Hon. WARREN G. MAGNUSON, OFFICE OF THE DEPUTY ATTORNEY GENERAL,, Chairman, Committee on Commerce, U.S. Senate, Washington, D.C. DEAR SENATOR: This is in response to your request for the views of the Department of Justice on S. 980, a bill to amend the Natural Gas Pipeline Safety Act of 1968. The Natural Gas Pipeline Safety Act, of August 12, 1968 (49 U.S.C. 1671 et seq.), provides for establishment, by the Secretary of Transportation, of minimum Federal safety standards for the transportation of gas, and for pipeline facilities, and makes provision for the refinement of such standards and their administration and enforcement. Section 5(a) of the Act (49 U.S.C. 1674 (a)), provided a period of two years (to August 1970) during which States which have adopted the Federal standards could qualify for grants for their enforcement notwithstanding that State law did not make provision for injunctive and monetary sanctions in such enforcement. The first section of the present bill would extend this period to three years. While the Act which would be amended by this bill appears in every other respect to constitute permanent legislation, section 15 thereof (49 U.S.C. 1684), which contains the sole authorization of appropriations for the purposes of the statute, makes provision for only three years: For the purpose of carrying out the provisions of this chapter over a period of three fiscal years, beginning with the fiscal year ending June 30, 1969, there is authorized to be appropriated not to exceed $500,000 for the fiscal year ending June 30, 1969; not to exceed $2,000,000 for the fiscal year ending June 30, 1970; and not to exceed $4,000,000 for the fiscal year ending June 30, 1971. Section 2 of the bill would amend section 15 of the statute to read: There are authorized to be appropriated such sums as may be necessary to carry out the purposes of this Act. The Department of Justice has no objection to the enactment of this legislation. However, in the fourth line of the bill there should be substituted 1968 for the present 1958. The Office of Management and Budget has advised that, there is no objection to the submission of this report from the standpoint of the Administration's program. Sincerely, RICHARD G. KLEINDIENST, Deputy Attorney General. FEDERAL POWER COMMISSION, Hon. WARREN G. MAGNUSON, Chairman, Committee on Commerce, Washington, D.C. DEAR MR. CHAIRMAN: This responds to your request of March 8, 1971, for comments on the subject bill which would amend §§ 5(a) and 15 of P.L. 90-481, the Natural Gas Pipeline Safety Act of 1968. The changes which the bill would make are: (1) To permit additional time to the State legislatures to comply with the statutory certification requirements of the Act; and (2) To provide for general authorization of funds rather than the present specific appropriations authorizations. The Commission has no objection to these proposed changes. The Office of Management and Budget advises that there is no objection to the presentation of this report from the standpoint of the Administration's program. Sincerely, JOHN N. NASSIKAS, Chairman. COMPTROLLER GENERAL OF THE UNITED STATES, B-86339. Hon. WARREN G. MAGNUSON, Chairman, Committee on Commerce, U.S. Senate, Washington, D.C. DEAR MR..CHAIRMAN: Reference is made to your letter of May 26, 1971, requesting our comments on S. 1910, 92d Congress, which, if enacted, would be cited as the "Natural Gas Pipeline Safety Act Amendment of 1971." We have no special information as to the advantages or disadvantages of the proposed measure and therefore have no comments with respect to its merits. However, we offer the following remarks for the consideration of the committee. Neither S. 1910 nor Public Law 90-481-The Natural Gas Pipeline Safety Act of 1968-grant the Comptroller General specific authority to examine the books, records, and documents of the national organization of State commissions or of the recipients of grants or contracts under section 13 (a) of the Natural Gas Pipeline Safety Act of 1968. Section 202 of the Intergovernmental Cooperation Act of 1968, Public Law 90-577, approved October 16, 1968, 82 Stat. 1098, 42 U.S.C. 4212, provides that the head of a Federal agency and the Comptroller General of the United States or any of their duly authorized representatives shall have access for the purpose of audit and examination to any books, documents, papers, and records that are pertinent to the "grants-in-aid received by the States." The section does not cover political subdivisions of states or beneficiaries other than States which are grant recipients. Therefore we suggest the addition of language to S. 1910 amending the Natural Gas Pipeline Safety Act of 1968 along the following lines: "Records and Audit "(a) Each recipient of assistance under this Act shall keep such records as the Secretary shall prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such grants or other arrangements, the total cost of the project or undertaking in connection with which such funds are given or used, and the amount of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. "(b) The Secretary and the Comptroller General of the United States or any of their duly authorized representatives shall have access for the purpose of audit and examination to any books, documents, papers and records of recipients that are pertinent to the grants received or arrangements entered into under this Act." The new subsection (5) proposed in section 4 of the bill to be added to section 5(c) of the 1968 act would authorize the Secretary to make progress payments, on a reimbursable basis, to a State agency for the annual program costs incurred by it. We construe this as precluding advance payments. There thus appears to be no need for the authority in subsection 5(c) (2) of the 1968 act to make advance payments and we suggest that such subsection be repealed. Sincerely yours, ROBERT F. KELLER, Acting Comptroller General of the United States. OFFICE OF THE DEPUTY ATTORNEY GENERAL, Hon. WARREN G. MAGNUSON, Chairman, Committee on Commerce, U.S. Senate, DEAR SENATOR: This is in response to your request for the views of the Department of Justice on S. 1910, (92d Congress, 1st Session) a bill to amend the Natural Gas Pipeline Safety Act of 1968 to clarify congressional intent as to the appropriateness of the judicial fixing of penalties for certain safety violations, and to modify the grant-in-aid program to State agencies participating in safety regulation under the Act, and for other purposes. Section 2 of the bill would amend section 5 of the Natural Gas Pipeline Safety Act of 1968 to make clear the appropriateness of the fixing of safety violation penalties by States courts. Section 3 of the bill would amend section 5 of the Act to authorize the Secretary of Transportation to pay out funds up to half the cost of a State agency during the ensuing fiscal year reasonably required to carry out a safety program or an agreement under the Act. Section 3 of the bill also would amend section 5 of the Act by authorizing such payments to meet expenses of State agencies acting as agents of the Secretary in enforcing federal safety standards for pipeline facilities or the transportation of gas. Section 4 of the bill would add to section 5 of the Act provisions for the apportionment of funds to the State agencies and disbursement thereto to each State conditioned upon the Secretary's approval of the State's program. The section also would authorize the Secretary to pay annually to the national organization of State commissions at least $20,000 to meet annual reasonable costs of training State enforcement personnel, furnishing technical assistance, or conducting other activities appropriate to the advancement of the safety programs of State agencies carried on under the Act. Section 5 (incorrectly designated as section 4 in the bill) would provide for appropriations for the fiscal years running through June 30, 1974 for the purpose of further aiding the Secretary in providing financial assistance to State agencies under the Act. Whether this legislation should be enacted involves questions as to which the Department of Justice defers to the Department of Transportation. The Office of Management and Budget has advised that there is no objection to the submission of this report from the standpoint of the Administration's program. DEAR MR. CHAIRMAN: Your Committee has asked for the views of this Department concerning S. 1910, a bill to amend the Natural Gas Pipeline Safety Act of 1968 to clarify congressional intent as to the appropriateness of the judicial fixing of penalties for certain safety violations and to modify the grant-in-aid program to State agencies participating in safety regulations under the Act, and for other purposes. The bill would amend the Act to provide, among other things, that the Secretary could accept a certification from a State agency in cases where the State statutes provide for the assessment of civil penalties by a State court, rather than by the State agency having safety jurisdiction over intrastate gas facilities, as the Act now requires. It is the view of this Department that a State agency whose powers of assessing, compromising, and collecing civil penalties lay solely through the courts would be far less effective in assuring compliance with safety standards than a State agency having the same powers as the Secretary. The bill would further amend the Act to make Federal funds available to reimburse State agencies, which act as agents of the Secretary to aid in enforcing Federal safety standards relating to interstate transmission facilities, up to 50 percent of the State agency expenditures for this purpose. Such reimbursement is presently authorized with respect to State agency expenditures applicable to safety enforcement programs for intrastate gas facilities under a section 5(a) certification or a 5(b) agreement. The Department made provision for such an agency relationship under the interim minimum Federal safety standards, issued in November 1968, primarily in an effort to assure the same degree of public safety relating to interstate gas pipelines that certain State agencies were providing when the Natural Gas Pipeline Safety Act of 1968 was passed. The preamble to the interim minimum Federal safety standards specifically recognized that the Department was not then staffed to enforce the Federal standards applicable to interstate transmission facilities, and specifically stated that State action would necessarily be voluntary and “on a nonreimbursable basis until appropriations are made for that purpose." It is the intent of this Department to continue this agency relationship with any State that desires to enter into it, until such time as the Department is adequately staffed to directly enforce the Federal safey standards applicable to the interstate transmission facilities. It is the further view of this Department that any State serving in the agency relationship should not be required to bear the financial burden alone. Therefore, the Department will not interpose any objection to the amendment of section 5(c) (1) of the Act, as proposed in section 3 of this bill. The bill would also provide for yearly apportionment of funds to the States under a budgetary arrangement known as "contract authority." Since a number of States do not now have safety jurisdiction over all intrastate gas facilities subject to the Natural Gas Pipeline Safety Act, a statutory requirement for the apportionment of Federal funds may discourage such States from enacting statutes to place all intrastate gas facilities in a single State agency. The Department also is aware of some of the fiscal problems facing State agencies in the development of their respective gas pipeline safety programs. Although there is a time lag of one or possibly two years between the appropriation or earmarking of State funds and availability of Federal matching funds, the Department thus far has no evidence that "contract authority" arrangements would solve these problems. The bill would also provide for minimu payment of $20,000 to the national organization of State commissions to advance State agency safety programs. The Department notes that a proposal to allot Federal funds to the National Association of Regulatory Utility Commissioners (NARUC) was reviewed by the Congress during its consideration of the Natural Gas Pipeline Safety Act and was rejected. The Department has no basis to justify a change in that legislative decision. It therefore appears to the Department that, except for section 3 of the bill, the amendments proposed in this bill are not necessary. The Office of Management and Budget advised us that from the standpoint of the Administration's program, there is no objection to the submission of this report to the Committee. Sincerely, JOHN W. BARNUM, Senator HARTKE. Our first witness will be Hon. John H. Reed, who is chairman of the National Transportation Safety Board, and with him will be Mr. David Zimmerman, deputy counsel, Barry Sweedler, chief of the Pipeline Safety Division, and Eric Silberstein, legislative affairs officer. STATEMENT OF HON. JOHN H. REED, CHAIRMAN, NATIONAL TRANSPORTATION SAFETY BOARD; ACCOMPANIED BY DAVID ZIMMERMAN, DEPUTY COUNSEL; BARRY SWEEDLER, CHIEF, PIPELINE SAFETY DIVISION; AND ERIC SILBERSTEIN, LEGISLATIVE AFFAIRS OFFICER Mr. REED. Mr. Chairman, the National Transportation Safety Board appreciates the opportunity to appear before you this morning to discuss gas pipeline safety. I am John H. Reed, chairman of the board; on my left is Mr. David Zimmerman, our deputy general counsel; and on my right Mr. Barry Sweedler, chief of our Pipeline Safety Division. In respect to S. 980, H.R. 5065, and S. 1910, we would defer to the views of the Secretary of Transportation, who is the best qualified to evaluate the Department's need in the implementation of the Natural Gas Pipeline Safety Act of 1968. The proposed amendments are concerned exclusively with the ad ministration and funding of the Federal-State program authorized by the statute. The safety board supports one recommendation made by the Department, which will be explained later today by Assistant Secretary Benjamin Davis. This is with respect to the need for an amendment to combine liquid pipeline and gas pipeline safety matters within the Office of the Secretary of Transportation. At this point I will discuss some activities of the safety board in the gas pipeline safety field. We seek to be of assistance in the implementation of the pipeline safety programs by identifying major safety problems through our accident investigations and studies. It should first be stated that the number of fatalities from pipeline accidents remains low when compared with other modes of transportation. I would point out, however, that in 1970 there were 40 fatalities due to pipelines as compared with 21 in 1969. Therefore, the possibility of catastrophe is a continuing concern. If several recent accidents had occurred only a few miles one way or the other on the route of the pipeline, major catastrophies would have been the result. The potential of tragedy in this field is similar to railroad derailments involving hazardous materials. For this reason, we believe it is urgent that there be effective Federal and State action. In recognition of the above the safety board with a staff of only two pipeline specialists has sought, on a selective basis, to investigate and report pipeline accidents; to participate in the investigation of others; to identify all significant safety problems; and to recommend solutions to the Department, the States, and the pipeline industry. The board has published three major pipeline accident reports; one special study on a pipeline safety problem; and directed seven separate safety recommendations. The response to these recommendations has been generally favorable, both on the part of the Department of Transportation and the industry. In undertaking this effort, the board is convinced that a major method of identifying safety problems is through accident investigation. Also, due to a lack of any significant accident investigation effort on the part of the Federal or State governments, the board has found it necessary to enter into this area to the extent already indicated. In the beginning, we made recommendations to the Department of Transportation concerning provisions which could be incorporated in their initial Federal standards. Thereafter, the major thrust of our efforts has been to make recommendations to the Department and the industry on how these standards can be upgraded and suggestions for needed corrective measures for their implementation. As you are aware, we now have minimum safety standards for the transportation of natural and other gas by pipeline. Since present standards are a first effort there is naturally a need, as you have indicated earlier, for continued review as to their effectiveness. Following our investigation of an accident at Gary, Ind., the board made 11 recommendations to the Department concerning provisions which should be included in their initial standards. Ten of the 11 are now covered in the present standards. The one remaining is protection against overpressurization and is still of vital concern to the board. We recommend that existing regulator stations, not equipped with 71-018 O 72 - 2 |