Senate Environmental Resources and Energy & Senate Consumer Protection and Professional Licensure Committees Holds Hearing on Pipeline Safety, SB 488
The two committees held a joint public hearing on pipeline safety on March 20.
Chairman of Environmental Resources and Energy Gene Yaw (R-Lycoming) stated some issues involved in the hearing are personal, but they ask everyone testifying to be respectful of the other people. Minority Chairman of Environmental Resources and Energy John Yudichak (D-Luzerne) commented it is important to note that they are having two standing committees listen to not only the experts but the constituents on an important and serious issue. Chairman of Consumer Protection and Professional Licensure Robert Tomlinson (R-Bucks) added they cannot forget safety or people’s personal property for gas. Minority Chairman of Consumer Protection and Professional Licensure Lisa Boscola (D-Northampton) asked that the companies understand the safety of the community and the impact fee facing communities affected by the pipeline.
Gladys Brown, chair of the Pennsylvania Public Utility Commission (PUC), was joined by Deputy Chief Counsel Robert Young and Manager of Gas Safety Paul Metro. The jurisdictional landscape for the economic, safety, and siting of natural gas and hazardous liquids pipelines is a complicated one, which is why they are here today, Brown said. She stated the three main factors affecting the regulation of pipelines are the commodity being transported, the entity transporting the commodity, and the pipeline route. Brown explained the transportation of natural gas in interstate commerce is regulated at the federal level, by the Natural Gas Act (NGA), and the transportation of hazardous liquids/petroleum products in interstate commerce is regulated by the Interstate Commerce Act (ICA). She added the Federal Energy Regulatory Commission (FERC) is the lead federal regulatory agency for both the NGA and ICA.
Brown stated FERC’s authority under the NGA is exclusive and preempts all state regulation of natural gas in interstate commerce. If the pipeline is part of the interstate pipeline system, the PUC has no regulatory role, such as with the Texas Eastern Pipeline, Columbia Gas Transmission, and the Tennessee Gas Pipeline, Brown said. She stated FERC’s jurisdiction under the ICA is for rate review and approval. FERC’s role is non-exclusive, meaning a pipeline jurisdictional to FERC under the ICA can also provide intrastate service jurisdictional to the PUC. Brown said the PUC and FERC share jurisdiction over six intrastate hazardous liquids pipelines in Pennsylvania, including Sunoco Pipeline L.P.’s Mariner East projects.
Brown explained the commission has a formal agreement with the Pipeline and Hazardous Materials Safety Administration (PHMSA) to enforce the federal pipeline safety laws, and requires that the PUC have a federally-trained workforce of engineers and an active enforcement that monitors compliance with the federal pipeline safety laws. She added the PUC receives federal reimbursement for their enforcement of PHMSA regulations. Brown said the PUC enforces federal pipeline safety laws with respect to public utility and Act 127 pipeline operators.
Brown stated only electric and telecommunications utilities seeking to condemn property to construct aerial lines must first obtain commission approval before proceeding with a condemnation action. She said neither the Public Utility Code nor commission regulations require prior commission approval for a public utility to construct underground lines, whether for the distribution or transmission of water, wastewater, electric, gas or petroleum products. No other public utilities have to obtain the commission’s prior approval to exercise eminent domain and the only prerequisite in the Public Utility Code for a public utility to exercise eminent domain is for it to possess a certificate of public convenience before exercising that power, Brown said.
Brown added the personnel in the Pipeline Safety Division are the commission’s boots on the ground to administer safety regulations pertaining to pipelines. She said the Pipeline Safety Division devoted a significant portion of its resources over the past several years to Sunoco and its Mariner Project. Brown explained the public asking the state to conduct a public risk assessment brings about issues of state law as the information would be protected as it would be confidential. She explained the development of numerous sinkholes in West Whiteland, Chester County, manifested a discernible risk to the continued flow of hazardous liquids through Sunoco’s Mariner East 1 pipeline. Upon notification of these circumstances, the commission acted swiftly to suspend the operation of Mariner East 1; investigated any and all repercussions on the integrity of the pipeline from these circumstances; and placed the burden on Sunoco to prove that reauthorizing the operation of the pipeline is safe, reasonable, and in the public interest, Brown said.
Sen. John Rafferty (R-Montgomery), questioned if any thought has been given to make the pipeline companies relocate and work through additional steps with property owners. Brown said it has not gotten to that point. Sen. Rafferty inquired if it would be helpful to put forth any legislation around the pipeline to help PUC or the Department of Environmental Protection (DEP). Brown stated a bill around the pipeline would not be part of their responsibility. Sen. Rafferty asked if the PUC or any state agency insist pipeline operators interact with municipalities. Metro stated they have the Public Awareness which has the pipeline operator meet with the emergency responders to lay out emergency plans. Sen. Rafferty commented there are companies who will meet with municipal leaders but others like Sunoco do not. Metro said he recently met with about nine township managers who have met with Sunoco. Sen. Rafferty added he is working on a series of bills regarding the pipeline.
Chairman Yaw commented Brown’s explanation of PUC responsibilities is one of the best he has received. He questioned what hazardous liquids are. Metro explained an example would be propane in liquid form and they have regulations separate from natural gas. Chairman Yaw inquired if the Mariner 2 has this. Metro said once it is completed it will move liquid. Chairman Yaw asked if they keep track of incidents that occur. Brown replied they keep track of every incident. Chairman Yaw said there are 15,000 miles of pipeline in Pennsylvania. He asked how many incidents occurred in 2017. Metro said there were seven natural gas incidents, one hazardous liquids incident, and they have about three serious incidents a year.
Domenic Rocco, acting environmental manager for the DEP’s Regional Permit Coordination Office, discussed the main regulations that related to pipelines. He said Chapter 102 regulates erosion and sediment plans that must be implemented. Chapter 105 regulates water obstructions and chapter 93 protects citizens and designated uses of water such as protecting endangered species, Rocco said. He explained Chapter 106 regulates duties undertaken by political subdivisions such as municipalities and also public utilities. Rocco said the post-permit application is online for public review. DEP works closely with County Conservation District Offices to make sure projects are inspected on a regular basis, Rocco said. He added DEP has suggestions for legislation regarding pipeline development. Rocco stated DEP does not have the authority to regulate private water wells and cannot protect private waters.
Chairman Yaw commented one thing that was mentioned which affects his area is the registration of private and public water wells. He said he has heard 40 percent of private wells in his district do not meet drinking water standards. Chairman Yaw said there is a communication problem here that needs addressed.
Sen. Lisa Baker (R-Luzerne) stated her bill, SB 488, would transfer oversight to the PUC. She questioned how many notice violations have been issued to interstate projects and if the department grades the violations. Rocco responded they evaluate it on a case by case basis. He stated the notices are available to everyone on the pipeline portal. Sen. Baker questioned if the department needs geotechnical standards because of Horizontal Directional Drilling (HDD). Rocco explained the department uses studies that are provided to them and are working on improving standards for the information they receive.
Sen. Leach said with the 2.5 million miles of pipelines in America there have been many incidents over the years. He asked why there are still so many problems. Rocco said he does not have an opinion, but knows that they are working with the companies to improve plans which will then improve complaints. He said the plans will lessen risks and incidents. Sen. Leach questioned if there is a point where the department will pull the plug on the project. Rocco replied there would be at some point but is unsure what the criteria would be.
Keith Coyle, chair of the Pipeline Safety Group for the Marcellus Shale Coalition (MSC), explained pipelines are the safest and most reliable means of transporting energy products. He suggested if they look at the data available this country has gotten better at moving products by pipeline. Coyle said there are two primary regulators: PHMSA and PUC. He added the coalition is working on developing new recommended products that contain safety standards and hopes to have the standards published later this year.
Sen. Rafferty questioned what happens when there is a bad apple in the bunch. Coyle replied they put an emphasis on being cooperative as much as possible and should share information with the local communities. He said MSC believes in getting ahead of the issues and making the system as safe as possible. Sen. Rafferty asked what procedure the coalition put in place and if there is any training given to first responders. Coyle stated they host a pipeline safety seminar to bring in experts across the field to share ideas.
Sen. Dinniman commented no one is solving the problem with Sunoco. He suggested the coalition put their foot down on bad apples or rogue companies. Coyle responded MSC is working to find a way to make the pipelines safer, but they are the safest option. Sen. Dinniman added he does not disagree that it is the safest way but companies need to say to Sunoco that it is messing it up for the rest of them.
Sen. Leach stated there is a problem as people look at the history of corporate America and with this specific issue there have been a lot of problems. He asked as a person how comfortable Coyle would be having this within feet of his house or elementary school. Coyle responded they live in a world full of risk and the best thing for the industry to do is be honest about the risk, say where the risk is, and work to alleviate the risks. Sen. Leach questioned if Coyle thinks people are misinformed or overstating the risks. Coyle said he thinks that people in the country and state have a right to be involved in the process. He stated they have legitimate concerns but the industry can manage the risks. Sen. Leach again asked what to do if going upwind after a leak is towards the pipe. Coyle said they have to refer to the emergency response people handling the system. He added there are industry practices and regulations that deal with that but refer to companies and folks on the ground.
Chairman Yaw said one of the things he is hearing is the lack of communication, even between government agencies. Another thing is they are dealing with a bad apple such as Sunoco and the way they deal with people, Chairman Yaw said. He added some companies decided to have community meetings within so many feet of a well site. Overall communication is a large problem, Chairman Yaw said.
Chairman Tomlinson said in Williams’ written testimony a sentence wraps up the main problem that there are bad actors that need to be held accountable. Chairman Tomlinson stated they have good operators and companies but they need to work the problem out.
Governor’s Office Publishes Regulatory Agenda
By an Executive Order issued in 1996, all agencies under the jurisdiction of the Governor are required to submit for publication semi-annually an agenda of regulations under development or consideration. The agendas are compiled to provide members of the regulated community advanced notice of regulatory activity. It is the intention of the Administration that these agendas will serve to increase public participation in the regulatory process. Agency contacts should be contacted for more information regarding the regulation and the procedure for submitting comments. The following agenda of possible interest to PSPE was published in the March 3, 2018 issue of the PA Bulletin.
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State Registration Board for Professional Engineers, Land Surveyors and Geologists |
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Regulation Being Considered |
Proposed Date |
Need and Legal Basis for |
Agency Contact |
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Electronic Seals and Signatures |
Spring 2018, as Proposed |
The proposed regulations would update existing regulations on seals and set forth standard requirements for electronic seals and electronic signing of design documents. The goal of this proposal is to be consistent with proposed regulations of the State Architects Licensure Board and the State Board of Landscape Architects to provide all design professionals with standards that are as consistent as possible with respect to both traditional seals and electronic seals to benefit both the design professionals and their clients. |
Jeannie Bronshtein |
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Renewal Fees |
Final Rulemaking approved by IRRC— |
Under section 9(a) of the Professional Engineer, Land Surveyor and Geologist Registration Law (63 P.S. § 156(a)) (act), the Board is required by law to support its operations from the revenue it generates from fees, fines and civil penalties. In addition, the act provides that the Board shall increase fees if the revenue raised by fees, fines and civil penalties is not sufficient to meet expenditures over a 2-year period. The current fee structure is inadequate to support the operations of the Board. This proposed rulemaking seeks to increase the biennial renewal fee for licensees from $50 to $100 so that revenues are sufficient to cover projected expenditures as required by the act. |
Robin Shearer |
DCNR Posts RFP For Retention of Surveying Firms
The Department of Conservation and Natural Resources is seeking to retain surveying firms for open-end contracts for various surveying services on various civil and environmental projects located on State Park and State Forest lands. Each contract will be for a 12-month period with four 12-month extensions possible. Firms interested are to submit Letters of Interest to Alfred Uzokwe Sr, PE, Director, Bureau of Facility Design and Construction, Rachel Carson State Office Building, 8th Floor, 400 Market Street, PO Box 8451, Harrisburg, PA 17105-8451. For more information, contact John Timbrell at (717) 772-8393. https://www.pabulletin.com/secure/data/vol48/48-13/497.html
Legislative Activity
The following bills of interest to PSPE have been introduced and/or acted upon in the past month.
Bidding / Contracting
HB 1849 RE: Public Works Open Contracting Act (By Rep. Stephen Bloom, et al)
Provides for open contracting by the Commonwealth and its political subdivisions and their agencies and authorities. It establishes that a party who is aggrieved by an act committed by a public body in violation of prohibited practices or discrimination prohibited may file an action in a court of competent jurisdiction to enjoin the act. Further provides the act shall apply to any new contracts moving forward.
Reported as amended from House State Government Committee, read first time, and laid on the table, 3/13/2018
Budget Related Bills
HB 2121 RE: General Appropriation Act of 2018 (by Rep. Stan Saylor, et al)
provides from the General Fund for the expenses of the Executive and Judicial Departments, the State Government Support Agencies and the General Assembly of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2018, to June 30, 2019, for certain institutions and organizations and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2018; to provide appropriations from various funds for the fiscal year July 1, 2018, to June 30, 2019. The effective date is effective immediately and the remained is effective July 1, 2018, or immediately, whichever is later.
Introduced and referred to House Appropriations Committee, 3/1/2018
Reported as committed from House Appropriations Committee, read first time, laid on the table, and Removed from the table, 3/12/2018
Read second time and rereferred to House Appropriations Committee, 3/13/2018
Environmental Building Standards
HB 1486 RE: High Tunnels (by Rep. David Zimmerman, et al)
Amends the Storm Water Management Act, further providing for definitions and for effect of watershed storm water plans. The bill defines “high tunnel” and establishes when a high tunnel shall be exempt from provisions. It also states that any municipality that has adopted a local ordinance or regulations that regulates high tunnels following a watershed storm water plan prior to the effective date shall amend the ordinance or regulation to comply with the subsection.
Read second time, 3/20/2018
Read third time, and passed Senate, 3/26/2018 (49-0)
Signed in the Senate, 3/26/2018
Local/State Government/Regulations
SB 114 RE: Termination of Sewer Service to Commercial Properties (by Sen. John Eichelberger, et al)
Amends Title 53 (Municipalities Generally), in municipal authorities, providing for purposes and powers in the case of an authority that has agreed to provide sewer service to a nonresidential property owner and that owner has failed to pay a sewer bill for at least six months.
Read second time, 3/20/2018
Read third time, and passed Senate, 3/26/2018 (49-0)
SB 1005 RE: County Code Updates (by Sen. John Eichelberger, et al)
Amends the County Code making extensive revisions relating to preliminary provisions; names and corporate powers, classification of counties; fixing and relocating lines and boundaries; county officers; county commissioners and chief clerks; controller; auditors; treasurer; county solicitor; engineer; sheriff and coroner; prothonotary clerks of court, clerk of orphan’s court, register of wills, recorder of deeds; district attorney, assistants and detectives; salaries of county officers; fees of salaried county officers, salary boards, payment of solicitors appointed by county officers; fiscal affairs; contracts and special powers and duties of counties; public health; aeronautics; grounds and buildings; eminent domain and injury to property; recreation places; bridges, viaducts and culverts and roads. Allows the chief ranking deputy that remains in the office of the sheriff in the event of a vacancy to petition the court to designate someone in that office to carry out the functions of the sheriff. Provides for military and veterans affairs; and making editorial changes.
Reported as amended from Senate Local Government Committee, and read first time, 3/20/2018
Read second time, and rereferred to Senate Appropriations Committee, 3/21/2018
Permitting
HB 1959 RE: Permit Administration Act (by Rep. Greg Rothman, et al)
Provides for the administration of permits by state agencies, for a tracking system for permit applications, for the establishment of permit programs and for annual reports. The bill requires state agencies to establish, maintain and make available a secure tracking system for applicants to track the status of applications on their websites. Delineates the types of categories that are required for reporting to the General Assembly.
Reported as amended from House State Government Committee, read first time, and laid on the table, 3/13/2018
Professional Licensure
HB 1343 RE: Continuing Ed Credit Carryover (by Rep. Harry Readshaw, et al)
Amends the act entitled, “An act empowering the General Counsel or his designee to issue subpoenas for certain licensing board activities; providing for hearing examiners in the Bureau of Professional and Occupational Affairs; providing additional powers to the Commissioner of Professional and Occupational Affairs; and further providing for civil penalties and license suspension,” adding that in addition to disciplinary powers and duties, boards and commissions shall have the power to provide for the carryover of any continuing education credits in excess of the number required for biennial renewal. The carryover shall be valid for one biennial renewal term only.
Reported as committed from House Professional Licensure Committee, read first time, and laid on the table, 3/1/2018
Worker’s Comp
SB 963 RE: Impairment Rating Evaluations (by Sen. Kim Ward, et al)
Amends the Workers’ Compensation Act allowing employers to request an Impairment Rating Evaluation after an employee has received total disability compensation for a period of 104 weeks. Requires the employee to submit to a medical evaluation which shall be requested by the insurer within 60 days upon the expiration of the 104 weeks to determine the degree of impairment due to compensable injury. Further provides for physical examination or expert interview.
Laid on the table, removed from the table, 3/26/2018
Copies of all bills of interest can be accessed via the Internet here.
