BILL ANALYSIS Ó AB 1420 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1420 (Salas) As Amended September 4, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 74-0 | (May 22, |SENATE: | 40-0 |(September 9, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: NAT. RES. SUMMARY: 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 (DOGGR) to review its gas pipeline regulations and update them, if needed. The Senate amendments: 1)Require the responsibility party to be liable for the costs incurred by the local health officer or his or her designee implementing the requirements of this bill. 2)Specify that providing resident assistance and reimbursement for local health officer expenses does not relieve a AB 1420 Page 2 responsible party from liability for damages. 3)Rather than requiring DOGGR to prioritize the identification and testing of all pipelines under its jurisdiction that are near sensitive areas, such as residential areas and schools, the amendments instead require DOGGR to review and evaluate, and update as appropriate, its existing regulations regarding all active gas pipelines that are four inches or less in diameter, located in sensitive areas, and that are 10 years old or older. 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. 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. FISCAL EFFECT: According to the Senate Appropriations Committee, 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. COMMENTS: According to DOGGR's regulations governing pipeline AB 1420 Page 3 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 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. This bill will require DOGGR to review its regulations to ensure the integrity and operation of all active gas pipelines that are four inches or less in diameter, located in sensitive areas, and that are 10 years old or older. 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. This bill attempts to require local health officers and DOGGR to work collaboratively from first detection of a leak to protect and provide assistance to residents. AB 1420 Page 4 Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092 FN: 0002347