THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BAKER, S. H. SMITH, STERN, MAJOR, BOBACK, BRIGGS, CALTAGIRONE, CARROLL, CLYMER, D. COSTA, CREIGHTON, DePASQUALE, FLECK, GINGRICH, GOODMAN, GROVE, HANNA, HARHART, HELM, HENNESSEY, HESS, KILLION, MANN, MILLER, MILNE, MUNDY, MURT, PASHINSKI, PHILLIPS, PICKETT, REESE, REICHLEY, SANTONI, SIPTROTH, K. SMITH, TALLMAN, TRUE, VULAKOVICH, WAGNER, WATSON, YOUNGBLOOD, YUDICHAK, McILVAINE SMITH, SWANGER, DENLINGER AND KNOWLES, SEPTEMBER 14, 2010

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, SEPTEMBER 14, 2010  

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, in general provisions, further

providing for definitions; and providing for regulation of

certain operators of pipelines.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Paragraph (2) of the definition of "public

utility" in section 102 of Title 66 of the Pennsylvania

Consolidated Statutes is amended by adding a subparagraph and

the section is amended by adding definitions to read:

§ 102.  Definitions.

Subject to additional definitions contained in subsequent

provisions of this part which are applicable to specific

provisions of this part, the following words and phrases when

used in this part shall have, unless the context clearly

indicates otherwise, the meanings given to them in this section:

* * *

"Gas."  Natural gas, flammable gas or toxic or corrosive gas.

"Hazardous liquid."  Petroleum, a petroleum product or

anhydrous ammonia.

* * *

"Natural or artificial gas."  Natural gas, liquified natural

gas, synthetic natural gas and any natural gas substitute such

as propane or landfill gas.

* * *

"Public utility."

* * *

(2)  The term does not include:

* * *

(vii)  An operator, not otherwise a public utility,

provided that the operator is subject to the jurisdiction

of the commission as provided in Chapter 32 (relating to

regulation of nonjurisdictional entities) and in

regulations promulgated by the commission.

* * *

Section 2.  Title 66 is amended by adding a chapter to read:

CHAPTER 32

REGULATION OF NONJURISIDCTIONAL ENTITIES

Sec.

3201.  Definitions.

3202.  Adoption of Federal pipeline safety laws.

3203.  Scope of commission regulation.

3204.  Registry of pipeline operators.

3205.  Assessments.

3206.  Regulations.

§ 3201.  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:

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

Subtitle VIII (relating to pipelines).

"Operator."  A person, corporation or other entity, including

a public utility, that owns or operates in this Commonwealth

equipment or facilities for the transportation of gas or

hazardous liquids by pipeline or pipeline facility. The term

does not include an ultimate consumer who owns a service line on

the real property of the ultimate consumer.

"Pipeline."  Any 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.

"Pipeline facility."  A new and 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 during the course of transportation. The term does not

include a pipeline subject to the exclusive jurisdiction of the

Federal Energy Regulatory Commission.

"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.

§ 3202.  Adoption of Federal pipeline safety laws.

(a)  General rule.--The minimum safety standards for the

transportation of gas and hazardous liquids in this Commonwealth

shall be those issued under the Federal pipeline safety laws and

as implemented in 49 CFR Subtitle B Ch. 1 Subch. D (relating to

pipeline safety), including all subsequent amendments thereto.

(b)  Amendments to Federal law.--

(1)  Amendments to the Federal pipeline safety laws shall

have the effect of amending or modifying the commission's

regulations with regard to the minimum safety standards for

the transportation of gas and hazardous liquids.

(2)  The amendment or modification shall take effect 60

days after the effective date of the Federal amendment or

modification, unless the commission publishes a notice in the

Pennsylvania Bulletin stating that the amendment or

modification may not take effect.

§ 3203.  Scope of commission regulation.

For the purpose of protecting the public safety with respect

to the transportation of gas and hazardous liquids by operators,

the commission shall have the following powers and duties:

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

omission by an operator to determine compliance with this

chapter.

(2)  To investigate any pipeline transportation facility

to determine if it is hazardous to life or property.

(3)  To investigate the existence or report of any

safety-related condition that involves a pipeline

transportation facility.

(4)  To enter into and perform contracts or agreements

with the United States Department of Transportation to

inspect interstate transmission facilities pursuant to the

Federal pipeline safety laws.

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

provided for or made available to the Commonwealth by the

Federal Government to carry out the Federal pipeline safety

laws or other Federal law.

(6)  To adopt by reference the pipeline safety

regulations promulgated at 49 CFR Parts 191 (relating to

transportation of natural and other gas pipeline; annual

reports, incident reports, and safety-related condition

reports) through 199 (relating to drug and alcohol testing).

The commission may not adopt a rule or regulation to

implement this chapter that is inconsistent with or more

stringent than the pipeline safety regulations promulgated by

the Federal Government.

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

Government, other State agencies and other states as may be

necessary to administer its duties under this chapter.

(8)  To issue adjudications, after notice and opportunity

to be heard, and to impose civil fines and take enforcement

action for violations of the applicable Federal regulations

and any provision of this chapter.

§ 3204.  Registry of pipeline operators.

(a)  Duty to establish and maintain registry.--The commission

shall establish and maintain a registry of all gas and hazardous

liquids operators.

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

for registration under subsection (a) and may charge a

reasonable registration fee and annual renewal registration fee.

(c)  Duty to register.--

(1)  Unless certificated by the commission as a public

utility as set forth in this part, an operator shall register

with the commission.

(2)  An operator that fails to register in accordance

with this chapter shall be subject to the civil penalty

provided in section 3301(c) (relating to civil penalties for

violations).

§ 3205.  Assessments.

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

or order determine the assessments of operators in accordance

with this section.

(b)  Fees.--

(1)  The commission shall determine an appropriate fee,

based on pipeline miles, which fee shall be designed to

collect the commission's total costs, plus a reasonable

allocation of indirect costs, of its natural gas pipeline

safety program, excluding the costs otherwise reimbursed by

the Federal Government.

(2)  The fee shall be paid by all operators. The fee

shall not be applicable to natural gas public utilities.

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

within 30 days of the notice of amount due from the commission.

The amount of the fee may be challenged consistent with the

provisions of section 510(c), (d) and (e) (relating to

assessment for regulatory expenses upon public utilities).

(d)  Reporting of miles.--Each operator shall, on or before

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

total transmission and gathering pipeline miles in operation

during the prior calendar year.

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

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 section 510(a).

§ 3206.  Regulations.

The commission shall establish regulations to implement this

chapter and may promulgate and enforce binding interim

guidelines.

Section 3.  This act shall take effect in 60 days.