Employment: refineries: task force., the official text

An act to add Section 25534.07 to the Health and Safety Code, and to amend Section 7856 of, and to add and repeal Chapter 3 (commencing with Section 7875) of Part 7.5 of Division 5 of, the Labor Code, relating to employment.

LEGISLATIVE COUNSEL'S DIGEST

Existing law establishes an accidental release prevention program for the state. Under that law, stationary sources subject to the accidental release prevention program may be required to prepare and submit a risk management plan (RMP) to prevent accidental releases of certain substances. Existing law imposes criminal penalties upon a stationary source that knowingly violates the requirements of the accidental release prevention program.
This bill would state findings and declarations concerning refinery closures in California. The bill would create the Refinery Safe Staffing Task Force to develop potential methods and strategies for ensuring maximum employee retention at refineries and addressing employment dislocations associated with oil, gas, and related industries, with membership, as specified, appointed and commencing service no later than January 1, 2028. The bill would require the task force, no later than June 1, 2029, to present to the Legislature and make available online to the public a report documenting a wide range of potential methods and strategies for ensuring maximum employee retention in the time period preceding refinery closure or long-term idling of a refinery, for ensuring safe operation in the event of understaffing, and for transitioning oil and gas workers into sectors that match their skills and experience. The bill would repeal the provisions that would create the task force on January 1, 2030.
This bill would require the California Environmental Protection Agency, by January 1, 2028, to adopt regulations that require all refineries, as specified, to develop safe staffing management plans to address staffing risks associated with anticipated refinery closure or long-term idling. The bill would require the regulations to require the plans to be updated periodically and upon announcement of a refinery closure or long-term idling, as specified. The bill would require the regulations to make the plans subject to public comment and presentation to the agency for approval. The bill would make the agency responsible for conducting inspections and investigations to ensure implementation of the refinery’s plan, addressing noncompliance through all available and necessary enforcement authority, and posting the drafts, comments, plans, and updates on its internet website, as specified. Because the bill would expand the scope of a crime, it would impose a state-mandated local program.
Existing law, the California Refinery and Chemical Plant Worker Safety Act of 1990, the purpose of which is to prevent or minimize the consequences of catastrophic releases of toxic, flammable, or explosive chemicals and eliminate the risks to which workers are exposed in refineries, requires the Division of Occupational Safety and Health to propose, and the Occupational Safety and Health Standards Board to consider for adoption, regulations implementing provisions for refineries, that, among other things, require an employer to develop and implement written operating procedures that provide clear instructions for safely conducting process or business activities.
This bill would require the division, by January 1, 2028, to propose, and the board to consider for adoption, regulations that require refinery employers to develop safe staffing management plans to address staffing risks associated with anticipated refinery closure or long-term idling. The bill would require the regulations to require the plans to be updated periodically and upon announcement of a refinery closure or long-term idling, as specified. The bill would require the regulations to make the plans subject to public comment and presentation to the division for approval. The bill would make the division responsible for conducting inspections and investigations to ensure implementation of an employer’s plan, addressing noncompliance through all available and necessary enforcement authority, and posting the drafts, comments, plans, and updates on its internet website, as specified.
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.

The people of the State of California do enact as follows:

SECTION 1.
The Legislature finds and declares all of the following:
(a) Multiple refineries in California have closed or announced closure within recent years, and there is a likelihood that more will close in the foreseeable future in line with declining demand for refined products.
(b) Closure announcements at refineries, required, pursuant to subdivision (p) of Section 25354 of the Public Resources Code, to be made a year in advance of closure, have precipitated severe staffing shortages at these refineries during the time period between the announcement and the completion of the closure, as workers leave to take new employment opportunities. The shortages lead to the remaining workers working extraordinarily long shifts, for extended periods of time, impacting not just their workplace performance but their ability to get proper rest once at home. Additionally, the loss of expertise causes further disruption, impacting efficiency within the workplace.
(c) The staffing shortages and disruptions during the preclosure time period, and attendant protracted working hours, result in dangerous levels of worker fatigue, creating risks for both the workers and the surrounding community. Workers experiencing fatigue from overlong shifts are more likely to make errors, and the complex and volatile processes at refineries are prone to dangerous accidents as a result of any such errors. In addition, fatigued workers’ response to emergency situations may also be impaired. Accidents at refineries have historically caused both worker injury and death, and widespread health harm to surrounding communities.
(d) The job market for laidoff refinery workers is difficult, and hence workers need significant incentives to remain at a refinery headed for closure, rather than leaving to take new employment opportunities. Adequate incentives to remain on the job could include extended severance packages, paid job training, extended job placement assistance, logistical assistance, and other financial assistance. However, to date, refinery operators have not provided sufficient incentives of this nature to persuade their workers to remain.
(e) The twin industrial safety codes applicable to refineries, the Department of Industrial Relations Process Safety Management for Petroleum Refineries regulations (8 Cal. Code Regs. 5189.1) and the California Environmental Protection Agency California Accidental Release Prevention Program 4 regulations (19 Cal. Code Regs. 5110.1 et seq.), set forth general requirements concerning management of organizational change, that, in principle, should encompass plans for refinery closure. However, those requirements have not, to date, been enforced in the context of closure. Additionally, the requirements do not directly address or require the types of measures necessary to retain workers and ensure refinery safety in the run-up to closure, and do not require direct involvement and oversight by enforcement authorities.
(f) In order to ensure worker and community safety in the run-up to a refinery closure or long-term idling, it is essential that the state develop and implement robust safety standards specifically applicable to those events.

SEC. 2.
Section 25534.07 is added to the Health and Safety Code, to read:
25534.07.
(a) By January 1, 2028, the agency shall adopt regulations that require all of the following:
(1) All refineries as defined in subdivision (c) of Section 7853 of the Labor Code, including, without limitation, all facilities subject to the California Accidental Release Prevention Program 4 regulations, shall develop safe staffing management plans, pursuant to a timeline specified by the agency, to address staffing risks associated with anticipated refinery closure or long-term idling. Each plan shall be required to include the maximum amount of reasonably feasible employee retention strategies and procedures to address risks associated with understaffing.
(2) The plans shall be updated periodically and upon announcement of refinery closure or long-term idling pursuant to subdivision (p) Section 25354 of the Public Resources Code, or other applicable law.
(3) The plans, and all updates thereto, shall be presented to the agency in draft for review and approval, and shall be subject to a public comment period of at least 30 days. The agency shall approve a plan after responding substantively in writing to all public comments received concerning it, and shall reject, and require prompt amendment to, any draft plan that does not comply with the standards defined in paragraphs (1) and (2).
(b) Following an announcement of closure or long-term idling, and periodically thereafter, the agency shall conduct inspections and investigations to ensure implementation of the refinery’s plan and shall address noncompliance through all available and necessary enforcement authority. In addition to the penalties set forth in Sections 25540 to 25541.5, inclusive, the agency shall, upon a determination of noncompliance with this section, have the authority to issue a citation to the operator of the subject refinery, that shall be in writing, describing with particularity the nature of the violation, and fixing a reasonable time for abatement of the alleged violation.
(c) The plans, draft plans, draft updates to the plans, final updates to the plans, and all comments on the draft plans by the agency shall be promptly posted on the agency’s website. Trade secret claims concerning the contents of the plans shall be addressed pursuant to the procedures and standards set forth in Section 25512.

SEC. 3.
Section 7856 of the Labor Code is amended to read:
7856.
(a) By March 31, 2014, the board shall adopt process safety management standards for refineries, chemical plants, and other manufacturing facilities, as specified in Codes 28 (Chemical and Allied Products) and 29 (Petroleum Refining and Related Industries) of the Manual of Standard Industrial Classification Codes, published by the United States Office of Management and Budget, 1987 Edition, that handle regulated substances as defined in subdivision (i) of Section 25532 of the Health and Safety Code and pose a significant likelihood of accident risk, as determined by the board. Alternatively, upon making a finding that there is a significant likelihood of risk to employees at a facility not included in Codes 28 and 29 resulting from the presence of acutely hazardous materials or explosives as identified in Part 172 (commencing with Section 172.1) of Title 49 of the Code of Federal Regulations, the board may require that these facilities be subject to the jurisdiction of the standards provided for in this section. When adopting these standards, the board shall give priority to facilities and areas of facilities where the potential is greatest for preventing severe or catastrophic accidents because of the size or nature of the process or business. The standards adopted pursuant to this section shall require that injury prevention programs of employers subject to this part and implemented pursuant to Section 6401.7 include the requirements of this part.
(b) By January 1, 2026, the division shall propose, and the board shall consider for adoption, regulations that implement this part for refineries.
(c) (1) By January 1, 2028, the division shall propose, and the board shall consider for adoption, regulations that require all of the following:
(A) All refinery employers shall develop safe staffing management plans, pursuant to a timeline specified by the division, to address staffing risks associated with anticipated refinery closure or long-term idling. Each plan shall be required to include the maximum amount of reasonably feasible employee retention strategies and procedures to address risks associated with understaffing.
(B) The plans shall be updated periodically and upon announcement of refinery closure or long-term idling pursuant to subdivision (p) of Section 25354 of the Public Resources Code or other applicable law.
(C) The plans, and all updates thereof, shall be presented to the division in draft for review and approval, and shall be subject to a public comment period of at least 30 days. The division shall approve a plan after responding substantively in writing to all public comments received concerning it, and shall reject, and require prompt amendment to, any draft plan that does not comply with the standards defined in subparagraphs (A) and (B).
(2) Following an announcement of closure or long-term idling, and periodically thereafter, the division shall conduct inspections and investigations to ensure implementation of the employer’s plan, and shall address noncompliance through all available and necessary enforcement authority, including, without limitation, citations issued pursuant to Section 6317.
(3) The plans, draft plans, draft updates to the plans, final updates to the plans, and all comments on the draft plans by the division shall be promptly posted on the division’s internet website. Trade secret claims concerning the contents of the plans shall be addressed pursuant to the procedures and standards set forth in Section 7873.

SEC. 4.
Chapter 3 (commencing with Section 7875) is added to Part 7.5 of Division 5 of the Labor Code, to read:
3.
Refinery Safe Staffing Task Force7875.
(a) There is in the state government the Refinery Safe Staffing Task Force consisting of the following members:
(1) Three representatives of unions representing proprietary employees at refineries as defined in subdivision (c) of Section 7853, one each appointed by the Governor or their appointed Department of Industrial Relations (DIR) Process Safety Management (PSM) Unit regional manager, the Speaker of the Assembly, and the Senate Committee on Rules, respectively.
(2) Three representatives of unions representing building trades whose members serve as contractors at refineries, one each appointed by the Governor or their appointed DIR PSM Unit regional manager, the Speaker of the Assembly, and the Senate Committee on Rules, respectively.
(3) Three representatives of refinery employers, one each appointed by the Governor or their appointed DIR PSM Unit regional manager, the Speaker of the Assembly, and the Senate Committee on Rules, respectively.
(4) Three representatives of nongovernmental organizations whose mission relates to the well-being of workers and refinery communities, one each appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules, respectively.
(5) Two members of the public with expertise in refinery process safety, to be appointed by the Governor or their appointed DIR PSM Unit regional manager.
(b) All members shall be appointed and begin serving on the task force no later than January 1, 2028.
(c) The members of the task force shall serve without compensation, except that they shall receive, upon appropriation of funds for this purpose, their actual and necessary expenses incurred in the performance of their duties and responsibilities, including traveling expenses.
(d) The task force shall select one of its members to be its chair.
(e) The task force shall have all of the responsibilities, powers, and duties set forth herein.
(f) The task force shall consult with, and may utilize, the staff of the DIR PSM Unit.
(g) The purpose of the task force shall be to develop potential methods and strategies for ensuring maximum employee retention at refineries, during, and especially in the time period preceding, a refinery closure or long-term idling of a refinery, and for addressing employment dislocations associated with oil, gas, and related industries.
(h) (1) No later than June 1, 2029, the task force shall present to the Legislature, and make available online to the public, a report documenting a wide range of potential methods and strategies for ensuring maximum employee retention in the time period preceding refinery closure or long-term idling of a refinery, including, without limitation, any of the following:
(A) Extended severance periods.
(B) Paid job training.
(C) Extended job placement assistance.
(D) Priority transfer to other refineries.
(E) Financial and logistical assistance.
(2) The report shall consider a wide rage of methods and strategies for ensuring safe operation in the event of understaffing, and include potential methods and strategies for transitioning oil and gas workers into sectors that match their skills and experience.
(i) This chapter shall become inoperative on July 1, 2029, and, as of January 1, 2030, is repealed.

SEC. 5.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.