Regular Session 2015-2016 House Bill 2361 P.N. 3903

PRINTER'S NO. 3903

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2361

Session of

2015

INTRODUCED BY PETRI, BAKER, BARBIN, GIBBONS, GODSHALL,

A. HARRIS, IRVIN, LAWRENCE, MILLARD, NEILSON, ROTHMAN AND

TAYLOR, SEPTEMBER 22, 2016

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,

SEPTEMBER 22, 2016

AN ACT

Providing for rights-of-way through land and permits for use of

land owned by the Pennsylvania Turnpike Commission and for

additional keystone opportunity expansion zones.

TABLE OF CONTENTS

Chapter 1. Preliminary Provisions

Section 101. Short title.

Section 102. Definitions.

Chapter 3. Rights-of-way and Permits

Section 301. Definitions.

Section 302. Rights-of-way and permits.

Section 303. Application.

Section 304. Fees and financial requirement.

Section 305. Safety and environmental protection.

Section 306. Limitations.

Section 307. Suspension or termination of right-of-way.

Section 308. Joint use of right-of-way.

Section 309. Common carriers.

Section 310. Reports.

Section 311. Liability.

Section 312. Prior right-of-way.

Chapter 5. Keystone Opportunity Expansion Zones

Section 501. Definitions.

Section 502. Additional keystone opportunity expansion zones.

Chapter 19. Miscellaneous Provisions

Section 1901. Effective date.

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 Pennsylvania

Turnpike Right-of-Way 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:

"Materials." Water, oil, natural gas, natural gas liquids,

gas of any other designation, ethane, propane, butane, other

complex hydrocarbons, synthetic liquid or gaseous fuels or any

refined product produced from water, oil, natural gas, natural

gas liquids, gas of any other designation, ethane, propane,

butane, other complex hydrocarbons, synthetic liquid or gaseous

fuels, that may be transported through a pipeline.

"Permit." A permit under Chapter 3.

"Right-of-way." A right-of-way under Chapter 3.

CHAPTER 3

RIGHTS-OF-WAY AND PERMITS

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Section 301. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Agency." The agency, department or independent authority

which may have jurisdiction over land owned by the commission.

"Commission." The Pennsylvania Turnpike 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.

Section 302. Rights-of-way and permits.

(a) Grant of authority.--A right-of-way through land owned

by the commission may be granted by the commission for pipeline

purposes for the transportation of materials to any applicant

possessing the qualifications provided in applicable law in

accordance with the provisions of this chapter.

(b) Interagency coordination.--

(1) If the surface of all of the land owned by the

commission involved in a proposed right-of-way or permit is

under the jurisdiction of one agency, the commission is

authorized to grant or renew the right-of-way or permit.

(2) If the surface of the land owned by the commission

is administered by two or more agencies, the commission is

authorized, after consultation with the agencies involved, to

grant or renew a right-of-way or permit. The commission may

enter into interagency agreements with other agencies having

jurisdiction over land owned by the commission for the

purpose of:

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(i) Avoiding duplication.

(ii) Assigning responsibility.

(iii) Expediting review of the right-of-way or

permit applications.

(iv) Issuing joint regulations.

(v) Assuring a decision based upon a comprehensive

review of all factors involved in an application.

(3) Each agency head shall administer and enforce the

provisions of this chapter, appropriate regulations and the

terms and conditions of a right-of-way or permit insofar as

the land owned by the commission is under the agency head's

jurisdiction.

by a temporary permit for the use of land owned by the

commission in the vicinity of the pipeline as the commission

deems necessary in connection with construction, operation,

maintenance or termination of the pipeline or to protect the

natural environment or public safety.

(d) Regulatory authority.--The grant or renewal of a right-

of-way or permit shall be subject to the following:

(1) Regulations promulgated under this chapter.

(2) Terms and conditions as the commission may prescribe

regarding extent, duration, survey, location, construction,

operation, maintenance, use and termination.

Section 303. Application.

(a) Form.--The application for a right-of-way or permit

shall be made in a form and manner as determined by the

commission.

(b) Disclosure.--If the applicant is a partnership,

corporation, association or other business entity, the

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commission shall require the applicant to disclose the identity

of the participants in the entity. The disclosure shall include

the following, if applicable:

(1) The name and address of each partner.

(2) The name and address of each shareholder owning 3%

or more of the shares and the number and percentage of the

class of voting shares of the entity which the shareholder is

authorized to vote.

(3) The name and address of each affiliate of the entity

together with the following:

(i) In the case of an affiliate controlled by the

entity, the number of shares and the percentage of the

class of voting stock of that affiliate owned, directly

or indirectly, by that entity.

(ii) In the case of an affiliate that controls the

entity, the number of shares and the percentage of any

class of voting stock of that entity owned, directly or

indirectly, by the affiliate.

shall grant or renew a right-of-way or permit only when the

commission is satisfied that the applicant has the technical and

financial capability to construct, operate, maintain and

terminate the pipeline project in accordance with the

requirements of this chapter.

(d) Public hearings.--The commission by regulation shall

establish procedures, including public hearings where

appropriate, to give Federal, State and local government

agencies and the public adequate notice and an opportunity to

comment upon right-of-way applications filed after the date of

enactment of this chapter.

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Section 304. Fees and financial requirement.

(a) Establishment of fees.--The commission may establish

fees for the transmission of materials which are transported

through a pipeline or related facility for which a right-of-way

or permit is authorized under this chapter. The fees collected

under this subsection shall be deposited in the General Fund.

(b) Reimbursement of costs.--An applicant for a right-of-way

or permit and a holder of a right-of-way or permit shall

reimburse the commission for the following:

(1) Administrative or other costs incurred in processing

the application.

(2) The costs incurred in monitoring the construction,

operation, maintenance and termination of a pipeline or

related facility in the right-of-way or permit area.

(3) The fair market rental value of the right-of-way or

permit, as determined by the commission, which shall be paid

annually in advance.

right-of-way or permit to furnish a bond or other security

satisfactory to the commission to secure an obligation imposed

by the terms and conditions of the right-of-way or permit or by

any rule or regulation of the commission.

Section 305. Safety and environmental protection.

(a) Pipeline safety.--The commission shall impose

requirements for the operation of the pipeline and related

facilities consistent with Federal pipeline safety laws in a

manner that will protect the safety of workers and protect the

public from sudden ruptures and slow degradation of the

pipeline.

(b) Environmental protection.--

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(1) The commission, prior to granting a right-of-way or

permit for a new project which may have a significant impact

on the environment, shall require the applicant to submit a

plan of construction, operation and rehabilitation. The

commission shall issue regulations or impose stipulations,

including the following:

(i) Requirements for restoration, revegetation and

curtailment of erosion of the surface of the land.

(ii) Requirements to ensure that activities in

connection with the right-of-way or permit will not

violate applicable air and water quality standards or

related facility siting standards established by or under

law.

(iii) Requirements designed to control or prevent

the following:

(A) Damage to the environment, including damage

to fish and wildlife habitat.

(B) Damage to public or private property.

(iv) Requirements to protect the interests of

individuals living in the general area of the right-of-

way or permit who rely on the fish, wildlife and biotic

resources of the area for subsistence purposes.

(2) The regulations shall be applicable to each right-

of-way or permit granted under this chapter and may be made

applicable by the commission to rights-of-way or permits upon

renewal.

(3) Requirements and stipulations imposed under this

section shall be in addition to any other requirements

imposed by any other law.

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the Secretary of Transportation shall examine all pipelines and

related facilities on land owned by the commission and promptly

report any potential leaks or safety problems.

Section 306. Limitations.

(a) Width limitations.--The width of a right-of-way may not

exceed 50 feet plus the ground occupied by the pipeline and the

pipeline's facilities unless the commission finds, and records

the reasons for the finding, that a wider right-of-way is

necessary for operation and maintenance after construction to

protect the environment or for public safety. Facilities may

include valves, pump stations, supporting structures, bridges,

monitoring and communication devices, surge and storage tanks,

terminals and roads. The facilities do not need to be connected

or contiguous to the pipe and may be the subject of a separate

right-of-way.

(b) Duration of right-of-way or permit.--Each right-of-way

or permit granted or renewed under this chapter shall be limited

to a reasonable term in light of all circumstances concerning

the project. The duration may not exceed 50 years. The following

shall apply:

(1) For determining the duration of a right-of-way, the

commission shall take into consideration at least the

following:

(i) The cost of the facility.

(ii) The useful life of the facility.

(iii) The public purpose of the facility.

(2) The commission shall renew any right-of-way, in

accordance with the provisions of this chapter, if the

project is in commercial operation and is operated and

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maintained in accordance with this chapter.

Section 307. Suspension or termination of right-of-way.

(a) General rule.--Abandonment of a right-of-way or

noncompliance with any provision of this chapter may be grounds

for suspension or termination of the right-of-way. Prior to

suspension or termination under this section, the commission

shall give the holder due notice and a reasonable opportunity to

comply with this chapter. A suspension or termination under this

section may only occur following an appropriate administrative

proceeding where the commission determines that such ground

exists and that suspension or termination is justified.

(b) Nonapplicability.--This section shall not apply to a

termination of a right-of-way in accordance with a fixed or

agreed-upon condition, event or time between the commission and

the holder.

determines that an immediate temporary suspension of activities

within a right-of-way or permit area is necessary to protect

public health or safety or the environment, the commission may

abate the activities prior to an administrative proceeding.

(d) Abandonment.--Deliberate failure of the holder to use

the right-of-way granted under this chapter for any continuous

two-year period shall constitute a rebuttable presumption of

abandonment of the right-of-way. If the failure to use the

right-of-way is due to circumstances outside the holder's

control, the commission is not required to suspend or terminate

the right-of-way.

Section 308. Joint use of right-of-way.

In order to minimize adverse environmental impacts and the

proliferation of separate rights-of-way across land owned by the

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commission, the utilization of rights-of-way in common shall be

required to the extent practicable, and each right-of-way or

permit shall reserve to the commission the right to grant

additional rights-of-way or permits for compatible uses on or

adjacent to any area for which a right-of-way or permit was

granted under this chapter.

Section 309. Common carriers.

The following apply:

(1) Pipelines and related facilities for which a right-

of-way or permit is authorized under this chapter shall be

constructed, operated and maintained as common carriers.

(2) A pipeline owner or operator subject to this chapter

must accept, convey, transport or purchase materials

delivered to the pipeline without regard to whether the

materials were produced on land owned by the commission. In

the case of oil or gas produced from the land or from

resources on the land owned by the commission in the vicinity

of the pipeline, the commission shall:

(i) Hold a full hearing and proper finding of facts

after due notice to the interested parties.

(ii) Determine the proportionate amounts to be

accepted, conveyed, transported or purchased.

(3) Whenever the commission believes an owner or

operator is not operating an oil or gas pipeline in

accordance with the operator's obligations as a common

carrier, the commission may:

(i) request the Attorney General to institute

proceedings before the appropriate State agency, court of

common pleas or United States District Court for the

district in which the pipeline or any part thereof is

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located to enforce the obligation or to impose a penalty

under this chapter; or

(ii) by proceeding as provided in this section,

suspend or terminate the right-of-way for noncompliance

with any provision of this chapter.

(4) Prior to granting or renewing a right-of-way, the

commission shall require that the applicant submit and

disclose all plans, contracts, agreements or other

information or material which the commission deems necessary

to determine whether a right-of-way shall be granted or

renewed and the terms and conditions which should be included

in the right-of-way. The information may include:

(i) Conditions for and agreements among owners or

operators regarding the addition of pumping facilities,

looping or otherwise increasing the pipeline or

terminal's throughput capacity in response to actual or

anticipated increases in demand.

(ii) Conditions for adding or abandoning intake,

offtake or storage points or facilities.

(iii) Minimum shipment or purchase tenders.

Section 310. Reports.

(a) Annual reports.--The commission and other appropriate

agency heads shall report to the Environmental Resources and

Energy Committee of the Senate and the Environmental Resources

and Energy Committee of the House of Representatives annually on

the administration of this chapter and on the safety and

environmental requirements imposed under this chapter.

(b) Notification of application.--The commission shall

promptly notify the Environmental Resources and Energy Committee

of the Senate and the Environmental Resources and Energy

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Committee of the House of Representatives upon receipt of an

application for a right-of-way for a pipeline 24 inches or more

in diameter, and no right-of-way for the pipeline may be granted

until a notice of intention to grant the right-of-way together

with the commission's or agency head's detailed findings as to

the terms and conditions the commission proposes to impose have

been submitted to the committees.

Section 311. Liability.

The commission shall promulgate regulations on liability for

damage or injury incurred in connection with a right-of-way or

permit in accordance with the following:

(1) The commission shall promulgate regulations and may

impose stipulations specifying the extent to which holders of

rights-of-way and permits shall be liable to the Commonwealth

for damage or injury incurred by the Commonwealth in

connection with the right-of-way or permit. The commission

shall promulgate regulations specifying the extent to which

holders shall be liable to third parties for the injuries

incurred.

(2) The commission may, by regulation or stipulation,

impose a standard of strict liability to govern activities

taking place in a right-of-way or permit area which present a

foreseeable hazard or risk of danger to the Commonwealth as

determined by the commission.

(3) Regulations and stipulations may not impose strict

liability for damage or injury resulting from an act of war

or negligence of the Commonwealth.

(4) A regulation or stipulation imposing liability

without fault shall include a maximum limitation on damages

commensurate with the foreseeable risks or hazards presented.

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Liability for damage or injury in excess of this amount shall

be determined by ordinary rules of negligence.

(5) The regulations and stipulations shall specify the

extent to which the holder shall indemnify or hold harmless

the Commonwealth for liability, damage or claims arising in

connection with the right-of-way or permit.

(6) Any regulation or stipulation promulgated or imposed

under this section shall provide that all owners of any

interest in and all affiliates or subsidiaries of a holder

shall be liable to the Commonwealth in the event that a claim

for damage or injury cannot be collected from the holder.

(7) In any case where liability without fault is imposed

under this section and the damage involved was caused by the

negligence of a third party, the rules of subrogation shall

apply in accordance with the law of the jurisdiction where

the damage occurred.

Section 312. Prior right-of-way.

No right-of-way shall be granted or renewed across land owned

by the commission except under this chapter. An application for

a right-of-way filed under any other law prior to the effective

date of this section may, at the applicant's option, be

considered as an application under this section. The commission

may require the applicant to submit any additional information

deemed necessary to comply with the requirements of this

section.

CHAPTER 5

KEYSTONE OPPORTUNITY EXPANSION ZONES

Section 501. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

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context clearly indicates otherwise:

"Business." As defined in section 103 of the Keystone

Opportunity Zone Act.

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Keystone opportunity expansion zone." As defined in section

103 of the Keystone Opportunity Zone Act.

"Keystone Opportunity Zone Act." The act of October 6, 1998

(P.L.705, No.92), known as the Keystone Opportunity Zone,

Keystone Opportunity Expansion Zone and Keystone Opportunity

Improvement Zone Act.

"Person." As defined in section 103 of the Keystone

Opportunity Zone Act.

"Political subdivision." As defined in section 103 of the

Keystone Opportunity Zone Act.

"Unoccupied parcel." As defined in section 103 of the

Keystone Opportunity Zone Act.

Section 502. Additional keystone opportunity expansion zones.

(a) Establishment.--In addition to any designations under

section 301.1 of the Keystone Opportunity Zone Act, the

department may designate additional keystone opportunity

expansion zones that will create new jobs in accordance with

this section. Each additional keystone opportunity expansion

zone shall:

(1) Be at least 10 acres in size, unless contiguous to

an existing zone.

(2) In the aggregate, be no more than a total of 375

acres.

(3) Be comprised of parcels that are deteriorated,

underutilized or unoccupied on the effective date of this

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paragraph.

(4) Include a person or business that utilizes materials

which were transported in a pipeline authorized to operate in

a right-of-way or under a permit granted or renewed under

Chapter 3.

(b) Authorization.--A person or business within an

additional keystone opportunity expansion zone that is

authorized under subsection (a) and that is eligible under

subsection (d) shall be entitled to all tax exemptions,

deductions, abatements or credits set forth under this section

and exemptions for sales and use tax under section 511(a) or

705(a) of the Keystone Opportunity Zone Act for a period of 10

years. Exemptions for sales and use taxes under sections 511 and

705 of the Keystone Opportunity Zone Act shall commence upon

issuance by the department of a certificate under section 307 of

the Keystone Opportunity Zone Act.

receive a designation under this section, the department must

receive an application from a political subdivision. The

application must contain the information required under section

302(a)(1), (2)(i) and (ix), (5) and (6) of the Keystone

Opportunity Zone Act. The department, in consultation with the

Department of Revenue, shall review each application and, if

approved, issue a certification of all tax exemptions,

deductions, abatements or credits under this act for the zone

within three months of receipt of the application.

(d) Eligibility for exemptions, deductions, abatements or

credits.--A person or business located in a keystone opportunity

expansion zone designated under subsection (a) that utilizes

materials which are transported in a pipeline authorized to

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operate in a right-of-way or under a permit granted or renewed

under Chapter 3 is eligible to receive exemptions, deductions,

abatements or credits authorized under the Keystone Opportunity

Zone Act.

(e) Applicability.--All exemptions, deductions, abatements

and credits authorized under the Keystone Opportunity Zone Act

shall apply to the parcels for a period of 10 years.

CHAPTER 19

MISCELLANEOUS PROVISIONS

Section 1901. Effective date.

This act shall take effect in 60 days.

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