BILL ANALYSIS Ó AB 1650 Page 1 Date of Hearing: April 9, 2012 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Steven Bradford, Chair AB 1650 (Portantino) - As Amended: April 9, 2012 SUMMARY : This bill would require the Public Utilities Commission (PUC) to establish standards for disaster and emergency preparedness plans. Specifically, this bill : 1)Requires regulated electric and gas utilities to develop, adopt, and update an emergency and disaster preparedness plan every two years. 2)Requires regulated electric and gas utilities to meet with cities and counties in their service areas when updating utility emergency and disaster preparedness plan. 3)Requires utilities to preposition personnel in advance of anticipated severe weather. EXISTING LAW 1)Provides the PUC authority to establish regulations and practices that fix adequate standards for, among other things, quality, for all electrical, gas, water, heat, railroad, and cable television corporations. 2)Requires gas utilities to prepare emergency response and disaster preparedness plans. FISCAL EFFECT : Unknown COMMENTS : 1)According to the author, "current law does not require electric utilities to prepare emergency preparedness plans and to meet with local counties or cities to discuss plans for emergencies. In December of last year there was a wind disaster that caused major damage throughout the San Gabriel Valley. This damage included the loss of electricity to tens of thousands of utility customers, many for well over a week in duration. Utility customers and local governments were largely kept uninformed as to the status of the power outage and were thus unable to plan for alternate housing or local AB 1650 Page 2 infrastructure needs. There was an inappropriate lack of communication about an unprecedented wind storm and its resultant damage." 2)The PUC currently enforces General Order 166 requiring electric utilities to annually file updated emergency response plans, including notifying state and local governments of its annual emergency response exercise. The author may wish to consider leaving the current annual updates in place. 3)The General Order defines that a Major Outage "occurs when 10 percent of the electric utility's serviceable customers experience a simultaneous, non-momentary interruption of service. For utilities with less than 150,000 customers within California, a major outage occurs when 50 percent of the electric utility's serviceable customers experience a simultaneous, non-momentary interruption of service." 4)General Order 166 does require training and planning for deployment of personnel in anticipation of an event that may result in a major outage, however it does not currently require deployment in the event of anticipated severe weather. In mathematical terms, the Southern California windstorm outage did not meet the definition of a major outage, therefore the emergency response plans were not required to be deployed. 5)Although there were no serious adverse consequences, in both this Southern California windstorm outage and the widespread outage that occurred in the Pacific Southwest region in September 2011, drinking water supplies were impaired due to lack of electricity at pumping stations. In San Diego, California, bottled water supplies were distributed as a public health safeguard due to a sewage spill in the vicinity of drinking water suppliers (the water supply was later tested and found to be safe). The PUC does not currently require emergency response plans for regulated water utilities. The author may wish to consider adding a requirement that water companies regulated by the PUC, also file emergency response plans. 6)Current law requires gas corporations to develop emergency response plans. The author may wish to consider removing gas corporations from AB 1650 to remove redundancy with current law. AB 1650 Page 3 7)This bill proposes consulting with appropriate city and county representatives. The author may which to consider specifying local fire chiefs as the appropriate emergency response representatives to clearly require emergency response planning with the community incident responders. In addition, the author may wish to consider requiring that utilities provide a written comment period for fire chiefs to provide comments on draft emergency plans . 8)The bill proposes a publicly noticed meeting to provide an opportunity to participate in the emergency response planning. Such a meeting could inadvertently create security risks in that the emergency response plans could become publicly available to persons or entities that wish to do harm. The author may wish to consider removing requirements for publicly noticed meetings to review emergency response plans. 9)Summary of Proposed Committee Amendments a) Remove references to gas utilities b) Designate fire chiefs as the point of contact for utilities to consult with on emergency response plans and provide fire chiefs an opportunity to provide comment on draft plans c) Remove public meetings and review of draft emergency response plans d) Require emergency response plans for regulated water utilities REGISTERED SUPPORT / OPPOSITION : Support California Public Utilities Commission (CPUC) (if amended) Opposition None on file. Analysis Prepared by : Susan Kateley / U. & C. / (916) 319-2083 AB 1650 Page 4