BILL NUMBER: SB 888 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 29, 2016
AMENDED IN SENATE MAY 31, 2016
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. management: leak mitigation.
(1) Existing law creates, within the office of the Governor, the
Office of Emergency Services 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 large
large, 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, or to 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) 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
The Public Utilities 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, Public Utilities 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.
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.
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 require that moneys
in this account shall be expended, upon
appropriation by the Legislature, solely for direct emissions
reductions in furtherance of the achievement of
achieving the greenhouse gas emissions limit, as
specified. 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 commu nities. The bill would require
the State Air Resources Board state board
to determine the amount of greenhouse gases emitted
by a leak for these purposes. 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.
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 large
large, 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, or to the environment. 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 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 all
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 Section 38550 of
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. the California Global Warming
Solutions Act of 2006 (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 equals the
amount of those gases emitted by that leak, as determined by the
State Air Resources Board.
(3) Moneys shall be expended consistent with Section 39713 of the
Health and Safety Code.
(4) (A) Consistent with the State Air Resources Board's Aliso
Canyon Climate Impacts Mitigation Program, moneys in the fund
resulting from penalties assessed for the Aliso Canyon gas leak shall
be expended to do any the following:
(i) Generate significant and quantifiable reductions in methane
emissions within the agriculture and waste sectors.
(ii) Promote a more sustainable energy infrastructure by promoting
energy efficiency and decreasing reliance on fossil fuels.
(iii) Address emissions from methane hot spots not presently
targeted under federal, state, or local laws.
(iv) Yield cobenefits in communities directly affected by the leak
and in disadvantaged communities.
(B) Projects in nearby communities harmed by the leak and other
communities directly affected by methane emissions, disadvantaged
communities, and communities within the Aliso Canyon service area
shall be prioritized when moneys are expended pursuant to
subparagraph (A).