Amended in Assembly August 19, 2016

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 Bill No. 1222

Introduced by Senator Hertzberg

February 18, 2016

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

LEGISLATIVE COUNSEL’S DIGEST

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

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, renumber various codified reporting provisions, 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.

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.

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

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.

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.

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

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 various minor or nonsubstantive changes, including, but not limited to, shifts in 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:

SECTION 1.  

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

SEC. 2.  

The Legislative Counsel shall revise the list required
by Section 10242.5 of the Government Code by deleting all of the
following Public Utilities Commission reports from the list:

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

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

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

Recipient: Legislature

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

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

Date Due: By June 1, 2001

Recipient: Legislature

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

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

Date Due: On or before September 1, 2002

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

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

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

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

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

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

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

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

Recipient: Legislature

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

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

Date Due: Quarterly

Recipient: Legislature

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

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

Date Due: On or before January 10, 2010

Recipient: Legislature Budget and fiscal committees of the
Legislature

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

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

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

Recipient: Fiscal and policy committees of the Legislature

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

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

Date Due: By April 15, 2016

Recipient: Appropriate budget subcommittees of the Legislature

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

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

Date Due: January 1, 1999, and annually thereafter

Recipient: Legislature

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

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

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

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

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

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

Date Due: On or before January 1, 2013

Recipient: Assembly Committee on Judiciary and Senate
Committee on Judiciary

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

Authority: Section 2827.1 of the Public Utilities Code

Date Due: Within 30 days of completion of the study

Recipient: Legislature

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

Authority: Section 715 of the Public Utilities Code

Date Due: None

Recipient: Legislature

SEC. 3.  

Section 830.11 of the Penal Code is amended to read:

830.11.  

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

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

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

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

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

(5) Persons employed as investigators and investigator
supervisors by the Public Utilities Commission, who are designated
by the commission’s executive director and approved by the
commission, provided that the primary duty of these persons shall
be the enforcement of the law as that duty is set forth in Section
308.5 of the Public Utilities Code.

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

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

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

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

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

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

begin delete

SEC. 4.  

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

25229.  

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

end delete

begin delete SEC. 5. end delete

begin insert SEC. 4. end insert   

Section 25403 of the Public Resources Code is
repealed.

begin delete SEC. 6. end delete

begin insert SEC. 5. end insert   

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

308.5.  

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

begin delete SEC. 7. end delete

begin insert SEC. 6. end insert   

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

309.7.  

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

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

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

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

begin delete SEC. 8. end delete

begin insert SEC. 7. end insert   

Section 318 of the Public Utilities Code is repealed.

begin delete SEC. 9. end delete

begin insert SEC. 8. end insert   

Section 350 of the Public Utilities Code is repealed.

begin delete SEC. 10. end delete

begin insert SEC. 9. end insert   

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

353.13.  

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

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

begin delete SEC. 11. end delete

begin insert SEC. 10. end insert   

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

353.15.  

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

(1) Heat rate for the resource.

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

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

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

begin delete SEC. 12. end delete

begin insert SEC. 11. end insert   

Section 365.1 of the Public Utilities Code is amended
to read:

365.1.  

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

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

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

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

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

(i) Bundled service customers of the electrical corporation.

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

(iii) Customers of community choice aggregators.

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

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

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

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

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

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

begin delete

SEC. 13.  

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

380.3.  

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

end delete

begin delete SEC. 14. end delete

begin insert SEC. 12. end insert   

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

454.1.  

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

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

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

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

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

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

begin delete SEC. 15. end delete

begin insert SEC. 13. end insert   

Section 454.55 of the Public Utilities Code is amended
to read:

454.55.  

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

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

(b) (1) By December 31, 2023, the commission shall, in a new
or existing proceeding, undertake a comprehensive review of the
feasibility, costs, barriers, and benefits of achieving a cumulative
doubling of energy efficiency savings and demand reduction by
2030 pursuant to subdivision (c) of Section 25310 of the Public
Resources Code.

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

begin delete SEC. 16. end delete

begin insert SEC. 14. end insert   

Section 454.56 of the Public Utilities Code is amended
to read:

454.56.  

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

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

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

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

begin delete SEC. 17. end delete

begin insert SEC. 15. end insert   

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

740.5.  

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

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

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

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

begin delete SEC. 18. end delete

begin insert SEC. 16. end insert   

Section 747.5 of the Public Utilities Code is repealed.

begin delete SEC. 19. end delete

begin insert SEC. 17. end insert   

Section 846 of the Public Utilities Code is amended
to read:

846.  

The authority of the commission to issue financing orders
pursuant to Section 841 shall expire on June 30, 2022. The
expiration of the authority shall have no effect upon financing
orders adopted by the commission pursuant to this article or any
transition property arising therefrom, or upon the charges
authorized to be levied thereunder, or the rights, interests, and
obligations of the electrical corporation or a financing entity or
holders of transition bonds pursuant to the financing order, or the
authority of the commission to monitor, supervise, or take further
action with respect to the order in accordance with the terms of
this article and of the order.

begin delete SEC. 20. end delete

begin insert SEC. 18. end insert   

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

910.4.  

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

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

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

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

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

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

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

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

(1) Section 379.6.

(2) Section 399.8.

(3) Section 739.1.

(4) Section 2790.

(5) Section 2851.

begin delete SEC. 21. end delete

begin insert SEC. 19. end insert   

Section 910.5 of the Public Utilities Code is repealed.

begin delete SEC. 22. end delete

begin insert SEC. 20. end insert   

Section 910.6 of the Public Utilities Code is repealed.

begin delete SEC. 23. end delete

begin insert SEC. 21. end insert   

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

913.2.  

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

begin delete SEC. 24. end delete

begin insert SEC. 22. end insert   

Section 913.3 of the Public Utilities Code is repealed.

begin delete SEC. 25. end delete

begin insert SEC. 23. end insert   

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

913.3.  

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

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

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

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

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

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

begin delete SEC. 26. end delete

begin insert SEC. 24. end insert   

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

913.4.  

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

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

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

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

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

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

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

begin delete SEC. 27. end delete

begin insert SEC. 25. end insert   

Section 913.6 of the Public Utilities Code is repealed.

begin delete SEC. 28. end delete

begin insert SEC. 26. end insert   

Section 913.7 of the Public Utilities Code is amended
and renumbered to read:

913.5.  

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

begin delete SEC. 29. end delete

begin insert SEC. 27. end insert   

Section 913.8 of the Public Utilities Code is repealed.

begin delete SEC. 30. end delete

begin insert SEC. 28. end insert   

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

913.8.  

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

begin delete

SEC. 31.  

Section 913.9 of the Public Utilities Code is repealed.

end delete

begin delete

SEC. 32.  

Section 913.9 is added to the Public Utilities Code,
to read:

913.9.  

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

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

end delete

begin delete SEC. 33. end delete

begin insert SEC. 29. end insert   

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

913.6.  

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

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

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

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

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

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

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

(7) The effect on peak demand for electricity.

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

begin delete SEC. 34. end delete

begin insert SEC. 30. end insert   

Section 913.10 is added to the Public Utilities Code,
to read:

913.10.  

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

begin delete SEC. 35. end delete

begin insert SEC. 31. end insert   

Section 913.11 of the Public Utilities Code is repealed.

begin delete SEC. 36. end delete

begin insert SEC. 32. end insert   

Section 913.11 is added to the Public Utilities Code,
to read:

913.11.  

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

begin delete SEC. 37. end delete

begin insert SEC. 33. end insert   

Section 913.12 of the Public Utilities Code is amended
and renumbered to read:

913.7.  

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

begin insert

begin insert SEC. 34. end insert   

end insert

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

begin insert

begin insert 913.12. end insert   

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

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

end insert

begin delete SEC. 38. end delete

begin insert SEC. 35. end insert   

Section 913.13 of the Public Utilities Code is repealed.

begin delete SEC. 39. end delete

begin insert SEC. 36. end insert   

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

914.3.  

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

begin delete SEC. 40. end delete

begin insert SEC. 37. end insert   

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

918.1.  

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

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

begin delete SEC. 41. end delete

begin insert SEC. 38. end insert   

Section 918.2 of the Public Utilities Code is repealed.

begin delete SEC. 42. end delete

begin insert SEC. 39. end insert   

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

956.  

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

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

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

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

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

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

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

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

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

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

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

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

begin delete SEC. 43. end delete

begin insert SEC. 40. end insert   

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

958.5.  

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

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

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

begin delete SEC. 44. end delete

begin insert SEC. 41. end insert   

Section 1046 of the Public Utilities Code is amended
to read:

1046.  

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

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

(2) “Limousine” means any sedan or sport utility vehicle, of
either standard or extended length, with a seating capacity of not
more than 10 passengers including the driver, used in the
transportation of passengers for hire on a prearranged basis within
this state, and includes a modified limousine as defined in
subdivision (d) of Section 1042.

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

(b) A peace officer may, with respect to a passenger stage
corporation, enforce and assist in the enforcement of Sections 2110
and 2112, resulting from a violation of Section 1031, 1041, or
1045, or more than one of those sections. A peace officer may
additionally enforce and assist in the enforcement of Sections
1034.5 and 2119. In any case in which an arrest authorized by this
subdivision is made for an offense declared to be a misdemeanor,
and the person arrested does not demand to be taken before a
magistrate, the arresting peace officer may, instead of taking such
person before a magistrate, follow the procedure prescribed by
Chapter 5C (commencing with Section 853.5) of Title 3 of Part 2
of the Penal Code. The provisions of that chapter shall thereafter
apply with reference to any proceeding based upon the issuance
of a citation pursuant to this authority.

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

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

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

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

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

(1) Educational outreach to promote awareness among those
peace officers about the requirements of Sections 1031, 1034.5,
1041, 1045, 2110, 2112, and 2119.

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

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

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

begin delete SEC. 45. end delete

begin insert SEC. 42. end insert   

Section 2714.5 of the Public Utilities Code is repealed.

begin delete SEC. 46. end delete

begin insert SEC. 43. end insert   

Section 2827.3 of the Public Utilities Code is repealed.

begin delete SEC. 47. end delete

begin insert SEC. 44. end insert   

Section 2845 of the Public Utilities Code is repealed.

begin delete SEC. 48. end delete

begin insert SEC. 45. end insert   

Section 2867.1 of the Public Utilities Code is repealed.

begin delete SEC. 49. end delete

begin insert SEC. 46. end insert   

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

2870.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin delete SEC. 50. end delete

begin insert SEC. 47. end insert   

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

2872.5.  

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

begin delete SEC. 51. end delete

begin insert SEC. 48. end insert   

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

2892.1.  

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

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

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

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

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

begin delete SEC. 52. end delete

begin insert SEC. 49. end insert   

Section 3346 of the Public Utilities Code is repealed.

begin delete SEC. 53. end delete

begin insert SEC. 50. end insert   

Section 3368 of the Public Utilities Code is repealed.

begin delete SEC. 54. end delete

begin insert SEC. 51. end insert   

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

5371.4.  

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

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

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

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

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

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

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

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

begin delete SEC. 55. end delete

begin insert SEC. 52. end insert   

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

5381.5.  

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

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

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

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

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

begin delete SEC. 56. end delete

begin insert SEC. 53. end insert   

Section 5436 of the Public Utilities Code is amended
and renumbered to read:

918.2.  

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

begin delete SEC. 57. end delete

begin insert SEC. 54. end insert   

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

7661.  

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

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

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

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

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

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

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