PA Environment Digest Blog: IRRC Approves Final Revised PUC Regulations Strengthening Rules For Intrastate Hazardous Liquids Pipelines; Gas Pipelines Fined Over $71 Million, Have Worst Compliance Record Of Any Industry, Including Criminal Charges

On June 20, the Independent Regulatory Review Commission gave its unanimous approval to revised final Public Utilities Commission Regulations strengthening state public utility safety standards related to the pipeline transport of hazardous liquids in intrastate commerce.

“This rulemaking gives Pennsylvania a more comprehensive and complete regulatory framework for Hazardous Liquid Public Utilities (HLPUs) necessary to limit the occurrence of subsidence events, pipeline accidents, and complaints,” noted PUC Chairman Stephen M. DeFrank.

“Throughout this rulemaking proceeding, the Commission received and considered extensive comments from a diverse cross-section of vested parties to include regulated industry, government officials, environmental advocates, and the general public,” Chairman DeFrank said. “In the end, we are pleased the final regulations have garnered widespread support to further enhance protection of public health, safety and the environment.”

There are two PUC certificated hazardous liquid public utilities involved in intrastate service in Pennsylvania – Sunoco Pipeline, L.P. (including the Mariner East Pipelines) and Laurel Pipe Line – and the new HVL regulations would apply to them, as well as any other future intrastate HVL public utilities.

The construction of the Mariner East Pipeline across Pennsylvania resulted in Sunoco/Energy Transfer Partners being convicted of criminal charges for environmental violations and resulted in an additional $31 million in penalties. Read more here.

Natural gas pipelines have been penalized over $71 million for environmental violations making them the most penalized industry in Pennsylvania. Read more here.

Natural gas pipelines have also been convicted of multiple criminal charges-- Mariner East & Revolution Pipelines, CNX Pipeline-- and charges against pipeline workers, Equitrans, and Shell Falcon Pipeline.

The Department of Environmental Protection published notice in the February 24 PA Bulletin the final technical guidance on using trenchless technology to construct natural gas, other pipelines and underground utilities is now available and effective. Read more here.

With this final rule, hazardous liquid public utilities will have Pennsylvania-specific standards to comply with, in addition to federal regulations currently administered by the Pipeline and Hazardous Materials Safety Administration (PHMSA) and enforced by the PUC.

Summary Of Changes

Chairman DeFrank added that the RFFRO builds upon the Commission’s Final Form Rulemaking Order previously adopted on Feb. 22, 2024 (FFRO) and focuses on the following key elements--

-- Improves communications among utilities and members of the public; local, county and state governments; and excavators, contractors, emergency responders, and school administrators.

-- Delegates authority to the PUC’s Pipeline Safety Section to make certain determinations and to request and receive key reports necessary for the Pipeline Safety Section to do its job of ensuring compliance with these standards.

-- Prevents construction, relocation, or conversion of existing pipelines under any buildings or dwellings except for repairs or replacement of existing pipelines.

-- Requires nondestructive tests of all girth welds with few exceptions.

-- Requires regular inspection and maintenance of proper depth of cover required by federal law for all pipe in use for transporting hazardous liquids, construction, and the maintenance of 12 inches clearance between the outside of the pipe and the extremity of other underground structures.

-- Requires geological and environmental impact studies regarding construction.

-- Requires the utility to be responsible for ensuring land agents interacting with the public regarding easements hold a valid PA license in law, real estate, engineering, land surveying, geology, or membership in good standing with the International Right of Way Association or its successor as the association has an ethics code of conduct.

-- Requires additional training of emergency personnel.

The PUC’s amendments to Chapter 59 of Title 52 of Pennsylvania’s Public Utility Code do not apply to pipelines covered under Act 127 of 2011, the Gas and Hazardous Liquid Pipeline Act.

Additionally, there are no retroactive design or construction regulations for those pipeline facilities that exist when the rule is made effective by operation of law.

However, the operations and maintenance, accident reporting, and public awareness regulations do apply to existing hazardous liquid pipeline facilities.

Click Here for the Final Form Rulemaking Order and rulemaking document..

Documents related to this rulemaking can be found at: Docket No.: L-2019-3010267.

Click Here for the complete PUC announcement.

NewsClip:

-- Marcellus Drilling News: Onerous New Regulations Approved For PA Liquids Pipelines, Landmen

Resource Links - Pipelines:

-- Bill Reported Out Of Senate Committee Would Allow Pipelines Like Mariner East To Apply For Waivers Of Any PUC Regulation, Law Or Policy [PaEN]

-- Gas Industry, Sen. Bartolotta Seek Legislation To Eliminate Environmental Hearing Board Appeals Of DEP Permits For Natural Gas Pipeline Facilities [PaEN]

-- Senate Republicans Pass Bill Authorizing An Authority To Take Over Permitting Large-Scale Energy Projects; Eliminating Public Comment; Waiving Any Regulation; Providing Immunity From Prosecution; Barbers Reviewing Permits? [PaEN]

-- Spotlight PA: Little Information Made Public About Free Water Testing Ordered As Part Of Mariner East Natural Gas Liquids Pipeline Settlement Of Criminal Charges By Attorney General [PaEN]

-- Senate Budget Hearings: PA’s Experience With New Pipeline Construction Shows State Laws Not Strong Enough To Prevent Environmental Damage, Protect Public Safety [PaEN]

-- Natural Gas, Hazardous Liquids Pipelines Are NOT Required To Carry Insurance Or Show They Can Pay For Damages If They Explode, Leak Or Kill Someone [PaEN]