BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 44 (Corbett)
Hearing Date: 05/26/2011 Amended: 04/25/2011
Consultant: Brendan McCarthy Policy Vote: EU&C 11-0
_________________________________________________________________
____
BILL SUMMARY: SB 44 requires the Public Utilities Commission to
establish emergency response standards that operators of natural
gas transmission and distribution lines must follow.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Development of standards $225 Special
*
* Public Utilities Commission Utilities Reimbursement Account.
_________________________________________________________________
____
STAFF COMMENTS: SUSPENSE FILE.
Federal law and general orders of the Public Utilities
Commission require the Commission to regulate natural gas
transmission, distribution, and other pipelines. Operators of
natural gas pipelines are required to develop emergency response
plans. Federal law also requires pipeline operators to provide
information to the federal Department of Transportation on the
location of gas pipelines. While federal law and Commission
orders generally give the Commission oversight responsibility
for natural gas pipelines, the scope of this oversight is
ambiguous.
SB 44 explicitly grants the Public Utilities Commission the
responsibility to regulate intrastate transmission lines,
intrastate distribution lines, intrastate gathering lines,
mobile home park distribution systems, and propane distribution
systems.
The bill requires the Public Utilities Commission to open a
proceeding, or expand an existing proceeding, to establish
emergency response standards for natural gas transmission and
SB 44 (Corbett)
Page 1
distribution lines, that must be followed by pipeline operators.
The bill requires the Commission to consult with the California
Emergency Management Agency and the California Fire Chiefs
Association. The bill also requires intrastate transmission
pipeline operators to provide information to the State Fire
Marshal and local emergency responders on how to access existing
information on pipeline locations. The bill requires the
Commission to report to the Legislature by January 1, 2013 on
the status of the development of the emergency response
standards.
The Public Utilities Commission has already opened a proceeding
to address oversight and regulation of natural gas pipelines.
The Commission indicates that expanding that proceeding to
include the development of emergency response standards,
including coordination with local emergency responders, will
require about $225,000 in additional funding.
SB 216 (Yee) requires the Public Utilities Commission to
evaluate current safety practices with regard to intrastate
natural gas transmission pipelines. The bill requires operators
of natural gas transmission pipelines to install automatic or
remote-controlled shut off valves in areas of high population
density or where pipelines cross active seismic faults. SB 216
will be heard in this committee.
AB 56 (Hill) requires the operators of natural gas pipelines to
institute safety programs and facilities modernization programs
and requires the Public Utilities Commission to oversee those
programs. AB 56 is in the Assembly
SB 879 (Padilla) requires the Public Utilities Commission to
require natural gas utilities to account for ratepayer funds
designated for pipeline maintenance and repair in a more
transparent way. That bill will be heard in this committee.