BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1420|
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                                   THIRD READING 


          Bill No:  AB 1420
          Author:   Salas (D), et al.
          Amended:  9/4/15 in Senate
          Vote:     21  

           SENATE NATURAL RES. & WATER COMMITTEE:  9-0, 6/23/15
           AYES:  Pavley, Stone, Allen, Hertzberg, Hueso, Jackson,  
            Monning, Vidak, Wolk

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  7-0, 7/15/15
           AYES:  Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/27/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  74-0, 5/22/15 - See last page for vote

           SUBJECT:   Oil and gas:  pipelines


          SOURCE:    Author


          DIGEST:  This bill requires a local health officer to take  
          specified actions when there is a leak in a gas pipeline and  
          requires the Division of Oil, Gas and Geothermal Resources to  
          review its gas pipeline regulations and update them, if needed.




          Senate Floor Amendments of 9/4/15 require the Division of Oil,  
          Gas and Geothermal Resources to review its regulations for  








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          certain small diameter active gas pipelines and update them, as  
          appropriate.


          ANALYSIS: 

          Existing law:

          1)Establishes the Division of Oil, Gas, and Geothermal Resources  
            (division) in the Department of Conservation as the state's  
            oil and gas regulator.

          2)Provides broad authority to the Oil and Gas Supervisor  
            (supervisor) who leads the division. 

          3)Requires the supervisor to supervise the operation,  
            maintenance, and removal or abandonment of tanks and  
            facilities (including pipelines) related to oil and gas  
            production within an oil and gas field, so as to prevent  
            damage to life, health, property, and natural resources, as  
            specified, among other requirements.

          4)Requires the division to prescribe minimum facility  
            maintenance standards for oil and gas production facilities,  
            including pipelines attendant to oil and gas production.   
            These standards include standards for leak detection.   
            Pipelines that are located within the lease areas of oil and  
            gas fields, and are integrally associated with oil and gas  
            production, are generally under the division's jurisdiction.

          5)Establishes local health departments, under the purview of the  
            local health officer and prescribes various duties for those  
            local health departments, including supervising remediation  
            when hazardous waste is released and enforcing statues  
            relating to public health.

          Existing division regulation:

          1)Requires a spill contingency plan for an oil/gas production  
            facility, as specified

          2)Requires significant gas or water leaks, among other  
            emergencies, as specified, to be reported to the appropriate  
            division







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          3)Requires pipeline inspection and testing of pipelines meeting  
            certain criteria as well as pipeline management plans supplied  
            by the pipeline operator.

          This bill requires a local health officer to take specified  
          actions when there is a leak in a gas pipeline and requires the  
          Division of Oil, Gas and Geothermal Resources to review its gas  
          pipeline regulations and update them, if needed.  Specifically,  
          this bill:

            1)  Requires the operator of an active gas pipeline under the  
              division's jurisdiction to promptly notify the division and  
              local health officer of a pipeline leak.

            2)  Requires a local health officer, in the event that an  
              active gas pipeline leak poses a risk to public health and  
              safety and the response to the leak has been inadequate to  
              work collaboratively with the division and the operator of  
              the pipeline, to:

               a)     Direct the responsible party to perform  
                 environmental testing in the contaminated area and  
                 disclose the results publicly, as specified, and

               b)     Use the test results to determine if a serious  
                 threat to public health and safety of the area's  
                 residents exists, and, if so, require the responsible  
                 party to provide assistance to those residents.

            3)  Requires the health officer to direct the responsible  
              party to notify all residents affected by the leak if the  
              leak poses a serious threat to public health and safety.

            4)  Requires that the responsible party is liable for the  
              costs incurred by the local health officer, as specified.

            5)  Specifies that certain payments by the responsible party  
              do not relieve the responsible party of liability for  
              damages and imposes other conditions, as specified, on the  
              responsible party.

            6)  Requires the division review, evaluate and update, if  
              appropriate, its regulations for certain active gas  







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              pipelines by January 1, 2018.

            7)  Requires the division to maintain a list of active gas  
              pipelines in sensitive areas.

            8)  Requires operators of active gas pipelines in sensitive  
              areas to provide to the division by January 1, 2018, an  
              up-to-date and accurate map of these pipelines and certain  
              other related information, as specified.

            9)  Requires the division to perform random spot checks of the  
              information provided in (8) about the active gas pipelines.

            10) Defines sensitive area to be an area:

               a)     with a building intended for human occupancy, such  
                 as a school, within 300 feet of an active gas pipeline,

               b)     where a leak from an active gas pipeline presents a  
                 significant potential threat to life, health, property or  
                 natural resources,

               c)     that contains a chronically-leaking active gas  
                 pipeline.

            11) Provides that the supervisor's existing authority remains  
              unaltered.

            12) Includes relevant legislative findings.

          Background
          
          In March 2014 after numerous delays, a gas leak from an  
          underground waste gas flare pipeline a few blocks from the Arvin  
          High School in Arvin was identified.  The pipeline's location  
          was misidentified in existing maps. By the time the leak was  
          identified, the leaking gas had saturated the soil and  
          contaminated eight homes.  Mandatory evacuations were ordered  
          and approximately three dozen people were displaced.  Explosive  
          levels of flammable gases were measured inside the homes tested.  


          The evacuated families and neighbors are reported to have  
          expressed considerable concern about the lack of information  







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          about the leak, the responsibilities of local and state  
          government to address it, potential health problems and delays  
          in notification.  The mandatory evacuation was lifted in October  
          2014, and the evacuees moved back in December 2014.  The owner  
          of the leaking pipeline paid for the residents to stay elsewhere  
          during spill remediation and paid for the remediation services.

          The leaky pipeline was reported to be on the order of 40 years  
          old, and after the leak was removed from service.  This pipeline  
          was apparently last inspected on August 8, 2011. There are  
          reported to be thousands of feet of similarly aging pipelines in  
          Kern County whose location may, in some instances, be uncertain  
          and that may also be inspected infrequently.  Kern County, where  
          Arvin is located, is the location of most of the state's oil and  
          gas production.

          Comments
          
          This bill responds to the Arvin gas leak. The type of pipeline  
          responsible for the leak in Arvin is not necessarily required to  
          be inspected on a fixed schedule under existing division  
          regulations.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Senate Appropriations Committee, the fiscal  
          impact (to a previous version of the bill) is:

          Ongoing costs of less than $1 million to the Oil, Gas, and  
          Geothermal Administrative Fund (special) for personnel and  
          equipment necessary to identify all pipelines in sensitive areas  
          and to perform required mechanical integrity tests as required.


          SUPPORT:   (Verified8/28/15)


          City of Arvin
          Center on Race, Poverty & the Environment
          Jose Gurrola, Mayor Pro Tem, City of Arvin
          Sierra Club California









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          OPPOSITION:   (Verified8/28/15)


          None received

          ARGUMENTS IN SUPPORT:  According to the author, "[a]s the [oil]  
          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 8 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."



          "Assembly Bill 1420 would require operators of a leak[ing]  
          pipeline to notify local health officials.  If it is determined  
          that the leak poses a risk to public health and safety then the  
          local health official will be required to work collaboratively  
          with [the division] and the owner and/or operator the pipeline."

          The Center on Race, Poverty & the Environment wrote, "[t]hough  
          residents took their own air samples, the results of the  
          "official" air testing were never disclosed to residents.  The  
          evacuated residents are now back home, but the leak and the  
          subsequent eight-month forced relocation has taken a heavy  
          financial, emotional, and health toll on the families."


          The Center continues, "AB 1420 will provide local agencies with  
          the authority they need to quickly respond to leaks in order to  
          protect residents' health, ensures that residents are informed  
          about the risks they face if a leak occurs nearby, and provides  
          for reimbursements to residents for costs associated with a  
          pipeline leak, including relocation costs."








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          ASSEMBLY FLOOR:  74-0, 5/22/15
          AYES:  Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Alejo, Jones, O'Donnell, Olsen, Waldron,  
            Weber

          Prepared by:Katharine Moore / N.R. & W. / (916) 651-4116
          9/8/15 16:24:58


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