BILL ANALYSIS Ó
SB 54
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Jerry Hill, Chair
2013-2014 Regular Session
BILL NO: SB 54
AUTHOR: Hancock
AMENDED: September 3, 2013
FISCAL: Yes HEARING DATE:
September 10, 2013
URGENCY: No CONSULTANT: Laura
Feinstein
SUBJECT : HAZARDOUS MATERIALS MANAGEMENT: STATIONARY
SOURCES: SKILLED AND TRAINED WORKFORCE
SUMMARY :
Existing federal law :
1)Defines a stationary source as unmoving structures or
activities that are capable of releasing a regulated
substance or other extremely hazardous substance into the
ambient air, and requires specified entities to prepare a
risk management plan (RMP) (Code of Federal Regulations
Title 40 §68.3).
Existing state law :
1)Establishes an accidental release prevention program
implemented by the Office of Emergency Services and the
appropriate administering agency, as defined, in each city
or county (Health and Safety Code §25531 et seq.).
2)Requires stationary sources subject to the accidental
release prevention program to prepare an RMP when required
under federal regulations, or if the administering agency
determines there is a significant likelihood that the use of
regulated substances by a stationary source may pose a
regulated substances accident risk (HSC §25531 et seq.).
This bill enacts provisions related to contract work performed
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at specified stationary sources required to submit an RMP.
Specifically, this bill:
1)Requires an owner or operator of a petroleum refinery or a
petrochemical manufacturing plant to use contractors and
subcontractors that employ a "skilled and trained workforce"
to perform work in an apprenticeable occupation in the
building and construction trades.
2)Defines a "skilled and trained workforce" as including a
minimum percentage of registered apprentices or skilled
journeypersons, as defined.
3)Requires the Chief of the Division of Apprenticeship
Standards of the Department of Industrial Relations to
approve a curriculum of in-person classroom and laboratory
instruction for approved advanced safety training for
workers at high hazard facilities by January 1, 2016.
4)Defines a "skilled journeyperson" as specified.
5)Adds various other provisions concerning employment
practices and apprenticeships.
6)Makes various findings and declarations about the importance
of employing skilled workers at facilities that submit RMPs
and the utility of apprenticeship training programs.
COMMENTS :
1)Referral to the Committee pursuant to Senate Rule 29.10 . SB
54 was originally introduced by Senator Hancock on December
21, 2012, as a measure addressing county employee
retirement.
On August 5, 2013, Assembly amendments changed the subject
of the bill to require a skilled and trained workforce for
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hazardous materials management in stationary sources. The
measure passed the Assembly Floor on September 9, 2013, by a
vote of 51-24.
Consistent with Senate Rule 29.10 the Senate Rules Committee
has referred the amended bill to the Senate Environmental
Quality Committee for a hearing of the Assembly amendments.
2)Purpose of bill . According to the author, SB 54 will reduce
unqualified workers performing skilled work inside
high-hazard industrial petroleum facilities by requiring
that by 2016 60% of each contractor's workforce be graduates
of a state-approved apprenticeship program. The author
states that the contractors at these facilities should be
using the most skilled and qualified workers to reduce
public health and safety risks.
The author states that refinery safety has been an
increasing problem in California and across the United
States. Due to recent incidents risking the public's
health, including the 2012 Chevron refinery explosion in
Richmond, Governor Brown and Members of the Legislature
called for changes to improve safety at these facilities.
An interagency group was formed to study this issue through
various methods including meetings with stakeholders.
The author quotes the draft report entitled "Improving
Public and Worker Safety at Oil Refineries" issued July 2013
by Governor Brown's Interagency Working Group on Refinery
Safety's as follows:
"Workers involved in maintenance, represented by building
and construction trades unions, reported that training of
most maintenance workers (non-refinery employees) is
inadequate. They also reported that refineries use mostly
contract workers, including out-of-state workers, to conduct
maintenance during planned shutdowns of a refinery process
(also referred to as turnarounds), and that contract workers
have less training and experience and, therefore, are less
safe."
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3)Arguments in support . Supporters argue that the bill will
improve safety at chemical manufacturing facilities,
including refineries, by creating a standard on training for
the industrial work performed at the facilities. They state
that refinery accidents are an increasing problem and that
industrial facilities handling toxic substances pose a
serious risk to public health and worker safety. Supporters
contend that a major factor in refinery accidents is
inadequate training for many of the maintenance workers.
Specifically, they state that maintenance work at chemical
manufacturing facilities is often performed by unskilled,
low-wage workers hired off the street or brought in from
other states. They feel that requiring contractors to use
journeypersons and apprentices who have specified
qualifications will prevent accidents at the specified
facilities. In addition, they believe that requiring workers
to complete in-state training programs will encourage hiring
of Californians.
4)Arguments in opposition . The United Steelworkers argue that
SB 54 will displace United Steelworkers members because they
are not allowed to create their own apprenticeship program,
nor participate in the apprenticeship programs mandated
under SB 54.
Various opponents state that the bill will make oil
refineries less safe. They argue that the bill will cause
facilities to substitute contract employees for permanent
employees who have superior on-site experience and capacity
to advocate for safe practices. They contend that problems
with facility management and agency oversight, not untrained
workers, were the cause of the Chevron refinery disaster.
Opponents state the bill is precedent-setting in requiring
private industry to pay prevailing wages, raising overhead
for California businesses. They further state that
construction trades training is not focused on the
specialized work that occurs at refineries and chemical
plants, and that 20 hours over two years of "approved
advanced safety training" will fail to augment public
safety, but will delay work at refineries. Additionally,
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they feel it is unreasonable that SB 54's hiring mandates
take effect before the workers are required to complete the
advanced training curriculum.
5)Related legislation . SB 54 is very similar to a bill heard
earlier in the 2013 Regular Session by the Senate
Environmental Quality Committee, AB 26 (Bonilla). AB 26
requires that oil refineries receiving Greenhouse Gas
Reduction Fund (Fund) moneys employ trained apprentices and
journeypersons. Committee members raised concerns that AB
26:
a) Could be construed as implying that the Legislature
considers petroleum refineries to be a high-priority
investment for the Fund.
b) Could be construed as implying that oil refineries
could receive Fund moneys to pay for work they are
already required to do under statutes, regulations or
and/or court orders apart from the market-based
compliance mechanisms authorized under the California
Global Warming Solutions Act of 2006.
SB 54 addresses the aforementioned environmental concerns by
excluding provisions about the Greenhouse Gas Reduction
Fund. While SB 54 makes changes regarding labor practices
at stationary sources of regulated and hazardous substances,
it does not change how regulated and hazardous substances
are managed under California law.
SOURCE : State Building and Construction Trades Council
of
California, AFL-CIO
SUPPORT : California Chapters of National Electrical
Contractors
Association
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California Legislative Conference of the
Plumbing, Heating, and Piping Industry
California Medical Association
California Professional Firefighters
California State Association of Electrical
Workers
California State Council of Laborers
California State Pipe Trades Council
California Teamsters Public Affairs Council
Construction Employers' Association
Environmental-Labor Coalition of Contra Costa
County
International Association of Heat and Frost
Insulators,
Local 5
International Brotherhood of Boilermakers
Western States Council of Sheet Metal Workers
Western Steel Council
OPPOSITION : Asian Pacific Environmental Network
Associated Builders and Contractors of
California
Association of California Air Conditioning
Trade Association
California Manufacturers and Technology
Association
Communities for a Better Environment
Plumbing-Heating-Cooling Contractors
Association of California
United Steelworkers
Western Electrical Contractors Association
Western States Petroleum Association
34 Individuals