Amended in Assembly June 24, 2015

Amended in Senate April 9, 2015

Senate Bill No. 697

Introduced by Senator Hertzberg

February 27, 2015

An act to amend begin delete Section 5387 of, end delete begin insert Sections 280.5, 309.7, 321.6, 421, 747, 765, 958.5, 960, 5387, 7661, and 7712 of, to amend and renumber Sections 322, 747.6, 748, 915, 5006, 5012, and 7711 of, to amend, renumber, and add Sections 910 and 911 of, to add Sections 913 and 914 end insert begin insert to, end insert and to repeal Section 5385.5 of, the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL’S DIGEST

SB 697, as amended, Hertzberg. begin delete Charter-party end delete begin insert Public Utilities Commission: reports: civil penalties: charter-party end insert carriers of passengers.

begin insert

The California Constitution establishes the Public Utilities Commission and authorizes the commission to exercise ratemaking and rulemaking authority over all public utilities, as defined, subject to control by the Legislature. Existing law requires the commission to report various information to the Legislature.

end insert begin insert

This bill would recast certain of the commission’s reporting requirements to an article within the Public Utilities Act pertaining to reports by the commission to the Legislature and make other conforming changes.

end insert

The Passenger Charter-party Carriers’ Act places charter-party carriers of passengers, as defined, under the jurisdiction of the Public Utilities Commission. Under existing law, no charter party carrier of passengers may operate a motor vehicle on a public highway unless there is displayed on the vehicle a distinctive identifying symbol, in the form prescribed by the commission, showing the classification to which the carrier belongs. For motor vehicles designed to carry not more than 8 passengers, the commission is required to issue a suitable decal with an identifying symbol and of a specified size for that purpose.

This bill would repeal that provision requiring the issuance of the decal.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 280.5 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

280.5.  

(a) Of the revenues from fees collected pursuant to
Section 14666.8 of the Government Code after the operative date
of this section, except for revenues from fees from a lease
agreement for access to Department of Transportation property or
a lease agreement existing prior to the operative date of the section,
15 percent shall be available, upon appropriation by the Legislature,
for the purpose of addressing the state’s digital divide.

(b) Revenues described in subdivision (a) shall be deposited in
the Digital Divide Account, which is hereby established in the
California Teleconnect Fund Administrative Committee Fund
established pursuant to Section 270, to be used only for digital
divide pilot projects. Not more than 5 percent of the revenues
described in subdivision (a) may be used to pay the costs incurred
in connection with the administration of digital divide pilot projects
by the commission.

(c) (1) The Digital Divide Grant Program is hereby established
subject to the availability of funding pursuant to this section. The
commission may not implement the grant program until the
commission projects that at least five hundred thousand dollars
($500,000) will be available in the Digital Divide Account during
the calendar year following implementation, based on money
collected pursuant to Section 14666.8 of the Government Code.

(2) The commission shall provide grants pursuant to this
subdivision on a competitive basis subject to criteria to be
established by the commission and in a way that disburses the
funds widely, including urban and rural areas. Grants shall be
awarded to community-based nonprofit organizations that are
exempt from taxation under Section 501(c)(3) of the Internal
Revenue Code for the purpose of funding community technology
programs.

(3) Recipients of grants pursuant to this subdivision shall report
to the commission annually on the effectiveness of the grant
program.

begin delete

(4) The commission shall report to the Legislature and the
Governor annually on the effectiveness of the program
administered pursuant to this subdivision.

end delete

(d) For purposes of this section, “community technology
programs” means a program that is engaged in diffusing technology
in local communities and training local communities in the use of
technology, especially local communities that otherwise would
have no access or limited access to the Internet and other
technologies.

(e) For purposes of this section, “digital divide projects” means
community technology programs involved in activities that include,
but are not limited to, the following:

(1) Providing open access to and opportunities for training in
technology.

(2) Developing content relevant to the interests and wants of
the local community.

(3) Preparing youth for opportunities in the new economy
through multimedia training and skills.

(4) Harnessing technology for e-government services.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 309.7 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

309.7.  

(a) The division of the commission responsible for
consumer protection and safety shall be responsible for inspection,
surveillance, and investigation of the rights-of-way, facilities,
equipment, and operations of railroads and public mass transit
guideways, and for enforcing state and federal laws, regulations,
orders, and directives relating to transportation of persons or
commodities, or both, of any nature or description by rail. The
begin insert division of the commission responsible for end insert consumer protection
and safety begin delete division end delete shall advise the commission on all matters
relating to rail safety, and shall propose to the commission rules,
regulations, orders, and other measures necessary to reduce the
dangers caused by unsafe conditions on the railroads of the state.
The delegation of enforcement responsibility to the begin insert division of the
commission responsible for end insert consumer protection and safety begin delete division end delete
shall not diminish the power of other agencies of state government
to enforce laws relating to employee or environmental safety,
pollution prevention, or public health and safety.

(b) In performing its duties, the begin insert division of the commission
responsible for end insert consumer protection and safety begin delete division end delete shall
exercise all powers of investigation granted to the commission,
including rights to enter upon land or facilities, inspect books and
records, and compel testimony. The commission shall employ
sufficient federally certified inspectors to ensure at the time of
inspection that railroad locomotives and equipment and facilities
located in class I railroad yards in California are inspected not less
frequently than every 180 days, and all main and branch line tracks
are inspected not less frequently than every 12 months. In
performing its duties, the begin insert division of the commission responsible
for consumer protection and end insert safety begin delete division end delete shall consult with
representatives of railroad corporations, labor organizations
representing railroad employees, and the Federal Railroad
Administration.

(c) The general counsel shall assign to the begin insert division of the
commission responsible for end insert consumer protection and safety begin delete division end delete
the personnel and attorneys necessary to fully utilize the powers
granted to the commission by any state law, and by any federal
law relating to rail transportation, including, but not limited to, the
Federal Rail Safety Act (45 U.S.C. Sec. 421m, et seq.), to enforce
safety laws, rules, regulations, and orders, and to collect fines and
penalties resulting from the violation of any safety rule or
regulation.

(d) The activities of the begin insert division of the commission responsible
for end insert consumer protection and safety begin delete division end delete that relate to safe
operation of common carriers by rail, other than those relating to
grade crossing protection, shall also be supported by the fees paid
by railroad corporations, if any, pursuant to Sections 421 to 424,
inclusive. The activities of the begin insert division of the commission
responsible for end insert consumer protection and safety begin delete division end delete that relate
to grade crossing protection shall be supported by funds
appropriated therefor from the State Highway Account in the State
Transportation Fund. begin delete On or before November 30 of each year, the
commission shall report to the Legislature on the activities of the
safety division, and shall fully document in the report all
expenditures of those funds in the audit report provided in
subdivision (f) of Section 421. end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 321.6 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

321.6.  

(a) The begin delete commission shall do all of the following: end delete
begin insert president of the commission shall annually appear before the
appropriate policy committees of the Legislature to report on the
annual workplan end insert begin insert of the commission required pursuant to Section
910. end insert

begin delete

(1) Develop, publish, and annually update an annual workplan
that describes in clear detail the scheduled ratemaking proceedings
and other decisions that may be considered by the commission
during the calendar year. The plan shall include, but is not limited
to, information on how members of the public and ratepayers can
gain access to the commission’s ratemaking process and
information regarding the specific matters to be decided. The plan
shall also include information on the operation of the office of the
public adviser and identify the names and telephone numbers of
those contact persons responsible for specific cases and matters
to be decided. The plan shall also include a statement that specifies
activities that the commission proposes to reduce the costs of, and
rates for, energy, including electricity, and for improving the
competitive opportunities for state agriculture and other rural
energy consumers. The commission shall post the plan under the
Official Documents area of its Internet Web site and shall develop
a program to disseminate the information in the plan utilizing
computer mailing lists to provide regular updates on the
information to those members of the public and organizations
which request that information.

(2) Produce a complete accounting of its transactions and
proceedings for the preceding year, together with other facts,
suggestions, and recommendations that it deems of value to the
people of the state and a statement that specifies the activities and
achievements of the commission in reducing the costs of, and rates
for, energy, including electricity, for state agriculture and other
rural energy consumers.

(3) Create a report on the number of cases where resolution
exceeded the time periods prescribed in scoping memos and the
days that commissioners presided in hearings.

(4) Submit annually the plan, accounting, and report required
by paragraphs (1), (2), and (3) to the Governor and Legislature no
later than February 1 of each year.

(b) The president of the commission shall annually appear before
the appropriate policy committees of the Senate and Assembly to
report on the annual workplan access guide of the commission
required pursuant to this section.

(c)

end delete

begin insert (b) end insert  The president of the commission shall annually appear before
the appropriate policy committees of the begin delete Senate and Assembly end delete
begin insert Legislature end insert to report on the annual report of the commission on
the number of cases where resolution exceeded the time periods
prescribed in scoping memos and the days that commissioners
presided in hearings, pursuant to Section 13 of Chapter 856 of the
Statutes of 1996.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 322 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 322. end delete
begin insert 910.1. end insert   

(a) The commission shall periodically, at least once
each year, compile its rules of procedure together with every order
and decision of the commission relating to the conduct of the
commission’s hearings and proceedings.

(b) The compilation shall include, but not be limited to, matters
relating to all of the following:

(1) Pleadings.

(2) Public notice.

(3) Public attendance.

(4) Specification of issues.

(5) Prehearing procedures.

(6) Discovery.

(7) Evidence.

(8) Supporting documentation.

(9) Submission of briefs and arguments.

(10) Meetings of the commission.

(11) All other rules of procedure governing participation in
hearings and proceedings of the commission by public utilities,
commission staff, and other persons.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 421 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

421.  

(a) The commission shall annually determine a fee to be
paid by every passenger stage corporation, charter-party carrier of
passengers, pipeline corporation, for-hire vessel operator, common
carrier vessel operator, railroad corporation, and commercial air
operator, and every other common carrier and related business
subject to the jurisdiction of the commission, except as otherwise
provided in Article 3 (commencing with Section 431) of this
chapter and Chapter 6 (commencing with Section 5001) of Division
2.

(b) The annual fee shall be established to produce a total amount
equal to the amount established in the authorized commission
budget for the same year, including adjustments appropriated by
the Legislature and an appropriate reserve, to regulate common
carriers and related businesses, less the amount to be paid from
special accounts or funds pursuant to Section 403, reimbursements,
federal funds, other revenues, and unencumbered funds from the
preceding year.

(c) Notwithstanding any other provision of law, the fees paid
by railroad corporations shall be used for state-funded railroad
investigation and enforcement activities of the commission, other
than the rail safety activities funded by the Transportation Planning
and Development Account pursuant to Section 99315. The railroad
fees shall be set annually at a level which generates not less than
the amount sufficient to fund activities pursuant to Sections 765.5,
begin delete 7711, end delete begin insert 916, end insert and 7712.

(d) On January 1, 1992, the commission shall submit to the
Legislature a detailed budget implementing this section for the
1992-93 fiscal year. The commission shall also submit to the
Legislature by January 1, 1993, and on each January 1 thereafter,
a detailed budget for expenditure of railroad corporation fees for
the ensuing budget year. The budget for expenditure of railroad
corporation fees, for each of the 1996-97 and 1997-98 fiscal years,
shall not exceed the amount of three million dollars ($3,000,000).
Expenditures of this budget shall be limited to the following items:

(1) Expenditures for employees occupying, and actually
performing service in, railroad-safety personnel positions that are
directly involved in inspecting railroads and enforcing rail safety
regulations. The commission shall expend the funds budgeted
pursuant to this subdivision for the salaries, per diem, and travel
expenses of employees specified in this paragraph, unless, by
statute, the commission is specifically prohibited from expending
all or part of those funds.

(2) Expenditures for employees occupying, and actually
performing service in, clerical and support staff positions that are
directly associated with railroad-safety inspections.

(3) Expenditures for legal personnel who actually pursue
violations of rail safety regulations beyond the informal complaint
level.

(4) Expenditures for an audit by the California State Auditor’s
Office pursuant to subdivision (f), not to exceed seventy-five
thousand dollars ($75,000).

(5) Expenditures for the pro rata share of the commission’s
overhead costs while state personnel are actually occupying the
positions, and are performing the duties specified in paragraphs
(1) to (4), inclusive.

(e) The Department of Finance shall notify the Joint Legislative
Budget Committee, pursuant to Section 28.00 of the annual Budget
Act, prior to authorizing any change in the Budget Act
appropriation for railroad corporation fees that is larger than one
hundred thousand dollars ($100,000), or 10 percent of the amount
budgeted, whichever is less.

(f) Except as otherwise provided in this subdivision,
commencing with the 1993-94 fiscal year, and in each subsequent
fiscal year until the 1999-2000 fiscal year, the commission shall
conduct an audit of the expenditure of the funds received pursuant
to this section, except that for the 1996-97 fiscal year and fiscal
years thereafter the audit shall be conducted by the California State
Auditor’s Office. The results of this audit shall be reported, in
writing, commencing on or before February 15, 1995, with respect
to the audit for the 1993-94 fiscal year, and on or before January
15 of each year thereafter, with respect to the audit for the fiscal
year ending on the previous June 30, to the appropriate policy and
budget committees of the respective houses of the Legislature. The
commission shall reimburse the California State Auditor’s Office
for the costs of the audits beginning with the 1996-97 fiscal year.

(g) On or before January 1, 1994, the commission shall hire a
minimum of four additional operating practices inspectors,
exclusive of supervisory personnel, who are, or shall become by
July 1, 1994, federally certified, for the purpose of enforcing
compliance by railroads operating in this state with state and federal
safety regulations.

(h) The commission, in performing its duties, shall limit the
expenditure of funds for rail safety begin delete division end delete purposes to those
railroad corporation fees collected pursuant to subdivision (d). In
no event, shall the commission fund railroad safety activities
utilizing funds from other commission accounts unrelated to
railroad safety.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 747 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

747.  

begin delete (a) end delete begin delete   end delete It is the intent of the Legislature that the commission
reduce rates for electricity and natural gas to the lowest amount
possible.

begin delete

(b) The commission shall prepare a written report on the costs
of programs and activities conducted by each electrical corporation
and gas corporation that is subject to this section, including
activities conducted to comply with their duty to serve. The report
shall be completed on an annual basis before April 1 of each year,
and shall identify, clearly and concisely, all of the following:

(1) Each program mandated by statute and its annual cost to
ratepayers.

(2) Each program mandated by the commission and its annual
cost to ratepayers.

(3) Energy purchase contract costs and bond-related costs
incurred pursuant to Division 27 (commencing with Section 80000)
of the Water Code.

(4) All other aggregated categories of costs currently recovered
in retail rates as determined by the commission.

(c) As used in this section, the reporting requirements apply to
electrical corporations with at least 1,000,000 retail customers in
California and gas corporations with at least 500,000 retail
customers in California.

(d) The report required by subdivision (b) shall be submitted to
the Governor and the Legislature no later than April 1 of each year.

(e) The commission shall post the report required by subdivision
(b) in a conspicuous area of its Internet Web site.

end delete

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 747.6 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 747.6. end delete
begin insert 913.1. end insert   

The commission shall report annually on its efforts to
identify ratepayer-funded energy efficiency programs that are
similar to programs administered by the Energy Commission, the
State Air Resources Board, and the California Alternative Energy
and Advanced Transportation Financing Authority in its annual
report prepared pursuant to begin delete subdivision (b) of Section 747 end delete begin insert Section
913 end insert and to require revisions to ratepayer-funded programs as
necessary to ensure that the ratepayer-funded programs complement
and do not duplicate programs of other state agencies.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 748 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 748. end delete
begin insert 913.2. end insert   

(a) The commission, by May 1, 2010, and by each May
1 thereafter, shall prepare and submit a written report, separate
from and in addition to the report required by Section begin delete 747, end delete begin insert 913, end insert
to the Governor and Legislature that contains the commission’s
recommendations for actions that can be undertaken during the
succeeding 12 months to limit utility cost and rate increases,
consistent with the state’s energy and environmental goals,
including goals for reducing emissions of greenhouse gases.

(b) In preparing the report required by subdivision (a), the
commission shall require electrical corporations with 1,000,000
or more retail customers in California, and gas corporations with
500,000 or more retail customers in California, to study and report
on measures the corporation recommends be undertaken to limit
costs and rate increases.

(c) The commission shall post the report required by subdivision
(a) in a conspicuous area of its Internet Web site.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 765 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

765.  

(a) When the federal National Transportation Safety
Board (NTSB) submits a safety recommendation letter concerning
rail safety to the commission, the commission shall provide the
NTSB with a formal written response to each recommendation no
later than 90 days after receiving the letter. The response shall
state one of the following:

(1) The commission’s intent to implement the recommendations
in full, with a proposed timetable for implementation of the
recommendations.

(2) The commission’s intent to implement part of the
recommendations, with a proposed timetable for implementation
of those recommendations, and detailed reasons for the
commission’s refusal to implement those recommendations that
the commission does not intend to implement.

(3) The commission’s refusal to implement the
recommendations, with detailed reasons for the commission’s
refusal to implement the recommendations.

(b) If the NTSB issues a safety recommendation letter
concerning any commission-regulated rail facility to the United
States Department of Transportation, the Federal Transit
Administration, to a commission-regulated rail operator, or to the
commission, or if the Federal Transit Administration issues a safety
advisory concerning any commission-regulated rail facility, the
commission shall determine if implementation of the
recommendation or advisory is appropriate. The basis for the
commission’s determination shall be detailed in writing and shall
be approved by a majority vote of the commission.

(c) If the commission determines that a safety recommendation
made by the NTSB is appropriate, or that action concerning a
safety advisory is necessary, the commission shall issue orders or
adopt rules to implement the safety recommendations or advisory
as soon as practicable. In implementing the safety recommendation
or advisory, the commission shall consider whether a more
effective, or equally effective and less costly, alternative exists to
address the safety issue that the recommendation or advisory
addresses.

(d) Any action taken by the commission on a safety
recommendation letter or safety advisory shall be reported
annually, in detail, to the Legislature with the report required by
Section begin delete 321.6. end delete begin insert 910. end insert Any correspondence from the NTSB indicating
that a recommendation has been closed following an action that
the NTSB finds unacceptable shall be noted in the report required
by Section begin delete 321.6. end delete begin insert 910. end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 910 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 910. end delete
begin insert 913.3. end insert   

(a) By May 1 of each year, the commission shall prepare
and submit to the policy and fiscal committees of the Legislature
a written report summarizing the following information:

(1) All electrical corporation revenue requirement increases
associated with meeting the renewables portfolio standard, as
defined in Section 399.12, including direct procurement costs for
eligible renewable energy resources and renewable energy credits,
administrative expenses for procurement, expenses incurred to
ensure a reliable supply of electricity, and expenses for upgrades
to the electrical transmission and distribution grid necessary to the
delivery of electricity from eligible renewable energy resources
to load.

(2) All cost savings experienced, or costs avoided, by electrical
corporations as a result of meeting the renewables portfolio
standard.

(3) All costs incurred by electrical corporations for incentives
for distributed and renewable generation, including the
self-generation incentive program, the California Solar Initiative,
and net energy metering.

(4) All cost savings experienced, or costs avoided, by electrical
corporations as a result of incentives for distributed and renewable
generation.

(5) All pending requests by an electrical corporation seeking
recovery in rates for renewable, fossil fuel, and nuclear
procurement costs, research, study, or pilot program costs.

(6) The decision number for each decision of the commission
authorizing recovery in rates of costs incurred by an electrical
corporation since the preceding report.

(7) Any change in the electrical load serviced by an electrical
corporation since the preceding report.

(8) The efforts each electrical corporation is taking to recruit
and train employees to ensure an adequately trained and available
workforce, including the number of new employees hired by the
electrical corporation for purposes of implementing the
requirements of Article 16 (commencing with Section 399.11) of
Chapter 2.3, the goals adopted by the electrical corporation for
increasing women, minority, and disabled veterans trained or hired
for purposes of implementing the requirements of Article 16
(commencing with Section 399.11) of Chapter 2.3, and, to the
extent information is available, the number of new employees
hired and the number of women, minority, and disabled veterans
trained or hired by persons or corporations owning or operating
eligible renewable energy resources under contract with an
electrical corporation. This paragraph does not provide the
commission with authority to engage in, regulate, or expand its
authority to include, workforce recruitment or training.

(b) The commission may combine the information required by
this section with the reports prepared pursuant to Article 16
(commencing with Section 399.11) of Chapter 2.3.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 910 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 910. end insert   

The commission shall do all of the following:

(a) Develop, publish, and annually update an annual workplan
that describes in clear detail the scheduled ratemaking proceedings
and other decisions that may be considered by the commission
during the calendar year. The plan shall include, but is not limited
to, information on how members of the public and ratepayers can
gain access to the commission’s ratemaking process and
information regarding the specific matters to be decided. The plan
shall also include information on the operation of the office of the
public advisor and identify the names and telephone numbers of
those contact persons responsible for specific cases and matters
to be decided. The plan shall also include a statement that specifies
activities that the commission proposes to reduce the costs of, and
rates for, energy, including electricity, and for improving the
competitive opportunities for state agriculture and other rural
energy consumers. The commission shall post the plan under the
Official Documents area of its Internet Web site and shall develop
a program to disseminate the information in the plan utilizing
computer mailing lists to provide regular updates on the
information to those members of the public and organizations that
request the information.

(b) Produce a complete accounting of its transactions and
proceedings for the preceding year, together with other facts,
suggestions, and recommendations that it deems of value to the
people of the state, and a statement that specifies the activities and
achievements of the commission in reducing the costs of, and rates
for, energy, including electricity, for state agriculture and other
rural energy consumers.

(c) Create a report on the number of cases where resolution
exceeded the time periods prescribed in scoping memos and the
days that commissioners presided in hearings.

(d) Submit annually the plan, accounting, and report required
by subdivisions (a), (b), and (c) to the Governor and Legislature
no later than February 1 of each year. A report to be submitted
pursuant to this subdivision shall be submitted in compliance with
Section 9795 of the Government Code.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 911 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 911. end delete
begin insert 913.4. end insert   

(a) Notwithstanding subdivision (g) of Section 454.5
and Section 583, no later than May 1 of each year, the commission
shall release to the Legislature the costs of all electricity
procurement contracts for eligible renewable energy resources,
including unbundled renewable energy credits, and all costs for
utility-owned generation approved by the commission. The first
report shall include all costs commencing January 1, 2003.
Subsequent reports shall include only costs for the preceding
calendar year.

(1) For power purchase contracts, the commission shall release
costs in an aggregated form categorized according to the year the
procurement transaction was approved by the commission, the
eligible renewable energy resource type, including bundled
renewable energy credits, the average executed contract price, and
average actual recorded costs for each kilowatthour of production.
Within each renewable energy resource type, the commission shall
provide aggregated costs for different project size thresholds.

(2) For each utility-owned renewable generation project, the
commission shall release the costs forecast by the electrical
corporation at the time of initial approval and the actual recorded
costs for each kilowatthour of production during the preceding
calendar year.

(b) This section does not require the release of the terms of any
individual electricity procurement contracts for eligible renewable
energy resources, including unbundled renewable energy credits,
approved by the commission. The commission shall aggregate
data to the extent required to ensure protection of the confidentiality
of individual contract costs even if this aggregation requires
grouping contracts of different energy resource type. The
commission shall not be required to release the data in any year
when there are fewer than three contracts approved.

(c) The commission may combine the information required by
this section with the report prepared pursuant to Section begin delete 910, as
added by Chapter 1 of the First Extraordinary Session of the
Statutes of 2011. end delete begin insert 913.3. end insert

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 911 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 911. end insert   

On or before November 30 of each year, the commission
shall report to the Legislature on the activities of the division of
the commission responsible for consumer protection and safety,
and shall fully document in the report all expenditures of those
funds in the audit report provided in subdivision (f) of Section 421.
A report to be submitted pursuant to this section shall be submitted
in compliance with Section 9795 of the Government Code.

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 913 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 913. end insert   

(a) The reporting requirements of this section apply to
electrical corporations with at least 1,000,000 retail customers in
California and gas corporations with at least 500,000 retail
customers in California.

(b) The commission shall prepare a written report on the costs
of programs and activities conducted by each electrical corporation
and gas corporation that is subject to this section, including
activities conducted to comply with their duty to serve. The report
shall be completed on an annual basis before April 1 of each year,
and shall identify, clearly and concisely, all of the following:

(1) Each program mandated by statute and its annual cost to
ratepayers.

(2) Each program mandated by the commission and its annual
cost to ratepayers.

(3) Energy purchase contract costs and bond-related costs
incurred pursuant to Division 27 (commencing with Section 80000)
of the Water Code.

(4) All other aggregated categories of costs currently recovered
in retail rates as determined by the commission.

(c) The report required by subdivision (b) shall be submitted to
the Governor and the Legislature no later than April 1 of each
year.

(d) The commission shall post the report required by subdivision
(b) in a conspicuous area of its Internet Web site.

end insert

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 914 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 914. end insert   

The commission shall report to the Legislature and the
Governor annually on the effectiveness of the program
administered pursuant to subdivision (c) of Section 280.5.

end insert

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 915 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 915. end delete
begin insert 911.1. end insert   

(a) Beginning February 1, 2016, the commission shall
annually publish a report that includes all investigations into gas
or electric service safety incidents reported, pursuant to commission
requirements, by any gas corporation or electrical corporation. The
report shall succinctly describe each safety investigation concluded
during the prior calendar year and each investigation that remains
open. The categories within the description shall include the month
of the safety incident, the reason for the investigation, the facility
type involved, and the owner of the facility.

(b) The commission shall include in its work plan required
pursuant begin insert to end insert Section begin delete 321.6, end delete begin insert 910, end insert a summary of the staff safety
investigations concluded during the prior calendar year and the
staff safety investigations that remain open for any gas corporation
or electrical corporation, with a link to the Internet Web site with
the report that contains the information required pursuant to
subdivision (a).

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 958.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

958.5.  

(a) Twice a year, or as determined by the commission,
each gas corporation shall file with the begin delete commission’s end delete begin insert division of
the commission responsible for end insert consumer protection begin insert and end insert safety
begin delete division end delete a gas transmission and storage safety report. The begin insert division
of the commission responsible for end insert consumer protection begin insert and end insert safety
begin delete division end delete shall review the reports to monitor each gas corporation’s
storage and pipeline-related activities to assess whether the projects
that have been identified as high risk are being carried out, and to
track whether the gas corporation is spending its allocated funds
on these storage and pipeline-related safety, reliability, and integrity
activities for which they have received approval from the
commission.

(b) The gas transmission and storage safety report shall include
a thorough description and explanation of the strategic planning
and decisionmaking approach used to determine and rank the gas
storage projects, intrastate transmission line safety, integrity, and
reliability, operation and maintenance activities, and inspections
of its intrastate transmission lines. If there has been no change in
the gas corporation’s approach for determining and ranking which
projects and activities are prioritized since the previous gas
transmission and storage safety report, the subsequent report may
reference the immediately preceding report.

(c) If the begin delete commission’s end delete begin insert division of the commission responsible
for end insert consumer protection begin insert and end insert safety begin delete division end delete determines that there
is a deficiency in a gas corporation’s prioritization or administration
of the storage or pipeline capital projects or operation and
maintenance activities, the division shall bring the problems to the
commission’s immediate attention.

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 960 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

960.  

(a) When the federal National Transportation Safety
Board (NTSB) submits a safety recommendation letter concerning
gas pipeline safety to the commission, the commission shall provide
the NTSB with a formal written response to each recommendation
not later than 90 days after receiving the letter. The response shall
state one of the following:

(1) The commission’s intent to implement the recommendations
in full, with a proposed timetable for implementation of the
recommendations.

(2) The commission’s intent to implement part of the
recommendations, with a proposed timetable for implementation
of those recommendations, and detailed reasons for the
commission’s refusal to implement those recommendations that
the commission does not intend to implement.

(3) The commission’s refusal to implement the
recommendations, with detailed reasons for the commission’s
refusal to implement the recommendations.

(b) If the NTSB issues a safety recommendation letter
concerning any commission-regulated gas pipeline facility to the
United States Department of Transportation, the federal Pipeline
and Hazardous Materials Safety Administration (PHMSA), a gas
corporation, or to the commission, or the PHMSA issues an
advisory bulletin concerning any commission-regulated gas
pipeline facility, the commission shall determine if implementation
of the recommendation or advisory is appropriate. The basis for
the commission’s determination shall be detailed in writing and
shall be approved by a majority vote of the commission.

(c) If the commission determines that a safety recommendation
made by the NTSB is appropriate or that action concerning an
advisory bulletin is necessary, the commission shall issue orders
or adopt rules to implement the safety recommendations or
advisory as soon as practicable. In implementing the safety
recommendation or advisory, the commission shall consider
whether a more effective, or equally effective and less costly,
alternative exists to address the safety issue that the
recommendation or advisory addresses.

(d) Any action taken by the commission on a safety
recommendation letter or advisory bulletin shall be reported
annually, in detail, to the Legislature with the report required by
Section begin delete 321.6. end delete begin insert 910. end insert Any correspondence from the NTSB that
indicates that a recommendation of the NTSB has been closed
following an action that the NTSB finds unacceptable shall be
noted in the report required by Section 321.6.

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 5006 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 5006. end delete
begin insert 918. end insert   

The commission shall, within 30 days prior to
commencement of the regular session of the Legislature, submit
to the Governor a full and true report of transactions under begin delete this
chapter end delete begin insert Chapter 6 (commencing with Section 5001) of Division 2 end insert
during the preceding biennium, including a complete statement of
receipts and expenditures during the period.

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 5012 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 5012. end delete
begin insert 912. end insert   

The Public Utilities Commission shall conduct an audit
of the expenditures of the funds received pursuant to begin delete this chapter end delete
begin insert Chapter 6 (commencing with Section 5001) of Division 2 end insert each
fiscal year. The results of this audit shall be reported in writing,
on or before February 15th of each year thereafter, with respect to
the audit for the fiscal year ending on the previous June 30th, to
the appropriate policy and budget committees of the respective
houses of the Legislature.

begin delete SECTION 1. end delete
begin insert SEC. 21. end insert   

Section 5385.5 of the Public Utilities Code is repealed.

begin delete SEC. 2. end delete
begin insert SEC. 22. end insert   

Section 5387 of the Public Utilities Code is amended
to read:

5387.  

(a) It is unlawful for the owner of a charter-party carrier
of passengers to permit the operation of a vehicle upon a public
highway for compensation without (1) having obtained from the
commission a certificate or permit pursuant to this chapter, (2)
having complied with the vehicle identification requirements of
Section 5385, and (3) having complied with the accident liability
protection requirements of Section 5391.

(b) A person who drives a bus for a charter-party carrier without
having a current and valid driver’s license of the proper class, a
passenger vehicle endorsement, or the required certificate shall be
suspended from driving a bus of any kind, including, but not
limited to, a bus, schoolbus, school pupil activity bus, or transit
bus, with passengers for a period of five years pursuant to Section
13369 of the Vehicle Code.

(c) (1) A charter-party carrier shall have its authority to operate
as a charter-party carrier permanently revoked by the commission
or be permanently barred from receiving a permit or certificate
from the commission if it commits any of the following acts:

(A) Operates a bus without having been issued a permit or
certificate from the commission.

(B) Operates a bus with a permit that was suspended by the
commission pursuant to Section 5378.5.

(C) Commits three or more liability insurance violations within
a two-year period for which it has been cited.

(D) Operates a bus with a permit that was suspended by the
commission during a period that the charter-party carrier’s liability
insurance lapsed for which it has been cited.

(E) Knowingly employs a busdriver who does not have a current
and valid driver’s license of the proper class, a passenger vehicle
endorsement, or the required certificate to drive a bus.

(F) Has one or more buses improperly registered with the
Department of Motor Vehicles.

(2) The commission shall not issue a new permit or certificate
to operate as a charter-party carrier if any officer, director, or owner
of that charter-party carrier was an officer, director, or owner of
a charter-party carrier that had its authority to operate as a
charter-party carrier permanently revoked by the commission or
that was permanently barred from receiving a permit or certificate
from the commission pursuant to this subdivision.

(d) An officer of the Department of the California Highway
Patrol may impound a bus of a charter-party carrier for 30 days
pursuant to Section 14602.9 of the Vehicle Code if the officer
determines that any of the following violations occurred while the
busdriver was operating the bus of a charter-party carrier:

(1) The driver was operating the bus of a charter-party carrier
when the charter-party carrier did not have a permit or certificate
issued by the commission.

(2) The driver was operating the bus of a charter-party carrier
when the charter-party carrier was operating the bus with a
suspended permit or certificate from the commission.

(3) The driver was operating the bus of a charter-party carrier
without having a current and valid driver’s license of the proper
class, a passenger vehicle endorsement, or the required certificate.

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 7661 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

7661.  

(a) The commission shall require every railroad
corporation operating in this state to develop, within 90 days of
the effective date of the act adding this section, in consultation
with, and with the approval of, the Office of Emergency Services,
a protocol for rapid communications with the Office of Emergency
Services, the Department of the California Highway Patrol, and
designated county public safety agencies in an endangered area if
there is a runaway train or any other uncontrolled train movement
that threatens public health and safety.

(b) A railroad corporation shall promptly notify the Office of
Emergency Services, the Department of the California Highway
Patrol, and designated county public safety agencies, through a
communication to the Warning Center of the Office of Emergency
Services, if there is a runaway train or any other uncontrolled train
movement that threatens public health and safety, in accordance
with the railroad corporation’s communications protocol developed
pursuant to subdivision (a).

(c) The notification required pursuant to subdivision (b) shall
include the following information, whether or not an accident or
spill occurs:

(1) The information required by subdivision (c) of Section 7673.

(2) In the event of a runaway train, a train list.

(3) In the event of an uncontrolled train movement or
uncontrolled movement of railcars, a track list or other inventory
document if available.

(d) The begin insert division of the commission responsible for end insert consumer
protection and safety begin delete division end delete shall investigate any incident that
results in a notification required pursuant to subdivision (b), and
shall report its findings concerning the cause or causes to the
commission. The commission shall include the division’s report
in its report to the Legislature pursuant to Section begin delete 7711. end delete begin insert 916. end insert

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 7711 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 7711. end delete
begin insert 916. end insert   

The commission shall annually report to the Legislature,
on or before July 1, on sites on railroad lines in the state it finds
to be hazardous. The report shall include, but not be limited to,
information on all of the following:

(a) A list of all railroad derailment accident sites in the state on
which accidents have occurred within at least the previous five
years. The list shall describe the nature and probable causes of the
accidents, if known, and shall indicate whether the accidents
occurred at or near sites that the commission has determined,
pursuant to subdivision (b), pose a local safety hazard.

(b) A list of all railroad sites in the state that the commission
determines, pursuant to Section 20106 of Title 49 of the United
States Code, pose a local safety hazard. The commission may
submit in the annual report the list of railroad sites submitted in
the immediate prior year annual report, and may amend or revise
that list from the immediate prior year as necessary. Factors that
the commission shall consider in determining a local safety hazard
may include, but need not be limited to, all of the following:

(1) The severity of grade and curve of track.

(2) The value of special skills of train operators in negotiating
the particular segment of railroad line.

(3) The value of special railroad equipment in negotiating the
particular segment of railroad line.

(4) The types of commodities transported on or near the
particular segment of railroad line.

(5) The hazard posed by the release of the commodity into the
environment.

(6) The value of special railroad equipment in the process of
safely loading, transporting, storing, or unloading potentially
hazardous commodities.

(7) The proximity of railroad activity to human activity or
sensitive environmental areas.

(8) A list of the root causes and significant contributing factors
of all train accidents or derailments investigated.

(c) In determining which railroad sites pose a local safety hazard
pursuant to subdivision (b), the commission shall consider the
history of accidents at or near the sites. The commission shall not
limit its determination to sites at which accidents have already
occurred, but shall identify potentially hazardous sites based on
the criteria enumerated in subdivision (b) and all other criteria that
the commission determines influence railroad safety. The
commission shall also consider whether any local safety hazards
at railroad sites have been eliminated or sufficiently remediated
to warrant removal of the site from the list required under
subdivision (b).

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 7712 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

7712.  

On or before January 1, 1993, the commission shall adopt
regulations, based on its findings and not inconsistent with federal
law. The commission may amend or revise the regulations as
necessary thereafter, to reduce the potential railroad hazards
identified in Section begin delete 7711. end delete begin insert 916. end insert In adopting the regulations, the
commission shall consider at least all of the following:

(a) Establishing special railroad equipment standards for trains
operated on railroad sites identified as posing a local safety hazard
pursuant to subdivision (b) of Section begin delete 7711. end delete begin insert 916. end insert These standards
may include, but need not be limited to, standards for all of the
following:

(1) Sizes, numbers, and configurations of locomotives.

(2) Brakes.

(b) Establishing special train operating standards for trains
operated over railroad sites identified as posing a local safety
hazard pursuant to subdivision (b) of Section begin delete 7711. end delete begin insert 916. end insert These
standards may include, but need not be limited to, standards for
all of the following:

(1) Length, weight, and weight distribution of trains.

(2) Speeds and accelerations of trains.

(3) Hours of allowable travel.

(c) Establishing special training, personnel, and performance
standards for operators of trains that travel on railroad sites
identified as posing a local safety hazard pursuant to subdivision
(b) of Section begin delete 7711. end delete begin insert 916. end insert

(d) Establishing special inspection and reporting standards for
trains operated on railroad sites identified as posing a local safety
hazard pursuant to subdivision (b) of Section begin delete 7711. end delete begin insert 916. end insert