BILL ANALYSIS Ó
AB 864
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
864 (Williams and Burke)
As Amended September 4, 2015
Majority vote
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|ASSEMBLY: | |(May 18, 2015) |SENATE: |32-5 |(September 10, |
| | | | | |2015) |
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(vote not relevant)
Original Committee Reference: NAT. RES.
SUMMARY: Requires pipelines to have the best available
technology to reduce the amount of oil released in an oil spill
to protect state waters and wildlife.
The Senate amendments delete the Assembly version of the bill,
relating to solid waste facilities, and instead:
1)Require, by January 1, 2018, that any new or replacement
pipeline near environmentally and ecologically sensitive areas
in the coastal zone shall use best available technology in
order to reduce the amount of oil released in a spill to the
environment.
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2)Specify that best available technology include, but is not
limited to, installation of leak detection technologies,
automatic shutoff systems, remote controlled sectionalized
block valves, or any combination of these technologies based
on a risk analysis conducted by the operator.
3)Require, by July 1, 2018, that any operator of an existing
pipeline near environmentally and ecologically sensitive areas
in the coastal zone submit a plan to retrofit these pipelines
with best available technology, and complete the retrofits by
January 1, 2020.
4)Require the Office of the State Fire Marshal (SFM) to adopt
regulations by July 1, 2017 to implement this bill. Requires
the regulations to include all of the following:
a) A definition of automatic shutoff systems;
b) A process to assess the adequacy of the operator's risk
analysis;
c) A process by which an operator is allowed to request
confidential treatment of information; and,
d) A determination of how near an environmentally and
ecologically sensitive area a pipeline must be to subject
to be the requirements of the bill.
5)Require SFM to consult with the Office of Spill Prevention and
Response (OSPR) about potential impacts to state water and
wildlife from oil spills.
6)Require an operator to notify SFM of any new construction of
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retrofit of a pipeline in waters near environmentally and
ecologically sensitive areas in the coastal zone.
EXISTING LAW, pursuant to the Elder California Pipeline Safety
Act of 1981 (Elder Act):
1)Requires the SFM to adopt regulations in compliance with the
federal law relating to hazardous liquid pipeline safety.
2)Requires any new pipeline constructed after January 1, 1984,
and which normally operates under conditions of constant flow
and pressure, to have a means of leak detection and cathodic
protection that the SFM determines is acceptable.
3)Defines "pipelines" as including every intrastate pipeline
used to transport hazardous liquid substances or highly
volatile liquid substances, as provided.
4)Requires SFM to study the spacing of valves which would limit
spillage into standard metropolitan statistical areas and
environmentally sensitive areas from surrounding higher
ground. Specifics the following:
a) Requires SFM to adopt regulations to require the
addition of valves on existing pipelines if any existing
pipeline system's valve spacing is deemed insufficient to
protect California's uniquely situated population centers
and environmental resources.
b) Authorizes SFM to adopt regulations to require new
valves on new, existing, or replacement pipelines as
necessary to protect the public interest if the study
indicates that guidelines for valve spacing do not, in the
SFM's opinion, adequately protect these population centers
and environmental resources.
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FISCAL EFFECT: According to the Senate Appropriations
Committee, initial costs of $1.69 million followed by $1.37
million annually ongoing to the California Hazardous Liquid
Pipeline Safety Fund (special) for SFM to develop and implement
regulations on best achievable technology.
COMMENTS: On May 19, 2015, a pipeline owned by Houston-based
Plains All American Pipeline ruptured, spilling approximately
101,000 gallons to 140,000 gallons of heavy crude oil along the
Gaviota coast in Santa Barbara County. It is estimated that
21,000 gallons of the oil went down a storm culvert onto cliffs
and into the Pacific Ocean. The immediate oil spill area
stretched over nine miles of California coastline, and tar balls
have washed up as far as one hundred miles from the spill site.
The pipeline that ruptured, known as Line 901, is a common
carrier pipeline that transports oil that was produced on
platforms offshore in both state and federal waters to be
refined in Santa Maria or Kern County. On May 20, 2015, Governor
Brown issued an emergency proclamation for Santa Barbara County
due to the effects of the oil spill. Refugio State Beach and El
Capitan State Beach were closed for over a month because of the
oil spill. Fisheries from Canada de Alegria to Coal Oil Point
were also closed for over a month, which negatively impacted
several commercial fisheries - including lobster, crab, shrimp,
halibut, urchin, squid, whelk, and sea cucumber. The Oiled
Wildlife Care Network recovered 195 dead birds and 106 dead
marine mammals from the spill. Dead marine mammals recovered
included dolphins, sea lions, and seals. Sensitive habitat of
the California Least Tern and the Snowy Plover, birds protected
by the Endangered Species Act, has been damaged. Hotels, tour
outfits, and other tourism businesses have experienced
cancelations and decreased bookings due to the spill. More than
1,000 workers from local, state and federal agencies worked to
clean up the beaches. Over 14,000 gallons of oily water have
been recovered to date. News reports indicate the pipeline was
potentially severely corroded where it ruptured. The spill and
events leading up to the spill remain under investigation. Line
901 was not equipped with automatic shut off technology that is
installed on other pipelines of this size in Santa Barbara
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County.
The Elder Act regulates intrastate pipelines and the vast
majority of those pipelines carry petroleum based hazardous
liquids. There are a small number of intrastate pipelines that
carry carbon dioxide. SFM estimates that there may be 2,000
miles of intrastate pipeline located within State waters and
coastlines. While Line 901 has never shipped oil out of state,
it has been classified by the Pipeline and Hazardous Materials
Safety Administration (PHMSA) as an interstate pipeline, which
is not subject to the Elder Act. However, a September 8, 2015
letter to the author of this bill from the President of Plains
All American stated, "Plains would be willing to engage in a
dialogue regarding a potential reclassification of Lines 901 and
903 to state jurisdiction." Plains All American could make a
request to PHMSA to reclassify their pipelines to intrastate
pipelines, which would make them subject to the requirements of
this bill.
Analysis Prepared by:
Michael Jarred / NAT. RES. / (916) 319-2092 FN:
0002373