BILL ANALYSIS �
AB 578
Page 1
Date of Hearing: January 19, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 578 (Hill) - As Amended: January 12, 2012
Policy Committee:
UtilitiesVote:11-2
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill requires the Public Utilities Commission (PUC) to
implement those recommendations of the National Transportation
Safety Board (NTSB) regarding natural gas pipeline safety that
the commission determines are appropriate. Specifically, this
bill:
1)Requires the PUC, beginning January 1, 2012, to determine if
implementation of NTSB recommendations issued in a pipeline
accident report and regarding natural gas pipeline safety are
appropriate or whether less costly and equally effective
alternatives exist.
2)Requires the PUC, if it determines either that a
recommendation is not appropriate or that there is no feasible
alternative, to state its reasons in writing on the record of
a proceeding.
3)Requires the PUC, if it determines a recommendation is
appropriate, to issue orders and adopt rules for
implementation as soon as practicable.
4)Requires the PUC to detail actions taken regarding NTSB
recommendations in the commission's annual report to the
Legislature and to authorize recovery in rates for utilities'
costs related to implementation of recommendations.
FISCAL EFFECT
Annual special fund costs of up to $130,000 to the PUC for two
half-time positions (administrative law judge and regulatory
AB 578
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analyst) to coordinate evaluation of NTSB recommendations and
feasible alternatives. According to information provided by the
author's office, relevant NTSB accident reports issued over the
past 11 years included 64 recommendations, with 32
recommendations coming from the board's report on the San Bruno
pipeline explosion.
COMMENTS
1)Background . The Pipeline and Hazardous Materials Safety
Administration (PHMSA) is the federal regulatory agency within
the Department of Transportation (DOT) with jurisdiction over
pipeline safety. PHMSA has certified the PUC to regulate
intrastate natural gas facilities within California. The DOT
may not prescribe or enforce safety standards for intrastate
pipelines for facilities regulated by a certified entity such
as the PUC. The NTSB is an independent body charged by
Congress to investigate major aviation, highway, railway,
marine, and pipeline accidents. Apart from limited standing to
bring civil suits related to aviation accidents, the NTSB has
no enforcement authority.
2)Purpose . In light of recent natural gas pipeline accidents in
California-most prominently the September 2010 explosion in
San Bruno that killed eight people-the author believes that
the PUC should take steps to implement NTSB safety
recommendations, and to state its reasons in writing if the
commission determines not to implement any recommendation. The
author notes that PHMSA is required by federal law to respond
to the NTSB within 90 days of receiving recommendation.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081