Representative Stephen G. Handy proposes the following substitute bill:


1     
NATURAL GAS AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stephen G. Handy

5     
Senate Sponsor: Kevin T. Van Tassell

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions of the Public Utilities Code related to natural gas pipelines.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies civil penalties for violating a provision of the Public Utilities Code; and
13          ▸     requires a person engaged in intrastate pipeline transportation to maintain an
14     inspection plan.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          54-13-3, as enacted by Laws of Utah 1989, Chapter 131
22          54-13-8, as enacted by Laws of Utah 2011, Chapter 426
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 54-13-3 is amended to read:
26          54-13-3. Rules.
27          The commission shall adopt and enforce rules pursuant to Section 54-13-2 including
28     rules which:
29          (1) incorporate the safety standards established under the federal Natural Gas Pipeline
30     Safety Act that are applicable to intrastate pipeline transportation; and
31          (2) require persons engaged in intrastate pipeline transportation to:
32          (a) maintain records and to submit reports and information to the commission to enable
33     the commission to determine whether the person is acting in compliance with this chapter or
34     rules adopted under this chapter; and
35          (b) [file, with the commission for its approval,] maintain a plan for inspection and
36     maintenance of each pipeline facility that is available to the commission upon commission
37     request.
38          Section 2. Section 54-13-8 is amended to read:
39          54-13-8. Violation of chapter -- Penalty.
40          (1) Any person engaged in intrastate pipeline transportation who is determined by the
41     commission, after notice and an opportunity for a hearing, to have violated any provision of
42     this chapter or any rule or order issued under this chapter, is liable for a civil penalty of not
43     more than [$10,000] $100,000 for each violation for each day the violation persists.
44          (2) The maximum civil penalty assessed under this section may not exceed [$500,000]
45     $1,000,000 for any related series of violations.
46          (3) The amount of the penalty shall be assessed by the commission by written notice.
47          (4) In determining the amount of the penalty, the commission shall consider:
48          (a) the nature, circumstances, and gravity of the violation; and
49          (b) with respect to the person found to have committed the violation:
50          (i) the degree of culpability;
51          (ii) any history of prior violations;
52          (iii) the effect on the person's ability to continue to do business;
53          (iv) any good faith in attempting to achieve compliance;
54          (v) the person's ability to pay the penalty; and
55          (vi) any other matter, as justice may require.
56          (5) (a) A civil penalty assessed under this section may be recovered in an action
57     brought by the attorney general on behalf of the state in the appropriate district court, or before
58     referral to the attorney general, it may be compromised by the commission.
59          (b) The amount of the penalty, when finally determined, or agreed upon in
60     compromise, may be deducted from any sum owed by the state to the person charged.
61          (6) Any penalty collected under this section shall be deposited in the General Fund.