BILL NUMBER: AB 2564	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 13, 2012
	AMENDED IN ASSEMBLY  AUGUST 7, 2012
	AMENDED IN ASSEMBLY  JUNE 26, 2012
	AMENDED IN ASSEMBLY  JUNE 12, 2012
	AMENDED IN ASSEMBLY  APRIL 25, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Ma

                        FEBRUARY 24, 2012

   An act to amend  Section   Sections 21080.21
and  21100.2 of  , and to add and repeal Section
21080.21.5 of,  the Public Resources Code, relating to
environmental quality, and declaring the urgency thereof, to take
effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2564, as amended, Ma. Environmental quality: pipelines: project
applicants.
   (1) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and
certify the completion of, an environmental impact report (EIR) on a
project that it proposes to carry out or approve that may have a
significant effect on the environment or to adopt a negative
declaration if it finds that the project will not have that effect.
CEQA exempts a project of less than one mile in length within a
public street or highway or any other public right-of-way for the
installation of a new pipeline, as defined, or the maintenance,
repair, restoration, reconditioning, relocation, replacement,
removal, or demolition of an existing pipeline.
   This bill would  additionally except from CEQA a natural
gas pipeline safety enhancement project, as defined, that meets
specified requirements. The bill would require a person undertaking
such a project to take certain actions with regard to the
notification of public agencies and compliance with other permits and
statutes. The bill would repeal this exemption on January 1, 2017
  revise that exemption to specify that if the pipeline
is used or useful in the transmission or distribution of natural gas,
the pipeline subject to that exemption may include other accessories
or appurtenances. The bill would impose a state-mandated local
program by imposing new duties upon local agencies with regard to
this exemption. The bill would require a resource agency, as defined,
when determining the applicability of this exemption with regard to
a natural gas pipeline safety enhancement activity, as defined, to
consider only the length of pipeline that is within its legal
jurisdiction  .  The bill would impose a state-mandated
local program by imposing new duties upon a local agency that is a
resource agency regarding the applicability of this exemption
regarding natural gas pipeline safety enhancement activity. 
   The bill would  also require   authorize
 a public agency to establish a process that would allow an
applicant for a natural gas pipeline safety enhancement 
project   activity  to elect to pay additional fees
to be used by the public agency in determining whether to approve
that  project   activity  by entering into
a contract with one or more 3rd parties to assist the public agency
to perform the analysis.  The bill would impose a
state-mandated local program by imposing new duties upon local
agencies. 
   (2) 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.
   (3) This bill would declare that it is to take effect immediately
as an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) On September 9, 2010, a 30-inch-diameter segment of an
intrastate natural gas transmission pipeline ruptured in a
residential neighborhood in the City of San Bruno. The rupture caused
an explosion and fire devastating a community and igniting a call to
action.
    (b) On January 2, 2011, the Public Utilities Commission
(PUC) ordered Pacific Gas and Electric (PG&E), Southern California
Gas (SoCalGas), San Diego Gas and Electric (SDG&E), and Southwest Gas
to perform a comprehensive records review of their transmission
pipelines and identify those that have not had their maximum
allowable operating pressure established by pressure testing.

    (c) Federal law exempts from pressure test requirements
pipelines placed in service prior to 1970. The National
Transportation Safety Board, who has principle jurisdiction over the
investigation into San Bruno, concluded that there is no safety
justification for the grandfather clause exempting pre1970 pipelines
from the requirement for postconstruction hydrostatic pressure
testing. 
    (d) 
    (b)    Pursuant to PUC order and Section 958 of
the Public Utilities Code, enacted by Assembly Bill 56 (Chapter 519
 ,  of the  Statutes of 2011), gas
corporations are required to prepare comprehensive pressure testing
implementation plans to pressure test or replace all intrastate
natural gas transmission pipelines as soon as practicable.
    (e) 
    (c)  The scope of work to be accomplished within the
implementation plans is unprecedented and will create thousands of
jobs within the state.
    (f) 
    (d)  The safe and expeditious completion of these
pipeline safety enhancements is a state and public safety priority.

   (g) 
    (e)  It is a matter of statewide concern to achieve the
timely completion of natural gas pipeline safety enhancements,
including programs for maintenance and operation enhancements, and to
contribute to the public's confidence in the safety of natural gas
pipelines and their ongoing maintenance and operation. 
    (h) It is in the public interest to accelerate the permitting
process for natural gas pipeline safety enhancements, including
programs for maintenance and operation enhancements, and for
permitting agencies to give these projects priority in processing
permits.  
   (i) It is in the public interest to enable state agencies to
better carry out their permitting responsibilities by providing
applicants an option for enhancing available resources for permit
processing.  
  SEC. 2.    Section 21080.21.5 is added to the
Public Resources Code, to read:
   21080.21.5.  (a) For purposes of this section, the following
definitions shall apply:
   (1) "Natural gas pipeline safety enhancement project" means an
activity for the installation of a new pipeline or the maintenance,
repair, restoration, reconditioning, relocation, replacement,
removal, or demolition of an existing pipeline undertaken by a public
utility as part of a program to enhance the safety of intrastate
natural gas pipelines, in accordance with a decision, rule, or
regulation adopted by the Public Utilities Commission.
   (2) "Pipeline" includes any valve, flange, meter, or other piece
of equipment that is directly attached to a pipeline.
   (b) This division does not apply to a natural gas pipeline safety
enhancement project if the project meets all of the following
requirements:
   (1) The project is less than eight miles in length.
   (2) The project is within a public street or highway or other
public right-of-way.
   (3) The right-of-way is restored to its condition prior to the
project.
   (4) Construction activity does not take place along more than one
mile at any one time.
   (5) The project is not located in a resource area, as defined in
Section 65080.01 of the Government Code.
   (c) A person undertaking a natural gas pipeline safety enhancement
project pursuant to this section shall do both of the following:
   (1) Provide written notification of the exemption of the project
from this division to any public agency that has discretionary permit
and land use authority, no later than 10 days prior to undertaking
the project, and thereafter proceed to secure all appropriate
ministerial permits from the public agency.
   (2) Comply with all conditions otherwise authorized by law or
imposed by any state agency as part of any permit process and
otherwise comply with the California Endangered Species Act (Chapter
1.5 (commencing with Section 2050) of Division 3 of the Fish and Game
Code), the California Coastal Act of 1976 (Division 20 (commencing
with Section 30000)), and other applicable state and federal laws.
   (d) A project shall not be divided into smaller projects to
qualify for one or more exemptions pursuant to this section.
   (e) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date. 
   SEC. 2.    Section 21080.21 of the   Public
Resources Code   is amended to read: 
   21080.21.   (a)    This division does not apply
to any project of less than one mile in length within a public street
or highway or any other public right-of-way for the installation of
a new pipeline or the maintenance, repair, restoration,
reconditioning, relocation, replacement, removal, or demolition of an
existing pipeline.  For 
    (b)     For  purposes of this section,
"pipeline"  includes   means  subsurface
 facilities but does not include any surface facility related
to the operation of the underground facility  
pipelines and subsurface or surface accessories or appurtenances to a
pipeline, such as mains, traps, vents, cables, conduits, vaults,
valves, flanges, manholes, and meters  .
    (c)     In determining the applicability of
the exemption provided by this section to a natural gas pipeline
safety enhancement   activity under review by a resource
agency, the resource agency shall consider only the length of
pipeline that is within its legal jurisdiction.  
   (d) For purposes of this section, the following definitions shall
apply:  
   (1) "Natural gas pipeline safety enhancement activity" means an
activity undertaken by a public utility as part of a program to
enhance the safety of intrastate natural gas pipelines in accordance
with a decision, rule, or regulation adopted by the Public Utilities
Commission.  
   (2) "Resource agency" means the State Lands Commission, California
Coastal Commission, Department of Fish and Game, or State Water
Resources Control Board, and local or regional agencies with
permitting authority under the California Coastal Act of 1976
(Division 20 (commencing with Section 30000)) or Chapter 4
(commencing with Section 13200) of Division 7 of the Water Code.

  SEC. 3.  Section 21100.2 of the Public Resources Code is amended to
read:
   21100.2.  (a) (1) For projects described in subdivision (c) of
Section 21065, each state agency shall establish, by resolution or
order, time limits that do not exceed the following:
   (A) One year for completing and certifying environmental impact
reports.
   (B) One hundred eighty days for completing and adopting negative
declarations.
   (2) The time limits specified in paragraph (1) shall apply only to
those circumstances in which the state agency is the lead agency for
a project. These resolutions or orders may establish different time
limits for different types or classes of projects, but all limits
shall be measured from the date on which an application requesting
approval of the project is received and accepted as complete by the
state agency.
   (3) No application for a project may be deemed incomplete for lack
of a waiver of time periods prescribed in state regulations.
   (4) The resolutions or orders required by this section may provide
for a reasonable extension of the time period in the event that
compelling circumstances justify additional time and the project
applicant consents thereto.
   (b) If a draft environmental impact report, environmental impact
report, or focused environmental impact report is prepared under a
contract to a state agency, the contract shall be executed within 45
days from the date on which the state agency sends a notice of
preparation pursuant to Section 21080.4. The state agency may take
longer to execute the contract if the project applicant and the state
agency mutually agree to an extension of the time limit provided by
this subdivision.
   (c) (1) A public agency  shall   may 
establish a process that would allow an applicant for a natural gas
pipeline safety enhancement  project   activity
 to elect to pay additional fees to be used by the public agency
in determining whether to approve a natural gas pipeline safety
enhancement  project  activity  by entering
into a contract with one or more third parties to assist the public
agency to perform the analysis, consistent with Article VII of the
California Constitution and Section 19130 of the Government Code and
the charter of a chartered city or county, as applicable. The public
agency may, but is not required to, offer  a project
  an  applicant the option to pay those fees and
subject a project to this process.
   (2) The amount of the fees charged by the public agency pursuant
to this subdivision shall be conditioned upon the natural gas
pipeline safety enhancement  project   activity
 applicant agreeing to that amount and electing to proceed with
the retention of a third party pursuant to this subdivision.
   (3) All fees paid by a natural gas pipeline safety enhancement
 project   activity  applicant shall be
used exclusively for analysis of that applicant's application for
certification.
   (4) For purposes of this section, "natural gas pipeline safety
enhancement  project"   activity"  has the
same meaning as defined in paragraph (1) of subdivision  (a)
of Section 21080.21.5   (d) of Section 21080.21  .
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
  SEC. 5.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to achieve the timely completion of natural gas pipeline
safety enhancements, including programs for maintenance and operation
enhancements, and to contribute to the public's confidence in the
safety of natural gas pipelines and their ongoing maintenance and
operation, thereby protecting public health and safety, it is
necessary for this act to take effect immediately.