BILL NUMBER: SB 429	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 30, 2004
	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 Chapter 6.7
(commencing with Section 25580)  to Division 15 of the Public
  25226 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 
 designate  , until January 1,  2010 
2007  , a statewide petroleum infrastructure facilitator in
the commission to investigate  and intervene in 
rulemaking, permitting, and other proceedings by state
  public  agencies that affect petroleum
infrastructure projects in the state, and to suggest best practices
 and procedures for permit streamlining  .
   The bill would require  a state agency that adopts
regulations, issues permits, or conducts other proceedings that
affect petroleum infrastructure projects   the statewide
petroleum infrastructure facilitator  , not more than 
90   120  days after the Governor  appoints
the statewide petroleum infrastructure facilitator  
designates him or her  , 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  ,
and standard practices  that  inhibit or restrain
  affect  petroleum infrastructure prospects
 .
   The bill would require the statewide petroleum infrastructure
facilitator, not more than 120 days after receiving the information
specified above, to (1)   ; (4)  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   and (5) survey
 local governments  in ensuring that   on
procedures for  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 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 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.   for infrastructure projects  .
   The bill would require the commission,  on or before
February 1, 2005, and  until January 1,  2010
  2007  , 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 June 30, 2005,
to identify  permit streamlining   permitting
 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 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   improved  processes for permitting
petroleum infrastructure projects in California.  
   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.
  (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.
 
   The bill would authorize the commission to adopt rules and
regulations to implement the bill's requirements. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:   yes   no  .


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.  
  SECTION 1.   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.    .
  SEC. 2.  Section 25226 is added to the Public Resources Code, to
read:
   25226.   (a) The Governor shall  appoint 
 designate  a statewide petroleum infrastructure facilitator
in the  State Energy Resources Conservation and Development
Commission   commission  to investigate 
and intervene in  rulemaking, permitting, and other
proceedings by  state   public  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)  
   (b)  Not more than  90   120  days
after the Governor  appoints   designates 
a statewide petroleum infrastructure facilitator pursuant to 
subdivision (a),  a state agency that adopts regulations, issues
permits, or conducts other proceedings that affect petroleum
infrastructure projects shall do all of the  
subdivision (a), the petroleum infrastructure facilitator 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
  permit conditions, and standard practices that affect
 petroleum infrastructure prospects.  
   (d) Not more than 120 days after receiving the information
described in subdivision (c), the statewide petroleum infrastructure
facilitator shall do all of the following:
   (1)  
   (4)  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,
 
   (5) Survey local governments on procedures for 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)   for petroleum infrastructure projects.
   (c)  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   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  , cities, 
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  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  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  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  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  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  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
 
   (d) 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)  
   (e)  The consultation required pursuant to subdivision
 (a)   (d)  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)  
   (f)  On or before 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   identify permitting practices, 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)   .
   (g)  On or before  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)   (f)
 , together with detailed recommendations for establishing new,
 streamlined   improved  processes for
permitting petroleum infrastructure projects in California.  

   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.
   (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).
  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.   
   (h) (1) In taking an action under this section, the commission may
adopt rules and regulations as necessary to ensure that relevant
duties pursuant to this section are carried out.
   (2) 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.
   (i) For the purposes of this section, "petroleum infrastructure
projects" include marine terminals, port facilities, product storage
facilities, pipelines, land terminals, refinery projects, and related
kinds of facilities identified by the petroleum infrastructure
facilitator 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.
   (j) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2007, deletes or extends that
date.