BILL ANALYSIS Ó
AB 1694
Page 1
Date of Hearing: May 2, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1694 (Fuentes) - As Amended: April 25, 2012
Policy Committee:
UtilitiesVote:14-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Public Utilities Commission (PUC) to
adopt a risk-based approach regarding inspections of
master-metered natural gas and propane distribution systems in
mobilehome parks and, for those operators who demonstrate
compliance with an initial inspection, to subsequently inspect
those systems at least once every seven years.
FISCAL EFFECT
No direct state costs. Adoption of a risk-based approach to
inspection should allow the PUC to deploy existing resources
more efficiently.
COMMENTS
1)Purpose . There are about 3,500 mobilehome master-metered
natural gas systems and 600 propane systems across the state.
In September 2010, the PUC formed its own Independent Review
Panel to investigate the September 9, 2010 explosion of a PG&E
pipeline in San Bruno. In June 2011, the panel's report
recommended in part that the PUC pursue legislation to replace
the mandatory minimum audit requirements, described above,
with a risk-based regime that would provide the commission's
Consumer Protection and Safety Division (CPSD) with
flexibility in allocating inspection resources in order to
focus on parks deemed the highest priority for inspection.
2)Current Law . For natural gas systems in mobilehome parks,
current law requires subsequent inspections once every five
years for those operators who demonstrate compliance with the
AB 1694
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initial inspection. For propane distribution systems,
subsequent inspections are required once every five years for
systems with less than 100 customers, once every three years
for systems with 100 or more but less than 200 customers, and
once every two years for systems with 200 or more customers.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081