Establishes a natural gas safety and infrastructure replacement program

BILL NUMBER:S4213

Title of bill

An act to amend the public service law, in relation to establishing a natural gas safety and infrastructure replacement program; and to amend the state finance law, in relation to establishing a natural gas safety and infrastructure replacement fund

Purpose

To establish a natural gas safety and infrastructure replacement program in the public service law and a corresponding fund in the state finance law.

Summary of provisions

Section 1. This section adds a new section 74 to the public service law to establish the Natural Gas Safety and Infrastructure Replacement Program with amounts appropriated therefore to promote the replacement of bare steep pipe and cast iron pipe used for natural gas distribution and transmission systems. Such program would facilitate the relocation, restoration and protection of municipal underground infrastructure used for natural gas distribution and transmission systems approved by the PSC, including financial assistance to municipalities to directly offset costs related to moving, reconfiguring, restoration, paving and supporting municipal underground infrastructure. The director of the budget would be authorized to establish a program in the form of grants to municipalities for such relocation and protection of municipal underground infrastructure work in consultation with the Department of Public Service.

Section 2. This section amends the State Finance Law to establish a corresponding Natural Gas Safety and Infrastructure Replacement Fund in the joint custody of the state comptroller and the commissioner of taxation and finance consisting of moneys appropriated therefore and any other moneys which may become available for such purposes from any other source.

Section 3. is the effective date.

Justification

Natural gas infrastructure modernization and maintenance for underground facilities in cities across the State is necessary to ensure the safety of and reliability of such facilities. Bare steel and cast iron pipe, historically used for natural gas distribution and transmission systems, is susceptible to corrosion over time and particularly when exposed to salt spread on roads and sidewalks, which eventually comes in contact with these pipes underground.

This bill would help municipalities to pay for the necessary maintenance and upgrades for their underground systems and it will also help municipalities to efficiently coordinate projects that require digging up roads and repaving so that any other work that needs to be done underground can be accommodated within the scope of

the same project. This type of funding and coordinated efficiency is essential for municipalities that lack the resources to fund underground projects. It will provide much needed relief to municipalities that must address modernization and safety concerns and will help to generate jobs in the process.

Legislative history

New Bill.

Fiscal implications

Undetermined.

Effective date

This act shall take effect on the one hundred twentieth day after it shall have become a law; provided, however, that the public service commission is authorized and directed to promulgate, on or before its effective date, any and all rules and regulations, and take any other measures necessary to implement this act.