BILL NUMBER: AB 578 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 30, 2012
AMENDED IN SENATE MAY 8, 2012
AMENDED IN ASSEMBLY JANUARY 12, 2012
AMENDED IN ASSEMBLY JANUARY 4, 2012
INTRODUCED BY Assembly Member Hill
FEBRUARY 16, 2011
An act to add Section 960 to the Public Utilities Code, relating
to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 578, as amended, Hill. Public utilities: natural gas pipelines:
safety.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. The Public Utilities Act authorizes
the commission to ascertain and fix just and reasonable standards,
classifications, regulations, practices, measurements, or services to
be furnished, imposed, observed, and followed by specified public
utilities, including gas corporations. Existing law authorizes the
commission to fix the rates and charges for every public utility, and
requires that those rates and charges be just and reasonable. The
Natural Gas Pipeline Safety Act of 2011 designates the commission as
the state authority responsible for regulating and enforcing
intrastate gas pipeline transportation and pipeline facilities
pursuant to federal law, including the development, submission, and
administration of a state pipeline safety program certification for
natural gas pipelines.
If a safety recommendation is made in a published pipeline
accident report, pipeline accident brief, safety study, or safety
recommendation letter, by the federal National Transportation Safety
Board (NTSB) on or after January 1, 2012, this bill would require the
commission to determine if implementation of the recommendation is
appropriate. This bill would require the commission to implement, as
soon as is practicable, any natural gas pipeline safety
recommendation that it determines to be appropriate. The bill would
require the commission, in implementing the safety recommendation, to
consider whether a more effective, or equally effective and less
costly, alternative exists to address the safety issue that the
recommendation addresses. The bill would require that, if the
commission determines that implementation of a safety recommendation
is not appropriate, the reason or reasons be detailed in writing and
be approved by a majority vote of the commission. The bill would
require the commission to include a detailed description of any
action taken on an NTSB safety recommendation in a specified annual
report the commission is required to make to the Legislature. The
bill would require the commission to determine whether costs incurred
for implementation of the requirements of this section are
reasonably and prudently incurred and to authorize recovery in rates
for those costs that are reasonably and prudently incurred. The bill
would prohibit the commission from authorizing the recovery of
expenses that would have been avoided if the utility had been in
compliance with then-existing state or federal requirements.
When the federal National Transportation Safety Board (NTSB)
submits a safety recommendation letter concerning gas pipeline safety
to the commission, this bill would require the commission, within 90
days, to provide the NTSB with a formal written response to each
recommendation stating: (1) the commission's intent to implement the
recommendations in full, with a proposed timetable for implementation
of the recommendations, (2) the commission's intent to implement
part of the recommendations, with a proposed timetable for
implementation of those recommendations, and detailed reasons for the
commission's refusal to implement those recommendations that the
commission does not intend to implement, or (3) the commission's
refusal to implement the recommendations, with detailed reasons for
the commission's refusal to implement the recommendations. When the
NTSB issues a safety recommendation letter concerning any
commission-regulated gas pipeline facility to the United States
Department of Transportation, the federal Pipeline and Hazardous
Materials Safety Administration (PHMSA), a gas corporation, or to the
commission, or the PHMSA issues an advisory bulletin concerning any
commission-regulated gas pipeline facility, the bill would require
the commission to determine if implementation of the recommendation
or advisory is appropriate and further require that the basis for the
commission's determination be detailed in writing and be approved by
a majority vote of the commission. If the commission determines that
a safety recommendation made by the NTSB is appropriate or that
action concerning an advisory bulletin by the PHMSA is necessary, the
bill would require that the commission issue orders or adopt rules
to implement the safety recommendations or advisory as soon as
practical and to consider whether a more effective, or equally
effective and less costly, alternative exists to address the safety
issue that the recommendation or advisory addresses. The bill would
require the commission to include a detailed description of any
action taken on an NTSB safety recommendation, or to implement an
advisory bulletin, in a specified annual report the commission is
required to make to the Legislature.
Under existing law, a violation of any order, decision, rule,
direction, demand, or requirement of the commission is a crime.
Because this bill would require the commission to issue orders or
adopt rules to implement any safety recommendation by the NTSB
relative to natural gas pipeline safety that the commission
determines to be appropriate and a violation of these orders or rules
would be a crime, this bill would impose a state-mandated local
program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 960 is added to the Public Utilities Code, to
read:
960. (a) Beginning January 1, 2012, if
When the federal National Transportation Safety Board (NTSB)
makes submits a safety recommendation
or multiple recommendations relative to natural gas pipeline
safety as part of a published pipeline accident report, pipeline
accident brief, safety study, or safety recommendation letter, the
commission shall determine if implementation of the recommendation is
appropriate. letter concerning gas pipeline safety to
the commission, the commission shall provide the NTSB with a formal
written response to eac h recommendation not later than 90
days after receiving the letter. The response shall state one of the
following:
(1) The commission's intent to implement the recommendations in
full, with a proposed timetable for implementation of the
recommendations.
(2) The commission's intent to implement part of the
recommendations, with a proposed timetable for implementation of
those recommendations, and detailed reasons for the commission's
refusal to implement those recommendations that the commission does
not intend to implement.
(3) The commission's refusal to implement the recommendations,
with detailed reasons for the commission's refusal to implement the
recommendations.
(b) If the commission determines that implementation of a
safety recommendation is not appropriate, the reason or reasons
NTSB issues a safety recommendation letter concerning
any commission-regulated gas pipeline facility to the
United States Department of Transportation, the federal Pipeline and
Hazardous Materials Safety Administration (PHMSA), a gas corporation,
or to the commission, or the PHMSA issues an advisory bulletin
concerning any commission-regulated gas pipeline facility, the co
mmission shall determine if implementation of the
recommendation or advisory is appropriate. The basis for the
commission's determination shall be detailed in writing and
shall be approved by a majority vote of the commission.
(c) If the commission determines that a safety recommendation made
by the NTSB is appropriate or that action concerning an
advisory bulletin is necessary , the commission shall issue
orders or adopt rules to implement the safety recommendations or
advisory as soon as practicable. In implementing the safety
recommendation or advisory , the commission shall consider
whether a more effective, or equally effective and less costly,
alternative exists to address the safety issue that the
recommendation or advisory addresses.
(d) Any action taken by the commission on a safety
recommendation made by the NTSB in a published pipeline accident
report, pipeline accident brief, safety study, or safety
recommendation letter or advisory bulletin shall be
reported annually, in detail, to the Legislature with the report
required by Section 321.6.
(e) The commission shall determine whether costs incurred for
implementation of the requirements of this section are reasonably and
prudently incurred and authorize recovery in rates for those costs
that are reasonably and prudently incurred. The commission shall not
authorize recovery of those expenses that would have been avoided if
the utility had been in compliance with then-existing state or
federal requirements.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.