Amended in Assembly June 29, 2016

Amended in Senate May 31, 2016

Amended in Senate May 11, 2016

Amended in Senate April 25, 2016

Senate BillNo. 888


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: emergencybegin delete management.end deletebegin insert management: leak mitigation.end insert

(1) Existing law creates, within the office of the Governor, the Office of Emergencybegin delete Servicesend deletebegin insert Services,end insert 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 abegin delete largeend deletebegin insert large,end insert ongoing leak or release of natural gas and associated gases from a natural gas storage facility that poses a significant present or potential hazard to the public health and safety, property, orbegin delete toend delete the environment. 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) begin deleteUnder 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 end deletebegin insertThe Public Utilities Act end insertprovides 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 thebegin delete commission,end deletebegin insert Public Utilities Commissionend insert 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.

begin insert

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. Existing law requires the California Environmental Protection Agency to identify disadvantaged communities.

end insert

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 wouldbegin delete provideend deletebegin insert requireend insert that moneys in this accountbegin delete shallend delete be expended, upon appropriation by the Legislature, solely for direct emissions reductions in furtherance ofbegin delete the achievement ofend deletebegin insert achievingend insert the greenhouse gas emissionsbegin delete limit, as specified.end deletebegin insert limit. The bill would require these moneys to be expended in a manner that achieves a reduction in greenhouse gases that equals the amount of those gases emitted by the leak, and in accordance with provisions requiring specified allocations to disadvantaged communities.end insert The bill would require thebegin delete State Air Resources Boardend deletebegin insert state boardend insert to determine the amount ofbegin insert greenhouseend insert gases emitted by a leak for these purposes.begin insert The bill would require that moneys in the fund resulting from penalties assessed for the Aliso Canyon gas leak be expended, consistent with the state board’s Aliso Canyon Climate Impacts Mitigation Program, for specified purposes.end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 8585.01 is added to the Government
2Code
, to read:

3

8585.01.  

The Office of Emergency Services shall be the lead
4agency for emergency response to abegin delete largeend deletebegin insert large,end insert ongoing leak or
5release of natural gas and associated gases from a natural gas
6storage facility that poses a significant present or potential hazard
7to the public health and safety, property, orbegin delete toend delete the environment.
8The Office of Emergency Services shall coordinate among other
9state and local agencies the emergency response, public health and
10environmental assessment, monitoring, and long-term management
11and control of the leak.

12

SEC. 2.  

Section 972 is added to the Public Utilities Code, to
13read:

14

972.  

(a) The commission shall deposit any penalties assessed
15against a gas corporation pursuant to this part in regards to a gas
16storage facility leak into the Gas Storage Facility Leak Mitigation
17Account, which is hereby established in the State Treasury.

18(b) Moneys in the account shall be expended, upon appropriation
19by the Legislature, subject tobegin delete bothend deletebegin insert allend insert of the following conditions:

20(1) Moneys shall be expended solely for direct emissions
21reductions in furtherance of the achievement of the greenhouse
22gas emissions limit established pursuant tobegin delete Part 3 (commencing
23with Section 38550) of Division 25.5end delete
begin insert Section 38550 ofend insert the Health
24and Safety Code. Moneys shall not be used for the purchase of
25allowances or offsets otherwise authorized pursuant tobegin delete Division
2625.5 (commencing with Section 38500) of the Health and Safety
27Code.end delete
begin insert the California Global Warming Solutions Act of 2006
28(Division 25.5 (commencing with Section 38500) of the Health
29and Safety Code).end insert

P4    1(2) Moneysbegin delete from penalties assessed for a gas storage facility
2leakend delete
shall be expended in a manner that, at a minimum, achieves
3a reduction in greenhouse gases that equals the amount of those
4gases emitted by that leak, as determined by the State Air
5Resources Board.

begin insert

6
(3) Moneys shall be expended consistent with Section 39713 of
7the Health and Safety Code.

end insert
begin insert

8
(4) (A) Consistent with the State Air Resources Board’s Aliso
9Canyon Climate Impacts Mitigation Program, moneys in the fund
10resulting from penalties assessed for the Aliso Canyon gas leak
11shall be expended to do any the following:

end insert
begin insert

12
(i) Generate significant and quantifiable reductions in methane
13emissions within the agriculture and waste sectors.

end insert
begin insert

14
(ii) Promote a more sustainable energy infrastructure by
15promoting energy efficiency and decreasing reliance on fossil
16fuels.

end insert
begin insert

17
(iii) Address emissions from methane hot spots not presently
18targeted under federal, state, or local laws.

end insert
begin insert

19
(iv) Yield cobenefits in communities directly affected by the leak
20and in disadvantaged communities.

end insert
begin insert

21
(B) Projects in nearby communities harmed by the leak and
22other communities directly affected by methane emissions,
23disadvantaged communities, and communities within the Aliso
24Canyon service area shall be prioritized when moneys are
25expended pursuant to subparagraph (A).

end insert


O

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