IV. JURISDICTION
Under the Federal Pipeline Safety Act, the Pipeline and Hazardous Materials Safety Administration (PHMSA) of the United States Department of Transportation has safety jurisdiction over natural gas transmission pipelines in the United States. (49 U.S.C. § 60101(a)(6)(B).) The federal statute also allows for a delegation of this responsibility to the individual States. In particular, Section 60105(b)(2) provides that a State may be granted safety jurisdiction over its natural gas transmission pipelines if the State requests certification and adopts each safety standard prescribed by the federal government under 49 U.S.C. § 60101 et seq.
The Public Utilities Commission also has substantial jurisdiction under state law to regulate the safety of natural gas pipelines in California. The California State Constitution, Article XII, gives the Commission authority over natural gas operators in California. Public Utilities Code Section 701, and Public Utilities Code Section 222 which defines gas corporations, empower the Commission to do "all things...necessary and convenient" in the exercise of its powers and jurisdiction over natural gas operators. Section 768 authorizes the Commission to promote and safeguard the health and safety of the public by establishing uniform standards for construction and maintenance of utility equipment and plant. Section 451, which has been in effect since 1909, requires all public utilities to provide and maintain "adequate, efficient, just, and reasonable" service and facilities as are necessary for the "safety, health, comfort, and convenience" of its customers and the public.7 A violation of the Public Utilities Code or a Commission decision or order is subject to fines of $500 to $20,000 for each violation, for each ongoing day, pursuant to Sections 21078 and 2108.
The U.S. Department of Transportation has certified the Commission to enforce standards under the Federal Pipeline Safety Act (49 U.S.C. § 60105(b)(2)). The Commission in this capacity applies the federal pipeline safety regulations contained in 49 Code of Federal Regulations (CFR) Part 192, et seq. The Commission adopted General Order (GO) 112-C in 1971, which adopted in their entirety the federal pipeline safety rules in 49 C.F.R. Part 192, also adopted in 1971.
Pursuant to its constitutional and statutory mandate, the Commission created the first version of (GO) 112 in 1960 (effective July 1, 1961) governing natural gas pipeline safety adopting the standards put forth by the American Society of Mechanical Engineers (ASME) that were followed by the industry at that time (ASME B31.1.8, in effect in 1955). General Order 112 has been updated several times - the current version is GO 112-E, last revised in 2008. General Order 112-E was substantially altered in order to automatically incorporate all revisions to the Federal Pipeline Safety Regulations, 49 CFR Parts 190, 191, 192, 193, and 199.
7 The California Court of Appeals has upheld the Commission's authority to find Section 451 violations that are separate and distinct from any other rule or regulation. PacBell Wireless v. PUC (2006) 140 Cal.App. 4th 718.
8 Section 2107 was originally created in 1915 and was then known as Section 76, with a penalty range of $500-$2,000. Section 2107 was increased to $500-$20,000 in 1993. SB 879 became effective January 1, 2012, raising the fine amounts to $500-$50,000.
