(a) For purposes of this chapter, "commission-regulated gas
pipeline facility" has the same meaning as defined in Section 950.
(b) With priority given to safety, reliability, and affordability
of service, the commission shall adopt rules and procedures governing
the operation, maintenance, repair, and replacement of those
commission-regulated gas pipeline facilities that are intrastate
transmission and distribution lines, as described in paragraphs (1)
and (2) of subdivision (a) of Section 950, to achieve both of the
following:
(1) Minimize leaks as a hazard to be mitigated pursuant to
paragraph (1) of subdivision (d) of Section 961, consistent with the
requirements of Section 192.703(c) of Subpart M of Title 49 of the
Code of Federal Regulations, the commission's General Order 112-E,
and their successors.
(2) While giving due consideration to the cost considerations of
Section 977, reduce emissions of natural gas from those
commission-regulated gas pipeline facilities that are intrastate
transmission and distribution lines to the maximum extent feasible in
order to advance the state's goals in reducing emissions of
greenhouse gases pursuant to the California Global Warming Solutions
Act of 2006 (Division 25.5 (commencing with Section 38500) of the
Health and Safety Code).
(c) As soon as practicable, the commission shall require gas
corporations to file a report that includes, but is not limited to,
all of the following:
(1) A summary of utility leak management practices.
(2) A list of new methane leaks in 2013 by grade.
(3) A list of open leaks that are being monitored or are scheduled
to be repaired.
(4) A best estimate of gas loss due to leaks.
(d) Not later than January 15, 2015, the commission, in
consultation with the State Air Resources Board, shall commence a
proceeding to adopt rules and procedures for those
commission-regulated pipeline facilities that are intrastate
transmission and distribution lines, as respectively described in
paragraphs (1) and (2) of subdivision (a) of Section 950, to achieve
the goals of subdivision (b).
(e) The rules and procedures adopted pursuant to subdivision (d)
shall accomplish all of the following:
(1) Provide for the maximum technologically feasible and
cost-effective avoidance, reduction, and repair of leaks and leaking
components in those commission-regulated gas pipeline facilities that
are intrastate transmission and distribution lines within a
reasonable time after discovery, consistent with the California
Global Warming Solutions Act of 2006 (Division 25.5 (commencing with
Section 38500) of the Health and Safety Code) to achieve the goals in
subdivision (b).
(2) Provide for the repair of leaks as soon as reasonably possible
after discovery, consistent with established safety requirements and
the goals of reducing air pollution and the climate change impacts
of methane emissions.
(3) Evaluate the operations, maintenance, and repair practices of
those commission-regulated gas pipeline facilities that are
intrastate transmission and distribution lines to determine whether
existing practices are effective at reducing methane leaks and
promoting public safety, consistent with Section 961, achieve the
goals of subdivision (b), and whether alternative practices may be
more effective at achieving the goals of subdivision (b).
(4) Establish and require the use of best practices for leak
surveys, patrols, leak survey technology, leak prevention, and leak
reduction. The commission shall consider in the development of best
practices the quality of materials and equipment. Collected leak data
shall remain the property of the utility and shall be available to
the commission and parties in commission proceedings as determined by
the commission or specified by statute.
(5) Establish protocols and procedures for the development and use
of metrics to quantify the volume of emissions from leaking gas
pipeline facilities, and for evaluating and tracking leaks
geographically and over time, that may be incorporated into the plans
required by Section 961, or into other state emissions tracking
systems, or both, including the regulations for the reporting of
greenhouse gases of the State Air Resources Board. The quantification
of emissions shall provide operators, the commission, and the public
with accurate information about the number and severity of leaks and
about the quantity of natural gas that is emitted into the
atmosphere over time.
(6) To the extent feasible, require the owner of each
commission-regulated gas pipeline facility that is an intrastate
transmission or distribution line to calculate and report to the
commission and the State Air Resources Board a baseline systemwide
leak rate, along with any data and computer models used in making
that calculation, to periodically update that systemwide leak rate
calculation, and to annually report on measures that will be taken in
the following year to reduce the systemwide leak rate to achieve the
goals of subdivision (b).
(f) The rules and procedures, including best practices and repair
standards, shall be incorporated into the safety plans required by
Section 961 and the applicable general orders adopted by the
commission.
(g) Consistent with subdivision (e) of Section 961, the commission
shall facilitate robust ongoing participation of the workforce of
gas corporations and those state and federal entities that have
regulatory roles of relevance in all aspects of the proceeding to
ensure that the rules and procedures it adopts are not inconsistent
with the regulations and procedures adopted by those agencies.
Nothing in this section affects the commission's authority to
determine eligibility for intervenor compensation.
(h) Nothing in this article shall affect or shall be interpreted
to affect the existing authority of the State Air Resources Board to
adopt rules and regulations to achieve the maximum technologically
feasible and cost-effective greenhouse gas emission reductions and to
maintain and continue emission reductions under the California
Global Warming Solutions Act of 2006 (Division 25.5 (commencing with
Section 38500) of the Health and Safety Code).
In order to achieve transparency and accountability for rate
revenues and best value for ratepayers, and consistent with the
commission's existing ratemaking procedures and authority to
establish just and reasonable rates, the commission shall consider
all of the following:
(a) Providing an adequate workforce to achieve the objectives of
reducing hazards and emissions from leaks, including leak avoidance,
reduction, and repair.
(b) Providing revenues for all activities identified and required
pursuant to Section 975, including any adjustment of allowance for
lost and unaccounted for gas related to actual leakage volumes.
(c) Providing guidance for treatment of expenditures as being
either an item of expense or a capital investment.
(d) The impact on affordability of gas service for vulnerable
customers as a result of the incremental costs of compliance with the
adopted rules and procedures.