BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 216
                                                                  Page  1

          Date of Hearing:   June 27, 2011

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Steven Bradford, Chair
                       SB 216 (Yee) - As Amended:  May 31, 2011

           SENATE VOTE  :   39-0
           
          SUBJECT  :   Natural Gas Pipeline Safety: automatic shutoffs

           SUMMARY  :   This bill authorizes the California Public Utilities 
          Commission (PUC) to require automatic shut off or remote 
          controlled valves on certain natural gas facilities.  
          Specifically,  this bill  :  

          Requires the PUC, unless it is prohibited by federal law, to 
          require automatic shut off or remote controlled valves on 
          intrastate natural gas transmission lines located in 'high 
          consequence areas' or that traverse an active seismic earthquake 
          fault line.

          Requires owners of intrastate pipelines to provide a valve 
          location plan to the PUC.

           EXISTING LAW  :

          Federal Law and the PUC require each transmission line have 
          sectionalized block valves placed at specified intervals and in 
          specified locations ranging from every 2  miles to every 10 
          miles and classifies pipelines based on the types of facilities 
          that are within 220 yards of its location.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          The author states that following the September 9, 2010 gas 
          explosion in the City of San Bruno, California, the National 
          Transportation Safety Board (NTSB) highlighted the need for 
          legislation to require gas utility companies to install 
          automatic and remotely-controlled shutoff valves throughout 
          California's pipelines.  Investigators say it took PG&E about an 
          hour and a half to access and manually close the mainline valves 
          near the ruptured segments and about four more hours to stop the 
          gas flow to residences at damaged houses in San Bruno.  At a 








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          public hearing regarding the San Bruno gas explosion, PG&E 
          testified that with automatic or remote-controlled shutoff 
          valves, it would take about 10 to 15 minutes to analyze the 
          situation turn off gas supply in pipelines fairly quickly. 

          After the San Bruno incident the author met with local fire 
          chiefs who expressed a need for enhanced communication and 
          coordination with gas pipeline operators before and during 
          emergency events involving gas pipelines to ensure that hazards 
          are minimized.  The issue was heightened as greater attention 
          was given to the location of natural gas pipelines throughout 
          the Bay Area, some of which are adjacent to fault lines, and the 
          risks associated with earthquakes.  


          High Consequence Area (HCA) is a term defined in Code of Federal 
          Regulations (CFR) and means:


           An area that has 46 or more buildings intended for human 
            occupancy; or an area where the pipeline lies within 100 yards 
            (91 meters) of either a building or a small, well-defined 
            outside area (such as a playground, recreation area, outdoor 
            theater, or other place of public assembly) that is occupied 
            by 20 or more persons on at least 5 days a week for 10 weeks 
            in any 12-month period. (The days and weeks need not be 
            consecutive.) This is a Class 3 Area defined by 49 CFR 192.4 
            (3)

           Any location unit where buildings with four or more stories 
            above ground are prevalent (49 CFR 194.4 (4))


           Any location that has fewer than 46 buildings intended for 
            human occupancy (Class 1 and Class 2 areas defined by 49 CFR 
            192.5) where the potential impact radius is greater than 660 
            feet (200 meters), and the area within a potential impact 
            circle contains 20 or more buildings intended for human 
            occupancy; or


           Any location that has fewer than 46 buildings intended for 
            human occupancy (Class 1 and Class 2 areas defined by 49 CFR 
            192.5) where the potential impact circle contains an 
            identified site. Identified site means each of the following 








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            areas:


                 An outside area or open structure that is occupied by 
               twenty (20) or more persons on at least 50 days in any 
               twelve (12)-month period. (The days need not be 
               consecutive.) Examples include but are not limited to, 
               beaches, playgrounds, recreational facilities, camping 
               grounds, outdoor theaters, stadiums, recreational areas 
               near a body of water, or areas outside a rural building 
               such as a religious facility; or

                 A building that is occupied by twenty (20) or more 
               persons on at least five (5) days a week for ten (10) weeks 
               in any twelve (12)-month period. (The days and weeks need 
               not be consecutive.) Examples include, but are not limited 
               to, religious facilities, office buildings, community 
               centers, general stores, 4-H facilities, or roller skating 
               rinks; or


                 A facility occupied by persons who are confined, are of 
               impaired mobility, or would be difficult to evacuate. 
               Examples include but are not limited to hospitals, prisons, 
               schools, day-care facilities, retirement facilities or 
               assisted-living facilities.


          PG&E has the second highest amount of high pressure transmission 
          pipeline located in HCA compared to other utilities or pipeline 
          companies in the U.S. PG&E has 1,021 miles of pipeline within 
          the urbanized or so-called high consequence areas.  Sempra's 
          Southern California Gas system and San Diego Gas & Electric have 
          1,320 miles of pipeline within high consequence areas.  

          State and municipal authorities have safety agreements and/or 
          certifications with the U.S. Department of Transportation for 
          regulating intrastate and interstate pipelines.  Federal law 
          does not specifically name responsible agencies at the state and 
          local level for implementing federal law - it allows the 
          Department of Transportation to enter into agreements or receive 
          certifications from state and local authorities. Several 
          publicly owned utilities own and operate pipelines, including 
          Palo Alto, Sacramento Municipal Utility District, and Los 
          Angeles Department of Water and Power.








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           The author may wish to consider an amendment to clarify that the 
          provisions of this bill to specify the PUC's jurisdiction is 
          limited to what is within the scope of the PUC's regulatory 
          authority and delineated in the PUC's certification to the U.S. 
          Department of Transportation.
           

           RELATED LEGISLATION

           
          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.

          SB 44 (Corbett) requires the Public Utilities Commission to set 
          emergency response standards for PUC-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.

          SB 705 (Leno) requires natural gas utilities regulated by the 
          Public Utilities Commission to develop service and safety plans. 
           

          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.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Chapters of the American Red Cross
          California Emergency Nurses Association (CalENA)
          California Professional Firefighters (CPF)
          California Public Utilities Commission (CPUC)
          California State Firefighters' Association, Inc.
          Consumer Attorneys of California
          Consumer Federation of California (CFC)
          International Association of Firefighters Local 2400
          San Diego Gas & Electric Company (SDG&E)
          San Francisco Firefighters








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          San Mateo County Board of Supervisors
          San Mateo County Community College District
          San Mateo County Firefighters
          Sempra Energy utilities
          Southern California Gas Company (SoCalGas)

           Opposition 
           
           None of file. 

          Analysis Prepared by  :    Susan Kateley / U. & C. / (916) 
          319-2083