S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    656
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced  by  M.  of  A.  RODRIGUEZ  --  read once and referred to the
   Committee on Corporations, Authorities and Commissions
 
 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:
   § 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 EIGHTEEN; (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.
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04838-01-7

 A. 656                              2
 
 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 EIGHTEEN.
   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  PURSU-
 ANT 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
 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

 A. 656                              3
 
 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.
   § 2. This act shall take effect immediately.