20.1 Preamble

The United States contains approximately 2 million miles of natural gas and hazardous liquid pipelines. The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Office of Pipeline Safety (OPS) is responsible for regulating these pipelines. OPS retains oversight authority unless it grants authority to individual states. Most states have assumed inspection and enforcement oversight responsibility for intrastate gas and liquid pipelines within their borders following certification by OPS. Eleven states are responsible for inspection of interstate lines, but enforcement authority resides with OPS.

OPS authority derives from the Pipeline Inspection, Protection, Enforcement and Safety (PIPES) Act of 2006, the Pipeline Safety Improvement Act of 2002, the 1968 Natural Gas Pipeline Safety Act, and the 1979 Hazardous Liquids Pipeline Safety Act, which were substantially amended in 1992 and 1996. OPS is responsible for establishing and enforcing safety standards for the construction, testing, operation, and maintenance of pipelines. Since 1968, OPS has entered into agreements with various states to participate in the inspection oversight of interstate pipelines, while leaving the enforcement authority to OPS. The 2002 statute codified those arrangements.

20.2 Recommendations

20.2.1 Increasing State Authority. Governors urge Congress to consider amending the relevant statutes to authorize states to establish safety standards for interstate pipelines that do not conflict with but may exceed federal standards. States should also be authorized to enforce violations of federal or state standards.

20.2.2 Congressional Oversight. Governors urge that Congress require OPS to continue strengthening its rules, as appropriate. Further, Congress should continue vigilant monitoring of the adequacy and timeliness of OPS regulatory and enforcement practices to ensure that the agency is protecting public safety. Congress should be cognizant of PHMSA’s existing regulatory and reporting requirements before imposing additional ones.

20.2.3 More Effective Rules. Governors urge that Congress require OPS to strengthen rules, as appropriate, regarding pipeline operation, maintenance, and public reporting of spills and leaks. These should include :

• increasing inspection requirements for low stress liquids and gathering pipeline corrosion;
• requiring interstate pipeline operators to consult with states during pipeline safety inspections and to disclose, upon request, the results of all pipeline inspections to state pipeline authorities;
• requiring OPS to work with local emergency response providers to develop preparedness and response plans regarding interstate pipelines, and providing appropriate funding support to interstate agents and local jurisdictions to implement such plans;
• requiring interstate pipeline operators to plan and drill cooperatively with local emergency response providers; and
• implementation of Section 16 of the PIPES Act, which requires the Secretary of Transportation to certify annual and semiannual pipeline integrity management program performance reports.

20.2.4 Appropriate Funding. Governors urge Congress to fund OPS at a level that will allow an increased allocation for states, working in partnership with the federal agency, to ensure pipeline safety, as well as providing for federal research and development on technologies for damage prevention, leak detection, testing, safe operations, and corrosion inspection and protection.

20.2.5 Intergovernmental Cooperation. The Pipeline Safety Improvement Act of 2002 requires OPS to encourage states, excavators, and pipeline operators to use damage prevention best practices and provides for enforcement of one-call notification programs by a state if the state program meets the statutory requirements. Additionally, the PIPES Act of 2006 requires that any person who damages pipeline facility to report damage to the owner or operator, and if there is escaping gas to call 911, and allows OPS to make grants to states for improvements in the effectiveness of their damage prevention program. Governors urge the federal government to work with states to exchange data on ways to improve their inspections of intrastate pipelines and with local distribution systems to continue to improve the safety of these facilities, especially with respect to excavation damage.

20.2.6 Infrastructure Security. Governors acknowledge the relationship between the Department of Homeland Security (DHS) and the U.S. Department of Transportation (DOT) in matters of infrastructure security, and encourage increased cooperation between the two departments as they work to maintain the industry’s readiness to withstand and respond to natural and man-made disruptions to the nation’s pipeline infrastructure. In particular, Governors urge the completion of the DOT assessment of actions taken to implement the Memorandum of Understanding between DHS and DOT concerning their respective security roles in pipeline safety. Governors urge OPS and the industry to take the necessary measures to protect pipeline infrastructure and ensure the safety of surrounding communities and the environment, and to continue to improve and maintain systems to better facilitate responses to emergency situations. Governors also continue to support the principles outlined in NGA policy EC-5, Homeland Security Policy, and support the use of those principles in the implementation of this provision.

Time limited (effective Annual Meeting 2008–Annual Meeting 2010).
Adopted Winter Meeting 2000; revised Winter Meeting 2002 and Winter Meeting 2004; reaffirmed Winter Meeting 2006; revised Annual Meeting 2006 and Annual Meeting 2008.