Agenda Date: September 23, 1998 Item Number: Docket: UG-980962 Pipeline Safety General -- Rulemaking Staff: Dennis E. Lloyd, Pipeline Safety Engineer Al Jones, Pipeline Safety Engineer Recommendation: Direct the Secretary to file a notice of Proposed Rulemaking (CR-102) 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. The Commission staff proposes amendments to WAC 480-93-010 to adopt the LNG standards 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. A Preproposal Statement of Inquiry (CR 101) was served on July 29, 1998 as WSR #98-16-011. A notice to all gas companies and interested parties was sent with a request for comment. The Commission has not received any comment concerning this rulemaking. 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 notice of Proposed Rulemaking (CR-102) in this matter with the Code Reviser. PROPOSED RULE MAKING (RCW 34.05.320) CR-102 (7/23/95) Agency: WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION _ Original Notice _ Supplemental Notice to WSR ___________ _ Continuance of WSR __________________ Preproprosal State of Inquiry was filed as WSR #98-16-011 or _ Proposal is exempt under RCW 34.05.310(4). (a) Title of rule: (Describe Subject) WAC 480-93-010, Adopt rules for liquefied natural gas facilities and recent natural gas amendments to comply with federal pipeline safety standards Commission Docket UG-980962. Purpose: Natural Gas Pipeline Safety - Adopting federal rules by reference to bring state rules into conformity with existing federal rules. Other Identifying Information: (b) Statutory authority for adoption: RCW 80.28.210 Statute being implemented: © Summary: Will add liquefied natural gas rules Part 193 of Title 49 Code of Federal Regulations (CFR), to WAC rules. Adopt recent federal amendments of Part 193 and Parts 191, 192 and 199 what were previously adopted as required by the Federal Department of Transportation - Office of Pipeline Safety under the Pipeline Safety Laws 49 U.S.C. § 60105. Reasons supporting proposal: Pipeline safety. Adoption by reference of federal standards regarding natural gas rules and liquefied natural gas facilities will comply with federal requirements and support the state certification program. (d) Name of Agency Personnel Responsible for: Office Location Telephone 1. Drafting.........Carole J. Washburn 1300 S. Evergreen Park Dr SW (360) 664-1174 2. Implementation...Carole J. Washburn 1300 S. Evergreen Park Dr SW (360) 664-1174 3. Enforcement......Carole J. Washburn 1300 S. Evergreen Park Dr SW (360) 664-1174 (e) Name of proponent (person or organization) _ Private WASHINGTON STATE UTILITIES & TRANSPORTATION COMMISSION _ Public _ Governmental (f) Agency comments or recommendations, if any, as to statutory language, implementation, enforcement, and fiscal matters: No comments or recommendations are submitted. (g) Is rule necessary because of: Federal Law? _ Yes _ No IF yes, ATTACH COPY OF TEXT Federal Court Decision? _ Yes _ No Citation: 49 U.S.C. § 60105 State Court Decision? _ Yes _ No (h) HEARING LOCATION: Date: September 23, 1998 Time: 9:00 a.m. Assistance for persons with disabilities: Contact Pat Valentine by September 21, 1998 TDD (360) 586-8203 or (360) 664-1133 Submit written comments to: Carole J. Washburn,Executive Secretary P.O. Box 47250 Olympia, WA 98504-7250 FAX (360) 586-1150 By: Oct. 28, 1998 DATE OF INTENDED ADOPTION: November 25, 1998 CODE REVISER USE ONLY NAME (TYPE OR PRINT) CAROLE J. WASHBURN SIGNATURE TITLE EXECUTIVE SECRETARY DATE Sept. 23, 1998 (COMPLETE REVERSE SIDE) (j) Short explanation of rule, its purpose, and anticipated effects: This rulemaking is necessary for the Washington Utilities and Transportation Commission (WUTC) to comply with Federal Pipeline Safety Law 49 U.S.C. Section 60101 et seq., which requires the adoption of the federal pipeline safety standards and penalties. WUTC is certified for both natural gas and hazardous liquid pipeline safety programs. Congress, in passing the Pipeline Safety Law, fully intended that states would assume responsibility for intrastate pipeline safety, while the federal government retains responsibility for interstate pipeline safety. States are better positioned to provide local/state oversight and regulatory assistance to pipeline operators. The WUTC also participates in the OPS grants program. OPS has the authority to reimburse a state agency up to fifty percent of its pipeline safety program costs based upon the availability of funds and the state’s performance. Rulemaking is necessary in order to comply with federal requirements in order for the WUTC to retain its certification and enhance pipeline safety under Pipeline Safety Law 49 U.S.C. Section 60101 et seq. to participate in the federal pipeline safety program. Does proposal change existing rules? _ YES _ NO This proposal will add existing liquefied natural gas rules Part 193 of Title 49 Code of Federal Regulations (CFR), to Parts 191, 192 and 199, previously adopted, and adopt recent federal amendments. (k) Has a small business economic impact statement been prepared under chapter 19.85 RCW? _Yes. Attach copy of small business economic impact statement. A copy of the statement may be obtained by writing to: telephoning: ( ) faxing: ( ) _ No. Explain why no statement was prepared. Compliance with the referenced provisions is already required by federal law, so the proposal adds no new requirements. (I) Does section 201, chapter 403, Laws of 1995, apply to this rule adoption? _ YES _ NO Please explain: Section 201, Chapter 403, Laws of 1995, 5(b)(iii) exempts rules which adopt or incorporate by reference federal regulations without material change. AMENDED SECTION WAC 480-93-010 Compliance with federal standards. Gas companies' gathering, storage, distribution, and transmission facilities of all gas operators in this state shall must be designed, constructed, maintained, and operated in compliance with the provisions of Title 49 Code of Federal Regulations (CFR), Parts 191, 192, 193 and 199 in effect on the effective date of this rule. The provisions of this chapter shall govern to the extent that the standards in the state regulations are compatible with the federal standards., except that any specific provisions in this chapter control in the event of inconsistency between this chapter and the referenced federal rules. 49 CFR, Parts 191, 192 and 199, are available for public inspection in the commission branch of the Washington state library, located with the headquarters office of the commission. Copies of the above-referenced regulations can be viewed at the commission branch of the Washington state library or are available from the Government Printing Office Bookstore, Seattle, Washington. [Statutory Authority: RCW 80.01.040 and 80.28.210. (Order R-XXX, Docket No. UG-980962), § 480-93-010, filed X/XX/98, effective X/XX/98; 96-13-022 (Order R-437, Docket No. UG-951453), § 480-93-010, filed 6/10/96, effective 7/11/96; 95-13-082 (Order R-427, Docket No. UG-950061), § 480-93-010, filed 6/20/95, effective 7/21/95. Statutory authority: RCW 80.01.040. 93-18-097 (Order R-396, Docket No. UG-930243), § 480-93-010, filed 9/1/93, effective 10/2/93; 92-16-100 (Order R-375, Docket No. UG-911261), § 480-93-010, filed 8/5/92, effective 9/5/92; Order R-28, § 480-93-010, filed 7/15/71; Order R-5, § 480-93-010, filed 6/6/69, effective 10/9/69.]