S T A T E   O F   N E W   Y O R K
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                                 7965--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 2, 2015
                               ___________

Introduced  by  M. of A. RODRIGUEZ, COOK, LIFTON, MOSLEY, GALEF, CAHILL,
  JOYNER, COLTON, PEOPLES-STOKES, RICHARDSON, ROBINSON, BICHOTTE, HUNTER
  -- Multi-Sponsored by -- M. of A. BRAUNSTEIN, BUCHWALD, GLICK,  LOPEZ,
  SKARTADOS,  STECK -- read once and referred to the Committee on Corpo-
  rations, Authorities and Commissions -- recommitted to  the  Committee
  on Corporations, Authorities and Commissions in accordance with Assem-
  bly  Rule  3,  sec.  2  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the public service law, in  relation  to  requiring  gas
  corporations  to  file  a  plan  addressing aging or leaking pipelines
  within their service territory

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The public service law is amended by adding a new section
68-b to read as follows:
  S 68-B. AGING OR LEAKING PIPELINES. 1. DEFINITIONS. FOR  THE  PURPOSES
OF  THIS SECTION, THE FOLLOWING WORDS, SHALL, UNLESS THE CONTEXT CLEARLY
REQUIRES OTHERWISE, HAVE THE FOLLOWING MEANINGS:
  (A) "CUSTOMER" SHALL MEAN A RETAIL CUSTOMER RECEIVING END USE  SERVICE
FROM A GAS CORPORATION.
  (B)  "ELIGIBLE INFRASTRUCTURE REPLACEMENT" SHALL MEAN A REPLACEMENT OR
AN IMPROVEMENT OF EXISTING PIPELINE OF  GAS  CORPORATION  THAT:  (I)  IS
PERFORMED  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND SEVENTEEN; (II) IS
DESIGNED TO IMPROVE PUBLIC  SAFETY  AND/OR  INFRASTRUCTURE  RELIABILITY;
(III)  DOES  NOT INCREASE THE REVENUE OF A GAS CORPORATION BY CONNECTING
AN IMPROVEMENT OR INSTALLING NEW PIPELINE FOR THE PRINCIPAL  PURPOSE  OF
SERVING  NEW  CUSTOMERS;  (IV)  REDUCES, OR HAS THE POTENTIAL TO REDUCE,
LOST AND UNACCOUNTED FOR GAS THROUGH A REDUCTION IN GAS LEAKS;  AND  (V)
IS  NOT  INCLUDED  IN  THE  APPROVED RATE BASE OF THE GAS CORPORATION AS
DETERMINED IN THE GAS CORPORATION'S MOST RECENT APPROVED RATE PLAN.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11051-04-6

              

A. 7965--A                          2

  (C) "GAS INFRASTRUCTURE RATE PLAN" SHALL MEAN A  PIPELINE  REPLACEMENT
PROGRAM  CONSTRUCTION PLAN THAT A GAS CORPORATION FILES WITH THE COMMIS-
SION PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
  (D)  "PROJECT"  SHALL  MEAN  AN  ELIGIBLE PIPELINE REPLACEMENT PROJECT
PROPOSED BY A GAS CORPORATION IN A PLAN FILED UNDER THIS SECTION.
  2. A GAS CORPORATION SHALL FILE WITH THE COMMISSION A PLAN TO  ADDRESS
AGING OR LEAKING PIPELINE WITHIN ITS RESPECTIVE SERVICE TERRITORY IN THE
INTEREST  OF  PUBLIC  SAFETY  AND  REDUCING LOST AND UNACCOUNTED FOR GAS
THROUGH A REDUCTION IN GAS LEAKS. THE FILING OF THE PLAN REQUIRED PURSU-
ANT  TO  THIS  SUBDIVISION  SHALL  BE  SUBMITTED  NO  LATER   THAN   THE
THIRTY-FIRST OF OCTOBER, TWO THOUSAND SEVENTEEN.
  3.  (A)  ANY  PLAN FILED WITH THE COMMISSION SHALL INCLUDE, BUT NOT BE
LIMITED TO: (I) ELIGIBLE PIPELINE REPLACEMENT OF MAINS,  SERVICE  LINES,
METERING  SETS,  AND OTHER ANCILLARY FACILITIES COMPOSED OF NON-CATHODI-
CALLY PROTECTED STEEL, CAST IRON, WROUGHT IRON, AND ANY  OTHER  MATERIAL
THE  COMMISSION  DEEMS  LEAK-PRONE, PRIORITIZED TO IMPLEMENT THE FEDERAL
GAS DISTRIBUTION PIPELINE INTEGRITY MANAGEMENT PLAN  ANNUALLY  SUBMITTED
TO  THE  COMMISSION AND CONSISTENT WITH SUBPART P OF 49 C.F.R. PART 192;
(II) AN ANTICIPATED TIMELINE FOR THE COMPLETION OF EACH  PROJECT;  (III)
THE  ESTIMATED  COST  OF  EACH PROJECT; (IV) RATE CHANGE REQUESTS; (V) A
DESCRIPTION OF CUSTOMER COSTS AND BENEFITS UNDER THE PLAN; AND (VI)  ANY
OTHER  INFORMATION  THE  DEPARTMENT  CONSIDERS NECESSARY TO EVALUATE THE
PLAN.
  (B) UPON THE FILING OF THE PLAN REQUIRED UNDER  THIS  SECTION,  A  GAS
CORPORATION  SHALL  INCLUDE A TIMELINE FOR REMOVING ALL LEAK-PRONE PIPE-
LINE ON AN ACCELERATED BASIS, SPECIFYING AN ANNUAL REPLACEMENT PACE  AND
PROGRAM  END  DATE  WITH A TARGET END DATE OF EITHER:  (I) NOT MORE THAN
TWENTY YEARS; OR (II) A  REASONABLE  TARGET  END  DATE  CONSIDERING  THE
ALLOWABLE  RECOVERY  CAP ESTABLISHED PURSUANT TO SUBDIVISION SIX OF THIS
SECTION.  THE COMMISSION SHALL NOT APPROVE A TIMELINE AS PART OF A  PLAN
UNLESS  THE  ALLOWABLE  RECOVERY CAP ESTABLISHED PURSUANT TO SUBDIVISION
SIX OF THIS SECTION PROVIDES  THE  GAS  CORPORATION  WITH  A  REASONABLE
OPPORTUNITY  TO RECOVER ITS EXPENDITURES RELATED WITH REMOVING ALL LEAK-
PRONE INFRASTRUCTURE AND THE ACCELERATED BASIS SET FORTH UNDER THE TIME-
LINE UTILIZING THE COST RECOVERY MECHANISM ESTABLISHED PURSUANT TO  THIS
SECTION.  AFTER  FILING  THE  INITIAL  PLAN, A GAS CORPORATION SHALL, NO
LATER THAN THE THIRTY-FIRST OF OCTOBER OF EACH SUCCEEDING YEAR, AT ANNU-
AL INTERVALS, PROVIDE THE COMMISSION WITH A SUMMARY OF  ITS  REPLACEMENT
PROGRESS  TO  DATE,  A SUMMARY OF WORK TO BE COMPLETED DURING THE SUBSE-
QUENT YEAR AND ANY ADDITIONAL INFORMATION THE  COMMISSION  MAY  REQUIRE.
THE  COMMISSION  MAY  REQUIRE  A  GAS  CORPORATION  TO  FILE  AN UPDATED
LONG-TERM TIMELINE AS PART OF A PLAN IF IT ALTERS  THE  CAP  ESTABLISHED
PURSUANT TO SUBDIVISION SIX OF THIS SECTION.
  4. IF A GAS CORPORATION FILES A PLAN ON OR BEFORE OCTOBER THIRTY-FIRST
FOR  THE  SUBSEQUENT  CONSTRUCTION YEAR, THE COMMISSION SHALL REVIEW THE
PLAN WITHIN SIX MONTHS. THE PLAN SHALL BE EFFECTIVE AS OF  THE  DATE  OF
THE  FILING, PENDING COMMISSION REVIEW. THE COMMISSION MAY MODIFY A PLAN
PRIOR TO APPROVAL AT THE REQUEST OF A CORPORATION OR MAKE OTHER  MODIFI-
CATIONS  TO  A  PLAN  AS  A  CONDITION OF APPROVAL. THE COMMISSION SHALL
CONSIDER THE COSTS AND BENEFITS OF THE PLAN INCLUDING, BUT  NOT  LIMITED
TO,  RATEPAYER IMPACT, WITH SPECIAL CONSIDERATION OF CUSTOMERS RECEIVING
ASSISTANCE THROUGH THE HOME ENERGY ASSISTANCE PLAN, REDUCTIONS  OF  LOST
AND  UNACCOUNTED  FOR  GAS THROUGH A REDUCTION IN GAS LEAKS AND IMPROVE-
MENTS TO PUBLIC SAFETY. THE COMMISSION SHALL GIVE  PRIORITY  REVIEW  AND
GIVE  PRELIMINARY  ACCEPTANCE  TO PLANS SPECIFICALLY DESIGNED TO ADDRESS

A. 7965--A                          3

LEAK-PRONE PIPELINE MOST IMMEDIATELY IN NEED OF  REPLACEMENT,  BASED  ON
STANDARDS ESTABLISHED BY THE COMMISSION.
  5.  IF  THE  COMMISSION  DETERMINES  A  PLAN IS IN COMPLIANCE WITH THE
REQUIREMENTS OF THIS SECTION AND WOULD  REASONABLY  ACCELERATE  PIPELINE
REPLACEMENTS AND PROVIDE BENEFITS, THE COMMISSION SHALL ISSUE ACCEPTANCE
IN WHOLE OR IN PART. A GAS CORPORATION SHALL THEN BE AUTHORIZED TO BEGIN
RECOVERY  OF THE ESTIMATED COSTS OF PROJECTS INCLUDED IN THE PLAN BEGIN-
NING ON MAY FIRST OF THE YEAR FOLLOWING THE INITIAL FILING  AND  COLLECT
ANY  REVENUE  REQUIREMENT,  INCLUDING  DEPRECIATION,  PROPERTY TAXES AND
RETURN ASSOCIATED WITH THE PLAN.
  6. ON OR BEFORE MAY FIRST OF EACH YEAR, A GAS CORPORATION  SHALL  FILE
FINAL  PROJECT DOCUMENTATION FOR PROJECTS COMPLETED IN THE PRIOR YEAR TO
DEMONSTRATE SUBSTANTIAL COMPLIANCE WITH THE PLAN  APPROVED  PURSUANT  TO
SUBDIVISION FIVE OF THIS SECTION AND THAT ALL PROJECT COSTS WERE REASON-
ABLY  AND  PRUDENTLY  INCURRED. THE COMMISSION SHALL INVESTIGATE PROJECT
COSTS WITHIN SIX MONTHS OF SUBMISSION AND SHALL  APPROVE  AND  RECONCILE
THE  AUTHORIZED RATE FACTOR, IF NECESSARY, UPON A DETERMINATION THAT THE
COSTS WERE  REASONABLE  AND  PRUDENT.  ANNUAL  CHANGES  IN  THE  REVENUE
REQUIREMENT  ELIGIBLE  FOR  RECOVERY  SHALL  NOT EXCEED ONE-AND-ONE HALF
PERCENT OF THE GAS CORPORATION'S MOST RECENT CALENDAR YEAR OF TOTAL FIRM
REVENUES, INCLUDING REVENUES ATTRIBUTABLE TO TRANSMISSION  AND  DISTRIB-
UTION  CUSTOMERS.  ANY REVENUE REQUIREMENT APPROVED BY THE COMMISSION IN
EXCESS OF SUCH CAP MAY BE DEFERRED FOR RECOVERY IN THE FOLLOWING YEAR.
  7. ALL RATE CHANGE REQUESTS MADE TO  THE  COMMISSION  PURSUANT  TO  AN
APPROVED  PLAN  SHALL  BE  FILED  ANNUALLY ON A FULLY RECONCILING BASIS,
SUBJECT TO ACCEPTANCE BY THE COMMISSION PURSUANT TO SUBDIVISION FIVE  OF
THIS SECTION. THE RATE CHANGE INCLUDED IN A PLAN PURSUANT TO SUBDIVISION
THREE  OF  THIS  SECTION,  REVIEWED PURSUANT TO SUBDIVISION FIVE OF THIS
SECTION AND TAKING EFFECT ON MAY FIRST PURSUANT TO  SUBDIVISION  SIX  OF
THIS  SECTION SHALL BE SUBJECT TO REVIEW BY THE COMMISSION, TO DETERMINE
WHETHER THE GAS CORPORATION HAS OVER-COLLECTED  OR  UNDER-COLLECTED  ITS
REQUESTED  RATE  ADJUSTMENT WITH ANY SUCH DISCREPANCIES RECONCILED ON AN
ANNUAL BASIS. IF THE COMMISSION DETERMINES THAT ANY OF  THE  COSTS  WERE
NOT  REASONABLY  OR PRUDENTLY INCURRED BY A GAS CORPORATION, THE COMMIS-
SION SHALL DISALLOW THE COSTS AND DIRECT THE GAS CORPORATION  TO  REFUND
THE  FULL  VALUE  OF THE COSTS CHARGED TO CUSTOMERS WITH THE APPROPRIATE
CARRYING CHARGES ON THE OVER-COLLECTED AMOUNTS. IF THE COMMISSION DETER-
MINES THAT ANY OF THE COSTS WERE NOT IN  COMPLIANCE  WITH  THE  APPROVED
PLAN,  THE  COMMISSION  SHALL  DISALLOW THE COSTS FROM THE COST RECOVERY
MECHANISM ESTABLISHED UNDER THIS SECTION AND SHALL DIRECT THE GAS CORPO-
RATION TO REFUND THE FULL VALUE OF THE COSTS CHARGED TO  CUSTOMERS  WITH
THE APPROPRIATE CARRYING CHARGES ON THE OVER-COLLECTED AMOUNTS.
  8.  THE  COMMISSION MAY PROMULGATE ANY RULES AND REGULATIONS NECESSARY
TO EFFECTUATE THE PIPELINE REPLACEMENT PROGRAM PURSUANT TO THIS SECTION.
THE COMMISSION MAY DISCONTINUE THE REPLACEMENT PROGRAM AND REQUIRE A GAS
CORPORATION TO REFUND ANY COSTS CHARGED TO CUSTOMERS DUE TO  FAILURE  TO
SUBSTANTIALLY  COMPLY WITH A PLAN OR FAILURE TO REASONABLY AND PRUDENTLY
MANAGE PROJECT COSTS.
  S 2. This act shall take effect immediately.