Amended in Senate April 12, 2016

Amended in Senate March 29, 2016

Senate Bill No. 1222

Introduced by Senator Hertzberg

February 18, 2016

An act begin insert to amend Section 830.11 of the Penal Code, end insert to repeal Section 25403 of the Public Resources Code, and to amend Sections begin insert 308.5, 309.7, end insert 353.13, 353.15, 454.1, 740.5, 910.4, 913.2, 913.4, 913.5, 913.10, 914.3, begin insert 918.1, end insert 956, begin insert 958.5, 2870, end insert 2872.5, 2892.1, begin insert 3368, end insert 5371.4, begin delete and 5381.5 of, end delete begin insert 5381.5, and 7661 of, to add Section 913.14 to, to add and repeal Section 913.15 of, end insert and to repeal Sections 318, 350, 747.5, 910.5, 910.6, 913.3, 913.6, 913.8, 913.9, 913.11, 913.13, begin insert 918.2, end insert 2714.5, 2827.3, 2845, and 2867.1 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 Commission (PUC), with jurisdiction over all public utilities. The California Constitution grants the PUC 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 PUC that is cognate and germane to the regulation of public utilities. Existing law requires the PUC to submit various reports to the Legislature, legislative committees, and the Governor, as specified.

This bill would change the date by which the PUC must submit specified reports, change the contents of specified reports, and repeal the provisions requiring the PUC to submit specified reports. The bill would repeal begin delete certain end delete begin insert a end insert reporting begin delete requirements end delete begin insert requirement end insert 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.

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.

This bill would repeal these requirements.

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.

This bill would repeal this reporting requirement.

begin insert

This bill would also make various technical changes, including, but not limited to, changes to the responsibilities of various divisions of the PUC.

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:

SECTION 1.  

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

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 830.11 of the end insert begin insert Penal Code end insert begin insert is amended to read: end insert

830.11.  

(a) The following persons are not peace officers but
may exercise the powers of arrest of a peace officer as specified
in Section 836 and the power to serve warrants as specified in
Sections 1523 and 1530 during the course and within the scope of
their employment, if they receive a course in the exercise of those
powers pursuant to Section 832. The authority and powers of the
persons designated under this section shall extend to any place in
the state:

(1) Persons employed by the Department of Business Oversight
designated by the Commissioner of Business Oversight, provided
that the primary duty of these persons shall be the enforcement of,
and investigations relating to, the provisions of law administered
by the Commissioner of Business Oversight.

(2) Persons employed by the Bureau of Real Estate designated
by the Real Estate Commissioner, provided that the primary duty
of these persons shall be the enforcement of the laws set forth in
Part 1 (commencing with Section 10000) and Part 2 (commencing
with Section 11000) of Division 4 of the Business and Professions
Code. The Real Estate Commissioner may designate persons under
this section, who at the time of their designation, are assigned to
the Special Investigations Unit, internally known as the Crisis
Response Team.

(3) Persons employed by the State Lands Commission
designated by the executive officer, provided that the primary duty
of these persons shall be the enforcement of the law relating to the
duties of the State Lands Commission.

(4) Persons employed as investigators of the Investigations
Bureau of the Department of Insurance, who are designated by the
Chief of the Investigations Bureau, provided that the primary duty
of these persons shall be the enforcement of the Insurance Code
and other laws relating to persons and businesses, licensed and
unlicensed by the Department of Insurance, who are engaged in
the business of insurance.

(5) Persons employed as investigators begin delete and investigator
supervisors of the Consumer Services Division or the Rail Safety
and Carrier Division of end delete begin insert by end insert the Public Utilities begin delete Commission end delete
begin insert Commission, end insert who are designated by the commission’s executive
director and approved by the commission, begin insert and their supervisors
up to the director level, end insert provided that the primary duty of these
persons shall be the enforcement of the law as that duty is set forth
in Section 308.5 of the Public Utilities Code.

(6) (A) Persons employed by the State Board of Equalization,
Investigations Division, who are designated by the board’s
executive director, provided that the primary duty of these persons
shall be the enforcement of laws administered by the State Board
of Equalization.

(B) Persons designated pursuant to this paragraph are not entitled
to peace officer retirement benefits.

(7) Persons employed by the Department of Food and
Agriculture and designated by the Secretary of Food and
Agriculture as investigators, investigator supervisors, and
investigator managers, provided that the primary duty of these
persons shall be enforcement of, and investigations relating to, the
Food and Agricultural Code or Division 5 (commencing with
Section 12001) of the Business and Professions Code.

(8) The Inspector General and those employees of the Office
of the Inspector General as designated by the Inspector General,
provided that the primary duty of those persons shall be the
enforcement of the law relating to the duties of the Office of the
Inspector General.

(b) Notwithstanding any other provision of law, persons
designated pursuant to this section may not carry firearms.

(c) Persons designated pursuant to this section shall be included
as “peace officers of the state” under paragraph (2) of subdivision
(c) of Section 11105 for the purpose of receiving state summary
criminal history information and shall be furnished that information
on the same basis as peace officers of the state designated in
paragraph (2) of subdivision (c) of Section 11105.

begin delete SEC. 2. end delete

begin insert SEC. 3. end insert   

Section 25403 of the Public Resources Code is
repealed.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 308.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

308.5.  

Persons employed as investigators begin delete and investigator
supervisors of the Consumer Services Division or the Rail Safety
and Carrier Division of end delete begin insert by end insert the begin delete commission end delete begin insert commission, end insert who are
designated by the commission’s executive director and approved
by the begin delete commission end delete begin insert commission, and their supervisors up to the
director level, end insert have the authority of peace officers, as specified in
paragraph (5) of subdivision (a) of Section 830.11 of the Penal
Code, while engaged in exercising the powers granted to or
performing the duties imposed upon them in investigating the begin delete laws end delete
begin insert laws, orders, or regulations end insert administered by the commission or
commencing directly or indirectly any criminal prosecution arising
from any investigation conducted under these laws. All persons
herein referred to shall be deemed to be acting within the scope
of employment with respect to all acts and matters set forth in this
section.

begin insert

begin insert SEC. 5. end insert   

end insert

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

309.7.  

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

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

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

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

begin delete SEC. 3. end delete

begin insert SEC. 6. end insert   

Section 318 of the Public Utilities Code is repealed.

begin delete SEC. 4. end delete

begin insert SEC. 7. end insert   

Section 350 of the Public Utilities Code is repealed.

begin delete SEC. 5. end delete

begin insert SEC. 8. end insert   

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

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.

(b) 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 delete SEC. 6. end delete

begin insert SEC. 9. end insert   

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

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 SEC. 7. end delete

begin insert SEC. 10. end insert   

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

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.

(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 delete SEC. 8. end delete

begin insert SEC. 11. end insert   

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

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 SEC. 9. end delete

begin insert SEC. 12. end insert   

Section 747.5 of the Public Utilities Code is repealed.

begin delete SEC. 10. end delete

begin insert SEC. 13. 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 delete SEC. 11. end delete

begin insert SEC. 14. end insert   

Section 910.5 of the Public Utilities Code is repealed.

begin delete SEC. 12. end delete

begin insert SEC. 15. end insert   

Section 910.6 of the Public Utilities Code is repealed.

begin delete SEC. 13. end delete

begin insert SEC. 16. 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. 14. end delete

begin insert SEC. 17. end insert   

Section 913.3 of the Public Utilities Code is repealed.

begin delete SEC. 15. end delete

begin insert SEC. 18. 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 begin insert for the preceding calendar year end insert 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. begin delete The first report shall include all costs commencing
January 1, 2003. Subsequent reports shall include only costs for
the preceding calendar year. end delete

(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. 16. end delete

begin insert SEC. 19. 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. 17. end delete

begin insert SEC. 20. end insert   

Section 913.6 of the Public Utilities Code is repealed.

begin delete SEC. 18. end delete

begin insert SEC. 21. end insert   

Section 913.8 of the Public Utilities Code is repealed.

begin delete SEC. 19. end delete

begin insert SEC. 22. end insert   

Section 913.9 of the Public Utilities Code is repealed.

begin delete SEC. 20. end delete

begin insert SEC. 23. 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 begin delete State end delete Energy begin delete Resources Conservation
and Development end delete Commission, shall begin delete study, end delete begin insert study end insert and submit a
report to the Legislature and the begin delete Governor, end delete begin insert Governor end insert 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. 21. end delete

begin insert SEC. 24. end insert   

Section 913.11 of the Public Utilities Code is repealed.

begin delete SEC. 22. end delete

begin insert SEC. 25. end insert   

Section 913.13 of the Public Utilities Code is repealed.

begin insert

begin insert SEC. 26. end insert   

end insert

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

begin insert

begin insert 913.14. end insert   

On or before July 30, 2020, and by July 30 of every
third year thereafter through 2029, the commission shall submit
to the Legislature an assessment of the Multifamily Affordable
Housing Solar Roofs Program. That assessment shall include the
number of qualified multifamily affordable housing property sites
that have a qualifying solar energy system for which an award
was made pursuant to Chapter 9.5 (commencing with Section
2870) of Part 2 and the dollar value of the award, the electrical
generating capacity of the qualifying renewable energy system,
the bill reduction outcomes of the program for the participants,
the cost of the program, the total electrical system benefits, the
environmental benefits, the progress made toward reaching the
goals of the program, the program’s impact on the CARE program
budget, and the recommendations for improving the program to
meet its goals. The report shall include an analysis of pending
program commitments, reservations, obligations, and projected
demands for the program to determine whether future ongoing
funding allocations for the program are substantiated. The report
shall also include a summary of the other programs intended to
benefit disadvantaged communities, including, but not limited to,
the Single-Family Affordable Solar Homes Program, the
Multifamily Affordable Solar Housing Program, and the Green
Tariff Shared Renewables Program (Chapter 7.6 (commencing
with Section 2831) of Part 2).

end insert

begin insert

begin insert SEC. 27. end insert   

end insert

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

begin insert

begin insert 913.15. end insert   

(a) 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.

(b) This section shall remain in effect only until January 1, 2023,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2023, deletes or extends that date.

end insert

begin delete SEC. 23. end delete

begin insert SEC. 28. 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 insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 918.1 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

918.1.  

(a) The commission shall hire an independent entity
for not more than two hundred fifty thousand dollars ($250,000)
to, in consultation with carrier trade associations for industries
under the jurisdiction of the commission, assess the begin delete commission’s end delete
capabilities begin insert of the commission’s Transportation Enforcement
Branch end insert to carry out the activities specified in subdivision (b) of
Section 5102 begin delete and end delete begin insert and subdivision (b) of Section 5352. The
commission end insert shall report to the Legislature no later than begin delete January end delete
begin insert February end insert 1, begin delete 2017. end delete begin insert 2017, on licensing matters and no later than
July 1, 2017, on enforcement matters. end insert The report shall contain an
analysis of current capabilities and deficiencies, and
recommendations to overcome any deficiencies identified.

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

(c) Pursuant to Section 10231.5 of the Government Code, this
section shall remain in effect only until January 1, 2021, and as of
that date is repealed, unless a later enacted statute, that is enacted
before January 1, 2021, deletes or extends that date.

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 918.2 of the end insert begin insert Public Utilities Code end insert begin insert is repealed. end insert

begin delete

918.2.  

(a) The commission shall hire an independent entity
for not more than two hundred fifty thousand dollars ($250,000)
to, in consultation with carrier trade associations for industries
under the jurisdiction of the commission, assess the commission’s
capabilities to carry out the activities specified in subdivision (b)
of Section 5352 and shall report to the Legislature no later than
January 1, 2017. The report shall contain an analysis of current
capabilities and deficiencies, and recommendations to overcome
any deficiencies identified.

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

(c) Pursuant to Section 10231.5 of the Government Code, this
section shall remain in effect only until January 1, 2021, and as of
that date is repealed, unless a later enacted statute, that is enacted
before January 1, 2021, deletes or extends that date.

(d) The commission may combine the information required to
be reported by this section with the report prepared pursuant to
Section 918.1.

end delete

begin delete SEC. 24. end delete

begin insert SEC. 31. end insert   

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

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 insert

begin insert SEC. 32. end insert   

end insert

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

958.5.  

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

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

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

begin delete SEC. 25. end delete

begin insert SEC. 33. end insert   

Section 2714.5 of the Public Utilities Code is repealed.

begin delete SEC. 26. end delete

begin insert SEC. 34. end insert   

Section 2827.3 of the Public Utilities Code is repealed.

begin delete SEC. 27. end delete

begin insert SEC. 35. end insert   

Section 2845 of the Public Utilities Code is repealed.

begin delete SEC. 28. end delete

begin insert SEC. 36. end insert   

Section 2867.1 of the Public Utilities Code is repealed.

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 2870 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

2870.  

(a) As used in this section, the following terms have the
following meanings:

(1) “CARE program” means the California Alternate Rates for
Energy program established pursuant to Section 739.1.

(2) “Program” means the Multifamily Affordable Housing Solar
Roofs Program established pursuant to this chapter.

(3) “Qualified multifamily affordable housing property” means
a multifamily residential building of at least five rental housing
units that is operated to provide deed-restricted low-income
residential housing, as defined in clause (i) of subparagraph (A)
of paragraph (3) of subdivision (a) of Section 2852, and that meets
one or more of the following requirements:

(A) The property is located in a disadvantaged community, as
identified by the California Environmental Protection Agency
pursuant to Section 39711 of the Health and Safety Code.

(B) At least 80 percent of the households have incomes at or
below 60 percent of the area median income, as defined in
subdivision (f) of Section 50052.5 of the Health and Safety Code.

(4) “Solar energy system” means a solar energy photovoltaic
device that meets or exceeds the eligibility criteria established
pursuant to Section 25782 of the Public Resources Code.

(b) (1) Adoption and implementation of the Multifamily
Affordable Housing Solar Roofs Program may count toward the
satisfaction of the commission’s obligation to ensure that specific
alternatives designed for growth among residential customers in
disadvantaged communities are offered as part of the standard
contract or tariff authorized pursuant to paragraph (1) of
subdivision (b) of Section 2827.1.

(2) Nothing in this section shall preclude electrical corporations
from offering and administering a distributed energy resource
program, including solar energy systems, in disadvantaged
communities offered under current or proposed programs using
funds provided under subdivision (c) of Section 748.5 or programs
proposed to comply with paragraph (1) of subdivision (b) as
approved by the commission.

(c) The commission shall annually authorize the allocation of
one hundred million dollars ($100,000,000) or 10 percent of
available funds, whichever is less, from the revenues described in
subdivision (c) of Section 748.5 for the Multifamily Affordable
Housing Solar Roofs Program, beginning with the fiscal year
commencing July 1, 2016, and ending with the fiscal year ending
June 30, 2020. The commission shall continue authorizing the
allocation of these funds through June 30, 2026, if the commission
determines that revenues are available after 2020 and that there is
adequate interest and participation in the program.

(d) The commission shall consider the most appropriate program
administration structure, including administration by a qualified
third-party administrator, selected by the commission through a
competitive bidding process, or administration by an electrical
corporation, in an existing or future proceeding.

(e) Not more than 10 percent of the funds allocated to the
program shall be used for administration.

(f) (1) By June 30, 2017, the commission shall authorize the
award of monetary incentives for qualifying solar energy systems
that are installed on qualified multifamily affordable housing
properties through December 31, 2030. The target of the program
is to install a combined generating capacity of at least 300
megawatts on qualified properties.

(2) The commission shall require that the electricity generated
by qualifying renewable energy systems installed pursuant to the
program be primarily used to offset electricity usage by low-income
tenants. These requirements may include required covenants and
restrictions in deeds.

(3) The commission shall require that qualifying solar energy
systems owned by third-party owners are subject to contractual
restrictions to ensure that no additional costs for the system be
passed on to low-income tenants at the properties receiving
incentives pursuant to the program. The commission shall require
third-party owners of solar energy systems to provide ongoing
operations and maintenance of the system, monitor energy
production, and, where necessary, take appropriate action to ensure
that the kWh production levels projected for the system are
achieved throughout the period of the third-party agreement. Such
actions may include, but are not limited to, providing a performance
guarantee of annual production levels or taking corrective actions
to resolve underproduction problems.

(4) The commission shall ensure that incentive levels for
photovoltaic installations receiving incentives through the program
are aligned with the installation costs for solar energy systems in
affordable housing markets and take account of federal investment
tax credits and contributions from other sources to the extent
feasible.

(5) The commission shall require that no individual installation
receive incentives at a rate greater than 100 percent of the total
system installation costs.

(6) The commission shall establish local hiring requirements
for the program to provide economic development benefits to
disadvantaged communities.

(7) The commission shall establish energy efficiency
requirements that are equal to the energy efficiency requirements
established for the program described in Section 2852, including
participation in a federal, state, or utility-funded energy efficiency
program or documentation of a recent energy efficiency retrofit.

(g) (1) Low-income tenants who participate in the program
shall receive credits on utility bills from the program. The
commission shall ensure that utility bill reductions are achieved
through tariffs that allow for the allocation of credits, such as
virtual net metering tariffs designed for Multifamily Affordable
Solar Housing Program participants, or other tariffs that may be
adopted by the commission pursuant to Section 2827.1.

(2) The commission shall ensure that electrical corporation tariff
structures affecting the low-income tenants participating in the
program continue to provide a direct economic benefit from the
qualifying solar energy system.

(h) Nothing in this chapter is intended to supplant CARE
program rates as the primary mechanism for achieving the goals
of the CARE program.

(i) The commission shall determine the eligibility of qualified
multifamily affordable housing property tenants that are customers
of community choice aggregators.

begin delete

(j) (1) On or before July 30, 2020, and by July 30 of every third
year thereafter through 2029, the commission shall submit to the
Legislature an assessment of the Multifamily Affordable Housing
Solar Roofs Program. That assessment shall include the number
of qualified multifamily affordable housing property sites that have
a qualifying solar energy system for which an award was made
pursuant to this chapter and the dollar value of the award, the
electrical generating capacity of the qualifying renewable energy
system, the bill reduction outcomes of the program for the
participants, the cost of the program, the total electrical system
benefits, the environmental benefits, the progress made toward
reaching the goals of the program, the program’s impact on the
CARE program budget, and the recommendations for improving
the program to meet its goals. The report shall include an analysis
of pending program commitments, reservations, obligations, and
projected demands for the program to determine whether future
ongoing funding allocations for the program are substantiated. The
report shall also include a summary of the other programs intended
to benefit disadvantaged communities, including, but not limited
to, the Single-Family Affordable Solar Homes Program, the
Multifamily Affordable Solar Housing Program, and the Green
Tariff Shared Renewables Program (Chapter 7.6 (commencing
with Section 2831)).

(2)

end delete

begin insert (j) end insert begin insert   end insert begin insert (1) end insert  Every three years, the commission shall evaluate the
program’s expenditures, commitments, uncommitted balances,
future demands, performance, and outcomes and shall make any
necessary adjustments to the program to ensure the goals of the
program are being met. If, upon review, the commission finds
there is insufficient participation in the program, the commission
may credit uncommitted funds back to ratepayers pursuant to
Section 748.5.

begin delete

(3)

end delete

begin insert (2) end insert  As part of the annual workplan required pursuant to Section
begin delete 321.6, end delete begin insert 910, end insert the commission shall provide an annual update of the
Multifamily Affordable Housing Solar Roofs Program that shall
include, but not be limited to, the number of projects approved,
number of projects completed, number of pending projects awaiting
approval, and geographic distribution of the projects.

begin delete SEC. 29. end delete

begin insert SEC. 38. end insert   

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

2872.5.  

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 SEC. 30. end delete

begin insert SEC. 39. end insert   

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

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 insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 3368 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

begin delete

3368.  

(a) The commission, in consultation with the Energy
Commission, shall prepare and submit to the authority and to the
Legislature, within 90 days of the effective date of the act adding
this section, a report on the present, planned, and required future
capacity of the state’s natural gas transportation and storage system
to provide adequate, seasonally reliable amounts of competitively
priced natural gas to residential, commercial, and industrial
customers, including, but not limited to, electric generating plants.

(b) 

end delete

begin insert

begin insert 3368. end insert   

end insert

begin insert (a) end insert begin insert   end insert begin insert The end insert authority may provide financing for natural gas
transportation or storage projects recommended to it by the
commission. In recommending a project to the authority, the
commission shall ensure that the project is in the public interest.

begin delete

(c)

end delete

begin insert (b) end insert  Nothing in this section prevents the commission from acting
on its own authority to direct gas corporations within its jurisdiction
to construct, or facilitate the construction or operation, by the
owners or operators of pipelines not within the jurisdiction of the
commission, of, natural gas transportation and storage facilities
as the commission determines to be needed to provide adequate,
seasonally reliable amounts of competitively priced natural gas to
residential, commercial, and industrial customers, including, but
not limited to, electric generating plants.

begin delete SEC. 31. end delete

begin insert SEC. 41. end insert   

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

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.

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

(f) Notwithstanding subdivisions (a) to (e), 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.

(g) Notwithstanding subdivisions (a) to (e), 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.

(h) 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 delete SEC. 32. end delete

begin insert SEC. 42. end insert   

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

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
(g) 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.

begin insert

begin insert SEC. 43. end insert   

end insert

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

7661.  

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

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

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

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

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

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

(d) The division of the commission responsible for begin delete consumer
protection and end delete begin insert railroad end insert safety shall investigate any incident that
results in a notification required pursuant to subdivision (b).