BILL ANALYSIS Ó
AB 1903
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Date of Hearing: March 30, 2016
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Mike Gatto, Chair
AB 1903
(Wilk) - As Introduced February 11, 2016
SUBJECT: Aliso Canyon gas leak: health impact study
SUMMARY: Requires the California Public Utilities Commission
(CPUC) and Department of Public Health to prepare and publish
biennial studies on long term health impacts related to the gas
leak at the Aliso Canyon Gas Storage Facility. Specifically,
this bill:
1)Requires biennial studies on long term health impacts related
to the gas leak at the Aliso Canyon Gas Storage Facility for
those persons who resided within a 12-mile radius of the Aliso
Canyon Natural Gas Storage Facility during a specified time
period.
2)Requires the study to include an evaluation of the impact on
residents due to exposure to chemicals, including, but not
limited to, methane, benzene, and mercaptan.
3)Requires the study to be published biennially beginning
January 1, 2018, through 2032.
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4)Specifies the intent of the Legislature to pay for the cost of
these studies from any monies collected from penalties
assessed against the Southern California Gas Company
(SoCalGas).
5)Sunsets the statute on January 1, 2033.
EXISTING LAW:
1)Authorizes the CPUC to regulate private corporations that own,
operate, control, or manage a line, plant, or system for the
transportation or the production, generation, transmission, or
furnishing of heat, power, or storage directly or indirectly
to or for the public. (California Constitution, Article XII,
Section 3)
2)Authorizes the CPUC to regulate gas corporations, including
underground storage. (Public Utilities Code Sections 216(a),
221, 222, 227, and 228)
3)Authorizes the CPUC to require that utility charges are just
and reasonable and requires utilities to maintain facilities
as necessary to promote safety, health, comfort, and
convenience of patrons, employees, and the public. (Public
Utilities Code Section 451)
4)Authorizes the CPUC to do all things, whether specifically
designated in this part or in addition thereto, which are
necessary and convenient in the exercise of such power and
jurisdiction. (Public Utilities Code Section 701)
5)Establishes that the CPUC is responsible for regulating and
enforcing intrastate gas pipeline transportation and pipeline
facilities pursuant to Chapter 601 (commencing with Section
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60101) of Subtitle VIII of Title 49 of the United States Code,
including the development, submission, and administration of a
state pipeline safety program certification for natural gas
pipelines pursuant to Section 60105 of that chapter. (Public
Utilities Code Section 955(b))
6)Requires gas storage facilities to receive a Certificate of
Public Convenience and Necessity (CPCN) before constructing a
gas storage facility. Requires that the CPUC grant a CPCN on
the grounds that the present or future public convenience and
necessity requires or will require the gas storage facility.
(Public Utilities Code Section 1001, et seq.)
7)Authorizes the CPUC to investigate, as part of the rate
proceeding for any gas corporation, impediments to the
in-state production and storage of natural gas and encourage
in-state production or storage of natural gas unless the CPUC
finds it likely that it will result in consequences adverse to
the interests of gas customers. (Public Utilities Code Section
1001, et seq.)
1)Directs the Department of Conservation, Division of Oil, Gas
and Geothermal Resources (DOGGR) to:
b) Supervise the drilling, operation, maintenance, and
abandonment of wells and the operation, maintenance, and
removal or abandonment of tanks and facilities attendant to
oil and gas production so as to prevent, as far as
possible, damage to life, health, property, and natural
resources; damage to underground oil and gas deposits from
infiltrating water and other causes; loss of oil, gas, or
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reservoir energy, and damage to underground and surface
waters suitable for irrigation or domestic purposes by the
infiltration of, or the addition of, detrimental
substances.
c) Supervise the drilling, operation, maintenance, and
abandonment of wells so as to permit the owners or
operators of the wells to utilize all methods and practices
known to the oil industry for the purpose of increasing the
ultimate recovery of underground hydrocarbons and which, in
the opinion of the supervisor, are suitable for this
purpose in each proposed case.
d) Encourage the wise development of oil and gas resources
to best meet oil and gas needs in this state. (Public
Resources Code Section 3106)
1)Requires the Department of Conservation to maintain
surveillance over underground gas storage facilities to insure
that the original reserves are not lost, that drilling of new
wells is conducted properly, and that no damage occurs to the
environment by reason of injection and withdrawal of gas.
(Public Resources Code Section 3403.5)
FISCAL EFFECT: Unknown.
COMMENTS:
1)Author's Statement: "Residents of Porter Ranch have many
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questions as it relates to the Aliso Canyon facility gas leak.
One question in particular was: What are the long-term health
impacts?
"In order to address the question, Assembly Bill 1903 would
require the [CPUC] and Department of Public Health to study
the long-term health impacts of the Aliso Canyon gas storage
facility gas leak."
2)Background: A leak was discovered on October 23, 2015, at a
natural gas well located at the Aliso Canyon storage facility,
owned and operated by SoCalGas. SoCalGas made several
unsuccessful well "kill" attempts. On December 4, 2015,
SoCalGas began drilling a relief well to intercept and cap the
leaking well near the bottom of the well. Through November and
December 2015 DOGGR and the CPUC issued orders to establish a
moratorium on natural gas injection at Aliso Canyon, provide
data, retain evidence, and track costs of the effort to plug
the well. The Air Resources Board began collecting and
publishing data on methane emissions caused by the leak.
On January 6, 2016, the Governor issued a Proclamation<1>
directing various state entities to oversee SoCalGas' actions
to stop the leak, protect public safety, ensure accountability
and strengthen oversight of natural gas storage facilities.
Relevant to this bill, portions of the Governor's
Proclamation:
a) Ordered DOGGR to continue its prohibition against
SoCalGas injecting any gas into the Aliso Canyon Storage
Facility until a comprehensive review of the safety of the
storage wells and the air quality of the surrounding
community utilizing independent experts is completed; and
b) Tasked the California Energy Commission in coordination
with CPUC to maintain energy reliability during this
incident.
--------------------------
<1> https://www.gov.ca.gov/news.php?id=19264
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On February 11, 2016, SoCalGas announced it had temporarily
controlled the flow of natural gas at the leaking well and
will continue to work in coordination with DOGGR and other
agencies during the process of permanently sealing the well.
3)Exposure Period for the Study: The current version of this
bill establishes a study group to include persons who resided
within a 12-mile radius between October 23, 2015, and an
unspecified date. The leaking well was permanently sealed on
February 12, 2016. DOGGR has ordered SoCalGas to conduct a
safety review of the wells at Aliso Canyon.
Following the sealing of the leaking well, the Los Angeles
County Department of Public Health reported<2> that while a
reduction in the number of odor reports from residents was
observed, "the measured levels of methane have occasionally
been elevated above what would be expected in the area,
suggesting there could be other local sources of natural gas
being released. This could explain the occurrence of
intermittent odors and recurring symptoms experienced by some
residents upon returning to their homes. Further study is
required to understand this phenomenon."
The Los Angeles Department of Public Health also reports that
while many of the temporarily relocated residents have
re-occupied their homes without incident, some residents are
reporting symptoms, including headache; stomach upset;
dizziness; and eye, nose, and skin irritation, sometimes in
the absence of odors after the well was sealed.
The author may wish to consider an amendment to include
persons who resided within the 12-mile radius for the period
of October 23, 2015, and the date when DOGGR determines the
safety review is complete.
--------------------------
<2> http://file.lacounty.gov/bc/q1_2016/cms1_240709.pdf
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4)Public Health Experts involved with Aliso Canyon Health
Assessment: The Office of Environmental Health Hazard
Assessment (OEHHA) has been tasked by the Governor's Office to
convene an independent panel of scientific and medical experts
to review public health concerns stemming from the gas leak
and evaluate whether additional measures are needed to protect
public health beyond those already put in place. The panel of
experts has been formed. It is comprised of eight recognized
experts from six universities within the University of
California system. The panel includes experts in medicine,
toxicology, epidemiology and exposure sciences.
The author may wish to consider an amendment to instead direct
OEHHA to prepare the biennial studies .
5)Penalties pay for the studies: The current version of the
bill declares legislative intent to have the CPUC order
SoCalGas to pay for the studies from penalties assessed
against SoCalGas. The CPUC has not yet completed its
investigation of the cause of the leak nor has it opened a
proceeding on the subject. It can take many years before a
proceeding reaches a conclusion. As a result, the outcome of
the proceeding and whether or not there will be penalties, or
how much those penalties will be, can only be speculated at
this point.
In order to ensure that the studies are funded, regardless of
the outcome of a future proceeding, the author may wish to
consider an amendment to direct the CPUC to require SoCalGas
to fund the studies and that the funding not be paid by
ratepayers
6)Sunset date: This bill currently sunsets the study in 2032.
The author may wish to consider an amendment to sunset the
study in 2028, which would allow for a 10-year study period
and five reports. If the studies indicate a need for ongoing
studies, this sunset can be extended at a later date.
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7)Double referred: This bill is double referred to the
Assembly Health Committee.
8)Suggested amendments: The author may wish to consider the
following amendments:
a) Replace the Department of Public Health and instead task
the OEHHA with the requirement to perform the studies.
b) Specify the persons to be studied to be those residents
who were within a 12-mile radius for the period between
October 23, 2015, and the date when DOGGR determines the
well safety review is complete.
c) Require the CPUC to order SoCalGas to fund the studies
and specify that the CPUC cannot approve a request by
SoCalGas to collect monies for these studies from
ratepayers.
d) Reduce the period of the study to 10 years and reduce
the sunset of the statute accordingly.
Section 911.3 is added to the Public Utilities Code, to read:
911.3. (a) The commission and the State Department of Public
Health jointly The commission shall authorize a study of the
long-term health impacts by the Office of Environmental Health
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Hazard Assessment of the significant natural gas leak from the
Aliso Canyon natural gas storage facility located in the
County of Los Angeles that started approximately October 23,
2015. The study shall include, but is not limited to, both of
the following:
(1) An investigation of the impact of the natural has gas leak
on the health of persons who resided within a 12-mile radius
of the Aliso Canyon natural gas storage facility in the County
of Los Angeles between October 23, 2015, and the date when the
Department of Conservation Supervisor of the Division of Oil
Gas and Geothermal Resources has determined that its gas well
safety review pursuant to Order 1109, issued March 4, 2016, is
complete.
(2) An evaluation of the impact on residents due to exposure
to chemicals, including, but not limited to, methane, benzene,
and mercaptan.
(b) (1) The commission shall publish and transmit the report
by the Office of Environmental Health Hazard Assessment and
its ongoing findings to the appropriate policy committees of
the Legislature on a biennial basis, on or before January 1 of
every even-numbered year, from 2018 until 2032 2028 .
(2) The report shall be submitted in compliance with Section
9795 of the Government Code.
(c) It is the intent of the Legislature that the study
conducted pursuant to subdivision (a) should be paid for out
of moneys collected from any penalties assessed against
Southern California Gas Company pursuant to this part in
regards to the natural gas leak at the Aliso Canyon natural
gas storage facility located in the County of Los Angeles.
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(1) The commission shall order Southern California Gas Company
to pay for studies conducted pursuant to subdivision (a).
(2) The commission shall not allow Southern California Gas
Company to recover the cost of these studies conducted
pursuant to subdivision (a) in any rate approved by the
commission.
(3) If the commission penalizes Southern California Gas
Company for its responsibilities related to the natural gas
leak at the Aliso Canyon Natural Gas Storage Facility it may
include the costs of these studies conducted pursuant to
subdivision (a) in any penalty assessment.
(d) This section shall remain in effect only until January 1,
2033 2029 , and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2033 2029 ,
deletes or extends that date.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
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Opposition
None on file
Analysis Prepared by:Sue Kateley / U. & C. / (916) 319-2083