BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING
          SB 44 (Corbett)
          As Amended  August 26, 2011
          Majority vote 

           SENATE VOTE  :   39-0

          UTILITIES & COMMERCE            15-0                
          APPROPRIATIONS      17-0        
           
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          |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 








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            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 








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          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 








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          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












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