BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1420| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 1420 Page 2 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 AB 1420 Page 3 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 AB 1420 Page 4 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 AB 1420 Page 5 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 AB 1420 Page 6 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." AB 1420 Page 7 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 **** END ****