California Senate Bill SB888 Amended / Bill

 BILL NUMBER: SB 888AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 29, 2016 AMENDED IN SENATE MAY 31, 2016 AMENDED IN SENATE MAY 11, 2016 AMENDED IN SENATE APRIL 25, 2016 INTRODUCED BY Senator Allen (Coauthors: Senators De Len and Pavley) (Coauthor: Assembly Member Wilk) JANUARY 20, 2016 An act to add Section 8585.01 to the Government Code, and to add Section 972 to the Public Utilities Code, relating to gas corporations. LEGISLATIVE COUNSEL'S DIGEST SB 888, as amended, Allen. Gas corporations: emergency  management.   management: leak mitigation.  (1) Existing law creates, within the office of the Governor, the Office of Emergency  Services   Services,  which, under the Director of Emergency Services, coordinates disaster response, emergency planning, emergency preparedness, disaster recovery, disaster mitigation, and homeland security activities. This bill would establish the Office of Emergency Services as the lead agency for emergency response to a  large   large,  ongoing leak or release of natural gas and associated gases from a natural gas storage facility that poses a significant present or potential hazard to the public health and safety, property, or  to  the environment. The bill would require the Office of Emergency Services to coordinate among other state and local agencies the emergency response, public health and environmental assessment, monitoring, and long-term management and control of the leak. (2)  Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations, as defined. The Public Utilities Act requires the commission to investigate the cause of all accidents occurring upon the property of any public utility, or directly or indirectly arising from or connected with its maintenance or operation, resulting in loss of life or injury to person or property and requiring, in the judgment of the commission, investigation by it, and authorizes the commission to make any order or recommendation with respect to the investigation that it determines to be just and reasonable. The act   The Public Utilities Act  provides that any public utility that violates any provision of the California Constitution or the act, or that fails or neglects to comply with any order, decision, decree, rule, direction, demand, or requirement of the  commission,   Public Utilities Commission  where a penalty has not otherwise been provided, is subject to a penalty of not less than $500 and not more than $50,000 for each offense. Existing law requires that any fine or penalty imposed by the commission and collected from a public utility be paid to the State Treasury to the credit of the General Fund.  The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. Existing law requires the California Environmental Protection Agency to identify disadvantaged communities.  This bill would require the commission to deposit moneys from penalties assessed against a gas corporation in regards to a gas storage facility leak into the Gas Storage Facility Leak Mitigation Account, which the bill would establish in the State Treasury. The bill would  provide   require  that moneys in this account  shall  be expended, upon appropriation by the Legislature, solely for direct emissions reductions in furtherance of  the achievement of   achieving  the greenhouse gas emissions  limit, as specified.   limit. The bill would require these moneys to be expended in a manner that achieves a reduction in greenhouse gases that equals the amount of those gases emitted by the leak, and in accordance with provisions requiring specified allocations to disadvantaged commu   nities.  The bill would require the  State Air Resources Board   state board  to determine the amount of  greenhouse  gases emitted by a leak for these purposes.  The bill would require that moneys in the fund resulting from penalties assessed for the Aliso Canyon gas leak be expended, consistent with the state board's Aliso Canyon Climate Impacts Mitigation Program, for specified purposes.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 8585.01 is added to the Government Code, to read: 8585.01. The Office of Emergency Services shall be the lead agency for emergency response to a  large   large,  ongoing leak or release of natural gas and associated gases from a natural gas storage facility that poses a significant present or potential hazard to the public health and safety, property, or  to  the environment. The Office of Emergency Services shall coordinate among other state and local agencies the emergency response, public health and environmental assessment, monitoring, and long-term management and control of the leak. SEC. 2. Section 972 is added to the Public Utilities Code, to read: 972. (a) The commission shall deposit any penalties assessed against a gas corporation pursuant to this part in regards to a gas storage facility leak into the Gas Storage Facility Leak Mitigation Account, which is hereby established in the State Treasury. (b) Moneys in the account shall be expended, upon appropriation by the Legislature, subject to  both   all  of the following conditions: (1) Moneys shall be expended solely for direct emissions reductions in furtherance of the achievement of the greenhouse gas emissions limit established pursuant to  Part 3 (commencing with Section 38550) of Division 25.5   Section 38550 of  the Health and Safety Code. Moneys shall not be used for the purchase of allowances or offsets otherwise authorized pursuant to  Division 25.5 (commencing with Section 38500) of the Health and Safety Code.   the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).  (2) Moneys  from penalties assessed for a gas storage facility leak  shall be expended in a manner that, at a minimum, achieves a reduction in greenhouse gases that equals the amount of those gases emitted by that leak, as determined by the State Air Resources Board.  (3) Moneys shall be expended consistent with Section 39713 of the Health and Safety Code.   (4) (A) Consistent with the State Air Resources Board's Aliso Canyon Climate Impacts Mitigation Program, moneys in the fund resulting from penalties assessed for the Aliso Canyon gas leak shall be expended to do any the following:   (i) Generate significant and quantifiable reductions in methane emissions within the agriculture and waste sectors.   (ii) Promote a more sustainable energy infrastructure by promoting energy efficiency and decreasing reliance on fossil fuels.   (iii) Address emissions from methane hot spots not presently targeted under federal, state, or local laws.   (iv) Yield cobenefits in communities directly affected by the leak and in disadvantaged communities.   (B) Projects in nearby communities harmed by the leak and other communities directly affected by methane emissions, disadvantaged communities, and communities within the Aliso Canyon service area shall be prioritized when moneys are expended pursuant to subparagraph (A).