BILL ANALYSIS Ó AB 1650 Page 1 ASSEMBLY THIRD READING AB 1650 (Portantino) As Amended May 25, 2012 Majority vote UTILITIES & COMMERCE 13-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Bradford, Buchanan, Fong, |Ayes:|Fuentes, Harkey, | | |Furutani, Gorell, Roger | |Blumenfield, Bradford, | | |Hernández, Huffman, | |Charles Calderon, Campos, | | |Knight, Ma, Nestande, | |Davis, Donnelly, Gatto, | | |Skinner, Swanson, Valadao | |Ammiano, Hill, Lara, | | | | |Mitchell, Nielsen, Norby, | | | | |Solorio, Wagner | |-----+--------------------------+-----+--------------------------| | | | | | | | | | | ----------------------------------------------------------------- SUMMARY : Requires the California Public Utilities Commission (PUC) to establish standards for disaster and emergency preparedness plans within an existing procedure. 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 : AB 1650 Page 2 1)The PUC would incur first-year special fund costs of $250,000-for a full-time utility engineer and a half-time administrative law judge to develop standards and to conduct a rulemaking in order to revise the commission's General Order 166 regarding electrical corporations' emergency plans-and ongoing costs of about $110,000 for the utility engineer to review emergency plans, update standards, meet with utility staff and local officials, and attend public meetings required by the bill. ÝPublic Utilities Reimbursement Account] 2)Minor reimbursable costs for each city and county within the service territories of the electrical corporations to designate a point of contact with the electrical corporation, who would presumably meet with the corporation and provide comments on any draft emergency plan. COMMENTS : 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 infrastructure needs. There was an inappropriate lack of communication about an unprecedented wind storm and its resultant damage." Background : 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 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." 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 AB 1650 Page 3 a major outage, therefore the emergency response plans were not required to be deployed. Windstorm outages : 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). PUC does not currently require emergency response plans for regulated water utilities. Analysis Prepared by : Susan Kateley / U. & C. / (916) 319-2083 FN: 0003946