The amendment updates federal regulatory citations from January 1, 2023 references to January 1, 2026 references, and makes numerous clarifying edits to definitions and language throughout the pipeline safety statute (such as changing "which" to "that," removing redundancies, and reorganizing the definition of "master meter system"). These changes NARROW the bill's focus to technical corrections and modernization of regulatory citations rather than substantive policy changes to pipeline safety inspection requirements.
26.81.18 26.81.19 101st Legislative Session 1027 2026 South Dakota Legislature House Bill 1027 Introduced by: The Chair of the Committee on Commerce and Energy at the request of the Public Utilities Commission of the State of South Dakota Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to update certain citations to federal regulations regarding pipeline safety 1 inspections. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 49-34B-1 be AMENDED: 4 49-34B-1. Terms used in this chapter mean: 5 (1) "Commission," the Public Utilities Commission of the State of South Dakota; 6 (2) "Emergency release," a release of a quantity of gas that is great enough to pose: 7 to: (a) Pose a clear and immediate danger to life, health, or the environment,; 8 orthat threatens 9 environment; or (b) Threaten a significant loss of property; 10 (3) "Gas," natural gas, liquefied natural gas, flammable gas, gas which that is toxic or 11 corrosive, or liquefied petroleum gas in a distribution systems system; 12 (4) "Gas pipeline," all parts of those the physical facilities through which gas moves in 13 transportation, including pipe compressor units, delivery stations, fabricated 14 assemblies, holders, metering stations, pipes, regulator stations, valves, and other 15 appurtenances attached to pipe, compressor units, metering stations, regulator 16 stations, delivery stations, holders, and fabricated assemblies the facilities; 17 (5) "Gas pipeline facilities," new and existing pipelines, pipelines and rights-of-way, master 18 meter systems, pipeline facilities within this state, which transport gas from an 19 interstate gas pipeline to a direct sales customer, within this state, purchasing gas 20 for its the customer's own consumption, and any building, equipment, or facility, 21 or building facility used in the transportation of gas, or in the treatment of gas during the 22 course of transportation, within this state; 23 (6) "Inspection fee," any fee assessed to pipeline operators based on the expenses 24 and obligations incurred by the commission in implementing and administering this 25 chapter; 26 26.81.18 2 1027 Underscores indicate new language. Overstrikes indicate deleted language. (7) "Intrastate pipeline," any pipeline or that part of a pipeline to which this part applies 1 that is not an interstate pipeline; 2 (8) "Interstate pipeline," pipeline facilities used in the transportation of gas, which are 3 subject to the jurisdiction of the Federal Energy Regulatory Commission under the 4 Natural Gas Act, United States Code, Title 15, sections 717 to 717z, inclusive, as 5 amended to January 1, 2023, except that it does not include 15 U.S.C. §§ 717 to 6 717z, inclusive (January 1, 2026), except any 26.81.19 2 1027 HB1027 ENROLLED pipeline facilities facility, within this 7 state which transport, state, transporting gas from an interstate gas pipeline to a direct 8 sales customer, within this state, purchasing gas for its the customer's own 9 consumption; 10 (8) "Intrastate pipeline," any pipeline or part of a pipeline to which this chapter applies, 11 but which is not an interstate pipeline; 12 (9) "Liquefied natural gas," natural gas or synthetic gas having methane (CH4) as its 13 major constituent that, constituent, which has been changed to a liquid or semisolid; 14 (10) "Master meter system," any pipeline system for distributing gas within a definable 15 area, such as a mobile home park, housing project, or an apartment complex, 16 housing project, mobile home park, or other definable area, where the operator 17 purchases metered gas from an outside source for resale through a gas distribution 18 pipeline system and the gas distribution pipeline system supplies the ultimate 19 consumer who either purchases the gas directly through a meter or by rents or 20 other means, such as by rents; 21 means; (11) "Pipeline operator," any person who owns or operates a pipeline; 22 (12) "Release," a spilling, leaking, pumping, pouring, emitting, emptying, any 23 discharging, injecting, leaching, dumping, disposing, dumping, emitting, emptying, 24 flowing, injecting, leaching, leaking, pouring, pumping, spilling, or any uncontrolled 25 escape escaping of a gas from a pipeline; and 26 (13) "Transportation of gas," the distribution, gathering, or transmission, or distribution 27 transmission of gas by pipeline, or the storage of gas. 28 Section 2. That § 49-34B-3 be AMENDED: 29 49-34B-3. There is created a pipeline safety inspection program. The federal 30 safety standards adopted as Code of Federal Regulations, title 49 appendix, parts 191, 31 192, 193, and 199 as amended to January 1, 2023 as set forth in 49 C.F.R. parts 191 to 32 193, inclusive, 199, and appendices to parts 191 and 192 (January 1, 2026), are adopted 33 as minimum safety standards for this chapter. The commission shall establish and 34 26.81.18 3 1027 Underscores indicate new language. Overstrikes indicate deleted language. implement a compliance pipeline safety inspection program to enforce these safety 1 standards. The program shall be established and implemented standards in a manner that fully 2 complies with requirements for state certification under the United States Code, title 49, 3 section 60105, as amended to January 1, 2023 pursuant to 49 U.S.C. § 60105 (January 4 1, 2026). 5 Section 3. That § 49-34B-4 be AMENDED: 6 49-34B-4. The commission may, by rules promulgated pursuant to chapter 1-26, 7 establish safety standards, but standards that are not more stringent than federal safety standards, 8 as provided by set forth in § 49-34B-3, for the intrastate transportation of gas and gas 9 pipeline facilities. The standards may apply to the construction, design, installation 10 extension, inspection, installation, maintenance, operation, replacement, and testing, 11 construction, extension, operation, replacement, and maintenance testing of gas pipeline 12 facilities. Standards affecting the design, installation, construction, design, initial 13 inspection, and initial testing, and installation do not 26.81.19 3 1027 HB1027 ENROLLED apply to pipeline facilities in existence 14 on the date the standards are adopted by either this state or the federal government. The 15 safety standards shall must be practicable and designed to meet the need for pipeline 16 safety. In prescribing the standards, the commission shall consider: 17 (1) Relevant available pipeline safety data; 18 (2) Whether the standards are appropriate for the particular type of pipeline 19 transportation of gas; 20 (3) The reasonableness of any proposed standards; 21 (4) The extent to which the each standard will contribute to public safety; and 22 (5) The existing standards established by the secretary of the United States 23 Department of Transportation pursuant to the United States Code, title 49, section 24 60101 et seq. as amended to January 1, 2023 49 U.S.C. §§ 60101 to 60143, 25 inclusive (January 1, 2026). 26 Section 4. That § 49-34B-13 be AMENDED: 27 49-34B-13. No A person is not subject to civil penalties under this chapter if prior 28 civil penalties have been imposed under the United States Code, title 49, section 60101 29 et seq. as amended to January 1, 2023 pursuant to 49 U.S.C. §§ 60101 to 60143, inclusive 30 (January 1, 2026), for conduct that may give rise to a violation of both acts. Nothing in 31 this chapter limits the powers of the commission, commission or precludes the pursuit of any other 32 administrative, civil, criminal, or injunctive, or criminal remedies injunctive remedy by the 33 26.81.18 4 1027 Underscores indicate new language. Overstrikes indicate deleted language. commission or any other person. Administrative remedies need not be exhausted in order 1 to proceed under this chapter. The remedies provided by this chapter are in addition to 2 those provided under existing statutory or common law. 3 Section 5. That § 49-34B-14 be AMENDED: 4 49-34B-14. The commission may, to the extent authorized by agreement with the 5 secretary of the United States Department of Transportation, act as agent for the secretary 6 of transportation to implement the United States Code, title 49, section 60101 et seq. as 7 amended to January 1, 2023 provisions of 49 U.S.C. §§ 60101 to 60143, inclusive 8 (January 1, 2026), and any federal pipeline safety regulations promulgated thereto with 9 respect to interstate gas pipelines located within this state, as necessary to obtain annual 10 federal certification. The If the commission agrees to serve as an agent for the Department 11 of Transportation, the commission shall must, to the extent authorized by federal law, 12 inspect pipelines in the state as authorized by the § 49-34B-3 and other applicable 13 provisions of this chapter. 14 Section 6. That § 49-34B-15 be AMENDED: 15 26.81.19 4 1027 HB1027 ENROLLED 49-34B-15. The commission may seek and accept federal designation of the 16 commission's pipeline inspectors as federal agents for the purposes of inspection pursuant 17 to the United States Code, title 49, section 60101 et seq. as amended to January 1, 2023 18 49 U.S.C. §§ 60101 to 60143, inclusive (January 1, 2026), and federal rules adopted to 19 implement those acts statutes. If the Department of Transportation delegates inspection 20 authority to the state as provided in this section, the commission shall do what is 21 necessary to must carry out its delegated federal authority. 22 Section 7. That § 49-34B-19 be AMENDED: 23 49-34B-19. The commission may promulgate pipeline inspection and safety rules, 24 pursuant to chapter 1-26, to the extent necessary to enable the state to qualify for annual 25 federal certification to operate the federal pipeline inspection program of intrastate and 26 interstate gas pipelines as authorized by the United States Code, title 49, section 60101 27 et seq. as amended to January 1, 2023 49 U.S.C. §§ 60101 to 60143, inclusive (January 28 1, 2026). 29 Section 8. That § 49-34B-22 be AMENDED: 30 26.81.18 5 1027 Underscores indicate new language. Overstrikes indicate deleted language. 49-34B-22. All information granted to, reported to, or obtained by the commission 1 under this chapter that contains or relates to, chapter, which is a trade secret referred to in United 2 States Code, title 18, section 1905, as amended to January 1, 2023, or that is granted by 3 chapter 37-29, secret, as defined in § 37-29-1, is confidential for the purpose of that section, 4 confidential, except that the information may be disclosed to the commission or commission employee 5 or its agent concerned with responsible for enforcing this chapter. Nothing in this section 6 authorizes the withholding of information by the commission from a committee of the 7 Legislature. 8 26.81.19 5 1027 HB1027 ENROLLED An Act to update certain citations to federal regulations regarding pipeline safety inspections. I certify that the attached Act originated in the: House as Bill No. 1027 Chief Clerk of the House Speaker of the House Attest: Chief Clerk of the House President of the Senate Attest: Secretary of the Senate House Bill No. 1027 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2026 at _________ o'clock __M. Secretary of State By Asst. Secretary of State