Air Products warns SB 804 amendments could impose millions in fees and treat all hydrogen leaks as ruptures

Ryan McCarthy, representing Air Products, told the Senate Emergency Management Committee that while the company supports establishing clear jurisdiction under the State Fire Marshal, it has two major concerns with assembly amendments to SB 804. "According to the appropriations analysis, this could range, from 2 to $3,000,000 annually," McCarthy said, warning that the bill as amended was not explicit about how implementation costs would be spread across operators.

McCarthy also raised a technical objection to language that, in his view, equates a "rupture" with any "leak," creating a statutory trigger that could require shutting down pipelines and conducting lengthy root-cause analyses even for minor, easily remedied leaks. He said industry has proposed approaches that preserve safety without imposing unnecessary system-wide shutdowns and asked for clearer definitions and engagement with the State Fire Marshal. The committee and the bill's author responded that the bill empowers the fire marshal and on-scene experts to make proportional decisions and that technical discussions would continue as the bill advances.