BILL ANALYSIS Ó
SB 295
Page 1
Date of Hearing: August 26, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 295
(Jackson) - As Amended August 19, 2015
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|Policy |Rules |Vote:|10 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| |Environmental Safety and Toxic | |6 - 1 |
| |Materials | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| |Governmental Organization | |18 - 0 |
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| | | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill beginning January 1, 2017, requires the State Fire
Marshal to annually inspect all intrastate pipelines and
pipeline operators under its jurisdiction to ensure compliance
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with applicable laws and regulations. Additionally, this bill:
1) Requires the State Fire Marshal to adopt regulations for
annual inspections by January 1, 2017.
2) Prohibits the State Fire Marshal from becoming an
inspection agent for interstate pipelines unless the
federal Pipeline and Hazardous Materials Safety
Administration transfers regulatory and enforcement
authority to the State Fire Marshal.
3) Requires the State Fire Marshal to revise fees to a
level sufficient to cover the costs of the annual
inspections.
FISCAL EFFECT:
1)One-time costs of approximately $3.3 million (special fund) to
establish regulations and administer the inspection program in
the first year.
2)Ongoing annual costs of approximately $2.4 million (special
fund) to administer the inspection program.
3)Unknown potential increases in fees charged to pipeline
operators and independent hydrostatic testing firms.
The current fee schedule for pipeline operations is $6,000 per
pipeline operator and $550 per mile of pipeline operated for
intrastate pipelines. There is also a fee on the registration
of the independent hydrostatic testing firms.
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Fee revenues have not been raised since 2007. The special
fund into which these fees are placed had a significant fund
balance of $8.8 million at the end of 2014-15.
COMMENTS:
1)Purpose. According to the author, oil pipeline owners should
be required to ensure their pipelines operate safely and meet
applicable laws and regulations.
According to proponents, this bill will protect Californians
against a repeat of the May 2015 Refugio oil spill where an
onshore pipeline carrying crude oil ruptured and spilled over
100,000 gallons of oil. The pipeline that ruptured was being
inspected biennially.
By providing an annual inspection schedule, any pipeline
corrosion will be detected earlier, thus preventing future
ruptures.
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2)Background. The Lempert-Keene-Seastrand Oil Spill Prevention
and Response Act (Act) requires the Governor to establish a
state oil spill contingency plan and establishes oil spill
prevention, response, containment, and cleanup programs.
Under the Act, the Oil Spill Administrator promulgates
regulations that provide for the best achievable protection of
waters and natural resources of the state.
This bill revises the Act to provide further inspection and
financial responsibility.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081