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PRINTER'S NO. 3937
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2605
Session of
2018
INTRODUCED BY C. QUINN, WATSON, CORBIN, CHARLTON, B. O'NEILL AND
BARRAR, SEPTEMBER 5, 2018
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
SEPTEMBER 5, 2018
AN ACT
Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated
Statutes, providing for an impact fee for natural gas and oil
pipelines; establishing the Pipeline Impact Fund; and
imposing powers and duties on the Pennsylvania Public Utility
Commission.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 58 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 24
IMPACT FEE FOR NATURAL GAS AND OIL PIPELINES
Sec.
2401. Definitions.
2402. Administration.
2403. Fund.
2404. Fee.
§ 2401. 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:
"Affected area." A high-consequence area as defined in 49
CFR § 192.903 (relating to what definitions apply to this
subpart?).
"Commission." The Pennsylvania Public Utility Commission.
"Fund." The Pipeline Impact Fund established in section 2403
(relating to fund).
"Impact pipeline." A pipeline which is a transmission and
gathering line for oil or natural gas.
"Natural gas." A fossil fuel consisting of a mixture of
hydrocarbon gases, primarily methane, and possibly including
ethane, propane, butane, pentane, carbon dioxide, oxygen,
nitrogen and hydrogen sulfide and other gas species. The term
includes natural gas from oil fields known as associated gas or
casing head gas, natural gas fields known as nonassociated gas,
coal beds, shale beds and other formations. The term does not
include coal bed methane.
§ 2402. Administration.
(a) Duties.--The commission has the following duties to
implement this chapter:
(1) Collect and deposit money under section 2404(a)(1)
and (b) (relating to fee).
(2) Carry out section 2403(d) (relating to fund).
(b) Powers.--The commission shall promulgate regulations to
implement this chapter.
§ 2403. Fund.
(a) Establishment.--The Pipeline Impact Fund is established
as a separate fund in the State Treasury.
(b) Sources.--The following are the sources of the fund:
(1) Fees under section 2404(a)(1) (relating to fee).
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This paragraph includes interest for late payment.
(2) Appropriations.
(3) Return on money in the fund.
(c) Nonlapse.--The money in the fund is continuously
appropriated to the fund. This appropriation shall not lapse at
the end of a fiscal year.
(d) Utilization.--The commission shall use the fund as
follows:
(1) Each year, up to 10% of the money in the fund may be
used for administration.
(2) Fifty percent of the money which is not used under
paragraph (1) shall be used to make an annual payment to each
county where an affected area is located.
(3) The remainder of the money which is not used under
paragraphs (1) and (2) shall be used to make an annual
payment to each municipality, other than a county, where an
affected area is located.
§ 2404. Fee.
(a) Imposition.--
(1) Except as provided in paragraph (2), an operator
that utilizes an impact pipeline shall pay to the commission
a fee based on acreage of linear feet plus right-of-way width
using the county average land value in an affected area.
(2) The fee under paragraph (1) shall not be imposed
upon an impact pipeline in existence on the effective date of
this paragraph.
(b) Deposit.--The commission shall deposit the money
collected under section 2403(b)(1) (relating to fund).
Section 2. This act shall take effect as follows:
(1) The following provisions shall take effect
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immediately:
(i) The addition of 58 Pa.C.S. § 2402(b).
(ii) This section.
(2) The remainder of this act shall take effect in 60
days.
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