Chapter 4.1Enforcement of Federal Pipeline Safety Standards for Propane Operators
Section § 4451
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.
Section § 4452
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.
Section § 4453
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.
Section § 4454
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.
Section § 4454.5
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.
Section § 4455
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.
Section § 4456
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.
Section § 4457
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.
Section § 4458
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.
Section § 4459
Section § 4460
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.
Section § 4461
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.
Section § 4462
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.
Section § 4463
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.
Section § 4464
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.
Section § 4465
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.