BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 119  


                                                                    Page  1





          Date of Hearing:  August 19, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 119  
          (Hill) - As Amended July 1, 2015


           ----------------------------------------------------------------- 
          |Policy       |Utilities and Commerce         |Vote:|13 - 0       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |Judiciary                      |     |8 - 1        |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill modifies laws governing excavations near subsurface  
          installations.  Specifically, this bill: 









                                                                     SB 119  


                                                                    Page  2






          1)Establishes the California Underground Facilities Safe  
            Excavation Advisory Committee (the Advisory Committee), within  
            the Contractor's State Licensing Board (CSLB), to investigate  
            violations of the state's excavation and subsurface  
            installation laws, to coordinate education and outreach, and  
            develop standards.


          2)Creates a Safe Energy Infrastructure and Excavation Fund - to  
            cover administrative costs of the Advisory Committee, an  
            education program, and a workforce training program - to be  
            funded by fines levied on gas and electric companies for  
            safety violations, grants, fees charged to regional  
            notification center members, filing fees from complaint  
            hearings, and any other source. 





          3)Authorizes the CSLB, the Public Utilities Commission (PUC),  
            and the Office of the State Fire Marshal to accept, amend, or  
            reject the recommendations of the Advisory Committee to  
            enforce specific provisions related to operators and  
            excavators whose activities or business falls within the  
            agency's statutorily defined enforcement jurisdiction.



          4)Requires an excavator to delineate the area to be excavated  
            before notifying the regional notification center.  Specifies  
            the amount of time notification of the regional call center is  
            required prior to an excavation. 



          5)Provides that in an action for reimbursement or  
            indemnification for a claim arising from damage to a  








                                                                     SB 119  


                                                                    Page  3





            subsurface installation in which a court finds that the  
            excavator complied with the requirements of the law, the  
            excavator may be awarded reasonable attorney's fees and  
            expenses.
          6)Requires, if the operator of a high-priority subsurface  
            installation finds that the depth of the subsurface  
            installation subject to agricultural activities is  
            insufficient to safely perform those activities, the operator  
            must send notification of the potential hazard to the  
            landowner by registered mail.  Within specified days of that  
            notification, the operator must go to the site at a time  
            mutually agreed upon by both parties, and identify the  
            location and depth of the high-priority subsurface  
            installation with permanent markers.


          7)Requires each gas company to collect data to inform its  
            outreach activities, including: (1) Damages to underground  
            PUC-regulated pipeline facilities that occur during the  
            performance of landscaping activities from the day of  
            enactment of this bill until January 1, 2020; (2) All claims  
            filed by a gas company against an excavator for damage to a  
            PUC-regulated pipeline facility; and (3) Any other information  
            that the PUC may require.





          8)Requires real property owners to call a regional call center  
            when excavating on their property and using any tools other  
            than hand tools, regardless of whether the work being  
            performed requires a permit.  Provides that a person complying  
            with the notification provisions is not relieved of his or her  
            duty to perform any excavation with reasonable care to prevent  
            damage to subsurface installations.  Makes numerous findings  
            and declarations regarding the efficiency of regional  
            notification centers, including among others, more effective  
            methods of coordination and communication to increase safety,  








                                                                     SB 119  


                                                                    Page  4





            timely responses to request for field markings, and better  
            coordination with the Department of Transportation.



          9)Revises definitions of terms used regarding excavation and  
            subsurface installation. 
          FISCAL EFFECT:


          1)Increased initial costs for CSLB of $2.5 million (Contractors  
            License Fund) for staff support, information technology, board  
            meeting and member expenses, and complaint inspections  
            associated with the establishment of the Advisory Committee.   
            Ongoing annual costs of $2.1 million (Contractors License  
            Fund).


          2)Estimated costs increases of $1.2 to $1.3 million for CSLB  
            cases referred to the Attorney General for investigation and  
            prosecution (Contractors License Fund)


          3)Minor, absorbable costs for the PUC and State Fire Marshall


          COMMENTS:


          1)Rationale. According to the author, roughly 7,000 of  
            California's natural gas pipelines are hit accidentally every  
            year during subsurface excavation.  It is estimated that  
            roughly half of the accidents occur because the excavator  
            failed to use the free 8-1-1 service to locate and mark pipes  
            digging.  


            Although existing law requires excavators to call regional  
            "one call" centers to have the locations of underground  








                                                                     SB 119  


                                                                    Page  5





            facilities located and marked before starting an excavation,  
            many fail to do so.  


            This past April, a frontloader in Fresno came into contact  
            with a 12-inch high pressure natural gas pipe, causing an  
            explosion that killed one person and injured 14.  


            This bill seeks to improve enforcement, clarify the law, and  
            develop strategies for improving excavation safety.


          2)Background.  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. 

            California relies on the Attorney General and district  
            attorneys to enforce the one-call law, though regulatory  
            authorities such as the PUC, 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. 

            However, according to the author, existing authorities have  
            rarely been used except for a recent PUC investigation into  
            PG&E recordkeeping practices on its distribution system, which  
            explores excavation issues.  









                                                                     SB 119  


                                                                    Page  6








          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081