BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 119


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          Date of Hearing:  June 29, 2015


                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE


                                Anthony Rendon, Chair


          SB  
          119 (Hill) - As Amended June 16, 2015


          SENATE VOTE:  24-11


          SUBJECT:  Protection of subsurface installations.


          SUMMARY:  This bill modifies "call before you dig" laws  
          governing excavations near underground pipelines, conduit, duct,  
          wire, or other structures (collectively known as subsurface  
          installations).  Among other things, this bill enhances the  
          existing enforcement powers of specified state entities, revises  
          liability provisions that apply to the pre-excavation  
          notification and subsurface installation marking requirements  
          for operators and excavators, and establishes the California  
          Underground Facilities Safe Excavation Advisory Committee to  
          coordinate education and outreach, develop standards, and  
          investigate violations of laws pertaining to excavation.   
          Specifically, this bill:  





           1) Makes numerous findings and declarations regarding the  
             efficiency of regional notification centers; issues related  
             to safety; exemptions from contacting regional notification  








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             centers that may not have a basis in safety; coordination  
             needed among affected parties, including specifically the  
             Department of Transportation; recordkeeping; timely response  
             to requests for markings; the need for current markings;  
             timely response to requests for marking subsurface  
             installations; safety issues related to mismarked location of  
             subsurface installations; the need to monitor unregulated  
             behaviors that are suspected to be unsafe; specifies that the  
             exemption for landscaping with hand tools to depths of less  
             than 12 inches does not have an impact on safety; gas  
             corporations should collect data to inform future discussions  
             about exemptions from requirements to contact regional  
             notification centers; declares that California should have an  
             advisory committee to coordinate education efforts; study  
             excavation questions, develop standards for best practices,  
             and investigate when regional call centers are not notified;  
             and specifies that funding for the advisory committee should  
             be funded through fines levied on gas and electric  
             corporations for safety violations.



           2) Specifies definitions for "abandoned subsurface  
             installation," "active subsurface installation," "delineate,"  
             "electronic positive response," "emergency," "unexpected  
             occurrence," "hand tool," "inactive subsurface installation,"  
             "legal excavation start date," "locate and field mark," "near  
             miss," "pavement," "positive response," "ticket," "tolerance  
             zone," and "working day."

           3) Requires an excavator to delineate the area to be excavated  
             before notifying a regional notification center.



             4)   Specifies the amount of time before an excavation to  
               notify the regional call center.

           5) Clarifies existing law with respect to an onsite meeting  








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             when excavation is proposed within ten feet of a high  
             priority subsurface installation.

           6) Clarifies excavation tickets issued by regional notification  
             centers with respect to the start date and the number of days  
             the ticket is valid.

             7)   Specifies recordkeeping requirements.



             8)   Specifies marking, notification, field marks, and legal  
               start date and time.



           9) Addresses communication requirements when addressing  
             subsurface installations not visible from the surface due to  
             pavement.

           10)Establishes for compliance and noncompliance with provisions  
             of this statute without establishing burden of proof.



           11)Establishes provisions specific to exemptions from  
             contacting a regional notification center for excavation on  
             residential property.

             12)Establishes provisions specific to subsurface  
               installations located on agricultural property.

           13)Specifies enforcement of specific provisions of the bill  
             with the CSLB, the California Public Utilities Commission  
             (CPUC), or Office of the State Fire Marshall (OSFM).



           14)Establishes an advisory committee with specified membership,  








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             including appointments from each house of the Legislature,  
             within the CSLB, and specifies duties to identify education  
             and outreach needs, convene an annual meeting on safe  
             excavation, develop standards, and investigate violations of  
             this statute.



           15)Specifies the advisory committee may authorize staff to use  
             compliance audits, including field audits, and investigations  
             of incidents and near-misses.

           16)Requires gas corporations to collect information about  
             damage to subsurface installations until January 1, 2020,  
             claims filed by gas corporations against excavators, other  
             information the CPUC may require, and annually report to the  
             CPUC on excavation data and analysis.



             17)Requires the CPUC to report to the Legislature on an  
               analysis of excavation damages.



           18)Creates and specifies that funds collected from citations be  
             deposited in a Safe Energy Infrastructure and Excavation Fund  
             to cover administration costs of the advisory committee, an  
             education program, and a workforce training program.



          





          EXISTING LAW: 








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          1)Authorizes licensing and regulation under the Contractors  
            State License Law by the CSLB within the Department of  
            Consumer Affairs.  The CSLB is under the direction of the  
            registrar of contractors.  (Business and Professions Code  
            Section 7000, et seq.) 

          2)Requires all owners of subsurface infrastructure (such as gas,  
            oil, and water pipes, electrical and telecommunications  
            conduits, etc., except the California Department of  
            Transportation, to participate in and fund regional  
            notification ("one-call") centers.  (Government Code Section  
            4216.1) 

          3)Exempts owners of non-pressurized sewer lines and storm drains  
            from the requirement to become members of the one-call  
            centers.  (Government Code Section 4216(l)) 

          4)Requires persons performing excavations to call one-call  
            centers to have the locations of underground facilities marked  
            before starting an excavation (Government Code Section  
            4216.2), but exempts homeowners and other private property  
            owners from this requirement for excavations on their own  
            property.  (Government Code Section 4216.8) 

          5)Requires owners of subsurface installations to mark their  
            underground facilities within two working days of receiving a  
            notification.  (Government Code Section 4216.3) 

          6)Requires excavators to use hand tools within two feet on each  
            side of a marked line indicating a subsurface facility to  
            determine where that facility is before using any power  
            excavating equipment.  (Government Code Section 4216.4) 



          7)Establishes a safety enforcement program at the CPUC  
            applicable to gas and electrical corporations.  (Public  








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            Utilities Code Section 1702.5) 

          FISCAL EFFECT:  Unknown.


          COMMENTS:  


           1)Author's Statement:   "On Friday, April 17, a front loader in  
            Fresno came into contact with a 12-inch high pressure natural  
            gas transmission pipe, causing an explosion that injured  
            fourteen people.  One person died as a result, and - eight  
            weeks after the blast - one remains hospitalized.  Accidents  
            such as this are the result of unsafe practices that people  
            undertake all the time.  Roughly 7,000 of California's natural  
            gas pipelines are hit every year, and it is estimated that  
            roughly half of them occur because the excavator failed to use  
            the free 8-1-1 service so that pipes can be located and marked  
            before digging.  The safety hazard associated with digging  
            into natural gas pipelines has hung over the Legislature for a  
            long time, at least since 2004, when five laborers were killed  
            in Walnut Creek when a petroleum pipeline exploded after it  
            was struck with a backhoe.

            "The strategy that SB 119 takes to finally tackle this problem  
            is to improve enforcement, clarify the law, and develop a  
            venue for discussions to improve excavation safety.  All of  
            the proposals included in the introduced version of the bill  
            came from the stakeholder group (which includes over 130 email  
            addresses)."

           2)Excavation safety:   Excavation activities accounted for more  
            than 25 percent of pipeline-related fatalities in the U.S.  
            between 2002 and 2011.  Nationwide data provided by the Common  
            Ground Alliance, a national nonprofit created by the federal  
            pipeline safety regulator to promulgate best practices in safe  
            excavation, suggests that excavation in California is more  
            dangerous than in other states, largely due to a failure by  
            some excavators and owners of underground facilities to call  








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            before excavating.  Data collected by the Pacific Gas &  
            Electric Company (PG&E) supports this conclusion.  Contract  
            excavators have challenged this assertion, instead suggesting  
            that mismarked utilities are the greater danger.

            On April 17, 2017, a 12-inch high-pressure natural gas  
            pipeline exploded in Fresno, injuring 14.  The accident  
            remains under investigation, but a county worker was operating  
            a front-end loader within several feet of the pipeline at the  
            time of the explosion.  Injured were the front loader  
            operator, several inmates from Fresno County Jail who were  
            working in the area, and a sheriff who pulled them away from  
            the blast.  Three weeks later, one of the injured inmates  
            died.


           3)Call-before-you-dig is a means of improving safety:   Both the  
            National Transportation Safety Board and the federal pipeline  
            safety regulator, Pipeline and Hazardous Materials Safety  
            Administration (PHMSA), have identified call-before-you-dig  
            laws as a means of improving excavation safety.  PHMSA, in  
            adopting regulations requiring distribution pipeline companies  
            to develop comprehensive risk-based pipeline safety programs,  
            explored best practices in excavation enforcement, and its  
            working group found in 2005 that the states that have had the  
            most success house enforcement in a centralized enforcement  
            agency recommending the agency responsible for pipeline  
            safety.

           4)Call-before-you dig enforcement:   California relies on the  
            Attorney General and district attorneys to enforce the  
            one-call law, though regulatory authorities such as the CPUC,  
            the Office of the State Fire Marshall (OFSM), and CSLB have  
            broad jurisdiction over gas pipeline and electric operators,  
            hazardous liquid operators, and contractors, respectively, and  
            thus have the ability to enforce safe operations on those  
            entities within their jurisdictions. 










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            According to the author:

                 Their authorities have rarely been used except for a  
               recent CPUC investigation into PG&E recordkeeping practices  
               on its distribution system, which explores excavation  
               issues.  

                 Sempra and PG&E have also begun making complaints to  
               CSLB, but CSLB does not yet have the experience and  
               capabilities to handle more than a handful of cases.



                 In a PHMSA rulemaking (PHMSA-2009-0192) to determine  
               criteria by which it is to evaluate state enforcement of  
               damage prevention laws, Sempra reports 7,574 "dig-ins" in  
               California in 2013, or nearly 21 per day, and that roughly  
               half of all dig-ins to its facilities have been when the  
               excavator has failed to call 8-1-1 to get the underground  
               facilities marked, which means that half of all dig-ins are  
               preventable.







             California has experienced a number of near-miss incidents  
             (this is a partial list):


                   November 6, 2011:  PG&E was conducting a water  
                pressure test on the gas pipeline that had exploded a year  
                earlier, south of the San Bruno explosion site in nearby  
                Woodside. The pipe ruptured, causing a mudslide that shut  
                down I-280 for four hours.  A dent was found at the point  
                of rupture, caused by an unknown, unreported excavation  








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                accident.

                   June 28, 2012:  Power pole work in San Joaquin County  
                caused the severing of an underground fiber optic cable,  
                resulting in a 911 outage as well as internet, land line,  
                and cellular service disruption in Amador County.  Full  
                system function wasn't restored for more than 24 hours.



                   August 2, 2012:  An excavator clipped a gas line with  
                a backhoe at the same intersection which had erupted in  
                the September 2010 explosion in San Bruno, prompting  
                evacuations.  The contractor had failed to use proper  
                excavation techniques.



                   March 12, 2013:  A Berkeley homeowner hired a day  
                laborer to do sewer work, who hit the gas line with a  
                pick, igniting the gas and burning the front of a home and  
                a van parked outside.  No call was made to have gas lines  
                marked.



                   March 15, 2013:  A subcontractor punctured a steel  
                pipe in Fresno, causing the evacuation of over 300 homes  
                and businesses.  Excavation was faulty for numerous  
                reasons.



                   April 24, 2013:  A pavement recycling vehicle hit a  
                3-inch natural gas line in Bakersfield, causing an  
                explosion that engulfed the vehicle in flames.  No one was  
                injured.  The excavator appeared to follow applicable laws  
                and protocols, but the gas line was much closer to the  
                road surface than expected.  The pipeline operator  








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                maintains that hand-digging was required to locate the  
                pipe depth.



                   October 24, 2014:  A farmer who was ripping a field  
                southwest of Bakersfield struck one of PG&E's backbone  
                transmission lines caused the fire department to create an  
                eight-square-mile "exclusion zone" that temporarily closed  
                schools and required sheltering-in-place.



                   February 28, 2015:  A tractor putting in a road on  
                private property in Monterey struck a 10-inch high  
                pressure gas line, shutting down Highway 1 for three  
                hours.   The gas did not ignite.   No call had been made  
                to 811.

           1)Stakeholder-driven process:   Senator Hill convened a  
            stakeholder group consisting of dozens of organizations and  
            individuals.  The bill was amended several times to improve  
            clarity and address additional concerns.  As a result of the  
            most recent amendments, the Committee does not have support or  
            opposition representing the current language in the bill.

            Stakeholders taking positions on prior versions of the bill  
            included:  Agricultural Council of California, Associated  
            Generator Contractors of America, AT&T, California Association  
            of Realtors, California Association of Winegrape Growers,  
            California Citrus Mutual, California Cotton Ginners and  
            Growers Association, California Farm Bureau, California Fresh  
            Fruit Association, California Landscape Contractors  
            Association, California Legislative Conference of the  
            Plumbing, Heating and Piping Industry, California State  
            Council of Laborers, County of Los Angeles, County of Orange,  
            International Union of Operating Engineers, National  
            Electrical Contractors Association, PG&E, Sempra/SoCalGas,  
            Southern California Contractors Association, Underground  








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            Service Alert of Southern California, United Contractors,  
            Western Agricultural Processors Association, Western Growers,  
            and Western Line Constructors Chapter.

           2)Advisory Committee authority:   The advisory committee is  
            authorized to investigate possible violations of this article,  
            including complaints from affected parties and members of the  
            public.  It is not clear where members of the public would  
            find out about this advisory committee or whether the  
            complaints filed with the advisory committee are instead of or  
            in addition to a complaint filed through the normal CSLB  
            complaint process.  It is also unclear whether a complaint  
            found valid by the advisory committee would result in a  
            disciplinary action by the CSLB.  

           3)A  dvisory Committee staff:   As written, the bill is not clear  
            whether the staff authorized to perform audits are specific to  
            the committee or whether they are CSLB staff.  The author may  
            wish to consider clarifying this in fiscal committee.  The  
            bill does specify that the advisory committee is to be  
            assisted by CSLB staff.  
            
            4)Prior Legislation:
           
            AB 811 (Lowenthal) 2013:  Required the regional notification  
            centers (or "one-call" centers) to annually report on  
            subsurface facility damages voluntarily reported to those  
            centers from excavators and utilities.  An earlier version  
            would have set education requirements as a condition of  
            obtaining a license from CSLB, but that requirement was  
            stripped from the bill in the Assembly.  Chaptered by  
            Secretary of State - Chapter 250, Statutes of 2013.


            AB 1514 (Lowenthal) 2012:  This bill would have increased the  
            maximum fine for a violation of the "one-call" law from  
            $10,000 to $100,000 and would have placed the CPUC in charge  
            of investigating excavation damages and referring the  
            investigations to the Attorney General or a district attorney  








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            for action.  Held in Assembly Appropriations Committee.


            SB 1359 (Torlakson) 2006:  Required onsite meetings between  
            excavators and operators when an excavation was to take place  
            near most dangerous lines, such as high-pressure gas and  
            petroleum lines and high-voltage electric lines.  The bill  
            also required the notification to an operator in the case of  
            damage or the discovery of a prior damage, specified the  
            qualifications for locating underground infrastructure, and  
            added liability provisions.  Chaptered by Secretary of State -  
            Chapter 651, Statutes of 2006.


            AB 73 (Elder) 1989:  Created California's one-call law,  
            requiring facility owners to participate in the one-call  
            notification centers, mandatory calling before excavation, use  
            safe excavation practices, and penalties for noncompliance.   
            Chaptered by Secretary of State - Chapter 928, Statutes of  
            1989.


           5)Double Referred  :  This bill is double referred to the Assembly  
            Committee on Judiciary.
          


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file











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          Opposition


          None on file




          Analysis Prepared by:Sue Kateley / U. & C. / (916)  
          319-2083