SACRAMENTO – Assemblyman Jerry Hill, prompted by the Sept. 9 natural gas explosion that killed eight people and leveled 37 homes in San Bruno, today introduced legislation that would strengthen pipeline safety regulations and ensure that ratepayer money is not used by utilities to pay for penalties assessed against them by the California Public Utilities Commission (CPUC).
“This legislation reflects the need to hold utilities more accountable for inspections and repairs to California’s pipeline infrastructure,” said Hill, who will discuss his legislation Tuesday at a 4:30 p.m. news conference at the San Bruno Senior Center (1555 Crystal Springs Road) before hosting the first state Legislative Forum in the city on the disaster.
Hill, who represents San Bruno, said: “We must ensure that disasters like the one in San Bruno never happen again.”
His omnibus legislation, Assembly Bill 56, introduced today on the first day of the legislative session, addresses the following issues with these provisions:
Fines and Penalties: Puts it into law that ratepayer money will not be used by a utility to pay for any penalty or fee assessed by the CPUC.
Annual Performance Measure Report: Requires utilities that own or operate gas facilities to annually prepare performance measure reports to the CPUC regarding any pipeline problems that were identified and any conditions requiring repair.
Public Education Program: Requires that by January 1, 2012 the owner or operator of a gas pipeline facility to develop and implement a continuing public education program about the utilities’ emergency response plans. Requires utilities to share their emergency response plans and any information regarding the pipeline system with state and local emergency responders.
Seismic Safety: Requires the owner or operator of a gas pipeline facility to prioritize pipelines that are next to high seismic areas for increased safety oversight.
Automatic or Remote shutoff valves: Requires the CPUC in consultation with the Independent Review Panel to establish minimum standards to install either automatic and/or remote shutoff valves where technically feasible following a timeline set by the bill.
Modernization Program 2020: Require owners and operators of gas pipeline facilities by January 1, 2020 to establish a program to upgrade their facilities to accommodate state of the art inspections, including corrosion inspection methods.
Rate Making Cases: Requires the CPUC to track proposed repairs used by a gas corporation in a rate making proposal and if the money is diverted to a different project, the utility shall make a public filing justifying the change. Prohibits a gas corporation from seeking a rate increase to cover its uninsured costs from a fire or other catastrophic event that resulted from negligence by the utility.
Hill, who previously authored legislation signed by the governor that will provide property tax relief to victims of the explosion, also introduced a separate bill today that would exempt from state income tax any compensation provided by Pacific Gas & Electric Co.
In the days following the gas explosion, PG&E made payments ranging from $15,000 to $50,000 to displaced residents to cover day-to-day expenses such as temporary housing, food and transportation. Under Hill’s legislation, disaster relief payments will not be assessed as income tax by the state.
