PRIOR PRINTER'S NOS. 4214, 4383

PRINTER'S NO.  4444

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2693

Session of

2010

  

  

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, KNOWLES, SONNEY, GEIST, PRESTON, HOUGHTON AND MURPHY, SEPTEMBER 14, 2010

  

  

AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 5, 2010   

  

  

  

AN ACT

  

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Amending Title 66 (Public Utilities) of the Pennsylvania

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Consolidated Statutes, in general provisions, further

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providing for definitions; providing in restructuring of

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electric utility industry, further providing for definitions;

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providing for solar energy portfolio standards and for

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regulation of certain operators of pipelines; and, in

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violations and penalties, further providing for civil

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penalties for gas pipeline safety violations; and making a

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related repeal.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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

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utility" in section 102 of Title 66 of the Pennsylvania

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Consolidated Statutes is amended by adding a subparagraph and

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the section is amended by adding a definition to read:

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§ 102.  Definitions.

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Subject to additional definitions contained in subsequent

 


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provisions of this part which are applicable to specific

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provisions of this part, the following words and phrases when

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used in this part shall have, unless the context clearly

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

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* * *

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

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gas, synthetic natural gas and any natural gas substitute such

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as propane or landfill gas.

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* * *

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"Public utility."

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* * *

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(2)  The term does not include:

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* * *

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(vii)  A pipeline operator, not otherwise a public

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utility, provided that the pipeline operator is subject

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to the jurisdiction of the commission as provided in

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Chapter 32 (relating to regulation of nonjurisdictional

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entities) and in regulations promulgated by the

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commission.

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* * *

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Section 2. Section 2803 of Title 66 is amended by adding

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definitions to read:

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§ 2803.  Definitions.

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The following words and phrases when used in this chapter

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

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context clearly indicates otherwise:

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* * *

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"Solar."  Includes both solar photovoltaic and solar thermal

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energy technologies.

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"Solar thermal energy."  Technology utilizing solar energy

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for water heating or for generating energy.

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* * *

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Section 3.  Title 66 is amended by adding a section to read:

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§ 2816.  Solar energy portfolio standards.

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The total percentage of the electric energy sold by an

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electric distribution company or electric generation supplier to

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retail electric customers in this Commonwealth that must be sold

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from solar technologies shall be as follows:

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(1)  0.0013% for June 1, 2006, through May 31, 2007.

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(2)  0.0030% for June 1, 2007, through May 31, 2008.

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(3)  0.0063% for June 1, 2008, through May 31, 2009.

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(4)  0.0120% for June 1, 2009, through May 31, 2010.

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(5)  0.0203% for June 1, 2010, through May 31, 2011.

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(6)  0.0504% for June 1, 2011, through May 31, 2012.

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(7)  0.0752% for June 1, 2012, through May 31, 2013.

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(8)  0.1218% for June 1, 2013, through May 31, 2014.

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(9)  0.2016% for June 1, 2014, through May 31, 2015.

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(10)  0.3% for June 1, 2015, through May 31, 2016.

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(11)  0.41% for June 1, 2016, through May 31, 2017.

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(12)  0.5% for June 1, 2017, through May 31, 2018.

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(13)  0.62% for June 1, 2018, through May 31, 2019.

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(14)  0.75% for June 1, 2019, through May 31, 2020.

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(15)  0.97% for June 1, 2020, through May 31, 2021.

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(16)  1.35% for June 1, 2021, through May 31, 2022.

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(17)  1.5% for June 1, 2022, and thereafter.

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Section 2 4.  Title 66 is amended by adding a chapter to

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read:

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CHAPTER 32

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REGULATION OF NONJURISDICTIONAL ENTITIES

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Sec.

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3201.  Definitions.

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3202.  Adoption of Federal pipeline safety laws.

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3203.  Scope of commission regulation.

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3204.  Registry of pipeline operators.

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3205.  Assessments.

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3206.  Regulations.

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§ 3201.  Definitions.

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The following words and phrases when used in this chapter

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

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context clearly indicates otherwise:

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

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Subtitle VIII (relating to pipelines) and all regulations

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promulgated pursuant thereto.

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"Gas and natural gas."  Natural gas, flammable gas or toxic

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or corrosive gas. The term shall have the same meaning as in the

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Federal pipeline safety laws.

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"Hazardous liquid."  The term shall have the same meaning as

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in the Federal pipeline safety laws, including, but not limited

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to, carbon dioxide, a highly volatile liquid, petroleum,

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petroleum products or anhydrous ammonia.

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

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corporation, association, municipality, cooperative association

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or joint stock association, including any trustee, receiver,

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assignee or personal representative thereof.

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"Pipeline."  Any part of the physical facilities through

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which gas or hazardous liquids move in transportation, including

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a pipe, valve and other appurtenance attached to the pipe,

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compressor unit, metering station, regulator station, delivery

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station, holder and fabricated assembly. The term only includes

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pipelines regulated by Federal pipeline safety laws. The term

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does not include a pipeline subject to the exclusive

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jurisdiction of the Federal Energy Regulatory Commission.

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

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way and any equipment, facility or building used in the

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transportation of gas or hazardous liquids or in the treatment

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of gas during the course of transportation. The term only

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includes facilities regulated by the Federal pipeline safety

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laws. The term does not include a pipeline facility subject to

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the exclusive jurisdiction of the Federal Energy Regulatory

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Commission.

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"Pipeline operator."  A person that owns or operates in this

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Commonwealth equipment or facilities for the transportation of

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gas or hazardous liquids by pipeline or pipeline facility

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regulated under Federal pipeline safety laws. The term does not

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include a public utility or an ultimate consumer who owns a

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service line on the real property of the ultimate consumer.

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"Transportation of gas."  The gathering, transmission or

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distribution of gas by pipeline or the storage of gas.

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"Transportation of hazardous liquids."  The gathering,

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transmission or distribution of hazardous liquids by pipeline.

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§ 3202.  Adoption of Federal pipeline safety laws.

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

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the transportation of gas and hazardous liquids in this

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Commonwealth shall be those issued under the Federal pipeline

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

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D (relating to pipeline safety), including all subsequent

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amendments thereto.

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(b)  Amendments to Federal law.--

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(1)  Amendments to the Federal pipeline safety laws shall

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have the effect of amending or modifying the commission's

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regulations with regard to the safety standards for the

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transportation of gas and hazardous liquids.

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(2)  The amendment or modification shall take effect 60

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days after the effective date of the Federal amendment or

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modification.

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§ 3203.  Scope of commission regulation.

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The commission shall have general administrative authority to

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supervise and regulate pipeline operators within this

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Commonwealth consistent with Federal pipeline safety laws. The

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commission may adopt regulations, consistent with the Federal

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pipeline safety laws, as may be necessary or proper in the

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exercise of its powers and perform its duties under this

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chapter. The regulations shall not be inconsistent with or

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greater or more stringent than the minimum standards and

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regulations adopted under the Federal pipeline safety laws. The

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commission shall have the following powers and duties:

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

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omission by a pipeline operator to determine compliance with

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this chapter.

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(2)  To investigate any pipeline facility to determine if

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it is hazardous to life or property pursuant to the Federal

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pipeline safety laws.

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(3)  To investigate the existence or report of any

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safety-related condition that involves a pipeline facility.

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(4)  To enter into and perform contracts or agreements

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with the United States Department of Transportation to

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inspect intrastate and interstate transmission facilities

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pursuant to the Federal pipeline safety laws.

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

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provided for or made available to the Commonwealth by the

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Federal Government to carry out the Federal pipeline safety

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laws or other Federal law.

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(6)  To adopt by reference the pipeline safety

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regulations promulgated at 49 CFR Parts 191 (relating to

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transportation of natural and other gas pipeline; annual

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reports, incident reports, and safety-related condition

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

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The commission may not adopt a rule or regulation to

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implement this chapter that is inconsistent with or more

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stringent than the pipeline safety regulations promulgated by

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the Federal Government.

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

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Government, other State agencies and other states as may be

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necessary to administer its duties under this chapter.

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(8)  To issue adjudications, after notice and opportunity

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

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action for violations of the applicable Federal regulations

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and any provision of this chapter.

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

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jurisdiction under this chapter shall be limited to those

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petroleum gas systems that are subject to the Federal

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pipeline safety laws and not a public utility.

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§ 3204.  Registry of pipeline operators.

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

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shall establish and maintain a registry of all gas and hazardous

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liquids pipeline operators.

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

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for registration under subsection (a) and may charge a

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reasonable registration fee and annual renewal registration fee.

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(c)  Duty to register.--

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(1)  A pipeline operator shall register with the

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commission.

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(2)  A pipeline operator that fails to register in

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accordance with this chapter shall be subject to the civil

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penalty provided in section 3301(c) (relating to civil

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penalties for violations).

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

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required of a petroleum gas distributor who is registered under

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

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and Liquefied Petroleum Gas Act, and provides proof of

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registration to the commission. It shall be the responsibility

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of the commission to verify registrations of petroleum gas

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distributors with the Department of Labor and Industry before

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requiring a petroleum gas distributor to register under this

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section. This exemption shall not apply to assessments.

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§ 3205.  Assessments.

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

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or order determine the assessments of pipeline operators in

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accordance with this section.

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(b)  Fees.--

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(1)  The commission shall determine an appropriate annual

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assessment based on intrastate regulated transmission,

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distribution and regulated on-shore gathering pipeline miles,

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which fee shall be designed to collect the commission's total

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costs, plus a reasonable allocation of indirect costs, of its 

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gas and hazardous liquids pipeline safety program, excluding

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the costs otherwise reimbursed by the Federal Government.

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(2)  The assessment shall be paid by all pipeline

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operators. The assessment shall not be applicable to natural

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gas public utilities.

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

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

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commission. The amount of the assessment may be challenged

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consistent with the provisions of section 510(c), (d) and (e)

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(relating to assessment for regulatory expenses upon public

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utilities).

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

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

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its total intrastate regulated transmission, distribution and

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regulated on-shore gathering pipeline miles in operation in this

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Commonwealth during the prior calendar year.

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(e)  Estimated assessments.--The estimated assessments to be

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collected under this section for each fiscal year shall be

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subtracted from the final estimate of total expenditures used to

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calculate the total assessment on public utilities under section

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510(a).

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§ 3206.  Regulations.

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The commission shall establish regulations to implement this

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chapter and may promulgate and enforce binding interim

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guidelines.

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§ 3207.  Jurisdiction and authority of commission.

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

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commission jurisdiction over any pipeline, not otherwise a

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public utility, for purposes of rates or ratemaking or any

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purpose other than those set forth in this chapter.

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

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the commission over a landfill gas distribution system, not

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otherwise a public utility, shall be limited to systems subject

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to Federal pipeline safety laws. The commission shall not have

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jurisdiction over operations and systems within the property

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boundary of the landfill.

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(c)  Authority.--Nothing in this chapter grants the

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commission additional authority to determine or regulate a

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pipeline operator as a public utility as defined in section 102

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

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natural gas supply services as defined in section 2202 (relating

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to definitions).

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Section 3 5.  Section 3301(c) of Title 66 is amended to read:

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§ 3301.  Civil penalties for violations.

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* * *

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(c)  Gas pipeline safety violations.--Any person or

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corporation, defined as a public utility in this part, who

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violates any provisions of this part governing the safety of

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pipeline or conduit facilities in the transportation of natural

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gas, flammable gas, or gas which is toxic or corrosive, or of

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any regulation or order issued thereunder, shall be subject to a

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civil penalty [of] not to exceed [$10,000] $100,000 for each

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violation for each day that the violation persists, except that

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the maximum civil penalty shall not exceed [$500,000] $1,000,000 

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for any related series of violations.

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* * *

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Section  4.  This act shall take effect in 60 days.

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Section 6.  Repeals are as follows:

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(1)  The General Assembly declares that the repeal under

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paragraph (2) is necessary to effectuate the addition of 66

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Pa.C.S. § 2816.

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(2)  Section 3(b)(2) of the act of November 30, 2004

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(P.L.1672, No.213), known as the Alternative Energy Portfolio

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Standards Act, is repealed.

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Section 7.  This act shall take effect in 60 days.

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