Certificate of Public Convenience and Necessity; Requirements

  1. Law
  2. Georgia Code
  3. Eminent Domain
  4. Exercise of Power of Eminent Domain for Special Purposes
  5. Construction and Operation of Petroleum Pipelines
  6. Certificate of Public Convenience and Necessity; Requirements

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  1. On or after July 1, 2017, a petroleum pipeline company desiring to use the power of eminent domain granted under this article to acquire property for a new petroleum pipeline or an extension shall be required to obtain a certificate of public convenience and necessity from the commissioner of transportation as provided in this Code section.
  2. Any application for a certificate of public convenience and necessity shall contain, at a minimum:
    1. A description of the proposed project together with its siting information, including, but not limited to, a map showing the proposed location of the route of the new petroleum pipeline or of the proposed extension;
    2. A description of the public convenience and necessity that support the proposed location of the route of the new petroleum pipeline or of the proposed extension;
    3. The width of the proposed petroleum pipeline corridor up to a maximum width of one-third mile;
    4. A showing that the use of the power of eminent domain may be necessary for construction of the new petroleum pipeline or for the proposed extension;
    5. A showing that the public convenience and necessity for the petroleum pipeline justifies the use of the power of eminent domain; and
    6. Any other information that the Department of Transportation may require by rules and regulations.
  3. Within ten days of applying for a certificate of public convenience and necessity, the applicant shall provide:
    1. Public notice in the legal organ of each county through which the proposed route of the new petroleum pipeline or of the extension is to be located; and
    2. Written notice of the filing of an application under this Code section to all landowners whose property is located within the proposed route of the new petroleum pipeline or of the extension. Such notice shall be delivered to each landowner and contain the following language in boldface type:

      "YOUR PROPERTY IS LOCATED WITHIN THE PROPOSED ROUTE OF A PETROLEUM PIPELINE FOR WHICH AN APPLICATION FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY HAS BEEN FILED PURSUANT TO ARTICLE 4 OF CHAPTER 3 OF TITLE 22 OF THE OFFICIAL CODE OF GEORGIA ANNOTATED. SAID ARTICLE ALONG WITH CHAPTER 17 OF TITLE 12 OF THE OFFICIAL CODE OF GEORGIA ANNOTATED PROVIDE SPECIFIC REQUIREMENTS WHICH MUST BE FOLLOWED BY PETROLEUM PIPELINE COMPANIES BEFORE THEY MAY BUILD A NEW PETROLEUM PIPELINE OR MODIFY AN EXISTING PETROLEUM PIPELINE. THESE PROVISIONS OF THE OFFICIAL CODE OF GEORGIA ANNOTATED ALSO PROVIDE SPECIFIC RIGHTS FOR YOUR PROTECTION. YOU SHOULD FAMILIARIZE YOURSELF WITH THOSE REQUIREMENTS AND YOUR RIGHTS."

    1. In making a decision as to whether to grant a certificate of public convenience and necessity, the commissioner of transportation shall consider the following:
      1. Whether existing petroleum pipelines or distribution systems are adequate to meet the reasonable public needs;
      2. The volume of demand for such petroleum, and whether such demand and that reasonably to be anticipated in the future can support already existing petroleum pipelines and distribution systems, if any, and also the petroleum pipeline or distribution system proposed by the applicant;
      3. The financial ability of the applicant to furnish adequate continuous service and to meet the financial obligations of the service which the applicant proposes to perform;
      4. The adequacy of the supply of petroleum to serve the public;
      5. The economic feasibility of the petroleum pipeline or distribution system and the propriety of the engineering and contracting fees, the expenses, and the financing charges and costs connected with the petroleum pipeline or distribution system; and
      6. The effect on existing revenues and service of other petroleum pipelines or distribution systems, and particularly whether the granting of such certificate of public convenience and necessity will or may seriously impair existing public service.
    2. This subsection shall not be construed as exhaustively describing all factors which the commissioner of transportation may consider in his or her decision to grant or deny a certificate of public convenience and necessity.
  5. The applicant shall bear the burden of proof to demonstrate that the commissioner of transportation should issue a certificate of public convenience and necessity as provided under this Code section. The decision to issue or deny a certificate of public convenience and necessity shall be based on the record before the commissioner of transportation, which shall include, but not be limited to, the applicant's submissions, any documents submitted to the Department of Transportation pursuant to subsection (d) of this Code section, and research the commissioner of transportation may conduct in analyzing the application.
  6. The issuance or denial of a certificate of public convenience and necessity may be reviewed by a judge of the superior court of the county in which the pipeline company has an agent and place of doing business. The review shall be by petition filed within 30 days of the date of approval or disapproval of the application and shall be determined on the basis of the record before the commissioner of transportation. The action of the commissioner of transportation shall be affirmed if supported by substantial evidence.
    1. No later than July 1, 2018, the Department of Transportation shall, pursuant to Chapter 13 of Title 50, the "Georgia Administrative Procedure Act," promulgate such rules and regulations as are necessary and reasonable for purposes of enforcement of this Code section, which shall include, but may not be limited to:
      1. The submission of an application for a certificate of public convenience and necessity and provisions for the application review process, not to exceed 120 days in length;
      2. Provisions for a nonrefundable application fee which shall be sufficient to defray the administrative costs of review of the application by the Department of Transportation;
      3. Reasonable public notice of the filing of an application for a certificate of public convenience and necessity to a landowner who, after reasonable efforts, cannot personally be given the notice required in subsection (c) of this Code section; and
      4. Provisions for public meetings to be held prior to any action on any certificates of public convenience and necessity.
    2. No certificate of public convenience and necessity shall be granted by the commissioner of transportation prior to the promulgation of rules and regulations as provided for in this subsection; provided, however, that once such rules and regulations have been promulgated and applications are accepted for filing, if any application is not approved or is denied within 120 days of the date such application is filed with the Department of Transportation under this Code section, the application shall be deemed to be approved by operation of law.

(Code 1981, §22-3-83, enacted by Ga. L. 2017, p. 744, § 2/HB 413; Ga. L. 2017, p. 774, § 22/HB 323.)

Editor's notes.

- Ga. L. 2017, p. 774, § 54(e)/HB 323, not codified by the General Assembly, provides: "In the event of a conflict between a provision in Sections 1 through 53 of this Act and a provision of another Act enacted at the 2017 regular session of the General Assembly, the provision of such other Act shall control over the conflicting provision in Sections 1 through 53 of this Act to the extent of the conflict." Accordingly, the amendment to paragraph (a)(2) of this Code section by Ga. L. 2017, p. 774, § 22(2)/HB 323, was not given effect.


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