AN
ACT Relating to funding hazardous liquid and gas pipeline safety; amending RCW
19.122.055, 81.88.010, 81.88.050, 80.01.080, 81.88.060, 81.88.090, and
81.88.140; adding a new section to chapter 80.24 RCW; adding a new section to
chapter 81.24 RCW; adding a new section to chapter 81.88 RCW; creating a new
section; repealing RCW 81.88.130; providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
intent of this act is to ensure a sustainable, comprehensive, pipeline safety
program, to protect the health and safety of the citizens of the state of
Washington, and maintain the quality of the state's environment. The
legislature finds that public safety and the environment are best protected by
securing permanent funding for this program through establishment of a
regulatory fee imposed on hazardous liquids and gas pipelines.
NEW
SECTION. Sec. 2. A
new section is added to chapter 80.24 RCW to read as follows:
(1)(a)
Every gas company and every interstate gas pipeline company subject to
inspection or enforcement by the commission shall pay an annual pipeline safety
fee to the commission. The pipeline safety fees received by the commission
shall be deposited in the pipeline safety account created in RCW 81.88.050.
(b)
The aggregate amount of fees set shall 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 established under this section shall
be designed to generate revenue not exceeding appropriated levels of funding
for the current fiscal year. At a minimum, the fees established under this
section shall 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 to the
extent allowed by law, and the staffing of the citizens committee on pipeline
safety.
(c)
Increases in the aggregate amount of fees over the immediately preceding fiscal
year are subject to the requirements of RCW 43.135.055.
(2)
The commission shall by rule establish the methodology it will use to set the
appropriate fee for each entity subject to this section. The methodology shall
provide for an equitable distribution of program costs among all entities
subject to the fee. The fee methodology shall provide for:
(a)
Direct assignment of average costs associated with annual standard inspections,
including the average number of inspection days per year. In establishing these
directly assignable costs, the commission shall consider the requirements and
guidelines of the federal government, state safety standards, and good
engineering practice; and
(b)
A uniform and equitable means of estimating and allocating costs of other
duties relating to inspecting pipelines for safety that are not directly
assignable, including but not limited to design review and construction
inspections, specialized inspections, incident investigations, geographic
mapping system design and maintenance, and administrative support.
(3)
The commission shall require reports from those entities subject to this
section in the form and at such time as necessary to set the fees. After
considering the reports supplied by the entities, the commission shall set the
amount of the fee payable by each entity by general order entered before July
1st of each year.
(4)
For companies subject to RCW 80.24.010, the commission shall collect the
pipeline safety fee as part of the fee specified in RCW 80.24.010. The
commission shall allocate the moneys collected under RCW 80.24.010 between the
pipeline safety program and for other regulatory purposes. The commission
shall adopt rules that assure that fee moneys related to the pipeline safety
program are maintained separately from other moneys collected by the commission
under this chapter.
(5)
Any payment of the fee imposed by this section made after its due date must
include a late fee of two percent of the amount due. Delinquent fees accrue
interest at the rate of one percent per month.
(6)
The commission shall keep accurate records of the costs incurred in
administering its gas pipeline safety program, and the records are open to
inspection by interested parties. The records and data upon which the
commission's determination is made shall be prima facie correct in any
proceeding to challenge the reasonableness or correctness of any order of the
commission fixing fees and distributing regulatory expenses.
(7)
If any entity seeks to contest the imposition of a fee imposed under this
section, that entity shall pay the fee and request a refund within six months
of the due date for the payment by filing a petition for a refund with the
commission. The commission shall establish by rule procedures for handling
refund petitions and may delegate the decisions on refund petitions to the
secretary of the commission.
(8)
After establishing the fee methodology by rule as required in subsection (2) of
this section, the commission shall create a regulatory incentive program for
pipeline safety programs in collaboration with the citizens committee on
pipeline safety. The regulatory incentive program created by the commission
shall not shift costs among companies paying pipeline safety fees and shall not
decrease revenue to pipeline safety programs. The regulatory incentive program
shall not be implemented until after the review conducted according to section
4 of this act.
NEW
SECTION. Sec. 3. A
new section is added to chapter 81.24 RCW to read as follows:
(1)(a)
Every hazardous liquid pipeline company as defined in RCW 81.88.010 shall pay
an annual pipeline safety fee to the commission. The pipeline safety fees
received by the commission shall be deposited in the pipeline safety account
created in RCW 81.88.050.
(b)
The aggregate amount of fees set shall 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 established under this section shall
be designed to generate revenue not exceeding appropriated levels of funding
for the current fiscal year. At a minimum, the fees established under this
section shall 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 to the extent
allowed by law, and the staffing of the citizens committee on pipeline safety.
(c)
Increases in the aggregate amount of fees over the immediately preceding fiscal
year are subject to the requirements of RCW 43.135.055.
(2)
The commission shall by rule establish the methodology it will use to set the
appropriate fee for each entity subject to this section. The methodology shall
provide for an equitable distribution of program costs among all entities
subject to the fee. The fee methodology shall provide for:
(a)
Direct assignment of average costs associated with annual standard inspections,
including the average number of inspection days per year. In establishing
these directly assignable costs, the commission shall consider the requirements
and guidelines of the federal government, state safety standards, and good
engineering practice; and
(b)
A uniform and equitable means of estimating and allocating costs of other
duties relating to inspecting pipelines for safety that are not directly
assignable, including but not limited to design review and construction
inspections, specialized inspections, incident investigations, geographic
mapping system design and maintenance, and administrative support.
(3)
The commission shall require reports from those entities subject to this
section in the form and at such time as necessary to set the fees. After
considering the reports supplied by the entities, the commission shall set the
amount of the fee payable by each entity by general order entered before July
1st of each year.
(4)
For companies subject to RCW 81.24.010, the commission shall collect the
pipeline safety fee as part of the fee specified in RCW 81.24.010. The
commission shall allocate the moneys collected under RCW 81.24.010 between the
pipeline safety program and for other regulatory purposes. The commission
shall adopt rules that assure that fee moneys related to the pipeline safety
program are maintained separately from other moneys collected by the commission
under this chapter.
(5)
Any payment of the fee imposed by this section made after its due date must
include a late fee of two percent of the amount due. Delinquent fees accrue
interest at the rate of one percent per month.
(6)
The commission shall keep accurate records of the costs incurred in
administering its hazardous liquid pipeline safety program, and the records are
open to inspection by interested parties. The records and data upon which the
commission's determination is made shall be prima facie correct in any
proceeding to challenge the reasonableness or correctness of any order of the
commission fixing fees and distributing regulatory expenses.
(7)
If any entity seeks to contest the imposition of a fee imposed under this
section, that entity shall pay the fee and request a refund within six months
of the due date for the payment by filing a petition for a refund with the
commission. The commission shall establish by rule procedures for handling
refund petitions and may delegate the decisions on refund petitions to the
secretary of the commission.
(8)
After establishing the fee methodology by rule as required in subsection (2) of
this section, the commission shall create a regulatory incentive program for
pipeline safety programs in collaboration with the citizens committee on
pipeline safety. The regulatory incentive program created by the commission
shall not shift costs among companies paying pipeline safety fees and shall not
decrease revenue to pipeline safety programs. The regulatory incentive program
shall not be implemented until after the review conducted according to section
4 of this act.
NEW
SECTION. Sec. 4. A
new section is added to chapter 81.88 RCW to read as follows:
The
joint legislative audit and review committee shall review staff use, inspection
activity, fee methodology, and costs of the hazardous liquid and gas pipeline
safety programs and report to the appropriate legislative committees by July 1,
2003. The report shall include a comparison of interstate and intrastate
programs, including but not limited to the number and complexity of regular and
specialized inspections, mapping requirements for each program, and allocation
of administrative costs to each program.
Sec.
5. RCW
19.122.055 and 2000 c 191 s 24 are each amended to read as follows:
(1)
Any person who fails to notify the one-number locator service and causes damage
to a hazardous liquid or gas pipeline is subject to a civil penalty of not more
than ten thousand dollars for each violation.
(2)
All civil penalties recovered under this section ((relating to hazardous
liquid pipelines)) shall be deposited into the ((hazardous liquid))
pipeline safety account created in RCW 81.88.050. ((All civil penalties
recovered under this section relating to gas pipelines shall be deposited in
the general fund and expended for the purpose of enforcement of gas pipeline
safety laws.))
Sec.
6. RCW
81.88.010 and 2000 c 191 s 2 are each amended to read as follows:
The
definitions in this section apply throughout this chapter unless the context
clearly requires otherwise.
(1)
"Commission" means the utilities and transportation commission.
(2)
(("Department" means the department of ecology.
(3)))
"Failsafe" means a design feature that will maintain or result in a
safe condition in the event of malfunction or failure of a power supply,
component, or control device.
(((4)))
(3) "Gas" means natural gas, flammable gas, or toxic or
corrosive gas.
(((5)))
(4) "Gas pipeline" means all parts of a pipeline facility
through which gas moves in transportation, including, but not limited to, line
pipe, valves, and other appurtenances connected to line pipe, pumping units,
fabricated assemblies associated with pumping units, metering and delivery
stations and fabricated assemblies therein, and breakout tanks. "Gas
pipeline" does not include process or transfer pipelines.
(((6)))
(5) "Gas pipeline company" means a person or entity
constructing, owning, or operating a gas pipeline for transporting gas. A
"gas pipeline company" does not include: (a) Distribution systems
owned and operated under franchise for the sale, delivery, or distribution of
natural gas at retail; or (b) excavation contractors or other contractors that
contract with a gas pipeline company.
(((7)))
(6) "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.
(((8)))
(7) "Local government" means a political subdivision of the
state or a city or town.
(((9)))
(8) "Person" means an individual, partnership, franchise
holder, association, corporation, a state, a city, a county, or any political
subdivision or instrumentality of a state, and its employees, agents, or legal
representatives.
(((10)))
(9) "Pipeline," "pipeline system," or
"hazardous liquid pipeline" means all parts of a pipeline facility
through which a hazardous liquid moves in transportation, including, but not
limited to, line pipe, valves, and other appurtenances connected to line pipe,
pumping units, fabricated assemblies associated with pumping units, metering
and delivery stations and fabricated assemblies therein, and breakout tanks.
"Pipeline" or "pipeline system" does not include process or
transfer pipelines.
(((11)))
(10) "Pipeline company" or "hazardous liquid pipeline
company" means a person or entity constructing, owning, or operating a
pipeline for transporting hazardous liquid. A "pipeline company"
does not include: (a) Distribution systems owned and operated under franchise
for the sale, delivery, or distribution of natural gas at retail; or (b)
excavation contractors or other contractors that contract with a pipeline
company.
(((12)))
(11) "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.
(((13)))
(12) "Safety management systems" means management systems that
include coordinated and interdisciplinary evaluations of the effect of significant
changes to a pipeline system before such changes are implemented.
(((14)))
(13) "Transfer pipeline" means a buried or aboveground
pipeline used to carry oil between a tank vessel or transmission pipeline and
the first valve inside secondary containment at the facility provided that any
discharge on the facility side of that first valve will not directly impact
waters of the state. A transfer pipeline includes valves, and other
appurtenances connected to the pipeline, pumping units, and fabricated assemblies
associated with pumping units. A transfer pipeline does not include process
pipelines, pipelines carrying ballast or bilge water, transmission pipelines,
or tank vessel or storage tanks.
(((15)))
(14) "Transmission pipeline" means a gas pipeline that
transports gas within a storage field, or transports gas from an interstate
pipeline or storage facility to a distribution main or a large volume gas user,
or operates at a hoop stress of twenty percent or more of the specified minimum
yield strength.
Sec.
7. RCW
81.88.050 and 2000 c 191 s 4 are each amended to read as follows:
(1)
The ((hazardous liquid)) pipeline safety account is created in the
custody of the state treasurer. All fees received by the commission for the
pipeline safety program according to sections 2 and 3 of this act and all
receipts from the federal office of pipeline safety and any other state or
federal funds provided for ((hazardous liquid)) pipeline safety ((must))
shall be deposited in the account, except as provided in subsection (2)
of this section. Any fines collected under this chapter, or otherwise
designated to this account must be deposited in the account. Moneys in the
account may be spent only after appropriation. Expenditures from the account
may be used only for funding pipeline safety.
(2)
Federal funds received before June 30, 2001, shall be treated as receipt of
unanticipated funds and expended, without appropriation, for the designated
purposes.
Sec.
8. RCW
80.01.080 and 1961 c 14 s 80.01.080 are each amended to read as follows:
The
transportation revolving fund and the public utilities revolving fund are
abolished as of April 1, 1949, and as of such date there is created in the
state treasury a "Public Service Revolving Fund" to which shall be
transferred all moneys which then remain on hand to the credit of the
transportation revolving fund and the public utilities revolving fund, subject,
however, to outstanding warrants and other obligations chargeable to
appropriations made from such funds. From and after April 1, 1949, regulatory
fees payable by all types of public service companies shall be deposited to the
credit of the public service revolving fund. Except for expenses payable
out of the pipeline safety account, all expense of operation of the
Washington utilities and transportation commission shall be payable out of the
public service revolving fund.
Sec.
9. RCW
81.88.060 and 2000 c 191 s 5 are each amended to read as follows:
(1)
A comprehensive program of hazardous liquid pipeline safety is authorized by
RCW 81.88.010, 81.88.040, 81.88.050, 81.88.090, 81.88.100, ((81.88.130,))
48.48.160, and this section to be developed and implemented consistent with
federal law. ((Except as provided in subsection (6) of this section,)) The
commission shall administer and enforce all laws related to hazardous liquid
pipeline safety.
(2)
The commission shall adopt rules for pipeline safety standards for hazardous
liquid pipeline transportation that:
(a)
Require pipeline companies to design, construct, operate, and maintain their
pipeline facilities so they are safe and efficient;
(b)
Require pipeline companies to rapidly locate and isolate all reportable
releases from pipelines, that may include:
(i)
Installation of remote control shut-off valves; and
(ii)
Installation of remotely monitored pressure gauges and meters;
(c)
Require the training and certification of personnel who operate pipelines and
the associated systems;
(d)
Require reporting of emergency situations, including emergency shutdowns and
material defects or physical damage that impair the serviceability of a
pipeline; and
(e)
Require pipeline companies to submit operations safety plans to the commission
once every five years, as well as any amendments to the plan made necessary by
changes to the pipeline system or its operation. The safety plan shall include
emergency response procedures.
(3)
The commission shall approve operations safety plans if they have been deemed
fit for service. A plan shall be deemed fit for service when it provides for
pipelines that are designed, developed, constructed, operated, and periodically
modified to provide for protection of public safety and the environment. Pipeline
operations safety plans shall, at a minimum, include:
(a)
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 pressure
testing, internal inspection tool surveys, or another appropriate technique;
(b)
Failsafe systems;
(c)
Safety management systems; and
(d)
Emergency management training for pipeline operators.
(4)
The commission shall coordinate information related to pipeline safety by
providing technical assistance to local planning and siting authorities.
(5)
The commission shall evaluate, and consider adopting, proposals developed by
the federal office of pipeline safety, the national transportation safety
board, and other agencies and organizations related to methods and technologies
for testing the integrity of pipeline structure, leak detection, and other
elements of pipeline operation.
(((6)
The authorities of RCW 81.88.010, 81.88.040, 81.88.050, 81.88.090, 81.88.100,
81.88.130, 48.48.160, and this section relating to hazardous liquid pipeline
safety shall be transferred from the commission to the department pursuant to
RCW 81.88.130 upon the occurrence of either:
(a)
Amendments to federal pipeline safety laws to eliminate preemption of state
authority to regulate safety requirements for such pipelines; or
(b)
The granting of federal authority to the state to enforce or adopt any safety
requirements for interstate hazardous liquid pipelines.))
Sec.
10. RCW
81.88.090 and 2000 c 191 s 9 are each amended to read as follows:
(1)
The commission ((and the department)) shall apply for federal delegation
for the state's program for the purposes of enforcement of federal hazardous
liquid pipeline safety requirements. If the secretary of transportation
delegates inspection authority to the state as provided in this subsection, the
((department)) commission, at a minimum, shall do the following:
(a)
Inspect hazardous liquid pipelines periodically as specified in the inspection
program;
(b)
Collect fees;
(c)
Order and oversee the testing of hazardous liquid pipelines as authorized by
federal law and regulation; and
(d)
File reports with the United States secretary of transportation as required to
maintain the delegated authority.
(2)
The commission ((and the department)) shall also seek federal authority
to adopt safety standards related to the monitoring and testing of interstate
hazardous liquid pipelines.
(3)
Upon delegation under subsection (1) of this section or under a grant of
authority under subsection (2) of this section, to the extent authorized by
federal law, the ((department)) commission shall adopt rules for
interstate pipelines that are no less stringent than the state's laws and rules
for intrastate hazardous liquid pipelines.
Sec.
11. RCW
81.88.140 and 2000 c 191 s 14 are each amended to read as follows:
(1)
The citizens committee on pipeline safety is established to advise the state
agencies and other appropriate federal and local government agencies and
officials on matters relating to hazardous liquid and gas pipeline safety,
routing, construction, operation, and maintenance. The committee shall
serve as an advisory committee for the commission on matters relating to the
commission's pipeline safety programs and activities. The commission shall
consult with and provide periodic reports to the committee on matters related
to the commission's pipeline safety programs and activities, including but not
limited to the development and regular review of funding elements for pipeline
safety programs and activities.
(2)
The committee shall have thirteen total members who shall be appointed by the
governor to staggered three-year terms and shall consist of: (a) Nine members
representing local government, including elected officials and the public; and
(b) four nonvoting members, representing owners and operators of hazardous
liquid and gas pipelines. All members of the committee, voting and
nonvoting, may participate fully in the committee's meetings, activities, and
deliberations and shall timely receive all notices and information related to
committee business and decisions.
(3)
The committee shall review and comment on proposed rules and the operation of
the state pipeline safety programs.
(((2)))
(4) The committee may create one or more technical advisory committees
comprised of gas and hazardous liquid pipeline owners or operators, agency
representatives, natural resource and environmental interests, or other
interested parties.
(((3)))
(5) The committee established in ((subsection (1) of)) this
section constitutes a class one group under RCW 43.03.220. Expenses for this
group, as well as staff support, shall be provided by the utilities and
transportation commission ((and, if additional pipeline authority is
transferred to it, the department of ecology)).
NEW
SECTION. Sec. 12. RCW
81.88.130 (Transfer of powers, duties, and functions of
commission to department--Delegation of federal authority--Determination by
office of financial management) and 2000 c 191 s 13 are each repealed.
NEW SECTION. Sec. 13. 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 July 1, 2001.
