You asked for a discussion of the state's jurisdiction over merchant power plants, particularly with regard to oversight of plant safety during construction. You also wanted to know whether other states have a single agency that is responsible for this oversight.

SUMMARY

A merchant power plant is one that is owned by an entity other than an electric utility. Connecticut has had merchant plants for several decades and the 1998 legislation that restructured the electric industry effectively required the electric companies to sell their plants. In contrast, most states either have not adopted restructuring legislation or allowed electric companies to retain their plants.

In Connecticut, a number of state and local agencies have jurisdiction over merchant power plants. Most power plants require a certificate from the Siting Council. The certificate applicant must provide a variety of information regarding the proposed plant's safety. While the council's primary task is to balance the public benefits created by a plant with its environmental impacts, the council considers the plant's consistency with state policies regarding public safety.

The Department of Public Utility Control (DPUC) has jurisdiction over pubic service companies such as electric and gas companies, rather than the companies that own merchant power plants. DPUC does play an oversight role regarding the gas pipelines that serve power plants, although not the piping within a plant. The Department of Public Safety (DPS) is responsible for developing the state building code, which is enforced by local building officials. DPS also has several other specific responsibilities regarding safety at power plants,

In California, the Energy Commission is responsible for siting thermal power plants with a capacity of 50 megwatts or more. The siting process addresses public health and safety as well as environmental issues. The commission is also responsible for ensuring that a plant complies with building and other safety codes during construction, using an on-site contractor. In contrast, in most states, the plant siting function is the responsibility of local governments, typically counties, while in others, such as Massachusetts, the public utility commission is responsible for this function. Approximately ten states, primarily in the south and west, do not have statewide building codes for commercial buildings. In these states local governments are responsible for adopting as well as enforcing building codes. Illinois' statewide code will go into effect in 2011.

Some aspects of the oversight of power plants fall under federal jurisdiction. The Nuclear Regulatory Commission has exclusive jurisdiction over radiological safety at nuclear power plants, whether they are owned by merchant generators or electric companies. The Federal Energy Regulatory Commission regulates rates and other economic aspects of the wholesale electric market, into which merchant power plants sell power. The Occupational Health and Safety Administration has primary jurisdiction over workplace safety in the private sector, although states can adopt additional requirements. In December 2010, the owners of a power plant in Santa Clara closed the plant after an inspection by the California Division of Occupational Health and Safety found that a water heater had substantially overheated.

CONNECTICUT

Siting Council

The Siting Council has jurisdiction over the location of a wide range of energy and telecommunications facilities. Most power plants, regardless of ownership, require a certificate from the council; the exceptions are certain small plants that use renewable resources to generate power or that simultaneously produce power and steam for sale.

A certificate applicant must include a great deal of information in its application. Among other things, the council seeks information on the plant's:

1. fire suppression technology,

2. proximity to municipal fire stations,

3. provisions for detecting leaks of fuels and chemicals from storage areas,

4. provisions for managing hazardous materials and preventing and controlling fuel spills, and

5. safety warning systems.

The applicant must also provide emergency management and evacuation plans.

The council's primary focus is whether a proposed plant's public benefit outweighs its environmental effects. A plant benefits the public if it is needed for the reliability of electric power in the state or for reliability and the development of a competitive market for electricity. Environmental effects are defined broadly, and include such things as the plant's effects on scenic and historic values.

In deciding whether to approve a plant, the council must determine whether the plant conflicts with a wide range of state policies, including those covering public health and safety. In the case of gas and electric transmission lines, but not power plants, the council must find that the facility will not pose an undue hazard to persons or property along the area traversed by the line.

Department of Public Utility Control

DPUC has jurisdiction over pubic service companies such as electric and gas companies rather than the companies that own merchant power plants. Under CGS § 16-1, public service companies do not include “exempt wholesale generators,” the term used under federal law to describe the owners of merchant power plants.

Under the federal Natural Gas Pipeline Act, the U.S. Department of Transportation (DOT) has jurisdiction over interstate and intrastate gas pipelines. DOT has devolved its jurisdiction with regard to intrastate pipelines to DPUC; DOT has also devolved its jurisdiction regarding the design and construction of interstate pipelines, although DOT is responsible for enforcing safety laws once a pipeline goes into operation.

In the case of pipelines serving power plants, DPUC's jurisdiction is limited to that part of the line that is owned by a gas company, typically up to the gas meter. DPUC does not have jurisdiction over the piping in the power plant.

Department of Public Safety

Under CGS § 29-252, the State Building Inspector and the Codes and Standards Committee must, with the approval of the DPS commissioner, adopt and administer a state Building Code based on a nationally recognized model building code. The state code includes safeguards during construction that establish minimum safety requirements during construction or demolition of buildings and other structures. According to Lisa Humble, the state building inspector, these requirements are intended to minimize the risk of injury to the public and adjoining property during construction or demolition. The code does not address worker safety, which is governed by other entities notably, the federal Occupational Safety and Health Administration. But it does mandate that all required exits and fire protection devices be maintained while a building is under construction and that excavations be designed and fenced to protect persons and property. Except for state-owned projects, the code is enforced by local building inspectors.

The Office of the State Fire Marshal within DPS promulgates safety regulations that could affect power plants. The regulations cover such things as using explosives in blasting, the demolition process, the use of cranes and hoisting devices, egress from and fire protection systems within completed facilities, the storage, use and installation of systems that convey or utilize hazardous materials such as gases, flammable and combustible liquids and chemicals. The regulations are enforced by local fire marshals except for state-owned projects.

Elevators installed within power plants fall under the jurisdiction of the Bureau of Elevators in DPS, while boilers owned by entities other than public service companies (utilities regulated by DPUC, as distinct from merchant owners) are regulated by DPS's Bureau of Boilers.

Other State Agencies

The Department of Environmental Protection is responsible for issuing a variety of permits for power plants, including those related to its air emissions and water use and discharge. The Department of Emergency Management and Homeland Security and the State Police as well as local public safety agencies are responsible for responding to major accidents at power plants.

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