BILL NUMBER: SB 888	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 26, 2016
	PASSED THE ASSEMBLY  AUGUST 24, 2016
	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, 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 Public Utilities 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 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 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, 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.


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) 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.
   (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 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 to be determined by the
commission, in consultation with the State Air Resources Board, to
achieve a reduction in greenhouse gases that will fully offset the
impact on the climate from those gases emitted by that 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 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) Detect and address emissions from methane hot spots not
presently targeted under federal, state, or local laws.
   (iv) Where feasible, yield cobenefits in communities directly
affected by the leak and in disadvantaged communities.
   (B) 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.
   (d) This section shall not affect or be interpreted to affect the
authority of the State Air Resources 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.