BILL NUMBER: SB 216	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 25, 2011

INTRODUCED BY   Senator Yee
    (   Coauthors:   Assembly Members 
 Blumenfield,   Ma,   and Portantino  
) 

                        FEBRUARY 9, 2011

   An act to add  Section 770.6 to   Chapter 4.5
(commencing with Section 950) to Part 1 of Division 1 of  the
Public Utilities Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 216, as amended, Yee. Public utilities: intrastate natural gas
pipeline safety.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including gas corporations, as
defined. The Public Utilities Act authorizes the commission to
ascertain and fix just and reasonable standards, classifications,
regulations, practices, measurements, or services to be furnished,
imposed, observed, and followed by specified public utilities,
including gas corporations.
   Existing federal law requires the United States Department of
Transportation Pipeline and Hazardous Materials Safety Administration
(PHMSA) to adopt minimum safety standards for pipeline
transportation and for pipeline facilities, including an interstate
gas pipeline facility and intrastate gas pipeline facility, as
defined. Existing law authorizes the United States Secretary of
Transportation to prescribe or enforce safety standards and practices
for an intrastate pipeline facility or intrastate pipeline
transportation to the extent that the safety standards and practices
are regulated by a state authority that annually submits to the
secretary a certification for the facilities and transportation or,
alternatively, authorizes the secretary to make an agreement with a
state authority authorizing it to take necessary action to meet
certain pipeline safety requirements. Existing law prohibits a state
authority from adopting or continuing in force safety standards for
interstate pipeline facilities or interstate pipeline transportation.
Existing law authorizes a state authority that has submitted a
current certification to adopt additional or more stringent safety
standards for intrastate pipeline facilities and intrastate pipeline
transportation only if those standards are compatible with the
minimum standards prescribed by the PHMSA.  Existing federal
law additionally authorizes a state authority to enforce a
requirement for a one-call notification program that meets the
requirements established by the PHMSA. 
   This bill would designate the commission as the state authority
responsible for  regulating and enforcing intrastate gas pipeline
transportation and pipeline facilities pursuant to federal law,
including the  development, submission, and administration of a
state pipeline safety program certification for natural gas pipelines
 and for the implementation and enforcement of a one-call
notification program for the state  . The bill would require
the commission to evaluate current practices and to determine
whether compatible  transmission  safety standards, as
defined, should be adopted for the enhancement of public safety with
respect to  : (1)  the proximity of pipelines
carrying liquid materials to commission-regulated gas pipeline
facilities, as defined,  and (2) the installation,
maintenance, location, and type of sectionalized block valves on
commission-regulated gas pipeline facilities   that are
intrastate transmission lines, as defined  . The bill would
require the commission, unless it determines that doing so is
preempted under federal law, to  adopt compatible safety
standards that  require the installation of automatic
shut-off or remote controlled sectionalized block valves on all
 commission-regulated gas pipeline facilities  
intrastate transmission lines  that are located in a high
consequence area, as defined, or that traverse an active seismic
earthquake fault. The bill would require  the commission, in
consultation with the PHMSA, to adopt and enforce compatible safety
standards, as defined, for commission-regulated gas pipeline
facilities that the commission determines should be adopted following
its evaluation or as required by the bill   the owner
or operator of a commission-regulated gas pipeline facility that is
an intrastate transmission line to provide the commission with a
valve location plan, along with any recommendations for  
valve locations, and would authorize the commission to make
modifications to the valve location plan  .
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 770.6 is added to the Public
Utilities Code, to read:
   770.6.  (a) For purposes of this section, the following terms have
the following meanings:
   (1) "Class 1 location," "class 2 location," "class 3 location,"
and "class 4 location" have those meanings as defined in the
regulations adopted by the United States Department of Transportation
pursuant to Chapter 601 (commencing with Section 60101) of Subtitle
VIII of Title 49 of the United States Code (49 C.F.R. 192.5, as
adopted January 1, 2011, or a successor regulation).
   (2) "Commission-regulated gas pipeline facility" means an
intrastate gas pipeline facility, as defined in Section 60101 of
Title 49 of the United States Code, that transports natural gas and
is subject to the regulatory authority of the commission, including a
pipeline that the commission, pursuant to subsection (c) of Section
717 of Title 15 of the United States Code, has certified to the
Federal Energy Regulatory Commission as being subject to the
regulatory jurisdiction of the commission over rates and service.
"Commission-regulated gas pipeline facility" does not include those
pipelines that are excluded from regulation by the Federal Energy
Regulatory Commission pursuant to subsection (b) of Section 717 of
Title 15 of the United States Code because they are facilities used
for the distribution of natural gas.
   (3) "Compatible safety standards" means additional or more
stringent safety standards for commission-regulated gas pipeline
facilities that are compatible with the minimum safety standards
adopted by the United States Department of Transportation pursuant to
Chapter 601 (commencing with Section 60101) of Subtitle VIII of
Title 49 of the United States Code, and that the commission is
authorized to adopt pursuant to subsection (c) of Section 60104 of
that chapter.  
  SECTION 1.    Chapter 4.5 (commencing with Section 950) is
added to Part 1 of Division 1 of the Public Utilities Code, to read:

      CHAPTER 4.5.   GAS PIPELINE SAFETY



      Article 1.   General


    950.   For purposes of this chapter, the following
terms have the following meanings:  
   (a) "Commission-regulated gas pipeline facility" means an
intrastate gas pipeline facility as defined in Section 60101 of Title
49 of the United States Code, that is subject to the safety
regulatory authority of the commission, including each of the
following pipelines:  
   (1) An intrastate distribution line, which is a pipeline that is
not subject to the jurisdiction of the Federal Energy Regulatory
Commission pursuant to Section 717(b) of Title 15 of the United
States Code because it is used for the local distribution of natural
gas.  
   (2) An intrastate transmission line, which is a transmission
pipeline that the commission, pursuant to Section 717(c) of Title 15
of the United States Code, has certified to the Federal Energy
Regulatory Commission as being subject to the regulatory jurisdiction
of the commission over rates and service. For these purposes, a
transmission pipeline means a pipeline other than a gathering line
that: (A) transports gas from a gathering line or storage facility to
a distribution center, storage facility, or large volume customer
that is not down-stream from a distribution center, (B) operates at a
hoop stress of 20 percent or more of specified maximum yield
strength, or (C) transports gas within a storage field.  
   (3) An intrastate gathering line, which is a pipeline that
transports gas from a current production facility to a transmission
line or main.  
   (4) A mobilehome park master-metered natural gas distribution
system that is subject to the commission's safety inspection and
enforcement program pursuant to Chapter 4 (commencing with Section
4351) of Division 2.  
   (5) A propane distribution system that is subject to the
commission's safety inspection and enforcement program pursuant to
Chapter 4.1 (commencing with Section 4451) of Division 2.  
   (b) "Compatible transmission safety standards" means safety
standards that are applicable to an intrastate transmission line that
are in addition to, or more stringent than, the minimum safety
standards adopted by the United States Department of Transportation
pursuant to Chapter 601 (commencing with Section 60101) of Subtitle
VIII of Title 49 of the United States Code, and that the commission
is authorized to adopt pursuant to subsection (c) of Section 60104 of
that chapter.  
   (4) 
    (c)  "High consequence area" has the same meaning as
defined in the regulations adopted by the United States Department of
Transportation pursuant to Chapter 601 (commencing with Section
60101) of Subtitle VIII of Title 49 of the United States Code (49
C.F.R. 192.903, as adopted January 1, 2011, or a successor
regulation). 
   (b) (1) The commission is the state authority responsible for the
development, submission, and administration of a state pipeline
safety program certification for natural gas pipelines pursuant to
Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title
49 of the United States Code.  
   (2) The commission is the state authority responsible for
implementation and enforcement of a one-call notification program for
the state, consistent with the requirements adopted by the United
States Department of Transportation pursuant to Chapter 601
(commencing with Section 60101) of Subtitle VIII of Title 49 of the
United States Code. 

      Article 2.   Natural Gas Pipeline Safety Act of 2011


   955.   (a) This article shall be known and may be
cited as the Natural Gas Pipeline Safety Act of 2011.  
   (b) The commission is the state authority responsible for
regulating and enforcing intrastate gas pipeline transportation and
pipeline facilities pursuant to Chapter 601 (commencing with Section
60101 of Subtitle VIII of Title 49 of the United States Code,
including the development, submission, and administration of a state
pipeline safety program certification pursuant to Section 60105 of
that chapter.  
   (c) The State Fire Marshal shall exercise exclusive safety
regulatory and enforcement authority over intrastate hazardous liquid
pipelines pursuant to the Elder California Pipeline Safety Act of
1981 (Chapter 5.5 (commencing with Section 51010) of Division 1 of
Title 5 of the Government Code and Section 13107.5 of the Health and
Safety Code).  
   (c) 
    957.   (a)    The commission shall
open an appropriate proceeding or joint proceedings, or expand the
scope of an existing proceeding, to evaluate current practices and to
determine whether compatible  transmission  safety
standards should be adopted for the enhancement of public 
safety, with respect to both of the following: 
    (1)    The proximity of
pipelines carrying liquid materials to commission-regulated gas
pipeline facilities   safety, with respect to the
proximity of pipelines carrying liquid materials to intrastate
transmission l  ines  . As part of this evaluation, the
commission shall evaluate current practices with respect to, and the
desirability of adopting compatible safety standards for, the
separation of  commission-regulated gas pipeline facilities
  intrastate transmission lines  and pipelines that
carry water used for fire suppression in the event of a fire
involving a commission-regulated gas pipeline facility. As part of
this evaluation, and in consultation with the State Fire Marshal, the
commission shall also evaluate current practices and the
desirability of adopting compatible  transmission  safety
standards with respect to the proximity of 
commission-regulated gas pipeline facilities  
intrastate transmission lines  and pipelines used for the
transportation of hazardous liquid substances or highly volatile
liquid substances that are under the safety responsibility of the
State Fire Marshal pursuant to the Elder California Pipeline Safety
Act of 1981 (Chapter 5.5 (commencing with Section 51010) of Division
1 of Title 5 of the Government Code) or Section 13107.5 of the Health
and Safety Code. 
   (2) The installation, maintenance, location, and type of
sectionalized block valves on commission-regulated gas pipeline
facilities. In performing the evaluation, the commission shall
consider differences in pipelines, including differences in size,
differences in operational pressure, and differences relative to the
proximity of the pipeline to heavily populated and other critical
areas, proximity to seismic earthquake fault lines, appropriate
spacing of transmission shut-off valves, impacts on operation of the
pipelines, safety and reliability, cost, and technical feasibility.
This paragraph shall not limit the authority of the owner or operator
of a commission-regulated gas pipeline facility to proceed with a
pilot project or other program for the installation of automatic or
remote gas shutoff valves prior to the commission completing its
evaluation or adoption of compatible safety standards. The commission
shall complete its evaluation by December 31, 2012. 

   (d) 
    (b)  (1) Unless the commission determines that it is
prohibited from doing so by subdivision (c) of Section 60104 of Title
49 of the United States Code, the commission shall  adopt
compatible safety standards that  require the installation
of automatic shut-off or remote controlled sectionalized block valves
on  all   both  of the following
facilities:
   (A)  Commission-regulated gas pipeline facilities
  Intrastate transmission lines  that are located
in a high consequence area.
   (B)  Commission-regulated gas pipeline facilities
  Intrastate   transmission lines  that
traverse an active seismic earthquake fault. 
   (2) Installation of automatic shut-off or remote controlled
sectionalized block valves pursuant to paragraph (1) shall meet the
requirements of 49 C.F.R. 192.179, and be spaced as follows:
 
   (A) Each point on the pipeline in a class 4 location shall be
within 2.5 miles (4 kilometers) of a valve.  
   (B) Each point on the pipeline in a class 3 location shall be
within 4 miles (6.4 kilometers) of a valve.  
   (C) Each point on the pipeline in a class 2 location shall be
within 7.5 miles (12 kilometers) of a valve.  
   (D) Each point on the pipeline in a class 1 location shall be
within 10 miles (16 kilometers) of a valve.  
   (2) Each owner or operator of a commission-regulated gas pipeline
facility that is an intrastate transmission line shall provide the
commission with a valve location plan, along with any recommendations
for valve locations. The commission may make modifications to the
valve location plan or provide for variations from any location
requirements adopted by the commission pursuant to this section that
it deems necessary or appropriate and consistent with protection of
the public. 
   (3) The commission shall additionally establish action timelines,
adopt standards for how to prioritize installation of automatic
shut-off or remote controlled sectionalized block valves pursuant to
paragraph (1)  , ensure that remote and automatic shut-off valves
are installed as quickly as is reasonably possible  , and
establish ongoing procedures for monitoring progress in achieving the
compatible  transmission  safety standards. 
   (e) 
    (c)  The commission shall authorize recovery in rates
for all reasonably incurred costs incurred for implementation of the
compatible safety standards. 
   (f) 
    (d)  The commission, in consultation with the Pipeline
and Hazardous Materials Safety Administration of the United States
Department of Transportation, shall adopt and enforce compatible
safety standards for commission-regulated gas pipeline facilities
that the commission determines should be adopted following its
evaluation conducted pursuant to subdivision (c), and those
conditionally required to be adopted pursuant to subdivision (d).
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.