Michigan Office of Administrative Hearings and Rules

611 W. Ottawa Street

Lansing, MI 48909

Phone: 517-335-8658 Fax: 517-335-9512

AGENCY REPORT TO THE

JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)

1. Agency Information

Agency name:

Licensing and Regulatory Affairs

Division/Bureau/Office:

Public Service Commission

Name of person completing this form:

Blair renfro

Phone number of person completing this form:

517-284-8089

E-mail of person completing this form:

RenfroB@michigan.gov

Name of Department Regulatory Affairs Officer reviewing this form:

Elizabeth Arasim

2. Rule Set Information

MOAHR assigned rule set number:

2019-59 LR

Title of proposed rule set:

Michigan Gas Safety Standards

3. Purpose for the proposed rules and background:

In order for Michigan to maintain jurisdiction over gas pipeline facilities and transportation, the state

must certify that it has adopted each applicable federal standard, or is taking steps to adopt that

standard, 49 USC 60105(b)(2). Failure to adopt the updates to the federal standards will eventually

lead to reduction or termination of federal funding to the state to carry out enforcement of these

standards. In addition, failure to maintain local jurisdiction over pipeline regulation will mean that

pipelines located in Michigan will be forced to submit to federal regulators located in Washington

D.C. or other out-of-state locations. Thus, the primary purpose of these amendments is to adopt by

reference current federal regulations governing gas safety along with updating certain other technical

standards contained in the rules. The MPSC also proposes to add record retention periods. The

proposed amendments also make minor changes to Michigan rules so that the language in these rules

conforms more closely to the federal rules.

4. Summary of proposed rules:

MCL 24.242 and 24.245

Agency Report to JCAR-Page 2

The primary purpose of these amendments to an existing rule set is to adopt by reference current

federal regulations governing gas safety along with updating certain other technical standards

contained in the rules. The Michigan Public Service Commission also proposes to add record

retention periods. The proposed amendments also make minor changes to Michigan rules so that the

language in these rules conforms more closely to the federal rules.

5. List names of newspapers in which the notice of public hearing was published and

publication dates:

Oakland Press, February 25, 2021

The Grand Rapids Press, February 25, 2021

The Mining Journal, February 25, 2021

6. Date of publication of rules and notice of public hearing in Michigan Register:

3/15/2021

7. Date, time, and location of public hearing:

3/24/2021 09:00 AM at Virtual Room , https://gcc02.safelinks.protection.outlook.com/ap/t-

59584e83/?url=https%3A%2F%2Fteams.microsoft.com%2Fl%2Fmeetup-join%2F19%

253ameeting_MmI5MjIwYjUtZGFlZi00NTliLTlkNmMtNzM0MGY4MDk3ZjI1%2540thread.v2%

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7C74825afad0034bb56e3808d8cecb6165%7Cd5fb7087377742ad966a892ef47225d1%7C0%7C0%

7C637486720239207420%7CUnknown%

7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M

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3D&reserved=0

8. Provide the link the agency used to post the regulatory impact statement and cost-benefit

analysis on its website:

https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=84

9. List of the name and title of agency representative(s) attending public hearing:

Thomas Blair Renfro, Michigan Public Service Commission

10. Persons submitting comments of support:

None

11. Persons submitting comments of opposition:

Robert Beach-Consumers Energy Company

Alida D. Sandberg-DTE Gas Company

12. Identify any changes made to the proposed rules based on comments received during the

public comment period:

MCL 24.242 and 24.245

Agency Report to JCAR-Page 3

Name &

Comments made at Written

Agency Rationale Rule number

Organization public hearing

Comments

for change

& citation

changed

1

Robert Beach

Consumers

Energy

Consumers

Energy Company agrees, in part,

proposes that to with Consumers’

The Commission R 460.20329

Company

eliminate some

confusion, the

words “and

recommendation.

The Commission

finds that

inspect” should removing the term

be removed from “and inspect” from

the first sentence the proposed

in R 460.20329 amended rule will

(Rule 329).

make the intent of

Consumers then the rule clearer,

recommends that since valve

the sentence

inspection is

“Plastic valves

already covered

shall be inspected under 49 CFR

in accordance

with the

192.747, which is

adopted by

manufacturers’

reference in R

requirements” be 460.20606.

added to the end However, the

of rule.

Commission

disagrees with

adding the

recommended

sentence at the end

of the proposed

amended rule.

Consumers’

recommendation

does not enhance

the rule or make

the intent of the

rule any clearer.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 4

Consumers

2

Robert Beach

Consumers

Energy

The Commission Table 1- R

460.20501(3)

Energy Company finds that Rule

recommends that 460.20501(3) does

Company

the Commission not specifically

amend the Rule require a record

501(3) retention retention period

schedule in Table and to create one

Alida D.

Sandberg

DTE Gas

Company

1 to require a

record retention both Consumers

period of a Energy Company

within Table 1, as

“Maximum of 2 and DTE Gas

inspection cycles, Company suggest,

if applicable; or may cause

for 5 years per

(per 460.20501

confusion, and

therefore should

(3)).” DTE Gas not be included in

Company the proposed rule.

recommends that The Commission

the Commission does, however,

amend the Rule believe that clarity

501(3) retention of intent within

schedule in Table Table 1 could be

1 to a “Minimum heightened by

of 2 inspection

cycles or a

minimum of 5

adding “. . . or as

otherwise directed

in this table” to the

years, whichever “Additional

is longer.”

Instructions”

column for R

460.20501(3)

within Part 5 of

Table 1. column

for each rule in

Part 5 of Table 1.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 5

DTE Gas

3

Alida D.

Sandberg

DTE Gas

Company

The Commission R 460.20606

(1) and (2)

Company notes agrees and the

that the Pipeline hyperlinks in these

and Hazardous amended rules will

Materials Safety be adjusted

Administration

standards were

once again

accordingly.

updated on

October 1, 2020,

and thus the

hyperlinks in R

460.20606(1) and

(2) should be

updated

accordingly.

13.Date report completed:

10/14/2021

MCL 24.242 and 24.245