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New and Proposed Pipeline Safety Regulatory Changes in California

New and Proposed Pipeline Safety Regulatory Changes in California. August 21, 2012 Western Regional Gas Conference Paul Gustilo Southwest Gas Corporation. Outline. Driving forces Changes in effect today Changes in the pipeline

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New and Proposed Pipeline Safety Regulatory Changes in California

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  1. New and Proposed Pipeline Safety Regulatory Changes in California August 21, 2012 Western Regional Gas Conference Paul Gustilo Southwest Gas Corporation

  2. Outline • Driving forces • Changes in effect today • Changes in the pipeline • California Public Utilities Commission (CPUC) organizational changes

  3. Driving Forces • NTSB/PHMSA Investigations • CPUC Independent Panel Review • Public Awareness

  4. Who is Affected? California Companies and Mileage Source: PHMSA 2011 Annual reports

  5. Key Changes in Effect Now • Elimination of grandfather clause for transmission Historical Operating Pressure • Tougher enforcement

  6. Key Changes in Effect Now • New pipeline safety plan • Management and financial audits

  7. Elimination of Grandfather Clause (and more) Rulemaking R.11-02-019 (June 2011) • Pressure test required for all transmission pipe • Remote Control Valves/Automatic Shut-off Valves must be considered

  8. Elimination of Grandfather Clause (and more) Rulemaking R.11-02-019 (June 2011) • Modifications to accommodate in-line inspection devices must be considered • Operators had to submit a plan in August 2011 addressing requirements

  9. Enforcement - Prior to 2010 Caption from Figure 16 from the CPUC Independent Panel Report, June 2011 Statistics are from the period from 2001-2009 and were derived from PHMSA data.

  10. Enforcement Today (ALJ-274) • Resolution approved in December 2011 • Gives Consumer Protection and Safety Division (CPSD) direct authority • Increased fines from $20,000 - $50,000 per violation • Encourages self reporting • Establishes process for citations

  11. Enforcement Today (ALJ-274) Citation Process ALJ Schedules Hearing Citation Received (fine issued) w/in 10 days ALJ Issues Draft Resolution to Commission Correct Violation or Submit Appeal w/in 60 days Include Compliance Plan signed by CEO Notify Local Officials

  12. Enforcement Today Inspections and Investigations • More of them • More in-depth • More questions

  13. New Safety Plan R.11-02-019 (April 2012) • “…each gas corporation to develop and implement a plan for the safe and reliable operation of its gas pipeline facilities, and the Commission to accept, modify, or reject the plan by year-end 2012.”

  14. New Safety Plan R.11-02-019 (April 2012) • “provide opportunities for meaningful, substantial, and ongoing participation by the gas corporation workforce in the development and implementation of the plan.”

  15. Management Audits • “Section 961(e) sets creating a “culture of safety” as an objective of the Commission’s regulation of California natural gas systems operators.” • “To evaluate whether California’s natural gas system operators have established a “culture of safety,” we must start with executive management.”

  16. Financial Audits • “We also order financial audits which include, but will not be limited to, comparing the authorized gas safety expenditures and capital investments to actual recorded amounts, and the rationale for any deviations.”

  17. In the Pipeline • Damage prevention enforcement (AB 1514) • Emergency response standards (SB 44) • Master meter systems (R.11-02-018) • Access to safety records (ALJ-436) • Whistleblower protection (R.11-02-019)

  18. CPUC Organizational Changes Commissioners Executive Director Risk Assessment Unit Consumer Protection and Safety Division (CPSD) Consumer Protection and Reliability Electric Generation Rail Transit and Crossing Safety Branch Railroad Operations Safety Branch Electric Safety & Reliability Program Gas Safety & Reliability Program South Office (Los Angeles) North Offices (San Francisco & Sacramento)

  19. Top 17 Potential Hazards • Susceptibility of older plastic pipe to premature brittle-like cracking • Grandfathering provisions in 49 CFR Part 192 • Excavation damage (AB 1514) • Location and specification of pipe in the ground • Unmonitored class location change

  20. Top 17 Potential Hazards • Aging infrastructure and interacting threats • Infrastructure, maintenance, and parts • Utility resource management and workforce development • Gas leak identification and response • Pipe with characteristics susceptible to failure • Protection redundancy.

  21. Top 17 Potential Hazards • Accommodating in-line inspection tools (smart pigs) • Utility management deficiencies (safety first culture) • RCVs/ASVs • Customer-owned or operated lines • Master-metered systems not in mobile home parks • Inadequate regulations

  22. Summary • More regulations • More inspection and investigations • More enforcement actions • More to come

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