Amended in Assembly July 8, 2015

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 Sections 280.5, begin delete 309.7, 321.6, 421, 747, 765, 958.5, 960, 5387, 7661, and 7712 end delete begin insert 281, 309.7, 311.4, 321.6, 348, 364, 379.7, 381.2, 421, 740.3, 747, 765, 785, 873, 958.5, 960, 2851, 2881, 2891, 5387, 5920, 5960, 7661, 7712, 7912, and 8283 end insert of, to amend and renumber Sections begin delete 322, 747.6, 748, 915, 5006, 5012, and 7711 end delete begin insert 321.7, 322, 326, 326.5, 384.2, 399.19, 432.5, 747.6, 748, 765.6, 911, 915, 5006, 5012, 7711, and 8367 end insert of, to amend, renumber, and add begin delete Sections end delete begin insert Section end insert 910 begin delete and 911 end delete of, to add Sections begin delete 913 and 914 end delete begin insert 910.4, 910.7, 912.2, 913, 913.5, 913.8, 913.12, 913.13, 913.14, 913.15, 914, 914.1, 914.2, 914.3, 914.4, 914.5, 914.6, 914.7. 916, 916.1, 916.4, 919, 919.1, and 919.2, end insert 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. Public Utilities Commission: reports: begin delete civil penalties: end delete begin insert audits: end insert 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. begin insert The bill would require the commission to report specified information on a quarterly basis relative to implementation of the California Renewables Portfolio Standard Program. 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:

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.

(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 281 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

281.  

(a) The commission shall develop, implement, and
administer the California Advanced Services Fund program to
encourage deployment of high-quality advanced communications
services to all Californians that will promote economic growth,
job creation, and the substantial social benefits of advanced
information and communications technologies, consistent with
this section.

(b) (1) The goal of the program is, no later than December 31,
2015, to approve funding for infrastructure projects that will
provide broadband access to no less than 98 percent of California
households.

(2) In approving infrastructure projects, the commission shall
give priority to projects that provide last-mile broadband access
to households that are unserved by an existing facilities-based
broadband provider. The commission shall provide each applicant,
and any party challenging an application, the opportunity to
demonstrate actual levels of broadband service in the project area,
which the commission shall consider in reviewing the application.

(c) The commission shall establish the following accounts within
the fund:

(1) The Broadband Infrastructure Grant Account.

(2) The Rural and Urban Regional Broadband Consortia Grant
Account.

(3) The Broadband Infrastructure Revolving Loan Account.

(4) The Broadband Public Housing Account.

(d) (1) All moneys collected by the surcharge authorized by
the commission pursuant to Decision 07-12-054 shall be
transmitted to the commission pursuant to a schedule established
by the commission. The commission shall transfer the moneys
received to the Controller for deposit in the California Advanced
Services Fund. Moneys collected on and after January 1, 2011,
shall be deposited in the following amounts in the following
accounts:

(A) One hundred ninety million dollars ($190,000,000) into the
Broadband Infrastructure Grant Account.

(B) Ten million dollars ($10,000,000) into the Rural and Urban
Regional Broadband Consortia Grant Account.

(C) Fifteen million dollars ($15,000,000) into the Broadband
Infrastructure Revolving Loan Account.

(2) All interest earned on moneys in the fund shall be deposited
in the fund.

(3) The commission shall not collect moneys, by imposing the
surcharge described in paragraph (1) for deposit in the fund, in an
amount that exceeds one hundred million dollars ($100,000,000)
before January 1, 2011. On and after January 1, 2011, the
commission may collect an additional sum not to exceed two
hundred fifteen million dollars ($215,000,000), for a sum total of
moneys collected by imposing the surcharge described in paragraph
(1) not to exceed three hundred fifteen million dollars
($315,000,000). The commission may collect the additional sum
beginning with the calendar year starting on January 1, 2011, and
continuing through the 2020 calendar year, in an amount not to
exceed twenty-five million dollars ($25,000,000) per year, unless
the commission determines that collecting a higher amount in any
year will not result in an increase in the total amount of all
surcharges collected from telephone customers that year.

(e) (1) All moneys in the California Advanced Services Fund
shall be available, upon appropriation by the Legislature, to the
commission for the program administered by the commission
pursuant to this section, including the costs incurred by the
commission in developing, implementing, and administering the
program and the fund.

(2) Notwithstanding any other law and for the sole purpose of
providing matching funds pursuant to the federal American
Recovery and Reinvestment Act of 2009 (Public Law 111-5), any
entity eligible for funding pursuant to that act shall be eligible to
apply to participate in the program administered by the commission
pursuant to this section, if that entity otherwise satisfies the
eligibility requirements under that program. Nothing in this section
shall impede the ability of an incumbent local exchange carrier,
as defined by subsection (h) of Section 251 of Title 47 of the
United States Code, that is regulated under a rate of return
regulatory structure, to recover, in rate base, California
infrastructure investment not provided through federal or state
grant funds for facilities that provide broadband service and
California intrastate voice service.

(3) Notwithstanding subdivision (b) of Section 270, an entity
that is not a telephone corporation shall be eligible to apply to
participate in the program administered by the commission pursuant
to this section to provide access to broadband to an unserved or
underserved household, as defined in commission Decision
12-02-015, if the entity otherwise meets the eligibility requirements
and complies with program requirements established by the
commission. These requirements shall include all of the following:

(A) That projects under this paragraph provide last-mile
broadband access to households that are unserved by an existing
facilities-based broadband provider and only receive funding to
provide broadband access to households that are unserved or
underserved, as defined in commission Decision 12-02-015.

(B) That funding for a project providing broadband access to
an underserved household shall not be approved until after any
existing facilities-based provider has an opportunity to demonstrate
to the commission that it will, within a reasonable timeframe,
upgrade existing service. An existing facilities-based provider
may, but is not required to, apply for funding under this section to
make that upgrade.

(C) That the commission shall provide each applicant, and any
party challenging an application, the opportunity to demonstrate
actual levels of broadband service in the project area, which the
commission shall consider in reviewing the application.

(D) That a local governmental agency may be eligible for an
infrastructure grant only if the infrastructure project is for an
unserved household or business, the commission has conducted
an open application process, and no other eligible entity applied.

(E) That the commission shall establish a service list of
interested parties to be notified of California Advanced Services
Fund applications.

(f) Moneys in the Rural and Urban Regional Broadband
Consortia Grant Account shall be available for grants to eligible
consortia to fund the cost of broadband deployment activities other
than the capital cost of facilities, as specified by the commission.
An eligible consortium may include, as specified by the
commission, representatives of organizations, including, but not
limited to, local and regional government, public safety, elementary
and secondary education, health care, libraries, postsecondary
education, community-based organizations, tourism, parks and
recreation, agricultural, and business, and is not required to have
as its lead fiscal agent an entity with a certificate of public
convenience and necessity.

(g) Moneys in the Broadband Infrastructure Revolving Loan
Account shall be available to finance capital costs of broadband
facilities not funded by a grant from the Broadband Infrastructure
Grant Account. The commission shall periodically set interest rates
on the loans based on surveys of existing financial markets.

(h) (1) For purposes of this subdivision, the following terms
have the following meanings:

(A) “Publicly subsidized” means either that the housing
development receives financial assistance from the United States
Department of Housing and Urban Development pursuant to an
annual contribution contract or is financed with low-income
housing tax credits, tax-exempt mortgage revenue bonds, general
obligation bonds, or local, state, or federal loans or grants and the
rents of the occupants, who are lower income households, do not
exceed those prescribed by deed restrictions or regulatory
agreements pursuant to the terms of the financing or financial
assistance.

(B) “Publicly supported community” means a publicly
subsidized multifamily housing development that is wholly owned
by either of the following:

(i) A public housing agency that has been chartered by the state,
or by any city or county in the state, and has been determined to
be an eligible public housing agency by the United States
Department of Housing and Urban Development.

(ii) An incorporated nonprofit organization as described in
Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec.
501(c)(3)) that is exempt from taxation under Section 501(a) of
that code (16 U.S.C. Sec. 501(a)), and that has received public
funding to subsidize the construction or maintenance of housing
occupied by residents whose annual income qualifies as “low” or
“very low” income according to federal poverty guidelines.

(2) Notwithstanding subdivision (b) of Section 270, moneys in
the Broadband Public Housing Account shall be available for the
commission to award grants and loans pursuant to this subdivision
to an eligible publicly supported community if that entity otherwise
meets eligibility requirements and complies with program
requirements established by the commission.

(3) Not more than twenty million dollars ($20,000,000) shall
be available for grants and loans to a publicly supported community
to finance a project to connect a broadband network to that publicly
supported community. A publicly supported community may be
an eligible applicant only if the publicly supported community can
verify to the commission that the publicly supported community
has not denied a right of access to any broadband provider that is
willing to connect a broadband network to the facility for which
the grant or loan is sought.

(4) (A) Not more than five million dollars ($5,000,000) shall
be available for grants and loans to a publicly supported community
to support programs designed to increase adoption rates for
broadband services for residents of that publicly supported
community. A publicly supported community may be eligible for
funding for a broadband adoption program only if the residential
units in the facility to be served have access to broadband services
or will have access to broadband services at the time the funding
for adoption is implemented.

(B) A publicly supported community may contract with other
nonprofit or public agencies to assist in implementation of a
broadband adoption program.

(5) To the extent feasible, the commission shall approve projects
for funding from the Broadband Public Housing Account in a
manner that reflects the statewide distribution of publicly supported
communities.

(6) In reviewing a project application under this subdivision,
the commission shall consider the availability of other funding
sources for that project, any financial contribution from the
broadband service provider to the project, the availability of any
other public or private broadband adoption or deployment program,
including tax credits and other incentives, and whether the applicant
has sought funding from, or participated in, any reasonably
available program. The commission may require an applicant to
provide match funding, and shall not deny funding for a project
solely because the applicant is receiving funding from another
source.

(7) (A) To provide funding for the purposes of this subdivision,
the commission shall transfer to the Broadband Public Housing
Account twenty million dollars ($20,000,000) from the Broadband
Infrastructure Grant Account and five million dollars ($5,000,000)
from the Broadband Revolving Loan Account. Any moneys in the
Broadband Public Housing Account that have not been awarded
pursuant to this subdivision by December 31, 2016, shall be
transferred back to the Broadband Infrastructure Grant Account
and Broadband Infrastructure Revolving Loan Account in
proportion to the amount transferred from the respective accounts.

(B) The commission shall transfer funds pursuant to
subparagraph (A) only if the commission is otherwise authorized
to collect funds for purposes of this section in excess of the total
amount authorized pursuant to paragraph (3) of subdivision (d).

begin delete

(i) (1) The commission shall conduct two interim financial
audits and a final financial audit and two interim performance
audits and a final performance audit of the implementation and
effectiveness of the California Advanced Services Fund to ensure
that funds have been expended in accordance with the approved
terms of the grant awards and loan agreements and this section.
The commission shall report its interim findings to the Legislature
by April 1, 2011, and April 1, 2017. The commission shall report
its final findings to the Legislature by April 1, 2021. The reports
shall also include an update to the maps in the final report of the
California Broadband Task Force and data on the types and
numbers of jobs created as a result of the program administered
by the commission pursuant to this section.

(2) (A) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2022, pursuant to Section
10231.5 of the Government Code.

(B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government
Code.

(j) (1) Beginning on January 1, 2012, and annually thereafter,
the commission shall provide a report to the Legislature that
includes all of the following information:

(A) The amount of funds expended from the California
Advanced Services Fund in the prior year.

(B) The recipients of funds expended from the California
Advanced Services Fund in the prior year.

(C) The geographic regions of the state affected by funds
expended from the California Advanced Services Fund in the prior
year.

(D) The expected benefits to be derived from the funds expended
from the California Advanced Services Fund in the prior year.

(E) Actual broadband adoption levels from the funds expended
from the California Advanced Services Fund in the prior year.

(F) The amount of funds expended from the California
Advanced Services Fund used to match federal funds.

(G) An update on the expenditures from California Advanced
Services Fund and broadband adoption levels, and an accounting
of remaining unserved and underserved households and areas of
the state.

(H) The status of the California Advanced Services Fund balance
and the projected amount to be collected in each year through 2020
to fund approved projects.

(2) (A) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2021, pursuant to Section
10231.5 of the Government Code.

(B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government
Code.

end delete

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

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 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 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
responsible for consumer protection and safety 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 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 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 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 that relate to grade crossing
protection shall be supported by funds appropriated therefor from
the State Highway Account in the State Transportation Fund.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 311.4 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

311.4.  

(a) On or after July 1, 2001, the commission shall
establish procedures to permit the submission of informal
complaints through electronic means in accordance with this
section.

(b) On or before January 1, 2002, the commission shall provide
on its Internet Web site the means by which consumers may submit
informal complaints through electronic means.

begin delete

(c) It is the intent of the Legislature that, commencing one year
from the date that the procedures described in subdivision (a) are
implemented, the commission annually review the procedures and
the technology involved to ensure the continued effectiveness of
the program, and report any findings to the Legislature.

(d)

end delete

begin insert (c) end insert  For the purpose of this section, “electronic means” includes,
but shall not be limited to, e-mail or the Internet, or both.

begin delete

(e)

end delete

begin insert (d) end insert  Upon the receipt of an informal complaint submitted by
electronic means, the commission shall immediately forward the
complaint to the entity named in the complaint.

begin delete

(f)

end delete

begin insert (e) end insert  The commission shall permit the submission of informal
complaints through electronic means, if, as determined by the
commission, both of the following conditions are met:

(1) The dollar amount in the complaint does not exceed the
jurisdictional limit of a small claims court specified in subdivision
(a) of Section 116.220 or Section 116.221 of the Code of Civil
Procedure.

(2) The commission has addressed any impediments in the
electronic systems employed by the commission that would prevent
or substantially adversely affect the ability of the commission to
receive informal complaints by electronic means.

begin delete

(g)

end delete

begin insert (f) end insert  The commission shall include a notice on its Internet Web
site of the availability of the procedures described in subdivision
(a).

begin delete

(h)

end delete

begin insert (g) end insert  For the purposes of implementing this section, the
commission shall make available to the public an industry specific
online complaint form that allows a customer to specify
information that the commission determines to be relevant for
purposes of resolving a dispute, including the account number, the
type of dispute, and the opportunity to make general comments.

begin delete

(i)

end delete

begin insert (h) end insert  This act may not be implemented, and no information
technology-related preparatory work may be undertaken in
connection with this act prior to July 1, 2001, without the
concurrence of the commission and the authorization of the
Department of Information Technology pursuant to Executive
Order D-3-99.

begin delete SEC. 3. end delete
begin insert SEC. 5. end insert   

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

321.6.  

(a) The 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.

(b) The president of the commission shall annually appear before
the appropriate policy committees of the 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.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 321.7 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 321.7. end delete
begin insert 913.10. end insert   

(a) On or before January 1, 2010, and biennially
thereafter, the commission, in consultation with the Independent
System Operator and the State Energy Resources Conservation
and Development Commission, shall study, and submit a report
to the Legislature and the Governor, on the impacts of distributed
energy generation on the state’s distribution and transmission grid.
The study shall evaluate all of the following:

(1) Reliability and transmission issues related to connecting
distributed energy generation to the local distribution networks
and regional grid.

(2) Issues related to grid reliability and operation, including
interconnection, and the position of federal and state regulators
toward distributed energy accessibility.

(3) The effect on overall grid operation of various distributed
energy generation sources.

(4) Barriers affecting the connection of distributed energy to
the state’s grid.

(5) Emerging technologies related to distributed energy
generation interconnection.

(6) Interconnection issues that may arise for the Independent
System Operator and local distribution companies.

(7) The effect on peak demand for electricity.

(b) In addition, the commission shall specifically assess the
impacts of the California Solar Initiative program, specified in
Section 2851 and Section 25783 of the Public Resources Code,
the self-generation incentive program authorized by Section 379.6,
and the net energy metering pilot program authorized by Section
2827.9.

begin delete SEC. 4. end delete
begin insert SEC. 7. end insert   

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

begin delete 910.1. end delete
begin insert 910.2. 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. 8. end insert   

end insert

begin insert Section 326 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 326. end delete
begin insert 910.6. end insert   

(a) By begin delete January 10, 2012, and by end delete January 10 of each
begin delete year thereafter, end delete begin insert year, end insert the commission shall report to the Joint
Legislative Budget Committee and appropriate fiscal and policy
committees of the Legislature, on all sources and amounts of
funding and actual and proposed expenditures, both in the two
prior fiscal years and for the proposed fiscal year, including any
costs to ratepayers, related to interactions by the commission, its
officers, or its staff with the California Public Utilities Commission
Foundation, or any derivative, or successor, or with any agent or
director of the foundation, including all of the following:

(1) Attendance at meetings, conferences, or events organized
or sponsored by the foundation.

(2) Any contract or other agreement between the commission,
its officers, or its staff and the foundation, including agreements
relating to attendance at any educational or training conference or
event.

(3) Any agenda item, order, decision, resolution, or motion,
referencing the foundation.

(4) Endorsements of the foundation or its activities.

(5) Any contribution made to the foundation at the behest of a
member of the commission, its officers, or its staff, and any direct
or indirect contribution made to the foundation by a member of
the commission, its officers, or its staff. For purposes of this
paragraph, “contribution” means any payment, a forgiveness of a
loan, a payment of a loan by a third party, or an enforceable
promise to make a payment, except to the extent that full and
adequate consideration is received.

(b) (1) Within eight weeks of any contribution to the foundation
made at the behest of a member of the commission, its officers,
or its staff, the commission shall report the contribution to the Joint
Legislative Budget Committee and appropriate fiscal and policy
committees of the Legislature, and include any documents
pertaining to the contribution.

(2) Each report shall include certification from the commission
that the contribution does not violate the Conflict of Interest Code
and Statement of Incompatible Activities adopted pursuant to
Section 303.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 326.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 326.5. end delete
begin insert 910.5. end insert   

By begin delete January 10, 2009, and by end delete January 10 of each begin delete year
thereafter, end delete begin insert year, end insert the commission shall report to the Joint Legislative
Budget Committee and appropriate fiscal and policy committees
of the Legislature, on all sources and amounts of funding and actual
and proposed expenditures, both in the two prior fiscal years and
for the proposed fiscal year, including any costs to ratepayers,
related to both of the following:

(a) Entities or programs established by the commission by order,
decision, motion, settlement, or other action, including, but not
limited to, the California Clean Energy Fund, the California
Emerging Technology Fund, and the Pacific Forest and Watershed
Lands Stewardship Council. The report shall contain descriptions
of relevant issues, including, but not limited to, all of the following:

(1) Any governance structure established for an entity or
program.

(2) Any staff or employees hired by or for the entity or program
and their salaries and expenses.

(3) Any staff or employees transferred or loaned internally or
interdepartmentally for the entity or program and their salaries and
expenses.

(4) Any contracts entered into by the entity or program, the
funding sources for those contracts, and the legislative authority
under which the commission entered into the contract.

(5) The public process and oversight governing the entity or
program’s activities.

(b) Entities or programs established by the commission, other
than those expressly authorized by statute, under the following
sections:

(1) Section 379.6.

(2) Section 399.8.

(3) Section 739.1.

(4) Section 2790.

(5) Section 2851.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 348 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

348.  

The Independent System Operator shall adopt inspection,
maintenance, repair, and replacement standards for the transmission
facilities under its control no later than September 30, 1997. The
standards, which shall be performance or prescriptive standards,
or both, as appropriate, for each substantial type of transmission
equipment or facility, shall provide for high quality, safe, and
reliable service. In adopting its standards, the Independent System
Operator shall consider: cost, local geography and weather,
applicable codes, national electric industry practices, sound
engineering judgment, and experience. The Independent System
Operator shall also adopt standards for reliability, and safety during
periods of emergency and disaster. begin delete The Independent System
Operator shall report to the Oversight Board, at such times as the
Oversight Board may specify, on the development and
implementation of the standards in relation to facilities under the
operational control of the Independent System Operator. The
Independent System Operator shall require each transmission
facility owner or operator to report annually on its compliance
with the standards. That report shall be made available to the
public. end delete

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 364 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

364.  

(a) The commission shall adopt inspection, maintenance,
repair, and replacement standards, and shall, in a new proceeding,
or new phase of an existing proceeding, to commence on or before
July 1, 2015, consider adopting rules to address the physical
security risks to the distribution systems of electrical corporations.
The standards or rules, which shall be prescriptive or performance
based, or both, and may be based on risk management, as
appropriate, for each substantial type of distribution equipment or
facility, shall provide for high-quality, safe, and reliable service.

(b) In setting its standards or rules, the commission shall
consider: cost, local geography and weather, applicable codes,
potential physical security risks, national electric industry practices,
sound engineering judgment, and experience. The commission
shall also adopt standards for operation, reliability, and safety
during periods of emergency and disaster. begin delete The commission shall
require each electrical corporation to report annually on its
compliance with the standards or rules. Except as provided in
subdivision (d), that report shall be made available to the public. end delete

(c) The commission shall conduct a review to determine whether
the standards or rules prescribed in this section have been met. If
the commission finds that the standards or rules have not been
met, the commission may order appropriate sanctions, including
penalties in the form of rate reductions or monetary fines. The
review shall be performed after every major outage. Any money
collected pursuant to this subdivision shall be used to offset funding
for the California Alternative Rates for Energy Program.

(d) The commission may, consistent with other provisions of
law, withhold from the public information generated or obtained
pursuant to this section that it deems would pose a security threat
to the public if disclosed.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 379.7 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

379.7.  

(a) The Legislature finds and declares that the
demonstration project authorized pursuant to this section, at the
Antelope Valley Fairgrounds, to determine actual energy and cost
savings that may be achieved when investments are made onsite
to both reduce overall electricity demand and to offset peak
electricity demand through the installation of (1) cost-effective
energy efficient equipment and fixtures, and (2) a photovoltaic
solar energy system, will provide valuable empirical data upon
which to optimize future ratepayer investments in cost-effective
energy efficiency and photovoltaic solar systems.

(b) (1) The demonstration project authorized pursuant to this
section shall be referred to as the Antelope Valley Fairgrounds EE
and PV Synergy Demonstration Project.

(2) To ensure that potential energy and cost savings from
cost-effective energy efficient equipment and fixtures are achieved,
the Antelope Valley Fairgrounds shall do both of the following:

(A) Implement the recommendations of the energy audit
performed on July 27, 2004.

(B) Include cost-effective energy efficient equipment and
fixtures in all future expansions of the fairgrounds.

(3) To ensure that potential energy and cost savings are achieved
from a photovoltaic solar energy system of up to 630 kilowatts
installed at the Antelope Valley Fairgrounds, the photovoltaic solar
energy system shall meet both of the following criteria:

(A) Be installed in a manner that optimizes operating efficiency,
including appropriate siting.

(B) Consist of components that are new and unused and have
a warranty of not less than 10 years to protect against defects and
undue degradation of electrical generation output.

(c) An electrical corporation providing electrical service to the
Antelope Valley Fairgrounds shall, by February 1, 2006, file with
the commission a tariff providing for an incentive rate consistent
with this section. The incentive rate shall provide stability and
certainty over a 10-year period in an amount and in a manner to
support investment in, and to test the durability of, the photovoltaic
solar energy system installed at the fairgrounds. The incentive rate,
together with an incentive from the self-generation incentive
program that recognizes the energy efficiency investments made
at the fairgrounds as authorized pursuant to Section 379.6, shall
provide for a 10-year payback period for the photovoltaic solar
energy system. The incentive rate shall not result in any cost
shifting among customer classes of the electrical corporation.

(d) Actual energy and cost savings shall be determined through
annual energy audits and ongoing metering of electricity used and
electricity produced on a time-of-use basis.

(e) The demonstration project will be complete 10 years from
the date the Antelope Valley Fairgrounds first takes electrical
service pursuant to the incentive rate required by this section.

begin delete

(f) Biennial reports shall be submitted to the commission and
to the Legislature by the Antelope Valley Fairgrounds. The reports
shall include actual recorded electricity usage by the fairgrounds
and electricity produced by the photovoltaic solar energy system
at the fairgrounds, on a time-of-use basis. A final report shall be
submitted to the commission and to the Legislature within six
months of the conclusion of the demonstration project. The final
report shall include an analysis of the energy and cost savings
achieved at the fairgrounds, the effectiveness of combining
investment in energy efficiency and a photovoltaic solar energy
system on the same site, the performance and durability of the
photovoltaic solar energy system over the life of the demonstration
project, and recommendations for optimizing ratepayer investment
in energy efficiency and photovoltaic solar energy systems.

end delete begin delete

(g)

end delete

begin insert (f) end insert  This section shall remain in effect only until January 1, 2017,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2017, deletes or extends that date.

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 381.2 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

381.2.  

begin delete (a) end delete begin delete   end delete By March 1, 2010, the commission, by opening a
new proceeding or amending an existing proceeding, shall
investigate the ability of electrical corporations and gas
corporations to provide various energy efficiency financing options
to their customers for the purposes of implementing the program
developed pursuant to Section 25943 of the Public Resources Code.

begin delete

(b) In the report prepared pursuant to Section 384.2, the
commission shall include an assessment of each electrical
corporation’s and each gas corporation’s implementation of the
program developed pursuant to Section 25943 of the Public
Resources Code.

end delete

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 384.2 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 384.2. end delete
begin insert 913.7. end insert   

The commission shall submit a report to the Legislature
by July 15, 2009, and triennially thereafter, on the energy efficiency
and conservation programs it oversees. The report shall include
information regarding authorized utility budgets and expenditures
and projected and actual energy savings over the program cycle.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 399.19 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 399.19. end delete
begin insert 913.6. end insert   

The commission, in consultation with the Energy
Commission, shall report to the Legislature by January 1 of every
even-numbered year on all of the following:

(a) The progress and status of procurement activities by each
retail begin delete seller. end delete begin insert seller pursuant to the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11)
of Chapter 2.3). end insert

(b) The status of permitting and siting eligible renewable energy
resources and transmission facilities necessary to supply electricity
generated to load, including the time taken to permit each eligible
renewable energy resource and transmission line or upgrade,
explanations of failures to meet permitting milestones, and
recommendations for improvements to expedite permitting and
siting processes.

(c) The projected ability of each electrical corporation to meet
the renewables portfolio standard procurement requirements under
the cost limitations in subdivision (d) of Section 399.15 and any
recommendations for revisions of those cost limitations.

(d) Any barriers to, and policy recommendations for, achieving
the renewables portfolio standard pursuant to begin delete this article. end delete begin insert the
California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3). end insert

begin delete SEC. 5. end delete
begin insert SEC. 16. end insert   

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,
begin delete 916, end delete begin insert 916.2, 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 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. 17. end insert   

end insert

begin insert Section 432.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 432.5. end delete
begin insert 910.3. end insert   

(a) The commission shall report to the Legislature the
collections from each class of utility and expenditures, both direct
and indirect, for regulatory and other authorized commission
activities affecting each class. Where expenditures are for overhead,
allocations of services common to several classes, or for
commission-wide activities, the methods used to calculate the
expenditures attributed to the class shall be described in reasonable
detail.

(b) The report shall be furnished to the Legislature within 60
days after the end of the fiscal year, and shall be subject to audit.
The commission shall maintain information and reports necessary
to perform an audit pursuant to this section.

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 740.3 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

740.3.  

(a) The commission, in cooperation with the State
Energy Conservation and Development Commission, the State Air
Resources Board, air quality management districts and air pollution
control districts, regulated electrical and gas corporations, and the
motor vehicle industry, shall evaluate and implement policies to
promote the development of equipment and infrastructure needed
to facilitate the use of electric power and natural gas to fuel
low-emission vehicles. Policies to be considered shall include both
of the following:

(1) The sale-for-resale and the rate-basing of low-emission
vehicles and supporting equipment such as batteries for electric
vehicles and compressor stations for natural gas fueled vehicles.

(2) The development of statewide standards for electric vehicle
charger connections and compressed natural gas vehicle fueling
connections, including installation procedures and technical
assistance to installers.

(b) The commission shall hold public hearings as part of its
effort to evaluate and implement the new policies considered in
subdivision begin delete (a), and shall provide a progress report to the
Legislature by January 30, 1993, and every two years thereafter,
concerning policies on rates, equipment, and infrastructure
implemented by the commission and other state agencies, federal
and local governmental agencies, and private industry to facilitate
the use of electric power and natural gas to fuel low-emission
vehicles. end delete begin insert (a). end insert

(c) The commission’s policies authorizing utilities to develop
equipment or infrastructure needed for electric-powered and natural
gas-fueled low-emission vehicles shall ensure that the costs and
expenses of those programs are not passed through to electric or
gas ratepayers unless the commission finds and determines that
those programs are in the ratepayers’ interest. The commission’s
policies shall also ensure that utilities do not unfairly compete with
nonutility enterprises.

begin delete SEC. 6. end delete
begin insert SEC. 19. end insert   

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

747.  

It is the intent of the Legislature that the commission
reduce rates for electricity and natural gas to the lowest amount
possible.

begin delete SEC. 7. end delete
begin insert SEC. 20. end insert   

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

begin delete 913.1. end delete
begin insert 913.9. 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 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.

begin delete SEC. 8. end delete
begin insert SEC. 21. end insert   

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

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 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.

begin delete SEC. 9. end delete
begin insert SEC. 22. end insert   

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, begin delete to end delete a commission-regulated rail operator, or begin delete to end delete 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 begin delete recommendations end delete
begin insert recommendation end insert 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.

begin delete

(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 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 910.

end delete

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 765.6 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 765.6. end delete
begin insert 916.3. end insert   

begin insert (a) end insert begin insert   end insert The commission shall begin insert annually end insert report to the
Legislature begin insert on or before November 30 of each year end insert on begin delete the end delete begin insert its end insert
compliance with the requirements of Section begin delete 765.5, as added by
Chapter 763 of the Statutes of 1991, on or before January 1, 1993,
and annually thereafter. Commencing in 1996, the report shall be
submitted on or before November 30 of each year. end delete begin insert 765.5. end insert The
annual report shall include a determination by the commission of
the impact on competition, if any, of the regulatory fees assessed
railroad corporations and motor carriers for the support of the
commission’s activities.

begin insert

(b) The commission may combine the information required by
this section with the report prepared pursuant to Section 916.

end insert

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 785 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

785.  

begin delete (a) end delete begin delete   end delete To the extent consistent with federal law and
regulation and contractual obligations regarding other available
gas, the commission shall, in consultation with the Division of Oil
and Gas of the Department of Conservation and with the State
Energy Resources Conservation and Development Commission,
encourage, as a first priority, the increased production of gas in
this state, including gas produced from that area of the Pacific
Ocean along the coast of California commonly known as the outer
continental shelf, and shall require, after a hearing, every gas
corporation to purchase that gas which is compatible with the
corporation’s gas plant and which is produced in this state having
an actual delivered cost, measured in equivalent heat units, equal
to or less than other available gas, unless this requirement will
result in higher overall costs of gas or other consequences adverse
to the interests of gas customers.

begin delete

(b) The commission shall annually report to the Legislature on
its implementation of this section.

end delete

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 873 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

873.  

(a)  begin delete (1) end delete begin delete   end delete The commission shall annually do all of the
following:

begin delete

(A)

end delete

begin insert (1) end insert  Designate a class of lifeline service necessary to meet
minimum communications needs.

begin delete

(B)

end delete

begin insert (2) end insert  Set the rates and charges for that service.

begin delete

(C)

end delete

begin insert (3) end insert  Develop eligibility criteria for that service.

begin delete

(D)

end delete

begin insert (4) end insert  Assess the degree of achievement of universal service,
including telephone penetration rates by income, ethnicity, and
geography.

begin delete

(2) This information shall be annually reported to the Legislature
by the commission in a document which can be made public.

end delete

(b) Minimum communications needs includes, but is not limited
to, the ability to originate and receive calls and the ability to access
electronic information services.

begin delete SEC. 10. end delete
begin insert SEC. 26. end insert   

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

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.

begin delete SEC. 11. end delete
begin insert SEC. 27. end insert   

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.

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 910.4 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 910.4. end insert   

(a) The commission shall provide a report to the
Legislature on September 1 of each year, on the progress of
activities undertaken by each electrical, gas, water, wireless
telecommunications service provider, and telephone corporation
with gross annual revenues exceeding twenty-five million dollars
($25,000,000), in the implementation of women, minority, disabled
veteran, and LGBT business enterprise development programs
pursuant to Article 5 (commencing with Section 8281) of Chapter
7 of Division 4. The report shall include information about which
procurements are made with women, minority, disabled veteran,
and LGBT business enterprises with at least a majority of the
enterprise’s workforce in California, to the extent that information
is readily accessible. The commission shall recommend a program
for carrying out the policy declared in Article 5 (commencing with
Section 8281) of Chapter 7 of Division 4, together with
recommendations for legislation that it deems necessary or
desirable to further that policy. The commission shall make the
report available on its Internet Web site.

(b) In regard to disabled veteran business enterprises, the
commission shall ensure that the programs and legislation
recommended pursuant to subdivision (a) are consistent with the
disabled veteran business enterprise certification eligibility
requirements imposed by the Department of General Services and
that the recommendations include only those disabled veteran
business enterprises certified by the Department of General
Services.

(c) The commission shall include the information about LGBT
business enterprises required by subdivision (a) beginning with
the report due on September 1, 2016.

end insert

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 910.7 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 910.7. end insert   

It is the intent of the Legislature that, commencing one
year from the date that the procedures described in subdivision
(a) of Section 311.4 are implemented, the commission annually
review the procedures and the technology involved to ensure the
continued effectiveness of the program, and report any findings
to the Legislature.

end insert

begin delete SEC. 12. end delete
begin insert SEC. 30. end insert   

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

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 913.3.

begin delete

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.

end delete

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 912.2 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 912.2. end insert   

(a) The commission shall conduct two interim financial
audits and a final financial audit and two interim performance
audits and a final performance audit of the implementation and
effectiveness of the California Advanced Services Fund to ensure
that funds have been expended in accordance with the approved
terms of the grant awards and loan agreements pursuant to Section
281. The commission shall report its interim findings to the
Legislature by April 1, 2011, and April 1, 2017. The commission
shall report its final findings to the Legislature by April 1, 2021.
The reports shall also include an update to the maps in the final
report of the California Broadband Task Force and data on the
types and numbers of jobs created as a result of the program
administered by the commission pursuant to Section 281.

(b) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2022.

end insert

begin delete SEC. 14. end delete
begin insert SEC. 32. end insert   

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.

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 913.5 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 913.5. end insert   

In order to evaluate the progress of the state’s electrical
corporations in complying with the California Renewables
Portfolio Standard Program (Article 16 (commencing with Section
399.11) of Chapter 2.3), the commission shall report to the
Legislature on or before the first day of each quarter on all of the
following:

(a) The progress of each electrical corporation in meeting the
renewables portfolio standard, as defined in Section 399.12.

(b) For each electrical corporation, an implementation schedule
to achieve the renewables portfolio standard procurement
requirements, including all substantive actions that have been
taken or will be taken to achieve the program procurement
requirements.

(c) Any renewable energy procurement plan approved by the
commission pursuant to Section 399.13, schedule, and status report
for all substantive procurement, transmission development, and
other activities that the commission has approved to be undertaken
by an electrical corporation to achieve the procurement
requirements of the renewables portfolio standard.

end insert

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 913.8 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 913.8. end insert   

In the report prepared pursuant to Section 913.7, the
commission shall include an assessment of each electrical
corporation’s and each gas corporation’s implementation of the
program developed pursuant to Section 25943 of the Public
Resources Code.

end insert

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 913.12 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 913.12. end insert   

The commission shall provide a progress report to the
Legislature by January 30 of each odd numbered year concerning
policies on rates, equipment, and infrastructure implemented by
the commission and other state agencies, federal and local
governmental agencies, and private industry to facilitate the use
of electricity to power, and natural gas to fuel, low-emission
vehicles.

end insert

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 913.13 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 913.13. end insert   

On or before June 30 of each year, the commission
shall submit to the Legislature an assessment of the success of the
California Solar Initiative program. That assessment shall include
the number of residential and commercial sites that have installed
solar thermal devices for which an award was made pursuant to
subdivision (b) of Section 2851 and the dollar value of the award,
the number of residential and commercial sites that have installed
solar energy systems, the electrical generating capacity of the
installed solar energy systems, the cost of the program, total
electrical system benefits, including the effect on electrical service
rates, environmental benefits, how the program affects the
operation and reliability of the electrical grid, how the program
has affected peak demand for electricity, the progress made toward
reaching the goals of the program, whether the program is on
schedule to meet the program goals, and recommendations for
improving the program to meet its goals. If the commission
allocates additional moneys to research, development, and
demonstration that explores solar technologies and other
distributed generation technologies pursuant to paragraph (1) of
subdivision (c) of Section 2851, the commission shall include in
the assessment submitted to the Legislature, a description of the
program, a summary of each award made or project funded
pursuant to the program, including the intended purposes to be
achieved by the particular award or project, and the results of
each award or project.

end insert

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 913.14 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 913.14. end insert   

The commission shall annually report to the Legislature
on its implementation of Section 785.

end insert

begin insert

begin insert SEC. 38. end insert   

end insert

begin insert Section 913.15 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 913.15. end insert   

An action taken by the commission on a safety
recommendation letter or advisory bulletin concerning gas pipeline
safety issued by the federal National Transportation Safety Board
(NTSB) shall be reported annually, in detail, to the Legislature
with the report required by Section 910. 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 910.

end insert

begin insert

begin insert SEC. 39. 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 annually report the information
required to be reported by public utilities pursuant to Section 7912,
to the Assembly Committee on Utilities and Commerce and the
Senate Committee on Energy, Utilities and Communications, or
their successor committees, and within a reasonable time
thereafter, shall make the information available to the public on
its Internet Web site.

end insert

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 914.1 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 914.1. end insert   

The commission shall annually report to the Legislature,
in a document that can be made public, information relative to the
actions undertaken by the commission implementing the lifeline
telecommunications universal service program pursuant to
subdivision (a) of Section 873.

end insert

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Section 914.2 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 914.2. end insert   

The commission, in its annual report prepared pursuant
to Section 914.1, shall assess whether having telephone
corporations provide the name and address of its lifeline customers
to other public utilities for the purpose of low-income ratepayer
assistance outreach efforts has been helpful in the low-income
ratepayer assistance outreach efforts.

end insert

begin insert

begin insert SEC. 42. end insert   

end insert

begin insert Section 914.3 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 914.3. end insert   

By July 1 each year, the commission shall submit to the
Governor and the Legislature a report that includes, based on
year-end data, on an aggregated basis, the information submitted
by holders pursuant to subdivision (b) of Section 5960. All
information submitted to the commission and reported by the
commission pursuant to this section shall be disclosed to the public
only as provided for pursuant to Section 583. No individually
identifiable customer or subscriber information shall be subject
to public disclosure.

end insert

begin insert

begin insert SEC. 43. end insert   

end insert

begin insert Section 914.4 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 914.4. end insert   

The commission shall annually report the information
required to be reported by holders of state franchises pursuant to
Section 5920, to the Assembly Committee on Utilities and
Commerce and the Senate Committee on Energy, Utilities and
Communications, or their successor committees, and within a
reasonable time thereafter, shall make the information available
to the public on its Internet Web site.

end insert

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Section 914.5 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 914.5. end insert   

(a) The commission shall prepare and submit to the
Legislature, on or before March 1 of each year, a report on the
fiscal status of the programs established and funded pursuant to
Sections 2881, 2881.1, and 2881.2. The report shall include a
statement of the surcharge level established pursuant to subdivision
(g) of Section 2881 and revenues produced by the surcharge, an
accounting of program expenses, and an evaluation of options for
controlling those expenses and increasing program efficiency,
including, but not limited to, all of the following proposals:

(1) The establishment of a means test for persons to qualify for
program equipment or free or reduced charges for the use of
telecommunication services.

(2) If and to the extent not prohibited under Section 401 of the
federal Americans with Disabilities Act of 1990 (Public Law
101-336), as amended (47 U.S.C. Sec. 225), the imposition of limits
or other restrictions on maximum usage levels for the relay service,
which shall include the development of a program to provide basic
communications requirements to all relay users at discounted
rates, including discounted toll-call rates, and, for usage in excess
of those basic requirements, at rates that recover the full costs of
service.

(3) More efficient means for obtaining and distributing
equipment to qualified subscribers.

(4) The establishment of quality standards for increasing the
efficiency of the relay system.

(5) Any modification to the program in order to maximize
participation and funding opportunity under similar federal
programs.

(b) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2021.

end insert

begin delete SEC. 15. end delete
begin insert SEC. 45. end insert   

Section begin delete 914 end delete begin insert 914.6 end insert is added to the Public Utilities
Code, to read:

begin delete 914. end delete
begin insert 914.6. 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.

begin insert

begin insert SEC. 46. end insert   

end insert

begin insert Section 914.7 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 914.7. end insert   

(a) By January 1 each year, the commission shall
provide a report to the Legislature that includes all of the following
information:

(1) The amount of funds expended from the California Advanced
Services Fund in the prior year.

(2) The recipients of funds expended from the California
Advanced Services Fund in the prior year.

(3) The geographic regions of the state affected by funds
expended from the California Advanced Services Fund in the prior
year.

(4) The expected benefits to be derived from the funds expended
from the California Advanced Services Fund in the prior year.

(5) Actual broadband adoption levels from the funds expended
from the California Advanced Services Fund in the prior year.

(6) The amount of funds expended from the California Advanced
Services Fund used to match federal funds.

(7) An update on the expenditures from California Advanced
Services Fund and broadband adoption levels, and an accounting
of remaining unserved and underserved households and areas of
the state.

(8) The status of the California Advanced Services Fund balance
and the projected amount to be collected in each year through
2020 to fund approved projects.

(b) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2021.

end insert

begin delete SEC. 16. end delete
begin insert SEC. 47. end insert   

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

begin delete 911.1. end delete
begin insert 911. 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 begin delete work plan end delete begin insert workplan, end insert
required pursuant to Section 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).

begin insert

begin insert SEC. 48. end insert   

end insert

begin insert Section 916 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 916. end insert   

On or before November 30 of each year, the commission
shall report to the Legislature on its rail safety activities.

end insert

begin insert

begin insert SEC. 49. end insert   

end insert

begin insert Section 916.1 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 916.1. end insert   

The division of the commission responsible for consumer
protection and safety shall investigate any incident that results in
a notification required pursuant to subdivision (b) of Section 7661,
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 916.2.

end insert

begin insert

begin insert SEC. 50. end insert   

end insert

begin insert Section 916.4 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 916.4. end insert   

An action taken by the commission on a safety
recommendation letter or safety advisory pursuant to Section 765
shall be reported annually, in detail, to the Legislature with the
report required by Section 910. Correspondence from the federal
National Transportation Safety Board indicating that a
recommendation has been closed following an action that the
federal National Transportation Safety Board finds unacceptable
shall be noted in the report required by Section 910.

end insert

begin insert

begin insert SEC. 51. end insert   

end insert

begin insert Section 919 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 919. end insert   

The Independent System Operator shall report to the
Oversight Board, at such times as the Oversight Board may specify,
on the development and implementation of the standards in relation
to facilities under the operational control of the Independent
System Operator. The Independent System Operator shall require
each transmission facility owner or operator to report annually
on its compliance with the standards. That report shall be made
available to the public.

end insert

begin insert

begin insert SEC. 52. end insert   

end insert

begin insert Section 919.1 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 919.1. end insert   

The commission shall require each electrical
corporation to report annually on its compliance with the standards
or rules adopted by the commission pursuant to Section 364. That
report shall be made available to the public, except that the
commission may, consistent with other provisions of law, withhold
from the public information generated or obtained pursuant to
this section that it deems would pose a security threat to the public
if disclosed.

end insert

begin insert

begin insert SEC. 53. end insert   

end insert

begin insert Section 919.2 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 919.2. end insert   

(a) The Antelope Valley Fairgrounds shall submit
biennial reports to the commission and to the Legislature relative
to the Antelope Valley Fairgrounds EE and PV Synergy
Demonstration Project. The reports shall include actual recorded
electricity usage by the fairgrounds and electricity produced by
the photovoltaic solar energy system at the fairgrounds, on a
time-of-use basis. A final report shall be submitted to the
commission and to the Legislature within six months of the
conclusion of the demonstration project. The final report shall
include an analysis of the energy and cost savings achieved at the
fairgrounds, the effectiveness of combining investment in energy
efficiency and a photovoltaic solar energy system on the same site,
the performance and durability of the photovoltaic solar energy
system over the life of the demonstration project, and
recommendations for optimizing ratepayer investment in energy
efficiency and photovoltaic solar energy systems.

(b) This section shall remain in effect only until January 1, 2017,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2017, deletes or extends that date.

end insert

begin delete SEC. 17. end delete
begin insert SEC. 54. end insert   

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 division of the commission
responsible for consumer protection and safety a gas transmission
and storage safety report. The division of the commission
responsible for consumer protection and safety 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 division of the commission responsible for consumer
protection and safety 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 delete SEC. 18. end delete
begin insert SEC. 55. end insert   

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 begin delete to end delete 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 begin delete recommendations end delete
begin insert recommendation end insert 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.

begin delete

(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 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.

end delete

begin insert

begin insert SEC. 56. end insert   

end insert

begin insert Section 2851 of the end insert begin insert Public Utilities Code end insert begin insert , as amended
by Section 41 of Chapter 24 of the Statutes of 2015, is amended
to read: end insert

2851.  

(a) In implementing the California Solar Initiative, the
commission shall do all of the following:

(1) (A) The commission shall authorize the award of monetary
incentives for up to the first megawatt of alternating current
generated by solar energy systems that meet the eligibility criteria
established by the Energy Commission pursuant to Chapter 8.8
(commencing with Section 25780) of Division 15 of the Public
Resources Code. The commission shall determine the eligibility
of a solar energy system, as defined in Section 25781 of the Public
Resources Code, to receive monetary incentives until the time the
Energy Commission establishes eligibility criteria pursuant to
Section 25782. Monetary incentives shall not be awarded for solar
energy systems that do not meet the eligibility criteria. The
incentive level authorized by the commission shall decline each
year following implementation of the California Solar Initiative,
at a rate of no less than an average of 7 percent per year, and,
except as provided in subparagraph (B), shall be zero as of
December 31, 2016. The commission shall adopt and publish a
schedule of declining incentive levels no less than 30 days in
advance of the first decline in incentive levels. The commission
may develop incentives based upon the output of electricity from
the system, provided those incentives are consistent with the
declining incentive levels of this paragraph and the incentives
apply to only the first megawatt of electricity generated by the
system.

(B) The incentive level for the installation of a solar energy
system pursuant to Section 2852 shall be zero as of December 31,
2021.

(2) The commission shall adopt a performance-based incentive
program so that by January 1, 2008, 100 percent of incentives for
solar energy systems of 100 kilowatts or greater and at least 50
percent of incentives for solar energy systems of 30 kilowatts or
greater are earned based on the actual electrical output of the solar
energy systems. The commission shall encourage, and may require,
performance-based incentives for solar energy systems of less than
30 kilowatts. Performance-based incentives shall decline at a rate
of no less than an average of 7 percent per year. In developing the
performance-based incentives, the commission may:

(A) Apply performance-based incentives only to customer
classes designated by the commission.

(B) Design the performance-based incentives so that customers
may receive a higher level of incentives than under incentives
based on installed electrical capacity.

(C) Develop financing options that help offset the installation
costs of the solar energy system, provided that this financing is
ultimately repaid in full by the consumer or through the application
of the performance-based rebates.

(3) By January 1, 2008, the commission, in consultation with
the Energy Commission, shall require reasonable and cost-effective
energy efficiency improvements in existing buildings as a condition
of providing incentives for eligible solar energy systems, with
appropriate exemptions or limitations to accommodate the limited
financial resources of low-income residential housing.

(4) Notwithstanding subdivision (g) of Section 2827, the
commission may develop a time-variant tariff that creates the
maximum incentive for ratepayers to install solar energy systems
so that the system’s peak electricity production coincides with
California’s peak electricity demands and that ensures that
ratepayers receive due value for their contribution to the purchase
of solar energy systems and customers with solar energy systems
continue to have an incentive to use electricity efficiently. In
developing the time-variant tariff, the commission may exclude
customers participating in the tariff from the rate cap for residential
customers for existing baseline quantities or usage by those
customers of up to 130 percent of existing baseline quantities, as
required by Section 739.9. Nothing in this paragraph authorizes
the commission to require time-variant pricing for ratepayers
without a solar energy system.

(b) Notwithstanding subdivision (a), in implementing the
California Solar Initiative, the commission may authorize the award
of monetary incentives for solar thermal and solar water heating
devices, in a total amount up to one hundred million eight hundred
thousand dollars ($100,800,000).

(c) (1) In implementing the California Solar Initiative, the
commission shall not allocate more than fifty million dollars
($50,000,000) to research, development, and demonstration that
explores solar technologies and other distributed generation
technologies that employ or could employ solar energy for
generation or storage of electricity or to offset natural gas usage.
Any program that allocates additional moneys to research,
development, and demonstration shall be developed in
collaboration with the Energy Commission to ensure there is no
duplication of efforts, and adopted by the commission through a
rulemaking or other appropriate public proceeding. Any grant
awarded by the commission for research, development, and
demonstration shall be approved by the full commission at a public
meeting. This subdivision does not prohibit the commission from
continuing to allocate moneys to research, development, and
demonstration pursuant to the self-generation incentive program
for distributed generation resources originally established pursuant
to Chapter 329 of the Statutes of 2000, as modified pursuant to
Section 379.6.

(2) The Legislature finds and declares that a program that
provides a stable source of monetary incentives for eligible solar
energy systems will encourage private investment sufficient to
make solar technologies cost effective.

begin delete

(3) On or before June 30, 2009, and by June 30th of every year
thereafter, the commission shall submit to the Legislature an
assessment of the success of the California Solar Initiative program.
That assessment shall include the number of residential and
commercial sites that have installed solar thermal devices for which
an award was made pursuant to subdivision (b) and the dollar value
of the award, the number of residential and commercial sites that
have installed solar energy systems, the electrical generating
capacity of the installed solar energy systems, the cost of the
program, total electrical system benefits, including the effect on
electrical service rates, environmental benefits, how the program
affects the operation and reliability of the electrical grid, how the
program has affected peak demand for electricity, the progress
made toward reaching the goals of the program, whether the
program is on schedule to meet the program goals, and
recommendations for improving the program to meet its goals. If
the commission allocates additional moneys to research,
development, and demonstration that explores solar technologies
and other distributed generation technologies pursuant to paragraph
(1), the commission shall include in the assessment submitted to
the Legislature, a description of the program, a summary of each
award made or project funded pursuant to the program, including
the intended purposes to be achieved by the particular award or
project, and the results of each award or project.

end delete

(d) (1) The commission shall not impose any charge upon the
consumption of natural gas, or upon natural gas ratepayers, to fund
the California Solar Initiative.

(2) Notwithstanding any other provision of law, any charge
imposed to fund the program adopted and implemented pursuant
to this section shall be imposed upon all customers not participating
in the California Alternate Rates for Energy (CARE) or family
electric rate assistance (FERA) programs, including those
residential customers subject to the rate limitation specified in
Section 739.9 for existing baseline quantities or usage up to 130
percent of existing baseline quantities of electricity.

(3) The costs of the program adopted and implemented pursuant
to this section shall not be recovered from customers participating
in the California Alternate Rates for Energy or CARE program
established pursuant to Section 739.1, except to the extent that
program costs are recovered out of the nonbypassable system
benefits charge authorized pursuant to Section 399.8.

(e) Except as provided in subdivision (f), in implementing the
California Solar Initiative, the commission shall ensure that the
total cost over the duration of the program does not exceed three
billion five hundred fifty million eight hundred thousand dollars
($3,550,800,000). Except as provided in subdivision (f), financial
components of the California Solar Initiative shall consist of the
following:

(1) Programs under the supervision of the commission funded
by charges collected from customers of San Diego Gas and Electric
Company, Southern California Edison Company, and Pacific Gas
and Electric Company. Except as provided in subdivision (f), the
total cost over the duration of these programs shall not exceed two
billion three hundred sixty-six million eight hundred thousand
dollars ($2,366,800,000) and includes moneys collected directly
into a tracking account for support of the California Solar Initiative.

(2) Programs adopted, implemented, and financed in the amount
of seven hundred eighty-four million dollars ($784,000,000), by
charges collected by local publicly owned electric utilities pursuant
to Section 2854. Nothing in this subdivision shall give the
commission power and jurisdiction with respect to a local publicly
owned electric utility or its customers.

(3) (A) Programs for the installation of solar energy systems
on new construction (New Solar Homes Partnership Program),
administered by the Energy Commission, and funded by charges
in the amount of four hundred million dollars ($400,000,000),
collected from customers of San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company. If the commission is notified by the Energy Commission
that funding available pursuant to Section 25751 of the Public
Resources Code for the New Solar Homes Partnership Program
and any other funding for the purposes of this paragraph have been
exhausted, the commission may require an electrical corporation
to continue administration of the program pursuant to the guidelines
established for the program by the Energy Commission, until the
funding limit authorized by this paragraph has been reached. The
commission may determine whether a third party, including the
Energy Commission, should administer the utility’s continuation
of the New Solar Homes Partnership Program. The commission,
in consultation with the Energy Commission, shall supervise the
administration of the continuation of the New Solar Homes
Partnership Program by an electrical corporation or third-party
administrator. After the exhaustion of funds, the Energy
Commission shall notify the Joint Legislative Budget Committee
30 days prior to the continuation of the program. This subparagraph
shall become inoperative on June 1, 2018.

(B) If the commission requires a continuation of the program
pursuant to subparagraph (A), any funding made available pursuant
to the continuation program shall be encumbered through the
issuance of rebate reservations by no later than June 1, 2018, and
disbursed by no later than December 31, 2021.

(4) The changes made to this subdivision by Chapter 39 of the
Statutes of 2012 do not authorize the levy of a charge or any
increase in the amount collected pursuant to any existing charge,
nor do the changes add to, or detract from, the commission’s
existing authority to levy or increase charges.

(f) Upon the expenditure or reservation in any electrical
corporation’s service territory of the amount specified in paragraph
(1) of subdivision (e) for low-income residential housing programs
pursuant to subdivision (c) of Section 2852, the commission shall
authorize the continued collection of the charge for the purposes
of Section 2852. The commission shall ensure that the total amount
collected pursuant to this subdivision does not exceed one hundred
eight million dollars ($108,000,000). Upon approval by the
commission, an electrical corporation may use amounts collected
pursuant to subdivision (e) for purposes of funding the general
market portion of the California Solar Initiative, that remain
unspent and unencumbered after December 31, 2016, to reduce
the electrical corporation’s portion of the total amount collected
pursuant to this subdivision.

begin insert

begin insert SEC. 57. end insert   

end insert

begin insert Section 2881 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

2881.  

(a) The commission shall design and implement a
program to provide a telecommunications device capable of serving
the needs of individuals who are deaf or hearing impaired, together
with a single party line, at no charge additional to the basic
exchange rate, to a subscriber who is certified as an individual
who is deaf or hearing impaired by a licensed physician and
surgeon, audiologist, or a qualified state or federal agency, as
determined by the commission, and to a subscriber that is an
organization representing individuals who are deaf or hearing
impaired, as determined and specified by the commission pursuant
to subdivision (h). A licensed hearing aid dispenser may certify
the need of an individual to participate in the program if that
individual has been previously fitted with an amplified device by
the dispenser and the dispenser has the individual’s hearing records
on file prior to certification. In addition, a physician assistant may
certify the needs of an individual who has been diagnosed by a
physician and surgeon as being deaf or hearing impaired to
participate in the program after reviewing the medical records or
copies of the medical records containing that diagnosis.

(b) The commission shall also design and implement a program
to provide a dual-party relay system, using third-party intervention
to connect individuals who are deaf or hearing impaired and offices
of organizations representing individuals who are deaf or hearing
impaired, as determined and specified by the commission pursuant
to subdivision (h), with persons of normal hearing by way of
intercommunications devices for individuals who are deaf or
hearing impaired and the telephone system, making available
reasonable access of all phases of public telephone service to
telephone subscribers who are deaf or hearing impaired. In order
to make a dual-party relay system that will meet the requirements
of individuals who are deaf or hearing impaired available at a
reasonable cost, the commission shall initiate an investigation,
conduct public hearings to determine the most cost-effective
method of providing dual-party relay service to the deaf or hearing
impaired when using a telecommunications device, and solicit the
advice, counsel, and physical assistance of statewide nonprofit
consumer organizations of the deaf, during the development and
implementation of the system. The commission shall apply for
certification of this program under rules adopted by the Federal
Communications Commission pursuant to Section 401 of the
federal Americans with Disabilities Act of 1990 (Public Law
101-336).

(c) The commission shall also design and implement a program
whereby specialized or supplemental telephone communications
equipment may be provided to subscribers who are certified to be
disabled at no charge additional to the basic exchange rate. The
certification, including a statement of visual or medical need for
specialized telecommunications equipment, shall be provided by
a licensed optometrist, physician and surgeon, or physician
assistant, acting within the scope of practice of his or her license,
or by a qualified state or federal agency as determined by the
commission. The commission shall, in this connection, study the
feasibility of, and implement, if determined to be feasible, personal
income criteria, in addition to the certification of disability, for
determining a subscriber’s eligibility under this subdivision.

(d) (1) The commission shall also design and implement a
program to provide access to a speech-generating device to any
subscriber who is certified as having a speech disability at no
charge additional to the basic exchange rate. The certification shall
be provided by a licensed physician, licensed speech-language
pathologist, or qualified state or federal agency. The commission
shall provide to a certified subscriber access to a speech-generating
device that is all of the following:

(A) A telecommunications device or a device that includes a
telecommunications component.

(B) Appropriate to meet the subscriber’s needs for access to,
and use of, the telephone network, based on the recommendation
of a licensed speech-language pathologist.

(C) Consistent with the quality of speech-generating devices
available for purchase in the state.

(2) The commission shall adopt rules to implement this
subdivision and subdivision (e) by January 1, 2014.

(e) All of the following apply to any device or equipment
described in this section that is classified as durable medical
equipment under guidelines established by the United States
Department of Health and Human Services:

(1) It is the intent of the Legislature that the commission be the
provider of last resort and that eligible subscribers first obtain
coverage from any available public or private insurance.

(2) The commission may require the subscriber to provide
information about coverage for any or all of the cost of the device
or equipment that is available from any public or private insurance,
the cost to the subscriber of any deductible, copayment, or other
relevant expense, and any related benefit cap information.

(3) The total cost of any device or equipment provided to a
subscriber under this section shall not exceed the rate of
reimbursement provided by Medi-Cal for that device or equipment.

(f) Nothing in this section requires the commission to provide
training to a subscriber on the use of a speech-generating device.

(g) The commission shall establish a rate recovery mechanism
through a surcharge not to exceed one-half of 1 percent uniformly
applied to a subscriber’s intrastate telephone service, other than
one-way radio paging service and universal telephone service,
both within a service area and between service areas, to allow
providers of the equipment and service specified in subdivisions
(a), (b), (c), and (d) to recover costs as they are incurred under this
section. The surcharge shall be in effect until January 1, 2020. The
commission shall require that the programs implemented under
this section be identified on subscribers’ bills, and shall establish
a fund and require separate accounting for each of the programs
implemented under this section.

(h) The commission shall determine and specify those statewide
organizations representing the deaf or hearing impaired that shall
receive a telecommunications device pursuant to subdivision (a)
or a dual-party relay system pursuant to subdivision (b), or both,
and in which offices the equipment shall be installed in the case
of an organization having more than one office.

(i) The commission may direct a telephone corporation subject
to its jurisdiction to comply with its determinations and
specifications pursuant to this section.

(j) The commission shall annually review the surcharge level
and the balances in the funds established pursuant to subdivision
(g). Until January 1, 2020, the commission may make, within the
limits set by subdivision (g), any necessary adjustments to the
surcharge to ensure that the programs supported thereby are
adequately funded and that the fund balances are not excessive. A
fund balance that is projected to exceed six months’ worth of
projected expenses at the end of the fiscal year is excessive.

begin delete

(k) The commission shall prepare and submit to the Legislature,
on or before March 1 of each year, a report on the fiscal status of
the programs established and funded pursuant to this section and
Sections 2881.1 and 2881.2. The report shall include a statement
of the surcharge level established pursuant to subdivision (g) and
revenues produced by the surcharge, an accounting of program
expenses, and an evaluation of options for controlling those
expenses and increasing program efficiency, including, but not
limited to, all of the following proposals:

(1) The establishment of a means test for persons to qualify for
program equipment or free or reduced charges for the use of
telecommunication services.

(2) If and to the extent not prohibited under Section 401 of the
federal Americans with Disabilities Act of 1990 (Public Law
101-336), as amended (47 U.S.C. Sec. 225), the imposition of
limits or other restrictions on maximum usage levels for the relay
service, which shall include the development of a program to
provide basic communications requirements to all relay users at
discounted rates, including discounted toll-call rates, and, for usage
in excess of those basic requirements, at rates that recover the full
costs of service.

(3) More efficient means for obtaining and distributing
equipment to qualified subscribers.

(4) The establishment of quality standards for increasing the
efficiency of the relay system.

(5) Any modification to the program in order to maximize
participation and funding opportunity under similar federal
programs.

(l) The report described in subdivision (k) that is due no later
than March 1, 2014, shall evaluate options for controlling the
program costs of providing speech-generating devices and include
information on any barriers to participation in the program by
eligible subscribers.

(m)

end delete

begin insert (k) end insert  In order to continue to meet the access needs of individuals
with functional limitations of hearing, vision, movement,
manipulation, speech, and interpretation of information, the
commission shall perform ongoing assessment of, and if
appropriate, expand the scope of the program to allow for
additional access capability consistent with evolving
telecommunications technology.

begin delete

(n)

end delete

begin insert (l) end insert  The commission shall structure the programs required by
this section so that a charge imposed to promote the goals of
universal service reasonably equals the value of the benefits of
universal service to contributing entities and their subscribers.

begin delete

(o) (1) The requirement for submitting a report imposed under
subdivision (k) is inoperative on January 1, 2021, pursuant to
Section 10231.5 of the Government Code.

(2) A report submitted pursuant to subdivision (k) shall be
submitted in compliance with Section 9795 of the Government
Code.

end delete

begin insert

begin insert SEC. 58. end insert   

end insert

begin insert Section 2891 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

2891.  

(a) No telephone or telegraph corporation shall make
available to any other person or corporation, without first obtaining
the residential subscriber’s consent, in writing, any of the following
information:

(1) The subscriber’s personal calling patterns, including any
listing of the telephone or other access numbers called by the
subscriber, but excluding the identification to the person called of
the person calling and the telephone number from which the call
was placed, subject to the restrictions in Section 2893, and also
excluding billing information concerning the person calling which
federal law or regulation requires a telephone corporation to
provide to the person called.

(2) The residential subscriber’s credit or other personal financial
information, except when the corporation is ordered by the
commission to provide this information to any electrical, gas, heat,
telephone, telegraph, or water corporation, or centralized credit
check system, for the purpose of determining the creditworthiness
of new utility subscribers.

(3) The services which the residential subscriber purchases from
the corporation or from independent suppliers of information
services who use the corporation’s telephone or telegraph line to
provide service to the residential subscriber.

(4) Demographic information about individual residential
subscribers, or aggregate information from which individual
identities and characteristics have not been removed.

(b) Any residential subscriber who gives his or her written
consent for the release of one or more of the categories of personal
information specified in subdivision (a) shall be informed by the
telephone or telegraph corporation regarding the identity of each
person or corporation to whom the information has been released,
upon written request. The corporation shall notify every residential
subscriber of the provisions of this subdivision whenever consent
is requested pursuant to this subdivision.

(c) Any residential subscriber who has, pursuant to subdivision
(b), given written consent for the release of one or more of the
categories of personal information specified in subdivision (a) may
rescind this consent upon submission of a written notice to the
telephone or telegraph corporation. The corporation shall cease to
make available any personal information about the subscriber,
within 30 days following receipt of notice given pursuant to this
subdivision.

(d) This section does not apply to any of the following:

(1) Information provided by residential subscribers for inclusion
in the corporation’s directory of subscribers.

(2) Information customarily provided by the corporation through
directory assistance services.

(3) Postal ZIP Code information.

(4) Information provided under supervision of the commission
to a collection agency by the telephone corporation exclusively
for the collection of unpaid debts.

(5) Information provided to an emergency service agency
responding to a 911 telephone call or any other call communicating
an imminent threat to life or property.

(6) Information provided to a law enforcement agency in
response to lawful process.

(7) Information which is required by the commission pursuant
to its jurisdiction and control over telephone and telegraph
corporations.

(8) Information transmitted between telephone or telegraph
corporations pursuant to the furnishing of telephone service
between or within service areas.

(9) Information required to be provided by the corporation
pursuant to rules and orders of the commission or the Federal
Communications Commission regarding the provision over
telephone lines by parties other than the telephone and telegraph
corporations of telephone or information services.

(10) The name and address of the lifeline customers of a
telephone corporation provided by that telephone corporation to
a public utility for the sole purpose of low-income ratepayer
assistance outreach efforts. The telephone corporation receiving
the information request pursuant to this paragraph may charge the
requesting utility for the cost of the search and release of the
requested information. begin delete The commission, in its annual low-income
ratepayer assistance report, shall assess whether this information
has been helpful in the low-income ratepayer assistance outreach
efforts. end delete

(11) Information provided in response to a request pursuant to
subdivision (a) of Section 530.8 of the Penal Code.

(e) Every violation is a grounds for a civil suit by the aggrieved
residential subscriber against the telephone or telegraph corporation
and its employees responsible for the violation.

(f) For purposes of this section, “access number” means a telex,
teletex, facsimile, computer modem, or any other code which is
used by a residential subscriber of a telephone or telegraph
corporation to direct a communication to another subscriber of the
same or another telephone or telegraph corporation.

begin delete SEC. 19. end delete
begin insert SEC. 59. end insert   

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

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 Chapter
6 (commencing with Section 5001) of Division 2 during the
preceding biennium, including a complete statement of receipts
and expenditures during the period.

begin delete SEC. 20. end delete
begin insert SEC. 60. end insert   

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

begin delete 912. end delete
begin insert 912.1. end insert   

The Public Utilities Commission shall conduct an audit
of the expenditures of the funds received pursuant to 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.

begin delete SEC. 21. end delete
begin insert SEC. 61. end insert   

Section 5385.5 of the Public Utilities Code is repealed.

begin delete SEC. 22. end delete
begin insert SEC. 62. 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. 63. end insert   

end insert

begin insert Section 5920 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5920.  

begin delete (a) end delete begin delete   end delete A holder of a state franchise employing more than
750 total employees in California shall annually report to the
commission all of the following:

begin delete

(1)

end delete

begin insert (a) end insert  The number of California residents employed by the holder,
calculated on a full-time or full-time equivalent basis.

begin delete

(2)

end delete

begin insert (b) end insert  The percentage of the holder’s total domestic workforce,
calculated on a full-time or full-time equivalent basis.

begin delete

(3)

end delete

begin insert (c) end insert  The types and numbers of jobs by occupational classification
held by residents of California employed by holders of state
franchises and the average pay and benefits of those jobs and,
separately, the number of out-of-state residents employed by
independent contractors, companies, and consultants hired by the
holder, calculated on a full-time or full-time equivalent basis, when
the holder is not contractually prohibited from disclosing the
information to the public. This paragraph applies only to those
employees of an independent contractor, company, or consultant
that are personally providing services to the holder, and does not
apply to employees of an independent contractor, company, or
consultant not personally performing services for the holder.

begin delete

(4)

end delete

begin insert (d) end insert  The number of net new positions proposed to be created
directly by the holder of a state franchise during the upcoming
year by occupational classifications and by category of full-time,
part-time, temporary, and contract employees.

begin delete

(b) The commission shall annually report the information
required to be reported by holders of state franchises pursuant to
subdivision (a), to the Assembly Committee on Utilities and
Commerce and the Senate Committee on Energy, Utilities and
Communications, or their successor committees, and within a
reasonable time thereafter, shall make the information available
to the public on its Internet Web site.

end delete

begin insert

begin insert SEC. 64. end insert   

end insert

begin insert Section 5960 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5960.  

(a) For purposes of this section, “census tract” has the
same meaning as used by the United States Census Bureau, and
“household” has the same meaning as specified in Section 5890.

(b) Every holder, no later than April 1, 2008, and annually no
later than April 1 thereafter, shall report to the commission on a
census tract basis the following information:

(1) Broadband information:

(A) The number of households to which the holder makes
broadband available in this state. If the holder does not maintain
this information on a census tract basis in its normal course of
business, the holder may reasonably approximate the number of
households based on information it keeps in the normal course of
business.

(B) The number of households that subscribe to broadband that
the holder makes available in this state.

(C) Whether the broadband provided by the holder utilizes
wireline-based facilities or another technology.

(2) Video information:

(A) If the holder is a telephone corporation:

(i) The number of households in the holder’s telephone service
area.

(ii) The number of households in the holder’s telephone service
area that are offered video service by the holder.

(B) If the holder is not a telephone corporation:

(i) The number of households in the holder’s video service area.

(ii) The number of households in the holder’s video service area
that are offered video service by the holder.

(3) Low-income household information:

(i) The number of low-income households in the holder’s video
service area.

(ii) The number of low-income households in the holder’s video
service area that are offered video service by the holder.

begin delete

(c) The commission, no later than July 1, 2008, and annually
no later than July 1 thereafter, shall submit to the Governor and
the Legislature a report that includes based on year-end data, on
an aggregated basis, the information submitted by holders pursuant
to subdivision (b).

end delete begin delete

(d) All information submitted to the commission and reported
by the commission pursuant to this section shall be disclosed to
the public only as provided for pursuant to Section 583. No
individually identifiable customer or subscriber information shall
be subject to public disclosure.

end delete

begin delete SEC. 23. end delete
begin insert SEC. 65. end insert   

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.

begin delete

(d) The division of the commission responsible for consumer
protection and safety 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 916.

end delete

begin delete SEC. 24. end delete
begin insert SEC. 66. end insert   

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

begin delete 916. end delete
begin insert 916.2. 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

(d) The commission may combine the information required to
be reported by this section with the report prepared pursuant to
Section 916.

end insert

begin delete SEC. 25. end delete
begin insert SEC. 67. end insert   

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 begin delete 916. end delete begin insert 916.2. 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 916. end delete begin insert 916.2 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 916. end delete begin insert 916.2. 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 916. end delete begin insert 916.2. 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 916. end delete begin insert 916.2. end insert

begin insert

begin insert SEC. 68. end insert   

end insert

begin insert Section 7912 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

7912.  

begin delete (a) end delete begin delete   end delete A public utility employing more than 750 total
employees shall annually report to the commission all of the
following:

begin delete

(1)

end delete

begin insert (a) end insert  The number of customers served in California by the public
utility.

begin delete

(2)

end delete

begin insert (b) end insert  The percentage of the public utility’s total domestic customer
base that resides in California.

begin delete

(3)

end delete

begin insert (c) end insert  The number of California residents employed by the public
utility, calculated on a full-time or full-time equivalent basis.

begin delete

(4)

end delete

begin insert (d) end insert  The percentage of the public utility’s total domestic
workforce, calculated on a full-time or full-time equivalent basis,
that resides in California.

begin delete

(5)

end delete

begin insert (e) end insert  The capital investment in the public utility’s tangible and
intangible plant which ordinarily have a service life of more than
one year, including plant used by the company or others in
providing public utility services, in California during the yearly
reporting period.

begin delete

(6)

end delete

begin insert (f) end insert  The number of California residents employed by independent
contractors and consultants hired by the public utility, calculated
on a full-time or full-time equivalent basis, when the public utility
has obtained this information upon requesting it from the
independent contractor or consultant, and the public utility is not
contractually prohibited from disclosing the information to the
public. This subdivision is inapplicable to contractors and
consultants that are a public utility subject to the reporting
requirements of this section. This paragraph applies only to those
employees of an independent contractor or consultant that are
personally providing services to the public utility, and does not
apply to employees of an independent contractor or consultant not
personally performing services for the public utility.

begin delete

(b) The commission shall annually report the information
required to be reported by public utilities pursuant to subdivision
(a), to the Assembly Committee on Utilities and Commerce and
the Senate Committee on Energy, Utilities and Communications,
or their successor committees, and within a reasonable time
thereafter, shall make the information available to the public on
its Internet Web site.

end delete

begin insert

begin insert SEC. 69. end insert   

end insert

begin insert Section 8283 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

8283.  

(a) The commission shall require each electrical, gas,
water, wireless telecommunications service provider, and telephone
corporation with gross annual revenues exceeding twenty-five
million dollars ($25,000,000) and their commission-regulated
subsidiaries and affiliates, to submit annually, a detailed and
verifiable plan for increasing procurement from women, minority,
disabled veteran, and LGBT business enterprises in all categories,
including, but not limited to, renewable energy, wireless
telecommunications, broadband, smart grid, and rail projects.

(b) These annual plans shall include short- and long-term goals
and timetables, but not quotas, and shall include methods for
encouraging both prime contractors and grantees to engage women,
minority, disabled veteran, and LGBT business enterprises in
subcontracts in all categories that provide subcontracting
opportunities, including, but not limited to, renewable energy,
wireless telecommunications, broadband, smart grid, and rail
projects.

(c) The commission shall establish guidelines for all electrical,
gas, water, wireless telecommunications service providers, and
telephone corporations with gross annual revenues exceeding
twenty-five million dollars ($25,000,000) and their
commission-regulated subsidiaries and affiliates, to be utilized in
establishing programs pursuant to this article.

(d) Every electrical, gas, water, wireless telecommunications
service provider, and telephone corporation with gross annual
revenues exceeding twenty-five million dollars ($25,000,000) shall
furnish an annual report to the commission regarding the
implementation of programs established pursuant to this article in
a form that the commission shall require, and at the time that the
commission shall annually designate. The report shall include the
information about LGBT business enterprises beginning with the
2016 report.

begin delete

(e) (1) The commission shall provide a report to the Legislature
on September 1 of each year, on the progress of activities
undertaken by each electrical, gas, water, wireless
telecommunications service provider, and telephone corporation
with gross annual revenues exceeding twenty-five million dollars
($25,000,000) pursuant to this article in the implementation of
women, minority, disabled veteran, and LGBT business enterprise
development programs. The report shall include information about
which procurements are made with women, minority, disabled
veteran, and LGBT business enterprises with at least a majority
of the enterprise’s workforce in California, to the extent that
information is readily accessible. The commission shall recommend
a program for carrying out the policy declared in this article,
together with recommendations for legislation that it deems
necessary or desirable to further that policy. The commission shall
make the report available on its Internet Web site.

(2) In regard to disabled veteran business enterprises, the
commission shall ensure that the programs and legislation
recommended pursuant to paragraph (1) are consistent with the
disabled veteran business enterprise certification eligibility
requirements imposed by the Department of General Services and
that the recommendations include only those disabled veteran
business enterprises certified by the Department of General
Services.

(3) The commission shall include the information about LGBT
business enterprises required by paragraph (1) beginning with the
report due on September 1, 2016.

(f)

end delete

begin insert (e) end insert  (1) The Legislature declares that each electrical, gas, water,
mobile telephony service provider, and telephone corporation that
is not required to submit a plan pursuant to subdivision (a) is
encouraged to voluntarily adopt a plan for increasing women,
minority, disabled veteran, and LGBT business enterprise
procurement in all categories.

(2) The Legislature declares that each cable television
corporation and direct broadcast satellite provider is encouraged
to voluntarily adopt a plan for increasing women, minority,
disabled veteran, and LGBT business enterprise procurement and
to voluntarily report activity in this area to the Legislature on an
annual basis.

begin insert

begin insert SEC. 70. end insert   

end insert

begin insert Section 8367 of the end insert begin insert Public Utilities Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8367. end delete
begin insert 913.11. end insert   

By January 1, 2011, and by January 1 of each year
thereafter, the commission shall report to the Governor and the
Legislature on the commission’s recommendations for a smart
grid, the plans and deployment of smart grid technologies by the
state’s electrical corporations, and the costs and benefits to
ratepayers.