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PRINTER'S NO. 584
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
561
Session of
2015
INTRODUCED BY RAFFERTY, TARTAGLIONE, VULAKOVICH, MENSCH,
DINNIMAN AND McILHINNEY, MARCH 6, 2015
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 6, 2015
AN ACT
Amending the act of December 22, 2011 (P.L.586, No.127),
entitled "An act providing for gas and hazardous liquids
pipelines and for powers and duties of the Pennsylvania
Public Utility Commission; and imposing civil penalties,"
replacing the Pennsylvania Public Utility Commission with the
Department of Transportation of the Commonwealth; and
providing for Federal delegation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of December 22, 2011
(P.L.586, No.127), known as the Gas and Hazardous Liquids
Pipelines Act, is amended to read:
An Act
Providing for gas and hazardous liquids pipelines and for powers
and duties of the [Pennsylvania Public Utility Commission]
Department of Transportation; and imposing civil penalties.
Section 2. Sections 102 and 301 of the act are amended to
read:
Section 102. Definitions.
The following words and phrases when used in this act shall
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have the meanings given to them in this section unless the
context clearly indicates otherwise:
["Commission." The Pennsylvania Public Utility Commission.]
"Department." The Department of Transportation of the
Commonwealth.
"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.
"Gas." Natural gas, liquefied natural gas, landfill gas,
synthetic natural gas and other gas as defined under the Federal
pipeline safety laws.
"Hazardous liquids." Petroleum, a petroleum product,
anhydrous ammonia and other hazardous liquids as defined under
the Federal pipeline safety laws.
"Person." An individual, firm, joint venture, partnership,
corporation, association, municipality, cooperative association
or joint stock association, including any trustee, receiver,
assignee or personal representative thereof. The term does not
include a public utility.
"Pipeline." A 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. The term only includes
pipeline 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 or existing pipeline, right-of-
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way and any equipment, facility or building used in the
transportation of gas or hazardous liquids or in the treatment
of gas or hazardous liquids during the course of transportation.
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
equipment or facilities in this Commonwealth 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 his real property.
"Public utility." The term shall mean:
(1) A public utility as defined in 66 Pa.C.S. § 102
(relating to definitions).
(2) A city natural gas distribution operation as defined
in 66 Pa.C.S. § 102.
"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.
"Unconventional formation." A geological shale formation
existing below the base of the Elk Sandstone or its geologic
equivalent stratigraphic interval where natural gas generally
cannot be produced at economic flow rates or in economic volumes
except by vertical or horizontal well bores stimulated by
hydraulic fracture treatments or by using multilateral well
bores or other techniques to expose more of the formation of the
well bore.
"Unconventional well." A borehole drilled or being drilled
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for the purpose of or to be used for the production of natural
gas from an unconventional formation.
Section 301. Registry of pipeline operators.
(a) Registry.--The [commission] department shall establish
and maintain a registry of all pipeline operators.
(b) Application.--The [commission] department may develop an
application for registration under subsection (a) and may charge
a reasonable registration fee and annual renewal fee.
(c) Registration with [commission] department.--
(1) A pipeline operator shall register with the
[commission] department.
(2) Failure to register shall subject the pipeline
operator to a civil penalty under section 502.
(3) The operator of a pipeline in a Class 1 location
that collects or transports gas from an unconventional well
shall report the location of the pipeline by class location
and approximate aggregate miles for inclusion in the
[commission's] department's registry.
(d) Disclosure.--The [commission] department shall require
each pipeline operator, regardless of class location, to
disclose in its initial registration and in each annual renewal
the country of manufacture for all tubular steel products used
in the exploration, gathering or transportation of natural gas
or hazardous liquids. The [commission] department may develop a
disclosure form and require its use.
(e) Exemptions.--
(1) No application or registration fee shall be required
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
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registration to the [commission] department.
(2) The [commission] department shall verify
registrations of petroleum gas distributors within the
Department of Labor and Industry before requiring a petroleum
gas distributor to register under this section.
(3) No registration fee or annual renewal registration
fee shall be required of a borough.
Section 3. The heading of Chapter 5 of the act is amended to
read:
CHAPTER 5
[COMMISSION] DEPARTMENT AUTHORITY AND ENFORCEMENT
Section 4. Sections 501, 502, 503 and 504 of the act are
amended to read:
Section 501. General powers of [commission] department.
(a) [Commission authority] Authority.--The [commission]
department shall have general administrative authority to
supervise and regulate pipeline operators within this
Commonwealth consistent with Federal pipeline safety laws. The
[commission] department 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
act. The regulations shall not be inconsistent with or greater
or more stringent than the minimum standards and regulations
adopted under the Federal pipeline safety law. The [commission]
department shall have the following duties:
(1) To investigate a service, act, practice, policy or
omission by a pipeline operator to determine compliance with
this act.
(2) To investigate a pipeline transportation facility to
determine if it is hazardous to life or property.
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(3) To investigate the existence or report of a safety-
related condition that involves a pipeline transportation
facility.
(4) To enter into contracts or agreements with the
United States Department of Transportation to inspect
intrastate or interstate transmission facilities.
(5) Accept grants-in-aid, cash and reimbursements made
available to the Commonwealth by the Federal Government to
implement Federal pipeline safety laws or other Federal law.
(6) To advise, consult and cooperate with the Federal
Government, other states and other agencies as may be
necessary to carry out the purposes of this act.
(7) To enforce the Federal pipeline safety laws and,
after notice and opportunity for a hearing, impose civil
penalties and fines and take other appropriate enforcement
action.
(8) For purposes of petroleum gas, the [commission's]
department's jurisdiction under this act shall be limited to
those petroleum gas systems that are the following:
(i) Subject to the Federal pipeline safety laws.
(ii) Not a public utility.
(b) Compliance.--Each pipeline operator, its officers,
agents and employees, and other persons subject to this act, or
to an order of the [commission] department, or a court under
this act, shall observe, obey and comply with this act and the
terms and conditions of the orders issued hereunder.
Section 502. Civil penalties.
(a) Violations.--Any pipeline operator who violates this act
shall be subject to a penalty provided under the Federal
pipeline safety laws or 66 Pa.C.S. § 3301(c) (relating to civil
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penalties for violations), whichever is greater.
(b) Disposition of fines and penalties.--Fines imposed and
civil penalties recovered under this act shall be paid to the
[commission] department. The funds received by the [commission]
department under this subsection shall be paid into the State
Treasury, through the Department of Revenue, to the credit of
the General Fund.
Section 503. Assessments.
(a) Duty to determine.--The [commission] department shall by
regulation or order determine the assessments of pipeline
operators in accordance with this section.
(b) Assessments.--
(1) The [commission] department shall determine an
appropriate annual assessment based on intrastate regulated
transmission, regulated distribution and regulated onshore
gathering pipeline miles. The assessment shall be adjusted to
collect the [commission's] department's total costs of the
pipeline operators' portion, excluding the costs otherwise
reimbursed by the Federal Government, of:
(i) The gas pipeline safety program, plus a
reasonable allocation of indirect costs.
(ii) The hazardous liquids pipeline safety program.
(2) The assessment shall be paid by pipeline operators
and shall not be applicable to natural gas public utilities.
(3) The assessment under this subsection shall not apply
to boroughs.
(c) Time for payment.--The assessment shall be due and
payable within 30 days from the notice of amount due from the
[commission] department. The amount of the assessment may be
challenged by a pipeline operator consistent with the provisions
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of 66 Pa.C.S. § 510(c), (d) and (e) (relating to assessment for
regulatory expenses upon public utilities).
(d) Reporting of miles.--Following the submission of the
original application, each pipeline operator shall, on or before
March 31 of each calendar year, report to the [commission]
department its total intrastate regulated transmission,
regulated distribution and regulated onshore gathering pipeline
miles in operation for the transportation of gas and hazardous
liquids in this Commonwealth 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 66 Pa.C.S. § 510.
Section 504. Jurisdiction and authority of [commission]
department.
(a) Jurisdiction.--Nothing in this act shall give the
[commission] department jurisdiction over any pipeline operator
for purposes of rates or ratemaking or any purpose other than
those set forth in this act.
(b) Landfill gas distribution systems.--The jurisdiction of
the [commission] department over landfill gas distribution
systems under this act shall be limited to systems subject to
Federal pipeline safety laws. The [commission] department shall
not have jurisdiction over operations and systems within the
property boundary of the landfill.
(c) Authority.--Nothing in this act grants the [commission]
department additional authority to determine or regulate a
pipeline operator as a public utility as defined in 66 Pa.C.S. §
102 (relating to definitions) or as a natural gas supplier or
natural gas supply services as defined in 66 Pa.C.S. § 2202
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(relating to definitions).
Section 5. The act is amended by adding a section to read:
Section 505. Federal delegation.
(a) Pipeline safety.--
(1) The department shall apply for Federal delegation
for Commonwealth pipeline safety for the purposes of
enforcement of Federal hazardous liquid pipeline safety
requirements. If the United States Secretary of
Transportation delegates inspection authority to the
Commonwealth as provided under this subsection, the
department, at a minimum, shall do the following:
(i) Inspect hazardous liquid pipelines periodically
as specified in the inspection program.
(ii) Collect fees.
(iii) Order and oversee the testing of hazardous
liquid pipelines as authorized by Federal law and
regulation.
(iv) File reports with the United States Secretary
of Transportation as required to maintain the delegated
authority.
(2) The department shall seek Federal authority to adopt
safety standards related to the monitoring and testing of
interstate hazardous liquid pipelines.
(3) Upon delegation under paragraph (1) or under a grant
of authority under paragraph (2), to the extent authorized by
Federal law, the department shall adopt rules for interstate
pipelines that are no less stringent than the Commonwealth's
laws for intrastate hazardous liquid pipelines.
(b) Inspectors.--
(1) The department shall seek and accept Federal
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delegation for the department's inspectors as Federal agents
for the purposes of enforcement of Federal laws covering gas
pipeline safety and associated Federal rules, in existence on
the effective date of this section. The department shall
establish and submit to the United States Secretary of
Transportation an inspection program that complies with
requirements for delegated interstate agent inspection
authority. If the United States Secretary of Transportation
delegates inspection authority to the Commonwealth as
provided under this subsection, the department, at a minimum,
shall do the following:
(i) Inspect gas pipelines periodically as specified
in the inspection program.
(ii) Collect fees.
(iii) Order and oversee the testing of gas pipelines
as authorized by Federal law and regulation.
(iv) File reports with the United States Secretary
of Transportation as required to maintain the delegated
authority.
(2) The department shall seek Federal authority to adopt
safety standards related to the monitoring and testing of
interstate gas pipelines.
(3) Upon designation under paragraph (1) or under a
grant of authority under paragraph (2), to the extent
authorized by Federal law, the department shall adopt rules
for interstate gas pipelines that are no less stringent than
the Commonwealth's laws for intrastate gas pipelines.
(c) Inspection.--The department may inspect a record, map or
written procedure required by Federal law to be kept by:
(1) a hazardous liquid pipeline company concerning the
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reportable releases and the design, construction, testing or
operation and maintenance of hazardous liquid pipelines; and
(2) a gas pipeline company concerning the reporting of
gas releases and the design, construction, testing or
operation and maintenance of gas pipelines.
Section 6. This act shall take effect in six months.
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