Section § 4451

Explanation

This section defines key terms related to propane distribution and safety regulations. A "supplier" is someone who sells and delivers propane, but isn't a public utility. A "distribution system" is a network of pipes serving multiple customers, like those in a city or mobile home park, which isn't operated by a public utility. An "operator" refers to the owner or manager of the mobile home park or distribution system. "Tank" is the storage container for propane. The "Department" is the Department of Housing and Community Development, while "local enforcement agency" refers to local city or county authorities enforcing safety codes. "Federal law" covers specific U.S. pipeline safety acts and regulations. "Propane" is also known as LPG. "NFPA 58" is a national safety standard for propane. The "Commission" means the Public Utilities Commission, and "General Order (GO) 112" outlines rules for utility systems, incorporating federal laws. "Public place" refers to areas where the system serves two or more users under public land. Finally, "trust fund" is for propane safety inspections.

As used in this chapter:
(a)CA Public Utilities Code § 4451(a) “Supplier” means a person or corporation, other than a public utility, who sells propane and arranges for its delivery to the operator’s tank.
(b)CA Public Utilities Code § 4451(b) “Distribution system” means a system of pipes, operated by a person or corporation other than a public utility, serving 10 or more customers, within a citywide area, an apartment house, a condominium, a cluster of homes, a shopping center, a combination of any of the above, a mobilehome park with two or more customers, or any system if a portion of the system is located in a public place, which is connected to a tank or tanks, for the purpose of distribution of propane to the end customers.
(c)CA Public Utilities Code § 4451(c) “Operator” means the owner of the mobilehome park or the distribution system, or the designated responsible employee, manager, or legal representative.
(d)CA Public Utilities Code § 4451(d) “Tank” means a vessel for the storage and distribution of propane.
(e)CA Public Utilities Code § 4451(e) “Department” means the Department of Housing and Community Development.
(f)CA Public Utilities Code § 4451(f) “Local enforcement agency” means the city, county, or city and county that has assumed the responsibility for the enforcement of Chapter 2 (commencing with Section 18300) of Part 2.1 of Division 13 of the Health and Safety Code.
(g)CA Public Utilities Code § 4451(g) “Federal law” or “federal pipeline standards” means the Federal Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. Sec. 1671 et seq.) and the regulations contained in Parts 190, 191, and 192 of Title 49 of the Code of Federal Regulations.
(h)CA Public Utilities Code § 4451(h) “Propane” means propane gas, also known as liquid petroleum gas or LPG.
(i)CA Public Utilities Code § 4451(i) “NFPA 58” means National Fire Protection Association Standard number 58, which covers rules and standards for propane service. The Legislature finds and declares that NFPA 58 is overseen by a national committee that ensures that the standard incorporates the latest in current and approved technology.
(j)CA Public Utilities Code § 4451(j) “Commission” means the Public Utilities Commission.
(k)CA Public Utilities Code § 4451(k) “General Order (or GO) 112” means the commission’s general order that sets out rules governing design, construction, testing, maintenance, and operation of utility gas gathering, transmission, and distribution piping systems. GO 112 incorporates, by reference, all the pertinent federal laws defined in subdivision (g).
(l)CA Public Utilities Code § 4451(l) “Public place” means any system supplying two or more customers where any portion is under a public right of way.
(m)CA Public Utilities Code § 4451(m) “Trust fund” means the propane safety inspection and enforcement trust fund established pursuant to Section 4462.

Section § 4452

Explanation

This law requires the commission to set up a safety inspection and enforcement program for propane distribution systems by July 1, 1995. The goal is to ensure compliance with federal pipeline safety standards with the option to adopt even stricter rules to protect customer health and safety. Inspectors are authorized to enter properties and inspect propane systems and related documents and equipment.

However, the program does not cover certain uses of propane, like single tanks serving single customers, small systems (fewer than 10 customers) that aren't in public places, recreational vehicles, vehicular fuel, certain agricultural or commercial uses, and propane cylinder exchanges.

(a)CA Public Utilities Code § 4452(a) On or before July 1, 1995, the commission shall undertake a propane safety inspection and enforcement program for propane distribution systems to ensure compliance with the federal pipeline standards by propane operators within the state. The commission may adopt rules, which shall be at least as stringent as the federal law, in order to protect the health and safety of customers served by propane distribution systems. Nothing in this chapter prohibits the commission from adopting more stringent standards than those in the federal pipeline standards.
(b)CA Public Utilities Code § 4452(b) As part of this propane safety inspection and enforcement program, the commission inspectors may:
(1)CA Public Utilities Code § 4452(b)(1) Enter public or private property as is necessary to carry out this chapter.
(2)CA Public Utilities Code § 4452(b)(2) Enter and inspect all propane distribution systems, wherever situated, and inspect all documents (including those records listed in subdivision (a) of Section 4453), accommodations, equipment, or paraphernalia used in connection with or related to the distribution system.
(c)CA Public Utilities Code § 4452(c) The commission’s propane safety inspection and enforcement program shall not cover propane used by any of the following:
(1)CA Public Utilities Code § 4452(c)(1) Single customers served by single tanks.
(2)CA Public Utilities Code § 4452(c)(2) Distribution systems, other than mobilehome parks, that serve less than 10 customers, unless any portion of the system is located in a public place.
(3)CA Public Utilities Code § 4452(c)(3) Recreational vehicles and appliances.
(4)CA Public Utilities Code § 4452(c)(4) Vehicular fuel.
(5)CA Public Utilities Code § 4452(c)(5) Agricultural, commercial serving less than 10 customers, unless a portion of the system is located in a public place, industrial, and refinery systems.
(6)CA Public Utilities Code § 4452(c)(6) Cylinder exchange operations.

Section § 4453

Explanation

This section explains that the commission must inspect propane distribution systems to ensure safety compliance. Each system gets an initial on-site inspection to determine if it should be part of the commission's safety program. If it doesn't qualify, the check ends there. If it does, the inspection will include reviewing plans, maps, reports, and maintenance records.

Future inspections occur every seven years or more often if issues arise. If a system shows compliance, it follows a risk-based schedule; if not, it may face annual reviews until it does. Frequent inspections can happen if safety hazards like propane leaks are detected, and immediate corrections are needed.

Operators need to assist inspectors during these checks by providing access and necessary records. Blocking an inspector is a violation, and the commission can issue citations for non-compliance. Systems serving more than nine customers or in public spaces must be part of the safety program.

(a)CA Public Utilities Code § 4453(a) The commission shall conduct an initial inspection of each distribution system which shall take place on the premises. The inspection shall determine if the distribution system falls under the commission’s safety program pursuant to paragraph (2) of subdivision (c) of Section 4452. If it is determined that it does not, then the inspection shall be terminated immediately. Otherwise, the inspection, and all followup inspections, shall consist of all of the following:
(1)CA Public Utilities Code § 4453(a)(1) A review of the adequacy of the operator’s operation and maintenance plan, emergency plan, and system map or maps.
(2)CA Public Utilities Code § 4453(a)(2) Evaluation of the information contained in the required annual report.
(3)CA Public Utilities Code § 4453(a)(3) A review of the records of leak surveys and repairs, corrosion control, and cathodic protection of the system.
(4)CA Public Utilities Code § 4453(a)(4) If deemed appropriate from the review of the records, a physical inspection of the propane distribution system to ensure compliance with the federal law, the applicable sections of General Order 112 relating to the distribution system, NFPA 58, and any rules and orders adopted by the commission pursuant to this chapter.
(b)CA Public Utilities Code § 4453(b) If the operator demonstrates compliance pursuant to subdivision (a), the distribution system shall thereafter be inspected at least once every seven years pursuant to a risk-based inspection schedule adopted by the commission. The subsequent inspections shall consist of the elements specified in subdivision (a). However, the commission may institute an inspection for a distribution system of any size, at any time, if it determines, following a review of a subsequent annual report or receipt of a complaint, that an additional inspection is necessary.
(c)CA Public Utilities Code § 4453(c) If the operator does not demonstrate compliance pursuant to subdivision (a), the distribution system may be inspected on an annual basis until such time as there is compliance, and thereafter, shall be inspected as specified in subdivision (b).
(d)CA Public Utilities Code § 4453(d) If upon the initial inspection or any subsequent inspection, the commission determines the presence of a propane leak or other safety hazard in the distribution system that poses a significant or immediate danger to the health and safety of the customers, the distribution system may be inspected more frequently until the condition is corrected. Once corrected, the distribution system shall be inspected as specified in subdivision (b).
(e)CA Public Utilities Code § 4453(e) The commission may require an operator to provide necessary assistance to commission inspectors in entering and inspecting the distribution systems, including, but not limited to:
(1)CA Public Utilities Code § 4453(e)(1) Allowing commission inspectors entry to the premises.
(2)CA Public Utilities Code § 4453(e)(2) Having, upon notice, the necessary records specified in subdivision (a) available for the commission inspector’s review during the physical inspection.
(3)CA Public Utilities Code § 4453(e)(3) Assisting in surveying or uncovering portions of the distribution systems for purposes of inspection, verification, and testing.
(f)CA Public Utilities Code § 4453(f) It shall be a violation for an operator to willfully obstruct a commission inspector’s access, entry, or inspection of a distribution system or to remove a warning tag placed on the operator’s tank by a commission inspector pursuant to subdivision (b) of Section 4456.
(g)CA Public Utilities Code § 4453(g) The commission may enforce subdivision (f) by issuing a citation in the manner specified in subdivision (b) of Section 4457, and shall notify the department or local enforcement agency, the supplier serving the distribution system, the State Fire Marshal, local fire districts, and the operator of any citation issued pursuant to this subdivision.
(h)CA Public Utilities Code § 4453(h) If the commission determined, upon inspection or a receipt of a complaint or disclosure, that a distribution system pursuant to paragraph (2) of subdivision (c) of Section 4452 is serving more than nine customers, or if any portion of the system is located in a public place, then the distribution system shall be subject to the commission’s safety program as set forth in this chapter.

Section § 4454

Explanation

This law mandates certain system operators to submit an annual report about their distribution systems to the commission by March 31, covering the previous year. Specifically, operators of systems serving 10 or more units or those located in public spaces, excluding mobilehome parks, must comply. Mobilehome parks submit their reports with their annual operating permit applications.

The report must be on forms specified by the commission, which will be developed with input from relevant parties to ensure only necessary information is collected. Upon receiving the report, the commission will review it for violations of federal pipeline safety laws or commission regulations, and may inspect systems to verify compliance.

(a)CA Public Utilities Code § 4454(a) Every operator of a system serving 10 or more units or where any portion of the system is located in a public place, with the exception of mobilehome parks operators, shall prepare and submit to the commission annually a report on the distribution system. The report shall be submitted by March 31 of each year and shall cover the previous calendar year.
(b)CA Public Utilities Code § 4454(b) In the case of mobilehome parks, the report shall be submitted to the commission at the same time the annual application for a permit to operate the mobilehome park is submitted to the department or the local enforcement agency.
(c)CA Public Utilities Code § 4454(c) The report shall be prepared using a form or forms required by the commission, and shall contain the information the commission finds necessary to carry out the intent of this chapter. In developing the form or forms, the commission shall consult with interested parties to ensure that the form contains no more than the necessary and appropriate information to carry out the intent of this chapter.
(d)CA Public Utilities Code § 4454(d) Upon receipt of the report, the commission shall examine the report for violations of either applicable federal pipeline safety laws or regulations or any applicable commission rules or orders. The commission may inspect the operator’s distribution system for the purpose of verifying whether or not a violation of federal or state pipeline safety laws or regulations, or NFPA 58 rules, has occurred or is occurring.

Section § 4454.5

Explanation

This law requires operators of distribution systems to keep detailed records, including maps of the system, annual reports, leak and repair records, and emergency plans. When the distribution system is sold or transferred, these records must be given to the new operator.

New operators don't face penalties if they haven't received these records from the previous operator or if they lack them before this law was effective.

(a)CA Public Utilities Code § 4454.5(a) Every operator shall maintain all of the following:
(1)CA Public Utilities Code § 4454.5(a)(1) A map, drawing, or diagram that indicates the location of the distribution system’s main and service lines, tank (or tanks), regulators, the identity and location of key valves, and the identity of the supplier.
(2)CA Public Utilities Code § 4454.5(a)(2) A copy of each annual report that has been submitted pursuant to the federal law or this chapter.
(3)CA Public Utilities Code § 4454.5(a)(3) A copy of any record of leak surveys and repairs, corrosion control, and cathodic protection of the system.
(4)CA Public Utilities Code § 4454.5(a)(4) An operation and maintenance plan, and an emergency plan.
(b)CA Public Utilities Code § 4454.5(b) The information and records listed in subdivision (a) shall be provided to any subsequent operator of the distribution system upon the sale, transfer, or other conveyance of title to the distribution system.
(c)CA Public Utilities Code § 4454.5(c) Notwithstanding any other provision of law, there shall be no penalty pursuant to Section 4457 imposed upon a subsequent operator of the distribution system who has not received the information and records listed in subdivision (a) from the transferring operator or upon any operator who fails to have the information and records for any period on or before the effective date of this section.

Section § 4455

Explanation

This law requires pipeline operators to receive a written report from the commission within 30 days after an inspection. The report will list any safety regulation violations. Operators must respond within another 30 days to confirm they received the report and explain how they plan to fix any issues, including when they expect to complete repairs.

Except as specified in Section 4456, after each inspection, the commission shall furnish the operator, or a representative designated in writing by the operator, with a written copy of the inspection report within 30 days of the inspection. The report shall indicate any violations of applicable federal or state pipeline safety regulations. The operator shall then file, within 30 days, a written response with the commission that acknowledges receipt of the report and specifies a compliance plan for correcting the safety violations, including, if appropriate, a timetable for completing necessary repairs or improvements to the distribution system.

Section § 4456

Explanation

If a propane leak or another safety hazard is found in a distribution system, the commission will notify the supplier, operator, customers, and local authorities. The operator must quickly fix the issue and get the necessary permits from local agencies. If the operator doesn't comply, the commission can place warning tags or stop propane supply until the problem is resolved. The operator is responsible for repair costs.

(a)CA Public Utilities Code § 4456(a) If the commission determines the presence of a propane leak or other safety hazard in the distribution system, which poses a significant or immediate danger to the health and safety of the distribution system’s customers, it shall notify the supplier serving the distribution system; the operator, who shall provide notice to the affected customers; and local authorities, as deemed necessary.
(b)CA Public Utilities Code § 4456(b) The commission shall require the operator to take immediate steps to correct and repair the propane leak or other hazard. The operator of a mobilehome park shall obtain permits from the department or local enforcement agency, as required by Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code. Other operators shall obtain permits from local agencies, such as the county or fire district. The commission may place a warning tag on the tank, may direct the serving supplier to terminate service to the tank, and may direct other local suppliers not to serve the tank, if an operator does not comply with this requirement. The cost of repair or corrective action shall be borne by the operator.

Section § 4457

Explanation

This law section details the penalties and enforcement actions for operators who violate specific rules or fail to submit required reports or comply with directives. These operators can be fined up to $1,000 per day, with a maximum of $200,000 for ongoing violations. The commission can issue citations for these violations, especially if they pose immediate health and safety risks, and the operator is responsible for fixing the issues. Citations can be personally delivered or mailed, detailing the violation and compliance deadline. Operators can request an informal meeting to dispute citations. These penalties add to, but do not replace, other legal sanctions, and do not change the operator's liability for any potential civil claims.

(a)CA Public Utilities Code § 4457(a) Any operator who commits a violation enumerated in subdivision (f) of Section 4453 or who fails to file the report required by Section 4454 or fails to comply with a directive of the commission pursuant to Section 4456 is subject to a civil penalty of not more than one thousand dollars ($1,000) for each day that the violation, or failure to file the report or respond to the directive continues, but not to exceed two hundred thousand dollars ($200,000) for a single violation or related series of violations. The commission shall enforce this subdivision.
(b)CA Public Utilities Code § 4457(b) The commission may enforce subdivision (a) in the following manner:
(1)CA Public Utilities Code § 4457(b)(1) By issuing a citation to the operator, as defined by Section 18603 of the Health and Safety Code. In the event of a violation that constitutes a significant or immediate danger to the health and safety of the customers, the citation shall be issued immediately and served upon the responsible person or the holder of the permit to operate the distribution system. The operator shall be responsible for the correction of any violations for which a citation has been given pursuant to this subdivision.
(2)CA Public Utilities Code § 4457(b)(2) Service of the citation shall be effected either personally or by first-class mail. Each citation shall be in writing and shall describe with particularity the nature of the violation, including a reference to the statutory provisions or regulations alleged to have been violated, as well as any penalty provided by law for failure to make a timely correction. The citation shall fix the earliest feasible time, as determined by the commission, for the elimination of the condition constituting the alleged violation.
(3)CA Public Utilities Code § 4457(b)(3) A distribution system operator may request an informal conference with the commission staff to challenge any citation alleging a violation, or any directive to correct a violation. The informal conference, any subsequent hearings, or appeals of a decision of the commission shall be conducted in accordance with the rules and procedures prescribed by the commission.
(c)CA Public Utilities Code § 4457(c) The remedies provided by this chapter are cumulative and shall not be construed to supersede other provisions of law providing sanctions for violators of this chapter, including, but not limited to, Sections 2112 and 2113.
(d)CA Public Utilities Code § 4457(d) Nothing in this chapter affects the tort liability of the operator of a distribution system.

Section § 4458

Explanation

This law requires propane distributors with distribution systems to pay a surcharge when they buy propane. It's meant to help cover the costs of inspecting and enforcing propane safety standards and managing the surcharge itself. This fee is added per space or lot and cannot exceed 25 cents per month, collected yearly. The funds go into a specific trust fund for these purposes, and operators can pass this surcharge onto their customers, but not more than the actual surcharge amount.

(a)CA Public Utilities Code § 4458(a) The commission shall establish a surcharge to be paid by operators with distribution systems subject to this chapter on propane purchased for distribution to their customers. The surcharge shall be designed to partially recover the commission’s costs of the propane safety inspection and enforcement program required by this chapter, and to partially recover the commission’s costs of collecting and administering the surcharge. The commission shall collect the surcharge from the operators and deposit it into the Propane Safety Inspection and Enforcement Program Trust Fund, for transfer to the commission’s Utilities Reimbursement Account in the General Fund, which shall be used, upon appropriation by the Legislature, for purposes of Chapter 4.1 (commencing with Section 4451) of Division 2 of the Public Utilities Code. The surcharge shall be assessed on a per space or lot basis, shall not exceed twenty-five cents ($0.25) per month, and shall be collected by the commission on an annual basis.
(b)CA Public Utilities Code § 4458(b) Notwithstanding any other provision of law or local ordinance, rule, regulation, or initiative measure, the operator shall be entitled to recover the surcharge collected pursuant to subdivision (a) from its customers. However, the charge to any customer, to allow for the operator’s recovery, shall not exceed the actual surcharge.

Section § 4459

Explanation
The commission has the authority to create rules and orders to implement the provisions of this chapter.
The commission may adopt rules and orders to carry out this chapter.

Section § 4460

Explanation

This section requires a propane distribution system operator to post current emergency phone numbers, such as those for the supplier and fire department, at the premises. They must also keep and inform customers about emergency procedures in case of a propane leak or other hazards.

If an operator does not follow these rules, they face penalties. The commission is responsible for enforcing these regulations.

(a)CA Public Utilities Code § 4460(a) In each distribution system, the operator shall post on the premises the current emergency telephone numbers for, at a minimum, the operator, the supplier, the fire department, and the responsible person as defined by Section 18603 of the Health and Safety Code, and shall maintain on the premises a copy of the emergency procedures that shall be used in the event there is a propane leak or other safety hazard in the distribution system. The operator shall inform each of the customers of the location of these emergency telephone numbers and the emergency procedure.
(b)CA Public Utilities Code § 4460(b) Any operator who fails to comply with subdivision (a) shall be subject to the same penalty set forth in subdivision (a) of Section 4457. The commission shall enforce this subdivision pursuant to subdivision (b) of Section 4457.

Section § 4461

Explanation

This law required that by January 1, 1996, California adopt the 1992 edition of the NFPA 58 Standard for the Storage and Handling of Liquefied Petroleum Gases. This standard was meant to replace any conflicting state rules. However, California's Occupational Safety and Health Standards Board can still create stricter rules than those in NFPA 58 if they choose.

Prior to January 1, 1996, the Occupational Safety and Health Standards Board shall adopt by reference the 1992 edition of NFPA 58 Standard for the Storage and Handling of Liquified Petroleum Gasses, or as that 1992 edition may be subsequently amended or supplemented. It is the intent of the Legislature that the NFPA 58 Standard supersede any inconsistent state standards, including, but not limited to, Sections 470 to 494, inclusive, of Chapter 4 of Title 8 of the California Administrative Code. Nothing in this section prohibits the Occupational Safety and Health Standards Board from adopting more stringent standards than those in NFPA 58.

Section § 4462

Explanation

This law establishes a trust fund called the propane safety inspection and enforcement program trust fund. The fund is managed by the commission and is used to help finance the propane safety inspection and enforcement efforts of the commission.

(a)CA Public Utilities Code § 4462(a) This chapter hereby creates a trust fund known as the propane safety inspection and enforcement program trust fund. The trust fund shall be administered by the commission.
(b)CA Public Utilities Code § 4462(b) The trust fund shall be used to partially support the funding requirements of the propane safety inspection and enforcement program of the commission pursuant to this chapter.

Section § 4463

Explanation

This law states that the rules in this chapter will not be put into action unless the Public Utilities Commission gets enough money from the federal government every year. Its purpose is to ensure that California consumers only pay charges set by the law and not any extra ones.

Notwithstanding any other provision of law, this chapter, as added by Chapter 388 of the Statutes of 1994, shall not be implemented unless sufficient federal funding has been annually appropriated to the Public Utilities Commission to ensure that only those charges specifically fixed by law, and no additional charges shall, directly or indirectly, be passed on to California consumers.

Section § 4464

Explanation

This section specifies that the commission is responsible for managing a trust fund by identifying operators and collecting surcharges from them. They can use a balancing account to address any over or undercollection each year. Certain uses of propane are exempt from surcharge collection, including agricultural uses, small commercial operations, recreational vehicles, vehicular fuel, single customer tanks, small distribution systems, and cylinder exchanges.

(a)CA Public Utilities Code § 4464(a) The commission in administering the trust fund, shall be responsible for the identification of the pertinent operators and for the collection of the surcharges from the operators.
(b)CA Public Utilities Code § 4464(b) The commission may use a balancing account, in conjunction with the trust fund, to account for any overcollection or undercollection on a yearly basis.
(c)CA Public Utilities Code § 4464(c) The commission’s administrative responsibility and surcharge collection shall exempt all propane used by the following:
(1)CA Public Utilities Code § 4464(c)(1) Agricultural, commercial serving less than 10 customers unless a portion of the system is located in a public place, industrial, and refinery systems.
(2)CA Public Utilities Code § 4464(c)(2) Recreational vehicles and appliances.
(3)CA Public Utilities Code § 4464(c)(3) Vehicular fuel.
(4)CA Public Utilities Code § 4464(c)(4) Single customers served by single tanks.
(5)CA Public Utilities Code § 4464(c)(5) Distribution systems, other than mobilehome parks, which serve less than 10 customers, unless a portion of the system is located in a public place.
(6)CA Public Utilities Code § 4464(c)(6) Cylinder exchange operations.

Section § 4465

Explanation

This law states that if an operator doesn't pay the required surcharge for 30 days or more, the commission can estimate the fee based on available information and add a penalty up to 25% for not paying on time. The operator can't dispute the commission's estimated amount.

The commission can also take legal action in court to collect these unpaid fees along with the penalty.

(a)CA Public Utilities Code § 4465(a) If any operator subject to this chapter is in default of the payment of the surcharge required by this chapter for a period of 30 days or more, the commission may estimate from all available information the appropriate fee and may add to the amount of the estimated fee a penalty not to exceed 25 percent of the amount on account of the failure, refusal, or neglect to pay the fee, and the operator shall be estopped to complain of the amount of the commission’s estimate.
(b)CA Public Utilities Code § 4465(b) The commission may bring an action, in its own name or in the name of the people of the state, in any court of competent jurisdiction, for the collection of delinquent fees estimated under subdivision (a) of this section, together with a penalty of 25 percent for the delinquency.