BILL NUMBER: SB 429 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 22, 2004
AMENDED IN ASSEMBLY JUNE 14, 2004
AMENDED IN SENATE APRIL 30, 2003
INTRODUCED BY Senator Torlakson
(Principal coauthor: Assembly Member Richman)
(Coauthors: Senators Alpert, Cedillo, Denham, Ducheny, and
McPherson)
(Coauthors: Assembly Members Aghazarian, Benoit, Bermudez,
Campbell, Canciamilla, Chavez, Firebaugh, Shirley Horton, Houston,
Matthews, Oropeza, Parra, and Wyland)
FEBRUARY 20, 2003
An act to add and repeal Section 12079 of the Government Code, to
amend Section 42321 of, and to add and repeal Section 42322.7 of, the
Health and Safety Code, and to add and repeal
Chapter 6.7 (commencing with Section 25580) of
to Division 15 of the Public Resources Code, relating to
public resources.
LEGISLATIVE COUNSEL'S DIGEST
SB 429, as amended, Torlakson. Energy resources: petroleum
infrastructure projects: permits: process.
(1) Existing law requires the State Energy Resources Conservation
and Development Commission to report to the Governor and the
Legislature regarding the state's petroleum supply and pricing.
This bill would require the Governor to appoint, until January 1,
2010, a statewide petroleum infrastructure facilitator in the
commission to investigate and intervene in rulemaking, permitting,
and other proceedings by state agencies that affect petroleum
infrastructure projects in the state, and to suggest best practices
and procedures for permit streamlining.
The bill would require all state agencies
a state agency that adopts regulations, issues permits, or conducts
other proceedings that affect petroleum infrastructure projects
, not more than 90 days after the Governor appoints the statewide
petroleum infrastructure facilitator, to (1) identify and list all
permits required by the agency for petroleum infrastructure projects
and related facilities in the state; (2) describe all current
procedures utilized in practice for streamlining and expediting
permitting for petroleum infrastructure projects; and (3) identify
and list all laws, rules, regulations, policies, guidelines, and
permit conditions that inhibit or restrain petroleum infrastructure
prospects.
The bill would require the statewide petroleum infrastructure
facilitator, not more than 120 days after appointment
receiving the information specified above , to
(1) compile and, upon request, make available to persons proposing to
modify, construct, or operate petroleum infrastructure projects, all
available guidance documents and other information on permitting
petroleum infrastructure projects; (2) upon request of applicants,
provide permitting assistance to persons proposing to modify,
construct, or operate petroleum infrastructure projects, including
assistance in working with local governments in ensuring that local
permits, land use authorizations, and other approvals made at the
local level are undertaken in the most expeditious manner feasible
without compromising public participation or environmental
protection; and (3) upon request of applicants, intervene and
participate as a party in rulemaking, permitting, and other
proceedings by a state agency that affect petroleum infrastructure
projects, to streamline the process, preserve existing petroleum
infrastructure efficiencies and capacity, and increase petroleum
infrastructure efficiencies and capacity.
The bill would require the State Air Resources Board (state
board), on or before February 1, 2005, and until January 1, 2010, to
consult with the California Air Pollution Control Officers
Association, the California Environmental Protection Agency, the
Resources Agency, the State Energy Resources Conservation and
Development Commission, the United States Environmental Protection
Agency, other states, public and private regulated entities, and
other interested persons regarding successful methods and best
practices for streamlining air quality permits and other permits that
may be required for petroleum infrastructure projects.
The bill would require the state board, on or before
March 1 June 30 , 2005, to identify permit
streamlining practices, including successful practices implemented by
the districts under certain provisions of existing law, and
would authorize the board to adopt a complete list of permit
streamlining techniques, including specified provisions, procedures,
and requirements. The bill would require
authorize the state board to require the districts to adopt, no
later than May 1, 2005, and implement, no later than July 1, 2005,
the permit provisions and procedures identified by the state board,
thereby imposing a state-mandated local program by imposing new
duties upon local air districts.
The bill would require the commission, on or before February 1,
2005, and until January 1, 2010, to initiate consultations with the
statewide petroleum infrastructure facilitator, the California
Environmental Protection Agency, the Resources Agency, the United
States Environmental Protection Agency, other states, air districts,
public and private regulated entities, California ports, and other
interested persons, regarding successful methods and best practices
for streamlining permits, leases, and other governmental
authorizations and entitlements that may be required by petroleum
infrastructure projects. The bill would require the consultation to
include a complete report of agencies' and the regulated entities'
experiences with facility siting conducted by the commission, similar
processes in other states, and similar processes in this state.
The bill would require the commission, on or before March
June 30, 2005, to identify permit streamlining
practices, including successful practices implemented by the State
Air Resources Board under the provisions of the bill described above,
and to publish for public comment a complete list of permit
streamlining techniques for petroleum infrastructure projects,
including certain, specific techniques.
The bill would require the commission, on or before May 1
December 31 , 2005, to submit a report to the
Governor and the Legislature describing the results of the
consultation and the specified list, together with detailed
recommendations for establishing new, streamlined processes for
permitting petroleum infrastructure projects in California in
a manner that accomplishes certain requirements .
The bill would permit the Governor, or one or more officials
designated by the Governor, to identify existing or proposed
regulations and other requirements, and would require a member of the
commission to review those requirements and to issue findings.
to determine if they meet specified criteria. The
bill would prohibit a state or local agency from adopting or
maintaining a requirement found not to meet the specified criteria,
unless the state or local agency makes a specified finding, thereby
imposing a state-mandated local program by imposing new requirements
upon local agencies.
(2) 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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
(2) 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known, and may be cited, as the
Petroleum Infrastructure Reliability Act of 2004.
SEC. 2. The Legislature hereby finds and declares all of the
following:
(a) California's supply of transportation fuel is not keeping pace
with growing demand.
(b) California consumers desire to use the cleanest available
transportation fuels. California has been a pioneer in the
development of cleaner burning gasoline and other cleaner burning
transportation fuels.
(c) In the past two decades, the number of petroleum refineries in
California and the nation has declined, and no new refineries are
anticipated in California.
(d) It is becoming more difficult for California refiners to
improve reliability, improve efficiency, and make incremental
capacity increases to meet demand growth for cleaner burning
transportation fuels. Imports of finished cleaner burning
transportation fuels and blending stocks are now critical to
balancing supply and demand in California.
(e) Ports, marine terminals, refineries, pipelines, terminals, and
other elements of the California petroleum infrastructure are
proving to be inadequate for producing and handling increased volumes
of cleaner burning transportation fuels.
(f) California faces potentially serious transportation fuel
imbalances over the next several years, which necessitate immediate
action by the state on a statewide basis.
(g) The purpose of this act is to respond to the problems facing
the state by promoting incremental investments in new, more reliable,
more efficient, and environmentally superior components of the
California petroleum infrastructure, and to assist persons proposing
to construct and operate petroleum infrastructure facilities, without
in any manner compromising environmental protection.
SEC. 3. Section 12079 is added to the Government Code, to read:
12079. (a) The Governor shall appoint a statewide petroleum
infrastructure facilitator in the State Energy Resources Conservation
and Development Commission to investigate and intervene in
rulemaking, permitting, and other proceedings by state agencies that
affect petroleum infrastructure projects in the state, and to suggest
best practices and procedures for permit streamlining.
(b) The Governor may authorize and direct the chair of the State
Energy Resources Conservation and Development Commission to designate
individual members of the commission to investigate and intervene in
agency rulemaking, permitting, and other proceedings affecting
petroleum infrastructure projects in the state and to suggest best
practices and procedures for permit streamlining.
(c) Not more than 90 days after the Governor appoints a statewide
petroleum infrastructure facilitator pursuant to subdivision (a),
all state agencies a state agency
that adopts regulations, issues permits, or conducts other
proceedings that affect petroleum infrastructure projects shall
do all of the following:
(1) Identify and list all permits required by the agency for
petroleum infrastructure projects and related facilities in the
state.
(2) Describe all current procedures utilized in practice for
streamlining and expediting permitting for petroleum infrastructure
projects.
(3) Identify and list all laws, rules, regulations, policies,
guidelines, and permit conditions that inhibit or restrain petroleum
infrastructure prospects.
(d) Not more than 120 days after appointment pursuant to
subdivision (a) receiving the information described in
subdivision (c) , the statewide petroleum infrastructure
facilitator shall do all of the following:
(1) Compile and, upon request, make available to persons proposing
to modify, construct, or operate petroleum infrastructure projects,
all available guidance documents and other information on permitting
petroleum infrastructure projects.
(2) Upon request of applicants, provide permitting assistance to
persons proposing to modify, construct, or operate petroleum
infrastructure projects, including, but not limited to, assistance in
working with local governments in ensuring that local permits, land
use authorizations, and other approvals made at the local level are
undertaken in the most expeditious manner feasible without
compromising public participation or environmental protection.
(3) Upon request of applicants, intervene and participate as a
party in rulemaking, permitting, and other proceedings by a state
agency that affect petroleum infrastructure projects, to streamline
the process, to preserve existing petroleum infrastructure
efficiencies and capacity, and to increase petroleum infrastructure
efficiencies and capacity.
(e) The statewide petroleum infrastructure facilitator shall work
with the Legislature to introduce and enact legislation as
expeditiously as possible to streamline and expedite permitting for
petroleum infrastructure projects in the state.
(f) In carrying out the duties imposed pursuant to this section,
the statewide petroleum infrastructure facilitator shall consult with
all of the following:
(1) The Chair of the State Energy Resources Conservation and
Development Commission.
(2) The Chair of the State Air Resources Board.
(3) The Secretary for Environmental Protection.
(4) The Secretary of the Resources Agency.
(5) The Director of the Governor's Office of Planning and
Research.
(6) Representatives from the United States Environmental
Protection Agency, the United States Department of Energy, the United
States Department of the Interior, and other affected federal
agencies, as appropriate.
(7) Representatives of local and regional agencies, including, but
not limited to, air pollution control districts and air quality
management districts.
(g) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2010, deletes or extends that
date.
SEC. 4. Section 42321 of the Health and Safety Code is amended to
read:
42321. The Legislature hereby finds and declares all of the
following:
(a) California's air pollution control programs have been among
the most successful efforts in the country to reduce air pollution
and to protect public health and the environment.
(b) It is in the interest of the people of the state, particularly
during times of economic difficulty, to enact laws that improve the
processes by which businesses comply with environmental and air
quality laws, without sacrificing the protection of public health and
the environment.
(c) The purpose of this article is to do both of the
following:
(1) Require districts to review their permit programs and to
institute new, efficient procedures that will assist businesses in
complying with regional, state, and federal air quality laws in an
expedited fashion, without reducing protection of public health and
the environment.
(2) Require require the state board to assist
applicants and districts in identifying and instituting new,
efficient procedures to assist applicants for permits for petroleum
infrastructure projects in complying with regional, state, and
federal air quality laws in an expedited fashion, for the purpose of
preserving the efficiencies and capacity of existing petroleum
infrastructure and increasing the efficiencies and capacity of the
petroleum infrastructure, without reducing protection of public
health and the environment.
SEC. 5. Section 42322.7 is added to the Health and Safety Code, to
read:
42322.7. (a) On or before February 1, 2005, the state board shall
consult with the California Air Pollution Control Officers
Association, the California Environmental Protection Agency, the
Resources Agency, the State Energy Resources Conservation and
Development Commission, the United States Environmental Protection
Agency, other states, public and private regulated entities, and
other interested persons regarding successful methods and best
practices for streamlining air quality permits and other permits that
may be required for petroleum infrastructure projects.
(b) On or before March 1 June 30 ,
2005, the state board shall identify permit streamlining practices,
including, but not limited to, successful practices implemented by
the districts as directed by Sections 42322 and 42322.5, and
shall may adopt a complete list of permit
streamlining techniques, including, but not limited to, all of the
following:
(1) Provisions for same day permit issuance for qualified
petroleum infrastructure projects.
(2) Streamlined procedures for hiring and relying on certified
permit application reviewers for petroleum infrastructure projects.
(3) Requiring that the districts determine whether an application
for a petroleum infrastructure project is complete, not more than 15
days after receiving the application.
(4) Review, avoidance, and deletion of involuntary limitations on
the throughput of any components of the state petroleum
infrastructure.
(c) The state board shall may
require the districts to adopt, no later than May 1, 2005, and
implement, no later than July 1, 2005, the permit provisions and
procedures identified by the state board under subdivision (b).
(d) The state board shall may
continuously identify permit streamlining practices to preserve the
efficiencies and capacity of existing petroleum infrastructure and to
increase the efficiencies and capacity of petroleum infrastructure
in the state, and shall may require the
districts to adopt and implement all other best practices identified
by the state board on an expeditious basis.
(e) The state board may waive the requirement for a district to
implement a best practice if the district can demonstrate both of the
following:
(1) That its existing district program performs at least as
effectively as a streamlining practice identified under subdivision
(b) or (d).
(2) That the district program has, in actual practice, resulted in
simplifying and expediting permitting for petroleum infrastructure
projects.
(f) The state board shall revise its best practices list after
holding a public meeting, and the districts shall adopt the revised
practices at least annually.
(g) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2010, deletes or extends that
date.
SEC. 6. Chapter 6.7 (commencing with Section 25580) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 6.7. PETROLEUM INFRASTRUCTURE PROJECTS
25580. For the purposes of this chapter, "petroleum
infrastructure projects" include marine terminals, port facilities,
product storage facilities, pipelines, land terminals, refinery
projects, and related kinds of facilities identified by the
commission as being necessary to assure a consistent and reliable
supply of cleaner burning gasoline, ultra low sulfur diesel fuel, and
other petroleum products to California consumers.
25582. The Legislature hereby finds and declares all of the
following:
(a) California is making increasing and new demands for petroleum
products, including demands for alternative and cleaner burning
transportation fuels.
(b) It is in the best interests of the people of the state to
enact laws that improve the processes by which California fuel
producers and importers comply with environmental, land use, and
siting laws, without sacrificing the protection of public health and
the environment.
(c) Certain projects are vital to ensuring the reliability, to
preserving the existing efficiencies and capacity, and to increasing
the efficiencies and capacity of state ports, refineries, terminals,
pipelines, and other petroleum infrastructure facilities. It is in
the best interests of the people of the state to streamline
permitting for petroleum infrastructure projects to preserve and
increase the efficiencies and capacity of the California petroleum
infrastructure.
(d) Rules, regulations, policies, guidelines, and permit
conditions adopted by local, regional, and state regulatory agencies
may significantly impair the ability of petroleum infrastructure
facilities to produce a consistent and reliable supply of cleaner
burning gasoline and other products for California consumers.
(e) It is in the best interests of the people of the state for the
commission to review regulations to ensure continued, consistent,
and reliable operation of California petroleum infrastructure
facilities and reduce the need for California to import gasoline.
25584. (a) On or before February 1, 2005, the commission shall
initiate consultations with the facilitator appointed pursuant to
subdivision (a) of Section 12079 of the Government Code, the
California Environmental Protection Agency, the Resources Agency, the
United States Environmental Protection Agency, other states, air
districts, public and private regulated entities, California ports,
and other interested persons, regarding successful methods and best
practices for streamlining permits, leases, and other governmental
authorizations and entitlements that may be required by petroleum
infrastructure projects.
(b) The consultation required pursuant to subdivision (a) shall
include a complete report of agencies' and the regulated entities'
experiences with facility siting conducted by the commission, similar
processes in other states, and similar processes in this state.
(c) On or before March June 30,
2005, the commission shall identify permit streamlining practices,
including, but not limited to, successful practices implemented by
the State Air Resources Board under Section 42322.7 of the Health and
Safety Code, and shall publish for public comment a complete list of
permit streamlining techniques for petroleum infrastructure
projects, including, but not limited to, all of the following:
(1) Developing and implementing partially or fully consolidated
permit programs for petroleum infrastructure projects.
(2) Adopting criteria for the types of permitting actions for
petroleum infrastructure projects eligible for streamlining and for a
simplified permitting process.
(3) Adopting streamlined lists and criteria for application
completeness determinations for petroleum infrastructure projects.
(4) Adopting mandatory deadlines for actions on permits for
petroleum infrastructure projects, similar to those enforceable by
appeal under Section 42302 of the Health and Safety Code.
(5) Avoiding and eliminating limitations on the throughput of
components of the California petroleum infrastructure.
(6) Relying on actual emissions performance standards that allow
the maximum flexibility in utilizing existing efficiencies and
capacity and increasing efficiencies and capacity of the California
petroleum infrastructure.
(d) On or before May 1 December 31 ,
2005, the commission shall submit a report to the Governor and the
Legislature describing the results of the consultation pursuant to
this section and the list published pursuant to subdivision (c),
together with detailed recommendations for establishing new,
streamlined processes for permitting petroleum infrastructure
projects in California in a manner that meets all of the
following criteria: .
(1) Requires a permit that is exempt from review under the
California Environmental Quality Act (Division 13 (commencing with
Section 21000)), or for which review is satisfied by a negative
declaration or a mitigated negative declaration, to be issued not
more than 60 days after the application is deemed complete.
(2) Requires a partly or completely consolidated permit to be
issued not more than 180 days after the application is determined or
deemed complete.
(3) Requires a local, regional, state or federal permit or other
governmental authorization excluded from a consolidated permit
process to be expedited by the permitting authority.
(4) Requires lists and criteria for determining application
completeness to include only information that significantly enables
the permitting authorities to initiate permit processing.
(5) Requires the permitting process to avoid and reduce
vulnerabilities and gaps in the California petroleum infrastructure,
preserve the efficiencies and capacity of existing petroleum
infrastructure, and increase the efficiencies and capacity of the
California petroleum infrastructure.
(6) Allows additional investments to be made to preserve and
increase the capacity, efficiencies, reliability, and environmental
performance of the California petroleum infrastructure.
25586. (a) The Governor, or one or more officials designated by
the Governor, may identify existing or proposed rules, regulations,
plans, policies, guidelines, permit conditions, or other requirements
affecting petroleum infrastructure facilities and refer them to the
commission for review in accordance with the criteria in
subdivision (d) of Section 22584. .
(b) The chair of the commission shall designate a single
commissioner to review requirements and issue findings
affecting petroleum infrastructure facilities that are referred under
subdivision (a).
(c) The designated commissioner shall promptly review and issue
findings on whether referred requirements meet the criteria in
subdivision (d) of Section 25584.
(d) A state or local agency may not adopt or maintain in effect
any requirement reviewed pursuant to this section that is found to
not meet the criteria in subdivision (d) of Section 25584, unless the
state or local agency addresses each finding made by the designated
commissioner pursuant to subdivision (c), and finds that specific
considerations override the criteria in subdivision (d) of Section
25584.
25588. (a) In taking any action under this chapter, the
commission may adopt rules and regulations as necessary to ensure
that relevant duties pursuant to this chapter are carried out.
(b) To implement this section, the commission may adopt emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.
For purposes of that chapter, including, but not limited to, Section
11349.6 of the Government Code, the adoption of the regulations shall
be considered by the Office of Administrative Law to be necessary
for the immediate preservation of the public peace, health, safety,
and general welfare.
25590. This chapter shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2010, deletes or extends that
date.
SEC. 7. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because a local agency or school district has the authority
to levy service charges, fees, or assessments sufficient to pay for
the program or level of service mandated by this act, within the
meaning of Section 17556 of the Government Code.
However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
SEC. 7. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.