BILL ANALYSIS Ó AB 1904 Page 1 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: AB 1904 Page 2 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)) AB 1904 Page 3 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) AB 1904 Page 4 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 AB 1904 Page 5 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. AB 1904 Page 6 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 AB 1904 Page 7 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 AB 1904 Page 8 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. AB 1904 Page 9 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, AB 1904 Page 10 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 AB 1904 Page 11