BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            AB 1904
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          |Author:    |Wilk                                                 |
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          |Version:   |6/23/2016              |Hearing      |8/3/2016        |
          |           |                       |Date:        |                |
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          |Urgency:   |Yes                    |Fiscal:      |Yes             |
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          |Consultant:|Rachel Machi Wagoner                                 |
          |           |                                                     |
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          SUBJECT:  Hazardous materials:  natural gas odorants

            ANALYSIS:
          
          Existing law:  authorizes the Occupational Safety and Health  
          Standards Board to adopt, amend, and repeal occupational safety  
          and health standards and orders. Existing regulations adopted  
          pursuant to that authorization require natural gas that is  
          delivered into any vessel or system, as specified, to have a  
          distinctive odor of sufficient intensity so that the presence of  
          the gas may be detected down to concentrations in air of not  
          over 20% of the lower explosive limit, and require that these  
          odorants be, among other things, harmless to humans, nontoxic,  
          and noncorrosive to certain metals.
          
          This bill:  

          1) Requires the Office of Environmental Health Hazard Assessment  
             (OEHHA) to submit a report to the Legislature, on or before  
             January 1, 2019, that includes an assessment of any potential  
             danger of odorants currently used in natural gas storage  
             facilities in the state to public health and safety and the  
             environment, and that identifies alternative odorants for  
             possible use in natural gas storage facilities, as specified.  



          2) Requires the OEHHA to consult with appropriate entities, as  
             specified.








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          3) Takes effect immediately as an urgency statute.


            Background
          
          Aliso Canyon Gas Storage Facility leak - a disaster.  On October  
          23, 2016, the SoCalGas discovered a leak from a well at the  
          company's Aliso Canyon Gas Storage Facility.  The Division of  
          Oil, Gas and Geothermal Resources (DOGGR) - the state agency  
          responsible for regulating Aliso Canyon's natural gas storage  
          wells - reports that it was informed of the leak soon after its  
          discovery.  Other state and local agencies, as well as nearby  
          residents threatened by the leak, were notified sometime later. 

          For more than 100 days, the well continued to dump tons of  
          methane gas into the atmosphere, along with irritants and other  
          substances. According to the California Air Resources Board  
          (ARB), the leak emitted almost 100,000 tons of methane, a potent  
          greenhouse gas (GHG), adding approximately 20 percent to  
          statewide methane emissions over its duration.  Many residents  
          from nearby Porter Ranch suffered noxious odors. Others reported  
          more serious health effects, including nose bleeds, rashes and  
          respiratory problems.  Hundreds were relocated from their homes.  
           Despite assurances from public health agencies, many fear the  
          leak's long-term effects on health and wellbeing.

          The investigation into the cause of the leak continues.  The  
          Attorney General, ARB, the City of Los Angeles and the County of  
          Los Angeles have formally accused SoCalGas of violating  
          California laws.  The California Public Utilities Commission  
          (CPUC), which regulates the rates of SoCalGas, is considering  
          penalties against the gas company.
            
          Comments
          
          1) Purpose of Bill.  According to the author, on October 23,  
             2015, the Southern California Gas Company reported a gas leak  
             at their Aliso Canyon facility affecting Porter Ranch and the  
             surrounding communities. The well that was the source of the  
             largest natural gas leak in recorded US history was sealed on  
             February 18, 2016.

             The author states that the existing regulations set by the  








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             Occupational Safety and Health Standards Board require any  
             stored natural gas to contain odorants that, among other  
             requirements, are nontoxic and harmless to humans. On its  
             own, natural gas is odorless and colorless so these chemicals  
             are added as a practice of safety in order to allow detection  
             of leaks by smell.

             The odorants used at the Aliso Canyon gas storage facility  
             are primarily tert-butyl mercaptan and tetrahydrothiophene.  
             Their distinctive, putrid smell can be noticed at  
             concentrations below levels that can be measured in air  
             samples. Even at these extremely low levels, the odor from  
             these sulfur-containing compounds can cause nausea and  
             headaches.

             The author asserts that residents of the affected community  
             have widely reported debilitating headaches, bloody noses,  
             and nausea. State regulators and SoCalGas executives still  
             claim that odorants do not pose any long-term health  
             concerns.


          2)Two bills for one problem.  AB 1903, also authored by Assembly  
            Member Wilk, directs the CPUC to authorize and OEHHA to  
            undertake a study of the long-term health effect of the  
            natural gas leak from the Aliso Canyon natural gas storage  
            facility that occurred in 2015.

            It is unclear why a separate bill with a separate mandate for  
            a separate study by OEHHA to assess any potential danger of  
            odorants is necessary.  It would be more efficient and prudent  
            to include the provisions of this study into the requirements  
            of AB 1903.

            Related/Prior Legislation

          AB 1903 (Wilk, 2016) directs the California Public Utilities  
          Commission (CPUC) to authorize and the Office of Environmental  
          Health Hazard Assessment (OEHHA) to undertake a study of the  
          long-term health effect of the natural gas leak from the Aliso  
          Canyon natural gas storage facility that occurred in 2015.  AB  
          1903 is awaiting hearing in the Senate Appropriations Committee.
            
          SOURCE:                    Author  








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           SUPPORT:               

          Los Angeles Unified School District  

           OPPOSITION:    

          None received  

           

                                          
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