BILL ANALYSIS Ó SB 119 Page 1 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 SB 119 Page 2 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 SB 119 Page 3 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, SB 119 Page 4 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: SB 119 Page 5 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 SB 119 Page 6 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 SB 119 Page 7 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. SB 119 Page 8 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 SB 119 Page 9 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 SB 119 Page 10 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 SB 119 Page 11 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 SB 119 Page 12 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 SB 119 Page 13 Opposition None on file Analysis Prepared by:Sue Kateley / U. & C. / (916) 319-2083