Hydrogen Pipeline Safety Act

The law puts intrastate hydrogen pipelines under state safety oversight, setting construction, testing, inspection, leak-response, and public-information requirements.

What the law does ​

• Requires the State Fire Marshal to adopt hydrogen-pipeline safety standards by July 1, 2028, aligned with federal pipeline rules.
• Requires new pipelines built on or after July 1, 2028, to use hydrogen-compatible new materials, minimize leaks, continuously monitor operations, support internal inspections, and maintain leak-mitigation and emergency-response plans.
• Requires annual inspections of intrastate hydrogen pipelines beginning January 1, 2027, and creates a public database of pipeline locations, ownership, age, leaks, and inspection history.
• Requires operators to keep hydrogen-concentration and confirmed-leak records, submit annual compliance reports, test pipelines, and provide emergency maps, safety data, and contingency plans to local fire departments.
• Requires immediate reporting of pipeline ruptures, explosions, and fires to local fire departments and the Office of Emergency Services; pipelines generally must remain shut down after a rupture until the cause is investigated and the State Fire Marshal approves resumption.
• Authorizes operator fees, civil penalties, compliance orders, shutdowns, and criminal penalties for knowing violations or damage to required pipeline signs and markers.
• Requires the Public Utilities Commission to report by March 1, 2028, on safety oversight and jurisdiction for pipelines carrying hydrogen blends below the threshold for a dedicated hydrogen pipeline.

Who it affects ​

• Hydrogen pipeline owners and operators.
• Companies designing, constructing, testing, repairing, or retrofitting hydrogen pipelines.
• Local fire departments and emergency responders near hydrogen pipelines.
• Property owners and tenants along hydrogen-pipeline easements.

Context ​

A dedicated hydrogen pipeline is a transmission pipeline carrying more than 90 percent hydrogen by volume under the threshold the State Fire Marshal must adopt.

Breakdown ​

Hydrogen Pipeline Safety Program ​

The bill creates the Hydrogen Pipeline Safety Act, giving the State Fire Marshal responsibility for regulating pipelines dedicated to transporting hydrogen. It requires safety rules covering pipeline design, construction, testing, inspections, emergency planning, operator records, and enforcement. The bill also creates funding and penalty rules for hydrogen pipeline oversight and requires the Public Utilities Commission to recommend how certain pipelines carrying hydrogen blends should be regulated.

Key takeaways

• The State Fire Marshal must establish and administer a safety regulatory program for pipelines dedicated to transporting hydrogen.
• The new regulations must address pipeline safety and operations, including design, construction, testing, inspections, emergency procedures, land-use restrictions, and operator reporting and record retention.
• Hydrogen pipeline operators may be charged annual fees to fund the program, with the fees deposited in the Pipeline Operations Account.
• Specified civil penalties under the new law must be deposited in the Local Training Account, and the bill renames the California Hazardous Liquid Pipeline Safety Fund as the California Pipeline Safety Fund.
• Knowingly violating the hydrogen pipeline law or its regulations can result in a fine of up to $25,000, imprisonment, or both.
• Knowingly damaging, removing, or destroying required hydrogen pipeline signs or right-of-way markers can result in a fine of up to $5,000, imprisonment, or both.
• The Public Utilities Commission must report to the Legislature on an appropriate regulatory framework and division of responsibilities for certain pipelines carrying hydrogen blends.

No State Reimbursement Required ​

The bill states that local agencies and school districts do not have to be reimbursed for costs resulting from this act. It relies on a specified reason under the state’s reimbursement rules.

Key takeaways

• California generally must reimburse local governments and school districts for certain state-required costs.
• The bill says no reimbursement is required for costs created by this act.
• The bill bases the no-reimbursement determination on a specified reason.