BILL NUMBER: SB 697	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 24, 2015
	AMENDED IN SENATE  APRIL 9, 2015

INTRODUCED BY   Senator Hertzberg

                        FEBRUARY 27, 2015

   An act to amend  Section 5387 of,   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, 501
  2, and 7711 of, to amend, renumber, and add Sections 910
and 911 of, to add Sections 913 and 914   to,  and to
repeal Section 5385.5 of, the Public Utilities Code, relating to
public utilities.



	LEGISLATIVE COUNSEL'S DIGEST


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

   SECTION 1.    Section 280.5 of the   Public
Utilities Code   is amended to read: 
   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. 
   (4) The commission shall report to the Legislature and the
Governor annually on the effectiveness of the program administered
pursuant to this subdivision. 
   (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.
   SEC. 2.    Section 309.7 of the   Public
Utilities Code   is amended to read: 
   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 
division of the commission responsible for  consumer protection
and safety  division  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 
division of the commission responsible for  consumer protection
and safety  division  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  division of the commission
responsibl   e for  consumer protection and safety
 division  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
division of the commission responsible for consumer protection and
 safety  division  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  division of the
commission responsible for  consumer protection and safety
 division  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  division of the commission
responsible for  consumer protection and safety 
division  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  division of the commission responsible for  consumer
protection and safety  division  that relate to
grade crossing protection shall be supported by funds appropriated
therefor from the State Highway Account in the State Transportation
Fund.  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. 
   SEC. 3.    Section 321.6 of the   Public
Utilities Code   is amended to read: 
   321.6.  (a) The  commission shall do all of the following:
  president of the commission shall annually appear
before the appropriate policy committees of the Legislature to report
on the annual workplan   of the commission required
pursuant to Section 910.  
   (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) 
    (b)  The president of the commission shall annually
appear before the appropriate policy committees of the 
Senate and Assembly   Legislature  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.
   SEC. 4.    Section 322 of the  Public
Utilities Code   is amended and renumbered to read: 
    322.  910.1.   (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.
   SEC. 5.    Section 421 of the   Public
Utilities Code   is amended to read: 
   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,
 7711,   916,  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  division 
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.
   SEC. 6.    Section 747 of the   Public
Utilities Code   is amended to read: 
   747.   (a)    It is the intent
of the Legislature that the commission reduce rates for electricity
and natural gas to the lowest amount possible. 
   (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. 
   SEC. 7.    Section 747.6 of the   Public
Utilities Code   is amended and renumbered to read: 
    747.6.   913.1.   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  subdivision (b) of
Section 747   Section 913  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.
   SEC. 8.    Section 748 of the   Public
Utilities Code   is amended and renumbered to read: 
    748.   913.2.   (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  747,   913,  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.
   SEC. 9.    Section 765 of the   Public
Utilities Code   is amended to read: 
   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  321.6.
  910.  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  321.6.   910. 
   SEC. 10.    Section 910 of the   Public
Utilities Code   is amended and renumbered to read: 
    910.   913.3.   (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.
   SEC. 11.    Section 910 is added to the  
Public Utilities Code   , to read: 
   910.  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. 
   SEC. 12.    Section 911 of the   Public
Utilities Code   is amended and renumbered to read: 
    911.   913.4.   (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  910, as
added by Chapter 1 of the First Extraordinary Session of the
Statutes of 2011.   913.3. 
   SEC. 13.    Section 911 is added to the  
Public Utilities Code   , to read:  
   911.  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.
   SEC. 14.    Section 913 is added to the  
Public Utilities Code   , to read:  
   913.  (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. 
   SEC. 15.    Section 914 is added to the  
Public Utilities Code   , to read:  
   914.  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. 
   SEC. 16.    Section 915 of the   Public
Utilities Code   is amended and renumbered to read: 
    915.   911.1.   (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  to  Section  321.6,   910,
 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).
   SEC. 17.    Section 958.5 of the   Public
Utilities Code   is amended to read: 
   958.5.  (a) Twice a year, or as determined by the commission, each
gas corporation shall file with the  commission's 
 division of the commission responsible for  consumer
protection  and  safety  division  a gas
transmission and storage safety report. The  division of the
commission responsible for  consumer protection  and 
safety  division  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  commission's  division of the
commission responsible for  consumer protection  and 
safety  division  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.
   SEC. 18.    Section 960 of the   Public
Utilities Code   is amended to read: 
   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  321.6.
  910.  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.
   SEC. 19.    Section 5006 of the   Public
Utilities Code   is amended and renumbered to read: 
    5006.   918.   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  this chapter   Chapter 6
(commencing with Section 5001) of Division 2  during the
preceding biennium, including a complete statement of receipts and
expenditures during the period.
   SEC. 20.    Section 5012 of the   Public
Utilities Code   is amended and renumbered to read: 
    5012.   912.   The Public Utilities
Commission shall conduct an audit of the expenditures of the funds
received pursuant to  this chapter   Chapter 6
(commencing with Section 5001) of Division 2  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.
   SECTION 1.   SEC. 21.   Section 5385.5
of the Public Utilities Code is repealed.
   SEC. 2.   SEC. 22.   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.
   SEC. 23.    Section 7661 of the   Public
Utilities Code   is amended to read: 
   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  division of the commission responsible for 
consumer protection and safety  division  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  7711.   916. 
   SEC. 24.    Section 7711 of the   Public
Utilities Code   is amended and renumbered to read: 
    7711.   916.   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).
   SEC. 25.    Section 7712 of the   Public
Utilities Code   is amended to read: 
   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  7711.   916.  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  7711.  
916.  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  7711.
  916.  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  7711.   916. 
   (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  7711.
  916.