20080811Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF bNK--b-ò$-Ð(
FROM: DON HOWELL
DEPUT ATTORNY GENERAL
DATE: AUGUST 4, 2008
SUBJECT: SUSPENSION OF THE COMMISSION'S GAS SERVICE RULE 102,
IDAP A 31.31.01.102
The Staf has received an inquiry from A vista Utilties regarding an apparent conflct
between two Commission rules. The issue was brought to Avista's attention when a Post Falls
City building offcial asked Avista about the utility's procedures for inspecting a customer's
installation of a natural gas appliance. More specifically, the City official was referrng to the
Commission's Gas Service Rule 102, IDAP A 31.31.01.102. This rule provides in pertinent par:
The gas corporation shall inspect the cusomer's installation (of a gas appliance)
before the connection of a meter to ascern that the instalation conforms to the
provisions contaed in the National Fuel Ga Code and the Uniform
Mechancal Code, as adopted by the Commission. I
Gas Rule 102, IDAPA 31.31.01.02 (emphais added). Ths rule has not been amended since the
Commission converted its administrtive rues to the new Idaho Admstrative Procedures Act
numberig system in 1993.
In contrast, the Commssion's Safety Rules 202 and 203 were most recently amended in
2008. IDAPA 31.11.01.202 and 203. The apparent confict arses with subsection .02 of Rules 202
and 203. Safety Rules 202.02 and 203.02 are nearly identical! and read in pertinent par:
02. Utility Compliance. All. gas corporations subject to the jurisdiction of
this Commission are required to abide by applicable provisions of the
i Safety Rule 202 adopts the International Fuel Gas Code of 2006 and Safety Rule 203 adopts the International
Mechanical Code of 2006. The Interational Codes are updated every three years by the International Code
CounciL. The Legislature has adopted the International Mechanical Code and the International Fuel Gas Code in
Idaho Code § 54-5001.
DECISION MEMORANDUM 1
International Mechacal Code (or International Fuel Gas Code) and to
connect for service and light only those intaations that:
a. Have been inspected and approved by authorized agencies; or
b. When inspecting agencies do not exist, to require their customers to abide
by applicable provisions of the International Mechanical Code (or Fuel Gas
Code) as a condition of receiving service or continuing to receive service.
Safety Rules 202.02 and 203.02, IDAPA 31.11.01.202.02 and 203.02 (emphasis added).
Briefly, the inconsistency concerns the requirement in Gas Service Rule 102 that
utilities "shall inpect" the instaation of gas appliances before providing service. In 2004, the
Commission's Safety Rule 203 "underwent a major revision involving two components. First, the
Commission adopted the "International Mechacal Code" and "International Fuel Gas Code"
which superseded the Uniform Mechanical Code and National Fuel Gas Code, respectively. See
Idaho Code § 54-5001 (2004 Idao Sess. Laws, ch. 272, § 5 (adopting the International Codes).
Second, and more specifically, the new International Codes no longer require a gas utility to
inspect the installation of gas appliances. As the Commission explained in its 2004 Notice that
adopted the International Mechanical Code and International Fuel Gas Code, the International
Codes establish a new regulatory framework that was also adopted by the Idaho Legislature.
Idaho Code § 54-5016 requires that any installation of a gas appliance be accomplished pursuant
to the issuace of a permit. In addition, Idaho Code §§ 54-5001 and 54-5018 require an
inspection for each permit.
The curent regulatory practice is for locaI jursdictions that have adopted the
International Codes to issue permits and conduct subsequent inspections. For other pars of the
State that do not have inspection agencies, then the Division of Building Safety issues permits
and performs the inspections. IDAP A 07.07.01.2 In addition, the instalation of gas appliances is
generally required to be performed by a licensed HV AC installer and the license holder is
required to comply with the Intèrnationa Mechaical Code. Thus, gas utilities are no longer
required to inspect the instalation of gas appliances - inspections are the responsibilty of other
entities. Consistent with the applicable International Codes, Safety Rules 202.02.b. and
203.02.b. simply compel utilities to "require their customer to abide by applicable provisions of
2 Idaho Code § 54-5002 does list certin exemptions but even if exempted, the installation "shaH comply with" the
applicable International Codes.
DECISION MEMORADUM 2
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the International Mechanical (and Fuel Gas) Code ( s) as a condition of receiving or continuing to
receive service." IDAPA 31.l 1.01.202.02.b. and 31.1 1.01.203.02.b.
STAFF RECOMMENDATION
Returng to Gas Servce Rule 102, it is Staffs belief that this rule is incompatible
with the Commission's Safety Rules 202.02 and 203.02. Gas Rule 102 adopts superseded Codes
and compels utilties to perform actions that are no longer required under the International
Codes. Consequently, Staf recommends that the Commission on its own motion suspend Gas
Service Rule 102 as it pertins to the three gas utilities in Idaho (Intermountain Gas, A vista
Utilties, and Questar). Staf also proposes that it meet informally with representatives of the gas
utilties and other interested persons to review all the Gas Service Rules, IDAPA 31.31.0 l. The
informal rule review could be the basis for a negotiated rulemaking to update the Commission's
Gas Service Rules next year.
COMMISSION DECISION
1. Based upon your review and the Stafs recommendation, does the Commission
wish to suspend its Gas Service Rule 102, IDAPA 31.31.01.102?
2. Should the Staff initiate an informal review of the Gas Service Rules with utilties
and other interested paries?
l)~
Don Howell
Deputy Attorney General
blsI:Gas Service Rules_dh
DECISION MEMORANDUM 3