Bill Text: CA SB1371 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Natural gas: leakage abatement.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2014-09-21 - Chaptered by Secretary of State. Chapter 525, Statutes of 2014. [SB1371 Detail]

Download: California-2013-SB1371-Introduced.html

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BILL NUMBER: SB 1371	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Leno
   (Principal coauthor: Assembly Member Mullin)
   (Coauthor: Senator Hill)

                        FEBRUARY 21, 2014

   An act to add Article 3 (commencing with Section 975) to Chapter
4.5 of Part 1 of Division 1 of the Public Utilities Code, relating to
natural gas.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1371, as introduced, Leno. Natural gas: leakage abatement.
   The California Constitution establishes the Public Utilities
Commission with regulatory authority over public utilities,
authorizes the commission to establish its own procedures, subject to
statutory limitations or directions and constitutional requirements
of due process, and authorizes the commission to fix rates and
establish rules for all public utilities, subject to control by the
Legislature.
   The Natural Gas Pipeline Safety Act of 2011, within the Public
Utilities Act, designates the 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.
   This bill would require the commission to adopt rules and
procedures governing the operation, maintenance, repair, and
replacement of commission-regulated gas pipeline facilities to
minimize leaks as a hazard to be mitigated pursuant to the Natural
Gas Pipeline Safety Act of 2011 and to eliminate uncontrolled
emissions of natural gas from commission-regulated gas pipeline
facilities to the maximum extent feasible. The bill would require the
commission to commence a proceeding by January 15, 2015, and to
adopt rules and procedures not later than December 31, 2015. The bill
would require that the rules and procedures provide for repair of
leaks in commission-regulated gas pipeline facilities within a
reasonable time after discovery, but require that leaks discovered in
close proximity to residential and commercial buildings be repaired
upon discovery so that the emission of leaking gas that can result in
injury or loss of life will be substantially eliminated. The bill
would additionally require that the rules and procedures establish
best practices for leak surveys, patrols, leak survey technology, and
metrics for evaluating and comparing leaks so that operators, the
commission, and the public have accurate information about the number
and severity of leaks and about the quantity of gas that is emitted
to the atmosphere over time. The bill would require that the
commission consider the costs of compliance with the rules and
procedures and provide for cost recovery in rates charged to their
customers by a gas corporation, consistent with the commission's
existing ratemaking procedures and authority to establish just and
reasonable rates.
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
   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:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The Legislature has established that safety of the natural gas
pipeline infrastructure in California is a priority for the Public
Utilities Commission and gas corporations.
   (b) The incidence of natural gas leaks and their repair is
considered by the industry and regulators to be a significant
indicator of pipeline integrity and safety.
   (c) The Legislature has established a policy goal to significantly
reduce emissions of greenhouse gases in California.
   (d) There is a growing awareness of the potency of methane, the
primary component of natural gas, as a greenhouse gas. The
Intergovernmental Panel on Climate Change estimates that the global
warming potential of methane is 84 times that of carbon dioxide over
a 20-year time horizon.
   (e) Fugitive methane volumes from pipelines in California may
exceed 35 billion cubic feet annually and may exceed 500 billion
cubic feet nationwide.
   (f) Reducing these fugitive emissions by repairing pipeline leaks
promptly and effectively advances both policy goals of natural gas
pipeline safety and integrity and reducing emissions of greenhouse
gases.
   (g) Reducing leaks and promoting pipeline integrity in California
provides significant employment opportunities for California
residents and for domestic fabricators of high quality pipeline
materials.
   (h) Providing just and reasonable rate revenues for gas
corporations to reduce leaks and repair them promptly when
discovered, including employing an adequate workforce, is in the
public interest, and promotes the interests of customers and the
public.
  SEC. 2.  Article 3 (commencing with Section 975) is added to
Chapter 4.5 of Part 1 of Division 1 of the Public Utilities Code, to
read:

      Article 3.  Methane Leakage Abatement


   975.  (a) For purposes of this chapter, "commission-regulated gas
pipeline facility" has the same meaning as defined in Section 950.
   (b) The commission shall adopt rules and procedures governing the
operation, maintenance, repair, and replacement of
commission-regulated gas pipeline facilities to achieve both of the
following:
   (1) Minimize leaks as a hazard to be mitigated pursuant to
paragraph (1) of subdivision (d) of Section 961.
   (2) Eliminate uncontrolled emissions of natural gas from
commission-regulated gas pipeline facilities to the maximum extent
feasible, in order to advance the state's goals in reducing emissions
of greenhouse gases pursuant to the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code).
   (c) Not later than January 15, 2015, the commission shall commence
a proceeding to adopt rules and procedures for intrastate
distribution lines and intrastate transmission lines, as respectively
described in paragraphs (1) and (2) of subdivision (a) of Section
950, to achieve the goals of subdivision (b). The commission shall
adopt rules and procedures not later than December 31, 2015.
   (d) The rules and procedures shall provide for the repair of leaks
in commission-regulated gas pipeline facilities within a reasonable
time after discovery, consistent with eliminating hazards and
reducing emissions to achieve the goals in subdivision (b). Leaks
discovered in close proximity to residential and commercial buildings
shall be repaired upon discovery so that the emission of leaking gas
that can result in injury or loss of life will be substantially
eliminated.
   (e) The rules and procedures shall establish best practices for
leak surveys, patrols, leak survey technology, and metrics for
evaluating and comparing leaks so that operators, the commission, and
the public have accurate information about the number and severity
of leaks and about the quantity of natural gas that is emitted to the
atmosphere over time. Best practices shall include evaluation of the
quality of materials and equipment from various sources, including
foreign and domestic third-party suppliers.
   (f) The rules and procedures, including best practices and repair
standards, shall be incorporated into the safety plans required by
Section 961.
   (g) Consistent with subdivision (e) of Section 961, the commission
shall facilitate robust ongoing participation of the workforce of
gas corporations in all aspects of the proceeding.
   976.  As an element of the proceeding required by Section 975, the
commission shall consider the costs of compliance with the rules and
procedures and shall provide for cost recovery in rates charged to
their customers by a gas corporation, consistent with the commission'
s existing ratemaking procedures and authority to establish just and
reasonable rates. Cost considerations shall include all of the
following:
   (a) Providing an adequate workforce to achieve the objectives of
reducing hazards and emissions from leaks, including prompt leak
repair and elimination.
   (b) Directing the revenues from any allowance for lost or
unaccounted for natural gas to leak repair and elimination.
   (c) Providing guidance for treatment of expenditures as being
either an item of expense or a capital investment.
  SEC. 3.  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.