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| PRIOR PRINTER'S NOS. 303, 548, 710 | PRINTER'S NO. 981 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BAKER, ALLOWAY, ERICKSON, FERLO, FONTANA, KASUNIC, MENSCH, PIPPY, RAFFERTY, SCARNATI, SOLOBAY, TOMLINSON, M. WHITE, YUDICHAK, PILEGGI, BOSCOLA AND WASHINGTON, JANUARY 28, 2011 |
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| AS AMENDED ON THIRD CONSIDERATION, APRIL 5, 2011 |
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| AN ACT |
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1 | Providing for gas and hazardous liquids pipelines and for powers |
2 | and duties of the Pennsylvania Public Utility Commission; and |
3 | imposing civil penalties. |
4 | The General Assembly of the Commonwealth of Pennsylvania |
5 | hereby enacts as follows: |
6 | CHAPTER 1 |
7 | PRELIMINARY PROVISIONS |
8 | Section 101. Short title. |
9 | This act shall be known and may be cited as the Gas and |
10 | Hazardous Liquids Pipelines Act. |
11 | Section 102. Definitions. |
12 | The following words and phrases when used in this act shall |
13 | have the meanings given to them in this section unless the |
14 | context clearly indicates otherwise: |
15 | "Commission." The Pennsylvania Public Utility Commission. |
16 | "Federal pipeline safety laws." The provisions of 49 U.S.C. |
17 | Ch. 601 (relating to safety), the Hazardous Liquid Pipeline |
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1 | Safety Act of 1979 (Public Law 96-129, 93 Stat. 989), the |
2 | Pipeline Safety Improvement Act of 2002 (Public Law 107-355, 116 |
3 | Stat. 2985) and the regulations promulgated under the acts. |
4 | "Gas." Natural gas, liquefied natural gas, landfill gas, |
5 | synthetic natural gas and other gas as defined under the Federal |
6 | pipeline safety laws. |
7 | "Hazardous liquid." Petroleum, a petroleum product, |
8 | anhydrous ammonia and other hazardous liquid as defined under |
9 | the Federal pipeline safety laws. |
10 | "Person." An individual, firm, joint venture, partnership, |
11 | corporation, association, municipality, cooperative association |
12 | or joint stock association, including any trustee, receiver, |
13 | assignee or personal representative thereof. The term does not |
14 | include a public utility. |
15 | "Pipeline." A part of the physical facilities through which |
16 | gas or hazardous liquids move in transportation, including a |
17 | pipe valve and other appurtenance attached to the pipe, |
18 | compressor unit, metering station, regulator station, delivery |
19 | station, holder and fabricated assembly. The term only includes |
20 | pipeline regulated by Federal pipeline safety laws. The term |
21 | does not include a pipeline subject to the exclusive |
22 | jurisdiction of the Federal Energy Regulatory Commission. |
23 | "Pipeline facility." A new or existing pipeline, right-of- |
24 | way and any equipment, facility or building used in the |
25 | transportation of gas or hazardous liquids or in the treatment |
26 | of gas or hazardous liquids during the course of transportation. |
27 | The term does not include a pipeline facility subject to the |
28 | exclusive jurisdiction of the Federal Energy Regulatory |
29 | Commission. |
30 | "Pipeline operator." A person that owns or operates |
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1 | equipment or facilities in this Commonwealth for the |
2 | transportation of gas or hazardous liquids by pipeline or |
3 | pipeline facility regulated under Federal pipeline safety laws. |
4 | The term does not include a public utility or an ultimate |
5 | consumer who owns a service line on his real property. |
6 | "Public utility." The term shall mean: |
7 | (1) A public utility as defined in 66 Pa.C.S. § 102 |
8 | (relating to definitions). |
9 | (2) A city natural gas distribution operation as defined |
10 | in 66 Pa.C.S. § 102. |
11 | "Transportation of gas." The gathering, transmission or |
12 | distribution of gas by pipeline or the storage of gas. |
13 | "Transportation of hazardous liquids." The gathering, |
14 | transmission or distribution of hazardous liquids by pipeline. |
15 | "Unconventional well." A borehole drilled or being drilled | <-- |
16 | for the purpose of or to be used for producing oil or gas from a |
17 | geological formation existing below the base of the Elk |
18 | Sandstone or its geologic equivalent stratigraphic interval |
19 | where oil or gas generally cannot be produced at economic flow |
20 | rates or in economic volumes except: by wells stimulated by |
21 | hydraulic fracture treatments, by a horizontal well bore or by |
22 | using multilateral well bores or other techniques to expose more |
23 | of the formation of the well bore. |
24 | Section 103. Applicability. |
25 | The provisions of this act shall apply only to pipelines, |
26 | pipeline operators or pipeline facilities regulated under |
27 | Federal pipeline safety laws. |
28 | CHAPTER 3 |
29 | PIPELINE OPERATORS |
30 | Section 301. Registry of pipeline operators. |
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1 | (a) Registry.--The commission shall establish and maintain a |
2 | registry of all pipeline operators. |
3 | (b) Application.--The commission may develop an application |
4 | for registration under subsection (a) and may charge a |
5 | reasonable registration fee and annual renewal fee. |
6 | (c) Registration with commission.-- |
7 | (1) A pipeline operator shall register with the |
8 | commission. |
9 | (2) Failure to register shall subject the pipeline |
10 | operator to a civil penalty under section 502. |
11 | (d) Exemptions.--No application or registration fee shall be | <-- |
12 | (3) The operator of a pipeline in a Class 1 location | <-- |
13 | that collects or transports gas from an unconventional well |
14 | shall report the location of the pipeline by class location |
15 | and approximate aggregate miles for inclusion in the |
16 | commission's registry. |
17 | (d) Exemptions.-- |
18 | (1) No application or registration fee shall be required |
19 | of a petroleum gas distributor who is registered under the |
20 | act of June 19, 2002 (P.L.421, No.61), known as the Propane |
21 | and Liquefied Petroleum Gas Act, and provides proof of |
22 | registration to the commission. It shall be the | <-- |
23 | responsibility of the commission to verify registrations of |
24 | petroleum gas distributors with the Department of Labor and |
25 | Industry before requiring a petroleum gas distributor to |
26 | register under this section. This exemption shall not apply |
27 | to assessments. |
28 | (2) The commission shall verify registrations of | <-- |
29 | petroleum gas distributors within the Department of Labor and |
30 | Industry before requiring a petroleum gas distributor to |
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1 | register under this section. |
2 | (3) No registration fee or annual renewal registration |
3 | fee shall be required of a borough. |
4 | Section 302. Adoption of Federal pipeline safety laws. |
5 | (a) General rule.--The safety standards and regulations for |
6 | pipeline operators shall be those issued under the Federal |
7 | pipeline safety laws as implemented in 49 CFR Subtitle B Ch. 1 |
8 | Subch. D (relating to pipeline safety). |
9 | (b) Amendments to Federal law.-- |
10 | (1) Amendments to Federal pipeline safety laws shall |
11 | have the effect of amending or modifying the safety standards |
12 | and regulations for the transportation of gas and hazardous |
13 | liquids in this Commonwealth. |
14 | (2) An amendment or modification under paragraph (1) |
15 | shall take effect 60 days after its effective date. |
16 | CHAPTER 5 |
17 | COMMISSION AUTHORITY AND ENFORCEMENT |
18 | Section 501. General powers of commission. |
19 | (a) Commission authority.--The commission shall have general |
20 | administrative authority to supervise and regulate pipeline |
21 | operators within this Commonwealth consistent with Federal |
22 | pipeline safety laws. The commission may adopt regulations, |
23 | consistent with the Federal pipeline safety laws, as may be |
24 | necessary or proper in the exercise of its powers and perform |
25 | its duties under this act. The regulations shall not be |
26 | inconsistent with or greater or more stringent than the minimum |
27 | standards and regulations adopted under the Federal pipeline |
28 | safety law. The commission shall have the following duties: |
29 | (1) To investigate a service, act, practice, policy or |
30 | omission by a pipeline operator to determine compliance with |
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1 | this act. |
2 | (2) To investigate a pipeline transportation facility to |
3 | determine if it is hazardous to life or property. |
4 | (3) To investigate the existence or report of a safety- |
5 | related condition that involves a pipeline transportation |
6 | facility. |
7 | (4) To enter into contracts or agreements with the |
8 | United States Department of Transportation to inspect |
9 | intrastate or interstate transmission facilities. |
10 | (5) Accept grants-in-aid, cash and reimbursements made |
11 | available to the Commonwealth by the Federal Government to |
12 | implement Federal pipeline safety laws or other Federal law. |
13 | (6) To advise, consult and cooperate with the Federal |
14 | Government, other states and other agencies as may be |
15 | necessary to carry out the purposes of this act. |
16 | (7) To enforce the Federal pipeline safety laws and, |
17 | after notice and opportunity for a hearing, impose civil |
18 | penalties and fines and take other appropriate enforcement |
19 | action. |
20 | (8) For purposes of petroleum gas, the commission's |
21 | jurisdiction under this act shall be limited to those |
22 | petroleum gas systems that are the following: |
23 | (i) Subject to the Federal pipeline safety laws. |
24 | (ii) Not a public utility. |
25 | (b) Compliance.--Each pipeline operator, its officers, |
26 | agents and employees, and other persons subject to this act, or |
27 | to an order of the commission, or a court under this act, shall |
28 | observe, obey and comply with this act and the terms and |
29 | conditions of the orders issued hereunder. |
30 | Section 502. Civil penalties. |
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1 | (a) Violations.--Any pipeline operator who violates this act |
2 | shall be subject to a penalty provided under the Federal |
3 | pipeline safety laws or 66 Pa.C.S. § 3301(c) (relating to civil |
4 | penalties for violations), whichever is greater. |
5 | (b) Disposition of fines and penalties.--Fines imposed and |
6 | civil penalties recovered under this act shall be paid to the |
7 | commission. The funds received by the commission under this |
8 | subsection shall be paid into the State Treasury, through the |
9 | Department of Revenue, to the credit of the General Fund. |
10 | Section 503. Assessments. |
11 | (a) Duty to determine.--The commission shall by regulation |
12 | or order determine the assessments of pipeline operators in |
13 | accordance with this section. |
14 | (b) Assessments.-- |
15 | (1) The commission shall determine an appropriate annual |
16 | assessment based on intrastate regulated transmission, |
17 | regulated distribution and regulated onshore gathering |
18 | pipeline miles. The assessment shall be adjusted to collect |
19 | the commission's total costs of the pipeline operators' |
20 | portion, excluding the costs otherwise reimbursed by the |
21 | Federal Government, of: |
22 | (i) The gas pipeline safety program, plus a |
23 | reasonable allocation of indirect costs. |
24 | (ii) The hazardous liquids pipeline safety program. |
25 | (2) The assessment shall be paid by pipeline operators |
26 | and shall not be applicable to natural gas public utilities. |
27 | (3) The assessment under this subsection shall not apply | <-- |
28 | to boroughs. |
29 | (c) Time for payment.--The assessment shall be due and |
30 | payable within 30 days from the notice of amount due from the |
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1 | commission. The amount of the assessment may be challenged by a |
2 | pipeline operator consistent with the provisions of 66 Pa.C.S. § |
3 | 510(c), (d) and (e) (relating to assessment for regulatory |
4 | expenses upon public utilities). |
5 | (d) Reporting of miles.--Each Following the submission of | <-- |
6 | the original application, each pipeline operator shall, on or |
7 | before March 31 of each calendar year, report to the commission |
8 | its total intrastate regulated transmission, regulated |
9 | distribution and regulated onshore gathering pipeline miles in |
10 | operation for the transportation of gas and hazardous liquids in |
11 | this Commonwealth during the prior calendar year. |
12 | (e) Maintenance information.--The commission shall maintain | <-- |
13 | any information received regarding a pipeline located in Class 1 |
14 | under 49 CFR 192.5(b)(1) (relating to class locations) in a |
15 | separate registry. |
16 | (e) (f) Estimated fees.--The estimated fees to be collected | <-- |
17 | under this section for each fiscal year shall be subtracted from |
18 | the final estimate of total expenditures used to calculate the |
19 | total assessment on public utilities under 66 Pa.C.S. § 510. |
20 | Section 504. Jurisdiction and authority of commission. |
21 | (a) Jurisdiction.--Nothing in this act shall give the |
22 | commission jurisdiction over any pipeline operator for purposes |
23 | of rates or ratemaking or any purpose other than those set forth |
24 | in this act. |
25 | (b) Landfill gas distribution systems.--The jurisdiction of |
26 | the commission over landfill gas distribution systems under this |
27 | act shall be limited to systems subject to Federal pipeline |
28 | safety laws. The commission shall not have jurisdiction over |
29 | operations and systems within the property boundary of the |
30 | landfill. |
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1 | (c) Authority.--Nothing in this act grants the commission |
2 | additional authority to determine or regulate a pipeline |
3 | operator as a public utility as defined in 66 Pa.C.S. § 102 |
4 | (relating to definitions) or as a natural gas supplier or |
5 | natural gas supply services as defined in 66 Pa.C.S. § 2202 |
6 | (relating to definitions). |
7 | CHAPTER 11 |
8 | MISCELLANEOUS PROVISIONS |
9 | Section 1101. Effective date. |
10 | This act shall take effect in 60 days. |
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