Pennsylvania Act 127 (Pipeline Act)

The Gas and Hazardous Liquids Pipelines Act (also known as “the Pipeline Act” or Act 127 of 2011) was signed by Governor Corbett on Dec. 22, 2011 and went into effect on Feb. 20, 2012. This law expands the Commission’s authority to enforce federal pipeline safety laws as they relate to gas and hazardous liquids pipeline equipment and facilities within the Commonwealth of Pennsylvania.

1. What Is Act 127?

• The Gas and Hazardous Liquids Pipelines Act (also known as “the Pipeline Act” or Act 127 of 2011) was signed into law on December 22, 2011, and it went into effect on February 20, 2012. Its primary purpose is to expand the Pennsylvania Public Utility Commission’s (PUC) authority to enforce federal pipeline safety laws related to non-public utility gas and hazardous liquids pipeline equipment and facilities within the state.

• It empowers the PUC to oversee and regulate pipelines more comprehensively, ensuring safety and compliance.

1. Who Does Act 127 Apply To?

• Act 127 applies to pipeline operators within Pennsylvania. What pipeline operators fall under Act 127:

1. Pipeline Operators Under Act 127:

• Companies Engaged in Gas and Hazardous Liquids Transportation:

• Gathering companies

• Midstream companies

• Pipeline companies

• Gas distribution systems that are not public utilities (such as cooperatives, municipalities, and municipal authorities)

• Master meter systems that provide service to properties owned by third parties

• Propane distribution systems subject to federal pipeline safety laws

1. Who Is Not Considered a Pipeline Operator Under Act 127?

2. Public Utilities: Public utility companies and city natural gas distribution operations are not considered pipeline operators under Act 127.

3. Ultimate Consumers: Individuals who own service lines on their own real property (including master meter systems serving their own property) are also exempt.

4. FERC-Regulated Pipelines: Pipelines subject to the exclusive jurisdiction of the Federal Energy Regulatory Commission (FERC) are not covered by Act 127.

5. Non-Federally Regulated Petroleum Gas Distributors: If a petroleum gas distributor is not subject to federal pipeline safety laws, they are not considered pipeline operators under Act 127.

6. What are the Filing Requirements for Act 127 Operators?
   

   1. Operators of Act 127 pipelines are required to file the Pennsylvania Pipeline Operator Annual Registration Form, annually by March 31, and pay an assessment fee.
      

Act 127 ensures that pipeline operators—excluding public utilities and certain other entities are regulated and monitored to enhance safety and compliance in Pennsylvania. For additional information visit https://www.puc.pa.gov/filing-resources/issues-laws-regulations/act-127-pipeline-act/