FINAL BILL REPORT

SHB 1388

C 91 L 09

Synopsis as Enacted

Brief Description: Changing the date for setting the amount of pipeline safety fees.

Sponsors: House Committee on Technology, Energy & Communications (originally sponsored by Representatives Jacks, McCoy, Crouse and Morris; by request of Utilities & Transportation Commission).

House Committee on Technology, Energy & Communications

Senate Committee on Environment, Water & Energy

Background:

Pipeline Safety Account.

Gas companies, interstate gas pipeline companies, and hazardous liquid pipeline companies subject to inspection or enforcement by the Utilities and Transportation Commission (UTC) must pay an annual pipeline safety fee to the UTC. Fees received by the UTC must be deposited in the Pipeline Safety Account (Account). Any penalties collected by the UTC enforcing state pipeline safety standards are deposited into the Account. Grants received by the Pipeline Safety Program from the U.S. Department of Transportation's Federal Pipeline and Hazardous Materials Safety Administration (PHMSA) must be deposited into the Account. Expenditures from the Account must be used for funding pipeline safety.

Pipeline Safety Fees.

Pipeline safety fees are set by the UTC on a yearly basis based on miles reported by the gas pipeline companies, interstate gas pipeline companies, and hazardous liquid pipeline companies, and number of hours charged to a company. The UTC sets the amount of the fee payable by each regulated entity by general order before July 1 of each year.

The aggregate amount of fees must be sufficient to recover the reasonable costs of administering the pipeline safety program, taking into account federal funds used to offset the costs. The fees must be sufficient to adequately fund pipeline inspection personnel, the timely review of pipeline safety and integrity plans, the timely development of spill response plans, the timely development of accurate maps of pipeline locations, participation in federal pipeline safety efforts, and the staffing of the Citizens Committee on Pipeline Safety.

Pipeline and Hazardous Material Safety Administration.

The PHMSA, acting through the Office of Pipeline Safety (OPS), administers the national regulatory program to assure safe transportation of natural gas, petroleum, and other hazardous materials by pipeline. The federal/state partnership helps to assure uniform implementation of the Pipeline Safety Program nationwide.

The OPS is authorized to reimburse a state agency up to 80 percent of the actual cost for carrying out its Pipeline Safety Program, including the cost of personnel and equipment. The actual amount of federal reimbursement depends upon the availability of appropriated funds and state program performance.

Reimbursements from the PHMSA to state Pipeline Safety Programs occur after July 1 of each year, usually in late summer.

Summary:

The UTC is permitted to establish by rule the date by which it determines the annual amount of the pipeline safety fee payable by gas pipeline, interstate gas pipeline, and hazardous liquid waste companies.

Reference to a repealed statute is removed.

Votes on Final Passage: