BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1904


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          Date of Hearing:  March 29, 2016


           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS


                                  Luis Alejo, Chair


          AB 1904  
          (Wilk) - As Introduced February 11, 2016


          SUBJECT:  Hazardous materials:  natural gas odorants


          SUMMARY:  Requires the Office of Environmental Health Hazard  
          Assessment (OEHHA) to evaluate and report on natural gas  
          odorants and potential alternatives. Specifically, this bill:  


             1)   Requires OEHHA to provide a report to the Legislature  
               that includes:


                  a.        An assessment of the danger of odorants  
                    currently used in natural gas storage facilities to  
                    public health and safety and the environment.


                  b.        Alternative odorants identified for possible  
                    use in natural gas storage facilities that pose a  
                    lower risk to public health and safety and the  
                    environment.


             2)   Requires OEHHA to evaluate the following issues for  
               every alternative odorant identified:









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                  a.        The feasibility of using the alternative  
                    odorant in natural gas storage facilities. 


                  b.        Any risks of using the alternative odorant,  
                    including, but not limited to, the risks of unwanted  
                    chemical reactions and increased corrosion. 


                  c.        The effectiveness of the alternative odorant  
                    at warning of a natural gas leak.


             3)   Sunsets the provisions of the bill on January 1, 2021. 


             4)   Establishes this act as an urgency statute in order to  
               immediately begin assessing the danger of odorants in  
               natural gas. 


          EXISTING LAW:  


          UNDER FEDERAL LAW:


             1)   Requires, pursuant to the Pipeline Safety Regulations of  
               the Department of Transportation, that a combustible gas in  
               a distribution line must contain a natural odorant or be  
               odorized so that at a concentration in air of one-fifth of  
               the lower explosive limit, the gas is readily detectable by  
               a person with a normal sense of smell. (49 Code of Federal  
               Regulation (CFR) 192, section 192.625)

             2)   Prohibits the odorant in combustible gases from being  
               deleterious to persons, materials, or pipe. (49 CFR 192,  
               section 192.625(c)(1))








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             3)   Prohibits the products of combustion from the odorant of  
               being toxic when breathed or from being corrosive or  
               harmful to those materials to which the products of  
               combustion will be exposed. (49 CFR 192, section  
               192.625(c)(2))



          UNDER STATE LAW:


             1)   Establishes reporting requirements for reports requested  
               by law to be submitted by a state or local agency to the  
               Legislature. (Government Code § 9795)


             2)   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 § 3403.5)


             3)   Requires all combustible gases transported by utility  
               pipeline to have a distinctive odor of sufficient intensity  
               so that the presence of the gas may be detected down to the  
               concentration in air of not over one-fifth the lower limit  
               of combustibility. (Public Utilities Commission (PUC)  
               Decision No. 61269 and Decision No. 61355, Case No. 6352,  
               1960 (Case No. 6352), Section 208.1)













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             4)   Requires, whenever necessary to maintain this level of  
               intensity, a suitable odorant to be added in accordance  
               with the following specifications:
                  a)        Odorants in the concentrations used shall be  
                    harmless to humans (nontoxic); 



                  b)        Noncorrosive to steel, iron, brass, copper and  
                    leather; and, 



                  c)        Nonsoluble in water to an extent greater than  
                    2.5 parts by weight of odorant to 100 parts by weight  
                    of water. (Case No. 6352, Section 208.2)



             5)   Requires each utility to make periodic checks to  
               determine that a proper level of odorization is maintained  
               throughout the pipeline system. (Case No. 6352, Section  
               208.4)
          FISCAL EFFECT:  Unknown. 


          COMMENTS:  


          Need for the bill: According to the author, "On October 23,  
          2015, the Southern California Gas Company (SoCal Gas) discovered  
          a gas leak at their Aliso Canyon facility affecting the Porter  
          Ranch and the surrounding communities. For months, there have  
          been widespread reports in the affected area of individuals with  
          debilitating headaches, bloody noses, and other adverse physical  
          reaction?

          "As the leak continued, various local, county, and state  
          agencies got involved to attempt to mitigate as much damage as  








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          possible. Eventually, the Governor declared a state of emergency  
          and declared that all state agencies are to use all necessary  
          resources to "ensure a continuous and thorough response to this  
          incident?

          "While various state and local agencies are working on fixing  
          the situation in the area, this bill addresses the root cause  
          studying the odorants, which are believed to have caused many of  
          the adverse health effects. Odorants are added to stored natural  
          gas as a safety precaution in order to be able to detect gas  
          leaks. This study will help prevent future similar situations."



          Aliso Canyon Gas Storage Facility:  The Aliso Canyon Gas Storage  
          Facility is owned by the Southern California Gas Company  
          (SoCalGas) and is located in Los Angeles County just north of  
          Porter Ranch, California. SoCalGas is a gas corporation  
          regulated by the California Public Utilities Commission (PUC).





          On October 23, 2015, SoCalGas detected a methane gas leak at its  
          Aliso Canyon Gas Storage Facility at Well # SS-25. The Aliso  
          Canyon Gas Storage Facility gas leak was declared a State  
          Emergency on January 6, 2016, by Governor Jerry Brown. 


          Following an initial evaluation and several attempts to stop the  
          leak, SoCalGas began drilling a relief well in order to plug the  
          leaking well. The initial attempts to plug the leak failed to  
          stop the leak, and the leak lasted 112 days before being  
          permanently capped on February 18, 2016. 












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          A study in the journal Science confirmed that the methane gas  
          leak was not only the largest in California's history, but also  
          the second largest in the nation. According to the lead author  
          of the study, as much as 60 metric tons of methane was spewing  
          from the leak each hour.





          The leak displaced nearly 2,290 households, requiring families  
          to move into temporary housing and hotels provided by SoCalGas. 





          Follow the stinky smell: Natural gas is an odorless, flammable  
          gas consisting primarily of methane. It also contains hydrogen  
          sulfide, sulfur dioxide, benzene, toluene, ethylbenzene, and  
          xylenes in small amounts. Mercaptan is added to natural gas in  
          order to aid in the detection of natural gas by smell.   
          Mercaptan is an organic substance that is one of the chemicals  
          responsible for bad breath and flatulence.  Natural gas  
          odorization is a critical additive to protect the public from a  
          natural gas leak. The odor must provide a warning that prompts  
          the public to take action when detected.





          Health impacts of gas leak: The natural gas stored in the Aliso  
          Canyon Gas Storage Facility, like all natural gas provided for  
          domestic use, contains added chemicals to enable detection of  
          leaks by smell.  The odorants in the Aliso Canyon natural gas  
          are primarily tert-butyl mercaptan and tetrahydrothiophene,  
          which are added to the natural gas in small amounts. Mercaptans  








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          notably give natural gas its distinctive "rotten egg" smell. 





          As a result of the gas leak and mercaptan exposure, residents  
          complained about varying health impacts. Complaints ranged from  
          nosebleeds to nausea, headaches, and eye and throat irritation. 





          SoCalGas has been quoted as saying, "Scientists agree natural  
          gas is not toxic and that its odorant is harmless at the minute  
          levels at which it is added to natural gas."  According to the  
          Governor's Office of Emergency Services, based on available  
          information, mercaptans do not show an impact to long term  
          health, especially at the levels present in Porter Ranch. 





          OEHHA evaluated air sample data collected by SoCalGas at several  
          locations in the Porter Ranch neighborhood near the Aliso Canyon  
          Gas Storage Facility and found that the symptoms reported by  
          many Porter Ranch residents can be attributed to odorants in the  
          natural gas. According to OEHHA, the natural gas odorants have  
          strong odors which can be perceived at concentrations below the  
          levels that can be measured in air samples.  These odors can  
          evoke physiological responses (e.g. nausea, headaches). 





          Complaints of headaches and dizziness continue to persist weeks  








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          after the Aliso Canyon Gas Storage Facility well leak was  
          sealed. The Los Angeles County Department of Public Health has  
          received a substantial number of reports from Porter Ranch  
          residents, located downwind from the Aliso Canyon natural gas  
          storage facility, describing recurring symptoms such as  
          headaches, nausea, abdominal discomfort, dizziness and  
          respiratory irritation. Between the time the massive natural gas  
          leak was first reported last October to the day workers plugged  
          it, Los Angeles County received between 700 and 800 health  
          complaints.  Between February 18 and March 9, 2016, after the  
          well was reported capped and inspected by state regulators, Los  
          Angeles County Health Department received nearly 300 health  
          complaints from residents who returned home.  





          On March 10, 2016, Los Angeles County health officials launched  
          a three-day door-to-door health survey throughout Porter Ranch  
          to investigate complaints by residents in the community who  
          continue to report illnesses weeks after a leaking natural gas  
          well was capped. 





          Natural gas facilities in California: California has 13  
          operating natural gas storage facilities. Odorants are  
          presumably used at each of these facilities. There are 115 other  
          wells in use in Aliso Canyon. In early December 2016, the South  
          Coast Air Quality Management District (Air District) identified  
          15 minor methane leaks and directed SoCalGas to fix them. Later  
          that month, the Air District verified that these leaks were  
          repaired.


           








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          Legislative response to Aliso Canyon emergency: There has been a  
          strong Legislative response to the massive gas leak at the Aliso  
          Canyon Gas Storage Facility.


          The Assembly Utilities and Commerce Committee held an  
          informational hearing on January 21, 2016, in Porter Ranch about  
          the Aliso Canyon Gas Storage Facility leak. 


          The author of AB 1904 has introduced a package of bills focused  
          on response to the Aliso Canyon Gas Storage Facility leak,  
          including:


            AB 1902 (Wilk), which proposed to extend the statute of  
            limitations for civil actions resulting from exposure to  
            hazardous materials from the Aliso Canyon gas leak; 


            AB 1903 (Wilk), which proposed to direct the PUC and the State  
            Department of Public Health to jointly study the long-term  
            health impacts of the Aliso Canyon natural gas leak; and,


            AB 1905 (Wilk), which proposed to directs the Natural  
            Resources Agency to conduct an independent scientific study on  
            natural gas injection and storage practices and facilities. 


          In addition, Senator Pavely has introduced a package of related  
          bills, including:


            SB 380 (Pavley), which proposes to place a moratorium on  
            natural gas injections at the Aliso Canyon gas storage  
            facility and establishe requirements to resume injections,  








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            including each well at the facility has been evaluated and  
            those posing risk of failure have been repaired or plugged; 


            SB 886 (Pavley), which proposed to requires the Division of  
            Oil, Gas, Geothermal Research (DOGGR) to institute a  
            moratorium on natural gas injections at the Aliso Canyon gas  
            storage facility and prevent use of wells drilled pre-1954;  
            and,  


            SB 887 (Pavley), which requires DOGGR to prescribe standards  
            for natural gas storage wells and inspect all natural gas  
            storage wells annually and prescribes other requirements. 


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file. 




          Opposition


          None on file. 




          Analysis Prepared by:Paige Brokaw / E.S. & T.M. / (916) 319-3965









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