BILL ANALYSIS Ó
AB 578
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 578 (Hill)
As Amended May 30, 2012
Majority vote
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|ASSEMBLY: |57-19|(January 30, |SENATE: |37-0 |(August 27, |
| | |2012) | | |2012) |
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Original Committee Reference: U. & C.
SUMMARY : Requires the California Public Utilities Commission
(PUC) to implement the recommendations of the National
Transportation Safety Board (NTSB) regarding natural gas
pipeline safety.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Require the PUC to provide the NTSB with a formal written
response to each recommendation not later than 90 days after
receiving the letter.
2)Specify the PUC letter shall state one of the following:
a) The PUC's intent to implement the recommendations in
full, with a proposed timetable for implementation of
recommendations.
b) The PUC's intent to implement part of the
recommendations with a proposed timetable for
implementation, and details for refusal to implement those
recommendations that the PUC does not intend to implement.
3)States that if NTSB issues a safety recommendation letter
concerning any PUC regulated gas pipeline facility to a
specified government entity, the PUC shall determine if
implementation of the recommendation or advisory is
appropriate. The basis shall be detailed in writing and shall
be approved by a majority vote of the PUC.
4)States that if the PUC determines that a safety recommendation
made by the NTSB is appropriate, the PUC shall issue orders to
adopt rules to implement the safety recommendations or
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advisory as soon as practicable.
5)States PUC shall report any action taken pursuant to a NTSB
letter or advisory bulletin shall be reported annually to the
Legislature.
AS PASSED BY THE ASSEMBLY , the provisions in this bill were
permissive for the PUC to implement NTSB recommendations.
FISCAL EFFECT : According to the Senate Appropriations
Committee, on-going costs of $130,000 annually from the PUC
Reimbursement Account, beginning in 2013-14 for staff to respond
to NTSB safety recommendations and the U.S. Department of
Transportation Pipeline and Hazardous Materials Safety
Administration (PHMSA) advisory bulletins.
COMMENTS : According to the author, "recent natural gas pipeline
accidents in California have received attention throughout the
country. The most visible was that in San Bruno in late 2010,
but natural gas accidents in Cupertino and Roseville at the end
of last year highlight exactly how pervasive our problems are.
These problems, however, are not new, have been documented, and
could have been mitigated for more than a decade had our state
regulatory paid closer attention to them and required utilities
to follow the prescribed solutions."
NTSB safety recommendations: In response to the San Bruno
explosion, last year NTSB
issued recommendations to the U.S. Secretary of Transportation,
the U.S. Department of Transportation (PHMSA), the Governor of
the State of California, PUC, Pacific Gas & Electric Company
(PG&E), and the American Gas Association and the Interstate
Natural Gas Association of America.
PUC actions to date have been consistent with the preliminary
and final recommendations of NTSB. PUC instituted Rulemaking
11-02-019 to examine regulatory changes and other actions that
PUC regulated gas transmission operators PG&E, Southern
California Gas Company (SoCalGas), San Diego Gas & Electric
Company (SDG&E), and Southwest Gas Corporation (SWGC) needed to
take to improve the safety of their systems. In addition, PUC
has taken action to reform its own regulatory oversight
function. For example, PUC has appointed an Independent Review
Panel to look at both PG&E and PUC actions leading up to San
Bruno. The Independent Review Panel's report was critical of
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both PG&E and PUC.
According to a recent press release, PG&E reports their progress
on fulfilling NTSB recommendations - some of which have already
been completed. These include: verification of maximum
allowable operation pressure on 1,600 miles of pipelines;
updated their emergency response plans; implemented a data
management system to ensure that PG&E records are traceable,
verifiable and complete; notifications provided to customers
living within 2,000 feet of a transmission pipeline;
installation of automated valves; and, the filing of their
Pipeline Safety Enhancement Plan which details planned
improvements over the next few years.
Belts and suspenders : A previous version of this bill
authorized the PUC to use its discretion when determining
whether to implement future NTSB safety recommendations. The
latest amendments mandate the PUC to formally respond in writing
to the NTSB with its intent to implement the recommendations, in
full, in part, or not all, within 90 days. These provisions
increase transparency within the PUC's safety division and
ensure that state pipeline safety standards are being updated
when recommendations are submitted by NTSB.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
FN: 0005095