Agenda Date: July 22, 1998 Item Number: Docket: UG-980962 Pipeline Safety General -- Rulemaking Staff: Allen Bell, Pipeline Safety Engineer Dennis E. Lloyd, Pipeline Safety Engineer Al Jones, Pipeline Safety Engineer Recommendation: Direct the Secretary to file a Preproposal Statement of Inquiry (CR-101) with the Code Reviser to adopt liquefied natural gas rules (LNG) and recent federal amendments of rules by reference. Discussion: The Commission participates in the federal pipeline safety program pursuant to the Federal Pipeline Safety Law, 49 U.S.C. Sec. 60101, et seq. The federal government certified that the Commission was a proper agency for delegation with the understanding that the Commission would take steps to bring the state safety standards into line with the federal standards. Chapter 210, Laws of 1969 was passed providing Commission safety jurisdiction over natural gas pipeline companies and allows the Commission to prescribe pipeline safety rules. This proceeding will examine whether the Commission should adopt liquefied natural gas rules and recent federal amendments of rules by reference. The Commission staff anticipates amendments to WAC 480-93-010 to adopt Title 49 Code of Federal Regulations (CFR) Part 193, recent gas pipeline safety amendments under Part 192, federal drug and alcohol testing regulations under Part 199, that are currently in effect. Part 193 rules apply to LNG facilities used in the transportation of gas by pipeline. The U.S. Department of Transportation Office of Pipeline Safety (OPS) is responsible for interstate LNG facilities but has certified the Commission for jurisdiction of intrastate natural gas pipelines and LNG facilities. There is one interstate LNG facility located in Plymouth, Washington but no intrastate facilities. However, due to growth, increased demand on pipeline facilities, and an existing natural gas infrastructure that is reaching capacity, the Commission staff believes it is only a matter of time before intrastate LNG facilities become a reality. This rulemaking is authorized by RCW 80.01.040 and is required for the Commission to maintain its certification under the federal pipeline safety law. Commission Staff is also working with the Washington State Department of Ecology and Energy Facility Site Evaluation Council to ensure that our programs complement each other and are not duplicative. Staff recommends that the Commission direct the Secretary to file a Preproposal Statement of Inquiry (CR-101) in this matter with the Code Reviser. PREPROPOSAL STATEMENT OF INQUIRY (RCW 34.05.310) DRAFT Rev 7/17/98 CR-101 (7/10/97) Do NOT use for expedited repeal or adoption Agency: WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION Subject of possible rule making: Natural Gas Pipeline Safety - adopting federal rules for liquefied natural gas facilities and gas pipeline amendment by reference to bring state rules into conformity with existing federal rules. Docket UG-980962 (a) Statutes authorizing the agency to adopt rules on this subject: RCW 80.01.040 C 450 L. 1985; RCW 80.04.160, C 14. L. 1961; RCW 80.28.210 C 210 L. 1969 and Federal Pipeline Safety Law, 49 U.S.C.§ 60101, et seq. (b) Reasons why rules on this subject may be needed and what they might accomplish: The WUTC has been certified by the U.S. Department of Transportation - Office of Pipeline Safety (OPS). WUTC has assumed jurisdiction for safety regulation of natural gas and liquefied natural gas facilities, and is therefore required to incorporate federal standards into its safety regulations in order to maintain certification under the Pipeline Safety Law, 49 U.S.C. § 60105, et seq. © Identify other federal and state agencies that regulate this subject and the process coordinating the rule with these agencies: The OPS is charged by federal law to regulate liquefied natural gas facilities and gas Pipeline companies. OPS has certified the WUTC to assume that responsibility for intrastate gas facilities. WUTC will contact the Department of Ecology and the Energy Facility Site Evaluation Council for their input and suggestions. (d) Process for developing new rule (check all that apply): _ Negotiated rule making _ Pilot rule making _ Agency study _ Other (describe) The WUTC will call for written comments and provide the opportunity for comments. The WUTC will schedule if necessary an informal workshop with interested persons in a manner designed to develop consensus on any rule proposal. (e) How interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication: Interested parties may submit written comments to the Commission, Post Office Box 47250, Olympia, Washington, 98504-7250. SEE ATTACHED CODE REVISER USE ONLY NAME (TYPE OR PRINT) CAROLE J. WASHBURN SIGNATURE TITLE SECRETARY DATE JULY 22, 1998 WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CR-101 - ATTACHMENT DOCKET NO. UG-980962 Interested persons may contact the Secretary, Washington Utilities and Transportation Commission, P. O. Box 47250, Olympia, Washington, 98504-7250, 360-664-1174 (Fax: 360-586-1150). Such persons may submit comments, as specified below, or may ask to be included in the Commission’s list of interested persons for the proceeding. WRITTEN COMMENTS Written comments in response to the CR-101 from persons interested in the subject matter of this proposed rulemaking may be filed with the Commission Secretary, referencing Docket No. UG-980962, not later than August 25, 1998. All commenters are asked, but not required, to file an original and 10 copies of their written comments. The Commission also requests, but does not require, that comments be provided on a 3½ inch IBM formatted high-density disk, in WordPerfect version 51., 6.0 or 6.1, labeled with the docket number of this proceeding, the title of the submission, the commenter’s name, and the type of software used. The Commission may offer additional opportunities to provide written comments. Interested persons may file additional written comments in response to any such invitation. After reviewing comments and levels of interest, the Commission Staff will determine whether a workshop would assist in the sharing of information or the discussion of interests. Interested persons may also attend and participate in any such workshop. The Commission will provide written notice of any preproposal workshops, and of all future phases of this proceeding, to all commenters and to any other persons specifically asking to receive notice in this rulemaking proceeding.