BILL ANALYSIS Ó
SB 661
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Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 661
(Hill) - As Amended June 28, 2016
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|Policy |Utilities and Commerce |Vote:|10 - 2 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill enacts the Dig Safe Act of 2016 to modify laws
governing excavations near subsurface installations. Among
other things, this bill:
1)Requires a person planning to conduct an excavation to contact
the appropriate regional notification center prior to
commencing the excavation regardless of whether it will be
conducted in an area that is known, or reasonably should be
known, to contain subsurface installations.
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2)Requires an excavator to delineate the area to be excavated
before notifying the regional notification center. Specifies
the amount of time required for notification prior to an
excavation.
3)Prohibits an excavator who damages a subsurface installation
due to an inaccurate field mark by an operator from being
liable for damages and other specified costs and expenses.
4)Establishes the California Underground Facilities Safe
Excavation Advisory Board (the Board), within the Office of
the State Fire Marshall (OSFM), to investigate violations of
the state's excavation and subsurface installation laws,
coordinate education and outreach, and develop standards. The
board may obtain funding for its operational expenses from:
a) A federal or state grant.
b) A fee charged to members of the regional notification
centers.
c) Any other source.
5)Authorizes the Contractor's State Licensing Board (CSLB), the
Public Utilities Commission (PUC), the OSFM, and local
governments to accept, amend, or reject the recommendations of
the Board to enforce specific provisions related to operators
and excavators whose activities or business fall within the
agency's statutorily defined enforcement jurisdiction as
follows:
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a) The Registrar of Contractors of the CSLB enforces
violations by licensed contractors.
b)The PUC enforces violations by investor-owned electric and gas
operators,
telecommunication companies, and water corporations.
c)OFSM enforces violations by operators of hazardous liquid
pipeline facilities.
d)Local governments may enforce against local agencies under
their jurisdictions.
6)Creates a Safe Energy Infrastructure and Excavation Fund and
requires penalties to be deposited in the fund, for
appropriation by the Legislature, for operational expenses and
education and outreach, as specified.
FISCAL EFFECT:
1)Unknown diversion of penalty revenues, in the millions
annually, from the GF to the Safe Energy Infrastructure and
Excavation Fund, created by this bill.
2)Increased first-year costs of $5.8 million (23 PY) and ongoing
costs of $3.6 million for OSFM/CalFire to support the Board
with potential minor offsets from fee revenue generated from
regional notification centers (GF/Special Fund).
3)Increased CSLB first year costs of $190,000 and ongoing annual
costs of $175,000 to process Advisory Committee
recommendations for disciplinary actions. CLSB notes there
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will also be increased Attorney General (AG) costs to
prosecute the most egregious actions. Using the current
referral rate to the AG of 3% (approximately 150 cases) and
$5,000 per case, estimated annual ongoing costs are $750,000.
4)Minor, absorbable PUC costs.
COMMENTS:
1)Purpose. According to the author, 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 author contends 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.
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. In 2005, its working group found the
states that have had the most success house enforcement in a
centralized agency responsible for pipeline safety.
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California relies on the Attorney General and district
attorneys to enforce the one-call law, though regulatory
authorities such as the PUC, 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.
3)Prior Legislation. Last year, the Governor vetoed SB 119
(Hill) that would have created the California Underground
Facilities Safe Excavation Advisory Committee, within CSLB,
to enforce existing and new provisions related to safe
excavation. The Governor's veto message included the
following:
"I understand that the telecommunications and cable
companies have resisted providing explicit enforcement
authority to the Public Utilities Commission over
excavation safety. However, it is the Public Utilities
Commission, and not the Contractors' State Licensing Board,
that has the technical expertise and funds and should be
given full authority to enforce and regulate excavation
activities near subsurface installations.
This is a matter of public safety, and I look forward to
working closely with the author to achieve our mutual
goal."
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Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081