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AB-2623 Carbon dioxide transport.(2023-2024)



Current Version: 02/14/24 - Introduced

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AB2623:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2623

Introduced by Assembly Member Arambula

February 14, 2024

An act to amend Sections 51010, 51010.5, 51012, and 51013.5 of, and to add Sections 51014.7 and 51014.8 to, the Government Code, to amend Section 39741.2 of the Health and Safety Code, and to amend Section 71465 of the Public Resources Code, relating to greenhouse gases.


LEGISLATIVE COUNSEL'S DIGEST


AB 2623, as introduced, Arambula. Carbon dioxide transport.
Under the Elder California Pipeline Safety Act of 1981, the State Fire Marshal exercises safety regulatory jurisdiction over intrastate pipelines used for the transportation of hazardous or highly volatile liquid substances. The act imposes various requirements in relation to the regulation of these intrastate pipelines. A person who willfully and knowingly violates the act or a regulation adopted pursuant to the act is, upon conviction, subject to a fine, imprisonment, or both a fine and imprisonment, as provided.
This bill would expand the regulation of intrastate pipelines under the act to intrastate pipelines used for the transportation of carbon dioxide, by revising the definition of “pipeline” for purposes of the act to also include intrastate pipelines used for the transportation of carbon dioxide. The bill would require carbon dioxide transported in intrastate pipelines to be at a certain state and certain concentration and would prohibit the pipeline transportation of carbon dioxide that is not in that state or concentration. The bill would also require pipelines used for the transportation of carbon dioxide to be those specifically built for that purpose and would prohibit the use of pipelines for the transportation of carbon dioxide built to transport substances other than carbon dioxide. The bill would require the State Fire Marshal to adopt safety-related regulations governing intrastate pipelines transporting carbon dioxide, as provided. The bill would authorize the State Fire Marshal to require an operator of a pipeline transporting carbon dioxide to cease operation of the pipeline if the operator is found to be in violation of the above requirements and prohibitions or the safety-related regulations.
Because a violation of the above requirements and prohibitions would be a crime, this bill would impose a state-mandated local program.
Existing law requires the State Air Resources Board to adopt regulations for a unified permit application for the construction and operation of carbon dioxide capture, removal, or sequestration project to expedite the issuance of permits or other authorizations for the construction and operation of those projects.
This bill would require the unified permit application to ensure that carbon dioxide transported to or from an injection or sequestration site, or captured carbon dioxide transported to the point of use, be transported by specified methods.
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   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) Carbon dioxide is a colorless, odorless gas that can be difficult to identify. Carbon dioxide is denser than air, and when it is released into the atmosphere it displaces oxygen, causing asphyxiation of humans and animals and preventing the functioning of internal combustion engines.
(2) A carbon dioxide pipeline rupture in Satartia, Mississippi, sickened dozens of people. Without prompt emergency response and evacuation, those exposed could have died of asphyxiation. Many of the individuals who were exposed to the carbon dioxide leak suffer from ongoing health problems.
(3) Many Californians in communities where carbon dioxide might be transported live far from the nearest hospital, and possibly even farther from a hospital equipped to deal with a mass carbon dioxide exposure event.
(4) Carbon dioxide can be transported by pipeline, truck, rail, or boat, but pipelines are considered to be the safest and most efficient means of transportation. Carbon dioxide can be transported in a liquid, gaseous, or supercritical state. It is most stable when transported in a supercritical state, but high temperatures and pressures are necessary to maintain that state. Carbon dioxide is also more stable when transported in a relatively pure form. Additives and impurities may increase the instability and corrosivity of carbon dioxide.
(5) The federal Pipeline and Hazardous Materials Safety Administration (PHMSA) has only established regulations for the transportation of carbon dioxide in a supercritical state at greater than 90 percent concentration. The transportation of carbon dioxide in a liquid or gaseous form, or at a concentration of less than 90 percent, remains legal and completely unregulated.
(b) It is the intent of the Legislature to ensure that any intrastate transportation of carbon dioxide be done in a manner that minimizes risks to public and environmental health and safety.

SEC. 2.

 Section 51010 of the Government Code is amended to read:

51010.
 It is the intent of the Legislature, in enacting this chapter, that the State Fire Marshal shall exercise exclusive safety regulatory and enforcement authority over intrastate carbon dioxide and hazardous liquid pipelines and, to the extent authorized by agreement between the State Fire Marshal and the United States Secretary of Transportation, and may act as agent for the United States Secretary of Transportation to implement the federal Hazardous Liquid Pipeline Safety Act of 1979 (49 U.S.C. Sec. 60101 et seq.) and federal pipeline safety regulations as to those portions of interstate pipelines located within this state, as necessary to obtain annual federal certification.

SEC. 3.

 Section 51010.5 of the Government Code is amended to read:

51010.5.
 As used in this chapter, the following definitions apply:
(a) “Pipeline” includes every intrastate pipeline used for the transportation of hazardous liquid substances substances, carbon dioxide, or highly volatile liquid substances, including a common carrier pipeline, and all piping containing those substances located within a refined products bulk loading facility that is owned by a common carrier and is served by a pipeline of that common carrier, and the common carrier owns and serves by pipeline at least five of these facilities in the state. “Pipeline” does not include the following:
(1) An interstate pipeline subject to Part 195 (commencing with Section 195.0) of Title 49 of the Code of Federal Regulations.
(2) A pipeline for the transportation of a hazardous liquid substance in a gaseous state.
(3) Transportation of petroleum in onshore gathering lines located in rural areas.
(4) A pipeline for the transportation of a hazardous liquid substance or carbon dioxide offshore located upstream from the outlet flange of each facility on the Outer Continental Shelf where hydrocarbons are produced or where produced hydrocarbons are first separated, dehydrated, or otherwise processed, whichever facility is farther downstream.
(5) Transportation of a hazardous liquid or carbon dioxide by a flow line.
(6) A pipeline for the transportation of a hazardous liquid substance or carbon dioxide through an onshore production, refining, or manufacturing facility, including a storage or inplant piping system associated with that facility.
(7) Transportation of a hazardous liquid substance or carbon dioxide by vessel, aircraft, tank truck, tank car, or other vehicle or terminal facilities used exclusively to transfer hazardous liquids between those modes of transportation.
(b) “Flow line” means a pipeline that transports hazardous liquid substances or carbon dioxide from the well head to a treating facility or production storage facility.
(c) “Hydrostatic testing” means the application of internal pressure above the normal or maximum operating pressure to a segment of pipeline, under no-flow conditions for a fixed period of time, utilizing a liquid test medium.
(d) “Local agency” means a city, county, or fire protection district.
(e) “Rural area” means a location that lies outside the limits of any incorporated or unincorporated city or city and county, or other residential or commercial area, such as a subdivision, a business, a shopping center, or a community development.
(f) “Gathering line” means a pipeline eight inches or less in nominal diameter that transports petroleum from a production facility.
(g) “Production facility” means piping or equipment used in the production, extraction, recovery, lifting, stabilization, separation, or treatment of petroleum or associated storage or measurement. To be a production facility under this definition, piping or equipment must shall be used in the process of extracting petroleum from the ground and transporting it by pipeline. pipelines.
(h) “Public drinking water well” means a wellhead that provides drinking water to a public water system as defined in Section 116275 of the Health and Safety Code, that is regulated by the State Department of Public Health Water Resources Control Board and that is subject to Section 116455 of the Health and Safety Code.
(i) “GIS mapping system” means a geographical information system that will collect, store, retrieve, analyze, and display environmental geographical data in a database that is accessible to the public.
(j) “Motor vehicle fuel” includes gasoline, natural gasoline, blends of gasoline and alcohol, or gasoline and oxygenates, and any inflammable liquid, by whatever name the liquid may be known or sold, which is used or is usable for propelling motor vehicles operated by the explosion type engine. It does not include kerosene, liquefied petroleum gas, or natural gas in liquid or gaseous form.
(k) “Oxygenate” means an organic compound containing oxygen that has been approved by the United States Environmental Protection Agency as a gasoline additive to meet the requirements for an “oxygenated fuel” pursuant to Section 7545 of Title 42 of the United States Code.

SEC. 4.

 Section 51012 of the Government Code is amended to read:

51012.
 The State Fire Marshal shall establish a Pipeline Safety Advisory Committee for purposes of informing local agencies and every pipeline operator of changes in applicable laws and regulations affecting the operations of pipelines and reviewing proposed hazardous liquid and carbon dioxide pipeline safety regulations adopted pursuant to Section 51011.
The committee shall be composed of eight members of whom two shall represent pipeline operators, three shall represent local agencies, one shall be a fire chief, and two shall be public members. The committee shall meet when requested by the State Fire Marshal, but not less than once a year. The members shall be paid expenses and one hundred dollars ($100) per diem for each meeting.

SEC. 5.

 Section 51013.5 of the Government Code is amended to read:

51013.5.
 (a) Every newly constructed pipeline, existing pipeline, or part of a pipeline system that has been relocated or replaced, and every pipeline that transports a hazardous liquid substance substance, carbon dioxide, or highly volatile liquid substance, shall be tested in accordance with Subpart E (commencing with Section 195.300) of Part 195 of Title 49 of the Code of Federal Regulations.
(b) Every pipeline not provided with properly sized automatic pressure relief devices or properly designed pressure limiting devices shall be hydrostatically tested annually.
(c) Every pipeline over 10 years of age and not provided with effective cathodic protection shall be hydrostatically tested every three years, except for those on the State Fire Marshal’s list of higher risk pipelines, which shall be hydrostatically tested annually.
(d) Every pipeline over 10 years of age and provided with effective cathodic protection shall be hydrostatically tested every five years, except for those on the State Fire Marshal’s list of higher risk pipelines pipelines, which shall be hydrostatically tested every two years.
(e) Piping within a refined products bulk loading facility served by pipeline shall be tested hydrostatically at 125 percent of maximum allowable operating pressure utilizing the product ordinarily transported in that piping if that piping is operated at a stress level of 20 percent or less of the specified minimum yield strength of the pipe. The frequency for pressure testing these pipelines shall be every five years for those pipelines with effective cathodic protection and every three years for those pipelines without effective cathodic protection. If that piping is observable, visual inspection may be the method of testing.

(f)Beginning on July 1, 1990, and continuing until the regulations adopted by the State Fire Marshal pursuant to subdivision (g) take effect, each pipeline within the State Fire Marshal’s jurisdiction which satisfies any of the following sets of criteria shall be placed on the State Fire Marshal’s list of higher risk pipelines until five years pass without a reportable leak due to corrosion or defect on that pipeline. Initially, pipelines on that list shall be tested by the next scheduled test date, or within two years of being placed on the list, whichever is first. On July 1, 1990, pipeline operators shall provide the State Fire Marshal with a list of all their pipelines which satisfy the criteria in this subdivision as of July 1, 1990. If any pipeline becomes eligible for the list of higher risk pipelines after that date, the pipeline company shall report that fact to the State Fire Marshal within 30 days, and the pipeline shall be placed on the list retroactively to the date on which it became eligible for listing. Pipelines which are found to belong on the list, but are not so reported by the operator to the State Fire Marshal, shall be placed on the list retroactively. Operators failing to properly report their pipelines shall be subject to penalties under Section 51018.6. Pipelines not covered under the risk criteria developed pursuant to subdivision (g) shall be deleted from the list when regulations are adopted pursuant to that subdivision. For purposes of this subdivision, a leak which is traceable to an external force, but for which corrosion is partly responsible, shall be deemed caused by corrosion, “defect” refers to manufacturing or construction defects, and “leak” or “reportable leak” means a rupture required to be reported pursuant to Section 51018. As long as all pipelines are tested in their entirety at least as frequently as standard risk pipelines under subdivisions (c) and (d), it shall suffice for additional tests on higher risk pipelines to cover 20 pipeline miles in all directions along an operator’s pipeline from the position of the leak or leaks which led to the inclusion or retention of that pipeline on the higher risk list. The interim list shall include pipelines which meet any of the following criteria:

(1)Have suffered two or more reportable leaks, not including leaks during a certified hydrostatic pressure test, due to corrosion or defect in the prior three years.

(2)Have suffered three or more reportable leaks, not including leaks during a certified hydrostatic pressure test, due to corrosion, defects, or external forces, but not all due to external forces, in the prior three years.

(3)Have suffered a reportable leak, except during a certified hydrostatic pressure test, due to corrosion or defect of more than 50,000 gallons, or 10,000 gallons in a standard metropolitan statistical area, in the prior three years; or have suffered a leak due to corrosion or defect which the State Fire Marshal finds has resulted in more than 42 gallons of a hazardous liquid within the State Fire Marshal’s jurisdiction entering a waterway in the prior three years; or have suffered a reportable leak of a hazardous liquid with a flashpoint of less than 140 degrees Fahrenheit, or 60 degrees centigrade, in the prior three years.

(4)Are less than 50 miles long, and have experienced a reportable leak, except during a certified hydrostatic pressure test, due to corrosion or a defect in the prior three years. For the purposes of this paragraph, the length of a pipeline with more than two termini shall be the longest distance between two termini along the pipeline.

(5)Have experienced a reportable leak in the prior five years due to corrosion or defect, except during a certified hydrostatic pressure test, on a section of pipe more than 50 years old. For pipelines which fall in this category, and no other category of higher risk pipeline, additional tests required by this subdivision shall be required only on segments of the pipe more than 50 years old as long as all pipe more than 50 years old which is within 20 pipeline miles from the leak in all directions along an operator’s pipeline is tested.

(g)

(f) The State Fire Marshal shall study indicators and precursors of serious pipeline accidents, and, in consultation with the Pipeline Safety Advisory Committee, shall develop criteria for identifying which hazardous liquid pipelines pose the greatest risk to people and the environment due to the likelihood of, and likely seriousness of, an accident due to corrosion or defect. The study shall give due consideration to research done by the industry, the federal government, academia, and to any other information which the State Fire Marshal shall deem relevant, including, but not limited to, recent leak history, pipeline location, and materials transported. Beginning January 1, 1992, using the criteria identified in that study, the State Fire Marshal shall maintain a list of higher risk pipelines, which exceed a standard of risk to be determined by the State Fire Marshal, and which shall be tested as required in subdivisions (c) and (d) as long as they remain on the list. By January 1, 1992, after public hearings, the State Fire Marshal shall adopt regulations to implement this subdivision.

(h)

(g) In addition to the requirements of subdivisions (a) to (e), inclusive, the State Fire Marshal may require any pipeline subject to this chapter to be subjected to a pressure test, or any other test or inspection, at any time, in the interest of public safety.

(i)

(h) Test methods other than the hydrostatic tests required by subdivisions (b), (c), (d), and (e), including inspection by instrumented internal inspection devices, may be approved by the State Fire Marshal on an individual basis. If the State Fire Marshal approves an alternative to a pressure test in an individual case, the State Fire Marshal may require that the alternative test be given more frequently than the testing frequencies specified in subdivisions (b), (c), (d), and (e).

(j)

(i) The State Fire Marshal shall adopt regulations before January 1, 1992, to establish what the State Fire Marshal deems to be an appropriate frequency for tests and inspections, including instrumented internal inspections, which, when permitted as a substitute for tests required under subdivisions (b), (c), and (d), do not damage pipelines or require them to be shut down for the testing period. That testing shall in no event be less frequent than is required by subdivisions (b), (c), and (d). Each time one of these tests is required on a pipeline, it shall be approved on the same individual basis as under subdivision (i). (h). If it is not approved, a hydrostatic test shall be carried out at the time the alternative test would have been carried out, and subsequent tests shall be carried out in accordance with the time intervals prescribed by subdivision (b), (c), or (d), as applicable.

SEC. 6.

 Section 51014.7 is added to the Government Code, to read:

51014.7.
 (a) Carbon dioxide transported in intrastate pipelines shall be in a supercritical state at greater than 90 percent concentration. The transportation of carbon dioxide in a nonsupercritical state or at less than 90 percent concentration is prohibited.
(b) Carbon dioxide transported by pipelines shall only be transported by pipelines built specifically for that purpose. Carbon dioxide shall not be transported by pipelines that are built to transport substances other than carbon dioxide.

SEC. 7.

 Section 51014.8 is added to the Government Code, to read:

51014.8.
 (a) The State Fire Marshal shall adopt safety-related regulations governing intrastate pipelines transporting carbon dioxide that include all of the following:
(1) Design requirements that include, but are not limited to, all of the following:
(A) Engineering requirements necessary to resist fracture propagation.
(B) Materials that may be used in the construction of pipes.
(C) Materials that may be used in the construction of valves.
(D) Appropriate spacing and design of valves.
(2) Public and environmental safety requirements that include, but are not limited to, all of the following:
(A) Modeling of potential impact areas in the event of a carbon dioxide release.
(B) Consideration of proximity to medical facilities and the ability of those medical facilities to respond to a carbon dioxide release.
(C) Consideration of emergency response times and strategies in the event of a carbon dioxide release.
(D) Robust involvement of communities in close proximity to proposed pipelines throughout the siting process.
(E) Consideration of proximity to ecologically sensitive areas.
(3) Operation requirements that include, but are not limited to, all of the following:
(A) Addition of odorants.
(B) Implementation of mechanisms to detect carbon dioxide leaks.
(C) Emergency response training for first responders and communities in close proximity to carbon dioxide pipelines.
(D) Development of an emergency response plan that takes into account the inability of combustion engine vehicles to function in the event of a carbon dioxide release.
(4) Maintenance requirements that include, but not limited to, both of the following:
(A) Testing requirements.
(B) Inspection requirements.
(5) Reporting requirements that include, but are not limited to, both of the following:
(A) Publicly available and searchable information about the materials transported, safety precautions implemented, any violations of safety-related regulations, and any releases of carbon dioxide.
(B) Stricter reporting requirements for pipelines carrying carbon dioxide in close proximity to residential areas and ecologically sensitive areas.
(b) In developing the regulations pursuant to subdivision (a), the State Fire Marshal shall solicit comments from communities in areas of the state where carbon dioxide pipelines are most likely to be sited.
(c) The State Fire Marshal may require an operator of a pipeline transporting carbon dioxide to cease operation of the pipeline if the operator is found to be in violation of Section 51014.7 or safety-related regulations adopted pursuant to subdivision (a).

SEC. 8.

 Section 39741.2 of the Health and Safety Code is amended to read:

39741.2.
 (a) (1) In furtherance of the objectives in Section 39741.1, on or before January 1, 2025, the state board shall, in consultation with relevant state and local agencies, adopt regulations for a unified permit application for the construction and operation of carbon dioxide capture, removal, or sequestration projects to expedite the issuance of permits or other authorizations for the construction and operation of those projects. The unified permit application shall solicit from applicants, and direct to all relevant state agencies, all information needed to obtain permits and other authorizations from relevant state and local agencies necessary for the construction and operation of a carbon dioxide capture, removal, or sequestration project. An applicant’s use of the unified permit application shall be optional.
(2) The unified permit application shall ensure that the carbon dioxide transported to or from an injection or sequestration site, or captured carbon dioxide transported to the point of use, be transported by either of the following:
(A) For nonpipeline transport, the safest available method as defined by the best available science.
(B) For pipeline transport, pipelines that are in compliance with the Elder California Pipeline Safety Act of 1981 (Chapter 5.5 (commencing with Section 51010) of Part 1 of Division 1 of Title 5 of the Government Code).
(b) (1) Before adopting the unified permit application described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public.
(2) The state board shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.
(c) The unified permit application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or its implementing regulations, with respect to the review or approval of a carbon dioxide capture, removal, or sequestration project.
(d) The unified permit application developed by the state board pursuant to subdivision (a) is for the purpose of efficiency but shall not displace the role of individual permitting agencies and shall not eliminate, abridge, or reduce the review or issuance of the individual permits covered by the application by the respective agencies. As part of the unified permit application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.
(e) The unified permit application shall be used by relevant state agencies when issuing a permit or other authorization for the construction and operation of a carbon dioxide capture, removal, or sequestration project.

SEC. 9.

 Section 71465 of the Public Resources Code is amended to read:

71465.
 (a) Pipelines shall only be utilized used to transport carbon dioxide to or from a carbon dioxide capture, removal, or sequestration project once the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Parts 190 to 199, inclusive, of Title 49 of the Code of Federal Regulations) Regulations), safety-related regulations are adopted pursuant to Section 51014.8 of the Government Code, and the carbon dioxide capture, removal, or sequestration project operator demonstrates that the pipeline meets those both federal and state standards. This section shall not apply to carbon captured at a permitted facility and transported within that facility or property.
(b) The Natural Resources Agency, in consultation with the Public Utilities Commission, shall, no later than February 1, 2023, provide a proposal to the Legislature to establish a state framework and standards for the design, operation, siting, and maintenance of intrastate pipelines carrying carbon dioxide fluids of varying composition and phase to minimize the risk posed to public and environmental health and safety. The recommended framework shall be designed to minimize risk to public health and environmental health and safety, to the extent feasible.

SEC. 10.

 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.