THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BAKER, ALLOWAY, ERICKSON, FERLO, FONTANA, KASUNIC, MENSCH, PIPPY, RAFFERTY, SCARNATI, SOLOBAY, TOMLINSON, M. WHITE, YUDICHAK, PILEGGI, BOSCOLA AND WASHINGTON, JANUARY 28, 2011

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, FEBRUARY 28, 2011   

AN ACT

Providing for gas and hazardous liquids pipelines and for powers

and duties of the Pennsylvania Public Utility Commission; and

imposing civil penalties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Gas and

Hazardous Liquids Pipelines Act.

Section 102.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Commission."  The Pennsylvania Public Utility Commission.

"Federal pipeline safety laws."  The provisions of 49 U.S.C.

Ch. 601 (relating to safety), the Hazardous Liquid Pipeline

Safety Act of 1979 (Public Law 96-129, 93 Stat. 989), the

Pipeline Safety Improvement Act of 2002 (Public Law 107-355, 116

Stat. 2985) and the regulations promulgated under the acts.

"Gas."  Natural gas, liquefied natural gas, landfill gas, 

synthetic natural gas and other gas as defined under the Federal

pipeline safety laws.

"Hazardous liquid."  Petroleum, a petroleum product,

anhydrous ammonia and other hazardous liquid as defined under

the Federal pipeline safety laws.

"Person."  An individual, firm, joint venture, partnership,

corporation, association, municipality, cooperative association

or joint stock association, including any trustee, receiver,

assignee or personal representative thereof. The term does not

include a public utility.

"Pipeline."  A part of the physical facilities through which

gas or hazardous liquids move in transportation, including a

pipe valve and other appurtenance attached to the pipe,

compressor unit, metering station, regulator station, delivery

station, holder and fabricated assembly. The term only includes

pipeline regulated by Federal pipeline safety laws. The term

does not include a pipeline subject to the exclusive

jurisdiction of the Federal Energy Regulatory Commission.

"Pipeline facility."  A new or existing pipeline, right-of-

way and any equipment, facility or building used in the

transportation of gas or hazardous liquids or in the treatment

of gas or hazardous liquids during the course of transportation.

The term does not include a pipeline facility subject to the

exclusive jurisdiction of the Federal Energy Regulatory

Commission.

"Pipeline operator."  A person that owns or operates

equipment or facilities in this Commonwealth for the

transportation of gas or hazardous liquids by pipeline or

pipeline facility regulated under Federal pipeline safety laws.

The term does not include a public utility or an ultimate

consumer who owns a service line on his real property.

"Public utility."   The term shall mean:

(1)  A public utility as defined in 66 Pa.C.S. § 102

(relating to definitions).

(2)  A city natural gas distribution operation as defined

in 66 Pa.C.S. § 102.

"Transportation of gas."  The gathering, transmission or

distribution of gas by pipeline or the storage of gas.

"Transportation of hazardous liquids."  The gathering,

transmission or distribution of hazardous liquids by pipeline.

Section 103.  Applicability.

The provisions of this act shall apply only to pipelines,

pipeline operators or pipeline facilities regulated under

Federal pipeline safety laws.

CHAPTER 3

PIPELINE OPERATORS

Section 301.  Registry of pipeline operators.

(a)  Registry.--The commission shall establish and maintain a

registry of all pipeline operators.

(b)  Application.--The commission may develop an application

for registration under subsection (a) and may charge a

reasonable registration fee and annual renewal fee.

(c)  Registration with commission.--

(1)  A pipeline operator shall register with the

commission.

(2)  Failure to register shall subject the pipeline

operator to a civil penalty under section 502.

(d)  Exemptions.--No application or registration fee shall be

required of a petroleum gas distributor who is registered under

the act of June 19, 2002 (P.L.421, No.61), known as the Propane

and Liquefied Petroleum Gas Act, and provides proof of

registration to the commission. It shall be the responsibility

of the commission to verify registrations of petroleum gas

distributors with the Department of Labor and Industry before

requiring a petroleum gas distributor to register under this

section. This exemption shall not apply to assessments.

Section 302.  Adoption of Federal pipeline safety laws.

(a)  General rule.--The safety standards and regulations for

pipeline operators shall be those issued under the Federal

pipeline safety laws as implemented in 49 CFR Subtitle B Ch. 1

Subch. D (relating to pipeline safety).

(b)  Amendments to Federal law.--

(1)  Amendments to Federal pipeline safety laws shall

have the effect of amending or modifying the safety standards

and regulations for the transportation of gas and hazardous

liquids in this Commonwealth.

(2)  An amendment or modification under paragraph (1)

shall take effect 60 days after its effective date.

CHAPTER 5

COMMISSION AUTHORITY AND ENFORCEMENT

Section 501.  General powers of commission.

(a)  Commission authority.--The commission shall have general

administrative authority to supervise and regulate pipeline

operators within this Commonwealth consistent with Federal

pipeline safety laws. The commission may adopt regulations,

consistent with the Federal pipeline safety laws, as may be

necessary or proper in the exercise of its powers and perform

its duties under this act. The regulations shall not be

inconsistent with or greater or more stringent than the minimum

standards and regulations adopted under the Federal pipeline

safety law. The commission shall have the following duties:

(1)  To investigate a service, act, practice, policy or

omission by a pipeline operator to determine compliance with

this act.

(2)  To investigate a pipeline transportation facility to

determine if it is hazardous to life or property.

(3)  To investigate the existence or report of a safety-

related condition that involves a pipeline transportation

facility.

(4)  To enter into contracts or agreements with the

United States Department of Transportation to inspect

intrastate or interstate transmission facilities.

(5)  Accept grants-in-aid, cash and reimbursements made

available to the Commonwealth by the Federal Government to

implement Federal pipeline safety laws or other Federal law.

(6)  To advise, consult and cooperate with the Federal

Government, other states and other agencies as may be

necessary to carry out the purposes of this act.

(7)  To enforce the Federal pipeline safety laws and,

after notice and opportunity for a hearing, impose civil

penalties and fines and take other appropriate enforcement

action.

(8)  For purposes of petroleum gas, the commission's

jurisdiction under this act shall be limited to those

petroleum gas systems that are the following:

(i)  Subject to the Federal pipeline safety laws.

(ii)  Not a public utility.

(b)  Compliance.--Each pipeline operator, its officers,

agents and employees, and other persons subject to this act, or

to an order of the commission, or a court under this act, shall

observe, obey and comply with this act and the terms and

conditions of the orders issued hereunder.

Section 502.  Civil penalties.

(a)  Violations.--Any pipeline operator who violates this act

shall be subject to a penalty provided under the Federal

pipeline safety laws or 66 Pa.C.S. § 3301(c) (relating to civil

penalties for violations), whichever is greater.

(b)  Disposition of fines and penalties.--Fines imposed and

civil penalties recovered under this act shall be paid to the

commission. The funds received by the commission under this

subsection shall be paid into the State Treasury, through the

Department of Revenue, to the credit of the General Fund.

Section 503.  Assessments.

(a)  Duty to determine.--The commission shall by regulation

or order determine the assessments of pipeline operators in

accordance with this section.

(b)  Assessments.--

(1)  The commission shall determine an appropriate annual

assessment based on intrastate regulated transmission,

regulated distribution and regulated onshore gathering

pipeline miles. The assessment shall be adjusted to collect

the commission's total costs of the pipeline operators'

portion, excluding the costs otherwise reimbursed by the

Federal Government, of:

(i)  The gas pipeline safety program, plus a

reasonable allocation of indirect costs.

(ii)  The hazardous liquids pipeline safety program.

(2)  The assessment shall be paid by pipeline operators

and shall not be applicable to natural gas public utilities.

(c)  Time for payment.--The assessment shall be due and

payable within 30 days from the notice of amount due from the

commission. The amount of the assessment may be challenged by a

pipeline operator consistent with the provisions of 66 Pa.C.S. §

510(c), (d) and (e) (relating to assessment for regulatory

expenses upon public utilities).

(d)  Reporting of miles.--Each Following the submission of

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the original application, each pipeline operator shall, on or

before March 31 of each calendar year, report to the commission

its total intrastate regulated transmission, regulated

distribution and regulated onshore gathering pipeline miles in

operation for the transportation of gas and hazardous liquids in

this Commonwealth during the prior calendar year.

(e)  Maintenance information.--The commission shall maintain

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any information received regarding a pipeline located in Class 1

under 49 CFR 192.5(b)(1) (relating to class locations) in a

separate registry.

(e) (f)  Estimated fees.--The estimated fees to be collected

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under this section for each fiscal year shall be subtracted from

the final estimate of total expenditures used to calculate the

total assessment on public utilities under 66 Pa.C.S. § 510.

Section 504.  Jurisdiction and authority of commission.

(a)  Jurisdiction.--Nothing in this act shall give the

commission jurisdiction over any pipeline operator for purposes

of rates or ratemaking or any purpose other than those set forth

in this act.

(b)  Landfill gas distribution systems.--The jurisdiction of

the commission over landfill gas distribution systems under this

act shall be limited to systems subject to Federal pipeline

safety laws. The commission shall not have jurisdiction over

operations and systems within the property boundary of the

landfill.

(c)  Authority.--Nothing in this act grants the commission

additional authority to determine or regulate a pipeline

operator as a public utility as defined in 66 Pa.C.S. § 102

(relating to definitions) or as a natural gas supplier or

natural gas supply services as defined in 66 Pa.C.S. § 2202

(relating to definitions).

CHAPTER 11

MISCELLANEOUS PROVISIONS

Section 1101.  Effective date.

This act shall take effect in 60 days.