S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3664
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 28, 2021
                                ___________
 
 Introduced  by  M.  of  A.  RODRIGUEZ, BICHOTTE HERMELYN, CAHILL, GALEF,
   COLTON, COOK, BRAUNSTEIN, JOYNER, PEOPLES-STOKES,  WALKER,  HUNTER  --
   Multi-Sponsored  by -- M. of A. GLICK -- read once and referred to the
   Committee on Corporations, Authorities and Commissions
 
 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:
 
   Section  1.  The public service law is amended by adding a new section
 68-b to read as follows:
   § 68-B. AGING OR LEAKING PIPELINES. 1. DEFINITIONS. FOR  THE  PURPOSES
 OF  THIS SECTION, THE FOLLOWING WORDS, SHALL, UNLESS THE CONTEXT CLEARLY
 REQUIRES OTHERWISE, HAVE THE FOLLOWING MEANINGS:
   (A) "CUSTOMER" SHALL MEAN A RETAIL CUSTOMER RECEIVING END USE  SERVICE
 FROM A GAS CORPORATION.
   (B)  "ELIGIBLE INFRASTRUCTURE REPLACEMENT" SHALL MEAN A REPLACEMENT OR
 AN IMPROVEMENT OF EXISTING PIPELINE OF  GAS  CORPORATION  THAT:  (I)  IS
 PERFORMED  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO; (II) IS
 DESIGNED TO IMPROVE PUBLIC  SAFETY  AND/OR  INFRASTRUCTURE  RELIABILITY;
 (III)  DOES  NOT INCREASE THE REVENUE OF A GAS CORPORATION BY CONNECTING
 AN IMPROVEMENT OR INSTALLING NEW PIPELINE FOR THE PRINCIPAL  PURPOSE  OF
 SERVING  NEW  CUSTOMERS;  (IV)  REDUCES, OR HAS THE POTENTIAL TO REDUCE,
 LOST AND UNACCOUNTED FOR GAS THROUGH A REDUCTION IN GAS LEAKS;  AND  (V)
 IS  NOT  INCLUDED  IN  THE  APPROVED RATE BASE OF THE GAS CORPORATION AS
 DETERMINED IN THE GAS CORPORATION'S MOST RECENT APPROVED RATE PLAN.
   (C) "GAS INFRASTRUCTURE RATE PLAN" SHALL MEAN A  PIPELINE  REPLACEMENT
 PROGRAM  CONSTRUCTION PLAN THAT A GAS CORPORATION FILES WITH THE COMMIS-
 SION PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
   (D) "PROJECT" SHALL MEAN  AN  ELIGIBLE  PIPELINE  REPLACEMENT  PROJECT
 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.
              

                                                            LBD03073-01-1

 A. 3664                             2
 
   2.  A GAS CORPORATION SHALL FILE WITH THE COMMISSION A PLAN TO ADDRESS
 AGING OR LEAKING PIPELINE WITHIN ITS RESPECTIVE SERVICE TERRITORY IN THE
 INTEREST OF PUBLIC SAFETY AND REDUCING  LOST  AND  UNACCOUNTED  FOR  GAS
 THROUGH A REDUCTION IN GAS LEAKS. THE FILING OF THE PLAN REQUIRED PURSU-
 ANT  TO  THIS  SUBDIVISION  SHALL BE SUBMITTED NO LATER THAN THE THIRTY-
 FIRST OF OCTOBER, TWO THOUSAND TWENTY-TWO.
   3. (A) ANY PLAN FILED WITH THE COMMISSION SHALL INCLUDE,  BUT  NOT  BE
 LIMITED  TO:  (I) ELIGIBLE PIPELINE REPLACEMENT OF MAINS, SERVICE LINES,
 METERING SETS, AND OTHER ANCILLARY FACILITIES COMPOSED  OF  NON-CATHODI-
 CALLY  PROTECTED  STEEL, CAST IRON, WROUGHT IRON, AND ANY OTHER MATERIAL
 THE COMMISSION DEEMS LEAK-PRONE, PRIORITIZED TO  IMPLEMENT  THE  FEDERAL
 GAS  DISTRIBUTION  PIPELINE INTEGRITY MANAGEMENT PLAN ANNUALLY SUBMITTED
 TO THE COMMISSION AND CONSISTENT WITH SUBPART P OF 49 C.F.R.  PART  192;
 (II)  AN  ANTICIPATED TIMELINE FOR THE COMPLETION OF EACH PROJECT; (III)
 THE ESTIMATED COST OF EACH PROJECT; (IV) RATE  CHANGE  REQUESTS;  (V)  A
 DESCRIPTION  OF CUSTOMER COSTS AND BENEFITS UNDER THE PLAN; AND (VI) ANY
 OTHER INFORMATION THE DEPARTMENT CONSIDERS  NECESSARY  TO  EVALUATE  THE
 PLAN.
   (B)  UPON  THE  FILING  OF THE PLAN REQUIRED UNDER THIS SECTION, A GAS
 CORPORATION SHALL INCLUDE A TIMELINE FOR REMOVING ALL  LEAK-PRONE  PIPE-
 LINE  ON AN ACCELERATED BASIS, SPECIFYING AN ANNUAL REPLACEMENT PACE AND
 PROGRAM END DATE WITH A TARGET END DATE OF EITHER:   (I) NOT  MORE  THAN
 TWENTY  YEARS;  OR  (II)  A  REASONABLE  TARGET END DATE CONSIDERING THE
 ALLOWABLE RECOVERY CAP ESTABLISHED PURSUANT TO SUBDIVISION SIX  OF  THIS
 SECTION.   THE COMMISSION SHALL NOT APPROVE A TIMELINE AS PART OF A PLAN
 UNLESS THE ALLOWABLE RECOVERY CAP ESTABLISHED  PURSUANT  TO  SUBDIVISION
 SIX  OF  THIS  SECTION  PROVIDES  THE  GAS CORPORATION WITH A REASONABLE
 OPPORTUNITY TO RECOVER ITS EXPENDITURES RELATED WITH REMOVING ALL  LEAK-
 PRONE INFRASTRUCTURE AND THE ACCELERATED BASIS SET FORTH UNDER THE TIME-
 LINE  UTILIZING THE COST RECOVERY MECHANISM ESTABLISHED PURSUANT TO THIS
 SECTION. AFTER FILING THE INITIAL PLAN,  A  GAS  CORPORATION  SHALL,  NO
 LATER THAN THE THIRTY-FIRST OF OCTOBER OF EACH SUCCEEDING YEAR, AT ANNU-
 AL  INTERVALS,  PROVIDE THE COMMISSION WITH A SUMMARY OF ITS REPLACEMENT
 PROGRESS TO DATE, A SUMMARY OF WORK TO BE COMPLETED  DURING  THE  SUBSE-
 QUENT  YEAR  AND  ANY ADDITIONAL INFORMATION THE COMMISSION MAY REQUIRE.
 THE COMMISSION MAY REQUIRE A GAS CORPORATION TO FILE  AN  UPDATED  LONG-
 TERM  TIMELINE AS PART OF A PLAN IF IT ALTERS THE CAP ESTABLISHED PURSU-
 ANT TO SUBDIVISION SIX OF THIS SECTION.
   4. IF A GAS CORPORATION FILES A PLAN ON OR BEFORE OCTOBER THIRTY-FIRST
 FOR THE SUBSEQUENT CONSTRUCTION YEAR, THE COMMISSION  SHALL  REVIEW  THE
 PLAN  WITHIN  SIX  MONTHS. THE PLAN SHALL BE EFFECTIVE AS OF THE DATE OF
 THE FILING, PENDING COMMISSION REVIEW. THE COMMISSION MAY MODIFY A  PLAN
 PRIOR  TO APPROVAL AT THE REQUEST OF A CORPORATION OR MAKE OTHER MODIFI-
 CATIONS TO A PLAN AS A  CONDITION  OF  APPROVAL.  THE  COMMISSION  SHALL
 CONSIDER  THE  COSTS AND BENEFITS OF THE PLAN INCLUDING, BUT NOT LIMITED
 TO, RATEPAYER IMPACT, WITH SPECIAL CONSIDERATION OF CUSTOMERS  RECEIVING
 ASSISTANCE  THROUGH  THE HOME ENERGY ASSISTANCE PLAN, REDUCTIONS OF LOST
 AND UNACCOUNTED FOR GAS THROUGH A REDUCTION IN GAS  LEAKS  AND  IMPROVE-
 MENTS  TO  PUBLIC  SAFETY. THE COMMISSION SHALL GIVE PRIORITY REVIEW AND
 GIVE PRELIMINARY ACCEPTANCE TO PLANS SPECIFICALLY  DESIGNED  TO  ADDRESS
 LEAK-PRONE  PIPELINE  MOST  IMMEDIATELY IN NEED OF REPLACEMENT, BASED ON
 STANDARDS ESTABLISHED BY THE COMMISSION.
   5. IF THE COMMISSION DETERMINES A  PLAN  IS  IN  COMPLIANCE  WITH  THE
 REQUIREMENTS  OF  THIS  SECTION AND WOULD REASONABLY ACCELERATE PIPELINE
 REPLACEMENTS AND PROVIDE BENEFITS, THE COMMISSION SHALL ISSUE ACCEPTANCE
 IN WHOLE OR IN PART. A GAS CORPORATION SHALL THEN BE AUTHORIZED TO BEGIN

 A. 3664                             3
 
 RECOVERY OF THE ESTIMATED COSTS OF PROJECTS INCLUDED IN THE PLAN  BEGIN-
 NING  ON  MAY FIRST OF THE YEAR FOLLOWING THE INITIAL FILING AND COLLECT
 ANY REVENUE REQUIREMENT,  INCLUDING  DEPRECIATION,  PROPERTY  TAXES  AND
 RETURN ASSOCIATED WITH THE PLAN.
   6.  ON  OR BEFORE MAY FIRST OF EACH YEAR, A GAS CORPORATION SHALL FILE
 FINAL PROJECT DOCUMENTATION FOR PROJECTS COMPLETED IN THE PRIOR YEAR  TO
 DEMONSTRATE  SUBSTANTIAL  COMPLIANCE  WITH THE PLAN APPROVED PURSUANT TO
 SUBDIVISION FIVE OF THIS SECTION AND THAT ALL PROJECT COSTS WERE REASON-
 ABLY AND PRUDENTLY INCURRED. THE COMMISSION  SHALL  INVESTIGATE  PROJECT
 COSTS  WITHIN  SIX  MONTHS OF SUBMISSION AND SHALL APPROVE AND RECONCILE
 THE AUTHORIZED RATE FACTOR, IF NECESSARY, UPON A DETERMINATION THAT  THE
 COSTS  WERE  REASONABLE  AND  PRUDENT.  ANNUAL  CHANGES  IN  THE REVENUE
 REQUIREMENT ELIGIBLE FOR RECOVERY  SHALL  NOT  EXCEED  ONE-AND-ONE  HALF
 PERCENT OF THE GAS CORPORATION'S MOST RECENT CALENDAR YEAR OF TOTAL FIRM
 REVENUES,  INCLUDING  REVENUES ATTRIBUTABLE TO TRANSMISSION AND DISTRIB-
 UTION CUSTOMERS.  ANY REVENUE REQUIREMENT APPROVED BY THE COMMISSION  IN
 EXCESS OF SUCH CAP MAY BE DEFERRED FOR RECOVERY IN THE FOLLOWING YEAR.
   7.  ALL  RATE  CHANGE  REQUESTS  MADE TO THE COMMISSION PURSUANT TO AN
 APPROVED PLAN SHALL BE FILED ANNUALLY  ON  A  FULLY  RECONCILING  BASIS,
 SUBJECT  TO ACCEPTANCE BY THE COMMISSION PURSUANT TO SUBDIVISION FIVE OF
 THIS SECTION. THE RATE CHANGE INCLUDED IN A PLAN PURSUANT TO SUBDIVISION
 THREE OF THIS SECTION, REVIEWED PURSUANT TO  SUBDIVISION  FIVE  OF  THIS
 SECTION  AND  TAKING  EFFECT ON MAY FIRST PURSUANT TO SUBDIVISION SIX OF
 THIS SECTION SHALL BE SUBJECT TO REVIEW BY THE COMMISSION, TO  DETERMINE
 WHETHER  THE  GAS  CORPORATION HAS OVER-COLLECTED OR UNDER-COLLECTED ITS
 REQUESTED RATE ADJUSTMENT WITH ANY SUCH DISCREPANCIES RECONCILED  ON  AN
 ANNUAL  BASIS.  IF  THE COMMISSION DETERMINES THAT ANY OF THE COSTS WERE
 NOT REASONABLY OR PRUDENTLY INCURRED BY A GAS CORPORATION,  THE  COMMIS-
 SION  SHALL  DISALLOW THE COSTS AND DIRECT THE GAS CORPORATION TO REFUND
 THE FULL VALUE OF THE COSTS CHARGED TO CUSTOMERS  WITH  THE  APPROPRIATE
 CARRYING CHARGES ON THE OVER-COLLECTED AMOUNTS. IF THE COMMISSION DETER-
 MINES  THAT  ANY  OF  THE COSTS WERE NOT IN COMPLIANCE WITH THE APPROVED
 PLAN, THE COMMISSION SHALL DISALLOW THE COSTS  FROM  THE  COST  RECOVERY
 MECHANISM ESTABLISHED UNDER THIS SECTION AND SHALL DIRECT THE GAS CORPO-
 RATION  TO  REFUND THE FULL VALUE OF THE COSTS CHARGED TO CUSTOMERS WITH
 THE APPROPRIATE CARRYING CHARGES ON THE OVER-COLLECTED AMOUNTS.
   8. THE COMMISSION MAY PROMULGATE ANY RULES AND  REGULATIONS  NECESSARY
 TO EFFECTUATE THE PIPELINE REPLACEMENT PROGRAM PURSUANT TO THIS SECTION.
 THE COMMISSION MAY DISCONTINUE THE REPLACEMENT PROGRAM AND REQUIRE A GAS
 CORPORATION  TO  REFUND ANY COSTS CHARGED TO CUSTOMERS DUE TO FAILURE TO
 SUBSTANTIALLY COMPLY WITH A PLAN OR FAILURE TO REASONABLY AND  PRUDENTLY
 MANAGE PROJECT COSTS.
   § 2. This act shall take effect immediately.