SB 1300, as introduced, Hancock. Refineries: turnarounds.
Existing law, the California Refinery and Chemical Plant Worker Safety Act of 1990, states that its purpose is to prevent or minimize the consequences of catastrophic releases of toxic, flammable, or explosive chemicals. Existing law provides for the adoption of specified process safety management standards for, among others, refineries that handle acutely hazardous material. Existing law declares the intent of the Legislature for, among others, the Division of Occupational Safety and Health, to promote worker safety through implementation of training and process safety management, as defined, in refineries and other facilities as deemed appropriate. A violation of the act is a crime.
This bill would require every petroleum refinery employer to, every September 15, submit to the division a full schedule of planned turnarounds, meaning a planned, periodic shutdown of a refinery process unit or plant to perform maintenance, overhaul, and repair operations and to inspect, test, and replace process materials and equipment, for the following calendar year, as specified. Upon the request of the division, the bill would also require a petroleum refinery employer to provide access on site and provide the division with specified documentation relating to a planned turnaround within a certain period of time, as provided. This bill would prohibit any information that is submitted to the division that is identified as a trade secret from being released to the public, as specified.
Existing law requires the division to annually fix and collect reasonable fees for consultation, inspection, adoption of standards, and other duties conducted pursuant to the act, and requires all revenue collected from these fees to be deposited into the Occupational Safety and Health Fund. Existing law requires the fees to be sufficient to support, at a minimum, the annual cost of 15 positions and requires the fees to be adopted by March 15, 2014.
This bill would instead authorize the Department of Industrial Relations to fix and collect reasonable fees to cover all necessary expenses, including administrative and indirect costs, for consultation, inspection, adoption of standards, participation in interagency efforts to improve safety in refineries and chemical plants, and other duties conducted pursuant to this act. This bill would require the Director of Industrial Relations to adopt reasonable rules and regulations governing the criteria and procedures to fix and collect the fees, including emergency regulations as necessary.
This bill would require the Director of Industrial Relations to recoup the full costs of extraordinary expenditures from the owner of a refinery by adding the amount expended to the next year’s assessment for that facility as a result of the division’s response to a hazardous material release or similar occurrence at a petroleum refinery.
This bill would authorize the department to hold in reserve any unexpended funds as a contingency fund for expenditures required by an emergency response to a hazardous material release or other emergency situation an unexpended funds, as provided.
Because a violation of the bill’s requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 7870 of the Labor Code is amended to
2read:
begin insert(a)end insertbegin insert end insert Notwithstanding the availability of federal funds to
4carry out the purposes of this part, thebegin delete division shall annuallyend delete
5begin insert department mayend insert fix and collect reasonable feesbegin insert to cover all
6necessary expenses, including administrative and indirect costs,end insert
7 for consultation, inspection, adoption of standards,begin insert
participation
8in interagency efforts to improve safety in refineries and chemical
9plants,end insert and other duties conducted pursuant to this part.begin delete The fees All revenue collected from
10shall be adopted by March 31, 2014.end delete
11these fees shall be deposited into the Occupational Safety and
12Health Fund.begin delete The fees shall be sufficient to support, at a minimum, The expenditure of these funds
13the annual cost of 15 positions.end delete
14shall be subject to appropriation by the Legislature in the annual
15Budgetbegin delete Act or other measure.end deletebegin insert Act. The director shall adopt
16reasonable rules and regulations governing the criteria and
17procedures to fix and collect the fees and to implement
this section,
18including emergency regulations as necessary. All regulations
19previously adopted by the division pursuant to this section shall
20remain in effect until repealed or amended by the director.end insert
21(b) The emergency regulations adopted pursuant to this section
22shall be adopted by the director in accordance with Chapter 3.5
23(commencing with Section 11340) of Part 1 of Division 3 of Title
242 of the Government Code. The adoption of these regulations is
25an emergency and shall be considered by the Office of
26Administrative Law necessary for the immediate preservation of
27the public peace, health, safety, and general welfare.
28(c) If, as a result of
the division’s response to a hazardous
29material release or similar occurrence at a petroleum refinery,
30the division is required to make extraordinary expenditures,
31including, but not limited to, transportation, meals, lodging,
32overtime, or other costs, the director shall recoup the full costs of
33such expenditures from the owner of the refinery by adding the
34amount expended to the next year’s assessment for that facility.
35The director shall provide the owner of the refinery with an
36accounting of the costs for which reimbursement is being sought.
37(d) In the event the funds collected pursuant to this section are
38not fully expended by the department in carrying out its duties
P4 1pursuant to this part, the balance shall be carried forward and
2may, in the department’s discretion, be credited against the
3subsequent year’s
assessment or held in reserve as a contingency
4fund for expenditures required by an emergency response to a
5hazardous material release or other emergency situation.
Section 7872 is added to the Labor Code, to read:
(a) For the purposes of this section, “turnaround” means
8a planned, periodic shutdown, total or partial, of a refinery process
9unit or plant to perform maintenance, overhaul, and repair
10operations and to inspect, test, and replace process materials and
11equipment. “Turnaround” does not include unplanned shutdowns
12that occur due to emergencies or other unexpected maintenance
13matters in a process unit or plant. “Turnaround” also does not
14include routine maintenance, where routine maintenance consists
15of regular, periodic maintenance on one or more pieces of
16equipment at a refinery process unit or plant that may require
17shutdown of such equipment.
18(b) Every September 15, every petroleum refinery employer
19shall submit to the division a full schedule of
planned turnarounds
20for the various units for the following calendar year.
21(c) At the request of the division, at least 60 days prior to the
22shutdown of a process unit or plant as part of a planned turnaround,
23a petroleum refinery employer shall provide access on site and
24allow the division to review and receive copies of, or, at the
25division’s discretion, submit in physical format or in electronic
26format if available electronically, the following documentation for
27the process unit or plant scheduled to be shut down for that
28turnaround:
29(1) Corrosion reports and risk-based inspection reports generated
30since the last turnaround.
31(2) Process Hazard Analyses generated since the last turnaround.
32(3) Boiler permit schedules.
33(4) All management of change records related to repairs, design
34modifications, and process changes implemented since the last
35turnaround or scheduled to be completed in the planned turnaround
36referenced in this subdivision and identified in subdivision (b).
37(5) Work orders scheduled to be completed in the planned
38turnaround referenced in this subdivision and identified in
39subdivision (b).
P5 1(6) Temporary repairs since the last turnaround, including, but
2not limited to, clamps and encapsulations. For the purposes of this
3section, “temporary repairs” shall be defined as repairs made to
4piping systems in order to restore sufficient integrity to continue
5safe operation until permanent repairs can be scheduled.
6(d) The division may request additional information
as necessary
7to perform its responsibilities in this part pursuant to Section 6314.
8(e) At the request of the division, at least 30 days prior to the
9shutdown of a process unit or plant as part of a planned turnaround,
10a petroleum refinery employer shall provide access on site and
11allow the division to review and receive copies of, or, at the
12division’s discretion, submit in physical format or in electronic
13format if available electronically, notification and description of
14any changes to the information or documents provided pursuant
15to subdivision (c) and relevant supporting documents.
16(f) By agreement with a petroleum refinery employer, the
17division may modify the reporting period as to any individual item
18of information.
19(g) This section is not intended to limit or increase the division’s
20authority in Part 1
(commencing with Section 6300) to prohibit
21use of a place of employment, machine, device, apparatus, or
22equipment or any part thereof that constitutes an imminent hazard
23to employees.
24(h) The division shall develop an electronic information
25management system to facilitate monitoring of petroleum refineries
26pursuant to this section.
27(i) The Legislature finds and declares the purpose of this section
28is to improve the ability of the state to conduct inspections of
29petroleum refining operations.
Section 7873 is added to the Labor Code, to read:
(a) Any person providing information pursuant to
32Section 7872 may, at the time of submission, identify all or a
33portion of the information submitted to the division as a trade
34secret and, to the extent feasible, segregate records designated as
35a trade secret from the other records. Information that is so
36identified at the time of submission shall not be released to any
37member of the public, except that such information may be
38disclosed to other officers or employees of the division concerned
39with carrying out the purposes of the division or when relevant in
40any proceeding of the division. This section does not prohibit the
P6 1exchange of properly designated trade secrets between public
2agencies when those trade secrets are relevant and necessary to
3the exercise of their jurisdiction if the public agencies
exchanging
4those trade secrets preserve the protections afforded that
5information by this section. For purposes of this section, “public
6agency” has the same meaning as that term is defined in Section
76252 of the Government Code.
8(b) Any information not identified as a trade secret shall be
9available to the public unless exempted from disclosure by other
10provisions of law. The fact that information is claimed to be a trade
11secret is public information. Upon receipt of a request for the
12release of information that has been claimed to be a trade secret,
13the division shall immediately provide written notice to the person
14who submitted the information. Within 10 days from receipt of
15the notice of the request for the release of the information claimed
16to be a trade secret, the person claiming trade secrecy shall submit
17to the division the legal and factual basis for the claim of trade
18secrecy.
19(c) Within 75 days after receiving the request for disclosure,
20but not before 30 days following the later of (1) the notification
21of the person who submitted the information or (2) the division’s
22receipt of the basis for the claim of trade secrecy submitted
23pursuant to subdivision (b), the division shall determine whether
24or not the information claimed to be a trade secret is to be released
25to the public. If the division decides to make the information public,
26it shall provide the person who submitted the information 21 days’
27notice prior to public disclosure of the information.
28(d) If the person requesting the release of the information or the
29person who submitted the information institutes proceeding for
30injunctive or declaratory relief or a writ of mandate to order or
31prohibit disclosure of trade secret information, the person
32instituting the proceeding shall name the other person as a real
33party in interest. Each party shall
bear its own costs and attorney’s
34fees.
35(e) For the purposes of this section, “trade secret” means any
36trade secret as defined in subdivision (d) of Section 3426.1 of the
37Civil Code, any trade secret as defined in subdivision (d) of Section
386254.7 of the Government Code, and any other information
39regarding the scheduling, duration, and type of work to be
40performed during a turnaround that may provide economic value
P7 1to any person other than the petroleum refinery employer, including
2the schedule submitted to the division pursuant to subdivision (b)
3of Section 7872. Upon completion of a turnaround, the dates on
4which that turnaround was conducted shall no longer be considered
5a trade secret.
No reimbursement is required by this act pursuant to
7Section 6 of Article XIII B of the California Constitution because
8the only costs that may be incurred by a local agency or school
9district will be incurred because this act creates a new crime or
10infraction, eliminates a crime or infraction, or changes the penalty
11for a crime or infraction, within the meaning of Section 17556 of
12the Government Code, or changes the definition of a crime within
13the meaning of Section 6 of Article XIII B of the California
14Constitution.
The Legislature finds and declares that Section 3 of
16this act, which adds Section 7873 to the Labor Code, imposes a
17limitation on the public’s right of access to the meetings of public
18bodies or the writings of public officials and agencies within the
19meaning of Section 3 of Article I of the California Constitution.
20Pursuant to that constitutional provision, the Legislature makes
21the following findings to demonstrate the interest protected by this
22limitation and the need for protecting that interest:
23The limitation upon the disclosure of information identified by
24refineries as trade secrets is necessary to protect proprietary
25business information of those refineries.
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