SB804 - Hydrogen Pipeline Safety Act.

Amended IN Assembly August 17, 2026 Amended IN Assembly July 01, 2026 Amended IN Assembly June 08, 2026 Amended IN Assembly June 27, 2025 Amended IN Assembly June 17, 2025 Amended IN Senate May 06, 2025 Amended IN Senate April 21, 2025 Amended IN Senate March 24, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 804 Introduced by Senator Archuleta (Coauthor: Assembly Member Petrie-Norris) February 21, 2025 An act to amend Sections 51018.6, 51019, and 51019.1 of, and to add Chapter 5.6 (commencing with Section 51020) to Part 1 of Division 1 of Title 5 of, and to repeal Section 51020.055 of, the Government Code, relating to pipeline safety. LEGISLATIVE COUNSEL'S DIGEST SB 804, as amended, Archuleta. Hydrogen Pipeline Safety Act. (1) The Elder California Pipeline Safety Act of 1981 requires the State Fire Marshal to adopt regulations relating to intrastate pipelines used for the transportation of hazardous liquid substances or highly volatile liquid substances. The act requires these regulations to comply with federal law, which defines hazardous liquid to include, among others, petroleum, petroleum products, and ethanol or other nonpetroleum fuel. Federal law also defines highly volatile liquid substances to mean a hazardous liquid that will form a vapor cloud when released, as provided. The act governs various issues related to intrastate pipelines, including, among others, pipeline design and construction, pipeline testing, land use restrictions within pipeline easements, reporting and document retention requirements on pipeline operators, pipeline inspections, emergency protocols, and enforcement. This bill would enact the Hydrogen Pipeline Safety Act, a regulatory program, similar to the Elder California Pipeline Safety Act, governing pipelines dedicated to transporting hydrogen, to be administered by the State Fire Marshal, as specified. The bill would require the State Fire Marshal to adopt regulations governing various issues related to the operation and safety of hydrogen pipelines, including those listed above. The Elder California Pipeline Safety Act authorizes the State Fire Marshal to assess and collect an annual fee from each operator of a pipeline regulated by the act for the purposes of carrying out the act, as provided, and requires those annual fees to be deposited into the Pipeline Operations Account within the California Hazardous Liquid Pipeline Safety Fund. The act requires specified civil penalties provided for by the act to be deposited into the Local Training Account in the fund. Moneys in the accounts are available, upon appropriation by the Legislature, to the State Fire Marshal for specified purposes. This bill would similarly authorize the State Fire Marshal to assess and collect an annual fee from each hydrogen pipeline operator for the purposes of carrying out the bill. The bill would require those annual fees to be deposited into the Pipeline Operations Account and specified civil penalties provided for by the bill into the Local Training Account. The bill would make the moneys in the accounts available, upon appropriation by the Legislature, to the State Fire Marshal for specified purposes relating to these pipeline regulatory programs. The bill would rename the California Hazardous Liquid Pipeline Safety Fund the California Pipeline Safety Fund. The Elder California Pipeline Safety Act requires that a person who willfully and knowingly violates the act or a regulation issued pursuant to the act be subject to a fine of not more than $25,000, imprisonment, or both, as provided. The act requires a person who willfully and knowingly defaces, damages, removes, or destroys any hazardous liquid pipeline sign or right-of-way marker required by law to be subject to a fine of not more than $5,000, imprisonment, or both, as provided. This bill would require the same penalties described above to be imposed on a person who willfully and knowingly violates a provision of the bill or a regulation issued pursuant to the bill or defaces, damages, removes, or destroys any hydrogen pipeline sign or right-of-way marker required by law. By creating new crimes, this the bill would impose a state-mandated local program. The bill would require the Public Utilities Commission to submit to the Legislature a report with recommendations for the appropriate regulatory framework and division of jurisdictional responsibility applicable to certain pipelines carrying blends of hydrogen, as specified. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. (a) The Legislature finds and declares all of the following: (1) Ensuring the safety and environmental integrity of hydrogen pipelines is crucial for the protection of California’s residents, physical property, and natural environment. (2) Hydrogen has the potential to significantly reduce our carbon footprint and serve as a cornerstone for a sustainable and clean energy future. (3) Proactive state leadership is required to set comprehensive and effective standards in the absence of sufficient federal regulations. (b) It is the intent of the Legislature, in enacting this bill, that the State Fire Marshal exercise safety regulatory and enforcement authority over intrastate hydrogen pipelines and, to the extent authorized by agreement between the State Fire Marshal and the United States Secretary of Transportation, may act as agent for the United States Secretary of Transportation to implement Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code and federal pipeline safety regulations as to those portions of interstate pipelines located within this state, as necessary to obtain annual federal certification. SEC. 2. Section 51018.6 of the Government Code is amended to read: 51018.6. (a) The State Fire Marshal shall adopt regulations for conducting enforcement proceedings pursuant to this section. These regulations shall include provisions for the service and the content of the notice of probable violation, response options, conduct of hearings, issuing of the final order, amended final order, and petitions for reconsideration and compromise of penalties, and shall be consistent with the procedures specified in Subpart B (commencing with Section 190.201) of Part 190 of Title 49 of the Code of Federal Regulations. (b) If the State Fire Marshal determines, pursuant to the regulations adopted pursuant to subdivision (a), that a person has violated this chapter or any regulation adopted pursuant thereto, that person is subject to a civil penalty not to exceed the amount specified in Section 190.223(a) of Title 49 of the Code of Federal Regulations. (c) The amount of the penalty shall be assessed by the State Fire Marshal pursuant to the regulations adopted pursuant to subdivision (a). In determining the amount of the penalty, the State Fire Marshal shall consider the nature, circumstances, and gravity of the violation and, with respect to the person found to have committed the violation, the degree of culpability, any history of prior violations, the effect on ability to continue to do business, any good faith attempts to achieve compliance, ability to pay the penalty, and any other matters as justice may require. (d) A civil penalty assessed under subdivision (b) may be recovered in an action brought by the Attorney General on behalf of the state. Prior to Before referring the penalty action to the Attorney General, the State Fire Marshal may accept an offer to compromise the amount of the assessed penalty pursuant to the regulations adopted pursuant to subdivision (a). (e) The State Fire Marshal shall deposit all civil penalties assessed pursuant to this section into the Local Training Account in the California Pipeline Safety Fund. The money in the Local Training Account is available, upon appropriation by the Legislature, to the State Fire Marshal, who shall use the money for providing hazardous liquid fire suppression training or first responder training for hazardous gas response and suppression to local fire departments. SEC. 3. Section 51019 of the Government Code is amended to read: 51019. The State Fire Marshal may assess and collect from every pipeline operator and every hydrogen pipeline operator an annual fee for the purpose of carrying out this chapter and Chapter 5.6 (commencing with Section 51020). The State Fire Marshal may assess this fee for expenses that will be incurred during the following year. A pipeline operator and hydrogen pipeline operator shall pay this fee when billed by the State Fire Marshal. The State Fire Marshal may impose a delinquency fee of 10 percent of the annual fee if the pipeline operator or hydrogen pipeline operator does not pay the fee within 60 days after receipt of the bill, and, in addition, the pipeline operator or hydrogen pipeline operator shall pay interest on that portion of its annual fee not paid within 60 days at the rate of 15 percent per annum from the date of receipt of the bill until paid. The total amount of the fee collected shall not exceed the actual expenses incurred, or the estimated expenses that will be incurred, by the State Fire Marshal in carrying out this chapter and Chapter 5.6 (commencing with Section 51020). SEC. 4. Section 51019.1 of the Government Code is amended to read: 51019.1. (a) There is hereby created the California Pipeline Safety Fund, consisting of the Local Training Account and the Pipeline Operations Account. (b) All fees collected pursuant to Sections 51019 and 51019.05 shall be deposited into the Pipeline Operations Account. The money in the account is available, upon appropriation by the Legislature, to the State Fire Marshal for the purpose of carrying out this chapter and Chapter 5.6 (commencing with Section 51020). SEC. 5. Chapter 5.6 (commencing with Section 51020) is added to Part 1 of Division 1 of Title 5 of the Government Code, to read: CHAPTER 5.6. Hydrogen Pipeline Safety Act 51020. This chapter shall be known, and may be cited, as the Hydrogen Pipeline Safety Act. 51020.02. For purposes of this chapter, the following definitions apply: (a) “Continuous measurement and monitoring system” means a set of integrated tools and technologies designed to continuously assess the operational status of a hydrogen pipeline that is capable of detecting leaks, enables prompt automated or manual corrective actions to prevent or limit a hydrogen release into the atmosphere, and supports pipeline safety, emergency response, and efficiency. (b) (1) “Hydrogen pipeline” means a dedicated transmission pipeline, including all pressure stations and valves that allow for safe pressuring and operations, for the purpose of transporting hydrogen gas. “Hydrogen pipeline” includes every intrastate transmission pipeline used solely for the transportation of hydrogen. (2) “Hydrogen pipeline” does not include either of the following: (A) A pipeline for the transportation of hydrogen through an onshore production, refining, or manufacturing facility, including a storage or in-plant piping system associated with that facility. For purposes of this subparagraph, “production facility” means piping or equipment used in the production, extraction, recovery, lifting, stabilization, separation, or treatment of gas or associated storage or measurement. (B) Transportation of hydrogen by vessel, aircraft, tank truck, tank car, or other vehicle or terminal facilities used exclusively to transfer hydrogen between those modes of transportation. 51020.04. (a) The State Fire Marshal shall adopt, by July 1, 2028, in regulation hydrogen pipeline safety standards in compliance with the federal law relating to hydrogen pipeline safety, including, but not limited to, compliance orders, penalties, and inspection and maintenance provisions, and including amendments to those laws and regulations that may be hereafter enacted and adopted. (b) The State Fire Marshal may exempt the application of regulations adopted pursuant to this section to any hydrogen pipeline, or portion thereof, when the State Fire Marshal determines that the risk to public safety is slight and the probability of injury or damage remote. (c) Notification of exemptions shall be written, and shall include a discussion of those factors that the State Fire Marshal considers significant to the granting of the exemption. 51020.05. The State Fire Marshal shall adopt, by July 1, 2028, in regulation a percentage of hydrogen gas by volume carried in a hydrogen pipeline for the purpose of identifying hydrogen pipelines. A percentage adopted by the State Fire Marshal for this purpose shall exceed 90 percent. 51020.055. (a) On or before March 1, 2028, the Public Utilities Commission shall develop and submit to the Legislature a report with recommendations for the appropriate safety regulatory framework and division of jurisdictional responsibility applicable to pipelines carrying blends of hydrogen below the percentage threshold adopted pursuant to Section 51020.05, including those pipelines blending hydrogen with natural gas. The Public Utilities Commission may consult the State Fire Marshal in developing these recommendations. (b) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795. (c) Pursuant to Section 10231.5, this section is repealed on January 1, 2031. 51020.06. (a) On or before July 1, 2028, all hydrogen pipeline operators with pipelines constructed before the effective date of the hydrogen pipeline safety standards established by the State Fire Marshal pursuant to Section 51020.04 shall file with the State Fire Marshal an assessment for inspection, maintenance, improvement, or replacement, as applicable, for those hydrogen pipelines. The assessment shall also provide information documenting any prior releases and subsequent investigation and cause of the hydrogen pipeline release. The assessment shall cover all applicable hydrogen requirements found in Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code and Title 49 of the Code of Federal Regulations. (b) Any repairs to hydrogen pipelines constructed before the effective date of the hydrogen pipeline safety standards established by the State Fire Marshal pursuant to Section 51020.04 that can accommodate instrumented internal inspection devices shall be done in a manner that will not interfere with the passage of these devices. 51020.08. (a) The Office of the State Fire Marshal shall require hydrogen pipelines that are constructed on [Text truncated for display. Full text available on Congress.gov.]