BILL ANALYSIS Ó SB 44 Page 1 SENATE THIRD READING SB 44 (Corbett) As Amended August 26, 2011 Majority vote SENATE VOTE : 39-0 UTILITIES & COMMERCE 15-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Bradford, Fletcher, |Ayes:|Fuentes, Harkey, | | |Buchanan, Fong, Fuentes, | |Blumenfield, Bradford, | | |Furutani, Beth Gaines, | |Charles Calderon, Campos, | | |Roger Hernández, | |Davis, Donnelly, Gatto, | | |Williams, Knight, Ma, | |Hall, Hill, Lara, | | |Nestande, Skinner, | |Mitchell, Nielsen, Norby, | | |Swanson, Valadao | |Solorio, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : This bill requires the California Public Utilities Commission (Commission) to set emergency response standards for Commission-regulated gas pipeline and distribution systems and requires that access to pipeline maps be made accessible to the State Fire Marshal and the local fire marshal. Specifically, this bill : 1)Defines a Commission-regulated gas pipeline facility to include transmission, distribution and gathering pipeline facilities operated by investor-owned utilities, master-metered mobile home parks, storage facilities, and propane operators. 2)Requires the Commission to commence a proceeding to establish emergency response standards, which include emergency response plans, to be followed by owners or operators of commission-regulated gas pipeline facilities, in consultation with the Office of Emergency Services and first responders including the California Fire Chiefs Association. 3)Requires the emergency response plans to include a requirement that pipeline owners and operators provide the State Fire Marshal and fire chiefs in the pipeline operator's territory with geographic information system maps of the pipeline system SB 44 Page 2 within the owner's or operator's control. 4)Specifies that these requirements do not apply to publicly owned utilities. EXISTING LAW: State (Commission and the Office of the State Fire Marshal) and federal (U.S. Department of Transportation) regulators are tasked with ensuring that pipeline and hazardous materials operators have risk management programs in place, that those programs are designed in conformance with state and federal laws, that the programs are effective in achieving safety for the public and the employees of the operator, and that the entire system of achieving safety continues to improve itself. The Commission enforces statutes and rules (General Order 112-E) which establish, in addition to the Federal Pipeline Safety Regulations, minimum requirements for the design, construction, quality of materials, locations, testing, operations and maintenance of facilities used in the gathering, transmission and distribution of gas and in liquefied natural gas facilities to safeguard life or limb, health, property and public welfare and to provide that adequate service will be maintained by gas utilities operating under the jurisdiction of the commission. The Commission conducts compliance inspections, accident investigations, reviews utilities' reports and records, conducts construction inspections, conducts special studies, and takes action in response to complaints and inquiries from the public on issues regarding gas pipeline and electric safety. The Commission also conducts audits and inspections of gas facilities owned and operated by mobile home parks, and audits and inspections of underground propane gas distributions systems. The Commission has responsibility to ensure compliance with federal pipeline management standards for over 11,000 miles of transmission pipeline and almost 2,350 miles of transmission pipeline in high consequence areas. The Office of the State Fire Marshal (SFM) regulates the safety of approximately 5,500 miles of intrastate hazardous liquid transportation pipelines and acts as an agent of the federal Office of Pipeline Safety concerning the inspection of more than SB 44 Page 3 2,000 miles of interstate pipelines. Pipeline Safety staff inspect, test, and investigate to ensure compliance with all federal and state pipeline safety laws and regulations. All spills, ruptures, fires, or similar incidents are responded to immediately; all such accidents are investigated for cause. Hazardous liquid pipelines are also periodically tested for integrity using procedures approved by SFM. The program has been certified by the federal government since 1981. SFM also maintains Geographic Information Systems (GIS)-based maps of all regulated pipelines and has been named as a state repository for pipeline data by the National Pipeline Mapping System (NPMS). FISCAL EFFECT : According to the Assembly Appropriations Committee, the Commission has already opened a proceeding to address oversight and regulation of natural gas pipelines. To expanding this proceeding to include the development of emergency response standards, including consultation with emergency responders, PUC will incur one-time special fund costs of around $240,000 for the equivalent of two positions. (Public Utilities Reimbursement Account) COMMENTS : According to the author, this bill requires natural gas operators to improve communication and coordination with first responders by requiring the Commission, in consultation with the California Emergency Management Agency and The California Fire Chiefs Association to adopt stricter emergency response standards. On September 9, 2010, a portion of a 30-inch diameter underground natural gas transmission system of Pacific Gas and Electric Company (PG&E) suddenly ruptured. The pipeline was located under the asphalt paving at the intersection of Glenview Drive and Earl Avenue in a residential area of San Bruno, California. An explosion ensued, fueled by blowing natural gas. The explosion and fire resulted in the loss of eight lives and the total destruction of 38 homes. Seventy homes sustained damage and eighteen homes adjacent to the destroyed dwellings were left uninhabitable. Although the local fire department in San Bruno was aware of PG&E natural gas distribution system that traversed the city, it was unaware of the much larger transmission pipeline that ruptured in the accident. The lack of information about SB 44 Page 4 components of a pipeline system can put emergency responders at greater risk and reduce the effectiveness of the response. Therefore the National Transportation Safety Board recommended that the Pipeline and Hazardous Materials Safety Administration (PHMSA) issue guidance to pipeline operators regarding sharing system specific information (including pipe diameter, operating pressure, product transported, and potential impact radius) with the emergency response agencies in the communities and jurisdictions where their pipelines are located. Local emergency responders will typically be the first on scene in the event of a fire. Establishing communication between pipeline owners and operators with those fire departments local to High Consequence Area (HCA) pipelines would provide an opportunity to improve coordination in the event that requires emergency response. The Commission should also coordinate with the Office of the State Fire Marshal with respect to the development of emergency response standards and emergency response plans. State and municipal authorities have safety agreements and/or certifications with the U.S. Department of Transportation for regulating intrastate and interstate pipelines. Similar issues apply to operators of gas pipelines operated by California oil refiners (oil company pipelines are regulated through the California Department of Conservation, Division of Oil and Gas). Federal law does not specifically name responsible agencies at the state and local level for implementing federal law, it just allows the Department of Transportation to enter into agreements or receive certifications from state and local authorities. Analysis Prepared by : Susan Kateley / U. & C. / (916) 319-2083 FN: 0002293 SB 44 Page 5