BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 216
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          SENATE THIRD READING
          SB 216 (Yee)
          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 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 








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          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)).










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          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 








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          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 


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