Bill Text: MS HB1186 | 2025 | Regular Session | Introduced
Bill Title: Natural gas piping systems; require testing in school facilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-20 - Referred To Public Utilities [HB1186 Detail]
Download: Mississippi-2025-HB1186-Introduced.html
MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Public Utilities
By: Representative Powell
House Bill 1186
AN ACT TO REQUIRE TESTING OF NATURAL GAS PIPING SYSTEMS IN SCHOOL FACILITIES; TO BRING FORWARD SECTIONS 53-3-151 AND 53-3-157, MISSISSIPPI CODE OF 1972, WHICH RELATE TO UNDERGROUND STORAGE OF NATURAL GAS OR COMPRESSED AIR, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 77-11-103 AND 77-11-107, MISSISSIPPI CODE OF 1972, WHICH RELATE TO SAFETY AND INSPECTION STANDARDS OF MUNICIPAL GAS SYSTEMS, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 77-33-2 AND 77-1-55, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE POWERS AND DUTIES OF THE PUBLIC SERVICE COMMISSION, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Sections 1 through 8 of this act applies to a facility of a public elementary or secondary school, including a charter school, or a private elementary or secondary school, but does not apply to a home school.
SECTION 2. As used in Sections 1 through 8 of this act, "supplier" means an individual or company that sells and delivers natural gas to a school facility. If more than one individual or company sells and delivers natural gas to a school facility, each individual or company is a supplier for purposes of Sections 1 through 8 of this act.
SECTION 3. (1) A person responsible for a school facility shall perform annual pressure tests on the natural gas piping system in the school facility. The tests must be performed before the beginning of the school year.
(2) If the person responsible for one or more school facilities operates the facilities on a year-round calendar year, the pressure test in each of those facilities must be conducted and reported not later than July 1 of the year in which the pressure test is performed.
(3) A natural gas piping pressure test performed under a municipal code satisfies the pressure testing requirements prescribed by this section.
SECTION 4. (1) The person responsible for a school facility shall have a pressure test performed by a qualified plumber to determine whether the natural gas piping downstream of the school facility's meter holds at least normal operating pressure over a specified period determined by the Mississippi Public Service Commission.
(2) During the pressure test, each system supply inlet and outlet in the school facility must be closed.
(3) At the request of a person responsible for a school facility, the Mississippi Public Service Commission shall assist the person in developing a procedure for conducting the test.
SECTION 5. (1) A person responsible for a school facility shall provide written notice to the school's supplier specifying the date and result of each pressure test or other inspection.
(2) The supplier shall maintain a copy of the notice until at least the first anniversary of the date on which the supplier received the notice.
SECTION 6. (1) A supplier shall discontinue service to a school facility if:
(a) The supplier receives official notification from the firm or individual conducting the test of a hazardous natural gas leakage in the facility piping system; or
(b) A test or other inspection at the facility is not performed as required by Sections 1 through 8 of this act.
(2) A supplier is not liable for any damages that result from a failure to discontinue service as required by subsection (1)(b) of this section for a facility other than a school district facility.
SECTION 7. An identified natural gas leakage in a school district facility must be reported to the board of trustees of the district in which the facility is located. An identified natural gas leakage in another school facility must be reported to the person responsible for the school facility.
SECTION 8. (1) The Mississippi Public Service Commission, as the state agency charged with enforcement of natural gas pipeline safety standards, shall promulgate rules and regulations to implement the requirements of this act on or before December 31, 2025, to be applicable for the 2026-2027 school year.
(2) For those suppliers who are natural gas utilities whose rates are regulated by the Mississippi Public Service Commission, each such natural gas utility may include in its energy efficiency plan and/or energy delivery plan a program that provides financial assistance for schools to offset the costs of implementation of the Mississippi Public Service Commission's rules implementing this act.
SECTION 9. Section 53-3-151, Mississippi Code of 1972, is brought forward as follows:
53-3-151. As used in Sections 53-3-151 through 53-3-165: (a) "underground storage" shall mean storage in an underground reservoir, stratum or formation of the earth; (b) "natural gas" shall mean gas of sufficient purity to be capable of use for residential purposes; (c) "native gas" shall mean gas which previously has not been withdrawn from the earth, or which, having been withdrawn, is injected into a reservoir for purposes other than underground storage; (d) "compressed air" shall mean any nonhydrocarbon gas; and (e) "State Oil and Gas Board" or "board" shall mean the State Oil and Gas Board of Mississippi.
SECTION 10. Section 53-3-157, Mississippi Code of 1972, is brought forward as follows:
53-3-157. The State Oil and Gas Board shall issue such orders, rules and regulations as may be necessary for the purpose of protecting any such underground storage reservoir, stratum or formation against pollution or against the escape of natural gas or compressed air therefrom, including such necessary rules and regulations as may pertain to the drilling into or through such underground storage reservoir, stratum or formation.
All natural gas or compressed air which has previously been reduced to possession and which is subsequently injected into an underground storage reservoir, stratum or formation shall at all times be deemed the property of the injector, his successors and assigns, and in no event shall such natural gas or compressed air be subject to the right of the owner of the surface of the lands or of any mineral interest therein under which such underground storage reservoir, stratum or formation shall lie or be adjacent to or of any person other than the injector, his successors and assigns, to produce, take, reduce to possession, waste or otherwise interfere with or exercise any control thereover; provided, that the State Oil and Gas Board shall have entered an order, either before or after the enactment hereof, approving such underground storage reservoir, stratum or formation.
SECTION 11. Section 77-11-103, Mississippi Code of 1972, is brought forward as follows:
77-11-103. To carry out the provisions of this article, the public service commission shall prescribe the safety standards and inspection procedures for said gas districts or municipally owned and/or operated gas systems and for said private pipelines, private pipeline carriers and private pipeline carriers by contract.
SECTION 12. Section 77-11-107, Mississippi Code of 1972, is brought forward as follows:
77-11-107. In order to determine whether or not each gas district or municipally owned and/or operated gas system or pipeline or privately owned or operated gas pipeline is operating in compliance with the required safety standards and to enforce such compliance, the Mississippi Public Service Commission shall have the right, power and authority to promulgate reasonable rules and regulations to facilitate such purpose. Authorized personnel of the commission shall be authorized to inspect all such gas districts, municipally or privately owned and/or operated gas systems, pipelines, facilities and equipment and shall have the right of access and entry to all buildings and property owned, leased and operated by such systems. Other information shall be made available to the commission upon request.
SECTION 13. Section 77-3-2, Mississippi Code of 1972, is brought forward as follows:
77-3-2. (1) The Legislature finds and determines that the rates, services and operations of public utilities as defined in this title are affected with the public interest and that the availability of an adequate and reliable service by such public utilities to the people, economy and government of the State of Mississippi is a matter of public policy. The Legislature hereby declares to be the policy of the State of Mississippi:
(a) To provide fair regulation of public utilities in the interest of the public;
(b) To promote the inherent advantage of regulated public utilities;
(c) To promote adequate, reliable and economical service to all citizens and residents of the state;
(d) To provide just and reasonable rates and charges for public utility services without unjust discrimination, undue preferences or advantages, or unfair or destructive competitive practices and consistent with long-term management and conservation of energy resources by avoiding wasteful, uneconomic and inefficient uses of energy;
(e) To encourage and promote harmony between public utilities, their users and the environment;
(f) To foster the continued service of public utilities on a well-planned and coordinated basis that is consistent with the level of service needed for the protection of public health and safety and for the promotion of the general welfare;
(g) To cooperate with other states and the federal government in promoting and coordinating interstate and intrastate public utility service and reliability;
(h) To encourage the continued study and research for new and innovative rate-making procedures which will protect the state, the public, the ratepayers and the utilities, and where possible reduce the costs of the rate-making process; and
(i) With respect to rate-regulated public utilities, to foster, encourage, enable and facilitate economic development in the State of Mississippi, to support and augment economic development activities, to expand deployment of existing and emerging technologies, including fiber-optic infrastructure which will foster a more reliable and resilient utility delivery system and provide customer access to enhanced services, to authorize and empower the Public Service Commission in carrying out its statutory responsibilities, and to take every opportunity to advance the economic development of the state.
(2) To these ends, therefore, authority shall be vested in the Mississippi Public Service Commission to regulate public utilities in accordance with the provisions of this title.
(3) (a) The commission shall, in addition to its other powers and duties, be authorized and empowered, in its discretion, to consider and adopt a formula type rate of return evaluation rate which may include provision for the commission to:
(i) Periodically review and adjust, if required, the utility's level of revenues based upon the actual books and records of the utility which are periodically the subject of independent audits and regulatory audits;
(ii) Review the utility's performance in certain areas or categories which may be used by the commission in the manner selected by it which may include rate incentives or penalties so long as such are found to be fair and reasonable and result in a level of revenue which is fair and reasonable; and
(iii) Use such other provisions which may be permitted by this chapter.
(b) When a formula type rate of return evaluation rate with periodic revenue adjustments is adopted by the commission, each periodic revenue adjustment will be separately considered for the purpose of determining whether a hearing is required pursuant to Section 77-3-39(1), and no such hearing shall be required if the amount of any separate periodic adjustment to the level of revenues of the utility is not a "major change" as defined in Section 77-3-37(8).
(c) In administering any such formula type rate of return evaluation rate, the following procedures shall be observed by the commission:
(i) Each periodic evaluation shall be supported with a sworn filing by the utility incorporating the data specified in the formula rate adopted by the commission, and such data shall be verified by the commission; and
(ii) A hearing shall be required, as provided by law, to determine compliance with the formula rate plan and the accuracy of the data prior to any change in the level of revenues if the cumulative change in any calendar year exceeds the greater of Two Hundred Thousand Dollars ($200,000.00) or four percent (4%) of the annual revenues of the utility.
(d) The requirements of paragraphs (a), (b) and (c) of this subsection and other applicable provisions of Title 77, Chapter 3, Article 1, Mississippi Code of 1972, which are observed by the commission in administering such rate, are hereby declared to be procedural but are not required to be included in the rate itself.
(4) It is the intention of the Legislature to validate, retroactively to its initial adoption by the commission, any formula type rate, including any revenue adjustments effected pursuant thereto, which has heretofore been adopted by the commission. For the purposes of the retroactive validation and the administration of any formula type rate heretofore adopted by the commission, should the provisions of Title 77, Chapter 3, Article 1, Mississippi Code of 1972, conflict with any provisions of such formula type rate, Title 77, Chapter 3, Article 1, Mississippi Code of 1972, shall be interpreted to prevail and the formula type rate shall hereafter be administered or revised to conform to Title 77, Chapter 3, Article 1, Mississippi Code of 1972; provided, however, such conflict, if any, shall not be held to invalidate the retroactive effect of this section upon such rate.
SECTION 14. Section 77-1-55, Mississippi Code of 1972, is brought forward as follows:
77-1-55. (1) The Public Service Commission, with the aid and the assistance of the Public Utilities Staff, shall have the power to monitor, investigate, and seek relief in any appropriate federal forum from all existing or proposed interstate rates, charges, allocations and classifications, and all rules and practices in relation thereto promulgated and prescribed by or for any public utility as defined in Section 77-3-3(d)(i).
(2) The Public Service Commission, with the aid and the assistance of the Public Utilities Staff, may seek relief from any proposed or final decision, order, regulation, rule or law that has an impact on any existing or proposed interstate rate, charge, allocation or classification.
(3) For the purpose of this section, the Public Service Commission and the Executive Director of the Public Utilities Staff may each enter into professional services contracts with one or more attorneys or consultants from a competent, qualified and independent firm as may be required by the commission or the executive director. Costs associated with the professional service contracts shall not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) for each agency with respect to each rate regulated affected utility in any twelve-month period. The consultants or counsel shall submit periodically, but no less frequently than once each calendar quarter, to the executive director or the commission, as applicable, for approval of payment, itemized bills detailing the work performed. The executive director or the chairman of the commission, as applicable, shall requisition the applicable public utility to make the requisite payments to such consultants. The commission shall allow the utility to recover both the total costs the utility incurred under this section and the carrying charges for those costs through a rate rider established to recover the costs incurred and carrying charges incurred. Such rider shall include a true-up provision to ensure actual recovery of costs paid or otherwise incurred by the utility.
SECTION 15. This act shall take effect and be in force from and after July 1, 2025.
