BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1300|
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UNFINISHED BUSINESS
Bill No: SB 1300
Author: Hancock (D), et al.
Amended: 8/29/14
Vote: 21
SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 3-0, 3/26/14
AYES: Hueso, Leno, Padilla
NO VOTE RECORDED: Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : 4-2, 5/23/14
AYES: De Le�n, Hill, Padilla, Steinberg
NOES: Walters, Gaines
NO VOTE RECORDED: Lara
SENATE FLOOR : 24-9, 5/27/14
AYES: Anderson, Beall, Block, Corbett, Correa, De Le�n,
DeSaulnier, Evans, Galgiani, Hancock, Hernandez, Hill, Hueso,
Jackson, Lara, Leno, Lieu, Monning, Padilla, Pavley, Roth,
Steinberg, Torres, Wolk
NOES: Fuller, Gaines, Huff, Knight, Morrell, Nielsen, Vidak,
Walters, Wyland
NO VOTE RECORDED: Berryhill, Calderon, Cannella, Liu, Mitchell,
Wright, Yee
ASSEMBLY FLOOR : Not available
SUBJECT : Refineries: turnarounds
SOURCE : Author
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DIGEST : This bill requires petroleum refineries to annually
report their schedule for "turnarounds" to the Division of
Occupational Safety and Health (Cal/OSHA) on September 15, and
requires them to provide Cal/OSHA with documentation on refinery
safety and infrastructure.
Assembly Amendments require a petroleum refinery employer, at
the request of Cal/OSHA, to provide on-site access and to allow
Cal/OSHA to review notifications and descriptions of all
repairs, design modifications, or process changes described in a
corrosion report, risk-based inspection report, process hazard
analysis, boiler permit schedule, management of change record,
work order, or other specified documents that the petroleum
refinery employer has deferred to a subsequent operational
period or turnaround; add provisions related to trade secrets;
and make technical changes.
ANALYSIS : Existing law establishes Cal/OSHA, within the
Department of Industrial Relations (DIR), to protect workers
from health and safety hazards on the job through research and
standards, enforcement and consultation programs. Among other
things, Cal/OSHA promotes worker safety through implementation
of training and process safety management in refineries and
other facilities, as specified.
Existing law, under the California Refinery and Chemical Plant
Worker Safety Act (Act) of 1990:
1.Declares that the potential consequences of explosions, fires,
and releases of dangerous chemicals may be catastrophic; thus
immediate and comprehensive government action must be taken to
ensure that workers in petroleum refineries, chemical plants,
and other related facilities are thoroughly trained and that
adequate process safety management practices are implemented.
2.Defines "process safety management" as the application of
management programs, as specified, when dealing with the risks
associated with handling or working near hazardous chemicals
and is intended to prevent or minimize the consequences of
catastrophic releases of acutely hazardous, flammable, or
explosive chemicals.
3.Among other things, "Process Safety Management Standards"
requires:
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A. The Occupational Safety and Health Standards Board to
adopt process safety management standards for refineries,
chemical plants, and other manufacturing facilities.
B. An employer to develop and maintain a compilation of
written safety information to enable the employer and
employees operating the machinery to identify and
understand the hazards posed by processes involving acutely
hazardous and flammable material. A copy of this
information is to be accessible to all workers.
C. An employer to perform a hazard analysis for
identifying, evaluation, and controlling hazards involved
in the process.
D. An employer to develop, implement, and update
periodically written operating procedures that provide
clear instructions for safely conducting activities
involved in each process consistent with the process safety
information.
E. Each employee whose primary duties includes the
operating or maintenance of a process to be trained in an
overview of the process with an emphasis on the specific
safety and health hazards, procedures, and safe practices
applicable to the employee's job tasks as well as refresher
and supplemental training documented by the employer's
certification record.
F. An employer to inform contractors performing work on, or
near, a process of the known potential fire, explosion, or
toxic release hazards related to the contractor's work; and
requires that contractors have trained their employees to a
level adequate to safely perform their job.
1.Requires Cal/OSHA to annually fix and collect reasonable fees
for consultation, inspection, adoption of standards, and other
duties conducted pursuant to the Act. The fees shall be
sufficient to cover, at a minimum, the annual cost of 15 staff
positions. All revenue collected is to be deposited into the
Occupational Safety and Health Fund and subject to
appropriation by the Legislature in the annual Budget Act.
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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 refinery employer to submit to Cal/OSHA a full
schedule of planned turnarounds for all affected units every
September 15 for the following calendar year.
4.Requires a petroleum refinery employer, at the request of
Cal/OSHA, to provide on-site access and to allow Cal/OSHA to
review specified documentation relating to a planned
turnaround at least 60 days prior to the shutdown, including:
A. All corrosion reports and risk-based inspection reports
generated since the last turnaround.
B. Process hazard analyses generated since the last
turnaround.
C. Boiler permit schedules.
D. Management of change records related to repairs, design
modifications and process changes.
E. Work orders scheduled to be completed in the planned
turnaround.
F. All temporary repairs made since the last turnaround.
G. Notification and description of all repairs, design
modifications, or process changes described in a corrosion
report, risk-based inspection report, process hazard
analysis, boiler permit schedule, management of change
record, work order, or other specified documents that the
petroleum refinery employer has deferred to a subsequent
operational period or turnaround.
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1.Requires a petroleum refinery employer to submit notification
of any changes to the information or supporting documents
reviewed by Cal/OSHA at least 30 days before a planned
turnaround, at the request of Cal/OSHA.
2.Requires a petroleum refinery employer, at Cal/OSHA's request,
to provide physical copies, or, at Cal/OSHA's discretion,
electronic copies if available, of specified documentation.
3.Authorizes Cal/OSHA, by agreement with a petroleum refinery
employer, to modify the reporting period as to any individual
item of information.
4.Defines "trade secret" to mean a trade secret as defined under
specified existing law and shall include the turnaround
schedules submitted to Cal/OSHA and the scheduling, duration,
layout, configuration and type of work to be performed.
5.Specifies that the wages, hours, benefits, job
classifications, and training standards for employees
performing work for petroleum refinery employers is not a
trade secret.
6.Provides that if a petroleum refinery employer believes that
information submitted to Cal/OSHA may involve the release of a
trade secret, it shall nevertheless provide this information
to Cal/OSHA.
7.Requires Cal/OSHA to not release to the public any information
designated as a trade secret, except as provided.
8.Provides that, upon the receipt of a request for the release
of information to the public that includes information that is
a trade secret, Cal/OSHA shall notify the petroleum refinery
employer in writing.
9.Provides that Cal/OSHA shall release specified information to
the public unless:
A. Within 30 days of receipt of notice of the request the
petroleum refinery employer files an action for a
declaratory judgment that the information is protected as a
trade secret and notifies Cal/OSHA; and
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B. Within 120 days of receipt of notice of the request the
petroleum refinery employer obtains an order prohibiting
disclosure of the information to the public and notifies
Cal/OSHA.
1.States that, except as provided above, any information that
has been designated as a trade secret shall not be released to
the public, except that such information may be disclosed to
other officers or employees of Cal/OSHA, as specified.
2.Provides that if the person requesting the release of
information or the petroleum refinery employer files and
action to order or prohibit the disclosure of trade secret
information, the person instituting the proceeding shall name
the person or the refinery employer as a real party in
interest.
3.Provides that the petroleum refinery employer filing an action
to enjoin the disclosure of public records or related
declaratory relief shall provide notice of the action to the
person requesting the release of the information at the same
time the defendant in the action is served. The person filing
an action to compel release of public records shall provide
notice of the action to the petroleum refinery employer that
submitted the records at the same time the defendant in the
action is served.
4.Provides that the court shall award costs and reasonable
attorney's fees to the party that prevails in litigation. The
public agency shall not bear the court costs for any party
named in litigation.
5.Provides that this bill does not prohibit the exchange of
trade secrets between local, state or federal public agencies
or officials when those trade secrets are relevant to the
exercise of their jurisdiction.
6.Provides that an officer or employee of Cal/OSHA (including a
contractor with Cal/OSHA and an employee of the contractor)
who knowingly and willfully discloses trade secret
information, as specified, is guilty of a misdemeanor.
7.Makes related and conforming changes.
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Comments
According to the author, oil refineries have no obligation under
state law to report their "turnaround" schedule to any part of
state or local government. Nor are they required to disclose
important information, such as repair schedules or corrosion
reports. The author argues that given the importance of
"turnarounds," both to the refinery itself as well as the public
safety risk they pose allowing Cal/OSHA to know this information
may allow it to conduct targeted inspections of refinery
facilities. This bill requires petroleum refineries to annually
report their schedule for "turnarounds" to DIR and requires them
to also submit documentation on refinery safety and
infrastructure.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Assembly Appropriations Committee, DIR
estimates first year costs of approximately $765,000 (special
funds) and second year costs of approximately $705,000 (special
funds) for three positions to evaluate technical information
provided by the refineries and for two counsel positions to
assist with trade secrecy workload.
SUPPORT : (Verified 8/29/14)
Asian Pacific Environmental Network
Board of Supervisors of Contra Costa County
California Environmental Justice Alliance
OPPOSITION : (Verified 8/29/14)
California Newspaper Publishers Association
PQ:e 8/29/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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