If PHMSA were to receive a request for information marked as
confidential or identifies a need to make the information publicly
available, PHMSA will conduct a review of the information under the
standards set forth in the Freedom of Information Act (FOIA), 5 U.S.C.
552.
2. Summary of Public Comment
    The Pipeline Safety Trust asked that PHMSA include in Sec.
190.343(b) the criteria by which PHMSA will make the decision about
whether the information requested to be confidential will be removed
from public availability and make clear whether that decision is an
appealable administrative order.
    The American Gas Association (AGA) commented that it supported a
clear path for operators to request confidentiality for submitted
information, but indicated concern about PHMSA using its own judgment
on when to keep that information confidential. AGA also suggested that
operators should have an opportunity to classify their information
related to special permits and thus their system as Sensitive Security
Information.
    The American Petroleum Institute (API) and the Association of Oil
Pipe Lines (AOPL) commented that they did not oppose the proposal, but
requested that certain clarifications be made including who would be
responsible for making determinations concerning requests for
confidentiality, confirmation that information will be treated as
confidential if the requirements in proposed Sec.  190.343(a) are
followed and that the information would be disclosed only after a
determination is made in accordance with Sec.  190.343(3)(b). API and
AOPL also requested that at minimum, operators are granted five
business days from the date of receipt of a written notice before the
information is publicly disclosed to object, and requested an
opportunity for appeal within the agency (e.g., to the Administrator or
Chief Counsel).
    Energy Transfer Partners commented that some materials required to
be submitted to PHMSA may contain confidential information regarding
the operator's markets, plans, anticipated customers, suppliers,
vendors, contractors, etc. and commented that the proposed language was
not particularly reassuring that confidentiality would be maintained.
Energy Transfer Partners also commented that PHMSA should include the
operator in the decision-making process regarding whether to disclose
such information.
    Enterprise Products Partners LP commented that industry has long
relied on FOIA exemptions, established rules for treatment of
confidential business information and judicially recognized privileges
and that the rule should clarify that all such protections are
retained. In addition, Enterprise Products Partners requested that
PHMSA clarify that it will not post information submitted as
confidential business information, FOIA exempt or privileged on its
public Web site without prior notice to the submitter, allow a
submitter ``at least 5 business days to substantiate a request for
disclosure of information submitted as CBI, FOIA exempt or privileged,
and include an expedited appeal process.''
    FlexSteel commented that it strongly objects to the proposal,
stating that confidential information is information that is intended
to be private or secret and may be covered by patents or patents
pending. FlexSteel stated that often the type of supporting
documentation filed with certain project requests contain patented and
confidential technological information because it is unique in nature.
FlexSteel requested that proposed provision Sec.  190.343 be removed.
    Gas Processors Association (GPA) commented that it strongly objects
to the proposal in Sec.  190.343. GPA stated that pipelines are
considered critical infrastructure and that virtually every aspect of
their operations could be deemed sensitive. GPA requested that the
proposed language in Sec.  190.343 be removed from the final adopted
rule so that it can be strengthened to provide the greatest amount of
protections possible for sensitive information.

    Northeast Gas Association stated that it supports the AGA's
recommendation that PHMSA provide operators the option of utilizing the
Protected Critical Infrastructure Information protection protocol under
the Critical Infrastructure Information Act of 2002 for voluntarily
submitted sensitive data.
    Texas Pipeline Association (TPA) commented that more robust
mechanisms for protection from disclosure than what is contained in the
proposal are needed to protect Sensitive Security Information or
Protected Critical Infrastructure Information. TPA recommended that the
proposal in Sec.  190.343 be removed from any final rule adoption and
that procedures for protection of sensitive and confidential
information be developed in a separate rulemaking.
3. PHMSA Response
    With this new section, PHMSA is informing submitters of steps to
follow if they wish to request protection for confidential commercial
information submitted to PHMSA. This section also includes a provision
regarding PHMSA's decision. After reviewing the comments received to
the proposal, PHMSA has made some revisions to the title and regulatory
text in Sec.  190.343(a) and (b) for clarification.
    In addition to concerns about the protection of confidential
business information, several commenters raised concerns about
submitting information that is sensitive for security reasons. PHMSA's
intent with Sec.  190.343 was to set out the steps for requesting
protection of confidential commercial information. Therefore, in the
final rule, PHMSA is revising the title of Sec.  190.343 and regulatory
text in subparagraph (a) to clarify that this section applies to the
protection of confidential commercial information.
    PHMSA's review and determinations regarding protection of security
information involve a different process that is not the subject of this
rulemaking. Prior to disclosure of information, PHMSA reviews the
records to determine whether information is protected for security
reasons and applies all applicable FOIA exemptions and Federal laws.
The Department of Transportation and Department of Homeland Security
(DHS) have procedures in place to protect information that is
determined to be Sensitive Security Information (SSI). PHMSA's Office
of Pipeline Safety Emergency Support and Security Division consults
with Departmental and DHS/TSA security offices as necessary.
    The steps set forth in Sec.  190.343(a) serve to notify PHMSA that
a submitter believes information to be confidential commercial
information and ensures that PHMSA will protect the information as
confidential commercial information until it conducts a release
determination. Generally, such a decision will occur when PHMSA
receives a FOIA request for the information and completes an analysis
under FOIA, following the procedures in the Department's FOIA
regulations in 49 CFR part 7. In an instance where there is not a FOIA
request, but PHMSA identifies a need to make particular information
available to the public to support its mission to protect people and
the environment from the risks of gas, liquefied natural gas, and
hazardous liquids or carbon dioxide transportation by pipeline, PHMSA
will use the criteria set out in FOIA to analyze whether the
information is protected by one or more of the FOIA exemptions.
    Therefore, to address comments, PHMSA revised the regulatory text
in Sec.  190.343(b) to clarify that PHMSA will use the criteria set
forth in FOIA if a release determination is necessary. This includes
complying with the Department's FOIA regulations in 49 CFR 7.29 that
require consultation with the submitter of information designated as
confidential commercial information and written notification to the
submitter of an intended disclosure of the information.
    The procedures in Sec.  190.343 require that at the time of
submission, the submitter provide PHMSA with an explanation of why the
information is confidential. Therefore, this section gives submitters
an opportunity both at the time the information is submitted to PHMSA
to provide an explanation of why the information is confidential
commercial information and during the consultation process that PHMSA
initiates if it has received a FOIA request or determined that there is
a need to make the information publicly available.
    In response to comments, we are also clarifying in the final rule
that if after reviewing the submitter's request and explanations
submitted after the consultation, PHMSA decides to disclose the
information over the submitter's objections, PHMSA will provide written
notification to the submitter at least five business days prior to the
intended disclosure date.
    As PHMSA is following a similar process to that under the
Departmental FOIA regulations providing for submitter consultation and
notification, PHMSA is not adding an appeal process for submitters of
information. If a decision is made that the information is protected as
confidential commercial information, a FOIA requester who has asked for
the records has appeal rights under FOIA.
    The Advisory Committees' recommendations also address the public
comments received by PHMSA.

J. In-Service Welding

1. PHMSA's Proposal
    PHMSA is revising 49 CFR 192.225, 192.227, 195.214, and 195.222 to
add reference to API 1104, Appendix B.
2. Summary of Public Comment
    The AGA supports PHMSA's proposal to incorporate API 1104 Appendix
B as an acceptable section for the development of welding procedures
and welder qualification. It does not believe that this change creates
a new requirement to only use API 1104 Appendix B to qualify in service
welding procedures or in service welders and, therefore, requests that
PHMSA should provide clarification in the preamble language of the
final rule by stating this incorporation does not create a new
requirement.
    Northeast Gas Association commented that it supports PHMSA's
proposal to incorporate API 11 04 Appendix B as an acceptable section
for the development of welding procedures and welder qualification, as
long as this change provides another option along with the existing
options in the regulations.
3. PHMSA Response
    In the past, PHMSA has encouraged pipeline operators to develop and
use welding procedures that address improvements in pipeline safety and
many operators have developed in service welding procedures. Welding
procedures developed to API 1104 Appendix B consider the risks
associated with hydrogen in the weld metal, type of welding electrode,
sleeve/fitting and carrier pipe materials, accelerated cooling, and
stresses across the fillet welds. Parts 192 and 195 do not include the
addition of API 1104 Appendix B as an acceptable section for the
development of welding procedures and welder qualification. To allow
in-service welding, PHMSA is adopting Appendix B of API 1104 into parts
192 and 195. Therefore, PHMSA is not creating new requirement but only
including Appendix B into already adopted API 1104 to qualify in
service welding procedures or in service welders to perform in-service
welding operators must follow Appendix B of API 1104. In addition,
currently,

PHMSA does not allow in service welding and, therefore, there are no
existing options in the regulations for in service welding.
    The Advisory Committees agreed with PHMSA's responses to the public
comments.

K. Availability of Standards Incorporated by Reference

    PHMSA currently incorporates by reference into 49 CFR parts 192,
193, and 195 all or parts of more than 60 standards and specifications
developed and published by standard developing organizations (SDOs). In
general, SDOs update and revise their published standards every 3 to 5
years to reflect modern technology and best technical practices.
    The National Technology Transfer and Advancement Act of 1995,
Public Law 104-113, directs Federal agencies to use voluntary consensus
standards in lieu of government-written standards whenever possible.
Voluntary consensus standards are standards developed or adopted by
voluntary bodies that develop, establish, or coordinate technical
standards using agreed-upon procedures. In addition, Office of
Management and Budget (OMB) issued OMB Circular A-119 to implement
section 12(d) of Public Law 104-113 relative to the utilization of
consensus technical standards by Federal agencies. This circular
provides guidance for agencies participating in voluntary consensus
standards bodies and describes procedures for satisfying the reporting
requirements in Public Law 104-113.
    In accordance with the preceding provisions, PHMSA has the
responsibility for determining, via petitions or otherwise, which
currently referenced standards should be updated, revised, or removed,
and which standards should be added to 49 CFR parts 192, 193, and 195.
Revisions to incorporate by reference materials in 49 CFR parts 192,
193, and 195 are handled via the rulemaking process, which allows for
the public and regulated entities to provide input. During the
rulemaking process, PHMSA must also obtain approval from the Office of
the Federal Register to incorporate by reference any new materials.
    On January 3, 2012, President Obama signed the Pipeline Safety,
Regulatory Certainty, and Job Creation Act of 2011, Public Law 112-90.
Section 24 states, ``Beginning 1 year after the date of enactment of
this subsection, the Secretary may not issue guidance or a regulation
pursuant to this chapter that incorporates by reference any documents
or portions thereof unless the documents or portions thereof are made
available to the public, free of charge, on an Internet Web site.'' 49
U.S.C. 60102(p). On August 9, 2013, Public Law 113-30 revised 49 U.S.C.
60102(p) to replace ``1 year'' with ``3 years'' and remove the phrases
``guidance or'' and, ``on an Internet Web site.'' This resulted in the
current language in 49 U.S.C. 60102(p), which now reads as follows,
``Beginning 3 years after the date of enactment of this subsection, the
Secretary may not issue a regulation pursuant to this chapter that
incorporates by reference any documents or portions thereof unless the
documents or portions thereof are made available to the public, free of
charge.''
    Further, the Office of the Federal Register issued a November 7,
2014, rulemaking that revised 1 CFR 51.5 to require that agencies
detail in the preamble of a rulemaking the ways the materials it
incorporates by reference are reasonably available to interested
parties, or how the agency worked to make those materials reasonably
available to interested parties. 79 FR 66278. In relation to this
rulemaking, PHMSA has contacted each SDO and has requested free public
access of each standard that has been incorporation by reference. The
SDOs agreed to make viewable copies of the incorporated standards
available to the public at no cost. Pipeline operators interested in
purchasing these standards can contact the standards organization. The
contact information is provided in this rulemaking action, see Sec.
195.3.

V. Regulatory Analyses and Notices

Executive Order 12866, Executive Order 13563, and DOT Regulatory
Policies and Procedures

    This rule is a non-significant regulatory action under Section 3(f)
of Executive Order 12866, 58 FR 51735, and; therefore, it was not
reviewed by the Office of Management and Budget. This rule is non-
significant under the Regulatory Policies and Procedures of the
Department of Transportation. 44 FR 11034.
    Executive Order 12866, as supplemented by Executive Order 13563, 76
FR 3821, requires agencies regulate in the most cost-effective manner,
make a reasoned determination that the benefits of the intended
regulation justify its costs, and develop regulations that impose the
least burden on society. In this rule, PHMSA is amending the pipeline
safety regulations to:
     Add a specific time frame for telephonic or electronic
notifications of accidents and incidents;
     Establish PHMSA's cost recovery procedures for new
projects that cost over $2,500,000,000 or use new and novel
technologies;
     Address the NTSB's recommendations to clarify training
requirements for control room team members;
     Add provisions for the renewal of expiring special
permits;
     Exclude farm taps from the requirements of the DIMP
requirements while adding safety requirements for the farm taps;
     Require pipeline operators to report to PHMSA for
permanent reversal of flow that lasts more than 30 days or to a change
in product;
     Provide methods for assessment tools by incorporating
consensus standards by reference in part 195 for ILI and SCCDA (also
addresses part of NTSB recommendation);
     Require electronic reporting of drug and alcohol testing
results in part 199;
     Modify the criteria used to make decisions about
conducting post-accident drug and alcohol tests and require operators
to keep for at least three years a record of the reason why post-
accident drug and alcohol test was not conducted (also addresses NTSB
recommendation);
     Include the procedure for requesting protection of
confidential commercial information submitted to PHMSA.
     Add reference to Appendix B of API 1104 related to in-
service welding in Parts 192 and 195; and
     Make minor editorial corrections.
    The regulatory impact analysis found, in summary, that annual
compliance costs would be approximately $0.6 million, less savings to
be realized from the removal of farm taps from the Distribution
Integrity Management Program (DIMP) requirements.
    Annual benefits could not be quantified as readily due to data
limitations and the very minor nature of many of the changes. PHMSA
expects that the improvements and clarifications made to the
regulations, including those for post-incident investigations along
with other provisions, will reduce pipeline incidents and the
associated consequences, including the potential to prevent a future
high-consequence event, such as those that have occurred on gas
transmission and hazardous liquid pipelines in the past.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires an agency to review
regulations

to assess their impact on small entities, unless the agency determines
that a rule is not expected to have a significant impact on a
substantial number of small entities. 5 U.S.C. 601 et seq. This final
rule has been developed in accordance with Executive Order 13272,
``Proper Consideration of Small Entities in Agency Rulemaking,'' 67 FR
53461, and DOT's procedures and policies to promote compliance with the
Regulatory Flexibility Act to ensure that potential impacts of rules on
small entities are properly considered.
    The Initial Regulatory Flexibility Analysis found that the rule
could affect a substantial number of small entities because of the
market structure of the gas and hazardous liquids pipeline industry,
which includes many small entities. However, these impacts would not be
significant. The post-accident drug testing provision would add $74 in
documentation costs per reportable incident. The other provisions would
not add appreciable costs, and at least one provision (farm taps) would
yield compliance cost savings.
Description of the Reasons Why Action by PHMSA Is Being Considered
    PHMSA is amending the regulations to address the 2011 Act's section
9 (accident and incident reporting requirements) to within one hour so
that timely actions can be taken to pipeline accidents and incidents,
and section 13 (cost recovery) so that PHMSA's limited resources for
enforcement and other safety activities are not used for operators
design reviews. NTSB recommendations for control room training and drug
and alcohol reporting requirements are addressed under this rule. A
special permit renewal procedure is added so that pipeline operators
have a renewal procedure to follow to renew their expiring special
permits. In addition, other non-substantive changes are amended to
correct language and provide methods for assessment tools as
recommended by incorporating consensus standards (this addresses parts
of NTSB recommendations P-12-3 and the NACE recommendations).
Specifically, these amendments address: Farm tap requirements to
address the NAPSR and INGAA concerns in including farm taps under the
DIMP requirements; notification for reversal of flow or change in
product for more than 60 days so that PHMSA is aware of the transported
product; incorporation by reference of standards to address ILI and
SCCDA; and additional testing of drug and alcohol tests, electronic
reporting of drug and alcohol testing results, modifying the criteria
used to make decisions about conducting post-accident drug and alcohol
tests and post-accident drug and alcohol testing recordkeeping to
address a NTSB recommendation; the process to request confidential
treatment of submitted information similar to the process currently set
out in 49 CFR 105.30 of the Hazardous Materials Regulations; and,
editorial amendments to correct some errors or outdated deadlines.
Succinct Statement of the Objectives of, and Legal Basis for, This Rule
    Under the Federal Pipeline Safety Laws, 49 U.S.C. 60101 et seq.,
the Secretary of Transportation must prescribe minimum safety standards
for pipeline transportation and for pipeline facilities. The Secretary
has delegated this authority to the PHMSA Administrator. 49 CFR
1.97(a). This rulemaking action will create changes in the regulations
consistent with the protection of persons and property while changing
unduly burdensome or nonsensical requirements.
Description of Small Entities to Which This Rulemaking Action Will
Apply
    The initial Regulatory Flexibility Analysis found that the rule
could affect a substantial number of small entities because of the
market structure of the gas and hazardous liquids pipeline industry,
which includes many small entities. However, these impacts would not be
significant. The provision to document the reason for not drug testing
post-accident adds $74 in documentation costs per reportable incident.
The other provisions would not add appreciable costs, and at least one
provision (Farm Taps) would yield compliance cost savings, though those
savings are minimal.
Description of Any Significant Alternatives to This Rule That
Accomplish the Stated Objectives of Applicable Statutes and That
Minimize Any Significant Economic Impact of the Rule on Small Entities,
Including Alternatives Considered
    PHMSA is unaware of any alternatives which would produce smaller
economic impacts on small entities while at the same time meeting the
objectives of the relevant statutes.

Executive Order 13175

    PHMSA has analyzed this rule according to the principles and
criteria in Executive Order 13175, ``Consultation and Coordination with
Indian Tribal Governments,'' 65 FR 67249. The funding and consultation
requirements of Executive Order 13175 do not apply because this rule
does not significantly or uniquely affect the communities of Indian
tribal governments or impose substantial direct compliance costs.

Paperwork Reduction Act

    PHMSA has analyzed this final rule in accordance with the Paperwork
Reduction Act of 1995 (PRA). Public Law 96-511. The PRA requires
federal agencies to minimize paperwork burden imposed on the American
public by ensuring maximum utility and quality of federal information,
ensuring the use of information technology to improve government
performance, and improving the federal government's accountability for
managing information collection activities. Pursuant to 5 CFR
1320.8(d), PHMSA is required to provide interested members of the
public and affected agencies with an opportunity to comment on
information collection and recordkeeping requests. PHMSA estimates that
this rulemaking action will impact the following information
collections:
    ``Transportation of Hazardous Liquids by Pipeline: Record keeping
and Accident Reporting'' identified under Office of Management and
Budget (OMB) Control Number 2137-0047; ``Incident and Annual Reports
for Gas Pipeline Operators'' identified under Office of Management and
Budget (OMB) Control Number 2137-0522; ``Qualification of Pipeline
Safety Training'' identified under Office of Management and Budget
(OMB) Control Number 2137-0600; and ``National Registry of Pipeline and
LNG Operators'' identified under Office of Management and Budget (OMB)
Control Number 2137-0627.
    PHMSA is also creating a new information collection to cover the
recordkeeping requirement for post-accident drug testing: ``Post-
Accident Drug Testing for Pipeline Operators.'' PHMSA will request a
new Control Number from the Office of Management and Budget (OMB) for
this information collection.
    PHMSA will submit an information collection revision request to OMB
for approval based on the requirements that need information collection
in this proposed rule. The information collection is contained in the
pipeline safety regulations, 49 CFR parts 190 through 199. The
following information is provided for each information collection: (1)
Title of the information collection; (2) OMB control number; (3)
Current expiration date; (4) Type of request; (5) Abstract of the
information collection activity; (6) Description of affected public;
(7) Estimate of total annual reporting and recordkeeping

burden; and (8) Frequency of collection. The information collection
burdens are estimated to be revised as follows:

    1. Title: Transportation of Hazardous Liquids by Pipeline:
Recordkeeping and Accident Reporting.
    OMB Control Number: 2137-0047.
    Current Expiration Date: December 31, 2016.
    Abstract: This information collection covers recordkeeping and
accident reporting by hazardous liquid pipeline operators who are
subject to 49 CFR part 195. Section 195.50 specifies the definition of
an ``accident'' and the reporting criteria for submitting a Hazardous
Liquid Accident Report (form PHMSA F7000-1) is detailed in Sec.
195.54. PHMSA is revising the form PHMSA F7000-1 and its instructions
to include the concept of ``confirmed discovery'' as amended in this
rule. Operators will be required to include the date and time of the
confirmed discovery of a hazardous liquid pipeline accident. PHMSA does
not expect this revision to increase the burden of reporting.
    Affected Public: Hazardous liquid pipeline operators.
    Annual Reporting and Recordkeeping Burden:
    Total Annual Responses: 847.
    Total Annual Burden Hours: 52,429.
    Frequency of collection: On Occasion.

    2. Title: Incident and Annual Reports for Gas Pipeline Operators.
    OMB Control Number: 2137-0522.
    Current Expiration Date: October 31, 2017.
    Abstract: This rulemaking action will result in a modification to
three gas incident forms to include the concept of ``confirmed
discovery'' as amended in this rule. Operators will be required to
include the date and time of the confirmed discovery of a natural gas
pipeline incident. PHMSA does not expect this revision to increase the
burden of reporting.
    Affected Public: Gas pipeline operators.
    Annual Reporting and Recordkeeping Burden:
    Total Annual Responses: 12,164.
    Total Annual Burden Hours: 92,321.
    Frequency of Collection: On occasion.

    3. Title: ``National Registry of Pipeline and LNG Operators''
    OMB Control Number: 2137-0627.
    Current Expiration Date: May 31, 2018.
    Abstract: The National Registry of Pipeline and LNG Operators
serves as the storehouse of data on regulated operators or those
subject to reporting requirements under 49 CFR parts 192, 193, or 195.
This registry incorporates the use of two forms: (1) The Operator
Assignment Request Form (PHMSA F 1000.1) and, (2) the Operator Registry
Notification Form (PHMSA F 1000.2). This rule amends Sec.  191.22 to
require operators to notify PHMSA upon the occurrence of the following:
Construction of 10 or more miles of a new or replacement pipeline;
construction of a new LNG plant or LNG facility; reversal of product
flow direction when the reversal is expected to last more than 30 days;
if a pipeline is converted for service under Sec.  192.14, or has a
change in commodity as reported on the annual report as required by
Sec.  191.17.
    These notifications are estimated to be rare but would fall under
the scope of Operator Notifications required by PHMSA as a result of
this rule. PHMSA estimates that this new reporting requirement will add
10 new responses and 10 annual burden hours to the currently approved
information collection.
    Affected Public: Operators of PHMSA-Regulated Pipelines.
    Annual Reporting and Recordkeeping Burden:
    Total Annual Responses: 640.
    Total Annual Burden Hours: 640.
    Frequency of Collection: On occasion.

    4. Title: ``Post-Accident Drug Testing for Pipeline Operators''
    OMB Control Number: Will request one from OMB.
    Current Expiration Date: New Collection--To be determined.
    Abstract: This rule amends 49 CFR 199.227 to require operators to
retain records for three years if they decide not to administer post-
accident/incident drug testing on affected employees). As a result,
operators who choose not to perform post-accident drug and alcohol
tests on affected employees are required to keep records explaining
their decision not to do so. PHMSA estimates this recordkeeping
requirement will result in 609 responses and 1,218 burden hours for
recordkeeping. PHMSA does not currently have an information collection
which covers this requirement and will request the approval of this new
collection, along with a new OMB Control Number, from the Office of
Management and Budget.
    Affected Public: Operators of PHMSA-Regulated Pipelines.
    Annual Reporting and Recordkeeping Burden:
    Total Annual Responses: 609.
    Total Annual Burden Hours: 1,218.
    Frequency of Collection: On occasion.
    Requests for copies of these information collections should be
directed to Angela Dow, Office of Pipeline Safety (PHP-30), Pipeline
and Hazardous Materials Safety Administration, 2nd Floor, 1200 New
Jersey Avenue SE., Washington, DC 20590-0001. Telephone:<PHONE_NUMBER>.

Unfunded Mandates Reform Act of 1995

    This final rule does not impose unfunded mandates under the
Unfunded Mandates Reform Act of 1995. Public Law 104-4. PHMSA has
determined that the rule does not impose annual expenditures on State,
local, or tribal governments of the private sector in excess of $155
million, and thus, does not require an Unfunded Mandates Act
analysis.\7\
---------------------------------------------------------------------------

    \7\ The Unfunded Mandates Act threshold was $100 million in
1995. Using the non-seasonally adjusted CPI-U (Index series
CUUR000SA0), that number is $155 million in 2014 dollars.
---------------------------------------------------------------------------

National Environmental Policy Act

    The National Environmental Policy Act, 42 U.S.C. 4321 through 4375,
requires that Federal agencies analyze rulemaking actions to determine
whether those actions will have a significant impact on the human
environment. The Council on Environmental Quality regulations, 40 CFR
parts 1500-1508, require Federal agencies to conduct an environmental
review considering: (1) The need for the regulatory action, (2)
alternatives to the regulatory action, (3) probable environmental
impacts of the regulatory action and alternatives, and (4) the agencies
and persons consulted during the rulemaking development process. 40 CFR
1508.9(b).
1. Purpose and Need
    PHMSA's mission is to protect people and the environment from the
risks of hazardous materials transportation. The purpose of this
rulemaking action is to enhance pipeline integrity and safety to lessen
the frequency and consequences of pipeline incidents that cause
environmental degradation, personal injury, and loss of life.
    The need for this action stems from the statutory mandates in
sections 9 and 13 of the 2011 Act, NTSB recommendations, and the need
to add new reference material and make non substantive edits. Section 9
of the 2011 Act directs PHMSA to require a specific time limit for
telephonic or electronic reporting of pipeline accidents and incidents,
and section 13 of the 2011 Act allows PHMSA to recover costs associated
with pipeline design reviews. NTSB has made recommendations regarding
the clarification of OQ requirements in control rooms, and to eliminate
operator discretion with regard to post-accident drug and alcohol

testing of covered employees. In addition, PHMSA's safety regulations
require periodic updates and clarifications to enhance compliance and
overall safety.
2. Alternatives
    In developing this rulemaking action, PHMSA considered two
alternatives:
    (1) No action, or
    (2) Amend revisions to the pipeline safety regulations to
incorporate the amendments as described in this document.
    Alternative 1: PHMSA has an obligation to ensure the safe and
effective transportation of hazardous liquids and gases by pipeline.
The changes in this rulemaking action serve that purpose by clarifying
the pipeline safety regulations and addressing Congressional mandates
and NTSB safety recommendations. A failure to undertake these actions
would be non-responsive to the Congressional mandates and the NTSB
recommendations. Accordingly, PHMSA rejected the ``no action''
alternative.
    Alternative 2: PHMSA is making certain amendments and non-
substantive changes to the pipeline safety regulations to add a
specific time frame for telephonic or electronic notifications of
accidents and incidents and add provisions for cost recovery for design
reviews of certain new projects, for the renewal of expiring special
permits, and to request PHMSA keep submitted information confidential.
PHMSA is also making changes to the drug and alcohol testing
requirements, control room team training requirements, and is providing
methods for assessment tools by incorporating consensus standards by
reference for ILI and SCCDA.
3. Analysis of Environmental Impacts
    The Nation's pipelines are located throughout the United States in
a variety of diverse environments; from offshore locations, to highly
populated urban sites, to unpopulated rural areas. The pipeline
infrastructure is a network of over 2.6 million miles of pipelines that
move millions of gallons of hazardous liquids and over 55 billion cubic
feet of natural gas daily. The biggest source of energy is petroleum,
including oil and natural gas. Together, these commodities supply 65
percent of the energy in the United States.
    The physical environments potentially affected by this rule
includes the airspace, water resources (e.g., oceans, streams, lakes),
cultural and historical resources (e.g., properties listed on the
National Register of Historic Places), biological and ecological
resources (e.g., coastal zones, wetlands, plant and animal species and
their habitats, forests, grasslands, offshore marine ecosystems), and
special ecological resources (e.g., threatened and endangered plant and
animal species and their habitats, national and State parklands,
biological reserves, wild and scenic rivers) that exist directly
adjacent to and within the vicinity of pipelines.
    Because the pipelines subject to this rule contain hazardous
materials, resources within the physically affected environments, as
well as public health and safety, may be affected by pipeline incidents
such as spills and leaks. Incidents on pipelines can result in fires
and explosions, resulting in damage to the local environment. In
addition, since pipelines often contain gas streams laden with
condensates and natural gas liquids, failures also result in spills of
these liquids, which can cause environmental harm. Depending on the
size of a spill or gas leak and the nature of the impact zone, the
impacts could vary from property damage and environmental damage to
injuries or, on rare occasions, fatalities.
    The amendments are improvements to the existing pipeline safety
requirements and would have little or no impact on the human
environment. On a national scale, the cumulative environmental damage
from pipelines would most likely be reduced slightly.
    For these reasons, PHMSA has concluded that neither of the
alternatives discussed above would result in any significant impacts on
the environment.
    Preparers: This Environmental Assessment was prepared by DOT staff
from PHMSA and Volpe National Transportation Systems Center (Office of
the Secretary for Research and Technology (OST-R)).
4. Finding of No Significant Impact
    PHMSA has determined that the selected alternative would have a
positive, non-significant, impact on the human environment.

Executive Order 13132

    PHMSA has analyzed this rule according to Executive Order 13132,
``Federalism,'' 64 FR 43255. The rule does not have a substantial
direct effect on the States, the relationship between the national
government and the States, or the distribution of power and
responsibilities among the various levels of government. This rule does
not impose substantial direct compliance costs on State and local
governments. This rule does not preempt State law for intrastate
pipelines. Therefore, the consultation and funding requirements of
Executive Order 13132 do not apply.

Executive Order 13211

    This rule is not a ``significant energy action'' under Executive
Order 13211, ``Actions Concerning Regulations That Significantly Affect
Energy Supply, Distribution, or Use,'' 66 FR 28355. It is not likely to
have a significant adverse effect on supply, distribution, or energy
use. Further, the Office of Information and Regulatory Affairs has not
designated this rule as a significant energy action.
Regulation Identifier Number
    A regulation identifier number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda in
spring and fall of each year. The RIN contained in the heading of this
document can be used to cross-reference this action with the United
Agenda.

List of Subjects

49 CFR Part 190

    Administrative practice and procedure, Penalties, Cost recovery,
Special permits.

49 CFR Part 191

    Incident, Pipeline safety, Reporting and recordkeeping
requirements, Reversal of flow.

49 CFR Part 192

    Control room, Distribution integrity management program, Gathering
lines, Incorporation by reference, Operator qualification, Pipeline
safety, Safety devices, Security measures.

49 CFR Part 195

    Ammonia, Carbon dioxide, Control room, Corrosion control, Direct
and indirect costs, Gathering lines, Incident, Incorporation by
reference, Operator qualification, Petroleum, Pipeline safety,
Reporting and recordkeeping requirements, Reversal of flow, and Safety
devices.

49 CFR Part 199

    Alcohol testing, Drug testing, Pipeline safety, Reporting and
recordkeeping requirements, Safety, and Transportation.

    In consideration of the foregoing, PHMSA is amending 49 CFR parts
190, 191, 192, 195, and 199 as follows:

PART 190--PIPELINE SAFETY ENFORCEMENT AND REGULATORY PROCEDURES

0
1. The authority citation for part 190 continues to read as follows:

    Authority: 33 U.S.C. 1321(b); 49 U.S.C. 60101 et seq.; 49 CFR
1.97.

0
2. In Sec.  190.3, add the definition ``New and novel technologies'' in
alphabetical order to read as follows:

Sec.  190.3  Definitions.

* * * * *
    New and novel technologies means any products, designs, materials,
testing, construction, inspection, or operational procedures that are
not addressed in 49 CFR parts 192, 193, or 195, due to technology or
design advances and innovation for new construction. Technologies that
are addressed in consensus standards that are incorporated by reference
into parts 192, 193, and 195 are not ``new or novel technologies.''
* * * * *

0
3. Amend Sec.  190.341 by:
0
a. Revising paragraph (c)(8) and removing paragraph (c)(9) and revising
paragraph (d);
0
b. Re-designating paragraphs (e) through (j) as paragraphs (g) through
(l) and adding new paragraphs (e) and (f).
    The additions and revisions read as follows:

Sec.  190.341  Special permits.

* * * * *
    (c) * * *
    (8) Any other information PHMSA may need to process the application
including environmental analysis where necessary.
    (d) How does PHMSA handle special permit applications?--(1) Public
notice. Upon receipt of an application or renewal of a special permit,
PHMSA will provide notice to the public of its intent to consider the
application and invite comment. In addition, PHMSA may consult with
other Federal agencies before granting or denying an application or
renewal on matters that PHMSA believes may have significance for
proceedings under their areas of responsibility.
    (2) Grants, renewals, and denials. If the Associate Administrator
determines that the application complies with the requirements of this
section and that the waiver of the relevant regulation or standard is
not inconsistent with pipeline safety, the Associate Administrator may
grant the application, in whole or in part, for a period of time from
the date granted. Conditions may be imposed on the grant if the
Associate Administrator concludes they are necessary to assure safety,
environmental protection, or are otherwise in the public interest. If
the Associate Administrator determines that the application does not
comply with the requirements of this section or that a waiver is not
justified, the application will be denied. Whenever the Associate
Administrator grants or denies an application, notice of the decision
will be provided to the applicant. PHMSA will post all special permits
on its Web site at http://www.phmsa.dot.gov/.
    (e) How does PHMSA handle special permit renewals? (1) The grantee
of the special permit must apply for a renewal of the permit 180 days
prior to the permit expiration.
    (2) If, at least 180 days before an existing special permit expires
the holder files an application for renewal that is complete and
conforms to the requirements of this section, the special permit will
not expire until final administrative action on the application for
renewal has been taken:
    (i) Direct fax to PHMSA at:<PHONE_NUMBER>; or
    (ii) Express mail, or overnight courier to the Associate
Administrator for Pipeline Safety, Pipeline and Hazardous Materials
Safety Administration, 1200 New Jersey Avenue SE., Washington, DC
20590.
    (f) What information must be included in the renewal application?
(1) The renewal application must include a copy of the original special
permit, the docket number on the special permit, and the following
information as applicable:
    (i) A summary report in accordance with the requirements of the
original special permit including verification that the grantee's
operations and maintenance plan (O&M Plan) is consistent with the
conditions of the special permit;
    (ii) Name, mailing address and telephone number of the special
permit grantee;
    (iii) Location of special permit--areas on the pipeline where the
special permit is applicable including: Diameter, mile posts, county,
and state;
    (iv) Applicable usage of the special permit--original and future;
and
    (v) Data for the special permit segment and area identified in the
special permit as needing additional inspections to include, as
applicable:
    (A) Pipe attributes: Pipe diameter, wall thickness, grade, seam
type; and pipe coating including girth weld coating;
    (B) Operating Pressure: Maximum allowable operating pressure
(MAOP); class location (including boundaries on aerial photography);
    (C) High Consequence Areas (HCAs): HCA boundaries on aerial
photography;
    (D) Material Properties: Pipeline material documentation for all
pipe, fittings, flanges, and any other facilities included in the
special permit. Material documentation must include: Yield strength,
tensile strength, chemical composition, wall thickness, and seam type;
    (E) Test Pressure: Hydrostatic test pressure and date including
pressure and temperature charts and logs and any known test failures or
leaks;
    (F) In-line inspection (ILI): Summary of ILI survey results from
all ILI tools used on the special permit segments during the previous
five years or latest ILI survey result;
    (G) Integrity Data and Integration: The following information, as
applicable, for the past five (5) years: Hydrostatic test pressure
including any known test failures or leaks; casings(any shorts); any
in-service ruptures or leaks; close interval survey (CIS) surveys;
depth of cover surveys; rectifier readings; test point survey readings;
alternating current/direct current (AC/DC) interference surveys; pipe
coating surveys; pipe coating and anomaly evaluations from pipe
excavations; stress corrosion cracking (SCC), selective seam weld
corrosion (SSWC) and hard spot excavations and findings; and pipe
exposures from encroachments;
    (H) In-service: Any in-service ruptures or leaks including repair
type and failure investigation findings; and
    (I) Aerial Photography: Special permit segment and special permit
inspection area, if applicable.
    (2) PHMSA may request additional operational, integrity or
environmental assessment information prior to granting any request for
special permit renewal.
    (3) The existing special permit will remain in effect until PHMSA
acts on the application for renewal by granting or denying the request.
* * * * *

0
4. Section 190.343 is added to subpart D read as follows:

Sec.  190.343  Information made available to the public and request for
protection of confidential commercial information.

    When you submit information to PHMSA during a rulemaking
proceeding, as part of your application for special permit or renewal,
or for any other reason, we may make that information publicly
available unless you ask that we keep the information confidential.

    (a) Asking for protection of confidential commercial information.
You may ask us to give confidential treatment to information you give
to the agency by taking the following steps:
    (1) Mark ``confidential'' on each page of the original document you
would like to keep confidential.
    (2) Send us, along with the original document, a second copy of the
original document with the confidential commercial information deleted.
    (3) Explain why the information you are submitting is confidential
commercial information.
    (b) PHMSA decision. PHMSA will treat as confidential the
information that you submitted in accordance with this section, unless
we notify you otherwise. If PHMSA decides to disclose the information,
PHMSA will review your request to protect confidential commercial
information under the criteria set forth in the Freedom of Information
Act (FOIA), 5 U.S.C. 552, including following the consultation
procedures set out in the Departmental FOIA regulations, 49 CFR 7.29.
If PHMSA decides to disclose the information over your objections, we
will notify you in writing at least five business days before the
intended disclosure date.

0
5. In part 190, subpart E is added to read as follows:

Subpart E--Cost Recovery for Design Reviews

Sec.
190.401 Scope.
190.403 Applicability.
190.405 Notification.
190.407 Master Agreement.
190.409 Fee structure.
190.411 Procedures for billing and payment of fee.

Sec.  190.401  Scope.

    If PHMSA conducts a facility design and/or construction safety
review or inspection in connection with a proposal to construct,
expand, or operate a gas, hazardous liquid or carbon dioxide pipeline
facility, or a liquefied natural gas facility that meets the
applicability requirements in Sec.  190.403, PHMSA may require the
applicant proposing the project to pay the costs incurred by PHMSA
relating to such review, including the cost of design and construction
safety reviews or inspections.

Sec.  190.403  Applicability.

    The following paragraph specifies which projects will be subject to
the cost recovery requirements of this section.
    (a) This section applies to any project that--
    (1) Has design and construction costs totaling at least
$2,500,000,000, as periodically adjusted by PHMSA, to take into account
increases in the Consumer Price Index for all urban consumers published
by the Department of Labor, based on--
    (i) The cost estimate provided to the Federal Energy Regulatory
Commission in an application for a certificate of public convenience
and necessity for a gas pipeline facility or an application for
authorization for a liquefied natural gas pipeline facility; or
    (ii) A good faith estimate developed by the applicant proposing a
hazardous liquid or carbon dioxide pipeline facility and submitted to
the Associate Administrator. The good faith estimate for design and
construction costs must include all of the applicable cost items
contained in the Federal Energy Regulatory Commission application
referenced in Sec.  190.403(a)(1)(i) for a gas or LNG facility. In
addition, an applicant must take into account all survey, design,
material, permitting, right-of way acquisition, construction, testing,
commissioning, start-up, construction financing, environmental
protection, inspection, material transportation, sales tax, project
contingency, and all other applicable costs, including all segments,
facilities, and multi-year phases of the project;
    (2) Uses new or novel technologies or design, as defined in Sec.
190.3.
    (b) The Associate Administrator may not collect design safety
review fees under this section and 49 U.S.C. 60301 for the same design
safety review.
    (c) The Associate Administrator, after receipt of the design
specifications, construction plans and procedures, and related
materials, determines if cost recovery is necessary. The Associate
Administrator's determination is based on the amount of PHMSA resources
needed to ensure safety and environmental protection.

Sec.  190.405  Notification.

    For any new pipeline facility construction project in which PHMSA
will conduct a design review, the applicant proposing the project must
notify PHMSA and provide the design specifications, construction plans
and procedures, project schedule and related materials at least 120
days prior to the commencement of any of the following activities:
Route surveys for construction, material manufacturing, offsite
facility fabrications, construction equipment move-in activities,
onsite or offsite fabrications, personnel support facility
construction, and any offsite or onsite facility construction. To the
maximum extent practicable, but not later than 90 days after receiving
such design specifications, construction plans and procedures, and
related materials, PHMSA will provide written comments, feedback, and
guidance on the project.

Sec.  190.407  Master Agreement.

    PHMSA and the applicant will enter into an agreement within 60 days
after PHMSA received notification from the applicant provided in Sec.
190.405, outlining PHMSA's recovery of the costs associated with the
facility design safety review.
    (a) A Master Agreement, at a minimum, includes:
    (1) Itemized list of direct costs to be recovered by PHMSA;
    (2) Scope of work for conducting the facility design safety review
and an estimated total cost;
    (3) Description of the method of periodic billing, payment, and
auditing of cost recovery fees;
    (4) Minimum account balance which the applicant must maintain with
PHMSA at all times;
    (5) Provisions for reconciling differences between total amount
billed and the final cost of the design review, including provisions
for returning any excess payments to the applicant at the conclusion of
the project;
    (6) A principal point of contact for both PHMSA and the applicant;
and
    (7) Provisions for terminating the agreement.
    (8) A project reimbursement cost schedule based upon the project
timing and scope.
    (b) [Reserved]

Sec.  190.409  Fee structure.

    The fee charged is based on the direct costs that PHMSA incurs in
conducting the facility design safety review (including construction
review and inspections), and will be based only on costs necessary for
conducting the facility design safety review. ``Necessary for'' means
that but for the facility design safety review, the costs would not
have been incurred and that the costs cover only those activities and
items without which the facility design safety review cannot be
completed.
    (a) Costs qualifying for cost recovery include, but are not limited
to--
    (1) Personnel costs based upon total cost to PHMSA;
    (2) Travel, lodging and subsistence;
    (3) Vehicle mileage;
    (4) Other direct services, materials and supplies;
    (5) Other direct costs as may be specified in the Master Agreement.
    (b) [Reserved]

Sec.  190.411  Procedures for billing and payment of fee.

    All PHMSA cost calculations for billing purposes are determined
from the best available PHMSA records.
    (a) PHMSA bills an applicant for cost recovery fees as specified in
the Master Agreement, but the applicant will not be billed more
frequently than quarterly.
    (1) PHMSA will itemize cost recovery bills in sufficient detail to
allow independent verification of calculations.
    (2) [Reserved]
    (b) PHMSA will monitor the applicant's account balance. Should the
account balance fall below the required minimum balance specified in
the Master Agreement, PHMSA may request at any time the applicant
submit payment within 30 days to maintain the minimum balance.
    (c) PHMSA will provide an updated estimate of costs to the
applicant on or near October 1st of each calendar year.
    (d) Payment of cost recovery fees is due within 30 days of issuance
of a bill for the fees. If payment is not made within 30 days, PHMSA
may charge an annual rate of interest (as set by the Department of
Treasury's Statutory Debt Collection Authorities) on any outstanding
debt, as specified in the Master Agreement.
    (e) Payment of the cost recovery fee by the applicant does not
obligate or prevent PHMSA from taking any particular action during
safety inspections on the project.

PART 191--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE;
ANNUAL REPORTS, INCIDENT REPORTS, AND SAFETY-RELATED CONDITION
REPORTS

0
6. The authority citation for part 191 is revised to read as follows:

    Authority: 49 U.S.C. 5121, 60102, 60103, 60104, 60108, 60117,
60118, 60124, 60132, and 60141; and 49 CFR 1.97.

0
7. In Sec.  191.3, add the definition ``Confirmed Discovery'' in
alphabetical order to read as follows:

Sec.  191.3  Definitions.

* * * * *
    Confirmed Discovery means when it can be reasonably determined,
based on information available to the operator at the time a reportable
event has occurred, even if only based on a preliminary evaluation.
* * * * *

0
8. In Sec.  191.5, paragraph (a) is revised and paragraph (c) is added
to read as follows:

Sec.  191.5  Immediate notice of certain incidents.

    (a) At the earliest practicable moment following discovery, but no
later than one hour after confirmed discovery, each operator must give
notice in accordance with paragraph (b) of this section of each
incident as defined in Sec.  191.3.
* * * * *
    (c) Within 48 hours after the confirmed discovery of an incident,
to the extent practicable, an operator must revise or confirm its
initial telephonic notice required in paragraph (b) of this section
with an estimate of the amount of product released, an estimate of the
number of fatalities and injuries, and all other significant facts that
are known by the operator that are relevant to the cause of the
incident or extent of the damages. If there are no changes or revisions
to the initial report, the operator must confirm the estimates in its
initial report.

0
9. In Sec.  191.22, paragraph (c)(1)(ii) is revised and paragraphs
(c)(1)(v) and (c)(1)(vi) are added to read as follows:

Sec.  191.22  National Registry of Pipeline and LNG operators

* * * * *
    (c) * * *
    (1) * * *
    (ii) Construction of 10 or more miles of a new or replacement
pipeline;
* * * * *
    (v) Reversal of product flow direction when the reversal is
expected to last more than 30 days. This notification is not required
for pipeline systems already designed for bi-directional flow; or
    (vi) A pipeline converted for service under Sec.  192.14 of this
chapter, or a change in commodity as reported on the annual report as
required by Sec.  191.17.
* * * * *

PART 192--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE:
MINIMUM FEDERAL SAFETY STANDARDS

0
10. The authority citation for part 192 is revised to read as follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60110,
60113, 60116, 60118, 60137, 60141; and 49 CFR 1.97.

0
11. In Sec.  192.14, paragraph (c) is added to read as follows

Sec.  192.14  Conversion to service subject to this part.

* * * * *
    (c) An operator converting a pipeline from service not previously
covered by this part must notify PHMSA 60 days before the conversion
occurs as required by Sec.  191.22 of this chapter.

0
12. In Section 192.175, paragraph (b) is revised to read as follows:

Sec.  192.175  Pipe-type and bottle-type holders.

* * * * *
    (b) Each pipe-type or bottle-type holder must have minimum
clearance from other holders in accordance with the following formula:

C = (3D*P*F)/1000) in inches; (C = (3D*P*F*)/6,895) in millimeters

in which:

C = Minimum clearance between pipe containers or bottles in inches
(millimeters).
D = Outside diameter of pipe containers or bottles in inches
(millimeters).
P = Maximum allowable operating pressure, psi (kPa) gauge.
F = Design factor as set forth in Sec.  192.111 of this part.

0
13. In Sec.  192.225, paragraph (a) is revised to read as follows:

Sec.  192.225  Welding procedures.

    (a) Welding must be performed by a qualified welder or welding
operator in accordance with welding procedures qualified under section
5, section 12, Appendix A or Appendix B of API Std 1104 (incorporated
by reference, see Sec.  192.7), or section IX of the ASME Boiler and
Pressure Vessel Code (ASME BPVC) (incorporated by reference, see Sec.
192.7) to produce welds meeting the requirements of this subpart. The
quality of the test welds used to qualify welding procedures must be
determined by destructive testing in accordance with the applicable
welding standard(s).
* * * * *

0
14. In Sec.  192.227, paragraph (a) is revised to read as follows:

Sec.  192.227  Qualification of welders.

    (a) Except as provided in paragraph (b) of this section, each
welder or welding operator must be qualified in accordance with section
6, section 12, Appendix A or Appendix B of API Std 1104 (incorporated
by reference, see Sec.  192.7), or section IX of the ASME Boiler and
Pressure Vessel Code (ASME BPVC) (incorporated by reference, see Sec.
192.7). However, a welder or welding operator qualified under an
earlier edition than the listed in Sec.  192.7 of this part may weld
but may not requalify under that earlier edition.
* * * * *

0
15. In Sec.  192.631, paragraphs (b)(3) and (4) are revised, paragraph
(b)(5) is added, paragraphs (h)(4) and (5) are revised, and paragraph
(h)(6) is added to read as follows:

Sec.  192.631  Control room management.

* * * * *
    (b) * * *
    (3) A controller's role during an emergency, even if the controller
is not the first to detect the emergency, including the controller's
responsibility to take specific actions and to communicate with others;
    (4) A method of recording controller shift-changes and any hand-
over of responsibility between controllers; and
    (5) The roles, responsibilities and qualifications of others with
the authority to direct or supersede the specific technical actions of
a controller.
* * * * *
    (h) * * *
    (4) Training that will provide a controller a working knowledge of
the pipeline system, especially during the development of abnormal
operating conditions;
    (5) For pipeline operating setups that are periodically, but
infrequently used, providing an opportunity for controllers to review
relevant procedures in advance of their application; and
    (6) Control room team training and exercises that include both
controllers and other individuals, defined by the operator, who would
reasonably be expected to operationally collaborate with controllers
(control room personnel) during normal, abnormal or emergency
situations. Operators must comply with the team training requirements
under this paragraph by no later than January 23, 2018.
* * * * *

0
16. Section 192.740 is added to read as follows:

Sec.  192.740  Pressure regulating, limiting, and overpressure
protection--Individual service lines directly connected to production,
gathering, or transmission pipelines.

    (a) This section applies, except as provided in paragraph (c) of
this section, to any service line directly connected to a production,
gathering, or transmission pipeline that is not operated as part of a
distribution system.
    (b) Each pressure regulating or limiting device, relief device
(except rupture discs), automatic shutoff device, and associated
equipment must be inspected and tested at least once every 3 calendar
years, not exceeding 39 months, to determine that it is:
    (1) In good mechanical condition;
    (2) Adequate from the standpoint of capacity and reliability of
operation for the service in which it is employed;
    (3) Set to control or relieve at the correct pressure consistent
with the pressure limits of Sec.  192.197; and to limit the pressure on
the inlet of the service regulator to 60 psi (414 kPa) gauge or less in
case the upstream regulator fails to function properly; and
    (4) Properly installed and protected from dirt, liquids, or other
conditions that might prevent proper operation.
    (c) This section does not apply to equipment installed on service
lines that only serve engines that power irrigation pumps.

0
17. Section 192.1003 is revised to read as follows:

Sec.  192.1003  What do the regulations in this subpart cover?

    (a) General. Unless exempted in paragraph (b) of this section this
subpart prescribes minimum requirements for an IM program for any gas
distribution pipeline covered under this part, including liquefied
petroleum gas systems. A gas distribution operator, other than a master
meter operator or a small LPG operator, must follow the requirements in
Sec. Sec.  192.1005 through 192.1013 of this subpart. A master meter
operator or small LPG operator of a gas distribution pipeline must
follow the requirements in Sec.  192.1015 of this subpart.
    (b) Exceptions. This subpart does not apply to an individual
service line directly connected to a transmission, gathering, or
production pipeline.

PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE

0
18. The authority citation for part 195 continues to read as follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60116,
60118, 60132, 60137, and 49 CFR 1.97.

0
19. In Sec.  195.2, add the definitions ``Confirmed discovery,'' ``In-
Line Inspection (ILI),'' ``In-Line Inspection Tool or Instrumented
Internal Inspection Device,'' and ``Significant stress corrosion
cracking'' in alphabetical order to read as follows:

Sec.  195.2  Definitions.

* * * * *
    Confirmed Discovery means when it can be reasonably determined,
based on information available to the operator at the time a reportable
event has occurred, even if only based on a preliminary evaluation.
* * * * *
    In-Line Inspection (ILI) means the inspection of a pipeline from
the interior of the pipe using an in-line inspection tool. Also called
intelligent or smart pigging.
    In-Line Inspection Tool or Instrumented Internal Inspection Device
means a device or vehicle that uses a non-destructive testing technique
to inspect the pipeline from the inside. Also known as intelligent or
smart pig.
* * * * *
    Significant Stress Corrosion Cracking means a stress corrosion
cracking (SCC) cluster in which the deepest crack, in a series of
interacting cracks, is greater than 10% of the wall thickness and the
total interacting length of the cracks is equal to or greater than 75%
of the critical length of a 50% through-wall flaw that would fail at a
stress level of 110% of SMYS.
* * * * *

0
20. In Sec.  195.3:
0
a. Add paragraph (b)(23);
0
b. Revise paragraph (c)(2);
0
c. Redesignate paragraphs (d) through (h) as (e) through (i)
respectively and add a new paragraph (d); and
0
d. Amend newly redesignated paragraph (g) by adding paragraphs (g)(3)
and (4); and
0
e. Revise newly redesignated paragraph (i)(1).
    The additions and revisions read as follows:

Sec.  195.3  Incorporation by reference.

* * * * *
    (b) * * *
    (23) API Standard 1163, ``In-Line Inspection Systems
Qualification'' Second edition, April 2013, (API Std 1163), IBR
approved for Sec.  195.591.
* * * * *
    (c) * * *
    (2) ASME/ANSI B31G-1991 (Reaffirmed 2004), ``Manual for Determining
the Remaining Strength of Corroded Pipelines,'' 2004, (ASME/ANSI B31G),
IBR approved for Sec. Sec.  195.452(h); 195.587; and 195.588(c).
* * * * *
    (d) American Society for Nondestructive Testing, P.O. Box 28518,
1711 Arlingate Lane, Columbus, OH 43228. https://asnt.org.
    (1) ANSI/ASNT ILI-PQ-2005(2010), ``In-line Inspection Personnel
Qualification and Certification'' reapproved October 11, 2010, (ANSI/
ASNT ILI-PQ), IBR approved for Sec.  195.591.
    (2) [Reserved]
* * * * *
    (g) * * *
    (3) NACE SP0102-2010, ``Standard Practice, Inline Inspection of
Pipelines'' revised March 13, 2010, (NACE SP0102), IBR approved for
Sec.  195.591.
    (4) NACE SP0204-2008, ``Standard Practice, Stress Corrosion
Cracking (SSC) Direct Assessment Methodology'' reaffirmed September 18,
2008, (NACE SP0204), IBR approved for Sec.  195.588(c).
* * * * *

    (i) * * *
    (1) AGA Pipeline Research Committee, Project PR-3-805 ``A Modified
Criterion for Evaluating the Remaining Strength of Corroded Pipe,''
December 22, 1989, (PR-3-805 (RSTRING)). IBR approved for Sec. Sec.
195.452(h); 195.587; and 195.588(c).
* * * * *

0
21. In Sec.  195.5, paragraph (d) is added to read as follows:

Sec.  195.5  Conversion to service subject to this part.

* * * * *
    (d) An operator converting a pipeline from service not previously
covered by this part must notify PHMSA 60 days before the conversion
occurs as required by Sec.  195.64.

0
22. In Sec.  195.52, paragraph (a) introductory text and paragraph (d)
are revised to read as follows:

Sec.  195.52  Immediate notice of certain accidents.

    (a) Notice requirements. At the earliest practicable moment
following discovery, of a release of the hazardous liquid or carbon
dioxide transported resulting in an event described in Sec.  195.50,
but no later than one hour after confirmed discovery, the operator of
the system must give notice, in accordance with paragraph (b) of this
section of any failure that:
* * * * *
    (d) New information. Within 48 hours after the confirmed discovery
of an accident, to the extent practicable, an operator must revise or
confirm its initial telephonic notice required in paragraph (b) of this
section with a revised estimate of the amount of product released,
location of the failure, time of the failure, a revised estimate of the
number of fatalities and injuries, and all other significant facts that
are known by the operator that are relevant to the cause of the
accident or extent of the damages. If there are no changes or revisions
to the initial report, the operator must confirm the estimates in its
initial report.

Sec.  195.64  [Amended]

0
23. In Sec.  195.64, in paragraph (a), the term ``hazardous liquid'' is
removed and replaced with the term ``hazardous liquid or carbon
dioxide'' in the first sentence.

0
24. In Sec.  195.64, paragraph (c)(1)(ii) is revised and paragraphs
(c)(1)(iii) and (iv) are added to read as follows:

Sec.  195.64  National Registry of Pipeline and LNG operators

* * * * *
    (c) * * *
    (1) * * *
    (ii) Construction of 10 or more miles of a new or replacement
hazardous liquid or carbon dioxide pipeline;
    (iii) Reversal of product flow direction when the reversal is
expected to last more than 30 days. This notification is not required
for pipeline systems already designed for bi-directional flow; or
    (iv) A pipeline converted for service under Sec.  195.5, or a
change in commodity as reported on the annual report as required by
Sec.  195.49.
* * * * *

0
25. In Sec.  195.120, the section heading and paragraph (a) are revised
to read as follows:

Sec.  195.120  Passage of In-Line Inspection tools.

    (a) Except as provided in paragraphs (b) and (c) of this section,
each new pipeline and each replacement of line pipe, valve, fitting, or
other line component in a pipeline must be designed and constructed to
accommodate the passage of an In-Line Inspection tool, in accordance
with NACE SP0102-2010, Section 7 (incorporated by reference, see Sec.
195.3).
* * * * *

0
26. In Sec.  195.214, paragraph (a) is revised to read as follows:

Sec.  195.214  Welding procedures.

    (a) Welding must be performed by a qualified welder or welding
operator in accordance with welding procedures qualified under section
5, section 12, Appendix A or Appendix B of API Std 1104 (incorporated
by reference, see Sec.  195.3), or Section IX of the ASME Boiler and
Pressure Vessel Code (ASME BPVC) (incorporated by reference, see Sec.
195.3). The quality of the test welds used to qualify the welding
procedures must be determined by destructive testing.
* * * * *

0
27. In Sec.  195.222, paragraph (a) is revised to read as follows:

Sec.  195.222  Welders and welding operators: Qualification of welders
and welding operators.

    (a) Each welder or welding operator must be qualified in accordance
with section 6, section 12, Appendix A or Appendix B of API Std 1104
(incorporated by reference, see Sec.  195.3), or section IX of the ASME
Boiler and Pressure Vessel Code (ASME BPVC), (incorporated by
reference, see Sec.  195.3) except that a welder or welding operator
qualified under an earlier edition than listed in Sec.  195.3, may weld
but may not requalify under that earlier edition.
* * * * *

Sec.  195.248  [Amended]

0
28. In Sec.  195.248, the phrase ``100 feet (30 millimeters)'' is
removed and ``100 feet (30.5 meters)'' is added in its place in the
table to paragraph (a).

0
29. In Sec.  195.446, revise paragraphs (b)(3) and (4), add paragraph
(b)(5), revise paragraphs (h)(4) and (5), and add paragraph (h)(6) to
read as follows:

Sec.  195.446  Control room management.

* * * * *
    (b) * * *
    (3) A controller's role during an emergency, even if the controller
is not the first to detect the emergency, including the controller's
responsibility to take specific actions and to communicate with others;
    (4) A method of recording controller shift-changes and any hand-
over of responsibility between controllers; and
    (5) The roles, responsibilities and qualifications of others who
have the authority to direct or supersede the specific technical
actions of controllers.
* * * * *
    (h) * * *
    (4) Training that will provide a controller a working knowledge of
the pipeline system, especially during the development of abnormal
operating conditions;
    (5) For pipeline operating setups that are periodically, but
infrequently used, providing an opportunity for controllers to review
relevant procedures in advance of their application; and
    (6) Control room team training and exercises that include both
controllers and other individuals, defined by the operator, who would
reasonably be expected to operationally collaborate with controllers
(control room personnel) during normal, abnormal or emergency
situations. Operators must comply with the team training requirements
under this paragraph no later than January 23, 2018.
* * * * *

0
30. In Sec.  195.452, paragraph (a)(4) is added and paragraphs
(c)(1)(i)(A) and (j)(5)(i) are revised to read as follows:

Sec.  195.452  Pipeline integrity management in high consequence areas.

    (a) * * *
    (4) Low stress pipelines as specified in Sec.  195.12.
* * * * *
    (c) * * *
    (1) * * *
    (i) * * *
    (A) In-Line Inspection tool or tools capable of detecting corrosion
and deformation anomalies, including dents, gouges, and grooves. For
pipeline segments that are susceptible to cracks

(pipe body and weld seams), an operator must use an in-line inspection
tool or tools capable of detecting crack anomalies. When performing an
assessment using an In-Line Inspection Tool, an operator must comply
with Sec.  195.591;
* * * * *
    (j) * * *
    (5) * * *
    (i) In-Line Inspection tool or tools capable of detecting corrosion
and deformation anomalies, including dents, gouges, and grooves. For
pipeline segments that are susceptible to cracks (pipe body and weld
seams), an operator must use an in-line inspection tool or tools
capable of detecting crack anomalies. When performing an assessment
using an In-Line Inspection tool, an operator must comply with Sec.
195.591;
* * * * *

0
31. In Sec.  195.588, paragraph (a) is revised and paragraph (c) is
added to read as follows:

Sec.  195.588  What standards apply to direct assessment?

    (a) If you use direct assessment on an onshore pipeline to evaluate
the effects of external corrosion or stress corrosion cracking, you
must follow the requirements of this section. This section does not
apply to methods associated with direct assessment, such as close
interval surveys, voltage gradient surveys, or examination of exposed
pipelines, when used separately from the direct assessment process.
* * * * *
    (c) If you use direct assessment on an onshore pipeline to evaluate
the effects of stress corrosion cracking, you must develop and follow a
Stress Corrosion Cracking Direct Assessment plan that meets all
requirements and recommendations of NACE SP0204-2008 (incorporated by
reference, see Sec.  195.3) and that implements all four steps of the
Stress Corrosion Cracking Direct Assessment process including pre-
assessment, indirect inspection, detailed examination and post-
assessment. As specified in NACE SP0204-2008, Section 1.1.7, Stress
Corrosion Cracking Direct Assessment is complementary with other
inspection methods such as in-line inspection or hydrostatic testing
and is not necessarily an alternative or replacement for these methods
in all instances. In addition, the plan must provide for--
    (1) Data gathering and integration. An operator's plan must provide
for a systematic process to collect and evaluate data to identify
whether the conditions for stress corrosion cracking are present and to
prioritize the segments for assessment in accordance with NACE SP0204-
2008, Sections 3 and 4, and Table 1. This process must also include
gathering and evaluating data related to SCC at all sites an operator
excavates during the conduct of its pipeline operations (both within
and outside covered segments) where the criteria in NACE SP0204-2008
indicate the potential for Stress Corrosion Cracking Direct Assessment.
This data gathering process must be conducted in accordance with NACE
SP0204-2008, Section 5.3, and must include, at a minimum, all data
listed in NACE SP0204-2008, Table 2. Further, an operator must analyze
the following factors as part of this evaluation:
    (i) The effects of a carbonate-bicarbonate environment, including
the implications of any factors that promote the production of a
carbonate-bicarbonate environment such as soil temperature, moisture,
factors that affect the rate of carbon dioxide generation, and/or
cathodic protection.
    (ii) The effects of cyclic loading conditions on the susceptibility
and propagation of SCC in both high-pH and near-neutral-pH
environments.
    (iii) The effects of variations in applied cathodic protection such
as overprotection, cathodic protection loss for extended periods, and
high negative potentials.
    (iv) The effects of coatings that shield cathodic protection when
disbonded from the pipe.
    (v) Other factors that affect the mechanistic properties associated
with SCC including but not limited to operating pressures, high tensile
residual stresses, and the presence of sulfides.
    (2) Indirect inspection. In addition to the requirements and
recommendations of NACE SP0204-2008, Section 4, the plan's procedures
for indirect inspection must include provisions for conducting at least
two different, but complementary, indirect assessment electrical
surveys, and the basis on the selections as the most appropriate for
the pipeline segment based on the data gathering and integration step.
    (3) Direct examination. In addition to the requirements and
recommendations of NACE SP0204-2008, Section 5, the plan's procedures
for direct examination must provide for conducting a minimum of four
direct examinations within the SCC segment at locations determined to
be the most likely for SCC to occur.
    (4) Remediation and mitigation. If any indication of SCC is
discovered in a segment, an operator must mitigate the threat in
accordance with one of the following applicable methods:
    (i) Non-significant SCC, as defined by NACE SP0204-2008, may be
mitigated by either hydrostatic testing in accordance with paragraph
(b)(4)(ii) of this section, or by grinding out with verification by
Non-Destructive Examination (NDE) methods that the SCC defect is
removed and repairing the pipe. If grinding is used for repair, the
remaining strength of the pipe at the repair location must be
determined using ASME/ANSI B31G or RSTRENG (incorporated by reference,
see Sec.  195.3) and must be sufficient to meet the design requirements
of subpart C of this part.
    (ii) Significant SCC must be mitigated using a hydrostatic testing
program with a minimum test pressure between 100% up to 110% of the
specified minimum yield strength for a 30-minute spike test immediately
followed by a pressure test in accordance with subpart E of this part.
The test pressure for the entire sequence must be continuously
maintained for at least 8 hours, in accordance with subpart E of this
part. Any test failures due to SCC must be repaired by replacement of
the pipe segment, and the segment retested until the pipe passes the
complete test without leakage. Pipe segments that have SCC present, but
that pass the pressure test, may be repaired by grinding in accordance
with paragraph (c)(4)(i) of this section.
    (5) Post assessment. In addition to the requirements and
recommendations of NACE SP0204-2008, sections 6.3, periodic
reassessment, and 6.4, effectiveness of Stress Corrosion Cracking
Direct Assessment, the plan's procedures for post assessment must
include development of a reassessment plan based on the susceptibility
of the operator's pipe to Stress Corrosion Cracking as well as on the
behavior mechanism of identified cracking. Factors to be considered
include, but are not limited to:
    (i) Evaluation of discovered crack clusters during the direct
examination step in accordance with NACE SP0204-2008, sections <IP_ADDRESS>,
5.4, and 5.5;
    (ii) Conditions conducive to creation of the carbonate-bicarbonate
environment;
    (iii) Conditions in the application (or loss) of cathodic
protection that can create or exacerbate SCC;
    (iv) Operating temperature and pressure conditions;
    (v) Cyclic loading conditions;
    (vi) Conditions that influence crack initiation and growth rates;

    (vii) The effects of interacting crack clusters;
    (viii) The presence of sulfides; and
    (ix) Disbonded coatings that shield CP from the pipe.

0
32. Section 195.591 is added to read as follows:

Sec.  195.591  In-Line inspection of pipelines.

    When conducting in-line inspection of pipelines required by this
part, each operator must comply with the requirements and
recommendations of API Std 1163, Inline Inspection Systems
Qualification Standard; ANSI/ASNT ILI-PQ, Inline Inspection Personnel
Qualification and Certification; and NACE SP0102-2010, Inline
Inspection of Pipelines (incorporated by reference, see Sec.  195.3).
An in-line inspection may also be conducted using tethered or remote
control tools provided they generally comply with those sections of
NACE SP0102-2010 that are applicable.

PART 199--DRUG AND ALCOHOL TESTING

0
33. The authority citation for part 199 continues to read as follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60117, and
60118; 49 CFR 1.97.

0
34. In Sec.  199.105, paragraph (b) is revised to read as follows:

Sec.  199.105  Drug tests required.

* * * * *
    (b) Post-accident testing. (1) As soon as possible but no later
than 32 hours after an accident, an operator must drug test each
surviving covered employee whose performance of a covered function
either contributed to the accident or cannot be completely discounted
as a contributing factor to the accident. An operator may decide not to
test under this paragraph but such a decision must be based on specific
information that the covered employee's performance had no role in the
cause(s) or severity of the accident.
    (2) If a test required by this section is not administered within
the 32 hours following the accident, the operator must prepare and
maintain its decision stating the reasons why the test was not promptly
administered. If a test required by paragraph (b)(1) of this section is
not administered within 32 hours following the accident, the operator
must cease attempts to administer a drug test and must state in the
record the reasons for not administering the test.
* * * * *

0
35. In Sec.  199.117, paragraph (a)(5) is added to read as follows:

Sec.  199.117  Recordkeeping.

    (a) * * *
    (5) Records of decisions not to administer post-accident employee
drug tests must be kept for at least 3 years.
* * * * *

0
36. In Sec.  199.119, paragraphs (a) and (b) are revised to read as
follows:

Sec.  199.119  Reporting of anti-drug testing results.

    (a) Each large operator (having more than 50 covered employees)
must submit an annual Management Information System (MIS) report to
PHMSA of its anti-drug testing using the MIS form and instructions as
required by 49 CFR part 40 (at Sec.  40.26 and appendix H to part 40),
not later than March 15 of each year for the prior calendar year
(January 1 through December 31). The Administrator may require by
notice in the PHMSA Portal (https://portal.phmsa.dot.gov/phmsaportallanding) that small operators (50 or fewer covered
employees), not otherwise required to submit annual MIS reports, to
prepare and submit such reports to PHMSA.
    (b) Each report required under this section must be submitted
electronically at http://damis.dot.gov. An operator may obtain the user
name and password needed for electronic reporting from the PHMSA Portal
(https://portal.phmsa.dot.gov/phmsaportallanding). If electronic
reporting imposes an undue burden and hardship, the operator may submit
a written request for an alternative reporting method to the
Information Resources Manager, Office of Pipeline Safety, Pipeline and
Hazardous Materials Safety Administration, 1200 New Jersey Avenue SE.,
Washington, DC 20590. The request must describe the undue burden and
hardship. PHMSA will review the request and may authorize, in writing,
an alternative reporting method. An authorization will state the period
for which it is valid, which may be indefinite. An operator must
contact PHMSA at<PHONE_NUMBER>, or electronically to
<EMAIL_ADDRESS>to make arrangements for submitting
a report that is due after a request for alternative reporting is
submitted but before an authorization or denial is received.
* * * * *

0
37. In Sec.  199.225, the introductory text and paragraph (a)(1) are
revised to read as follows:

Sec.  199.225  Alcohol tests required.

    Each operator must conduct the following types of alcohol tests for
the presence of alcohol:
    (a) * * *
    (1) As soon as practicable following an accident, each operator
must test each surviving covered employee for alcohol if that
employee's performance of a covered function either contributed to the
accident or cannot be completely discounted as a contributing factor to
the accident. The decision not to administer a test under this section
must be based on specific information that the covered employee's
performance had no role in the cause(s) or severity of the accident.
* * * * *

0
38. In Sec.  199.227, paragraph (b)(4) is added to read as follows:

Sec.  199.227  Retention of records.

* * * * *
    (b) * * *
    (4) Three years. Records of decisions not to administer post-
accident employee alcohol tests must be kept for a minimum of three
years.
* * * * *

0
39. In Sec.  199.229, paragraphs (a) and (c) are revised as follows:

Sec.  199.229  Reporting of alcohol testing results.

    (a) Each large operator (having more than 50 covered employees)
must submit an annual MIS report to PHMSA of its alcohol testing
results using the MIS form and instructions as required by 49 CFR part
40 (at Sec.  40.26 and appendix H to part 40), not later than March 15
of each year for the prior calendar year (January 1 through December
31). The Administrator may require by notice in the PHMSA Portal
(https://portal.phmsa.dot.gov/phmsaportallanding) that small operators
(50 or fewer covered employees), not otherwise required to submit
annual MIS reports, to prepare and submit such reports to PHMSA.
* * * * *
    (c) Each report required under this section must be submitted
electronically at http://damis.dot.gov. An operator may obtain the user
name and password needed for electronic reporting from the PHMSA Portal
(https://portal.phmsa.dot.gov/phmsaportallanding). If electronic
reporting imposes an undue burden and hardship, the operator may submit
a written request for an alternative reporting method to the
Information Resources Manager, Office of Pipeline Safety, Pipeline and
Hazardous Materials Safety Administration, 1200 New Jersey Avenue SE.,
Washington, DC 20590. The request must describe the undue burden and
hardship. PHMSA will review the request and may authorize, in writing,
an alternative

reporting method. An authorization will state the period for which it
is valid, which may be indefinite. An operator must contact PHMSA at
202-366-8075, or electronically to<EMAIL_ADDRESS>to make arrangements for submitting a report that is due after a
request for alternative reporting is submitted but before an
authorization or denial is received.
* * * * *

    Issued in Washington, DC, on December 22, 2016, under authority
delegated in 49 CFR Part 1.97.
Marie Therese Dominguez,
Administrator.
[FR Doc. 2016-31461 Filed 1-19-17; 8:45 am]
BILLING CODE 4910-60-P