BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1904


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          Date of Hearing:  April 13, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


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


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          |Policy       |Environmental Safety and Toxic |Vote:|7 - 0        |
          |Committee:   |Materials                      |     |             |
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          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:








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             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). 








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          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).










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            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  








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            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  








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            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