BILL ANALYSIS Ó SB 216 Page 1 SENATE THIRD READING SB 216 (Yee) 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 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 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 PUC. EXISTING LAW : Federal Law and 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 : According to the Assembly Appropriations Committee, Annual special fund costs to PUC of about $240,000 for two positions to support the PUC's work in reviewing valve location plans, adopting standards for prioritizing installation and establishing installation timelines, and monitoring utility SB 216 Page 2 implementation. 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 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: 1)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 five 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). 2)Any location unit where buildings with four or more stories above ground are prevalent (49 CFR 194.4 (4)). SB 216 Page 3 3)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. 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 circle contains an identified site. 5)An outside area or open structure that is occupied by 20 or more persons on at least 50 days in any 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. 6)A building 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.) Examples include, but are not limited to, religious facilities, office buildings, community centers, general stores, 4-H facilities, or roller skating rinks. 7)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 United States. 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 SB 216 Page 4 consequence areas. State and municipal authorities have safety agreements and/or certifications with 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. These publicly owned utilities are not subject to the provisions of this bill, however their individual boards may require automatic or remotely controlled shut off valves. Analysis Prepared by : Susan Kateley / U. & C. / (916) 319-2083 FN: 0002290