BILL ANALYSIS �
SB 216
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Date of Hearing: August 17, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 216 (Yee) - 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
require the installation of valves on interstate natural gas
transmission lines in specified areas. Specifically, this bill:
1)Requires the PUC-unless it determines that it is prohibited by
federal law from doing so-to require the installation of
automatic shut-off valves or remote controlled valves on
interstate natural gas transmission lines located in "high
consequence areas," as defined by federal regulations, or
traversing active earthquake faults, if the commission
determines the installation is necessary to protect the
public.
2)Requires each owner of a "commission-regulated gas pipeline
facility," as defined, to provide the PUC with a valve
location plan, with recommendations for valve locations, which
the commission may modify.
3)Requires the PUC to adopt standards for prioritizing valve
installation per (1), establish timelines for installation,
and monitor the progress of installation.
4)Requires the PUC to authorize recovery in utilities rates for
the reasonable costs of complying with the above.
5)Requires the PUC, in consultation with specified federal
entities, to adopt and enforce safety standards for
commission-regulated pipelines as the commission determines
are necessary to implement all of the above.
SB 216
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FISCAL EFFECT
Annual special fund costs to the PUC of about $240,000 for two
positions to support the commission's work in reviewing valve
location plans, adopting standards for prioritizing installation
and establishing installation timelines, and monitoring utility
implementation.
COMMENTS
1)Purpose . According to the author, following the September 9,
2010 gas explosion in the City of San Bruno, California, the
National Transportation Safety Board (NTSB) highlighted the
need for legislation to require gas utility companies to
install automatic and remotely-controlled shutoff valves
throughout California's pipelines. According to
investigators, it took PG&E about 90 minutes to access and
manually close the mainline valves near the ruptured segments
and about four additional hours to stop the gas flow to
residences at damaged houses in San Bruno. At a public
hearing regarding the San Bruno gas explosion, PG&E testified
that with automatic or remote-controlled shutoff valves, it
would have taken about 10 to 15 minutes to analyze the
situation and then turn off gas supply in the pipelines
fairly.
2)Related Legislation . The following bills are also on today's
committee agenda:
a) SB 44 (Corbett) requires the PUC to set emergency
response standards for 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.
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
SB 216
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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