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 








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            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.  








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          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
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