SB 804: Hydrogen Pipeline Safety Act.

51018.6.

(a) The State Fire Marshal shall adopt regulations for conducting enforcement proceedings pursuant to this section. These regulations shall include provisions for the service and the content of the notice of probable violation, response options, conduct of hearings, issuing of the final order, amended final order, and petitions for reconsideration and compromise of penalties, and shall be consistent with the procedures specified in Subpart B (commencing with Section 190.201) of Part 190 of Title 49 of the Code of Federal Regulations.

(b) If the State Fire Marshal determines, pursuant to the regulations adopted pursuant to subdivision (a), that a person has violated this chapter or any regulation adopted pursuant thereto, that person is subject to a civil penalty not to exceed the amount specified in Section 190.223(a) of Title 49 of the Code of Federal Regulations.

(c) The amount of the penalty shall be assessed by the State Fire Marshal pursuant to the regulations adopted pursuant to subdivision (a). In determining the amount of the penalty, the State Fire Marshal shall consider the nature, circumstances, and gravity of the violation and, with respect to the person found to have committed the violation, the degree of culpability, any history of prior violations, the effect on ability to continue to do business, any good faith attempts to achieve compliance, ability to pay the penalty, and any other matters as justice may require.

(d) A civil penalty assessed under subdivision (b) may be recovered in an action brought by the Attorney General on behalf of the state. Before referring the penalty action to the Attorney General, the State Fire Marshal may accept an offer to compromise the amount of the assessed penalty pursuant to the regulations adopted pursuant to subdivision (a).

(e) The State Fire Marshal shall deposit all civil penalties assessed pursuant to this section into the Local Training Account in the California Pipeline Safety Fund. The money in the Local Training Account is available, upon appropriation by the Legislature, to the State Fire Marshal, who shall use the money for providing hazardous liquid fire suppression training or first responder training for hazardous gas response and suppression to local fire departments.

51019.

The State Fire Marshal may assess and collect from every pipeline operator and every hydrogen pipeline operator an annual fee for the purpose of carrying out this chapter and Chapter 5.6 (commencing with Section 51020). The State Fire Marshal may assess this fee for expenses that will be incurred during the following year. A pipeline operator and hydrogen pipeline operator shall pay this fee when billed by the State Fire Marshal. The State Fire Marshal may impose a delinquency fee of 10 percent of the annual fee if the pipeline operator or hydrogen pipeline operator does not pay the fee within 60 days after receipt of the bill, and, in addition, the pipeline operator or hydrogen pipeline operator shall pay interest on that portion of its annual fee not paid within 60 days at the rate of 15 percent per annum from the date of receipt of the bill until paid. The total amount of the fee collected shall not exceed the actual expenses incurred, or the estimated expenses that will be incurred, by the State Fire Marshal in carrying out this chapter and Chapter 5.6 (commencing with Section 51020).

51019.1.

(a) There is hereby created the California Pipeline Safety Fund, consisting of the Local Training Account and the Pipeline Operations Account.

(b) All fees collected pursuant to Sections 51019 and 51019.05 shall be deposited into the Pipeline Operations Account. The money in the account is available, upon appropriation by the Legislature, to the State Fire Marshal for the purpose of carrying out this chapter and Chapter 5.6 (commencing with Section 51020).

51020.

This chapter shall be known, and may be cited, as the Hydrogen Pipeline Safety Act.

51020.02.

For purposes of this chapter, the following definitions apply:

(a) “Continuous measurement and monitoring system” means a set of integrated tools and technologies designed to continuously assess the operational status of a hydrogen pipeline that is capable of detecting leaks, enables prompt automated or manual corrective actions to prevent or limit a hydrogen release into the atmosphere, and supports pipeline safety, emergency response, and efficiency.

(b) (1) “Hydrogen pipeline” means a dedicated transmission pipeline, including all pressure stations and valves that allow for safe pressuring and operations, for the purpose of transporting hydrogen gas. “Hydrogen pipeline” includes every intrastate transmission pipeline used solely for the transportation of hydrogen.

(2) “Hydrogen pipeline” does not include either of the following:

(A) A pipeline for the transportation of hydrogen through an onshore production, refining, or manufacturing facility, including a storage or in-plant piping system associated with that facility. For purposes of this subparagraph, “production facility” means piping or equipment used in the production, extraction, recovery, lifting, stabilization, separation, or treatment of gas or associated storage or measurement.

(B) Transportation of hydrogen by vessel, aircraft, tank truck, tank car, or other vehicle or terminal facilities used exclusively to transfer hydrogen between those modes of transportation.

51020.04.

(a) The State Fire Marshal shall adopt, by July 1, 2028, in regulation hydrogen pipeline safety standards in compliance with the federal law relating to hydrogen pipeline safety, including, but not limited to, compliance orders, penalties, and inspection and maintenance provisions, and including amendments to those laws and regulations that may be hereafter enacted and adopted.

(b) The State Fire Marshal may exempt the application of regulations adopted pursuant to this section to any hydrogen pipeline, or portion thereof, when the State Fire Marshal determines that the risk to public safety is slight and the probability of injury or damage remote.

(c) Notification of exemptions shall be written, and shall include a discussion of those factors that the State Fire Marshal considers significant to the granting of the exemption.

51020.05.

The State Fire Marshal shall adopt, by July 1, 2028, in regulation a percentage of hydrogen gas by volume carried in a hydrogen pipeline for the purpose of identifying hydrogen pipelines. A percentage adopted by the State Fire Marshal for this purpose shall exceed 90 percent.

51020.055.

(a) On or before March 1, 2028, the Public Utilities Commission shall develop and submit to the Legislature a report with recommendations for the appropriate safety regulatory framework and division of jurisdictional responsibility applicable to pipelines carrying blends of hydrogen below the percentage threshold adopted pursuant to Section 51020.05, including those pipelines blending hydrogen with natural gas. The Public Utilities Commission may consult the State Fire Marshal in developing these recommendations.

(b) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795.

(c) Pursuant to Section 10231.5, this section is repealed on January 1, 2031.

51020.06.

(a) On or before July 1, 2028, all hydrogen pipeline operators with pipelines constructed before the effective date of the hydrogen pipeline safety standards established by the State Fire Marshal pursuant to Section 51020.04 shall file with the State Fire Marshal an assessment for inspection, maintenance, improvement, or replacement, as applicable, for those hydrogen pipelines. The assessment shall also provide information documenting any prior releases and subsequent investigation and cause of the hydrogen pipeline release. The assessment shall cover all applicable hydrogen requirements found in Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code and Title 49 of the Code of Federal Regulations.

(b) Any repairs to hydrogen pipelines constructed before the effective date of the hydrogen pipeline safety standards established by the State Fire Marshal pursuant to Section 51020.04 that can accommodate instrumented internal inspection devices shall be done in a manner that will not interfere with the passage of these devices.

51020.08.

(a) The Office of the State Fire Marshal shall require hydrogen pipelines to be compliant with Part 191 (commencing with Section 191.1) and Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations. Hydrogen pipelines that are constructed on or after July 1, 2028, shall also meet all of the following requirements:

(1) Be designed and constructed to minimize hydrogen leakage to the lowest technically feasible level, as determined by the State Fire Marshal.

(2) Be designed of materials chemically compatible with hydrogen, including having resistance to hydrogen-induced degradation such as corrosion or embrittlement, and be consistent with any additional material specifications, as determined by the State Fire Marshal.

(3) Employ continuous measurement and monitoring systems to detect deviations from normal operational parameters.

(4) Be constructed of new materials that have not previously been used in a hydrogen pipeline or for any other application, except upon a determination by the State Fire Marshal pursuant to subdivision (c).

(5) Be designed to accommodate the passage of instrumented internal inspection devices and to incorporate an alternative leak detection and integrity monitoring system approved by the State Fire Marshal that provides equivalent or superior protection of public safety, and have leak mitigation and emergency response plans, and any other equipment as the State Fire Marshal may require.

(b) The State Fire Marshal may establish in regulation hydrogen pipeline safety standards for hydrogen pipelines that have been constructed on or after July 1, 2028, that exceed the requirements of subdivision (a). The State Fire Marshal shall ensure alignment of standards, and periodically review and update through regulation the hydrogen pipeline safety standards, incorporating technological advancements and industry best practices.

(c) (1) In accordance with federal regulations adopted by the federal Pipeline and Hazardous Materials Safety Administration, the Office of the State Fire Marshal may determine whether a pipeline that is constructed before July 1, 2028, may be safely retrofitted for service as a hydrogen pipeline.

(2) The State Fire Marshal may adopt regulations to allow for the use of new technology, including, but not limited to, technology related to retrofitted pipelines.

51020.10.

(a) The owner of a hydrogen pipeline shall maintain accurate operational records of hydrogen concentration levels within the hydrogen pipeline and any confirmed instances of leakages of hydrogen.

(b) On or before March 30 of each year, the owner of a hydrogen pipeline shall submit a report to the Office of the State Fire Marshal detailing its compliance with subdivision (a) for the previous calendar year.

51020.12.

(a) Every hydrogen pipeline, including any part of a hydrogen pipeline system that has been relocated or replaced, shall be pressure tested in accordance with Subpart J (commencing with Section 192.501) of Part 192 of Title 49 of the Code of Federal Regulations.

(b) In addition to the requirements of subdivision (a), the State Fire Marshal may require any hydrogen pipeline subject to this chapter to be subjected to a pressure test, or any other test or inspection, at any time, in the interest of public safety.

(c) (1) Test methods other than tests required by subdivision (a) may be approved by the State Fire Marshal on an individual basis. If the State Fire Marshal approves an alternative to a pressure test in an individual case, the State Fire Marshal may require that the alternative test be given more frequently than the testing frequencies specified in subdivision (a).

(2) If an operator requests an alternative to a pressure test and it is not approved, a pressure test shall be carried out at the time the alternative test would have been carried out. Subsequent tests shall be carried out in accordance with the time intervals prescribed by subdivision (a).

(d) The State Fire Marshal shall adopt regulations by July 1, 2028, to establish what the State Fire Marshal deems to be an appropriate frequency for tests and inspections, including instrumented internal inspections and pressure tests. Each time an operator requests an alternative test to those required in the regulations, the alternative test shall be approved or not approved on the same individual basis as under subdivision (c).

51020.14.

(a) A hydrogen pipeline operator shall notify the State Fire Marshal and the local fire department having fire suppression responsibilities at least three working days before conducting a pressure test that is required pursuant to this chapter. The notification shall include all of the following information:

(1) The name, address, and telephone number of the hydrogen pipeline operator.

(2) The specific location of the hydrogen pipeline section to be tested and the location of the test equipment.

(3) The date and time the test is to be conducted.

(4) An invitation and a telephone number for local fire departments to call for further information on what they should do in the event of a leak during testing.

(5) The test medium.

(6) The name and telephone number of the independent testing firm or person responsible for certification of the test results.

(b) The State Fire Marshal may observe any test conducted pursuant to this chapter.

51020.16.

(a) When pressure testing is required by Section 51020.12, the test results shall be certified by an independent testing firm or person who is selected from a list, provided by the State Fire Marshal, of independent testing firms or persons approved annually by the State Fire Marshal. The State Fire Marshal may charge a fee for consideration and approval of an independent testing firm or person pursuant to this subdivision, not to exceed the reasonable costs of that consideration and approval.

(b) The results of the tests required by Section 51020.12 shall be submitted by the independent testing firm or person within 30 days after completion of the test to the State Fire Marshal, who may review the results. The report shall show all of the following information:

(1) The date of the test.

(2) A description of the hydrogen pipeline tested, including a map of suitable scale showing the route of the hydrogen pipeline.

(3) The results of the test.

(4) Any other test information that may be specifically requested by the State Fire Marshal.

(c) The State Fire Marshal shall not supervise, control, or otherwise direct the testing.

51020.18.

(a) No person, other than the hydrogen pipeline operator, shall do either of the following with respect to any hydrogen pipeline easement:

(1) Build, erect, or create a structure or improvement within the hydrogen pipeline easement or permit that building, erection, or creation.

(2) Build, erect, or create a structure, fence, wall, or obstruction adjacent to any hydrogen pipeline easement that would prevent complete and unimpaired surface access to the easement or to any fixed leak detection, monitoring, or remote-sensing equipment installed by the operator within or adjacent to the easement, or permit that building, erection, or creation.

(b) No shrubbery or shielding shall be installed on the hydrogen pipeline easement that would impair aerial or other remote observation of the hydrogen pipeline easement. This subdivision does not prevent the revegetation of any landscape disturbed within a hydrogen pipeline easement as a result of constructing the hydrogen pipeline and does not prevent the holder of the underlying fee interest or the holder’s tenant from planting and harvesting seasonal agricultural crops on a hydrogen pipeline easement.

(c) The State Fire Marshal may adopt regulations for the implementation of this section.

51020.20.

(a) A hydrogen pipeline operator shall provide to the fire department having fire suppression responsibilities a map or suitable diagram showing the location of the hydrogen pipeline, a description of all products transported within the hydrogen pipeline, safety data sheets, and a contingency plan for hydrogen pipeline emergencies that shall include, but not be limited to, any reasonable information that the State Fire Marshal may require.

(b) The State Fire Marshal, for purposes of carrying out the requirements of state and federal law relating to hydrogen pipeline safety, including, but not limited to, developing or assisting in the development of hydrogen pipeline standards or regulations, determining compliance with this chapter, or carrying out any requirement of this chapter, may require the owner or operator of a hydrogen pipeline to do all of the following:

(1) Establish and maintain maps and records, as specified by the State Fire Marshal.

(2) Make reports pursuant to methods and in a manner specified by the State Fire Marshal.

(3) Provide any information that the State Fire Marshal may reasonably require, including, but not limited to, maps, written procedures, incident reporting, or information on design, construction, testing, qualification of personnel, integrity management program, or operation and maintenance.

(c) The State Fire Marshal, or an officer or employee authorized by the State Fire Marshal, at any reasonable time, upon presentation of credentials, shall have a right of entry to, upon, or through any premises on which records, reports, or any other information required to be maintained pursuant to this chapter are located and may access and copy those records, reports, or other information.

(d) The State Fire Marshal may disclose records, reports, or other information required to be maintained pursuant to this chapter to an officer, employee, or authorized representative of the state or the United States for purposes of carrying out the requirements of this chapter or Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code, or when relevant to a proceeding pursuant to this chapter.

(e) A hydrogen pipeline operator shall offer to meet with the local fire department having fire suppression responsibilities at a frequency that the State Fire Marshal adopts through regulation to discuss and review contingency plans for hydrogen pipeline emergencies.

51020.22.

(a) The State Fire Marshal shall establish and maintain a centralized database containing information and data regarding intrastate hydrogen pipelines.

(b) The database shall include, but is not limited to, an inventory of the hydrogen pipelines described in subdivision (a), including hydrogen pipeline locations, ownership, ages, and inspection histories, that are in the possession of the owner or operator of the hydrogen pipeline or facility.

(c) The State Fire Marshal shall regularly update the database and shall make the information in the database available to the public, and to all local, state, and federal agencies.

(d) A state or local governmental agency that regulates, supervises, or exerts authority over a hydrogen pipeline described in subdivision (a) shall report any information or data specified in subdivision (b) in its possession to the State Fire Marshal. That information shall be submitted to the State Fire Marshal in a computer compatible format.

51020.24.

(a) Commencing January 1, 2027, the State Fire Marshal, or an officer or employee authorized by the State Fire Marshal, shall annually inspect all intrastate hydrogen pipelines and operators of intrastate hydrogen pipelines under the jurisdiction of the State Fire Marshal to ensure compliance with applicable laws and regulations. By July 1, 2028, the State Fire Marshal shall adopt regulations implementing this subdivision.

(b) For portions of interstate hydrogen pipelines that are not under the jurisdiction of the State Fire Marshal, the State Fire Marshal shall not become an inspection agent for those hydrogen pipelines unless all regulatory and inspection authority over those hydrogen pipelines is transferred to the State Fire Marshal from the federal Pipeline and Hazardous Materials Safety Administration.

(c) The State Fire Marshal may revise the fee assessed pursuant to Section 51019 to a level sufficient to cover the costs associated with the implementation of this section.

51020.26.

(a) In the event of an intrastate hydrogen pipeline rupture, leak, or other incident that could affect safe hydrogen pipeline operation, any person who performs or intends to perform nonemergency site cleanup, repair, reconstruction, or any other alteration shall obtain prior approval from the State Fire Marshal.

(b) Approval by the State Fire Marshal of a repair plan, submitted by a hydrogen pipeline operator in conformance with contingency plan requirements established by the State Fire Marshal, shall constitute prior approval to perform repairs as specified in subdivision (a).

(c) The State Fire Marshal may adopt regulations to implement subdivisions (a) and (b).

51020.28.

The State Fire Marshal shall incorporate data from hydrogen pipeline operators into the database described in Section 51017. The data shall be used for emergency response and program operational purposes. The database shall include information on hydrogen pipeline location, age, reported leak incidences, and inspection history, and shall have the capability of mapping hydrogen pipeline locations throughout the state. The data collection format shall be compatible with any hydrogen pipeline mapping project implemented by the United States Department of Transportation’s Office of Pipeline Safety and shall be compatible with GIS mapping and data management in use by the State Fire Marshal.

51020.30.

(a) Every rupture, explosion, or fire involving a hydrogen pipeline, including a hydrogen pipeline undergoing testing, shall be immediately reported by the pipeline operator to the fire department having fire suppression responsibilities and to the Office of Emergency Services.

(b) (1) The Office of Emergency Services shall immediately notify the State Fire Marshal of the incident, who shall immediately dispatch State Fire Marshal employees to the scene. The State Fire Marshal or the employees, upon arrival, shall provide technical expertise and advise the operator and all public agencies on activities needed to mitigate the hazard.

(2) For purposes of this subdivision, the Legislature does not intend to hinder or disrupt the workings of the “incident commander system,” but does intend to establish a recognized element of expertise and direction for the incident command to consult and acknowledge as an authority on the subject of hydrogen pipeline incident mitigation. Furthermore, it is expected that the State Fire Marshal will recognize the expertise of the hydrogen pipeline operator and any other emergency agency personnel who may be familiar with the particular location of the incident and respect their knowledgeable input regarding the mitigation of the incident.

(c) For purposes of this section and Sections 51020.26 and 51020.38, “rupture” includes every unintentional leak, including any leak that occurs during pressure testing.

(d) This section does not preempt any other applicable federal or state reporting requirement.

51020.32.

(a) The State Fire Marshal shall adopt regulations that are consistent with the regulations adopted pursuant to Section 51018.6, for conducting enforcement proceedings that include provisions for the service and the content of the notice of probable violation, response options, conduct of hearings, issuing of the final order, amended final order, and petitions for reconsideration and compromise of penalties consistent with the procedures specified in Subpart B (commencing with Section 190.201) of Part 190 of Title 49 of the Code of Federal Regulations.

(b) If the State Fire Marshal determines, pursuant to the regulations adopted pursuant to subdivision (a), that a person has violated this chapter or any regulation adopted pursuant thereto, that person is subject to a civil penalty not to exceed the amount specified in Section 190.223(a) of Title 49 of the Code of Federal Regulations.

(c) The amount of the penalty shall be assessed by the State Fire Marshal pursuant to the regulations adopted pursuant to subdivision (a). In determining the amount of the penalty, the State Fire Marshal shall consider the nature, circumstances, and gravity of the violation and, with respect to the person found to have committed the violation, the degree of culpability, any history of prior violations, the effect on ability to continue to do business, any good faith attempts to achieve compliance, ability to pay the penalty, and any other matters as justice may require.

(d) A civil penalty assessed under subdivision (b) may be recovered in an action brought by the Attorney General on behalf of the state. Before referring the penalty action to the Attorney General, the State Fire Marshal may accept an offer to compromise the amount of the assessed penalty pursuant to the regulations adopted pursuant to subdivision (a).

(e) The State Fire Marshal shall deposit all civil penalties assessed pursuant to this section into the Local Training Account in the California Pipeline Safety Fund created pursuant to Section 51019.1. The moneys in the Local Training Account are available, upon appropriation by the Legislature, to the State Fire Marshal, who shall use the moneys for providing hazardous liquid fire suppression training, consistent with Section 51018.6, and for hydrogen fire suppression training to local fire departments.

51020.34.

(a) Any person who willfully and knowingly violates any provision of this chapter or a regulation issued pursuant thereto shall, upon conviction, be subject, for each offense, to a fine of not more than twenty-five thousand dollars ($25,000), imprisonment in a county jail for not more than one year, imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment.

(b) Any person who willfully and knowingly defaces, damages, removes, or destroys any hydrogen pipeline sign or right-of-way marker required by federal or state law or regulation shall, upon conviction, be subject, for each offense, to a fine of not more than five thousand dollars ($5,000), imprisonment in a county jail for not more than one year, or by both that fine and imprisonment.

51020.36.

The State Fire Marshal may issue orders directing compliance with this chapter or any regulations adopted pursuant thereto. The State Fire Marshal shall specify in the order the particular action which is required of the person issued the order.

51020.38.

For a hydrogen pipeline, all of the following shall apply:

(a) The State Fire Marshal may order a hydrogen pipeline shutdown for violations of state or federal law or regulations, or if continued hydrogen pipeline operations present an immediate danger to health, welfare, or the environment.

(b) In the event of a hydrogen pipeline rupture, the hydrogen pipeline shall remain out of operation until an investigation into the hydrogen pipeline rupture is completed and determines the origin and cause of the hydrogen pipeline rupture.

(c) The State Fire Marshal, in consultation with appropriate local, state, and federal agencies, shall determine if or when a hydrogen pipeline may resume operations.

51020.44.

The State Fire Marshal may pursue certification under Section 60105 of Title 49 of the United States Code and seek to enter into an agreement, pursuant to Section 60106 of Title 49 of the United States Code, with the federal Pipeline and Hazardous Materials Safety Administration to expand its pipeline safety oversight to include hydrogen pipelines.

51020.46.

This chapter does not limit the authority of the Public Utilities Commission to regulate the rates, services, or safety practices of a public utility subject to its jurisdiction pursuant to Section 216 of the Public Utilities Code. If there is a conflict between a provision of this chapter and a provision adopted by the commission, the more protective provision shall apply.