A02692 Summary:

BILL NOA02692
 
SAME ASSAME AS S02767
 
SPONSORHyndman (MS)
 
COSPNSRPeoples-Stokes, Cook, Hunter, Walker, Joyner, Slater
 
MLTSPNSRGlick
 
Add §68-b, Pub Serv L
 
Requires gas corporations to file a plan with the public service commission addressing aging or leaking pipelines within their service territory; outlines plans for the replacement of such pipelines.
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A02692 Actions:

BILL NOA02692
 
01/26/2023referred to energy
01/03/2024referred to energy
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A02692 Committee Votes:

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A02692 Floor Votes:

There are no votes for this bill in this legislative session.
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A02692 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2692
 
SPONSOR: Hyndman (MS)
  TITLE OF BILL: An act to amend the public service law, in relation to requiring gas corporations to file a plan addressing aging or leaking pipelines within their service territory   PURPOSE OR GENERAL IDEA OF BILL: To require gas corporations to develop strategic pipeline infrastructure replacement.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the public service law by adding a new section, 63-gg called Pipeline modernization and consumer protection. Part 1 estab- lishes the definition of "gas pipeline facility", which is a distrib- ution facility and gas utility. Part 2 establishes that each operator of a gas pipeline facility will accelerate the repair, rehabilitation, and replacement of gas piping or equipment that is: (a) leaking; or (b) may pose high risks of leaking, or may no longer be fit for service, because of: (i) inferior materi- als,(ii) poor construction practices, (iii) lack of maintenance, or (iv) age. Part 3 establishes that in complying with subdivision two of this section, the commission shall: (a) develop prioritized timelines to repair all leaks based on the severity of the leak; (b) adopt a cost-re- covery program; (c) adopt a standard definition and methodology for calculating and reporting unaccounted for gas to improve data quali- ty;(d) adopt limits on cost recovery for the lost and unaccounted for gas; and (e) require the use of the best available technology to detect gas leaks. Part 4 establishes that the New York State energy research and develop- ment authority will issue non-binding guidelines to identify the best practices for classifying high-risk pipeline infrastructure and leaks for repair or replacement. This will take place no later than one year after the effective date. Part 5 establishes that the New York State energy research and develop- ment authority and the commission, no later than a year after the effec- tive date, will create and publish forms that adopt a standard defi- nition and methodology for calculating and reporting unaccounted for gas. Part 6 establishes that operators of gas pipeline facilities in cities with a population of one million or more shall establish a database of pipeline infrastructure that will be shared with the coordinated build- ing inspection date analysis.   JUSTIFICATION: Federal requirements related to repairing pipeline leaks are limited to hazardous leaks, which are leaks that represent an existing or probable hazard to persons cr property and require immediate repair. There are no Federal requirements to address slower or less hazardous leaks, which can allow the leaks to persist =repaired indefinitely. According to the Pipeline and Hazardous Materials Safety Administration, the United States natural gas distribution system still includes 61,000 miles of bare steel pipe without adequate corrosion protection and 32,000 miles of cast iron pipe, which was installed beginning in the 1830s and can be prone to failure. Major recent pipeline explosions that led to human fatalities occurred in: Austin, Texas; Philadelphia, Pennsylvania; and Allentown, Pennsylvania. These explosions were the result of aging, leaking, and high-risk pipeline infrastructure. This bill will help create a higher standard of safety in terms of pipe-line infrastructure and will lower the cost of the rate that consumers have to pay for lost and unaccounted for gas. This bill will also help to improve the envi- ronment by limiting the amount of natural gas that leaks out of faulty pipelines.   PRIOR LEGISLATIVE HISTORY: A656 2017/18-referred to Corporations, Authorities and Commissions   FISCAL IMPLICATIONS: Likely costs related to administrative work of the Department of Public Service.   EFFECTIVE DATE: This bill shall take effect immediately.
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A02692 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2692
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 26, 2023
                                       ___________
 
        Introduced  by  M.  of A. HYNDMAN, PEOPLES-STOKES, COOK, HUNTER, WALKER,
          JOYNER -- Multi-Sponsored by -- M.  of  A.  GLICK  --  read  once  and
          referred to the Committee on Energy
 
        AN  ACT  to  amend  the public service law, in relation to requiring gas
          corporations to file a plan  addressing  aging  or  leaking  pipelines
          within their service territory
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The public service law is amended by adding a  new  section
     2  68-b to read as follows:
     3    §  68-b.  Aging or leaking pipelines. 1. Definitions. For the purposes
     4  of this section, the following words, shall, unless the context  clearly
     5  requires otherwise, have the following meanings:
     6    (a)  "Customer" shall mean a retail customer receiving end use service
     7  from a gas corporation.
     8    (b) "Eligible infrastructure replacement" shall mean a replacement  or
     9  an  improvement  of  existing  pipeline  of gas corporation that: (i) is
    10  performed on or after January first, two thousand twenty-four;  (ii)  is
    11  designed  to  improve  public  safety and/or infrastructure reliability;
    12  (iii) does not increase the revenue of a gas corporation  by  connecting
    13  an  improvement  or installing new pipeline for the principal purpose of
    14  serving new customers; (iv) reduces, or has  the  potential  to  reduce,
    15  lost  and  unaccounted for gas through a reduction in gas leaks; and (v)
    16  is not included in the approved rate base  of  the  gas  corporation  as
    17  determined in the gas corporation's most recent approved rate plan.
    18    (c)  "Gas  infrastructure rate plan" shall mean a pipeline replacement
    19  program construction plan that a gas corporation files with the  commis-
    20  sion pursuant to subdivision two of this section.
    21    (d)  "Project"  shall  mean  an  eligible pipeline replacement project
    22  proposed by a gas corporation in a plan filed under this section.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04525-01-3

        A. 2692                             2
 
     1    2. A gas corporation shall file with the commission a plan to  address
     2  aging or leaking pipeline within its respective service territory in the
     3  interest  of  public  safety  and  reducing lost and unaccounted for gas
     4  through a reduction in gas leaks. The filing of the plan required pursu-
     5  ant  to  this  subdivision  shall be submitted no later than the thirty-
     6  first of October, two thousand twenty-four.
     7    3. (a) Any plan filed with the commission shall include,  but  not  be
     8  limited  to:  (i) eligible pipeline replacement of mains, service lines,
     9  metering sets, and other ancillary facilities composed  of  non-cathodi-
    10  cally  protected  steel, cast iron, wrought iron, and any other material
    11  the commission deems leak-prone, prioritized to  implement  the  federal
    12  gas  distribution  pipeline integrity management plan annually submitted
    13  to the commission and consistent with subpart P of 49 C.F.R.  part  192;
    14  (ii)  an  anticipated timeline for the completion of each project; (iii)
    15  the estimated cost of each project; (iv) rate  change  requests;  (v)  a
    16  description  of customer costs and benefits under the plan; and (vi) any
    17  other information the department considers  necessary  to  evaluate  the
    18  plan.
    19    (b)  Upon  the  filing  of the plan required under this section, a gas
    20  corporation shall include a timeline for removing all  leak-prone  pipe-
    21  line  on an accelerated basis, specifying an annual replacement pace and
    22  program end date with a target end date of either:   (i) not  more  than
    23  twenty  years;  or  (ii)  a  reasonable  target end date considering the
    24  allowable recovery cap established pursuant to subdivision six  of  this
    25  section.   The commission shall not approve a timeline as part of a plan
    26  unless the allowable recovery cap established  pursuant  to  subdivision
    27  six  of  this  section  provides  the  gas corporation with a reasonable
    28  opportunity to recover its expenditures related with removing all  leak-
    29  prone infrastructure and the accelerated basis set forth under the time-
    30  line  utilizing the cost recovery mechanism established pursuant to this
    31  section. After filing the initial plan,  a  gas  corporation  shall,  no
    32  later than the thirty-first of October of each succeeding year, at annu-
    33  al  intervals,  provide the commission with a summary of its replacement
    34  progress to date, a summary of work to be completed  during  the  subse-
    35  quent  year  and  any additional information the commission may require.
    36  The commission may require a gas corporation to file  an  updated  long-
    37  term  timeline as part of a plan if it alters the cap established pursu-
    38  ant to subdivision six of this section.
    39    4. If a gas corporation files a plan on or before October thirty-first
    40  for the subsequent construction year, the commission  shall  review  the
    41  plan  within  six  months. The plan shall be effective as of the date of
    42  the filing, pending commission review. The commission may modify a  plan
    43  prior  to approval at the request of a corporation or make other modifi-
    44  cations to a plan as a  condition  of  approval.  The  commission  shall
    45  consider  the  costs and benefits of the plan including, but not limited
    46  to, ratepayer impact, with special consideration of customers  receiving
    47  assistance  through  the home energy assistance plan, reductions of lost
    48  and unaccounted for gas through a reduction in gas  leaks  and  improve-
    49  ments  to  public  safety. The commission shall give priority review and
    50  give preliminary acceptance to plans specifically  designed  to  address
    51  leak-prone  pipeline  most  immediately in need of replacement, based on
    52  standards established by the commission.
    53    5. If the commission determines a  plan  is  in  compliance  with  the
    54  requirements  of  this  section and would reasonably accelerate pipeline
    55  replacements and provide benefits, the commission shall issue acceptance
    56  in whole or in part. A gas corporation shall then be authorized to begin

        A. 2692                             3
 
     1  recovery of the estimated costs of projects included in the plan  begin-
     2  ning  on  May first of the year following the initial filing and collect
     3  any revenue requirement,  including  depreciation,  property  taxes  and
     4  return associated with the plan.
     5    6.  On  or before May first of each year, a gas corporation shall file
     6  final project documentation for projects completed in the prior year  to
     7  demonstrate  substantial  compliance  with the plan approved pursuant to
     8  subdivision five of this section and that all project costs were reason-
     9  ably and prudently incurred. The commission  shall  investigate  project
    10  costs  within  six  months of submission and shall approve and reconcile
    11  the authorized rate factor, if necessary, upon a determination that  the
    12  costs  were  reasonable  and  prudent.  Annual  changes  in  the revenue
    13  requirement eligible for recovery  shall  not  exceed  one-and-one  half
    14  percent of the gas corporation's most recent calendar year of total firm
    15  revenues,  including  revenues attributable to transmission and distrib-
    16  ution customers.  Any revenue requirement approved by the commission  in
    17  excess of such cap may be deferred for recovery in the following year.
    18    7.  All  rate  change  requests  made to the commission pursuant to an
    19  approved plan shall be filed annually  on  a  fully  reconciling  basis,
    20  subject  to acceptance by the commission pursuant to subdivision five of
    21  this section. The rate change included in a plan pursuant to subdivision
    22  three of this section, reviewed pursuant to  subdivision  five  of  this
    23  section  and  taking  effect on May first pursuant to subdivision six of
    24  this section shall be subject to review by the commission, to  determine
    25  whether  the  gas  corporation has over-collected or under-collected its
    26  requested rate adjustment with any such discrepancies reconciled  on  an
    27  annual  basis.  If  the commission determines that any of the costs were
    28  not reasonably or prudently incurred by a gas corporation,  the  commis-
    29  sion  shall  disallow the costs and direct the gas corporation to refund
    30  the full value of the costs charged to customers  with  the  appropriate
    31  carrying charges on the over-collected amounts. If the commission deter-
    32  mines  that  any  of  the costs were not in compliance with the approved
    33  plan, the commission shall disallow the costs  from  the  cost  recovery
    34  mechanism established under this section and shall direct the gas corpo-
    35  ration  to  refund the full value of the costs charged to customers with
    36  the appropriate carrying charges on the over-collected amounts.
    37    8. The commission may promulgate any rules and  regulations  necessary
    38  to effectuate the pipeline replacement program pursuant to this section.
    39  The commission may discontinue the replacement program and require a gas
    40  corporation  to  refund any costs charged to customers due to failure to
    41  substantially comply with a plan or failure to reasonably and  prudently
    42  manage project costs.
    43    § 2. This act shall take effect immediately.
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A02692 LFIN:

 NO LFIN
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A02692 Chamber Video/Transcript:

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