BILL NUMBER: AB 2564	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 7, 2012
	AMENDED IN ASSEMBLY  JUNE 26, 2012
	AMENDED IN ASSEMBLY  JUNE 12, 2012
	AMENDED IN ASSEMBLY  APRIL 25, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Ma

                        FEBRUARY 24, 2012

   An act to amend  Sections 21080.21,   Section
 21100.2  , and 21168.6  of, and to add 
and repeal  Section  21063.5 to  
21080.21.5 of  , the Public Resources Code, relating to
environmental quality, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2564, as amended, Ma. Environmental quality: pipelines: project
applicants.
   (1) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and
certify the completion of, an environmental impact report (EIR) on a
project that it proposes to carry out or approve that may have a
significant effect on the environment or to adopt a negative
declaration if it finds that the project will not have that effect.
CEQA exempts a project of less than one mile in length within a
public street or highway or any other public right-of-way for the
installation of a new pipeline, as defined, or the maintenance,
repair, restoration, reconditioning, relocation, replacement,
removal, or demolition of an existing pipeline.
   This bill would  also   additionally 
except from CEQA a  natural gas  pipeline  safety
enhancement  project  of less than 8 miles in length,
but would restrict this exemption to activities that do not take
place along more than one mile at any one time. The bill would also
revise the definition of the term pipeline for purposes of this
exemption to delete the exclusion for surface facilities related to
the operation of the underground facility   , as
defined, that meets specified requirements. The bill would require a
person undertaking such a project to take certain actions with regard
to the notification of public agencies and compliance with other
permits and statutes. The bill would repeal this exemption on January
1, 2017  .
   The bill would also require a public agency to establish a process
that would allow an applicant for a natural gas pipeline safety
enhancement project  , as defined,  to elect to pay
additional fees to be used by the public agency in determining
whether to approve that project by entering into a contract with one
or more 3rd parties to assist the public agency to perform the
analysis. The bill would impose a state-mandated local program by
imposing new duties upon local agencies.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (3) This bill would declare that it is to take effect immediately
as an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) On September 9, 2010, a 30-inch-diameter segment of an
intrastate natural gas transmission pipeline ruptured in a
residential neighborhood in the City of San Bruno. The rupture caused
an explosion and fire devastating a community and igniting a call to
action.
   (b) On January 2, 2011, the Public Utilities Commission (PUC)
ordered Pacific Gas and  Electric(PG&E)  
Electric (PG   &   E)  , Southern California
Gas (SoCalGas), San Diego Gas and Electric (SDG&E), and Southwest Gas
to perform a comprehensive records review of their transmission
pipelines and identify those that have not had their maximum
allowable operating pressure established by pressure testing.
   (c) Federal law exempts from pressure test requirements pipelines
placed in service prior to 1970. The National Transportation Safety
Board, who has principle jurisdiction over the investigation into San
Bruno, concluded that there is no safety justification for the
grandfather clause exempting pre1970 pipelines from the requirement
for postconstruction hydrostatic pressure testing.
   (d) Pursuant to PUC order and  section  
Section  958 of the Public Utilities Code, enacted by Assembly
Bill 56 (Chapter 519, Statutes of 2011), gas corporations are
required to prepare comprehensive pressure testing implementation
plans to pressure test or replace all intrastate natural gas
transmission pipelines as soon as practicable.
   (e) The scope of work to be accomplished within the implementation
plans is unprecedented and will create thousands of jobs within the
state.
   (f) The safe and expeditious completion of these pipeline safety
enhancements is a state and public safety priority.
   (g) It is a matter of statewide concern to achieve the timely
completion of natural gas pipeline safety enhancements, including
programs for maintenance and operation enhancements, and to
contribute to the public's confidence in the safety of natural gas
pipelines and their ongoing maintenance and operation.
    (h) It is in the public interest to accelerate the permitting
process for natural gas pipeline safety enhancements, including
programs for maintenance and operation enhancements, and for
permitting agencies to give these projects priority in processing
permits.
   (i) It is in the public interest to enable state agencies to
better carry out their permitting responsibilities by providing
applicants an option for enhancing available resources for permit
processing. 
  SEC. 2.    Section 21063.5 is added to the Public
Resources Code,to read:
   21063.5.  "Natural gas pipeline safety enhancement project" means
an activity undertaken by a public utility as part of a program to
enhance the safety of intrastate natural gas pipelines in accordance
with a decision, rule, or regulation adopted by the Public Utilities
Commission.  
  SEC. 3.    Section 21080.21 of the Public
Resources Code is amended to read:
   21080.21.  (a) This division does not apply to any project of
either of the following:
   (1) Up to one mile in length within a public street or highway or
any other public right-of-way for the installation of a new pipeline
or the maintenance, repair, restoration, reconditioning, relocation,
replacement, removal, or demolition of an existing pipeline.
   (2) Greater than one mile in length, but less than eight miles in
length, within a public street or highway or any other public
right-of-way for the installation of a new pipeline or the
maintenance, repair, restoration, reconditioning, relocation,
replacement, removal, or demolition of an existing pipeline, if the
activity does not take place along more than one mile at any one
time.
   (b) For purposes of this section, "pipeline" includes any valve,
flange, meter, or other piece of equipment that is directly attached
to the pipeline.
   (c) If a project meets the requirements of paragraph (2) of
subdivision (a), the person undertaking the project shall do the
following:
   (1) Notify, in writing, any public agency having discretionary
permit and land use authority of the exemption of the project from
this division no later than 10 days prior to undertaking the project,
and thereafter proceed to secure all appropriate ministerial permits
from the public agency.
   (2)  Comply with all conditions otherwise authorized by law,
imposed by any state agency as part of any permit process, and
otherwise comply with the California Endangered Species Act (Chapter
1.5 (commencing with Section 2050) of Division 3 of the Fish and Game
Code), the California Coastal Act of 1976 (Division 20 (commencing
with Section 30000) of the Public Resources Code), and other
applicable state and federal laws. 
   SEC. 2.    Section 21080.21.5 is added to the 
 Public Resources Code   , to read:  
   21080.21.5.  (a) For purposes of this section, the following
definitions shall apply:
   (1) "Natural gas pipeline safety enhancement project" means an
activity for the installation of a new pipeline or the maintenance,
repair, restoration, reconditioning, relocation, replacement,
removal, or demolition of an existing pipeline undertaken by a public
utility as part of a program to enhance the safety of intrastate
natural gas pipelines, in accordance with a decision, rule, or
regulation adopted by the Public Utilities Commission.
   (2) "Pipeline" includes any valve, flange, meter, or other piece
of equipment that is directly attached to a pipeline.
   (b) This division does not apply to a natural gas pipeline safety
enhancement project if the project meets all of the following
requirements:
   (1) The project is less than eight miles in length.
   (2) The project is within a public street or highway or other
public right-of-way.
   (3) The right-of-way is restored to its condition prior to the
project.
   (4) Construction activity does not take place along more than one
mile at any one time.
   (5) The project is not located in a resource area, as defined in
Section 65080.01 of the Government Code.
   (c) A person undertaking a natural gas pipeline safety enhancement
project pursuant to this section shall do both of the following:
   (1) Provide written notification of the exemption of the project
from this division to any public agency that has discretionary permit
and land use authority, no later than 10 days prior to undertaking
the project, and thereafter proceed to secure all appropriate
ministerial permits from the public agency.
   (2) Comply with all conditions otherwise authorized by law or
imposed by any state agency as part of any permit process and
otherwise comply with the California Endangered Species Act (Chapter
1.5 (commencing with Section 2050) of Division 3 of the Fish and Game
Code), the California Coastal Act of 1976 (Division 20 (commencing
with Section 30000)), and other applicable state and federal laws.
   (d) A project shall not be divided into smaller projects to
qualify for one or more exemptions pursuant to this section.
   (e) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date. 
   SEC. 4.   SEC. 3.   Section 21100.2 of
the Public Resources Code is amended to read:
   21100.2.  (a) (1) For projects described in subdivision (c) of
Section 21065, each state agency shall establish, by resolution or
order, time limits that do not exceed the following:
   (A) One year for completing and certifying environmental impact
reports.
   (B) One hundred eighty days for completing and adopting negative
declarations.
   (2) The time limits specified in paragraph (1) shall apply only to
those circumstances in which the state agency is the lead agency for
a project. These resolutions or orders may establish different time
limits for different types or classes of projects, but all limits
shall be measured from the date on which an application requesting
approval of the project is received and accepted as complete by the
state agency.
   (3) No application for a project may be deemed incomplete for lack
of a waiver of time periods prescribed in state regulations.
   (4) The resolutions or orders required by this section may provide
for a reasonable extension of the time period in the event that
compelling circumstances justify additional time and the project
applicant consents thereto.
   (b) If a draft environmental impact report, environmental impact
report, or focused environmental impact report is prepared under a
contract to a state agency, the contract shall be executed within 45
days from the date on which the state agency sends a notice of
preparation pursuant to Section 21080.4. The state agency may take
longer to execute the contract if the project applicant and the state
agency mutually agree to an extension of the time limit provided by
this subdivision.
   (c) (1) A public agency shall establish a process that would allow
 an applicant for  a natural gas pipeline safety
enhancement project  applicant  to elect to pay
additional fees to be used by the public agency in determining
whether to approve a natural gas pipeline safety enhancement project
by entering into a contract with one or more third parties to assist
the public agency to perform the analysis, consistent with Article
VII of the California Constitution and Section 19130 of the
Government Code and the charter of a chartered city or county, as
applicable. The public agency may, but is not required to, offer a
project applicant the option to pay those fees and subject a project
to this process.
   (2) The amount of the fees charged by the public agency pursuant
to this subdivision shall be conditioned upon the natural gas
pipeline safety enhancement project applicant agreeing to that amount
and electing to proceed with the retention of a third party pursuant
to this subdivision.
   (3) All fees paid by a natural gas pipeline safety enhancement
project applicant shall be used exclusively for analysis of that
applicant's application for certification. 
   (4) For purposes of this section, "natural gas pipeline safety
enhancement project" has the same meaning as defined in paragraph (1)
of subdivision (a) of Section 21080.21.5. 
   SEC. 5.  SEC. 4.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because a local agency or school district has
the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act, within the meaning of Section 17556 of the Government Code.

   SEC. 6.   SEC. 5.   This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
   In order to achieve the timely completion of natural gas pipeline
safety enhancements, including programs for maintenance and operation
enhancements, and to contribute to the public's confidence in the
safety of natural gas pipelines and their ongoing maintenance and
operation, thereby protecting public health and safety, it is
necessary for this act to take effect immediately.