BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 887 (Pavley) - Natural gas storage wells
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|Version: April 26, 2016 |Policy Vote: N.R. & W. 7 - 2, |
| | E.Q. 6 - 1 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: May 27, 2016 |Consultant: Narisha Bonakdar |
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Bill
Summary: SB 887 provides a framework for reforming oversight of
natural gas storage facilities. The bill mandates minimum
standards for equipment inspections, monitoring, and testing;
training of personnel; leak monitoring; response planning;
reporting; and information sharing. The bill also phases out
certain wells, and requires the independent development and
incorporation of best practices into regulations, a risk
assessment, and penalties for the waste of natural gas.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
Fiscal
Impact:
First year costs of approximately $4.68 million and ongoing
costs of approximately $3.75 million (Oil, Gas and Geothermal
SB 887 (Pavley) Page 1 of
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Administrative Fund) for the Division of Oil, Gas and
Geothermal Resources (DOGGR) staffing costs resulting from
increased regulatory activities for underground gas storage
facilities.
Minor and absorbable costs to the Air Resources Board (ARB)
and the California Public Utilities Commission (CPUC).
Potentially significant costs to the Office of Environmental
Health Hazard Assessment to conduct risk assessments.
Author
Amendments:
Removes reference to 10,000 feet setback and revises existing
public health risk assessment to focus on evaluating setback
distances from wellheads.
Requires DOGGR to review and update practices for subsurface
safety valves.
Requires DOGGR to develop a schedule for performing follow-on
proactive safety evaluations.
Clarifies annual inspection requirement for leak tests.
Removes requirement that wells older than an unspecified age
be phased out.
Clarifies which types of leaks trigger relief well provisions.
Add direction to the existing best practices determination
requirement to include risk assessment and automatic shut off
systems.
SB 887 (Pavley) Page 2 of
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Clarifies training requirements.
Makes clarifying, technical changes.
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