BILL ANALYSIS �
SB 1300
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Date of Hearing: July 2, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1300 (Hancock) - As Amended: June 18, 2014
Policy Committee: Labor Vote:5-1
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill requires every petroleum refinery employer to submit a
full schedule of planned turnarounds for all affected units to
the Division of Occupational Safety and Health (DOSH) every
September 15 for the following calendar year. Specifically,
this bill:
1)Defines "turnaround" as 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.
2)Excludes from the definition of "turnaround" unplanned
shutdowns that occur due to emergencies or other unexpected
maintenance matters in a process unit or plant, or routine
maintenance, as specified.
3)Requires a petroleum refinery employer, at the request of
DOSH, to provide on-site access and specified documentation
relating to a planned turnaround at least 60 days prior to the
shutdown, as specified.
4)Requires a petroleum refinery employer to submit notification
of any changes and supporting documents at least 30 days
before a planned turnaround, at the request of DOSH.
5)Authorizes DOSH, by agreement with a petroleum refinery
employer, to modify the reporting period as to any individual
item of information.
FISCAL EFFECT
SB 1300
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1)The Department of Industrial Relations (DIR) estimates annual
costs of roughly $250,000 (special funds) to fund three
positions to evaluate the technical information provided by
refineries.
SB 71 (Budget and Fiscal Review), enacted as part of the
2013-14 Budget Act, required DOSH to use its statutory
authority to approve a fee by March 31, 2014, to support an
increase in funding and at least 15 new positions for Process
Safety Management (PSM), which inspects oil refineries and
chemical plants.
According to DIR, an additional three positions would be
needed to support the activities required by this bill. DIR
indicates the positions would be supported with PSM fees.
COMMENTS
1)Purpose . According to the author, oil refineries have no
obligation under state law to report their turnaround
schedule, repair schedules or corrosion reports to state or
local government. The author cites the 2012 explosion at
Chevron's Richmond Oil Refinery as an incident that might have
been prevented had DOSH obtained this information.
2)Background . The California Energy Commission Reports there are
a total of 20 refineries in the state located in the San
Francisco Bay area, the Central Coast, the Los Angeles area
and the Central Valley.
The American Petroleum Institute (API) indicates that refinery
turnarounds are planned shutdowns of the refinery process, and
can be total or partial in nature. During the shutdown period,
refinery staff performs maintenance, overhaul and repair
operations and inspect, test and replace process materials and
equipment. API indicates that turnarounds are generally
scheduled at least one year in advance and allow for necessary
maintenance and upkeep of operating units to ensure safe and
efficient operations. Depending on factors such as the amount
of required maintenance, the length of a turnaround can vary
from one week to over a month. API also notes refinery
incidents are more likely to occur during turnarounds.
3)Recent budget action . The 2014-15 Budget Act included
SB 1300
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provisional language as part of the Occupational Safety and
Health Fund requiring DIR to report to DOF and the Legislature
by February 1, 2015, on the status of the Process Safety
Management and Risk Management Program regulatory changes and
efforts DIR is making to implement recommendations of the
Governor's Interagency Working Group on Refinery Safety.
Additionally, the provisional language requires DIR to report
annual workload and staffing need relative to regulatory
oversight for both refinery facilities and nonrefinery
facilities, as specified, and the number of staffing vacancies
within the Process Safety Management Unit, as well as the
number of inspections performed, to date, during the current
fiscal year, by both type of facility and type of inspection.
4)Prior related legislation . This bill is similar to SB 438
(Hancock) of 2013, held on Suspense in this committee.
Analysis Prepared by : Misty Feusahrens / APPR. / (916)
319-2081