BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1300
                                                                  Page  1


          SENATE THIRD READING
          SB 1300 (Hancock)
          As Amended  August 18, 2014
          Majority vote 

           SENATE VOTE  :24-9  
           
           LABOR & EMPLOYMENT     5-1      APPROPRIATIONS      13-4        
           
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          |Ayes:|Roger Hernández, Alejo,   |Ayes:|Gatto, Bocanegra,         |
          |     |Chau, Holden,             |     |Bradford, Ian Calderon,   |
          |     |Ridley-Thomas             |     |Campos, Donnelly, Eggman, |
          |     |                          |     |Gomez, Holden, Pan,       |
          |     |                          |     |Quirk, Ridley-Thomas,     |
          |     |                          |     |Weber                     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Grove                     |Nays:|Bigelow, Jones, Linder,   |
          |     |                          |     |Wagner                    |
           ----------------------------------------------------------------- 
           SUMMARY  :  Enacts specified requirements related to refinery  
          "turnarounds" and related occupational safety and health  
          enforcement costs.  Specifically,  this bill  :   

          1)Defines "turnaround" as a planned, periodic shutdown (total or  
            partial) of a refinery process unit or plant to perform  
            maintenance, overhaul, and repair operations and to inspect,  
            test, and replace process materials and equipment.

          2)Excludes from the definition of "turnaround" unplanned  
            shutdowns that occur due to emergencies or other unexpected  
            maintenance matters in a process unit or plant, or routine  
            maintenance, as specified.

          3)Requires a refinery employer to submit to the Division of  
            Occupational Safety and Health (DOSH) a full schedule of  
            planned turnarounds for all affected units every September 15  
            for the following calendar year.

          4)Requires a petroleum refinery employer, at the request of  
            DOSH, to provide on-site access and to allow DOSH to review  
            specified documentation relating to a planned turnaround at  
            least 60 days prior to the shutdown, including:








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             a)   All corrosion reports and risk-based inspection reports  
               generated since the last turnaround.

             b)   Process hazard analyses generated since the last  
               turnaround.

             c)   Boiler permit schedules.

             d)   Management of change records related to repairs, design  
               modifications and process changes.

             e)   Work orders scheduled to be completed in the planned  
               turnaround.

             f)   All temporary repairs made since the last turnaround.

             g)   Notification and description of all repairs, design  
               modifications, or process changes described in a corrosion  
               report, risk-based inspection report, process hazard  
               analysis, boiler permit schedule, management of change  
               record, work order, or other specified documents that the  
               petroleum refinery employer has deferred to a subsequent  
               operational period or turnaround.

          5)Requires a petroleum refinery employer to submit notification  
            of any changes to the information or supporting documents  
            reviewed by DOSH at least 30 days before a planned turnaround,  
            at the request of DOSH.

          6)Requires a petroleum refinery employer, at DOSH's request, to  
            provide physical copies, or, at DOSH's discretion, electronic  
            copies if available, of specified documentation.

          7)Authorizes DOSH, by agreement with a petroleum refinery  
            employer, to modify the reporting period as to any individual  
            item of information.

          8)Defines "trade secret" to mean a trade secret as defined under  
            specified existing law and any other information regarding the  
            scheduling, duration, and type of work to be performed during  
            a turnaround that may provide economic value to any person  
            other than the petroleum refinery employer.









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          9)Provides that if a petroleum refinery employer believes that  
            information submitted to DOSH may involve the release of a  
            trade secret, it shall nevertheless provide this information  
            to DOSH.

          10)Requires DOSH to protect from disclosure any information  
            designated as a trade secret, except as provided.

          11)Provides that, upon the receipt of a request for the release  
            of information to the public that includes information that is  
            a trade secret, DOSH shall notify the petroleum refinery  
            employer in writing.

          12)Requires DOSH to release the requested information to the  
            public 120 days or more after the receipt by the petroleum  
            refinery employer of the aforementioned notice, unless, prior  
            to the expiration of the 120-day period, the petroleum  
            refinery employer files an action in the appropriate court for  
            a specified declaratory judgment.

          13)States that, except as provided above, any information that  
            has been designated as a trade secret is confidential and  
            shall not be released to the public, except that such  
            information may be disclosed to other officers or employees of  
            DOSH, as specified.

          14)Provides that this bill does not prohibit the exchange of  
            properly designated trade secrets between local, state or  
            federal public agencies when those trade secrets are relevant  
            and necessary to the exercise of their jurisdiction.

          15)Provides that an officer or employee of DOSH (including a  
            contractor with DOSH and an employee of the contractor) who  
            knowingly and willfully discloses confidential information, as  
            specified, is guilty of a misdemeanor.

          16)Makes related and conforming changes.

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, the Department of Industrial Relations estimates  
          first year costs of approximately $765,000 (special funds) and  
          second year costs of approximately $705,000 (special funds) for  
          three positions to evaluate technical information provided by  
          the refineries and for two counsel positions to assist with  








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          trade secrecy workload.  

           COMMENTS  :  According to the author, oil refineries have no  
          obligation under state law to report their "turnaround" schedule  
          to any part of state or local government.  Nor are they required  
          to disclose important information, such as repair schedules or  
          corrosion reports.  The author argues that given the importance  
          of "turnarounds," both to the refinery itself as well as the  
          public safety risk they pose, allowing DOSH to know this  
          information may allow it to conduct targeted inspections of  
          refinery facilities.  This bill would require petroleum  
          refineries to annually report their schedule for "turnarounds"  
          to DOSH and would require them to allow DOSH to review  
          documentation on refinery safety and infrastructure. 

          Proponents argue that in the case of Chevron, had DOSH known  
          that Chevron had not inspected the section of piping that caused  
          the explosion, it is possible that DOSH could have done their  
          own inspection.  Doing so, they argue, could have prevented an  
          incident that threatened public health, affected the  
          environment, and imposed severe financial costs. 

          This bill is very similar to SB 438 (Hancock) of 2013.  SB 438  
          was held in the Assembly Appropriations Committee.


           Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 


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