BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 605
                                                                  Page  1

          Date of Hearing:   July 15, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    SB 605 (Ashburn) - As Amended:  May 04, 2009 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill expands existing exemptions to review under the  
          California Environmental Quality Act (CEQA) for certain work on  
          existing pipelines to include a "biogas" pipeline located in  
          Fresno, Kern, Kings, or Tulare counties.  Specifically, this  
          bill:

          1)Expands the exemption described above to include a pipeline  
            located in the counties of Fresno, Kern, Kings, or Tulare that  
            is used to transport "biogas" derived from anaerobic digestion  
            of dairy animal waste and meets compressed natural gas  
            specifications adopted by the Air Resources Board.

          2)Sunsets January 1, 2013.

           FISCAL EFFECT  

          Negligible state costs.

           COMMENTS  

           1)Rationale  .  The author states that collection of biogas  
            produced at dairy operations is an emerging method that can  
            reduce emissions of methane, a greenhouse gas (GHG).  The  
            author claims that projects to allow transport of this biogas  
            to natural gas distribution facilities are often delayed by  
            long and expensive CEQA reviews.  The author contends that  
            extending existing CEQA exemptions for certain pipeline  
            project to biogas pipeline projects will facilitate the  
            capture and use of biogas as an energy source. 









                                                                  SB 605
                                                                  Page  2

          2)  Background  .  CEQA requires the principal public agency with  
            responsibility for carrying out or approving a proposed  
            project-known as the lead agency- to prepare a negative  
            declaration, mitigated negative declaration, or environmental  
            impact report for the action, unless the project is exempt  
            from CEQA.  Existing law exempts from CEQA a pipeline project  
            consisting of inspection, maintenance, repair, restoration,  
            reconditioning, relocation, replacement, or removal of an  
            existing intrastate liquid pipeline subject to the Pipeline  
            Safety Act, subject to specified conditions, including:

             a)   The project is less than eight miles in length.

             b)   Construction and excavation activities are not  
               undertaken over more than one half mile at a time.

             c)   The section of pipeline is not less than eight miles  
               from any section that has received an exemption in the past  
               12 months.

             d)   Project activities are undertaken within an existing  
               right-of-way and the right-of-way is restored to its  
               pre-project condition.

             e)   The diameter of the pipeline is not increased.

           3)The Benefits of Biogas Do No End At the County Line  .  The  
            author contends that biogas collected from dairies reduces  
            emission of GHGs and provides a source of energy.  The author  
            points to those benefits, along with the presumed minor  
            environmental effects of the biogas pipeline projects, to  
            justify extending the CEQA pipeline exemption to them.   
            Presumably, those benefits hold true wherever biogas is  
            collected and used, not just in Fresno, Kern, Kings, or Tulare  
            counties.  It is therefore unclear why the bill should provide  
            a CEQA exemption to biogas pipeline projects only in those  
            four counties, rather than statewide.

           4)Support  .  The only registered support to this bill is the Kern  
            County Board of Supervisors.  There is no registered  
            opposition to the bill.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081