H.R. 9338: Pipeline Safety Authorization Act of 2026

This bill would reauthorize and update federal pipeline safety law for the next several years. In plain terms, it would:

• Clarify which pipeline systems are covered by federal safety rules. It would exclude some gas gathering lines in rural areas and some short transfer lines used directly by industrial facilities, as long as they fit the bill’s definitions.
• Change how federal regulators weigh safety decisions. When the government considers pipeline safety standards, the bill would require more emphasis on safety and economic benefits within the United States and costs within the United States.
• Expand formal hearing rights in some enforcement cases. If a notice of probable violation is issued and the company can reasonably show that compliance costs would exceed $125,000, or the proposed penalty is at least $125,000, the respondent would get access to a formal hearing process.
• Require public hearing procedures. The Transportation Secretary would have to publish rules for public hearings within one year, including steps to protect confidential information.
• Update the special permit process. For waivers from certain pipeline safety standards, the Secretary could only impose terms tied to known safety risks related to the waiver. The bill also would require public notice in the Federal Register for permit applications and would require reviews to be completed within 18 months after notice is published.
• Increase reporting to Congress on special permits. Federal agencies would have to report details on permit applications, their status, decisions, and any delays beyond the review deadline, and GAO would later review how the program is being implemented.
• Broaden penalties for pipeline-related property damage and interference. It would expand the offense to include impairing pipeline operations, and would add damage to pipeline facilities under construction.
• Authorize funding for pipeline safety programs. It would set funding levels for pipeline safety activities for fiscal years 2027 through 2031, including money for grants, gas and hazardous liquid pipeline safety programs, underground natural gas storage safety, and related oversight.
• Create a confidential voluntary information-sharing system. The bill would direct the federal government to establish a system where pipeline operators and other stakeholders can voluntarily share safety data, lessons learned, and risk information. The system would be designed to keep nonpublic information confidential, bar its use in most enforcement or litigation contexts, and allow only deidentified information to be shared publicly in limited circumstances.
• Strengthen excavation damage prevention rules. States receiving federal damage-prevention grants would have to adopt specified “leading practices,” such as tighter ticket rules, limits on exemptions, white lining requirements, positive response systems, better marking of underground lines and laterals, training requirements, and use of newer locating technologies.
• Require more reporting on excavation damage. The Secretary would have to report to Congress on how states are adopting those practices and on the rate of underground facility damage per one-call ticket.
• Raise civil penalties. The maximum civil penalties for certain pipeline safety violations would increase from $200,000 to $341,200 per violation, and from $2,000,000 to $3,412,000 for related maximums where applicable.
• Adjust how pipeline safety user fees are handled. Certain fee revenues would remain available in the Pipeline Safety Fund until spent.

Relevant Companies

• KMI — Kinder Morgan operates extensive natural gas, products, and CO2 pipeline networks that would be subject to federal pipeline safety rules, enforcement, and permit processes.
• WMB — Williams Companies operates major natural gas pipelines and could be affected by changes to safety standards, reporting, penalties, and special permits.
• EPD — Enterprise Products Partners operates large pipeline and storage assets, including hazardous liquid and gas systems, which could be impacted by the bill’s safety and enforcement provisions.
• TRP — TC Energy operates cross-border and U.S. pipelines that would be affected by U.S. pipeline safety regulation, permit review, and penalty changes.
• ET — Energy Transfer operates extensive U.S. pipeline infrastructure and could be affected by expanded safety requirements and higher penalties.
• OKE — ONEOK operates natural gas gathering and transmission assets that may be affected by the bill’s coverage definitions, safety standards, and enforcement rules.
• SLB — SLB provides pipeline inspection and related services and could benefit indirectly from increased compliance, monitoring, and data-sharing activity.
• BKR — Baker Hughes supplies energy infrastructure and related technology, including equipment and services that may be used in pipeline safety, inspection, and monitoring.