BILL ANALYSIS �
AB 578
Page 1
ASSEMBLY THIRD READING
AB 578 (Hill)
As Amended January 12, 2012
Majority vote
UTILITIES & COMMERCE 11-2
APPROPRIATIONS 12-5
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|Ayes:|Bradford, Fletcher, |Ayes:|Fuentes, Blumenfield. |
| |Buchanan, Fong, Fuentes, | |Bradford, Charles |
| |Perea, Wieckowski, Ma, | |Calderon, Campos, |
| |Nestande, Skinner, | |Chesbro, Gatto, Hall, |
| |Swanson | |Hill, Ammiano, Mitchell, |
| | | |Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Beth Gaines, Knight |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
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SUMMARY : Requires the California Public Utilities Commission
(PUC) to implement those recommendations of the National
Transportation Safety Board (NTSB) regarding natural gas
pipeline safety that the PUC 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 PUC's annual report to the Legislature
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and to authorize recovery in rates for utilities' costs
related to implementation of recommendations.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, annual special fund costs of up to $130,000 to PUC
for two half-time positions (administrative law judge and
regulatory 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 : According to the author, "recent natural gas pipeline
accidents in California have received attention throughout the
country. The most visible was that in San Bruno in late 2010,
but natural gas accidents in Cupertino and Roseville at the end
of last year highlight exactly how pervasive our problems are.
These problems, however, are not new, have been documented, and
could have been mitigated for more than a decade had our state
regulatory paid closer attention to them and required utilities
to follow the prescribed solutions."
NTSB safety recommendations: In response to the San Bruno
explosion, last year NTSB
issued recommendations to the U.S. Secretary of Transportation,
the U.S. Department of Transportation Pipeline and Hazardous
Materials Safety Administration (PHMSA), the Governor of the
State of California, PUC, Pacific Gas & Electric Company (PG&E),
and the American Gas Association and the Interstate Natural Gas
Association of America.
PUC actions to date have been consistent with the preliminary
and final recommendations of NTSB. PUC instituted Rulemaking
11-02-019 to examine regulatory changes and other actions that
PUC regulated gas transmission operators PG&E, Southern
California Gas Company (SoCalGas), San Diego Gas & Electric
Company (SDG&E), and Southwest Gas Corporation (SWGC) needed to
take to improve the safety of their systems. In addition, PUC
has taken action to reform its own regulatory oversight
function. For example, PUC has appointed an Independent Review
Panel to look at both PG&E and PUC actions leading up to San
Bruno. The Independent Panel's report was critical of both PG&E
and PUC.
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According to a recent press release, PG&E reports their progress
on fulfilling NTSB recommendations - some of which have already
been completed. These include: verification of maximum
allowable operation pressure on 1,600 miles of pipelines;
updated their emergency response plans; implemented a data
management system to ensure that PG&E records are traceable,
verifiable and complete; notifications provided to customers
living within 2,000 feet of a transmission pipeline;
installation of automated valves; and, the filing of their
Pipeline Safety Enhancement Plan which details planned
improvements over the next few years.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
FN: 0003056