BILL ANALYSIS Ó
SB 1300
Page 1
SENATE THIRD READING
SB 1300 (Hancock)
As Amended August 22, 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, |
| |Ridley-Thomas | |Ian Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Holden, Pan, Quirk, |
| | | |Ridley-Thomas, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Grove |Nays:|Bigelow, Jones, Linder, |
| | | |Wagner |
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SUMMARY : Enacts specified requirements related to refinery
"turnarounds." 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 specifies that turnaround schedules
submitted to DOSH and the scheduling, duration, layout,
configuration and type of work to be performed that may
provide economic value to anyone other than the petroleum
refinery employer shall be deemed information used to
fabricate, produce, or compound an article of trade or a
service having commercial value and which gives its users an
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opportunity to obtain a business advantage over competitors
who do not know or use it.
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 not release to the public 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)Provides that DOSH shall release specified information to the
public unless:
a) Within 30 days of receipt of notice of the request the
petroleum refinery employer files an action for a
declaratory judgment that the information is protected as a
trade secret and notifies DOSH; and
b) Within 120 days of receipt of notice of the request the
petroleum refinery employer obtains an order prohibiting
disclosure of the information to the public and notifies
DOSH.
13)States that, except as provided above, any information that
has been designated as a trade secret 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 the court shall award costs and reasonable
attorney's fees to the party that prevails in litigation. The
public agency shall not bear the court costs for any party
named in litigation.
15)Provides that this bill does not prohibit the exchange of
trade secrets between local, state or federal public agencies
when those trade secrets are relevant and necessary to the
exercise of their jurisdiction.
16)Provides that an officer or employee of DOSH (including a
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contractor with DOSH and an employee of the contractor) who
knowingly and willfully discloses trade secret information, as
specified, is guilty of a misdemeanor.
17)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
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: 0005283
SB 1300
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