BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 216
Author: Yee (D), et al.
Amended: 8/26/11
Vote: 21
SENATE ENERGY, UTILITIES & COMM COMMITTEE : 11-0, 04/05/11
AYES: Padilla, Fuller, Berryhill, Corbett, De Le�n,
DeSaulnier, Pavley, Rubio, Simitian, Strickland, Wright
SENATE APPROPRIATIONS COMMITTEE : 8-0, 05/26/11
AYES: Kehoe, Walters, Alquist, Lieu, Pavley, Price,
Runner, Steinberg
NO VOTE RECORDED: Emmerson
SENATE FLOOR : 39-0, 06/02/11
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Cannella, Corbett, Correa, De Le�n, DeSaulnier, Dutton,
Emmerson, Evans, Fuller, Gaines, Hancock, Harman,
Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Simitian, Steinberg, Strickland, Vargas, Walters, Wolk,
Wright, Wyland, Yee
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR : 78-0, 08/30/11 - See last page for vote
SUBJECT : Public utilities: intrastate natural gas
pipeline safety
SOURCE : Author
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DIGEST : This bill authorizes the California Public
Utilities Commission (PUC) to require automatic shut off or
remote controlled valves on certain natural gas facilities,
and unless prohibited by federal law, to require automatic
shut off or remote controlled valves on intrastate natural
gas transmission lines located in "high consequence areas"
or that traverse an active seismic earthquake fault line.
Assembly Amendments remove the provision that designates
the Public Utilities Commission as the state authority
responsible for regulating and enforcing intrastate gas
pipeline transportation and pipeline facilities pursuant to
federal law, including the development, submission, and
administration of a state pipeline safety program
certification for natural gas pipelines.
ANALYSIS : Federal law and general orders of the PUC
require the commission to regulate gas transmission,
distribution and gathering pipeline facilities which
include investor-owned utilities, master-metered mobile
home parks, storage facilities, and propane operators.
Federal Law and general orders of the PUC set forth
requirements for the design, construction, testing,
maintenance and operation of utility gas gathering,
transmission and distribution piping systems.
Federal Law and general orders of the PUC require that each
transmission line have sectionalized block valves placed at
specified intervals and in specified locations ranging from
every 2 miles to every 10 miles and classifies pipelines
based on the types of facilities that are within 220 yards
of its location as follows:
Class 1: an offshore area or location that has 10 or fewer
buildings intended for human occupancy.
Class 2: any location that has more than 10 but fewer than
46 buildings intended for human occupancy.
Class 3: any location that has 46 or more buildings
intended for human occupancy; or an area where
the pipeline lies within 100 yards of either a
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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.
Class 4: any location where buildings with four or more
stories above ground.
Federal law defines a High Consequence Area as an area
including all class 3 and class 4 locations and some class
1 and class 2 locations with unique circumstances related
to surrounding populated facilities.
This bill:
1.Requires the PUC to evaluate current practices and to
determine whether compatible transmission safety
standards should be adopted for the enhancement of public
safety with respect to the proximity of pipelines
carrying liquid materials to commission-regulated gas
pipeline facilities, as defined, that are intrastate
transmission lines.
2.Defines a commission-regulated gas pipeline facility to
include transmission, distribution and gathering pipeline
facilities which include investor-owned utilities,
master-metered mobile home parks, storage facilities, and
propane operators.
3.Requires each owner or operator of a commission-regulated
gas pipeline facility that is an intrastate transmission
line to provide the commission with a valve location
plan, along with any recommendations for valve locations.
The commission may make modifications to the valve
location plan or provide for variations from any location
requirements adopted by the commission pursuant to this
section that it deems necessary or appropriate and
consistent with protection of the public.
4.Requires the PUC to require operators of natural gas
transmission pipelines to install automatic or
remote-controlled shut off valves on natural gas
pipelines in areas of high population density or which
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cross active seismic faults. Pipeline operators are
authorized under the bill to recover the costs of these
upgrades from natural gas ratepayers.
5.Requires the commission to additionally establish action
timelines, adopt standards for how to prioritize
installation of automatic shut-off or remote controlled
sectionalized bock vales, ensure that remote and
automatic shut-off valves are installed as quickly as is
reasonably possible, and establish ongoing procedures for
monitoring progress in achieving the requirements of the
bill.
6.Designates the PUC as the state authority for the
"811/Call Before You Dig" program established by the
Secretary of the Department of Transportation.
Background
Gas Transmission Pipeline Flow . The explosion created a
76-foot-long crater and the released natural gas ignited.
A 28-foot segment of the pipeline (Line 132) was shattered
out of the ground and blasted about 100 feet away. Over an
hour passed before the valves were shut and the flow of gas
stopped. The explosion occurred at 6:11 p.m.; the upstream
valve was closed at 7:30 p.m.; and the downstream valve was
closed at 7:45 p.m. At about 7:42 p.m. flames at the
rupture location had diminished to the point that the
firefighters were able to get closer to the ruptured
pipeline. Once the ruptured section was isolated and the
gas flow was stopped, the resulting fire from the ruptured
line self-extinguished. Later that evening, PG&E isolated
the natural gas distribution system serving residences in
the area, and within a minute of stopping the gas flow at
about 11:30 p.m., fires from escaping natural gas at
damaged houses went out.
The flows to Line 132 were controlled by manual valves
which are hand-operated by wheel and gear assembly or by a
wrench with an indicator to show whether it is open or
closed. Many have questioned whether other technologies
such as automatic or remotely-controlled valves should be
in greater use so that gas flows can be interrupted more
quickly. After the San Bruno explosion, PG&E was able to
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detect pressure changes in Line 132 from its control center
but could not stop the flow of gas from the center due to a
lack of remotely-controlled valves which necessitated the
dispatch of a crew to manually stop the gas flow. That
crew was delayed due to traffic. However the greatest
factor in the delay to shut down the pipes was that the
utility did not know the cause of the explosion. PG&E
control room operators saw drops in gas pressure on the
transmission pipeline system and were also aware that there
had been an explosion in San Bruno but were unable to
connect the two occurrences for some time. Reports to the
control room included speculation of an airplane crash or
gas station explosion.
For more information on the San Bruno tragedy, see the
Senate Energy, Utilities and Communications Committee
analysis.
Related Federal Legislation
There are three measures pending in Congress which also
call for the installation of automatic or remote valves on
gas transmission pipelines.
Related State Legislation
AB 56 (Hill), 2010-11 Session, implements a number of
public safety measures with regard to natural gas pipeline
facilities, including requiring the owner or operator of a
gas pipeline to develop a public safety program and a
facilities modernization program, and requiring the PUC to
track proposed repairs to gas facilities to determine if
the repairs were made.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13
2013-14 Fund
Development of standards $240 Special*
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Increased natural gas costs Likely in
the low millions over
Various
to state agencies the
next several years
* Public Utilities Commission Utilities Reimbursement
Account
SUPPORT : (Verified 8/30/11)
American Red Cross, California Chapters
Board of Supervisors, San Mateo County
California Emergency Nurses Association
California Professional Firefighters
California State Firefighters Association
Consumer Attorneys of California
San Diego Gas & Electric Company (if amended)
San Francisco Firefighters
San Mateo County Board of Supervisors
San Mateo County Community College District
San Mateo County Firefighters, IAFF Local 2400
Sempra Energy utilities
Southern California Gas Company
ARGUMENTS IN SUPPORT : According to the author's office,
this bill has two primary goals, to establish standards to
separate gas transmission pipelines from water mains and to
require the installation of automatic or
remotely-controlled valves on all pipelines that cross an
active seismic earthquake fault or are located within a
High Consequence Area.
ASSEMBLY FLOOR : 78-0, 08/30/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill,
Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara,
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Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller,
Mitchell, Monning, Morrell, Nestande, Nielsen, Norby,
Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Gorell, Halderman
RM:rm:nl 8/30/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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