BILL ANALYSIS �
Bill No: AB
2201
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
AB 2201 Author: Bradford
As Amended: April 25, 2012
Hearing Date: June 26, 2012
Consultant: Paul Donahue
SUBJECT
California Pipeline Safety Act of 1981 - civil penalties
DESCRIPTION
Raises the civil penalties associated with violations of
the Elder California Pipeline Safety Act of 1981 (Act).
Specifically, this bill :
1)Increases from $10,000 to $200,000 the civil penalties
for each day that a violation of the Act persists.
2)Increases the maximum civil penalties for any related
series of violations of the Act from $500,000 to $2
million.
EXISTING LAW
1)Provides the State Fire Marshal (SFM), under the Elder
California Pipeline Safety Act of 1981, with safety
regulatory jurisdiction over interstate pipelines used
for the transportation of hazardous or highly volatile
liquid substances, subject to federal law.
2)Establishes that a violation of the Act, as determined by
the SFM, is a civil penalty of not more than $10,000 for
each day that the violation persists.
3)Establishes that the maximum civil penalty for any
AB 2201 (Bradford) continued
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related series of violations is not permitted to exceed
$500,000.
4)Requires the SFM to deposit these civil penalties into
the Local Training Account in the California Hazardous
Liquid Pipeline Safety Fund. The money is available,
upon appropriation by the Legislature, to the State Fire
Marshal, who is required to use the money for providing
hazardous liquid fire suppression training to local fire
departments.
BACKGROUND
1)Although 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 intrastate 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
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. The
PHMSA uses a point system based on program performance
and available grant dollars in awarding grant amounts.
In July 2011, PHMSA notified the State of California
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.
2)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 $10,000 maximum penalty per
violation is too low to provide an effective deterrent or
to appropriately punish an operator for serious pipeline
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safety violations.
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 the State of
California continues to receive the appropriate federal
grant funds.
SUPPORT:
None on file
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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