BP BHEAD INT H [atlas:bill]

AN ACT Relating to oil and gas pipeline safety; amending RCW 19.122.050 and 19.122.070; adding a new section to chapter 19.122 RCW; adding a new section to chapter 48.48 RCW; adding a new chapter to Title 70 RCW; creating new sections; repealing RCW 81.88.040; prescribing penalties; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. (1) The intent of this act is to protect the health and safety of the citizens of the state of Washington and the quality of the state's environment by developing and implementing environmental and public safety measures applicable to persons transporting hazardous liquids and gas by pipeline within the state of Washington. The legislature finds that public safety and the environment may best be protected by adopting standards that are equal to, or more stringent than, those adopted by the federal government.

(2) It is the further intent of this act to ensure that the state of Washington fully activate the authority it is currently provided under the federal pipeline safety act (49 U.S.C. Sec. 60101 et seq.) as it exists on the effective date of this act. In addition, it is the intent of this act to provide policy direction for the development of state pipeline safety programs in the event of a delegation of authority to the state for inspection of interstate pipelines.

(3) It is also the intent of the legislature that the governor work with the state congressional delegation in seeking the following improvements to the federal pipeline safety act (49 U.S.C. Sec. 60101) when it is being reauthorized:

(a) The elimination of federal preemption; or

(b) Amendments that direct the federal office of pipeline safety to delegate authority to qualified states for:

(i) The regulation of interstate hazardous liquid and natural gas pipelines using standards equal to or more stringent than federal standards; and

(ii) The enforcement of state and federal requirements related to pipeline safety.

(4) In working with the state congressional delegation on reauthorization of the federal pipeline safety act, it is the intent of the legislature that the governor also seek the following:

(a) Requirements for rapid shutdown of ruptured pipelines;

(b) Periodic inspection and testing of pipelines; and

(5) In addition, it is the intent of the legislature that the governor work with the state congressional delegation in seeking higher levels of funding for state pipeline safety activities.

(6) While the legislature acknowledges that serious accidents have occurred for hazardous liquid, gas, and liquified natural gas pipelines in this nation and elsewhere, it recognizes that there are fundamental differences between hazardous liquid pipelines and natural gas pipelines and that a different system of safety regulations must be applied for each kind of pipeline.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Department" means the department of ecology.

(2) "Failsafe system" means a system or device that prevents a pipeline from exceeding its maximum operating pressure.

(3) "Gas" has the meaning given to it in 49 C.F.R. Part 192.

(4) "Hazardous liquid" means: (a) Petroleum, petroleum products, or anhydrous ammonia as those terms are defined in 49 C.F.R. Part 195 in effect March 1, 1998; and (b) carbon dioxide. The department by rule may incorporate by reference other substances designated as hazardous by the secretary of transportation under 49 U.S.C. Sec. 60101(a)(4).

(5) "Incident" means any of the following events:

(a) An event that involves a release of gas from a pipeline or of liquified natural gas or gas from a liquified natural gas facility and:

(i) A death or personal injury requiring in-patient hospitalization; or

(ii) Estimated property damage, including the cost of gas lost to the operator or others, or both, of fifty thousand dollars or more;

(b) An event that results in an emergency shutdown of a liquified natural gas facility; or

(c) An event that is significant, in the judgment of the operator, even it did not meet the criteria in (a) or (b) of this subsection.

(6) "Local government" means a subdivision of the state or a city or town.

(7) "Person" means an individual, partnership, franchise holder, association, corporation, a state, a city, a county, or any subdivision or instrumentality of a state, and its employees, agents, or legal representatives.

(8) "Pipeline" or "pipeline system" means all parts of a pipeline facility through which hazardous liquid or carbon dioxide moves in transportation, including, but not limited to, line pipe, pumping units, fabricated assemblies associated with pumping units, metering and delivery stations and fabricated assemblies therein, breakout tanks, and excluding process pipelines and transfer pipelines as defined in chapter 173-180A WAC, as it exists on the effective date of this act.

(9) "Pipeline company" means a person or entity constructing, owning, or operating a pipeline for transporting hazardous liquid or gas.

(10) "Reportable release" means a spilling, leaking, pouring, emitting, discharging, or any other uncontrolled escape of a hazardous liquid in excess of one barrel, or forty-two gallons.

(11) "Safety management systems" means management systems that include coordinated interdisciplinary evaluations of the effect of significant changes to a pipeline system before such changes are implemented.

NEW SECTION. Sec. 3. The hazardous liquid pipeline safety account is created in the custody of the state treasurer. All receipts from the federal office of pipeline safety and any other state or federal funds provided for hazardous liquid pipeline safety must be deposited in the account. Expenditures from the account may be used only for funding the pipeline safety program within the department of ecology. Only the director of the department or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION. Sec. 4. (1) The department is responsible for the administration and enforcement of all laws related to hazardous liquid pipeline safety. To the extent not prohibited by federal law, the department shall develop and implement a comprehensive program of pipeline safety that applies equally to interstate and intrastate pipelines.

(2) By December 1, 2000, the department shall develop for the consideration of the legislature in the 2001 session a program that promotes the best achievable protection of public health and the environment. This program shall include the following elements:

(a) Requirements for pipeline companies to develop and implement structural integrity management plans;

(b) A schedule of inspection and testing within the pipeline distribution system of:

(i) All mechanical components;

(ii) All electronic components; and

(iii) The structural integrity of all pipelines as determined through either pressure testing, internal inspection tool surveys, or a combination of techniques;

(d) Safety management systems;

(e) Requirements related to the rapid location and isolation of all reportable releases from pipelines;

(f) Emergency response procedures and emergency response training;

(g) Requirements related to the training and certification of personnel who operate pipelines and pipeline systems;

(h) Measures aimed at the prevention of third-party excavation damage to pipelines through the establishment and required use of a one-call system and through optional training requirements for municipal workers and construction workers.

(3) In providing this program to the legislature for review as provided in subsection (2) of this section, the department shall clearly identify whether federal authority for each program element exists or must be delegated. Upon review and approval by the legislature of the department's program in the 2001 session, the department shall implement the program elements for which it has authority.

(4) Prior to receiving delegation of authority from the federal office of pipeline safety, the department shall ensure that intrastate pipelines are not held to a higher standard than interstate pipelines.

(5) After the state has received delegation of inspection authority from the federal office of pipeline safety, the program elements in subsection (2) of this section shall be implemented through operations safety plans submitted by pipeline companies to the department for approval. The department shall approve such plans after they have been deemed fit for service. A plan shall be deemed fit for service when it results in pipelines that are designed, developed, constructed, operated, and periodically modified to provide the highest practicable level of public safety.

(6) The department shall serve as the single point of contact within the state for information related to hazardous liquid pipeline safety and shall provide technical assistance on hazardous liquid pipeline safety to local government authorities upon request.

(7) The department shall evaluate proposals developed by the federal office of pipeline safety and other agencies and organizations related to methods and technologies for testing the integrity of hazardous liquid pipeline structure, leak detection, and other elements of pipeline operation.

NEW SECTION. Sec. 5. (1) The department and the utilities and transportation commission shall jointly support the governor in seeking delegation of federal authority to inspect interstate pipelines and enforce state and federal pipeline safety requirements. The department and the utilities and transportation commission shall establish and submit to the United States secretary of transportation an inspection program that complies with requirements for delegated interstate agent inspection authority. To the extent that federal delegation of interstate agent inspection authority permits, the inspection program for interstate pipelines, gas, and liquified natural gas facilities must be the same as the inspection program for intrastate pipelines and facilities. If the secretary of transportation delegates inspection authority to the state as provided in this subsection, the department and the utilities and transportation commission, at a minimum, shall do the following to carry out the delegated federal authority:

(a) Inspect hazardous liquid and gas pipelines and liquified natural gas facilities periodically as specified in the inspection program;

(b) Collect inspection fees;

(c) Order and oversee the testing of pipelines and liquified natural gas facilities as authorized by federal law and regulation; and

(d) File reports with the United States secretary of transportation as required to maintain the delegated inspection authority.

(2) In addition, the department and commission shall inspect, as necessary, any record, map, or written procedure required by federal law to be kept by a pipeline company concerning the reporting of reportable releases, and the design, construction, testing, or operation and maintenance of pipelines and liquid natural gas facilities.

NEW SECTION. Sec. 6. (1) All powers, duties, and functions of the utilities and transportation commission pertaining to hazardous liquid pipeline safety are transferred to the department of ecology. Responsibilities for the safety of gas pipelines and liquified natural gas facilities shall remain with the commission. Such powers, duties, and functions do not include rate setting as provided in chapters 80.28, 80.24, and 81.24 RCW. All references to the commission or the utilities and transportation commission in the Revised Code of Washington shall be construed to mean the director or the department of ecology when referring to the functions transferred in this section.

(2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the utilities and transportation commission pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of ecology. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the utilities and transportation commission in carrying out the powers, functions, and duties transferred shall be made available to the department of ecology. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of ecology.

(b) Any appropriations made to the utilities and transportation commission for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be divided proportionally based on program responsibilities and shared with the department of ecology.

(c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

(3) All employees of the utilities and transportation commission engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of ecology. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of ecology to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

(4) All rules and all pending business before the utilities and transportation commission pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of ecology. All existing contracts and obligations shall remain in full force and shall be performed by the department of ecology.

(5) The transfer of the powers, duties, functions, and personnel of the utilities and transportation commission shall not affect the validity of any act performed before the effective date of this section.

(6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

(7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 7. (1) A pipeline safety committee is established to advise the department and other appropriate federal, state, and local government agencies and officials on matters relating to hazardous liquid and gas pipeline safety, routing, construction, operation, and maintenance. The committee shall not exceed fifteen members. Members of the committee shall be appointed by the governor to staggered three-year terms and, at a minimum, shall consist of members of the general public, the utilities and transportation commission, the department of ecology, and representatives from each of the following: Interstate natural gas pipeline operators, natural gas local distribution companies, liquid fuel pipeline operators, and intrastate liquid fuel pipeline operations and representatives of local government, including elected officials. The committee shall review and comment on proposed rules and on the operation of the state pipeline safety program.

(2) Expenses for this group, as well as staff support provided by the department, shall be funded through a legislative appropriation to the department.

NEW SECTION. Sec. 8. A new section is added to chapter 19.122 RCW to read as follows:

The utilities and transportation commission shall establish a single state-wide toll-free telephone number to be used for referring excavators to the appropriate one-call center. The utilities and transportation commission shall consult with the Washington utilities coordinating council to establish minimum standards and best management practices for one-call centers consistent with the recommendations of the governor's fuel accident prevention and response team issued in December 1999.

Sec. 9. RCW 19.122.050 and 1984 c 144 s 5 are each amended to read as follows:

(1) An excavator who, in the course of excavation, contacts or damages an underground facility shall immediately notify the utility owning or operating such facility and the one-number locator service. If the damage causes an emergency condition, the excavator causing the damage shall also immediately alert the appropriate local public safety agencies and take all appropriate steps to ensure the public safety. No damaged underground facility may be buried until it is repaired or relocated by the pipeline operator.

(2) Whenever excavation work occurs within five feet of a hazardous liquid or gas pipeline, the one-call system shall be notified by the excavator at least two working days prior to the start of excavation.

(3) The owner of the underground facilities damaged shall arrange for repairs or relocation as soon as is practical or may permit the excavator to do necessary repairs or relocation at a mutually acceptable price.

NEW SECTION. Sec. 10. A new section is added to chapter 48.48 RCW to read as follows:

(1) In consultation with the emergency management program within the state military department, the department of ecology, and local emergency services organizations, the chief of the Washington state patrol, through the director of fire protection or his or her authorized deputy, shall:

(a) Evaluate the preparedness of local first responders in meeting emergency management demands under subsection (2) of this section; and

(b) Conduct an assessment of the equipment and personnel needed by local first responders to meet emergency management demands related to pipelines.

(2) The chief of the Washington state patrol, through the director of fire protection or his or her deputy, shall develop curricula for training local first responders to deal with pipeline accidents. The curricula shall be developed in conjunction with pipeline companies and local first responders, and shall include a timetable and costs for providing training as defined in the curricula to all communities housing pipelines. Separate curricula shall be developed for hazardous liquid, liquified natural gas, and gas pipelines so that the differences between pipelines may be recognized and appropriate accident responses provided. The need for a training program for regional incident management teams shall also be evaluated.

(3) In consultation with other relevant agencies, the chief of the Washington state patrol, through the director of fire protection or his or her deputy, shall identify the need and means for achieving consistent application of the national interagency incident management system.

(4) For the purposes of this section, "local first responders" means police, fire, emergency medical staff, and volunteers.

NEW SECTION. Sec. 11. (1) After a pipeline company has been notified by an excavator pursuant to RCW 19.122.050 that excavation work will uncover any portion of the pipeline, the pipeline company shall ensure that the pipeline section in the vicinity of the excavation is examined for damage prior to being reburied.

(2) Immediately upon receiving information of third-party damage to a hazardous liquid pipeline, the company that owns or operates the pipeline shall terminate the flow of hazardous liquid in that pipeline until it has visually inspected the pipeline. After visual inspection, a pipeline company shall determine whether the pipeline section that has sustained third-party damage should be replaced or repaired, or whether it is safe to resume pipeline operation. A record of the company's inspection report and test results shall be provided to the department consistent with reporting requirements under 49 C.F.R. 195 Subpart B.

(3) Pipeline companies shall immediately notify local first responders and the department of any reportable release from a pipeline.

NEW SECTION. Sec. 12. The department of labor and industries shall conduct an assessment of the current skills and training needs that qualify pipefitters and fuel gas installers to construct, assemble, maintain, or repair any hazardous liquid or gas pipeline within the state. The department shall report its findings to the legislature by October 1, 2000.

Sec. 13. RCW 19.122.070 and 1984 c 144 s 7 are each amended to read as follows:

(1) Any person who fails to notify the one-call system of excavation work that is planned to occur within the right-of-way of a hazardous liquid pipeline is subject to a civil penalty of not more than ten thousand dollars for each violation.

(2) Any person who violates any provision of this chapter other than in subsection (1) of this section, and which violation results in damage to underground facilities, is subject to a civil penalty of not more than one thousand dollars for each violation. All penalties recovered in such actions shall be deposited in the general fund.

((~~(2)~~)) (3) Any ((~~excavator~~)) person who willfully or maliciously damages a field-marked underground facility shall be liable for treble the costs incurred in repairing or relocating the facility.

(4) In those cases in which an excavator fails to notify known underground facility owners or the one-number locator service, any damage to the underground facility shall be deemed willful and malicious and shall be subject to treble damages for costs incurred in repairing or relocating the facility, in addition to penalties specified in subsection (1) of this section.

((~~(3)~~)) (5) This chapter does not affect any civil remedies for personal injury or for property damage, including that to underground facilities, nor does this chapter create any new civil remedies for such damage.

NEW SECTION. Sec. 14. The department shall adopt rules: (1) Setting penalty amounts, but may not exceed the penalties specified in the federal pipeline safety laws, 49 U.S.C. Sec. 60101 et seq.; (2) establishing procedures for mitigating penalties assessed; and (3) incorporating by reference other substances designated as hazardous by the secretary of transportation under 49 U.S.C. Sec. 60101(a)(4).

NEW SECTION. Sec. 15. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 16. This act may be known and cited as the Washington state pipeline safety act.

NEW SECTION. Sec. 17. Sections 1 through 7, 11, and 14 through 16 of this act constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 18. RCW 81.88.040 (Intrastate pipeline safety standards--Definitions--Rules--Violations) and 1998 c 123 s 1 are each repealed.

NEW SECTION. Sec. 19. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2000, in the omnibus appropriations act, this act is null and void.

NEW SECTION. Sec. 20. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.