BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 1650
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        ASSEMBLY THIRD READING
        AB 1650 (Portantino)
        As Amended  May 25, 2012
        Majority vote 

         UTILITIES & COMMERCE             13-0               APPROPRIATIONS 
        17-0                
         
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        |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           |
        |-----+--------------------------+-----+--------------------------|
        |     |                          |     |                          |
        |     |                          |     |                          |
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         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  :   






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        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 






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        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 


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