Agenda Date: October 28, 1998
Item Number: 2A

Docket:   TO-980905 Intrastate Hazardous Liquid Pipeline Safety Rulemaking
  Amend WAC Chapter 480-75

Staff:  Steve Rieger, Utilities Engineer
  Dennis Lloyd, Utilities Engineer

Recommendation:  

Direct the Secretary to file a Notice of Proposed Rulemaking (CR-102) with the 
Code Reviser to amend Chapter 480-75 WAC through update adoptions by reference 
of federal regulations, and to make changes authorized by Chapter 123, L. 1998, 
extending the Commission’s authority over hazardous liquid pipelines.

Discussion:

Washington State must comply with federal requirements in order to retain its 
certification under the Pipeline Safety Laws, 49 U.S.C. Sec. 60101 et seq. and 
continue to participate in the federal pipeline safety program.  The Commission 
has been out of compliance because the penalties for violations are 
substantially lower than comparable penalties under federal regulation.  
Substitute Senate Bill SB 6358 in the 1998 legislative session was passed as 
Chapter 123, Laws 1998, to allow the Commission to set such penalties at levels 
not exceeding the comparable federal penalties.  This proceeding is initiated 
to increase the penalties for pertinent hazardous liquid pipeline safety 
violations to the comparable federal level, under the statutory authority, to 
comply with federal requirements.  At this time, violations of the existing 
state regulations may result in a penalty not to exceed the sum of one thousand 
dollars for each and every offense.  The current federal regulations require a 
civil penalty of not more than $25,000 for each violation, not to exceed 
$500,000 for a related series of violations.

The new rule does not vary from the federal law, or result in any additional 
cost to hazardous liquid pipeline companies that operate in compliance with the 
safety rules.  The revision will put the rules into compliance with federal 
requirements, consistent with specific authority in Chapter 81.88 RCW.

Commission staff has identified six intrastate hazardous liquid pipeline 
companies that will be subject to the Commission’s hazardous liquid pipeline 
safety jurisdiction.  One company is a common carrier pipeline company and five 
of the companies are private carriers who do not transport hazardous liquids 
for hire.  Four of the pipelines transport refined petroleum products and two 
transport highly volatile liquids - anhydrous ammonia and liquid butane.

The Commission provided notice of this rulemaking to all persons who have asked 
to receive a copy of rules on the topic, and to all persons and entities that 
Commission staff was able to identify as having a potential interest.  The 
Federal Office of Pipeline Safety, Western Region, provided written comments 
supporting the rulemaking proposed by the Commission.  In addition, the Energy 
Facility Site Evaluation Council provided written comments supporting this 
action by stating that the Council believed it to be in the state’s best 
interest to have rules and regulations commensurate with federal regulations so 
it can fully carry out the pipeline safety program.  The Department of Ecology 
has voiced support for this rulemaking and agreed to participate in the 
rulemaking process when the Commission reviews its existing rules pursuant to 
Governor Locke’s executive order.

Ms. Claudia M. Newman, representing the Cascade Columbia Alliance, agreed that 
the Commission should increase the maximum level of penalties that may be 
assessed for hazardous liquid pipeline safety violations to the comparable 
federal level and adopt existing federal amendments since the last adoption.  
Ms. Newman, however, encouraged the Commission to adopt regulations that go 
beyond the requirements set forth in the federal law.  Staff provided a written 
response to the suggested regulations expressing concern with several of the 
proposals and emphasized that the Commission was advocating the adoption of 
existing federal regulations only at this time.  We are concerned that 
addressing more stringent regulations at this time will further delay 
compliance with federal requirements.  Staff stated that pursuant to Governor 
Locke’s regulatory improvement executive order, the Commission has implemented 
a schedule to review each of the Commission’s rules.  Chapter 480-75 WAC has 
been placed on that schedule for review and clarification in 2000 and staff 
would welcome the opportunity to discuss additional, more stringent regulations 
in that forum.

Staff recommends that the Commission direct the Secretary to file a Notice of 
Proposed Rulemaking (CR-102) in this matter with the Code Reviser.