SF 91 – Pipeline Safety Violations
COMMITTEE ACTION:
SF 91/SSB 1051 is a recommendation by the Utilities Division of the Iowa Department of Commerce. It increases the maximum penalties for violations relating to pipelines and underground gas storage so that Iowa stays in compliance with federal requirements. The Iowa Utilities Board (IUB) receives federal funding to administer the state’s pipeline safety program on behalf the Pipeline and Hazardous Materials Safety Administration. The legislation applies only to intrastate pipelines. Interstate lines are under federal jurisdiction. Currently, pipeline safety violations of Iowa law, rule or order pertaining to Chapter 479 are subject to a civil penalty levied by the IUB not to exceed $10,000 per violation per day or $500,000 per series. In response to federal requirements applicable to all states as part of more stringent national focus on public safety, the bill increases the maximum to $100,000 per day and $1 million for a series of violations. While this is an ongoing compliance issue, it is noted that the IUB has never assessed maximum penalties and, in most instances where violations are found by IUB inspectors, the utility takes corrective action and no penalty is assessed. [1/29: short form]