BILL ANALYSIS                                                                                                                                                                                                    Ó




                                                                  AB 1937
                                                                  Page A
          Date of Hearing:   April 28, 2014

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Steven Bradford, Chair
                    AB 1937 (Gordon) - As Amended:  April 3, 2014
           
          SUBJECT  :   Natural Gas Pipeline Safety Act of 2011: school and  
          hospital notification of maintenance and testing of gas  
          pipelines.

           SUMMARY  :   This bill would require a gas corporation to provide  
          not less than 3 working days' notice, as specified, to the  
          administration of a school or hospital prior to undertaking  
          nonemergency gas pipeline maintenance or testing when the work  
          is located within 500 feet of the school or hospital.    
          Specifically,  this bill  :  

          1)Requires a gas corporation to provide not less than a three  
            working day's notice to the administration of a school or  
            hospital prior to undertaking nonemergency gas pipeline  
            maintenance or testing if the work is located within 500 feet  
            of the school or hospital. 

          2)Requires the notification to include:

             a)   The name, address, telephone number, and emergency  
               contact information for the gas corporation.
             b)   The specific location of the gas pipeline where the  
               maintenance or testing work will be performed.
             c)   The date and time the maintenance or testing is to be  
               conducted and when the work is expected to be completed.
             d)   An invitation and a telephone number to call for further  
               information on what the school or hospital should do in the  
               event of a leak.

          1)Requires the gas corporation to maintain a record of the date  
            and time of any notification provided to the administration of  
            a school or hospital and any subsequent contacts with the  
            administration and actions taken, if any, in response to those  
            subsequent contacts.

           EXISTING LAW

           a)Federal law requires the Pipeline and Hazardous Materials  
            Safety Administration (PHMSA) within the United States  









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            Department of Transportation, 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. 

          b)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 submits to  
            the secretary annually a certification for the facilities and  
            transportation. 

          c)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.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement.  "An increasing number of significant  
            natural gas pipeline accidents in California have received  
            attention throughout the country over the past several years.   
            The most visible of those took place in San Bruno in late  
            2010, and additional natural gas accidents in Cupertino and  
            Roseville at the end of 2011 also highlight exactly how  
            pervasive our problems really are. 

            There are numerous locations throughout California where a gas  
            pipeline exists on or adjacent to school and hospital  
            property. There have been an increasing number of instances  
            where schools are being evacuated due to gas pipelines being  
            struck when maintenance or excavations are being performed,  
            and these circumstances have resulted in the public's safety  
            being put at risk. As such, there are currently no public  
            noticing requirements to schools (or hospitals) in statute or  
            CPUC regulations, regarding noticing when maintenance or  
            pipeline testing is being performed, and AB 1937 will be a  
            tool to improve the safety of the public.

            Undoubtedly, it is in the public's best interest to ensure  
            that public gathering places, such as schools and hospitals,  









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            are given ample notice of a gas company's pipeline maintenance  
            or testing, especially when the work is located in the direct  
            vicinity of some of California's most precious, and  
            potentially vulnerable, human resources."

           2)Gas leaks as a result of excavation damage  .  In January 2014,  
            a gas line ruptured on the campus of Mira Mesa middle school,  
            forcing the shutdown of nearby roads and sent emergency crews  
            rapidly to contain the leak.<1>  San Diego Gas & Electric  
            crews examined the size of the leak and stopped the flow of  
            gas.  The ruptured line was also in the vicinity of nearby  
            Walker Elementary School and Miramar College.  Investigators  
            concluded that construction crews on campus hit the line with  
            a backhoe.   

             In 2011, Century High School was evacuated and closed due to a  
            gas leak.<2> It was determined construction workers accidently  
            severed a 4-inch gas line. The leak was detrimental enough to  
            close the school.  The gas company sealed the leak within a  
            few hours.
           
          3)Non-excavation gas line work.  This bill requires gas  
            corporations to provide not less than 3-days' notice for  
            non-emergency maintenance or survey work to the administration  
            of a school or hospital. According to the California Hospital  
            Association, AB 1937 is a responsible bill which helps ensure  
            patient and health care worker safety and will assist  
            hospitals with their disaster planning and the scheduling of  
            some services.  The Office of Ratepayer Advocates opine the  
            bill will "improve public safety by allowing school and  
            hospital administrators lead time to make preparations, if  
            necessary, in advance of non-emergency pipeline maintenance or  
            testing."  

             However, it is not clear if providing notice for non-emergency  
            field activities is efficient or effective. Field activities  
            such as pipeline patrol, locate and mark, leak survey and  
            valve inspection do not necessarily pose safety risk to  
            customers before or while being conducted.  Sempra Energy  
            utilities oppose this provision stating, "the 3-day  
            --------------------------
          <1>  
           http://www.cbs8.com/story/24452133/gas-leak-near-miramar-college  

          <2>  http://www.ocregister.com/news/school-291431-leak-gas.html  









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            requirement would cause unnecessary and costly steps to our  
            existing processes without increasing safety for our  
            customers."   
           
            In contrast, excavation construction often requires heavy  
            machinery and significant, invasive work around the utilities  
            pipeline system. It seems more appropriate to require advance  
            notice prior to commencing this type of excavation work,  
            increasing safety risk.  

             Therefore, the author and this committee may wish to strike  
            the term "non-emergency gas pipeline maintenance or testing"  
            and insert "excavation construction".   This would direct the  
            notice activity to work for which scheduling could be  
            accommodating and increase awareness for schools and hospital  
            populations.  
           
           4)Suggested amendments.
           
            SECTION 1. Section 955.5 is added to the Public Utilities  
            Code, to read:

            955.5. (a) For purposes of this section, the following terms  
            have the following meanings:
            (1) "Gas pipeline" means an intrastate distribution line as  
            described in paragraph (1) of, or an intrastate transmission  
            line as described in paragraph (2) of, Section 950.
            (2) "Hospital" means a licensed general acute care hospital as  
            defined in subdivision (a) of Section 1250 of the Health and  
            Safety Code.
            (3) "School" means a public or private preschool, elementary,  
            or secondary school.
            (b) A gas corporation shall provide not less than three  
            working day's notice to the administration of a school or  
            hospital prior to undertaking  nonemergency gas pipeline  
            maintenance or testing   excavation construction  if the work is  
            located within 500 feet of the school or hospital. The  
            notification shall include all of the following:
            (1) The name, address, telephone number, and emergency contact  
            information for the gas corporation.
            (2) The specific location of the gas pipeline where the  
            maintenance or testing work will be performed.
            (3) The date and time the maintenance or testing is to be  
            conducted and when the work is expected to be completed.
            (4) An invitation and a telephone number to call for further  









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            information on what the school or hospital should do in the  
            event of a leak.
            (c) The gas corporation shall maintain a record of the date  
            and time of any notification provided to the administration of  
            a school or hospital and any subsequent contacts with the  
            administration and actions taken, if any, in response to those  
            subsequent contacts.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Hospital Association
          Office of Ratepayer Advocates (ORA)

           Opposition 
           
          San Diego Gas & Electric (SDG&E) (unless amended)
          Sempra Energy utilities (SEu) (unless amended)
          Southern California Gas Company (SoCalGas) (unless amended)
           
          Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083