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(16) “LNG accident” means any release, burning, or explosion of LNG resulting from

(A) a rupture or other failure of a storage tank, pipeline, or other LNG facility;
(B) natural hazards (including earthquakes, hurricanes, and high winds);
(C) sabotage; or

(D) any other cause;
other than any such release, burning, or explosion which, as determined in accordance with
regulations prescribed by the Secretary, does not pose a threat to public health or safety,
property, or the environment; and

(17) "Interstate or foreign commerce" means any trade, traffic, transportation, exchange, or other commerce

(A) between any State and any place outside of such State, or

(B) which affects any trade, transportation, exchange, or other commerce described in subparagraph (A).

(As amended by P.L. 94-477, 90 Stat. 2073, October 11, 1976; and P.L. 96-129, 93 Stat. 989, November 11, 1979)

Standards Established

Consideration factors.

Ante, p. 989.

Sec. 3.

(a) (1) The Secretary shall, by regulation, establish minimum Federal safety standards for the transportation of gas and pipeline facilities. Such standards may apply to the design, installation, inspection, emergency plans and procedures, testing, construction, extension, operation, replacement, and maintenance of pipeline facilities. Standards affecting the design, installation, construction, initial inspection, and initial testing shall not be applicable to pipeline facilities in existence on the date such standards are adopted. Such Federal safety standards shall be practicable and designed to meet the need for pipeline safety. In prescribing such standards, the Secretary shall consider

(A) relevant available pipeline safety data;

(B) whether such standards are appropriate for the particular type of pipeline transportation or facility;

(C) the reasonableness of any proposed standards; and

(D) the extent to which such standards will contribute to public safety. Any State agency may adopt additional or more stringent safety standards for intrastate pipeline transportation if such standards are compatible with the Federal minimum standards. No State agency may adopt or continue in force any such standards applicable to interstate transmission facilities, after the Federal minimum standards become effective.

(2) Not later than 12 months after the date of the enactment of the Pipeline Safety Act of 1979, the Secretary shall provide that the Federal minimum safety standards established under this section include a requirement that any operator of pipeline facilities

(A) participate in any public safety program

(i) which provides for notice to pipeline facility operators of proposed demolition, excavation, tunneling, or construction near or affecting such facility;

(ii) which requires such operators to identify specific pipeline facilities which may be affected by the proposed demolition, excavation, tunneling, or construction, for the purpose of preventing damage to such facilities; and

(iii) which the Secretary determines is being carried out in a manner adequate to assure protection against the hazards to that operator's pipeline facilities created by such demolition, excavation, tunneling, or construction; or

(B) to the extent that such a program is not available, take such steps as the Secretary shall prescribe to provide services to the public with respect to that operator's pipeline facilities which are comparable to those which would be available to the public

under such a program. (b) Any standards prescribed under this section, and amendments thereto, shall become effective thirty days after the date of issuance of such standards unless the Secretary, for good cause recited, determines an earlier or later effective date is required as a result of the period reasonably necessary for compliance and such date is specified in the regulation establishing or amending such standard.

(c) The provisions of subchapter II of chapter 5 of title 5 of the United States Code shall apply to all actions establishing, amending, revoking, or directing or waiving compliance with, any standard established under this Act. The Secretary shall afford interested persons an opportunity to participate fully in the establishment of such safety standards through submission of written data, views, or arguments with opportunity to present oral testimony and argument.

Effective date.

80 Stat. 381.
5 USC 551-559.

(d) Upon application by any person engaged in the transportation of gas or the operation of Standards, pipeline facilities, the Secretary may, by order, after notice and opportunity for hearing and waiver of under such terms and conditions and to such extent as he deems appropriate, waive in whole or compliance. in part compliance with any standard established under this Act, if he determines that a waiver of compliance with such standard is not inconsistent with gas pipeline safety. The Secretary shall state his reasons for any such waiver. A State agency, with respect to which there is in effect a certification pursuant to section 5(a) or an agreement pursuant to section 5(b), may waive compliance with a safety standard in the same manner and to the same extent as the Secretary, provided such State agency gives the Secretary written notice at least sixty days Notice to State prior to the effective date of the waiver. If, before the effective date of a waiver to be granted by a

agency; State agency, the Secretary objects in writing to the granting of the waiver, any State agency opportunity for action granting the waiver will be stayed. After notifying such State agency of his objection, the hearing. Secretary shall afford such agency a prompt opportunity to present its request for waiver, with opportunity for hearing, and the Secretary shall determine finally whether the requested waiver may be granted. (As amended by P.L. 94-477,90 Stat. 2073 October 11, 1976; and 96-129,93 Stat. 989, November 30, 1979)

Technical Pipeline Safety Standards Committee

Membership

Sec. 4.

(a) The Secretary shall establish a Technical Pipeline Safety Standards Committee. The Committee shall be appointed by the Secretary, after consultation with public and private agencies concerned with the technical aspect of the transportation of gas or the operation of pipeline facilities, and shall be composed of fifteen members each of whom shall be experienced in the safety regulation of the transportation of gas and of pipeline facilities or technically qualified by training, experience, or knowledge in one or more fields of engineering applied in the transportation of gas or the operation of pipeline facilities to evaluate gas pipeline safety standards, as follows:

(1) Five members shall be selected from governmental agencies, including State and Federal Governments, two of whom, after consultation with representatives of the national organization of State commissions, shall be State commissioners;

(2) Four members shall be selected from the natural gas industry after consultation with industry representatives, not less than three of whom shall be currently engaged in the active operation of natural gas pipelines; and

(3) Six members shall be selected from the general public. (b) The Secretary shall submit to the Committee any proposed standard under this Act, or any proposed amendment to a standard under this Act, for its consideration. Within 90 days after receipt by the Committee of any proposed standard or amendment, the Committee shall prepare a report on the technical feasibility, reasonableness, and practicability of such standard or amendment. The Secretary may prescribe a final standard or final amendment to a standard at any time after the 90th day after its submission to the Committee, whether or not the Committee has reported on such standard or amendment. Each report by the Committee, including any minority views, shall be published by the Secretary and, if timely made, form a part of the proceedings for the promulgation of standards. In the event that the Secretary rejects the conclusions of the majority of the Committee, he shall not be bound by such conclusions but shall publish his reasons for rejection thereof. The Committee may propose safety standards for pipeline facilities and the transportation of gas to the Secretary for his consideration. The Committee shall meet with the Secretary (or his designee) not less frequently than once every 6 months. All proceedings of the Committee shall be recorded and the record of each such proceeding shall be available for public inspection.

(c) Members of the Committee other than Federal employees may be compensated at a rate to be fixed by the Secretary not to exceed the daily equivalent of the maximum annual rate of basic pay then currently payable under the General Schedule under section 5332 of title 5, United States Code, for each day (including travel time) when engaged in the actual duties of the Committee. All members, while away from their homes or regular places of business, may be allowed travel expenses, including per diem in lieu of subsistence as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently. Payments under this section shall not render members of the Committee employees or officials of the United States for any purpose.

Report of proposed standards. Report.

Committee proceedings, availability to public.

80 Stat. 499.

(As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

State Certifications and Agreements

Report, contents.

State agency;

Sec. 5.

(a) Except for section 19, and except as otherwise provided in this section, the authority of the Secretary under this Act to prescribe safety standards and enforce compliance with such standards shall not apply to intrastate pipeline transportation when the safety standards and practices applicable to same are regulated by a State agency (including a municipality) which submits to the Secretary an annual certification that such State agency

(1) has regulatory jurisdiction over the safety standards and practices of such transportation;

(2) has adopted, as of the date of the certification, each Federal safety standard established under this Act which is applicable to such transportation or, with respect to each such Federal safety standard established within one hundred and twenty days before the date of the certification, is taking steps pursuant to State law to adopt such standard;

(3) is enforcing each such standard;

(4) is encouraging and promoting programs designed to prevent damage to pipeline facilities as a consequence of demolition, excavation, tunneling, or construction activity;

(5) has the authority to require record maintenance, reporting, and inspection substantially the same as are provided under section 14 and the filing for approval of plans of inspection and maintenance described in section 13; and that the law of the State makes provision for the enforcement of the safety standards of such State agency by way of injunctive and monetary sanctions substantially the same as are provided under sections 11 (other than subsection (a)(3) thereof) and 12. Each annual certification shall include a report, in such form as the Secretary may by regulation provide, showing

(i) name and address of each person subject to the safety jurisdiction of the

(ii) all accidents or incidents reported during the preceding 12 months by each such person involving personal injury requiring hospitalization, fatality, property damage exceeding $5,000 (whether or not sustained by a person subject to the safety jurisdiction of the State agency) and any other accident which the State agency considers significant, together with a summary of the State agency's investigation as to the cause and circumstances surrounding such accident or incident;

(iii) the record maintenance, reporting, and inspection practiced by the State agency to enforce compliance with such Federal safety standards, including a detail

of the number of inspections made of pipeline facilities by the State agency during the preceding twelve months; and

(iv) such other information as the Secretary may require. The report included with the first annual certification need not show information unavailable at that time. If after receipt of annual certification, the Secretary determines that the State agency is not satisfactorily enforcing compliance with Federal safety standards, he may, on reasonable notice and after opportunity for hearing, reject the certification or take such other action as he deems appropriate to achieve adequate enforcement including the assertion of Federal jurisdiction. When such notice is given by the Secretary, the burden of proof shall be upon the State agency to show that it is satisfactorily enforcing compliance with Federal safety standards.

(b) With respect to any intrastate pipeline transportation for which the Secretary does not receive an annual certification under subsection (a) of this section, the Secretary may, by agreement with a State agency (including a municipality) authorize such agency to assume responsibility for, and carry out on behalf of the Secretary as it relates to intrastate pipeline transportation the necessary actions to

(1) establish an adequate program for record maintenance, reporting, and inspection designed to assist compliance with Federal safety standards; and

(2) establish procedures for approval of plans of inspection and maintenance substantially the same as are required under section 13. Any agreement executed pursuant to this subsection shall require the State agency promptly to notify the Secretary of any violation or probable violation of a Federal

safety standard which it discovers as a result of its program.

(c) The Secretary may conduct whatever monitoring may be necessary of any State program established by certification or agreement under this section to assure that such programs are being carried out in compliance with such certification or agreement. State agencies shall cooperate fully in any monitoring of their programs under this subsection.

(d) (1) Except as otherwise provided in this section, if an application is submitted not later than September 30 in any calendar year, the Secretary shall pay out of funds appropriated or

Violations, notification to Secretary.

otherwise made available up to 50 per centum of the cost of the personnel, equipment, and activities of a State agency reasonably required, during the following calendar year to carry out a safety program under a certification under subsection (a) or an agreement under subsection (b) of this section; or to act as agent of the Secretary with respect to interstate transmission facilities. The Secretary may, after notice and consultation with a State agency, withhold all or any part of the funds for a particular State agency if he determines that such State agency

(A) is not satisfactorily carrying out a safety program under a certification under subsection (a) or an agreement under subsection (b) of this section, or

(B) is not satisfactorily acting as agent of the Secretary with respect to interstate transmission facilities. No such payment may be made unless the State agency making application under this subsection gives assurances satisfactory to the Secretary that the State agency will provide the remaining cost of such a safety program and that the aggregate expenditures of funds of the State, exclusive of Federal grants, for gas safety programs will be maintained at a level which does not fall below the average level of such expenditures for the last two fiscal years preceding the date of enactment of this section.

(2) Funds authorized to be appropriated by section 17(b) of this Act shall be allocated among the several States for payments to aid in the conduct of pipeline safety programs in accordance with paragraph (1) of this section.

(3) Payments under this section may be made in installments, in advance or by way of reimbursement, with necessary adjustments on account of overpayments and underpayments.

(4) The Secretary may, by regulation, provide for the form and manner of filing of applications under this section, and for such reporting and fiscal procedures as he deems necessary to assure the proper accounting for Federal funds.

(e) A certification which is in effect under subsection (a) of this section shall not apply with respect to any new or amended Federal safety standard established for intrastate pipeline transportation pursuant to this Act after the date of such certification. The provisions of this Act shall apply to any such new or amended Federal safety standard until the State agency has adopted such standard and has submitted an appropriate certification in accordance with the provisions of subsection (a) of this section.

(f) Any agreement under this section may be terminated by the Secretary if, after notice and opportunity for a hearing, he finds that the State agency has failed to comply with any provision of such agreement. Such finding and termination shall be published in the Federal Register, and Publication in

Federal shall become effective no sooner than fifteen days after the date of publication.

Register. (As amended by P.L. 92-401, 86 Stat. 616, August 22, 1972; P.L. 93-403, 88 Stat. 802, August 30, 1974; P.L. 94-477, 90 Stat. 2073, October 11, 1976; and P.L. 96-129, 93 Stat. 989, November 30, 1979)

Standards For LNG Facilities

Regulations. 49 USC 1674a.

Sec. 6.

(a) (1) Not later than 180 days after the date of the enactment of this section, the Secretary shall establish, by regulation

(A) minimum safety standards for determining the location of any new LNG facility, and

(B) minimum safety standards for the design, installation, construction, initial inspection, and initial testing of any new LNG facility.

(2) After the date standards first take effect under this section, no new LNG facility may be constructed other than in accordance with the applicable standards prescribed under this section. The Secretary shall ensure that the facility is constructed and operated in compliance with such standards.

(3) No new LNG facility may be operated unless the person operating such facility has previously submitted a contingency plan which sets forth those steps which are to be taken in the event of an LNG accident and which is determined to be adequate by the Department of Energy or the appropriate State agency, in the case of any facility not subject to the jurisdiction of the Department under the Natural Gas Act.

(b) Not later than 270 days after the date of the enactment of this subsection, the Secretary
shall establish minimum standards to be maintained with respect to the operation and
maintenance of any LNG facility.
(c) (1) (A) Except to the extent provided under subparagraph (B), any standard issued

under this Act after March i, 1978, affecting the design, location, installation,
construction, initial inspection, or initial testing shall not apply to an existing LNG
facility either-

15 USC 717w.

49 USC 1672.

(i) under the authority of this Act; or

(ii) under the authority of any other Federal law if such standard was not issued at the time such authority was exercised.

(B) Any such standard (other than one affecting location) may be made applicable under the provisions of such standard to any replacement component or part thereof of an LNG facility if that component or part is placed in service after the date of the issuance of that standard, but only if such applicability

(i) would not render such component or part incompatible with the other components or parts of the facility involved; or

(ii) would not otherwise be impracticable. No standard issued under this Act after March 1, 1978, affecting location shall apply to any replacement component or part thereof of an existing LNG facility:

(2) Nothing in this section shall preclude the application of standards under section 3 to pipeline facilities (other than LNG facilities) associated with LNG facilities.

(3) Standards affecting the design, installation, construction, initial inspection, and initial testing shall not be applicable to LNG facilities in existence on the date such standards are adopted.

(d) In prescribing general safety standards under subsections (a) and (b), the Secretary shall take into consideration

(1) with respect to standards relating to the location of any new LNG facility

(A) the nature of the use of the facility;

(B) the existing and projected population and demographic characteristics associated with the location involved;

(C) the existing and proposed land uses near such location;

(D) the meteorological, geological, topographical, seismic, and other natural physical aspects of such location;

(E) the medical, law enforcement, and fire prevention capabilities existing near such location to cope with risks created by such a facility; and

(F) the need to encourage remote siting: (2) with respect to standards applicable to the design, installation, construction, initial inspection, and initial testing of any new LNG facility

(A) the thermal resistance and other characteristics of materials to be used in the construction of such facility as compared to alternative materials;

(B) design factors (such as multiple diking, insulated concrete, and vapor containment barriers);

(C) the characteristics of the LNG to be stored or converted at, or transported by, such facility (for example, whether it is to be in a liquid or semisolid state); and

(D) the public safety factors of the design as compared to alternative designs (particularly the ability under such a design to prevent and contain an LNG spill); and (3) with respect to standards for the operation and maintenance of any LNG facility

(A) the conditions, features, and type of equipment and structures which comprise, or which are used in connection with, such facility;

(B) the fire prevention and containment equipment at such facility;

(C) the security measures to be used with respect to the operation of such facility for the prevention of sabotage or other intentional acts which could cause an LNG accident;

(D) maintenance procedures and equipment;

(E) the training of personnel with respect to the equipment, structures, measures, and procedures described in subparagraphs (A), (B), (C), and (D); and

(F) other factors and conditions relating to the safe handling of LNG. (e) At any time after the effective date of standards initially prescribed under subsections (a) and (b), the Secretary shall, on his own motion or on the motion of any person, amend such standards to the extent he considers necessary to reflect changes in technology or to otherwise carry out the purposes of this section.

(1) The provisions of the last two sentences of subsection (a)(1) of section 3 and of subsections (b), (c), and (d) of section 3 shall apply with respect to standards prescribed under this section in the same manner as they apply to standards prescribed under section 3. (As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

Ante. p. 992. 49 USC 1672. 49 USC 1674b.

Financial Responsibility for Certain LNG Activities; Studies

Report to
Congress.

Sec. 7.

(a) Not later than 270 days after the date of the enactment of this section, the Secretary shall

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