BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 44 (Corbett) Hearing Date: 05/26/2011 Amended: 04/25/2011 Consultant: Brendan McCarthy Policy Vote: EU&C 11-0 _________________________________________________________________ ____ BILL SUMMARY: SB 44 requires the Public Utilities Commission to establish emergency response standards that operators of natural gas transmission and distribution lines must follow. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Development of standards $225 Special * * Public Utilities Commission Utilities Reimbursement Account. _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. Federal law and general orders of the Public Utilities Commission require the Commission to regulate natural gas transmission, distribution, and other pipelines. Operators of natural gas pipelines are required to develop emergency response plans. Federal law also requires pipeline operators to provide information to the federal Department of Transportation on the location of gas pipelines. While federal law and Commission orders generally give the Commission oversight responsibility for natural gas pipelines, the scope of this oversight is ambiguous. SB 44 explicitly grants the Public Utilities Commission the responsibility to regulate intrastate transmission lines, intrastate distribution lines, intrastate gathering lines, mobile home park distribution systems, and propane distribution systems. The bill requires the Public Utilities Commission to open a proceeding, or expand an existing proceeding, to establish emergency response standards for natural gas transmission and SB 44 (Corbett) Page 1 distribution lines, that must be followed by pipeline operators. The bill requires the Commission to consult with the California Emergency Management Agency and the California Fire Chiefs Association. The bill also requires intrastate transmission pipeline operators to provide information to the State Fire Marshal and local emergency responders on how to access existing information on pipeline locations. The bill requires the Commission to report to the Legislature by January 1, 2013 on the status of the development of the emergency response standards. The Public Utilities Commission has already opened a proceeding to address oversight and regulation of natural gas pipelines. The Commission indicates that expanding that proceeding to include the development of emergency response standards, including coordination with local emergency responders, will require about $225,000 in additional funding. SB 216 (Yee) requires the Public Utilities Commission to evaluate current safety practices with regard to intrastate natural gas transmission pipelines. The bill requires operators of natural gas transmission pipelines to install automatic or remote-controlled shut off valves in areas of high population density or where pipelines cross active seismic faults. SB 216 will be heard in this committee. AB 56 (Hill) requires the operators of natural gas pipelines to institute safety programs and facilities modernization programs and requires the Public Utilities Commission to oversee those programs. AB 56 is in the Assembly SB 879 (Padilla) requires the Public Utilities Commission to require natural gas utilities to account for ratepayer funds designated for pipeline maintenance and repair in a more transparent way. That bill will be heard in this committee.