THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BAKER, PICKETT, CAUSER, MAJOR, CARROLL, CLYMER, DAY, DENLINGER, GINGRICH, GOODMAN, GROVE, HARHART, HARKINS, HARRIS, HORNAMAN, KORTZ, MANN, MICOZZIE, MILLARD, MURT, MUSTIO, RAPP, REICHLEY, SAINATO, STERN, VULAKOVICH, WATSON, FLECK, HESS, PERRY, GABLER, SONNEY, GIBBONS, MILNE AND PRESTON, JANUARY 31, 2011

AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 1, 2011   

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, in general provisions, further

providing for definitions; providing for regulation of

certain operators of pipelines; and, in violations and

penalties, further providing for civil penalties for gas

pipeline safety violations.

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 subparagraphs 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:

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

gas, synthetic natural gas and any natural gas substitute such

as petroleum gas or landfill gas.

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"Petroleum gas."  Propane, propylene, butane, including

normal butane or isobutanes and butylene, including isomers, or

mixtures composed predominately of these gases, having a vapor

pressure not exceeding 208 psi (1434 kPa) gage at 100°F (38°C).

"Public utility."

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(2)  The term does not include:

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(vii)  A pipeline operator, not otherwise a public

utility, provided that the pipeline operator is subject

to the jurisdiction of the commission as provided in

Chapter 32 (relating to safety regulation of nonpublic

utility pipelines) and in regulations promulgated by the

commission.

(viii)  Any person supplying petroleum gas:

(A)  to fill a container or by delivery in a

container; or

(B)  through a pipeline to a customer where the

pipeline system is not subject to Federal safety

regulations under 49 CFR Part 192 (relating to

transportation of natural and other gas by pipeline:

minimum Federal safety standards) exempting from

Federal regulation service to fewer than ten

customers through a pipeline system, if no portion of

the pipeline system is located in a public place, and

service to a single customer through a pipeline

system, if the pipeline system is located entirely on

the customer's premises no matter if a portion of the

pipeline system is located in a public place.

* * *

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

CHAPTER 32

SAFETY REGULATION OF NONPUBLIC UTILITY PIPELINES

Sec.

3201.  Definitions.

3202.  Adoption of Federal pipeline safety laws.

3203.  Scope of commission regulation.

3204.  Registry of pipeline operators.

3205.  Assessments.

3206.  Regulations.

3207.  Jurisdiction and authority of commission.

§ 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) and all regulations

promulgated pursuant thereto.

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

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

Federal pipeline safety laws.

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

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

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

petroleum products or anhydrous ammonia.

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

corporation, association, municipality, cooperative association

or joint stock association, including any trustee, receiver,

assignee or personal representative thereof.

"Pipeline."  Any part of the physical facilities through

which gas or hazardous liquids move in transportation and that

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is regulated by Federal pipeline safety laws, including a pipe,

valve and other appurtenance attached to the pipe, compressor

unit, metering station, regulator station, delivery station,

holder and fabricated assembly. The term only includes pipelines

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regulated by Federal pipeline safety laws. The term does not

include a pipeline subject to the exclusive jurisdiction of the

Federal Energy Regulatory Commission.

"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 only

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includes facilities and that is regulated by the Federal

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pipeline safety laws. The term does not include a pipeline

facility subject to the exclusive jurisdiction of the Federal

Energy Regulatory Commission.

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

Commonwealth equipment or facilities for the transportation of

gas or hazardous liquids by pipeline or pipeline facility

regulated under Federal pipeline safety laws. The term does not

include a public utility or an ultimate consumer who owns a

service line on the real property of the ultimate consumer.

"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 safety standards and regulations 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 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.

§ 3203.  Scope of commission regulation.

The commission shall have general administrative authority to

supervise and regulate pipeline operators within this

Commonwealth consistent with Federal pipeline safety laws. The

commission may adopt regulations, consistent with the Federal

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

exercise of its powers and perform its duties under this

chapter. The regulations shall not be inconsistent with or

greater or more stringent than the minimum standards and

regulations adopted under the Federal pipeline safety laws. The

commission shall have the following powers and duties:

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

omission by a pipeline operator to determine compliance with

this chapter.

(2)  To investigate any pipeline facility to determine if

it is hazardous to life or property under the Federal

pipeline safety laws.

(3)  To investigate the existence or report of any

safety-related condition that involves a pipeline facility.

(4)  To enter into and perform contracts or agreements

with the United States Department of Transportation to

inspect intrastate and interstate transmission facilities

under the Federal pipeline safety laws.

(5)  To 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 by pipeline; annual

reports, incident reports, and safety-related condition

reports), 192 (relating to transportation of natural and

other gas by pipeline: minimum Federal safety standards), 193

(relating to liquefied natural gas facilities: Federal safety

standards), 194 (relating to response plans for onshore oil

pipelines), 195 (relating to transportation of hazardous

liquids by pipeline), 196 (Reserved), 197 (Reserved), 198

(relating to regulations for grants to aid State pipeline

safety programs) and 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.

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

jurisdiction under this chapter shall be limited to those

petroleum gas systems that are subject to the Federal

pipeline safety laws and not a public utility.

§ 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 pipeline 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)  A pipeline operator shall register with the

commission.

(2)  A pipeline 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).

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

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(1)  No application or registration fee shall be required

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of a petroleum gas distributor who is registered under the

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

and Liquefied Petroleum Gas Act, and provides proof of

registration to the commission. It shall be the

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responsibility of the commission to

(2)  The commission shall verify registrations of

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petroleum gas distributors with the Department of Labor and

Industry before requiring a petroleum gas distributor to

register under this section. This exemption shall not apply

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to assessments.

(3)  No registration fee or annual renewal registration

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fee shall be required of a borough.

(4)  This subsection shall not apply to assessments or

boroughs.

§ 3205.  Assessments.

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

or order determine the assessments of pipeline operators in

accordance with this section.

(b)  Fees.--

(1)  The commission shall determine an appropriate annual

assessment based on intrastate regulated transmission,

distribution and regulated on-shore gathering pipeline miles,

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

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

gas and hazardous liquids pipeline safety program, excluding

the costs otherwise reimbursed by the Federal Government.

(2)  The assessment shall be paid by all pipeline

operators. The assessment shall not be applicable to natural

gas public utilities, city natural gas distribution

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operations or a pipeline operator that is a borough.

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

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

commission. The amount of the assessment 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 pipeline operator shall, on or

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

its total intrastate regulated transmission, distribution and

regulated on-shore gathering pipeline miles in operation in this

Commonwealth during the prior calendar year.

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

§ 3207.  Jurisdiction and authority of commission.

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

commission jurisdiction over any pipeline, not otherwise a

public utility or city natural gas distribution operation, for

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purposes of rates or ratemaking or any purpose other than those

set forth in this chapter.

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

the commission over a landfill gas distribution system, not

otherwise a public utility, shall be limited to systems subject

to Federal pipeline safety laws. The commission shall not have

jurisdiction over operations and systems within the property

boundary of the landfill.

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

commission additional authority to determine or regulate a

pipeline operator as a public utility as defined in section 102

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

natural gas supply services as defined in section 2202 (relating

to definitions).

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

§ 3301.  Civil penalties for violations.

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

corporation, defined as a public utility or pipeline operator in

this part, who violates any provisions of this part governing

the safety of pipeline or conduit facilities in the

transportation of natural gas, flammable gas, or gas which is

toxic or corrosive, or of any regulation or order issued

thereunder, shall be subject to a civil penalty [of] not to

exceed [$10,000] $100,000 for each violation for each day that

the violation persists, except that the maximum civil penalty

shall not exceed [$500,000] $1,000,000 for any related series of

violations.

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