CR_14-052 The adoption of updated federal regulations about gas pipeline safety rules

PUBLIC SERVICE COMMISSION OF WISCONSIN

Adoption of Federal Gas Pipeline Safety Regulations

1-AC-246

Clearinghouse Rule No. 14-052

ORDER ADOPTING FINAL RULES

The Public Service Commission of Wisconsin proposes an order to amend

PSC 135.019 (1) regarding the adoption of updated federal regulations about gas pipeline safety rules.

REPORT TO THE LEGISLATURE

The Report to the Legislature is included as Attachment A.

FISCAL ESTIMATE

This rule will result in no fiscal impact since pipeline operators are already required, under federal law, to follow the federal regulations. Any economic impact of those federal regulations has already occurred. This rulemaking just updates the state’s enforcement authority.

The Fiscal Estimate and Economic Impact Analysis for this rulemaking are included as Attachment A1 .

FINAL REGULATORY FLEXIBILITY ANALYSIS

  This rulemaking has no effect on small businesses. The s. 227.114 (1) , Stats., definition of “small business” states that to be considered a small business, the business must not be dominant in its field. Since gas utilities are monopolies in their service territories, they are dominant in their field and, so, are not small businesses. Further, the contract between the federal department of transportation and the commission requires that treatment be uniform across the state and across gas pipeline operators. As a result, the commission cannot make special provisions for small business.

EFFECTIVE DATE

These rules shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provide in s. 227.22 (2) (intro.), Stats.

CONTACT PE OPLE

Questions regarding this matter should be directed to docket coordinator Thomas Stemrich, at [phone] or [e-mail] . Small business questions should be directed to Christina Keeley at [phone] or [e-mail] . Media questions should be directed to the Communications Director at [phone]. Hearing or speech impaired individuals may also use the commission’s TTY number, if calling from Wisconsin [phone], if calling from outside Wisconsin [phone].

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this matter or who needs to obtain this document in a different format should contact the docket coordinator listed above.

Dated at Madison, Wisconsin, this 1 st day of April, 2015.

By the Commission:

Sandra J. Paske

Secretary to the Commission

Attachments

SJP:JMD:hms:DL: 00961916

REPORT TO THE LEGISLATURE

A.   TEXT OF THE RULE

SECTION 1. PSC 135.019 (1) is amended to read:

PSC 135.019 (1) The federal department of transportation, office of pipeline safety, pipeline safety standards, as adopted through January 1, 2013 the effective date of this subsection … [LRB to insert date]… , and incorporated in 49 CFR Parts 192 , 193 and 199 , including the appendices, are adopted as state pipeline safety standards and incorporated by reference i nto this chapter.

SECTION 2. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.) , Stats.

B .   PLAIN LANGUAGE ANALYSIS

1.   Statutory Authority and Explanation of Authority

This rulemaking is authorized under ss.   196.02   (1) and (3) , 196.745 (1) (a), and 227.11, Stats.

Section 227.11 authorizes agencies to promulgate administrative rules. Section 196.02   (1) authorizes the c ommission to do all things necessary and convenient to its jurisdiction. Section 196.02   (3) grants the c ommission specific authority to promulgate rules. Section 196.745 (1) (a) grants the commission specific authority to adopt rules requiring that the construction and operation of gas facilities be done in a reasonably adequate and safe manner.

Statutes Interpreted

T his rule interpre ts s. 196.745 , Stats., and, under a contract with the U . S . Department of Transportation, Office of Pipeline Safety, the federal pipeline safety regulations ( 49 CFR 190 to 199 ).

Related Statutes or Rules

The federal pipeline safety statutes may be found in 49 USC 60101 to 60133 . The federal pipeline safety regulations may be found in 49 CFR 190 to 199 . Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission enforces the federal pipeline safety regulations for Wisconsin’s natural gas pipeline operators, primarily public utilities. Under this agreement, the commission has the authority to make additions to the federal code that are more stringent than the federal standards.

Chapter PSC 134 is the rule that deals with gas service standards. That rule also has some requirements concerning safe interactions between pipeline operators and their customers.

2.   Brief Summary of Proposed Rules

Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the c ommission is authorized to enforce federal natural gas pipeline safety requirements as set out in the Code of Federal Regulations, 49 CFR. Parts 192 , 193 , and 199 . As part of the agreement, the c ommission adopts the federal pipeline safety code in Wis. Admin. Code s. PSC 135.019 . The c ommission’s latest version of that rule adopts the federal code up to January 1, 2013 . New gas pipeline safety code requirements are generally enacted in October of each year. As a result, the c ommission needs to amend its rule to include those federal regulation changes made since January 2013 . Adoption of these amendments will keep the c ommission in compliance with its obligation to adopt all federal changes in the pipeline safety area.

3.   Comparison with Existing or Proposed Federal Regulations

As this is the adoption of the federal regulations, it is the same as the federal regulations .

4.   Comparison with Similar Rules in Adjacent States

All states, including Michigan, Iowa, Illinois, and Minnesota, adopt the federal pipeline regulations.

5.   Summary of Factual Data and Analytical Methodologies Used

This rulemaking is based on an agreement with the U.S. Department of Transportation, Office of Pipeline Safety,

6.   Effect on Small Business

This rule will not affect small businesses. The s. 227.114(1) , Stats., definition of “small business” states that to be considered a small business, the business must not be dominant in its field. Because electric, gas, and water utilities are monopolies in their service territories, they are dominant in their fields and, so, are not small businesses.

7.   Agency Contact People

Questions regarding this matter should be directed to docket coordinator Thomas Stemrich, at [phone] or [e-mail] . Small business questions should be directed to Christina Keeley at [phone] or [e-mail] . Media questions should be directed to the Communications Director at [phone]. Hearing or speech-impaired individuals may also use the commission’s TTY number, if calling from Wisconsin [phone], if calling from outside Wisconsin [phone].

8.   Accommodation

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs to receive this document in a different format should contact the docket coordinator, as indicated in the paragraph above, as soon as possible.

C .   FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS

  This rule will result in no fiscal impact since pipeline operators are already required, under federal law, to follow the federal regulations. Any economic impact of those federal regulations has already occurred. This rulemaking just updates the state’s enforcement authority.

The Fiscal Estimate and Economic Impact Analysis for this rulemaking is included as Attachment A1.

D .   BASIS AND PURPOSE OF RULES

Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the c ommission is authorized to enforce federal natural gas pipeline safety requirements as set out in the Code of Federal Regulations, 49 CFR. Parts 192 , 193 , and 199 . As part of the agreement, the c ommission adopts the federal pipeline safety code in Wis. Admin. Code s. PSC 135.019 . The c ommission’s latest version of that rule adopts the federal code up to January 1, 2013 . New gas pipeline safety code requirements are generally enacted in October of each year. As a result, the c ommission needs to amend its rule to include those federal regulation changes made since January 2013 . Adoption of these amendments will keep the c ommission in compliance with its obligation to adopt all federal changes in the pipeline safety area.

E .   SUMMARY OF PUBLIC COMMENTS AND COMMISSION RESPONSES

No public comments received were received.

F .   APPEARANCES AT PUBLIC HEARING

This rulemaking has been done without a hearing because, under s. 227.16 (2) (b) , Stats., no hearing is required when an existing rule is being brought into conformity with a statute that has changed. However, written comments were solicited.

G .   ANY CHANGES TO THE FISCAL ESTIMATE OR THE ANALYSIS UNDER s. 227.14(2), STATS.

None.

H .   RESPONSE TO LEGISLATIVE COUNCIL COMMENTS

A copy of the Legislative Council report is included as Attachment A2. Responses to those comments follow:

2. Form, Style and Placement in Administrative Code

Agree. Change made.

4. Adequacy of References to Related Statutes, Rules and Forms

Agree. Change made.

I.   MISCELLANEOUS DETERMINATIONS

The c ommission ’s Wisconsin Environmental Policy Act coordinator examined whether the rules will an environmental impact and concluded that they will not. Commission staff also considered whether the rules will impact housing under s. 227.115, Stats., and concluded that they will not.

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R0 3 /201 2 )	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

155 – PSC 135 – Pipeline Safety Regulations
1. Type of Estimate and Analysis
Original   Updated   Corrected
2. Administrative Rule Chapter, Title and Number
PSC 135, Gas Safety
3. Subject
Adoption of federal gas pipeline regulations
4. Fund Sources Affected	5. Chapter 20, Stats. Appropriations Affected
GPR   FED   PRO   PRS   SEG   SEG-S
6. Fiscal Effect of Implementing the Rule
No Fiscal Effect Indeterminate	Increase Existing Revenues Decrease Existing Revenues	Increase Costs Could Absorb Within Agency’s Budget Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
State’s Economy Local Government Units	Specific Businesses/Sectors Public Utility Rate Payers Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? Yes   No
9. Policy Problem Addressed by the Rule c
Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission is authorized to enforce federal natural gas pipeline safety requirements as set out in the Code of Federal Regulations, 49 C.F.R. Parts 192, 193, and 199. As part of the agreement, the commission adopts the federal pipeline safety code in Wis. Admin. Code s. PSC 135.019. The commission’s latest version of that rule adopts the federal code up to January 1, 2013. New gas pipeline safety code requirements are generally enacted in October of each year. As a result, the commission needs to amend its rule to include those federal rule changes made since January 2013. Adoption of these amendments will keep the commission in compliance with its obligation to adopt all federal changes in the pipeline safety area.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
All gas utilities, Wisconsin Utilities Association, Utility Workers’ Association, and National Federation of Independent Businesses.
11. Identify the local governmental units that participated in the development of this EIA.
N/A
12. Summary of Rule’s Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State’s Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
This rule will result in no economic impact since pipeline operators are already required, under federal law, to follow the federal regulations. Any economic impact of those federal regulations has already occurred. This rulemaking just updates the state’s enforcement authority.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Adoption of these amendments will keep the commission in compliance with its obligation to adopt all federal changes in the pipeline safety area. Being in compliance increases the amount of federal money received by the state.
14. Long Range Implications of Implementing the Rule
The only long-range implication is that the state's enforcement authority will be updated.
15. Compare With Approaches Being Used by Federal Government
As this is the adoption of the federal regulations, it is the same approach as the federal government.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
All states, including the neighboring states, adopt the federal pipeline regulations.
1 7 . Contact Name	18. Contact Phone Number
Lisa Farrell	06/13/2014

ATTACHMENT A

1. Summary of Rule’s Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)

N/A

2. Summary of the data sources used to measure the Rule’s impact on Small Businesses

N/A

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?

Less Stringent Compliance or Reporting Requirements

Less Stringent Schedules or Deadlines for Compliance or Reporting

Consolidation or Simplification of Reporting Requirements

Establishment of performance standards in lieu of Design or Operational Standards

Exemption of Small Businesses from some or all requirements

Other, describe:

         

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses

N/A

5. Describe the Rule’s Enforcement Provisions

N/A

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)

Yes No

LCRC FORM 2

W ISCONSIN L EGISLATIVE C OUNCIL R ULES C LEARINGHOUSE

Scott Grosz and Jessica Karls-Ruplinger

Clearinghouse Co-Directors

Terry C. Anderson

Legislative Council Director

Laura D. Rose

Legislative Council Deputy Director

CLEARINGHOUSE REPORT TO AGENCY

[THIS REPORT HAS BEEN PREPARED PURSUANT TO S. 227.15 , STATS. THIS IS A REPORT ON A RULE AS ORIGINALLY PROPOSED BY THE AGENCY; THE REPORT MAY NOT REFLECT THE FINAL CONTENT OF THE RULE IN FINAL DRAFT FORM AS IT WILL BE SUBMITTED TO THE LEGISLATURE. THIS REPORT CONSTITUTES A REVIEW OF, BUT NOT APPROVAL OR DISAPPROVAL OF, THE SUBSTANTIVE CONTENT AND TECHNICAL ACCURACY OF THE RULE.]

CLEARINGHOUSE RULE 14-052

AN ORDER to amend PSC 135.019 (1), relating to adoption of federal pipeline safety regulations.

Submitted by PUBLIC SERVICE COMMISSION

08-29-2014   RECEIVED BY LEGISLATIVE COUNCIL.

09-11-2014   REPORT SENT TO AGENCY.

JKR:MQ

One East Main Street, Suite 401 • P.O. Box 2536 • Madison, WI 53701–2536 (608) 266–1304 • Fax: [phone] • Email: [e-mail] http://legis.wisconsin.gov/lc/

Clearinghouse Rule No. 14-052

Form 2 – page 2

LEGISLATIVE COUNCIL RULES CLEARINGHOUSE REPORT

This rule has been reviewed by the Rules Clearinghouse. Based on that review, comments are reported as noted below:

1. STATUTORY AUTHORITY [s. 227.15 (2) (a) ]

Comment Attached   YES   NO   

2. FORM, STYLE AND PLACEMENT IN ADMINISTRATIVE CODE [s. 227.15 (2) (c) ] Comment Attached   YES    NO

3. CONFLICT WITH OR DUPLICATION OF EXISTING RULES [s. 227.15 (2) (d) ] Comment Attached   YES   NO   

4. ADEQUACY OF REFERENCES TO RELATED STATUTES, RULES AND FORMS [s. 227.15 (2) (e) ]

Comment Attached   YES    NO

5. CLARITY, GRAMMAR, PUNCTUATION AND USE OF PLAIN LANGUAGE [s. 227.15 (2) (f) ] Comment Attached   YES   NO   

6. POTENTIAL CONFLICTS WITH, AND COMPARABILITY TO, RELATED FEDERAL REGULATIONS [s. 227.15 (2) (g) ]

Comment Attached   YES   NO   

7. COMPLIANCE WITH PERMIT ACTION DEADLINE REQUIREMENTS [s. 227.15 (2) (h) ] Comment Attached   YES   NO   

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W ISCONSIN L EGISLATIVE C OUNCIL R ULES C LEARINGHOUSE

Scott Grosz and Jessica Karls-Ruplinger

Clearinghouse Co-Directors

Terry C. Anderson

Legislative Council Director

Laura D. Rose

Legislative Council Deputy Director

CLEARINGHOUSE RULE 14-052

Comments

[ NOTE :   All citations to “Manual” in the comments below are to the Administrative Rules Procedures Manual , prepared by the Legislative Reference Bureau and the Legislative Council Staff, dated November 2011.]

2. Form, Style and Placement in Administrative Code

In s. PSC 135.019 (1) , “ the effective date of these rules ” should be replaced with “ the effective date of this subsection ”. [s. 1.01 (9) (b) , Manual .]

4. Adequacy of References to Related Statutes, Rules and Forms

In the effect on small business section of the rule summary and in the initial regulatory flexibility analysis, “s. 227.114 (12) , Stats.” should be replaced with “s. 227.114 (1) , Stats.”.

One East Main Street, Suite 401 • P.O. Box 2536 • Madison, WI 53701–2536 (608) 266–1304 • Fax: [phone] • Email: [e-mail] http://www.legis.wisconsin.gov/lc

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