California Assembly Bill AB2748 Amended / Bill

 BILL NUMBER: AB 2748AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 18, 2016 AMENDED IN ASSEMBLY MARCH 18, 2016 INTRODUCED BY Assembly Member Gatto FEBRUARY 19, 2016 An act to add  Section   Sections 1544 and  3484.5 to the Civil Code,  and to amend Section 340.8 of, and to add Section 1021.3 to, the Code of Civil Procedure,  relating to  natural gas.   environmental disaster.  LEGISLATIVE COUNSEL'S DIGEST AB 2748, as amended, Gatto. Aliso Canyon Gas Storage Facility: leak: claims for damage to property.  Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations. The Public Utilities Act prohibits any gas corporation from beginning the construction of, among other things, a line, plant, or system, or of any extension thereof, without having first obtained from the commission a certificate that the present or future public convenience and necessity require or will require that construction. Pursuant to existing law, the commission issued a certificate of public convenience and necessity to Southern California Gas Company for the Aliso Canyon Gas Storage Facility.   Existing law establishes the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation and authorizes the State Oil and Gas Supervisor, with the approval of the Director of Conservation, to adopt rules and regulations that may be necessary to carry out the purposes for which the division was established. Pursuant to its existing authority, the supervisor has adopted onshore well regulations that are applicable, in part, to gas storage facilities.   Existing law provides that an obligation is extinguished by a release given to the debtor by the creditor, upon a new consideration, or in writing, with or without new consideration. A general release does not extend to claims the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.   This bill would prohibit a payment or reimbursement, made in connection with an environmental disaster by the responsible polluter or any agent or entity related to the responsible polluter to any recipient, from being conditioned upon the release by the recipient of any claim unrelated to the environmental disaster or all future claims, or both.  Existing law defines a nuisance as anything injurious to health, indecent or offensive to the senses, or an obstruction to the free use of property, as specified. Existing law defines a public nuisance as a nuisance that affects at the same time an entire community or neighborhood or any considerable number of persons, although the extent of the annoyance or damage inflicted upon individuals may be unequal, and makes every public nuisance a private nuisance as to those affected by it. Existing law provides that the abatement of a nuisance does not prejudice the right of any person to recover damages for its past existence. This bill would create a right of action against Southern California Gas Company for any person owning real property in the Porter Ranch area, as defined, on October 23, 2015, who suffers a diminution in value of that real property resulting from the leakage of natural gas from the Aliso Canyon Gas Storage Facility during 2015 and 2016.  The right of action would accrue when the claimant first offers the property for sale or seeks refinancing of the property. The bill would specify a mechanism for measuring the diminution in value. This bill would make legislative findings and declarations as to the necessity of a special statute for the Aliso Canyon Gas Storage Facility leak.  Existing law establishes statutes of limitations for civil actions for injury or illness or wrongful death based upon exposure to a hazardous material or toxic substance other than asbestos, as specified. For injury or illness, the statute of limitations is 2 years from the date of injury, or 2 years after the plaintiff becomes aware of, or reasonably should have become aware of, an injury, the physical cause of the injury, and sufficient facts to put a reasonable person on inquiry notice that the injury was caused or contributed to by the wrongful act of another, whichever occurs later. For wrongful death, the statute of limitations is no later than either 2 years from the date of the death of the plaintiff's decedent, or 2 years from the first date on which the plaintiff is aware of, or reasonably should have become aware of, the physical cause of the death and sufficient facts to put a reasonable person on inquiry notice that the death was caused or contributed to by the wrongful act of another, whichever occurs later.   This bill would change all those dates from 2 to 3 years.   Under existing law, except as attorney's fees are specifically provided for by statute, the measure and mode of compensation of attorneys is left to the agreement of the parties.   This bill would authorize the court, in any action for private nuisance against an environmental polluter defendant arising out of an environmental disaster for which the defendant has been adjudged civilly liable, upon motion, to award reasonable attorneys' fees to a prevailing plaintiff against the defendant.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 1544 is added to the   Civil Code   , to read:   1544. A payment or reimbursement made in connection with an environmental disaster by the responsible polluter or any agent or entity related to the responsible polluter to any recipient shall not be conditioned upon the release by the recipient of any claim unrelated to the environmental disaster or all future claims, or both.   SECTION 1.   SEC. 2.  Section 3484.5 is added to the Civil Code, to read: 3484.5. (a) As used in this section, "Porter Ranch area" has the same meaning as defined in the document titled "SS-25 Incident Aliso Canyon Gas Leak Odorous Emissions Mitigation Plan and Temporary Relocation Plan," dated December 15, 2015, included as Exhibit A in the stipulation and order, filed December 24, 2015, with the superior court of the County of Los Angeles in the People of the State of California v. Southern California Gas Company, Case No. BC602973, and including, but not limited to, the map titled "SoCalGas Complaints and SCAQMD Air Sampling Locations" located in  attachment   Attachment  B of the plan document. (b) Any person owning real property in the Porter Ranch area on October 23, 2015, who suffers a diminution in value of that real property resulting from the leakage of natural gas from the Aliso Canyon Gas Storage Facility during 2015 and 2016 shall have a right of action against Southern California Gas Company for that diminution in value.  The cause of action shall accrue when the owner first offers the property for sale or seeks refinancing of the property.  The diminution in value shall be calculated by determining the value of the real property on October 22, 2015, identifying similarly priced real property in neighboring communities on that date, then comparing the value of the owner's real property  at the time the action accrues   on June 1, 2016,  to the value of the properties in the neighboring communities that had been similarly  priced.   priced, regardless of whether the owner has sold or refinanced the real property.  The diminution in value shall be the value of the property in the Porter Ranch area on  the date the action accrues   June 1, 2016,  subtracted from an average value on  the date the action accrues   June 1, 2016,  of properties in neighboring communities that were priced similarly to the Porter Ranch area property as of October 22, 2015. (c) This section shall apply only to actions filed on and after January 1, 2017.  SEC. 3.   Section 340.8 of the   Code of Civil Procedure   is amended to read:  340.8. (a) In any civil action for injury or illness based upon exposure to a hazardous material or toxic substance, the time for commencement of the action shall be no later than either  two   three  years from the date of injury, or  two   three  years after the plaintiff becomes aware of, or reasonably should have become aware of, (1) an injury, (2) the physical cause of the injury, and (3) sufficient facts to put a reasonable person on inquiry notice that the injury was caused or contributed to by the wrongful act of another, whichever occurs later. (b) In an action for the wrongful death of any plaintiff's decedent, based upon exposure to a hazardous material or toxic substance, the time for commencement of an action shall be no later than either (1)  two   three  years from the date of the death of the plaintiff's decedent, or (2)  two   three  years from the first date on which the plaintiff is aware of, or reasonably should have become aware of, the physical cause of the death and sufficient facts to put a reasonable person on inquiry notice that the death was caused or contributed to by the wrongful act of another, whichever occurs later. (c) For purposes of this section: (1) A "civil action for injury or illness based upon exposure to a hazardous material or toxic substance" does not include an action subject to Section 340.2 or 340.5. (2) Media reports regarding the hazardous material or toxic substance contamination do not, in and of themselves, constitute sufficient facts to put a reasonable person on inquiry notice that the injury or death was caused or contributed to by the wrongful act of another. (d) Nothing in this section shall be construed to limit, abrogate, or change the law in effect on  the effective date of this section   January 1, 2004,  with respect to actions not based upon exposure to a hazardous material or toxic substance.  SEC. 4.   Section 1021.3 is added to the   Code of Civil Procedure   , to read:   1021.3. In any action for private nuisance against an environmental polluter defendant arising out of an environmental disaster for which the defendant has been adjudged civilly liable, the court, upon motion, may award reasonable attorneys' fees to a prevailing plaintiff against the defendant.   SEC. 2.   SEC. 5.  The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution in order to achieve just results while reducing court congestion as a result of the unique circumstances involving a major leak of natural gas from the Aliso Canyon Gas Storage Facility during 2015 and 2016.