On July 21, APGA testified before the House Transportation and Infrastructure Subcommittee on Railroads, Pipelines and Hazardous Materials at a hearing focused on pipeline safety public awareness and education.  Sam Davis, general manager & CEO of the Lake Apopka Natural Gas District, FL served as APGA’s witness.  Other witnesses at the hearing included: the Honorable Cynthia Quarterman, administrator for the Pipeline and Hazardous Materials Safety Administration; Bob Kipp, president of the Common Ground Alliance; Peter O’Rourke, director of Energy Programs for the National Association of State Fire Marshals; and Massoud Tahamtani, director of the Division of Utility and Railroad Safety for the Virginia State Corporation Commission on behalf of National Association of Pipeline Safety Representatives.

APGA’s testimony, communicated that over the past several years the industry has had numerous additional requirements placed on it, e.g. Distribution Integrity Management Programs (DIMP), excess flow valves, control room management, operator qualification, public awareness, etc.  For this reason, the testimony expressed support for a clean reauthorization of the Pipeline Safety Act.  The testimony further stated that if Congress does begin to consider changes to the Act, the Committee should give careful consideration before imposing any additional regulatory burdens upon gas distribution systems.  The testimony also expresses concern with potential efforts to expand excess flow valve (EFV) requirements to commercial and industrial businesses and multifamily residences, stating that “a commercial building, unlike a residential unit, may see huge changes in gas demand as tenants in the space move in and out.”  The testimony also expresses opposition to any changes in the current formula that would shift the user fees to the distribution systems.  Shifting fees to the distribution system would mean that natural gas customers would pay both the user fees assessed to the distribution system and the fees passed on in transportation rates charged by their pipeline supplier.  Lastly, the testimony urges the Committee to consider regulating low stress transmission lines (a line operating below 30 percent of the specified minimum yield stress) operated by distribution systems under the Distribution Integrity Management Program (DIMP) instead of the Transmission Integrity Management Program (TIMP). 

A copy of APGA’s testimony is available on the APGA website at www.apga.org.  To date, neither the House nor Senate has introduced legislation reauthorizing the Pipeline Safety Act.  The Pipeline Safety Improvement Act of 2006, which authorizes federal pipeline safety programs, is scheduled to expire in 2010.  It remains unclear if Congress will be able to pass reauthorization legislation prior to adjournment.  If you have any questions on this article, please contact Dave Schryver of APGA’s staff by phone at 202-464-2742 or by email at dschryver@apga.org.  

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