BILL ANALYSIS Ó AB 1904 Page 1 Date of Hearing: April 13, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1904 (Wilk) - As Introduced February 11, 2016 ----------------------------------------------------------------- |Policy |Environmental Safety and Toxic |Vote:|7 - 0 | |Committee: |Materials | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: Yes State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the Office of Environmental Health Hazard Assessment (OEHHA) to evaluate and report to the Legislature on natural gas odorants and potential alternatives by January 1, 2018. Specifically, this bill: 1)Requires OEHHA to provide a report to the Legislature that includes: AB 1904 Page 2 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: 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. FISCAL EFFECT: 1)One-time costs of $500,000 for OEHHA staff to assess the hazards of odorants and identify potential alternatives (GF, Oil, Gas and Geothermal Administrative Fund or other special fund). AB 1904 Page 3 2)One-time costs of $140,000 for consultant contracts to determine the safety and ecological impacts of odorants (GF, Oil, Gas and Geothermal Administrative Fund or other special fund). COMMENTS: 1)Purpose. According to the author, for months, there have been widespread reports in Porter Ranch and the surrounding communities of individuals with debilitating headaches, bloody noses, and other adverse physical reactions resulting from the gas leak at the Aliso Canyon facility. The adverse reactions are likely caused by the odorants added to stored natural gas as a safety precaution in order to be able to detect gas leaks. This bill will provide information regarding the health and safety of odorants to inform the use of odorants in the future. 2)Background. 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). AB 1904 Page 4 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. 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 spewed from the leak each hour. The leak displaced nearly 2,290 households, requiring families to move into temporary housing and hotels provided by SoCalGas. 3)Implementation concerns. This bill requires OEHHA to determine the feasibility, and effectiveness of alternative lower-risk odorants that are not currently used in California natural gas facilities. This non-health, but important public safety, requirement is likely beyond the scope of OEHHA. Although not required by the bill, assistance from additional AB 1904 Page 5 entities such as the Division of Oil, Gas and Geothermal Resources (DOGGR) and Lawrence Berkeley National Laboratory, may be necessary to evaluate the impacts. Also, the timeline required in this bill may need to be extended to ensure all current and alternative odorants are properly evaluated. Alternately, the author may wish to limit the number of odorants required to be evaluated in order to meet the timeline in the bill. 4)Related legislation. Numerous bills have been introduced to respond to the Aliso Canyon Gas Storage Facility leak. AB 1902 (Wilk) extends the statute of limitations for civil actions resulting from exposure to hazardous materials from the Aliso Canyon gas leak. This bill is pending in the Judiciary Committee. AB 1903 (Wilk) directs the Public Utilities Commission and the State Department of Public Health to jointly study the long-term health impacts of the Aliso Canyon natural gas leak. This bill is pending in the Health Committee. AB 1905 (Wilk) directs the Natural Resources Agency to conduct an independent scientific study on natural gas injection and storage practices and facilities. This bill is pending in this Committee. SB 380 (Pavley) places a moratorium on natural gas injections at the Aliso Canyon gas storage facility and establishes requirements to resume injections. This bill is scheduled to be heard in this Committee today. SB 886 (Pavley) 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 AB 1904 Page 6 prevent use of wells drilled pre-1954. This bill is pending in the Senate Energy, Utilities and Communications Committee. SB 887 (Pavley) requires DOGGR to prescribe standards for natural gas storage wells and requires annual inspections. This bill is pending in the Senate Environmental Quality Committee. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081