Amended in Assembly August 27, 2015

Amended in Assembly July 8, 2015

Amended in Assembly June 24, 2015

Amended in Senate April 9, 2015

Senate BillNo. 697


Introduced by Senator Hertzberg

February 27, 2015


An act to amend Sections 280.5, 281, 309.7, 311.4, 321.6,begin delete 348,end delete 364, 379.7,begin delete 381.2,end delete 421, 740.3, 747, 765, 785,begin insert 846,end insert 873, 958.5, 960, 2851, 2881, 2891, 5387, 5920, 5960, 7661, 7712, 7912, and 8283 of,begin insert to amend the headings of Article 5 (commencing with Section 581) of Chapter 3 of, and Article 11 (commencing with Section 910) of Chapter 4 of, Part 1 of Division 1 of,end insert to amend and renumber Sections 321.7,begin delete 322,end delete 326, 326.5,begin delete 384.2,end delete 399.19, 432.5, 747.6, 748, 765.6, 911, 915, 5006, 5012, 7711, and 8367 of, to amend, renumber, and add Section 910 of, to add Sectionsbegin delete 910.4, 910.7,end deletebegin insert 590, 910.1, 910.3, 910.6, 911.1, 912,end insert 912.2, 913,begin insert 913.2,end insert 913.5,begin delete 913.8,end delete 913.12, 913.13, 913.14,begin delete 913.15,end delete 914, 914.1, 914.2, 914.3, 914.4, 914.5, 914.6, 914.7. 916, 916.1, 916.4, 919,begin delete 919.1, and 919.2,end deletebegin insert and 920,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 Utilitiesbegin delete Commission:end deletebegin insert Commission Accountability Act of 2015:end insert reports: audits:begin insert electrical restructuring: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 wouldbegin insert adopt the Public Utilities Commission Accountability Act of 2015. The bill wouldend insert recast certain of the commission’s reporting requirements to an article within the Public Utilities Act pertaining to reports by the commission to the Legislature and make other conforming changes. The bill would require the commission to report specified information on a quarterly basis relative to implementation of the California Renewables Portfolio Standardbegin delete Program.end deletebegin insert Program and end insertbegin insertcommunity choice aggregation.end insert

begin insert

Existing law relative to restructuring of the electrical industry authorizes an electrical corporation to apply to the commission for a determination that certain transition costs, as defined, may be recovered through fixed transition amounts, which would constitute transition property, as defined, and provides, until December 31, 2015, for the issuance of financing orders and provides for the issuance of rate reduction bonds to be paid out of rates.

end insert
begin insert

This bill would extend the authorization for the issuance of financing orders from December 31, 2015, to December 31, 2016.

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:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertThis act shall be known, and may be cited, as the
2Public Utilities Commission Accountability Act of 2015.end insert

3

begin deleteSECTION 1.end delete
4begin insertSEC. 2.end insert  

Section 280.5 of the Public Utilities Code is amended
5to read:

P3    1

280.5.  

(a) Of the revenues from fees collected pursuant to
2Section 14666.8 of the Government Code after the operative date
3of this section, except for revenues from fees from a lease
4agreement for access to Department of Transportation property or
5a lease agreement existing prior to the operative date of the section,
615 percent shall be available, upon appropriation by the Legislature,
7for the purpose of addressing the state’s digital divide.

8(b) Revenues described in subdivision (a) shall be deposited in
9the Digital Divide Account, which is hereby established in the
10California Teleconnect Fund Administrative Committee Fund
11established pursuant to Section 270, to be used only for digital
12divide pilot projects. Not more than 5 percent of the revenues
13described in subdivision (a) may be used to pay the costs incurred
14in connection with the administration of digital divide pilot projects
15by the commission.

16(c) (1) The Digital Divide Grant Program is hereby established
17subject to the availability of funding pursuant to this section. The
18commission may not implement the grant program until the
19commission projects that at least five hundred thousand dollars
20($500,000) will be available in the Digital Divide Account during
21the calendar year following implementation, based on money
22collected pursuant to Section 14666.8 of the Government Code.

23(2) The commission shall provide grants pursuant to this
24subdivision on a competitive basis subject to criteria to be
25established by the commission and in a way that disburses the
26funds widely, including urban and rural areas. Grants shall be
27awarded to community-based nonprofit organizations that are
28exempt from taxation under Section 501(c)(3) of the Internal
29Revenue Code for the purpose of funding community technology
30programs.

31(3) Recipients of grants pursuant to this subdivision shall report
32to the commission annually on the effectiveness of the grant
33program.

34(d) For purposes of this section, “community technology
35programs” means a program that is engaged in diffusing technology
36in local communities and training local communities in the use of
37technology, especially local communities that otherwise would
38have no access or limited access to the Internet and other
39technologies.

P4    1(e) For purposes of this section, “digital divide projects” means
2community technology programs involved in activities that include,
3but are not limited to, the following:

4(1) Providing open access to and opportunities for training in
5technology.

6(2) Developing content relevant to the interests and wants of
7the local community.

8(3) Preparing youth for opportunities in the new economy
9through multimedia training and skills.

10(4) Harnessing technology for e-government services.

11

begin deleteSEC. 2.end delete
12begin insertSEC. 3.end insert  

Section 281 of the Public Utilities Code is amended
13to read:

14

281.  

(a) The commission shall develop, implement, and
15administer the California Advanced Services Fund program to
16encourage deployment of high-quality advanced communications
17services to all Californians that will promote economic growth,
18job creation, and the substantial social benefits of advanced
19information and communications technologies, consistent with
20this section.

21(b) (1) The goal of the program is, no later than December 31,
222015, to approve funding for infrastructure projects that will
23provide broadband access to no less than 98 percent of California
24households.

25(2) In approving infrastructure projects, the commission shall
26give priority to projects that provide last-mile broadband access
27to households that are unserved by an existing facilities-based
28broadband provider. The commission shall provide each applicant,
29and any party challenging an application, the opportunity to
30demonstrate actual levels of broadband service in the project area,
31which the commission shall consider in reviewing the application.

32(c) The commission shall establish the following accounts within
33the fund:

34(1) The Broadband Infrastructure Grant Account.

35(2) The Rural and Urban Regional Broadband Consortia Grant
36Account.

37(3) The Broadband Infrastructure Revolving Loan Account.

38(4) The Broadband Public Housing Account.

39(d) (1) All moneys collected by the surcharge authorized by
40the commission pursuant to Decision 07-12-054 shall be
P5    1transmitted to the commission pursuant to a schedule established
2by the commission. The commission shall transfer the moneys
3received to the Controller for deposit in the California Advanced
4Services Fund. Moneys collected on and after January 1, 2011,
5shall be deposited in the following amounts in the following
6accounts:

7(A) One hundred ninety million dollars ($190,000,000) into the
8Broadband Infrastructure Grant Account.

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

11(C) Fifteen million dollars ($15,000,000) into the Broadband
12Infrastructure Revolving Loan Account.

13(2) All interest earned on moneys in the fund shall be deposited
14in the fund.

15(3) The commission shall not collect moneys, by imposing the
16surcharge described in paragraph (1) for deposit in the fund, in an
17amount that exceeds one hundred million dollars ($100,000,000)
18before January 1, 2011. On and after January 1, 2011, the
19commission may collect an additional sum not to exceed two
20hundred fifteen million dollars ($215,000,000), for a sum total of
21moneys collected by imposing the surcharge described in paragraph
22(1) not to exceed three hundred fifteen million dollars
23($315,000,000). The commission may collect the additional sum
24beginning with the calendar year starting on January 1, 2011, and
25continuing through the 2020 calendar year, in an amount not to
26exceed twenty-five million dollars ($25,000,000) per year, unless
27the commission determines that collecting a higher amount in any
28 year will not result in an increase in the total amount of all
29surcharges collected from telephone customers that year.

30(e) (1) All moneys in the California Advanced Services Fund
31shall be available, upon appropriation by the Legislature, to the
32commission for the program administered by the commission
33pursuant to this section, including the costs incurred by the
34commission in developing, implementing, and administering the
35program and the fund.

36(2) Notwithstanding any other law and for the sole purpose of
37providing matching funds pursuant to the federal American
38Recovery and Reinvestment Act of 2009 (Public Law 111-5), any
39entity eligible for funding pursuant to that act shall be eligible to
40apply to participate in the program administered by the commission
P6    1pursuant to this section, if that entity otherwise satisfies the
2eligibility requirements under that program. Nothing in this section
3shall impede the ability of an incumbent local exchange carrier,
4as defined by subsection (h) of Section 251 of Title 47 of the
5United States Code, that is regulated under a rate of return
6regulatory structure, to recover, in rate base, California
7infrastructure investment not provided through federal or state
8grant funds for facilities that provide broadband service and
9California intrastate voice service.

10(3) Notwithstanding subdivision (b) of Section 270, an entity
11that is not a telephone corporation shall be eligible to apply to
12participate in the program administered by the commission pursuant
13to this section to provide access to broadband to an unserved or
14underserved household, as defined in commission Decision
1512-02-015, if the entity otherwise meets the eligibility requirements
16and complies with program requirements established by the
17commission. These requirements shall include all of the following:

18(A) That projects under this paragraph provide last-mile
19broadband access to households that are unserved by an existing
20facilities-based broadband provider and only receive funding to
21provide broadband access to households that are unserved or
22underserved, as defined in commission Decision 12-02-015.

23(B) That funding for a project providing broadband access to
24an underserved household shall not be approved until after any
25existing facilities-based provider has an opportunity to demonstrate
26to the commission that it will, within a reasonable timeframe,
27upgrade existing service. An existing facilities-based provider
28may, but is not required to, apply for funding under this section to
29make that upgrade.

30(C) That the commission shall provide each applicant, and any
31party challenging an application, the opportunity to demonstrate
32actual levels of broadband service in the project area, which the
33commission shall consider in reviewing the application.

34(D) That a local governmental agency may be eligible for an
35infrastructure grant only if the infrastructure project is for an
36unserved household or business, the commission has conducted
37an open application process, and no other eligible entity applied.

38(E) That the commission shall establish a service list of
39interested parties to be notified of California Advanced Services
40Fund applications.

P7    1(f) Moneys in the Rural and Urban Regional Broadband
2Consortia Grant Account shall be available for grants to eligible
3consortia to fund the cost of broadband deployment activities other
4than the capital cost of facilities, as specified by the commission.
5An eligible consortium may include, as specified by the
6commission, representatives of organizations, including, but not
7limited to, local and regional government, public safety, elementary
8and secondary education, health care, libraries, postsecondary
9education, community-based organizations, tourism, parks and
10recreation, agricultural, and business, and is not required to have
11as its lead fiscal agent an entity with a certificate of public
12convenience and necessity.

13(g) Moneys in the Broadband Infrastructure Revolving Loan
14Account shall be available to finance capital costs of broadband
15facilities not funded by a grant from the Broadband Infrastructure
16Grant Account. The commission shall periodically set interest rates
17on the loans based on surveys of existing financial markets.

18(h) (1) For purposes of this subdivision, the following terms
19have the following meanings:

20(A) “Publicly subsidized” means either that the housing
21development receives financial assistance from the United States
22Department of Housing and Urban Development pursuant to an
23annual contribution contract or is financed with low-income
24housing tax credits, tax-exempt mortgage revenue bonds, general
25obligation bonds, or local, state, or federal loans or grants and the
26rents of the occupants, who are lower income households, do not
27exceed those prescribed by deed restrictions or regulatory
28agreements pursuant to the terms of the financing or financial
29assistance.

30(B) “Publicly supported community” means a publicly
31subsidized multifamily housing development that is wholly owned
32by either of the following:

33(i) A public housing agency that has been chartered by the state,
34or by any city or county in the state, and has been determined to
35be an eligible public housing agency by the United States
36Department of Housing and Urban Development.

37(ii) An incorporated nonprofit organization as described in
38Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec.
39501(c)(3)) that is exempt from taxation under Section 501(a) of
40that code (16 U.S.C. Sec. 501(a)), and that has received public
P8    1funding to subsidize the construction or maintenance of housing
2occupied by residents whose annual income qualifies as “low” or
3“very low” income according to federal poverty guidelines.

4(2) Notwithstanding subdivision (b) of Section 270, moneys in
5the Broadband Public Housing Account shall be available for the
6commission to award grants and loans pursuant to this subdivision
7to an eligible publicly supported community if that entity otherwise
8meets eligibility requirements and complies with program
9requirements established by the commission.

10(3) Not more than twenty million dollars ($20,000,000) shall
11be available for grants and loans to a publicly supported community
12to finance a project to connect a broadband network to that publicly
13supported community. A publicly supported community may be
14an eligible applicant only if the publicly supported community can
15verify to the commission that the publicly supported community
16has not denied a right of access to any broadband provider that is
17willing to connect a broadband network to the facility for which
18the grant or loan is sought.

19(4) (A) Not more than five million dollars ($5,000,000) shall
20be available for grants and loans to a publicly supported community
21to support programs designed to increase adoption rates for
22broadband services for residents of that publicly supported
23community. A publicly supported community may be eligible for
24funding for a broadband adoption program only if the residential
25units in the facility to be served have access to broadband services
26or will have access to broadband services at the time the funding
27for adoption is implemented.

28(B) A publicly supported community may contract with other
29nonprofit or public agencies to assist in implementation of a
30broadband adoption program.

31(5) To the extent feasible, the commission shall approve projects
32for funding from the Broadband Public Housing Account in a
33manner that reflects the statewide distribution of publicly supported
34communities.

35(6) In reviewing a project application under this subdivision,
36the commission shall consider the availability of other funding
37sources for that project, any financial contribution from the
38broadband service provider to the project, the availability of any
39other public or private broadband adoption or deployment program,
40including tax credits and other incentives, and whether the applicant
P9    1has sought funding from, or participated in, any reasonably
2available program. The commission may require an applicant to
3provide match funding, and shall not deny funding for a project
4solely because the applicant is receiving funding from another
5source.

6(7) (A) To provide funding for the purposes of this subdivision,
7the commission shall transfer to the Broadband Public Housing
8Account twenty million dollars ($20,000,000) from the Broadband
9Infrastructure Grant Account and five million dollars ($5,000,000)
10from the Broadband Revolving Loan Account. Any moneys in the
11Broadband Public Housing Account that have not been awarded
12pursuant to this subdivision by December 31, 2016, shall be
13transferred back to the Broadband Infrastructure Grant Account
14and Broadband Infrastructure Revolving Loan Account in
15proportion to the amount transferred from the respective accounts.

16(B) The commission shall transfer funds pursuant to
17subparagraph (A) only if the commission is otherwise authorized
18to collect funds for purposes of this section in excess of the total
19amount authorized pursuant to paragraph (3) of subdivision (d).

20

begin deleteSEC. 3.end delete
21begin insertSEC. 4.end insert  

Section 309.7 of the Public Utilities Code is amended
22to read:

23

309.7.  

(a) The division of the commission responsible for
24consumer protection and safety shall be responsible for inspection,
25surveillance, and investigation of the rights-of-way, facilities,
26equipment, and operations of railroads and public mass transit
27guideways, and for enforcing state and federal laws, regulations,
28orders, and directives relating to transportation of persons or
29commodities, or both, of any nature or description by rail. The
30division of the commission responsible for consumer protection
31and safety shall advise the commission on all matters relating to
32rail safety, and shall propose to the commission rules, regulations,
33orders, and other measures necessary to reduce the dangers caused
34by unsafe conditions on the railroads of the state. The delegation
35of enforcement responsibility to the division of the commission
36responsible for consumer protection and safety shall not diminish
37the power of other agencies of state government to enforce laws
38relating to employee or environmental safety, pollution prevention,
39or public health and safety.

P10   1(b) In performing its duties, the division of the commission
2responsible for consumer protection and safety shall exercise all
3powers of investigation granted to the commission, including rights
4to enter upon land or facilities, inspect books and records, and
5compel testimony. The commission shall employ sufficient
6federally certified inspectors to ensure at the time of inspection
7that railroad locomotives and equipment and facilities located in
8class I railroad yards in California are inspected not less frequently
9than every 180 days, and all main and branch line tracks are
10inspected not less frequently than every 12 months. In performing
11its duties, the division of the commission responsible for consumer
12protection and safety shall consult with representatives of railroad
13corporations, labor organizations representing railroad employees,
14and the Federal Railroad Administration.

15(c) The general counsel shall assign to the division of the
16commission responsible for consumer protection and safety the
17personnel and attorneys necessary to fully utilize the powers
18granted to the commission by any state law, and by any federal
19law relating to rail transportation, including, but not limited to, the
20Federal Rail Safety Act (45 U.S.C. Sec. 421m, et seq.), to enforce
21safety laws, rules, regulations, and orders, and to collect fines and
22penalties resulting from the violation of any safety rule or
23regulation.

24(d) The activities of the division of the commission responsible
25for consumer protection and safety that relate to safe operation of
26common carriers by rail, other than those relating to grade crossing
27protection, shall also be supported by the fees paid by railroad
28corporations, if any, pursuant to Sections 421 to 424, inclusive.
29The activities of the division of the commission responsible for
30consumer protection and safety that relate to grade crossing
31protection shall be supported by funds appropriated therefor from
32the State Highway Account in the State Transportation Fund.

33

begin deleteSEC. 4.end delete
34begin insertSEC. 5.end insert  

Section 311.4 of the Public Utilities Code is amended
35to read:

36

311.4.  

(a) On or after July 1, 2001, the commission shall
37establish procedures to permit the submission of informal
38complaints through electronic means in accordance with this
39section.

P11   1(b) On or before January 1, 2002, the commission shall provide
2on its Internet Web site the means by which consumers may submit
3informal complaints through electronic means.

4(c) For the purpose of this section, “electronic means” includes,
5but shall not be limited to, email or the Internet, or both.

6(d) Upon the receipt of an informal complaint submitted by
7electronic means, the commission shall immediately forward the
8 complaint to the entity named in the complaint.

9(e) The commission shall permit the submission of informal
10complaints through electronic means, if, as determined by the
11commission, both of the following conditions are met:

12(1) The dollar amount in the complaint does not exceed the
13jurisdictional limit of a small claims court specified in subdivision
14(a) of Section 116.220 or Section 116.221 of the Code of Civil
15Procedure.

16(2) The commission has addressed any impediments in the
17electronic systems employed by the commission that would prevent
18or substantially adversely affect the ability of the commission to
19receive informal complaints by electronic means.

20(f) The commission shall include a notice on its Internet Web
21site of the availability of the procedures described in subdivision
22(a).

23(g) For the purposes of implementing this section, the
24commission shall make available to the public an industry specific
25online complaint form that allows a customer to specify
26information that the commission determines to be relevant for
27purposes of resolving a dispute, including the account number, the
28type of dispute, and the opportunity to make general comments.

29(h) This act may not be implemented, and no information
30technology-related preparatory work may be undertaken in
31connection with this act prior to July 1, 2001, without the
32concurrence of the commission and the authorization of the
33Department of Information Technology pursuant to Executive
34Order D-3-99.

35

begin deleteSEC. 5.end delete
36begin insertSEC. 6.end insert  

Section 321.6 of the Public Utilities Code is amended
37to read:

38

321.6.  

begin delete(a)end deletebegin deleteend deleteThe president of the commission shall annually
39appear before the appropriate policy committees of thebegin delete Legislatureend delete
P12   1begin insert Senate and Assemblyend insert tobegin delete report on the annual workplanend deletebegin insert present the
2annual reportend insert
of the commission required pursuant to Section 910.

begin delete

3(b) The president of the commission shall annually appear before
4the appropriate policy committees of the Legislature to report on
5the annual report of the commission on the number of cases where
6resolution exceeded the time periods prescribed in scoping memos
7and the days that commissioners presided in hearings, pursuant to
8Section 13 of Chapter 856 of the Statutes of 1996.

end delete
9

begin deleteSEC. 6.end delete
10begin insertSEC. 7.end insert  

Section 321.7 of the Public Utilities Code is amended
11and renumbered to read:

12

913.10.  

(a) On or before January 1, 2010, and biennially
13thereafter, the commission, in consultation with the Independent
14System Operator and the State Energy Resources Conservation
15and Development Commission, shall study, and submit a report
16to the Legislature and the Governor, on the impacts of distributed
17energy generation on the state’s distribution and transmission grid.
18The study shall evaluate all of the following:

19(1) Reliability and transmission issues related to connecting
20distributed energy generation to the local distribution networks
21and regional grid.

22(2) Issues related to grid reliability and operation, including
23interconnection, and the position of federal and state regulators
24toward distributed energy accessibility.

25(3) The effect on overall grid operation of various distributed
26energy generation sources.

27(4) Barriers affecting the connection of distributed energy to
28the state’s grid.

29(5) Emerging technologies related to distributed energy
30generation interconnection.

31(6) Interconnection issues that may arise for the Independent
32System Operator and local distribution companies.

33(7) The effect on peak demand for electricity.

34(b) In addition, the commission shall specifically assess the
35impacts of the California Solar Initiative program, specified in
36Section 2851 and Section 25783 of the Public Resources Code,
37the self-generation incentive program authorized by Section 379.6,
38and the net energy metering pilot program authorized by Section
392827.9.

begin delete
P13   1

SEC. 7.  

Section 322 of the Public Utilities Code is amended
2and renumbered to read:

3

910.2.  

(a) The commission shall periodically, at least once
4each year, compile its rules of procedure together with every order
5and decision of the commission relating to the conduct of the
6commission’s hearings and proceedings.

7(b) The compilation shall include, but not be limited to, matters
8relating to all of the following:

9(1) Pleadings.

10(2) Public notice.

11(3) Public attendance.

12(4) Specification of issues.

13(5) Prehearing procedures.

14(6) Discovery.

15(7) Evidence.

16(8) Supporting documentation.

17(9) Submission of briefs and arguments.

18(10) Meetings of the commission.

19(11) All other rules of procedure governing participation in
20hearings and proceedings of the commission by public utilities,
21commission staff, and other persons.

end delete
22

SEC. 8.  

Section 326 of the Public Utilities Code is amended
23and renumbered to read:

24

begin delete910.6.end delete
25begin insert910.5.end insert  

(a) By January 10 of each year, the commission shall
26report to the Joint Legislative Budget Committee and appropriate
27fiscal and policy committees of the Legislature, on all sources and
28amounts of funding and actual and proposed expenditures, both
29in the two prior fiscal years and for the proposed fiscal year,
30including any costs to ratepayers, related to interactions by the
31commission, its officers, or its staff with the California Public
32Utilities Commission Foundation, or any derivative, or successor,
33or with any agent or director of the foundation, including all of
34the following:

35(1) Attendance at meetings, conferences, or events organized
36or sponsored by the foundation.

37(2) Any contract or other agreement between the commission,
38its officers, or its staff and the foundation, including agreements
39relating to attendance at any educational or training conference or
40event.

P14   1(3) Any agenda item, order, decision, resolution, or motion,
2referencing the foundation.

3(4) Endorsements of the foundation or its activities.

4(5) Any contribution made to the foundation at the behest of a
5member of the commission, its officers, or its staff, and any direct
6or indirect contribution made to the foundation by a member of
7the commission, its officers, or its staff. For purposes of this
8paragraph, “contribution” means any payment, a forgiveness of a
9loan, a payment of a loan by a third party, or an enforceable
10promise to make a payment, except to the extent that full and
11adequate consideration is received.

12(b) (1) Within eight weeks of any contribution to the foundation
13made at the behest of a member of the commission, its officers,
14or its staff, the commission shall report the contribution to the Joint
15Legislative Budget Committee and appropriate fiscal and policy
16committees of the Legislature, and include any documents
17pertaining to the contribution.

18(2) Each report shall include certification from the commission
19that the contribution does not violate the Conflict of Interest Code
20and Statement of Incompatible Activities adopted pursuant to
21Section 303.

22

SEC. 9.  

Section 326.5 of the Public Utilities Code is amended
23and renumbered to read:

24

begin delete910.5.end delete
25begin insert910.4.end insert  

By January 10 of each year, the commission shall report
26to the Joint Legislative Budget Committee and appropriate fiscal
27and policy committees of the Legislature, on all sources and
28amounts of funding and actual and proposed expenditures, both
29in the two prior fiscal years and for the proposed fiscal year,
30including any costs to ratepayers, related to both of the following:

31(a) Entities or programs established by the commission by order,
32decision, motion, settlement, or other action, including, but not
33limited to, the California Clean Energy Fund, the California
34Emerging Technology Fund, and the Pacific Forest and Watershed
35Lands Stewardship Council. The report shall contain descriptions
36of relevant issues, including, but not limited to, all of the following:

37(1) Any governance structure established for an entity or
38program.

39(2) Any staff or employees hired by or for the entity or program
40and their salaries and expenses.

P15   1(3) Any staff or employees transferred or loaned internally or
2interdepartmentally for the entity or program and their salaries and
3expenses.

4(4) Any contracts entered into by the entity or program, the
5funding sources for those contracts, and the legislative authority
6under which the commission entered into the contract.

7(5) The public process and oversight governing the entity or
8program’s activities.

9(b) Entities or programs established by the commission, other
10than those expressly authorized by statute, under the following
11sections:

12(1) Section 379.6.

13(2) Section 399.8.

14(3) Section 739.1.

15(4) Section 2790.

16(5) Section 2851.

begin delete17

SEC. 10.  

Section 348 of the Public Utilities Code is amended
18to read:

19

348.  

The Independent System Operator shall adopt inspection,
20maintenance, repair, and replacement standards for the transmission
21facilities under its control no later than September 30, 1997. The
22standards, which shall be performance or prescriptive standards,
23or both, as appropriate, for each substantial type of transmission
24equipment or facility, shall provide for high quality, safe, and
25reliable service. In adopting its standards, the Independent System
26Operator shall consider: cost, local geography and weather,
27applicable codes, national electric industry practices, sound
28engineering judgment, and experience. The Independent System
29Operator shall also adopt standards for reliability, and safety during
30periods of emergency and disaster.

end delete
31

begin deleteSEC. 11.end delete
32begin insertSEC. 10.end insert  

Section 364 of the Public Utilities Code is amended
33to read:

34

364.  

(a) The commission shall adopt inspection, maintenance,
35repair, and replacement standards, and shall, in a new proceeding,
36or new phase of an existing proceeding, to commence on or before
37July 1, 2015, consider adopting rules to address the physical
38security risks to the distribution systems of electrical corporations.
39The standards or rules, which shall be prescriptive or performance
40based, or both, and may be based on risk management, as
P16   1appropriate, for each substantial type of distribution equipment or
2facility, shall provide for high-quality, safe, and reliable service.

3(b) In setting its standards or rules, the commission shall
4consider: cost, local geography and weather, applicable codes,
5potential physical security risks, national electric industry practices,
6 sound engineering judgment, and experience. The commission
7shall also adopt standards for operation, reliability, and safety
8during periods of emergency and disaster.

9(c) The commission shall conduct a review to determine whether
10the standards or rules prescribed in this section have been met. If
11the commission finds that the standards or rules have not been
12met, the commission may order appropriate sanctions, including
13penalties in the form of rate reductions or monetary fines. The
14review shall be performed after every major outage. Any money
15collected pursuant to this subdivision shall be used to offset funding
16for the California Alternative Rates for Energy Program.

17(d) The commission may, consistent with other provisions of
18law, withhold from the public information generated or obtained
19pursuant to this section that it deems would pose a security threat
20to the public if disclosed.

21

begin deleteSEC. 12.end delete
22begin insertSEC. 11.end insert  

Section 379.7 of the Public Utilities Code is amended
23to read:

24

379.7.  

(a) The Legislature finds and declares that the
25demonstration project authorized pursuant to this section, at the
26Antelope Valley Fairgrounds, to determine actual energy and cost
27savings that may be achieved when investments are made onsite
28to both reduce overall electricity demand and to offset peak
29electricity demand through the installation of (1) cost-effective
30energy efficient equipment and fixtures, and (2) a photovoltaic
31solar energy system, will provide valuable empirical data upon
32which to optimize future ratepayer investments in cost-effective
33energy efficiency and photovoltaic solar systems.

34(b) (1) The demonstration project authorized pursuant to this
35section shall be referred to as the Antelope Valley Fairgrounds EE
36and PV Synergy Demonstration Project.

37(2) To ensure that potential energy and cost savings from
38cost-effective energy efficient equipment and fixtures are achieved,
39the Antelope Valley Fairgrounds shall do both of the following:

P17   1(A) Implement the recommendations of the energy audit
2performed on July 27, 2004.

3(B) Include cost-effective energy efficient equipment and
4fixtures in all future expansions of the fairgrounds.

5(3) To ensure that potential energy and cost savings are achieved
6from a photovoltaic solar energy system of up to 630 kilowatts
7installed at the Antelope Valley Fairgrounds, the photovoltaic solar
8energy system shall meet both of the following criteria:

9(A) Be installed in a manner that optimizes operating efficiency,
10including appropriate siting.

11(B) Consist of components that are new and unused and have
12a warranty of not less than 10 years to protect against defects and
13undue degradation of electrical generation output.

14(c) An electrical corporation providing electrical service to the
15Antelope Valley Fairgrounds shall, by February 1, 2006, file with
16the commission a tariff providing for an incentive rate consistent
17with this section. The incentive rate shall provide stability and
18certainty over a 10-year period in an amount and in a manner to
19support investment in, and to test the durability of, the photovoltaic
20solar energy system installed at the fairgrounds. The incentive rate,
21together with an incentive from the self-generation incentive
22program that recognizes the energy efficiency investments made
23at the fairgrounds as authorized pursuant to Section 379.6, shall
24provide for a 10-year payback period for the photovoltaic solar
25energy system. The incentive rate shall not result in any cost
26shifting among customer classes of the electrical corporation.

27(d) Actual energy and cost savings shall be determined through
28annual energy audits and ongoing metering of electricity used and
29electricity produced on a time-of-use basis.

30(e) The demonstration project will be complete 10 years from
31the date the Antelope Valley Fairgrounds first takes electrical
32service pursuant to the incentive rate required by this section.

33(f) This section shall remain in effect only until January 1, 2017,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2017, deletes or extends that date.

begin delete36

SEC. 13.  

Section 381.2 of the Public Utilities Code is amended
37to read:

38

381.2.  

By March 1, 2010, the commission, by opening a new
39proceeding or amending an existing proceeding, shall investigate
40the ability of electrical corporations and gas corporations to provide
P18   1various energy efficiency financing options to their customers for
2the purposes of implementing the program developed pursuant to
3Section 25943 of the Public Resources Code.

end delete
begin delete4

SEC. 14.  

Section 384.2 of the Public Utilities Code is amended
5and renumbered to read:

6

913.7.  

The commission shall submit a report to the Legislature
7by July 15, 2009, and triennially thereafter, on the energy efficiency
8and conservation programs it oversees. The report shall include
9information regarding authorized utility budgets and expenditures
10and projected and actual energy savings over the program cycle.

end delete
11

begin deleteSEC. 15.end delete
12begin insertSEC. 12.end insert  

Section 399.19 of the Public Utilities Code is amended
13and renumbered to read:

14

913.6.  

The commission, in consultation with the Energy
15Commission, shall report to the Legislature by January 1 of every
16even-numbered year on all of the following:

17(a) The progress and status of procurement activities by each
18retail seller pursuant to the California Renewables Portfolio
19Standard Program (Article 16 (commencing with Section 399.11)
20of Chapter 2.3).

21(b) The status of permitting and siting eligible renewable energy
22resources and transmission facilities necessary to supply electricity
23generated to load, including the time taken to permit each eligible
24renewable energy resource and transmission line or upgrade,
25explanations of failures to meet permitting milestones, and
26recommendations for improvements to expedite permitting and
27siting processes.

28(c) The projected ability of each electrical corporation to meet
29the renewables portfolio standard procurement requirements under
30the cost limitations in subdivision (d) of Section 399.15 and any
31recommendations for revisions of those cost limitations.

32(d) Any barriers to, and policy recommendations for, achieving
33the renewables portfolio standard pursuant to the California
34Renewables Portfolio Standard Program (Article 16 (commencing
35with Section 399.11) of Chapter 2.3).

36

begin deleteSEC. 16.end delete
37begin insertSEC. 13.end insert  

Section 421 of the Public Utilities Code is amended
38to read:

39

421.  

(a) The commission shall annually determine a fee to be
40paid by every passenger stage corporation, charter-party carrier of
P19   1passengers, pipeline corporation, for-hire vessel operator, common
2carrier vessel operator, railroad corporation, and commercial air
3operator, and every other common carrier and related business
4subject to the jurisdiction of the commission, except as otherwise
5provided in Article 3 (commencing with Section 431) of this
6chapter and Chapter 6 (commencing with Section 5001) of Division
72.

8(b) The annual fee shall be established to produce a total amount
9equal to the amount established in the authorized commission
10budget for the same year, including adjustments appropriated by
11the Legislature and an appropriate reserve, to regulate common
12carriers and related businesses, less the amount to be paid from
13special accounts or funds pursuant to Section 403, reimbursements,
14federal funds, other revenues, and unencumbered funds from the
15preceding year.

16(c) Notwithstanding any other provision of law, the fees paid
17by railroad corporations shall be used for state-funded railroad
18investigation and enforcement activities of the commission, other
19than the rail safety activities funded by the Transportation Planning
20and Development Account pursuant to Section 99315. The railroad
21fees shall be set annually at a level which generates not less than
22the amount sufficient to fund activities pursuant to Sections 765.5,
23916.2, and 7712.

24(d) On January 1, 1992, the commission shall submit to the
25Legislature a detailed budget implementing this section for the
261992-93 fiscal year. The commission shall also submit to the
27Legislature by January 1, 1993, and on each January 1 thereafter,
28a detailed budget for expenditure of railroad corporation fees for
29the ensuing budget year. The budget for expenditure of railroad
30corporation fees, for each of the 1996-97 and 1997-98 fiscal years,
31shall not exceed the amount of three million dollars ($3,000,000).
32Expenditures of this budget shall be limited to the following items:

33(1) Expenditures for employees occupying, and actually
34performing service in, railroad-safety personnel positions that are
35directly involved in inspecting railroads and enforcing rail safety
36regulations. The commission shall expend the funds budgeted
37pursuant to this subdivision for the salaries, per diem, and travel
38expenses of employees specified in this paragraph, unless, by
39statute, the commission is specifically prohibited from expending
40all or part of those funds.

P20   1(2) Expenditures for employees occupying, and actually
2performing service in, clerical and support staff positions that are
3directly associated with railroad-safety inspections.

4(3) Expenditures for legal personnel who actually pursue
5violations of rail safety regulations beyond the informal complaint
6level.

7(4) Expenditures for an audit by the California State Auditor’s
8Office pursuant to subdivision (f), not to exceed seventy-five
9thousand dollars ($75,000).

10(5) Expenditures for the pro rata share of the commission’s
11overhead costs while state personnel are actually occupying the
12positions, and are performing the duties specified in paragraphs
13(1) to (4), inclusive.

14(e) The Department of Finance shall notify the Joint Legislative
15Budget Committee, pursuant to Section 28.00 of the annual Budget
16Act, prior to authorizing any change in the Budget Act
17appropriation for railroad corporation fees that is larger than one
18hundred thousand dollars ($100,000), or 10 percent of the amount
19budgeted, whichever is less.

20(f) Except as otherwise provided in this subdivision,
21commencing with the 1993-94 fiscal year, and in each subsequent
22fiscal year until the 1999-2000 fiscal year, the commission shall
23conduct an audit of the expenditure of the funds received pursuant
24to this section, except that for the 1996-97 fiscal year and fiscal
25years thereafter the audit shall be conducted by the California State
26Auditor’s Office. The results of this audit shall be reported, in
27writing, commencing on or before February 15, 1995, with respect
28to the audit for the 1993-94 fiscal year, and on or before January
2915 of each year thereafter, with respect to the audit for the fiscal
30year ending on the previous June 30, to the appropriate policy and
31budget committees of the respective houses of the Legislature. The
32commission shall reimburse the California State Auditor’s Office
33for the costs of the audits beginning with the 1996-97 fiscal year.

34(g) On or before January 1, 1994, the commission shall hire a
35minimum of four additional operating practices inspectors,
36exclusive of supervisory personnel, who are, or shall become by
37July 1, 1994, federally certified, for the purpose of enforcing
38compliance by railroads operating in this state with state and federal
39safety regulations.

P21   1(h) The commission, in performing its duties, shall limit the
2expenditure of funds for rail safety purposes to those railroad
3corporation fees collected pursuant to subdivision (d). In no event,
4shall the commission fund railroad safety activities utilizing funds
5from other commission accounts unrelated to railroad safety.

6begin insert

begin insertSEC. 14.end insert  

end insert

begin insertThe heading of Article 5 (commencing with Section
7581) of Chapter 3 of Part 1 of Division 1 of the end insert
begin insertPublic Utilities
8Code
end insert
begin insert is amended to read:end insert

9 

10Article 5.  Reportsbegin insert to the Commissionend insert
11

 

12

begin deleteSEC. 17.end delete
13begin insertSEC. 15.end insert  

Section 432.5 of the Public Utilities Code is amended
14and renumbered to read:

15

begin delete910.3.end delete
16begin insert910.2.end insert  

(a) The commission shall report to the Legislature the
17collections from each class of utility and expenditures, both direct
18and indirect, for regulatory and other authorized commission
19activities affecting each class. Where expenditures are for overhead,
20allocations of services common to several classes, or for
21commission-wide activities, the methods used to calculate the
22expenditures attributed to the class shall be described in reasonable
23detail.

24(b) The report shall be furnished to the Legislature within 60
25days after the end of the fiscal year, and shall be subject to audit.
26The commission shall maintain information and reports necessary
27to perform an audit pursuant to this section.

28begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 590 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
29read:end insert

begin insert
30

begin insert590.end insert  

The commission shall require each electrical corporation
31to report annually on its compliance with the standards or rules
32adopted by the commission pursuant to Section 364. That report
33shall be made available to the public, except that the commission
34may, consistent with other provisions of law, withhold from the
35public information generated or obtained pursuant to this section
36that it deems would pose a security threat to the public if disclosed.

end insert
37

begin deleteSEC. 18.end delete
38begin insertSEC. 17.end insert  

Section 740.3 of the Public Utilities Code is amended
39to read:

P22   1

740.3.  

(a) The commission, in cooperation with the State
2Energy Conservation and Development Commission, the State Air
3Resources Board, air quality management districts and air pollution
4control districts, regulated electrical and gas corporations, and the
5motor vehicle industry, shall evaluate and implement policies to
6promote the development of equipment and infrastructure needed
7to facilitate the use of electric power and natural gas to fuel
8low-emission vehicles. Policies to be considered shall include both
9of the following:

10(1) The sale-for-resale and the rate-basing of low-emission
11vehicles and supporting equipment such as batteries for electric
12vehicles and compressor stations for natural gas fueled vehicles.

13(2) The development of statewide standards for electric vehicle
14charger connections and compressed natural gas vehicle fueling
15connections, including installation procedures and technical
16assistance to installers.

17(b) The commission shall hold public hearings as part of its
18effort to evaluate and implement the new policies considered in
19subdivision (a).

20(c) The commission’s policies authorizing utilities to develop
21equipment or infrastructure needed for electric-powered and natural
22gas-fueled low-emission vehicles shall ensure that the costs and
23expenses of those programs are not passed through to electric or
24gas ratepayers unless the commission finds and determines that
25those programs are in the ratepayers’ interest. The commission’s
26policies shall also ensure that utilities do not unfairly compete with
27nonutility enterprises.

28

begin deleteSEC. 19.end delete
29begin insertSEC. 18.end insert  

Section 747 of the Public Utilities Code is amended
30to read:

31

747.  

It is the intent of the Legislature that the commission
32reduce rates for electricity and natural gas to the lowest amount
33possible.

34

begin deleteSEC. 20.end delete
35begin insertSEC. 19.end insert  

Section 747.6 of the Public Utilities Code is amended
36and renumbered to read:

37

913.9.  

The commission shall report annually on its efforts to
38identify ratepayer-funded energy efficiency programs that are
39similar to programs administered by the Energy Commission, the
40State Air Resources Board, and the California Alternative Energy
P23   1and Advanced Transportation Financing Authority in its annual
2report prepared pursuant to Section 913 and to require revisions
3to ratepayer-funded programs as necessary to ensure that the
4ratepayer-funded programs complement and do not duplicate
5programs of other state agencies.

6

begin deleteSEC. 21.end delete
7begin insertSEC. 20.end insert  

Section 748 of the Public Utilities Code is amended
8and renumbered to read:

9

begin delete913.2.end delete
10begin insert913.1.end insert  

(a) The commission, by May 1, 2010, and by each May
111 thereafter, shall prepare and submit a written report, separate
12from and in addition to the report required by Section 913, to the
13Governor and Legislature that contains the commission’s
14recommendations for actions that can be undertaken during the
15succeeding 12 months to limit utility cost and rate increases,
16consistent with the state’s energy and environmental goals,
17including goals for reducing emissions of greenhouse gases.

18(b) In preparing the report required by subdivision (a), the
19commission shall require electrical corporations with 1,000,000
20or more retail customers in California, and gas corporations with
21500,000 or more retail customers in California, to study and report
22on measures the corporation recommends be undertaken to limit
23costs and rate increases.

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

26

begin deleteSEC. 22.end delete
27begin insertSEC. 21.end insert  

Section 765 of the Public Utilities Code is amended
28to read:

29

765.  

(a) When the federal National Transportation Safety
30Board (NTSB) submits a safety recommendation letter concerning
31rail safety to the commission, the commission shall provide the
32NTSB with a formal written response to each recommendation no
33later than 90 days after receiving the letter. The response shall
34state one of the following:

35(1) The commission’s intent to implement the recommendations
36in full, with a proposed timetable for implementation of the
37recommendations.

38(2) The commission’s intent to implement part of the
39recommendations, with a proposed timetable for implementation
40of those recommendations, and detailed reasons for the
P24   1commission’s refusal to implement those recommendations that
2the commission does not intend to implement.

3(3) The commission’s refusal to implement the
4recommendations, with detailed reasons for the commission’s
5refusal to implement the recommendations.

6(b) If the NTSB issues a safety recommendation letter
7concerning any commission-regulated rail facility to the United
8States Department of Transportation, the Federal Transit
9Administration, a commission-regulated rail operator, or the
10commission, or if the Federal Transit Administration issues a safety
11advisory concerning any commission-regulated rail facility, the
12commission shall determine if implementation of the
13recommendation or advisory is appropriate. The basis for the
14commission’s determination shall be detailed in writing and shall
15be approved by a majority vote of the commission.

16(c) If the commission determines that a safety recommendation
17made by the NTSB is appropriate, or that action concerning a
18safety advisory is necessary, the commission shall issue orders or
19adopt rules to implement the safety recommendation or advisory
20as soon as practicable. In implementing the safety recommendation
21or advisory, the commission shall consider whether a more
22effective, or equally effective and less costly, alternative exists to
23address the safety issue that the recommendation or advisory
24addresses.

25

begin deleteSEC. 23.end delete
26begin insertSEC. 22.end insert  

Section 765.6 of the Public Utilities Code is amended
27and renumbered to read:

28

916.3.  

(a) The commission shall annually report to the
29Legislature on or before November 30 of each year on its
30compliance with the requirements of Section 765.5. The annual
31report shall include a determination by the commission of the
32impact on competition, if any, of the regulatory fees assessed
33railroad corporations and motor carriers for the support of the
34commission’s activities.

35(b) The commission may combine the information required by
36this section with the report prepared pursuant to Section 916.

37

begin deleteSEC. 24.end delete
38begin insertSEC. 23.end insert  

Section 785 of the Public Utilities Code is amended
39to read:

P25   1

785.  

To the extent consistent with federal law and regulation
2and contractual obligations regarding other available gas, the
3commission shall, in consultation with the Division of Oil and Gas
4of the Department of Conservation and with the State Energy
5Resources Conservation and Development Commission, encourage,
6as a first priority, the increased production of gas in this state,
7including gas produced from that area of the Pacific Ocean along
8the coast of California commonly known as the outer continental
9shelf, and shall require, after a hearing, every gas corporation to
10purchase that gas which is compatible with the corporation’s gas
11plant and which is produced in this state having an actual delivered
12cost, measured in equivalent heat units, equal to or less than other
13available gas, unless this requirement will result in higher overall
14costs of gas or other consequences adverse to the interests of gas
15customers.

16begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 846 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
17to read:end insert

18

846.  

The authority of the commission to issue financing orders
19pursuant to Section 841 shall expire on December 31,begin delete 2015.end deletebegin insert 2016.end insert
20 The expiration of the authority shall have no effect upon financing
21orders adopted by the commission pursuant to this article or any
22transition property arising therefrom, or upon the charges
23authorized to be levied thereunder, or the rights, interests, and
24obligations of the electrical corporation or a financing entity or
25holders of transition bonds pursuant to the financing order, or the
26authority of the commission to monitor, supervise, or take further
27action with respect to the order in accordance with the terms of
28this article and of the order.

29

SEC. 25.  

Section 873 of the Public Utilities Code is amended
30to read:

31

873.  

(a) The commission shall annually do all of the following:

32(1) Designate a class of lifeline service necessary to meet
33minimum communications needs.

34(2) Set the rates and charges for that service.

35(3) Develop eligibility criteria for that service.

36(4) Assess the degree of achievement of universal service,
37including telephone penetration rates by income, ethnicity, and
38geography.

P26   1(b) Minimum communications needs includes, but is not limited
2to, the ability to originate and receive calls and the ability to access
3 electronic information services.

4begin insert

begin insertSEC. 26.end insert  

end insert

begin insertThe heading of Article 11 (commencing with Section
5910) of Chapter 4 of Part 1 of Division 1 of the end insert
begin insertPublic Utilities
6Code
end insert
begin insert is amended to read:end insert

7 

8Article 11.  Reportsbegin insert to the Legislatureend insert
9

 

10

begin deleteSEC. 26.end delete
11begin insertSEC. 27.end insert  

Section 910 of the Public Utilities Code is amended
12and renumbered to read:

13

913.3.  

(a) By May 1 of each year, the commission shall prepare
14and submit to the policy and fiscal committees of the Legislature
15a written report summarizing the following information:

16(1) All electrical corporation revenue requirement increases
17associated with meeting the renewables portfolio standard, as
18defined in Section 399.12, including direct procurement costs for
19eligible renewable energy resources and renewable energy credits,
20administrative expenses for procurement, expenses incurred to
21ensure a reliable supply of electricity, and expenses for upgrades
22to the electrical transmission and distribution grid necessary to the
23delivery of electricity from eligible renewable energy resources
24to load.

25(2) All cost savings experienced, or costs avoided, by electrical
26corporations as a result of meeting the renewables portfolio
27standard.

28(3) All costs incurred by electrical corporations for incentives
29for distributed and renewable generation, including the
30self-generation incentive program, the California Solar Initiative,
31and net energy metering.

32(4) All cost savings experienced, or costs avoided, by electrical
33corporations as a result of incentives for distributed and renewable
34generation.

35(5) All pending requests by an electrical corporation seeking
36recovery in rates for renewable, fossil fuel, and nuclear
37procurement costs, research, study, or pilot program costs.

38(6) The decision number for each decision of the commission
39authorizing recovery in rates of costs incurred by an electrical
40corporation since the preceding report.

P27   1(7) Any change in the electrical load serviced by an electrical
2corporation since the preceding report.

3(8) The efforts each electrical corporation is taking to recruit
4and train employees to ensure an adequately trained and available
5workforce, including the number of new employees hired by the
6electrical corporation for purposes of implementing the
7requirements of Article 16 (commencing with Section 399.11) of
8Chapter 2.3, the goals adopted by the electrical corporation for
9increasing women, minority, and disabled veterans trained or hired
10for purposes of implementing the requirements of Article 16
11(commencing with Section 399.11) of Chapter 2.3, and, to the
12extent information is available, the number of new employees
13hired and the number of women, minority, and disabled veterans
14trained or hired by persons or corporations owning or operating
15eligible renewable energy resources under contract with an
16electrical corporation. This paragraph does not provide the
17commission with authority to engage in, regulate, or expand its
18authority to include, workforce recruitment or training.

19(b) The commission may combine the information required by
20this section with the reports prepared pursuant to Article 16
21(commencing with Section 399.11) of Chapter 2.3.

22

begin deleteSEC. 27.end delete
23begin insertSEC. 28.end insert  

Section 910 is added to the Public Utilities Code, to
24read:

25

910.  

The commission shall do all of the following:

26(a) Develop, publish, and annually update an annual workplan
27that describes in clear detail the scheduled ratemaking proceedings
28and other decisions that may be considered by the commission
29during the calendar year. The plan shall include, but is not limited
30to, information on how members of the public and ratepayers can
31gain access to the commission’s ratemaking process and
32information regarding the specific matters to be decided. The plan
33shall also include information on the operation of the office of the
34public advisor and identify the names and telephone numbers of
35those contact persons responsible for specific cases and matters
36to be decided. The plan shall also include a statement that specifies
37 activities that the commission proposes to reduce the costs of, and
38rates for, energy, including electricity, and for improving the
39competitive opportunities for state agriculture and other rural
40energy consumers. The commission shall post the plan under the
P28   1Official Documents area of its Internet Web site and shall develop
2a program to disseminate the information in the plan utilizing
3computer mailing lists to provide regular updates on the
4information to those members of the public and organizations that
5request the information.

6(b) Produce a complete accounting of its transactions and
7proceedings for the preceding year, together with other facts,
8suggestions, and recommendations that it deems of value to the
9people of the state, and a statement that specifies the activities and
10achievements of the commission in reducing the costs of, and rates
11for, energy, including electricity, for state agriculture and other
12rural energy consumers.

begin delete

13(c) Create a report on the number of cases where resolution
14exceeded the time periods prescribed in scoping memos and the
15days that commissioners presided in hearings.

end delete
begin delete

16(d)

end delete

17begin insert(c)end insert Submit annually the plan, accounting, and report required
18by subdivisionsbegin delete (a), (b),end deletebegin insert (a)end insert and (c) to the Governor and Legislature
19no later than February 1 of each year. A report to be submitted
20pursuant to this subdivision shall be submitted in compliance with
21Section 9795 of the Government Code.

22begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 910.1 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
23to read:end insert

begin insert
24

begin insert910.1.end insert  

The commission shall annually submit a report to the
25Legislature on the number of cases where resolution exceeded the
26time periods prescribed in scoping memos and the days that
27commissioners presided in hearings.

end insert
28

begin deleteSEC. 28.end delete
29begin insertSEC. 30.end insert  

Section begin delete910.4end deletebegin insert910.3end insert is added to the Public Utilities
30Code
, to read:

31

begin delete910.4.end delete
32begin insert910.3.end insert  

(a) The commission shall provide a report to the
33Legislature on September 1 of each year, on the progress of
34activities undertaken by each electrical, gas, water, wireless
35telecommunications service provider, and telephone corporation
36with gross annual revenues exceeding twenty-five million dollars
37($25,000,000), in the implementation of women, minority, disabled
38veteran, and LGBT business enterprise development programs
39pursuant to Article 5 (commencing with Section 8281) of Chapter
407 of Division 4. The report shall include information about which
P29   1procurements are made with women, minority, disabled veteran,
2and LGBT business enterprises with at least a majority of the
3enterprise’s workforce in California, to the extent that information
4is readily accessible. The commission shall recommend a program
5for carrying out the policy declared in Article 5 (commencing with
6Section 8281) of Chapter 7 of Division 4, together with
7recommendations for legislation that it deems necessary or
8desirable to further that policy. The commission shall make the
9report available on its Internet Web site.

10(b) In regard to disabled veteran business enterprises, the
11commission shall ensure that the programs and legislation
12recommended pursuant to subdivision (a) are consistent with the
13disabled veteran business enterprise certification eligibility
14requirements imposed by the Department of General Services and
15that the recommendations include only those disabled veteran
16business enterprises certified by the Department of General
17Services.

18(c) The commission shall include the information about LGBT
19business enterprises required by subdivision (a) beginning with
20the report due on September 1, 2016.

21

begin deleteSEC. 29.end delete
22begin insertSEC. 31.end insert  

Section begin delete910.7end deletebegin insert910.6end insert is added to the Public Utilities
23Code
, to read:

24

begin delete910.7.end delete
25begin insert910.6.end insert  

It is the intent of the Legislature that, commencing one
26year from the date that the procedures described in subdivision (a)
27of Section 311.4 are implemented, the commission annually review
28the procedures and the technology involved to ensure the continued
29effectiveness of the program, and report any findings to the
30Legislature.

31

begin deleteSEC. 30.end delete
32begin insertSEC. 32.end insert  

Section 911 of the Public Utilities Code is amended
33and renumbered to read:

34

913.4.  

(a) Notwithstanding subdivision (g) of Section 454.5
35and Section 583, no later than May 1 of each year, the commission
36shall release to the Legislature the costs of all electricity
37procurement contracts for eligible renewable energy resources,
38including unbundled renewable energy credits, and all costs for
39utility-owned generation approved by the commission. The first
40report shall include all costs commencing January 1, 2003.
P30   1Subsequent reports shall include only costs for the preceding
2calendar year.

3(1) For power purchase contracts, the commission shall release
4costs in an aggregated form categorized according to the year the
5procurement transaction was approved by the commission, the
6eligible renewable energy resource type, including bundled
7renewable energy credits, the average executed contract price, and
8average actual recorded costs for each kilowatthour of production.
9Within each renewable energy resource type, the commission shall
10provide aggregated costs for different project size thresholds.

11(2) For each utility-owned renewable generation project, the
12commission shall release the costs forecast by the electrical
13corporation at the time of initial approval and the actual recorded
14costs for each kilowatthour of production during the preceding
15calendar year.

16(b) This section does not require the release of the terms of any
17individual electricity procurement contracts for eligible renewable
18energy resources, including unbundled renewable energy credits,
19approved by the commission. The commission shall aggregate
20data to the extent required to ensure protection of the confidentiality
21of individual contract costs even if this aggregation requires
22grouping contracts of different energy resource type. The
23commission shall not be required to release the data in any year
24when there are fewer than three contracts approved.

25(c) The commission may combine the information required by
26this section with the report prepared pursuant to Section 913.3.

27begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 911.1 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
28to read:end insert

begin insert
29

begin insert911.1.end insert  

An action taken by the commission on a safety
30recommendation letter or advisory bulletin concerning gas pipeline
31safety issued by the federal National Transportation Safety Board
32(NTSB) shall be reported annually, in detail, to the Legislature
33with the report required by Section 910. Correspondence from the
34NTSB that indicates that a recommendation of the NTSB has been
35closed following an action that the NTSB finds unacceptable shall
36be noted in the report required by Section 910.

end insert
37begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 912 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
38read:end insert

begin insert
39

begin insert912.end insert  

A summary of the audits conducted by the commission
40pursuant to Section 314.5 shall be provided annually to the
P31   1Legislature. The commission may provide this information as part
2of its annual report delivered pursuant to Section 910.

end insert
3

begin deleteSEC. 31.end delete
4begin insertSEC. 35.end insert  

Section 912.2 is added to the Public Utilities Code,
5to read:

6

912.2.  

(a) The commission shall conduct two interim financial
7audits and a final financial audit and two interim performance
8audits and a final performance audit of the implementation and
9effectiveness of the California Advanced Services Fund to ensure
10that funds have been expended in accordance with the approved
11terms of the grant awards and loan agreements pursuant to Section
12281. The commission shall report its interim findings to the
13Legislature by April 1, 2011, and April 1, 2017. The commission
14shall report its final findings to the Legislature by April 1, 2021.
15The reports shall also include an update to the maps in the final
16report of the California Broadband Task Force and data on the
17types and numbers of jobs created as a result of the program
18administered by the commission pursuant to Section 281.

19(b) Pursuant to Section 10231.5 of the Government Code, this
20section is repealed on January 1, 2022.

21

begin deleteSEC. 32.end delete
22begin insertSEC. 36.end insert  

Section 913 is added to the Public Utilities Code, to
23read:

24

913.  

(a) The reporting requirements of this section apply to
25electrical corporations with at least 1,000,000 retail customers in
26California and gas corporations with at least 500,000 retail
27customers in California.

28(b) The commission shall prepare a written report on the costs
29of programs and activities conducted by each electrical corporation
30and gas corporation that is subject to this section, including
31activities conducted to comply with their duty to serve. The report
32shall be completed on an annual basis before April 1 of each year,
33and shall identify, clearly and concisely, all of the following:

34(1) Each program mandated by statute and its annual cost to
35ratepayers.

36(2) Each program mandated by the commission and its annual
37cost to ratepayers.

38(3) Energy purchase contract costs and bond-related costs
39incurred pursuant to Division 27 (commencing with Section 80000)
40of the Water Code.

P32   1(4) All other aggregated categories of costs currently recovered
2in retail rates as determined by the commission.

3(c) The report required by subdivision (b) shall be submitted to
4the Governor and the Legislature no later than April 1 of each year.

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

7begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 913.2 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
8to read:end insert

begin insert
9

begin insert913.2.end insert  

The commission shall, on or before the end of the first
10month of each quarter, submit to the relevant fiscal and policy
11committees of each house of the Legislature, a report on its
12activities related to community choice aggregation. The report
13shall include detailed information on the formal procedures
14established by the commission in order to monitor and ensure
15compliance by electrical corporations with Section 366.2 and any
16code of conduct or associated rules adopted by the commission
17pursuant to Section 707. The report shall include, but not be limited
18to, all of the following information:

19(a) (1) A detailed description of the commission’s process for
20enabling communities interested in becoming community choice
21aggregators, communities currently in the process of becoming
22community choice aggregators, and existing community choice
23aggregators to obtain timely utility compliance with paragraph
24(9) of subdivision (c) of Section 366.2.

25(2) The description shall include the process provided by the
26commission to allow prospective or existing community choice
27aggregators to identify specific matters on which the electrical
28corporation is not considered to be cooperating fully. For each
29identified matter, the prospective or existing community choice
30aggregator shall detail in writing the issue, the lack of full
31cooperation, and the personnel at the electrical corporation with
32whom the community choice aggregator is working. The electrical
33corporation shall be required to respond in writing by providing
34a specific solution to the matter raised by the prospective or
35existing community choice aggregator, including a date-specific
36timeline for accomplishing the solution, and the names of personnel
37responsible for providing the solution.

38(3) The commission’s report to the Legislature shall provide a
39detailed summary of each matter identified and initiated by the
40community choice aggregator, and a detailed verification of the
P33   1electrical corporation’s actions taken to address and resolve these
2issues, including verification of the satisfaction of the community
3choice aggregator. The report shall also itemize any matters that
4have been improperly raised by the community choice aggregator
5using this process.

6(b) A detailed description of information obtained by the
7commission from the electrical corporations in order to monitor
8the electrical corporations’ activities and expenditures made to
9facilitate, or oppose, community choice aggregation. The
10information shall include an itemization of all activities undertaken
11by an electrical corporation, as identified by the commission or
12by a community pursuing community choice aggregation, the costs
13of those activities, and whether the costs were paid by ratepayers
14or shareholders of the electrical corporation. For each activity,
15the commission shall provide a detailed explanation as to whether
16the activity or expenditure is legally permissible, and, if not, of the
17actions taken by the commission in response.

18(c) A detailed description of the actions taken by the commission
19to ensure customer requirements relative to customers exercising
20their option not to participate in community choice aggregation
21pursuant to Section 366.2 are properly implemented and to ensure
22full compliance by an electrical corporation. The description shall
23include an itemization of all actions taken by the commission to
24ensure compliance with these requirements and a detailed
25description of the commission’s formal process for monitoring
26and ensuring timely compliance with the requirements.

end insert
27

begin deleteSEC. 33.end delete
28begin insertSEC. 38.end insert  

Section 913.5 is added to the Public Utilities Code,
29to read:

30

913.5.  

In order to evaluate the progress of the state’s electrical
31corporations in complying with the California Renewables Portfolio
32Standard Program (Article 16 (commencing with Section 399.11)
33of Chapter 2.3), the commission shall report to the Legislature on
34or before the first day of each quarter on all of the following:

35(a) The progress of each electrical corporation in meeting the
36renewables portfolio standard, as defined in Section 399.12.

37(b) For each electrical corporation, an implementation schedule
38to achieve the renewables portfolio standard procurement
39requirements, including all substantive actions that have been taken
40or will be taken to achieve the program procurement requirements.

P34   1(c) Any renewable energy procurement plan approved by the
2commission pursuant to Section 399.13, schedule, and status report
3for all substantive procurement, transmission development, and
4other activities that the commission has approved to be undertaken
5by an electrical corporation to achieve the procurement
6requirements of the renewables portfolio standard.

begin delete7

SEC. 34.  

Section 913.8 is added to the Public Utilities Code,
8to read:

9

913.8.  

In the report prepared pursuant to Section 913.7, the
10commission shall include an assessment of each electrical
11corporation’s and each gas corporation’s implementation of the
12program developed pursuant to Section 25943 of the Public
13Resources Code.

end delete
14

begin deleteSEC. 35.end delete
15begin insertSEC. 39.end insert  

Section 913.12 is added to the Public Utilities Code,
16to read:

17

913.12.  

The commission shall provide a progress report to the
18Legislature by January 30 of each odd-numbered year concerning
19policies on rates, equipment, and infrastructure implemented by
20the commission and other state agencies, federal and local
21governmental agencies, and private industry to facilitate the use
22of electricity to power, and natural gas to fuel, low-emission
23vehicles.

24

begin deleteSEC. 36.end delete
25begin insertSEC. 40.end insert  

Section 913.13 is added to the Public Utilities Code,
26to read:

27

913.13.  

On or before June 30 of each year, the commission
28shall submit to the Legislature an assessment of the success of the
29California Solar Initiative program. That assessment shall include
30the number of residential and commercial sites that have installed
31solar thermal devices for which an award was made pursuant to
32subdivision (b) of Section 2851 and the dollar value of the award,
33the number of residential and commercial sites that have installed
34solar energy systems, the electrical generating capacity of the
35installed solar energy systems, the cost of the program, total
36electrical system benefits, including the effect on electrical service
37rates, environmental benefits, how the program affects the
38operation and reliability of the electrical grid, how the program
39has affected peak demand for electricity, the progress made toward
40 reaching the goals of the program, whether the program is on
P35   1schedule to meet the program goals, and recommendations for
2improving the program to meet its goals. If the commission
3allocates additional moneys to research, development, and
4demonstration that explores solar technologies and other distributed
5generation technologies pursuant to paragraph (1) of subdivision
6(c) of Section 2851, the commission shall include in the assessment
7submitted to the Legislature, a description of the program, a
8summary of each award made or project funded pursuant to the
9program, including the intended purposes to be achieved by the
10particular award or project, and the results of each award or project.

11

begin deleteSEC. 37.end delete
12begin insertSEC. 41.end insert  

Section 913.14 is added to the Public Utilities Code,
13to read:

14

913.14.  

The commission shall annually report to the Legislature
15on its implementation of Section 785.

begin delete16

SEC. 38.  

Section 913.15 is added to the Public Utilities Code,
17to read:

18

913.15.  

An action taken by the commission on a safety
19recommendation letter or advisory bulletin concerning gas pipeline
20safety issued by the federal National Transportation Safety Board
21(NTSB) shall be reported annually, in detail, to the Legislature
22with the report required by Section 910. Correspondence from the
23NTSB that indicates that a recommendation of the NTSB has been
24closed following an action that the NTSB finds unacceptable shall
25be noted in the report required by Section 910.

end delete
26

begin deleteSEC. 39.end delete
27begin insertSEC. 42.end insert  

Section 914 is added to the Public Utilities Code, to
28read:

29

914.  

The commission shall annually report the information
30required to be reported by public utilities pursuant to Section 7912,
31to the Assembly Committee on Utilities and Commerce and the
32Senate Committee on Energy, Utilities and Communications, or
33their successor committees, and within a reasonable time thereafter,
34shall make the information available to the public on its Internet
35Web site.

36

begin deleteSEC. 40.end delete
37begin insertSEC. 43.end insert  

Section 914.1 is added to the Public Utilities Code,
38to read:

39

914.1.  

The commission shall annually report to the Legislature,
40in a document that can be made public, information relative to the
P36   1actions undertaken by the commission implementing the lifeline
2telecommunications universal service program pursuant to
3subdivision (a) of Section 873.

4

begin deleteSEC. 41.end delete
5begin insertSEC. 44.end insert  

Section 914.2 is added to the Public Utilities Code,
6to read:

7

914.2.  

The commission, in its annual report prepared pursuant
8to Section 914.1, shall assess whether having telephone
9corporations provide the name and address of its lifeline customers
10to other public utilities for the purpose of low-income ratepayer
11assistance outreach efforts has been helpful in the low-income
12ratepayer assistance outreach efforts.

13

begin deleteSEC. 42.end delete
14begin insertSEC. 45.end insert  

Section 914.3 is added to the Public Utilities Code,
15to read:

16

914.3.  

By July 1begin insert ofend insert each year, the commission shall submit to
17the Governor and the Legislature a report that includes, based on
18yearend data, on an aggregated basis, the information submitted
19by holders pursuant to subdivision (b) of Section 5960. All
20informationbegin delete submitted to the commission andend delete reported by the
21commission pursuant to this section shall be disclosed to the public
22only as provided for pursuant to Section 583. No individually
23identifiable customer or subscriber information shall be subject to
24public disclosure.

25

begin deleteSEC. 43.end delete
26begin insertSEC. 46.end insert  

Section 914.4 is added to the Public Utilities Code,
27to read:

28

914.4.  

The commission shall annually report the information
29required to be reported by holders of state franchises pursuant to
30Section 5920, to the Assembly Committee on Utilities and
31Commerce and the Senate Committee on Energy, Utilities and
32Communications, or their successor committees, and within a
33reasonable time thereafter, shall make the information available
34to the public on its Internet Web site.

35

begin deleteSEC. 44.end delete
36begin insertSEC. 47.end insert  

Section 914.5 is added to the Public Utilities Code,
37to read:

38

914.5.  

(a) The commission shall prepare and submit to the
39Legislature, on or before March 1 of each year, a report on the
40fiscal status of the programs established and funded pursuant to
P37   1Sections 2881, 2881.1, and 2881.2. The report shall include a
2statement of the surcharge level established pursuant to subdivision
3(g) of Section 2881 and revenues produced by the surcharge, an
4accounting of program expenses, and an evaluation of options for
5controlling those expenses and increasing program efficiency,
6including, but not limited to, all of the following proposals:

7(1) The establishment of a means test for persons to qualify for
8program equipment or free or reduced charges for the use of
9telecommunication services.

10(2) If and to the extent not prohibited under Section 401 of the
11federal Americans with Disabilities Act of 1990 (Public Law
12101-336), as amended (47 U.S.C. Sec. 225), the imposition of
13limits or other restrictions on maximum usage levels for the relay
14service, which shall include the development of a program to
15provide basic communications requirements to all relay users at
16discounted rates, including discounted toll-call rates, and, for usage
17in excess of those basic requirements, at rates that recover the full
18costs of service.

19(3) More efficient means for obtaining and distributing
20equipment to qualified subscribers.

21(4) The establishment of quality standards for increasing the
22efficiency of the relay system.

23(5) Any modification to the program in order to maximize
24participation and funding opportunity under similar federal
25programs.

26(b) Pursuant to Section 10231.5 of the Government Code, this
27section is repealed on January 1, 2021.

28

begin deleteSEC. 45.end delete
29begin insertSEC. 48.end insert  

Section 914.6 is added to the Public Utilities Code,
30to read:

31

914.6.  

The commission shall report to the Legislature and the
32Governor annually on the effectiveness of the program
33administered pursuant to subdivision (c) of Section 280.5.

34

begin deleteSEC. 46.end delete
35begin insertSEC. 49.end insert  

Section 914.7 is added to the Public Utilities Code,
36to read:

37

914.7.  

(a) By January 1begin insert ofend insert each year, the commission shall
38provide a report to the Legislature that includes all of the following
39information:

P38   1(1) The amount of funds expended from the California Advanced
2Services Fund in the prior year.

3(2) The recipients of funds expended from the California
4Advanced Services Fund in the prior year.

5(3) The geographic regions of the state affected by funds
6expended from the California Advanced Services Fund in the prior
7year.

8(4) The expected benefits to be derived from the funds expended
9from the California Advanced Services Fund in the prior year.

10(5) Actual broadband adoption levels from the funds expended
11from the California Advanced Services Fund in the prior year.

12(6) The amount of funds expended from the California Advanced
13Services Fund used to match federal funds.

14(7) An update on the expenditures from California Advanced
15Services Fund and broadband adoption levels, and an accounting
16of remaining unserved and underserved households and areas of
17the state.

18(8) The status of the California Advanced Services Fund balance
19and the projected amount to be collected in each year through 2020
20to fund approved projects.

21(b) Pursuant to Section 10231.5 of the Government Code, this
22section is repealed on January 1, 2021.

23

begin deleteSEC. 47.end delete
24begin insertSEC. 50.end insert  

Section 915 of the Public Utilities Code is amended
25and renumbered to read:

26

911.  

(a) Beginning February 1, 2016, the commission shall
27annually publish a report that includes all investigations into gas
28or electric service safety incidents reported, pursuant to commission
29requirements, by any gas corporation or electrical corporation. The
30report shall succinctly describe each safety investigation concluded
31during the prior calendar year and each investigation that remains
32open. The categories within the description shall include the month
33of the safety incident, the reason for the investigation, the facility
34type involved, and the owner of the facility.

35(b) The commission shall include in its workplan, required
36pursuant to Section 910, a summary of the staff safety
37investigations concluded during the prior calendar year and the
38staff safety investigations that remain open for any gas corporation
39or electrical corporation, with a link to the Internet Web site with
P39   1the report that contains the information required pursuant to
2subdivision (a).

3

begin deleteSEC. 48.end delete
4begin insertSEC. 51.end insert  

Section 916 is added to the Public Utilities Code, to
5read:

6

916.  

On or before November 30 of each year, the commission
7shall report to the Legislature on its rail safety activities.

8

begin deleteSEC. 49.end delete
9begin insertSEC. 52.end insert  

Section 916.1 is added to the Public Utilities Code,
10to read:

11

916.1.  

Thebegin delete division of the commission responsible for consumer
12protection and safety shall investigateend delete
begin insert commission shall annually
13report the results of its investigation pursuant to subdivision (d)
14of Section 7661 relative toend insert
any incident that results in a notification
15required pursuant to subdivision (b) of Section 7661,begin delete and shall
16reportend delete
begin insert includingend insert its findings concerning the cause or causesbegin delete to the
17commission.end delete
begin insert of the incident and any action undertaken by the
18commission in response to those findings.end insert
The commissionbegin delete shall
19include the division’s reportend delete
begin insert may include the information required
20to be reported pursuant to this sectionend insert
in its report to the
21Legislature pursuant to Sectionbegin delete 916.2.end deletebegin insert 916.end insert

22

begin deleteSEC. 50.end delete
23begin insertSEC. 53.end insert  

Section 916.4 is added to the Public Utilities Code,
24to read:

25

916.4.  

An action taken by the commission on a safety
26recommendation letter or safety advisory pursuant to Section 765
27shall be reported annually, in detail, to the Legislature with the
28report required by Section 910. Correspondence from the federal
29National Transportation Safety Board indicating that a
30recommendation has been closed following an action that the
31federal National Transportation Safety Board finds unacceptable
32shall be noted in the report required by Section 910.

begin delete33

SEC. 51.  

Section 919 is added to the Public Utilities Code, to
34read:

35

919.  

The Independent System Operator shall report to the
36Oversight Board, at such times as the Oversight Board may specify,
37on the development and implementation of the standards in relation
38to facilities under the operational control of the Independent System
39Operator. The Independent System Operator shall require each
40transmission facility owner or operator to report annually on its
P40   1compliance with the standards. That report shall be made available
2to the public.

end delete
begin delete3

SEC. 52.  

Section 919.1 is added to the Public Utilities Code,
4to read:

5

919.1.  

The commission shall require each electrical corporation
6to report annually on its compliance with the standards or rules
7adopted by the commission pursuant to Section 364. That report
8shall be made available to the public, except that the commission
9may, consistent with other provisions of law, withhold from the
10public information generated or obtained pursuant to this section
11that it deems would pose a security threat to the public if disclosed.

end delete
12

begin deleteSEC. 53.end delete
13begin insertSEC. 54.end insert  

Section begin delete919.2end deletebegin insert919end insert is added to the Public Utilities Code,
14to read:

15

begin delete919.2.end delete
16begin insert919.end insert  

(a) The Antelope Valley Fairgrounds shall submit biennial
17reports to the commission and to the Legislature relative to the
18Antelope Valley Fairgrounds EE and PV Synergy Demonstration
19Project. The reports shall include actual recorded electricity usage
20by the fairgrounds and electricity produced by the photovoltaic
21solar energy system at the fairgrounds, on a time-of-use basis. A
22final report shall be submitted to the commission and to the
23Legislature within six months of the conclusion of the
24demonstration project. The final report shall include an analysis
25of the energy and cost savings achieved at the fairgrounds, the
26effectiveness of combining investment in energy efficiency and a
27photovoltaic solar energy system on the same site, the performance
28and durability of the photovoltaic solar energy system over the life
29of the demonstration project, and recommendations for optimizing
30ratepayer investment in energy efficiency and photovoltaic solar
31energy systems.

32(b) This section shall remain in effect only until January 1, 2017,
33and as of that date is repealed, unless a later enacted statute, that
34is enacted before January 1, 2017, deletes or extends that date.

35begin insert

begin insertSEC. 55.end insert  

end insert

begin insertSection 920 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
36read:end insert

begin insert
37

begin insert920.end insert  

(a) (1) Unless expressly directed otherwise, a report to
38be submitted to the Legislature pursuant to this article is to be
39submitted in compliance with Section 9795 of the Government
40Code, except that an electronic copy may be submitted to the
P41   1Secretary of the Senate, unless specifically requested to submit a
2printed copy of the report, with an electronic copy submitted to
3Legislative Counsel in compliance with subdivision (c) of Section
410242.5 of the Government Code.

5(2) Any report that is expressly directed to be submitted to a
6committee of the Legislature shall be submitted as an electronic
7copy, unless specifically requested to submit a printed copy by
8chair of that committee, with an electronic copy submitted to
9 Legislative Counsel in compliance with subdivision (c) of Section
1010242.5 of the Government Code.

11(b) Any report required to be submitted to the Governor
12pursuant to this article shall be submitted as an electronic copy
13unless specifically requested to submit a printed copy of the report
14by the Governor.

end insert
15

begin deleteSEC. 54.end delete
16begin insertSEC. 56.end insert  

Section 958.5 of the Public Utilities Code is amended
17to read:

18

958.5.  

(a) Twice a year, or as determined by the commission,
19each gas corporation shall file with the division of the commission
20responsible for consumer protection and safety a gas transmission
21and storage safety report. The division of the commission
22responsible for consumer protection and safety shall review the
23reports to monitor each gas corporation’s storage and
24pipeline-related activities to assess whether the projects that have
25been identified as high risk are being carried out, and to track
26whether the gas corporation is spending its allocated funds on these
27storage and pipeline-related safety, reliability, and integrity
28activities for which they have received approval from the
29commission.

30(b) The gas transmission and storage safety report shall include
31a thorough description and explanation of the strategic planning
32and decisionmaking approach used to determine and rank the gas
33storage projects, intrastate transmission line safety, integrity, and
34reliability, operation and maintenance activities, and inspections
35of its intrastate transmission lines. If there has been no change in
36the gas corporation’s approach for determining and ranking which
37projects and activities are prioritized since the previous gas
38transmission and storage safety report, the subsequent report may
39reference the immediately preceding report.

P42   1(c) If the division of the commission responsible for consumer
2protection and safety determines that there is a deficiency in a gas
3corporation’s prioritization or administration of the storage or
4pipeline capital projects or operation and maintenance activities,
5the division shall bring the problems to the commission’s
6immediate attention.

7

begin deleteSEC. 55.end delete
8begin insertSEC. 57.end insert  

Section 960 of the Public Utilities Code is amended
9to read:

10

960.  

(a) When the federal National Transportation Safety
11Board (NTSB) submits a safety recommendation letter concerning
12gas pipeline safety to the commission, the commission shall provide
13the NTSB with a formal written response to each recommendation
14not later than 90 days after receiving the letter. The response shall
15state one of the following:

16(1) The commission’s intent to implement the recommendations
17in full, with a proposed timetable for implementation of the
18recommendations.

19(2) The commission’s intent to implement part of the
20recommendations, with a proposed timetable for implementation
21of those recommendations, and detailed reasons for the
22commission’s refusal to implement those recommendations that
23 the commission does not intend to implement.

24(3) The commission’s refusal to implement the
25recommendations, with detailed reasons for the commission’s
26refusal to implement the recommendations.

27(b) If the NTSB issues a safety recommendation letter
28concerning any commission-regulated gas pipeline facility to the
29United States Department of Transportation, the federal Pipeline
30and Hazardous Materials Safety Administration (PHMSA), a gas
31corporation, or the commission, or the PHMSA issues an advisory
32bulletin concerning any commission-regulated gas pipeline facility,
33the commission shall determine if implementation of the
34recommendation or advisory is appropriate. The basis for the
35commission’s determination shall be detailed in writing and shall
36be approved by a majority vote of the commission.

37(c) If the commission determines that a safety recommendation
38made by the NTSB is appropriate or that action concerning an
39advisory bulletin is necessary, the commission shall issue orders
40or adopt rules to implement the safety recommendation or advisory
P43   1as soon as practicable. In implementing the safety recommendation
2or advisory, the commission shall consider whether a more
3effective, or equally effective and less costly, alternative exists to
4address the safety issue that the recommendation or advisory
5addresses.

6

begin deleteSEC. 56.end delete
7begin insertSEC. 58.end insert  

Section 2851 of the Public Utilities Code, as amended
8by Section 41 of Chapter 24 of the Statutes of 2015, is amended
9to read:

10

2851.  

(a) In implementing the California Solar Initiative, the
11commission shall do all of the following:

12(1) (A) The commission shall authorize the award of monetary
13incentives for up to the first megawatt of alternating current
14generated by solar energy systems that meet the eligibility criteria
15established by the Energy Commission pursuant to Chapter 8.8
16(commencing with Section 25780) of Division 15 of the Public
17Resources Code. The commission shall determine the eligibility
18of a solar energy system, as defined in Section 25781 of the Public
19Resources Code, to receive monetary incentives until the time the
20Energy Commission establishes eligibility criteria pursuant to
21Section 25782. Monetary incentives shall not be awarded for solar
22energy systems that do not meet the eligibility criteria. The
23incentive level authorized by the commission shall decline each
24year following implementation of the California Solar Initiative,
25at a rate of no less than an average of 7 percent per year, and,
26except as provided in subparagraph (B), shall be zero as of
27December 31, 2016. The commission shall adopt and publish a
28schedule of declining incentive levels no less than 30 days in
29advance of the first decline in incentive levels. The commission
30may develop incentives based upon the output of electricity from
31the system, provided those incentives are consistent with the
32declining incentive levels of this paragraph and the incentives
33apply to only the first megawatt of electricity generated by the
34system.

35(B) The incentive level for the installation of a solar energy
36system pursuant to Section 2852 shall be zero as of December 31,
372021.

38(2) The commission shall adopt a performance-based incentive
39program so that by January 1, 2008, 100 percent of incentives for
40solar energy systems of 100 kilowatts or greater and at least 50
P44   1percent of incentives for solar energy systems of 30 kilowatts or
2greater are earned based on the actual electrical output of the solar
3energy systems. The commission shall encourage, and may require,
4performance-based incentives for solar energy systems of less than
530 kilowatts. Performance-based incentives shall decline at a rate
6of no less than an average of 7 percent per year. In developing the
7performance-based incentives, the commission may:

8(A) Apply performance-based incentives only to customer
9classes designated by the commission.

10(B) Design the performance-based incentives so that customers
11may receive a higher level of incentives than under incentives
12based on installed electrical capacity.

13(C) Develop financing options that help offset the installation
14costs of the solar energy system, provided that this financing is
15ultimately repaid in full by the consumer or through the application
16of the performance-based rebates.

17(3) By January 1, 2008, the commission, in consultation with
18the Energy Commission, shall require reasonable and cost-effective
19energy efficiency improvements in existing buildings as a condition
20of providing incentives for eligible solar energy systems, with
21appropriate exemptions or limitations to accommodate the limited
22financial resources of low-income residential housing.

23(4) Notwithstanding subdivision (g) of Section 2827, the
24commission may develop a time-variant tariff that creates the
25maximum incentive for ratepayers to install solar energy systems
26 so that the system’s peak electricity production coincides with
27California’s peak electricity demands and that ensures that
28ratepayers receive due value for their contribution to the purchase
29of solar energy systems and customers with solar energy systems
30continue to have an incentive to use electricity efficiently. In
31developing the time-variant tariff, the commission may exclude
32customers participating in the tariff from the rate cap for residential
33customers for existing baseline quantities or usage by those
34customers of up to 130 percent of existing baseline quantities, as
35required by Section 739.9. Nothing in this paragraph authorizes
36the commission to require time-variant pricing for ratepayers
37without a solar energy system.

38(b) Notwithstanding subdivision (a), in implementing the
39California Solar Initiative, the commission may authorize the award
40of monetary incentives for solar thermal and solar water heating
P45   1devices, in a total amount up to one hundred million eight hundred
2thousand dollars ($100,800,000).

3(c) (1) In implementing the California Solar Initiative, the
4commission shall not allocate more than fifty million dollars
5($50,000,000) to research, development, and demonstration that
6explores solar technologies and other distributed generation
7technologies that employ or could employ solar energy for
8generation or storage of electricity or to offset natural gas usage.
9Any program that allocates additional moneys to research,
10development, and demonstration shall be developed in
11collaboration with the Energy Commission to ensure there is no
12duplication of efforts, and adopted by the commission through a
13rulemaking or other appropriate public proceeding. Any grant
14awarded by the commission for research, development, and
15demonstration shall be approved by the full commission at a public
16meeting. This subdivision does not prohibit the commission from
17 continuing to allocate moneys to research, development, and
18demonstration pursuant to the self-generation incentive program
19for distributed generation resources originally established pursuant
20to Chapter 329 of the Statutes of 2000, as modified pursuant to
21Section 379.6.

22(2) The Legislature finds and declares that a program that
23provides a stable source of monetary incentives for eligible solar
24energy systems will encourage private investment sufficient to
25make solar technologies cost effective.

26(d) (1) The commission shall not impose any charge upon the
27consumption of natural gas, or upon natural gas ratepayers, to fund
28the California Solar Initiative.

29(2) Notwithstanding any other provision of law, any charge
30imposed to fund the program adopted and implemented pursuant
31to this section shall be imposed upon all customers not participating
32in the California Alternate Rates for Energy (CARE) or family
33electric rate assistance (FERA) programs, including those
34residential customers subject to the rate limitation specified in
35Section 739.9 for existing baseline quantities or usage up to 130
36percent of existing baseline quantities of electricity.

37(3) The costs of the program adopted and implemented pursuant
38to this section shall not be recovered from customers participating
39in the California Alternate Rates for Energy or CARE program
40established pursuant to Section 739.1, except to the extent that
P46   1program costs are recovered out of the nonbypassable system
2benefits charge authorized pursuant to Section 399.8.

3(e) Except as provided in subdivision (f), in implementing the
4California Solar Initiative, the commission shall ensure that the
5total cost over the duration of the program does not exceed three
6billion five hundred fifty million eight hundred thousand dollars
7($3,550,800,000). Except as provided in subdivision (f), financial
8components of the California Solar Initiative shall consist of the
9following:

10(1) Programs under the supervision of the commission funded
11by charges collected from customers of San Diego Gas and Electric
12Company, Southern California Edison Company, and Pacific Gas
13and Electric Company. Except as provided in subdivision (f), the
14total cost over the duration of these programs shall not exceed two
15billion three hundred sixty-six million eight hundred thousand
16dollars ($2,366,800,000) and includes moneys collected directly
17into a tracking account for support of the California Solar Initiative.

18(2) Programs adopted, implemented, and financed in the amount
19of seven hundred eighty-four million dollars ($784,000,000), by
20charges collected by local publicly owned electric utilities pursuant
21to Section 2854. Nothing in this subdivision shall give the
22commission power and jurisdiction with respect to a local publicly
23owned electric utility or its customers.

24(3) (A) Programs for the installation of solar energy systems
25on new construction (New Solar Homes Partnership Program),
26administered by the Energy Commission, and funded by charges
27in the amount of four hundred million dollars ($400,000,000),
28collected from customers of San Diego Gas and Electric Company,
29Southern California Edison Company, and Pacific Gas and Electric
30Company. If the commission is notified by the Energy Commission
31that funding available pursuant to Section 25751 of the Public
32Resources Code for the New Solar Homes Partnership Program
33and any other funding for the purposes of this paragraph have been
34exhausted, the commission may require an electrical corporation
35to continue administration of the program pursuant to the guidelines
36established for the program by the Energy Commission, until the
37funding limit authorized by this paragraph has been reached. The
38commission may determine whether a third party, including the
39Energy Commission, should administer the utility’s continuation
40of the New Solar Homes Partnership Program. The commission,
P47   1in consultation with the Energy Commission, shall supervise the
2administration of the continuation of the New Solar Homes
3Partnership Program by an electrical corporation or third-party
4administrator. After the exhaustion of funds, the Energy
5Commission shall notify the Joint Legislative Budget Committee
630 days prior to the continuation of the program. This subparagraph
7shall become inoperative on June 1, 2018.

8(B) If the commission requires a continuation of the program
9pursuant to subparagraph (A), any funding made available pursuant
10to the continuation program shall be encumbered through the
11issuance of rebate reservations by no later than June 1, 2018, and
12disbursed by no later than December 31, 2021.

13(4) The changes made to this subdivision by Chapter 39 of the
14Statutes of 2012 do not authorize the levy of a charge or any
15increase in the amount collected pursuant to any existing charge,
16nor do the changes add to, or detract from, the commission’s
17existing authority to levy or increase charges.

18(f) Upon the expenditure or reservation in any electrical
19corporation’s service territory of the amount specified in paragraph
20(1) of subdivision (e) for low-income residential housing programs
21pursuant to subdivision (c) of Section 2852, the commission shall
22authorize the continued collection of the charge for the purposes
23of Section 2852. The commission shall ensure that the total amount
24collected pursuant to this subdivision does not exceed one hundred
25eight million dollars ($108,000,000). Upon approval by the
26commission, an electrical corporation may use amounts collected
27pursuant to subdivision (e) for purposes of funding the general
28market portion of the California Solar Initiative, that remain
29unspent and unencumbered after December 31, 2016, to reduce
30the electrical corporation’s portion of the total amount collected
31pursuant to this subdivision.

32

begin deleteSEC. 57.end delete
33begin insertSEC. 59.end insert  

Section 2881 of the Public Utilities Code is amended
34to read:

35

2881.  

(a) The commission shall design and implement a
36program to provide a telecommunications device capable of serving
37the needs of individuals who are deaf or hearing impaired, together
38with a single party line, at no charge additional to the basic
39exchange rate, to a subscriber who is certified as an individual
40who is deaf or hearing impaired by a licensed physician and
P48   1surgeon, audiologist, or a qualified state or federal agency, as
2determined by the commission, and to a subscriber that is an
3organization representing individuals who are deaf or hearing
4impaired, as determined and specified by the commission pursuant
5to subdivision (h). A licensed hearing aid dispenser may certify
6the need of an individual to participate in the program if that
7individual has been previously fitted with an amplified device by
8the dispenser and the dispenser has the individual’s hearing records
9on file prior to certification. In addition, a physician assistant may
10certify the needs of an individual who has been diagnosed by a
11physician and surgeon as being deaf or hearing impaired to
12participate in the program after reviewing the medical records or
13copies of the medical records containing that diagnosis.

14(b) The commission shall also design and implement a program
15to provide a dual-party relay system, using third-party intervention
16to connect individuals who are deaf or hearing impaired and offices
17of organizations representing individuals who are deaf or hearing
18impaired, as determined and specified by the commission pursuant
19to subdivision (h), with persons of normal hearing by way of
20intercommunications devices for individuals who are deaf or
21hearing impaired and the telephone system, making available
22reasonable access of all phases of public telephone service to
23telephone subscribers who are deaf or hearing impaired. In order
24to make a dual-party relay system that will meet the requirements
25of individuals who are deaf or hearing impaired available at a
26reasonable cost, the commission shall initiate an investigation,
27conduct public hearings to determine the most cost-effective
28method of providing dual-party relay service to the deaf or hearing
29impaired when using a telecommunications device, and solicit the
30advice, counsel, and physical assistance of statewide nonprofit
31consumer organizations of the deaf, during the development and
32implementation of the system. The commission shall apply for
33certification of this program under rules adopted by the Federal
34Communications Commission pursuant to Section 401 of the
35federal Americans with Disabilities Act of 1990 (Public Law
36101-336).

37(c) The commission shall also design and implement a program
38whereby specialized or supplemental telephone communications
39equipment may be provided to subscribers who are certified to be
40disabled at no charge additional to the basic exchange rate. The
P49   1certification, including a statement of visual or medical need for
2specialized telecommunications equipment, shall be provided by
3a licensed optometrist, physician and surgeon, or physician
4assistant, acting within the scope of practice of his or her license,
5or by a qualified state or federal agency as determined by the
6commission. The commission shall, in this connection, study the
7feasibility of, and implement, if determined to be feasible, personal
8income criteria, in addition to the certification of disability, for
9determining a subscriber’s eligibility under this subdivision.

10(d) (1) The commission shall also design and implement a
11program to provide access to a speech-generating device to any
12subscriber who is certified as having a speech disability at no
13charge additional to the basic exchange rate. The certification shall
14be provided by a licensed physician, licensed speech-language
15pathologist, or qualified state or federal agency. The commission
16shall provide to a certified subscriber access to a speech-generating
17device that is all of the following:

18(A) A telecommunications device or a device that includes a
19telecommunications component.

20(B) Appropriate to meet the subscriber’s needs for access to,
21and use of, the telephone network, based on the recommendation
22of a licensed speech-language pathologist.

23(C) Consistent with the quality of speech-generating devices
24available for purchase in the state.

25(2) The commission shall adopt rules to implement this
26subdivision and subdivision (e) by January 1, 2014.

27(e) All of the following apply to any device or equipment
28described in this section that is classified as durable medical
29equipment under guidelines established by the United States
30Department of Health and Human Services:

31(1) It is the intent of the Legislature that the commission be the
32provider of last resort and that eligible subscribers first obtain
33coverage from any available public or private insurance.

34(2) The commission may require the subscriber to provide
35information about coverage for any or all of the cost of the device
36or equipment that is available from any public or private insurance,
37the cost to the subscriber of any deductible, copayment, or other
38relevant expense, and any related benefit cap information.

P50   1(3) The total cost of any device or equipment provided to a
2subscriber under this section shall not exceed the rate of
3reimbursement provided by Medi-Cal for that device or equipment.

4(f) Nothing in this section requires the commission to provide
5training to a subscriber on the use of a speech-generating device.

6(g) The commission shall establish a rate recovery mechanism
7through a surcharge not to exceed one-half of 1 percent uniformly
8applied to a subscriber’s intrastate telephone service, other than
9one-way radio paging service and universal telephone service,
10both within a service area and between service areas, to allow
11providers of the equipment and service specified in subdivisions
12(a), (b), (c), and (d) to recover costs as they are incurred under this
13section. The surcharge shall be in effect until January 1, 2020. The
14commission shall require that the programs implemented under
15this section be identified on subscribers’ bills, and shall establish
16a fund and require separate accounting for each of the programs
17implemented under this section.

18(h) The commission shall determine and specify those statewide
19organizations representing the deaf or hearing impaired that shall
20receive a telecommunications device pursuant to subdivision (a)
21or a dual-party relay system pursuant to subdivision (b), or both,
22and in which offices the equipment shall be installed in the case
23of an organization having more than one office.

24(i) The commission may direct a telephone corporation subject
25to its jurisdiction to comply with its determinations and
26specifications pursuant to this section.

27(j) The commission shall annually review the surcharge level
28and the balances in the funds established pursuant to subdivision
29(g). Until January 1, 2020, the commission may make, within the
30limits set by subdivision (g), any necessary adjustments to the
31surcharge to ensure that the programs supported thereby are
32adequately funded and that the fund balances are not excessive. A
33fund balance that is projected to exceed six months’ worth of
34projected expenses at the end of the fiscal year is excessive.

35(k) In order to continue to meet the access needs of individuals
36with functional limitations of hearing, vision, movement,
37manipulation, speech, and interpretation of information, the
38commission shall perform ongoing assessment of, and if
39appropriate, expand the scope of the program to allow for
P51   1additional access capability consistent with evolving
2telecommunications technology.

3(l) The commission shall structure the programs required by
4this section so that a charge imposed to promote the goals of
5universal service reasonably equals the value of the benefits of
6universal service to contributing entities and their subscribers.

7

begin deleteSEC. 58.end delete
8begin insertSEC. 60.end insert  

Section 2891 of the Public Utilities Code is amended
9to read:

10

2891.  

(a) No telephone or telegraph corporation shall make
11available to any other person or corporation, without first obtaining
12the residential subscriber’s consent, in writing, any of the following
13information:

14(1) The subscriber’s personal calling patterns, including any
15listing of the telephone or other access numbers called by the
16subscriber, but excluding the identification to the person called of
17the person calling and the telephone number from which the call
18was placed, subject to the restrictions in Section 2893, and also
19excluding billing information concerning the person calling which
20federal law or regulation requires a telephone corporation to
21provide to the person called.

22(2) The residential subscriber’s credit or other personal financial
23information, except when the corporation is ordered by the
24commission to provide this information to any electrical, gas, heat,
25telephone, telegraph, or water corporation, or centralized credit
26check system, for the purpose of determining the creditworthiness
27of new utility subscribers.

28(3) The services which the residential subscriber purchases from
29the corporation or from independent suppliers of information
30services who use the corporation’s telephone or telegraph line to
31provide service to the residential subscriber.

32(4) Demographic information about individual residential
33subscribers, or aggregate information from which individual
34identities and characteristics have not been removed.

35(b) Any residential subscriber who gives his or her written
36consent for the release of one or more of the categories of personal
37information specified in subdivision (a) shall be informed by the
38telephone or telegraph corporation regarding the identity of each
39person or corporation to whom the information has been released,
40upon written request. The corporation shall notify every residential
P52   1subscriber of the provisions of this subdivision whenever consent
2is requested pursuant to this subdivision.

3(c) Any residential subscriber who has, pursuant to subdivision
4(b), given written consent for the release of one or more of the
5categories of personal information specified in subdivision (a) may
6rescind this consent upon submission of a written notice to the
7telephone or telegraph corporation. The corporation shall cease to
8make available any personal information about the subscriber,
9within 30 days following receipt of notice given pursuant to this
10subdivision.

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

12(1) Information provided by residential subscribers for inclusion
13in the corporation’s directory of subscribers.

14(2) Information customarily provided by the corporation through
15directory assistance services.

16(3) Postal ZIP Code information.

17(4) Information provided under supervision of the commission
18to a collection agency by the telephone corporation exclusively
19for the collection of unpaid debts.

20(5) Information provided to an emergency service agency
21responding to a 911 telephone call or any other call communicating
22an imminent threat to life or property.

23(6) Information provided to a law enforcement agency in
24response to lawful process.

25(7) Information which is required by the commission pursuant
26to its jurisdiction and control over telephone and telegraph
27corporations.

28(8) Information transmitted between telephone or telegraph
29corporations pursuant to the furnishing of telephone service
30between or within service areas.

31(9) Information required to be provided by the corporation
32pursuant to rules and orders of the commission or the Federal
33Communications Commission regarding the provision over
34telephone lines by parties other than the telephone and telegraph
35corporations of telephone or information services.

36(10) The name and address of the lifeline customers of a
37telephone corporation provided by that telephone corporation to
38a public utility for the sole purpose of low-income ratepayer
39assistance outreach efforts. The telephone corporation receiving
40the information request pursuant to this paragraph may charge the
P53   1requesting utility for the cost of the search and release of the
2requested information.

3(11) Information provided in response to a request pursuant to
4subdivision (a) of Section 530.8 of the Penal Code.

5(e) Every violation is a grounds for a civil suit by the aggrieved
6residential subscriber against the telephone or telegraph corporation
7and its employees responsible for the violation.

8(f) For purposes of this section, “access number” means a telex,
9teletex, facsimile, computer modem, or any other code which is
10used by a residential subscriber of a telephone or telegraph
11corporation to direct a communication to another subscriber of the
12same or another telephone or telegraph corporation.

13

begin deleteSEC. 59.end delete
14begin insertSEC. 61.end insert  

Section 5006 of the Public Utilities Code is amended
15and renumbered to read:

16

918.  

The commission shall, within 30 days prior to
17commencement of the regular session of the Legislature, submit
18to the Governor a full and true report of transactions under Chapter
196 (commencing with Section 5001) of Division 2 during the
20preceding biennium, including a complete statement of receipts
21and expenditures during the period.

22

begin deleteSEC. 60.end delete
23begin insertSEC. 62.end insert  

Section 5012 of the Public Utilities Code is amended
24and renumbered to read:

25

912.1.  

The Public Utilities Commission shall conduct an audit
26of the expenditures of the funds received pursuant to Chapter 6
27(commencing with Section 5001) of Division 2 each fiscal year.
28The results of this audit shall be reported in writing, on or before
29February 15th of each year thereafter, with respect to the audit for
30the fiscal year ending on the previous June 30th, to the appropriate
31policy and budget committees of the respective houses of the
32Legislature.

33

begin deleteSEC. 61.end delete
34begin insertSEC. 63.end insert  

Section 5385.5 of the Public Utilities Code is repealed.

35

begin deleteSEC. 62.end delete
36begin insertSEC. 64.end insert  

Section 5387 of the Public Utilities Code is amended
37to read:

38

5387.  

(a) It is unlawful for the owner of a charter-party carrier
39of passengers to permit the operation of a vehicle upon a public
40highway for compensation without (1) having obtained from the
P54   1commission a certificate or permit pursuant to this chapter, (2)
2having complied with the vehicle identification requirements of
3Section 5385, and (3) having complied with the accident liability
4protection requirements of Section 5391.

5(b) A person who drives a bus for a charter-party carrier without
6having a current and valid driver’s license of the proper class, a
7passenger vehicle endorsement, or the required certificate shall be
8suspended from driving a bus of any kind, including, but not
9limited to, a bus, schoolbus, school pupil activity bus, or transit
10bus, with passengers for a period of five years pursuant to Section
1113369 of the Vehicle Code.

12(c) (1) A charter-party carrier shall have its authority to operate
13as a charter-party carrier permanently revoked by the commission
14or be permanently barred from receiving a permit or certificate
15from the commission if it commits any of the following acts:

16(A) Operates a bus without having been issued a permit or
17certificate from the commission.

18(B) Operates a bus with a permit that was suspended by the
19commission pursuant to Section 5378.5.

20(C) Commits three or more liability insurance violations within
21a two-year period for which it has been cited.

22(D) Operates a bus with a permit that was suspended by the
23commission during a period that the charter-party carrier’s liability
24insurance lapsed for which it has been cited.

25(E) Knowingly employs a busdriver who does not have a current
26and valid driver’s license of the proper class, a passenger vehicle
27endorsement, or the required certificate to drive a bus.

28(F) Has one or more buses improperly registered with the
29Department of Motor Vehicles.

30(2) The commission shall not issue a new permit or certificate
31to operate as a charter-party carrier if any officer, director, or owner
32of that charter-party carrier was an officer, director, or owner of
33a charter-party carrier that had its authority to operate as a
34charter-party carrier permanently revoked by the commission or
35that was permanently barred from receiving a permit or certificate
36from the commission pursuant to this subdivision.

37(d) An officer of the Department of the California Highway
38Patrol may impound a bus of a charter-party carrier for 30 days
39pursuant to Section 14602.9 of the Vehicle Code if the officer
P55   1determines that any of the following violations occurred while the
2busdriver was operating the bus of a charter-party carrier:

3(1) The driver was operating the bus of a charter-party carrier
4when the charter-party carrier did not have a permit or certificate
5issued by the commission.

6(2) The driver was operating the bus of a charter-party carrier
7when the charter-party carrier was operating the bus with a
8suspended permit or certificate from the commission.

9(3) The driver was operating the bus of a charter-party carrier
10without having a current and valid driver’s license of the proper
11class, a passenger vehicle endorsement, or the required certificate.

12

begin deleteSEC. 63.end delete
13begin insertSEC. 65.end insert  

Section 5920 of the Public Utilities Code is amended
14to read:

15

5920.  

A holder of a state franchise employing more than 750
16total employees in California shall annually report to the
17commission all of the following:

18(a) The number of California residents employed by the holder,
19calculated on a full-time or full-time equivalent basis.

20(b) The percentage of the holder’s total domestic workforce,
21calculated on a full-time or full-time equivalent basis.

22(c) The types and numbers of jobs by occupational classification
23held by residents of California employed by holders of state
24franchises and the average pay and benefits of those jobs and,
25separately, the number of out-of-state residents employed by
26independent contractors, companies, and consultants hired by the
27holder, calculated on a full-time or full-time equivalent basis, when
28the holder is not contractually prohibited from disclosing the
29information to the public. This paragraph applies only to those
30employees of an independent contractor, company, or consultant
31that are personally providing services to the holder, and does not
32apply to employees of an independent contractor, company, or
33consultant not personally performing services for the holder.

34(d) The number of net new positions proposed to be created
35directly by the holder of a state franchise during the upcoming
36year by occupational classifications and by category of full-time,
37part-time, temporary, and contract employees.

38

begin deleteSEC. 64.end delete
39begin insertSEC. 66.end insert  

Section 5960 of the Public Utilities Code is amended
40to read:

P56   1

5960.  

(a) For purposes of this section, “census tract” has the
2same meaning as used by the United States Census Bureau, and
3“household” has the same meaning as specified in Section 5890.

4(b) Every holder, no later than April 1, 2008, and annually no
5later than April 1 thereafter, shall report to the commission on a
6census tract basis the following information:

7(1) Broadband information:

8(A) The number of households to which the holder makes
9broadband available in this state. If the holder does not maintain
10this information on a census tract basis in its normal course of
11business, the holder may reasonably approximate the number of
12households based on information it keeps in the normal course of
13business.

14(B) The number of households that subscribe to broadband that
15the holder makes available in this state.

16(C) Whether the broadband provided by the holder utilizes
17wireline-based facilities or another technology.

18(2) Video information:

19(A) If the holder is a telephone corporation:

20(i) The number of households in the holder’s telephone service
21area.

22(ii) The number of households in the holder’s telephone service
23area that are offered video service by the holder.

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

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

26(ii) The number of households in the holder’s video service area
27that are offered video service by the holder.

28(3) Low-income household information:

29(i) The number of low-income households in the holder’s video
30service area.

31(ii) The number of low-income households in the holder’s video
32service area that are offered video service by the holder.

begin insert

33(c) All information submitted to the commission pursuant to
34this section shall be disclosed to the public only as provided for
35pursuant to Section 583.

end insert
36

begin deleteSEC. 65.end delete
37begin insertSEC. 67.end insert  

Section 7661 of the Public Utilities Code is amended
38to read:

39

7661.  

(a) The commission shall require every railroad
40corporation operating in this state to develop, within 90 days of
P57   1the effective date of the act adding this section, in consultation
2with, and with the approval of, the Office of Emergency Services,
3a protocol for rapid communications with the Office of Emergency
4Services, the Department of the California Highway Patrol, and
5designated county public safety agencies in an endangered area if
6there is a runaway train or any other uncontrolled train movement
7that threatens public health and safety.

8(b) A railroad corporation shall promptly notify the Office of
9Emergency Services, the Department of the California Highway
10Patrol, and designated county public safety agencies, through a
11communication to the Warning Center of the Office of Emergency
12Services, if there is a runaway train or any other uncontrolled train
13movement that threatens public health and safety, in accordance
14with the railroad corporation’s communications protocol developed
15pursuant to subdivision (a).

16(c) The notification required pursuant to subdivision (b) shall
17include the following information, whether or not an accident or
18spill occurs:

19(1) The information required by subdivision (c) of Section 7673.

20(2) In the event of a runaway train, a train list.

21(3) In the event of an uncontrolled train movement or
22uncontrolled movement of railcars, a track list or other inventory
23document if available.

begin insert

24(d) The division of the commission responsible for consumer
25protection and safety shall investigate any incident that results in
26a notification required pursuant to subdivision (b).

end insert
27

begin deleteSEC. 66.end delete
28begin insertSEC. 68.end insert  

Section 7711 of the Public Utilities Code is amended
29and renumbered to read:

30

916.2.  

The commission shall annually report to the Legislature,
31on or before July 1, on sites on railroad lines in the state it finds
32to be hazardous. The report shall include, but not be limited to,
33information on all of the following:

34(a) A list of all railroad derailment accident sites in the state on
35which accidents have occurred within at least the previous five
36years. The list shall describe the nature and probable causes of the
37accidents, if known, and shall indicate whether the accidents
38occurred at or near sites that the commission has determined,
39pursuant to subdivision (b), pose a local safety hazard.

P58   1(b) A list of all railroad sites in the state that the commission
2determines, pursuant to Section 20106 of Title 49 of the United
3States Code, pose a local safety hazard. The commission may
4submit in the annual report the list of railroad sites submitted in
5the immediate prior year annual report, and may amend or revise
6that list from the immediate prior year as necessary. Factors that
7the commission shall consider in determining a local safety hazard
8may include, but need not be limited to, all of the following:

9(1) The severity of grade and curve of track.

10(2) The value of special skills of train operators in negotiating
11the particular segment of railroad line.

12(3) The value of special railroad equipment in negotiating the
13particular segment of railroad line.

14(4) The types of commodities transported on or near the
15particular segment of railroad line.

16(5) The hazard posed by the release of the commodity into the
17environment.

18(6) The value of special railroad equipment in the process of
19safely loading, transporting, storing, or unloading potentially
20hazardous commodities.

21(7) The proximity of railroad activity to human activity or
22sensitive environmental areas.

23(8) A list of the root causes and significant contributing factors
24of all train accidents or derailments investigated.

25(c) In determining which railroad sites pose a local safety hazard
26pursuant to subdivision (b), the commission shall consider the
27history of accidents at or near the sites. The commission shall not
28limit its determination to sites at which accidents have already
29occurred, but shall identify potentially hazardous sites based on
30the criteria enumerated in subdivision (b) and all other criteria that
31the commission determines influence railroad safety. The
32commission shall also consider whether any local safety hazards
33at railroad sites have been eliminated or sufficiently remediated
34to warrant removal of the site from the list required under
35subdivision (b).

36(d) The commission may combine the information required to
37be reported by this section with the report prepared pursuant to
38Section 916.

P59   1

begin deleteSEC. 67.end delete
2begin insertSEC. 69.end insert  

Section 7712 of the Public Utilities Code is amended
3to read:

4

7712.  

On or before January 1, 1993, the commission shall adopt
5regulations, based on its findings and not inconsistent with federal
6law. The commission may amend or revise the regulations as
7necessary thereafter, to reduce the potential railroad hazards
8identified in Section 916.2. In adopting the regulations, the
9commission shall consider at least all of the following:

10(a) Establishing special railroad equipment standards for trains
11operated on railroad sites identified as posing a local safety hazard
12pursuant to subdivision (b) of Section 916.2. These standards may
13include, but need not be limited to, standards for all of the
14following:

15(1) Sizes, numbers, and configurations of locomotives.

16(2) Brakes.

17(b) Establishing special train operating standards for trains
18operated over railroad sites identified as posing a local safety
19hazard pursuant to subdivision (b) of Section 916.2. These
20standards may include, but need not be limited to, standards for
21all of the following:

22(1) Length, weight, and weight distribution of trains.

23(2) Speeds and accelerations of trains.

24(3) Hours of allowable travel.

25(c) Establishing special training, personnel, and performance
26standards for operators of trains that travel on railroad sites
27identified as posing a local safety hazard pursuant to subdivision
28(b) of Section 916.2.

29(d) Establishing special inspection and reporting standards for
30trains operated on railroad sites identified as posing a local safety
31hazard pursuant to subdivision (b) of Section 916.2.

32

begin deleteSEC. 68.end delete
33begin insertSEC. 70.end insert  

Section 7912 of the Public Utilities Code is amended
34to read:

35

7912.  

A public utility employing more than 750 total employees
36shall annually report to the commission all of the following:

37(a) The number of customers served in California by the public
38utility.

39(b) The percentage of the public utility’s total domestic customer
40base that resides in California.

P60   1(c) The number of California residents employed by the public
2utility, calculated on a full-time or full-time equivalent basis.

3(d) The percentage of the public utility’s total domestic
4workforce, calculated on a full-time or full-time equivalent basis,
5that resides in California.

6(e) The capital investment in the public utility’s tangible and
7intangible plant which ordinarily have a service life of more than
8one year, including plant used by the company or others in
9providing public utility services, in California during the yearly
10reporting period.

11(f) The number of California residents employed by independent
12contractors and consultants hired by the public utility, calculated
13on a full-time or full-time equivalent basis, when the public utility
14has obtained this information upon requesting it from the
15independent contractor or consultant, and the public utility is not
16contractually prohibited from disclosing the information to the
17public. This subdivision is inapplicable to contractors and
18consultants that are a public utility subject to the reporting
19requirements of this section. This paragraph applies only to those
20employees of an independent contractor or consultant that are
21personally providing services to the public utility, and does not
22apply to employees of an independent contractor or consultant not
23personally performing services for the public utility.

24

begin deleteSEC. 69.end delete
25begin insertSEC. 71.end insert  

Section 8283 of the Public Utilities Code is amended
26to read:

27

8283.  

(a) The commission shall require each electrical, gas,
28water, wireless telecommunications service provider, and telephone
29corporation with gross annual revenues exceeding twenty-five
30million dollars ($25,000,000) and their commission-regulated
31subsidiaries and affiliates, to submit annually, a detailed and
32verifiable plan for increasing procurement from women, minority,
33disabled veteran, and LGBT business enterprises in all categories,
34including, but not limited to, renewable energy, wireless
35telecommunications, broadband, smart grid, and rail projects.

36(b) These annual plans shall include short- and long-term goals
37and timetables, but not quotas, and shall include methods for
38encouraging both prime contractors and grantees to engage women,
39minority, disabled veteran, and LGBT business enterprises in
40subcontracts in all categories that provide subcontracting
P61   1opportunities, including, but not limited to, renewable energy,
2wireless telecommunications, broadband, smart grid, and rail
3projects.

4(c) The commission shall establish guidelines for all electrical,
5gas, water, wireless telecommunications service providers, and
6telephone corporations with gross annual revenues exceeding
7twenty-five million dollars ($25,000,000) and their
8commission-regulated subsidiaries and affiliates, to be utilized in
9establishing programs pursuant to this article.

10(d) Every electrical, gas, water, wireless telecommunications
11service provider, and telephone corporation with gross annual
12revenues exceeding twenty-five million dollars ($25,000,000) shall
13furnish an annual report to the commission regarding the
14implementation of programs established pursuant to this article in
15a form that the commission shall require, and at the time that the
16commission shall annually designate. The report shall include the
17information about LGBT business enterprises beginning with the
182016 report.

19(e) (1) The Legislature declares that each electrical, gas, water,
20mobile telephony service provider, and telephone corporation that
21is not required to submit a plan pursuant to subdivision (a) is
22encouraged to voluntarily adopt a plan for increasing women,
23minority, disabled veteran, and LGBT business enterprise
24procurement in all categories.

25(2) The Legislature declares that each cable television
26corporation and direct broadcast satellite provider is encouraged
27to voluntarily adopt a plan for increasing women, minority,
28disabled veteran, and LGBT business enterprise procurement and
29to voluntarily report activity in this area to the Legislature on an
30annual basis.

31

begin deleteSEC. 70.end delete
32begin insertSEC. 72.end insert  

Section 8367 of the Public Utilities Code is amended
33and renumbered to read:

34

913.11.  

By January 1, 2011, and by January 1 of each year
35thereafter, the commission shall report to the Governor and the
36Legislature on the commission’s recommendations for a smart
37grid, the plans and deployment of smart grid technologies by the
P62   1state’s electrical corporations, and the costs and benefits to
2ratepayers.



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