BILL NUMBER: SB 1389INTRODUCED BILL TEXT INTRODUCED BY Senator Hill FEBRUARY 21, 2014 An act to add Section 958.2 to the Public Utilities Code, relating to gas pipelines. LEGISLATIVE COUNSEL'S DIGEST SB 1389, as introduced, Hill. Natural Gas Pipeline Safety Act of 2011. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations, as defined. 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. The Natural Gas Pipeline Safety Act of 2011 requires each gas corporation to prepare and submit to the commission a proposed comprehensive pressure testing implementation plan for all intrastate transmission lines to either pressure test those lines or to replace all segments of intrastate transmission lines that were not pressure tested or that lack sufficient details related to performance of pressure testing. The comprehensive pressure testing implementation plan is required to include a timeline for completion that is as soon as practicable, and includes interim safety enhancement measures, including increased patrols and leak surveys, pressure reductions, prioritization of pressure testing for critical pipelines that must run at or near maximum allowable operating pressure values that result in hoop stress levels at or above 30% of specified minimum yield stress, and any other measure that the commission determines will enhance public safety during the implementation period. Use of engineering-based assumptions are authorized to determine maximum allowable operating pressure in the absence of complete records, but only as an interim measure until all the lines have been tested or replaced, in order to allow the gas system to continue to operate. This bill would require the commission to adopt rules for gas corporations to follow when determining the maximum allowable operating pressure for an intrastate transmission line installed prior to July 1, 1970, and would require that the rules adopted be compatible with the requirements of specified regulations concerning maximum allowable operating pressure adopted by the federal Pipeline and Hazardous Materials Safety Administration. 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 Public Utilities 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. Section 958.2 is added to the Public Utilities Code, to read: 958.2. The commission shall adopt rules for gas corporations to follow when determining the maximum allowable operating pressure for an intrastate transmission line installed prior to July 1, 1970. The rules adopted by the commission shall be compatible with the requirements of Section 192.619(a) and Section 192.620 of Subpart L of Part 192 of Title 49 of the Code of Federal Regulations, or any successor regulations adopted by the federal Pipeline and Hazardous Materials Safety Administration. SEC. 2. 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.