AND TRANSORTATION SAFETY WILL
COME TO ORDER. GOOD MORNING IN
RESPONSE TO THE COVERT NINETEEN
EMERGENCY AND TO PROTECT THE
PUBLIC LEGISLATORS AND
EMPLOYEES WE MUST LIMIT
NONESSENTIAL GATHER IN SENATOR
TO SOCIAL DISTANCING AND FACE
COVERING GUIDELINES. IN
COMPLIANCE WITH THOSE ORDERS
THE SENATE HAS MADE NECESSARY
ADJUSTMENTS TO NORMAL PRACTICES
IN ORDER TO ENSURE THAT THE
PUBLIC CONTINUES TO HAVE ACCESS
TO THE LEGISLATIVE PROCESS WE
ARE HOLDEN ARCS ARE COMMITTEE
HEARINGS HERE IN THE CAPITAL
WITH SOME OF OUR COMMITTEE
MEMBERS PARTICIPATING REMOTELY.
TODAY WE HAVE FOUR MEMBERS
PARTICIPATING REMOTELY SENATOR
BRADFORD SENATOR RUBIO SENATOR
STERN AND SENATOR WIENER WE
ALSO HAVE REPRESENTATIVES FROM
THE CITY OF SAN BRUNO THE
NATIONAL TRANSPORTATION SAFETY
BOARD AMERICA'S ASSET ADVISORY
THE UNIVERSITY OF CALIFORNIA
BERKELEY THE CPUC PG&E AND
SOCAL GAS WHO ARE ALSO
PARTICIPATING REMOTELY. FOR OUR
REMOTE PARTICIPANTS PLEASE MUTE
YOUR PHONES OR COMPUTERS THIS
WILL GREATLY AID IN ELIMINATING
THE ANY ACOUSTIC FEEDBACK I S.
IT EVERY TIME YOU WISH TO BE
RECOGNIZE IT USE THE RAISE YOUR
HAND IN THE PROGRAM. EACH TIME
YOU ARE RECOGNIZED TO SPEAK A
POP UP WINDOW WILL APPEAR
ASKING IF YOU WOULD LIKE TO ON
MUTE PLEASE SELECT ON MUTE
BEFORE YOU BEGIN SPEAKING R. I.
T. PERSONNEL WILL PUT YOU BACK
ON MUTE WHEN YOU ARE DONE. ONCE
RECOGNIZED TO SPEAK PLEASE MAKE
SURE YOU CAN BE SEEN ON THE
SCREEN STATE YOUR NAME AND THEN
YOU ARE READY TO ADDRESS THE
COMMITTEE TO ALLOW TE PUBLIC
ACCESS WE HAVE ADMITTED MEMBERS
OF THE PUBLIC TO TWO HEARING
ROOMS TO EXTEND TO THE EXTENT.
THAT SOCIAL DISTANCING
REQUIREMENTS ALLOW AND WILL BE
USING A TELECONFERENCE SERVICE
FOR THOSE INDIVIDUALS WHO WISH
TO TESTIFY TODAY. FOR ALL
INDIVIDUALS WISHING TO PROVIDE
PUBLIC COMMENT THE PARTICIPANT
TOLL FREE NUMBER AND ACCESS
CODE IS POSTED ON OUR COMMITTEE
WEBSITE IT WILL BE DISPLAYED ON
THE SCREEN AND I WILL ANNOUNCE
IT NOW. TODAY'S PARTICIPANT
NUMBER IS. 844-291-6364 ALL
REPEAT THAT EIGHT FOUR FOUR TWO
NINE ONE. SIX THREE SIX FOUR
AND THE ACCESS CODE WHICH IS
VERY IMPORTANT. ISSUE. TWO
EIGHT ZERO FIVE NINE SEVEN ZERO
THAT'S TWO EIGHT ZERO. FIVE
NINE SEVEN ZERO FOR DETAILED
INSTRUCTIONS ON HOW THE
TELECONFERENCES TEAM WORKS
PLEASE REFER TO THE SENATE AND
OR COMMITTEE WEBSITE. FOR
TODAY'S HEARING WE WILL BE HERE
IN ALL OF THE PANELS OF
WITNESSES ON THE AGENDA PRIOR
TO TAKING ANY PUBLIC COMMENT.
ONCE WE HAVE HEARD ALL OF THE
WITNESSES WE WILL HAVE A PUBLIC
COMMENT PERIOD FOR THOSE WHO
WISH TO COMMENT. ON THE TOPIC
ON TODAY'S AGENDA. PLEASE NOTE
THAT IN ORDER FOR US TO HEAR
YOU CLEARLY AND TO AVOID
ACOUSTIC FEEDBACK YOU MUST MUTE
THE DEVICE YOU ARE ALL
WATCHING. THE HEARING ON PRIOR
TO GIVING TESTIMONY OVER THE
PHONE. IT IS IMPORTANT THAT WE
HEAR FROM YOU AND WE THANK YOU
FOR YOUR PATIENCE TODAY. I WILL
MAINTAIN DECORUM DURING THE
HEARING AS IS CUSTOMARY. AND
ANY INDIVIDUAL WHOSE DISRUPTIVE
MAY BE REMOVED FROM THE REMOTE
TO MEETING SERVICE OR HAVE
THEIR CONNECTIONS MUTED. WHILE
EVERY EFFORT HAS BEEN MADE TO
STREAMLINE THE HEARING PROCESS
AND CONDUCT OUR HEARINGS IN AS
CLOSE TO THE SAME MANNER AS IS
CUSTOMARY. THERE MAY BE SOME
LAG TIME IS FOR PARTICIPANTS
WHO ARE ADJUSTING TO THE NEW
USE OF ONLINE TOOLS OR
TECHNOLOGIES. PLEASE BE
RESPECTFUL AND PATIENT SO ALL
INTERESTED PARTIES CAN BE HEARD.
SO TODAY WE CONVENE THIS
HEARING TO BOTH LOOK BACK AND
TO LOOK FORWARD. A LITTLE OVER
A MONTH AGO MARKET DECADE SINCE
A NATURAL GAS PIPELINE EXPLODED
IN THE CHRIS MORE NEIGHBORHOOD
IN SAN BRUNO. THAT EVENT TOOK
THE LIVES OF EIGHT OF MY
CONSTITUENTS GREATLY IMPACTED
THE COURSE OF MY LEGISLATIVE
WORK AND AFFECTED EVERYONE HERE
TODAY. I HOPE OUR DISCUSSION
CAN BE FOCUSED ON WHAT WE'VE
LEARNED AND THE PROGRESS THE
STATE HAS MADE SINCE. THE SAN
BRUNO EXPLOSION. AS WELL AS
WHAT MORE WE NEED TO DO WHERE
THE GAPS ARE AND HOW WE CAN
EFFECTIVELY FILL THEM. GUEST
SAFETY INCIDENTS PURCHASED. THE
TWO THOUSAND FIFTEEN LEAK AT
THE ALISO CANYON STORAGE
FACILITY. IN THE MAY TWENTY
NINETEEN ROOT CAUSE ANALYSIS OF
THE EVENT RAISED CONCERNS OVER
THE SAFETY PRACTICES AT SO CAL
GAS. LEASES OPERATOR. THE
TWENTY SEVENTEEN EXPLOSION. ON
SO CAL GAS LINE TO CAUSE
FURTHER CONSTRAINT TO SOUTHERN
CALIFORNIA'S NATURAL GAS SUPPLY
ONLY HEIGHTENED THOSE CONCERNS.
AND THE TWENTY EIGHTEEN
INVESTIGATIONS INTO P. GENIES
LOCATE AND MARK PROGRAM WHERE
YEARS OF MANAGERIAL PRESSURE
AND PROBLEMATIC FINANCIAL
INCENTIVES. LEAD TO DISTORTIONS
AND FALSIFICATION IN REPORTING.
AND THIS IS JUST THE GAS SIDE.
FIFTY TOUCHES ALL ASPECTS OF
UTILITIES ENTERPRISE LESSONS
LEARNED IN ONE SECTOR SHOULD BE
CARRIED INTO THE OTHER SECTORS.
WE'VE INVITED TO PANELS OF
EXPERTS TODAY TO DISCUSS THESE
ISSUES BOTH WHAT HAPPENED IN
THE PAST. AND HOW THESE LESSONS
SHOULD INFORM FUTURE DECISION
MAKING. NOW I'D LIKE TO TURN TO
THE MEMBERS WHO ARE ONLINE WHO
MAY HAVE OPENING STATEMENTS
THAT THEY WOULD LIKE TO MAKE.
THANK SENATOR. GOOD MORNING.
GOOD MORNING SENATOR SHARE
WELCOME THANK YOU. ARE YOU HAVE
A VERY BRIEF OPENING REMARK
WHICH IS JUST TO EXPRESS MY
GRATITUDE FOR YOUR CONTINUED
VIGILANCE OVER THE COURSE OF
YOUR CAREER EVEN INTO THIS
FINAL FINAL CHUNK OF THE HOME
STRETCH AND I JUST WANT TO. I
PLEDGE MY CONTINUED VIGILANCE
ON YOUR BEHALF TO SEE THIS
CHANGE IN SAFETY CULTURE NOT
JUST AT OUR INVESTOR OWNED
UTILITIES BUT AT THE PUBLIC
UTILITIES COMMISSION THROUGH-
IN YOUR ABSENCE BUT SINCERELY
APPRECIATE YOUR DILIGENCE NOT
JUST ON PEOPLE BUT YOU HAVE THE
PEOPLE YOU REPRESENT IN SAN
BRUNO IN THE BAY AREA BUT FOR
EVERYONE DOWN HERE IN OUTHERN
CALIFORNIA RATEPAYERS AND
RESIDENTS ALIKE- IT'S A- IT'S A-
TRUE. SENATE PUBLIC SERVICE
YOU'VE DONE HERE TODAY AND I- I
LOOK FORWARD TO ENGAGING FOR
THE PANELS. THANK YOU SENATOR
STERN AND THANK YOU FOR YOUR
HARD WORK AND COMMITMENT AND
DEDICATION TO. THE ISSUES THAT-
ARE RELATED TO OUR
INFRASTRUCTURE ESPECIALLY GAS
IS OBVIOUSLY YOU SUFFERED IN
YOUR DISTRICT SUFFERED
CONSIDERABLY DURING THE EARLY
SHOW CANYON. OF CHALLENGES AND
PROBLEMS IN THAT- HORRENDOUSLY
COME A COUPLE OF YEARS AGO SO
THANK YOU AND THANK YOU FOR THE
COMMITMENT FOR THE FUTURE
ALBIA. I'LL BE WATCHING
CAREFULLY ON THAT ONE- OF THE
TO SEE IF WE HAVE ANYONE ELSE
IT'S A IS WISHING TO SPEAK I
SEE NO ONE AT THIS POINT VERY
GOOD. C. O. M. SO I WOULD NOW
LIKE TO ACKNOWLEDGE- MAYOR RICO
MEDINA THE FROM THE CITY OF SAN
BRUNO TO MAKE AN OPENING
STATEMENT- MAYOR MEDINA THIS IS
A LONG TIME PUBLIC SERVANT HE'S
A GOOD FRIEND OF MINE A FRIEND
OF THE CITY OF SAN BRUNO AND-
SOMEONE WHOSE LEADERSHIP REALLY
EXCELLED DURING THE- THE
TRAGEDY OF TEN YEARS AGO AND
NOT JUST WITH DURING THAT.
BRIEF MOMENT IN TIME WHEN WE
SAW AND WITNESSED AND
EXPERIENCED THE EXPLOSION
BEFORE THE YEARS AFTER IN HIS
FIGHT IN THE CITY'S FIGHT THAT
HE LED ALONG WITH THE CURRENT
MAYOR ROAD HE WAS A COUNCIL
MEMBER AT THE TIME BUT THAT
FLIGHT THEY TOOK TO THE STREETS
OF SAN FRANCISCO AGAINST THE P.
UC AND ALSO IN THE COURTS OF
LAW AGAINST THE PACIFIC GAS AND
ELECTRIC COMPANY SO MAYOR
REGINA MEDINA THANK YOU VERY
MUCH- AND WE WELCOME YOU HERE
TODAY. THANK YOU SENATOR.
MISTER CHAIR FOR STATE I WANT
TO FIRST PERSONALLY ON BEHALF
OF THE CITY IN THE COUNCIL
THANK YOU FOR YOUR LEADERSHIP.
AND BEING A FRIEND TO THE CITY
OF SAN BRUNO. OUT YOUR TENURE
IN THE SENATE. YOU HAVE TRULY
BEEN A- PERSON THAT WE CAN CALL
ON. WE CAN LEAN ON. AND WE CAN
GET ASSISTANCE AND GUIDANCE AND
I'M HAPPY TO HEAR SENATOR
STERN. OFFER HIS COMMITMENT TO
CONTINUE THIS BOARD AS YOU
APART. FROM THE CAPITAL. FROM
MY PERSPECTIVE. ON LOOKING BACK
TO SEPTEMBER THE NINTH TWO
THOUSAND AND TEN BUT SIX
ELEVEN. TWENTY NEED CHAMBER
EVENT WITH THE MAYOR WAYNE
FORMER MERRILL WAYNE AND MYSELF
AS VICE MAYOR. WE HAD A PHONE
CALL OF AN EXPLOSION. WHICH WAS
NOW KNOWN AS OUR LINE ONE
THIRTY TWO AT THIRTY INCH GAS
LINE THAT EXPLODED LITERALLY.
IN FLAMES WERE BORROWING OUT OF
THE GROUND. UPON ARRIVING
WITHIN TEN TO FIFTEEN MINUTES
OF THAT TO WITNESS THE FLAMES
IN THE FURY. I FEEL THE HEAT
AND WATCH FOLKS RUNNING
EVACUATING. I'M TRYING TO MAKE
SENSE OF WHAT JUST TRANSPIRED
IT IS TRUE WHEN REPORTS WERE
THAT MANY FOLKS THOUGHT IT WAS
AN AIRPLANE THAT HAD DESCENDED
AND CRASHED BUT THEN REALIZE
WHEN THE FUEL OF THE FIRE
CONTINUED ON. NINETY PLUS
MINUTES BECAUSE WE'RE NO SHUT
OFF VALVES WE HAD TO GET PEOPLE
IN THERE DURING COMMUTE TIME
AGAIN IT WAS SIX ELEVEN. KEEP
IN MIND THIS AND TRANSPIRED AT
MIDNIGHT ONE AM TWO AM. THE
LAWSUIT WE COULD HAVE SUFFERED
AT THAT POINT. BUT WE DID
STUFF. WE HAD A FATALITIES.
SIXTY SIX RESIDENTS WERE
INJURED. THIRTY EIGHT HOMES
TOTALLY DESTROYED SEVENTEEN
HOMES EVERELY DAMAGED. AND THE
COMMUNITY HONESTLY THE DRAMA.
OUR CITY THROUGH THIS
DEVASTATION THE RESILIENCE AND
COURAGE OF THIS COMMUNITY AND A
FORWARD THINKING ABOUT COUNCIL
WANTED TO GET TO THE BOTTOM OF
THIS. WE WANTED TO AS LOCAL
STATE AND FEDERAL AGENCIES CAME
IN TO INVESTIGATE FIND OUT WHAT
HAPPENED HAS REPEAL THE WAY THE
YOUNG AND WE FOUND A LOT OF
THINGS THAT HAPPENED AND
TRANSPIRED. BUT OF OUR
OBJECTIVES BACK THEN WHICH
INVESTIGATE THE CAUSE OF THE
EXPLOSION. ACTON REBEKAH
REMEDIATE NEGLIGENT CONDUCT AND
PRACTICES PENALIZED
APPROPRIATELY IN SHORT SYSTEM
SAFETY IMPROVEMENTS AND REFORM
A BROKEN PIPELINE REGULATORY
SYSTEM AND THROUGH OUR EFFORTS
AND OUT OF THE SUPPORT OF
OTHERS IT WAS CLEARLY SHOWN.
AND DOCUMENTS. IT WAS A COZY
RELATIONSHIP BETWEEN THE
ENGINEERING ON THE PC. AND THAT
DID NOT HELP. TRANSPIRED HERE
IN THE CITY OF SAN BRUNO. WE
WENT FORWARD AND WANTED TO
CONTINUE TO SEE AND MAKE SURE
THAT THIS DOESN'T HAPPEN AGAIN
NOT ONLY IN OUR COMMUNITY BUT
ANY COMMUNITY IN THE STATE OF
CALIFORNIA. IT WAS IMPORTANT TO
US THAN IT IS NOW. THOSE OF
OSTERWEIS DOES IT STILL WEAR.
THE SCARS IN THE EMOTIONS. THAT
THEY STILL SUFFER WITH TODAY.
SOMETHING HAS TO COME OUT OF
THIS THAT IMPROVES US GOING
FORWARD AS A STATE. I CAN TELL
YOU THAT THIS DIVERSITY A LOT
OF TIME A LOT OF EFFORT TO GET
OFF TRACK. BUT IT WAS IMPORTANT
AS WE PURSUED THE TRUTH WE DID
SU THE REQUESTED RECORDS AND
RECEIVED EMAILS THAT SHOW TRULY
WHAT WAS HAPPENING BEHIND THE
SCENES. AND THEN IN THE END BUT
WE WANT TO DO YOUR WHICH
CREATING SAFER UTILITY IN. THE
STATE OF CALIFORNIA. THE LACK
OF SAFETY THE LACK OF RECORDS
THE DIVERSION OF MONEY. ARE ALL
VERY APPARENT EVIDENCE. AS HE
ENTERED S. B. DID THEIR
INVESTIGATION WHICH I DID FLY
BACK TWICE FOR THE WEEK OF
HEARING AS WELL AS THEIR
FINDINGS MADE A VERY CLEAR. IT
WAS NEGLECT ON P. JEANNIE AND
VERY UNCOMMON THAT THE NTSB
DECIDED TO CHANGE THE NAME OF
THE REPORT USUALLY IS ALWAYS
THE CITY IT CHANGES THE SAY THE
PG&E PIPELINE EXPLOSION RARELY
DONE BUT WANTED TO SEND A CLEAR
MESSAGE. ON SEPTEMBER TWENTY
SIXTH TWO THOUSAND ELEVEN THE
NTSB RELEASED INVESTIGATION
REPORT. THE TERM. AT THE
PROBABLE CAUSE OF THE INCIDENT
WAS DETAINEES IN ADEQUATE
QUALITY CONTROL. THE ORIGINAL
INSTALLATION OF THE PIPES.
GENIE'S BEEN ADEQUATE PIPELINE
INTEGRITY MANAGEMENT PROGRAM
WHICH FAILED TO DETECT AND
REPAIR THE DEFECTIVE HEIGHTS
SECTION. NBG USING DETAINEES AN
ADEQUATE EMERGENCY RESPONSE
WHICH CAUSED UNNECESSARY DELAYS
AND INCREASED DAMAGE THE NTSB
ALSO DETERMINED THAT THE P. UC
FAILED TO DETECT THE
INADEQUACIES INDIGENES
INTEGRITY MANAGEMENT PROGRAM.
IN THE PIPELINE AND HAZARDOUS
MATERIALS SAFETY ADMINISTRATION
NEEDED TO INCORPORATE MORE
MEANINGFUL METRICS INTO ITS
PIPELINE SAFETY GUIDANCE AND
IMPROVE ITS OVERSEAS OVERSEAS
SITE ON THE STATE OF UTILITIES
COMMISSION. WHAT THAT TELLS ME
IS THIS THAT NEED TO HAPPEN. WE
COULD HAVE AVOIDED THE LOSS OF
LIFE. THE INJURED THE
DEVASTATION OF A NEIGHBORHOOD
TRYING TO REBUILD IT LITERALLY.
HAS TAKEN US ALMOST A DECADE.
IT'S SOMETHING THAT ONE IS
ELECTED COMES INTO OFFICE AND
YOU CERTAINLY CAN'T STUDY FOR
YOU CAN'T READ A BOOK ON. AND
ALL THOSE FIRE AND POLICE
PERSONNEL THAT RESPONDED THAT
NIGHT AND SUBSEQUENT TO ASSIST
OUR CITY WE ARE TRULY GRATEFUL
FOR MUTUAL AID. WAS SUPERIOR.
OUR ELECTED STE WHO STEP
FORWARD YOU MISTER CHAIR AND
OTHERS THAT REPRESENT THIS
STATE IN THE CITY STEP FORWARD
TO ASSIST US. IN TO TRY TO
RIGHT A WRONG I KNOW THAT
DURING THE- AND YOUR REMEMBER
INSTEAD CAME UP THE GENIE DID
SEND MYSELF IN THE COUNCIL
LETTER ACKNOWLEDGING
UNDERSTANDING. BUT ALSO TO THE
HELP OF YOU ENJOY EVERYBODY
THEY HAVE STATED THAT THEY
PLEADED THE SAFETY WORK SET
FORTH IN THE PIPELINE SAFETY
ENHANCEMENT PLAN BUT THE
INSTALLED MORE THAN THREE
HUNDRED SIXTY ONE REMOTE
CONTROLLED AN AUTOMATIC SHUT
OFF VALVES ON OUR TRANSMISSION
PIPELINES. REPLACING NEARLY
THREE HUNDRED MILES OF IT GAS
TRANSMISSION PIPELINE IN OVER
EIGHT HUNDRED AND SIXTY THREE
MILES OF BASS DISTRIBUTION.
PIPELINE AND ARE COMPLETING.
THE LEVEL OF THAT THEY HAVE
COMPLETED IN COMPLETING THE
TWELFTH ELEVEN OF THE TWELVE
NATIONAL TRANSPORTATION SAFETY
BOARD'S RECOMMENDATION. WE HAVE
COME A LONG WAY IN TEN YEARS
BUT FOR OUR COMMUNITY OF THE
CITY OF SAN BRUNO. IT HAS NOT
FORGOTTEN AS WE HAD TO COVER
NINE TO TEN YEARS IN WITH BOTH
OF IT. WHICH MAKES IT OBVIOUSLY
VERY CHALLENGING TO OTHER.
DETERMINED THAT WE WERE GOING
TO HAVE A KIOSK. AT A DEDICATED
PARK. WHERE THERE ARE FIVE
BENCHES WITH THE NAMES OF THOSE
THAT WE LOST. INDIVIDUALLY AND
WITH THEIR FAMILIES. WE HAVE A
KEY AUSTIN IT IS ON OUR WEBSITE
AND IT'S A VIRTUAL BUT YOU CAN
GO THROUGH TO SEE AND
UNDERSTAND THE HISTORY. THANK
YOU ALSO BE REMOVED AND WILL BE
PLACED IN OUR NEW RECORD PARK
CENTER. IN OUR CITY PARK SO
THAT WE WILL NEVER FORGET. IT
IS IMPORTANT THAT WE DO MOVE
FORWARD BUT IT IS IMPORTANT
THAT WE ACKNOWLEDGE THE ERRORS
OF THE PAST. THAT WE CORRECT
THEM. FOR ALL TIMES TO COME. NO
ONE. NO ONE. ANY COMMUNITY.
SHOULD FACED WHAT WE FACED.
INTOLERABLE WE ENCOUNTERED SHE
LATER REST GOING TO ALL THOSE
SERVICES I WOULD JUST LIKE TO
AGAIN MISTER CHAIR THANK YOU
FOR THE OPPORTUNITY TO BE HERE
I WANT TO THANK YOU SIR FOR ALL
YOU'VE DONE FOR THIS CONCERT
AND THE COMMITTEE THAT HAD THAT
YOU HAVE LEAD TO AND HOW YOU
HAVE HELPED US AS A COMMUNITY
YOU HAVE SERVED US WELL SIR AND
I WANT TO THANK YOU FOR THAT.
AND AS I CONCLUDE I WANT TO
ACKNOWLEDGE THOSE OF GREAT
BULLIS. MOVEON BONELESS.
WILLIAM BONELESS. JAMES FRANCO.
YES SIR GREG JACQUELINE CRAIG
JESSICA MORALIS AND ELIZABETH
TAURUS. THE CITY OF SAN BRUNO
SHALL NEVER FORGET THANK YOU
MISTER CHAIR. THANK YOU MR
MAYOR AND THE THANK YOU FOR
YOUR CONTINUED LEADERSHIP- THAT
HAS BEEN EXTRAORDINARY- NOW WE
WILL HEAR FROM OUR FIRST
PRESENTER AND THAT WOULD BE-
ROBERT HALL DIRECTOR OF OFFICE.
OF RAILROAD PIPELINE AND
HAZARDOUS MATERIALS
INVESTIGATIONS AT THE NATIONAL
TRANSPORTATION SAFETY BOARD-
MISTER HALL THANK YOU AND
WELCOME. GERMANTOWN MEMBERS OF
THE SUBCOMMITTEE THANK YOU FOR
THE OPPORTUNITY TO TESTIFY
TODAY. I WAS ONE OF THE
INVESTIGATORS RESPONDING TO THE
SAME BROWN DESTINATION I'M
CURRENTLY THE DIRECTOR OF OUR
OFFICE OF RAILROADS PIPELINES
AND HAZARDOUS MATERIALS
INVESTIGATIONS. THE ACCIDENT IN
SEPTEMBER NOW WAS A HORRIFIC
AND TRAGIC EVENT IT SPARKED
DISTRUST DISCUSSIONS AND
COMPELLED ACTIONS BY OPERATORS
GOVERNMENT AGENCIES AND LOCAL
COMMUNITIES TO MINIMIZE THE
SAFETY RISKS THAN UNDERGROUND
PIPELINES PRESENT. AND IT
CONTINUES TO INFLUENCE HOW WE
SEEK TO IMPROVE PIPELINE SAFETY
TODAY TEN YEARS LATER.
PIPELINES ARE ONE OF THE SAFEST
MOT EFFICIENT MEANS OF
TRANSPORTATION BUT WHEN SAFETY
STANDARDS ARE INADEQUATE-
DISREGARDED OR WHEN FEDERAL OR
STATE AGENCIES FAILED TO
CONDUCT PROPER OVERSIGHT OF A
PIPELINE OPERATOR THE
CONSEQUENCES CAN BE DEVASTATING.
IN SEPTEMBER NOW IT TOOK PG&E
NINETY FIVE MINUTES TO STOP THE
FLOW OF GAS SEVERELY HINDERING
THE EMERGENCY RESPONSE. THE
NTSB HAS BEEN STUDYING THE
EFFECTS OF THE LIGHT AND
SHUTTING DOWN FAILED PIPELINE
SYSTEMS SINCE NINETEEN SEVENTY
WE'VE ISSUED RECOMMENDATION
AFTER RECOMMENDATION TO ADDRESS
THESE CONCERNS INCLUDING OUR
RECOMMENDATION OUT OF SAN BRUNO
TO REQUIRE THE USE OF AUTOMATIC
SHUT OFF. OR REMOTE CONTROL
VALVES IN HIGH CONSEQUENCE
AREAS. EVEN THOUGH THE U. S.
CONGRESS MANDATED IMPLEMENTING
THIS RECOMMENDATION IN TWENTY
ELEVEN THE FEDERAL REGULATOR
THE PIPELINE AND HAZARDOUS
MATERIALS SAFETY ADMINISTRATION
OR FEMSA HAS YET TO COMPLETE
THEIR WORK ON THIS MANDATE.
ANOTHER ISSUE THAT PG&E RECORDS
WERE INCOMPLETE AND THEREFORE
UNABLE TO SUPPORT THE
ESTABLISHED MAXIMUM OPERATING
PRESSURES. WE SHOULD TO URGENT
RECOMMENDATIONS TO PG&E AND
THEY TOOK THEM SATISFACTORY
ACTIONS TO CLOSE THEM. EVEN
THOUGH THESE RECOMMENDATIONS
WERE DIRECTED TO ONE OPERATOR
OTHERS ACROSS THE COUNTRY TOOK
HEED AND CONDUCTED REVIEWS OF
THEIR OWN SYSTEMS TO ENSURE
THAT A SIMILAR ACCIDENT DID NOT
OCCUR IN THEIR PIPELINES. THE
SIDE SAN BRUNO WE'VE
INVESTIGATED ADDITIONAL TRAN.
TRANSMISSION PIPELINE ACCIDENTS
WHERE DEFICIENCIES WHAT THE
OPERATORS INTEGRITY MANAGEMENT
PROGRAMS AND FILMS ARE
OVERSIGHT WERE CONCERNED. TO
ENHANCE THESE PROGRAMS WE
RECOMMENDED ELIMINATING THE
SOLE USE OF DIRECT ASSESSMENT
WHICH IS LIMITED. IN
DISCOVERING ANOMALIES. FANS I
HAS SATISFACTORILY ADDRESSED
THIS RECOMMENDATION. I'M NOT
GONNA HALF THE SAN BRUNO MASS A
MASSIVE OIL SPILL FROM A
PIPELINE OCCURRED IN MARSHALL
MICHIGAN. THIS ACCIDENT ALSO
INVOLVED ERRORS IN PIPELINE
INTEGRITY MANAGEMENT. AND
CONTROL CENTER OPERATIONS THERE
WERE AVOIDABLE DELAYS IN
IDENTIFYING AND RESPONDING TO
THE RUPTURE EXACERBATING THE
CONSEQUENCES. BUILDING ON WHAT
WE LEARNED IN SAN BRUNO AND
OTHER ACCIDENT INVESTIGATIONS
IN R. MARSHALL REPORT THE NTSB
RECOMMENDED THE DEVELOPMENT OF
A SAFETY MANAGEMENT SYSTEM
SPECIFIC TO THE PIPELINE
INDUSTRY. IN TWENTY FIFTEEN THE
AMERICAN PETROLEUM INSTITUTE
ISSUED SMS STANDARDS TO ASSIST
PIPELINE OPERATORS. WHICH ARE
BEING IMPLEMENTED AND IMPROVING
SAFETY. EIGHT YEARS AFTER SAN
BRUNO A SERIES OF STRUCTURE
FIRES AND EXPLOSIONS OCCURRED
AFTER THE OVER PRESSURIZATION
OF A NATURAL GAS SYSTEM AND
MERRIMACK VALLEY MASSACHUSETTS.
DECIDES SEVERAL LONG STANDING
ISSUES THAT WE HAVE SEEN A
PIPELINE ACCIDENTS ANOTHER
SIGNIFICANT SAFETY ISSUE WAS
THE LACK OF A REQUIREMENT FOR A
LICENSED PROFESSIONAL ENGINEER
APPROVAL OF NATURAL GAS
PRODUCTS PROJECTS IN
MASSACHUSETTS. A PROFESSIONAL
ENGINEER STAMP ON ENGINEERING
DRAWINGS ASSURES THE PUBLIC OF
THEIR SAFETY AND IS A
REQUIREMENT THROUGHOUT THE
UNITED STATES. YOU WOULD THINK
THAT THIS APPLIES TO THE
NATURAL GAS INFRASTRUCTURE AS
WELL HOWEVER AT THE TIME OF OUR
INVESTIGATION THIRTY ONE STATES
EXEMPTED PUBLIC UTILITIES FROM
THIS REQUIREMENT. THE STATE OF
CALIFORNIA IS ONE OF THEM AND
IN TWENTY NINETEEN WE
RECOMMENDED. THAT THE STATE OF
CALIFORNIA A MAN THEIR STATUTE
TO ENSURE THAT ALL FUTURE
NATURAL GAS PROJECTS REQUIRE A
P. EASE APPROVAL. CURRENTLY
WE'RE STILL WAITING FOR A
RESPONSE FROM THE STATE. THE
ACTIONS BY GOVERNMENT AND
INDUSTRY IN RESPONSE TO THE SAN
BRUNO PIPELINE RUPTURE HAVE
IMPROVED SAFETY BUT THERE IS
STILL WORK TO BE DONE OUR
INVESTIGATIONS HAVE FOUND THAT
THE SAFE OPERATION OF PIPELINES
IS A SHARED RESPONSIBILITY.
AMONG OPERATORS GOVERNMENT
OVERSIGHT AGENCIES AND LOCAL
COMMUNITIES. KRUGMAN'S THE
PIPELINE SAFETY CAN TAKE YEARS
OR DECADES TO IMPLEMENT
EFFECTIVE ACTION REQUIRES
CONTINUING COMMITMENT AND
FOLLOW THROUGH. RESHAPE YOUR
DEDICATION TO THE STAFFER THANK
YOU AGAIN FOR THE OPPORTUNITY
TO TESTIFY TODAY I AM HAPPY TO
ANSWER ANY QUESTIONS AND LOOK
FORWARD TO WORKING WITH THIS
COMMITTEE TO CONTINUE TO
IMPROVE THE SAFETY SIGN IT ALL
THANK YOU VERY MUCH FOR YOUR
TESTIMONY TODAY AND ALSO THANK
YOU FOR YOUR COMMITMENT AT THE
NTSB AND THE HARD WORK THAT
YOU'VE- PROVIDED AND-
PERFORMED- AT THE NTSB AND
THROUGH THESE INVESTIGATIONS
IT'S A ANOTHER EXAMPLE OF WHY.
IN THIS COUNTRY WE HAVE SUCH
CONFIDENCE AND TRUST IN THE N.
T. S. B. SO THANK YOU VERY MUCH
FOR TALKING THERE WILL BE
QUESTIONS- WHEN WE CONCLUDE OUR
FIRST PANEL AND NOW WE WILL
MOVE TO- HERE FIRMA CHRISTOPHER
P. ONLY A DIRECTOR PIPELINE IN
UTILITIES FOR AMERICA'S ASSET
ADVISORY. AND MISTER P. ONLY
WELCOME AND THANK YOU FOR BEING
HERE TODAY. A GOOD MORNING
CHAIRMAN HILL AND MEMBERS OF
THE ELECTRIC GAS AND
TRANSMISSION. A TRANSPORTATION
SAFETY OMMITTEE WELL LET ME
BEGIN BY THANKING YOU FOR THIS
OPPORTUNITY TO SHARE MY
PERSPECTIVE ON SOME OF THE
LESSONS LEARNED. FROM THE-
TRAIN. STATION TRAGIC GAS.
INCIDENT IN SAN BRUNO. AS YOU
MENTIONED- MY NAME IS
CHRISTOPHER KELLY I AM A
DIRECTOR AT A DIZZYING
CONSULTING THE CONSULTING ARM
OF WORLDLY. AT THE END WORK IN
THE PAST. ADVISORY GROUP I
SERVED AS ONE OF THE TECHNICAL
ADVISORS TO THE INDEPENDENT
REVIEW PANEL FROM JACOBS
CONSULTANCY WHICH- IS NOW PART
OF WORLDLY. AND I HAVE SPENT
SINCE OF THAT TIME- WORKING
WITH KLEIN PLAN SPY PLANE
OPERATOR SO ON IN PREPARING
SAFETY CASES IN BUSINESS AND
BUSINESS CASES. IN ORDER TO-
FUND AND IMPROVE- OPERATORS
SAFETY PROGRAMS I'D LIKE TO
START BY JUST AN OBSERVATION
WITH REGARD TO THE INDEPENDENT
REVIEW PANEL AND THE- COMMEND
THE LEGISLATURE AT THAT TIME
AND- TO ESTABLISHING THAT THAT
INDEPENDENT PANEL AND
SPECIFICALLY THE MANDATE THAT
THE PANEL LOOK FOR THE ROOT
CAUSE OF THE INCIDENTS IN
OPERATIONS BUT ALSO IN
MANAGEMENT AND ORGANIZATION.
AND I GUESS IN ANALOGY TO THE
THEATER WORLD IS ALLOWING US TO
BREAK THE FOURTH WALL AT AND
UNDERSTAND THE ORGANIZATIONAL-
CULTURE OF PG&E BUT ALSO THE
CPUC. AND I THINK THAT THE
FINAL REPORT THAT WAS PRODUCED-
PROVIDED CONSIDERABLE INSIGHT
M. IN HIGHLIGHTING THE TWO KEY
ASPECTS THAT HAVE BEEN PICKED
UP BY. CAN T. S. B. AS WELL AS
AS WELL AS- FEMSA IN IN
RECOGNIZING THE IMPORTANCE OF
CORPORATE CULTURE IN IN
PIPELINE SAFETY. AND SECONDLY
THE RECOGNITION THAT THIS WAS
AN ORGANIZATIONAL FAILURE. NOT
NOT SIMPLY. A SYSTEM OPERATING
FAILURE. I'D ALSO POINT OUT
THAT THAT HAVING SPOKEN WITH.
THE DIRECTORS AND NEW
MANAGEMENT AT PG&E- AS WELL AS-
A FOLLOW UP WITH THE CPUC THAT
THE LEADERS FELT THAT THIS
REPORT PROVIDED A ROAD MAP FOR
THEIR ORGANIZATIONS TO MAKE
MEANINGFUL IMPROVEMENTS AND I
THINK THAT IS. APPARENT BUT
IT'S NOT SOMETHING THAT ONE
ENDS IT'S A CONTINUOUS
IMPROVEMENT PROCESS AND
THEREFORE NEEDS- SUSTAINED
COMMITMENT. THIS LEADS ME TO I
WOULD SAY MY FIRST LESSON
LEARNED M. THAT IS ONE CAN'T
ALWAYS WAIT FOR THE FEDERAL
GOVERNMENT TO ACT AS IT WAS
PREVIOUSLY MENTIONED IT'S TAKEN
NEARLY TEN YEARS FOR FILMS THAT
TO PROMULGATE. NEW SAFETY- THE
NEW SAFETY OF GAS PIPELINE
REFER TO AS THE MEGA RULE AND
IT'S ONLY ONE PIECE OF AND JUST
A- GROUP THAT THAT. WILL
REQUIRE AN ADDITIONAL OTHER
RULES TO FULLY. COVER WHAT THE
CONGRESS HAS LEGISLATED AND
THAT SPANNED FROM OUR SHOULD
SAY SPAWNED FROM THE SAN BRUNO
INCIDENT. CALIFORNIA'S
INITIATIVE- INITIATE THEIR
REFORM WITHIN A YEAR. OF THE
INCIDENT AND AGAIN THAT THAT'S
THE LEADERSHIP SHOWN BY THE
CALIFORNIA LEGISLATURE TO MOVE
FORWARD. RATHER THAN WAIT. THE
SECOND LESSON LEARNED THAT I'D
LIKE TO JUST SAY IS THE THING
THAT REGULATE THAT REGULATED
UTILITIES LIKE LESS THAN
REGULATION IS THE UNCERTAINTY
OF NOT HAVING REGULATIONS.
PIPELINE OPERATORS UTILITIES
ARE ARE RELUCTANT TO INVEST
WITHOUT- IN SAFETY WITHOUT.
GUIDANCE AND AGAIN I THINK THAT
THE LEGISLATURE- AND THE FOLLOW
THROUGH IMMEDIATELY AFTER SAM
BRUNELLE. PROVIDED THAT IS
THAT- GUIDANCE TO ENABLE- THE
RESPONSE THAT CALIFORNIA SHOWED
IN THE LEADERSHIP WITH REGARD
TO THEIR SAFETY IMPROVEMENT
PROGRAM. LET ME JUST BE CLEAR
THAT THAT NATIONALLY PIPELINE
OPERATORS AND- HAVE AND ARE
INVESTING IN MEANINGFUL
IMPROVEMENTS TO PIPELINE
SAFETY- THE STATE DID NOT
NECESSARILY REST ON THEIR HANDS
WAITING BUT FOR FEDERAL
REGULATIONS. BUT IT'S CERTAINLY
IN MY VIEW RETARDED THE ADVANCE
THE ADVANCEMENT. FINALLY I
THINK THAT THE- THAT THAT THAT
AGAIN- THE LEADERSHIP OF A IN
CALIFORNIA PROVIDED THE BREADTH
AND DEPTH HEY NECESSARY AND THE
PACE IN CALIFORNIA TO
ESSENTIALLY. IT'S A COMPLETE OR
WAS JUST SAY COMPLETE THE FIRST
STAGE GATE OF IMPROVEMENTS IN
THE TIME THAT IT TOOK. THE
FEDERAL REGULATIONS TO BE
PROMULGATED SO. THE THIRD
LESSON I'D LIKE TO JUST SHARE
IS THAT MEANINGFUL SUSTAINABLE
AND RESILIENCE. TAKE
PERSISTENCE LEADERSHIP IN TIME.
OVER THE PAST TEN YEARS OF
PROGRESS IN PIPELINE SAFETY HAT
HAS MADE MANY. IMPROVEMENTS FOR
EXAMPLE THE IMP WITH REGARD TO
RISK IN IN TWO THOUSAND TEN
MOST PIPELINE OPERATORS AT RISK
MODELS WERE NOTHING MORE THAN A
WHAT AN ELABORATE WAY OF
PRIORITIZING WHAT BASELINE
ASSESSMENT NEEDS TO BE DONE.
CALIFORNIA HAS HAS HAS
INITIATED SEVERAL. RAM AND
OTHER RISK APPROACHES THAT
ENABLE- THE FORENSICS IF YOU
WILL OF THE SYSTEM ALLOWING
INVESTMENTS TO BE BETTER
TARGETED TO PREVENT AND
MITIGATE FAILURES. SECONDLY
NATIONALLY THERE IS BCOME A
RECOGNITION THAT SAFETY IS NOT
JUST OSHA. AND IT WAS ONE OF
THE KEY FINDINGS THAT IT IN THE
END THE INDEPENDENT ROUTE. YOU
PANEL'S REPORT. THAT THE FOCUS
OF THE COMPANY- IT WAS ON
SAFETY OF ITS PEOPLE AND ITS
ATTENTION APPROPRIATE FOCUS.
BUT IT WASN'T THE RECOGNITION
THAT SAFETY ALSO MEANT. THE
INTEGRITY OF THE ASSETS
THEMSELVES. THIRD I JUST
ANOTHER IMPROVEMENT IS THIS IS
THE CONCEPT OF COURT CORPORATE
CULTURE AND WE'VE SEEN THAT
IT'S BECOME FRONT AND CENTER-
WITH THE- WITH DISCUSSIONS- YES
PART OF THAT PIPELINE SAFETY
MANAGEMENT SYSTEMS BUT I THINK
IT AND THEN MY WORK IN IN WITH
UTILITIES IN IN IN THE AREA OF
PIPELINE SAFETY MANAGEMENT
SYSTEMS. ONE OF THE ONE OF THE
CORNERSTONES THAT MUST BE
ADDRESSED IS THE ISSUE OF TRUST.
AND BY THAT I MEAN THAT THE
PEOPLE IN THE FIELD TO PEOPLE
WHO ARE. AT THE POINT OF THE
SPEAR. AFTER FEEL TRUST. IN
THEIR MANAGEMENT THEIR
SUPERVISORS- IN ORDER FOR THE
CULTURE OF SAFETY TO OR A
PIPELINE INTEGRITY TO SPAWN.
MMHM AND LASTLY THE PROGRESS
WITH REGARD TO THE AMALGAMATION
OF THE INTEGRITY MANAGEMENT
PROCESS SAFETY. AND QUALITY
PROCESS IN THE. PIPELINE SAFETY
MANAGEMENT SYSTEM. THIS SYSTEM.
AT ITS CORNERSTONE IS A
CONTINUOUS IMPROVEMENT PROCESS
AND IT THE INDUSTRY IT HAS
STEPPED UP AND- IS.
IMPLEMENTING THIS THE PROCESS
OF APPLYING SAFETY MANAGEMENT
SYSTEMS. BUT WE'RE REALLY AT
THE INFANCY INFANCY STAGE IT-WILL TAKE TIME YEARS AND COME
COMMITMENT. SISTANCE LEADERSHIP.
FIVE FOUR FOR THAT TOO FORD FOR
THAT SYSTEM TO TAKE ROOT AND
FOSTER- THE NECESSARY CHANGE IN
CORPORATE CULTURE FINALLY I'D
LIKE TO JUST AND WITH THREE
CAUTIONARY OBSERVATIONS. THE
FIRST IS THE LOSS OF
INSTITUTIONAL EXPERIENCE. IN IN
REVIEWING AND WORKING WITH
COMPANIES AND PIPELINE SAFETY
MANAGEMENT SYSTEMS ONE OF OUR
ONE OF OUR CLIENTS HI. HELLO
THIS IS THE NUMBER OF EMPLOYEES
IN IN THE IN THE COMPANY OVER
50% OF THEM HAVE BEEN WITH THE
COMPANY LESS THAN FIVE YEARS.
THE NUMBER OF INDIVIDUALS WHO
HAVE EXPERIENCED. A MAJOR
INCIDENT. ARE HIDDEN IN IN
THEIR CAREERS HAS DECREASED
SIGNIFICANTLY THAT'S IT IN ONE
HAND THAT'S THAT'S GOOD- FROM A
SAFETY PERSPECTIVE WE'VE MADE
SAFETY IMPROVEMENTS ON THE
OTHER HAND THE QUESTION IS HOW
DO YOU HOW DO WE MAINTAIN THAT
INSTITUTIONAL KNOWLEDGE IN
RESPONDING. AND THEREFORE THERE
WILL BE A NEED FOR GREATER
INVESTMENT IN TRAINING
TECHNOLOGIES EVERYTHING FROM
IMMERSION VIRTUAL REALITY
TRAINING IN ORDER TO- IN ORDER
TO. BE READY TO ACT IN AN
EMERGENCY. THE SECOND ITEM I
JUST WANT TO MENTION IS THE
INSIDIOUS THIS OF LATENT
FAILURES AND THEIR PERSISTENCE
WE SAW THAT IN SAN BRUNO WE SAW
YOU RECENTLY IN THE MERRIMACK
VALLEY AND YOU SEE IT IN IN AND
IT'S ALSO EVIDENT IN THE- IN
THE- BOEING SEVEN THIRTY SEVEN
MAX- INCIDENTS. AND IT I
BELIEVE THAT THIS WILL
NECESSITATE THE INSTANT IT
INSTILLING OF A MINDFULNESS.
PHILOSOPHY WITHIN AN
ORGANIZATION. WE ARE WE ARE
SUBJECT TO DISTRACTIONS MORE SO
TODAY WE ARE AT OUR RELIANCE ON
TECHNOLOGY. AND IN IT EVEN TO
SCRIPTED PROCEDURES. CAN CAN
REDUCE THEM THE MINDFULNESS AND
FOCUS THAT'S NECESSARY IN DAY
TO DAY ACTIVITIES TO MITIGATE
BLATANT FAILURES. AND LASTLY I
JUST WANTED T POINT OUT THAT
THAT RISK GOOD VERSION OF
SOCIETY IS CONTINUING TO EVOLVE
AND WE SEE THAT RIGHTFULLY SO
WITH WITH ENVIRONMENTAL CHANGE
CLIMATE CHANGE AND THEREFORE AS
WE LOOK AT RISK AT IN THE GAP
IN THE INDUSTRY WE MUST TAKE
THESE INTO IT ALSO INTO
CONSIDERATION. IN IN MITIGATING.
THE RISK AND INCREASING THE
DECREASING THE UNCERTAINTY.
ASSOCIATE WITH GAS TRANSMISSION
THANK YOU FOR LISTENING AND I
LOOK FORWARD TO THE QUESTION
AND ANSWER SESSION. WONDERFUL
THANK YOU TO BE ONLY THAT WAS A
VERY ENLIGHTENING AND- AND
QUITE INFORMATIVE- VERY MUCH
APPRECIATE THOSE COMMENTS- UP
OUR LAST PRESENTER FOR THIS
PANEL IS DR PAUL SCHULMAN- FROM
THE CENTER OF CATASTROPHIC RISK
RISK MANAGEMENT AT THE
UNIVERSITY OF CALIFORNIA AT
BERKELEY AND- COMMITTEE AND OUR
HEARINGS AND A WE HAVE
APPRECIATED HIS TREMENDOUS
KNOWLEDGE. AND EXPERTISE- UPON
THIS SUBJECT- NOT JUST WITH GAS
SYSTEMS BUT RISK MANAGEMENT
AND- AND SAFETY THROUGHOUT SO
WITHOUT ANY FURTHER ADO DR SEAN
WELCOME. THANK YOU MISTER
CHAIRMAN AND I WANT. VERY
DEEPLY TO THANK YOU FOR ALL OF
THE WORK THAT YOU'VE DONE IN
YOUR ROLE AS CHAIR OF THE
SUBCOMMITTEE AND THE IMPORTANCE
OF IT IN KEEPING SAFETY ON THE
AGENDA IN THE STATE AND- I HAVE
TO SAY THAT I WISH YOU WELL BUT
I'M QUITE WORRIED. ABOUT THE
IMPACT OF YOUR DEPARTURE ON A
SYSTEM THAT I BELIEVE ALREADY.
NEEDS A LOT OF ATTENTION IN AN
IMPROVEMENT. I WANT TO TALK A
LITTLE TODAY ABOUT- BACK AND- I
WANT TO. I'M GOING TO PUT MY
SCREEN ON THEM I ASSUME CAN YOU
SEE MY SCREEN. DID I NOT DO
THAT YET WE CAN'T OKAY JUST.
THIS I. THINK I FORGOT ONE
ASCENTIAL ITEM. TO DO THIS.
YEAH. IT'S YET. YOU'RE NOT
SEEING THE SCREEN NO NOT
EXACTLY. OKAY WELL MAYBE THAT'S
BECAUSE I HAVE DONE THIS. ANY
LUCK NOW THOUGH STILL NOT SEEN
HI. WHY IS THAT PLEASE JUST
CHECK THIS. WHAT WE HAD SOME
WORDS COMING OUT I THINK WE'VE
GOT A NOW YES RECEDED OKAY AND
I CAN MAKE THIS INTO FULL SLIDE
SHOW. SO I HAVE BEEN RISK FOR-
OVER THIRTY YEARS ORGANIZATIONS
THAT HAVE TO MANAGE HAZARDOUS
SYSTEMS WITH SAFETY AND
RELIABILITY STARTING AT. A
NUCLEAR POWER IN COMMERCIAL
AVIATION AND BRANCHING INTO A
WHOLE VARIETY OF OTHER
INFRASTRUCTURES AND I'VE SPENT.
A NUMBER OF YEARS IN CALIFORNIA
LOOKING AT- THE GAS AND
ELECTRIC INFRASTRUCTURES
TELECOMS. LEVEES WATER
RESOURCES AND WATER SUPPLY
MARINE TRANSPORT AND- I'VE
SPENT TIME IN A WHOLE VARIETY
OF INFRASTRUCTURE ORGANIZATIONS
INCLUDING P. JEANNIE GAS AND
PG&E ELECTRIC AND OTHER
REGULATORY AGENCIES LIKE THE
PUBLIC UTILITY COMMISSION. AND
THE- CALIFORNIA ENERGY
COMMISSION AND SELL EITHER OVER
THOSE YEARS FORMED A KIND OF
PERSPECTIVE ON OUR SAFETY
PROMOTION AND MANAGEMENT SYSTEM
AS A SYSTEM. I THOUGHT I WOULD
SHARE WITH YOU SOME OF THOSE-
FINDINGS AND PERSPECTIVES AFTER
YEARS AND YEARS OF INTERVIEWING
AND TALKING TO PEOPLE ON THE
BOTTOM. SO CERTAINLY MY
PERSPECTIVE STARTS WITH THIS
PREMISE THAT FORMED OVER THE
YEARS. WE HAVE IN THE STATE OF
CALIFORNIA FOR THESE YEARS AND
CERTAINLY SINCE THE SAN BRUNO
EXPLOSION BEEN CONDUCTING A
NATURAL A NATURAL EXPERIENCE IN
CRITICAL INFRASTRUCTURE SAFETY.
A SENSE IT IS A NATURAL
EXPERIMENT IN PRACTICE AND THAT
EXPERIMENT HAS BEEN FOCUSED ON
A QUESTION AND SEEKING AN
ANSWER IN A SENSE TO A QUESTION
WHAT LEVEL OF INFRASTRUCTURE
SAFETY. CAN BE ACHIEVED THE
LINE ALMOST EXCLUSIVELY ON
RETROSPECTIVE FINES AND
PUNISHMENTS IN SAFETY. FOR
ACCIDENTS ON THE PART OF
UTILITIES THAT OWN AND MANAGE
THE INFRASTRUCTURES. I THINK
OVER THE YEARS WE NOW HAVE
ENOUGH EVIDENCE TO FORM A
CONCLUSION ABOUT THIS QUESTION
OF THE LEVEL OF INFRASTRUCTURE
SAFETY. AND THAT ANSWER IS IT
IS NOT ENOUGH AS A LEVEL OF
SAFETY TO APPROX APPROPRIATELY
SAFEGUARD THE CITIZENS OF THE
STATE OF CALIFORNIA. SOME FOLKS
BACK UP I WANT TO DESCRIBE WHAT
I THINK TO BE. AS WHAT I'VE
EXPERIENCED IT. THE FEATURES OF
THE CURRENT- CALIFORNIA SYSTEM.
FIRST IT'S THE SYSTEM IS
CHARACTERIZED BY ADVERSARIAL
RELATIONSHIPS BETWEEN THE
REGULATED UTILITIES THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION THE STATE
LEGISLATURE MEDIA AND ADVOCACY
GROUPS. RETROSPECTIVE X. AFTER
ACCIDENT BLAME SEEKING AND
CONDEMNATION DOMINATES THE
SYSTEM I BELIEVE AS OPPOSED TO
THE PROMOTION OF SAFETY AS A
PROSPECTIVE INTER
ORGANIZATIONAL RESEARCH BASED
AND POTENTIALLY COOPERATIVE
PROCESS. OTHER COUNTRIES HAVE A
DIFFERENT APPROACH TO SAFETY.
REGULATION AND INFRASTRUCTURE
THEY DO HAVE COOPERATIVE JOINT
RESEARCH PROJECTS WE EVEN SEE
THIS IN THE FEDERAL SAFETY
AGENCIES LIKE THE FAA FOR
EXAMPLE WHICH IS HAD JOINT
PROJECTS TO IMPROVE COMMERCIAL
AVIATION SAFETY- BUT THIS
SYSTEM BASICALLY MAKES THAT
VERY DIFFICULT. AND IN FACT THE
REGULATORY AGENCIES THEMSELVES
THE PIERCING DOESN'T REALLY DO
ANY IN HOUSE REGULATION AND IS
INVOLVED IN JOINT RESEARCH.
PROJECTS WITH THE
INFRASTRUCTURES WITH OTHER
EXPERTS WITH OTHER
ORGANIZATIONS. CAREFUL FORWARD
LOOKING APPROACHES TO UTILITY
SAFETY ARE OVERWHELMED BY
SEARCH FOR FAST RESOLUTIONS AND
SOLUTIONS TO INCIDENTS AND
ACCIDENTS WE ARE SO EXCITED
DRIVEN. AND THE PRESS FOR A
SOLUTION OR RESOLUTION IS SO
POWERFUL THAT IN UTILITY
MANAGEMENT PEOPLE ARE JUST
LOOKING FOR A FIX IF THEY CAN
FIND IT AS FAST AS THEY CAN. IN
LAW WE SOMETIMES MAKE RULES OR
LAWS TO ADDRESS A PARTICULAR
FEATURE OF AN ACCIDENT AS
QUICKLY AS WE CAN BUT SOMETIMES
WE DON'T ACTUALLY THINK ABOUT
WHETHER THOSE LAWS WILL BE
EFFECTIVE WHETHER THEY CAN
ACTUALLY GAIN COMPLIANCE.
WHETHER IT'S WITHIN THE
CAPABILITY OF THE REGULATORY
AGENCY AGENCY TO ACTUALLY
ENFORCE THOSE LOS. IN THE
SEARCH FOR THESE SOLUTIONS AND
BLAME. COULD LOCATE BLAME AND
TO MAKE CORRECTIONS WE ARE ALSO
FOCUSED PRIMARILY ON LOCAL AND
PROXIMATE CAUSES OF ACCIDENTS
AND INCIDENTS RATHER THAN ON
LONGER TERM SYSTEMIC OR ROOT
CAUSES I KNOW THAT THE
INDEPENDENT REVIEW PANEL. DID
TRY TO LOOK AT ROUTE COST GROUP
CLASSES BUT OFTEN TIMES WE
DON'T IN VARIOUS- PROCEEDINGS.
HAVE A CHANCE TO DO THATNOR DO
WE APPLY THE RESEARCH FRAMEWORK
THAT WOULD ALLOW US TO DO IT
EFFECTIVELY. SO ALL OF THIS
MEANS IN MY VIEW THAT THE
SAFETY FOCUS IN. UTILITY
MANAGEMENT IN REGULATION AND
EVEN IN LAW RUNS UNFORTUNATELY
ONE ACCIDENT AT LEAST OR
INCIDENT BEHIND CURRENT
CONDITIONS CHALLENGES AND
OPERATIONS IN THE
INFRASTRUCTURE. ANOTHER WAY TO
PUT THIS IS. THE CURRENT
CALIFORNIA'S SYSTEM AND WE
SHOULD THINK OF IT AS A SYSTEM
AND NOT JUST LOOK AT YOU OF.
ORGANIZATIONS AGENCIES FOUR
PIECES OF IT. THE CURRENT
CALIFORNIA'S SYSTEM IS
PRODUCING FAR LESS SAFETY
PROMOTION AND EFFECTIVE
REGULATION THAT THE LEVEL OF
DEDICATION AND COMMITMENT OF
ITS PARTICIPANTS. AND I HAVE
SEEN THIS IN MY WORK WITHIN THE
INFRASTRUCTURES I HAVE
INTERVIEWED PEOPLE AT ALL
LEVELS AND ACROSS DEPARTMENTS
AND I'VE SEEN IT ALSO IN THE
TIME I'VE SPENT IN THE PUBLIC
UTILITY COMMISSION AS WELL IN
LOOKING AT THEIR OPERATIONS.
MANY OF THESE PARTICIPANTS IN
THE UTILITIES THE PC AND THE
LEGISLATURE ARE DEEPLY
FRUSTRATED BECAUSE THEY KNOW
THEY SHOULD BE ACHIEVING BETTER
RESULTS THEY WANT TO ACHIEVE
BETTER RESULTS THEY ARE. ARE
CONSTRAINED IN THE PRODUCTION
OF THOSE RESULTS I THINK IN
ADDITION TO THE ISSUE OF SAFETY
THE LARGER THIS IS A LARGER
FAILURE OF THE CURRENT
CALIFORNIA'S SYSTEM. TO UTILIZE.
HUMAN CAPACITY. THE SYSTEM
WASTE HUMAN CAPACITY. AND I
HAVE A WHOLE BUNCH OF SPECIFIC
DEFICIENCIES I COULD IDENTIFY I
DON'T HAVE TIME TO DO THAT NOW
BUT IF ANYONE HAS QUESTIONS I
HAVE ADDITIONAL SLIDES THAT
MIGHT ADDRESS SOME OF THESE
PARTICULAR DEFICIENCIES IN
SAFETY MANAGEMENT RISK
ASSESSMENT IT SEEMS TO ME AS A
PIPE IN THE UTILITIES AS WELL
AS THE PC AND THE DILEMMA OF
TRYING TO PROMOTE SAFETY
CULTURE IN ORGANIZATIONS. NOT
TO BE ENTIRELY NEGATIVE I DO
WANT TO OFFER US SET UP
SUGGESTIONS ARE REALLY ONE BIG
SUGGESTION THE FIRST IS THE
MAJOR ONE IS LET'S CONSIDER THE
PERFORMANCE OF THE CURRENT
CALIFORNIA INFRASTRUCTURE
SAFETY SYSTEM TO BE AN
IMPORTANT AND URGENT SYSTEM
PROBLEM. THAT FOCUS ONE
INSTITUTION OR ORGANIZATION
ALONE. I BELIEVE THIS CURRENT
FUNCTIONING OF THIS SYSTEM.
NEEDS TO BE ADDRESSED AND IS
WORTH THE PERHAPS OF A
STATEWIDE TASK FORCE. TO MORE
CAREFULLY UNDERSTAND THE SAFETY
DEFICIENCIES IN THE ROOTS AS
WELL AS TO DEVELOP A WIDER
RANGE OF POSSIBLE SOLUTIONS
THAT. COULD BE SEEN BY ANY OF
THE INDIVIDUAL PARTICIPANT
AGENCIES AND ORGANIZATIONS. A
STATEWIDE TASK FORCE WOULD
ALLOW US TO HEAR FROM PEOPLE
WHO'VE EXPERIENCED THE SAFETY
SYSTEM FROM THEIR INSTITUTIONAL
PERSPECTIVES. THEIR VIEWS OF
ITS STRENGTHS AND WEAKNESSES
THEIR ACCOMPLISHMENTS AND THEIR
FRUSTRATIONS IN THE SYSTEM. IT
SEEMS TO ME THAT IN THIS
FRAMEWORK OF A TASK FORCE WE
COULD BEGIN THE CONSIDER WHAT
ARE THE IMPORTANT FUNCTIONS.
FOR SAFETY PROMOTION AND
REGULATION THERE ARE A WHOLE
VARIETY OF THEM ONE OF THEM IS
ASKING IMPORTANT QUESTIONS ALL
OF THE WELL MANAGED
INFRASTRUCTURE THAT WE HAVE
LOOKED AT. ALWAYS ARE ASKING
QUESTIONS. WHAT HAVE WE LEFT
OUT. WHAT IS THE IMPLICATIONS
WHAT WE SUE ME WE NEED TO HAVE
PEOPLE WHO CAN ASK THOSE
QUESTIONS. IN ALL OF THE
INSTITUTIONS BUT ALSO FOR
ACROSS THE INSTITUTIONS. SO IF
THE REGULATION IS DEVELOPED BY
THE PEW SEAT HAS TO THINK ABOUT
WHAT ARE THE LIKELY RESPONSES
OF THE UTILITIES TO DOING THIS
WATER THEIR CAPACITIES TO
COMPLY. SAFETY RESEARCH AND
ANALYSIS WE REALLY HAVE TO
UPGRADE OUR GAME IN ACTUALLY
DOING RESEARCH THE LATEST
RESEARCH ON SAFETY MANAGEMENT
SAFETY CULTURE AND THINKING
ABOUT METRICS TO MEASURE SAFETY
CULTURE PROGRESS IT'S A VERY
DIFFICULT CHALLENGE FOR
REGULATORS TO PROMOTE AND
MONITOR AND OVERSEE THE
DEVELOPMENT OF SAFETY CULTURE.
REGULATION AND RULE MAKING
WHERE CAN WE LOCATE THIS THE
CPC HAS A WHOLE VARIETY OF
REGULATORY RESPONSIBILITIES.
MANY OF WHICH ARE AND OTHER
MISSIONS SOME OF WHICH DON'T
HAVE A LOT TO DO WITH SAFETY
DIRECTLY. ACCIDENT AND INCIDENT
INVESTIGATIONS MAYBE WE COULD
HAVE THE SAFETY BOARD
EQUIVALENT TO THE N. T. S. B.
THAT COULD INDEPENDENTLY AND
WITH EXPERTISE AND WITH GREAT
RESPECT IN THE STATE. UNDERTAKE
THESE INVESTIGATIONS INSPECTION
AND ENFORCEMENT. PRACTICES IN
COMPLIANCE RIGHT NOW THE CPUC
IS DEALING WITH THIS PROBLEM OF
AN INTEREST OF THE SAFETY
CULTURE DEVELOPMENT. IN P.
JEANNIE IT HAS NOWHERE NEAR THE
INSPECTION FORCE. IT HAS THEY
DID NOT THEMSELVES HAVE THE
TRAINING TO ACTUALLY.
UNDERSTAND THE DEVELOPMENT OF A
SAFETY CULTURE AND KEEP TRACK
OF IT ON AN ONGOING BASIS IN
INDIVIDUAL. OUR INFRASTRUCTURES.
THE CONTINUOUS IMPROVEMENT FOR
SAFETY WHO'S GOING TO BE THE
ADVOCATE FOR THE- INTERNAL
IMPROVEMENT FOR THE IMPROVEMENT
OF SAFETY IN THE AGENCIES. ARE
IN. IN THE REGULATORY AGENCIES
AND IN THE INFRASTRUCTURES. SO
AND LASTLY MAYBE WE SHOULD
THINK ABOUT IN A STATEWIDE TASK
FORCE FINDING A HOME FOR
RESEARCH AND REGULATION OF
INTERCONNECTED INFRASTRUCTURE
RISK. RIGHT NOW WE ARE NOT
REGULATING FOR INTERCONNECTED
INFRASTRUCTURE RISK. THE
UTILITIES ARE NOT DOING RISK
ASSESSMENTS THAT CONSIDER INTER
ASSET LET ALONE ENTER
INFRASTRUCTURE RISKS. WE NEED
TO TAKE THIS ON. A FEW YEARS
AGO WHEN I WAS LOOKING AT THE
PIECES CPUC IN THEIR SAFETY
MANAGEMENT SYSTEM I MENTIONED
THIS TO MORE TOP LEVEL PERSON
IN THE POLICY UNIT POLICY
LEVEL. AND I SAID YOU'RE NOT
REGULATED FOR INTERCONNECTED
INFRASTRUCTURE RISK HE LOOKED
AT ME AND SAID CAN'T YOU SEE
WE'RE BUSY COME BACK IN FIVE
YEARS MAYBE WE CAN TALK ABOUT
THIS WELL IT'S ALMOST BEEN FIVE
YEARS SO IT SEEMS TO ME IT'S
TIME IT'S TIME TO START TALKING
ABOUT THE SYSTEM ADDRESSING.
INTERCONNECTED INFRASTRUCTURE
RISK THANK YOU VERY MUCH FOR
LISTENING AND I APPRECIATE-
HAVING A CHANCE TO PRESENT THIS
AND I'M HAPPY TO RESPOND. TO
ANY QUESTIONS LATER ON. THANKS
FOR YOU FOR MUCH FOR THE FILM
AND THE- YOU ALWAYS. PROVIDED A
REAL. A REALISTIC APPROACH AND-
CERTAINLY AT AN HONEST
APPRAISAL OF FACED SAFETY RISK
AND- A- AND AN ASSESSMENT SO
THANK YOU VERY MUCH- TO ANY OF
OUR MEMBERS HAVE ANY QUESTIONS.
AT THIS POINT. TWO OF OUR FIRST
PANEL. FIVE HAVE SOME MYSELF
THAT I COULD START WITH AND IF
SOME COME UP- PLEASE RAISE YOUR
HAND AND WE WILL GO TO THEM
FIRST OF ALL THANK YOU ALL TO
THE PANELISTS FOR BEING HERE
TODAY AND ESPECIALLY WANT TO
THANK YOU FOR THE WORK YOU'VE
DONE EITHER SPECIFICALLY DURING
THE SAN BRUNO. INCE'S OR IN THE
YEARS SINCE. YOUR SAFETY
PROMOTION HAS CERTAINLY
IMPROVED OUR LIVES AND THE
LIVES OF CALIFORNIANS. WE ARE
RULY GRATEFUL FOR THAT- IT TO
A DIRECTOR HALL. QUESTION TWO
FIVE MEG- YOU MENTIONED IN YOUR
TESTIMONY THAT THE VAST
MAJORITY OF NTSB'S
RECOMMENDATIONS. FROM THE SAN
BRUNO EXPLOSION HAVE BEEN
ADDRESSED BUT SIX REMAIN OPEN.
I SEE FROM THE LIST PROVIDED TO
THE SUBCOMMITTEE THE TWO OF
THESE WERE RECOMMENDATIONS TO
P. JEANNIE AND- THE CPUC ASKING
FOR SPIKE TESS. FOLLOWED BY
HYDROSTATIC PRESSURE TESTS ON
LINES WHERE THE MAXIMUM
ALLOWABLE OPERATING PRESSURE
COULDN'T BE DETERMINED. I TO
GET US UP TO SPEED COULD YOU
TELL US WHY- THESE
RECOMMENDATIONS ARE STILL OPEN
AS YOU KNOW THEM AND THE IDEA I
FROM MY UNDERSTANDING FROM
LOOKING AT THE SOME OF THE
LETTERS AND RESPONSES THAT
THERE WAS A AN ACCEPTABLE
RESPONSE PROVIDED BY P. JEANNIE
AND THE CPUC OVER THOSE TWO
ISSUES. DO YOU HAVE A THE SOME
PRETTY CLEAR INFORMATION YOU
CAN SHARE WITH THAT OF IT ALL.
CERTAINLY THOSE PARTICULAR
RECOMMENDATIONS REQUIRED- THAT
PG&E GO AND RETEST. MANY OF
THEIR LINES TO REALLY ESTABLISH
WHAT THE- OF. MAXIMUM ALLOWABLE
WORKING PRESSURE SHOULD DATE.
AND PG&E HAS DILIGENTLY GONE
AFTER THAT THEY'VE GONE AFTER
THE BIGGEST SEGMENTS FIRST- AND
AT THIS POINT THEY'VE COMPLETED
IT. ALMOST ALL OF THEIR WORK.
BUT THERE ARE SOME SMALL
SEGMENTS THAT STILL NEED TO BE
TESTED- THAT ARE SOME OF THE
MOST DIFFICULT TO TEST. AND
IT'S BEEN OUR- DECISION TO KEEP
THESE RECOMMENDATIONS OPEN. AND
TOLD EVERY LAST PIECE OF PIPE.
IS EITHER TESTED OR REPLACED.
ALTHOUGH YOU KNOW I'M PLEASED.
WITH THE PROGRESS THAT THEY'VE-
YOU KNOW COMPLETED ALMOST ALL
OF THEIR SYSTEM THERE ARE THESE
SMALL AREAS THAT STILL HAVE YET
TO BE DONE AND WE WILL KEEP THE
RECOMMENDATIONS ARE OPEN UNTIL
WE CAN BE TOLD THAT EVERY LAST
START SEGMENT HAS BEEN TESTED.
IF I UNDERSTAND IT IN- THE
STATUS REPORT IN AUGUST OF
TWENTY FOURTEEN STATED THAT
THE- THAT THEY NOTED THAT PG&E
ESTIMATED THAT THOSE
RECOMMENDATIONS WOULD HAVE BEEN
COMPLETED BY TOWARD BE
COMPLETED BY TWENTY SEVENTEEN
THIS OBVIOUSLY WERE. STILL
THREE YEARS BEHIND THAT AND-
AND SO IS THAT THEN OBVIOUSLY
THAT'S STILL THE CASE THAT-
FROM WHAT WE'VE WHAT WE'VE
HEARD AND I KNOW SOME OF THOSE
LINES AND ESPECIALLY THE
ARGUMENT I REMEMBER FONG ONE
THIRTY TWO IN SAN BRUNO. TO WHY
THEY COULDN'T OTHER THAN THE
COST WAS THAT THEY COULD NOT
PICK THOSE LINES TO ACTUALLY
GET IN AND LOOK AT THOSE-
BECAUSE OF THE ANGLES AND SOME
OF THE CHALLENGES THERE AND I'M
ASSUMING THAT STILL.
APPROPRIATE ELSEWHERE AND
THAT'S WHAT SOME OF THE
PROBLEMS THAT WE'RE SEEING- YOU
ALSO MENTIONED AND THAT THE
NTSB RECOMMENDATIONS THAT AROSE
FROM THE EXPLOSIONS THAT
OCCURRED TWO YEARS AGO IN
MASSACHUSETTS- CAN YOU PROVIDE
A BIT MORE DETAIL ON WHAT YOU
WERE REPORT FOUND REGARDING THE
LACK OF PROFESSIONAL ENGINEERS
APPROVING NATURAL GAS PROJECTS
THAT. YOU MENTIONED. EARLIER
THAT NTSB SENT A LETTER TO THE
STATE OF CALIFORNIA IN TWENTY
NINETEEN ASKING US TO ADOPT
THIS RECOMMENDATION BUT YOU'RE
STILL AWAITING A RESPONSE FROM
THAT THAT LETTERS I GUESS I'M.
CONCERNED OF. ONE THE- OR THE
UNDERSTANDING THAT THOSE
ENGINEERS. THE IMPORTANCE OF
THAT I GUESS THAT'S THE
OBVIOUS- MIGHT BE BUT IT'S WHAT
YOU FOUND IN THAT CASE AND- AND
HAVE YOU STILL NOT RECEIVE THAT
RESPONSE FROM CALIFORNIA. AS
FAR AS I KNOW WE STILL HAVE NOT
RECEIVED A RESPONSE BUT- WHAT
WE FOUND IS THE REVIEWS CYCLE
FOR. THE DRAWINGS AND
INSTRUCTIONS FOR THIS PROJECT
IN MASSACHUSETTS WHICH WAS A
CAST IRON REPLACEMENT PROJECT
WHICH IS SOMETHING THAT. IS
OCCURRING ACROSS THE COUNTRY.
THE REVIEWS THAT WERE CONDUCTED
WERE PRIMARILY FINANCIAL. AND
NOT SAFETY REVIEWS AND THE
SENIOR MANAGERS THAT SIGNED OFF
ALTHOUGH THEY HAD PROFESSIONAL
ENGINEER'S LICENSES THEY WERE
REALLY ONLY CONDUCTING A
FINANCIAL REVIEW OF THE
PROJECTS AND IN FACT THE LEVEL
AT WHICH PROJECTS GOT SIGNEDOFF ON WAS BASED SOLELY ON THE
COST OF THE PROJECT. ONE OF THE
THINGS THAT WE THOUGHT THIS
RECOMMENDATION WITH AP STAMP AN
APPROVAL ON PLANS AND DRAWINGS
THERE IS A PERSONAL
ACCOUNTABILITY THAT ENGINEER
THAT SIGNS THOSE PLANS SIGNS
THOSE DRAWINGS IS PERSONALLY
ATTESTING TO THE SAFETY OF HIS
WORK. AND WE FELT THAT THAT
ACCOUNTABILITY WAS MISSING IN
THE STRUCTURE OF HOW THESE
PROJECTS WERE BEING RUN AND
HOW- UTILITIES WERE HANDLING
THESE PROJECTS- WE INITIALLY
MADE A RECOMMENDATION TO
MASSACHUSETTS TO DO THAT BUT
THEN DID FURTHER RESEARCH AND
FOUND THAT THIRTY ONE STATES
ACROSS THE COUNTRY. EXEMPTED
UTILITIES FROM THIS REQUIREMENT
OF HAVING A P. E. C. O. PLANS
AND DRAWINGS- SO WE MADE THAT
RECOMMENDATION ACROSS-
NATIONALLY AND WE'RE STILL
WAITING ON RESPONSES FROM SOME
OF THE STATE'S CALIFORNIA BEING
ONE OF THEM AND THANK YOU TO
ALL AND- I HOPE THE CPUC WHEN
THEY TESTIFY IN THE PAST SECOND
PANEL WILL BE PREPARED TO.
ANSWER WHY THESTATE HAS YET TO
RESPOND TO THAT RECOMMENDATION-
AND THANK YOU AGAIN FOR THE
TESTIMONY TODAY NOW WILL GO ON
TO THE I. R. P. REPORT MISTER
P. ONLY. YOU WERE PART OF THE
TEAM INVOLVED AS YOU MENTIONED
ON THE INDEPENDENT REVIEW PANEL
OF EXPERTS INVESTIGATING THE
SAN BRUNO EXPLOSION. THAT
RESEARCH REPORTS BEEN EQUAL
FOCUS ON THE UTILITY AS IT DID
ON ITS REGULATOR THE CQC AND
ASIF USUALLY FOCUS WAS NOT JUST
WANTED PROVIDING MORE OVERSIGHT
BUT THAT THE CQC HAD CULTURAL
AND ORGANIZATIONAL ISSUES THAT
NEEDED TO BE ADDRESSED. YOU'RE
FAMILIAR WITH THE PROPER BUT NO
WILL BEGINNING HIS EASY
CONTINUING. HIS HARD. WHAT OF
THE- FROM SAN BRUNO HAVE BEEN
TO. IN IN YOUR EXPERT OPINION
WHERE DO FUTURE TRAPS OF LIFE
IN THAT. BOTH THE THAT'S THAT'S
A TOUGH QUESTION THE CREDIT
PRECIADO IT. THE I THE GREATEST
CHALLENGES- MOVING FORWARD. ARE
ARE IN THE AREA OF. I GUESS I
WOULD I WOULD SEE IT SUSTAIN
SUSTAINING THE WORK THAT IS
BEING DONE AT THAT HAS BEEN
DONE- AS IT'S BEEN POINTED OUT.
WE'RE DOING OR WE'RE DOING MORE
WITH LESS PEOPLE- AND
THEREFORE- PEOPLE'S EFFORTS.
CAN TEND TO REGRESS TO THE
MOMENT- AND NOT MAINTAIN THE
LONG TERM VIEW- I LOOK AT IT
FAIRLY SIMPLY AND AT WHEN I
LOOK AT CONSTRUCTION PROJECTS
AND SO ON AND I SAY TO MYSELF
YOU KNOW WHAT I WANT MY- MY
GRANDCHILDREN OR MY- MY
DAUGHTER MY GRANDMOTHER. LIVING
NEXT TO THIS THIS THIS THIS
THIS CAR. INFRASTRUCTURE GOING
INTO THE GROUND- SO THE ROOTS
THE CHALLENGE IS AS A I USE THE
WORD MINDFUL IT'S BEING. A
MITIGATING DISTRACTIONS THAT
ARE AROUND WHETHER IT BE
TELEPHONES AND SO FORTH- AND
LIKEWISE TO RECOGNIZE THAT
SAFETY TAKING A MILITARY
APPROACH IS YOU'RE LOOKING OUT
FOR THE PERSON NEXT TO YOU
THEY'RE LOOKING OUT FOR YOU
THAT THAT YOU'RE ABLE. TO
WITHOUT FEAR OF RETRIBUTION BOB
POINT OUT WHERE SOMEONE IS NOT
FOLLOWING THE OF THE PROCEDURE
DOCUMENTING THESE NEAR MISSES
THAT- THAT ARE REALLY A LEADING
INDICATOR OF MORE SYSTEMIC
PROBLEMS SO I THOSE ARE SOME
AREAS THAT I THINK REALLY ARE
THE CHALLENGE OF FOR JUST IT IT
IT'S ABOUT PEOPLE. AND S. AND-
MAKING THEM BE ABLE TO SUCCEED
IN THEIR- IN THE WORK THAT THEY
DO. VERY GOOD THANK YOU I READ
ONE MORE QUESTION FOR YOU
MISTER PELION AND I KNOW
SENATOR STERN HAS A QUESTION-
HE I'VE ALSO HEARD YOU
DISCUSSED IN IN PAST
PRESENTATIONS HOW THE SHARING
OF LESSONS LEARNED IS AN- IS AN
IDENTIFIED GAP ACROSS THE
UTILITY INFRASTRUCTURE AND
INDUSTRY. AND EVEN SOMETIMES
ACROSS THE VARIOUS DIVISIONS OF
A CORPORATION AND IT'S BEEN MY
OPINION AND AS WE'VE WATCHED
OVER THE YEARS P. JEANNIE
LEARNED. AND REALLY THE I THINK
A GOOD JOB IN MANY AREAS OF
IMPLEMENTING CORRECTIVE ACTIONS
FROM THE SAN BRUNO IN ITS GAS
DIVISIONS BUT THOSE LESSONS
WEREN'T SHARED ADEQUATELY WITH
ITS ELECTRIC DIVISION AS WE'VE
SEEN IN UNFORTUNATELY
CALIFORNIA HAS PAID A HIGH AND
PAINFUL PRICE FOR THAT. WHAT
ARE YOUR WHAT ARE STRATEGIES OR
TOOLS THAT REGULATORS CAN USE
TO ENSURE PROMOTION OF SAFETY
SO THAT IT'S ACCESSIBLE TO BOTH
INTERNAL. AND EXTERNAL
STAKEHOLDERS. I THINK THE MOST
TO TWO POINTS ONE IS LIKE I
TALK ABOUT TRUST HI A TALK
ABOUT THE END ABOUT A
COLLABORATIVE RELATIONSHIP. IT
PROVIDING AN OPEN DISCUSSION.
IT'S ESSENTIAL BETWEEN IT
WHETHER BETWEEN ALL THE
STAKEHOLDERS THE REGULATORS THE
PIPELINE OPERATORS THE
CONTRACTORS- AND AT THEN AGAIN
A SYSTEM PROCESS. WITHIN THE
WORK TO SHARE THOSE LESSONS-
YOU KNOW WE DO WITNESSING YEAH
SKINNER. P. GENIES AN EXAMPLE
WHERE THEY HAVE NUMEROUS
DIVISIONS IN DIFFERENT PARTS OF
THE OF THE- OF THE STATE AND
THEIR SERVICE TERRITORY AND-
YOU KNOW SOMETHING CAN HAPPEN
IN ONE AREA. YOU KNOW FIND ONE
KIND OF DEFECT AND IT BECOMES
TRIBAL AND LOCAL KNOWLEDGE SO
IN ORDER TO EXPAND THAT- IT
TAKES A NUMBER OF SYSTEMS AND
PROCESSES BUT IT BOILS DOWN TO
BEING- BEING TO OPEN
FACILITATING THAT THAT
EXCHANGE. BOTH INTERNALLY AND
EXTERNALLY AND- AND RECOGNIZING
THAT THERE IS A SYMBIOTIC
NATURE BETWEEN REGULATION
REGULATORS THE OVERSIGHT. AT
THE FACT THAT THEY'RE BRINGING
THEIR EXPERIENCE FROM MULTIPLE
OUR- OPERATORS TO. THE
INDIVIDUAL OPERATOR SO. I THINK
FOSTERING THAT THAT THAT THAT-
EXCHANGE IS IMPORTANT VERY GOOD
THANK YOU REVEALING NOW GO TO A
SENATOR STERN. YOU HAD A
QUESTION THE FLOOR IS YOURS.
YEAH JUST VERY BRIEFLY THANK
YOU MISTER CHAIRMAN I
APPRECIATE THE TESTIMONY I
DON'T OF- YOU YOU'VE DUG IN
PRETTY THOROUGHLY HERE I JUST I
DID WANT TO FOLLOW UP ONE TO
TWO PARTICULAR ITEMS I WAS
INTERESTED IN THE- ASK FORCE
RECOMMENDATION FROM DR SHOWMAN
AND HOW. YOU SEE THAT
INTERFACING- WITH THE CURRENT
RISK BASED. RATEMAKING PROCESS
THROUGH THE S. MAP AND RAMPS-
PROCESS. HOW DO YOU SEE THAT
THAT'S WHAT A TASK FORCE
CONCEPT- INTERFACING WITH THE
SORT OF CURRENT PUBLIC
UTILITIES COMMISSION PROCESS
AND I THINK ONE OF THE
RECOMMENDATIONS THAT THAT. D.
AS I RECALL FROM THE LOOK.
PANEL WAS FOR- AT THE
INVOLVEMENT OF THE OF THIS C.
P. UC'S SAFETY ARM IN IN RATE
CASES- WHICH IN IN THE PAST
THEIR KNOWLEDGE IN. AND
EXPERIENCE WERE YOU KNOW DEVOID
IN THAT PROCESS- I'M NOT OVERLY
AND TO BE QUITE HONEST I'M NOT
OVERLY FAMILIAR WITH WITH THE
DIDN'T WHAT WHAT THE- RAMPS AND
THE OTHER IS. NOT AND THAT'S
ALL RIGHT I. DIFFERENT QUESTION
FOR YOU MIND THAT THAT FIRST
COURSE WAS MORE FOR DOCTOR
SHAMAN BECAUSE I SAW IN- YOUR
REMARKS DR SHOWMAN ABOUT THIS
TASK FORCE CONCEPT. AND MAYBE
THE INTERFACE WITH THE CURRENT.
RIGHT J. KENNEDY CAN YOU HEAR
ME YES OKAY RIGHT I'VE BEEN
ACTUALLY FOLLOWING THAT UP
PROCESS OF RELATIVELY CLOSELY-
AND I HAVE SOME ROOM I THINK IT
TASK FORCE NEEDS TO LOOK AT
THIS THIS PROCESS MORE
CAREFULLY- AS YOU MAY KNOW THE
P. C. HAS ITSELF- ENDORSED A
PARTICULAR APPROACH TO DOING
RISK ASSESSMENTS. BY THE
UTILITIES. A MULTI ATTRIBUTE
VALUATION FUNCTION MESSAGE OUR
AND THAT'S SUPPOSED TO ALLOW
THE UTILITIES TO ACTUALLY
COMPUTE RISK SPEND DEFICIENCIES
DOWN TO A YEARLY. NUMBER OF.
FRACTIONS OF SAFE. OF SERIOUS
INJURIES OR FATALITIES PER YEAR
SAVED BY CERTAIN INVESTMENTS
THE PROBLEM I HAVE WITH THOSE
ARE THOSE ASSESSMENTS DO NOT
USE HUMAN AND ORGANIZATIONAL
AND MANAGEMENT VERY BOOKS THERE
ARE TREMENDOUS UNCERTAINTY AND
NATIONAL RESEARCH COUNCIL'S
JUST COME DOWN REALLY HARD IN A
STATEMENT ABOUT RISK
ASSESSMENTS THAT DO NOT
CHARACTERIZE THEIR UNCERTAINTY.
THAT OFFER SINGLE VALUE
STATEMENTS AND NUMBERS WITHOUT
REALIZING OR WITHOUT EVEN
ADDRESSING WHAT IS LEFT OUT IN
TERMS OF VARIABLES WHAT WHAT ON
YOUR- WHAT IT REAL ON
RELIABILITY THERE MIGHT BE IN
THE ACTUAL NUMBERS THEMSELVES
WELL THIS IT SEEMS TO ME IS
THAT IS A HUGE ISSUE FOR THOSE
EFFORTS. TO RATIONALIZE IF YOU
WILL THE SAFETY INVESTMENT
PROCESS. IN THE RAPE CASES
ULTIMATELY FIRST AND THEN YOU
NEED A FIGHT IF I COULD SAY
ABSENCE MAKES. PUT IT MORE
SIMPLY. TO QUANTITATIVE IN TECH
OF MATCH NOT QUALITY. AND HUMAN.
I THINK THAT BE MORE
QUANTITATIVE BUT WITH A RANGE
OF ESTIMATES AND ADDING MORE
VARIABLES ON SO WHAT HAPPENS IS
A FALSE PRECISION IS CONVEYED
ABOUT THE ACTUAL. FIRE IS ATION
OF RISKS WITH RESPECT TO
INVESTMENTS MADE AND SELL
INVESTMENTS WILL BE MADE WHICH
WILL NOT YOU WON'T KNOW WHAT
THE OUTCOME WILL BE YOU CAN
TALK ABOUT THE INVESTMENT OUT
REPLACING A PIPELINE FOR
EXAMPLE BUT IF THE INSPIRED BY
ISN'T EXPECTED. IF IT'S NOT
MAINTAINED IF IT'S NOT OPERATED
WITHIN ACCEPTABLE PRESSURES AND
TEMPERATURES THEN YOU DON'T GET
THAT RISK MITIGATION OUT OF IT
AND RIGHT NOW THE P. YOU SEE IS
NOT IN POSITION TO ESTIMATE THE
SAFETY MANAGEMENT CAPACITY.
SURROUNDING THESE HARD HARDWARE
INVESTMENTS THAT IS TRYING TO
GET SO I THINK THIS IS A REAL
ISSUE AND IT'S A PRACTICAL
ISSUE I'M I KNOW I'M RAMBLING
ON HERE NO NO TELL ME BUT IT
WAS NOT ONLY THE NATIONAL
ACADEMY OF SCIENCES BUT SOCIETY
FOR RISK ANALYSIS HAS ALSO.
COME DOWN ON THE FAILURE
FAILURE TO CHARACTERIZE
UNCERTAINTIES IF THE STATE IF
THE PSC WERE TO ACTUALLY MAKE
A- CORRECT CASE DECISION WHICH
ALLOWED THE UTILITIES TO INVEST
IN SOMETHING AND GAIN
COMPENSATION THROUGH RATES.
THEY WOULD BE VERY VULNERABLE
TO COURT SUITS PEOPLE COULD
TAKE THEM TO COURT AND HAD
EXPERT WITNESSES FROM THE
NATIONAL ACADEMY OR FROM THE
SAFETY PEOPLE WHO ARE PART OF
THE SOCIETY FOR RISK ANALYSIS
IT'S JUST A VERY POOR
FOUNDATION. AND I THINK WE NEED
TO LOOK AT THIS PROCESS A LOT
MORE CAREFULLY AND WE NEED TO
ADVANCE OUR UNDERSTANDING OF
SAFETY MANAGEMENT SAFETY
CULTURE AS VARIABLES IN
ASSESSING RISK AND RISK
MITIGATION EXCELLENT THANK YOU
FOR THAT MY ONE OTHER QUESTION
AND WE FOCUSED A LOT. ON THIS
PANEL AND- IN GENERAL IT IS
PROCEEDING BACK TYPE LINE
SAFETY SPECIFICALLY- I HATE IT
IF IT'S OUTSIDE THE SCOPE I
UNDERSTANDBUT PART OF THAT THE
DISASTER AT LEAST CANYON WAS
ALSO ABOUT. STORAGE RIGHT
SAFETY OUR FENCE A IS NOT HERE
TODAY THE BETTER LEVEL AS WELL
AS PART ENERGY DID. ONCE EIGHT
DOT WAS LOOK TO ADOPT GAS
SAFETY MEASURES THAT ARE STILL
MISTER STATE WHY BUT MINOR IS
THE ADMINISTRATION HAS. ROLLED
BACK MANY OF THOSE EFFORTS TO
PROMULGATE GUIDELINES IN THE
REGULATIONS. ANY COMMENTS I
DIDN'T KNOW IF ANY OF OUR
PANELISTS WERE FOLLOWING UP
LIKE DOES THAT LACTOSE. FEDERAL
OVERSIGHT INACTION LEADS OUR
STATE MORE VULNERABLE. THIS IS
AYE AS I RECALL- FILMS- ISSUED
AN EMERGENCY. I'LL SAY ORDER.
THAT THAT THAT. THAT THAT
CALLED FORTH FOR STORAGE
OPERATORS TO ADOPT ERTAIN-
ANSI STANDARDS AS IT RELATES TO
YOU KNOW THE WELL THE WELL THE
WELL IN THE MAINTENANCE OF THAT
AND YOU'RE RIGHT THAT WAS AND
THAT THE YOU KNOW THE WAY
OPERATORS LOOK AT IT IS THAT'S
NOT PROMULGATED REGULATIONS SO
IT'S A IT'S A NICE TO HAVE. ADD
I THINK THOSE TWO. ARE YOU KNOW
OUR OUR OUR OUR GOOD I
ENCOURAGE. ALSO TO LOOK
INTERNATIONALLY- HIGH SO
STANDARDS- AND- IT ENDED UP
DON'T. YOU THINK CALIFORNIA'S
STORAGE INDEPENDENT OR ARE YOU.
ARE HEADED TO KERR ON ON THAT
IS. THAT THE FEDERAL. IS
CRITICAL. I'M I CAN'T REALLY I
CAN'T TO ASSESS. I DON'T INTO
THE INDIVIDUALS OKAY WHILE
SAYING THAT ALSO FOR A FUTURE
PANEL I'M SURE THAT YOUR
UTILITIES AND PC MAY HAVE SOME
INSIGHT THERE AND YOU AND
MISTER CHAIRMAN AND ALL
CHANNELS FOR YOUR TESTIMONY.
THANK YOU SENATOR STERN THE
REQUESTED FOR PROFESSOR SHERMAN
THE OF AND WE TALKED A LITTLE
BIT ABOUT- WITH THE TOOLS THAT
REGULATORS CAN USE TO ENCOURAGE
SAFETY FROM- THE ENTITIES THAT
THEY REGULATE THE- AND I KNOW
YOU STUDY THIS THIS IN DEPTH-
PERHAPS YOU CAN TOUCH AND WHAT
TOOLS. ARE USED IN OTHER
INDUSTRIES INDUSTRIES I KNOW
YOU'VE SPENT A LOT OF TIME AND-
ON NUCLEAR THE IN NUCLEAR IN
INDUSTRY AND AERONAUTICS AND
HOW THEY HAVE DONE THIS AND HOW
THAT THAT DIFFERENCE THERE.
THAT WE'VE SEEN I KNOW- OUR
REGULATORS ARE TYPICALLY LEFT
WITH FINES. OR AND CITATIONS.
ANY OUT COMPLY. IN THIS HAD
MIXED. SO THOUGHTS PLAY YEAH
WHAT ONE DID. THIS EVAN TO ME
IS THAT BOTH THE NUCLEAR
REGULATORY COMMISSION AND THE
FEDERAL AVIATION
ADMINISTRATION. THEY DO
RESEARCH THEY ACTUALLY ARE
SOURCE OF RESEARCH THEMSELVES
AND THEY CONTRACT OUT
SPECIFICALLY FOR RESEARCH ON
SAFETY QUESTIONS. OF A
PROSPECTIVE NATURE NOT JUST THE
RETROSPECTIVE. NATURE AND I
THINK THAT'S SOMETHING THAT'S
REALLY DEFICIENT IN OUR
APPROACH IT'S A TOOL THAT IS
NOT IN THE CURRENT KIT OF THE
PUBLIC UTILITIES COMMISSION. SO
THEY HAVE TO THEY MAY HAVE
HIRED. A CONSULTANT OR HAD THE
UTILITY HIRING CONSULTANTS. BUT
THAT USUALLY IS IN THE CONFINES
OF NARAL CONFINES OF THE
PRECEDING ABOUT IN A SPECIFIC
ACCIDENT- THIS ISSUE OF SAFETY
METRICS. WE HAVE ANY THE CPS
DOES NOT HAVE THE INDICATORS.
IN IN ANY NEEDS TO HAVE METRICS
AND IT NEEDS TO WORK THOSE OUT
WITH UTILITIES THEMSELVES SO
THEY MAKE SENSE TO UTILISE IS A
LOT OF INFORMATION IN THE
UTILITIES- ABOUT WHAT METRICS
WOULD MAKE SENSE WHAT WHAT
THINGS ARE LEADING INDICATORS
WITH RESPECT TO THE- ATIONS ARE
DEFICIENCIES IN SAFETY
MANAGEMENT- FOR THE LAPSES IN
SAFETY CULTURE. SO I THINK THAT
THAT RESEARCH AND DEVELOPMENT.
PROCESS IS REALLY IMPORTANT AND
THEN AGAIN I GO BACK TO THE
INSPECTION THE THIS PUBLIC
UTILITY COMMISSION IN THE STATE
DOES NOT HAVE THE INSPECTIONS
TOOL TO KEEP TRACK OF WHAT IS A
VERY. COMPLICATED. LONG TERM UP
ON CERTAIN PROCESS OF
DEVELOPING SAFETY CULTURE. IT
IS AN UNCERTAIN JOURNEY AND
IT'S A CONSTANT JOURNEY AND IT
NEEDS THE P. C. NEEDS TO HAVE
AN INSPECTION FORCE OF PEOPLE
WHO CAN BE CONTINUALLY AROUND
THE PUBLIC THE NATIONAL NUCLEAR
REGULATORY COMMISSION HAS TO
RESIDENT INSPECTORS FOR EVERY
ONE OF ITS NUCLEAR PLANTS AND-
NUCLEAR PROCESSING PLANT STATED
OVERSEAS THERE THERE ALL THE
TIME- DID YOU SEE DOESN'T HAVE
TO GET TO THAT LEVEL BUT IT
NEEDS TO HAVE PEOPLE WHO ARE
NOT PEOPLE. SO THEY CAN GO MEET
BE PART OF THE OPERATIONS WATCH
THEM IN REAL TIME TALK TO
PEOPLE- AND HAVE THE SKILLS AND
THE TRAINING TO KNOW WHAT TO
LOOK FOR IN CONNECTION WITH A
SAFETY CULTURE IN L. THOSE
ORGANIZATIONS THAT'S IN IN A
REALLY IMPORTANT TOOL THAT IT
DOESN'T HAVE IN ITS KICK SO I
THINK THAT YOU KNOW THOSE ARE
TWO THINGS THAT. OUR REALLY NO
GAPS IN OUR CURRENT APPROACHES.
THE TO THE VERY SIGNIFICANT IN.
A JUDO AND YOU'VE HEARD ONE OF
THE TOOLS DISCUSSED WITH
CALIFORNIA UTILITIES HAS BEEN
THE FINANCIAL INCENTIVIZING.
SAFE PERFORMANCE BASED ON
CERTAIN AGREED METRICS THE- IT
RANGES FROM INCENTIVES TO PACK-
PACKAGES FOR SENIOR MANAGEMENT
OR TIME UTILITIES RATE OF
RETURN TO SAFETY. WHAT ARE THE
PITFALLS OF SUCH A TOOL TO BE
USED OF THOSE ARE. THOSE ARE
AND THEY HAVE THEIR MANY. FIRST
OFF. ONE OF THE THINGS IT'S
INTERESTING IS THE MOTIVATION
OF PEOPLE TO BE SAFE- PEOPLE
HAVE MOTIVATION OF THE TYPES.
MANY OF THEM ARE. SOME OF THEM
ARE COERCIVE YOU'LL BE PUNISHED
IF YOU DON'T DO X. SOME OF THEM
ARE ON NORMATIVE. BEEN A GOOD
SAFETY CULTURE. PEOPLE HAVE AN
IDENTITY THEY HAVE A
RESPONSIBILITY FOR SAFETY AS
PART OF WHO THEY ARE. WHEN YOU
TRY TO ADD INCENTIVES ON TOP OF
THAT BELIEVE IT OR NOT IT
ACTUALLY UNDERMINES THE SENSE
OF THEIR PERSONAL AND
PROFESSIONAL IDENTITY AS
SAFETY. PROFESSIONALS THE OTHER
SIDE OF COURSE IS WE DO HAVE
EVIDENCE THAT IF IT'S A HIGH
STAKE METRIC. WHERE HUGE
FINANCIAL AMOUNTS ARE INVOLVED.
OR EVEN MAJOR PUNISHMENTS TO
THE METRIC PEOPLE WILL TRY TO
MANAGE TO THE METRIC OR DISTORT
THE METRIC. THAT THOSE ARE REAL
PITFALLS IF YOU CAN TAKE THE
CASE OF P. JEANNIE. I WROTE
SOME TESTIMONY AFTER THE
LOCATED MARC CASE POINTING OUT
WHAT A DRAMATIC CASE THAT WAS
TO SHOW. THE LACK OF A SAFETY
CULTURE IN THAT ORGANIZATION.
IF YOU. IMPOSE BENEFITS. FOR
METRICS IN A SYSTEM THAT
DOESN'T HAVE SAFETY CULTURE
CONSTRAINTS. THEN I THINK YOU
RUN AT EVEN GREATER RISK OF
PEOPLE DISTORTING THEIR
BEHAVIOR TO LOOK GOOD TO THE
METRIC WHICH IS A WELL
UNDERSTOOD PHENOMENON IN A
VARIETY OF ORGANIZATIONS. THANK
YOU IT IN AND JUST ONE OTHER
QUESTION TO DIRECTOR HALL AND
THE MISTER P. ONLY DO YOU HAVE
ANY OTHER TOOLS THAT- FOR
SAFETY REGULATORS THAT YOU
MIGHT SUGGEST- BRIEFLY. THIS IS
CHRIS I THINK I WOULD I'D LIKE
TO POINT OUT. SOMETHING THAT
WAS RAISED WITH REGARD TO THE
RESEARCH ASPECTS OF IT AND OF
COURSE THAT- I'LL SAY FROM AN
INDUSTRY PERSPECTIVE USED TO BE
DONE THROUGH- G. R. I. AND SO
FORTH WHEN IT WAS BEING FUNDED
BY. SURCHARGES A TRANSPORTATION
OR THE SALE OF GAS WELL ONE OF
THE ONE OF THE AREAS THAT IT IS
REALLY OF INTEREST TO THAT MAY
BE OF INTEREST TO THE
LEGISLATURE IS LOOKING AT AT-
WHAT IS DONE IN THE U. K. AND
ESTABLISHING- AS PART OF. THERE
PERFORMANCE A SETTING UP A
RESEARCH POOL OF FUNDS SO FORTH
THAT. THAT THAT IT THAT IS A
COOPERATIVE- IN PROVIDING
FUNDING FOR FURTHER DEVELOPMENT
AND IMPLEMENTATION OF. OF
TECHNOLOGY THAT IS THEN TIED
TO- YOU KNOW THE COMPANY'S
GREAT I'LL SAY THEY DON'T HAVE
RATED RATE OF RETURN IF YOU
WILL. SENSUALLY THAT THAT.
THERE THESE FUNDS ARE ESTABLISH
SUCH THAT OR THE POOL IS SET UP
THAT YOU KNOW YOU YOU CAN DO
THIS RESEARCH- AND IT'S I THINK
IT'S BEEN VERY IT HAS BEEN VERY
SUCCESSFUL I KNOW THAT THEY
DEVELOP ROBOT THAT THEY THEY
IMPLEMENTED ROBOTIC. THE
SYSTEMS WITH REGARD TO CAST
IRON PIPE WHICH MITIGATE REDUCE
THE SIGNIFICANTLY THE COST OF
REPLACEMENT AND SO ON AND SO
FORTH AND I REALIZE YOU KNOW
THANK CALIFORNIA WE DON'T THERE
IS AN CAST IRON IN THIS IS THAT
IT CERTAINLY DISTRIBUTION
ASPECT OF IT BUT- AGAIN OFF
JIM- THIS THIS APPROACH MIGHT
BE SOMETHING THAT COULD MAY BE
APPROPRIATE. FOR A- IN
CALIFORNIA FOR CALIFORNIA. GOOD
THANK YOU. FIRST OF ALL DID YOU
HAVE A- COMMENT. ONE OF THE
THINGS THAT WE'VE BEEN
CONCERNED ABOUT IS THE
REGULATORY ENVIRONMENT FROM THE
PRICING STANDPOINT. BUT RATES
SAT AND UTILITIES ARE PAID
BASED ON THEIR RATES AND THAT
THE PRICING TENDS TO BE HAVE
MORE POLITICAL INFLUENCE AND
THAT- THE THOSE APPOINTED TO
THOSE BOARDS EXCEPT PRICES ARE.
VERY INTERESTED GIVING
CUSTOMERS THE LOWEST PRICE AND
WE'VE SEEN IN THE PAST DECADE I
DECREASE IN THE RATE OF NATURAL
GAS THE COST OF NATURAL GAS
RATHER CONSIDERABLE. AND WE'VE
ALSO SEEN THATREGULATORS- WILL
TELL THIS THE PIPELINE
COMPANIES WELL IF THERE ISN'T A
REGULATION YOU CANNOT GET COST
REIMBURSED FOR IMPROVING
SAFETY. AND IT'S A DISINCENTIVE
FOR PIPELINE COMPANIES TO GO
BEYOND WHAT THE REGULATIONS
HAVE AND THAT THAT'S BEEN A
CONCERN- THAT WE'VE SEEN IN THE
AND THEN THE- REGULATION OF THE
PRICES AND THE COST
REIMBURSEMENT. THANK YOU ONE
FINAL QUESTION FOR THE PANEL
THAT- EVIL TOUCHED ON THE
IMPORTANCE OF ORGANIZATIONAL
SAFETY AND SAFETY MANAGEMENT
SYSTEM SAID DURING YOUR
TESTIMONY AND HOW ONE OF THE
MAIN NATIONAL CONVERSATIONS TO
ARISE OUT OF SAN BRUNO IS THE
SMS POLICY I THINK ONE OF THE
CHALLENGES IN HAVING A
CONVERSATION ABOUT SMS IS THE
VARIOUS MEANS OF MANAGEMENT AND
HOW THEY OVERLAP YOU CAN MANAGE
AN ASSET AS IS THE CASE WITH
INTEGRITY MANAGEMENT WORK
MENTIONED THROUGHOUT THE NTSB
AND OUR P. REPORTS BUT YOU CAN
ALSO MANAGE PEOPLE. IDEALLY THE
UTILITIES WILL DO BOTH WELL BUT
THE CAN YOU DISCUSS THE ROLE OF
SMS POLICIES AND THE ROLE THEY
SHOULD BE PLAYING AT THE
UTILITIES AND OF THE P. YOU SEE
HOW THE REGULATOR REGULATORS
SHOULD BE REVIEWING THESE
POLICIES. I COULD SAY A LITTLE
ABOUT THAT IN TWO RESPECTS. ONE
IS THERE'S AN INTERESTING. HEAD
OF RESEARCH FINDINGS THAT
INDICATE THAT THE ABILITY OF
THE UTILITY TO DEVELOP A STRONG
SAFETY MANAGEMENT SYSTEM IS
RELATED TO THE POWERFUL TO THE
POWER OF THE SAFETY MANAGEMENT
SYSTEM IN THE REGULATOR ITSELF
THAT SOMEHOW IT HELPS PEOPLE TO
BE SAFETY MANAGERS IN THE
UTILITY. IF PEOPLE IN THE
UTILITY RESPECT THE SAFETY
MANAGEMENT CAPACITY IN THE
REGULATING AGENCY ITSELF IS
ALSO TRUE ON THE OTHER HAND
THAT THE ABILITY OF A REGULATOR
TO ENFORCE VARIOUS REGULATIONS
DEPENDS ON THE QUALITY OF THE
SAFETY MANAGEMENT SYSTEM IN THE
REGULATED ORGANIZATION SO
THERE'S A MUTUAL. CONNECTION
HERE BETWEEN BOTH BOTH OF THEM
NEED TO HAVE GOOD EFFECTIVE
SAFETY MANAGEMENT SYSTEMS- SO I
THINK THAT THAT'S KIND OF A
FINDING THAT WE'VE WE'VE COME
TO- IN LOOKING AT AT THOSE
THOSE SYSTEMS. THANK YOU. OTHER
THOUGHTS. AL JUST REPEAT WHAT
I'VE EVER REALLY SAID IT WITH
REGARD TO MANAGEMENT- AGAIN- IT
IS EXTREMELY IT IS BROAD
LOOKING AT THE INTERNAL INEC
EXTERNAL STAKEHOLDERS ALL OF
THAT MANAGEMENT WHETHER YOU'RE
MANAGING THE CONTRACTORS- YOU
HAVE A YOU HAVE THE
RELATIONSHIP WITH THE-
COMMISSION YOU HAVE THIS
RELATIONSHIP WITH YOUR
EMPLOYEES. YOU HAVE A
RELATIONSHIP WITH YOUR-
STAKEHOLDERS- AND- M. REALLY IT
IT IT COMES TO. CROSSED IT I
CAN'T REALLY DEFINE TRUST IS
LIKE IS LIKE CULTURE IT'S VERY-
IT MEANS DIFFERENT THINGS TO
DIFFERENT PEOPLE BUT IT'S BEING
ABLE TO. THANK TO- REMOVE. SORT
OF THIS ADVERSARIAL. NATURE
REMOVING THIS- L. C. PUNITIVE.
IT NATURE AND END. THAT'S WHAT
WE'LL THAT'S IMPORTANT IN TERMS
OF I THINK THE MANAGEMENT TO IT
QUESTION OF THE BY BY OUR
SAFETY MANAGEMENT SYSTEM SO YOU
HAVE TO ADDRESS PEOPLE SYSTEMS
PROCESSES. VERY GOOD THANK YOU
WELL THANK YOU TO THE FIRST
PANELISTS- THAT- AND ASK IF
POSSIBLE YOU COULD TO STAY ON
THE LINE THERE MAY BE SOME
QUESTIONS THAT MAY COME UP
LATER IF YOU HAVE THAT THE
CHANCE TO DO THAT. I NOW WOULD
LIKE TO HEAR FROM OUR SECOND
PANEL WHICH WILL DISCUSS HOW
THESE ESSONS FROM SAN BRUNO
HAVE BEEN CARRIED FORWARD AND
CAN INFORM THE FUTURE DECISION
MAKING THAT WE WILL BE SEEN OUR
FIRST SPEAKER. WILL BE-
DIRECTOR LEE PALMER WITH THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION SAFETY AND
ENFORCEMENT DIVISION- MISTER
PALMER WELCOME AND THANK YOU
FOR BEING WITH US TODAY. I
COULD AFTERNOON SHERMAN AND I
DISTINGUISHED MEMBERS THANK YOU
VERY MUCH FOR HAVING ME- AGAIN
THANK YOU FOR INVITING ME HERE
TODAY TO PROVIDE. YOU WITH AN
OVERVIEW OF THE CALIFORNIA
PUBLIC UTILITIES COMMISSION
ACTIVITIES WITH REGARDS TO GAS
UTILITY SAFETY. AND RELIABILITY
SENSE SEMINAR TRAGEDY. AGAIN MY
NAME IS LEE PALMER AND I HAVE
THE PRIVILEGE OF SERVING AS
DIRECTOR OF THE SAFETY
ENFORCEMENT DIVISION OR STD
WITHIN THE CPC. I WAS A POINT
ON JANUARY FIRST TWO THOUSAND
NINETEEN AND CRIED RIGHT SERVED
AS THE DEPUTY DIRECTOR OF STDS.
SINCE AUGUST SECOND OF TWO
THOUSAND SIXTEEN. DO I'M IN OUR
FOR HIM NEXT. NATIONAL GUARD AS
A LIEUTENANT COLONEL AND I'M
CURRENTLY SERVING AS THE
CHALLENGE MATTER DISORDERS.
SUPPORT BATTALION BASED ON A
BELL CALIFORNIA. IN MY SHORT
TERM THE PC. I'VE SEEN THE
DEVASTATING IMPACTS OF THE
CATASTROPHIC WILDFIRES PUBLIC
SAFETY POWER SHUT OFFS
TELECOMMUNICATIONS OUTAGES GAS
LINE EXPLOSIONS. AND GAS
STORAGE WEEKS. MANY OF THESE
EVENTS HAVE BEEN EXASPERATED BY
THE IMPACTS TO KOBE NINETEEN IN
THE CURRENT ENVIRONMENT WE'RE
ALL OPERATING WITHIN TODAY.
ADDRESSING IS A BUNCH THREE STD
SAFETY ENFORCEMENT WORK IS THE
HIGHEST PRIORITY OF MYSELF AND
THE TEAM OF PROFESSIONALS
WITHIN THE CPC RETRACT THE
ARTICLE IN MY PEERS. MY TEAM ON
THE GAS SAFETY SIDE AND I ARE
RESPONSIBLE FOR OVERSEEING
ELEVEN LARGE AND SMALL GAS
OPERATORS. 200-010-0401 MOBILE
HOME PARKS SIX HUNDRED AND
FIFTY NINE PROPANE SYSTEMS AND
THIRTEEN MUNICIPAL SYSTEMS. IS
INCLUDES OVER TEN THOUSAND
MILES OF TRANSMISSION AND TWO
HUNDRED FOUR THOUSAND MILES OF
DISTRIBUTION MILES AND TWELVE
UNDERGROUND GAS STORAGE
FACILITIES. IT IS AN ENORMOUS
TASK AND ONE WE DO NOT TAKE
LIGHTLY. BEFORE CONTINUING I
WOULD LIKE TO TAKE A MOMENT TO
YOU START ALL FOR YOUR COMMIT.
TO THE SAFETY RESPONSE AT THIS
P. C. OVERLAP TEN YEARS. YOUR
ENGAGEMENT AND THOUGHTFULNESS
HAVE LED TO THE ESTABLISHMENT
ENHANCEMENT OF NUMEROUS SAFETY
LAWS AND REQUIREMENTS THAT THE
CPC HAS ACTIVELY WORKED TO
IMPLEMENT OVER THE YEARS. I
BELIEVE THAT YOUR IMPACT AS
IMPROVE THE OPERATIONAL AND
LONG TERM SAFETY OF THE
REGULATED UTILITIES AND THE
COMMUNITIES THEY SERVE. BUT
AGAIN TODAY I'VE BEEN INVITED
TO ADDRESS HOW THE CPC HAS
APPLIED THE LESSONS LEARNED
FROM DECEMBER OF TRAGEDY TEKELI
THE SPECIFIC RECOMMENDATIONS
ARISING FROM THE NUMEROUS
INVESTIGATIONS ALL OF THE
INCIDENT. ON SEPTEMBER NINTH
TWENTY TWENTY TO LEADERSHIP AND
STAFF THE CPC TOOK TIME TO
MARKET TENTH ANNIVERSARY OF THE
PACIFIC GAS AND ELECTRIC
COMPANY HI PLAN EXPLOSIONS THAT
RENOWNED. HONORING THE VICTIMS
AND REFLECTING ON SAFETY
RELATED CHANGES MADE FOLLOWING
THAT CAN. EVENTS THE
DEVASTATION THIS EVENT IS WELL
DOCUMENTED AND THE LESSONS
LEARNED REMAIN AT THE FOREFRONT
OF OUR MEMORIES AND ACTIONS.
DURING THE STOCK REMEMBRANCE
PRESENT BETTER STATED CPUC
REGULATION AND OVERSIGHT HAS
BECOME MORE PROACTIVE TO A
MULTI YEAR MULTI BILLION DOLLAR
HI FRIENDS SAFETY TESTING AND
REPLACEMENT PROGRAM. INCREASED
STAFF CITATION AUTHORITY
INCREASED FREQUENCY OF
INSPECTIONS AND THE MORE THAN
TRIPLING OF OUR STAFF OF GAS
SAFETY ENGINEERS. OVER THE LAST
TEN YEARS THIS CPUC HEALTHCARE
COSTS THIS IN THE FOLLOWING
WAYS FIRST THE NATIONAL
TRANSPORTATION SAFETY BOARD
NTSB RECOMMENDED THAT THE CPC
CONDUCT A COMPREHENSIVE AUDIT
ALL ASPECTS OF P. JEANNIE
OPERATIONS. INCLUDING CONTROL
ROOM OPERATIONS EMERGENCY
PLANNING RECORD KEEPING
PERFORMANCE SPACE REST AND
INTEGRITY MANAGEMENT PROGRAMS
AND PUBLIC AWARENESS PROGRAMS.
THESE REGULATIONS TO STRENGTHEN
PIPELINE SAFETY AND- AND RECORD
KEEPING WORK BASED ON. ACCIDENT.
D. IS. THE REGULAR TO
STRENGTHEN SAFETY AND RECORD
KEEPING WERE BASED ON NTSB
RECOMMENDATIONS IN ORDER TO SEE
IF YOU SEE DECISIONS AND
LEGISLATION TO REQUIRE TESTING
OR REPLACING GAS TRANSMISSION
PIPELINES AND PRIORITIZE
POPULATED AREAS. SECOND THE
NTSB RECOMMENDED TO THE CPUC
REQUIRE PG&E TO CORRECT AL
DEFICIENCIES IDENTIFIED AS A
RESULT OF THIS SAN BRUNO
INSTANT MASTICATION AS WELL AS
ANY ADDITIONAL DEFICIENCIES
IDENTIFIED THROUGH THE
COMPREHENSIVE AUDIT. AND VERIFY
THAT ALL CORRECTIVE ACTIONS ARE
COMPLETED IS THE PC. REVIEWED
SIX P. JEANNIE COMPLIANCE
REPORTS AND CONDUCTED AUDITS TO
ENSURE COMPLETION OF THE
RECOMMENDATIONS OR FALL OF THE
ACTIONS PENDING. THIRD NTSB
RECOMMENDED AND THEN VALUATION
OF THE AUTHORITY AND ABILITY OF
STD TO AFFECTED REINFORCED
STATE GAS PIPELINE SAFETY
REGULATIONS. TODAY STDS
ENFORCEMENT AUTHORITY AND
OVERSIGHT IS FAR SUPERIOR THAN
IT WAS TEN YEARS AGO. SB
ACTIVELY HOLDS THE TORIES
ACCOUNTABLE FOR FAILING TO MEET
SAFETY OPERATION STANDARDS
THROUGH AUDITS INVESTIGATIONS
ASSESSMENTS OF FINES AND
PENALTIES. AND THE
ESTABLISHMENT OF MONITORING.
THE UTILITY CORRECTIVE ACTION
PLANS. AND LASTLY TO FORTY NINE
OF FEDERAL REGULATIONS ONE NINE
TWO POINT SIX ONE NINE WAS
AMENDED TO DELETE THE
GRANDFATHER CLAUSE AND REQUIRE
THAT ALL GAS TRANSMISSION
PIPELINES CONSTRUCTED BEFORE
NINETEEN SEVENTY BE SUBJECTED
TO A HYDROSTATIC PRESSURE TEST.
THAT INCORPORATE DESPITE TESTS.
TO THIS ACTION DOES THE PC HAS
GAINED VALUABLE INSIGHT AND ALL.
WORKING WITH UTILITIES TO BE
MORE PROACTIVE INSPECTION OF
GAS INFRASTRUCTURE AND TO
MITIGATE POTENTIAL SAFETY
CONCERNS. NOW TURNING TO OUR
IMPLEMENTATION OF STATE LAW I
WOULD LIKE TO HIGHLIGHT THE
SIGNIFICANT IMPACT THE STATE
LEGISLATION FOR EXAMPLE
ASSEMBLY BILL FIVE SEVENTY
EIGHT WAS PASSED TO ENSURE THAT
THE NTSB RECOMMENDATIONS FOR
ADDRESSED THE NEW REQUIREMENTS
CODIFIED BY THIS BILL LET TO
THE ESTABLISHMENT OF THE
PIPELINE SAFETY ENHANCEMENT
PROGRAM WHICH FOSTER NEW AND
ROBUST SAFETY AND RELIABILITY%
REGULATIONS FOR NATURAL GAS
TRANSMISSION AND DISTRIBUTION
PIPELINES. IS INCLUDED
REQUIRING A GAS OPERATOR IT HAS
TO CURRENT STANDARDS FOR A
PLACE EIGHTEEN GAS PIPELINES
AND TO ESTABLISH A MAXIMUM
ALLOWABLE. OPERATING PRESSURE
TO TESTING. SEVERAL OTHER PIECE
STATE. HAVE IMPROVED OUR GAS
SAFETY OVERSIGHT SINCE THE
TRAGIC ZAMBRANO'S. FAMILY BILL
FIFTY SIX REQUIRED REMOTE
CONTROLLED SHUT OFF VALVES AND
HIGH POPULATION AREAS AND THE
COMPREHENSIVE TESTING AND
RECORD KEEPING US GAS
TRANSMISSION PIPELINES. SINCE
THE INTRODUCTION OF AB FIFTY
SIX P. JEANNIE HAS COMPLETED
THE AUTOMATION OF TORRANCE
SEVENTEEN VALVES AND COMPLETED
SIX HUNDRED AND SEVENTY
PIPELINE MILES OF STRENGTH
TESTING. ASSEMBLY BILL THIRTEEN
SEVENTY ONE THE NATURAL GAS
LEAKAGE ABATEMENT ESTABLISHED.
THE PROGRAM WAS TO ELEMENTS AND
ANNUAL EMISSIONS INVENTORY
REPORT. I AM A COMPLIANCE PLAN
THE OVERALL GOAL IS FOR THE ARE
USED TO REDUCE NATURAL GAS
EMISSIONS FROM A TWO THOUSAND
FIFTEEN BASELINE LEVEL BY 40%
IN TWENTY THIRTY CONSISTENT
WITH THE OVERALL STATEWIDE
GREENHOUSE. GAS REDUCTION GOAL
THE COMPLIANCE PLAN IS DUE FROM
THE IRA YEARS EVERY TWO YEARS
TO COMPLY FINE DETAILS HOW THE
UTILITY PROPOSES TO ADDRESS THE
TWENTY SIX BACKS BEST PRACTICES
FOR A WEEK ABATEMENT. THAT WERE
DEVELOPED DURING THE COMMISSION
PROCEEDINGS. SAFETY POLICY
DIVISION RECEIVED THE FIRST ONE
OF THE TO THE FIRST ONE IN TWO
THOUSAND EIGHTEEN AND THE
LATEST FORM THIS YEAR. THANK
YOU POLICY DIVISION OR SPD
RIGHT NOW VALUATION PROVIDED TO
ENERGY DIVISION TO ADDRESS COST.
IN ADDITION SENATE BILL EIGHT
SIXTY FIVE FILL THE GAP IN THE
CPC'S ENFORCEMENT AUTHORITY BY
GRANTING THE DIG SAFE BORDER
FORCE MAJORITY OR THIRD PARTY
EXCAVATORS. AND ALLOWING THEM
TO ISSUE PENALTIES TO THE TRUMP
NONCOMPLIANCE AND UNSAFE
PRACTICES. SIXTEEN FOR PROGRAM
FOR GAS AND ELECTRIC
VIOLATIONS. SINCE TWO THOUSAND
TWELVE THE GAS SAFETY
RELIABILITY BRANCHES ALSO KNOWS
GSR BE UNDER SEG HAS CONDUCTED
HUNDREDS OF FIELD AUDITS
RECORDS. STAFF INVESTIGATIONS
AND IS ASSESSED OVER FORTY NINE
MILLION DOLLARS IN STOCK LEVEL
ONE CITATIONS THE P. JEANNIE
FOR GAS SAFETY VIOLATIONS. THE
GUY STATE DURABILITY BRANCH HAS
BEEN INSTRUMENTAL IN PERFORMING
INSPECTIONS OF GAS UTILITIES
PIECE OF WORK BY WITNESSING
ACTIVITIES SUCH AS HYDRO
TESTING IN LINE INSPECTION AND
PIPELINE REPLACEMENT. CPC'S
GOAL IS TO DEDICATE 20% OVER
FUEL TIME GAS PIPELINE DESIGN
TESTING PER CONSTRUCTION
ACTIVITIES. THIS MEANS MORE
BOOTS ON GROUND AND MORE EYES
EXAMINING GAS PIPELINE
INSTALLATION PRESSURE TESTING
SPECIMENS. ALSO DECEMBER TWO
THOUSAND ELEVEN THE CPC CREATED
A CITATION PROCESS AUTHORIZING
STAFF TO IMPOSE FINES FOR
NATURAL GAS VIOLATIONS. FROM
PROCESS ALLOWS THE CPU STATE TO
ACT QUICKLY CITATIONS MAY ARISE
OUT OF AN ONGOING INVESTIGATION
INTO RELATED MATTERS FOR ONE OF
ISOLATION AS PRODUCT TO THE
CPC'S ATTENTION DIRECTLY. FOR
MORE AGREE JUST FOR WIDESPREAD
VIOLATIONS THE CPC MAY OPEN
ORDER INSTITUTED INVESTIGATION.
ON THAT INSTANT PORTION.
ADDITIONALLY THIS IF YOU SEE
WITH THE ASSISTANCE OF THE NTSB
AND FILMS ARE ESTABLISHED
MANDATORY TRAINING FOR ALL
STATE GAS SYSTEM INSPECTORS TO
ENSURE THAT THE STATE OF
CALIFORNIA. CPUC ARE STAFFED
WITH QUALIFIED INFORMED
INSPECTORS. WITH THE SUPPORT OF
THE STATE LEGISLATOR. THE GAS
SAFETY RELIABILITY BRANCH HAS
GROWN FROM A SECTION OF TWELVE
AT THE TIME OF SAN BRUNO TO AN
OPERATIONAL BRANCH OF FORTY
FOUR. THIS GROWTH HAS ADDED
VITAL STAFF POSITIONS TO BETTER
MONITOR AND ENSURE THE SAFE
SAFETY INTEGRITY OF THE GAS
UTILITY SYSTEM THESE POSITIONS
INCLUDE VITAL INSPECTOR UNDER
ENGINEERS AS WELL AS POLICY AND
ADMINISTRATIVE SUPPORT
INSURANCE USER BE INSPECTORS
ARE PROPERLY TRAINED EQUIPPED
AND DEPLOYED DEPLOYED. AND
PROVIDING EFFECTIVE OVERSIGHT
AND ENFORCEMENT OF GAS
INFRASTRUCTURE THROUGHOUT
CALIFORNIA. WHAT THE ADDITIONAL
GAS STAFF SAFETY STAFF AND
INTENSIVE TRAINING THE CPC HAS
ISSUED STAFF CITATIONS
EXCEEDING FIFTY FIVE POINT
SEVEN MILLION DOLLARS. GAS GAS
FUTURE IS A THING CALIFORNIA
MANY CITATIONS BEING IDENTIFIED
PRIOR TO A SAFETY INCIDENT
OCCURRING. IS CONSIST OF TWENTY
SEVEN STAFF LEVEL CITATIONS
SINCE TWO THOUSAND TWELVE
INCLUDING SEVENTEEN TO P.
JEANNIE AND FIVE TO SOCALGAS.
ADDITIONALLY THE CPC HAS ISSUED
SAFETY CITATIONS THAT ENCOMPASS
MOBILE HOME PARK OPERATORS
LOOKING TO MARK PROGRAMS AND
CONSTRUCTION PROJECTS ALL
ADDING TO THE GOAL OF
IDENTIFYING SAFETY CONCERNS
BEFORE AN INCIDENT OCCURS. A
PRIME EXAMPLE OF THE CPC'S
CAPACITY TO INCREASE EFFECTIVE
OVERSIGHT OF REGULATED GAS
UTILITIES IS THE ONE HUNDRED
TEN MILLION DOLLARS FINE THAT
WAS IMPOSED ON P. JEANNIE IN
EARLY TWENTY TWENTY AS A RESULT
OF THE LOGIN MARC INVESTIGATION.
HE FOUND THAT PG&E UNDERCOUNTED
NUMEROUS LOCATE. NUMEROUS LATE
LOCATED MARC TICKETS OVER A
PERIOD OF YEARS AND THAT PG&E
REPORTED INACCURATE COUNTS OF
THIS LATE LOW PMR TICKETS THE
CPUC. PINE CREEK STAFFING
CITATION AMOUNTS MAY
DEMONSTRATE THAT WE NOW HAVE A
MORE ACTIVE PRESENCE IN THE
FIELD THE TRUE MEASURE OF THE
EFFECTIVENESS OF OUR PROGRAMS
IMPROVEMENTS REST IN THE
DETAILS OF WHAT TYPES OF
VIOLATIONS ARE IDENTIFIED. OVER
THE PAST FIVE YEARS THE GAS THE
GENERAL RELIABILITY BRANCH HAS
RECORDED AN OVERALL DECREASE IN
SIGNIFICANT SAFETY VIOLATIONS.
SUCH AS FEWER INJURIES
FATALITIES AND MAJOR DAMAGES.
BUT EVEN WITH ALL THESE
MEASURES SUCH AS INCREASED
STAFFING INCREASED INSPECTION
CYCLES CITATIONS INTERNAL AUDIT
AND OPERATIONAL TRAINING WAIT
TO SEE IF YOU SEE REFUSE TO
BECOME COMPLACENT WATER IS
ALWAYS ROOM FOR IMPROVEMENT.
THERE'S ALSO THE FACT THAT WE
LIVE IN A DYNAMIC ENVIRONMENT
WHERE THE STATE'S POPULATION
CONTINUES TO GROW
INFRASTRUCTURE CONTINUES TO AGE
TECHNOLOGY ADVANCES IN CLIMATE
CHANGE REMINDS US OF OUR
VULNERABILITIES AND THE NEED TO
BE MORE RESILIENT. THE GAS THE
GENERALIZED BRANCH WITHIN THE
P. YOU. CONTINUES TO EXPLORE
NEW MECHANISMS TO ADVANCE OUR
AUDIT AND INSPECTION
CAPABILITIES WHILE BUILDING
STRONG AND RESILIENT WORKING
RELATIONSHIPS WITH BOTH THE GAS
SYSTEM OPERATORS AND THE
COMMUNITIES THEY SERVE. I'M
CLOSE BY CIRCLING BACK TO THE
REMEMBER TO STAMP IN OUR OWN
TRAGEDY AND ECHO THE SENTIMENT
BUT THAT CENTER HILL MADE
DURING THE C. P. C. VOTING
MEETING CUSTOMER TAPPED. THE
EXPLOSION DID NOT AND DOES NOT
DEFINE OUR COMMUNITIES
STRENGTHENED US. DESCRIBED TO
MENTION IT TO ENSURE A TRAGEDY
LIKE SAN. BRUNO EXPLOSION NEVER
HAPPENS AGAIN. JUST BELONG TO
ONE OF THE DAY OR- INSTEAD THIS
DRIVE COMES FROM ALL COMMUNITY.
NOT ONLY DOES BUT TO ME STATE
ALIVE WE TO. IF YOU THINK IT TO
WORK THE OF LOCAL COMMUNITIES
WHAT. AND UTILITIES OFFER TO
PROVIDE A NUMBER TO COLLABORATE.
BECAUSE IT WILL REQUIRE A BROAD
IN ZERO EFFORT TO ENSURE ALL
CONSUMERS IN CALIFORNIA
PROVIDED SAFE RELIABLE AND
AFFORDABLE UTILITY SERVICE.
AGAIN I THANK YOU SORRY HEALTH
FOR THE INVITATION AND
DISTINGUISHED MEMBERS FOR YOUR
TIME AND ATTENTION AND THANK
YOU AGAIN FOR THE SUPPORT AND
COLLABORATION OFFERED OVER THE
PAST DECADE TO HELP US PROVIDE
THE STATE OF CALIFORNIA. THANK
YOU MISTER PALMER AND- I ALSO
WANT TO NOTE THAT I BELIEVE
THAT YOUR COMPANY BY KAREN
SAYING IN THE PROGRAM MANAGER
FOR SAFETY ENFORCEMENT DIVISION
FOR GUEST SAFETY AND
RELIABILITY BRANCH SO THANK YOU
VERY MUCH FOR. YOUR TESTIMONY
TODAY AND THANK YOU FOR THE
NICE COMMENTS. NEXT WE'LL HEAR
FROM CRISTINA CONCERT VICE
PRESIDENT AND CO LEAD OF GAS
OPERATIONS WITH THE PACIFIC GAS
AND ELECTRIC COMPANY SILVA-
THIS CULTURE TO WELCOME AND-
THANK YOU FOR BEING HERE TODAY
WITH THIS. THANK YOU VERY MUCH.
GOOD MORNING CHAIRMAN HELEN
SENATORS MY NAME IS CHRISTINE
COWSERT I'M CURRENTLY THE
INTERIM CO LEAD A GAS
OPERATIONS AND VICE PRESIDENT
OF GAS OPERATIONS ASSET
MANAGEMENT SYSTEM OPERATIONS IT
P. JEANNIE. THANK YOU FOR THE
OPPORTUNITY TO SPEAK WITH YOU
AND FOR THOSE WHO ARE WATCHING
TODAY. I HAVE BEEN WITH P.
GENIE FOR NINETEEN YEARS AND
SERVED IN SEVERAL DIFFERENT
LEADERSHIP ROLES DURING THIS
TIME. AND I STARTED MY CAREER
IN GAS OPERATIONS IN TWO
THOUSAND ONE AND REJOIN THE GAS
OPERATIONS ORGANIZATION SHORTLY
AFTER THE SAN BRUNO PIPELINE
EXPLODED SOLUTION. WE WILL
NEVER FORGET ZAMBRANO'S TRAGEDY
NOR WHAT ALL THAT WAS LOST THAT
DAY. AS WITH US AS A COMPANY IN
INDIVIDUALS AND INFLUENCES THE
WAY WE CONTINUE TO DRIVE
IMPROVEMENTS IN SAFETY EVERY
DAY. WE HAVE FUNDAMENTALLY
ADOPTED THE MINDSET BUT WHEN IT
COMES TO SAFETY OUR WORK WILL
NEVER BE DONE. AND WHILE WE'VE
COME A LONG WAY WE KNOW WE HAVE
MORE WORK TO DO. I DISTINCTLY
REMEMBER THE MOMENT I LEARNED
THAT HE WAS RESPONSIBLE FOR THE
TRAGEDY IN SAMPER NOW. AND THE
REFLECTIONS FROM THAT MOMENT
WILL BE WITH ME FOR THE REST OF
MY LIFE. EXPERIENCES AND
LESSONS WE LEARNED FROM SAN
BRUNO FUNDAMENTALLY INFLUENCE
HOW WE APPROACH SAFETY IN THE
OPERATION OF OUR SYSTEM. WE
KNOW THAT SOMETHING LIKE THIS
CANNOT HAPPEN AGAIN AND THAT WE
MUST CONTINUALLY ASSESS AND
MITIGATE RISKS TO ENSURE THAT
THAT'S THE CASE. I'D LIKE TO
BRIEFLY TALK ABOUT WHAT WE'VE
DONE OVER THE LAST TEN YEARS TO
IMPROVED SYSTEM OPERATIONS AND
SAFETY WITHIN GAS OPERATIONS AT
PG&E. AS MAYOR MEDINA MENTIONED
IN HIS COMMENTS WE'VE
UNDERTAKEN MANY EFFORTS TO
IMPROVE OUR OPERATIONS OF THE
LAST TEN YEARS. IN TWENTY
ELEVEN AS PART OF OUR IMMEDIATE
PLANNING TO COMPLETELY REDESIGN
OUR ASSET MANAGEMENT OPERATIONS
OVERSIGHT AND SAFETY CULTURE WE
SUBMITTED TO THE CALIFORNIA
PUBLIC UTILITIES COMMISSION THE
PIPELINE SAFETY ENHANCEMENT
PLAN. WHICH IDENTIFIED THE WORK
WE WOULD UNDERTAKE TO TRANSFORM
OUR TRANS TRANSMISSION PIPELINE
SYSTEM. ALL WORK OUTLINED IN
THAT PLAN WAS COMPLETED LAST
YEAR ONE YEAR AHEAD OF SCHEDULE.
AS DR HALL STATED THE NTSB MADE
TWELVE RECOMMENDATIONS
FOLLOWING SAMBAR NOW ELEVEN OF
WHICH HAVE BEEN COMPLETED WITH
THE NTSB ACKNOWLEDGING THE
STATUS OF THE TWELFTH.
HYDROSTATIC HYDROSTATIC WE
TESTING OUR ENTIRE SYSTEM AND
ONGOING AN ACCEPTABLE. HI
DANIEL UPDATES TO THE NTSB ON
OUR PROGRESS ON THIS
RECOMMENDATION AND ARE
CURRENTLY FORECASTING THE LAST
OF THE WORK TO BE COMPLETE IN
TWENTY TWENTY TO. EACH YEAR
SINCE TWENTY TWELVE FIJI HAS
SUBMITTED OUR GAS SAFETY PLAN
ARE WIDE RANGING ROAD MAP THAT
EXPLAINS THE MANY WAYS TEACHING
IS PUTTING THE SAFETY OF THE
PUBLIC. CUSTOMERS EMPLOYEES AND
CONTRACTORS FIRST. THIS
INCLUDES THE INVESTMENTS IN
INFRASTRUCTURE AND PROCESSES
THAT ARE CONSISTENT WITH BEST
PRACTICES IN THE GAS INDUSTRY.
SINCE TWENTY TWELVE WE'VE
ESTABLISHED THREE NEW STATE OF
THE ART FACILITIES THAT ALL
FOCUS ON IMPROVING SAFETY
OPERATIONS AND SAFETY CULTURE.
THE GAS CONTROL CENTER IN SAN
RAMON WHERE WE MONITOR THE
PRESSURES FLOW IN OPERATION
NUMBER GAS SYSTEM TWENTY FOUR
HOURS A DAY SEVEN DAYS A WEEK.
RBC GAS SAFETY COUNTY IN
WINTERS CALIFORNIA WHERE NEW
HIRES AND EMPLOYEES RECEIVE
SAFETY TRAINING AS IT RELATES
TO THEIR JOB DUTIES. AND THE
CENTER FOR GAS EIGHTEEN
INNOVATION IN DUBLIN CALIFORNIA
WHERE AMONG MANY OTHER THINGS
WE CAN CONDUCT SAFETY TRAINING.
TESTING ASSESSMENTS AND
CALIBRATION OF EQUIPMENT FOR
USE IN OUR NATURAL GAS SYSTEM.
AS WE WORK TO REBUILD OUR GAS
SYSTEM AND RECREATE THE WAYS WE
DO WORK. WE SOUGHT OUT EXAMPLES
OF OTHER INDUSTRIES AND
COMPANIES TO EXPERIENCE
SIGNIFICANT SAFETY INCIDENTS.
AND WHAT THEY DID TO
RESTRUCTURE THEIR SAFETY
CULTURE INCLUDING AVIATION AND
CHEMICAL INDUSTRIES AND WE
ADOPTED MANY OF THEIR BEST
PRACTICES. WE ALSO LOOKS TO OUR
DIABLO CANYON NUCLEAR FACILITY
WILL WHICH SAW SUCCESSFUL
UTILIZATION OF A TOOL THAT
ALLOWED EMPLOYEES TO RAISE
SAFETY CONCERNS. THAT TOOL THE
CORRECTIVE ACTION PROGRAM WE'RE
CAP. HAS BEEN SUCCESSFULLY
IMPLEMENTED IN GAS OPERATIONS
AND IS NOW ONE OF THE TOOLS
THAT SUPPORTS OUR COMPANYWIDE
SPEAK UP CULTURE. IN ADDITION
TO THE EXTENSIVE WORK THAT HAS
BEEN DONE DONE OVER THE LAST
DECADE TO TRANSFORM THE
PHYSICAL OPERATIONOF OUR
ASSETS. WE ALSO EXTENSIVELY
REDESIGNED OUR RECORDS
MANAGEMENT SYSTEM. GAS
OPERATIONS THIS MEANT TO
COMPLETE REVIEW OUR PHYSICAL
RECORDS DIGITIZING THEM AND
IMPROVING UPON AREAS WERE
RECORDS MAY HAVE BEEN
INSUFFICIENT. ONE OF THE FIRST
PROJECTS WE SET OUT TO
ACCOMPLISH AFTER SAN BRUNO
WASN'T GPS SURVEY KNOWN AS OUR
CENTER ONE SURVEY OF OUR ENTIRE
TRANSMISSION PIPELINE SYSTEM.
THAT WAS COMPLETED IN DECEMBER
OF TWENTY THIRTEEN. WE'VE ALSO
CONSOLIDATED MORE THAN FOUR
MILLION RECORDS RELATED TO OUR
TRANSMISSION PIPELINES FROM
NEARLY SIXTY FIELD OFFICES.
ACROSS OUR SERVICE AREA INTO AN
ELECTRONIC DATABASE. THESE
FACTORS INCLUDE IMPROVED
RECORDS IN REAL TIME MONITORING
OF OUR SYSTEM HAVE ALLOWED US
TO QUICKLY RESPOND TO
EMERGENCIES JUST SITUATIONS AND
QUICKLY ISOLATE GAS SUCH AS THE
THIRD PARTY DICKENS THAT
HAPPENED IN BAKERSFIELD AND
FRESNO IN TWENTY FIFTEEN. AND
WE RECOGNIZE THAT IN ORDER TO
TRULY CHANGE HOW WE APPROACH
THE SAFE AND RELIABLE DELIVERY
OF NATURAL GAS TO OUR CUSTOMERS.
IN TWENTY TWELVE WE ESTABLISHED
OUR SAFETY MANAGEMENT SYSTEM
FOR GAS OPERATIONS WHICH WE
CALL GAS SAFETY EXCELLENCE. YES
THEY DO EXCELLENCE FOCUSES ON
SAFETY CULTURE PROCESS SAFETY
AND ASSET MANAGEMENT IT STRIVES
TO ENABLE EMPLOYEES TO DO THE
WORK THE RIGHT WHAT DO THE WORK
RIGHT THE FIRST TIME TO DELIVER
HIGH VALUE QUALITY SERVICES. I
ALSO EIGHTY MANAGEMENT SYSTEMS
CONTINUOUS IMPROVEMENT IS AN
ESSENTIAL COMPONENT OF IT.
HAVING GAS INDIA EXCELLENCE IN
PLACE IS NOT THE END GOAL IS
THE WAY WE ENSURE WE GET BETTER
AT HOW WE OPERATE IN MANAGER
BUSINESS BY PUTTING SAFETY AT
THE CENTER OF OUR WORK. AS PART
OF THE PROCESS OF CONTINUOUS
IMPROVEMENT WE WANTED TO KNOW
HOW OTHERS RATED OUR PROGRESS.
WE SOUGHT THIRD PARTY
INDEPENDENT VERIFICATION OF OUR
WORK FROM INTERNATIONAL
ORGANIZATIONS. AND RECEIVED A
MAINTAIN SORT OF CERTIFICATE
SUCH AS- API ELEVEN SEVENTY
THREE. EIGHTY AYE AYES SEVEN
FIFTY FOUR. I SAW A FIFTY FIVE
THOUSAND ONE AND PASSED FIFTY
FIVE. MANY OF THE LEARNINGS AND
SUCCESSES FROM THIS ARE BEING
APPLIED AND CONSIDERED
COMPANYWIDE P. JEANNIE
INCLUDING ADOPTING AYE SO
THIRTY FIVE THOUSAND ONE AND
OTHER BEST IN CLASS INDUSTRY
STANDARDS. I WANT TO CONCLUDE
MY OPENING REMARKS BY SAYING
THIS. WE DEEPLY REGRET THE
TRAGIC EXPLOSION THAT HAPPENED
IN SAMBAR NOW WHICH RESULTED IN
SIGNIFICANT LOSS OF LIFE.
MULTIPLE INJURIES AND DAMAGE TO
PROPERTY IN THE COMMUNITY
ITSELF. I KNOW PERSONALLY THAT
I WILL NEVER FORGET THAT DAY I
KNOW MY COLLEAGUES AND FELLOW
WORKERS NOT FORGET IT EITHER.
NOR WILL WE FORGET THE LESSONS
LEARNED THAT INFLUENCES THE
DECISIONS WE MAKE EVERY DAY.
FOR ALL NEW HIRES TALKING ABOUT
THE PIPELINE EXPLOSION AS PART
OF THEIR ON BOARDING WITH THE
COMPANY. AND FOR GAS EMPLOYEES
WHO TRAIN AT OUR GAS SAFETY
ACADEMY IN WINTERS. THE DAMAGE
SECTION OF THE GAS TRANSMISSION
PIPELINE IS ON DISPLAY TO SERVE
AS A STARK REMINDER THAT EVERY
ACTION WE TAKE HAS CONSEQUENCES
AND THAT SOMETHING LIKE THIS
CAN NEVER HAPPEN AGAIN. THESE
AND OTHER CONVERSATIONS WILL
CONTINUE TO HAVE AROUND ABOUT
CIMBRIAN ARE TO ENSURE THAT. TO
ENSURE WE PUTSAFETY FIRST AND
ALL OUR DECISIONS AND ACTIONS.
THIS IS TRUE FOR ME FOR THE
FIVE THOUSAND EMPLOYEES AND GAS
OPERATIONS AND THE TWENTY THREE
THOUSAND EMPLOYEES AT PG&E WHO
SHARE THE MISSION TO DELIVER
ENERGY SAFELY TO OUR CUSTOMERS.
THANK YOU FOR THIS TIME TO
SHARE MY PERSPECTIVE AND I LOOK
FORWARD TO ANSWERING YOUR
QUESTIONS. THANK YOU VERY MUCH
MISS CULTURED AND UP. THE I WAS
FORTUNATE ENOUGH TO VISIT THE
GRAND OPENING OR THE- THE
CEREMONY AT THE OPENING OF THE
WINTERS TRAINING FACILITY. A
COUPLE OF YEARS AGO WHEN I WAS
VERY IMPRESSED WITH THE
TRAINING THE THAT'S INVOLVED
NOW AND ALL GAS- AND IN NEW
EMPLOYEES- GAS AND ELECTRIC
EMPLOYEES AND I DID WITNESS AND
SAW THAT- THAT PIPE FROM SAN
BRUNO. ALSO I THOUGHT IT WAS A
SIGNIFICANT TO HEAR. THAT PRIOR
TO THAT TRAINING FACILITY
WINTERS WHICH I THOUGHT WAS- A
SUPERFICIAL ME WE WENT THROUGH-
THE ENTIRE OPERATION AND- ALL
OF THE DIFFERENT- LEVELS OF
TRAINING AND- STATIONS OF
TRAINING THE PEOPLE WOULD
WITNESS AND- THAT WOULD GO
THROUGH DURING THE TRAINING BUT
THE PART THAT WAS SIGNIFICANT
AND I THINK WHICH- HOPEFULLY
SHOWS AND I THINK DOES
INDICATE. P. GENIES CHANGE. IN
WHAT THEY'RE LOOKING TO DO AND
HOW THEY TRAIN THEIR EMPLOYEES
FOR THE FUTURE IS. I WAS-
ADVISED BY YOUR VICE PRESIDENT
AT THE TIME- THAT- PRIOR TO
THAT- FACILITY NEW EMPLOYEES
WERE BASICALLY TRAINED ON THE
JOB. IT WAS ON THE JOB TRAINING
WITH NO FORMAL TRAINING FOR GAS
SYSTEMS OR ELECTRIC SYSTEMS AND
NOW THAT IS A ONE WEEK
OPERATION AND TRAINING SO I
APPRECIATE THAT I THINK THAT.
THE CUSTOMERS OF PG&E-
CERTAINLY APPRECIATE THAT AS
WELL SO THANK YOU FOR THAT
COULD WORK THAT YOU'VE BEEN
DOING- AND THANK YOU FOR THE
TESTIMONY TODAY- WILL NOW MOVE
TO OUR FINAL PRESENTER. AT THE
ANA NG DIRECTOR PROGRAM
MANAGEMENT FOR- OFFICE OF
SOUTHERN CALIFORNIA GAS MISSING
THANK YOU. THANK YOU THERE. HER
PARTNERS WE WANT TO EXTEND OUR
CONDOLENCES TO MAYOR MEDINA AND
ALL THE FAMILIES FRIENDS AND
LOVED ONES IMPACTED BY THE
SEMPURNA I PLAY RUPTURE. I SO
ELOQUENTLY EXPRESSED BY THE
CPUC. THE DEPTH OF THIS TRAGEDY
IS THE SOURCE OF OUR RESOLVE TO
TAKE ALL ACTIONS NECESSARY TO
ENSURE THAT IT NEVER HAPPENS
AGAIN. WE JOIN YOU TODAY TO
REFLECT UPON THIS TRAGEDY AND
REPORT BACK THE STEPS WE HAVE
TAKEN TO ENSURE THIS NEVER
HAPPENS AGAIN. THANK YOU
SENATOR HELD FOR YOUR
LEADERSHIP. PARTICULARLY IN THE
AREA OF NATURAL GAS PIPELINE
SAFETY FOLLOWING THE INCIDENT.
AND FOR INVITING US TO JOIN YOU
HERE TODAY. IT IS OUR PRIVILEGE
AND HONOR TO PROVIDE TWENTY TWO
MILLION CUSTOMERS. WITH SAFE
RELIABLE AND AFFORDABLE ENERGY
TO FUEL THEIR LIVES EVERY DAY.
OUR EMPLOYEES COME TO WORK EACH
DAY GLAD TO BE OF SERVICE PROUD
TO PROVIDE SAFE AND RELIABLE
SERVICE TO OUR CUSTOMERS AND
PRIVILEGED THAT WE'VE BEEN
ENTRUSTED BY THE STATE OF
CALIFORNIA. TO STATE OUR SAFETY
OF THE COMMUNITIES WE SERVE.
THANKS TO THE TIRELESS EFFORTS
AND STEADFAST COMMITMENT OF
SENATOR HILL AND THE CALIFORNIA
PUBLIC UTILITIES COMMISSION
FOLLOWING THE TRAGIC EXPLOSION
ON SEPTEMBER NINTH TWENTY TEN.
CALIFORNIA HAS LED THE INDUSTRY
IN THE NATION AND TRANSMISSION
PIPELINE SAFETY. I'VE SOCALGAS
MST JEANNIE WE ARE GRATEFUL FOR
THE STATE'S LEADERSHIP AND FOR
EMPOWERING US TO NOT ONLY
IMPLEMENT INDUSTRY BEST
PRACTICES BUT TO INNOVATE AND
DRIVE CHANGES THAT WOULD TAKE
THE INDUSTRY EVEN FURTHER.
PRIOR TO NUMBER NOW WE HAD
ALREADY MADE SIGNIFICANT
INDUSTRY LEADING INVESTMENTS IN
OUR SYSTEM TO ENHANCE THE
SAFETY AND RELIABILITY OF OUR
PIPELINE INFRASTRUCTURE I
REDUCE EMISSIONS AND DRIVE
TECHNICAL ADVANCEMENT IN THE
pTHE NINETEEN NINETIES WE
IMPLEMENTED A PROGRAM TO
REPLACE ALL CAST IRON IN OUR
DISTRIBUTION SYSTEM. BY
NINETEEN NINETY FOUR WE WERE
PROUD TO REPORT THAT NO CASTING
REMAINED IN OUR SYSTEM WHICH
NOT ONLY ENHANCE THE SAFETY OF
OUR DISTRIBUTION SERVICE ALSO
REDUCE EMISSIONS. PRIOR TO
TWENTY TEN WE HAD ALSO INVESTED
IN ADVANCING IN LINE INSPECTION
TECHNOLOGY AND RETROFITTING OUR
PIPELINES TO MAKE IMPECCABLE.
BY TWENTY TEN WE HAD ALREADY
RETROFITTED APPROXIMATELY 50%
OF OUR TRANSMISSION PIPELINES
TO ENABLE IN LINE INSPECTION.
THE REMAINING PIPELINES DUE TO
NON STANDARD HIGH PLANE
DIAMETERS DIAMETER CHANGES PRE
WAR WAR TO FABRICATION METHODS
ARE FITTING TYPES POSE
SIGNIFICANT CHALLENGES TO MAKE
FOOTBALL. WE DIDN'T STOP THERE
HOWEVER WE PARTNERED WITH
INNOVATIVE COMPANIES ON
RESEARCH AND DEVELOPMENT
PROJECTS TO ENHANCE THE
CAPABILITY OF EXISTING IN LINE
INSPECTION TOOLS TO ASSESS HIGH
POINTS WITH A WIDER RANGE OF
ADVOCATES. FEDERAL REGULATIONS
AT THE TIME LAPSED SIGNIFICANT
DISCRETION TO PIPELINE
OPERATORS REGARDING WHETHER TO
AUTOMATE TRANSMISSION PIPELINE
VALVES. BY TWENTY TEN WE HAD
ALREADY AUTOMATED NEARLY THREE
HUNDRED AND FIFTY DOLLARS
THROUGHOUT OUR TRANSMISSION
SYSTEM. FOLLOWING WE ASKED
OURSELVES HOW CAN WE DO BETTER.
HOW CAN WE SUPPORT ACHIEVEMENT
OF THE CPC'S RESOLUTE
DETERMINATION TO ENSURE THIS
NEVER HAPPENS AGAIN. THANKS TO
SENATOR HELL AND THE CPC'S
LEADERSHIP. WE WERE AUTHORIZED
TO MAKE THE FOLLOWING
ADDITIONAL SAFETY INVESTMENTS.
HAS TO REPLACE ALL PIPELINE
SEGMENTS WITHOUT DOCUMENTATION
OF THE POST CONSTRUCTION
PRESSURE TEST. WHEN WE FIRST
FILED OUR PIPELINE SAFETY
ENHANCEMENT PLAN IN RESPONSE TO
THE CPC AND STATE LEGISLATURES
DIRECTIVES. WE ESTIMATED THAT
WE WOULD BE REQUIRED TO PASS A
REPLACE APPROXIMATELY THREE
HUNDRED AND EIGHTY FIVE MILES
OF TRANSMISSION PIPELINES IN
CLASS THREE AND FOUR LOCATIONS
AND HIGH CONSEQUENCE AREAS.
FOLLOWING FOR THEIR REVIEW OF
HISTORIC TYPE MY RECORDS WE
DETERMINE THE MILEAGE THE LESS
THAN A HUNDRED AND FIFTY MILES.
WE WERE ALSO OPERATES REPLACE
ALL REMAINING TYPE INSTALLED
PRIOR TO NINETEEN FORTY SIX.
THAT WE HAD FAR BEEN UNABLE TO
MAKE A COUPLE. TO DATE WE HAVE
REPLACED TWENTY SEVEN MILES OF
PRE NINETEEN FORTY SIX PIPE
WITH NEW PIPELINE MANUFACTURE
MODERN STANDARDS UNDER THIS
AUTHORITY. WE WERE ALSO
AUTHORIZED TO PRESSURE TEST ALL
HIGH PLAINS TO AT LEAST ONE
POINT TWO FIVE TIMES THE
MAXIMUM ALLOWABLE OPERATING
PRESSURE. EVEN THOUGH FEDERAL
REGULATIONS AT THE TIME ALLOWED
PIPELINE OPERATORS TO PRESSURE
TEST TO A ONE POINT ONE TIMES
AND MIELKE THRESHOLD IN CLASS
ONE LOCATION. FOLLOWING
CALIFORNIA'S LEAD FEDERAL
REGULATIONS WERE CHANGED AND
NOW ALSO REQUIRE ONE POINT TWO
FIVE TIMES MAO KIEFER TYPE
PLANS AS WELL. IN ADDITION WE
RECEIVED APPROVAL TO AUTOMATE
HUNDREDS OF ADDITIONAL MAINLINE
VALVES AND ENHANCE THE
AUTOMATION OF EXISTING ABOUT TO
ENABLE RAPID REMOTE ISOLATION
OF TRANSMISSION PIPELINES IN
THE EVENT OF A SIGNIFICANT DROP
IN PRESSURE. WE ALSO RECEIVED
SUPPORT FOR AN INNOVATIVE
TECHNOLOGY PLAN WHICH INCLUDED
PURPLE PROPOSALS TO INSTALL
FIBER OPTIC CABLES TO DETECT
BROWN MOVEMENT AND IDENTIFY
POTENTIAL THIRD PARTY DAMAGE.
WARNING MASHUP OF PIPELINES TO
PREVENT THIRD PARTY DAMAGE AND
NOTHING DETECTORS NEAR CRITICAL
FACILITIES. MOST RECENTLY THE
C. P. C. AUTHORIZED US TO PUT
TOGETHER A PLAN TO TEST A
REPLACE PIPELINES PRESSURE
TESTED PRIOR TO THE EXISTENCE
OF MODERN PRESSURE TESTING
STANDARDS. IN NINETEEN SEVENTY
ONE. MOREOVER IN ADDITION TO
SUPPORTING OUR COMPREHENSIVE
PIPELINE SAFETY ENHANCEMENT
PLAN. THE COMMISSION HAS
SUPPORTED OUR EFFORT TO ENHANCE
THE SAFETY OF OUR DISTRIBUTION
SYSTEM AS WELL. SINCE TWO
THOUSAND AND TEN WE REPLACED
OVER TWO THOUSAND SEVEN HUNDRED
MILES OF DISTRIBUTION PIPELINE.
FURTHER ENHANCING THE SAFETY OF
OUR COMMUNITY COMMUNITIES AND
REDUCING EMISSIONS. WE'VE ALSO
CONVERTED OVER TWENTY TWO
THOUSAND MOBILE HOME PARK
RESIDENTS TO DIRECT UTILITY
SERVICE. ENHANCING THE SAFETY
RELIABILITY AND AFFORDABILITY
OF SERVICE FOR THOUSANDS OF
CUSTOMERS MANY OF WHOM ARE NOW
ABLE TO PARTICIPATE IN THE CARE
AND MEDICAL BASELINE PROGRAM. I
WILL CONCLUDE MY PREPARED
REMARKS BY ONCE AGAIN THANKING
THIS COMMITTEE CHAIRMAN HELL
AND THE C. P. C. FOR YOUR AND
DURING COMMITMENT TO PUBLIC
SAFETY. AYE FOR TAKING
IMMEDIATE ACTION FOLLOWING THE
TRAGEDY IN SAMBAR NOW. TO
PROPEL CALIFORNIA TO LEAD THE
NATION IMPACT MY SAFETY AND
INNOVATION. THANK YOU. THANK
YOU VERY MUCH FISHING
APPRECIATE YOUR COMMENTS AND- I
WANT TO ACKNOWLEDGE REALLY AND
WHEN YOU REVIEW THE DOCUMENTS-
FROM TEN YEARS AGO TO TODAY.
YOU KNOW I FIND THAT THE
UTILITIES AND THE REGULATOR
HAVE MADE TREMENDOUS PROGRESS-
YOU'VE COME A LONG WAY. AND YOU
REALLY SHOULD BE PROUD OF YOUR
ACCOMPLISHMENTS AND- CERTAINLY
THE YOUR COMPANY SHOULD BE
PROUD AND CERTAINLY THE STATE
SHOULD BE APPROPRIATE PROUD AS
A REGULATOR. OF THE INDUSTRY
BUT- I KNOW THAT THAT- PRIDE
SHOULD SPUR YOU TO DO EVEN MORE
HOPEFULLY- TO BE BETTER. NOT TO
RESTER FIELD SATISFIED IN WHAT
HAS BEEN ACCOMPLISHED SAFETY IS
NOT STATIC AND- SO WE CANNOT BE
STATIC IN THAT IN THE N. T. S.
B. O. DIRECTOR PALMER OF A
QUESTION TO YOU- DEFEATED WE
COULD RETURN TO. THE
CONVERSATION- IN THIS IS
RELATED TO THE- NTSB
MASSACHUSETTS EXPLOSION- IN THE
FIRST PANEL THE FOLLOWING THE
GAS EXPLOSIONS DID THE CPUC
RESPOND TO THAT URGENT
RECOMMENDATION. THAT WAS GIVEN
TO THEM. SHARKS AND ALSO
CONTROL COMING OFF NEW
TECHNOLOGICALLY. M. AND
RESPONSE TO THE RIGHT OR THE
EVENT ITSELF- WE MERELY AT THE
PC AND WITHIN THE CAST IF
YOU'RE A LIABILITY BRANCH THE
ENEMY TO LOOKING AT THAT EVENT
AS TO WHAT MAY HAVE CAUSED THE
COFFEE WERE NOT PART OF THE
INVESTIGATION BUT LOOKING AT
YOU KNOW WHAT WAS HAPPENING
WHAT COULD HAVE BEEN AVOIDED
YOU KNOW WHAT WE GET OUT OF
THAT AND LOOKING AT OUR OWN
INTERNAL PROCESSES AS WELL AS
OUR GENERAL ORDERS TO SEE DID
WE HAVE ANY IMMEDIATELY
IDENTIFIABLE. GAPS THAT WAS
RIGHT OFF THE BAT SO OF WHICH I
A S. LOOK AT. AND THEN IN TERMS
OF THE ACTUAL P. IN TERMS OF
HAVING IT STAMPED WE ARE
CURRENTLY LOOKING AT THAT TIME
WE ARE AWARE OF THE LETTER TO
AND TO BE SENT TO THE
GOVERNOR'S OFFICE AND WE ARE
EVALUATING THE BEST WAY FOR US
TO MOVE FORWARD WITH IN THE
STATE OF CALIFORNIA AS WE ARE
AS PREVIOUSLY STATED ONE TO
THIRTY ONE STATES THAT DOES
PROVIDE FOR THAT EXEMPTION SO
WE ARE CURRENTLY EVALUATING AT
WHAT'S THE BEST WAY FOR US TO
GO FORWARD WITH THAT WHAT
PROVIDES THE GREATEST LEVEL OF
SAFETY FOR CALIFORNIANS AND
CONSUMERS WITH IN CALIFORNIA-
BUT ALSO HOW WE DIRECT YOUR- S.
INSURER. WE CAN FOR SAID AND IT
WORKS FOR THE REPAIRS. VERY
GOOD THANK YOU IT I KNOW YOU
WERE KIND ENOUGH TO REFERENCE
AB FIVE SEVENTY EIGHT EARLIER
OF MY THAT WAS MY STATUTE OF
TWENTY TWELVE WHICH REQUIRED A
RESPONSE TO THOSE
RECOMMENDATIONS WITHIN NINETY
DAYS OF RECEIPT SO I HOPE. AND
I FEEL CONFIDENT THAT THE PC
WILL LOOK AT THAT- CLOSER AS WE
MOVE FORWARD. ANOTHER QUESTION
CONSIDERING THE OVER
PRESSURIZATION OF P. GENIES
PIPES THAT CONTINUES TO BE AN
ISSUE FOLLOWING AN BRUNO WHERE
AS WE KNOW P. GENIES GAS SAFETY
PLAN SHOWS ELEVEN LARGE OVER
PRESSURIZATION EVENTS LAST YEAR
ALONE- THE CPUC AND OTHER OTHER
AND ARE YOU DO YOU. THE C. P.
U. C. UTILIZES SOME INTRICATE
TO INTERNALIZE LESSONS FROM THE
MASSACHUSETTS EXPLOSION- SO WE
LOOKS LIKE WE DID HAVE A NUMBER
OF THOSE OVER PRESSURIZATION
EVENT SO- TO P. JEANNIE AND N.
THOSE SO CALLED GAS- IN FIRST
TO SO CALLED GAS OF MISSING. OF
HAVE YOU OF. THE WE DON'T HAVE
MANY HOW MANY OVER PREET
PRESSURIZATION EVENTS DID SO
CAL GAS EXPERIENCE LAST YEAR.
ARE YOU OF BUT WE'RE OF THE
NUMBER. BOTH DISTRIBUTION AND
TRANSMISSION LINES. I DO NOT
HAVE THAT NUMBER IN FRONT OF ME
BUT I WOULD GLADLY SEND YOU A
WRITTEN RESPONSE FOLLOWING
HEARING. AND HOW THE- SINCE
THESE PIPES ARE A VINTAGE
NATURE AS WE KNOW MANY OF THEM.
SUCH AS THE- WIND AND- CHAMBER
AND- WHICH STALLED IN THE
NINETEEN FIFTIES. HOW ARE YOU-
COMBAT IN THESE OVER
PRESSURIZATION EVENTS
ESPECIALLY. IN LIGHT OF THOSE
AT THE AGE OF THOSE PIPES. THAT
THAT IS BEYOND THE SCOPE OF
WHAT I PREPARED TO DISCUSS HERE
TODAY- BUT I COULD DEFINITELY
PROVIDE A WRITTEN RESPONSE TO
THAT. OKAY THANK YOU VERY MUCH
BEFORE GOING TO THE QUESTIONS I
DID WANT TO. MOVE ON TO SOME-
AND BEFORE WE MOVE ON TO THE
OTHER QUESTIONS I JUST WANNA
MAKE SURE THAT THE PUBLIC. THAT
WANTS TO PARTICIPATE IN OUR
HEARING TODAY THEY CAN CALL
NOW- PLEASE DIAL THE TOLL FREE
NUMBER THAT I GAVE EARLIER
EIGHT FOUR FOUR. TWO NINE ONE
SIX THREE SIX FOUR AND WHEN
PROMPTED PLEASE USE THIS ACCESS
CODE WHICH IS. TWO EIGHT ZERO
FIVE NINE TWO SEVEN ZERO THAT'S
TWO EIGHT ZERO FIVE. NINE SEVEN
ZERO SO HOPEFULLY WE'LL GET
CALLS FROM THE PUBLIC TO TOUR
DIRECTOR PALMER- THE LAST PANEL
ALSO DISCUSSED- SOME OF THE
PROBLEMS WITH FINANCIAL
INCENTIVES. BEING USED TO
ENCOURAGE SAFETY AT THE
UTILITIES I THINK WE TALKED A
LOT ABOUT THAT AND AS YOU
RECALL P. GENIES LOCATE AND
MARK INVESTIGATION WHICH
CONCLUDED IN. JANUARY OF THIS
YEAR RAISE THE ISSUES OF KIND
OF PERVERSE INCENTIVES WERE
THAT CD FOUND THAT FROM TWO
THOUSAND AND EIGHT TO TWO
THOUSAND AND TWELVE ONE OF P.
GENIES SHORT TERM FINANCIAL
INCENTIVES FOR SUPERVISORS WAS
A REDUCTION IN THE LAKE
TICKETS- IN IS WE KNOW WHAT
HAPPENED WITH THAT IF THE
BACKGROUND PAPER SUBMITTED FOR
THIS HEARING ALSO NOTES THAT P.
GENIES CURRENT. DIG IN AND STEP
METRIC CAN OBSCURE ACTUAL
SAFETY MEASUREMENTS AND MAY BE
EASILY CO OPTED. TO WHY IS THIS
NUMBER OF BEGINS AND FOUR
THOUSAND TICKETS AN APPROPRIATE
METRICS IT'S BEING USED AND
DOES THIS RAISE ANY CONCERN
ABOUT. THE INCENTIVES CURRENTLY
IN PLACE. I THANK CHAIRMAN FOR
THE QUESTION. IN TERMS OF THE
INCENTIVE I'LL ADDRESS THAT
FIRST. THE DIRECTOR OF
ESTUDIANTES SPEAKING FOR
MYSELF- I AM NOT. IN FAVOR OF
THE CENTERS ARE I'LL BE UP
FRONT I BELIEVE THAT I WOULD BE
WAS DR- PAUL NEWMAN FROM AND
THAT YOU KNOW POINTED OUT
THERE'S A BIG FOSTER THAT ARE
DEFINITELY PROPOSED TO
INCENTIVIZING. SAFETY VIA A- A
MONETARY VALUE- SAFETY IS A
CULTURE AT THE STATE OF MIND
IT'S SOMETHING THAT THAT YOU
LIVE WITH FOR AND YOU RESET AND
IT MIGHT BE FOR VARIOUS REASONS
BUT IT IS A CULTURE THAT YOU
HAVE TO HARNESS. AND FACILITATE
WITH THROUGHOUT THE ENTIRE
ORGANIZATION AND AS SUCH YOU
NEED TO ENSURE AND THIS IS WHAT
WE TRY TO DO WITH AN STD IT'S
FREE TRY TO DECIDE YOURSELF
STRUCTURE OUR DIFFERENT LINES
OF BUSINESS. JUST LIKE SOME THE
UTILITIES HAVE DONE OR SPEAKING
WITH EACH OTHER AND LEARNING
THIS VALUABLE LESSONS FROM EACH
OTHER- WE DON'T HAVE AN
INCENTIVE ON THE REGULATOR SIDE
FOR ISSUE MORE CITATIONS ARE
FINDING MORE STUFF. THERE IS NO
INCENTIVE FOR THAT AND
MONETARILY OR INCENTIVE AS WELL
WE KNOW WHAT IF WE GO OUT THERE
AND FIND NOTHING. THAT'S A
GREAT DAY THAT'S A GREAT DAY
BECAUSE WE KNOW THAT THEY ARE
ACTUALLY ENFORCE THEIR DAY ARE
LIVING UP TO SAFETY STANDARDS.
I MISS THE DAYS THAT WE DO FIND
SOMETHING THAT IS A CONCERNING
DAY AND ONLY SO THE QUESTION
DOES THE SAFETY CULTURE EXIST
WITHIN THAT ORGANIZATION IS A
COMING FROM THE TOP DOWN. OR IS
IT STARTING AT THE BOTTOM
WORKING ITS WAY HALF WAY UP AND
THEN SUDDENLY BEING STOPPED BY
IN THIS CASE LOCAL MARKET USE
YOUR EXAMPLE- AND INSTEAD WHERE.
SOMEBODY WAS TO YOU THAT FOR
NOW AND TO. YOU KNOW MEET AND-
ON THAT'S WHAT LED TO THE BY.
THAT'S WHAT TO CORRECT HAVE
BEEN IMPLEMENTED THROUGH THAT.
AND WE CONTINUE TO HAVE
OVERSIGHT OF LOCATING MARC
PROGRAM WITHIN P. JEANNIE TO
CORRECTIVE ACTIONS ARE BEING
PUT IN PLACE WHICH DOES
INCLUDE. A OUTSIDE CONSULTANT
TO BOTH MARTYRED A LOGIN MARC
PROGRAM AND THE SAFETY CULTURE.
THANK YOU MISTER PALMER. AND I
NOTICED THAT SENATOR STERN HAS
A QUESTION BUT I DID WANT TO
JUST FINISH THIS TRANSPORT- AND
THIS QUESTION DIRECTOR NG- YOU-
SODA DOES. THE SO CAL GAS AND-
ESTY GENIE USE THE SAME METRIC
AS P. JEANNIE TO MEASURE D. AND
SAFETY- AND IS IT LIKE WHY IS
TIED TO EXECUTIVE COMPENSATION.
AND THAT'S A GREAT QUESTION PER
SE I CAN'T SPEAK IN DETAIL
ABOUT HOW THE GENIE QUANTIFIES
ITS METRICS BUT WE DEFINITELY
TRACK. AND MONITOR ARE LOCATED
MARC METRICS BECAUSE THOSE ARE
IMPORTANT SAFETY METRICS- THAT
WILL FOCUS ON THE SAFETY OF OUR
SYSTEM ESPECIALLY IN
COMMUNITIES- WE DO HAVE. THE
SAFETY METRICS THAT WE TRACK
FOR OUR EXECUTIVE COMPENSATION
I CAN'T SIT HERE TODAY AND TELL
YOU EXACTLY WHETHER THERE IS
ONE FOR THAT BUT- I WILL SAY
THAT THIS IS SOMETHING THAT WE
DO FOCUS FONG. AND I AND I WILL
SAY I THINK IT'S APPROPRIATE
THAT WE FOCUS ON THIS BECAUSE
IT IS AN IMPORTANT REST OF
PIPELINE SAFETY. IF YOU ARE TO
HAVE. A DIG IN BY A THIRD PARTY
YOU KNOW AND I AGREE WITH THAT
HOWEVER IS P. JEANNIE FOUND
THAT THEIR METRIC AND THEY
THEIR USE OF. OF THAT
INCENTIVE- IN THE PERVERSE
NATURE OF THAT ALLOWED THEM TO.
JUST IT WAS A NUMBERS GAME
RATHER THAN A QUALITY GAME TO
DETERMINE WHETHER THE WORK WAS
ACTUALLY DONE IN A TIMELY
MANNER. IN ORDER TO MEET IT SO
I GUESS MY CONCERN IS HOW HAVE
YOU TAKEN. THE NECESSARY STEPS
TO MAKE SURE THAT ALONG THAT
PROCESS THAT THERE IS A
COMPLETE. MEASUREMENT AND
DYNAMIC WITH THE METRIC SO THAT
IT IS ACCURATELY REFLECTING A
SAFE AND A THOROUGH PROCESS-
BEFORE THE. INCENTIVE IS PAID
OR GIVEN. THAT'S A VERY GOOD
QUESTION I WILL SAY. THAT
DOCTOR SHERMAN MENTIONED THE
IMPORTANCE OF A STRONG SAFETY
CULTURE AND THE DYNAMICS OF
PEOPLE. AND AT SO CAL GAS WE
HAVE SEVENTY FIVE HUNDRED
EMPLOYEES THAT COME TO WORK
EVERY DAY. HONOR TO SAFEGUARD
THE SAFETY OF OUR SYSTEM AND
COMMITTED TO THAT AND I FIRMLY
BELIEVE THAT THE ANSWER
ACTUALLY LIES IN A STRONG
SAFETY CULTURE WHERE WE FOCUS
ON. ACTING OUR FELLOW EMPLOYEES
AND OUR COMMUNITIES AND
PRIORITIZE THAT ARE ACTUALLY
MAKE UP THE FOUNDATION ABOVE
ALL ELSE AND THAT'S OUR CULTURE
AT SOCALGAS. THANK YOU-
SENATORS TURN. HEY MISTER CHAIR
Q. WE SHOULD NOT CREATE A LINE
OF QUESTIONING I WAS GOING TO
FOLLOW UP. SPECIFICALLY WITH
REGARD TO- THE STATE OF THE
SYSTEM IN SOUTHERN CALIFORNIA.
I TOOK A FEW NOTES DURING
MISSING YOUR TESTIMONY BUT- DID
I THINK YOU SAID THERE WAS THAT
THERE WERE A HUNDRED FIFTY
MILES LEFT OF PIPELINE AND THAT
ARE DUE TO BE REPLACED I GET
THAT RIGHT. ACTUALLY WHAT I WAS
REFERRING TO WAS. WHEN WE
INITIALLY FILED OUR PLAN WE HAD
TO RAPIDLY RUBIO. DECADES OF
PAPER RECORDS AND WE INITIALLY
HAD A HIGHER ESTIMATE OF THE
NUMBER OF PIPELINES IN CLASS
THREE AND FOUR LIKE LOCATIONS
IN HIGH CONSEQUENCE AREAS THOSE
ARE THE CRITERIA SET FORTH. IN
THE NTSB SAFETY RECOMMENDATIONS
FOLLOWING SUMMER NOW. WE
INITIALLY HAD A HIGHER ESTIMATE
AND ONCE WE TOOK ADDITIONAL
TIME TO REVIEW OUR RECORDS. WE
HAD ONLY ABOUT A HUNDRED AND
FIFTY MILES REMAINING. AND HOW
MANY OF THOSE MILES HAVE YOU
BEEN ABLE TO REPAIR. INSTEAD
SINCE RECEIVING PERCENT
UPDATING YOUR YOUR REVIEW. IT'S
WELL OVER A HUNDRED MILES I
COULD GET YOU THE EXACT NUMBER
AFTER THE MEETING GIVE OR TAKE-
ABOUT FIFTY MILES AND THEY'D
PROBABLY LESS THAN THAT OF THE
REMAINING CLASS THREE OR FOUR-
CANDIDATES FOR UPGRADE. CORRECT
OKAY AND BUT THAT DOES NOT
INCLUDE I WAS GOING TO ASK HIM
THAT LINE TO THIRTY FIVE TWO-
WHICH RUPTURED IN A MORE REMOTE
AREA AS WELL AS THE I THINK IT
WAS LINE FOUR THOUSAND THAT WAS
TAKEN OUT OF SERVICE
SUBSEQUENTLY AND THEN LINE
THREE THOUSAND THAT DURING THAT
REPAIR PROCESS WAS ALSO.
REDUCED CAPACITY ARE THOSE
KINDS OF LARGER TRUNK LINES NOT
WITHIN THAT. THAT CLASS. THREE
FOR ANALYSIS THAT YOU'RE
TALKING ABOUT. THE IMAGE ABOUT
MILEAGE BE OUTSIDE OF HIGH
CONSEQUENCE AREAS IN MORE RULE
REGIONS AT THE HELP WAIT
UNDERSTANDING OF THE PIPELINE
MAY HAVE FANS THAT ARE OUTSIDE
OF HIGH CONSEQUENCE AREAS AND
THEN HAVE AREAS THAT ARE WITHIN
HIGH CONSEQUENCE AREAS BUT
YOU'RE CORRECT THAT. I POINT IN
LESS POPULATED AREAS WOULD NOT
BE INCLUDED IN THAT FIGURE. GOT
IT AND DO YOU. DO YOU HAVE AN
ESTIMATE AT THIS POINT OF WHAT
THE RATE IMPACTS HAVE BEEN OF
THOSE. THOSE VARIOUS REPAIR
PROJECTS. SORT OF CLASS THREE
AND FOUR PLUS THE LARGER TRUNK
LINES IN THE RURAL AREAS- FOUR
SEVERAL SINCE YOU KNOW SINCE
WHEN DID IT RUPTURE- TWENTY
SEVENTEEN I THINK IS ONE LINE
TO THIRTY FIVE RUPTURED YOU
KNOW HOW MUCH. RATE PAYER-
IMPACT THOSE IS AHEAD. WE
PREPARE RATE IMPACT ANALYSES
WHEN WE SUBMIT APPLICATIONS FOR
REVIEW OF THE COSTS THAT WE
RECORD I CAN PULL UP THOSE
NUMBERS FROM THE PUBLIC FILINGS
AND PROVIDE ON YOUR OFFICE. BE
GREAT- DO YOU HAVE A SENSE
THOUGH JUST AS A ROUND NUMBERS
ARE WE TALKING MILLIONS
HUNDREDS OF MILLIONS BILLIONS.
IF WE'RE TALKING ABOUT THE
AMOUNT THAT WE'VE INVESTED IN
HIGH POINT INFRASTRUCTURE.
SAFETY ENHANCEMENTS FOLLOWING
NUMBER NOW IT IS OVER A BILLION
DOLLARS. AND RIGHT IN ADDITION
TO THE ENHANCEMENTS THOUGH THE
REDUCE CAPACITY. IN THOSE LINES
DURING REPAIR AND THAT'S REALLY
BEEN AN AREA OF MY CONCERN IS
THE IS THE REPAIR PROCESS OF
TWO THIRTY FIVE TWO ONE FOUR
THOUSAND- TOOK SO LONG. AND
WE'RE GOING INTO ANOTHER WINTER
SEASON HERE WE'RE WE'RE
PROBABLY GONNA HAVE THOSE
STORIES ARE THE SAME COLD SNAPS
MY SENSE WAS IN ADDITION TO
THOSE INFRASTRUCTURE
INVESTMENTS THAT WERE. BASED ON
APPROVED BY THE P. YOU SEE
THERE ARE ALSO- ACTUAL GAS
SUPPLY COSTS BREAKS ASSOCIATED
WITH IT IS THAT. IT DO YOU HAVE
A SENSE OF THOSE NUMBERS. I DO
NOT WE DO HOWEVER NEED TO TAKE
FINDS OUT OF SERVICE TO
MAINTAIN THEM AND THAT IS PART
OF OPERATING IN NATURAL GAS
SYSTEM. I BELIEVE WHAT YOU'RE
ASKING IS THE ESTIMATED VALUE
OF REDUCED CAPACITY WILL REDUCE
THE PRESSURE ON A PIPELINE TO
CREATE A LARGER MARGIN OF
SAFETY OR WHEN WE REMOVE THEM
HI PLANE TO DO NECESSARY
ASSESSMENT WORK I DON'T HAVE AN
ESTIMATE OF THAT. INCREMENTAL
COSTS. GOT IT AND I KNOW BUT I
KNOW THAT THE C. P. U. C. WAS
WAS TRACKING. THAT ADDITIONAL
COST ESPECIALLY GIVEN THE
LENGTH OF TIME THAT THAT TO
THIRTY FIVE REPAIR TOOK- MISTER
PALMER DO YOU DO YOU KNOW WHERE
IS YOUR DIVISION. AWARE OF THAT
SORT OF STUFF INCREMENTAL.
ADDITIONAL COST. BUT
UNFORTUNATELY WITH THE STATE
IMPORTANT DIVISION NO WE DO NOT
TRACK THAT I DON'T BEGIN TO
DIVERSION BUT I AM HAPPY TO
FOLLOW UP WITH THEM AND FIND
OUT FROM MARS YOU KNOW. WHAT'S
COMING UP SO. CREATE THAT- TO
DO- ACTOR MISSING JUST VERY
HERE DO YOU DO YOU ANTICIPATE
ANY FURTHER MAJOR- OUTAGES IN
SERVICE OR- AND PREPARE EVENTS
GOING INTO THIS WINTER SEASON.
WE DO EVERYTHING WE CAN TO
AVOID. OUTAGES DURING A PEAK.
TO PEAK NEED. I CARE IF I DID
KNOW OF AN OUTAGE BY THE WAY I
WOULDN'T BE ABLE TO DISCLOSE IT
PUBLICLY BECAUSE THAT WOULD BE
MARKET SENSITIVE BUT- WE DO DO
WHAT WE CAN TO AVOID THAT
DURING PEAK MONTHS. OKAY BUT SO
BUT- YOU CAN'T CONCLUSIVELY SAY
THAT THERE ARE NO MAJOR REPAIRS
BEING PLANNED FOR THE COMING
MONTHS. I'M NOT AWARE OF ANY
BUT I WOULDN'T NECESSARILY KNOW
IF AND I. THINK WE ALL KNEW TO
THIRTY FIVE WAS OUT AND WAS
TAKING A LONG TIME AND- I'VE
GOT MY OWN OPINIONS ABOUT WHY
IT TOOK SO LONG AND- A BACK AND
FORTH IT TOOK PLACE BETWEEN YOU
ALL OVER STREAMBED ALTERATION
PERMITS. I'M JUST TRYING TO
FIGURE OUT HOW WE CAN AVOID IT-
THOSE DELAYS AND THE COST
IMPACTS ASSOCIATED WITH THOSE
DELAYS IN THE FUTURE- SO I
RECOGNIZE THAT'S NOT DIRECTLY A
SAFETY ISSUE IT'S MORE THAN
RATE IMPACTS OF THIS SAFETY
ISSUE BUT I WOULD JUST
APPRECIATE IF YOU GUYS HAD. ANY
DATA ABOUT THAT INCREMENTAL
COST FACTOR AND MISTER PALMER
THIS MAY BE SOMETHING THAT- I
KNOW COMMISSIONER RANDOLPH HAD
BEEN TRACKING THIS IS PART OF
THE ELITE SO CANYON PROCEEDING-
AND SO THAT HOPEFULLY THE PC IS
PAYING ATTENTION TO THAT- I
KNOW THAT YOU GUYS OF
AUTHORIZED ABOUT THREE HUNDRED
MILLION DOLLARS WORTH OF
EXPENDITURES TO PERFORM
UPGRADES- FOR PIPING AND
EQUIPMENT FOR LEAD MANAGEMENT.
AND I THINK THAT'S THAT'S
ACTUALLY MONEY WELL SPENT SO
I'M I'M I THINK IT'S SMART TO
BE NVESTING RATE PAYER DOLLARS
IN THE SAFETY WORK BUT THE-
DELAYS IN THAT WORK AND THE
TIMING OF IT I'M ESPECIALLY
WHEN IT COMES TO THE SEASONS
WERE GAS CAN BE SHORT- DURING
THE WINTERS IS THE BIGGEST
CONCERN FOR ME SO- HOW TO MARRY
THOSE SORT OF RATE.
SENSITIVITIES WITH THE SORT OF
PRIMARY MISSION OF THIS SAFETY
DIVISION I THINK I WILL I JUST
I WOULD LIKE TO. GET OUR HEADS
WRAPPED AROUND. THAT IF WE
COULD GOING FORWARD. ACTUALLY
SENT THANK YOU VERY MUCH FOR
YOUR INSIGHT AND I WOULD BE
SORT BACK WITH ENERGY TO ENSURE
THAT WE GET YOU SOLID ANSWER ON.
BRITISH BEFORE AS LONG AS SHE
HAVE MOST OF. AND APPRECIATE
THAT WE SHOULD BETTER WELL
ABOARD WERE VERY VERY THAT'S
REAL HAVE YOUR- AND TAKING.
THAT ATTITUDE. MILITARY STYLE
ADS YU'RE GETTING YOUR SIX AND
REALLY. LOOK AFTER YOUR FELLOW
PEOPLE AND LOOKING AFTER
CULTURE IN THAT CONFERENCE
HUESO PRESHEAF TESTIMONY TODAY
AND GIVES ME A LOT OF
CONFIDENCE TO. SEE WHAT THE
HELL MAYOR OF MY VERY LAST
QUESTION MISTER CHAIR- STILL IN
THIS SORT OF- THIS RETAIN IT.
RIGHT I'VE BEEN. I REALLY WANT
TO MAKE SURE THAT RATEPAYER
DOLLARS. FOR ALL THESE SAFETY
WORKER BEING EXPENDED- ED SMART
AND- COST EFFECTIVELY- I HAVE
BEEN CONCERNED I RAISED THIS
CONCERN WITH THE PUBLIC
UTILITIES COMMISSION. ABOUT USE
OF RATEPAYER DOLLARS- FUNDING
ADVOCACY EFFORTS AND SORT OF
BEING DIVERTED AWAY FROM WHAT
IS ACTUALLY THERE. HYPE LINE
SAFETY UPGRADE WORK. TOWARDS
POLITICSOR ADVOCACY- I KNOW
THERE'S BEEN AN ISSUE. AROUND
ONE PARTICULAR GROUP- THAT'S
BEING. COVERED IN A DRESS THIS
ACT I THINK IT'S CLEAN ENERGY
FOR. IT BUSINESS SOLUTIONS-
THAT THE GAS COMANY WAS
FUNDING- AND THAT THE PUBLIC
UTILITIES COMMISSION IS
APPARENTLY INVESTIGATING- THAT
ISSUE AND THAT ISSUE REST RIGHT
NOW WITH. THE PRESIDENT
DISPATCHER BY. ANOTHER
ORGANIZATION HAS POPPED UP
RECENTLY- THAT APPEARS TO ALSO
BE UTILITY FUNDED- CALLED
UNITED LATINOS VOTE- I'VE SEEN
ADVERTISEMENTS POPPING UP- IN
NEWSPAPERS ALL AROUND- VENTURA
COUNTY LOS. ANGELES COUNTY. ALL
THAT SOME OF IT ACTUALLY FOR
EVEN THOUGH IT'S IN THE TURNED
OUT A. COUNTY BY PG&E PUSHING
BACK ON THE CLIMATE AND- READ
TRIPLE ARE AND I'M ONE. BUT
FROM P. AND THE GAS COMPANY
WHETHER ANY RATEPAYER DOLLARS
TO THEIR KNOWLEDGE HAVE BEEN
USED TO FUND THIS ORGANIZATION.
THIS IS CHRISTINE HAUSER FROM
P. JEANNIE I'M NOT AWARE OF
THIS ORGANIZATION AND NOT AWARE
OF ANY. ANY REPAIR FUNDING
GOING TO FIND IT BUT HAPPY TO
FOLLOW UP AND CONFIRM THAT
THAT'S THE CASE OKAY THANK YOU.
MISSING THANK YOU SENATOR STERN
GREAT START JUST MISSING JUST
CAN YOU DO NOW ARE YOU AWARE OF
ANY REPAIR DOLLARS BEING SPENT
TO FUND THAT ORGANIZATION I AM
NOT I HAVE TO BE HONEST I HAVE
NOT HEARD OF THIS ORGANIZATION
BUT I WILL DEFINITELY LOOK INTO
IT AS A LATINA AND IN SOUTHERN
CALIFORNIA I'M INTERESTED TO
LEARN MORE ABOUT THIS AND
ORGANIZATIONS THANKS OKAY
THANKS FOR THAT AND LOOK
FORWARD TO. FOLLOWING UP. IT
WOULD BE GREAT TO GET THAT
INFORMATION THANK YOU SENATOR
STERN GREAT QUESTIONS FREESHEET
THAT TO. TRIGGER PALMER AND-
JUST YOU KNOW THE ISSUE OF.
THAT WE'VE TALKED ABOUT IN THE
INADEQUACY OF METRICS- RAISES
CONCERNS WITH THE INCENTIVE
PROGRAMS- ESPECIALLY BUT
BROADLY WITH THE METRIC SYSTEM
AB WISHED REALLY THAT THAT
WE'VE SEEN TO- TO ISSUE TO
MEASURE PERFORMANCE AND I KNOW
IS WE TALKED ABOUT THE LOCATE
MARC. THE MARKET LOOK AT THE
LOCATE MARC PROGRAM AND THE
CHALLENGES WITH THAT. ALBUMS
THAT WERE CREATED BY THAT MY
UNDERSTANDING IS THAT THOSE
PROBLEMS ARE STILL. WITH EVEN
THE NEW PROGRAM AND METRICS
THAT ARE USED THAT IT'S STILL
BEING AND GAINED A LITTLE BIT
SO I'M HOPING THAT- THE PUC'S
LOOKING AT THAT AND MAKING SURE
THAT. IT IS- NOT- BEING GAMED
IN A WAY TO BROADEN THOSE
INCENTIVES- UNJUSTLY WITHOUT-
THE ABILITY TO REALLY VERIFY
THAT SAFETY IS NOT BEING
COMPROMISED IN SOME FORM SO-
HOPEFULLY THAT WE'RE WE'RE
LOOKING AT THAT IN THAT- P.
JEANNIE IS ALSO. MANAGING THAT-
THAT ASPECT COMPLETELY TO MAKE
SURE SO I GUESS IN LOOKING AT
THE METRICS AND WHAT WHAT IS
THE REVIEW PROCESS IN THE CPUC
FOR EVALUATING THE SAFETY
METRICS. THANK SENT SO WHEN WE
LOOK AT THE NUMBER OF DICKENS-
WE CAN SET WE LOOK AT THE
ABSOLUTE NUMBER. SO WE GET A
BETTER UNDERSTANDING OF AND PER
WAY TO NOT JUST TICKETS SUCH AS
YOUR RESIDENTS IS CALLING IN A
DIFFERENT KINDS OF DECKS SO IN
TERMS OF HOW WE LOOK AT A DAY
AGAIN EACH ONE OF THEM IS
GETTING REVIEW SO I DO WANT TO
MAKE SURE THAT WERE VERY CLEAR
ON THAT- ADDITIONALLY WITH THE
CORRECTIVE ACTIONS A CAME OUT
OF THE VIOLATIONS WE ARE
WORKING CLOSELY WITH P. GENIE.
IN SELECTING THE OUTSIDE
CONSULTANTS VENDORS THAT WILL
BE CONDUCTING THE FIELD AUDITS
AND RECORDS AUDITS AS THEY GO
THROUGH THE PROCESS WHICH
REPORT TO US SO WE DO GET THOSE
FINDINGS ARE CONSOLIDATED TO
STD- IMPEACHING YEAH BELIEVE
JUST ABOUT THE SAME TIME BUT I
HAVE TO VERIFY THAT- SO THAT
WAY WE CAN COORDINATE AND SEE
IN REAL TIME WHAT THE OUTSIDE
VENDORS AND CONSULTANTS ARE
FINDING ON BOTH IN THE RECORDS.
AND IN THE FIELD OFFICE. IT TO
THE GOOD BECAUSE IT'S YOU KNOW
IT'S OF THE EXPERT. AND CONSOLE
ARE IN. REVIEW OF THE- THAT.
THAT COULD BE USED TO DETERMINE
IF THERE MAY BE HOLES THAT- IN
THE- EFFICACY OF THOSE PROGRAMS
WHICH I THINK IS IMPORTANT AND-
AND I HOPE AND NICE TO HEAR
THAT THAT YOU'RE LOOKING AT
THAT- A QUESTION TO ALL OF OUR
PANELISTS NEARLY. ALL OF THE
RECOMMENDATIONS FROM SAN BRUNO.
WERE SPECIFIC TO HIGH
CONSEQUENCE PIPELINES. IN THESE
PIPELINES ARE IDENTIFIED AS WE
ALL KNOW BASED ON THEIR
PROXIMITY TO POPULATED AREAS
DRINKING WATER SOURCES ARE
PARTICULARLY VULNERABLE
COMPLAIN VIA MENTAL AREAS. THIS
DIFFERENTIATIONBETWEEN
PIPELINES MAKES IT CRITICAL TO
NOT ONLY MAKE ACCURATE PIPE
RECORDS TO KEEP ACCURATE
RECORDS OF PIPELINE LOCATIONS
BUT UPDATE THEM WITH SOME
FREQUENCY. GIVEN THE LAND ABOVE
THE PIPELINE IS CONSTANTLY
BEING DEVELOPED THE PUBLIC
ADVOCATE'S OFFICE AS I THINK WE
ALL KNOW REYES TO MISS
CLASSIFICATION. OF PIPELINES IS
A SERIOUS ISSUE WITH SO CAL.
GAS ESTY GENIE TWO YEARS AGO.
OUR THE COULD. AND THE
UTILITIES INSURANCE. THE RECORD
KEEPING AROUND PIPELINES
REMAINS UPDATED AND ACCURATE.
MISTER PALMER MAY WILL START
WITH YOU. I WILL GIVE THIS FROM
MY ATTENTION AND THEN I MIGHT-
YES MY PROGRAM AND RETURNS AND
ALSO WAY AND WE HAVE SOME MORE
SPECIFICS ST A FULL ANSWER US
ON OUR HELP BUT I WOULD I
UNDERSTAND THAT CONCERN DEAR
FRIEND CHU WAS PUBLIC
ADVOCATE'S OFFICE- WITH REGARDS
TO ENSURING THE RAPTORS MAKE UP
TO DATE. WE GO EACH YEAR I
BELIEVE IS NOW FIVE CYCLE INTO
EACH OF OUR AREAS OF
RESPONSIBILITY AND PART OF THAT
IS A RECORD AUDIT- DURING THAT
RECORDS AUDIT WE ARE LOOKING A
INFRASTRUCTURE MAPPING-
CONSTRUCTION MAKING THEM SAYS
GOING ON IN THAT. AREA
RESPONSIBILITY BY THE UTILITY
AT THAT TIME AND SO I GOT ONE
OF THE MEASURES WE LOOK AT OUR
RECORDS MAINTENANCE. AND THAT
WE WOULD SEE WHAT IS THE LAST
TIME THAT THEY HAVE TO DIGEST
CORDON AND SEARCH OR MAPPING
ITSELF OF- GAS PIPELINE'S
UNDERGROUND. ON TERRACES.
ANYTHING YOU WISH TO ADD TO
THIS. I GET AFTER GOOD
AFTERNOON A- GERMAN JAIL AND
MEMBERS OF THE SUBCOMMITTEE.
YES WE DID DO A COMPREHENSIVE.
PEACE UP INSPECTION OF PG&E
BACK AND I BELIEVE TWENTY
FOURTEEN. WHERE WE LOOKED AT
ALL OF ITS PIPELINE- SAFETY
DATA. SO WE LOOKED AT BYE BYE
SPECIFICATIONS TO MAKE SURE
THAT. THE M. L. P. HAS BEEN
VERIFIED. FOR ALL OF ITS
TRANSMISSION LINES. THANK YOU
YOU NEED TO THE DO YOU HAVE
FOR. A COMMENTATOR ON THANK YOU
SO FOR ME IN TERMS OF KEEPING
OUR RECORDS UP TO DATE AND WE
DO HAVE REGULAR REVIEWS OF OUR
PIPELINES VIA AERIAL PATROL ON
A MONTHLY BASIS IN THE SURVEY
ON A SEMI ANNUAL BASIS AND-
THROUGH THE CONTROL MAKE
SURVEYING WE IDENTIFY ANYTHING
THAT MIGHT HAVE CHANGED AROUND
OUR PIPELINE SO ENCROACHMENTS
OR ACTIVITY. ASSOCIATED WITH.
B. ROUNDING AREA OF OUR
PIPELINES IN A- WE COLLECT
DATA- AERIAL PHOTOGRAPHY AND
LYFT ARE DATA TO LOOK FOR
CHANGING- CIRCUMSTANCES AROUND
OUR PIPELINE SYSTEM- THAT HELP
US KEEP UP TO DATE IF THERE IS
DEVELOPMENT IN THE AREA THAT
MIGHT CHANGE- THE HIGH
CONSEQUENCE AREAS STATUS OF OUR
PIPELINES THAT AND THAT
INFORMATION IS UPDATED ON AN
ANNUAL BASIS AND FED INTO. OUR
INTEGRITY MANAGEMENT PROGRAM IN
OUR RISK ANALYSIS WORK AND SO
WE ARE FREQUENTLY MONITORING
THAT IN ADDITION WE MONITOR
THE- AS BUILT- WORK FOR MAPPING
ORGANIZATION SO WHEN WORK IS
COMPLETED IN THE FIELD WE
MONITOR- HELLO. TO GET THE
SYSTEMS OF RIGHT AT. WITH THAT
INFORMATION SO WE TAKE RECORD
KEEPING VERY SERIOUSLY WE SPENT
YOU KNOW AS I MENTIONED IN MY
COMMENTS WE SPENT SIGNIFICANT
EFFORT TO BUILD OUR SYSTEMS OF
RECORD FROM THE GROUND UP AFTER
SAN BRUNO AND SO. THOSE EFFORTS
I MENTIONED ARE BOOKS SOME OF
THE WAYS THAT WE KEEP THAT
INFORMATION UP TO DATE BERGER
THANK YOU MISSPELLED HER.
MISSING THANK YOU. IN ADDITION
TO CONTINUALLY ASSESSING
POPULATION GROWTH A LONGER
PIPELINES MUCH- ALIGNED WITH
WHAT PG&E DESCRIBED. WE AT
SOCALGAS HAVE TAKEN THE
POSITION OF INVESTING IN
ASSESSING OUR PIPELINES AND NON
H. C. A.'S UNDER INTEGRITY
MANAGEMENT PROGRAM. ALL ALONG-
WHEN I GAVE THAT INITIAL FIGURE
FROM TWENTY TEN AND THAT SAID
WE WERE- WE HAD ALREADY
RETROFITTED 50% OF OUR
PIPELINES TO ACCOMMODATE IN
LINE INSPECTION THAT INCLUDED
NON HCA. SO WHAT WE FIRMLY
BELIEVE IS THAT THE SAFETY OF
OUR PIPELINE IS CRITICAL AND
WE'RE COMMITTED TO THAT AND
WHAT WE DO IS OFTEN- GO ABOVE
AND BEYOND THE THEIR
REQUIREMENTS IN HCA'S AND ALSO-
PERFORM ASSESSMENTS AND NON
HCA'S. MMHM WE'RE VERY GOOD
THANK YOU IN THE CASE NOW CAN
LOOK INTO THE FUTURE A LITTLE
BIT- TO P. JEANNIE AND SOCALGAS
OF. ALL OF THESE CONVERSATIONS
AROUND PIPELINE SAFETY ARE
OCCURRING SIMULTANEOUSLY TO
CONVERSATIONS ABOUT REDUCTION
OR IN SOME CASES ELIMINATION OF
NATURAL GAS USAGE. WHAT IS YOUR
VISION FOR THE NEXT TEN YEARS
OF NATURAL GAS INFRASTRUCTURE
HOW DO WE ENSURE SAFETY IS
PRIORITISED DURING DURING THIS
DECADE. AND WHAT ARE SOME OF
THE RISKS THAT YOU FORESEE
ARISING FROM THAT. THIS CONCERT
A FRESH START WITH YOU. THANK
YOU SENATOR HEALTH. SO HE'S
VERY FOCUSED ON THE FUTURE OF
OUR GAS BUSINESS AND WHAT WE
CAN DO TO ENSURE THAT WE
CONTINUE TO OPERATE A SAFE
SYSTEM AS WE EAT SUPPORT THE
STATE'S GREENHOUSE GAS
EMISSIONS GOALS SO THE COUPLE
PIECES OF OUR STRATEGY OR
MAKING SURE WE'RE WE'RE MAKING
THE MOST COST EFFECTIVE AND-
PRUDENT INVESTMENTS IN OUR GAS
SYSTEM TO ENSURE SAFETY AND
RELIABILITY. WHILE ALSO
ENSURING THAT WE ARE. USING THE
GAS SYSTEM AS IT EXISTS TODAY
TO HELP SUPPORT- REDUCING
GREENHOUSE GAS EMISSIONS
THROUGH WEEK ABATEMENT FOR
CAPTURING METHANE- AND
LEVERAGING THAT IS RENEWABLE
NATURAL GAS AND ULTIMATELY
RESEARCH INTO HYDROGEN- AND TO
DETERMINE THE WAYS THAT THE
SYSTEM CAN CONTINUE TO BE
USEFUL INTO THE FUTURE- AS WE
LOOK AT THE RISKS ASSOCIATED
WITH THIS TRANSITION- YOU KNOW
I THINK. RELIABILITY IS-
SIGNIFICANT AREA FOR US TO
FOCUS WE NEED TO MAKE SURE
THAT. YOUR FIRST RANKING THE
FOOTPRINT OF THE GAS SYSTEM
THAT WE CONTINUE TO HAVE A
RELIABLE SYSTEM THAT CAN SERVE
THE CUSTOMERS THAT ARE NOT
CONTINUE TO BE SERVED BY IT AS
WELL AS- OBVIOUSLY CONTINUING
TO MAKE THE CURRENT SAFETY
INVESTMENTS IN THE SYSTEM. YOU
KNOW I THINK THE OTHER RISK
THAT WE ARE EXPLORING TO TRAIN
MAKE SURE WE UNDERSTAND IT
BEFORE WE MAKE ANY TRANSITION
WITH THE GAS SYSTEM IS.
UNDERSTANDING. SHINTO HYDROGEN-
AND SO THERE IS A SIGNIFICANT
AMOUNT OF RESEARCH GOING ON IN
THAT AREA TO ENSURE THAT WE CAN
CONTINUE TO OPERATE THE SYSTEM
SAFELY AS WE MAKE- ANY
TRANSITIONS THAT THE STATE. IS
CONSIDERING MOVING FORWARD SO
THOSE ARE SOME OF THE AREAS I
WOULD HAVE LIKED. THANK YOU
MISSING. THANK YOU I TOOK A GAS
WE SEE OURSELVES IN TEN YEARS
BEING THE CLEANEST SAFEST AND
MOST INNOVATIVE GAS
DISTRIBUTION UTILITY IN THE
COUNTRY AND TO DO THAT WE ARE
ALSO INVESTING IN A LOT OF I'VE
HEARD IN THE AREAS OF RENEWABLE
GAS. HYDROGEN AND OTHER
INNOVATIVE TECHNOLOGIES I SEE
THE GREATEST RISK IS PERHAPS A-
SHORT SIGHTED- PERSPECTIVE
THAT. WOULD SAY THAT THAT YOU
SHOULD HASTEN THE PATH TO
GETTING THERE THAT COULD CREATE
HONOR ABILITIES AND SYSTEM
RELIABILITY THAT THAT WE HAVE
EXPERIENCED LATELY I WOULD SEE
THAT AS THE GREATEST RISK. OKAY
IN THANK YOU MISSING AT THE
APPRECIATE THE THAT COULD PICK
COMINTERN SENTIMENT- IF- OF
DISTRACTED ASKED THE SAME
QUESTION TO THOSE OF MAY STILL
BE ON THE ON THE CALL STILL
FROM OUR FIRST PANEL IF YOU'RE
STILL THERE- AND I DON'T MEAN
LOOK DOWN HERE. I DON'T KNOW IF
ANYONE IS STILL ON THERE BEFORE
ANYONE ELSE HAS CIVIL COMMENTER
OF RISING. OF THOSE RISKS IN
THE FUTURE YEARS- OR HOW WE
ENSURE SAFETY IS PRIORITISED
DURING THIS NEXT DECADE- IF NOT
THE- DIRECTOR PALMER THE CPUC
SAFETY UNIT IS LIKEWISE
UNDERGOING STRUCTURAL CHANGES.
AND WHAT IS THE NAME THAT YOU
HOPE THIS REORGANIZATION WILL
ACCOMPLISH. I THANK YOU FOR THE
QUESTION CENTER TO HELP YES
SIDE TAKING FIRST DIVISION HAS
GONE- MANY CHANGES JUST IN THE
PAST YEAR- JUST FOR THOSE THAT
ARE AWARE OF IT WE'VE ADDED A
NEW BRANCH TO WATCH ARE SAFE
ENOUGH FOR FROM BRANCH- WE'VE
ALSO- RAIL SAFETY DIVISION AND
YOU TOLD YOU SEE ONE DIVISION
NOT EXPLAINED TO ITS OWN SO NOW
WITHIN SIXTEEN. DIVISION WE
HAVE A THREE LINES OF A FOCUSED
REPAIRS RESPONSIBILITY
SELECTRIC FIGURE LIABILITY GAS
SAFETY RELIABILITY AND AGAIN
THE WATER SAFETY ENFORCEMENT
BRANCH WHICH PRIMARY GOAL IS TO
FOCUS ON- YOU TELL POTENTIAL
UTILITY COSTS WILDFIRES- AND
MITIGATION EFFORTS AND PS PS
OFFENSE. THE VISION OF A CITY
MOVING FORWARD AND I APOLOGIZE
I DON'T QUITE REMEMBER SENATE
MAYBE IT'S JUST SAID MULTIPLE
TIMES EARLIER TODAY- BUT JUST
LEARNING FROM EACH SIDE OF THE
HOUSE HERE- ELECTRIC DOES SOME
THINGS WELL GASCON LEARN
SOMETHING. AND VICE VERSA SO I
MAKE IT A POINT TO INTERPRET MY
TEAMS WITH EACH OTHER ON A
WEEKLY BASIS WHERE WE LEARN
ABOUT WHAT EACH OTHER'S WORKING
ON WHAT OUR PRIORITIES ARE WHAT
OUR CHALLENGES ARE AND WHAT IT
IS WE'RE TRYING TO ACCOMPLISH
AND EACH LINE OF BUSINESS
PROCESS. AND AS WE DEVELOPED A
NEW WATER PERCEIVED IMPORTANT
BRANCH THAT GOES TO TAKE SOME
PRESSURE OFF OF OUR ELECTRIC
BRANCH WHICH HAS BEEN DOING IN
SOME CASES AND I'VE STATED THIS
IN PREVIOUS TESTIMONY- LAST
YEAR NINETY FIVE WORKING HOURS
RIGHT BECAUSE THEY ARE FOCUSED
ON WILDFIRES AND PSP'S EVENTS
NEWSLETTER THAT'S AYE
DEDICATED- STAFF. OF SOON TO BE
PROFESSIONALS AS THEY GET HIRED
AND TRAINED UP- BY MICHAEL
MOVING FORCE RECIPE AS WE
CONTINUE TO REFINE OUR NEW
STRUCTURE. IS. TO COLLABORATE
AND WORK HAND IN. AGAIN WITH
THE COMMUTER. AND YET SO. I
KNOW ON THE GAS. ON MY PROGRAM
MANAGER TERRENCE ONLINE HERE TO
MEET WITH EACH UTILITY ON A
QUARTERLY. BASIS MY GOAL FOR
WHAT. ARE FUTURE BUT ALL TAKE
YOUR PARKING ARE. I WANT TO
KEEP THE OPEN. GOING AT A
PERFECT LEVEL. WHERE THEY'RE
NOT A FOR TO TELL THAT THEY'RE
HAVING A CONCERN. BUT AT THE
SAME TIME THEY UNDERSTAND THAT
WE WILL AND- WHAT IS OUT THERE.
I'M IN GETTING A HOMEOWNER
RELATIONS. THAT ANSWER QUESTION
NO DOES FOR MUCH OF A AND-
WE'RE REALLY OF PLEASED THAT
pYOUR TO. A CERTAINLY TO THE
SAFETY OF OUR IN FOR. AND AN
ARE YOU TO SHOULD YOU- FOR THAT
AND THANK YOU TO OUR SECOND
PANEL. SO THAT THE KIM
CONCLUDES OUR PANEL DISCUSSION
AND WE WILL NOW MOVE ON TO
ANYONE WANTING TO PROVIDE.
PUBLIC COMMENT. DUE TO
CONSTRAINTS REGARDING THE
LENGTH OF HEARINGS TECHNOLOGY
CONSIDERATIONS AND THE CLEANING
PROTOCOLS COMMITTEE CHAIRS MAY
INSTITUTE INSTITUTE TIME LIMITS
ON TESTIMONY. TO ALL OTHERS
WISHING TO TESTIFY MUST LIMIT
THEIR COMMENTS TO TWO MINUTES.
NOW WE WILL BEGIN WITH ANY
WITNESSES HERE IN ROOM FORTY
TWO OH THREE. I SEE NO ONE IN
FORTY TWO OH THREE WE WILL NOW.
GO THROUGH- ROOM ONE TWELVE
THROUGH ANYONE THERE WHO WISHES
TO TESTIFY IN THERE'S NO ONE IN
ROOM ONE TWELVE FOR PUBLIC
COMMENT. WILL NOW MOVE ON TO
WITNESSES WAITING TO PROVIDE
PUBLIC COMMENT V. THE
TELECONFERENCE ORVIS. MODERATOR
IF YOU WOULD PLEASE PROP THE
INDIVIDUALS WAITING TO PROVIDE.
PUBLIC COMMENT THEN WE WILL
BEGIN. THANK YOU LADIES AND
GENTLEMEN IF YOU WISH TO
PROVIDE PUBLIC COMMENT ON
TODAY'S CALL YOU MAY PRESS ONE
AND THEN ZERO ON YOUR PHONE AT
THIS TIME. YOU'RE USING A
SPEAKERPHONE PLEASE PICK UP THE
HANDSET BEFORE PRESSING THE
NUMBERS. ONCE AGAIN IF YOU DO
HAVE A PUBLIC COMMENT PRESS ONE
AND ZERO AT THIS TIME. AT THIS
TIME WE HAVE NO PUBLIC COMMENT
IN Q. THANK YOU FEW COULD JUST
PROMPT THEM ONE MORE TIME I
WOULD APPRECIATE IT THANK YOU
MODERATE. THANK YOU AND LADIES
AND GENTLEMEN IF YOU WISH TO.
HAVE A PUBLIC COMMENT ON
TODAY'S CALL YOU MAY PRESS ONE
AND THEN ZERO AT THIS TIME. WE
HAVE NO PUBLIC COMMENT IN Q.
VERY GOOD THANK YOU MODERATOR
THANK YOU VERY MUCH. SO IF YOU
WERE NOT ABLE TO TESTIFY VIA
TELECONFERENCE RIVERS TODAY FOR
SOME REASON PLEASE SUBMIT YOUR
COMMENTS OR SUGGESTIONS IN
WRITING. TO THE SUBCOMMITTEE ON
GAS ELECTRIC AND TRANSPORTATION
SAFETY OR VISIT OUR WEBSITE
YOUR COMMENTS AND SUGGESTIONS
ARE IMPORTANT. VERY IMPORTANT
TO US AND WE WANT TO INCLUDE
YOUR TESTIMONY IN THE OFFICIAL
RECORD. OF THE HEARING TODAY
THANK YOU AND WE APPRECIATE
YOUR PARTICIPATION IN THAT. SO
TODAY- WE- WE'VE CONDUCTED A
BIT OF A DIFFERENT HEARING. FOR
US- THIS IS NOT THE NORMAL
HEARING IS NOT- USUALLY WHAT WE
DO THIS IS A RETROSPECTIVE. SO
OFTEN OUR CONVERSATIONS AND OUR
HEARINGS ARE DRIVEN BY ONE
MAJOR EVENT AFTER THE NEXT
MAJOR EVENT AND UNFORTUNATELY
IN UTILITIES AND- IN CALIFORNIA
THOSE EVENTS HAVE NOT BEEN- THE
BEST OF CIRCUMSTANCES- FOR
ANYONE- I CERTAINLY DID NOT
BEGIN MY WORK IN THE
LEGISLATURE WITH PLANS TO
DISCUSS- HE TO THE SAFETY.
PREVENT EVENTS BROUGHT ME TO
THE DISCUSSION TO THIS
DISCUSSION AND KEPT ME FOCUSED
ON ENSURING PROGRESS I FEEL
VERY STRONGLY THAT LESSONS FROM
THE PAST MUST BE STUDIED AND
APPLIED TO ASSURE SAFETY. IN
THE FUTURE. I AGREE WITH MANY
WHO NOTED THAT WE'VE MADE
SAFETY PROGRESS SINCE SAN
BRUNO. BUT WE HAVE BY NO MEANS
GONE FAR ENOUGH WE MUST KEEP
SAFETY PROMOTION AS OUR CENTRAL
FOCUS. I WANT TO THANK ALL THE
PANELISTS FOR THEIR
PARTICIPATION THIS- MORNING AND
AFTERNOON. AND APPRECIATE YOUR
WILLINGNESS TO TRY OUT OUR
VIRTUAL FORMAT YOUR TIME
EXPERTISE AND ENGAGEMENT ARE SO
VERY MUCH APPRECIATED. AND
THANK YOU TO THE SECRETARY OF
THE SENATE THE LEGISLATIVE DATA
CENTER. BERNIE MCNULTY AND
PATTI HANSEN IN ANYONE ELSE I'M
I'M FORGETTING- TODAY WHO ARE
INSURED THIS VIRTUAL HEARING
ONE OFF OF WITHOUT A HITCH. I'D
ALSO LIKE TO TAKE A MOMENT TO
ACKNOWLEDGE EVERYONE OVER THE
YEARS WHO HAVE MADE TODAY'S
HEARING POSSIBLE. I WANT TO
START WITH SENATOR BRADFORD.
SENATOR BRADFORD I THINK WAS ON
OUR CALL EARLIER. BUT WHEN THE
AFTER THE SAN BRUNO EXPLOSION
TEN YEARS AGO. IN THE ASSEMBLY
SHIZ SENATOR BRADFORD WAS
ASSEMBLY MEMBER BRADFORD AT THE
TIME AS I WAS IN THE ASSEMBLY
IN THE UTILITIES COMMITTEE OF
THE ASSEMBLY AND HE- JUMPED. TO
THE ISSUE. HIS LEADERSHIP
BROUGHT US TO A HEARING THAT WE
HELD IN SAN BRUNO WITH THE
PUBLIC UTILITIES COMMISSION TO
TRY TO STARTTHAT PROCESS OF
GETTING TO THE BOTTOM. OF WHAT
HAPPENED IN THAT CITY SO I
WOULD APPRECIATE HIS LEADERSHIP
AND CONTINUED LEADERSHIP IN
THIS- SUBJECT MATTER ALSO I
WANT TO THANK SENATOR ALEX
PADILLA. AND SENATE TO APPROVE
PRESIDENT PRO TEM DARRELL
STEINBERG WHO PERMITTED THIS
SUBCOMMITTEE'S FORMATION
ENVISIONED IT IN THE BEGINNING.
SENATOR BEN HUESO AND SENATE
PRESIDENT PRO TEM SAYA KEVIN DE
LEóN AND TONI ATKINS SAW THE
VALUE OF OUR WORK AND PERMITTED
THE SUBCOMMITTEE'S
CONTINUATION. I'M GRATEFUL TO
MY COLLEAGUES FOR HAVING THIS
OPPORTUNITY- OVER THE PAST
SEVEN YEARS. I HAVE TO THANK
THE STAFF OF THE STANDING
ENERGY COMMITTEE. WHO HAVE
SUPPORTED THE SUBCOMMITTEE IN
OUR EFFORTS THERE'S MELANIE
CAIN- JACQUELYN KINNEY. KELLY
SMITH J. DICKINSON MEDIA
BATISTA AND SARAH SMITH WHO
HAVE BEEN SO SUPPORTIVE AND
HELPFUL AND ARE SO COMMITTED TO
CALIFORNIA. AND INTO OUR ENERGY
INFRASTRUCTURE AND THEN OF
COURSE SO MUCH THANK THE STAFF
OF THIS SUBCOMMITTEE. DR TONY
MARINO. DEEP KNOWLEDGE VISION
AND PASSION FOR THE SUBJECT
MATTER ELEVATED ALL OF OUR
DISCUSSIONS TO THE HIGHEST
LEVEL. HE KNOWS SAFETY
ANIMATORS ALL CARE ABOUT
SAFETY. AND DOCTOR LARA
CHARLOTTE. AND KAITLIN
ARMSTRONG WHO SAW THE
SUBCOMMITTEE THROUGH ITS FINAL
YEARS. THANK YOU ALL. AND
FINALLY FINALLY THANK YOU FOR
EVERYONE FOR YOUR PATIENCE AND
COOPERATION TODAY. WE FINISHED
OUR AGENDA. THIS CONCLUDES THE
FINAL HEARING OF THE
SUBCOMMITTEE ON GAS ELECTRIC
AND TRANSPORTATION SAFETY. THIS
HEARING IS ADJOURNED.