BILL ANALYSIS Ó SB 1409 Page A SENATE THIRD READING SB 1409 (Hill) As Amended August 21, 2014 Majority vote SENATE VOTE :36-0 UTILITIES & COMMERCE 14-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Bradford, Patterson, |Ayes:|Gatto, Bigelow, | | |Bonilla, Buchanan, | |Bocanegra, Bradford, Ian | | |Chávez, Dahle, Fong, Beth | |Calderon, Campos, | | |Gaines, Garcia, | |Donnelly, Eggman, Gomez, | | |Roger Hernández, Jones, | |Holden, Jones, Linder, | | |Mullin, Quirk, Rendon | |Pan, Quirk, | | | | |Ridley-Thomas, Wagner, | | | | |Lowenthal | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Requires the California Public Utilities Commission (PUC) to publish an annual report that includes descriptions of investigations into gas or electric safety incidents reported by any gas or electric corporations, and requires the PUC to publish in its annual workplan a summary of these investigations, including those that remain open, along with a link to an Internet Web site containing the annual safety investigation report. Specifically this bill : 1)Directs the PUC to publish its annual safety investigation report beginning February 1, 2016, and requires the report to: a) Succinctly describe each safety investigation concluded during the prior calendar year, along with each investigation that remains open. b) Include the month of the incident, the reason for the investigation, the facility type involved, and the owner of the facility. 2)Requires the PUC, in its annual work plan, to include: a) A summary of staff safety investigations concluded SB 1409 Page B during the prior calendar year. b) Staff safety investigations that remain open for any gas corporation or electrical corporation. c) A link to the Internet Web site containing the annual gas and electric safety report. FISCAL EFFECT : According to the Assembly Appropriations Committee, minor, if any, additional state costs. COMMENTS : 1)Author's statement: "An annual reporting requirement will raise the profile of accident investigations with CPUC management and the public and will be consistent with the CPUC's focus on transparency in safety matters." 2)PUC safety investigations. Safety investigations serve various purposes. They a) help utilities, PUC staff, and the public learn from accidents and prevent future accidents; b) serve as a prerequisite for PUC enforcement actions; and c) guide decisions related to whether claims against utilities are an expense recoverable in future rates. The PUC has issued several orders related to safety investigations, but even with these rules in place, information surrounding safety investigations is not always available. According to the PUC's 2009 (and regrettably, most recent) Electric, Natural Gas, and Propane Safety Report, the PUC received 82 reports related to natural gas incidents and 93 related to electric incidents in 2009.<1> A typical timetable for investigations is not outlined, thus it is unclear whether incidents occurring in 2009 have been fully investigated. Furthermore, the number of incidents occurring since 2009 is unknown. Safety investigations are initially conducted by PUC staff, and if deemed necessary, the commission may open a formal proceeding (an order instituting investigation - OII) to further investigate the incident. OIIs are outlined in the PUC's annual workplan, but the open staff safety -------------------------- <1> http://www.cpuc.ca.gov/NR/rdonlyres/BDDBF3F2-8BE0-4C70-8D25-7987A CF3E7CD/0/2009USRBANNUALREPORT.pdf SB 1409 Page C investigations are not. This bill seeks to require inclusion and descriptions of open PUC staff safety investigations in the annual workplan. 3)PUC rulemaking on safety enforcement. As per SB 291 (Hill), Chapter 601, Statutes of 2013, the PUC has opened a proceeding to implement an electric safety enforcement program by January 1, 2015, and a gas safety enforcement program by July 1, 2014.<2> Analysis Prepared by : Brandon Gaytan / U. & C. / (916) 319-2083 FN: 0005216 --------------------------- <2> http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M091/K638/91 638006.PDF