BILL ANALYSIS Ó AB 1420 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1420 (Salas) - As Amended April 21, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Environmental Safety and Toxic | |5 - 0 | | |Materials | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill establishes a process for assessing the risk of leaks in gas pipelines and providing notification and assistance to AB 1420 Page 2 residents affected by a leak. Specifically, this bill: 1)Provides when a local health officer is notified of a leak in a pipeline regulated by the Division of Oil, Gas and Geothermal Resources (DOGGR), and the officer makes a determination that the leak poses a risk to public health, the officer shall do all of the following: a) Work collaboratively with DOGGR and the owner or operator of the pipeline. b) 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. c) 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: Increased initial costs of approximately $130,000 for DOGGR to identify and test specified pipelines in sensitive areas; AB 1420 Page 3 ongoing estimated annual costs of $120.000 (special fund). COMMENTS: 1)Rationale. In early 2014, a gas leak was detected beneath the community of Arvin, California. A total of 8 families were evacuated from their homes and were 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. According to the author, this incident demonstrated a lack of clarity in the law regarding the role of all involved entities. This bill establishes a clear process to follow to protect the health, safety, and environment in the event of gas leak. 2)Background. Under 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. The pipeline leak in Arvin was in an environmentally sensitive area, but the pipeline was less than four inches and therefore thousands of feet of pipeline had never been checked for leaks. According to DOGGR the last time the pipeline was inspected was August 8, 2011. AB 1420 Page 4 This bill requires DOGGR to prioritize the testing of all pipelines under DOGGR's jurisdiction in sensitive places, such as residents and schools. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081