BILL NUMBER: SB 1003 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 27, 2005
AMENDED IN SENATE APRIL 13, 2005
INTRODUCED BY Senator Escutia
FEBRUARY 22, 2005
An act to 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. 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.
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.
(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 6.5 (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 all costs of review
pursuant to this chapter .
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 Senate Bill 426 of the
2005-06 Regular Session is also enacted and becomes operative on or
before January 1, 2006.