Hydrogen Pipeline Safety Act.

Removed the word 'exclusive' from the State Fire Marshal's safety regulatory and enforcement authority over intrastate hydrogen pipelines, meaning other state agencies may now share or overlap in jurisdiction over these pipelines.

Added new Section 51020.055 requiring the Public Utilities Commission to submit a report to the Legislature by March 1, 2028, with recommendations for the appropriate safety regulatory framework and division of jurisdictional responsibility for pipelines carrying hydrogen blends below the threshold set in Section 51020.05 (including natural gas-hydrogen blends). The PUC may consult the State Fire Marshal. This section self-repeals on January 1, 2031.

Renamed the California Hazardous Liquid Pipeline Safety Fund to the California Pipeline Safety Fund throughout the bill, broadening the fund's name to encompass both hazardous liquid and hydrogen pipeline programs under a single fund.

Removed language exempting hydrogen pipeline safety regulations from the Administrative Procedure Act (Article 5 of Chapter 3.5 of Part 1 of Division 3 of Title 2), meaning these regulations will now go through the full state rulemaking process rather than a streamlined filing procedure.

Removed the separate requirement that any new hydrogen pipeline with construction beginning after January 1, 2026 must be designed to accommodate instrumented internal inspection devices. This requirement is now only part of the general standards for pipelines constructed on or after July 1, 2028.

Simplified the definition of 'hydrogen pipeline' by removing the temporal limitation that it must have been constructed on or after the effective date of safety standards. Now defined simply as a dedicated transmission pipeline for transporting hydrogen gas, regardless of when it was built.

Removed the standalone definition of 'production facility' in Section 51020.02(c). The term is now only defined within the exclusion for onshore production, refining, or manufacturing facilities in Section 51020.02(b)(2)(A).

Extended the deadline for existing hydrogen pipeline operators to file assessments from July 1, 2027 to July 1, 2028.

Extended the deadline for the State Fire Marshal to adopt regulations establishing appropriate frequency for tests and inspections from January 1, 2028 to July 1, 2028.

Removed the 'On and after January 1, 2026' effective date from Section 51020.18(a), which restricts building structures within hydrogen pipeline easements. The restriction now applies without a specific start date.

The bill now amends existing Sections 51018.6, 51019, and 51019.1 of the Government Code in addition to adding Chapter 5.6, integrating hydrogen pipeline safety into the existing hazardous liquid pipeline regulatory framework rather than being entirely standalone.

The fiscal note changes 'State-mandated local program' from 'no' to 'yes,' indicating the bill now imposes obligations on local agencies (likely related to fire department notification and training requirements).

The term 'dedicated hydrogen pipeline' is replaced throughout with 'hydrogen pipeline,' and the definition now specifically references 'transmission pipeline' including pressure stations and valves. The 'major retrofit' definition is removed, and the 90 percent hydrogen concentration threshold is moved from the definition to a separate regulatory section (51020.05) with a July 1, 2028 adoption deadline.

New Section 51018.6 establishes civil penalty enforcement for hydrogen pipeline violations, aligning penalties with federal standards (Section 190.223(a) of Title 49 CFR), specifying factors for penalty determination, and requiring penalties to be deposited into the Local Training Account.

The California Hazardous Liquid Pipeline Safety Fund is renamed the California Pipeline Safety Fund. Section 51019 now explicitly covers both pipeline operators and hydrogen pipeline operators for annual fees, with a 10 percent delinquency fee and 15 percent annual interest on unpaid amounts.

The deadline for existing hydrogen pipeline operators to file assessments is pushed from July 1, 2027 to July 1, 2028. New pipelines constructed on or after July 1, 2028 must meet design and material requirements by January 1, 2029. The State Fire Marshal must adopt safety standards regulations by July 1, 2028.

Compliance with Part 191 and Part 192 of Title 49 CFR now applies specifically to hydrogen pipelines constructed on or after July 1, 2028, rather than as a blanket requirement for all hydrogen pipelines. A new exception allows reuse of previously used materials upon a State Fire Marshal determination.

New Section 51020.06(b) requires that repairs to pre-existing hydrogen pipelines capable of accommodating instrumented internal inspection devices must be done in a manner that does not interfere with the passage of those devices.

The bill's scope expanded from regulating only 'dedicated hydrogen pipelines' (pipelines primarily transporting hydrogen) to all 'hydrogen pipelines' defined as every intrastate pipeline used solely for the transportation of hydrogen. The concentration threshold was raised from 50% to 90% hydrogen by volume.

The State Fire Marshal is now designated as having exclusive safety regulatory and enforcement authority over intrastate hydrogen pipelines, with potential to act as agent for the U.S. Secretary of Transportation for interstate pipeline segments within California.

The state-mandated local program designation changed from 'no' to 'yes' because the bill now creates new crimes that impose costs on local agencies.

New exclusions added: hydrogen pipelines do not include onshore production/refining/manufacturing facility piping or transportation by vessel, aircraft, tank truck, tank car, or other vehicle. A new definition of 'production facility' was added.

New design and construction requirements: all hydrogen pipelines must be constructed of new materials never previously used; pipelines with construction beginning after January 1, 2026 must accommodate instrumented internal inspection devices and incorporate approved leak detection systems.

Pressure testing requirements were added, including mandatory notification to the State Fire Marshal and local fire departments at least three working days before testing, independent certification of test results, and submission of test reports within 30 days.

Land use restrictions prohibit building structures in hydrogen pipeline easements or installing obstructions that prevent surface access, effective January 1, 2026. Shrubbery impairing aerial observation is also prohibited, with exceptions for revegetation and seasonal agricultural crops.

A centralized public database of intrastate hydrogen pipelines must be established and maintained by the State Fire Marshal, including locations, ownership, ages, and inspection histories, made available to all local, state, and federal agencies.

Existing hydrogen pipeline operators must file an assessment for inspection, maintenance, improvement, or replacement by July 1, 2027. Annual inspections of all intrastate hydrogen pipelines begin January 1, 2027. Land use restrictions in pipeline easements take effect January 1, 2026.

A new annual fee may be assessed and collected from every hydrogen pipeline operator, with a 10% delinquency fee and 15% annual interest on unpaid amounts. The California Hydrogen Pipeline Safety Fund was established with two accounts: the Pipeline Operations Account (for fees) and the Local Training Account (for civil penalties used for fire suppression training).

A new Section 3 was added stating no state reimbursement is required under Article XIII B of the California Constitution because the act's local costs arise solely from creating new crimes or changing penalties.

A full enforcement framework was added including: civil penalties aligned with federal limits, criminal penalties of up to $25,000 fine and/or one year jail for willful violations, $5,000 fine and/or one year jail for defacing pipeline markers, compliance orders, and authority to order pipeline shutdowns.

Incident reporting requirements mandate immediate notification to the fire department and Office of Emergency Services for any rupture, explosion, or fire involving a hydrogen pipeline, with State Fire Marshal dispatch to the scene.

Entire Article 4 (Sections 979-979.4) of the Public Utilities Code was removed. This eliminated a parallel set of hydrogen pipeline safety requirements that would have applied to pipelines under PUC jurisdiction, leaving only the Office of the State Fire Marshal provisions in the Government Code.

New Section 51024 was added, providing that the chapter does not limit PUC authority to regulate rates, services, or safety practices of public utilities under Section 216 of the Public Utilities Code, and establishing that if there is a conflict between this chapter and a PUC provision, the more protective provision applies.

The minimum hydrogen concentration threshold for a pipeline to qualify as a 'dedicated hydrogen pipeline' was raised from exceeding 50 percent by volume to exceeding 90 percent by volume. This substantially narrows the bill's scope, excluding pipelines that carry significant but less than dominant amounts of hydrogen.

The Office of the State Fire Marshal's authority to adopt a hydrogen percentage threshold changed from discretionary ('may adopt') to mandatory ('shall adopt'), requiring the office to set a specific percentage rather than leaving it optional.

Section 51022(a)(1) now specifies that the 'lowest technically feasible level' of hydrogen leakage is 'as determined by the Office of the State Fire Marshal,' giving the office explicit authority to define what that standard means in practice.

The state-mandated local program designation was removed. Previously, because violations of PUC rules would constitute crimes, the bill triggered reimbursement obligations for local agencies. With the PUC provisions removed, this is no longer applicable.

The definition of covered pipelines was narrowed from any pipeline transporting hydrogen at 50% or greater volume to 'dedicated hydrogen pipelines' that are newly constructed or undergo a major retrofit on or after the effective date of the applicable safety rules. This excludes existing pipelines that were already in service before the rules take effect.

A new Chapter 5.6 (Sections 51020-51023) was added to the Government Code, creating a parallel 'Hydrogen Pipeline Safety Act' under the Office of the State Fire Marshal's jurisdiction for dedicated hydrogen pipelines, with its own definitions, requirements, and enforcement authority.

The provision requiring the Energy Commission to enforce hydrogen pipeline safety standards for private, intrastate hydrogen pipelines (former Section 979.2(c)) was deleted entirely, eliminating a separate enforcement pathway for privately owned pipelines within state borders.

The annual compliance reporting deadline in the new Government Code section is March 30 (covering the previous calendar year), compared to December 31 in the Public Utilities Code section. This gives pipeline owners an additional three months to compile and submit reports under the OSFM track.

The recordkeeping requirement was changed from maintaining records of 'any measurable leakage of hydrogen' to 'any confirmed instances of leakages of hydrogen.' The word 'confirmed' raises the threshold, meaning only verified leaks must be recorded rather than all measurable ones.

The state-mandated local program designation in the fiscal note was changed from 'yes' to 'no,' indicating the Assembly determined the bill no longer imposes costs on local agencies that would trigger reimbursement obligations under the California Constitution.

The definition of 'hydrogen pipeline' was narrowed from any pipeline in new construction or major retrofit where hydrogen is at least 50 percent of total gas volume, to only a dedicated pipeline constructed or retrofitted on or after the effective date of PUC rules under this article, for the purpose of primarily transporting hydrogen gas.

A new paragraph (2) was added allowing the commission to adopt a percentage of hydrogen gas by volume (which must exceed 50 percent) for identifying dedicated hydrogen pipelines that meet the definition.

The bill's applicability is now limited to future dedicated hydrogen pipelines rather than any pipeline carrying 50 percent or more hydrogen, excluding existing mixed-gas pipelines and those built before the commission's rules take effect.

The entire amendment to Section 975 of the Public Utilities Code was deleted. This section had required gas corporations to file annual reports on natural gas leaks, mandated the PUC to adopt rules for leak reduction and methane emissions, and established best practices for leak surveys and repair. The bill no longer touches existing natural gas pipeline regulations.

Section 979.2(a)(1) changed the hydrogen pipeline design standard from 'prevent any hydrogen leakage' to 'minimize hydrogen leakage to the lowest technically feasible level.' This shifts the obligation from an absolute zero-leakage requirement to a best-effort minimization standard.

Section 979.4(a) changed the recordkeeping requirement from tracking 'any leakage of hydrogen' to tracking 'any measurable leakage of hydrogen,' narrowing what pipeline owners must document.

The fiscal committee designation changed from 'no' to 'yes' and the state-mandated local program designation changed from 'no' to 'yes,' indicating the bill now carries fiscal implications requiring legislative review and imposes costs on local agencies.

The code citation was corrected from 'Chapter 4.5 of Division 1' to 'Chapter 4.5 of Part 1 of Division 1' of the Public Utilities Code, fixing an imprecise reference to the correct part of the code.

Entirely new Article 4 (Sections 979 through 979.4) added to the Public Utilities Code, creating the Hydrogen Pipeline Safety Act. This expands the bill from a minor natural gas leak provision cleanup to a major new regulatory framework for hydrogen pipelines.

Legislative findings section added stating that hydrogen pipeline safety is crucial for protecting residents, property, and the environment; that hydrogen has potential to significantly reduce carbon footprint; and that proactive state leadership is required due to insufficient federal regulations.

Hydrogen pipelines must be designed and constructed to prevent any hydrogen leakage, use materials codified by ASME or equivalent for hydrogen compatibility and resistance to degradation (corrosion, embrittlement), and employ continuous measurement and monitoring systems to detect deviations from normal operational parameters.

Hydrogen pipeline owners must maintain accurate records of hydrogen concentration levels within the pipeline and any leakage, and submit an annual compliance report to the PUC by December 31 of each year.

The PUC must establish hydrogen pipeline safety standards meeting or exceeding the statutory requirements on or before January 1, 2028. Standards must be regularly reviewed and updated to incorporate technological advancements and evolving best practices.

The PUC enforces hydrogen pipeline safety standards across all jurisdictions in the state, with an exception: the Energy Commission enforces the standards for private, intrastate hydrogen pipelines.

New definitions added: 'hydrogen pipeline' (a pipeline in new construction or major retrofit where hydrogen is at least 50 percent of total gas volume under operational conditions), 'major retrofit' (substantial modification to existing infrastructure repurposed for hydrogen use), and 'continuous measurement and monitoring system' (integrated tools that continuously assess pipeline integrity, detect leaks or anomalies, and enable prompt corrective actions).

Fiscal committee designation changed from 'no' to 'yes,' and state-mandated local program changed from 'no' to 'yes' because violations of PUC actions implementing the new requirements would constitute crimes. A new no-reimbursement provision was added under Article XIII B of the California Constitution.