SENATE BILL REPORT

SSB 5451

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed Senate, March 5, 2009

Title: An act relating to changing the date for setting the amount of pipeline safety fees.

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

Sponsors: Senate Committee on Environment, Water & Energy (originally sponsored by Senators Oemig, Ranker, Rockefeller, Honeyford and Fraser; by request of Utilities & Transportation Commission).

Brief History:

Committee Activity: Environment, Water & Energy: 2/13/09, 2/17/09 [DPS].

Passed Senate: 3/05/09, 46-0.

SENATE COMMITTEE ON ENVIRONMENT, WATER & ENERGY

Majority Report: That Substitute Senate Bill No. 5451 be substituted therefor, and the substitute bill do pass.

Signed by Senators Rockefeller, Chair; Pridemore, Vice Chair; Honeyford, Ranking Minority Member; Delvin, Fraser, Hatfield, Holmquist, Marr, Morton, Ranker and Sheldon.

Staff: Sam Thompson (786-7413)

Background: The State Pipeline Safety Program, administered by the Utilities and Transportation Commission (UTC), is funded by federal grants and fees charged to pipeline companies.  The size of the federal grant determines how much companies are charged. Current law requires the UTC to bill companies for fees before July 1 of each year.  Since the agency does not receive information regarding federal grant funding until later in the summer, this billing is an estimate. The UTC sends final invoices to companies in September, after it receives pertinent grant funding information. It is suggested that UTC billing should be aligned with the federal grant determination to avoid the need for two rounds of billing.

Summary of Substitute Bill: The requirement for the UTC to set pipeline safety fees before July 1 each year is revised to provide that the UTC must set pipeline safety fees before a date it establishes by administrative rule. A reference to a previously repealed section is deleted.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: The UTC should provide pipeline companies with one bill, rather than an estimated invoice and a final "real" invoice. The proposed substitute bill appropriately grants the UTC authority to establish its deadline date for fee-setting by administrative rule, providing necessary flexibility.

Persons Testifying: PRO: Senator Oemig, prime sponsor; Ann Soiza, UTC.