Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection, consisting of various boards, offices, and departments, and vests the agency with authority over various environmental matters.

This bill would provide for the California Environmental Protection Agency, in consultation with specified federal, state, and local agencies, to examine ways to improve public and worker safety through enhanced oversight of refineries and to strengthen emergency preparedness in anticipation of any future refinery incident. The bill would require the California Environmental Protection Agency, in consultation with those agencies, to facilitate coordination among those agencies to protect the public, fence line communities, and refinery workers from risks associated with refinery operations throughout the state. The bill would require the California Environmental Protection Agency to hold at least 2 public meetings a year, as specified, to provide members of the public with current information on refinery safety and to receive information from the public regarding health and safety concerns associated with refinery operations.

Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection, consisting of various boards, offices, and departments, and vests the agency with authority over various environmental matters.

This bill would provide for the California Environmental Protection Agency, in consultation with specified federal, state, and local agencies, to examine ways to improve public and worker safety through enhanced oversight of refineries and to strengthen emergency preparedness in anticipation of any future refinery incident. The bill would require the California Environmental Protection Agency, in consultation with those agencies, to facilitate coordination among those agencies to protect the public, fence line communities, and refinery workers from risks associated with refinery operations throughout the state. The bill would require the California Environmental Protection Agency to hold at least 2 public meetings a year, as specified, to provide members of the public with current information on refinery safety and to receive information from the public regarding health and safety concerns associated with refinery operations.

Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection, consisting of various boards, offices, and departments, and vests the agency with authority over various environmental matters.

This bill would create the Interagency Task Force on Refinery Safety, with a specified membership, to be managed by provide for the California Environmental Protection Agency as the lead agency. The bill would provide that the purpose of the task force shall be Agency, in consultation with specified federal, state, and local agencies, to examine ways to improve public and worker safety through enhanced oversight of refineries, refineries and to strengthen emergency preparedness in anticipation of any future refinery incident. The bill would require the task force to seek to better coordinate each participating agencys individual functions and California Environmental Protection Agency, in consultation with those agencies, to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, consider whether there are inherently safer systems, and continue to improve and enhance protection for workers, coordination among those agencies to protect the public, fence line communities, and the environment. refinery workers from risks associated with refinery operations throughout the state. The bill would require the California Environmental Protection Agency to hold at least 2 public meetings a year, as specified, to provide members of the public with current information on refinery safety and to receive information from the public regarding health and safety concerns associated with refinery operations.

Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection, consisting of various boards, offices, and departments, and vests the agency with authority over various environmental matters.

This bill would create the Interagency Task Force on Refinery Safety, with a specified membership, to be managed by the California Environmental Protection Agency as the lead agency. The bill would provide that the purpose of the task force shall be to examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future refinery incident. The bill would require the task force to seek to better coordinate each participating agencys individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward consider whether there are inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment.

Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection, consisting of various boards, offices, and departments, and vests the agency with authority over various environmental matters.

This bill would create the Interagency Task Force on Refinery Safety, with a specified membership, to be managed by the California Environmental Protection Agency as the lead agency. The bill would provide that the purpose of the task force shall be to examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future refinery incident. The bill would require the task force to seek to better coordinate each participating agencys individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment.

Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection, consisting of various boards, offices, and departments, and vests the agency with authority over various environmental matters.

This bill would create the Interagency Task Force on Refinery Safety, with a specified membership, to be managed by the California Environmental Protection Agency as the lead agency. The bill would provide that the purpose of the task force shall be to examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future refinery incident. The bill would require the task force to seek to better coordinate each participating agencys individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1649

Author:(Muratsuchi)

As Amended Ver:September 1, 2017

Majority vote

Original Committee Reference: E.S. & T.M.

SUMMARY: Requires the California Environmental Protection Agency (CalEPA) to coordinate the activities of those state and local agencies with a regulatory role regarding refineries and requires CalEPA to convene at least two public meetings annually to provide members of the public with current information on refinery safety.

The Senate amendments:

1) Delete the creation of the Interagency Task Force on Refinery Safety lead by CalEPA and instead require CalEPA to coordinate local and state agency efforts on refinery safety.

2) Require CalEPA to convene at least two public meetings annually to provide members of the public with current information on refinery safety and to receive information from the public regarding health and safety concerns associated with refinery operations. Require that these public meetings be in geographically distinct locations in areas where a refinery is located.

3) Require CalEPA to request representatives from each state and local agency tasked with refinery safety to attend the public meetings required by the bill.

FISCAL EFFECT: According to the Senate Appropriations Committee, enactment of this bill could cost approximately $200,000 annually (special fund) to the CalEPA for one position to coordinate the various local and state agencies and minor, likely absorbable, costs for state agencies that are working with CalEPA on refinery safety.

COMMENTS:

Need for the bill: According to the author, "AB 1649 will codify the existing Refinery Task Force created by the Governor to ensure that after Governor Brown leaves office in 2018, the Task Force will continue. According to the Brown Administration when forming the Task Force, its purpose is to "examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future refinery incident. The task force shall seek to better coordinate each participating agency's individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment." This bill will help establish a streamlined set of contacts for refineries at the state level. Additionally, it will ensure that formerly duplicative inspections and reporting will not be required by multiple state and local agencies."

Interagency Refinery Task Force (Task Force): In the aftermath of a serious chemical release and fire at Chevron's Richmond oil refinery in August, 2012, the Brown Administration formed an Interagency Working Group (Working Group) to examine ways to improve public and worker safety through enhanced oversight of refineries and to strengthen emergency preparedness in anticipation of any future incident. The Working Group consisted of participants from 13 agencies and departments, as well as the Governor's office. Over an eight-month period, the Working Group met internally and with industry, labor, community, environmental, academic, local emergency response, and other stakeholders. The Working Group released a report titled, "Improving Public and Worker Safety at Oil Refineries" (Report) in February 2014, and the recommendations included creating a Task Force within CalEPA, to coordinate agencies' activities and carry out the recommendations in this Report. As a result of this Report, CalEPA did create the Task Force and began implementing the recommendations in the Report.

Regulatory changes as a result of Task Force recommendations: Since the release of the Report, the California Office of Emergency Services (OES) and the California Department of Industrial Relations/Division of Occupational Safety and Health (DIR) have proposed regulatory amendments to implement recommendations within the Report. Both of the regulations by OES and DIR have been in process since 2016 and are expected to be finalized in 2017.

If there is an incident at a refinery, it is often complicated to discern who in government is responsible for responding to or overseeing the response to the incident. More than 10 different state and local agencies have regulatory oversight in some form at refineries in California. The Task Force, first established by CalEPA, and envisioned being permanently established within this bill, solves the problem of who is in charge and requires collaboration among the state agencies with a role at refineries in order to better protect human health, worker health, and the environment. When looking at facilities as complex as refineries, having collaboration among state and local agencies is vital. By requiring that these multiple agencies better coordinate their regulatory work at refineries, this bill ensures that these efforts continue in order to better protect communities, workers, and the environment at and near refineries.

Analysis Prepared by: Josh Tooker / E.S. & T.M. / (916) 319-3965 FN: 0001913

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 1649 (Muratsuchi) - Oil refineries: public safety

Bill Summary:

AB 1649 creates the Interagency Task Force on Refinery Safety (task force) to be managed by the California Environmental Protection Agency (CalEPA).

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2017

Fiscal Impact:

Approximately $200,000 annually (special fund) to the CalEPA for one position to manage the task force and other incidental costs related to the task force.

Minor, likely absorbable, costs for task force members representing other state entities to continue participating.

Author Amendments:

• Require the CalEPA to hold two public meetings and clarify other requirements.

-- END --

 THIRD READING  

Bill No: AB 1649

Author: , et al.

Amended: 9/1/17 in Senate

Vote:

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 6-0, 6/21/17

AYES: Wieckowski, Stone, Hill, Lara, Skinner, Stern

NO VOTE RECORDED: Gaines

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 76-0, 6/1/17 - See last page for vote

SUBJECT: Oil refineries: public safety

SOURCE: Author

DIGEST:

This bill requires the California Environmental Protection Agency (CalEPA) in consultation with specified federal state and local agencies to examine ways to improve safety through enhanced oversight of refineries and to strengthen emergency preparedness in anticipation of future refinery incidents.

ANALYSIS: Existing law requires CalEPA, in designing its mission for program, policies, and standards to: conduct its programs, policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races, cultures, and income levels, including minority populations and low-income populations of the state; ensures greater public participation in the agency’s development, adoption, and implementation of environmental regulations and policies; and coordinates its efforts and shares information with the United States Environmental Protection Agency (US EPA).

This bill requires CalEPA in consultation with specified federal state and local agencies to examine ways to improve safety through enhanced oversight of refineries and to strengthen emergency preparedness in anticipation of future refinery incidents.

Background

1. ExxonMobil Torrance refinery. The ExxonMobil Torrance refinery dates back to 1907. It is one of the major refineries in the state that produces gasoline and other fuels. Per ExxonMobil, the Torrance facility covers 750 acres, employs approximately 650 employees and 550 contractors. The refinery processes an average of 155,000 barrels of crude oil per day and produces 1.8 billion gallons of gasoline per year.

At approximately 8:50am on February 18, 2015, a significant explosion occurred at the ExxonMobil refinery in the City of Torrance which ripped apart major structures at the facility, shook homes for miles around the blast in the populated Southern California community, and sent ash into the air, landing on cars and homes throughout the area. Caltech officials said the explosion created ground shaking equivalent to a magnitude-1.7 earthquake. The enormity of the blast could have resulted in severe injuries and possible fatalities. Fortunately, only minor injuries were reported, including eight workers who were decontaminated onsite and four taken to the hospital. Three of the injured were released the same day. One worker remained hospitalized with a knee injury.

A smoke advisory was issued for neighborhoods near the refinery while regulators conducted analysis as to the potential health threat of the ash. Torrance Unified School District, the local school district, issued a “shelter-in-place” warning to nearby schools. Several schools were affected and sheltered in place during the day of the incident. However, not all schools knew of the alert or were informed of the proper procedures.

Agencies who responded to the incident included: Torrance Fire Department who served as the incident commander, Los Angeles County Fire Hazardous Materials (HazMat), South Coast Air Quality Management District, and California Division of Occupational Safety and Health (Cal/OSHA).

The exact cause of the explosion is under investigation, however, initial inspections point to an over-pressurized air filtration device, an electrostatic precipitator, as the source of the explosion. Other sources of suspicion include washers and valves that had not been replaced in a very long time. The electrostatic precipitator is a piece of equipment roughly 100-feet long and used in the refining process to capture particulates and other air contaminants to prevent them from being released into the air. Agencies and news reports have noted that at the time of the incident workers were addressing the fluid catalytic cracking unit (FCC), a main unit at the refinery that converts crude oil to high-octane gasoline and other fuels. As a result, the FCC unit was off, or on standby mode.

In the aftermath of the incident, city officials held a briefing at the City Council meeting the Tuesday following the explosion. City officials acknowledged the need to improve response, particularly the effectiveness of the communications tools they have in place. The City of Torrance Fire Department has the ability to notify residents when a major incident has occurred with a suite of communications tools, including the use of a community warning siren system intended to alert the public in close proximity to ExxonMobil Refinery of a chemical release and the need to shelter in place. However, the alert sirens were not utilized on the day of the incident. The City also has a phone alert system that calls residents who have signed up for the service, Torrance Alerts, which was utilized with mixed results as noted by City Councilmembers who expressed confusion with the system.

In addition to the communications tools, the City has a barrier system for both Crenshaw and Del Amo Boulevards, two of the major roadways bordering the refinery, to restrict traffic in order to reduce exposure and support the emergency response effort. The day of the incident, the Del Amo Boulevard barrier was used, but the Crenshaw Boulevard barrier was not utilized.

1. Chevron Richmond refinery explosion in 2012. The explosion at the ExxonMobil Torrance refinery is the first major refinery incident in the state since the August 6, 2012 Chevron Richmond refinery explosion that endangered the lives of 19 workers and sent 15,000 residents to local hospitals as a plume of black smoke enveloped the region. According to the incident summary by the U.S. Chemical Safety Board (CSB), the explosion at the Richmond refinery was the result of a catastrophic ruptured pipe in the #4 crude unit which released flammable, high temperature light gas oil, which then vaporized into a large, opaque vapor cloud that engulfed 19 workers.

Two minutes after the release, the vapor ignited and all but one worker escaped the fireball. The remaining worker, a Chevron refinery fire fighter, was in a fire engine wearing full protective gear which enabled him to survive. Additionally, 15,000 residents flooded local emergency rooms and hospitals to report concerns from the smoke and related particulate pollution.

In response to the incident, Cal/OSHA, the CSB, and US EPA opened investigations and have issued reports. Chevron also completed its own investigation. According to a 2014 report issued by a state working group, “all four investigations identified serious concerns about process safety management procedures at the refinery and expressed the need for stronger preventative safeguards.”

The CSB released its final report in January 2015 in which it attributes a number of technical and managerial missteps by Chevron that resulted in the explosion. The report noted that the steel of the ruptured pipe was extremely vulnerable to corrosion, particularly from sulfur commonly used in the refining process. The CSB further points to Chevron management who did not understand how to address the leak in the pipe and whose actions made the situation worse. Moreover, according to the CSB, management rejected or ignored reports from employees that conditions were unsafe, including employee requests for safer equipment and practices.

As a result of the incident, Chevron has paid millions in fines, including a record-breaking fine issued by Cal/OSHA, and millions to affected community members and local government agencies for incident response and medical-related costs.

1. Interagency Refinery Task Force. In the aftermath of a serious chemical release and fire at Chevron’s Richmond oil refinery in August, 2012, the Brown Administration formed an Interagency Working Group (Working Group) to examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future incident. The Working Group consisted of participants from 13 agencies and departments, as well as the Governor’s office. Over an eight-month period, the Working Group met internally and with industry, labor, community, environmental, academic, local emergency response, and other stakeholders. The Working Group released a report titled, “Improving Public and Worker Safety at Oil Refineries” (Report) in February 2014 and the recommendations included creating an Interagency Refinery Task Force within CalEPA by September 1, 2013, to coordinate agencies' activities and carry out the recommendations in this Report. As a result of this Report, CalEPA did create the Task Force and began implementing the recommendations in the Report.
2. Regulatory changes as a result of Task Force recommendations. Since the release of the Report, the California Office of Emergency Services (OES) and the California Department of Industrial Relations/Division of Occupational Safety and Health (DIR) have proposed regulatory amendments to implement recommendations within the Report. Both of the regulations by OES and DIR have been in the process since 2016 and are expected to be finalized in 2017.

If there is an incident at a refinery, it is often complicated to discern who in government is responsible for responding to or overseeing the response to the incident. More than 10 different state and local agencies have regulatory oversight in some form at refineries in California. The Task Force first established by CalEPA, and envisioned being permanently established within this bill, solves the problem of who is in charge and requires collaboration among the state agencies with a role at refineries in order to better protect human health, worker health, and the environment. When looking at facilities as complex as refineries, having collaboration among state and local agencies is vital. By requiring that these multiple agencies better coordinate their regulatory work at refineries, this bill ensures that the efforts of the Task Force continue in order to better protect communities, workers, and the environment at and near refineries.

Comments

Purpose of bill. According to the author, “AB 1649 will codify the existing Refinery Task Force created by the Governor to ensure that after Governor Brown leaves office in 2018, the Task Force will continue.” According to the executive order forming the task force, its purpose is to “examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future refinery incident. The task force shall seek to better coordinate each participating agency’s individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment.”

Related/Prior Legislation

AB 1645 (Muratsuchi, 2017) phases out the use of hydrofluoric acid by California refineries.  AB 1645 is awaiting hearing in the Assembly Committee on Environmental Safety and Toxic Materials.

AB 1646 (Muratsuchi, 2017) requires that a refinery’s risk management plan be available to the public; it calls for a creation and maintenance of a publicly accessible community alert plan; and it requires the maintenance of a public alert system including, but not limited to, alarms and sirens to alert the public in the case of emergency. AB 1646 is set to be heard in the Senate Committee on Environmental Quality on June 21, 2017.

AB 1647 (Muratsuchi, 2017) requires the installation and maintenance of air quality monitors at the refinery fence-line and in the community, and requires that the governing agency publicly report the readings from the monitors in real-time, if feasible for the governing agency.  AB 1647 is set to be heard in the Senate Committee on Environmental Quality on June 21, 2017.

AB 1648 (Muratsuchi, 2017) increases the number of state refinery inspectors at the California Division of Occupational Safety and Health (Cal/OSHA). A budget request has been made in conjunction with this bill.  AB 1648 is awaiting hearing in the Assembly Committee on Labor and Employment.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• Approximately $200,000 annually (special fund) to CalEPA for one position to manage the task force and other incidental costs related to the task force.
• Minor, likely absorbable, costs for other state task force members to continue participating.

SUPPORT: (Verified 8/30/17)

California Environmental Justice Alliance

California Interfaith Power and Light

California State Association of Electrical Workers

California State Pipe Trades Council

County of Los Angeles

County of Los Angeles, Board of Supervisors

42 Individuals

OPPOSITION: (Verified 8/30/17)

None received

ASSEMBLY FLOOR: 76-0, 6/1/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Quirk, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Choi, Medina, Patterson, Quirk-Silva

Prepared by:

9/5/17 9:41:47

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 1649 (Muratsuchi) - Interagency Task Force on Refinery Safety

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 1649 creates the Interagency Task Force on Refinery Safety (task force) to be managed by the California Environmental Protection Agency (CalEPA).

Fiscal Impact:

Approximately $200,000 annually (special fund) to the CalEPA for one position to manage the task force and other incidental costs related to the task force.

Minor, likely absorbable, costs for other state task force members to continue participating.

Background:

The impetus: a refinery fire, a multi-agency working group, the resulting safety report. In the aftermath of a serious chemical release and fire at Chevron’s Richmond oil refinery in August of 2012, the Brown Administration formed an Interagency Working Group (working group) to examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future incident. The working group consisted of participants from 13 agencies and departments, as well as the Governor’s office. Over an eight-month period, the working group met internally and with representatives from industry, labor, the community, environmental organizations, academia, local emergency response entities, and other stakeholders.

The working group released a report titled, “Improving Public and Worker Safety at Oil Refineries” (report) in February 2014. The report’s recommendations fall into four broad categories: (1) improved agency coordination through the establishment of an Interagency Refinery Task Force; (2) emergency management and response; (3) safety and prevention; and (4) education and outreach to the public. This bill codifies the CalEPA’s implementation of recommendation (1). Specifically, the task force is expected to: enhance coordination of regulatory agencies’ oversight and enforcement activities; designate a “Refinery Information Officer”, a state-level, single point of contact for the public regarding refineries and provide regularly scheduled updates to communities surrounding refineries; establish ongoing stakeholder forums in northern and southern California; and (4) continue, and implement in Southern California, the more technically-oriented “Contra Costa County Community Awareness Emergency Response Group Safety Summits” to discuss more detailed issues about prevention of refinery hazards and incidents. The report suggests that costs should be funded through fees on California refineries.

Proposed Law:

This bill:

1. Creates [in statute] the CalEPA-lead task force to examine ways to improve public and worker safety through the enhanced oversight of refineries and to strengthen emergency preparedness in anticipation of any future refinery incident.
2. Requires the task force to better coordinate each participating agency’s individual functions and facilitate information sharing among participating agencies, with the goal of ensuring refineries: a) comply with all regulatory requirements; b) move toward inherently safer systems; and c) continue to improve and enhance protection for workers, communities, and the environment.
3. Requires the following entities to participate in the task force: a) The Governor’s Office of Emergency Services; b) the Cal EPA; c) the Air Resources Board; d) the Department of Toxic Substances Control; e) the State Water Resources Control Board; f) the Department of Industrial Relations; g) the Division of Occupational Safety and Health (Cal/OSHA); h) the Department of Public Health; i) the Emergency Medical Services Authority; j) the Office of the State Fire Marshal; k) certified unified program agencies in areas with refineries; l) local air districts in areas with refineries; and, m) the United States Environmental Protection Agency, Region 9.

Related Legislation:

AB 1645 (Muratsuchi, 2017) phases out the use of hydrofluoric acid by California refineries. Awaiting hearing in the Assembly Committee on Environmental Safety and Toxic Materials.

AB 1646 (Muratsuchi, 2017) requires that a refinery’s risk management plan be available to the public; it calls for a creation and maintenance of a publicly accessible community alert plan; and it requires the maintenance of a public alert system including, but not limited to, alarms and sirens to alert the public in the case of emergency. Pending hearing in Senate Appropriations Committee.

AB 1647 (Muratsuchi, 2017) will require the installation and maintenance of air quality monitors at the refinery fence-line and in the community, and require that the governing agency publicly report the readings from the monitors in real-time, if feasible for the governing agency.  Pending hearing in Senate Appropriations Committee.

AB 1648 (Muratsuchi, 2017) increases the number of state refinery inspectors at the California Division of Occupational Safety and Health (Cal OSHA).  A budget request has been made in conjunction with this bill.  Awaiting hearing in the Assembly Committee on Labor and Employment.

Staff Comments:

Purpose of the bill. Over 10 different state and local agencies have regulatory oversight in some form at refineries in California. If there is an issue with a refinery, it is often complicated to discern who in state government is responsible. The task force first established by CalEPA and envisioned being permanently established within AB 1649, solves the problem of who is in charge and requires collaboration among the state agencies with a role at refineries in order to better protect human health, worker health, and the environment.

According to the author, AB 1649 will codify the existing Refinery Task Force created by the Governor to ensure that after Governor Brown leaves office in 2018, the Task Force will continue.

Fiscal impact. Staff notes that the task force required under this bill currently exists and represents the continuation of workload that has, to date, been absorbed by the CalEPA and participating entities. However, once established in statute, workload associated with the task force will continue in perpetuity (as the bill does not specify an end date), resulting in ongoing costs of approximately $200,000 annually for CalEPA to lead the task force.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2017 - 2018 Regular

Bill No: AB 1649

SUBJECT: Interagency Task Force on Refinery Safety.

ANALYSIS:

Existing law: requires the California Environmental Protection Agency (CalEPA), in designing its mission for program, policies, and standards to: conduct its programs, policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races, cultures, and income levels, including minority populations and low-income populations of the state; ensures greater public participation in the agency’s development, adoption, and implementation of environmental regulations and policies; and coordinates its efforts and shares information with the United States Environmental Protection Agency.

This bill:

1. Creates the Interagency Task Force on Refinery Safety (Task Force) to be managed by the California Environmental Protection Agency (CalEPA) as the lead agency. Specifically:
2. Creates the Task Force and designates CalEPA as the lead agency.
3. States that the purpose of the Task Force is to consider where there are inherently safer systems and continue to improve and enhance protection for workers, communities and the environment.
4. Directs the Task Force to better coordinate each participating agency’s individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment.
5. Establishes the following entities within the Task Force:

a) The Governor’s Office of Emergency Services;

b) The California Environmental Protection Agency;

c) The State Air Resources Board;

d) The Department of Toxic Substances Control;

e) The State Water Resources Control Board;

f) The Department of Industrial Relations;

g) The Division of Occupational Safety and Health (Cal/OSHA);

h) The Department of Public Health;

i) The Emergency Medical Services Authority;

j) The Office of the State Fire Marshal;

k) Certified unified program agencies in areas with refineries;

l) Local air districts in areas with refineries; and,

m) The United States Environmental Protection Agency, Region 9.

1. Clarifies that this bill this does not convey any additional regulatory authority to any agency.
   

Background

1. ExxonMobil Torrance refinery. The ExxonMobil Torrance refinery dates back to 1907. It is one of the major refineries in the state that produces gasoline and other fuels. Per ExxonMobil, the Torrance facility covers 750 acres, employs approximately 650 employees and 550 contractors. The refinery processes an average of 155,000 barrels of crude oil per day and produces 1.8 billion gallons of gasoline per year.
   
   At approximately 8:50am on February 18, 2015, a significant explosion occurred at the ExxonMobil refinery in the City of Torrance which ripped apart major structures at the facility, shook homes for miles around the blast in the populated Southern California community, and sent ash into the air, landing on cars and homes throughout the area. Caltech officials said the explosion created ground shaking equivalent to a magnitude-1.7 earthquake. The enormity of the blast could have resulted in severe injuries and possible fatalities. Fortunately, only minor injuries were reported, including eight workers who were decontaminated onsite and four taken to the hospital. Three of the injured were released the same day. One worker remained hospitalized with a knee injury.
   
   A smoke advisory was issued for neighborhoods near the refinery while regulators conducted analysis as to the potential health threat of the ash. Torrance Unified School District, the local school district, issued a “shelter-in-place” warning to nearby schools. Several schools were affected and sheltered in place during the day of the incident. However, not all schools knew of the alert or were informed of the proper procedures.
   
   Agencies who responded to the incident included: Torrance Fire Department who served as the incident commander, Los Angeles County Fire Hazardous Materials (HazMat), SCAQMD, and Cal/OSHA.
   
   The exact cause of the explosion is under investigation, however, initial inspections point to an over-pressurized air filtration device, an electrostatic precipitator, as the source of the explosion. Other sources of suspicion include washers and valves that had not been replaced in a very long time. The electrostatic precipitator is a piece of equipment roughly 100-feet long and used in the refining process to capture particulates and other air contaminants to prevent them from being released into the air. Agencies and news reports have noted that at the time of the incident workers were addressing the fluid catalytic cracking unit (FCC), a main unit at the refinery that converts crude oil to high-octane gasoline and other fuels. As a result, the FCC unit was off, or on standby mode.
   
   In the aftermath of the incident, city officials held a briefing at the City Council meeting the Tuesday following the explosion. City officials acknowledged the need to improve response, particularly the effectiveness of the communications tools they have in place. The City of Torrance Fire Department has the ability to notify residents when a major incident has occurred with a suite of communications tools, including the use of a community warning siren system intended to alert the public in close proximity to ExxonMobil Refinery of a chemical release and the need to shelter in place. However, the alert sirens were not utilized on the day of the incident. The City also has a phone alert system that calls residents who have signed up for the service, Torrance Alerts, which was utilized with mixed results as noted by City Councilmembers who expressed confusion with the system.
   
   In addition to the communications tools, the City has a barrier system for both Crenshaw and Del Amo Boulevards, two of the major roadways bordering the refinery, to restrict traffic in order to reduce exposure and support the emergency response effort. The day of the incident, the Del Amo Boulevard barrier was used, but the Crenshaw Boulevard barrier was not utilized.
   
2. Chevron Richmond refinery explosion in 2012. The explosion at the ExxonMobil Torrance refinery is the first major refinery incident in the state since the August 6, 2012 Chevron Richmond refinery explosion that endangered the lives of 19 workers and sent 15,000 residents to local hospitals as a plume of black smoke enveloped the region. According to the incident summary by the U.S. Chemical Safety Board (CSB), the explosion at the Richmond refinery was the result of a catastrophic ruptured pipe in the #4 crude unit which released flammable, high temperature light gas oil, which then vaporized into a large, opaque vapor cloud that engulfed 19 workers.

Two minutes after the release, the vapor ignited and all but one worker escaped the fireball. The remaining worker, a Chevron refinery fire fighter, was in a fire engine wearing full protective gear which enabled him to survive. Additionally, 15,000 residents flooded local emergency rooms and hospitals to report concerns from the smoke and related particulate pollution.

In response to the incident, Cal/OSHA, the CSB, and the United States Environmental Protection Agency (US EPA) opened investigations and have issued reports. Chevron also completed its own investigation. According to a 2014 report issued by a state working group, “all four investigations identified serious concerns about process safety management procedures at the refinery and expressed the need for stronger preventative safeguards.”

The CSB released its final report in January 2015 in which it attributes a number of technical and managerial missteps by Chevron that resulted in the explosion. The report noted that the steel of the ruptured pipe was extremely vulnerable to corrosion, particularly from sulfur commonly used in the refining process. The CSB further points to Chevron management who did not understand how to address the leak in the pipe and whose actions made the situation worse. Moreover, according to the CSB, management rejected or ignored reports from employees that conditions were unsafe, including employee requests for safer equipment and practices.

As a result of the incident, Chevron has paid millions in fines, including a record-breaking fine issued by CalOSHA, and millions to affected community members and local government agencies for incident response and medical-related costs.

1. Interagency Refinery Task Force: In the aftermath of a serious chemical release and fire at Chevron’s Richmond oil refinery in August, 2012, the Brown Administration formed an Interagency Working Group (Working Group) to examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future incident. The Working Group consisted of participants from 13 agencies and departments, as well as the Governor’s office. Over an eight-month period, the Working Group met internally and with industry, labor, community, environmental, academic, local emergency response, and other stakeholders. The Working Group released a report titled, “Improving Public and Worker Safety at Oil Refineries” (Report) in February 2014 and the recommendations included creating an Interagency Refinery Task Force within CalEPA by September 1, 2013, to coordinate agencies' activities and carry out the recommendations in this Report. As a result of this Report, CalEPA did create the Task Force and began implementing the recommendations in the Report.
2. Regulatory changes as a result of Task Force recommendations: Since the release of the Report, the California Office of Emergency Services (OES) and the California Department of Industrial Relations/Division of Occupational Safety and Health (DIR) have proposed regulatory amendments to implement recommendations within the Report. Both of the regulations by OES and DIR have been in the process since 2016 and are expected to be finalized in 2017.

If there is an incident at a refinery, it is often complicated to discern who in government is responsible for responding to or overseeing the response to the incident. More than 10 different state and local agencies have regulatory oversight in some form at refineries in California. The Task Force first established by CalEPA, and envisioned being permanently established within this bill, solves the problem of who is in charge and requires collaboration among the state agencies with a role at refineries in order to better protect human health, worker health, and the environment. When looking at facilities as complex as refineries, having collaboration among state and local agencies is vital. By requiring that these multiple agencies better coordinate their regulatory work at refineries, this bill ensures that the efforts of the Task Force continue in order to better protect communities, workers, and the environment at and near refineries.

Comments

1. Purpose of Bill. According to the author, “AB 1649 will codify the existing Refinery Task Force created by the Governor to ensure that after Governor Brown leaves office in 2018, the Task Force will continue.” According to the executive order forming the task force, its purpose is to “examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future refinery incident. The task force shall seek to better coordinate each participating agency’s individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment.”

Related/Prior Legislation

AB 1645 (Muratsuchi, 2017) phases out the use of hydrofluoric acid by California refineries.  AB 1645 is awaiting hearing in the Assembly Committee on Environmental Safety and Toxic Materials.

AB 1646 (Muratsuchi, 2017) requires that a refinery’s risk management plan be available to the public; it calls for a creation and maintenance of a publicly accessible community alert plan; and it requires the maintenance of a public alert system including, but not limited to, alarms and sirens to alert the public in the case of emergency. AB 1646 is set to be heard in the Senate Committee on Environmental Quality on June 21, 2017.

AB 1647 (Muratsuchi, 2017) will require the installation and maintenance of air quality monitors at the refinery fence-line and in the community, and require that the governing agency publicly report the readings from the monitors in real-time, if feasible for the governing agency.  AB 1647 is set to be heard in the Senate Committee on Environmental Quality on June 21, 2017.

AB 1648 (Muratsuchi, 2017) increases the number of state refinery inspectors at the California Division of Occupational Safety and Health (Cal OSHA).  A budget request has been made in conjunction with this bill.  AB 1648 is awaiting hearing in the Assembly Committee on Labor and Employment.

SOURCE:

Author

SUPPORT:

California Environmental Justice Alliance

California Interfaith Power and Light

California State Association of Electrical Workers

California State Pipe Trades Council

County of Los Angeles

County of Los Angeles, Board of Supervisors

42 Individuals

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1649

Author:(Muratsuchi)

As Introduced Ver:May 26, 2017

Majority vote

SUMMARY: Creates the Interagency Task Force on Refinery Safety (Task Force) to be managed by the California Environmental Protection Agency (CalEPA) as the lead agency. States that the purpose of the Task Force is to coordinate the activities of those state and local agencies with a regulatory role regarding refineries and this bill does not convey any additional regulatory authority to any agency.

FISCAL EFFECT: According to the Assembly Appropriations Committee, enactment of this bill could result in approximately $200,000 and one staff person per year to CalEPA for the cost of managing the Interagency Task Force.

COMMENTS: Need for the bill: According to the author, "AB 1649 will codify the existing Refinery Task Force created by the Governor to ensure that after Governor Brown leaves office in 2018, the Task Force will continue." According to the executive order forming the task force, its purpose is to "examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future refinery incident. The task force shall seek to better coordinate each participating agency's individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment." This bill will help establish a streamlined set of contacts for refineries at the state level. Additionally, it will ensure that formerly duplicative inspections and reporting will not be required by multiple state and local agencies.

Interagency Refinery Task Force: In the aftermath of a serious chemical release and fire at Chevron's Richmond oil refinery in August, 2012, the Brown Administration formed an Interagency Working Group (Working Group) to examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future incident. The Working Group consisted of participants from 13 agencies and departments, as well as the Governor's office. Over an eight-month period, the Working Group met internally and with industry, labor, community, environmental, academic, local emergency response, and other stakeholders. The Working Group released a report titled, "Improving Public and Worker Safety at Oil Refineries" (Report) in February 2014 and the recommendations included creating an Interagency Refinery Task Force within CalEPA by September 1, 2013, to coordinate agencies' activities and carry out the recommendations in this Report. As a result of this Report, CalEPA did create the Task Force and began implementing the recommendations in the Report.

Regulatory changes as a result of Task Force recommendations: Since the release of the Report, the California Office of Emergency Services (OES) and the California Department of Industrial Relations/Division of Occupational Safety and Health (DIR) have proposed regulatory amendments to implement recommendations within the Report. Both of the regulations by OES and DIR have been in the process since 2016 and are expected to be finalized in 2017.

If there is an incident at a refinery, it is often complicated to discern who in government is responsible for responding to or overseeing the response to the incident. More than 10 different state and local agencies have regulatory oversight in some form at refineries in California. The Task Force first established by CalEPA, and envisioned being permanently established within this bill, solves the problem of who is in charge and requires collaboration among the state agencies with a role at refineries in order to better protect human health, worker health, and the environment. When looking at facilities as complex as refineries, having collaboration among state and local agencies is vital. By requiring that these multiple agencies better coordinate their regulatory work at refineries, this bill ensures that the efforts of the Task Force continue in order to better protect communities, workers, and the environment at and near refineries.

Analysis Prepared by: Josh Tooker / E.S. & T.M. / (916) 319-3965 FN: 0000794

Date of Hearing: May 3, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1649

Author:(Muratsuchi) – As Introduced Ver:February 17, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill creates the Interagency Task Force on Refinery Safety (Task Force) to be managed by CalEPA as the lead agency. Specifically, this bill:

1. States the purpose of the Task Force is to: a) examine ways to improve public and worker safety through the enhanced oversight of refineries; and b) to strengthen emergency preparedness in anticipation of any future refinery incident.
2. Requires the Task Force to better coordinate each participating agency’s individual functions and facilitate information sharing among participating agencies, with the goal of ensuring refineries: a) comply with all regulatory requirements; b) move toward inherently safer systems; and c) continue to improve and enhance protection for workers, communities, and the environment.
3. Requires the Task Force to be comprised of the following 13 entities: a) The Governor’s Office of Emergency Services; b) Cal EPA; c) The Air Resources Board; d) The Department of Toxic Substances Control; e) The State Water Resources Control Board; f) The Department of Industrial Relations; g) The Division of Occupational Safety and Health (Cal/OSHA); h) The Department of Public Health; i) The Emergency Medical Services Authority; j) The Office of the State Fire Marshal; k) Certified unified program agencies in areas with refineries; l) Local air districts in areas with refineries; and, m) The United States Environmental Protection Agency, Region 9.

FISCAL EFFECT:

1. The CalEPA cost of managing the Interagency Task Force is approximately $200,000 and one PY per year. This bill requires CalEPA to continue this voluntary effort.
2. Minor, likely absorbable, costs for other state task force members to continue participating.

COMMENTS:

1. Background. In the aftermath of a serious chemical release and fire at Chevron’s Richmond oil refinery in August, 2012, the Governor Brown formed an Interagency Working Group to examine ways to improve public and worker safety at oil refineries and strengthen emergency preparedness in anticipation of any future incident. The Working Group consisted of participants from 13 agencies and departments, as well as the Governor’s office. Over an eight-month period, the Working Group met internally and with industry, labor, community, environmental, academic, local emergency response, and other stakeholders. The Working Group released a report titled, “Improving Public and Worker Safety at Oil Refineries” (Report) in February 2014 and the recommendations included creating an Interagency Refinery Task Force within CalEPA to coordinate agencies’ activities and carry out the recommendations in this report. As a result of this Report, CalEPA created the Task Force and began implementing the recommendations in the Report. Since the release of the Report, the Office of Emergency Services (OES) and the California Department of Industrial Relations (DIR) have proposed regulatory amendments to implement its recommendations. Both of the regulations by OES and DIR have been in the process since 2016 and will hopefully be finalized in 2017.
2. Purpose. Over 10 different state and local agencies have regulatory oversight in some form at refineries in California. If there is an issue with a refinery, it is often complicated to discern who in state government is responsible. The Task Force first established by CalEPA and envisioned being permanently established within AB 1649, solves the problem of who is in charge and requires collaboration among the state agencies with a role at refineries in order to better protect human health, worker health, and the environment.

According to the author, AB 1649 will codify the existing Refinery Task Force created by the Governor to ensure that after Governor Brown leaves office in 2018, the Task Force will continue.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: April 4, 2017

ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS

Bill Quirk, Chair

ABPCA Bill Id:AB 1649 (

Author:Muratsuchi) – As Introduced Ver:February 17, 2017

SUBJECT: Interagency Task Force on Refinery Safety

SUMMARY: Creates the Interagency Task Force on Refinery Safety (Task Force) to be managed by the California Environmental Protection Agency (CalEPA) as the lead agency. Specifically, this bill:

1) Creates the Task Force and designates CalEPA as the lead agency.

2) States that the purpose of the Task Force is to examine ways to improve public and worker safety through enhanced oversight of refineries and to strengthen emergency preparedness in anticipation of any future refinery incident.

3) Directs the Task Force to better coordinate each participating agency’s individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for workers, communities, and the environment.

4) Establishes the following entities within the Task Force:

a) The Governor’s Office of Emergency Services;

b) The California Environmental Protection Agency;

c) The State Air Resources Board;

d) The Department of Toxic Substances Control;

e) The State Water Resources Control Board;

f) The Department of Industrial Relations;

g) The Division of Occupational Safety and Health (Cal/OSHA);

h) The Department of Public Health;

i) The Emergency Medical Services Authority;

j) The Office of the State Fire Marshal;

k) Certified unified program agencies in areas with refineries;

l) Local air districts in areas with refineries; and,

m) The United States Environmental Protection Agency, Region 9.

EXISTING LAW:

1) Requires CalEPA, in designing its mission for program, policies, and standards to: Conduct its programs, policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races, cultures, and income levels, including minority populations and low-income populations of the state; ensures greater public participation in the agency’s development, adoption, and implementation of environmental regulations and policies; and coordinates its efforts and shares information with the United States Environmental Protection Agency. (PRC § 71110)

FISCAL EFFECT: Unknown.

COMMENTS:

Need for the bill: According to the author, "AB 1649 will codify the existing Refinery Task Force created by the Governor to ensure that after Governor Brown leaves office in 2018, the Task Force will continue". According to the executive order forming the task force, its purpose is to "examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future refinery incident. The task force shall seek to better coordinate each participating agency’s individual functions and to facilitate information sharing among participating agencies, with the goal of ensuring that refineries comply with all regulatory requirements, move toward inherently safer systems, and continue to improve and enhance protection for works, communities, and the environment." AB 1649 will help establish a streamlined set of contacts for refineries at the state level. Additionally, it will ensure that formerly duplicative inspections and reporting will not be required by multiple state and local agencies.

Interagency Refinery Task Force: In the aftermath of a serious chemical release and fire at Chevron’s Richmond oil refinery in August, 2012, the Brown Administration formed an Interagency Working Group to examine ways to improve public and worker safety through enhanced oversight of refineries, and to strengthen emergency preparedness in anticipation of any future incident. The Working Group consisted of participants from 13 agencies and departments, as well as the Governor’s office. Over an eight-month period, the Working Group met internally and with industry, labor, community, environmental, academic, local emergency response, and other stakeholders. The Working Group released a report titled, “Improving Public and Worker Safety at Oil Refineries” (Report) in February 2014 and the recommendations included creating an Interagency Refinery Task Force within CalEPA by September 1, 2013, to coordinate agencies’ activities and carry out the recommendations in this report. As a result of this Report, CalEPA did create the Task Force and began implementing the recommendations in the Report.

Regulatory changes as a result of Task Force recommendations: Since the release of the Report, the California Office of Emergency Services (OES) and the California Department of Industrial Relations/Division of Occupational Safety and Health (DIR) have proposed regulatory amendments to implement recommendations within the Report. Both of the regulations by OES and DIR have been in the process since 2016 and will hopefully be finalized in 2017.

Over 10 different state and local agencies have regulatory oversight in some form at refineries in California. If there is an issue with a refinery, it is often complicated to discern who in state government is responsible. The Task Force first established by CalEPA and envisioned being permanently established within AB 1649, solves the problem of who is in charge and requires collaboration among the state agencies with a role at refineries in order to better protect human health, worker health, and the environment. When looking at facilities as complex as refineries, having collaboration among state and local agencies is vital. By requiring that these multiple agencies better coordinate their regulatory work at refineries, AB 1649 ensures that the efforts of the Task Force continue in order to better protect communities, workers, and the environment at and near refineries.

REGISTERED SUPPORT / OPPOSITION:

Support

California State Association of Electrical Workers

California State Pipe Trades Council

Opposition

None on file.

Analysis Prepared by: Josh Tooker / E.S. & T.M. /