(PIPELINE SAFETY FUND)

(OIL SPILL LIABILITY TRUST FUND)

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                                    (Pipeline safety fund) (Oil spill liability trust fund) 

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Appropriation, fiscal year 200112              $36,556,000                       $7,488,000 

Budget estimate, fiscal year 2002               46,286,000                        7,472,000 

Recommended in the bill                         41,003,000                        7,472,000 

Bill compared with:                                                                         

  Appropriation, fiscal year 2001                4,447,000                          -16,000 

  Budget estimate, fiscal year 2002             -5,283,000                                  

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The pipeline safety program is responsible for a national regulatory program to protect the public against the risks to life and property in the transportation of natural gas, petroleum and other hazardous materials by pipeline. The enactment of the Oil Pollution Act of 1990 also expanded the role of the pipeline safety program in environmental protection and resulted in a new emphasis on spill prevention and containment of oil and hazardous substances from pipelines. The office develops and enforces federal safety regulations and administers a grants-in-aid program to state pipeline programs.

The bill includes $48,475,000 to continue pipeline safety operations, research and development, and state grants-in-aid in fiscal year 2002. This is 3 percent above the level enacted for fiscal year 2001. The bill specifies that of the total appropriation, $7,472,000 shall be derived from the oil spill liability trust fund and $41,003,000 shall be from the pipeline safety fund.

The Committee recommends the following changes to the budget request:

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Reduce funding for six new positions                      -$405,300 

Reduce funding for integrity management program          -4,943,000 

Increase funding consistent with a 4.6 percent pay raise    +65,000 

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New positions.--The budget requested 26 new positions to support a new community based program and to support the new integrity management program. The Committee has provided funding for 20 new personnel. The Committee remains concerned that none of the four new pipeline positions approved last year have been filled and encourages RSPA to fill these vacancies as well as the new positions expeditiously.

Interstate oversight grant program and damage prevention and public education- RSPA has included in its base $5,000,000 from the damage prevention grants program, which expires at the end of fiscal year 2001. RSPA has allocated this funding to a new grant program and a new community outreach program. The Committee has provided funding for these two programs.

Integrity management program.--RSPA requested $4,943,000 for a new integrity management program to ensure that pipeline operators are complying with new integrity management requirements. This request would fund the development of protocols for the integrity management review process, train inspectors, and develop information systems for integrity management compliance reviews. Due to budget constraints, the Committee has denied funding for this program. However, the Committee allows RSPA to use up to $1,000,000 of the $3,413,000 (in non-grant funds) provided to the damage prevention community assistance program for activities related to the integrity management program. The Committee believes that since both the damage prevention community assistance program and the integrity management program of these initiatives are new or expanded, this funding level will be sufficient in 2002. The Committee directs RSPA to provide the House and Senate Committees on Appropriation a concise report by Feb. 1, 2002 on how the $3,413,000 for damage prevention and community assistance, and the $2,000,000 for interstate oversight grants were used and how these programs contributed to safety. The report should include specific examples.

Pay raise.--The Committee has provided funding consistent with a 4.6 percent pay raise.

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