BILL ANALYSIS �
AB 2564
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Date of Hearing: August 16, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2564 (Ma) - As Amended: August 13, 2012
Policy Committee: Natural
ResourcesVote:9-0
Urgency: Yes State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
As proposed to be amended, this bill creates an exemption to the
California Environmental Quality Act (CEQA) for natural gas
pipeline safety enhancement projects. Specifically, this bill:
1)Creates a CEQA exemption for a natural gas pipeline safety
enhancement project of less than one mile, if certain
conditions are met, including that the project be:
a) Within a public street or highway or any other public
right-of-way.
b) For the installation or a new pipeline or the
maintenance, repair, restoration, reconditioning,
relocation, replacement, removal or demolition of an
existing pipeline, as defined.
c) Undertaken by a public utility as part of a program to
enhance public safety of an intrastate natural gas pipeline
in accordance with a decision, rule or regulation of the
California Public Utilities Commission (CPUC).
2)Restricts a state resources agency, as defined, when
determining the applicability of the exemption to a pipeline
project, to consideration of only the length of the pipeline
within the resource agency's jurisdiction, as opposed to the
entire length of the pipeline project.
3)Authorizes a public agency to establish a process to allow an
applicant for a natural gas pipeline safety enhancement
project to voluntarily pay fees to be used by the agency for a
third-party contract to determine whether to approve the
project.
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FISCAL EFFECT
1)Minor, absorbable state costs to consider applicability of the
exemption to a pipeline enhancement safety project.
2)Potential costs of an unknown amount, but likely no more than
tens of thousands of dollars, to a state agency that elects to
establish a process to allow an applicant for a natural gas
pipeline safety enhancement project to voluntarily pay fees to
be used by the agency for a third-party contract to determine
whether to approve the project (various funds).
COMMENTS
1)Rationale. The author intends this bill to allow public
utilities to quickly make safety enhancements to natural gas
pipelines, in keeping with an order of the CPUC. The author
describes the bill as a response to the explosion of a Pacific
Gas and Electric natural gas pipeline in the City of San Bruno
in 2010, which resulted in eight deaths and millions in
property damage.
2)Background. The California Environmental Quality Act
obligates public officials to consider the environmental
effects of their decisions. The lead agency that proposes to
approve a project must conduct an initial study to determine
if the project may have significant, adverse environmental
effects, though some projects on existing facilities are
exempt from CEQA. If the lead agency determines the project
does not have significant, adverse environmental effects, it
issues a negative declaration and, after a 30-day review
period, proceeds with its review and decision. If the lead
agency finds minor effects that can be mitigated, it issues a
mitigated negative declaration and then proceeds. If the lead
agency finds that the effects of the project may be
significant, it prepares an environmental impact report (EIR),
a document that shows public officials how to avoid or
mitigate the project's environmental effects.
Preparing the EIR begins when the lead agency sends notice of
preparation to other public agencies, soliciting advice on the
EIR's scope. If the project is of statewide, regional, or
area-wide significance, the lead agency holds a scoping
meeting with the other agencies. The lead agency circulates
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its draft EIR and invites public comments during a 45-day
review period.
After this public review, the lead agency issues a final EIR
that responds to the comments that it received. After
certifying the final EIR, the lead agency files notice to
allow the project to proceed.
Existing law provides an exemption from CEQA for a pipeline
project less than eight miles in length consisting of
inspection, maintenance, repair, restoration, reconditioning,
relocation, replacement, or removal of an existing intrastate
liquid pipeline subject to the Pipeline Safety Act, if certain
conditions are met. The exemption does not apply to a natural
gas pipeline project.
3)Support . This bill is supported by the state's major gas
corporations, local fire authorities and many other who seek
the quick implementation of safety enhancements of the state's
natural gas pipelines.
4)Opposition. Previous versions of this bill were opposed by
the Planning and Conservation League, Sierra Club California
and other organizations who are concerned about the potential
environmental and public health effects of projects subject to
the CEQA exemption provided by this bill. It is not clear if
the proposed amendments remove this opposition.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081