BILL ANALYSIS �
AB 2201
Page 1
Date of Hearing: May 9, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2201 (Bradford) - As Amended: April 25, 2012
Policy Committee: Governmental
Organization Vote: 15 - 1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill increases the civil penalties associated with
violations of the Elder California Pipeline Safety Act of 1981
from $10,000 per day of violation to $200,000 and from $500,000
to $2 million for any related series of violations.
FISCAL EFFECT
There are no significant costs associated with this legislation.
COMMENTS
1)Purpose . According to the author the assessment of civil
penalties is reserved for the most serious of violations where
the risk to the public and/or damage to the environment has
occurred or could have occurred due to operator negligence.
The author argues that the $10,000 maximum penalty per
violation is too low to provide an effective deterrent or to
appropriately punish an operator for serious pipeline safety
violations.
The author argues that the increases in civil penalties will
make California's penalties more in line with similar federal
civil penalties, provide for an effective deterrent,
appropriately punish an operator for serious pipeline safety
violations, and ensure that California continues to receive
federal grant funds.
2)Elder California Pipeline Safety Act of 1981 . The Elder
California Pipeline Safety Act of 1981 (named after former
Assemblymember Dave Elder) vests the State Fire Marshal with
AB 2201
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the exclusive safety regulatory and enforcement authority over
intrastate hazardous liquid pipelines and, to the extent
authorized by an agreement between the State Fire Marshal and
the United States Department of Transportation, interstate
hazardous liquid pipelines.
3)Background . While the federal government is primarily
responsible for developing, issuing and enforcing pipeline
safety regulations, under the U.S. Department of
Transportation's Pipeline and Hazardous Materials Safety
Administration (PHMSA), the pipeline safety statutes provide
for state regulatory, inspection, and enforcement
responsibilities under an annual certification. To qualify for
certification, a state must adopt the minimum federal
regulations. A state must also provide for injunctive and
monetary sanctions substantially the same as those authorized
by the federal pipeline safety statutes.
As part of this program, PHMSA provides reimbursable federal
grant funds to state pipeline programs to offset up to 80% of
costs. According to the author, these funds currently range
from $1 million to $1.4 million. PHMSA uses a point system
based on program performance and available grant dollars in
awarding grant amounts.
In July 2011, PHMSA notified California's pipeline safety
programs that they will deduct points beginning in 2012 if the
state has not achieved the desired penalty levels as set forth
by this bill by the end of 2012.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081