Amended in Senate March 29, 2016

Senate Bill No. 1222

Introduced by Senator Hertzberg

February 18, 2016

An act to begin insert repeal Section 25403 of the Public Resources Code, and to end insert amend Sections begin insert 353.13, 353.15, 454.1, 740.5, end insert 910.4, 913.2, 913.4, 913.5, 913.10, 914.3, begin delete 914.7 end delete begin insert 956, 2872.5, 2892.1, 5371.4, and 5381.5 end insert of, and to repeal Sections begin insert 318, 350, 747.5, 910.5, end insert 910.6, 913.3, 913.6, 913.8, 913.9, 913.11, begin delete and 913.13 end delete begin insert 913.13, 2714.5, 2827.3, 2845, and 2867.1 end insert of, the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL’S DIGEST

SB 1222, as amended, Hertzberg. Public Utilities Commission: reports.

The California Constitution establishes the Public Utilities begin delete Commission, end delete begin insert Commission (PUC), end insert with jurisdiction over all public utilities. The California Constitution grants the begin delete commission end delete begin insert PUC end insert certain general powers over all public utilities, subject to control by the Legislature, and authorizes the Legislature to confer additional authority and jurisdiction upon the begin delete commission end delete begin insert PUC end insert that is cognate and germane to the regulation of public utilities. Existing law requires the begin delete commission end delete begin insert PUC end insert to submit various reports to the Legislature, legislative committees, and the Governor, as specified.

This bill would change the date by which the begin delete commission end delete begin insert PUC end insert must submit specified reports, change the contents of specified reports, and repeal the provisions requiring the begin delete commission end delete begin insert PUC end insert to submit specified reports. begin insert The bill would repeal certain reporting requirements of electrical corporations and the PUC with respect to the 21st Century Energy System Decision, as defined. The bill would repeal a requirement that the PUC conduct a zero-based budget for all of its programs by January 10, 2015. end insert

begin insert

Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to submit to the PUC and to any local publicly owned electric utility recommendations designed to reduce wasteful, unnecessary, or uneconomic energy consumption resulting from specified practices, including differential rate structures, cost-of-service allocations, the disallowance of a business expense of advertising or promotional activities that encourage the use of electricity, peakload pricing, and other pricing measures. Existing law requires the PUC or local publicly owned electric utility to review and consider the recommendations of the Energy Commission and, within 6 months after the date it receives them, to report to the Governor and the Legislature its actions and reasons therefor with respect to each recommendation.

end insert begin insert

This bill would repeal these requirements.

end insert begin insert

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board (state board) as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board to report to the Governor and the Legislature by December 31, 2011, on the reduction in emissions of greenhouse gases resulting from the increase of new electrical generation that utilizes excess waste heat through combined heat and power systems and recommend policies that further the goals of the Waste Heat and Carbon Emissions Reduction Act.

end insert begin insert

This bill would repeal this reporting requirement.

end insert

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert This act shall be known, and may be cited, as the
Public Utilities Commission Accountability Act of 2016. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 25403 of the end insert begin insert Public Resources Code end insert begin insert is
repealed. end insert

begin delete

25403.  

The commission shall submit to the Public Utilities
Commission and to any publicly owned electric utility,
recommendations designed to reduce wasteful, unnecessary, or
uneconomic energy consumption resulting from practices
including, but not limited to, differential rate structures,
cost-of-service allocations, the disallowance of a business expense
of advertising or promotional activities which encourage the use
of electrical power, peakload pricing, and other pricing measures.
The Public Utilities Commission or publicly owned electric utility
shall review and consider such recommendations and shall, within
six months after the date it receives them, as prescribed by this
section, report to the Governor and the Legislature its actions and
reasons therefor with respect to such recommendations.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 318 of the end insert begin insert Public Utilities Code end insert begin insert is repealed. end insert

begin delete

318.  

The commission shall conduct a zero-based budget for
all of its programs by January 10, 2015. The zero-based budget
shall be completed for the entire commission, rather than on a
division-by-division basis.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 350 of the end insert begin insert Public Utilities Code end insert begin insert is repealed. end insert

begin delete

350.  

The Independent System Operator, in consultation with
the California Energy Resources Conservation and Development
Commission, the Public Utilities Commission, the Western
Electricity Coordinating Council, and concerned regulatory
agencies in other western states, shall within six months after the
Federal Energy Regulatory Commission approval of the
Independent System Operator, provide a report to the Legislature
and to the Oversight Board that does the following:

(a) Conducts an independent review and assessment of Western
Electricity Coordinating Council operating reliability criteria.

(b) Quantifies the economic cost of major transmission outages
relating to the Pacific Intertie, Southwest Power Link, DC link,
and other important high voltage lines that carry power both into
and from California.

(c) Identifies the range of cost-effective options that would
prevent or mitigate the consequences of major transmission
outages.

(d) Identifies communication protocols that may be needed to
be established to provide advance warning of incipient problems.

(e) Identifies the need for additional generation reserves and
other voltage support equipment, if any, or other resources that
may be necessary to carry out its functions.

(f) Identifies transmission capacity additions that may be
necessary at certain times of the year or under certain conditions.

(g) Assesses the adequacy of current and prospective
institutional provisions for the maintenance of reliability.

(h) Identifies mechanisms to enforce transmission right-of-way
maintenance.

(i) Contains recommendations regarding cost-beneficial
improvements to electric system reliability for the citizens of
California.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 353.13 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

353.13.  

(a) The commission shall require each electrical
corporation to establish new tariffs on or before January 1, 2003,
for customers using distributed energy resources, including, but
not limited to, those that do not meet all of the criteria described
in Section 353.1. However, after January 1, 2003, distributed
energy resources that meet all of the criteria described in Section
353.1 shall continue to be subject only to those tariffs in existence
pursuant to Section 353.3, until June 1, 2011, except that
installations that do not operate in a combined heat and power
application will be subject to those tariffs in existence pursuant to
Section 353.3 only until June 1, 2006. Those tariffs required
pursuant to this section shall ensure that all net distribution costs
incurred to serve each customer class, taking into account the actual
costs and benefits of distributed energy resources, proportional to
each customer class, as determined by the commission, are fully
recovered only from that class. The commission shall require each
electrical corporation, in establishing those rates, to ensure that
customers with similar load profiles within a customer class will,
to the extent practicable, be subject to the same utility rates,
regardless of their use of distributed energy resources to serve
onsite loads or over-the-fence transactions allowed under Sections
216 and 218. Customers with dedicated facilities shall remain
responsible for their obligations regarding payment for those
facilities.

begin delete

(b) The commission shall prepare and submit to the Legislature,
on or before June 1, 2002, a report describing its proposed
methodology for determining the new rates and the process by
which it will establish those rates.

end delete begin delete

(c)

end delete

begin insert (b) end insert  In establishing the tariffs, the commission shall consider
coincident peakload, and the reliability of the onsite generation,
as determined by the frequency and duration of outages, so that
customers with more reliable onsite generation and those that
reduce peak demand pay a lower cost-based rate.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 353.15 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

353.15.  

(a) In order to evaluate the efficiency, emissions, and
reliability of distributed energy resources with a capacity greater
than 10 kilowatts, customers that install those resources pursuant
to this article shall report to the commission, on an annual basis,
all of the following information, as recorded on a monthly basis:

(1) Heat rate for the resource.

(2) Total kilowatthours produced in the peak and off-peak
periods, as determined by the ISO.

(3) Emissions data for the resource, as required by the State Air
Resources Board or the appropriate air quality management district
or air pollution control district.

(b) The commission shall release the information submitted
pursuant to subdivision (a) in a manner that does not identify the
individual user of the distributed energy resource.

begin delete

(c) The commission, in consultation with the State Air Resources
Board, air quality management districts, air pollution control
districts, and the State Energy Resources Conservation and
Development Commission, shall evaluate the information
submitted pursuant to subdivision (a) and, within two years of the
effective date of the act adding this article, prepare and submit to
the Governor and the Legislature a report recommending any
changes to this article it determines necessary based upon that
information.

end delete

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 454.1 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

454.1.  

(a) Except as provided in subdivision (b), if a customer
with a maximum peak electrical demand in excess of 20 kilowatts
located or planning to locate within the service territory of an
electrical corporation receives a bona fide offer for electric service
from an irrigation district at rates less than the electrical
corporation’s tariffed rates, the electrical corporation may discount
its noncommodity rates, but may not discount its noncommodity
rates below its distribution marginal cost of serving that customer.
For purposes of this subdivision, the costs of the electric
commodity shall be excluded from both the irrigation district and
electric corporation’s rates. The electrical corporation may recover
any difference between its tariffed and discounted service from its
remaining customers, allocated as determined by the commission.
However, the reallocation may not increase rates to its remaining
customers by any greater amount than the rates would be increased
if the customer had taken electric distribution service from the
irrigation district and the irrigation district had paid the charge
established in subdivision (e) of Section 9607. Further, there shall
be a firewall preventing the reallocation of such differences
resulting from discounting to residential customers or to
commercial customers with maximum peak demands not in excess
of 20 kilowatts. begin delete The commission shall review the discounts
provided under this section by each electrical corporation and
report to the Legislature not later than January 15, 2003. The
review shall include an assessment of the effectiveness of the
discount levels and the rate impacts to customers of the discounts.
The commission shall include in its report a recommendation of
any changes that should be made to the discount levels in light of
other commission approved discount programs. end delete

(b) Subdivision (a) does not apply to a cumulative 75 megawatts
of load served by the Merced Irrigation District, determined as
follows:

(1) The load is located within the boundaries of Merced
Irrigation District, as those boundaries existed on December 20,
1995, together with the territory of Castle Air Force Base which
was located outside the district on that date.

(2) For purposes of this section, a megawatt of load shall be
calculated in accordance with the methodology established by the
California Energy Resource Conservation and Development
Commission in its Docket No. 96-IRR-1890.

(c) Subdivision (a) applies to the load of customers that move
to the areas described in paragraph (1) of subdivision (b) after
December 31, 2000, and such load shall be excluded from the
calculation of the 75 megawatts in subdivision (b).

(d) If an electrical corporation seeks to apply the discounts
permitted under subdivision (a) within the geographic area
described in subdivision (b) of Section 9610, the electrical
corporation’s resulting rate for distribution service may not be less
than 120 percent of the electrical corporation’s marginal
distribution cost of serving that customer.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 740.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

740.5.  

(a) For purposes of this section, “21st Century Energy
System Decision” means commission Decision 12-12-031
(December 20, 2012), Decision Granting Authority to Enter Into
a Research and Development Agreement with Lawrence Livermore
National Laboratory for 21st Century Energy Systems and for
costs up to $152.19 million, or any subsequent decision in
Application 11-07-008 (July 18, 2011), Application of Pacific Gas
and Electric Company (U39M), San Diego Gas and Electric
Company (U902E), and Southern California Edison Company
(U338E) for Authority to Increase Electric Rates and Charges to
Recover Costs of Research and Development Agreement with
Lawrence Livermore National Laboratory for 21st Century Energy
Systems.

(b) In implementing the 21st Century Energy System Decision,
the commission shall not authorize recovery from ratepayers of
any expense for research and development projects that are not
for purposes of cyber security and grid integration. Total funding
for research and development projects for purposes of cyber
security and grid integration pursuant to the 21st Century Energy
System Decision shall not exceed thirty-five million dollars
($35,000,000). All cyber security and grid integration research
and development projects shall be concluded by the fifth
anniversary of their start date.

(c) The commission shall not approve for recovery from
ratepayers those program management expenditures proposed,
commencing with page seven, in the joint advice letter filed by
the state’s three largest electrical corporations, Advice
3379-G/4215-E (Pacific Gas and Electric Company), Advice
2887-E (Southern California Edison Company), and Advice 2473-E
(San Diego Gas and Electric Company), dated April 19, 2013.
Project managers for the 21st Century Energy System Decision
shall be limited to three representatives, one representative each
from Pacific Gas and Electric Company, Southern California
Edison Company, and San Diego Gas and Electric Company.

(d) The commission shall require the Lawrence Livermore
National Laboratory, as a condition for entering into any contract
pursuant to the 21st Century Energy System Decision, and Pacific
Gas and Electric Company, Southern California Edison Company,
and San Diego Gas and Electric Company to ensure that research
parameters reflect a new contribution to cyber security and that
there not be a duplication of research being done by other private
and governmental entities.

begin delete

(e) (1) The commission shall require each participating
electrical corporation to prepare and submit to the commission by
December 1, 2013, a joint report on the scope of all proposed
research projects, how the proposed project may lead to
technological advancement and potential breakthroughs in cyber
security and grid integration, and the expected timelines for
concluding the projects. The commission shall, within 30 days of
receiving the joint report, determine whether the report is sufficient
or requires revision and, upon determining that the report is
sufficient, submit the report to the Legislature in compliance with
Section 9795 of the Government Code.

(2) The commission shall require each participating electrical
corporation to prepare and submit to the commission, by 60 days
following the conclusion of all research and development projects,
a joint report summarizing the outcome of all funded projects,
including an accounting of expenditures by the project managers
and grant recipients on administrative and overhead costs and
whether the project resulted in any technological advancements
or breakthroughs in promoting cyber security and grid integration.
The commission shall, within 30 days of receiving the joint report,
determine whether the report is sufficient or requires revision and,
upon determining that the report is sufficient, submit the report to
the Legislature in compliance with Section 9795 of the Government
Code.

(3) This subdivision shall become inoperative on January 1,
2023, pursuant to Section 10231.5 of the Government Code.

end delete

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 747.5 of the end insert begin insert Public Utilities Code end insert begin insert is repealed. end insert

begin delete

747.5.  

The commission shall review its policies concerning
pricing of utility service and shall assess whether the pricing
policies promote the pursuit of energy efficiency by customers,
and shall report its assessment to the Legislature as soon as
practicable.

end delete

begin delete SECTION 1. end delete

begin insert SEC. 10. end insert   

Section 910.4 of the Public Utilities Code is amended
to read:

910.4.  

By February 1 of each year, the commission shall report
to the Joint Legislative Budget Committee and appropriate fiscal
and policy committees of the Legislature, on all sources and
amounts of funding and actual and proposed expenditures, both
in the two prior fiscal years and for the proposed fiscal year,
including any costs to ratepayers, related to both of the following:

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

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

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

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

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

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

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

(1) Section 379.6.

(2) Section 399.8.

(3) Section 739.1.

(4) Section 2790.

(5) Section 2851.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 910.5 of the end insert begin insert Public Utilities Code end insert begin insert is repealed. end insert

begin delete

910.5.  

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

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

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

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

(4) Endorsements of the foundation or its activities.

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

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

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

end delete

begin delete SEC. 2. end delete

begin insert SEC. 12. end insert   

Section 910.6 of the Public Utilities Code is repealed.

begin delete SEC. 3. end delete

begin insert SEC. 13. end insert   

Section 913.2 of the Public Utilities Code is amended
to read:

913.2.  

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

begin delete SEC. 4. end delete

begin insert SEC. 14. end insert   

Section 913.3 of the Public Utilities Code is repealed.

begin delete SEC. 5. end delete

begin insert SEC. 15. end insert   

Section 913.4 of the Public Utilities Code is amended
to read:

913.4.  

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

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

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

(b) The commission shall report all electrical corporation
revenue requirement increases associated with meeting the
renewables portfolio standard, as defined in Section 399.12,
including direct procurement costs for eligible renewable energy
resources and renewable energy credits.

(c) The commission shall report all cost savings experienced,
or costs avoided, by electrical corporations as a result of meeting
the renewables portfolio standard.

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

begin delete SEC. 6. end delete

begin insert SEC. 16. end insert   

Section 913.5 of the Public Utilities Code is amended
to read:

913.5.  

In order to evaluate the progress of the state’s electrical
corporations in complying with the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11)
of Chapter 2.3), the commission shall report to the Legislature no
later than November 1 of each year on all of the following:

(a) The progress and status of procurement activities by each
retail seller pursuant to the California Renewables Portfolio
Standard Program.

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

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

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

(e) Any barriers to, and policy recommendations for, achieving
the renewables portfolio standard pursuant to the California
Renewables Portfolio Standard Program.

begin delete SEC. 7. end delete

begin insert SEC. 17. end insert   

Section 913.6 of the Public Utilities Code is repealed.

begin delete SEC. 8. end delete

begin insert SEC. 18. end insert   

Section 913.8 of the Public Utilities Code is repealed.

begin delete SEC. 9. end delete

begin insert SEC. 19. end insert   

Section 913.9 of the Public Utilities Code is repealed.

begin delete SEC. 10. end delete

begin insert SEC. 20. end insert   

Section 913.10 of the Public Utilities Code is amended
to read:

913.10.  

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

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

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

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

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

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

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

(7) The effect on peak demand for electricity.

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

begin delete SEC. 11. end delete

begin insert SEC. 21. end insert   

Section 913.11 of the Public Utilities Code is repealed.

begin delete SEC. 12. end delete

begin insert SEC. 22. end insert   

Section 913.13 of the Public Utilities Code is repealed.

begin delete SEC. 13. end delete

begin insert SEC. 23. end insert   

Section 914.3 of the Public Utilities Code is amended
to read:

914.3.  

By December 31 of each year, the commission shall
submit to the Governor and the Legislature a report that includes,
based on yearend data, on an aggregated basis, the information
submitted by holders pursuant to subdivision (b) of Section 5960.
All information reported by the commission pursuant to this section
shall be disclosed to the public only as provided for pursuant to
Section 583. No individually identifiable customer or subscriber
information shall be subject to public disclosure.

begin delete

SEC. 14.  

Section 914.7 of the Public Utilities Code is amended
to read:

914.7.  

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

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

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

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

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

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

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

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

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

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

end delete

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 956 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

956.  

(a)  On or before July 1, 2012, the commission shall open
an appropriate proceeding or expand the scope of an existing
proceeding to establish compatible emergency response standards
that owners or operators of commission-regulated gas pipeline
facilities shall be required to follow for intrastate transmission and
distribution lines. The commission shall establish the standards to
ensure that intrastate transmission and distribution lines have
emergency response plans that adequately prepare them for a
natural disaster or malfunction that could cause injury to human
life or property, with the purpose of minimizing the occurrence of
both.

(b) The commission shall establish the compatible emergency
response standards in consultation with the California Emergency
Management Agency, the State Fire Marshal, and members of
California’s first responder community including, but not limited
to, members of the California Fire Chiefs Association.

(c) The compatible emergency response standards shall require
owners or operators of intrastate transmission and distribution lines
to implement emergency response plans that are compatible with
the United States Department of Transportation Pipeline and
Hazardous Materials Safety Administration’s regulations
concerning emergency plans contained in Section 192.615 of Title
49 of the Code of Federal Regulations, and those plans shall
include, but not be limited to, all of the following requirements:

(1) Emergency shutdown and pressure reduction shall be utilized
whenever deemed necessary and appropriate by the owners or
operators to minimize hazards to life or property. An owner or
operator shall notify appropriate first responders of emergency
shutdown and pressure reduction.

(2) During an emergency response effort, the incident
commander may direct coordination between first responders and
owners or operators to ensure timely and ongoing communication
on decisions for emergency shutdown and pressure reduction.

(3) Owners or operators of intrastate transmission and
distribution lines shall establish and maintain liaison with
appropriate fire, police, and other public officials to do all of the
following:

(A) Learn the responsibility and resources of each government
organization that may respond to a gas pipeline emergency,
including, but not limited to, the role of the incident commander
in an emergency.

(B) Acquaint the officials with the owner’s or operator’s ability
in responding to a gas pipeline emergency.

(C) Identify the types of gas pipeline emergencies of which the
owner or operator notifies the officials.

(D) Plan how the owner or operator and officials can engage in
mutual assistance to minimize hazards to life or property.

(E) Identify and update information on individual personnel
responsible for the liaison with the appropriate first responder
organizations.

(4) Owners and operators of intrastate transmission lines shall
provide the State Fire Marshal and the chief fire official of the
applicable city, county, city and county, or fire protection district
with instructions on how to access and utilize the National Pipeline
Mapping System developed by the United States Department of
Transportation, Pipeline and Hazardous Materials Safety
Administration, utilizing data submitted pursuant to Section 60132
of Title 49 of the United States Code, to improve local response
capabilities for pipeline emergencies.

begin delete

(d) (1) The commission shall report to the Legislature on the
status of establishing the compatible emergency response standards
on or before January 1, 2013.

end delete begin delete

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

end delete

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 2714.5 of the end insert begin insert Public Utilities Code end insert begin insert is
repealed. end insert

begin delete

2714.5.  

The commission shall, by June 30, 2008, prepare and
submit to the Legislature, a report that describes the progress
achieved toward implementing the policy objectives of the
commission’s Water Action Plan, adopted December 15, 2005,
which includes all of the following:

(a) The progress achieved toward development and
implementation of a ratemaking mechanism and rate design that
will encourage water conservation and efficient water use.

(b) The progress achieved toward development and
implementation of rates that remove the financial disincentive for
water corporations to conserve water that exists in the current rate
structure, while preserving continued revenue stability for water
corporations as new rate structures are implemented.

(c) The impacts of water conservation and efficiency programs
on future water, energy, and wastewater treatment costs to
customers of water corporations.

end delete

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 2827.3 of the end insert begin insert Public Utilities Code end insert begin insert is
repealed. end insert

begin delete

2827.3.  

(a) By October 1, 2013, the commission shall complete
a study to determine who benefits from, and who bears the
economic burden, if any, of, the net energy metering program
authorized pursuant to Section 2827, and to determine the extent
to which each class of ratepayers and each region of the state
receiving service under the net energy metering program is paying
the full cost of the services provided to them by electrical
corporations, and the extent to which those customers pay their
share of the costs of public purpose programs. In evaluating
program costs and benefits for purposes of the study, the
commission shall consider all electricity generated by renewable
electric generating systems, including the electricity used onsite
to reduce a customer’s consumption of electricity that otherwise
would be supplied through the electrical grid, as well as the
electrical output that is being fed back to the electrical grid for
which the customer receives credit or net surplus electricity
compensation under net energy metering. The study shall quantify
the costs and benefits of net energy metering to participants and
nonparticipants and shall further disaggregate the results by utility,
customer class, and household income groups within the residential
class. The study shall further gather and present data on the income
distribution of residential net energy metering participants. In order
to assess the costs and benefits at various levels of net energy
metering implementation, the study shall be conducted using
multiple net energy metering penetration scenarios, including, at
a minimum, the capacity needed to reach the solar photovoltaic
goals of the California Solar Initiative pursuant to Section 25780
of the Public Resources Code, and the estimated net energy
metering capacity under the 5-percent minimum requirement of
paragraphs (1) and (4) of subdivision (c) of Section 2827.

(b) (1) The commission shall report the results of the study to
the Legislature within 30 days of its completion.

(2) The report shall be submitted in compliance with Section
9795 of the Government Code.

(3) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on July 1, 2017.

end delete

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 2845 of the end insert begin insert Public Utilities Code end insert begin insert is repealed. end insert

begin delete

2845.  

The State Air Resources Board shall report to the
Governor and the Legislature by December 31, 2011, on the
reduction in emissions of greenhouse gases resulting from the
increase of new electrical generation that utilizes excess waste
heat through combined heat and power systems and recommend
policies that further the goals of this article.

end delete

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 2867.1 of the end insert begin insert Public Utilities Code end insert begin insert is
repealed. end insert

begin delete

2867.1.  

(a) Not later than July 1, 2010, the commission shall
report to the Legislature as to the effectiveness of the program and
make recommendations as to any changes that should be made to
the program. This report shall include justification for the size of
the rebate program in terms of total available incentive moneys as
well as the anticipated benefits of the program in its entirety. To
facilitate the understanding of how solar water heating systems
compare with other clean energy and energy efficiency
technologies, all documents related to and rebates provided by this
program shall be measured in both kWh_th and therms of natural
gas saved.

(b) Not later than February 1, 2014, the commission shall
complete a review of whether the rebate levels established by the
commission will be sufficient to spur investment to reach the
program goal of installing 200,000 solar water heating systems in
homes, businesses, and other buildings or facilities receiving
natural gas service throughout the state by 2017, and shall report
to the Legislature on the results of its review. The report submitted
pursuant to this subdivision shall be submitted in compliance with
Section 9795 of the Government Code.

end delete

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 2872.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

2872.5.  

begin delete (a) end delete begin delete   end delete The commission, in consultation with the Office
of Emergency Services, shall open an investigative proceeding to
determine whether standardized notification systems and protocol
should be utilized by entities that are authorized to use automatic
dialing-announcing devices pursuant to subdivision (e) of Section
2872, to facilitate notification of affected members of the public
of local emergencies. The commission shall not establish standards
for notification systems or standard notification protocol unless it
determines that the benefits of the standards exceed the costs.

begin delete

(b) Before January 1, 2008, the commission shall prepare and
submit to the Legislature a report on the results of the proceeding,
including recommendations for funding notification systems and
any statutory modifications needed to facilitate notification of
affected members of the public of local emergencies.

end delete

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 2892.1 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

2892.1.  

(a) For purposes of this section, “telecommunications
service” means voice communication provided by a telephone
corporation as defined in Section 234, voice communication
provided by a provider of satellite telephone services, voice
communication provided by a provider of mobile telephony service,
as defined in Section 2890.2, and voice communication provided
by a commercially available facilities-based provider of voice
communication services utilizing voice over Internet Protocol or
any successor protocol.

(b) The commission, in consultation with the Office of
Emergency Services, shall open an investigative or other
appropriate proceeding to identify the need for telecommunications
service systems not on the customer’s premises to have backup
electricity to enable telecommunications networks to function and
to enable the customer to contact a public safety answering point
operator during an electrical outage, to determine performance
criteria for backup systems, and to determine whether the best
practices recommended by the Network Reliability and
Interoperability Council in December 2005, for backup systems
have been implemented by telecommunications service providers
operating in California. If the commission determines it is in the
public interest, the commission shall, consistent with subdivisions
(c) and (d), develop and implement performance reliability
standards.

(c) The commission, in developing any standards pursuant to
the proceeding required by subdivision (b), shall consider current
best practices and technical feasibility for establishing battery
backup requirements.

(d) The commission shall not implement standards pursuant to
the proceeding required by subdivision (b) unless it determines
that the benefits of the standards exceed the costs.

(e) The commission shall determine the feasibility of the use of
zero greenhouse gas emission fuel cell systems to replace diesel
backup power systems.

begin delete

(f) Before January 1, 2008, the commission shall prepare and
submit to the Legislature a report on the results of the proceeding.

end delete

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 5371.4 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5371.4.  

(a) The governing body of any city, county, or city
and county may not impose a fee on charter-party carriers operating
limousines. However, the governing body of any city, county, or
city and county may impose a business license fee on, and may
adopt and enforce any reasonable rules and regulations pertaining
to operations within its boundaries for, any charter-party carrier
domiciled or maintaining a business office within that city, county,
or city and county.

(b) The governing body of any airport may not impose vehicle
safety, vehicle licensing, or insurance requirements on charter-party
carriers operating limousines that are more burdensome than those
imposed by the commission. However, the governing board of any
airport may require a charter-party carrier operating limousines to
obtain an airport permit for operating authority at the airport.

(c) Notwithstanding subdivisions (a) and (b), the governing
body of any airport may adopt and enforce reasonable and
nondiscriminatory local airport rules, regulations, and ordinances
pertaining to access, use of streets and roads, parking, traffic
control, passenger transfers, trip fees, and occupancy, and the use
of buildings and facilities, that are applicable to charter-party
carriers operating limousines on airport property.

(d) This section does not apply to any agreement entered into
pursuant to Sections 21690.5 to 21690.9, inclusive, between the
governing body of an airport and charter-party carriers operating
limousines.

begin delete

(e) The commission shall conduct an audit and review of the
annual gross revenues earned by charter-party carriers operating
limousines for the purpose of ascertaining whether the imposition
of additional fees based on a charter-party carrier’s gross annual
revenues would place an undue administrative or financial burden
on the charter-party carrier industry. The commission shall report
its findings to the Legislature on or before June 30, 1992.

end delete begin delete

(f)

end delete

begin insert (e) end insert  The governing body of any airport shall not impose a fee
based on gross receipts of charter-party carriers operating
limousines.

begin delete

(g)

end delete

begin insert (f) end insert  Notwithstanding subdivisions (a) to begin delete (f), end delete begin insert (e), end insert inclusive, nothing
in this section prohibits a city, county, city and county, or the
governing body of any airport, from adopting and enforcing
reasonable permit requirements, fees, rules, and regulations
applicable to charter-party carriers of passengers other than those
operating limousines.

begin delete

(h)

end delete

begin insert (g) end insert  Notwithstanding subdivisions (a) to begin delete (f), end delete begin insert (e), end insert inclusive, a city,
county, or city and county may impose reasonable rules for the
inspection of waybills of charter-party carriers of passengers
operating within the jurisdiction of the city, county, or city and
county, for purposes of verifying valid prearranged travel.

begin delete

(i)

end delete

begin insert (h) end insert  For the purposes of this section, “limousine” includes any
sedan or sport utility vehicle, of either standard or extended length,
with a seating capacity of not more than 10 passengers including
the driver, used in the transportation of passengers for hire on a
prearranged basis within this state.

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 5381.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

5381.5.  

(a) The commission shall, by rule or other appropriate
procedure, ensure that every charter-party carrier of passengers
operates on a prearranged basis within the state, consistent with
Section 5360.5. The commission shall require every charter-party
carrier of passengers to include on a waybill or trip report at least
all of the following:

(1) The name of at least one passenger in the traveling party,
or identifying information of the traveling party’s affiliation, along
with the point of origin and destination of the passenger or traveling
party.

(2) Information as to whether the transportation was arranged
by telephone, written contract, or electronic communication.

(b) A waybill or trip report may be kept in electronic or hardcopy
format. When requested by any commission or airport enforcement
officer or any official of a city, county, or city and county
authorized to inspect a waybill or trip report pursuant to subdivision
begin delete (h) end delete begin insert (g) end insert of Section 5371.4, the waybill or trip report may be provided
in either electronic or hardcopy format.

(c) A charter-party carrier of passengers shall produce in its
office a hardcopy of any waybill or trip report when requested by
the commission or one of its authorized representatives pursuant
to Section 5389.

(d) This section shall become operative on January 1, 2014.