Amended in Assembly June 18, 2014

Amended in Senate April 21, 2014

Senate Bill No. 1300

Introduced by Senator Hancock

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(Principal coauthor: Assembly Member Skinner)

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February 21, 2014

An act begin delete to amend Section 7870 of, and end delete to add Section 7872 begin delete to, end delete begin insert to end insert the Labor Code, relating to refineries.

LEGISLATIVE COUNSEL’S DIGEST

SB 1300, as amended, Hancock. Refineries: turnarounds.

Existing law, the California Refinery and Chemical Plant Worker Safety Act of 1990, states that its purpose is to prevent or minimize the consequences of catastrophic releases of toxic, flammable, or explosive chemicals. begin delete Existing law end delete begin insert The act end insert provides for the adoption begin insert by the Occupational Safety and Health Standards Board end insert of specified process safety management standards for, among others, refineries that handle acutely hazardous material. begin delete Existing law end delete begin insert The act end insert declares the intent of the Legislature begin delete for, among others, end delete begin insert for the standards board and end insert the Division of Occupational Safety and begin delete Health, end delete begin insert Health end insert to promote worker safety through implementation of training and process safety management, as defined, in refineries and other facilities as deemed appropriate. A violation of the act is a crime.

This bill would require every petroleum refinery employer to, every September 15, submit to the division a full schedule begin insert for the following calendar year end insert of planned turnarounds, meaning a planned, periodic shutdown of a refinery process unit or plant to perform maintenance, overhaul, and repair operations and to inspect, test, and replace process materials and equipment, begin delete for thefl following calendar year, as specified. Upon the request of the division, the end delete begin insert as specified. The end insert bill would also require a petroleum refinery employer begin insert , upon the request of the division, end insert to provide access begin delete on site end delete begin insert onsite end insert and provide the division with specified documentation relating to a planned turnaround within a certain period of time, as provided.

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Existing law requires the division to annually fix and collect reasonable fees for consultation, inspection, adoption of standards, and other duties conducted pursuant to the act, and requires all revenue collected from these fees to be deposited into the Occupational Safety and Health Fund. Existing law requires the fees to be sufficient to support, at a minimum, the annual cost of 15 positions and requires the fees to be adopted by March 15, 2014.

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This bill would instead authorize the Department of Industrial Relations to fix and collect reasonable fees to cover all necessary expenses, including administrative and indirect costs, for consultation, inspection, adoption of standards, participation in interagency efforts to improve safety in refineries and chemical plants, and other duties conducted pursuant to this act. This bill would require the Director of Industrial Relations to adopt reasonable rules and regulations governing the criteria and procedures to fix and collect the fees, including emergency regulations as necessary.

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This bill would require the Director of Industrial Relations to recoup the full costs of extraordinary expenditures from the owner of a refinery by adding the amount expended to the next year’s assessment for that facility as a result of the division’s response to a hazardous material release or similar occurrence at a petroleum refinery.

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This bill would authorize the department to hold in reserve any unexpended funds as a contingency fund for expenditures required by an emergency response to a hazardous material release or other emergency situation an unexpended funds, as provided.

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Because a violation of the bill’s requirements would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 7870 of the Labor Code is amended to
read:

7870.  

(a) Notwithstanding the availability of federal funds to
carry out the purposes of this part, the department may fix and
collect reasonable fees to cover all necessary expenses, including
administrative and indirect costs, for consultation, inspection,
adoption of standards, participation in interagency efforts to
improve safety in refineries and chemical plants, and other duties
conducted pursuant to this part. All revenue collected from these
fees shall be deposited into the Occupational Safety and Health
Fund. The expenditure of these funds shall be subject to
appropriation by the Legislature in the annual Budget Act. The
director shall adopt reasonable rules and regulations governing the
criteria and procedures to fix and collect the fees and to implement
this section, including emergency regulations as necessary. All
regulations previously adopted by the division pursuant to this
section shall remain in effect until repealed or amended by the
director.

(b) The emergency regulations adopted pursuant to this section
shall be adopted by the director in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code. The adoption of these regulations is
an emergency and shall be considered by the Office of
Administrative Law necessary for the immediate preservation of
the public peace, health, safety, and general welfare.

(c) If, as a result of the division’s response to a hazardous
material release or similar occurrence at a petroleum refinery, the
division is required to make extraordinary expenditures, including,
but not limited to, transportation, meals, lodging, overtime, or
other costs, the director shall recoup the full costs of such
expenditures from the owner of the refinery by adding the amount
expended to the next year’s assessment for that facility. The
director shall provide the owner of the refinery with an accounting
of the costs for which reimbursement is being sought.

(d) In the event the funds collected pursuant to this section are
not fully expended by the department in carrying out its duties
pursuant to this part, the balance shall be carried forward and may,
in the department’s discretion, be credited against the subsequent
year’s assessment or held in reserve as a contingency fund for
expenditures required by an emergency response to a hazardous
material release or other emergency situation.

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begin insert SECTION 1. end insert   

Section 7872 is added to the Labor Code, to read:

7872.  

(a)  begin delete For the purposes of end delete begin insert As used in end insert this section,
“turnaround” means a planned, periodic shutdown, total or partial,
of a refinery process unit or plant to perform maintenance,
overhaul, and repair operations and to inspect, test, and replace
process materials and equipment. “Turnaround” does not include
unplanned shutdowns that occur due to emergencies or other
unexpected maintenance matters in a process unit or plant.
“Turnaround” also does not include routine maintenance, where
routine maintenance consists of regular, periodic maintenance on
one or more pieces of equipment at a refinery process unit or plant
that may require shutdown of such equipment.

(b) Every September 15, every petroleum refinery employer
shall submit to the division a full schedule of planned turnarounds
for begin delete the various end delete begin insert all affected end insert units for the following calendar year.

(c) At the request of the division, at least 60 days prior to the
shutdown of a process unit or plant as part of a planned turnaround,
a petroleum refinery employer shall provide access onsite and
allow the division to review and receive copies of, or, at the
division’s discretion, submit in physical format or in electronic
format if available electronically, the following documentation for
the process unit or plant scheduled to be shut down for that
turnaround:

(1)  begin delete Corrosion end delete begin insert All corrosion end insert reports and risk-based inspection
reports generated since the last turnaround.

(2) Process begin delete Hazard Analyses end delete begin insert hazard analyses end insert generated since
the last turnaround.

(3) Boiler permit schedules.

(4) All management of change records related to repairs, design
modifications, and process changes implemented since the last
turnaround or scheduled to be completed in the planned turnaround
referenced in this subdivision and identified in subdivision (b).

(5) Work orders scheduled to be completed in the planned
turnaround referenced in this subdivision and identified in
subdivision (b).

(6)  begin delete Temporary end delete begin insert All temporary end insert repairs begin insert made end insert since the last
turnaround, including, but not limited to, clamps and
encapsulations. begin delete For the purposes of end delete begin insert As used in end insert this section,
“temporary repairs” begin delete shall be defined as end delete begin insert means end insert repairs made to
piping systems in order to restore sufficient integrity to continue
safe operation until permanent repairs can be scheduled.

(d) The division may request additional information as necessary
to perform its responsibilities in this part pursuant to Section 6314.

(e) At the request of the division, at least 30 days begin delete prior to end delete begin insert before end insert
the shutdown of a process unit or plant as part of a planned
turnaround, a petroleum refinery employer shall provide access
onsite and allow the division to review and receive copies of, or,
at the division’s discretion, submit in physical format or in
electronic format if available electronically, notification and
description of any changes to the information or documents
provided pursuant to subdivision (c) and relevant supporting
documents.

(f) By agreement with a petroleum refinery employer, the
division may modify the reporting period as to any individual item
of information.

(g) This section is not intended to limit or increase the division’s
authority in Part 1 (commencing with Section 6300) to prohibit
use of a place of employment, machine, device, apparatus, or
equipment or any part thereof that constitutes an imminent hazard
to employees.

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(h) The division shall develop an electronic information
management system to facilitate monitoring of petroleum refineries
pursuant to this section.

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(i)

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begin insert (h) end insert  The Legislature finds and declares begin insert that end insert the purpose of this
section is to improve the ability of the state to conduct inspections
of petroleum refining operations.

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.