BILL NUMBER: SB 888	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 11, 2016
	AMENDED IN SENATE  APRIL 25, 2016

INTRODUCED BY   Senator Allen
   (Coauthors: Senators De León and Pavley)
   (Coauthor: Assembly Member Wilk)

                        JANUARY 20, 2016

   An act to add Section 8585.01 to the Government Code, and to add
Section 972 to the Public Utilities Code, relating to gas
corporations.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 888, as amended, Allen. Gas corporations: emergency management.

   (1) Existing law creates, within the office of the Governor, the
Office of Emergency Services which, under the Director of Emergency
Services, coordinates disaster response, emergency planning,
emergency preparedness, disaster recovery, disaster mitigation, and
homeland security activities.
   This bill would establish the Office of Emergency Services as the
lead agency for emergency response to a  significant  leak
of natural gas from a natural gas storage facility. The bill would
require the Office of Emergency Services to coordinate among other
state  and local  agencies the emergency response, public
health and environmental assessment, monitoring, and long-term
management and control of the leak.
   (2) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including gas
corporations, as defined. The Public Utilities Act requires the
commission to investigate the cause of all accidents occurring upon
the property of any public utility, or directly or indirectly arising
from or connected with its maintenance or operation, resulting in
loss of life or injury to person or property and requiring, in the
judgment of the commission, investigation by it, and authorizes the
commission to make any order or recommendation with respect to the
investigation that it determines to be just and reasonable. The act
provides that any public utility that violates any provision of the
California Constitution or the act, or that fails or neglects to
comply with any order, decision, decree, rule, direction, demand, or
requirement of the commission, where a penalty has not otherwise been
provided, is subject to a penalty of not less than $500 and not more
than $50,000 for each offense. Existing law requires that any fine
or penalty imposed by the commission and collected from a public
utility be paid to the State Treasury to the credit of the General
Fund.
   This bill would require the commission to deposit moneys from
penalties assessed against a gas corporation in regards to a gas
storage facility leak into the Gas Storage Facility Leak Mitigation
Account, which the bill would establish in the State Treasury. The
bill would provide that moneys in this account shall be expended,
upon appropriation by the Legislature, solely for direct emissions
reductions in furtherance of the achievement of the greenhouse gas
emissions limit, as specified.  The bill would require the State
Air Resources Board to determine the   amount of gases
emitted by a leak for these purposes. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8585.01 is added to the Government Code, to
read:
   8585.01.  The Office of Emergency Services shall be the lead
agency for emergency response to a  significant  leak of
natural gas from a natural gas storage facility. The Office of
Emergency Services shall coordinate among other state  and local
 agencies the emergency response, public health and
environmental assessment, monitoring, and long-term management and
control of the leak.
  SEC. 2.  Section 972 is added to the Public Utilities Code, to
read:
   972.  (a) The commission shall deposit any penalties assessed
against a gas corporation pursuant to this  chapter 
 part  in regards to a gas storage facility leak into the
Gas Storage Facility Leak Mitigation Account, which is hereby
established in the State Treasury.
   (b) Moneys in the account shall be expended, upon appropriation by
the Legislature, subject to both of the following conditions:
   (1) Moneys shall be expended solely for direct emissions
reductions in furtherance of the achievement of the greenhouse gas
emissions limit established pursuant to Part 3 (commencing with
Section 38550) of Division 25.5 the Health and Safety Code. Moneys
shall not be used for the purchase of allowances or offsets otherwise
authorized pursuant to Division 25.5 (commencing with Section 38500)
of the Health and Safety Code.
   (2) Moneys from penalties assessed for a gas storage facility leak
shall be expended in a manner that, at a minimum, achieves a
reduction in greenhouse gases that  exceeds  
equals  the amount of those gases emitted by that  leak.
  leak, as determined by the State Air Resources Board.