1Amending the act of December 22, 2011 (P.L.586, No.127),
2entitled "An act providing for gas and hazardous liquids 
3pipelines and for powers and duties of the Pennsylvania 
4Public Utility Commission; and imposing civil penalties," 
5replacing the Pennsylvania Public Utility Commission with the 
6Department of Transportation of the Commonwealth; and 
7providing for Federal delegation.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. The title of the act of December 22, 2011
11(P.L.586, No.127), known as the Gas and Hazardous Liquids
12Pipelines Act, is amended to read:

13An Act

14Providing for gas and hazardous liquids pipelines and for powers
15and duties of the [Pennsylvania Public Utility Commission]
16Department of Transportation; and imposing civil penalties.

17Section 2. Sections 102 and 301 of the act are amended to
18read:

19Section 102. Definitions.

20The following words and phrases when used in this act shall

1have the meanings given to them in this section unless the
2context clearly indicates otherwise:

3["Commission." The Pennsylvania Public Utility Commission.]

4"Department." The Department of Transportation of the
5Commonwealth.

6"Federal pipeline safety laws." The provisions of 49 U.S.C.
7Ch. 601 (relating to safety), the Hazardous Liquid Pipeline
8Safety Act of 1979 (Public Law 96-129, 93 Stat. 989), the
9Pipeline Safety Improvement Act of 2002 (Public Law 107-355, 116
10Stat. 2985) and the regulations promulgated under the acts.

11"Gas." Natural gas, liquefied natural gas, landfill gas,
12synthetic natural gas and other gas as defined under the Federal
13pipeline safety laws.

14"Hazardous liquids." Petroleum, a petroleum product,
15anhydrous ammonia and other hazardous liquids as defined under
16the Federal pipeline safety laws.

17"Person." An individual, firm, joint venture, partnership,
18corporation, association, municipality, cooperative association
19or joint stock association, including any trustee, receiver,
20assignee or personal representative thereof. The term does not
21include a public utility.

22"Pipeline." A part of the physical facilities through which
23gas or hazardous liquids move in transportation, including a
24pipe valve and other appurtenance attached to the pipe,
25compressor unit, metering station, regulator station, delivery
26station, holder and fabricated assembly. The term only includes
27pipeline regulated by Federal pipeline safety laws. The term
28does not include a pipeline subject to the exclusive
29jurisdiction of the Federal Energy Regulatory Commission.

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

1way and any equipment, facility or building used in the
2transportation of gas or hazardous liquids or in the treatment
3of gas or hazardous liquids during the course of transportation.
4The term does not include a pipeline facility subject to the
5exclusive jurisdiction of the Federal Energy Regulatory
6Commission.

7"Pipeline operator." A person that owns or operates
8equipment or facilities in this Commonwealth for the
9transportation of gas or hazardous liquids by pipeline or
10pipeline facility regulated under Federal pipeline safety laws.
11The term does not include a public utility or an ultimate
12consumer who owns a service line on his real property.

13"Public utility." The term shall mean:

14(1) A public utility as defined in 66 Pa.C.S. § 102
15(relating to definitions).

16(2) A city natural gas distribution operation as defined
17in 66 Pa.C.S. § 102.

18"Transportation of gas." The gathering, transmission or
19distribution of gas by pipeline or the storage of gas.

20"Transportation of hazardous liquids." The gathering,
21transmission or distribution of hazardous liquids by pipeline.

22"Unconventional formation." A geological shale formation
23existing below the base of the Elk Sandstone or its geologic
24equivalent stratigraphic interval where natural gas generally
25cannot be produced at economic flow rates or in economic volumes
26except by vertical or horizontal well bores stimulated by
27hydraulic fracture treatments or by using multilateral well
28bores or other techniques to expose more of the formation of the
29well bore.

30"Unconventional well." A borehole drilled or being drilled
 

1for the purpose of or to be used for the production of natural 
2gas from an unconventional formation.

3Section 301. Registry of pipeline operators.

4(a) Registry.--The [commission] department shall establish
5and maintain a registry of all pipeline operators.

6(b) Application.--The [commission] department may develop an
7application for registration under subsection (a) and may charge
8a reasonable registration fee and annual renewal fee.

9(c) Registration with [commission] department.--

10(1) A pipeline operator shall register with the
11[commission] department.

12(2) Failure to register shall subject the pipeline
13operator to a civil penalty under section 502.

14(3) The operator of a pipeline in a Class 1 location
15that collects or transports gas from an unconventional well
16shall report the location of the pipeline by class location
17and approximate aggregate miles for inclusion in the
18[commission's] department's registry.

19(d) Disclosure.--The [commission] department shall require
20each pipeline operator, regardless of class location, to
21disclose in its initial registration and in each annual renewal
22the country of manufacture for all tubular steel products used
23in the exploration, gathering or transportation of natural gas
24or hazardous liquids. The [commission] department may develop a
25disclosure form and require its use.

26(e) Exemptions.--

27(1) No application or registration fee shall be required
28of a petroleum gas distributor who is registered under the
29act of June 19, 2002 (P.L.421, No.61), known as the Propane
30and Liquefied Petroleum Gas Act, and provides proof of

1registration to the [commission] department.

2(2) The [commission] department shall verify
3registrations of petroleum gas distributors within the
4Department of Labor and Industry before requiring a petroleum
5gas distributor to register under this section.

6(3) No registration fee or annual renewal registration
7fee shall be required of a borough.

8Section 3. The heading of Chapter 5 of the act is amended to
9read:

10CHAPTER 5

11[COMMISSION] DEPARTMENT AUTHORITY AND ENFORCEMENT

12Section 4. Sections 501, 502, 503 and 504 of the act are
13amended to read:

14Section 501. General powers of [commission] department.

15(a) [Commission authority] Authority.--The [commission]
16department shall have general administrative authority to
17supervise and regulate pipeline operators within this
18Commonwealth consistent with Federal pipeline safety laws. The
19[commission] department may adopt regulations, consistent with
20the Federal pipeline safety laws, as may be necessary or proper
21in the exercise of its powers and perform its duties under this
22act. The regulations shall not be inconsistent with or greater
23or more stringent than the minimum standards and regulations
24adopted under the Federal pipeline safety law. The [commission]
25department shall have the following duties:

26(1) To investigate a service, act, practice, policy or
27omission by a pipeline operator to determine compliance with
28this act.

29(2) To investigate a pipeline transportation facility to
30determine if it is hazardous to life or property.

1(3) To investigate the existence or report of a safety-
2related condition that involves a pipeline transportation
3facility.

4(4) To enter into contracts or agreements with the
5United States Department of Transportation to inspect
6intrastate or interstate transmission facilities.

7(5) Accept grants-in-aid, cash and reimbursements made
8available to the Commonwealth by the Federal Government to
9implement Federal pipeline safety laws or other Federal law.

10(6) To advise, consult and cooperate with the Federal
11Government, other states and other agencies as may be
12necessary to carry out the purposes of this act.

13(7) To enforce the Federal pipeline safety laws and,
14after notice and opportunity for a hearing, impose civil
15penalties and fines and take other appropriate enforcement
16action.

17(8) For purposes of petroleum gas, the [commission's]
18department's jurisdiction under this act shall be limited to
19those petroleum gas systems that are the following:

20(i) Subject to the Federal pipeline safety laws.

21(ii) Not a public utility.

22(b) Compliance.--Each pipeline operator, its officers,
23agents and employees, and other persons subject to this act, or
24to an order of the [commission] department, or a court under
25this act, shall observe, obey and comply with this act and the
26terms and conditions of the orders issued hereunder.

27Section 502. Civil penalties.

28(a) Violations.--Any pipeline operator who violates this act
29shall be subject to a penalty provided under the Federal
30pipeline safety laws or 66 Pa.C.S. § 3301(c) (relating to civil

1penalties for violations), whichever is greater.

2(b) Disposition of fines and penalties.--Fines imposed and
3civil penalties recovered under this act shall be paid to the
4[commission] department. The funds received by the [commission]
5department under this subsection shall be paid into the State
6Treasury, through the Department of Revenue, to the credit of
7the General Fund.

8Section 503. Assessments.

9(a) Duty to determine.--The [commission] department shall by
10regulation or order determine the assessments of pipeline
11operators in accordance with this section.

12(b) Assessments.--

13(1) The [commission] department shall determine an
14appropriate annual assessment based on intrastate regulated
15transmission, regulated distribution and regulated onshore
16gathering pipeline miles. The assessment shall be adjusted to
17collect the [commission's] department's total costs of the
18pipeline operators' portion, excluding the costs otherwise
19reimbursed by the Federal Government, of:

20(i) The gas pipeline safety program, plus a
21reasonable allocation of indirect costs.

22(ii) The hazardous liquids pipeline safety program.

23(2) The assessment shall be paid by pipeline operators
24and shall not be applicable to natural gas public utilities.

25(3) The assessment under this subsection shall not apply
26to boroughs.

27(c) Time for payment.--The assessment shall be due and
28payable within 30 days from the notice of amount due from the
29[commission] department. The amount of the assessment may be
30challenged by a pipeline operator consistent with the provisions

1of 66 Pa.C.S. § 510(c), (d) and (e) (relating to assessment for
2regulatory expenses upon public utilities).

3(d) Reporting of miles.--Following the submission of the
4original application, each pipeline operator shall, on or before
5March 31 of each calendar year, report to the [commission]
6department its total intrastate regulated transmission,
7regulated distribution and regulated onshore gathering pipeline
8miles in operation for the transportation of gas and hazardous
9liquids in this Commonwealth during the prior calendar year.

10(e) Estimated fees.--The estimated fees to be collected
11under this section for each fiscal year shall be subtracted from
12the final estimate of total expenditures used to calculate the
13total assessment on public utilities under 66 Pa.C.S. § 510.

14Section 504. Jurisdiction and authority of [commission]
15department.

16(a) Jurisdiction.--Nothing in this act shall give the
17[commission] department jurisdiction over any pipeline operator
18for purposes of rates or ratemaking or any purpose other than
19those set forth in this act.

20(b) Landfill gas distribution systems.--The jurisdiction of
21the [commission] department over landfill gas distribution
22systems under this act shall be limited to systems subject to
23Federal pipeline safety laws. The [commission] department shall
24not have jurisdiction over operations and systems within the
25property boundary of the landfill.

26(c) Authority.--Nothing in this act grants the [commission]
27department additional authority to determine or regulate a
28pipeline operator as a public utility as defined in 66 Pa.C.S. §
29102 (relating to definitions) or as a natural gas supplier or
30natural gas supply services as defined in 66 Pa.C.S. § 2202

1(relating to definitions).

2Section 5. The act is amended by adding a section to read:

3Section 505. Federal delegation.

4(a) Pipeline safety.--

5(1) The department shall apply for Federal delegation
6for Commonwealth pipeline safety for the purposes of
7enforcement of Federal hazardous liquid pipeline safety
8requirements. If the United States Secretary of
9Transportation delegates inspection authority to the
10Commonwealth as provided under this subsection, the
11department, at a minimum, shall do the following:

12(i) Inspect hazardous liquid pipelines periodically
13as specified in the inspection program.

14(ii) Collect fees.

15(iii) Order and oversee the testing of hazardous
16liquid pipelines as authorized by Federal law and
17regulation.

18(iv) File reports with the United States Secretary
19of Transportation as required to maintain the delegated
20authority.

21(2) The department shall seek Federal authority to adopt
22safety standards related to the monitoring and testing of
23interstate hazardous liquid pipelines.

24(3) Upon delegation under paragraph (1) or under a grant
25of authority under paragraph (2), to the extent authorized by
26Federal law, the department shall adopt rules for interstate
27pipelines that are no less stringent than the Commonwealth's
28laws for intrastate hazardous liquid pipelines.

29(b) Inspectors.--

30(1) The department shall seek and accept Federal

1delegation for the department's inspectors as Federal agents
2for the purposes of enforcement of Federal laws covering gas
3pipeline safety and associated Federal rules, in existence on
4the effective date of this section. The department shall
5establish and submit to the United States Secretary of
6Transportation an inspection program that complies with
7requirements for delegated interstate agent inspection
8authority. If the United States Secretary of Transportation
9delegates inspection authority to the Commonwealth as
10provided under this subsection, the department, at a minimum,
11shall do the following:

12(i) Inspect gas pipelines periodically as specified
13in the inspection program.

14(ii) Collect fees.

15(iii) Order and oversee the testing of gas pipelines
16as authorized by federal law and regulation.

17(iv) File reports with the United States Secretary
18of Transportation as required to maintain the delegated
19authority.

20(2) The department shall seek Federal authority to adopt
21safety standards related to the monitoring and testing of
22interstate gas pipelines.

23(3) Upon designation under paragraph (1) or under a
24grant of authority under paragraph (2), to the extent
25authorized by Federal law, the department shall adopt rules
26for interstate gas pipelines that are no less stringent than
27the Commonwealth's laws for intrastate gas pipelines.

28(c) Inspection.--The department may inspect a record, map or
29written procedure required by Federal law to be kept by:

30(1) a hazardous liquid pipeline company concerning the

1reportable releases and the design, construction, testing or
2operation and maintenance of hazardous liquid pipelines; and

3(2) a gas pipeline company concerning the reporting of
4gas releases and the design, construction, testing or
5operation and maintenance of gas pipelines.

6Section 6. This act shall take effect in six months.