie (R-KY) said over the last 20 years, serious pipeline incidents have been reduced by 34%, but Mr. Caram said the past decade did not see significant progress in safety. Rep. Randy Weber (R-TX) highlighted a 2018 report by PHSMA finding pipelines to be 13 times as safe as trains and trucks but also cited that around 18 people are killed annually due to pipelines. He asked how Congress can ensure PHSMA modernizes regulations to align with industry innovations to promote safety. Black suggested permanently reforming the Special Permit Program, reauthorizing the technology safety pilot program without bureaucratic issues, and having a R&D fund to move to zero safety incidents. Miller spoke in support of risk-based regulations to achieve desired results. Caram spoke in support of more pipeline operators using pipeline safety management systems.

Rep. Rick Allen (R-GA) asked about steps to reform the special permit program. Black and Miller said the one-sized fits all regulations need to be reformed, unrelated conditions must be removed, performance-based measures should be used, and decision deadlines should be more clear.

Democratic members including Rep. Frank Pallone (D-NJ) emphasized that the reauthorization bill must be focused on increasing pipeline safety and should not include partisan provisions related to pipeline siting. Rep. Robert Mendez (D-NJ) and Rep. Jake Auchincloss (D-MA) criticized efforts last year by the Committee’s Republicans to push forward a reauthorization bill with partisan measures and 18% budget cuts. They instead spoke in support of the House T&I committee’s bill from the previous year. Caram said that any reauthorization bill with less than a 20% increase in funding from the 2020 would be a cut in funding due to inflation. Rep. Paul Tonko (D-NY) asked about the potential impact of federal cuts on states, and Mr. Caram said states inspection programs need funding but currently are able to get up to 80% of their pipeline safety programs covered by federal grants.

Rep. Troy Balderson (R-OH) raised concerns about duplicative in-plant piping requirements between PHSMA and the Occupational Safety and Health Administration (OSHA) and said PHSMA is taking action through proposed rulemaking to remove this duplication. Miller said the industry would like to have legislative certainty removing this duplication as there are inconsistencies between the two regulatory agencies, creating confusion for both inspectors and operators and a loss of resources.

Rep. August Pfluger (R-TX) inquired about the differences regulators must consider between different types of pipes and risk areas. Miller spoke in support of using risk-based assessments of safety concerns and said that pipelines such gathering vs interstate have elements that create diverging safety concerns. Rep. Russell Fry (R-SC) raised concerns about class location regulations not being updating in 50 years despite changes to populations surrounding pipelines. Rep. August Pfluger (R-TX) asked if frequent Gas Pipeline Advisory Committee (GPAC) meetings are helpful, and Ms. Miller agreed, saying the meetings are important to help PHSMA create implementable policy.

Rep. Jake Auchincloss (D-MA) asked about measures to include in reauthorization to avoid third party excavation damages. Caram cited the Common Ground Alliance’s best practices for states as a baseline for damage prevention, and Black spoke in support of provisions in last year’s proposed T&I legislation.

When asked by Rep. Marc Veasey (D-TX) what measures should be included in reauthorization to increase safety, Caram spoke in support of requirements for home methane detectors and second fire shut off valves.

Rep. Mariannette Miller-Meeks (R-IA) raised concerns that the safety program for idle pipelines in the PIPES has yet to be implemented, and Moriarty said idle pipelines both waste capacity and increase safety risks. In his opening statement, Chair of the Full Committee Rep. Brett Guthrie (R-KY) emphasized the importance of having enough capacity in the system in order to take pipelines offline for repairs.

Alexandria Ocasio-Cortez (D-NY) raised concerns about limitations on imposing safety regulations on existing pipelines. Caram said the Pipeline Safety Act has a provision saying initial testing, design, and construction regulations cannot apply to existing pipelines, disabling PHSMA from enforcing certain regulatory changes recommended by the National Transportation Safety Board (NTSB) such as rupture mitigation valves on about half of the U.S.’ pipelines.

In his opening statement, Moriarty spoke in support of establishing a five year reauthorization period to give PHSMA and the industry adequate time to complete and access improvements.

New Technology

Chairman Robert Latta (R-OH) inquired about what deterred participation in the Department of Energy’s Technology Demonstration Pilot Program, a program required in the PIPES Act. Black spoke in support of the program’s intention to provide opportunities for demonstration of new technologies to enhance pipeline safety but said that DOE’s unprecedented requirement for NEPA review and a special permit process limited the program’s potential.

Full Committee Chairman Brett Guthrie (R-KY) asked how pipeline operators can use AI and other technologies like smart pegs to improve safety in operations. Black explained that a smart peg is a pipeline inspection mechanism that travels with liquids through the pipeline to gather information. Black and Miller said AI can be used to process large quantities of data from valves, sensors, and pumps to identify issues and solve challenges. Black suggested Congress reauthorize the Pipelines Safety Technology Demonstration Program to enable operators to test these technologies and work with PHSMA to enhance safety regulations.

Rep. Gary Palmer (R-AL) raised concerns about cyber attacks on pipelines, citing the 2021 ransomware attack on the Colonial pipeline. Caram and Black emphasized the everyday efforts operators take to ensure systems protections. Black said that while operators primarily work with the Cybersecurity and Infrastructure Security Agency (CISA) and the Transportation Security Administration (TSA) on cyber protections, PHSMA can serve in a coordinating. Rep. Laurel Lee (R-FL) asked about the benefits of authorization of a voluntary information sharing program related to cybersecurity for pipeline operators. Black said this will create a confidential space for collaboration between PHSMA and operators to share insights to promote safety.

Rep. Diana Harshbarger (R-TN) inquired about the unique safety concerns of the expansion of hydrogen blending in pipelines. Moriarty said the industry is still studying how much blending of hydrogen can occur without damaging the integrity of interstate infrastructure. Rep. Kim Schrier (D-WA) and Caram spoke in support of a hydrogen blending study in reauthorization. Rep. Marc Veasey (D-TX) asked how Congress can support the next generation of CO2 pipelines, and Caram said there is a glaring need to cover CO2 pipelines with safety regulations that address their unique attributes such as the ability of lethal concentrations of CO2 being able to discretely move great distances following leakage.

Environmental Impacts

Chairman Robert Latta (R-OH) asked how pipelines have a positive impact on the environment. Miller said pipelines are the safest, most affordable, and most reliable way to move energy with fewer emissions than movement through rail or trucking. She also highlighted that natural gas provides affordable, reliable energy at a lower emissions cost than coal or petroleum and explained that it is in the best interest of pipeline companies to avoid leakage.

Ranking Member Kathy Castor (D-FL) highlighted the escalating costs and risks driven by climate change to critical infrastructure, including a new report from the National Transportation Safety Board on the relationship between a 2023 oil spill and hurricane activity. She asked if PHSMA has any regulations related to extreme weather. Caram said PHSMA currently does not have specific regulations on geohazards but that Congress can mandate PHSMA to adopt geohazard regulations based on the available industry best practices.

Rep. Jennifer McClellan (D-VA) raised concerns about corrosion of pipelines, especially in coastal areas, due to climate change. Caram said coding and cathodic protection are the two main defenses against corrosion and said specific regulations on corrosion defenses are needed.

Meeting Energy Needs

Chairman Robert Latta (R-OH) highlighted the anticipated 25% growth in electricity demand in the U.S. in the next five years and the need for more pipelines as 40% of electric generation comes from natural gas. He asked how restraints on pipeline construction harm safety. Moriarty also emphasized that the primary source of safety incidents comes from excavation damage and that strong policies are needed around this. Moriarty also highlighted how states that enable prompt cost recovery for the replacement and relocation of pipelines help to accelerate the upgrading of aging infrastructure.

Full Committee Chairman Brett Guthrie (R-KY) asked what barriers remain in updating pipelines. Moriarty said that while everyone is welcome to raise issues regarding pipeline infrastructure changes, it is important for there to be prompt consideration and issuance of permitting decisions. Miller reflected these sentiments saying that it is important to have a permitting process balancing energy needs, safety, and environmental protection. Caram spoke in support of continuing the pipe replacement program in the IIJA in the next reauthorization.