BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  SB 1000|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 1000
          Author:   Yee (D)
          Amended:  5/23/12
          Vote:     21

           
           SENATE ENERGY, UTIL. & COMMUNIC. COMM.  : 7-4, 4/17/12
          AYES:  Padilla, Corbett, De León, DeSaulnier, Kehoe, 
            Pavley, Simitian
          NOES:  Fuller, Emmerson, Rubio, Strickland
          NO VOTE RECORDED:  Berryhill, Wright

           SENATE JUDICIARY COMMITTEE  :  4-1, 4/24/12
          AYES:  Evans, Blakeslee, Corbett, Leno
          NOES:  Harman

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 5/14/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton


           SUBJECT  :    Public Utilities Commission:  records

           SOURCE  :     Author


           DIGEST  :    This bill requires Public Utilities Commission 
          (PUC) investigation orders, recommendations, and accident 
          reports to be made publicly available pursuant to the 
          California Public Records Act.  

           Senate Floor Amendments  of 5/23/12 reinstate current law 
          related to penalties for disclosure of records deemed 
                                                           CONTINUED





                                                               SB 1000
                                                                Page 
          2

          confidential by the PUC.

           ANALYSIS  :    

          Existing law:

          1. Requires that the records of every state agency be made 
             available for public inspection upon request, with 
             certain exceptions and subject to procedures.  This law 
             is commonly referred to as the California Public Records 
             Act (CPRA).

          2. Requires public utilities to furnish to the PUC, as 
             requested, copies of any or all maps, profiles, 
             contracts, agreements, franchises, reports, books, 
             accounts, papers, and records in its possession or in 
             any way relating to its property or affecting its 
             business, and also a complete inventory of all its 
             property in such form as the commission may direct as 
             necessary it to carry out its regulatory duties. 

          3. Establishes a presumption against public disclosure of 
             any information submitted to the PUC by a public utility 
             unless it orders the information to be made public.  Any 
             official or employee of the commission who releases 
             confidential information not ordered for release is 
             guilty of a misdemeanor. 

          4. Requires the PUC to establish written guidelines for 
             accessibility of records and post them in a conspicuous 
             public place.

          This bill requires the PUC investigation orders, 
          recommendations, and accident reports to be made publicly 
          available pursuant to the CPRA.  With respect to public 
          utility information furnished to the PUC, this bill:

           Requires the PUC to create a list of safety-related 
            reports that the PUC will automatically disclose to the 
            public.

           Requires the PUC to create and maintain on the PUC's 
            Internet Web site information, as specified.








                                                               SB 1000
                                                                Page 
          3

           Requires the PUC to comply with the exemption 
            requirements of the CPRA.

           Requires the PUC to revise its guidelines, resolutions, 
            and general orders for the disclosure of public records.

           Requires the PUC, prior to disclosing any record, to 
            determine whether any exemptions to the CPRA or other law 
            restricting disclosure apply to that record.

           Background
           
          Unlike other state agencies, the PUC operates under a 
          statute (Public Utilities Code Section 583) which in 
          practice makes public access to much of the information in 
          its proceedings the exception, rather than the rule without 
          positive action by the commission to make those documents 
          public.  

          According to prior analyses on this issue, the statute has 
          its origins in a law enacted in 1951.  Notwithstanding the 
          subsequent "open government" reforms in California, the 
          CPRA, the statutory standard for public access to utility 
          filings held by the PUC, has not fundamentally changed 
          since 1951.

          The CPRA gives every person the right to inspect and obtain 
          copies of all state and local government documents not 
          exempt from disclosure.  Exemptions include corporate 
          financial records and corporate proprietary information, 
          including trade secrets.  The CPRA also specifically 
          provides that information held by the PUC which is deemed 
          confidential under Public Utilities Code Section 583 is not 
          required to be disclosed.  

           PUC Records Access  .  On its own accord, the PUC issued a 
          proposal last month that would improve and streamline the 
          process for the public to access documents received or 
          generated by the PUC.  The PUC's current policies for 
          public access to records are included in its General Order 
          66-C which was adopted in 1974, and amended in 1982.  
          Consequently, the 30-year old policies are long overdue for 
          reform.  By its own admission the PUC's regulations for 
          public access to records are "outdated and cumbersome, and 







                                                               SB 1000
                                                                Page 
          4

          often delay rather than facilitate access to records 
          requested under the California Public Records Act."

          The PUC has released a draft resolution to revise its 
          policies which would be reflected in a new General Order 
          66-D.  The draft is out for public comment.  The schedule 
          for formal adoption by the PUC is unknown at this time.  
          The Draft Resolution is a significant departure for the PUC 
          which has generally started from the standpoint that 
          everything they do is confidential and the public and press 
          has had an uphill battle in gaining access to the records.  
          The PUC has reviewed outdated rules that impede the PUC's 
          ability to share documents with the public it serves, and 
          the new policy is intended to allow the PUC to provide the 
          public with more immediate access to documents.  In 
          addition, by updating the PUC's regulations governing 
          public access to PUC records; establishing procedures for 
          more uniform processing of records requests and requests 
          for confidential treatment of documents provided to the 
          PUC; and improving access to records on the PUC's Web site, 
          the PUC could substantially streamline public access to 
          records and information.  

          The Draft Resolution does emphasize three areas for which 
          confidentiality should be retained related to "privacy of 
          individual residents, short-term market sensitivity, and 
          critical infrastructure."

           Related/Prior legislation
           
          AB 1541 (Dickinson), among other things, requires PUC 
          accident investigation orders or recommendations and all 
          information furnished to the PUC, unless exempt as 
          specified, to be subject to public disclosure under the 
          CPRA.  AB 1541 is currently in the Assembly Governmental 
          Organization Committee.
           
           SB 1488 (Bowen), Chapter 690, Statues of 2004, requires the 
          PUC to initiate a proceeding to review its public 
          disclosure practices.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No








                                                               SB 1000
                                                                Page 
          5

          According to the Senate Appropriations Committee, possible 
          one-time costs of $75,000 from the PUC's Utilities 
          Reimbursement Account (special fund) in FY 2013-14 to 
          conduct a proceeding to update the PUC's Rules of Practice 
          and Procedure.

           SUPPORT  :   (Verified  5/24/12)

          AARP
          Agricultural Energy Consumers Association
          California Newspaper Publishers Association
          California Public Utilities Commission, with technical 
          amendments
          California Teamsters Public Affairs Council
          City of Belmont
          Consumer Federation of California
          South San Joaquin Irrigation District
          The Utility Reform Network
          Utility Workers Union of America, Local 132

           OPPOSITION  :    (Verified  5/24/12)

          AT&T (unless amended)
          California Communications Association (unless amended)
          California State Association of Electrical Workers (unless 
          amended)
          Coalition of California Utility Employees (unless amended)
          Frontier Communications (unless amended)
          PacifiCorp (unless amended)
          San Diego Gas & Electric 
          Sempra Energy Utilities
          Southern California Edison
          Southern California Gas Company

           ARGUMENTS IN SUPPORT  :    The California Newspapers 
          Publishers Association, a supporter of this bill, writes:

            Existing law provides a prolonged process that makes it 
            difficult, if not impossible, to obtain accident 
            information, safety reports and inspection records from 
            the CPUC.  Unlike a request made under the CPRA 
            ÝCalifornia Public Records Act], before the commission 
            can release any information (which is automatically 
            sealed) it must first adopt a formal resolution 







                                                               SB 1000
                                                                Page 
          6

            allowing disclosure after a lengthy process.

            The current process deprives the public and journalists 
            of timely, much-needed information about the threatened 
            safety of communities where recent deadly pipe 
            explosions have killed residents in neighborhoods like 
            San Bruno and Rancho Cordova.  Without access to this 
            information, people that live in these communities have 
            no means to identify the risks that may still exist and 
            no way of evaluating whether a decision to remain is 
            life threatening.

           ARGUMENTS IN OPPOSITION  :    Southern California Edison 
          opposes this bill unless amended, and writes, "SCE 
          appreciates the significant work done to date by Senator 
          Yee and his staff to modify and clarify terms of SB 1000, 
          but changes to Public Utilities Code §315 proposed in the 
          April 18 version of the bill raise the specter of public 
          release of incorrect and incomplete information.  Utility 
          reports filed pursuant to this code section are necessarily 
          preliminary in nature, and therefore may contain 
          information that later investigation and analysis proves 
          incorrect or incomplete.  It is understandable that the 
          CPUC would need a prompt initial report on significant 
          incidents so that they can appropriately engage their own 
          investigatory resources.  However, public release of these 
          documents increases the risk of media reports and liability 
          claims based on incorrect or incomplete information, which 
          could undermine existing policy for full and candid 
          dialogue between a utility and the CPUC at a critical, 
          early stage of a serious incident."  
           

          RM:do  5/24/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****