A1699

An Act concerning new transmission lines for certain gas companies and amending and supplementing Title 48 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Board” means the Board of Public Utilities or any successor agency.

“Existing public utility right-of-way” means a corridor of land separated from other land uses, which is used, owned, or under the control of any public utility, or a corridor of land separated from other land uses for which any public utility has obtained easements. “Existing public utility right-of-way” shall not include any public street or roadway.

“Gas company” means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes natural gas in this State.

“Public utility” shall have the same meaning as provided in R.S.48:2-13.

“Transmission line” means any pipe, main, or other infrastructure of a gas company having a capacity, as determined by the board, to be used for the transmission of natural gas, but the term shall not include a service line used for distribution purposes.

2. (New section) Consistent with federal law and the provisions of R.S.48:9-17, R.S.48:9-24, and P.L.1949, c.110 (C.48:9-25.4), where practicable, a gas company shall use an existing public utility right-of-way when constructing a new transmission line. The gas company shall develop a plan, to be approved by the board, to reduce the impact of the new transmission line upon residential areas to the maximum extent possible.

3. (New section) Consistent with federal law, prior to approving the construction of a new transmission line in a residential area, a gas company proposing to construct a new transmission line shall demonstrate to the board that the gas company will use an existing public utility right-of-way or attempt to use an existing public utility right-of-way, including but not limited to, by seeking approval from an owner of an existing public utility right-of-way to use the owner’s existing public utility right-of-way, as determined by the board.

4. R.S.48:9-17 is amended to read as follows:

48:9-17. Every gas company [heretofore] organized under this chapter or [hereafter] organized under Title 14[, Corporations, General,] of the Revised Statutes may manufacture, sell, furnish, and distribute [such quantities of] natural gas suitable for light, heat, power, or other purposes as may be required in the municipality [or municipalities] where the [same] natural gas shall be located, or its operations lawfully extended.

[Every such company] Consistent with federal law, for the purpose of the distribution or transmission of natural gas, a gas company may lay conductors and install related facilities for conducting natural gas through the streets, alleys, squares, and public places in any municipality [or municipalities] in which [it] the gas company may lawfully operate, having first obtained the consent by resolution or ordinance of the governing body of [such] the municipality for the furnishing of natural gas [therein] and the approval of [such] the consent by the Board of Public [Utility Commissioners] Utilities. The consent may be subject to reasonable regulations with respect to the opening of streets, alleys, squares, and public places, not inconsistent with the provisions of this [article] section.

(cf: P.L.1962, c.198, s.99)

5. R.S.48:9-24 is amended to read as follows:

48:9-24. [Any corporation of this state] Consistent with federal law, a gas company, having lawful authority to lay or maintain gas pipes or mains in the streets and public places of a municipality for the distribution or transmission of natural gas, may use its pipes or mains within the municipality for the transmission of natural gas to another municipality, in the streets or public places of which it may also have lawful authority to lay or maintain gas pipes or mains for the distribution or transmission of natural gas. Nothing [contained] in this section shall grant to any [corporation] gas company a franchise or right to lay down gas pipes for the distribution or transmission of natural gas in any municipality of this [state] State.

(cf: R.S.48-9-24)

6. Section 1 of P.L.1949, c. 110 (C.48:9-25.4) is amended to read as follows:

1. [Any] Consistent with federal law, any gas company organized under the laws of this State in addition to but not in limitation of the powers conferred by the laws under which it was organized may construct, lay, maintain, and use facilities, conductors, mains, and pipes, with the appurtenances thereto, in, through and beyond any municipality [or municipalities], for the purpose of transmitting through the [same] municipality natural gas or any mixture of gas or gases of any other type or types for use in its business; provided, that in each case [such corporation] the gas company shall first have obtained a designation by the governing body or official having control thereof, of the public street, road, highway, or place, which may be occupied by [such corporation] a gas company for [such purpose] the distribution or transmission of natural gas. If any governing body or official having control of any public street, road, highway, or place, after having received from [such corporation] a gas company a request to designate [such] a public street, road, highway, or place, for occupancy by [such corporation] a gas company for [such purpose] the distribution or transmission of natural gas, shall fail or refuse to make [such] that designation or to designate a practicable route, the Board of Public [Utility Commissioners] Utilities, upon application by the [corporation] gas company, and after hearing on notice to [such] the governing body or official, shall make [such] that designation provided that the gas company demonstrates compliance with the requirements of sections 2 and 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.1962, c.198, s.103)

7. This act shall take effect immediately.

STATEMENT

This bill provides that, where practicable, a gas company is to use an existing public utility right-of-way when constructing a new transmission line. Under the bill, the gas company is to develop a plan, to be approved by the Board of Public Utilities (board), to reduce the impact of the new transmission line upon residential areas to the maximum extent possible.

Prior to approving the construction of a new transmission line in a residential area, a gas company proposing to construct a new transmission line is to demonstrate to the board that the gas company will use an existing public utility right-of-way or attempt to use an existing public utility right-of-way, including but not limited to, by seeking approval from an owner of an existing public utility right-of-way to use the owner’s existing public utility right-of-way, as determined by the board.

The bill amends existing law to require a gas company proposing to construct, lay, maintain, or use distribution or transmission infrastructure in a municipality to first seek the consent of the municipality.