WASHINGTON, DC - On May 19, 2015, a pipeline operated by Plains Pipeline, L.P., ruptured and spilled an estimated 2,400 barrels of crude oil along the California coastline and into the Pacific Ocean. The Subcommittee on Energy and Power, chaired by Rep. Ed Whitfield (R-KY), today held a hearing examining this incident along with the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) implementation of the Pipeline Safety Act of 2011. To date, PHMSA has failed to implement roughly one-third of its mandates required by that law.
Chairman Whitfield noted, “It has been more than three years since the Pipeline Safety Act was enacted, and PHMSA’s implementation has not been satisfactory. Many experts believe that pipelines are the safest means of transporting natural gas and liquid hydrocarbons, but the Santa Barbara spill and other recent incidents underscore the fact there is considerable room for improvement. It is important to understand why the timely implementation of the Pipeline Safety Act has proven so difficult and how PHMSA can expedite matters."
Stacy Cummings, Interim Executive Director of the Pipeline and Hazardous Materials Safety Administration
“We fully acknowledge our Nation’s energy supply and transportation pipeline network are rapidly changing and expanding, posing new opportunities for better oversight," said PHMSA Interim Executive Director Stacy Cummings. “We understand that there is still much more work to be done in protecting the people and the environment from pipeline hazards and fulfilling the intent of the Pipeline Safety Act."
In his line of questioning, Rep. David McKinley (R-WV) asked Interim Executive Director Cummings to grade the performance of the agency in implementing the 2011 law. “How would you grade yourself, you’ve evaded twice already the question that was asked of you on both sides of the aisle. How would you grade your performance…did you do what you were asked to do?" Ms. Cummings replied, “we have not completed all of the mandates you have asked us to complete."
Stan Wise, Commissioner of the Georgia Public Service Commission, said, “It is the job of all stakeholders - government, industry, and advocates - to continue to strive to find the ‘sweet spot’ where we have the safest possible system at a price we can all afford… Consumers come in all shapes and sizes, but their expectation of safe, affordable, reliable utility service does not change no matter who is producing or delivering their gas."
Donald Santa, President and CEO of the Interstate Natural Gas Association of America, addressed the fact that PHMSA has yet to fullly implement the last pipeline safety law. He commented, “PHMSA has yet to implement several of the key regulatory mandates from the 2011 Act. INGAA hopes that these proposed regulations will be released for public comment soon, so stakeholders can participate in a process that culminates in final rules within the next year."
Ron Bradley, Vice President of Gas Operations at PECO Energy, testified on behalf of the American Gas Association expressing his desire to see the 2011 rules finalized, stating, “Recent pipeline safety reauthorizations contained significant changes to pipeline safety programs. Many of these changes are not yet in federal regulation and others are in their infancy. PHMSA is working on a number of significant rules that will substantially change the federal gas pipeline safety regulations and the industry looks forward to the certainty that the final rules will bring."
Andrew J. Black, President and CEO of the Association of Oil Pipe Lines, stressed the importance of continuing to improve pipeline safety. “Even with these improvements in pipeline safety over the last 15 years, we know today we need to keep improving pipeline safety even further and are committed to doing so. While pipelines remain the safest method of transporting liquids, we must keep working toward our goal of zero incidents," Black said.
Full committee Chairman Fred Upton (R-MI) concluded, “This committee has a long, bipartisan history on pipeline safety issues, including passage of the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011. However, the Pipeline Safety Act will not achieve its primary objectives until it is fully implemented. It is much better to be in a position to prevent incidents before they happen rather than respond after they occur. In fact, my home state of Michigan released its own report on pipeline safety today, and I commend the state for its commitment to pipeline safety. Today’s hearing is an important step towards getting us to where we need to be."
