BILL ANALYSIS �
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THIRD READING
Bill No: SB 1371
Author: Leno (D), et al.
Amended: 5/27/14
Vote: 21
SENATE ENERGY, UTIL. & COMMUNIC. COMMITTEE : 8-1, 4/29/14
AYES: Padilla, Block, Cannella, Corbett, DeSaulnier, Hill,
Pavley, Wolk
NOES: Knight
NO VOTE RECORDED: Fuller, De Le�n
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
SUBJECT : Natural gas: leakage abatement
SOURCE : Utility Workers Union of America
DIGEST : This bill requires the Public Utilities Commission
(PUC) to adopt rules and procedures to minimize leaks on the PUC
regulated intrastate gas pipeline facilities for the protection
of public and worker safety and to reduce the state's greenhouse
gas (GHG) emissions.
ANALYSIS : Existing federal law and general order of the PUC
generally requires hazardous leaks in natural gas transmission
and distribution pipelines to be repaired "promptly" and direct
each gas utility to establish grades indicating the definition
of, and repair schedule for, leaks in their pipeline system.
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Existing law:
1. Directs the California Air Resources Board (ARB) to establish
rules and regulations to achieve technologically feasible and
cost-effective GHG emission reductions, as specified.
2. Directs the PUC to regulate intrastate gas pipeline
facilities pursuant to federal law.
3. Requires that the PUC and each gas corporation place safety
of the public and gas corporation employees as the top
priority and take all reasonable and appropriate actions to
carry out this policy priority.
4. Requires each gas corporation to develop, adopt, and
implement a plan for the safe and reliable operation of its
gas pipeline facilities that is consistent with best
practices in the gas industry and that provides for the
following:
A. Preventive and reactive maintenance and repair;
B. Effective patrol and inspection to detect leaks and
effect timely repairs;
C. Timely response to customer and employee reports of
leaks; and
D. Adequately sized, qualified, and properly trained
workforce to carry out the plan.
5. Directs the PUC to determine the reasonableness of
operational costs and design rates for public utilities.
Authorizes the PUC to fix rates, charges, standards, and
practices for service.
This bill:
1. Requires the PUC to adopt rules and procedures governing
natural gas leakage abatement for the PUC regulated
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intrastate transmission and distribution lines to reduce
emissions of natural gas pursuant to the California Global
Warming Solutions Act of 2006.
2. Provides that a proceeding to adopt these rules and
procedures into the utilities' safety plan will be required
to commence by January 15, 2015.
3. States that in developing the rules and procedures the PUC
shall consult with the ARB, the gas corporation's workforce,
and those other state and federal entities that the PUC
determines have regulatory roles of relevance.
4. Provides that the rules and procedures will be required to
achieve specified objectives, which include, among other
things, the following:
A. To provide for the maximum technologically feasible
and cost-effective repair of leaks and leaky components
within a reasonable time frame after discovery.
B. To provide for the ranking of recorded leaks and
leaking components by volume or energy content.
C. To evaluate the natural gas leakage abatement
practices for the PUC regulated gas pipeline facilities
to determine whether existing practices are effective.
D. To establish and require the use of best practices
for leak surveys, patrols, leak survey technology, leak
prevention, and leak reduction. Requires the PUC
consider in the development of best practices the
quality of materials and equipment from various sources,
including foreign and domestic third-party suppliers.
Comments
The author's office, many global warming experts are now
concerned that transition from coal to natural gas will fail as
an energy strategy of methane emissions at all points are not
curtailed. Fixing leaky gas pipelines provides a policy two-fer
by improving safety and reducing GHGs. It also employs
California workers, providing an economic rationale for the
bill.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
One-time costs of approximately $250,000 from the PUC
Reimbursement Account (special) in FY 2015-16 to the PUC for
the required proceeding to develop rules and procedures for
leak minimization.
Ongoing costs of $163,000 from the PUC Reimbursement Account
(special), beginning in FY 2016-17, to the PUC to perform
ongoing evaluation of operations, maintenance, and repair
practices of gas pipeline facilities.
SUPPORT : (Verified 5/27/14)
Utility Workers Union of America (source)
American Lung Association
Asian Pacific Environmental Network
Bay Area Air Quality Management District
BlueGreen Alliance
Breathe California
California Environmental Justice Alliance
California Interfaith Power & Light
California Labor Federation
California State Association of Electrical Workers/California
Coalition of Utility
Employees
California Teamsters Public Affairs Council
Communications Workers of America District 9
Engineers & Scientists of California, IFPTE Local 20
Environmental Defense Fund
Environmental Justice Project, Catholic Charities, Diocese of
Stockton
Global Green USA
Green California
Los Angeles Alliance for a New Economy (LAANE)
Los Angeles County Federation of Labor, AFL-CIO
Natural Resources Defense Council
Physicians for Social Responsibility-LA
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SCOPE Los Angeles (Strategic Concepts in Organizing and Policy
Education)
Sierra Club California
The Utilities Reform Network
Union of Concerned Scientists
United Food & Commercial Workers Western States Council
United Steelworkers, District 12
JG:d 5/27/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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