"The department intends to take significant action to reassess its pipeline safety regulations to expand and strengthen them, as needed, keeping in mind the lessons it has already learned from the Marshall oil spill," US Department of Transportation Deputy Secretary John Porcari said, referring to the July 25 spill on Enbridge Energy Partners' oil pipeline system in Marshall, Michigan.
Porcari announced the proposal at a hearing of the House of Representatives' Transportation and Infrastructure Committee. The session was initially called to examine the July spill but was expanded to discuss the US Pipeline and Hazardous Materials Safety Administration's oversight in light of two accidents on September 9 -- Pacific Gas and Electric's gas pipeline explosion in San Bruno, California, that killed four people and Enbridge's release of crude oil in Romeoville, Illinois.
"That is not a culture of safety in the head of the office of PHMSA nor at Enbridge," said Committee Chairman Jim Oberstar of Minnesota.
DOT's proposed legislation, the "Strengthening Pipeline Safety and Enforcement Act of 2010," calls for a review to determine whether all pipelines should be subject to the stricter inspection regime required for pipes near "high-consequence areas." About 7% of pipelines currently have that
designation.
The agency wants to impose penalties of up to $250,000/d or $2.5 million for a series of violations, more than doubling the current civil penalties of up to $100,000/day or $1 million.
The bill targets exemptions for gas and hazardous liquid gathering lines, directing the department to review the waivers for elimination by October 2012. Production facilities would remain outside PHMSA jurisdiction.
"Significant spills and incidents have occurred on gathering lines and this proposal would be consistent with PHMSA's longstanding effort to capture the remaining pipeline mileage that is unregulated," according to legislative analysis released with the proposed bill.
DOT also suggested adding 40 inspection and enforcement staff to PHMSA over four years and increasing data available to the regulatory program.
The bill represents the first proposal for reauthorizing the Pipeline Inspection Protection Enforcement and Safety Act, which expires this month.
Representative Bill Shuster, a Pennsylvania Republican, criticized the Obama administration for taking so long to introduce the plan, especially in light of the recent pipeline accidents.
Oberstar said PHMSA's performance deserves bipartisan fury.
"It has nothing to do with party," he said. "It has everything to do with lives, safety, protection of the environment and the confidence that the public should have that pipelines running, particularly through urban areas, are well managed and well maintained."
Porcari said safety is the department's top priority. "Incidents like these must not happen," he said. "I assure you that the department will remain vigilant in ensuring the safety and integrity of all pipelines under its
jurisdiction."
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