BILL ANALYSIS �
SB 44
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Date of Hearing: August 17, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 44 (Corbett) - As Amended: July 5, 2011
Policy Committee:
UtilitiesVote:15-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill requires the Public Utilities Commission (PUC) to
establish emergency response standards for use by operators of
interstate transmission and distribution gas pipelines.
Specifically, this bill:
1)Requires the PUC, by July 1, 2012, to open a proceeding or
expand an existing proceeding to establish, in consultation
with specified entities responsible for emergency response,
standards to ensure adequate emergency response by pipeline
operators.
2)Requires that the standards require pipeline operators to
implement emergency response plans consistent with federal
regulations and to also include specified elements, including
establishing and maintaining liaison with appropriate fire,
police, and other public officials.
3)Requires the PUC to report to the Legislature by January 1,
2013 on the status of establishing the above standards.
FISCAL EFFECT
The PUC has already opened a proceeding to address oversight and
regulation of natural gas pipelines. To expanding this
proceeding to include the development of emergency response
standards, including consultation with emergency responders, the
PUC will incur one-time special fund costs of around $240,000
for the equivalent of two positions. �Public Utilities
Reimbursement Account]
SB 44
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COMMENTS
1)Purpose . On September 9, 2010, a natural gas transmission
pipeline owned by PG&E exploded in San Bruno. The explosion
killed eight people, injured numerous others, and destroyed 38
homes. Although the local fire department 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. According to the author, SB 44
requires natural gas pipeline operators to improve
communication and coordination with first responders by
requiring the PUC, in consultation with the California
Emergency Management Agency, the State Fire Marshal, and the
California Fire Chiefs Association, to adopt emergency
response standards.
2)Related Legislation . The following bills are also on today's
committee agenda:
a) SB 216 (Yee) requires the PUC to require the
installation of automatic shut-off valves or remote
controlled valves on interstate natural gas transmission
lines located in certain high-risk locations.
b) SB 705 (Leno) requires natural gas utilities regulated
by the PUC to develop service and safety plans.
c) SB 879 (Padilla) requires the PUC to require more
transparency in how natural gas utilities account for
ratepayer funds designated for pipeline maintenance and
repair.
In addition, AB 56 (Hill), pending in Senate Appropriations,
contains almost identical provisions as SB 216, and in
addition requires gas utilities to pressure test interstate
transmission lines and to report biannually to the PUC on
pipeline safety-related projects.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081