BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 888 (Allen) - Gas corporations: emergency management ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 11, 2016 |Policy Vote: G.O. 9 - 0, E., | | | U., & C. 9 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 27, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- Bill Summary: SB 888 declares the Office of Emergency Services (OES) as the lead agency for emergency response to a significant leak of natural gas from a natural gas storage facility. The bill also directs the California Public Utilities (CPUC) to place any penalties assessed against a gas corporation for a natural gas storage facility leak into a special account and places requirements and restrictions on the use of the monies in the account. *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on May 27, 2016 Fiscal Impact: The annual cost of this bill would depend upon how many "significant" leaks occur in that year. Both OES and ARB provided the per incident costs below: o Approximately $600 (including staffing and travel SB 888 (Allen) Page 1 of ? costs) for OES to deploy an onsite coordinator. This would be recovered from the responsible party. o Approximately $100,000 (Oil, Gas and Geothermal Administrative Fund) for ARB to contract for downwind flights to characterize the natural gas release rate at reasonable periodic intervals using small planes with monitors to measure methane. Unknown, but potentially significant, redirection of penalty revenue from the General Fund to the Gas Storage Facility Leak Mitigation Account created by this bill. Committee Amendments: Clarifies that the Office of Emergency Services is the lead on significant gas leaks that pose a present or potential hazard to public health and safety, property, or to the environment. -- END --