BILL ANALYSIS Ó AB 1420 Page 1 Date of Hearing: April 27, 2015 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair AB 1420 Salas - As Amended April 21, 2015 SUBJECT: Oil and gas: pipelines SUMMARY: Requires a local health officer, if notified of a leak in a pipeline regulated by the Department of Conservation's Division of Oil, Gas and Geothermal Resources (DOGGR), to direct the responsible party to test soil, air, and water; and, based on the test results, make an assessment of the risk to the public. If the leak poses a risk to the public, requires the local health officer to notify residents affected by the leak of the threat and provide assistance to the public. EXISTING LAW: 1)Requires DOGGR to prescribe minimum facility maintenance standards for oil and gas production facilities, including pipelines that are not under the jurisdiction of the State Fire Marshal. 2)Requires minimum facility maintenance standards to include standards for leak detection. AB 1420 Page 2 3)Establishes local health departments under the purview of the local health officer. Prescribes various duties for those local health departments, including supervising remediation when hazardous waste is released and enforcing statutes relating to public health. THIS BILL: 1)If the local health officer is notified of a leak in a pipeline that is regulated by DOGGR, and the local health officer makes a determination that the leak poses a risk to public health, the officer shall, working collaboratively with the division and the owner or operator of the pipeline, do both of the following: a) Direct the responsible party to test the soil, air, and water in the affected area for contamination caused by the leak and disclose the results of the tests to the public. b) Make a determination, based on the result of the tests, on whether the leak poses a serious threat to the public health and safety of residents affected by the leak, and provide assistance to those residents. 2)Requires DOGGR to prioritize the identification and testing of all pipelines under its jurisdiction that are near sensitive areas, such as residential areas and schools. 3)Requires the operator of the pipeline to promptly notify the local health officer and DOGGR of a leak. FISCAL EFFECT: Unknown AB 1420 Page 3 COMMENTS: 1)Author's statement. California is the fourth largest oil and gas producing state and natural resources extraction is an important contributor to the state's economy. Most oil production in California occurs in Kern County in the San Joaquin Valley. Oil also is produced from wells in portions of Los Angeles County and Orange County and on or near the central coast near Santa Barbara. As the industry continues to be a fixture in California, the safety of workers, communities, and the environment should remain a top priority. Despite precautions taken, incidents occur in which immediate action is needed to protect the health, safety, and environment of nearby communities. In early 2014, a gas leak was detected beneath the community of Arvin, California. A total of eight AB 1420 Page 4 families were evacuated from their homes and unable to return for several months. Affected residents claimed to have smelled gas, and complained of nosebleeds, headaches, coughing, and dizziness. Once the leak was detected, affected residents were unclear where to get resources and information. This incident demonstrated a lack of clarity in the law regarding the role of all involved entities. AB 1420 will ensure that clear guidelines exist should another similar incident occur. 2)Gas leaks and DOGGR. According to DOGGR's regulations governing pipeline testing, operators are required to visually inspect all aboveground pipelines for leaks and corrosion at least once a year. For underground urban pipelines that are older than 10 years, over 4 inches in diameter, and are in environmentally sensitive areas, testing every two years is required. A county board of supervisors, a city council, or a state agency may petition the Supervisor of DOGGR to include other pipelines as environmentally sensitive. DOGGR regulations also require an operator to promptly report significant gas leaks to the appropriate DOGGR district office. When asked about its responsibility for the March 2014 Arvin gas leak, the Supervisor stated that DOGGR is responsible for the pipeline that leaked. However, the pipeline "is not subject to the periodic testing required of other, larger capacity line, or lines that carry liquid hydrocarbons." The pipeline leak in Arvin was in an environmentally sensitive AB 1420 Page 5 area, but the pipeline was less than four inches and therefore thousands of feet of pipeline have never been checked for leaks. DOGGR stated the last time the pipeline was inspected was August 8, 2011. AB 1420 will require DOGGR to prioritize the testing of all pipelines under DOGGR's jurisdiction in sensitive places, such as residents and schools. 3)Coordination. DOGGR first learned of the leak on March 12 from the City of Arvin, which had been working with Southern California Gas to determine the source of the gas. DOGGR's staff met with Petro Capital Resources (PCR) that same day and after further examination determined that the mapping of PCR's pipelines was incorrect and it was a PCR pipeline that was leaking. On March 13, PCR shut down the gas line. However, it was not until March 17 and 18 that testing revealed that there was a high level of flammable gas outside of homes. The county then issued a mandatory evacuation. AB 1420 attempts to require local health officers and DOGGR to work collaboratively from first detection of a leak to protect and provide assistance to residents. 4)Related legislation. AB 1501 (Rendon) requires air districts to establish an emission standard for methane from well stimulation treatment and other petroleum extraction facilities. The emission standard must include a permit requirement and consideration of the effect production facilities have on adjacent vulnerable populations. AB 1501 also requires the Air Resources Board or a local air district to install monitoring stations near any approved well stimulation site and other petroleum extraction facilities to monitor for 12 different chemicals. This bill will also be heard by this committee on April 27. 5)Double referral. This bill is double referred to the AB 1420 Page 6 Environmental Safety and Toxic Materials Committee. REGISTERED SUPPORT / OPPOSITION: Support None on file Opposition None on file Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092