Amended in Assembly June 16, 2016

Amended in Senate May 31, 2016

Amended in Senate April 27, 2016

Amended in Senate April 12, 2016

Amended in Senate March 29, 2016

Senate BillNo. 1222


Introduced by Senator Hertzberg

February 18, 2016


An act to amend Section 830.11 of the Penal Code, to add Section 25229 to, and to repeal Section 25403 of, the Public Resources Code, and to amend Sections 308.5, 309.7, 353.13, 353.15,begin insert 365.1,end insert 454.1,begin insert 454.55, 454.56,end insert 740.5,begin insert 846,end insert 910.4, 913.2,begin delete 913.4, 913.5, 913.10,end delete 914.3, 918.1, 956, 958.5,begin insert 1046,end insert 2870, 2872.5, 2892.1,begin delete 3368,end delete 5371.4, 5381.5, and 7661 of,begin insert to amend and renumber Sections 913.4, 913.5, 913.7, 913.12, and 5436 of, to amend, renumber, and add Section 913.10 of,end insert to addbegin delete Sections 380.3 and 913.14 to, to add and repeal Section 913.15 of, andend deletebegin insert Section 380.3 to,end insert to repeal Sections 318, 350, 747.5, 910.5, 910.6, 913.3, 913.6,begin delete 913.8, 913.9, 913.11,end delete 913.13, 918.2, 2714.5, 2827.3, 2845,begin insert 2867.1, 3346,end insert andbegin delete 2867.1end deletebegin insert 3368end insert of,begin insert to repeal and add Sections 913.8 and 913.11 of, and to repeal, add, and repeal Section 913.9 of,end insert the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL’S DIGEST

SB 1222, as amended, Hertzberg. Public Utilities Commission:begin delete reports.end deletebegin insert reports: financing orders.end insert

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,begin insert renumber various codified reporting provisions,end insert reassign to the State Energy Resources Conservation and Development Commission (Energy Commission) the PUC’s duty to prepare a specified report, and repeal the provisions requiring the PUC to submit specified reports. The bill would repeal a reporting requirement 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.

begin insert

Existing law also requires the Legislative Counsel to annually prepare, publish, and maintain an electronic list of all reports that state and local agencies are required or requested by law to prepare and file with the Governor or the Legislature, or both, in the future or within the preceding year.

end insert
begin insert

This bill would require the Legislative Counsel to revise the list by deleting specified reports from the list.

end insert

Existing law requires the 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 and local publicly owned electric utilities to review and consider the recommendations of the Energy Commission and, within 6 months after the date they receive them, to report to the Governor and the Legislature their actions and reasons therefor with respect to each recommendation.

This bill would repeal these requirements.

begin insert

Existing law relative to restructuring of the electrical industry authorizes an electrical corporation to apply to the commission for a determination that certain transition costs, as defined, may be recovered through fixed transition amounts, which would constitute transition property, as defined, and provides, until December 31, 2016, for the issuance of financing orders and provides for the issuance of rate reduction bonds to be paid out of rates.

end insert
begin insert

This bill would extend the authorization for the issuance of these financing orders from December 31, 2016, to June 30, 2022.

end 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.

This bill would repeal this reporting requirement.

This bill would also make variousbegin delete technicalend deletebegin insert minor or nonsubstantiveend insert changes, including, but not limited to,begin delete changes toend deletebegin insert shifts inend insert the responsibilities of various divisions of the PUC.

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

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

P3    1

SECTION 1.  

This act shall be known, and may be cited, as the
2Public Utilities Commission Accountabilitybegin insert and Operationsend insert Act
3of 2016.

4begin insert

begin insertSEC. 2.end insert  

end insert

begin insertThe Legislative Counsel shall revise the list required
5by Section 10242.5 of the Government Code by deleting all of the
6following Public Utilities Commission reports from the list: end insert

begin insert

7
(a) Description: Report on the energy efficiency and
8conservation programs the commission oversees through the
9California Board for Energy Efficiency

end insert
begin insert

10
Authority: Item 8660-001-0462 of Section 2.00 of the Budget Act
11of 1999

end insert
begin insert

12
Date Due: Beginning March 1, 2000, and by each December 1
13thereafter

end insert
begin insert

14
Recipient: Legislature

end insert
begin insert

15
(b) Description: If the commission determines that allowing
16electrical corporations to purchase from multiple qualified
P4    1exchanges is in the public interest, the commission shall submit
2its findings and recommendations

end insert
begin insert

3
Authority: Item 8660-001-0462 of Section 2.00 of the Budget Act
4of 2000.

end insert
begin insert

5
Date Due: By June 1, 2001

end insert
begin insert

6
Recipient: Legislature

end insert
begin insert

7
(c) Description: Report that details the commission’s backlog
8of audits, including audits in progress but not yet completed

end insert
begin insert

9
Authority: Item 8660-001-0462 of Section 2.00 of the Budget Act
10of 2002

end insert
begin insert

11
Date Due: On or before September 1, 2002

end insert
begin insert

12
Recipient: Joint Legislative Budget Committee and fiscal
13committees of the Legislature

end insert
begin insert

14
(d) Description: Report that lists all audits completed, pending,
15and forthcoming at the commission

end insert
begin insert

16
Authority: Item 8660-001-0462 of Section 2.00 of the Budget Act
17of 2002

end insert
begin insert

18
Date Due: On or before December 15, 2002, and annually
19thereafter

end insert
begin insert

20
Recipient: Joint Legislative Budget Committee and fiscal
21committees of the Legislature

end insert
begin insert

22
(e) Description: Evaluation of the progress of the state’s investor
23owned electric utilities in complying with the Renewables Portfolio
24Standard pursuant to Section 387 of the Public Utilities Code

end insert
begin insert

25
Authority: Item 8660-001-0462 of Section 2.00 of the Budget Act
26of 2006

end insert
begin insert

27
Date Due: On or before October 1, 2006, and quarterly thereafter

end insert
begin insert

28
Recipient: Legislature

end insert
begin insert

29
(f) Description: Report on the commission’s efforts to produce
30a review of the High-Cost Fund-B program, an update on its
31proceedings, and its efforts to comply with the statutorily mandated
32sunset of the program

end insert
begin insert

33
Authority: Item 8660-001-0470 of Section 2.00 of the Budget Act
34of 2007

end insert
begin insert

35
Date Due: Quarterly

end insert
begin insert

36
Recipient: Legislature

end insert
begin insert

37
(g) Description: Establishment of a project management office
38within the Information Services Branch of the Management
39Services Division

end insert
begin insert

P5    1
Authority: Item 8660-001-0462 of Section 2.00 of the Budget Act
2of 2008

end insert
begin insert

3
Date Due: On or before January 10, 2010

end insert
begin insert

4
Recipient: Legislature Budget and fiscal committees of the
5Legislature

end insert
begin insert

6
(h) Description: Report on its activities related to community
7choice aggregation that includes detailed information on the formal
8procedures established by the commission in order to monitor and
9ensure compliance by electrical corporations with Chapter 838,
10Statutes of 2002

end insert
begin insert

11
Authority: Item 8660-001-0462 of Section 2.00 of the Budget Act
12of 2010

end insert
begin insert

13
Date Due: On or before January 31, 2011, and quarterly thereafter

end insert
begin insert

14
Recipient: Fiscal and policy committees of the Legislature

end insert
begin insert

15
(i) Description: Report on the outcomes of the various audits
16that are performed by positions approved in the 2015-16 budget

end insert
begin insert

17
Authority: Item 8660-001 of Section 2.00 of the Budget Act of 2015
18(LAO)

end insert
begin insert

19
Date Due: By April 15, 2016

end insert
begin insert

20
Recipient: Appropriate budget subcommittees of the Legislature

end insert
begin insert

21
(j) Description: Report on the number of cases where resolution
22exceeded the time periods prescribed in scoping memos and the
23days that commissioners presided in hearings

end insert
begin insert

24
Authority: Section 13 of Chapter 856 of the Statutes of 1996

end insert
begin insert

25
Date Due: January 1, 1999, and annually thereafter

end insert
begin insert

26
Recipient: Legislature

end insert
begin insert

27
(k) Description: Cost-effectiveness criteria for programs funded
28in order to achieve a total reduction in peak electricity demand
29and to meet the needs of low-income households

end insert
begin insert

30
Authority: Section 5 of Chapter 7 of the Statutes of 2001, First
31Extraordinary Session

end insert
begin insert

32
Date Due: Within 10 days from the date of adoption of
33cost-effectiveness criteria

end insert
begin insert

34
Recipient: Governor, Joint Legislative Budget Committee, and
35appropriate policy and fiscal committees of the Legislature

end insert
begin insert

36
(l) Description: Changes made by Chapter 552 of the Statutes
37of 2008 to Sections 688.020 and 688.030 of the Code of Civil
38Procedure and to Section 2104 of the Public Utilities Code, as
39they pertain to the status of the Public Utilities Commission as a
40judgment creditor

end insert
begin insert

P6    1
Authority: Section 15 of Chapter 552 of the Statutes of 2008

end insert
begin insert

2
Date Due: On or before January 1, 2013

end insert
begin insert

3
Recipient: Assembly Committee on Judiciary and Senate Committee
4on Judiciary

end insert
begin insert

5
(m) Description: Results of a study to determine who benefits
6from the net energy metering program and the extent to which
7each class of ratepayers and each region of the state receiving
8service under the net energy metering program is paying the full
9cost of the services

end insert
begin insert

10
Authority: Section 2827.1 of the Public Utilities Code

end insert
begin insert

11
Date Due: Within 30 days of completion of the study

end insert
begin insert

12
Recipient: Legislature

end insert
begin insert

13
(n) Description: Evaluation of information supplied by electrical
14corporations and gas corporations relative to their comparative
15energy usage disclosure programs and any action undertaken by
16the Public Utilities Commission in response to the evaluation

end insert
begin insert

17
Authority: Section 715 of the Public Utilities Code

end insert
begin insert

18
Date Due: None

end insert
begin insert

19
Recipient: Legislature

end insert
20

begin deleteSEC. 2.end delete
21
begin insertSEC. 3.end insert  

Section 830.11 of the Penal Code is amended to read:

22

830.11.  

(a) The following persons are not peace officers but
23may exercise the powers of arrest of a peace officer as specified
24in Section 836 and the power to serve warrants as specified in
25Sections 1523 and 1530 during the course and within the scope of
26their employment, if they receive a course in the exercise of those
27powers pursuant to Section 832. The authority and powers of the
28persons designated under this section shall extend to any place in
29the state:

30(1) Persons employed by the Department of Business Oversight
31designated by the Commissioner of Business Oversight, provided
32that the primary duty of these persons shall be the enforcement of,
33and investigations relating to, the provisions of law administered
34by the Commissioner of Business Oversight.

35(2) Persons employed by the Bureau of Real Estate designated
36by the Real Estate Commissioner, provided that the primary duty
37of these persons shall be the enforcement of the laws set forth in
38Part 1 (commencing with Section 10000) and Part 2 (commencing
39with Section 11000) of Division 4 of the Business and Professions
40Code. The Real Estate Commissioner may designate persons under
P7    1this section, who at the time of their designation, are assigned to
2the Special Investigations Unit, internally known as the Crisis
3 Response Team.

4(3) Persons employed by the State Lands Commission
5designated by the executive officer, provided that the primary duty
6of these persons shall be the enforcement of the law relating to the
7duties of the State Lands Commission.

8(4) Persons employed as investigators of the Investigations
9Bureau of the Department of Insurance, who are designated by the
10Chief of the Investigations Bureau, provided that the primary duty
11of these persons shall be the enforcement of the Insurance Code
12and other laws relating to persons and businesses, licensed and
13unlicensed by the Department of Insurance, who are engaged in
14the business of insurance.

15(5) Persons employed as investigatorsbegin insert and investigator
16supervisorsend insert
by the Public Utilities Commission, who are designated
17by the commission’s executive director and approved by the
18commission,begin delete and their supervisors up to the director level,end delete provided
19that the primary duty of these persons shall be the enforcement of
20the law as that duty is set forth in Section 308.5 of the Public
21Utilities Code.

22(6) (A) Persons employed by the State Board of Equalization,
23Investigations Division, who are designated by the board’s
24executive director, provided that the primary duty of these persons
25shall be the enforcement of laws administered by the State Board
26of Equalization.

27(B) Persons designated pursuant to this paragraph are not entitled
28to peace officer retirement benefits.

29(7) Persons employed by the Department of Food and
30Agriculture and designated by the Secretary of Food and
31Agriculture as investigators, investigator supervisors, and
32investigator managers, provided that the primary duty of these
33persons shall be enforcement of, and investigations relating to, the
34Food and Agricultural Code or Division 5 (commencing with
35Section 12001) of the Business and Professions Code.

36(8) The Inspector General and those employees of the Office
37of the Inspector General as designated by the Inspector General,
38provided that the primary duty of those persons shall be the
39enforcement of the law relating to the duties of the Office of the
40Inspector General.

P8    1(b) Notwithstanding any other provision of law, persons
2designated pursuant to this section may not carry firearms.

3(c) Persons designated pursuant to this section shall be included
4as “peace officers of the state” under paragraph (2) of subdivision
5(c) of Section 11105 for the purpose of receiving state summary
6criminal history information and shall be furnished that information
7on the same basis as peace officers of the state designated in
8paragraph (2) of subdivision (c) of Section 11105.

9

begin deleteSEC. 3.end delete
10
begin insertSEC. 4.end insert  

Section 25229 is added to the Public Resources Code,
11to read:

12

25229.  

The commission shall report annually on its efforts to
13identify electrical or gas corporation ratepayer-funded energy
14efficiency programs that are similar to programs that are
15administered by the Public Utilities Commission, the State Air
16Resources Board, the California Alternative Energy and Advanced
17Transportation Financing Authority, the California Infrastructure
18and Economic Development Bank, the Department of Community
19Services and Development, or the commission. The commission
20shall make recommendations to the Public Utilities Commission
21to revise the ratepayer-funded energy efficiency programs, as
22necessary, to ensure that the programs complement and do not
23duplicate similar programs administered by a state agency
24described in this section.

25

begin deleteSEC. 4.end delete
26
begin insertSEC. 5.end insert  

Section 25403 of the Public Resources Code is
27repealed.

28

begin deleteSEC. 5.end delete
29
begin insertSEC. 6.end insert  

Section 308.5 of the Public Utilities Code is amended
30to read:

31

308.5.  

Persons employed as investigatorsbegin insert and investigator
32supervisorsend insert
by the commission, who are designated by the
33commission’s executive director and approved by the commission,
34begin delete and their supervisors up to the director level,end delete have the authority
35of peace officers, as specified in paragraph (5) of subdivision (a)
36of Section 830.11 of the Penal Code, while engaged in exercising
37the powers granted to or performing the duties imposed upon them
38in investigating the laws, orders, or regulations administered by
39the commission or commencing directly or indirectly any criminal
40prosecution arising from any investigation conducted under these
P9    1laws. All persons herein referred to shall be deemed to be acting
2within the scope of employment with respect to all acts and matters
3set forth in this section.

4

begin deleteSEC. 6.end delete
5
begin insertSEC. 7.end insert  

Section 309.7 of the Public Utilities Code is amended
6to read:

7

309.7.  

(a) The division of the commission responsible for
8railroad safety shall be responsible for inspection, surveillance,
9and investigation of the rights-of-way, facilities, equipment, and
10operations of railroads and public mass transit guideways, and for
11enforcing state and federal laws, regulations, orders, and directives
12relating to transportation of persons or commodities, or both, of
13any nature or description by rail. The division of the commission
14responsible for railroad safety shall advise the commission on all
15matters relating to rail safety, and shall propose to the commission
16rules, regulations, orders, and other measures necessary to reduce
17the dangers caused by unsafe conditions on the railroads of the
18state. The delegation of enforcement responsibility to the division
19of the commission responsible for railroad safety shall not diminish
20the power of other agencies of state government to enforce laws
21relating to employee or environmental safety, pollution prevention,
22or public health and safety.

23(b) In performing its duties, the division of the commission
24responsible for railroad safety shall exercise all powers of
25investigation granted to the commission, including rights to enter
26upon land or facilities, inspect books and records, and compel
27testimony. The commission shall employ sufficient federally
28certified inspectors to ensure at the time of inspection that railroad
29locomotives and equipment and facilities located in class I railroad
30yards in California are inspected not less frequently than every
31180 days, and all main and branch line tracks are inspected not
32less frequently than every 12 months. In performing its duties, the
33division of the commission responsible for railroad safety shall
34consult with representatives of railroad corporations, labor
35organizations representing railroad employees, and the Federal
36Railroad Administration.

37(c) The general counsel shall assign to the division of the
38commission responsible for railroad safety the personnel and
39attorneys necessary to fully utilize the powers granted to the
40commission by any state law and by any federal law relating to
P10   1rail transportation, to enforce safety laws, rules, regulations, and
2orders, and to collect fines and penalties resulting from the
3violation of any safety rule or regulation.

4(d) The activities of the division of the commission responsible
5for railroad safety that relate to safe operation of common carriers
6by rail, other than those relating to grade crossing protection, shall
7also be supported by the fees paid by railroad corporations, if any,
8pursuant to Sections 421 to 424, inclusive. The activities of the
9division of the commission responsible for railroad safety that
10relate to grade crossing protection shall be supported by funds
11appropriated therefor from the State Highway Account in the State
12Transportation Fund.

13

begin deleteSEC. 7.end delete
14
begin insertSEC. 8.end insert  

Section 318 of the Public Utilities Code is repealed.

15

begin deleteSEC. 8.end delete
16
begin insertSEC. 9.end insert  

Section 350 of the Public Utilities Code is repealed.

17

begin deleteSEC. 9.end delete
18
begin insertSEC. 10.end insert  

Section 353.13 of the Public Utilities Code is amended
19to read:

20

353.13.  

(a) The commission shall require each electrical
21corporation to establish new tariffs on or before January 1, 2003,
22for customers using distributed energy resources, including, but
23not limited to, those that do not meet all of the criteria described
24in Section 353.1. However, after January 1, 2003, distributed
25energy resources that meet all of the criteria described in Section
26353.1 shall continue to be subject only to those tariffs in existence
27pursuant to Section 353.3, until June 1, 2011, except that
28installations that do not operate in a combined heat and power
29application will be subject to those tariffs in existence pursuant to
30Section 353.3 only until June 1, 2006. Those tariffs required
31pursuant to this section shall ensure that all net distribution costs
32incurred to serve each customer class, taking into account the actual
33costs and benefits of distributed energy resources, proportional to
34each customer class, as determined by the commission, are fully
35recovered only from that class. The commission shall require each
36electrical corporation, in establishing those rates, to ensure that
37customers with similar load profiles within a customer class will,
38to the extent practicable, be subject to the same utility rates,
39regardless of their use of distributed energy resources to serve
40onsite loads or over-the-fence transactions allowed under Sections
P11   1216 and 218. Customers with dedicated facilities shall remain
2responsible for their obligations regarding payment for those
3facilities.

4(b) In establishing the tariffs, the commission shall consider
5coincident peakload, and the reliability of the onsite generation,
6as determined by the frequency and duration of outages, so that
7customers with more reliable onsite generation and those that
8reduce peak demand pay a lower cost-based rate.

9

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

Section 353.15 of the Public Utilities Code is amended
11to read:

12

353.15.  

(a) In order to evaluate the efficiency, emissions, and
13reliability of distributed energy resources with a capacity greater
14than 10 kilowatts, customers that install those resources pursuant
15to this article shall report to the commission, on an annual basis,
16all of the following information, as recorded on a monthly basis:

17(1) Heat rate for the resource.

18(2) Total kilowatthours produced in the peak and off-peak
19periods, as determined by the ISO.

20(3) Emissions data for the resource, as required by the State Air
21Resources Board or the appropriate air quality management district
22or air pollution control district.

23(b) The commission shall release the information submitted
24pursuant to subdivision (a) in a manner that does not identify the
25individual user of the distributed energy resource.

26begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 365.1 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
27to read:end insert

28

365.1.  

(a) Except as expressly authorized by this section, and
29subject to the limitations in subdivisions (b) and (c), the right of
30retail end-use customers pursuant to this chapter to acquire service
31from other providers is suspended until the Legislature, by statute,
32lifts the suspension or otherwise authorizes direct transactions. For
33purposes of this section, “other provider” means any person,
34corporation, or other entity that is authorized to provide electric
35service within the service territory of an electrical corporation
36pursuant to this chapter, and includes an aggregator, broker, or
37marketer, as defined in Section 331, and an electric service
38provider, as defined in Section 218.3. “Other provider” does not
39include a community choice aggregator, as defined in Section
40331.1, and the limitations in this section do not apply to the sale
P12   1of electricity by “other providers” to a community choice
2aggregator for resale to community choice aggregation electricity
3consumers pursuant to Section 366.2.

4(b) The commission shall allow individual retail nonresidential
5end-use customers to acquire electric service from other providers
6in each electrical corporation’s distribution service territory, up to
7a maximum allowable total kilowatthours annual limit. The
8maximum allowable annual limit shall be established by the
9commission for each electrical corporation at the maximum total
10kilowatthours supplied by all other providers to distribution
11customers of that electrical corporation during any sequential
1212-month period between April 1, 1998, and the effective date of
13this section. Within six months of the effective date of this section,
14or by July 1, 2010, whichever is sooner, the commission shall
15adopt and implement a reopening schedule that commences
16immediately and will phase in the allowable amount of increased
17kilowatthours over a period of not less than three years, and not
18more than five years, raising the allowable limit of kilowatthours
19supplied by other providers in each electrical corporation’s
20distribution service territory from the number of kilowatthours
21provided by other providers as of the effective date of this section,
22to the maximum allowable annual limit for that electrical
23corporation’s distribution service territory. The commission shall
24review and, if appropriate, modify its currently effective rules
25governing direct transactions, but that review shall not delay the
26start of the phase-in schedule.

27(c) Once the commission has authorized additional direct
28transactions pursuant to subdivision (b), it shall do both of the
29following:

30(1) Ensure that other providers are subject to the same
31requirements that are applicable to the state’s three largest electrical
32corporations under any programs or rules adopted by the
33commission to implement the resource adequacy provisions of
34Section 380, the renewables portfolio standard provisions of Article
3516 (commencing with Section 399.11), and the requirements for
36the electricity sector adopted by the State Air Resources Board
37pursuant to the California Global Warming Solutions Act of 2006
38(Division 25.5 (commencing with Section 38500) of the Health
39and Safety Code). This requirement applies notwithstanding any
40prior decision of the commission to the contrary.

P13   1(2) (A) Ensure that, in the event that the commission authorizes,
2in the situation of a contract with a third party, or orders, in the
3situation of utility-owned generation, an electrical corporation to
4obtain generation resources that the commission determines are
5needed to meet system or local area reliability needs for the benefit
6of all customers in the electrical corporation’s distribution service
7territory, the net capacity costs of those generation resources are
8allocated on a fully nonbypassable basis consistent with departing
9load provisions as determined by the commission, to all of the
10following:

11(i) Bundled service customers of the electrical corporation.

12(ii) Customers that purchase electricity through a direct
13transaction with other providers.

14(iii) Customers of community choice aggregators.

15(B) If the commission authorizes or orders an electrical
16corporation to obtain generation resources pursuant to subparagraph
17(A), the commission shall ensure that those resources meet a system
18or local reliability need in a manner that benefits all customers of
19the electrical corporation. The commission shall allocate the costs
20of those generation resources to ratepayers in a manner that is fair
21and equitable to all customers, whether they receive electric service
22from the electrical corporation, a community choice aggregator,
23or an electric service provider.

24(C) The resource adequacy benefits of generation resources
25acquired by an electrical corporation pursuant to subparagraph (A)
26shall be allocated to all customers who pay their net capacity costs.
27Net capacity costs shall be determined by subtracting the energy
28and ancillary services value of the resource from the total costs
29paid by the electrical corporation pursuant to a contract with a
30third party or the annual revenue requirement for the resource if
31the electrical corporation directly owns the resource. An energy
32auction shall not be required as a condition for applying this
33allocation, but may be allowed as a means to establish the energy
34and ancillary services value of the resource for purposes of
35determining the net costs of capacity to be recovered from
36customers pursuant to this paragraph, and the allocation of the net
37capacity costs of contracts with third parties shall be allowed for
38the terms of those contracts.

39(D) It is the intent of the Legislature, in enacting this paragraph,
40to provide additional guidance to the commission with respect to
P14   1the implementation of subdivision (g) of Section 380, as well as
2to ensure that the customers to whom the net costs and benefits of
3capacity are allocated are not required to pay for the cost of
4electricity they do not consume.

5(d) (1) If the commission approves a centralized resource
6adequacy mechanism pursuant to subdivisions (h) and (i) of Section
7380, upon the implementation of the centralized resource adequacy
8mechanism the requirements of paragraph (2) of subdivision (c)
9 shall be suspended. If the commission later orders that electrical
10corporations cease procuring capacity through a centralized
11resource adequacy mechanism, the requirements of paragraph (2)
12of subdivision (c) shall again apply.

13(2) If the use of a centralized resource adequacy mechanism is
14authorized by the commission and has been implemented as set
15forth in paragraph (1), the net capacity costs of generation resources
16that the commission determines are required to meet urgent system
17or urgent local grid reliability needs, and that the commission
18authorizes to be procured outside of the Section 380 or Section
19454.5 processes, shall be recovered according to the provisions of
20paragraph (2) of subdivision (c).

21(3) Nothing in this subdivision supplants the resource adequacy
22requirements of Section 380 or the resource procurement
23procedures established in Section 454.5.

begin delete

24(e) The commission may report to the Legislature on the efficacy
25of authorizing individual retail end-use residential customers to
26enter into direct transactions, including appropriate consumer
27protections.

end delete
28

begin deleteSEC. 11.end delete
29
begin insertSEC. 13.end insert  

Section 380.3 is added to the Public Utilities Code,
30to read:

31

380.3.  

The commission shall consider the Energy
32Commission’s recommendations made pursuant to Section 25229
33of the Public Resources Code in determining whether to revise its
34ratepayer-funded energy efficiency programs.

35

begin deleteSEC. 12.end delete
36
begin insertSEC. 14.end insert  

Section 454.1 of the Public Utilities Code is amended
37to read:

38

454.1.  

(a) Except as provided in subdivision (b), if a customer
39with a maximum peak electrical demand in excess of 20 kilowatts
40located or planning to locate within the service territory of an
P15   1electrical corporation receives a bona fide offer for electric service
2from an irrigation district at rates less than the electrical
3corporation’s tariffed rates, the electrical corporation may discount
4its noncommodity rates, but may not discount its noncommodity
5rates below its distribution marginal cost of serving that customer.
6For purposes of this subdivision, the costs of the electric
7commodity shall be excluded from both the irrigation district and
8electric corporation’s rates. The electrical corporation may recover
9any difference between its tariffed and discounted service from its
10remaining customers, allocated as determined by the commission.
11However, the reallocation may not increase rates to its remaining
12customers by any greater amount than the rates would be increased
13if the customer had taken electric distribution service from the
14irrigation district and the irrigation district had paid the charge
15established in subdivision (e) of Section 9607. Further, there shall
16be a firewall preventing the reallocation of such differences
17resulting from discounting to residential customers or to
18commercial customers with maximum peak demands not in excess
19of 20 kilowatts.

20(b) Subdivision (a) does not apply to a cumulative 75 megawatts
21of load served by the Merced Irrigation District, determined as
22follows:

23(1) The load is located within the boundaries of Merced
24Irrigation District, as those boundaries existed on December 20,
251995, together with the territory of Castle Air Force Base which
26was located outside the district on that date.

27(2) For purposes of this section, a megawatt of load shall be
28calculated in accordance with the methodology established by the
29Energy Commission in its Docket No. 96-IRR-1890.

30(c) Subdivision (a) applies to the load of customers that move
31to the areas described in paragraph (1) of subdivision (b) after
32December 31, 2000, and such load shall be excluded from the
33calculation of the 75 megawatts in subdivision (b).

34(d) If an electrical corporation seeks to apply the discounts
35permitted under subdivision (a) within the geographic area
36described in subdivision (b) of Section 9610, the electrical
37corporation’s resulting rate for distribution service may not be less
38than 120 percent of the electrical corporation’s marginal
39distribution cost of serving that customer.

P16   1begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 454.55 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
2to read:end insert

3

454.55.  

(a) begin insert(1)end insertbegin insertend insert The commission, in consultation with the
4Energy Commission, shall identify all potentially achievable
5cost-effective electricity efficiency savings and establish efficiency
6targets for an electrical corporation to achieve, pursuant to Section
7454.5, consistent with the targets established pursuant to
8subdivision (c) of Section 25310 of the Public Resources Code.

begin delete

9(1)

end delete

10begin insert(2)end insert By July 1, 2018, and every four years thereafter, each
11electrical corporation shall report on its progress toward achieving
12the targets established pursuant to subdivision (a).

begin delete

13(2) By July 1, 2019, and every four years thereafter, the
14commission shall, pursuant to Section 9795 of the Government
15Code, report to the Legislature on the progress toward achieving
16the targets established pursuant to subdivision (a). The commission
17shall include specific strategies for, and an update on, progress
18toward maximizing the contribution of electricity efficiency savings
19in disadvantaged communities identified pursuant to Section 39711
20of the Health and Safety Code.

end delete

21(b) (1) By December 31, 2023, the commission shall, in a new
22or existing proceeding, undertake a comprehensive review of the
23feasibility, costs, barriers, and benefits of achieving a cumulative
24doubling of energy efficiency savings and demand reduction by
252030 pursuant to subdivision (c) of Section 25310 of the Public
26Resources Code.

27(2) Notwithstanding subdivision (c) of Section 25310 of the
28Public Resources Code, if the commission concludes the targets
29established for electrical corporations to achieve pursuant to
30subdivision (a) are not cost effective, feasible, or pose potential
31adverse impacts to public health and safety, the commission shall
32revise the targets to the level that optimizes the amount of energy
33efficiency savings and demand reduction and shall modify, revise,
34or update its policies as needed to address barriers preventing
35achievement of those targets.

36begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 454.56 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
37to read:end insert

38

454.56.  

(a) The commission, in consultation with the Energy
39Commission, shall identify all potentially achievable cost-effective
40natural gas efficiency savings and establish efficiency targets for
P17   1the gas corporation to achieve, consistent with the targets
2established pursuant to subdivision (c) of Section 25310 of the
3Public Resources Code.

4(b) A gas corporation shall first meet its unmet resource needs
5through all available natural gas efficiency and demand reduction
6resources that are cost effective, reliable, and feasible.

7(c) By July 1, 2018, and every four years thereafter, each gas
8corporation shall report on its progress toward achieving the targets
9established pursuant to subdivision (a).

begin delete

10(d) By July 1, 2019, and every four years thereafter, the
11commission shall, pursuant to Section 9795 of the Government
12Code, report to the Legislature on the progress toward achieving
13the targets establish pursuant to subdivision (a). The commission
14shall include specific strategies for, and an update on, progress
15toward maximizing the contribution of energy efficiency savings
16in disadvantaged communities identified pursuant to Section 39711
17of the Health and Safety Code.

end delete
begin delete

18(e)

end delete

19begin insert(d)end insert Notwithstanding subdivision (c) of Section 25310 of the
20Public Resources Code, if the commission concludes in its review
21pursuant to paragraph (1) of subdivision (b) of Section 454.55 that
22the targets established for gas corporations to achieve pursuant to
23subdivision (a) are not cost effective, feasible, or pose potential
24adverse impacts to public health and safety, the commission shall
25revise the targets to the level that maximizes the amount of energy
26efficiency savings and demand reduction and shall modify, revise,
27or update its policies as needed to address barriers preventing
28achievement of those targets.

29

begin deleteSEC. 13.end delete
30
begin insertSEC. 17.end insert  

Section 740.5 of the Public Utilities Code is amended
31to read:

32

740.5.  

(a) For purposes of this section, “21st Century Energy
33System Decision” means commission Decision 12-12-031
34(December 20, 2012), Decision Granting Authority to Enter Into
35a Research and Development Agreement with Lawrence Livermore
36National Laboratory for 21st Century Energy Systems and for
37costs up to one hundred fifty-two million one hundred ninety
38thousand dollars ($152,190,000) or any subsequent decision in
39Application 11-07-008 (July 18, 2011), Application of Pacific Gas
40and Electric Company (U39M), San Diego Gas and Electric
P18   1Company (U902E), and Southern California Edison Company
2(U338E) for Authority to Increase Electric Rates and Charges to
3Recover Costs of Research and Development Agreement with
4Lawrence Livermore National Laboratory for 21st Century Energy
5Systems.

6(b) In implementing the 21st Century Energy System Decision,
7the commission shall not authorize recovery from ratepayers of
8any expense for research and development projects that are not
9for purposes of cyber security and grid integration. Total funding
10for research and development projects for purposes of cyber
11security and grid integration pursuant to the 21st Century Energy
12System Decision shall not exceed thirty-five million dollars
13($35,000,000). All cyber security and grid integration research
14and development projects shall be concluded by the fifth
15anniversary of their start date.

16(c) The commission shall not approve for recovery from
17ratepayers those program management expenditures proposed,
18commencing with page seven, in the joint advice letter filed by
19the state’s three largest electrical corporations, Advice
203379-G/4215-E (Pacific Gas and Electric Company), Advice
212887-E (Southern California Edison Company), and Advice 2473-E
22(San Diego Gas and Electric Company), dated April 19, 2013.
23Project managers for the 21st Century Energy System Decision
24shall be limited to three representatives, one representative each
25from Pacific Gas and Electric Company, Southern California
26Edison Company, and San Diego Gas and Electric Company.

27(d) The commission shall require the Lawrence Livermore
28National Laboratory, as a condition for entering into any contract
29pursuant to the 21st Century Energy System Decision, and Pacific
30Gas and Electric Company, Southern California Edison Company,
31and San Diego Gas and Electric Company to ensure that research
32parameters reflect a new contribution to cyber security and that
33there not be a duplication of research being done by other private
34and governmental entities.

35

begin deleteSEC. 14.end delete
36
begin insertSEC. 18.end insert  

Section 747.5 of the Public Utilities Code is repealed.

37begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 846 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
38to read:end insert

39

846.  

The authority of the commission to issue financing orders
40pursuant to Section 841 shall expire onbegin delete December 31, 2016.end deletebegin insert June
P19   130, 2022.end insert
The expiration of the authority shall have no effect upon
2financing orders adopted by the commission pursuant to this article
3or any transition property arising therefrom, or upon the charges
4authorized to be levied thereunder, or the rights, interests, and
5obligations of the electrical corporation or a financing entity or
6holders of transition bonds pursuant to the financing order, or the
7authority of the commission to monitor, supervise, or take further
8action with respect to the order in accordance with the terms of
9this article and of the order.

10

begin deleteSEC. 15.end delete
11
begin insertSEC. 20.end insert  

Section 910.4 of the Public Utilities Code is amended
12to read:

13

910.4.  

By February 1 of each year, the commission shall report
14to the Joint Legislative Budget Committee and appropriate fiscal
15and policy committees of the Legislature, on all sources and
16amounts of funding and actual and proposed expenditures, both
17in the two prior fiscal years and for the proposed fiscal year,
18including any costs to ratepayers, related to both of the following:

19(a) Entities or programs established by the commission by order,
20decision, motion, settlement, or other action, including, but not
21limited to, the California Clean Energy Fund, the California
22Emerging Technology Fund, and the Pacific Forest and Watershed
23Lands Stewardship Council. The report shall contain descriptions
24of relevant issues, including, but not limited to, all of the following:

25(1) Any governance structure established for an entity or
26program.

27(2) Any staff or employees hired by or for the entity or program
28and their salaries and expenses.

29(3) Any staff or employees transferred or loaned internally or
30interdepartmentally for the entity or program and their salaries and
31expenses.

32(4) Any contracts entered into by the entity or program, the
33funding sources for those contracts, and the legislative authority
34under which the commission entered into the contract.

35(5) The public process and oversight governing the entity or
36 program’s activities.

37(b) Entities or programs established by the commission, other
38than those expressly authorized by statute, under the following
39sections:

40(1) Section 379.6.

P20   1(2) Section 399.8.

2(3) Section 739.1.

3(4) Section 2790.

4(5) Section 2851.

5

begin deleteSEC. 16.end delete
6
begin insertSEC. 21.end insert  

Section 910.5 of the Public Utilities Code is repealed.

7

begin deleteSEC. 17.end delete
8
begin insertSEC. 22.end insert  

Section 910.6 of the Public Utilities Code is repealed.

9

begin deleteSEC. 18.end delete
10
begin insertSEC. 23.end insert  

Section 913.2 of the Public Utilities Code is amended
11to read:

12

913.2.  

By February 1 of each year, the commission shall report
13to the Governor and the Legislature on the commission’s
14recommendations for a smart grid, the plans and deployment of
15smart grid technologies by the state’s electrical corporations, and
16the costs and benefits to ratepayers.

17

begin deleteSEC. 19.end delete
18
begin insertSEC. 24.end insert  

Section 913.3 of the Public Utilities Code is repealed.

19

begin deleteSEC. 20.end delete
20
begin insertSEC. 25.end insert  

Section 913.4 of the Public Utilities Code is amended
21begin insertand renumberedend insert to read:

22

begin delete913.4.end delete
23
begin insert913.3.end insert  

(a) Notwithstanding subdivision (g) of Section 454.5
24and Section 583, no later than May 1 of each year, the commission
25shall release to the Legislature for the preceding calendar year the
26costs of all electricity procurement contracts for eligible renewable
27energy resources, including unbundled renewable energy credits,
28and all costs for utility-owned generation approved by the
29commission.

30(1) For power purchase contracts, the commission shall release
31costs in an aggregated form categorized according to the year the
32procurement transaction was approved by the commission, the
33eligible renewable energy resource type, including bundled
34renewable energy credits, the average executed contract price, and
35average actual recorded costs for each kilowatthour of production.
36Within each renewable energy resource type, the commission shall
37provide aggregated costs for different project size thresholds.

38(2) For each utility-owned renewable generation project, the
39commission shall release the costs forecast by the electrical
40corporation at the time of initial approval and the actual recorded
P21   1costs for each kilowatthour of production during the preceding
2calendar year.

3(b) The commission shall report all electrical corporation
4revenue requirement increases associated with meeting the
5renewables portfolio standard, as defined in Section 399.12,
6including direct procurement costs for eligible renewable energy
7resources and renewable energy credits.

8(c) The commission shall report all cost savings experienced,
9or costs avoided, by electrical corporations as a result of meeting
10the renewables portfolio standard.

11(d) This section does not require the release of the terms of any
12individual electricity procurement contracts for eligible renewable
13energy resources, including unbundled renewable energy credits,
14approved by the commission. The commission shall aggregate
15data to the extent required to ensure protection of the confidentiality
16of individual contract costs even if this aggregation requires
17grouping contracts of different energy resource type. The
18commission shall not be required to release the data in any year
19when there are fewer than three contracts approved.

20

begin deleteSEC. 21.end delete
21
begin insertSEC. 26.end insert  

Section 913.5 of the Public Utilities Code is amended
22begin insertand renumberedend insert to read:

23

begin delete913.5.end delete
24
begin insert913.4.end insert  

In order to evaluate the progress of the state’s electrical
25corporations in complying with the California Renewables Portfolio
26Standard Program (Article 16 (commencing with Section 399.11)
27of Chapter 2.3), the commission shall report to the Legislature no
28later than November 1 of each year on all of the following:

29(a) The progress and status of procurement activities by each
30retail seller pursuant to the California Renewables Portfolio
31Standard Program.

32(b) For each electrical corporation, an implementation schedule
33to achieve the renewables portfolio standard procurement
34requirements, including all substantive actions that have been taken
35or will be taken to achieve the program procurement requirements.

36(c) The projected ability of each electrical corporation to meet
37the renewables portfolio standard procurement requirements under
38the cost limitations in subdivisions (c) and (d) of Section 399.15
39and any recommendations for revisions of those cost limitations.

P22   1(d) Any renewable energy procurement plan approved by the
2commission pursuant to Section 399.13, schedule, and status report
3for all substantive procurement, transmission development, and
4other activities that the commission has approved to be undertaken
5by an electrical corporation to achieve the procurement
6requirements of the renewables portfolio standard.

7(e) Any barriers to, and policy recommendations for, achieving
8the renewables portfolio standard pursuant to the California
9Renewables Portfolio Standard Program.

10(f) The efforts each electrical corporation is taking to recruit
11and train employees to ensure an adequately trained and available
12workforce, including the number of new employees hired by the
13electrical corporation for purposes of implementing the
14requirements of Article 16 (commencing with Section 399.11) of
15Chapter 2.3, the goals adopted by the electrical corporation for
16increasing women, minority, and disabled veterans trained or hired
17for purposes of implementing the requirements of Article 16
18(commencing with Section 399.11) of Chapter 2.3, and, to the
19extent information is available, the number of new employees
20hired and the number of women, minority, and disabled veterans
21trained or hired by persons or corporations owning or operating
22eligible renewable energy resources under contract with an
23electrical corporation. This subdivision does not provide the
24commission with authority to engage in, regulate, or expand its
25authority to include, workforce recruitment or training.

26

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

Section 913.6 of the Public Utilities Code is repealed.

28begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 913.7 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
29and renumbered to read:end insert

30

begin delete913.7.end delete
31
begin insert913.5.end insert  

The commission shall submit a report to the Legislature
32by July 15, 2009, and triennially thereafter, on the energy efficiency
33and conservation programs it oversees. The report shall include
34information regarding authorized utility budgets and expenditures
35and projected and actual energy savings over the program cycle.

36

begin deleteSEC. 23.end delete
37
begin insertSEC. 29.end insert  

Section 913.8 of the Public Utilities Code is repealed.

38begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 913.8 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
39to read:end insert

begin insert
P23   1

begin insert913.8.end insert  

On or before July 30, 2020, and by July 30 of every
2third year thereafter through 2029, the commission shall submit
3to the Legislature an assessment of the Multifamily Affordable
4Housing Solar Roofs Program. That assessment shall include the
5number of qualified multifamily affordable housing property sites
6that have a qualifying solar energy system for which an award
7was made pursuant to Chapter 9.5 (commencing with Section
82870) of Part 2 and the dollar value of the award, the electrical
9generating capacity of the qualifying renewable energy system,
10the bill reduction outcomes of the program for the participants,
11the cost of the program, the total electrical system benefits, the
12environmental benefits, the progress made toward reaching the
13goals of the program, the program’s impact on the CARE program
14budget, and the recommendations for improving the program to
15meet its goals. The report shall include an analysis of pending
16program commitments, reservations, obligations, and projected
17demands for the program to determine whether future ongoing
18funding allocations for the program are substantiated. The report
19shall also include a summary of the other programs intended to
20benefit disadvantaged communities, including, but not limited to,
21the Single-Family Affordable Solar Homes Program, the
22Multifamily Affordable Solar Housing Program, and the Green
23Tariff Shared Renewables Program (Chapter 7.6 (commencing
24with Section 2831) of Part 2).

end insert
25

begin deleteSEC. 24.end delete
26
begin insertSEC. 31.end insert  

Section 913.9 of the Public Utilities Code is repealed.

27begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 913.9 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
28to read:end insert

begin insert
29

begin insert913.9.end insert  

(a) The commission shall require each participating
30electrical corporation to prepare and submit to the commission,
31by 60 days following the conclusion of all research and
32development projects, a joint report summarizing the outcome of
33all funded projects, including an accounting of expenditures by
34the project managers and grant recipients on administrative and
35overhead costs and whether the project resulted in any
36technological advancements or breakthroughs in promoting cyber
37security and grid integration. The commission shall, within 30
38days of receiving the joint report, determine whether the report is
39sufficient or requires revision and, upon determining that the report
40is sufficient, submit the report to the Legislature.

P24   1
(b) This section shall remain in effect only until January 1, 2023,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2023, deletes or extends that date.

end insert
4

begin deleteSEC. 25.end delete
5
begin insertSEC. 33.end insert  

Section 913.10 of the Public Utilities Code is amended
6begin insertand renumberedend insert to read:

7

begin delete913.10.end delete
8
begin insert913.6.end insert  

(a) On or before February 1, 2010, and biennially
9thereafter, the commission, in consultation with the Independent
10System Operator and the Energy Commission, shall study and
11submit a report to the Legislature and the Governor on the impacts
12of distributed energy generation on the state’s distribution and
13transmission grid. The study shall evaluate all of the following:

14(1) Reliability and transmission issues related to connecting
15distributed energy generation to the local distribution networks
16and regional grid.

17(2) Issues related to grid reliability and operation, including
18interconnection, and the position of federal and state regulators
19toward distributed energy accessibility.

20(3) The effect on overall grid operation of various distributed
21energy generation sources.

22(4) Barriers affecting the connection of distributed energy to
23the state’s grid.

24(5) Emerging technologies related to distributed energy
25generation interconnection.

26(6) Interconnection issues that may arise for the Independent
27System Operator and local distribution companies.

28(7) The effect on peak demand for electricity.

29(b) In addition, the commission shall specifically assess the
30impacts of the California Solar Initiative program, specified in
31Section 2851 and Section 25783 of the Public Resources Code,
32the self-generation incentive program authorized by Section 379.6,
33and the net energy metering program specified in Sections 2827
34and 2827.1.

35begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 913.10 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
36to read:end insert

begin insert
37

begin insert913.10.end insert  

By July 1, 2019, and every four years thereafter, the
38commission shall report to the Legislature on the progress toward
39achieving the targets established pursuant to subdivision (a) of
40Section 454.55. The commission shall include specific strategies
P25   1for, and an update on, progress toward maximizing the contribution
2of electricity efficiency savings in disadvantaged communities
3identified pursuant to Section 39711 of the Health and Safety Code.

end insert
4

begin deleteSEC. 26.end delete
5
begin insertSEC. 35.end insert  

Section 913.11 of the Public Utilities Code is repealed.

6begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 913.11 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
7to read:end insert

begin insert
8

begin insert913.11.end insert  

By July 1, 2019, and every four years thereafter, the
9commission shall report to the Legislature on the progress toward
10achieving the targets established pursuant to subdivision (a) of
11Section 454.56. The commission shall include specific strategies
12for, and an update on, progress toward maximizing the contribution
13of energy efficiency savings in disadvantaged communities
14identified pursuant to Section 39711 of the Health and Safety Code.

end insert
15begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 913.12 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
16and renumbered to read:end insert

17

begin delete913.12.end delete
18
begin insert913.7.end insert  

On or before June 30 of each year, the commission shall
19submit to the Legislature an assessment of the success of the
20California Solar Initiative program. That assessment shall include
21the number of residential and commercial sites that have installed
22solar thermal devices for which an award was made pursuant to
23subdivision (b) of Section 2851 and the dollar value of the award,
24the number of residential and commercial sites that have installed
25solar energy systems, the electrical generating capacity of the
26installed solar energy systems, the cost of the program, total
27electrical system benefits, including the effect on electrical service
28rates, environmental benefits, how the program affects the
29operation and reliability of the electrical grid, how the program
30has affected peak demand for electricity, the progress made toward
31reaching the goals of the program, whether the program is on
32schedule to meet the program goals, and recommendations for
33improving the program to meet its goals. If the commission
34allocates additional moneys to research, development, and
35demonstration that explores solar technologies and other distributed
36generation technologies pursuant to paragraph (1) of subdivision
37(c) of Section 2851, the commission shall include in the assessment
38submitted to the Legislature, a description of the program, a
39summary of each award made or project funded pursuant to the
P26   1program, including the intended purposes to be achieved by the
2particular award or project, and the results of each award or project.

3

begin deleteSEC. 27.end delete
4
begin insertSEC. 38.end insert  

Section 913.13 of the Public Utilities Code is repealed.

begin delete
5

SEC. 28.  

Section 913.14 is added to the Public Utilities Code,
6to read:

7

913.14.  

On or before July 30, 2020, and by July 30 of every
8third year thereafter through 2029, the commission shall submit
9to the Legislature an assessment of the Multifamily Affordable
10Housing Solar Roofs Program. That assessment shall include the
11number of qualified multifamily affordable housing property sites
12that have a qualifying solar energy system for which an award was
13made pursuant to Chapter 9.5 (commencing with Section 2870)
14of Part 2 and the dollar value of the award, the electrical generating
15capacity of the qualifying renewable energy system, the bill
16reduction outcomes of the program for the participants, the cost
17of the program, the total electrical system benefits, the
18environmental benefits, the progress made toward reaching the
19goals of the program, the program’s impact on the CARE program
20budget, and the recommendations for improving the program to
21meet its goals. The report shall include an analysis of pending
22program commitments, reservations, obligations, and projected
23demands for the program to determine whether future ongoing
24funding allocations for the program are substantiated. The report
25shall also include a summary of the other programs intended to
26benefit disadvantaged communities, including, but not limited to,
27the Single-Family Affordable Solar Homes Program, the
28Multifamily Affordable Solar Housing Program, and the Green
29Tariff Shared Renewables Program (Chapter 7.6 (commencing
30with Section 2831) of Part 2).

31

SEC. 29.  

Section 913.15 is added to the Public Utilities Code,
32to read:

33

913.15.  

(a) The commission shall require each participating
34electrical corporation to prepare and submit to the commission,
35by 60 days following the conclusion of all research and
36development projects, a joint report summarizing the outcome of
37all funded projects, including an accounting of expenditures by
38the project managers and grant recipients on administrative and
39overhead costs and whether the project resulted in any
40technological advancements or breakthroughs in promoting cyber
P27   1security and grid integration. The commission shall, within 30
2days of receiving the joint report, determine whether the report is
3sufficient or requires revision and, upon determining that the report
4is sufficient, submit the report to the Legislature in compliance
5with Section 9795 of the Government Code.

6(b) This section shall remain in effect only until January 1, 2023,
7and as of that date is repealed, unless a later enacted statute, that
8is enacted before January 1, 2023, deletes or extends that date.

end delete
9

begin deleteSEC. 30.end delete
10
begin insertSEC. 39.end insert  

Section 914.3 of the Public Utilities Code is amended
11to read:

12

914.3.  

By December 31 of each year, the commission shall
13submit to the Governor and the Legislature a report that includes,
14based on yearend data, on an aggregated basis, the information
15submitted by holders pursuant to subdivision (b) of Section 5960.
16All information reported by the commission pursuant to this section
17shall be disclosed to the public only as provided for pursuant to
18Section 583. No individually identifiable customer or subscriber
19information shall be subject to public disclosure.

20

begin deleteSEC. 31.end delete
21
begin insertSEC. 40.end insert  

Section 918.1 of the Public Utilities Code is amended
22to read:

23

918.1.  

(a) The commission shall hire an independent entity
24for not more than two hundred fifty thousand dollars ($250,000)
25to, in consultation with carrier trade associations for industries
26under the jurisdiction of the commission, assess the capabilities
27of the commission’s Transportation Enforcement Branch to carry
28out the activities specified in subdivision (b) of Section 5102 and
29subdivision (b) of Section 5352. The commission shall report to
30the Legislature no later than February 1, 2017, on licensing matters
31and no later than July 1, 2017, on enforcement matters. The report
32shall contain an analysis of current capabilities and deficiencies,
33and recommendations to overcome any deficiencies identified.

begin delete

34(b) The report shall be submitted in compliance with Section
359795 of the Government Code.

end delete
begin delete

36(c)

end delete

37begin insert(b)end insert Pursuant to Section 10231.5 of the Government Code, this
38section shall remain in effect only until January 1, 2021, and as of
39that date is repealed, unless a later enacted statute, that is enacted
40before January 1, 2021, deletes or extends that date.

P28   1

begin deleteSEC. 32.end delete
2
begin insertSEC. 41.end insert  

Section 918.2 of the Public Utilities Code is repealed.

3

begin deleteSEC. 33.end delete
4
begin insertSEC. 42.end insert  

Section 956 of the Public Utilities Code is amended
5to read:

6

956.  

(a)  On or before July 1, 2012, the commission shall open
7an appropriate proceeding or expand the scope of an existing
8proceeding to establish compatible emergency response standards
9that owners or operators of commission-regulated gas pipeline
10facilities shall be required to follow for intrastate transmission and
11distribution lines. The commission shall establish the standards to
12ensure that intrastate transmission and distribution lines have
13emergency response plans that adequately prepare them for a
14natural disaster or malfunction that could cause injury to human
15life or property, with the purpose of minimizing the occurrence of
16both.

17(b) The commission shall establish the compatible emergency
18response standards in consultation with the California Emergency
19 Management Agency, the State Fire Marshal, and members of
20California’s first responder community including, but not limited
21to, members of the California Fire Chiefs Association.

22(c) The compatible emergency response standards shall require
23owners or operators of intrastate transmission and distribution lines
24to implement emergency response plans that are compatible with
25the United States Department of Transportation, Pipeline and
26Hazardous Materials Safety Administration’s regulations
27concerning emergency plans contained in Section 192.615 of Title
2849 of the Code of Federal Regulations, and those plans shall
29include, but not be limited to, all of the following requirements:

30(1) Emergency shutdown and pressure reduction shall be utilized
31whenever deemed necessary and appropriate by the owners or
32operators to minimize hazards to life or property. An owner or
33operator shall notify appropriate first responders of emergency
34shutdown and pressure reduction.

35(2) During an emergency response effort, the incident
36commander may direct coordination between first responders and
37owners or operators to ensure timely and ongoing communication
38on decisions for emergency shutdown and pressure reduction.

39(3) Owners or operators of intrastate transmission and
40distribution lines shall establish and maintain liaison with
P29   1appropriate fire, police, and other public officials to do all of the
2following:

3(A) Learn the responsibility and resources of each government
4organization that may respond to a gas pipeline emergency,
5including, but not limited to, the role of the incident commander
6in an emergency.

7(B) Acquaint the officials with the owner’s or operator’s ability
8in responding to a gas pipeline emergency.

9(C) Identify the types of gas pipeline emergencies of which the
10owner or operator notifies the officials.

11(D) Plan how the owner or operator and officials can engage in
12mutual assistance to minimize hazards to life or property.

13(E) Identify and update information on individual personnel
14responsible for the liaison with the appropriate first responder
15organizations.

16(4) Owners and operators of intrastate transmission lines shall
17provide the State Fire Marshal and the chief fire official of the
18applicable city, county, city and county, or fire protection district
19with instructions on how to access and utilize the National Pipeline
20Mapping System developed by the United States Department of
21 Transportation, Pipeline and Hazardous Materials Safety
22Administration, utilizing data submitted pursuant to Section 60132
23of Title 49 of the United States Code, to improve local response
24capabilities for pipeline emergencies.

25

begin deleteSEC. 34.end delete
26
begin insertSEC. 43.end insert  

Section 958.5 of the Public Utilities Code is amended
27to read:

28

958.5.  

(a) Twice a year, or as determined by the commission,
29each gas corporation shall file with the division of the commission
30responsible for utility safety a gas transmission and storage safety
31report. The division of the commission responsible for utility safety
32shall review the reports to monitor each gas corporation’s storage
33and pipeline-related activities to assess whether the projects that
34have been identified as high risk are being carried out, and to track
35whether the gas corporation is spending its allocated funds on these
36storage and pipeline-related safety, reliability, and integrity
37activities for which they have received approval from the
38commission.

39(b) The gas transmission and storage safety report shall include
40a thorough description and explanation of the strategic planning
P30   1and decisionmaking approach used to determine and rank the gas
2storage projects, intrastate transmission line safety, integrity, and
3reliability, operation and maintenance activities, and inspections
4of its intrastate transmission lines. If there has been no change in
5the gas corporation’s approach for determining and ranking which
6projects and activities are prioritized since the previous gas
7transmission and storage safety report, the subsequent report may
8reference the immediately preceding report.

9(c) If the division of the commission responsible for utility safety
10determines that there is a deficiency in a gas corporation’s
11prioritization or administration of the storage or pipeline capital
12projects or operation and maintenance activities, the division shall
13bring the problems to the commission’s immediate attention.

14begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 1046 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
15to read:end insert

16

1046.  

(a) For purposes of this section, the following terms
17have the following meanings:

18(1) “Bus” means a vehicle designed, used, or maintained for
19carrying more than 10 persons, including the driver, which is used
20to transport persons for compensation or profit.

21(2) “Limousine” means any sedan or sport utility vehicle, of
22either standard or extended length, with a seating capacity of not
23more than 10 passengers including the driver, used in the
24transportation of passengers for hire on a prearranged basis within
25this state, and includes a modified limousine as defined in
26begin insert subdivision (d) ofend insert Sectionbegin delete 1042.1.end deletebegin insert 1042.end insert

27(3) “Peace officer” means a person who is designated as a peace
28officer pursuant to Chapter 4.5 (commencing with Section 830)
29of Title 3 of Part 2 of the Penal Code.

30(b) A peace officer may, with respect to a passenger stage
31corporation, enforce and assist in the enforcement of Sections 2110
32and 2112, resulting from a violation of Section 1031, 1041, or
331045, or more than one of those sections. A peace officer may
34additionally enforce and assist in the enforcement of Sections
351034.5 and 2119. In any case in which an arrest authorized by this
36subdivision is made for an offense declared to be a misdemeanor,
37and the person arrested does not demand to be taken before a
38magistrate, the arresting peace officer may, instead of taking such
39person before a magistrate, follow the procedure prescribed by
40Chapter 5C (commencing with Section 853.5) of Title 3 of Part 2
P31   1of the Penal Code. The provisions of that chapter shall thereafter
2apply with reference to any proceeding based upon the issuance
3of a citation pursuant to this authority.

4(c) A peace officer may impound a bus or limousine operated
5by a passenger stage corporation pursuant to Section 14602.9 of
6the Vehicle Code if the peace officer determines that any of the
7following violations occurred while the driver was operating the
8vehicle:

9(1) The driver was operating the bus or limousine when the
10passenger stage corporation did not have a certificate of public
11convenience and necessity issued by the commission as required
12pursuant to this article.

13(2) The driver was operating the bus or limousine when the
14operating rights or certificate of public convenience and necessity
15of a passenger stage corporation was suspended, canceled, or
16revoked pursuant to Section 1033.5, 1033.7, or 1045.

17(3) The driver was operating the bus or limousine without having
18a current and valid driver’s license of the proper class.

19(d) The commission shall coordinate enforcement of this section
20with those peace officers likely to be involved in enforcing this
21section, including undertaking both of the following:

22(1) Educational outreach to promote awareness among those
23peace officers about the requirements of Sections 1031, 1034.5,
241041, 1045, 2110, 2112, and 2119.

25(2) Establishing lines of communication so that the commission
26is notified if an action is commenced to enforce the requirements
27of those sections specified in subdivision (b), so that the
28commission may take appropriate action to enforce the fine and
29penalty provisions of Chapter 11 (commencing with Section 2100).

30(e) The Legislature finds and declares that this section is
31intended to facilitate and enhance the commission’s performance
32of its functions pursuant to Section 2101 and not diminish the
33commission’s authority or responsibility pursuant to that section.

34(f) This section does not authorize the impoundment of privately
35owned personal vehicles that are not common carriers nor the
36impoundment of vehicles used in transportation for compensation
37by charter-party carriers of passengers that are not required to carry
38individual permits.

39

begin deleteSEC. 35.end delete
40
begin insertSEC. 45.end insert  

Section 2714.5 of the Public Utilities Code is repealed.

P32   1

begin deleteSEC. 36.end delete
2
begin insertSEC. 46.end insert  

Section 2827.3 of the Public Utilities Code is repealed.

3

begin deleteSEC. 37.end delete
4
begin insertSEC. 47.end insert  

Section 2845 of the Public Utilities Code is repealed.

5

begin deleteSEC. 38.end delete
6
begin insertSEC. 48.end insert  

Section 2867.1 of the Public Utilities Code is repealed.

7

begin deleteSEC. 39.end delete
8
begin insertSEC. 49.end insert  

Section 2870 of the Public Utilities Code is amended
9to read:

10

2870.  

(a) As used in this section, the following terms have the
11following meanings:

12(1) “CARE program” means the California Alternate Rates for
13Energy program established pursuant to Section 739.1.

14(2) “Program” means the Multifamily Affordable Housing Solar
15Roofs Program established pursuant to this chapter.

16(3) “Qualified multifamily affordable housing property” means
17a multifamily residential building of at least five rental housing
18units that is operated to provide deed-restricted low-income
19residential housing, as defined in clause (i) of subparagraph (A)
20of paragraph (3) of subdivision (a) of Section 2852, and that meets
21one or more of the following requirements:

22(A) The property is located in a disadvantaged community, as
23identified by the California Environmental Protection Agency
24pursuant to Section 39711 of the Health and Safety Code.

25(B) At least 80 percent of the households have incomes at or
26below 60 percent of the area median income, as defined in
27subdivision (f) of Section 50052.5 of the Health and Safety Code.

28(4) “Solar energy system” means a solar energy photovoltaic
29device that meets or exceeds the eligibility criteria established
30pursuant to Section 25782 of the Public Resources Code.

31(b) (1) Adoption and implementation of the Multifamily
32Affordable Housing Solar Roofs Program may count toward the
33satisfaction of the commission’s obligation to ensure that specific
34alternatives designed for growth among residential customers in
35disadvantaged communities are offered as part of the standard
36contract or tariff authorized pursuant to paragraph (1) of
37subdivision (b) of Section 2827.1.

38(2) Nothing in this section shall preclude electrical corporations
39from offering and administering a distributed energy resource
40program, including solar energy systems, in disadvantaged
P33   1communities offered under current or proposed programs using
2funds provided under subdivision (c) of Section 748.5 or programs
3proposed to comply with paragraph (1) of subdivision (b) as
4approved by the commission.

5(c) The commission shall annually authorize the allocation of
6one hundred million dollars ($100,000,000) or 10 percent of
7available funds, whichever is less, from the revenues described in
8subdivision (c) of Section 748.5 for the Multifamily Affordable
9Housing Solar Roofs Program, beginning with the fiscal year
10commencing July 1, 2016, and ending with the fiscal year ending
11June 30, 2020. The commission shall continue authorizing the
12allocation of these funds through June 30, 2026, if the commission
13determines that revenues are available after 2020 and that there is
14adequate interest and participation in the program.

15(d) The commission shall consider the most appropriate program
16administration structure, including administration by a qualified
17third-party administrator, selected by the commission through a
18competitive bidding process, or administration by an electrical
19corporation, in an existing or future proceeding.

20(e) Not more than 10 percent of the funds allocated to the
21program shall be used for administration.

22(f) (1) By June 30, 2017, the commission shall authorize the
23award of monetary incentives for qualifying solar energy systems
24that are installed on qualified multifamily affordable housing
25properties through December 31, 2030. The target of the program
26is to install a combined generating capacity of at least 300
27megawatts on qualified properties.

28(2) The commission shall require that the electricity generated
29by qualifying renewable energy systems installed pursuant to the
30program be primarily used to offset electricity usage by low-income
31tenants. These requirements may include required covenants and
32restrictions in deeds.

33(3) The commission shall require that qualifying solar energy
34systems owned by third-party owners are subject to contractual
35restrictions to ensure that no additional costs for the system be
36passed on to low-income tenants at the properties receiving
37incentives pursuant to the program. The commission shall require
38third-party owners of solar energy systems to provide ongoing
39operations and maintenance of the system, monitor energy
40production, and, where necessary, take appropriate action to ensure
P34   1that the kWh production levels projected for the system are
2achieved throughout the period of the third-party agreement. Such
3actions may include, but are not limited to, providing a performance
4guarantee of annual production levels or taking corrective actions
5to resolve underproduction problems.

6(4) The commission shall ensure that incentive levels for
7photovoltaic installations receiving incentives through the program
8are aligned with the installation costs for solar energy systems in
9affordable housing markets and take account of federal investment
10tax credits and contributions from other sources to the extent
11feasible.

12(5) The commission shall require that no individual installation
13receive incentives at a rate greater than 100 percent of the total
14system installation costs.

15(6) The commission shall establish local hiring requirements
16for the program to provide economic development benefits to
17disadvantaged communities.

18(7) The commission shall establish energy efficiency
19requirements that are equal to the energy efficiency requirements
20established for the program described in Section 2852, including
21participation in a federal, state, or utility-funded energy efficiency
22program or documentation of a recent energy efficiency retrofit.

23(g) (1) Low-income tenants who participate in the program
24shall receive credits on utility bills from the program. The
25commission shall ensure that utility bill reductions are achieved
26through tariffs that allow for the allocation of credits, such as
27virtual net metering tariffs designed for Multifamily Affordable
28Solar Housing Program participants, or other tariffs that may be
29adopted by the commission pursuant to Section 2827.1.

30(2) The commission shall ensure that electrical corporation tariff
31structures affecting the low-income tenants participating in the
32program continue to provide a direct economic benefit from the
33qualifying solar energy system.

34(h) Nothing in this chapter is intended to supplant CARE
35program rates as the primary mechanism for achieving the goals
36of the CARE program.

37(i) The commission shall determine the eligibility of qualified
38multifamily affordable housing property tenants that are customers
39of community choice aggregators.

P35   1(j) (1) Every three years, the commission shall evaluate the
2program’s expenditures, commitments, uncommitted balances,
3future demands, performance, and outcomes and shall make any
4necessary adjustments to the program to ensure the goals of the
5program are being met. If, upon review, the commission finds
6there is insufficient participation in the program, the commission
7may credit uncommitted funds back to ratepayers pursuant to
8Section 748.5.

9(2) As part of the annual workplan required pursuant to Section
10910, the commission shall provide an annual update of the
11Multifamily Affordable Housing Solar Roofs Program that shall
12include, but not be limited to, the number of projects approved,
13number of projects completed, number of pending projects awaiting
14approval, and geographic distribution of the projects.

15

begin deleteSEC. 40.end delete
16
begin insertSEC. 50.end insert  

Section 2872.5 of the Public Utilities Code is amended
17to read:

18

2872.5.  

The commission, in consultation with the Office of
19Emergency Services, shall open an investigative proceeding to
20determine whether standardized notification systems and protocol
21should be utilized by entities that are authorized to use automatic
22dialing-announcing devices pursuant to subdivision (e) of Section
232872, to facilitate notification of affected members of the public
24of local emergencies. The commission shall not establish standards
25for notification systems or standard notification protocol unless it
26determines that the benefits of the standards exceed the costs.

27

begin deleteSEC. 41.end delete
28
begin insertSEC. 51.end insert  

Section 2892.1 of the Public Utilities Code is amended
29to read:

30

2892.1.  

(a) For purposes of this section, “telecommunications
31service” means voice communication provided by a telephone
32corporation as defined in Section 234, voice communication
33provided by a provider of satellite telephone services, voice
34communication provided by a provider of mobile telephony service,
35as defined in Section 2890.2, and voice communication provided
36by a commercially available facilities-based provider of voice
37communication services utilizing Voice over Internet Protocol or
38any successor protocol.

39(b) The commission, in consultation with the Office of
40Emergency Services, shall open an investigative or other
P36   1appropriate proceeding to identify the need for telecommunications
2service systems not on the customer’s premises to have backup
3electricity to enable telecommunications networks to function and
4to enable the customer to contact a public safety answering point
5operator during an electrical outage, to determine performance
6criteria for backup systems, and to determine whether the best
7practices recommended by the Network Reliability and
8Interoperability Council in December 2005, for backup systems
9have been implemented by telecommunications service providers
10operating in California. If the commission determines it is in the
11public interest, the commission shall, consistent with subdivisions
12(c) and (d), develop and implement performance reliability
13standards.

14(c) The commission, in developing any standards pursuant to
15the proceeding required by subdivision (b), shall consider current
16 best practices and technical feasibility for establishing battery
17backup requirements.

18(d) The commission shall not implement standards pursuant to
19the proceeding required by subdivision (b) unless it determines
20that the benefits of the standards exceed the costs.

21(e) The commission shall determine the feasibility of the use of
22zero greenhouse gas emission fuel cell systems to replace diesel
23backup power systems.

begin delete
24

SEC. 42.  

Section 3368 of the Public Utilities Code is amended
25to read:

26

3368.  

(a) The authority may provide financing for natural gas
27transportation or storage projects recommended to it by the
28commission. In recommending a project to the authority, the
29commission shall ensure that the project is in the public interest.

30(b) Nothing in this section prevents the commission from acting
31on its own authority to direct gas corporations within its jurisdiction
32to construct, or facilitate the construction or operation, by the
33owners or operators of pipelines not within the jurisdiction of the
34commission, of, natural gas transportation and storage facilities
35as the commission determines to be needed to provide adequate,
36seasonally reliable amounts of competitively priced natural gas to
37residential, commercial, and industrial customers, including, but
38not limited to, electric generating plants.

end delete
39begin insert

begin insertSEC. 52.end insert  

end insert

begin insertSection 3346 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is repealed.end insert

begin delete
P37   1

3346.  

The authority shall, on or before January 1 of each year,
2prepare and submit to the Governor, the Chairperson of the Joint
3Legislative Budget Committee, and the chairperson of the
4committee in each house that considers appropriations, a report
5regarding its activities and expenditures pursuant to this division.

end delete
6begin insert

begin insertSEC. 53.end insert  

end insert

begin insertSection 3368 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is repealed.end insert

begin delete
7

3368.  

(a) The commission, in consultation with the Energy
8Commission, shall prepare and submit to the authority and to the
9Legislature, within 90 days of the effective date of the act adding
10this section, a report on the present, planned, and required future
11capacity of the state’s natural gas transportation and storage system
12to provide adequate, seasonally reliable amounts of competitively
13priced natural gas to residential, commercial, and industrial
14customers, including, but not limited to, electric generating plants.

15(b) The authority may provide financing for natural gas
16transportation or storage projects recommended to it by the
17commission. In recommending a project to the authority, the
18commission shall ensure that the project is in the public interest.

19(c) Nothing in this section prevents the commission from acting
20on its own authority to direct gas corporations within its jurisdiction
21to construct, or facilitate the construction or operation, by the
22owners or operators of pipelines not within the jurisdiction of the
23commission, of, natural gas transportation and storage facilities
24as the commission determines to be needed to provide adequate,
25seasonally reliable amounts of competitively priced natural gas to
26residential, commercial, and industrial customers, including, but
27not limited to, electric generating plants.

end delete
28

begin deleteSEC. 43.end delete
29
begin insertSEC. 54.end insert  

Section 5371.4 of the Public Utilities Code is amended
30to read:

31

5371.4.  

(a) The governing body of any city, county, or city
32and county may not impose a fee on charter-party carriers operating
33limousines. However, the governing body of any city, county, or
34city and county may impose a business license fee on, and may
35adopt and enforce any reasonable rules and regulations pertaining
36to operations within its boundaries for, any charter-party carrier
37domiciled or maintaining a business office within that city, county,
38or city and county.

39(b) The governing body of any airport may not impose vehicle
40safety, vehicle licensing, or insurance requirements on charter-party
P38   1carriers operating limousines that are more burdensome than those
2imposed by the commission. However, the governing board of any
3 airport may require a charter-party carrier operating limousines to
4obtain an airport permit for operating authority at the airport.

5(c) Notwithstanding subdivisions (a) and (b), the governing
6body of any airport may adopt and enforce reasonable and
7nondiscriminatory local airport rules, regulations, and ordinances
8pertaining to access, use of streets and roads, parking, traffic
9control, passenger transfers, trip fees, and occupancy, and the use
10of buildings and facilities, that are applicable to charter-party
11carriers operating limousines on airport property.

12(d) This section does not apply to any agreement entered into
13pursuant to Sections 21690.5 to 21690.9, inclusive, between the
14governing body of an airport and charter-party carriers operating
15limousines.

16(e) The governing body of any airport shall not impose a fee
17based on gross receipts of charter-party carriers operating
18limousines.

19(f) Notwithstanding subdivisions (a) to (e), inclusive, nothing
20in this section prohibits a city, county, city and county, or the
21governing body of any airport, from adopting and enforcing
22reasonable permit requirements, fees, rules, and regulations
23applicable to charter-party carriers of passengers other than those
24operating limousines.

25(g) Notwithstanding subdivisions (a) to (e), inclusive, a city,
26county, or city and county may impose reasonable rules for the
27inspection of waybills of charter-party carriers of passengers
28operating within the jurisdiction of the city, county, or city and
29county, for purposes of verifying valid prearranged travel.

30(h) For the purposes of this section, “limousine” includes any
31sedan or sport utility vehicle, of either standard or extended length,
32with a seating capacity of not more than 10 passengers including
33the driver, used in the transportation of passengers for hire on a
34prearranged basis within this state.

35

begin deleteSEC. 44.end delete
36
begin insertSEC. 55.end insert  

Section 5381.5 of the Public Utilities Code is amended
37to read:

38

5381.5.  

(a) The commission shall, by rule or other appropriate
39procedure, ensure that every charter-party carrier of passengers
40operates on a prearranged basis within the state, consistent with
P39   1Section 5360.5. The commission shall require every charter-party
2carrier of passengers to include on a waybill or trip report at least
3all of the following:

4(1) The name of at least one passenger in the traveling party,
5or identifying information of the traveling party’s affiliation, along
6with the point of origin and destination of the passenger or traveling
7party.

8(2) Information as to whether the transportation was arranged
9by telephone, written contract, or electronic communication.

10(b) A waybill or trip report may be kept in electronic or hardcopy
11format. When requested by any commission or airport enforcement
12officer or any official of a city, county, or city and county
13authorized to inspect a waybill or trip report pursuant to subdivision
14(g) of Section 5371.4, the waybill or trip report may be provided
15in either electronic or hardcopy format.

16(c) A charter-party carrier of passengers shall produce in its
17office a hardcopy of any waybill or trip report when requested by
18the commission or one of its authorized representatives pursuant
19to Section 5389.

20begin insert

begin insertSEC. 56.end insert  

end insert

begin insertSection 5436 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
21and renumbered to read:end insert

22

begin delete5436.end delete
23
begin insert918.2.end insert  

The commission and the Department of Insurance shall
24collaborate on a study of transportation network company insurance
25to assess whether coverage requirements are appropriate to the
26risk of transportation network company services in order to
27promote data-driven decisions on insurance requirements, and
28shall report the findings of this study to the Legislature no later
29than December 31, 2017.

30

begin deleteSEC. 45.end delete
31
begin insertSEC. 57.end insert  

Section 7661 of the Public Utilities Code is amended
32to read:

33

7661.  

(a) The commission shall require every railroad
34corporation operating in this state to develop, within 90 days of
35the effective date of the act adding this section, in consultation
36with, and with the approval of, the Office of Emergency Services,
37a protocol for rapid communications with the Office of Emergency
38Services, the Department of the California Highway Patrol, and
39designated county public safety agencies in an endangered area if
P40   1there is a runaway train or any other uncontrolled train movement
2that threatens public health and safety.

3(b) A railroad corporation shall promptly notify the Office of
4Emergency Services, the Department of the California Highway
5Patrol, and designated county public safety agencies, through a
6communication to the Warning Center of the Office of Emergency
7Services, if there is a runaway train or any other uncontrolled train
8movement that threatens public health and safety, in accordance
9with the railroad corporation’s communications protocol developed
10pursuant to subdivision (a).

11(c) The notification required pursuant to subdivision (b) shall
12include the following information, whether or not an accident or
13spill occurs:

14(1) The information required by subdivision (c) of Section 7673.

15(2) In the event of a runaway train, a train list.

16(3) In the event of an uncontrolled train movement or
17uncontrolled movement of railcars, a track list or other inventory
18document if available.

19(d) The division of the commission responsible for railroad
20safety shall investigate any incident that results in a notification
21required pursuant to subdivision (b).



O

    94