NY State Senate Bill 2019-S3613

Senate Bill S3613

2019-2020 Legislative Session

Requires gas corporations to file a plan addressing aging or leaking pipelines within their service territory

download bill text pdf

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to energy and telecommunications
Feb 11, 2019	referred to energy and telecommunications

2019-S3613 (ACTIVE) - Details

See Assembly Version of this Bill:: A2531
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Add §68-b, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A7965
2017-2018: A656
2021-2022: S5795, A3664
2023-2024: S2767

2019-S3613 (ACTIVE) - Summary

Requires gas corporations to file a plan with the public service commission addressing aging or leaking pipelines within their service territory and outlines plans for the replacement of such pipelines.

2019-S3613 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3613

SPONSOR: COMRIE
 
TITLE OF BILL:  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

 
PURPOSE OR GENERAL IDEA OF BILL:

To require gas corporations to develop strategic pipeline infrastructure
replacement.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the public service law by adding a new section 63-gg
called Pipeline modernization and consumer protection.

Part 1 establishes the definition of "gas pipeline facility", which is a
distribution facility and gas utility.

Part 2 establishes that each operator of a gas pipeline facility will

accelerate the repair, rehabilitation, and replacement of gas piping or
equipment that is: (a) leaking; or (b) may pose high risks of leaking,
or may no longer be fit for service, because of: (i) inferior materials,
(ii) poor construction practices, (iii) lack of maintenance, or (iv)
age.

Part 3 establishes that in complying with subdivision two of this
section, the commission shall: (a) develop prioritized timelines to
repair all leaks based on the severity of the leak; (b) adopt a cost-re-
covery program; (c) adopt a standard definition and methodology for
calculating and reporting unaccounted for gas to improve data quali-
ty;(d) adopt limits on cost recovery for the lost and unaccounted for
gas; and (e) require the use of the best available technology to detect
gas leaks.

Part 4 establishes that the New York State energy research and develop-
ment authority will issue non-binding guidelines to identify the best
practices for classifying high-risk pipeline infrastructure and leaks
for repair or replacement. This will take place no later than one year
after the effective date.

Part 5 establishes that the New York State energy research and develop-
ment authority and the commission, no later than a year after the effec-
tive date, will create and publish forms that adopt a standard defi-
nition and methodology for calculating and reporting unaccounted for
gas.

Part 6 establishes that operators of gas pipeline facilities in cities
with a population of one million or more shall establish a database of
pipeline infrastructure that will be shared with the coordinated buil-
dinginspection date analysis.

 
JUSTIFICATION:

Federal requirements related to repairing pipeline leaks are limited to
hazardous leaks, which are leaks that represent an existing or probable
hazard to persons or property and require immediate repair.  There are
no Federal requirements to address slower or less hazardous leaks, which
can allow the leaks to persist =repaired indefinitely.  According to the
Pipeline and Hazardous Materials Safety Administration, the United
States natural gas distribution system still includes 61,000 miles of
bare steel pipe without adequate corrosion protection and 32,000 miles
of cast iron pipe, which was installed beginning in the 1830s and can be
prone to failure. Major recent pipeline explosions that led to human
fatalities occurred in:  Austin, Texas; Philadelphia, Pennsylvania; and
Allentown, Pennsylvania. These explosions were the result of aging,
leaking, and high-risk pipeline infrastructure.

This bill will help create a higher standard of safety in terms of pipe-
line infrastructure, and will lower the cost of the rate that consumers
have to pay for lost and unaccounted for gas. This bill will also help
to improve the environment by limiting the amount of natural gas that
leaks out of faulty pipelines.

 
PRIOR LEGISLATIVE HISTORY:

A656 2017/18-referred to Corporations, Authorities and Commissions

 
FISCAL IMPLICATIONS:

Likely costs related to administrative work of the Department of Public
Service.

 
EFFECTIVE DATE:
This bill shall take effect immediately.

2019-S3613 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3613
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 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  TWENTY;  (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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07013-01-9

 S. 3613                             2
 
   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 TWENTY.
   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

 S. 3613                             3
 
 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.
   § 2. This act shall take effect immediately.

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