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 ----------------------------------------------------------------- |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: SB 1300 Page 2 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. SB 1300 Page 3 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 SB 1300 Page 4 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 FN: 0004718