HOUSE BILL 23

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

John A. Heaton

FOR THE RADIOACTIVE AND HAZARDOUS MATERIALS COMMITTEE

AN ACT

RELATING TO PIPELINES; CREATING THE PIPELINE SAFETY FUND; AUTHORIZING THE IMPOSITION OF PIPELINE SAFETY INSPECTION FEES BY THE PUBLIC REGULATION COMMISSION; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Pipeline Safety Act is enacted to read:

     "[NEW MATERIAL] PIPELINE SAFETY FUND--CREATED--ASSESSMENT AND COLLECTION OF FEES.--

          A. The "pipeline safety fund" is created in the state treasury for the purpose of enhancing the staffing and training of the pipeline safety bureau of the commission with the goal of assuming the function of inspection of interstate as well as intrastate pipelines. The fund shall consist of fees collected pursuant to Subsection D of this section, appropriations, gifts, grants, donations and earnings from investment of the fund. Balances in the fund shall not be transferred to the general fund at the end of any fiscal year.

          B. The pipeline safety fund shall be administered by the commission. Money in the fund is appropriated to the commission to carry out its duties pursuant to the provisions of the Pipeline Safety Act and Chapter 62, Article 14 NMSA 1978.

          C. Payments from the pipeline safety fund shall be made upon vouchers issued and signed by the director of the administrative services division of the commission or the director's authorized representative upon warrants drawn by the secretary of finance and administration.

          D. The commission shall collect pipeline safety fees from persons subject to the Pipeline Safety Act in accordance with and not to exceed the following amounts:

                (1) for the transportation of gas:

                     (a) two dollars ($2.00) per service line;

                     (b) thirty-five dollars ($35.00) per mile of gathering line, transmission line or distribution main, with a minimum assessment of four hundred dollars ($400); and

                     (c) one hundred dollars ($100) per master meter, direct sales lateral or petroleum gas system; and

                (2) for the transportation of oil, thirty-five dollars ($35.00) per mile of transmission line, with a minimum assessment of four hundred dollars ($400).

          E. The commission shall annually conduct a public review of the fees collected and payments made from the fund and provide a summary to the legislative finance committee and the department of finance and administration. Based upon its findings, the commission shall adjust the fee rates authorized by Subsection D of this section in order to collect only that amount estimated to be necessary to carry out the provisions of the Pipeline Safety Act and Chapter 62, Article 14 NMSA 1978."

     Section 2. A new section of the Public Utility Act is enacted to read: 

     "[NEW MATERIAL] PIPELINE SAFETY FEE.--A public utility that is assessed a pipeline safety fee shall be entitled to collect the fee from its rate payers without the requirement of a request for a change in rates. The utility shall notify the commission in writing of the imposition and amount of the fee and, if practicable, shall show the fee as a separate line item on its bill statements to consumers."

     Section 3. APPROPRIATION.--Three hundred thousand dollars ($300,000) is appropriated from the general fund to the pipeline safety fund for expenditure in fiscal year 2005 and subsequent fiscal years for expansion of the pipeline safety bureau of the public regulation commission to carry out the safety, inspection and enforcement provisions of the Pipeline Safety Act and Chapter 62, Article 14 NMSA 1978. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

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