BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 44
                                                                  Page  1

          Date of Hearing:   June 27, 2011

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Steven Bradford, Chair
                    SB 44 (Corbett) - As Amended:  April 25, 2011

           SENATE VOTE  :   39-0
           
          SUBJECT  :   Public utilities: gas pipeline emergency response 
          standards

           SUMMARY  :   This bill requires the California Public Utilities 
          Commission (PUC) to set emergency response standards for 
          PUC-regulated gas pipeline and distribution systems and requires 
          that access to pipeline maps be made accessible to the State 
          Fire Marshal and the local fire marshal.  Specifically,  this 
          bill  :   

             1)   Defines a commission-regulated gas pipeline facility to 
               include transmission, distribution and gathering pipeline 
               facilities operated by investor-owned utilities, 
               master-metered mobile home parks, storage facilities, and 
               propane operators. 

             2)   Requires the PUC to commence a proceeding to establish 
               emergency response standards, which include emergency 
               response plans, to be followed by owners or operators of 
               commission-regulated gas pipeline facilities, in 
               consultation with the Office of Emergency Services and 
               first responders including the California Fire Chiefs 
               Association 

             3)   Requires the emergency response plans to include a 
               requirement that pipeline owners and operators  provide the 
               State Fire Marshal and fire chiefs in the pipeline 
               operator's territory with geographic information system 
               maps of the pipeline system within the owner's or 
               operator's control.

           EXISTING LAW :  

          State (PUC and the Office of the State Fire Marshal) and federal 
          (U.S. Department of Transportation) regulators are tasked with 
          ensuring that pipeline and hazardous materials operators have 
          risk management programs in place, that those programs are 








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          designed in conformance with state and federal laws, that the 
          programs are effective in achieving safety for the public and 
          the employees of the operator, and that the entire system of 
          achieving safety continues to improve itself. 

          The PUC enforces statues and rules (General Order 112-E) which 
          establish, in addition to the Federal Pipeline Safety 
          Regulations, minimum requirements for the design, construction, 
          quality of materials, locations, testing, operations and 
          maintenance of facilities used in the gathering, transmission 
          and distribution of gas and in liquefied natural gas facilities 
          to safeguard life or limb, health, property and public welfare 
          and to provide that adequate service will be maintained by gas 
          utilities operating under the jurisdiction of the commission.

          The PUC conducts compliance inspections, accident 
          investigations, reviews utilities' reports and records, conducts 
          construction inspections, conducts special studies, and takes 
          action in response to complaints and inquiries from the public 
          on issues regarding gas pipeline and electric safety. The PUC 
          also conducts audits and inspections of gas facilities owned and 
          operated by mobile home parks, and audits and inspections of 
          underground propane gas distributions systems.

          The PUC has responsibility to ensure compliance with federal 
          pipeline management standards for over 11,000 miles of 
          transmission pipeline and almost 2,350 miles of transmission 
          pipeline in high consequence areas.

          The Office of the State Fire Marshal (SFM) regulates the safety 
          of approximately 5,500 miles of intrastate hazardous liquid 
          transportation pipelines and acts as an agent of the federal 
          Office of Pipeline Safety concerning the inspection of more than 
          2,000 miles of interstate pipelines. Pipeline Safety staff 
          inspect, test, and investigate to ensure compliance with all 
          federal and state pipeline safety laws and regulations.  All 
          spills, ruptures, fires, or similar incidents are responded to 
          immediately; all such accidents are investigated for cause.  
          Hazardous liquid pipelines are also periodically tested for 
          integrity using procedures approved by SFM.  The program has 
          been certified by the federal government since 1981.  The SFM 
          also maintains Geographic Information Systems (GIS)-based maps 
          of all regulated pipelines and has been named as a state 
          repository for pipeline data by the National Pipeline Mapping 
          System (NPMS).








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           FISCAL EFFECT  :   Unknown

           COMMENTS :   


          According to the author, SB 44 requires natural gas operators to 
          improve communication and coordination with first responders by 
          requiring the PUC, in consultation with the California Emergency 
          Management Agency and The California Fire Chiefs Association to 
          adopt stricter emergency response standards.


          On September 9, 2010, a portion of a 30-inch diameter 
          underground natural gas transmission system of Pacific Gas and 
          Electric Company (PG&E) suddenly ruptured.  The pipeline was 
          located under the asphalt paving at the intersection of Glenview 
          Drive and Earl Avenue in a residential area of San Bruno, 
          California.  An explosion ensued, fueled by blowing natural gas. 
          The explosion and fire resulted in the loss of eight lives and 
          the total destruction of 38 homes. Seventy homes sustained 
          damage and eighteen homes adjacent to the destroyed dwellings 
          were left uninhabitable.


          Although the local fire department in San Bruno was aware of the 
          PG&E natural gas distribution system that traversed the city, it 
          was unaware of the much larger transmission pipeline that 
          ruptured in the accident.  The lack of information about 
          components of a pipeline system can put emergency responders at 
          greater risk and reduce the effectiveness of the response.  
          Therefore the National Transportation Safety Board recommended 
          that the Pipeline and Hazardous Materials Safety Administration 
          (PHMSA) issue guidance to pipeline operators regarding sharing 
          system specific information (including pipe diameter, operating 
          pressure, product transported, and potential impact radius) with 
          the emergency response agencies in the communities and 
          jurisdictions where their pipelines are located."


          High Consequence Area (HCA) is a term defined in Code of Federal 
          Regulations (CFR) and means:


           An area that has 46 or more buildings intended for human 








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            occupancy; or an area where the pipeline lies within 100 yards 
            (91 meters) of either a building or a small, well-defined 
            outside area (such as a playground, recreation area, outdoor 
            theater, or other place of public assembly) that is occupied 
            by 20 or more persons on at least 5 days a week for 10 weeks 
            in any 12-month period. (The days and weeks need not be 
            consecutive.) This is a Class 3 Area defined by 49 CFR 192.4 
            (3)

           Any location unit where buildings with four or more stories 
            above ground are prevalent (49 CFR 194.4 (4))


           Any location that has fewer than 46 buildings intended for 
            human occupancy (Class 1 and Class 2 areas defined by 49 CFR 
            192.5) where the potential impact radius is greater than 660 
            feet (200 meters), and the area within a potential impact 
            circle contains 20 or more buildings intended for human 
            occupancy; or


           Any location that has fewer than 46 buildings intended for 
            human occupancy (Class 1 and Class 2 areas defined by 49 CFR 
            192.5) where the potential impact circle contains an 
            identified site. Identified site means each of the following 
            areas:


                 An outside area or open structure that is occupied by 
               twenty (20) or more persons on at least 50 days in any 
               twelve (12)-month period. (The days need not be 
               consecutive.) Examples include but are not limited to, 
               beaches, playgrounds, recreational facilities, camping 
               grounds, outdoor theaters, stadiums, recreational areas 
               near a body of water, or areas outside a rural building 
               such as a religious facility; or

                 A building that is occupied by twenty (20) or more 
               persons on at least five (5) days a week for ten (10) weeks 
               in any twelve (12)-month period. (The days and weeks need 
               not be consecutive.) Examples include, but are not limited 
               to, religious facilities, office buildings, community 
               centers, general stores, 4-H facilities, or roller skating 
               rinks; or









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                 A facility occupied by persons who are confined, are of 
               impaired mobility, or would be difficult to evacuate. 
               Examples include but are not limited to hospitals, prisons, 
               schools, day-care facilities, retirement facilities or 
               assisted-living facilities.


          PG&E has the second highest amount of high pressure transmission 
          pipeline located in HCA compared to other utilities or pipeline 
          companies in the U.S. PG&E has 1,021 miles of pipeline within 
          the urbanized or so-called high consequence areas.  Sempra's 
          Southern California Gas system and San Diego Gas & Electric have 
          1,320 miles of pipeline within high consequence areas.


          Local emergency responders will typically first on scene in the 
          event of a fire. Establishing communication between pipeline 
          owners and operators with those fire departments local to HCA 
          pipelines would provide an opportunity to improve coordination 
          in the event of an event that requires emergency response.  The 
          PUC should also coordinate with the Office of the State Fire 
          Marshal with respect to the development of emergency response 
          standards and emergency response plans.


          State and municipal authorities have safety agreements and/or 
          certifications with the U.S. Department of Transportation for 
          regulating intrastate and interstate pipelines.  Similar issues 
          apply to operators of operators of gas pipelines operated by 
          California oil refiners (oil company pipelines are regulated 
          through the California Department of Conservation, Division of 
          Oil and Gas).  Federal law doesn't specifically name responsible 
          agencies at the state and local level for implementing federal 
          law, it just allows the Department of Transportation to enter 
          into agreements or receive certifications from state and local 
          authorities. 


          The author may wish to consider amendments to:


           1.Clarify that the provisions of this bill to specify the PUC's 
            jurisdiction is limited what is within the scope of the PUC's 
            regulatory authority and delineated in the PUC's certification 








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            to the U.S. Department of Transportation.


          2.Specify that the PUC shall coordinate with the Office of the 
            State Fire Marshal with respect to the development of 
            emergency response standards and emergency response plans.


          3.Require every owner or operator shall offer to meet with the 
            local fire department having fire suppression responsibilities 
            at least once each calendar year to discuss and review 
            contingency plans for pipeline emergencies.


          RELATED BILLS:
           
          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.

          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 705 (Leno) requires natural gas utilities regulated by the 
          Public Utilities Commission to develop service and safety plans. 
           

          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.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          AARP California
          Alameda County Fire Department
          California Fire Chiefs Association (CFCA)
          California Professional Firefighters (CPF)








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          California Public Utilities Commission (CPUC)
          Chino Valley City Fire District
          City of Rancho Cucamonga
          Consumer Federation of California
          Davis Fire Department
          Fairfield Fire Department
          Fremont Fire Department
          Humboldt No.1 Fire Protection District
          League of California Cities
          Livermore-Pleasanton Fire Department
          Pacific Gas and Electric Company (PG&E)
          San Diego Gas & Electric Company (SDG&E) 
          Sempra Energy utilities 
          Southern California Gas Company (SoCalGas) 
          UC Davis Fire Department
          Vacaville Fire Department

           Opposition 
           
          None on file.

           Analysis Prepared by  :    Susan Kateley / U. & C. / (916) 
          319-2083