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Committee weighs bill to change how rail and pipeline safety assessments are allocated
Summary
Senate File 3161 would alter the split of assessments that fund railroad and pipeline safety programs following litigation claims by railroads. Industry representatives told the committee the current distribution has left pipeline fees directed largely to railroad-related activities; committee laid the bill on the table for possible omnibus inclu
Senate File 3161 drew testimony Monday on a proposal to change how assessments are allocated between railroad and pipeline operators to fund safety and training programs. The bill would revise portions of an existing assessment scheme so pipeline contributions fund pipeline-specific safety work rather than being redirected toward railroad-related programs, according to the bill sponsor.
Senator Kupek, sponsor of SF 3161, summarized the current statutory split: “Currently, it is a 70–30 split, between the railroads and the pipelines with the railroads paying 70% and the pipelines paying 30%.” He said lawsuits by two railroads (named in testimony as BNSF and CPKC) have complicated collections and that pipeline funds have been used “basically to pay for rail safety,” leaving pipelines’ contributions to be applied to matters outside their industry.
Dave Frazier, Midwest Region associate director for the American Petroleum Institute, testified in support of reassessing allocations. He said the oil and gas industry “supports these efforts to reevaluate the assessment.” Frazier described industry practices, including federally required PHMSA-approved spill response plans and voluntary training and exercises with state and local first responders. He said a federal Pipeline Emergency Response Grant Program exists and noted the program’s operators already provide training and free HAZMAT responder training to first responders in Minnesota.
Frazier told the committee the industry aims to operate “with 0 incidents” and cited technologies and reporting programs to improve safety. He also said pipeline operators have participated in exercises involving state, local, and tribal agencies and that some federal grant funding is available to support local training efforts. The industry representative said SF 3161 would address a fairness concern by ensuring pipeline assessments are used for pipeline-specific preparedness rather than paying primarily for railroad programs.
Senator Kupek said the proposal is intended to make assessment allocation fairer and to ensure each industry’s payments support its own preparedness needs. The committee laid Senate File 3161 on the table for possible inclusion in the omnibus; no roll-call vote was recorded in transcript.
