Bill Text: CA SB295 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Pipeline safety: inspections.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2015-10-08 - Chaptered by Secretary of State. Chapter 607, Statutes of 2015. [SB295 Detail]

Download: California-2015-SB295-Amended.html

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BILL NUMBER: SB 295	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 24, 2015

INTRODUCED BY   Senator  De León   Jackson 

    (   Principal coauthor:   Assembly Member
 Williams   ) 

                        FEBRUARY 23, 2015

    An act to amend Sections 17053.86 and 23686 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.   An act to amend Section 51013.5
of, and to add Section 51015.1 to, the Government Code, relating to
pipeline safety. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 295, as amended,  De León   Jackson 
.  College Access Tax Credit Fund.   Pipeline
safety: inspections.  
   Under the Elder California Pipeline Safety Act of 1981, the State
Fire Marshal exercises safety regulatory jurisdiction over intrastate
pipelines used for the transportation of hazardous or highly
volatile liquid substances. The act authorizes the State Fire Marshal
to exercise safety regulatory jurisdiction over portions of
interstate pipelines located within the state and subject to an
agreement between the United States Secretary of Transportation and
the State Fire Marshal. The act requires those pipelines over 10
years of age to be hydrostatically tested every 3 or 5 years, as
provided, except that high-risk pipelines, as designated by the State
Fire Marshall, are to be tested every 2 years or annually, as
provided.  
   This bill would require the State Fire Marshal, or an officer or
employee authorized by the State Fire Marshal, to annually inspect
all operators of intrastate pipelines under the jurisdiction of the
State Fire Marshal. The bill would require pipelines over 5 years of
age to be hydrostatically tested every 2 or 3 years, as provided, and
would require all designated high-risk pipelines to be tested
annually. The bill would require the State Fire Marshall, to the
maximum extent possible, to become an inspection agent by entering
into an agreement with the federal Pipeline and Hazardous Materials
Safety Administration, as specified. The bill would require the State
Fire Marshall to revise specified fees assessed to cover the costs
associated with this measure. The bill would also delete obsolete
provisions.  
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws, including,
for taxable years beginning on or after January 1, 2014, and before
January 1, 2017, a credit equal to a certain percentage of a
contribution to the College Access Tax Credit Fund for specified
education purposes, as provided.  
   This bill would extend the allowance of these credits to taxable
years beginning before January 1, 2018.  
   This bill would take effect immediately as a tax levy. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 51013.5 of the  
Government Code   is amended to read: 
   51013.5.  (a) Every newly constructed pipeline, existing pipeline,
or part of a pipeline system that has been relocated or replaced,
and every pipeline that transports a hazardous liquid substance or
highly volatile liquid substance, shall be tested in accordance with
Subpart E (commencing with Section 195.300) of Part 195 of Title 49
of the Code of Federal Regulations.
   (b) Every pipeline not provided with properly sized automatic
pressure relief devices or properly designed pressure limiting
devices shall be hydrostatically tested annually.
   (c) Every pipeline over  10   five 
years of age and not provided with effective cathodic protection
shall be hydrostatically tested every  three  
two  years, except for those on the State Fire Marshal's list of
higher risk pipelines, which shall be hydrostatically tested
annually.
   (d) Every pipeline over  10   five 
years of age and provided with effective cathodic protection shall be
hydrostatically tested every  five   three
 years, except for those on the State Fire Marshal's list of
higher risk pipelines which shall be hydrostatically tested 
every two years.   annually. 
   (e) Piping within a refined products bulk loading facility served
by pipeline shall be tested hydrostatically at 125 percent of maximum
allowable operating pressure utilizing the product ordinarily
transported in that piping if that piping is operated at a stress
level of 20 percent or less of the specified minimum yield strength
of the pipe. The frequency for pressure testing these pipelines shall
be every five years for those pipelines with effective cathodic
protection and every three years for those pipelines without
effective cathodic protection. If that piping is observable, visual
inspection may be the method of testing. 
   (f) Beginning on July 1, 1990, and continuing until the
regulations adopted by the State Fire Marshal pursuant to subdivision
(g) take effect, each pipeline within the State Fire Marshal's
jurisdiction which satisfies any of the following sets of criteria
shall be placed on the State Fire Marshal's list of higher risk
pipelines until five years pass without a reportable leak due to
corrosion or defect on that pipeline. Initially, pipelines on that
list shall be tested by the next scheduled test date, or within two
years of being placed on the list, whichever is first. On July 1,
1990, pipeline operators shall provide the State Fire Marshal with a
list of all their pipelines which satisfy the criteria in this
subdivision as of July 1, 1990. If any pipeline becomes eligible for
the list of higher risk pipelines after that date, the pipeline
company shall report that fact to the State Fire Marshal within 30
days, and the pipeline shall be placed on the list retroactively to
the date on which it became eligible for listing. Pipelines which are
found to belong on the list, but are not so reported by the operator
to the State Fire Marshal, shall be placed on the list
retroactively. Operators failing to properly report their pipelines
shall be subject to penalties under Section 51018.6. Pipelines not
covered under the risk criteria developed pursuant to subdivision (g)
shall be deleted from the list when regulations are adopted pursuant
to that subdivision. For purposes of this subdivision, a leak which
is traceable to an external force, but for which corrosion is partly
responsible, shall be deemed caused by corrosion, "defect" refers to
manufacturing or construction defects, and "leak" or "reportable leak"
means a rupture required to be reported pursuant to Section 51018.
As long as all pipelines are tested in their entirety at least as
frequently as standard risk pipelines under subdivisions (c) and (d),
it shall suffice for additional tests on higher risk pipelines to
cover 20 pipeline miles in all directions along an operator's
pipeline from the position of the leak or leaks which led to the
inclusion or retention of that pipeline on the higher risk list. The
interim list shall include pipelines which meet any of the following
criteria:  
   (1) Have suffered two or more reportable leaks, not including
leaks during a certified hydrostatic pressure test, due to corrosion
or defect in the prior three years.  
   (2) Have suffered three or more reportable leaks, not including
leaks during a certified hydrostatic pressure test, due to corrosion,
defects, or external forces, but not all due to external forces, in
the prior three years.  
   (3) Have suffered a reportable leak, except during a certified
hydrostatic pressure test, due to corrosion or defect of more than
50,000 gallons, or 10,000 gallons in a standard metropolitan
statistical area, in the prior three years; or have suffered a leak
due to corrosion or defect which the State Fire Marshal finds has
resulted in more than 42 gallons of a hazardous liquid within the
State Fire Marshal's jurisdiction entering a waterway in the prior
three years; or have suffered a reportable leak of a hazardous liquid
with a flashpoint of less than 140 degrees Fahrenheit, or 60 degrees
centigrade, in the prior three years.  
   (4) Are less than 50 miles long, and have experienced a reportable
leak, except during a certified hydrostatic pressure test, due to
corrosion or a defect in the prior three years. For the purposes of
this paragraph, the length of a pipeline with more than two termini
shall be the longest distance between two termini along the pipeline.
 
   (5) Have experienced a reportable leak in the prior five years due
to corrosion or defect, except during a certified hydrostatic
pressure test, on a section of pipe more than 50 years old. For
pipelines which fall in this category, and no other category of
higher risk pipeline, additional tests required by this subdivision
shall be required only on segments of the pipe more than 50 years old
as long as all pipe more than 50 years old which is within 20
pipeline miles from the leak in all directions along an operator's
pipeline is tested.  
   (g) 
    (f)  The State Fire Marshal shall study indicators and
precursors of serious pipeline accidents, and, in consultation with
the Pipeline Safety Advisory Committee, shall develop criteria for
identifying which hazardous liquid pipelines pose the greatest risk
to people and the environment due to the likelihood of, and likely
seriousness of, an accident due to corrosion or defect. The study
shall give due consideration to research done by the industry, the
federal government, academia, and to any other information which the
State Fire Marshal shall deem relevant, including, but not limited
to, recent leak history, pipeline location, and materials
transported. Beginning January 1, 1992, using the criteria identified
in that study, the State Fire Marshal shall maintain a list of
higher risk pipelines, which exceed a standard of risk to be
determined by the State Fire Marshal, and which shall be tested as
required in subdivisions (c) and (d) as long as they remain on the
list.  By January 1, 1992, after public hearings, the State
Fire Marshal shall adopt regulations to implement this subdivision.
 
   (h) 
    (g)  In addition to the requirements of subdivisions (a)
to (e), inclusive, the State Fire Marshal may require any 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. 
   (i) 
    (h)  Test methods other than the hydrostatic tests
required by subdivisions (b), (c), (d), and (e), including inspection
by instrumented internal inspection devices, 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
subdivisions (b), (c), (d), and (e). 
   (j) 
    (i)  The State Fire Marshal shall adopt regulations
 before January 1, 1992,  to establish what the
State Fire Marshal deems to be an appropriate frequency for tests and
inspections, including instrumented internal inspections, which,
when permitted as a substitute for tests required under subdivisions
(b), (c), and (d), do not damage pipelines or require them to be shut
down for the testing period. That testing shall in no event be less
frequent than is required by subdivisions (b), (c), and (d). Each
time one of these tests is required on a pipeline, it shall be
approved on the same individual basis as under subdivision 
(i).   (h).  If it is not approved, a hydrostatic
test shall be carried out at the time the alternative test would have
been carried out, and subsequent tests shall be carried out in
accordance with the time intervals prescribed by subdivision (b),
(c), or (d), as applicable.
   SEC. 2.    Section 51015.1 is added to the  
Government Code   , to read:  
   51015.1.  (a) The State Fire Marshal, or an officer or employee
authorized by the State Fire Marshal, shall annually inspect all
operators of intrastate pipelines under the jurisdiction of the State
Fire Marshal to ensure compliance with applicable laws and
regulations.
   (b) For portions of interstate pipelines that are not under the
jurisdiction of the State Fire Marshal pursuant to Section 51010.6,
the State Fire Marshal shall, to the maximum extent possible, become
an inspection agent through entering into an interstate inspection
agent agreement with the federal Pipeline and Hazardous Materials
Safety Administration.
   (c) The State Fire Marshall shall revise the fee assessed pursuant
to Section 51019 to a level sufficient to cover the costs associated
with the implementation of this section and Section 51013.5, as
amended by the act adding this section.  
  SECTION 1.   Section 17053.86 of the Revenue and
Taxation Code is amended to read:
   17053.86.  (a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2018, there shall be allowed
as a credit against the "net tax," as defined in Section 17039, an
amount equal to the following:
   (A) For each taxable year beginning on and after January 1, 2014,
and before January 1, 2016, 60 percent of the amount contributed by
the taxpayer for the 2014 or 2015 taxable year to the College Access
Tax Credit Fund, as allocated and certified by the California
Educational Facilities Authority.
   (B) For each taxable year beginning on and after January 1, 2016,
and before January 1, 2017, 55 percent of the amount contributed by
the taxpayer for the 2016 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
   (C) For each taxable year beginning on and after January 1, 2017,
and before January 1, 2018, 50 percent of the amount contributed by
the taxpayer for the 2017 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
   (2) Contributions shall be made only in cash.
   (b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 23686 shall be an
amount equal to the sum of all of the following:
   (A) Five hundred million dollars ($500,000,000) in credits for the
2014 calendar year and each calendar year thereafter.
   (B) The amount of previously unallocated and uncertified credits.
   (2) (A) For purposes of this section, the California Educational
Facilities Authority shall do all of the following:
   (i) On or after January 1, 2014, and before January 1, 2018,
allocate and certify tax credits to taxpayers under this section.
   (ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
   (iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
   (B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
   (ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
regulation adopted by the California Educational Facilities Authority
pursuant to clause (i).
   (c) (1) In the case where the credit allowed by this section
exceeds the "net tax," the excess may be carried over to reduce the
"net tax" in the following year, and succeeding five years if
necessary, until the credit is exhausted.
   (2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
   (d) (1) The College Access Tax Credit Fund is hereby created as a
special fund in the State Treasury. All revenue in this special fund
shall be allocated as follows:
   (A) First to the General Fund in an amount equal to the aggregate
amount of certified credits allowed pursuant to this section and
Section 23686 for the taxable year. Funds allocated to the General
Fund shall be considered General Fund revenues for purposes of
Sections 8 and 8.5 of Article XVI of the California Constitution.
   (B) Second, upon appropriation, as follows:
   (i) To the Franchise Tax Board, the California Educational
Facilities Authority, the Controller, and the Student Aid Commission
for reimbursement of all administrative costs incurred by those
agencies in connection with their duties under this section, Section
23686, and Section 69432.7 of the Education Code.
   (ii) To the Student Aid Commission for purposes of awarding Cal
Grants to students pursuant to Section 69431.7 of the Education Code.

   (2) The tax credit allowed by subdivision (a) of this section and
subdivision (a) of Section 23686 for donations to the College Access
Tax Credit Fund shall be known as the College Access Tax Credit.
   (e) This section shall remain in effect only until December 1,
2018, and as of that date is repealed.  
  SEC. 2.    Section 23686 of the Revenue and
Taxation Code is amended to read:
   23686.  (a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2018, there shall be allowed
as a credit against the "tax," as defined in Section 23036, an amount
equal to the following:
   (A) For each taxable year beginning on and after January 1, 2014,
and before January 1, 2016, 60 percent of the amount contributed by
the taxpayer for the 2014 or 2015 taxable year to the College Access
Tax Credit Fund, as allocated and certified by the California
Educational Facilities Authority.
   (B) For each taxable year beginning on and after January 1, 2016,
and before January 1, 2017, 55 percent of the amount contributed by
the taxpayer for the 2016 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
   (C) For each taxable year beginning on and after January 1, 2017,
and before January 1,2018, 50 percent of the amount contributed by
the taxpayer for the 2017 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
   (2) Contributions shall be made only in cash.
   (b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 17053.86 shall be an
amount equal to the sum of all of the following:
   (A) Five hundred million dollars ($500,000,000) in credits for the
2014 calendar year and each calendar year thereafter.
   (B) The amount of previously unallocated and uncertified credits.
   (2) (A) For purposes of this section, the California Educational
Facilities Authority shall do all of the following:
   (i) On or after January 1, 2014, and before January 1, 2018,
allocate and certify tax credits to taxpayers under this section.
   (ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
   (iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
   (B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
   (ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
regulation adopted by the California Educational Facilities Authority
pursuant to clause (i).
   (c) (1) In the case where the credit allowed by this section
exceeds the "tax," the excess may be carried over to reduce the "tax"
in the following year, and succeeding five years if necessary, until
the credit is exhausted.
   (2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
   (d) This section shall remain in effect only until December 1,
2018, and as of that date is repealed.  
  SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.