BILL NUMBER: SB 888 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 19, 2016
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:
leak mitigation.
(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 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 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) 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 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 a penalty assessed against a gas
corporation pursuant to the act in regards to a natural gas storage
facility leak to at least equal the amount necessary to fully offset
the impact on the climate from the greenhouse gases
emitted by the leak from the natural gas storage facility, as
determined by the state board, and would require the commission to
consider the extent to which the gas corporation has mitigated, or is
in the process of mitigating, the impact on the climate from
greenhouse gas emissions resulting from the leak, as specified. The
bill would require the commission to deposit moneys from
penalties assessed against a gas corporation in regards to a
natural gas storage facility leak into the Gas Storage Facility
Leak Mitigation Account, which the bill would establish in the State
Treasury. The bill would require that moneys in this account be
expended, upon appropriation by the Legislature, solely for direct
emissions reductions in furtherance of achieving the greenhouse gas
emissions limit. limit and, if
sufficient moneys remain after mitigating the impact on the climate
from the gas corporation's emissions, to reimburse state and local
response costs. The bill would require these moneys to be
expended in a manner that achieves a reduction in greenhouse gases
that equals the amount of will fully offset
the impact on the climate from those gases emitted by the leak,
and in accordance with provisions requiring specified allocations to
disadvantaged communities. The bill would require the state board to
determine the amount of of, and impact on
the climate from, 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, 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 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 A penalty assessed against a
gas corporation pursuant to this part in regards to a natural gas
storage facility leak shall at least equal the amount necessary to
reduce the impact on the climate from greenhouse gases by an amount
equivalent to the impact on the climate from the greenhouse gases
emitted by the leak from the natural gas storage facility, as
determined by the State Air Resources Board. In determining the
amount necessary to fully offset the impact on the climate from the
gases emitted by the leak, the commission shall consider the extent
to which the gas corporation has mitigated, or is in the process of
mitigating, the impact on the climate from greenhouse gas
emissions resulting from the leak, provided that the mitigation is
consistent with subdivision (c), as determined by the State Air
Resources Board.
(b) The commission shall deposit
any penalties assessed against a gas corporation pursuant to this
part in regards to a natural gas storage facility leak
into the Gas Storage Facility Leak Mitigation Account, which is
hereby established in the State Treasury.
(b)
(c) Moneys in the account shall be expended, upon
appropriation by the Legislature, subject to 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 Section 38550 of the Health
and Safety Code. Code and, if sufficient
moneys remain after mitigating the impact on the climate from the gas
corporation's emissions, as specified in subdivision (a), to
reimburse state and local response costs. Moneys shall not be
used for the purchase of allowances or offsets otherwise authorized
pursuant to the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code).
(2) Moneys shall be expended in a manner that, at a
minimum, achieves to be determined by the commission,
in consultation with the State Air Resources Board, to achieve
a reduction in greenhouse gases that equals the amount of
will fully offset the impact on the climate from
those gases emitted by that leak, as determined by the
State Air Resources Board. leak.
(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 all 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 Detect and
address emissions from methane hot spots not presently targeted
under federal, state, or local laws.
(iv) Yield Where feasible, yield
cobenefits in communities directly affected by the leak and in
disadvantaged communities.
(B) Projects Priority shall be given to
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). area.
(d) This section shall not affect or be interpreted to affect the
authority of the State Air Resource's Board to adopt rules and
regulations to reduce greenhouse gas emissions at natural gas storage
facilities or to require mitigation of natural gas leaks from those
facilities.