BILL ANALYSIS �
AB 2559
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2559 (Buchanan)
As Amended August 14, 2012
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |71-0 |(May 25, 2012) |SENATE: |37-0 |(August 23, |
| | | | | |2012) |
-----------------------------------------------------------------
Original Committee Reference: U. & C.
SUMMARY : Provides the state's gas utilities with expedited
ministerial permitting for pipeline inspection, remediation,
removal and replacement work undertaken pursuant to pipeline
integrity management.
The Senate amendments require a local government to act on an
application from a public gas utility for a ministerial pipeline
project permit within a specified time period.
AS PASSED BY THE ASSEMBLY , this bill is substantially similar to
the Assembly version.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : The author states that "AB 2559 provides the state's
gas utilities expedited local permitting for pipeline
inspection, remediation and replacement work undertaken pursuant
to pipeline integrity management. This bill results from a
recommendation by the Independent Review Panel established by
PUC in the wake of the San Bruno tragedy. One of the Panel's
recommendations encourages the Legislature to enact legislation
that would provide the state's gas utilities with the right to
expedited permitting by counties and municipalities for pipeline
inspection, remediation and replacement that results from a
utility's pipeline integrity management plan. These pipeline
integrity management plans are currently required of operators
of gas transmission pipelines in order for the utilities to
assess and address potential problems with their pipelines. The
state's main gas operators have submitted Pipeline Safety
Enhancement Plans that propose a combined 815 miles of pressure
testing and 391 miles of pipe replacement for 2012-2014 alone.
It is vital that the state's gas operators have all the tools
available to them so that the safety work can be completed
expeditiously and on schedule. AB 2559 will help facilitate
this by providing gas utilities with expedited permitting by
AB 2559
Page 2
counties and municipalities for the operators' pipeline
inspection, remediation and replacement work. Codifying this
requirement of expedited permitting for pipeline integrity
management work will help speed up critical safety work, better
ensure public safety across California and put the public at
ease that all needed maintenance has been completed."
PUC formed its own review panel based on authority it cited in
its resolution to "do all things, whether specifically
designated in ... �the Public Utilities Code] or in addition
thereto, which are necessary and convenient" to our regulation
of public utilities, including, though not limited to, adopting
necessary rules and requirements in furtherance of our
constitutional and statutory duties to regulate and oversee
public utilities operating in California. " The Independent
Review Panel recommended that PUC "Request the California
General Assembly enact legislation that would provide the
state's gas utilities with the right to expedited permitting by
counties and municipalities for pipeline inspection, remediation
and replacement work undertaken pursuant to pipeline integrity
management."
Gas corporations have experienced permitting requirements by
local governments that appear to go beyond work related to
pipeline integrity management. Examples include unusually high
permitting fees or additional requirements, such as resurfacing
roads well beyond the area where the work is to be performed.
Ratepayers pay to make repairs and maintain utility
infrastructure. Additional costs caused by permitting delays,
and unusually high fees, impact the rates that utility customers
pay.
Local building and planning departments vary widely in resources
to review, issue, make a determination, and inspect construction
projects. In larger communities, there may be multiple plan
checkers and inspectors while in others there may be a single
person who works as both plan checker and inspector.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083
FN: 0005227
AB 2559
Page 3