BILL ANALYSIS Ó
SB 295
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SENATE THIRD READING
SB
295 (Jackson)
As Amended August 19, 2015
Majority vote
SENATE VOTE: 38-0
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Environmental |6-1 |Alejo, Dahle, |Gallagher |
|Safety | |Gonzalez, Gray, | |
| | |McCarty, Ting | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Governmental |18-0 |Gray, Linder, Alejo, |Gallagher |
|Organization | |Bigelow, Campos, | |
| | |Cooley, Cooper, Daly, | |
| | |Cristina Garcia, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gipson, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Levine, Mayes, Perea, | |
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| | |Salas, Steinorth, | |
| | |Wilk | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |16-1 |Gomez, Bigelow, |Gallagher |
| | |Bloom, Bonta, | |
| | |Calderon, Chang, | |
| | |Nazarian, Eggman, | |
| | |Eduardo Garcia, | |
| | |Holden, Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Expands the State Fire Marshal's responsibilities for
regulating intrastate pipelines safety. Specifically, this
bill:
1) Requires, commencing January 1, 2017, the State Fire
Marshal, or an officer or employee authorized by the State
Fire Marshal, to annually inspect all intrastate pipelines
and operators of intrastate pipelines under the
jurisdiction of the State Fire Marshal to ensure compliance
with applicable laws and regulations.
2) Requires, by January 1, 2017, the State Fire Marshal, to
adopt regulations.
3) Prohibits the State Fire Marshal from becoming an
inspection agent for the portions of intrastate pipelines
that are not under the jurisdiction of the State Fire
Marshal unless all regulatory and enforcement authority
over those pipelines is transferred to the State Fire
Marshal from the federal Pipeline and Hazardous Materials
Safety Administration (PHMSA).
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4) Requires the State Fire Marshal to revise the fee
assessed to a level sufficient to cover the costs
associated with implementation.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, this bill may result in one-time costs of
approximately $3.3 million to establish regulations and
administer the inspection program in the first year; ongoing
annual costs of approximately $2.4 million to administer the
inspection program; and unknown potential increases in fees
charged to pipeline operators and independent hydrostatic
testing firms.
COMMENTS:
Need for this bill: According to the author, "On May 19 of this
year tragedy struck when an onshore pipeline carrying crude oil
ruptured and spilled more than 100,000 gallons of oil, more than
20,000 gallons of which ended up in the ocean off the Santa
Barbara Coastline. To date, this spill has caused significant
negative impacts to the ocean, local beaches, wildlife, and the
local economy. Although the investigation into the response and
the oil spill is ongoing, we do know that corrosion was
responsible for the rupture. Before the spill, the last
completed inspection was in 2013. The pipeline was again
inspected in 2015, but at the time of the accident the results
of the inspection had not been analyzed.
"The pipeline that ruptured - Line 901 - was being inspected
every other year. If Line 901 had been inspected annually the
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corrosion would likely have been detected before it ruptured and
this disaster would have been avoided. Because Line 901 is
federally regulated, SB 295 addresses these shortcomings by
directing the State Fire Marshall to seek the authority to
inspect federally regulated pipelines and to inspect all
pipelines annually.
"Most importantly, oil pipeline owners should be financially
responsible to ensure their pipelines operate safely and meet
applicable laws and regulations, not taxpayers, which is why SB
295 requires fee increases on pipeline owners to pay for more
inspections."
Refugio oil spill: On May 20, 2015, Governor Brown issued an
emergency proclamation for Santa Barbara County due to the
effects of the oil spill described by the author. Refugio State
Beach and El Capitan State Beach have been closed for more than
a month because of the oil spill. Fisheries from Canada de
Algeria to Coal Oil Point remain closed, which has negatively
impacted several commercial fisheries - including lobster, crab,
shrimp, halibut, urchin, squid, whelk, and sea cucumber. The
Oiled Wildlife Care Network has recovered 192 dead birds and 103
dead marine mammals from the spill to date. Dead marine mammals
recovered include dolphins, sea lions and seals. Sensitive
habitat of the California least tern and the snowy plover, birds
protected by the Endangered Species Act, has been damaged.
Hotels, tour outfits and other tourism businesses have
experienced cancelations and decreased bookings due to the
spill. More than 1,000 workers from local, state and federal
agencies have been working to clean up the beaches. Since May
20, approximately 14,267 gallons of oily water have been
recovered.
On May 21, 2015, PHMSA issued a Correct Action Order to require
Plans All American Pipeline, the owner of the ruptured pipeline,
to take certain corrective actions to protect the public,
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property, and the environment from potential hazards associated
with Line 901 in Santa Barbara County. The Correct Action Order
also found that Line 901 was a 24-inch diameter line that was
installed in 1987 and the section that ruptured had extensive
corrosion. The deepest metal loss at each area ranged between
54% to 74% of the original pipeline wall thickness. The failure
site wall thickness had degraded to an estimate one-sixteenth of
an inch.
Intrastate vs. Interstate Pipelines: The United States
Department of Transportation PHMSA has exclusive federal
authority over interstate pipeline facilities (49 United States
Code Section 60101, et seq.). Interstate pipeline is defined as
a pipeline or that part of a pipeline that is used in the
transportation of hazardous liquid or carbon dioxide in
interstate or foreign commerce. Typically, these lines cross
state borders, of begin in federal waters. Also, A Federal
Energy Regulatory Commission (FERC) filing by the operator can
be the determining factor. The two pipelines in Santa Barbara
County have a FERC filing.
Office of the State Fire Marshal has safety regulatory and
enforcement authority over intrastate hazardous liquid pipelines
pursuant to the Elder California Pipeline Safety Act of 1981
(Government Code Section 51010, et seq.). Intrastate pipeline
is defined as means a pipeline or that part of a pipeline to
which this part applies that is not an interstate pipeline.
Those pipelines are located entirely within state borders
including offshore state waters.
Analysis Prepared by:
Paige Brokaw / E.S. & T.M. / (916) 319-3965 FN:
0001642
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