BILL NUMBER: SB 1003 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 13, 2005
INTRODUCED BY Senator Escutia
FEBRUARY 22, 2005
An act to amend Section 25322 add Chapter
6.5 (commencing with Section 25570) to Division 15 of the
Public Resources Code, relating to the State Energy Resources
Conservation and Development Commission.
LEGISLATIVE COUNSEL'S DIGEST
SB 1003, as amended, Escutia. State Energy Resources
Conservation and Development Commission: reports: confidentiality
and disclosure. Energy resources: liquefied natural
gas terminals.
(1) Existing law, until January 1, 1988, authorized the Public
Utilities Commission to issue a permit for the construction and
operation of a liquefied natural gas terminal pursuant to a
prescribed permit procedure.
This bill would enact the Liquefied Natural Gas Evaluation and
Terminal Permitting Act. The bill would authorize the State Energy
Resources Conservation and Development Commission (energy commission)
to establish a permitting process for the construction and operation
of liquefied natural gas terminals, as defined.
The bill would provide that a permit may contain conditions
necessary or appropriate to ensure the public health, safety, and
welfare and other terms and conditions, as provided. The bill would
require the energy commission to adopt regulations governing the
safety and construction of a terminal, as provided.
(2) The bill would provide that it is
to become operative only if SB 426 of the 2005-06 Regular Session is
also enacted and becomes operative on or before January 1, 2006.
Existing law requires the State Energy Resources Conservation and
Development Commission to manage a data collection system for
obtaining information necessary to develop specified energy policy
reports and analyses and energy shortage contingency planning
efforts, and to support other duties of the commission, as
prescribed. Existing law requires that the data collection system
include specified requirements regarding the confidentiality of the
information collected by the commission. Subject to specified
confidentiality requirements, existing law authorizes the commission
to grant requests for disclosure of records of information collected
by the commission for the data collection system.
This bill would require the commission to grant a disclosure
request if disclosure will not result in an unfair competitive
disadvantage to the person who submitted the information, unless the
public interest served by not disclosing the information clearly
outweighs the public interest served by disclosing the information,
or unless another applicable provision of law exempts the information
from disclosure. The bill would exempt information withheld by the
commission from disclosure under the California Public Records Act.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25322 of the Public Resources Code is amended
to read:
SECTION 1. (a) The Legislature finds and declares all of the
following:
(1) Liquefied natural gas may need to be imported into this state
in order to meet consumer demand for natural gas at reasonable
prices, which would require the construction of one or more liquefied
natural gas terminals and associated infrastructure.
(2) Several liquefied natural gas terminals have been proposed to
serve natural gas consumers in this state.
(3) It is in the public interest for the state to conduct an
orderly and comprehensive public assessment of the impacts of the
construction and operation of liquefied natural gas terminals on the
economy, consumers, the environment, and public health and safety.
(4) Public assessment of these impacts is a matter of statewide
concern, and existing law reserves authority for that assessment to
the state.
(b) It is the intent of the Legislature, in enacting this act, to
establish clear statutory procedures by which the state may exercise
its duties and authority with respect to the assessment and
permitting of proposed liquefied natural gas terminals.
SEC. 2. Chapter 6.7 (commencing with Section 25570) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 6.5. LIQUEFIED NATURAL GAS EVALUATION AND TERMINAL
PERMITTING ACT
Article 1. General Provisions
25570. This chapter shall be known and may be cited as the
Liquefied Natural Gas Evaluation and Terminal Permitting Act.
25570.1. For purposes of this chapter, the following definitions
apply:
(a) "Feasible" means capable of being accomplished in a successful
manner within a reasonable period of time, taking into account all
of the following:
(1) Economic, environmental, social, technological, safety, and
reliability factors.
(2) Gas supply and demand forecasts.
(3) Alternative sources of natural gas.
(b) "Liquefied natural gas" or "LNG" means natural gas cooled to
minus 259 degrees fahrenheit so that it forms a liquid at
approximately atmospheric pressure.
(c) "Liquefied natural gas terminal," "terminal," or "LNG
terminal," means facilities designed to receive liquefied natural gas
from ocean-going vessels, including those facilities required for
storage and regasification of the liquefied natural gas and those
pipelines and facilities necessary for the transmission of the
regasified natural gas to the point of interconnection with existing
pipelines.
(d) "Local government" means a city, county, or city and county,
whether chartered or general law, and a district.
(e) "Offshore" means a location seaward of the mean high tide line
of mainland California, including all islands.
(f) "Onshore" means a location on the mainland of California
landward of the mean high tide line.
(g) "Permit" means the single authorization provided pursuant to
this chapter to construct and operate an LNG terminal in this state.
(h) "Person" means an individual, organization, partnership, or
other business association or corporation, the federal government,
the state government, any local government, and any agency or
instrumentality of any of those entities.
(i) "State government" means the State of California or an agency,
board, commission, or instrumentality thereof.
25570.2. A person shall not construct or operate an LNG terminal
without obtaining a permit pursuant to this chapter.
25570.3. The issuance of a permit by the commission shall be in
lieu of all other permits, licenses, certificates, or other
entitlements for use required by an agency of state or local
government for the construction or operation of an LNG terminal, to
the extent permitted by federal statute or regulation or a
federal-state agreement relating to water discharge permits. Also, to
the extent permitted by federal statute or regulation, the permit
shall also be in lieu of all other permits, licenses, certificates,
or other entitlements for use issued by an agency, department, or
instrumentality of the federal government.
25570.4. The commission shall charge each person who applies for
a permit pursuant to this chapter a fee, which shall be sufficient to
reimburse the commission for the costs incurred in processing the
application.
25570.5. All state agencies shall cooperate with and, at the
request of the commission, shall execute interagency agreements to
assist the commission in evaluating a site identified pursuant to
Article 2 (commencing with Section 25571). The costs incurred by a
state agency as the result of an interagency agreement shall be paid
by the commission and shall be reimbursed from fees collected
pursuant to Section 25570.4.
25570.6. If it is necessary to obtain a lease, easement, or other
interest in real property from the State Lands Commission in order
to construct and operate a terminal, the lease, easement, or other
interest shall be obtained from the State Lands Commission. The
Legislature finds and declares that leasing of state lands for the
purpose of constructing and operating a terminal approved pursuant to
this chapter is in the public interest; and that if that lease is
required to construct and operate a terminal, the State Lands
Commission shall enter into that lease.
25570.7. If any provision of this chapter or the application
thereof to any person or circumstances is held invalid, that
invalidity shall not affect other provisions or applications of this
chapter that can be given effect without the invalid provision or
application, and to this end the provisions of this chapter are
severable.
Article 3. Application for Permit
25572. The permit application shall contain the following
information:
(a) Information, including maps and pictorial and written
descriptions of present and proposed development for the site, and
relevant geological, archeological, aesthetic, ecological, and
seismic marine transport data.
(b) A detailed description of the proposed engineering design
features, proposed methods of construction, and proposed operating
procedures for the terminal, and the proposed plan for marine
operations, including shipping routes and control procedures.
(c) An analysis of accident possibilities, consequences, and risks
for the terminal.
(d) Information regarding safety and public protection features,
including fire protection measures, marine navigational systems,
emergency systems for shutting down the terminal, and other
contingency plans for accidents.
(e) Information regarding the cost of the terminal, fuel
consumption by operating terminal equipment, service life of the
terminal, and capacity of the terminal.
(f) Information regarding the source of liquefied natural gas,
including the contractual terms for the delivery of gas supplies.
(g) A description of all proposed or existing natural gas
transmission lines related to the proposed terminal, including a map,
in suitable scale, of the routing that shows details of the
right-of-way in the vicinity of populated or developed areas, parks,
and recreational areas; the justification for the route; and a
preliminary statement of the effect of any proposed natural gas
transmission line on the environment.
(h) A description of contingency plans for transmitting equivalent
volumes of natural gas in the event of both short- and long-term
interruptions of the LNG supply system for the proposed terminal.
(i) A description of the proposed method of financing the terminal
and analysis of the costs of the terminal on natural gas consumers
in this state.
(j) The result of the commission's ranking pursuant to Article 2
(commencing with Section 25571).
(k) Any other information that the applicant deems necessary or
desirable to support its application and better inform the commission
and the public.
25572.1. At any time after the filing of the application, the
commission may require the applicant to furnish additional, relevant
information as may be necessary to carry out the purposes of this
chapter.
Article 4. Permit to Construct and Operate an LNG Terminal
25576. The commission shall issue a decision on an application
for a permit to construct and operate an LNG terminal pursuant to
this article.
25576.1. (a) The commission shall not issue a permit for
construction and operation of a terminal at a site that is not
evaluated and ranked pursuant to Article 2 (commencing with Section
25571).
(b) If the commission issues a permit, the commission shall issue
a permit for construction and operation at the site designated as the
highest ranked site. However, the commission may select a lower
ranked site if it has determined with respect to each higher ranked
site that it is not feasible to complete construction and commence
operations of the terminal at the higher ranked site in sufficient
time to prevent significant curtailment of high priority requirements
for natural gas and that approval of the lower ranked site will
significantly reduce that curtailment.
25576.2. (a) The commission shall not issue a permit for
construction and operation at any site unless it finds that to do so
is consistent with the public health, safety, and welfare and may
impose any conditions on the issuance of a permit that may be
necessary or appropriate to ensure the public health, safety, and
welfare.
(b) Prior to issuing a permit for construction and operation at a
site, the commission shall review all comments on the site submitted
by the State Water Resources Control Board, a regional water board,
or a regional air district.
25576.3. If the commission issues a permit for construction and
operation, it shall impose as a condition of the permit each term and
condition recommended for the selected site pursuant to Article 2
(commencing with Section 25571), unless the commission first finds
with respect to each term or condition any of the following:
(a) Imposition of the term or condition will cause delays in
commencement of terminal operations that will result in significant
curtailment of high priority natural gas requirements and that
deletion or modification of the term or condition will avoid or
significantly reduce that curtailment.
(b) The report recommending the term or condition was not based on
substantial evidence, considering the record as a whole.
(c) Imposition of the term or condition will adversely affect
public health or safety.
25576.4. If the commission proposes to issue a permit for the
construction and operation of a terminal at a site not specified in
an application submitted pursuant to this chapter, the applicant may
amend an application to specify that other site.
25576.5. (a) For the purposes of this chapter, the commission
shall be the lead agency for the purpose of complying with Division
13 (commencing with Section 21000).
(b) In fulfilling its responsibilities pursuant to Division 13
(commencing with Section 21000), the commission may, upon payment of
appropriate consideration, become the successor in interest to any
local government or entity of state government that has any
outstanding contract that is germane to the commission's
responsibilities under this section.
25576.6. (a) Prior to issuance of a permit to construct and
operate a terminal, the commission shall hold at least one public
hearing in the city or county where the terminal is proposed to be
located.
(b) To the greatest extent possible, the commission shall
expeditiously provide information to that city or county and
cooperate with requests for information to enable the city or county
to develop and present recommendations in a timely fashion.
(c) The city or county within whose jurisdiction the terminal is
proposed to be located may hold public hearings on the proposed
terminal.
(d) The city or county may make appropriate recommendations to the
commission, including, but not limited to, recommendations regarding
safety, protection of the environment, and local land use.
25576.7. (a) The commission shall adopt regulations governing the
safety and construction of a terminal. In adopting these regulations
the commission shall consult with the Division of Industrial Safety
of the Department of Industrial Relations and with all other relevant
state or federal agencies, for the provision of information as the
commission may require.
(b) The commission shall establish a monitoring system to ensure
that a terminal authorized pursuant to this chapter is constructed
and operated in compliance with all applicable regulations adopted
and terms and conditions established pursuant to this chapter.
25576.8. The Public Utilities Commission shall monitor costs
incurred by a person or entity subject to its regulation in the
construction, or in the preparation for construction, of a terminal
subject to this chapter in order to determine if the costs are in the
best interests of the ratepayers. This monitoring may commence prior
to the issuance of a permit pursuant to this chapter.
25576.9. No provision of this article shall be construed to
abridge or limit in any manner the jurisdiction of the Division of
Industrial Safety of the Department of Industrial Relations conferred
pursuant to Division 5 (commencing with Section 6300) of the Labor
Code. Notwithstanding Section 7624 of the Labor Code, all matters
relating to LNG storage tanks shall be within the jurisdiction of the
Division of Industrial Safety, except for those provisions
pertaining to the issuance of permits.
SEC. 4. This act shall become operative only if SB 426 of the
2005-06 Regular Session is also enacted and becomes operative on or
before January 1, 2006.
25322. (a) The data collection system managed pursuant to Section
25320 shall include the following requirements regarding the
confidentiality of the information collected by the commission:
(1) A person required to present information to the commission
pursuant to this section may request that specific information be
held in confidence. The commission shall grant the request in the
following circumstances:
(A) The information is exempt from disclosure under the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code.
(B) The information satisfies the confidentiality requirements of
Article 2 (commencing with Section 2501) of Chapter 7 of Division 2
of Title 20 of the California Code of Regulations, as those
regulations existed on January 1, 2002.
(C) On the facts of the particular case, the public interest
served by not disclosing the information clearly outweighs the public
interest served by disclosure of the information.
(2) The commission may, by regulation, designate certain
categories of information as confidential, which removes the
obligation to request confidentiality for that information.
(3) Confidential information pertinent to the responsibilities of
the commission specified in this chapter that is obtained by another
state agency, or the California Independent System Operator or its
successor, shall be available to the commission and shall be treated
in a confidential manner.
(4) Information presented to or developed by the commission and
deemed confidential pursuant to this section shall be held in
confidence by the commission. Confidential information shall be
aggregated or masked to the extent necessary to assure
confidentiality if public disclosure of the specific information
would result in an unfair competitive disadvantage to the person
supplying the information.
(b) Requests for records of information shall be handled as
follows:
(1) If the commission receives a written request to publicly
disclose information that is being held in confidence pursuant to
paragraph (1) or (2) of subdivision (a), the commission shall provide
the person making the request with written justification for the
confidential designation and a description of the process to seek
disclosure.
(2) If the commission receives a written request to publicly
disclose a disaggregated or unmasked record of information designated
as confidential under paragraph (1) or (2) of subdivision (a),
notice of the request shall be provided to the person who submitted
the record. Upon receipt of the notice, the person who submitted the
record may, within five working days of receipt of the notice,
provide a written justification of the claim of confidentiality.
(3) The commission or its designee shall rule on a request made
pursuant to paragraph (2) on or before 20 working days after its
receipt. The commission shall deny the request if the disclosure will
result in an unfair competitive disadvantage to the person who
submitted the information. If disclosure will not result in an unfair
competitive disadvantage to the person who submitted the
information, the commission shall grant the request unless the public
interest served by not disclosing the information clearly outweighs
the public interest served by disclosing the information, or unless
another applicable provision of law exempts the information from
disclosure.
(4) If the commission grants the request pursuant to paragraph
(3), it shall withhold disclosure for a reasonable amount of time,
not to exceed 14 working days, to allow the submitter of the
information to seek judicial review.
(c) Information submitted to the commission pursuant to this
section is not confidential if the person submitting the information
has made it public.
(d) The commission shall establish, maintain, and use appropriate
security practices and procedures to ensure that the information it
has designated as confidential, or received with a confidential
designation from another government agency, is protected against
disclosure other than that authorized using the procedures in
subdivision (b). The commission shall incorporate the following
elements into its security practices and procedures:
(1) Commission employees shall sign a confidential data disclosure
agreement providing for various remedies, including, but not limited
to, fines and termination for wrongful disclosure of confidential
information.
(2) Commission employees, or contract employees of the commission,
shall only have access to confidential information when it is
appropriate to their job assignments and if they have signed a
nondisclosure agreement.
(3) Computer data systems that hold confidential information shall
include sufficient security measures to protect the data from
inadvertent or wrongful access by unauthorized commission employees
and the public.
(e) Data collected by the commission on petroleum fuels in Section
25320 shall be subject to the confidentiality provisions of Sections
25364 to 25366, inclusive.
(f) Information withheld by the commission pursuant to this
section is not subject to disclosure under the Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code.