AB 853, as amended, Roger Hernández. Electrical 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. If the commission finds after a hearing that the rules, practices, equipment, appliances, facilities, or service of any public utility, or of the methods 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 wouldbegin insert, on and after the filing of an electrical corporation’s or gas corporation’s general rate case application,end insert requirebegin delete anend deletebegin insert thatend insert electrical corporation or gas corporationbegin insert, except as provided,end insert to utilizebegin delete direct employees, as defined,end deletebegin insert
employees of that corporationend insert 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 request to employ persons that are notbegin delete directend delete employees with the commissionbegin delete an application inend deletebegin insert as a part ofend insert the utility’s general ratebegin delete case.end deletebegin insert case application.end insert The bill would require that the request be a separate stand-alone section that is not embedded in the general requested
staffing change proposals. The bill would require the utility to demonstrate 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 notbegin delete directend delete employees. The bill would require the commission to evaluate the utility’s proposal to utilize persons that are notbegin delete directend delete employees. The bill would require the commission to issue a written decision, as part of the general rate case proceeding, determining whether the electrical corporation or gas corporation may utilize persons that are notbegin delete directend delete 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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
begin insertThe Legislature finds and declares all of the
2following:end insert
3(a) Protecting the security of nuclear, electrical, and natural
4gas utility systems is a paramount state interest.
5(b) Protecting the privacy of ratepayers’ personal information,
6including usage information, is a
paramount state interest.
7(c) Recent intrusions into major corporate computer systems,
8including Sony and Anthem Blue Cross, and the theft of information
9from those systems have demonstrated the vulnerability of those
10systems.
11(d) The computer systems of California’s electrical corporations
12and gas corporations have information about the design,
13engineering, and operation of the nuclear, electrical, and natural
14gas utility infrastructure, as well as personal information about
15California ratepayers. This information could be used to
16compromise the security of California’s utility infrastructure and
17the privacy of California’s ratepayers.
18(e) Widespread deployment of smart meters, smart grid
19equipment, and microgrids increases the importance of protecting
20the computer systems of electrical corporations and gas
21
corporations.
22(f) The part of any computer system that is most vulnerable to
23being compromised is the personnel who operate that system.
24(g) Electrical corporations and gas corporations should make
25every reasonable effort to protect their computer systems from
26unauthorized intrusions.
27(h) To protect the security of electrical and natural gas utility
28computer systems, including nuclear infrastructure, the information
29technology personnel who operate those systems should be
30employees of the electrical corporation or gas corporation.
31(i) To protect the security of nuclear, electrical, and gas utility
32infrastructure, the design, engineering, and operation of that
33infrastructure should, to the extent feasible, be performed by
34employees of the electrical
corporation or gas corporation.
Section 764 is added to the Public Utilities Code, to
37read:
(a) begin deleteThe Legislature finds and declares all of the following: end delete
2begin insertAn electrical corporation or gas corporation shall utilizeend insertbegin insert employeesend insert
3begin insert of the electrical corporation or gas corporation for any work
4associated with the design, engineering, and operation of its
5nuclear, electrical, and gas infrastructure, including all computer
6and information technology systems, unless the utility complies
7with the requirements of this section and obtains the
approval of
8the commission pursuant to this section.end insert
9(1) Protecting the security of nuclear, electrical, and natural gas
10utility systems is a paramount state interest.
11(2) Protecting the privacy of ratepayers’ personal information,
12including usage information, is a paramount state interest.
13(3) Recent intrusions into major corporate computer systems,
14including Sony and Anthem Blue Cross, and the theft of
15information from those systems have demonstrated the
16vulnerability of those systems.
17(4) The computer systems of California’s electrical corporations
18and gas corporations have information about the design,
19engineering, and operation of the nuclear, electrical, and natural
20gas utility infrastructure, as well as personal information about
21California ratepayers. This information could be used to
22compromise the security of California’s utility infrastructure and
23the privacy of California’s ratepayers.
24(5) Widespread deployment of smart meters, smart grid
25equipment, and microgrids increases the importance of protecting
26the computer systems of electrical corporations and gas
27corporations.
28(6) The part of any computer system that is most vulnerable to
29being compromised is the personnel who operate that system.
30(7) Electrical corporations and gas corporations should make
31every reasonable effort to protect their computer systems from
32unauthorized intrusions.
33(8) To protect the security of electrical and natural gas utility
34computer systems, including nuclear infrastructure, the information
35technology personnel who operate those systems should be direct
36employees of the electrical corporation or gas corporation.
37(9) To protect the security of nuclear, electrical, and gas utility
38infrastructure, the design, engineering, and operation of that
39infrastructure should, to the extent feasible, be performed by direct
40employees of the
electrical corporation or gas corporation.
P5 1(b) For purposes of this section, “direct employees” for
2construction
or maintenance work include the employees of a
3contractor or subcontractor licensed in California and working
4under the direct supervision of the electrical corporation or gas
5corporation.
6(c) An electrical corporation or gas corporation shall utilize
7direct employees for any work associated with the design,
8engineering, and operation of its nuclear, electrical, and gas
9infrastructure, including all computer
and information technology
10systems, unless the utility complies with the requirements of this
11section and obtains the approval of the commission pursuant to
12this section.
13(d)
end delete
14begin insert(b)end insert Before utilizing persons that are notbegin delete directend delete employeesbegin insert of the
15electrical corporation or gas corporationend insert for work associated with
16the design, engineering, and operation of its nuclear, electrical,
17and gas infrastructure, including all computer and information
18 technology systems, an electrical
corporation or gas corporation
19shall file a request to employ persons that are notbegin delete directend delete employees
20with the commission, as part of the utility’s general rate case
21application. The request shall be a separate stand-alone section
22that is not embedded in the general requested staffing change
23proposals. The utility shall demonstrate that the work can be
24performed safely and securely, and without jeopardizing the
25security of its nuclear, electrical, and gas infrastructure.
26(e)
end delete
27begin insert(c)end insert The commission shall evaluate
the utility’s proposal to utilize
28persons that are notbegin delete directend delete employeesbegin insert of the electrical corporation
29or gas corporationend insert for work associated with the design,
30engineering, and operation of its nuclear, electrical, and gas
31infrastructure, including all computer and information technology
32systems.
33(f)
end delete
34begin insert(d)end insert The commission shall issue a written decision as part of the
35general rate case proceeding determining whether the electrical
36corporation
or gas corporation may utilize persons that are not
37begin delete directend delete employeesbegin insert of the electrical or gas corporationend insert for the
38described work.
39(g)
end delete
P6 1begin insert(e)end insert A person or corporation owning or operating a qualifying
2facility pursuant to federal law or a facility that is an exempt
3wholesale generator is not an electrical corporation due to the
4ownership or operation of that facility. This subdivision is
5declaratory of existing law.
6(f) The requirements of this section are applicable only to
7electrical corporations or gas corporations that file general rate
8cases with the commission.
9(g) (1) This section does not apply to an electrical corporation
10or gas corporation contracting out construction, alteration,
11demolition, installation, maintenance, or repair work on its
12nuclear, electrical, or gas infrastructure.
13(2) This section does not apply to the design and engineering
14of standard equipment purchased from an outside vendor.
15(3) For each electrical or gas corporation, this section shall
16become effective for that corporation upon the filing, on or after
17January 1, 2016, of that corporation’s general rate case
18application.
No reimbursement is required by this act pursuant to
21Section 6 of Article XIII B of the California Constitution because
22the only costs that may be incurred by a local agency or school
23district will be incurred because this act creates a new crime or
24infraction, eliminates a crime or infraction, or changes the penalty
25for a crime or infraction, within the meaning of Section 17556 of
26the Government Code, or changes the definition of a crime within
27the meaning of Section 6 of Article XIII B of the California
28Constitution.
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