BILL ANALYSIS Ó
AB 2559
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Date of Hearing: May 9, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2559 (Buchanan) - As Amended: April 17, 2012
Policy Committee:
UtilitiesVote:13-0
Local Government 9-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill requires local government entities to expedite
permitting for certain pipeline work by gas utilities.
Specifically, this bill:
1)Requires the Public Utilities Commission (PUC) to ensure a
local agency is provided notice by a gas utility whenever a
pipeline integrity management plan may involve pipeline
inspection, remediation, or replacement work within agency's
jurisdiction and will require the agency's approval of the
work.
2)Defines "pipeline integrity management plan" as a program
prepared by a gas utility to comply with federal pipeline
safety requirements.
3)Requires the local agency that, upon receiving a notice per
(1), cannot issue a permit within 10 business days, to provide
a written explanation to the gas utility seeking the permit
along with a timeline for issuing the permit.
4)Prohibits a local entity from imposing permit requirements
exceeding the scope of a proposed pipeline project unless
necessary for public safety.
FISCAL EFFECT
1)Minor absorbable cost for the PUC to issue the required order
to gas corporations regarding notification to local entities
concerning gas pipeline projects.
AB 2559
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2)Expediting permits for gas pipeline projects may require local
agencies to adjust workload. Nevertheless, any additional
costs to local agencies for this work are recoverable through
permit fees. There will be, however, likely minor reimbursable
costs associated with providing written notification to
utility companies if a permit cannot be processed within 10
business days.
COMMENTS
Purpose . Following the San Bruno gas explosion in September
2010, the PUC established an Independent Review Panel to make
recommendations to the commission for improved safety management
of the state's natural gas systems. The panel issued its report
in June 2011, and one recommendation was to enact legislation to
provide gas utilities with a right to expedited permitting for
pipeline work.
Pipeline integrity management plans are currently required of
operators of gas transmission pipelines in order for the
utilities to assess and address potential pipeline problems. The
state's main gas operators have submitted Pipeline Safety
Enhancement Plans proposing a total of 815 miles of pressure
testing and 391 miles of pipe replacement for 2012-14. AB 2559
is intended to help facilitate this work by providing gas
utilities with expedited permitting by cities and counties.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081