BILL NUMBER: AB 853 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 24, 2015
INTRODUCED BY Assembly Member Roger Hernández
FEBRUARY 26, 2015
An act to amend Section 1002.3 of add
Section 764 to the Public Utilities Code, relating to
electricity. energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 853, as amended, Roger Hernández. Electrical
transmission: certificates of public convenience and necessity.
and gas corporations: security of plant and
facilities.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations , as defined. The Public
Utilities Act prohibits any electrical corporation from beginning the
construction of, among other things, a line, plant, or system, or of
any extension thereof, without having first obtained from the
commission a certificate that the present or future public
convenience and necessity require or will require that construction
(certificate of public convenience and necessity). Existing law
requires the commission, in considering an application for a
certificate of public convenience and necessity for an electric
transmission facility, to consider cost-effective alternatives to
transmission facilities that meet the need for an efficient,
reliable, and affordable supply of electricity, including demand-side
alternatives such as targeted energy efficiency, ultraclean
distributed generation, as defined, and other demand reduction
resources. If the commission finds after a
hearing that the rules, practices, equipment, appliances, facilities,
or service of any public utility, or of the method s of
manufacture, distribution, transmission, storage, or supply employed
by the public utility, are unjust, unreasonable, unsafe, improper,
inadequate, or insufficient, the Public Utilities Act requires that
the commission determine and, by order or rule, fix the rules,
practices, equipment, appliances, facilities, service, or methods to
be observed, furnished, constructed, enforced, or employed.
The Public Utilities Act requires the commission to prescribe
rules for the performance of any service or the furnishing
of any commodity of the character furnished or supplied by any
public utility and, on proper demand and tender of rates, require the
public utility to furnish the commodity or render the service within
the time and upon the conditions provided in the rules adopted by
the commission.
This bill would, to the extent feasible, require an electrical
corporation or gas corporation to utilize direct employees, as
defined, for any work associated with the design, engineering, and
operation of its nuclear, electrical, and gas infrastructure,
including all computer and information technology systems, unless the
utility files a Tier 3 advice letter with the commission that
demonstrates that the work can be performed safely and securely, and
without jeopardizing the security of its nuclear, electrical, and gas
infrastructure by persons that are not direct employees. The bill
would require the commission to open a proceeding, or expand the
scope of an existing proceeding, to evaluate the advice letter and to
hold not less than one duly noticed public hearing for the
proceeding. The bill would require the commission to issue a written
decision determining whether the electrical corporation or gas
corporation may utilize persons that are not direct employees for the
described work.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would include demand response as being amongst the
demand-side alternatives that the commission is to consider.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 764 is added to the
Public Utilities Code , to read:
764. (a) The Legislature finds and declares all of the following:
(1) Protecting the security of nuclear, electrical, and natural
gas utility systems is a paramount state interest.
(2) Protecting the privacy of ratepayers' personal information,
including usage information, is a paramount state interest.
(3) Recent intrusions into major corporate computer systems,
including Sony and Anthem Blue Cross, and the theft of information
from those systems have demonstrated the vulnerability of those
systems.
(4) The computer systems of California's electrical corporations
and gas corporations have information about the design, engineering,
and operation of the nuclear, electrical, and natural gas utility
infrastructure, as well as personal information about California
ratepayers. This information could be used to compromise the security
of California's utility infrastructure and the privacy of California'
s ratepayers.
(5) Widespread deployment of smart meters, smart grid equipment,
and microgrids increases the importance of protecting the computer
systems of electrical corporations and gas corporations.
(6) The part of any computer system that is most vulnerable to
being compromised is the personnel who operate that system.
(7) Electrical corporations and gas corporations should make every
reasonable effort to protect their computer systems from
unauthorized intrusions.
(8) To protect the security of electrical and natural gas utility
computer systems, including nuclear infrastructure, the information
technology personnel who operate those systems should be direct
employees of the electrical corporation or gas corporation.
(9) To protect the security of nuclear, electrical, and gas
utility infrastructure, the design, engineering, and operation of
that infrastructure should, to the extent feasible, be performed by
direct employees of the electrical corporation or gas corporation.
(b) For purposes of this section, "direct employees" for
construction or maintenance work include the employees of a
contractor or subcontractor licensed in California and working under
the direct supervision of the electrical corporation or gas
corporation.
(c) To the extent feasible, an electrical corporation or gas
corporation shall utilize direct employees for any work associated
with the design, engineering, and operation of its nuclear,
electrical, and gas infrastructure, including all computer and
information technology systems, unless the utility complies with the
requirements of this section and obtains the approval of the
commission pursuant to this section.
(d) Before utilizing persons that are not direct employees for
work associated with the design, engineering, and operation of its
nuclear, electrical, and gas infrastructure, including all computer
and information technology systems, an electrical corporation or gas
corporation shall file a Tier 3 advice letter with the commission
that demonstrates that the work can be performed safely and securely,
and without jeopardizing the security of its nuclear, electrical,
and gas infrastructure.
(e) The commission shall open a proceeding, or expand the scope of
an existing proceeding, to evaluate the advice letter. The
commission shall hold not less than one duly noticed public hearing
for the proceeding. The commission shall issue a written decision
determining whether the electrical corporation or gas corporation may
utilize persons that are not direct employees for the described
work.
SEC. 2. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 1002.3 of the Public
Utilities Code is amended to read:
1002.3. In considering an application for a certificate for an
electric transmission facility pursuant to Section 1001, the
commission shall consider cost-effective alternatives to transmission
facilities that meet the need for an efficient, reliable, and
affordable supply of electricity, including, but not limited to,
demand-side alternatives such as targeted energy efficiency, demand
response, ultraclean distributed generation, as defined in Section
353.2, and other demand reduction resources.