Pipeline inspection and safety.

09LSO-0110.C1

CORRECTED COPY

FISCAL NOTE

This bill would increase the potential total civil penalties that might be assessed in case of violations of the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 (PIPES Act). Any civil penalties that might be imposed by the Public Service Commission (PSC) would be deposited in the County Public School Fund of the county where the violation occurred, in accordance with W.S. 8-1-109. However, the PSC has not had the need to assess a civil penalty under the existing statute to obtain compliance from pipeline operators. Thus, while this passage of this bill would increase potential County Public School Fund revenue by increasing the size of civil penalties that could be imposed, any such increase is both unlikely, based on historical application of the existing civil penalty provisions, and unpredictable, as any events that might result in imposition of a significant penalty are uncommon.

Passage of this bill would avoid a potential loss of approximately 5% of federal funding for the Pipeline Safety Program ($105,000 annual federal funding from Grant in Aid Program for state participating in Pipeline Safety Programs x 5% = $5,250). The federal portion of the funding is currently 40% with potential to increase to 60% or more. The Pipeline and Hazardous Material Safety Administration (PHMSA) funding formula considers whether the State has adopted amendments to 49 CFR § 192.

Prepared by:   Christopher Petrie, PSC     Phone: 777-5763