BILL ANALYSIS Ó
AB 838
Page 1
ASSEMBLY THIRD READING
AB 838 (Hill)
As Amended January 4, 2012
Majority vote
UTILITIES & COMMERCE 11-3
APPROPRIATIONS 12-5
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|Ayes:|Bradford, Fletcher, |Ayes:|Fuentes, Blumenfield, |
| |Buchanan, Fong, Fuentes, | |Bradford, Charles |
| |Perea, Wieckowski, Ma, | |Calderon, Campos, |
| |Nestande, Skinner, | |Chesbro, Gatto, Hall, |
| |Swanson | |Hill, Ammiano, Mitchell, |
| | | |Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Beth Gaines, Knight, |Nays:|Harkey, Donnelly, |
| |Valadao | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Creates an Assistant Director of Public Safety at the
California Public Utilities Commission (PUC). This individual
would be in charge of coordinating safety information across
PUC's many divisions to make sure that safety is a consideration
in all PUC decisions, including ratemaking.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, estimated annual special fund cost of $160,000 for
the newly-established assistant director position. ÝPublic
Utilities Reimbursement Account]
COMMENTS : According to the author, "as safety is the first
priority of PUC, the agency needs an executive-level
administrator for whom safety is the focus. This bill creates
an Assistant Executive Director for Public Safety who will
bridge the silos between divisions so that staff throughout the
organization can integrate safety considerations into the
everyday business of PUC. This individual would also span the
current chasm between the Pipeline and Hazardous Materials
Safety Administration (PHMSA) and PUC to ensure that state and
federal efforts build on each other and are not duplicative."
AB 838
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Background : The mission statement of PUC states that it serves
the public interest by
protecting consumers and ensuring the provision of safe,
reliable utility service and infrastructure at reasonable rates.
Recent natural gas pipeline accidents in California have
received attention throughout the county. In particular, the
San Bruno explosion in September 2010 was most visible as it
claimed eight lives, left many injured, and destroyed dozens of
homes. In 2011, there was an explosion of a Cupertino
condominium and a seven-hour fire in a Roseville intersection
both caused by types of plastic pipes previously identified to
be at risk of failure. These incidents have uncovered major
flaws in the manner California regulates natural gas utilities.
The report from the National Transportation Safety Board's
(NTSB) investigation of the San Bruno explosion cited there was
poor communication between the PUC and the federal pipeline
safety regulator, PHMSA. Additionally, the Independent Review
Panel (IRP) formed by PUC in response to the San Bruno explosion
pointed to deficiencies in PUC's oversight as contributing to
the ineffective safety programs at Pacific Gas and Electric
Company. IRP called for better coordination between the various
divisions within PUC, stating that "the silos between the
various disciplines must be dismantled." For instance, IRP
report called for the safety staff to take a more proactive role
in rate cases.
Safety first : This bill creates an executive level
administrator at PUC whose primary focus is safety. Currently
PUC is lacking a top level administrator who would be
responsible for integrating safety considerations into all of
the proceedings held by PUC. It is equally important for this
administrator to advise each commissioner and division director
on all matters that may impact public safety.
This position should not remove the responsibility from the five
voting PUC Commissioners appointed by the Governor to ultimately
serve the public interest by protecting consumers and ensuring
provision of safe, reliable utility service and infrastructure
at reasonable rates.
AB 838
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Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
FN: 0003057