Written by Chloe Marie – Research Specialist
On June 13, 2019, the Pennsylvania Public Utility Commission (Commission)
published a notice
of proposed rulemaking seeking comment on possible amendments or enhancements
to regulations governing pipeline safety standards. On that same day, the
Commission also published a notice of proposed rulemaking addressing financial
reporting for public utilities. The Commission is looking for public input into
ways of better regulating the design, construction, operations, and maintenance
of public utilities, such as transportation pipelines in intrastate commerce.
Ultimately, the Commission is considering whether the hazardous liquid public
utility safety standards laid down in Chapter 59 of the Pennsylvania Code
should be amended. In addition, with regard to financial reporting
requirements, the Commission proposed to review the current public utility
reporting regulations codified in Chapter 73 of the Pennsylvania Code to
determine whether annual depreciation reporting, service life study reporting,
and capital investment reporting requirements should be included in the
legislation.
This article addresses both advance notices and provide an overview of the
specific areas where comments have been requested.
First, the Commission is asking for observations and comments on the
existing Part 195 regulations relating to the minimum construction and design
standards of hazardous liquid public utilities especially with regards to
pipeline materials and specifications, coverings over buried pipelines,
underground clearances, and valves. Section 195.8 currently requires that all
pipelines carrying hazardous liquids must be constructed with steel pipe;
however, the Commission has requested discussion on other potential materials to
be used in the construction of these pipelines. The Commission also is seeking
comment on the depth-of-cover placement over a buried pipeline necessary to
protect the pipeline from accidental damage, which is regulated under Section 195.248.
Furthermore, the Commission is requesting comment on the initial distance of 12
inches set forth in Section 195.250 between a pipe installed underground,
especially a hazardous liquid public utility pipeline, and other underground
services. Finally, the Commission has asked for comment on the appropriate
location of pipeline valves regulated under Section 195.258 to further reduce
the risk of damage or pollution from accidental hazardous liquid discharge.
Second, the Commission has requested comment on the existing minimum
operation and maintenance standards particularly when considering pipeline
conversion, construction compliance, pressure testing and maximum operating
pressure, line markers, inspection of pipeline rights-of-ways, emergency flow restricting
devices, leak detection, and corrosion control and cathodic protection. The
Commission is seeking comment on the question of how to improve the procedure
involving the conversion of pipeline infrastructure as set out in Section 195.5
and how to best operate and maintain hazardous liquid public utility pipelines
based on their ages, as specified in Section 195.401(c). In addition, the
Commission is looking for input on pressure testing frequency for all hazardous
liquid public utility pipelines as well as recording requirements for pressure
testing and maximum operating pressure. The Commission also seeks comment
involving the care of pipeline rights-of-way and inspection frequency,
currently set to be “at least 26 times each calendar year,” according to
Section 195.412. As for the impacts of hazardous liquid public utility
pipelines on the environment, the Commission seeks comment on the installation
of remote-control valves on such pipelines located in highly sensitive areas to
serve as preventative measures on “whether minimum threshold requirements can
be established for leak detection systems in all pipelines and what leak detection
technologies are appropriate for use.” The Commission also invites the public
to express opinions on the adequacy of measures aimed at preventing hazardous
liquid public utility pipelines from suffering both external and internal
corrosion.
Third and last, the Commission seeks public input on a variety of other topics,
including utility interactions with local government officials, specific
enhancements to public awareness programs, regulation of construction
techniques (such as horizontal directional drilling), accident and reporting criteria
and notification, protection of public and private water wells and supplies,
background investigations of employees and contractors, and integration of new
regulations on existing facilities. In the Advance Notice, the Commission
declared that it needs to “proceed expeditiously, but cautiously, acknowledging
that [its] actions must be compatible with the federal pipeline safety laws at
49 CFR Part 195” before adding that “significant improvements to hazardous
liquid public utility safety standards can be accomplished by building upon the
federal pipeline safety laws.”
The public has until August 28, 2019, to submit their comments, after
which the Commission will review and consider all relevant comments and issue a
formal Notice of Proposed Rulemaking with proposed regulations.
Notice of Proposed Rulemaking Regarding Depreciation
Reporting and Capital Planning for Crude Oil, Gasoline, or Petroleum Products
Transportation Pipelines
In this Notice of Proposed Rulemaking, the Commission proposes to require
that crude oil, gasoline, and petroleum products transportation pipeline public
utilities file annual depreciation reports, service life study reports, and
capital investment plan reports. The purpose of these reports is to determine
whether a public utility will be in a financial position to provide a reliable
service to the community. In this regard, the Commission declared that it
cannot “properly evaluate the justness and reasonableness of a public utility’s
rates and rate structure without examining a company’s earnings and
depreciation practices.”
The public has 30 days from the date of the Notice publication in the
Pennsylvania Bulletin to submit their comments. The Notice has not yet been
published in the Bulletin.
References:
This material is based upon work supported by the National Agricultural Library, Agricultural Research Service, U.S. Department of Agriculture.
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