Rule-Making Notices (Hearing Notices)

Statute interpreted

This rule interprets s. 196.745, Stats., and, under a contract with the U.S. Department of Transportation, Office of Pipeline Safety, the federal pipeline safety regulations (49 CFR 190 to 199).

Related statutes or rules

The federal pipeline safety statutes may be found in 49 USC 60101 to 60133. The federal pipeline safety regulations may be found in 49 CFR 190 to 199. Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission enforces the federal pipeline safety regulations for Wisconsin's natural gas pipeline operators, primarily public utilities. Under this agreement, the commission has the authority to make additions to the federal code that are more stringent than the federal standards.

Chapter PSC 134 is the rule that deals with gas service standards. That rule also has some requirements concerning safe interactions between pipeline operators and their customers.

Brief summary of rule

Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission is authorized to enforce federal natural gas pipeline safety requirements as set out in the Code of Federal Regulations, 49 CFR. Parts 192, 193, and 199. As part of the agreement, the commission adopts the federal pipeline safety code in Wis. Admin. Code s. PSC 135.019. The commission's latest version of that rule adopts the federal code up to January 1, 2013. New gas pipeline safety code requirements are generally enacted in October of each year. As a result, the commission needs to amend its rule to include those federal regulation changes made since January 2013. Adoption of these amendments will keep the commission in compliance with its obligation to adopt all federal changes in the pipeline safety area.

Comparison with existing or proposed federal legislation

As this is the adoption of the federal regulations, it is the same as the federal regulations.

Comparison with similar rules in surrounding states

All states, including Michigan, Iowa, Illinois, and Minnesota, adopt the federal pipeline regulations.

Effect on Small Business

This rule will not affect small businesses. The s. 227.114(12), Stats., definition of “small business" states that to be considered a small business, the business must not be dominant in its field. Since electric, gas, and water utilities are monopolies in their service territories, they are dominant in their fields and, so, are not small businesses. Further, the contract between the federal department of transportation and the commission requires that treatment be uniform across the state and across gas pipeline operators. As a result, the commission cannot make special provisions for small business.

Comments

Comments on this rule may be submitted as outlined in the Notice of Rulemaking without Hearing and Request for Comments.

Accommodation

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this rulemaking or who needs to obtain this document in a different format should contact the docket coordinator listed below.

Agency Contact People

Questions regarding this rule should be directed to docket coordinator Thomas Stemrich, at [phone] or [e-mail]. Small business questions should be directed to Christina Keeley at [phone] or [e-mail]. Media questions should be directed to the Communications Director, at [phone]. Hearing or speech-impaired individuals may also use the commission's TTY number; if calling from Wisconsin, [phone]; if calling from outside Wisconsin [phone].

Initial Regulatory Flexibility Analysis

This rulemaking has no effect on small businesses. The s. 227.114 (12), Stats., definition of “small business" states that to be considered a small business, the business must not be dominant in its field. Since gas utilities are monopolies in their service territories, they are dominant in their field and, so, are not small businesses. Further, the contract between the federal department of transportation and the commission requires that treatment be uniform across the state and across gas pipeline operators. As a result, the commission cannot make special provisions for small business.

Fiscal Estimate

This rule will result in no fiscal impact since pipeline operators are already required, under federal law, to follow the federal regulations. Any economic impact of those federal regulations has already occurred. This rulemaking just updates the state's enforcement authority.

Text of Proposed Rule

SECTION 1. PSC 135.019 (1) is amended to read:

PSC 135.019 (1) The federal department of transportation, office of pipeline safety, pipeline safety standards, as adopted through January 1, 2013 the effective date of these rules … [LRB to insert date]…, and incorporated in 49 CFR Parts 192, 193 and 199, including the appendices, are adopted as state pipeline safety standards and incorporated by reference into this chapter.

SECTION 2. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

155 – PSC 135 – Pipeline Safety Regulations
1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
PSC 135, Gas Safety
3. Subject
Adoption of federal gas pipeline regulations
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   X FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission is authorized to enforce federal natural gas pipeline safety requirements as set out in the Code of Federal Regulations, 49 C.F.R. Parts 192, 193, and 199. As part of the agreement, the commission adopts the federal pipeline safety code in Wis. Admin. Code s. PSC 135.019. The commission's latest version of that rule adopts the federal code up to January 1, 2013. New gas pipeline safety code requirements are generally enacted in October of each year. As a result, the commission needs to amend its rule to include those federal rule changes made since January 2013. Adoption of these amendments will keep the commission in compliance with its obligation to adopt all federal changes in the pipeline safety area.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
All gas utilities, Wisconsin Utilities Association, Utility Workers' Association, and National Federation of Independent Businesses.
11. Identify the local governmental units that participated in the development of this EIA.
N/A
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
This rule will result in no economic impact since pipeline operators are already required, under federal law, to follow the federal regulations. Any economic impact of those federal regulations has already occurred. This rulemaking just updates the state's enforcement authority.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Adoption of these amendments will keep the commission in compliance with its obligation to adopt all federal changes in the pipeline safety area. Being in compliance increases the amount of federal money received by the state.
14. Long Range Implications of Implementing the Rule
The only long-range implication is that the state's enforcement authority will be updated.
15. Compare With Approaches Being Used by Federal Government
As this is the adoption of the federal regulations, it is the same approach as the federal government.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
All states, including the neighboring states, adopt the federal pipeline regulations.
17. Contact Name				18. Contact Phone Number
Lisa Farrell				06/13/2014

ATTACHMENT A

1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)

N/A

2. Summary of the data sources used to measure the Rule's impact on Small Businesses

N/A

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?

⍽ Less Stringent Compliance or Reporting Requirements ⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting ⍽ Consolidation or Simplification of Reporting Requirements ⍽ Establishment of performance standards in lieu of Design or Operational Standards ⍽ Exemption of Small Businesses from some or all requirements ⍽ Other, describe:

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses

N/A

5. Describe the Rule's Enforcement Provisions

N/A

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)

⍽ Yes X No

Notice of Hearings

Public Service Commission

rulemaking_notices CR 14-053 CR 14-053

(PSC DOCKET # 1-AC-244)

The Public Service Commission of Wisconsin proposes an order to repeal sections PSC 112.05 (3) (a) 1. to 3. and 118.03 (2) (b); renumber section PSC 133.03 (1) (e) 1. to 3.; to renumber and amend sections PSC 118.09 (1), 133.03 (1) (e) and 184.03 (3); to amend sections PSC 112.05 (3) (a) (intro.) and (b), 118.02 (17), 118.03 (1) (intro.), (2) (intro.), (4) (b), and (5), and 118.04 (1); to create PSC sections 112.05 (3) (c) and (c) (note), 118.09 (1), 133.03 (1) (e) 2., 3., and 3. (note), and 184.03 (3) (b), (c), and (c) (note), regarding obtaining a certificate or approval prior to beginning a proposed utility project, and displacement facility requirements and the displacement percentage that apply in renewable energy situations.

Hearing Information

Date:   Tuesday, September 30, 2014
Time:   10:00 a.m.
Location:   Amnicon Falls Hearing Room
  1st Floor
  Public Service Commission
  610 North Whitney Way
  Madison, Wisconsin

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to get this document in a different format should contact the docket coordinator Andrew Kell, at [phone] or [e-mail] as soon as possible.

Appearances at the hearing and Submittal of Written Comments

Pursuant to s. 227.16 (2 ) (b), Stats., the commission will hold a public hearing on these proposed rule changes in the Amnicon Falls Hearing Room at the Public Service Commission Building, 610 North Whitney Way, Madison, Wisconsin, on Tuesday, September 30, 2014, at 10:00 a.m.. This building is accessible to people in wheelchairs through the Whitney Way (lobby) entrance. Handicapped parking is available on the south side of the building.

Any person may submit written comments on these proposed rules. The record will be open for written comments from the public, effective immediately, and until Tuesday, October 14, 2014, at 12:00 noon. All written comments must include a reference on the filing to docket 1-AC-244. File by one mode only.

Industry: File comments using the Electronic Regulatory Filing system. This may be accessed from the commission's web site (http://psc.wi.gov).

Members of the Public:

Please submit your comments in one of the following ways:

•   Electronic Comment. Go to the commission's web site at http://psc.wi.gov, and click on the “ERF - Electronic Regulatory Filing" graphic on the side menu bar. On the next page, click on “Need Help?" in the side menu bar for instructions on how to upload a document.

•   Web Comment. Go to the commission's web site at http://psc.wi.gov, click on the “Public Comments" button on the side menu bar. On the next page select the “File a comment" link that appears for docket number 1-AC-244.

•   Mail Comment. All comments submitted by U.S. mail must include the phrase “Docket 1-AC-244 Comments" in the heading, and shall be addressed to:

Sandra J. Paske, Secretary to the Commission

Public Service Commission

P.O. Box 7854

Madison, WI 53707-7854

The commission does not accept comments submitted via e-mail or facsimile (fax). Any material submitted to the commission is a public record and may appear on the commission's web site. The commission may reject a comment that does not comply with the requirements described in this notice.

Contact People

Questions regarding this matter should be directed to docket coordinator Andrew Kell, at [phone] or [e-mail]. Small business questions should be directed to Christina Keeley at [phone] or [e-mail]. Media questions should be directed to the Communications Director at [phone]. Hearing or speech impaired individuals may also use the commission's TTY number, if calling from Wisconsin [phone], if calling from outside Wisconsin [phone].

Analysis Prepared by the Public Service Commission of Wisconsin

Statutory authority and explanation of authority

This rulemaking is authorized under ss. 196.02 (1) and (3), 196.378, 196.49 (3), and 227.11 (2), Stats.

Section 227.11, Stats., authorizes agencies to promulgate administrative rules. Section 196.02 (1), Stats., authorizes the commission to do all things necessary and convenient to its jurisdiction. Section 196.02 (3), Stats., grants the commission specific authority to promulgate rules. Section 196.378, Stats., authorizes the Commission to promulgate a variety of rules concerning renewable energy credits. Section 196.49 (3), Stats., authorizes the Commission to promulgate rules about granting certificates.

Statute interpreted

This rule interprets ss. 196.378 and 196.49, Stats.

Related statutes or rules

None.

Brief summary of rule

The purpose of the rulemaking is to amend chs. PSC 112, 133, and 184 of the Wisconsin Administrative Code relating to the requirement to obtain a certificate or approval prior to beginning a proposed project, to conform with the statutory changes in s. 196.49 (5g), Stats., made by 2011 Wisconsin Act 155. This is accomplished by referencing where the revised cost thresholds for certification or approval may be found.

Furthermore, this rulemaking amends ch. PSC 118, relating to displacement facilities, to conform with the statutory changes made in s. 196.378 (3) (a) 1m., Stats., by 2013 Wisconsin Act 300. This is accomplished in the following ways: (1) strike the requirement that a displacement facility be placed in service on or after June 3, 2010, to be consistent with the statute; and (2) revise the reference to “in the entire area served by the Midcontinent Independent System Operator" as a basis for the displacement percentage to streamline the process for determining the displacement percentage.

Comparison with existing or proposed federal legislation

The commission is not aware of any existing or proposed federal legislation concerning the matters addressed in this rulemaking.

Comparison with similar rules in surrounding states

The commission is not aware of any surrounding states that limit what facilities may be used to recreate renewable energy credits by the date on which the facilities went into service. The commission is not aware of any surrounding states that determine whether certification or approval is necessary by the cost of the project.

Effect on Small Business

This rule will not affect small businesses. The s. 227.114 (12), Stats., definition of “small business" states that to be considered a small business, the business must not be dominant in its field. Since electric, gas, and water utilities are monopolies in their service territories, they are dominant in their fields and, so, are not small businesses.

Comments

Comments on this rule may be submitted as outlined in the Notice of Hearing.

Accommodation

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to obtain this document in a different format should contact the docket coordinator listed below.

Agency Contact People

Questions regarding this rule should be directed to docket coordinator Andrew Kell, at [phone] or [e-mail]. Small business questions should be directed to Christina Keeley at [phone] or [e-mail]. Media questions should be directed to the Communications Director at [phone]. Hearing or speech-impaired individuals may also use the commission's TTY number; if calling from Wisconsin, [phone]; if calling from outside Wisconsin [phone].

Initial Regulatory Flexibility Analysis

This rule will not affect small businesses. The s. 227.114 (12), Stats., definition of “small business" states that to be considered a small business, the business must not be dominant in its field. Since gas, electric, and water utilities are monopolies in their service territories, they are dominant in their fields, and so, are not small businesses.

Fiscal Estimate

This rulemaking should have either no or minimal economic impact.

Wisconsin Environmental Policy Act

This is a Type III action under Wis. Admin. Code s. PSC 4.10 (3). The Commission will review the potential environmental effects of the project. Type III actions normally do not require the preparation of an environmental impact statement under Wis. Stat. s. 1.11 or an environmental Assessment.

Text of Proposed Rule

SECTION 1. PSC 112.05 (3) (a) (intro.) is amended to read:

PSC 112.05 (3) (a) (intro.) Cost thresholds for projects requiring commission review and approval under this section are as follows: those established under par. (b).

SECTION 2. PSC 112.05 (3) (a) 1. to 3. are repealed.

SECTION 3. PSC 112.05 (3) (b) is amended to read:

PSC 112.05 (3) (b) Beginning in calendar year 2000, and on May 1 on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust the estimated gross cost thresholds in par. (a) s. 196.49 (5g) (a), Stats., to account for inflation in reflect changes to the cost of electric utility construction. The adjustment shall be based on the cost index numbers published in the "Handy-Whitman Index of Public Utility Construction Costs, Cost Trends of Electric Utility Construction - North Central Region for Total Transmission Plant" (Handy-Whitman Index). The commission shall make the adjustment calculation by multiplying each gross cost threshold in par. (a) by the ratio of the Handy Whitman Index number on January 1 of the most recent even-numbered year (numerator) to the Handy Whitman Index number on January 1, 1998 (denominator). The commission shall notify all electric utilities of the resulting adjusted cost limits by May 15 of each even-numbered year. If the referenced Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the electric industry and acceptable to the commission.

SECTION 4. PSC 112.05 (3) (c) and (c) note are created to read:

PSC 112.05 (3) (c) The commission shall notify all electric utilities of the resulting adjusted cost limits by May 15 of each even-numbered year and shall publicize the adjusted cost limits on the commission's website. If the Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the electric industry and acceptable to the commission.

Note: The commission maintains or has access to the Handy-Whitman Index of Public Utility Construction Costs and this reference or a copy may be reviewed by contacting the commission's offices.