BILL ANALYSIS �
AB 2564
Page 1
CORRECTED : 08/27/2012
ASSEMBLY THIRD READING
AB 2564 (Ma)
As Amended August 21, 2012
2/3 vote. Urgency
NATURAL RESOURCES 9-0 APPROPRIATIONS 16-0
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|Ayes:|Chesbro, Knight, |Ayes:|Gatto, Harkey, |
| |Brownley, Dickinson, | |Blumenfield, Bradford, |
| |Grove, Halderman, | |Charles Calderon, Campos, |
| |Huffman, Monning, Skinner | |Davis, Fuentes, Hall, |
| | | |Hill, Cedillo, Mitchell, |
| | | |Nielsen, Norby, Solorio, |
| | | |Wagner |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Expands the application of an existing California
Environmental Quality Act (CEQA) exemption for pipeline projects
less than one mile in length. Specifically, this bill:
1)Requires a "resource agency," in determining whether a
"natural gas pipeline safety enhancement activity" is eligible
for the one-mile exemption, to consider only the length of
pipeline that is within the agency's legal jurisdiction.
2)Revises the definition of "pipeline" to include surface
accessories or appurtenances to a pipeline (all surface
facilities are currently excluded).
3)Defines "resource agency" as the State Lands Commission,
Coastal Commission, Department of Fish and Game, State Water
Resources Control Board, regional water quality control
boards, and local or regional agencies with coastal permitting
authority.
4)Defines "natural gas pipeline safety enhancement activity" as
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 (PUC).
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5)Authorizes public agencies to allow the applicant for a
natural gas pipeline safety enhancement activity to pay for a
contract with a third party to assist the public agency in
reviewing the project.
6)Contains findings regarding natural gas pipeline safety,
including statutory and PUC requirements for pressure testing
and replacement established in response to the September 9,
2010, pipeline rupture, explosion and fire in San Bruno.
7)Contains an urgency clause.
EXISTING LAW :
1)Requires lead agencies with the principal responsibility for
carrying out or approving a proposed project to prepare a
negative declaration, mitigated negative declaration, or
environmental impact report for this action, unless the
project is exempt from CEQA (CEQA includes various statutory
exemptions, as well as categorical exemptions in the CEQA
Guidelines).
2)Provides that CEQA does not apply to a pipeline project 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 or the maintenance, repair, restoration,
reconditioning, relocation, replacement, removal, or
demolition of an existing pipeline. Excludes any surface
facility related to the operation of the underground pipeline.
3)Requires the CEQA Guidelines to include a list of classes of
projects that have been determined by the Secretary of the
Natural Resources Agency to not to have a significant effect
on the environment and that shall be exempt from CEQA.
Included in this list of "categorical exemptions" are:
a) Repair and maintenance of existing public or private
facilities, involving negligible or no expansion of use,
including existing facilities of both investor and publicly
owned utilities used to provide electric power, natural
gas, sewerage, or other public utility services.
(Guidelines Section 15301); and,
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b) Replacement or reconstruction of existing facilities on
the same site with the same purpose and capacity, including
existing utility systems and/or facilities involving
negligible or no expansion of capacity. (Guidelines
Section 15302).
4)Requires each gas utility to prepare and submit to the PUC a
proposed comprehensive pressure testing implementation plan
and implementation timeline for all intrastate transmission
lines to either pressure test those lines or to replace all
segments of intrastate transmission lines that were not
pressure tested or that lack sufficient details related to
performance of pressure testing.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor absorbable state costs to consider
applicability of the exemption to a pipeline enhancement safety
project and 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 : CEQA provides a process for evaluating the
environmental effects of applicable projects undertaken or
approved by public agencies. If a project is not exempt from
CEQA, an initial study is prepared to determine whether the
project may have a significant effect on the environment. If
the initial study shows that there would not be a significant
effect on the environment, the lead agency must prepare a
negative declaration. If the initial study shows that the
project may have a significant effect on the environment, the
lead agency must prepare an EIR.
Generally, an EIR must accurately describe the proposed project,
identify and analyze each significant environmental impact
expected to result from the proposed project, identify
mitigation measures to reduce those impacts to the extent
feasible, and evaluate a range of reasonable alternatives to the
proposed project. Prior to approving any project that has
received environmental review an agency must make certain
findings. If mitigation measures are required or incorporated
into a project, the agency must adopt a reporting or monitoring
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program to ensure compliance with those measures.
CEQA includes limited exemptions for relatively small-scale
pipeline maintenance and installation projects. A general
exemption is available for projects under one mile in length. A
more specific exemption is available for projects up to eight
miles in length involving maintenance and replacement, but not
expansion, of pipelines regulated under the Pipeline Safety Act
(e.g., petroleum pipelines).
This bill would direct a resource agency which is the lead
agency for CEQA review of a natural gas safety enhancement
activity to consider only the length of pipeline within the
agency's legal jurisdiction. For an agency with a
clearly-defined geographic jurisdiction, such as the Coastal
Commission, the bill appears to expand the application of the
one-mile exemption by allowing part of a project of more than
one mile to qualify for the exemption if less than one mile of
the project lies within the Coastal Zone. For an agency with
jurisdiction throughout the state, such as Fish and Game, the
bill appears to have negligible effect.
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092
FN: 0005298