BILL ANALYSIS Ó
AB 2798
Page 1
Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2798 (Gatto) - As Introduced February 19, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires each person filing a notice of intention to
construct a thermal powerplant or electric transmission to
include the extent to which the facility will increase or
decrease reliance on underground natural gas storage in the
notice submitted to the California Energy Commission (CEC),
FISCAL EFFECT:
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No additional state costs.
COMMENTS:
1)Purpose. According to the author, it is critical that power
facilities are only sited and expanded when there is a true
demand for additional energy. If additional facilities are
needed, is important for the CEC take into account how that
facility may increase reliance on natural gas storage,
particularly when these storage facilities have aging
infrastructure and are located so close to families and homes.
2)Background. Under existing law, a person proposing to
construct a thermal powerplant or electric transmission line
must submit a notice of intention to file an application for
the certification of the site and related facility or
facilities to the CEC. The notice of intention must include:
a) Information such as a description of the location of the
proposed sites and the proposed location of facilities and
structures on each site;
b) A summary of the proposed design criteria of the
facilities, and the type or types of fuels to be used;
c) The methods of construction and operation;
d) A preliminary statement of the relative economic,
technological, and environmental advantages and
disadvantages of the alternative site and related facility
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proposals;
e) A statement of need for the facility and information
showing the compatibility of the proposals with the most
recent electricity report; and
f) Any other information an electric utility deems
desirable to submit to the CEC.
1)Aliso Canyon Storage Leak. On October 23, 2015, SoCalGas
detected a methane gas leak at its Aliso Canyon Gas Storage
Facility at Well # SS-25. 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, 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 over 5,000 households, requiring families
to move into temporary housing and hotels provided by
SoCalGas.
Since October 25, 2016, no natural gas has been injected into
the facility. However, on April 13, 2016, residents living
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near the natural gas storage field complained of a strong odor
raising the question on whether another problem exists at the
facility.
According to the author, the leak is one of the largest
environmental disasters since the BP oil spill due to the
large amounts of methane released into the atmosphere. This
bill was introduced in response to the leak.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081