Western Regional Pipeline Operators Conference San Diego March 8, 2016 Bob Gorham Program Manager Pipeline Safety Division CAL FIRE Office of the

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1 Western Regional Pipeline Operators Conference San Diego March 8, 2016 Bob Gorham Program Manager Pipeline Safety Division CAL FIRE Office of the State Fire Marshal

2 CALIFORNIA REGULATORY UPDATE California Senate Bill 295 (Annual Inspections) (Signed into law October 8, 2015) California Assembly Bill 864 (Leak Detection) (Signed into law October 8, 2015) California Senate Bill 661 (Dig Safe Act of 2016) ( Formally SB 119 vetoed in 2015)

3 SB 295 Annual Inspections - Senator Jackson History & Purpose: According to the author, on May 19, 2015 tragedy struck again when an onshore pipeline carrying crude oil ruptured and spilled over 100,000 gallons of oil, over 20,000 gallons of which ended up in the ocean off the Santa Barbara coastline. To date this spill has caused significant negative impacts to the ocean, local beaches, wildlife, and the local economy. The pipeline that ruptured, line 901, was being inspected every other year. If line 901 had been inspected annually the corrosion would likely have been detected before it ruptured and this disaster would have been avoided. The early version of the bill required more frequent testing hydrotests every one or two years. This was removed and replaced with the SFM performing annual inspections of every pipeline and operator.

4 CHAPTER 5.5. The Elder California Pipeline Safety Act Of 1981 Section a) Commencing January 1, 2017, the State Fire Marshal, or an officer or employee authorized by the State Fire Marshal, shall annually inspect all intrastate pipelines and operators of intrastate pipelines under the jurisdiction of the State Fire Marshal to ensure compliance with applicable laws and regulations. By January 1, 2017, the State Fire Marshal shall adopt regulations implementing this subdivision. b) For portions of interstate pipelines that are not under the jurisdiction of the State Fire Marshal pursuant to Section , the State Fire Marshal shall not become an inspection agent for those pipelines unless all regulatory and enforcement authority over those pipelines is transferred to the State Fire Marshal from the federal Pipeline and Hazardous Materials Safety Administration. c) The State Fire Marshal shall revise the fee assessed pursuant to Section to a level sufficient to cover the costs associated with the implementation of this section.

5 AB 864 Assembly member Williams History & Purpose: On May 19, 2015 a pipeline owned by Houston-based Plains All American Pipeline ruptured spilling approximately 130,000 gallons of heavy crude oil along the Gaviota coast at Refugio Beach in Santa Barbara County. The pipeline responsible for this spill transports oil that was produced on offshore platforms in state and federal waters onshore for refining. The pipeline was not equipped with automatic shut off technology that is installed on other pipelines of this size in Santa Barbara County. Regulation of this pipeline, as the result of an earlier lawsuit, was limited to the federal level. The Elder Act regulates intrastate pipelines. SFM estimates that there may be 2,000 miles of intrastate pipeline located within State waters and coastlines. Line 901 has been classified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) as an interstate pipeline, which is not subject to the Elder Act.

6 CHAPTER 5.5. The Elder California Pipeline Safety Act Of (a) By January 1, 2018, any new or replacement pipeline near environmentally and ecologically sensitive areas in the coastal zone shall use best available technology, including, but not limited to, the installation of leak detection technology, automatic shutoff systems, or remote controlled sectionalized block valves, or any combination of these technologies, based on a risk analysis conducted by the operator, to reduce the amount of oil released in an oil spill to protect state waters and wildlife. (b) (1) By July 1, 2018, an operator of an existing pipeline near environmentally and ecologically sensitive areas in the coastal zone shall submit a plan to retrofit, by January 1, 2020, existing pipelines near environmentally and ecologically sensitive areas in the coastal zone with the best available technology, including, but not limited to, installation of leak detection technologies, automatic shutoff systems, or remote controlled sectionalized block valves, or any combination of these technologies, based on a risk analysis conducted by the operator to reduce the amount of oil released in an oil spill to protect state waters and wildlife.

7 CHAPTER 5.5. The Elder California Pipeline Safety Act Of (2) An operator may request confidential treatment of information submitted in the plan required by paragraph (1) or contained in any documents associated with the risk analysis described in this section, including, but not limited to, information regarding the proposed location of automatic shutoff valves or remote controlled sectionalized block valves.

8 CHAPTER 5.5. The Elder California Pipeline Safety Act Of 1981 AB Williams (c) The State Fire Marshal shall adopt regulations pursuant to this section by July 1, The regulations shall include, but not be limited to, all of the following: (1) A definition of automatic shutoff systems. (2) A process to assess the adequacy of the operator s risk analysis. (3) A process by which an operator may request confidential treatment of information submitted in the plan required by paragraph (1) of subdivision (b) or contained in any documents associated with the risk analysis described in this section. (4) A determination of how near to an environmentally and ecologically sensitive area a pipeline must be to be subject to the requirements of this section based on the likelihood of the pipeline impacting those areas.

9 CHAPTER 5.5. The Elder California Pipeline Safety Act Of 1981 AB Williams (d) An operator of a pipeline near environmentally and ecologically sensitive areas in the coastal zone shall notify the Office of the State Fire Marshal of any new construction or retrofit of pipeline in these waters. (e) For purposes of implementing this section, the State Fire Marshal shall consult with the Office of Spill Prevention and Response about the potential impacts to state water and wildlife. (f) For purposes of this section, environmentally and ecologically sensitive areas is the same term as described in subdivision (d) of Section (g) (1) For purposes of this section, best available technology means technology that provides the greatest degree of protection by limiting the quantity of release in the event of a spill, taking into consideration whether the processes are currently in use and could be purchased anywhere in the world. (2) The State Fire Marshal shall determine what is the best available technology and shall consider the effectiveness and engineering feasibility of the technology when making this determination.

10 Regulation Development The OSFM is working on two regulatory rule making packages SB 295 Annual inspections - Regulations completed by January 1, 2017 AB 864- Leak Detection Regulation completed by July 1, 2017 We formed several work groups of interested stakeholders to work on proposed language. These groups are broken down into the following areas: 1. Annual Inspection 2. Coastal Zone 3. Leak detection 4. Risk analysis/automatic shutoff Groups have met several times since the beginning of the year.

11 WORK GROUP If you are interested in more information regarding the progress of the work groups or to participate please contact: DANIEL HASTERT AGPA (562)

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13 SB 661 Hill - Dig Safe Act of 2016 Protection of subsurface installations 1) Establishes the California Underground Facilities Safe Excavation Advisory Committee (the Advisory Committee), within the CSLB, to investigate violations of the state's excavation and subsurface installation laws, to coordinate education and outreach, and develop standards. 2) Creates a Safe Energy Infrastructure and Excavation Fund to cover administrative costs of the Advisory Committee, an education program, and a workforce training program. The administrative costs and programs will be funded by fines levied on gas and electric companies for safety violations, grants, fees charged to regional notification center members, filing fees from complaint hearings, and any other source. 3) Authorizes the CSLB, the Public Utilities Commission (PUC), and the Office of the State Fire Marshal to accept, amend, or reject the recommendations of the Advisory Committee to enforce specific provisions related to operators and excavators whose activities or business falls within the agency's statutorily defined enforcement jurisdiction Additional Requirements

14 Questions? Bob Gorham Program Manager OSFM Pipeline Safety Division